ST. CATHERINE’S BRITISH SCHOOL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] AUGUST 2020 Charity number: 313909 Company number: 00860288 





## **ST. CATHERINE'S BRITISH SCHOOL** 

(A company limited by guarantee) 

## **DIRECTORS’ REPORT FOR THE YEAR ENDED 31[st] AUGUST 2020** 

The Governors are pleased to present their annual Directors’ Report together with the financial statements of the charity for the year ended 31[st] August 2020 which are also prepared to meet the requirements for a Directors’ Report and Accounts for Companies Act purposes. 

The financial statements comply with the Companies Act 2006, the Memorandum and Articles of Association, and 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). 

## **Status and Administration** 

St. Catherine's British School (“the School” or the “Company) was founded in 1956. The School is a non-profit company limited by guarantee, registered number 00860288 and is also a registered charity, number 313909. 

## **Mission Statement** 

St. Catherine's British School endeavours to foster a love of learning through a well taught, appropriately challenging and clearly defined, broad and balanced curriculum. Our aim is to develop fully pupils' intellectual, social, physical and creative potential, in anticipation that they will develop into sensitive, informed, decisive and capable global citizens of the future. 

## **Objectives** 

To provide for and promote the moral, cultural, intellectual social, physical and aesthetic development and the teaching and instruction of pupils according to the National Curriculum for England and Wales, IGCSE and International Baccalaureate, with the overall objective of preparing pupils for the opportunities, responsibilities and experiences of adult life in national and international society. 

In setting our objectives and planning our activities our Governors have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education and on fee-charging. 

## **Policy** 

The School is a day school based in Athens, Greece which follows the National Curriculum for England and Wales, the International General Certificate of Secondary Education (Years 10 and 11) and the International Baccalaureate Diploma Course for Years 12 and 13.  Classes are conducted in the English language, although Greek language, history and culture lessons also feature prominently in the school's programme. 

Our School welcomes pupils from all backgrounds. To admit a prospective pupil, we need to be satisfied that our School will be able to educate and develop a prospective pupil to the best of their potential and in line with the general standards achieved by their peers. Entrance interviews and assessments are undertaken to satisfy ourselves and parents that potential pupils can cope with the pace of learning and benefit from the 

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education we provide. An individual’s gender, ethnicity, race, religion or disability do not form part of our assessment processes. 

We are an equal opportunity organisation and are committed to a working environment that is free from any form of discrimination on the grounds of colour, race, ethnicity, religion, sex, sexual orientation or disability. We will make reasonable adjustments to meet the needs of staff or pupils who are or become disabled. 

## **Activities** 

During the 2019/2020 academic year the School continued to offer the National Curriculum for England and Wales for all pupils, both girls and boys, from the age of three up to fourteen, an IGCSE/GCSE programme up to sixteen and thereafter the International Baccalaureate Diploma to eighteen.  The School’s principal funding source continued to be application, registration, development fund, nursery and main school fees. 

On the 12th January 2011 the School received the report of its first inspection by ISI (Independent Schools Inspectorate). As a result the School was granted full membership of **COBIS (Council of British International Schools).** It should be noted that the School was subsequently re-inspected in November 2013. Both reports had excellent outcomes and can be found on the school’s website. The School was re-inspected in the autumn of 2016 as part of the **BSO (British Schools Overseas)** three-year inspection cycle. The findings of this most recent ISI inspection were rated “Excellent” in all eight categories. The school is also a member of **HMC (Headmasters’ and Headmistresses’ Conference)** and **AGBIS (Association of Governing Bodies of Independent Schools).** In November 2012 the School became a member of **ISBA (Independent Schools' Bursars Association)** whilst in September 2019 the school joined **AoBSO (** Association of British Schools Overseas). The School now has six leading UK regulatory bodies to advise and assist with its operation. 

The school has continued to invest a great deal of resource into high quality staff CPD (Continuing Professional Development) as well as student enrichment programmes even though there was inevitably some dislocation in the second half of the year due to the COVID pandemic. Some of the CPD highlights included: the NPQSL (National Professional Qualification for School Leaders) and NPQML (National Professional Qualification for Middle Leaders) programmes for two appropriate Lower School staff (ongoing); Art & Design Technology INSET for all Lower School staff (September 2019); the Forest School Training programme (ongoing); a variety of IB subject courses for Upper School staff (ongoing); International Award Duke of Edinburgh training for a number of Upper School staff (September 2019) and attendance at the Global Forum on International Admissions and Guidance for one of our Guidance Counsellors (November 2019). Furthermore, with the completion of the new Upper School building in the summer of 2020, the school moved from Microsoft Flagship School status to “Incubator” status – the final stage towards our goal of Microsoft Showcase School status. 

On the student front the Drama and Music teams combined to produce a fabulous Upper School production of “A Christmas Carol” (December 2019) whilst our Year 6 pupils rehearsed long and hard on Shakespeare’s “Macbeth”, performing first at the local Pefki Theatre before travelling to the UK in November and performing, to great acclaim it must be said, at the Shakespeare Schools Festival in London. Our debaters continued to excel in local, national and international competitions with another two students making the Greek National training squad although their participation would be confined to the virtual world in the summer of 2020! Another outstanding event was the “StCatsHacks” Hackathon in November 2019 which involved students from both the Lower and Upper Schools as well as competitors from other schools, colleges and even a university! The school always provides numerous trip opportunities both at home and abroad, although these opportunities were also more limited in the latter part of the year. Once again our World Scholars’ Cup teams made it through to the global finals at Yale University in the USA (November 2019) whilst a team of older students attended the MUN event in The Hague (January 2020). The autumn term once again saw an amazing PTSA Halloween Event – even with numbers limited for health and safety reasons, a large number of our St Catherine’s community came together in true festive, yet scary, spirit! Our Junior multi-sports team travelled to Dubai for the World Primary Games in January/February 2020 and performed most creditably against stiff international competition. The Secondary team were most disappointed when their event scheduled for May 2020 in Brussels had to be cancelled for obvious reasons. Students across the school remain extremely 

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proactive on a wide number of environment issues with the Global Climate Action Day in October 2019 providing the stand-out highlight of the year, both inside and outside of school. 

## **Charitable Activities** 

- 1) Bursaries to pupils 

- 2) The School supported and contributed to the following overseas and local charities: 

   - Friends of the child 

   - MDA Hellas 

   - NSW Wildlife 

   - Smile of the child 

   - Ark of the World 

   - Make a wish 

   - ANIMA 

   - Estia Girls Orphanage 

   - Desmos 

   - UNHCR 

   - Asthma UK 

   - Eliza 

   - JustGiving.com 

   - Panhellenic Organization for the Blind 

   - Tositsa Boys Foundation 

   - Municipality of Kifissia 

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## **Directors** 

The Directors of the School, who are also the charity trustees and members of the Board of Governors, who served since 1st September 2019 through to the date of this report, were: 

|**Name**|**Chairman, Vice Chair &**<br>**Honorary Treasurer**<br>**Appointments**|**First**<br>**Appointment**|**Changes**|
|---|---|---|---|
|Taki, Stavros|Chairman 25/08/09|Appointed<br>05/06/08|Retired 30/09/09 on Board<br>Dissolution, Re-Appointed<br>01/10/09, 2ndTerm<br>Re-Appointed 01/10/2015|
|Dheere, Maurice Jean|Resigned as Hon.  Treasurer<br>on 31/5/2014 and<br>appointed Vice Chairman on<br>the same date|Appointed<br>21/06/01|Retired 30/09/09 on Board<br>Dissolution, Re-Appointed<br>01/10/09, 2ndTerm<br>Re-Appointed 01/10/2015|
|Nicola, Loukia||Appointed<br>01/10/09|Re-Appointed 01/10/2013<br>Re-appointed 01/10/2017|
|Outwin-Flinders, Roger||Appointed<br>01/09/2016|Re-Appointed 01/09/2020|
|Peel, Roger Victor||Appointed<br>04/10/11|Re-Appointed 04/10/2015<br>Re-Appointed 04/10/2019<br>Re-Appointed 04/10/2020|
|Tinios, Platon||Appointed<br>24/04/12|Re-Appointed 24/04/16<br>Re-Appointed 24/04/20|
|Sabatakakis, Kyriacos|Appointed Hon. Treasurer<br>31/5/2014|Appointed<br>20/11/12|Re-Appointed 20/11/2018|
|Paleokrassas, George<br>Andreas||Appointed<br>01/04/13|Re-Appointed 01/04/2017|
|Contomichalos, Nathalie<br>Isabelle||Appointed<br>06/01/2018||
|Markou, Christos||Appointed<br>05/07/2018||
|Braimi, Athanasia||Appointed<br>25/01/2019||



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**Key Personnel & Advisors** 

|**Headmaster:**|James Stuart Smith, BA (Hons) Oxon (appointed Head 01/09/13)|James Stuart Smith, BA (Hons) Oxon (appointed Head 01/09/13)|
|---|---|---|
|**Company Secretary**:|Company Secretary: Mrs Deborah Eleftheriou (appointed 20/11/12)||
|**Business Director:**|Mr Konstandinos S. Theodosiou (appointed 11/04/11)||
|**Senior Accountant:**|Mr Anastasios Koutsoukos (appointed 27/06/11)||
|**School's address:**|Leoforos Venizelou 77||
||Lycovrissi GR141 23||
||Athens||
||Greece||
|**Website:**|www.stcatherines.gr||
|**Registered Office:**|66 Lincoln’s Inn Fields||
||LONDON WC2A 3LH||
||ENGLAND||
|**Bankers:**|**HSBC Bank**|**Alpha Bank**|
||Kifissias Avenue,|Ethniki Odos 17thkm Athinon Lamias|
||Kifissia GR145 62|Kifissia GR145 64|
||Greece|Greece|
||**National Bank of Greece**|**Eurobank**|
||Potamou 25 & Galinis Avenue,|P. Maximou 2 & Deligianni,|
||N. Kifissia GR145 64|Kefalari GR145 62|
||Greece|Greece|
|**Solicitors (U.K.):**|Farrer & Co LLP||
||66 Lincoln’s Inn Fields||
||LONDON WC2A 3LH||
||ENGLAND||
|**Solicitors (Greece):**|C. & S. Dimitriou & Associates||
||28 Didotou Street||
||ATHENS 106 80||
||GREECE||
|**Auditors:**|Hillier Hopkins LLP||
||Chartered Accountants and Statutory Auditors||
||Radius House||
||51 Clarendon Road||
||Watford, Herts WD17 1HP||
||And||
||tgs (Hellas) Certified Auditors Accountants SA||
||60 Kifissias Av.||
||151 24, Maroussi, Greece||



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**Governance** 

The Directors ratify specific school policies; some, such as Health & Safety and Child Protection are reviewed and endorsed on an annual basis, others are reviewed periodically.  The day-to-day management of the School is delegated to the Headmaster. 

The School operates four standing committees: 

- Finance/Resources Committee 

- Curriculum/Standards Committee 

- Human Resources Committee 

- Health and Safety Committee 

All the above committees are chaired by a Director and include other Directors and staff as appropriate. The minutes of the meetings are distributed to the Board for ratification.  Each committee has Terms of Reference and their role is to monitor, review and evaluate all appropriate matters and bring recommendations to the Board. The School also has a Bursary Committee that is chaired by the Chairman of the Board which meets to discuss and decide on the granting of means tested bursaries. 

## **Directors’ Induction and Training** 

Governors/Directors shall be nominated by the Nominators from time to time (the British Ambassador, the Director of the British Council and the Director of the British School at Athens) or by the Nomination Committee (the Chair, Vice-Chair and Hon. Treasurer) and presented to the Governing Board for consideration. On a resolution by the Board, once appointed, Governors become Members/Directors of the "School" for a four-year term.  Following the fourth anniversary (six years for Executive Governors/Chairman's Committee) Governors shall be entitled to be considered for re-appointment for up to one additional four-year term (for Governors) or six year term (Executive Governors). At any one time there shall be no more than two persons nominated by a single Nominator sitting on the Governing Body.  No Nominator shall be a member of the School. 

Governors follow an induction programme with the Headmaster, Executive Leadership Team, Company Secretary and the Chairman's Committee. Upon appointment, a Director receives a detailed file with the School’s constitution, its corporate documentation and its by-laws.  The Board of Governors in consultation with its advisors are constantly looking for ways to broaden the skills and experience of the School’s Governing Body. Following the Board of Governors full day’s INSET session with Stuart Westley from AGBIS and the advent of the Key Stage/Curriculum-linking initiative during the academic year 2015-2016, the ISI inspection team in November 2016 rated the “quality of governance as excellent” – the top possible grade. In their report, the inspectors commented: “Governor training has a high priority. Each February there is a joint governor and Senior Leadership workshop which has increased governors’ insight into the working of the School. Furthermore, governors are invited to attend staff training sessions as appropriate”. 

The Directors receive no remuneration or financial assistance.  Directors’ expenses as they relate in their capacity to carry out their duties and responsibilities may be recovered from the School.  The amount of Directors’ expenses in the financial year ended 31[st] August 2020 amounted to €4,650, being reimbursement of airfares, taxi fares and hotel costs to enable those Directors, who are based in the UK, to attend meetings. The Directors are indemnified by the School in accordance with its Memorandum and Articles of Association. 

## **Principal Risks and Uncertainties** 

The principal financial risks of the School relate to a potential reduction in student numbers, to high inflation and a significant worsening of the economic conditions in Greece and therefore risk of currency change. The most significant overhead relates to staff costs. Staff payment awards and School fee increases are set by the Board each year together with the approval of the budget and therefore the School has some control over the payroll overhead and its revenue.  The School does not have significant hard currency exposure. 

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During 2017 and 2018 the School obtained financing in the form of an EIB mortgage loan with National Bank of Greece (NBG) and Alpha Bank to the value of €15m in order to finance the building of the new upper school. As at 31[st] August 2020 the School had drawn down €4,150,125 from each bank. The School has carefully managed its own cash resources and will draw against the loans when necessary.  The future financial obligations and covenants associated with loan funding to be obtained from our bankers for the building of Phase 1 of a new school may give rise to additional risk factors and possible constraints for the School Business plan - approved by the Board on 5[th] June 2018. A reduction in revenues, increase in overheads or reduction in the values of the School’s fixed properties may result in the School’s failure to meet its obligations which may result in a default under the terms and conditions of such loan agreements.  Increases in interest rates may also adversely affect the School’s ability to meet its obligations.  These defaults may result in the bankruptcy or insolvency of the School.  In addition, the loan covenants may restrict the School’s business and financing activities. The school therefore carefully evaluates its funding and endeavours to ensure that its business plans are prudent and ensure adequate liquidity to cover for potential uncertainties. 

The principal risks to which the School is exposed, as identified by the Directors, are reviewed systematically from time to time in order to mitigate those risks.  An example of risk mitigation was when the Directors took into consideration the current economic climate in Greece and decided not to raise tuition fees for the academic years from 2010/11 to 2018/19 and similarly, staff pay awards were kept at nominal levels. 

For the academic year 2019-20 the tuition fees were raised by 2% approximately and the staff had an increase in the form of benefits in kind (Supermarket voucher cards). 

**The COVID-19 Pandemic:** as mentioned earlier, the onset of the pandemic in March 2020 impacted negatively on the day-to-day operations of the school, an impact not limited only to schools! Due to the government enforced lockdown requirements, the school launched online teaching programmes from Nursery through to the Sixth Form. Furthermore Blended Learning programmes were developed as parts of the School were allowed to re-open whilst others remain closed. A development that was also employed to the full when part of some year groups were required to quarantine whilst the remainder were in school. Upon re-opening the school, the Executive Leadership Team ensured that: 

- all staff were tested for COVID; 

- the school itself was deep-cleaned; 

- disinfectant gels were placed around the building; 

- safe social distancing measures were introduced; 

- additional staffing was added to monitor student compliance with the regulations and also increased cleaning schedules. 

As a result of the above measures, the school’s expenses increased significantly with respect to staffing, disinfectants, masks and cleaning materials notwithstanding some limited furloughs and discounted offers. Furthermore rentals receivable decreased following government enforced rental reductions even though this was to some extent offset by the reduction of rentals payable. The school also had to withstand some aggressive claims for fee reductions/discounts from parents – a number of which remain outstanding into the current year. Nevertheless the school did decide to make some concession to the families in Nursery, Reception and Years 1 and 2 for their school fees for 2020-2021. 

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**Strategic Report** 

## • **Review** 

Over the last decade the School has implemented a plan to maintain occupancy at between 1,050 and 1,200 until its development plan for the Macsolar property was completed.  Recent occupancy data is summarised as follows: 

|Academic Year<br>2008/2009<br>2009/2010<br>2010/2011<br>2011/2012<br>2012/2013<br>2013/2014<br>2014/2015<br>2015/2016<br>2016/2017<br>2017/2018<br>2018/2019<br>2019/2020<br>2020/2021 (estimated)|approx. no. of pupils<br>890<br>938<br>1,030<br>1,100<br>1,067<br>1,071<br>1,116<br>1,155<br>1,144<br>1,176<br>1,205<br>1,228<br>1,274|
|---|---|



Another example of risk mitigation, on this occasion including a qualitative aspect, was that for the 2012/13 academic year, the Directors took the decision to reduce the number of classes in the nursery and lower year groups in order to allow for the accommodation of organic growth in the higher year groups. This decision to halt the on-going growth had allowed greater flexibility for the School as it prepared its strategic campus development plan. This resulted in a slight decrease in student numbers to 1,067 in 2012/13. This again was the case in 2016/17 where the number of Year 1 classes was reduced from four forms to three. This resulted in a slight decrease in student numbers to 1,144. In 2017/18, the student numbers increased to 1,176 due to the re-inclusion of a fourth form in year 1. In 2018/19, the student numbers increased to 1,205 and in 2019/20, the student numbers increased further to 1,228. The student numbers for 2020/21 are estimated to be around 1,274. 

The School's bursary scheme in 2019/20 supported 125 pupils (prior year 138) in various percentages of which 74 (prior year 73) were staff children (also in various percentages). 

## • **Financial Results** 

The financial performance for the year 2019/20 was above the budget approved by the Board. 

Total Incoming Resources for the year 2019/20 were €14,552,066 compared to €14,163,395 for 2018/19 representing an increase of €388,671 or 2.74% compared to the year 2018/19.  Pupil numbers increased by 1.8% in 2019/20 compared to 2018/19. 

Total Resources Used for the year 2019/20 amounted to €11,935,577 compared to €11,797,606 for 2018-2019 representing an increase of €137,971 or 1.17% compared to the year 2018/19. 

Net Incoming Resources for the year 2019/20 amounted to €2,616,489 compared to €2,365,789 for 2018/19 representing an increase of €250,700 or 10.60%. 

Net Movement in Funds amounted to €2,709,612 for the year 2019/20. This was due to the actuarial gain on staff retirement of €93,123. The balance carried forward increased to €25,020,024. 

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## • **Reserves** 

The School’s restricted reserves relate to funds held for specific purposes. At 31[st] August 2020 there are €531,683 held under the Land Revaluation Reserve and €146,742 held under the School Reserve totalling €678,425. 

The School’s unrestricted funds are re-invested back into the School through additions and improvements to its facilities and expenditure in relation to new technology as well as new furniture and fittings.  At 31[st] August 2020 there were €24,341,599 in unrestricted reserves. 

The directors consider that the ideal level of reserves would be between 1 to 2 years’ expenditure.  The directors believe that the current unrestricted reserves represent a sufficient level to ensure that the going concern assumption is appropriate. 

The reserves Policy is reviewed on an annual basis. 

## • **Resources** 

The School's assets are sufficient to meet its obligations. 

The results are set out in the attached Statement of Financial Activities, Balance Sheet and Statement of Cash Flows. 

The School’s Business Director produces management reports together with his team that measure the actual performance of the School compared to the budget as well as interim financial statements. The Financial Statements and management reports are reviewed by the Board and the Headmaster. 

After making due enquiries, the Board of Directors confirm its expectation that the School has adequate resources to continue in operational existence for the foreseeable future.  Therefore, in preparing the financial statements the Board continues to adopt the going concern basis. 

## • **Development Plans** 

In January 2011, the School received zoning approval under the Single Implementation Act, allowing for the development of the Macsolar site that was acquired in 2009. The acquisition of the Macsolar property was designed to relieve the space constraints created due to the pupil growth, which had resulted from the successful implementation of the School’s business plan. 

The Board of Governors together with the Headmaster and the Executive Leadership Team of the School have considered different development options for the Macsolar property. On the 16[th] November 2016 the Municipal Council of Kifissia formally approved the introduction of the development into the city’s town plan. As mentioned earlier, the Board had approved the Business plan on the 7[th] December 2016 which would see the redevelopment of the Macsolar building as Phase 1 of the new school. In anticipation of the above council approval, the school had over the previous two years selected the architects (Tombazis Associates) and project management company (Focal) following competitive tendering processes. As part of these processes, concept designs for Phase 1 had also been produced. During 2016/17 the school worked with Tombazis and Focal to finalise the architectural plans for the redevelopment. In April 2017, formal agreements were signed with the architects, the Engineers and the Project Management Company involved. 

In August 2017 the School acquired the Wella property - adjacent to the Macsolar property. This property will form part of Phase 2 of the redevelopment and it has been decided that it will be reconfigured to create a multi-sports complex for use by all the students of the school. In July 2019, the School signed an agreement with Vratsanos & Koula Architects, Structural Engineers and MEP Engineers to produce designs and plans for the re-design of Wella. It is hoped that construction will be able to begin in the 2020/21 school year. 

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The Building Permit for Phase 1 was obtained on the 21[st] May 2018. Following a rigorous tender process, Redex SA was selected to redevelop the Macsolar site into a new Upper School and incorporating some whole school facilities such as a theatre and a library. Construction began in June 2018. Although it was hoped that the new Upper School campus would be operational by September 2019, this was delayed by the uncovering of a range of archaeological findings. The initial handover of the new upper school building was made by Redex in August 2020 thus allowing the school to open its doors to the students in September 2020. 

The School continues to be concerned about the current economic climate and does not wish to undertake inappropriate risks. The School will make careful allocation of its resources to the development budgets and manage the associated risks and exposures in a prudent manner. 

With the move of the Upper School into their new facility in September 2020, a major reconfiguration of the current site for the Lower School was planned and implemented from November 2019 through to August 2020. This reconfiguration incorporated: 

- The reconfiguration of a number of Upper School classrooms into bigger spaces for Years 5 and 6; 

- The redesign of a number of Lower School spaces to suite Year groups more coherently incorporating shared inside and outside spaces eg for Years 1 and 2; 

- The modification of a number of specialist rooms for younger pupils eg Science, ICT, Music and Art. 

- The painting of a large proportion of the lower school; 

- The conversion of the “Music House” into a Welcome House with a Reception/Waiting area and increased Medical Room provision; 

- The waterproofing of the Welcome House and substantial parts of the Lower School building. 

Key Information Technology upgrades included the following: 

- Continued technology upgrades in classrooms and science labs equipment; 

- The replacement of old desktops and laptops; 

- The acquisition of laptops for Year 5 pupils; 

- The development of a dedicated IT laboratory for the Lower School; 

- The development of a “FabLab” ie Fabrication Laboratory in the new Upper School; 

- The installation of more than sixty (60) interactive panels in the new Upper School; 

- Providing touchscreen devices for all Upper School teaching staff. 

## **Disclosure of Information to the auditors** 

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information, being information needed by auditor in connection with preparing its report, of which the auditor is unaware. Having made enquiries of fellow directors and the group’s auditor, each director has taken all the steps that he/she is obliged to take as a director in order to make himself/herself aware of any relevant audit information and to establish that the auditor is aware of that information. 

## **Re-Appointment of auditors** 

In accordance with s485 of the Companies Act 2006, a resolution is to be proposed at the Board Meeting for reappointment of Hillier Hopkins LLP as statutory auditors. 

## **Approval of the Directors’ Report and Financial Statements** 

A resolution approving this Directors’ Report and the School’s Financial Statements for the year ended 31[st] August 2020 will be put forward at the Board meeting to be held on **7[th] April 2021.** In signing this report the Directors confirm that they have approved the Strategic Report in their capacity as Company Directors of St. Catherine’s British School. 

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Approved by the Board of Directors at its meeting on **7[th] April 2021** and signed on its behalf by: 


Stavros Taki Chairman 

__________________________ Kyriacos Sabatakakis Hon. Treasurer 

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## **ST. CATHERINE’S BRITISH SCHOOL** 

## **Statement of Directors’ Responsibilities** 

The Governors (who are also the Directors of the Company for the purposes of company law) are responsible for preparing the Directors’ Report (including the Strategic Report) and the accounts in accordance with applicable law and regulations. 

Company law requires the Directors to prepare accounts for each financial year.  Under that law the Directors have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland’.  Under company law the Directors must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the School and of the profit or loss of the School for that period.  In preparing those accounts the Directors are required to: 

- Select suitable accounting policies and then apply them consistently 

- observe the methods and principles of the Charities SORP (FRS 102) 

- Make judgements and estimates that are reasonable and prudent 

- State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts and 

- Prepare the accounts on the going concern basis unless it is inappropriate to assume that the School will continue in business. 

The Directors are responsible for keeping proper 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 accounts 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 or other irregularities. 

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

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## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ST. CATHERINE’S BRITISH SCHOOL** 

## **Opinion** 

We have audited the financial statements of St. Catherine’s British School (the 'Company') for the year ended 31 August 2020, which comprise the Statement of Comprehensive Income, the Statement of Financial Activities, 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: 

- give a true and fair view of the state of the Company's affairs as at 31 August 2020 and of its profit 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 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** 

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

- the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or 

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

## **Other information** 

The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditor's report thereon. 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. 

In the light of our knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ report. 

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In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## **Opinion 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 Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the Directors’ 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ report. 

We have nothing to report in respect of the following matters in relation to which 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; or 

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

- certain disclosures of directors’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit; or 

## **Responsibilities of directors** 

As explained more fully in the Directors’ responsibilities statement on page 12, the directors 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 directors 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 directors are responsible for assessing the 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 directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. 

## **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 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 

_Page 14_ 



the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

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

## **Use of our report** 

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


……………………………….…………………………………….… 

Neil Cundale BSc FCA (Senior statutory auditor) 

for and on behalf of HILLIER HOPKINS LLP 

Chartered Accountants & Statutory Auditor 

Radius House 51 Clarendon Road Watford Hertfordshire WD17 1HP 

Date: 19 April 2021 

_Page 15_ 



## **ST. CATHERINE’S BRITISH SCHOOL STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[st] AUGUST 2020** 

**(** All amounts in tables and notes are presented in € unless otherwise stated) 

|**Notes**<br>**Incoming Resources**<br>Income from charitable activitites:<br>Fees Receivable<br>Other Income<br>2<br>Bank Interest<br>**Total Incoming Resources**<br>**Resources Used**<br>Direct Charitable Expenditure:<br>Staff Costs<br>3<br>Educational Consumables<br>Maintenance & Utilities<br>Real Estate, VAT and other Sundry Duties<br>4<br>Governance Costs<br>General Administration Expenses<br>Other Expenditure:<br>Interest<br>Money Market gains/losses<br>Foreign Exchange gains/losses<br>Depreciation<br>6<br>Bad Debts<br>Normal Taxation<br>**Total Resources Used**<br>**Net Incoming Resources**<br>Before Other Recognised Gains & Losses<br>- unrestricted Funds<br>5<br>Actuarial gain/(loss) on Staff Retirement<br>Indemnities - unrestricted funds<br>10<br>Net Movement In Funds<br>Balance Brought Forward at 1stSeptember<br>**Balance Carried Forward at 31st August**|**31-Aug-20**<br>**31-Aug-19**<br>13,672,420<br>13,147,992<br>879,322<br>1,015,107<br>324<br>296<br>14,552,066<br>14,163,395<br>9,287,531<br>9,272,292<br>195,291<br>257,550<br>661,531<br>579,187<br>197,548<br>238,951<br>19,920<br>20,019<br>772,185<br>773,158<br>11,134,006<br>11,141,157<br>71,197<br>7,224<br>0<br>10,164<br>2,463<br>4,799<br>438,250<br>459,704<br>284,121<br>167,315<br>5,540<br>7,243<br>801,571<br>656,449<br>11,935,577<br>11,797,606<br>2,616,489<br>2,365,789<br>93,123<br>(162,294)<br>2,709,612<br>2,203,495<br>22,310,412<br>20,106,917<br>25,020,024<br>22,310,412|
|---|---|



_Page 16_ 



## **ST. CATHERINE’S BRITISH SCHOOL BALANCE SHEET AS AT 31[st] AUGUST 2020** 

**(** All amounts in tables and notes are presented in € unless otherwise stated) 


**----- Start of picture text -----**<br>
31-Aug-20 31-Aug-19<br>Notes<br>Fixed Assets<br>Tangible Fixed Assets<br>School's Land, Buildings and Equipment 6 38,378,331 26,884,829<br>Current Assets<br>Debtors 7 811,156 323,495<br>Cash and Banks 4,890,521 4,151,539<br>5,701,677 4,475,034<br>Current Liabilities<br>Creditors Due Within 1 Year 8 (9,002,704) (6,517,786)<br>Short Term portion of Long term loan 9 (1,000,000) (7,224)<br>(10,002,704) (6,525,010)<br>Net Current Assets (4,301,027) (2,049,976)<br>Total Assets Less Current Liabilities 34,077,304 24,834,853<br>Long Term Liabilities<br>Bank Loans 9 (7,300,250) (777,750)<br>Retirement Benefits 10 (1,757,030) (1,746,691)<br>(9,057,280) (2,524,441)<br>Total Net Assets 25,020,024 22,310,412<br>Restricted Funds 11 678,425 678,425<br>Unrestricted Funds 11 24,341,599 21,631,987<br>Total Funds 25,020,024 22,310,412<br>**----- End of picture text -----**<br>


Approved by the Board of Directors at its meeting on **7[th] April 2021** and signed on its behalf by: 


______________________ Stavros Taki Chairman 

______________________ Kyriacos Sabatakakis Hon. Treasurer 

_Page 17_ 



## **ST. CATHERINE’S BRITISH SCHOOL STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31[st] AUGUST 2020** 

**(** All amounts in tables and notes are presented in € unless otherwise stated) 


_Page 18_ 



**ST. CATHERINE’S BRITISH SCHOOL Notes to the Accounts as at 31st August 2020** (All amounts in tables and notes are presented in € unless otherwise stated) 

## **1. ACCOUNTING POLICIES** 

a) Statement of compliance and Basis of Preparation 

The financial statements have been prepared on a going concern basis, and in accordance with 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) (effective 1 January 2015) - (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. 

The financial statements are presented in Euros which is the functional currency of the School. 

## b) Tangible Fixed Assets 

Land is stated at deemed historical cost (previously revalued cost) following change to FRS 102, while the remainder of the tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is provided on all tangible fixed assets in use, other than freehold land that is not depreciated, at rates and bases calculated to write-off the cost of the assets over their expected useful lives by the straight-line method.  The depreciation rates are 4% to 5% for buildings and general improvements, 10% for furniture and equipment items, and 20% for computers and software. Leasehold improvements are depreciated over the lease term. 

## c) Fees 

Income is recognised when the School has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. 

The School’s revenue comprises non-refundable application fees and main school and nursery fees, net of bursaries and other discounts. Fee income is recognised over the period to which it relates.  Registration fees and development funds are treated as income in the year they are received. 

## d) Expenditure 

Expenditure is generally inclusive of irrecoverable V.A.T. and is reflected in the accompanying accounts by nature. However, with effect from 1[st] January 2014, all VAT is separately disclosed in Real Estate, VAT and Other Sundry Duties. Purchases made in Europe, which give rise to a Greek VAT obligation, are also reflected separately in Real Estate, VAT and Other Sundry Duties under direct charitable expenditure. 

## e) Pension scheme 

The School operates a defined benefit scheme in Greece which provides a savings/pension scheme for employees that choose to participate. The School matches up to 6% of the contributions to the scheme. The School continued to operate a defined contribution scheme in the UK, which provides life and retirement benefits to certain of its employees. The scheme is managed by a life assurance company and its assets are held separately for each individual member. All staff are also members of the Greek state social security and Pension arrangements. 

_Page 19_ 



**ST. CATHERINE’S BRITISH SCHOOL Notes to the Accounts as at 31st August 2020** (All amounts in tables and notes are presented in € unless otherwise stated) 

## f) Reserve for Staff Retirement Indemnities 

The School’s staff retirement obligations under the Greek State Social Security and pension arrangements are calculated in accordance with the provisions of FRS 102, at the discounted value of the future retirement benefits accrued. Retirement obligations are calculated on the basis of financial and actuarial assumptions and are determined using the projected unit credit actuarial valuation method (Project Unit Credit Method). The pension expense for the period is included in staff costs and consists of the present value of benefits earned in the year, interest cost on the benefit obligation and any past service cost. Actuarial gains and losses are recognised in full in other recognised income and expense in the period in which they occur. 

## g) Foreign currencies 

The accounts are expressed in Euros. The exchange rate at 31[st] August 2020 was £1 / €1.117 (31[st] August 2019: £1 / €1.102). Assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date.  Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction.  Differences on translations are reflected in the statement of financial activities. 

## h) Taxation 

The School is a not-for-profit organisation and is therefore exempt from income tax (except for activities not related to education).  Irrespective of the School’s exempt income tax status, it is subject to Real Estate Property Tax. 

## i) Leases 

Rentals payable under operating leases are charged in the statement of financial activities on a straight-line basis over the lease term. 

## j) Funds 

The School’s restricted funds are held for specific purposes.  They consist of €531,683 held under the Land Revaluation Reserve and €146,742 held under the School Reserves. The School’s unrestricted funds are re-invested back into the School through additions and improvements to its facilities and expenditure in relation to new technology as well as new furniture and fittings. 

## k) Cash and cash equivalents 

Cash and cash equivalents include cash at bank and in hand including any 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. 

## l)  Resources expended 

Direct Charitable Expenditure represents the full cost of teaching, welfare, premises and support costs associated with running the School.  Governance costs represent the necessity of compliance with statutory and constitutional requirements. 

_Page 20_ 



**ST. CATHERINE’S BRITISH SCHOOL Notes to the Accounts as at 31st August 2020** (All amounts in tables and notes are presented in € unless otherwise stated) 

## **2. Other Income** 

Other income amounts to €879,322 for 2019/20 (€1,015,107 in 2018/19). The decrease is mainly due to less PE clubs revenue, €167,507 for 2019/20, as a result of the Covid pandemic versus €293,764 in 2018/19. 

## **3. STAFF COSTS** 

||**31 Aug 2020**|**31 Aug 2019**|
|---|---|---|
||||
|Wages & salaries|6,921,492|6,871,032|
|Social security costs|1,690,539|1,706,097|
|Pension contributions|239,011|247,202|
|Other costs|436,489|447,961|
||9,287,531|9,272,292|



The Board Directors received no remuneration or reimbursement of expenses during the year except for amounts directly related to attending the governors meetings such as taxis, airfares, meals and hotel costs included in Governance costs in the accompanying statement of financial activities amounting to 2020: €4,650 (2019: €6,249). 

The average monthly number of employees (both full-time and part-time) during the year is shown below. 

|Full-time teaching staff<br>Part-time teaching staff<br>Teaching Assistants<br>Administration staff<br>Site Maintenance & Cleaning<br>Management<br>PE Coaches<br>Supply Teachers & Assistants<br>Archaeology|**2019-2020**<br>81<br>17<br>37<br>33<br>25<br>11<br>20<br>6<br>1<br>231|**2018-2019**|
|---|---|---|
||||
|||82|
|||17|
|||36|
|||32|
|||22|
|||12|
|||20|
|||9|
|||4|
|||234|



Employee numbers have reduced by three year on year mainly due to a reduction in support staff and archaeology staff (on headcount due to Macsolar development). The reductions are offset slightly by maintenance staff increases to accommodate the two school sites as well as increases in admin staff and teaching assistants. 

The key management personnel of the School comprise the Board of Directors, the Headmaster, the Deputy Head/Head of Upper School, the Head of Lower School and the Business Director. The total employee benefits of key management personnel of the School were €488,474 for 2019/20 (€499,022 for 2018/19). 

_Page 21_ 



**ST. CATHERINE’S BRITISH SCHOOL Notes to the Accounts as at 31st August 2020** 

(All amounts in tables and notes are presented in € unless otherwise stated) 

## **4. REAL ESTATE PROPERTY TAX, VAT & OTHER SUNDRY DUTIES** 

In the current fiscal year, the School paid various sundry duties and taxes amounting to €197,548 (€238,951 for 2018/19).  This comprised mainly VAT payable on local goods and services to the Greek tax authorities and amounted to €158,272 (€193,192 in 2018-19). VAT payable on purchases made within the European Union amounted to €30,461 (€40,861 in 2018-19). 

## **5. NET INCOMING RESOURCES - Before Other Recognised Gains & Losses** 

Included in Net Incoming Resources are the following disclosable items: 

- (a) Audit remuneration for 2019/20 amounted to €15,270 (2018/19 - €13,770) 

- (b) Operating leases - Land & Buildings for 2019/20 amounted to €133,572 (2018/19 - €152,784) 

- (c) Operating Leases - Cars for 2019/20 amounted to €3,827 (2018/19 - €4,015) 

## **6. TANGIBLE FIXED ASSETS** 

|||**Freehold &**<br>**Leased Land**<br>**& Buildings**<br>**Furniture &**<br>**Equipment**<br>**Improvements**<br>**Total**|
|---|---|---|
||||
||Cost or Deemed Cost:||
||At 1st September 2019|31,294,075<br>3,350,237<br>982,540<br>35,626,852|
||Additions|11,366,916<br>564,836<br>0<br>11,931,752|
||Devaluations/Disposals|0<br>0<br>0<br>0|
||At 31 August 2020|42,660,991<br>3,915,073<br>982,540<br>47,558,604|
||Depreciation:||
||At 1st September 2019|5,100,432<br>2,818,157<br>823,434<br>8,742,023|
||Charge for the year|240,712<br>141,046<br>56,492<br>438,250|
||Disposals|0<br>0<br>0<br>0|
||At 31 August 2020|5,341,144<br>2,959,203<br>879,926<br>9,180,273|
||Net book value:||
||At 31 August 2020|37,319,847<br>955,870<br>102,614<br>38,378,331|
||At 31st August 2019|26,193,643<br>532,080<br>159,106<br>26,884,829|



On 31[st] August 2015 a valuation of freehold land was conducted by Proprius S.P. LLC (a member of the Cushman & Wakefield Alliance). The basis of valuation was the market value of each property in its current condition, assuming vacant possession and not considering any business aspect. The School’s land was valued at €12,054,000. This resulted in a devaluation of €871,000 which reduced the revaluation reserve created in previous years of €1,402,683 at 31[st] August 2014 to €531,683 at 31[st] August 2015. 

Had the School’s land been carried at historical cost, its carrying value would have amounted to €11,522,317. 

_Page 22_ 



**ST. CATHERINE’S BRITISH SCHOOL Notes to the Accounts as at 31st August 2020** (All amounts in tables and notes are presented in € unless otherwise stated) 

In applying the accounting policies required by FRS 102 and the Charities SORP FRS 102, the school has elected that the revalued value of the land be deemed cost as from the Balance Sheet date. Accordingly, the Revaluation reserve of has been frozen at €531,683. 

In August 2017 the School acquired the Wella property adjacent to the Macsolar site as part of its strategic campus development. The intention is to utilise the existing building footprint to build a new Sports Complex with a swimming pool, Basketball, Dance, Gym and PE classroom teaching facilities. 

Notwithstanding the delays caused by the Ministry of Culture as a result of Archaeology findings, significant progress had been made with respect to the Macsolar Building Development in 2019 and 2020. On 10[th] of August 2020 the school accepted the preliminary handover of the new building from the construction company Redex. Admin staff were relocated during August 2020 to the new premises and the school opened its doors to the upper school students in September 2020. 

As a result of the Macsolar building development, the School had significant asset additions during the financial year. Macsolar building additions for the period amounted to €11,244,131. These assets were not subject to depreciation until the building was completed and ready for use. Building improvements on the Lykovrisi site amounted €122,785. Furniture & Equipment, Hardware and Software additions amounted to €564,836. 

## **7. DEBTORS** 

|Fees (Net of Bad Debt)<br>Guarantees<br>Other debtors (a)<br>Prepaid expenses (a)|**2019-2020**<br>**€**<br>344,609<br>30,011<br>378,597<br>57,939<br>811,156|**2018-2019**<br>**€**|
|---|---|---|
|||199,850<br>14,522<br>14,031<br>95,092|
|||323,495|



(a) The amount of other debtors and prepaid expenses includes advances to suppliers relating to construction activity of various projects, as well as purchases of books and educational material, which will be used in the following school year. 

_Page 23_ 



**ST. CATHERINE’S BRITISH SCHOOL Notes to the Accounts as at 31st August 2020** 

(All amounts in tables and notes are presented in € unless otherwise stated) 

## **8. CREDITORS: Due within one year** 

|Trade creditors<br>Reservation deposits (a)<br>Sundry creditors<br>Taxes & social security<br>Accruals|**2019-2020**<br>**€**<br>1,860,398<br>5,145,117<br>1,128,630<br>274,801<br>593,758<br>9,002,704|**2018-2019**<br>**€**|
|---|---|---|
|||1,073,644<br>3,440,209<br>1,271,069<br>322,750<br>410,114|
|||6,517,786|



- (a) During 2019/20 the School received €5,145,117 representing part of the annual fees in advance for the next school year. 

## **9. BANK LOANS** 

Following approval by the Board of Governors by ordinary written resolution dated 18[th] December 2017, the Chairman of the Board signed an EIB loan agreement with Alpha Bank SA amounting to €7.5m dated 22 December 2017 representing 50% of the funding required for the redevelopment of the new upper school on the Macsolar site. 

On 21[st] June 2018, the Headmaster signed an EIB loan agreement with National Bank of Greece (‘NBG”) for a loan of €7.5m. This NBG loan together with the loan above amounts to the required loan funding of €15m that the school needs to complete phase 1 (Macsolar) and phase 2 (Wella) of the building project. 

In September 2018, the School was notified by NBG that the loan of €7.5m could not exceed €5m due to the rules of the EIB. NBG did however inform the School that it would fund the required €2.5m through a normal construction loan. The required replacement loan agreements were approved by the Board and finally signed by the Headmaster on the 19[th] December 2019. 

|Due within one year (short term portion)<br>Due within two to five years|**2019-2020**<br>**€**<br>1,000,000<br>7,300,250<br>8,300,250|**2018-2019**<br>**€**|
|---|---|---|
|||7,224<br>777,750|
|||784,974|



The loans are secured by a first preferred mortgage on the School’s immovable property. In addition the insurance policies on the School’s immovable property have been assigned as collateral for this loan facility. 

_Page 24_ 



**ST. CATHERINE’S BRITISH SCHOOL Notes to the Accounts as at 31st August 2020** (All amounts in tables and notes are presented in € unless otherwise stated) 

## **10. PROVISION FOR RETIREMENT INDEMNITIES** 

Under Greek labour law, employees are entitled to termination payments in the event of dismissal or retirement, with the amount of payment varying in relation to the employee’s compensation, length of service and manner (dismissed or retired) of termination, which if due to retirement is 40% of the amount payable upon dismissal.  Employees who resign or are dismissed with cause are not entitled to termination payments. The number of employees who will eventually be dismissed or retire in subsequent years is not known. 

An actuarial valuation of the retirement indemnities liability was performed during the year by independent actuaries. The movement and components of the retirement indemnities liability for the year ended 31[st] August 2020 is as follows: 

|**Net liability recognised in the Balance Sheet**<br>Present value of defined benefit obligation<br>Net liability<br>**Actuarial assumptions**<br>Rate of salary increases<br>Discount rate<br>Average price inflation<br>**Net expense recognised in the Statement of Financial**<br>**Activities**<br>Service cost component<br>Past Service Cost due to amendments<br>Interest cost component<br>Termination benefits<br>Less: Benefits paid|**2019-2020**<br>**2018-2019**<br>**€**<br>**€**|
|---|---|
||1,757,030<br>1,746,691|
||1,757,030<br>1,746,691|
||**2019-2020**<br>**2018-2019**<br>**%**<br>**%**<br>2.95%<br>2.95%<br>0.7%<br>0.3%<br>1.60%<br>1.70%<br> <br>**2019-2020**<br>**2018-2019**<br>**€**<br>**€**<br>122,067<br>109,948<br>14,508<br>28,423<br>5,240<br>21,561<br>(34,959)<br>(6,769)<br>(3,394)<br>(6,166)<br>103,462<br>146,997|



_Page 25_ 



## **ST. CATHERINE’S BRITISH SCHOOL Notes to the Accounts as at 31st August 2020** 

(All amounts in tables and notes are presented in € unless otherwise stated) 

## **10 PROVISION FOR RETIREMENT INDEMNITIES (continued)** 

|**Other recognised gains and losses recognised in the**<br>**Statement of Financial Activities**<br>Actuarial (gains)/losses/<br>**Change in the present value of the defined benefit obligation**<br>Present value of defined benefit obligation as at 1stSeptember<br>Service cost component<br>Past Service Cost due to amendments<br>Interest cost component<br>Termination benefits<br>Less: Benefits paid<br>Actuarial (gains)/losses<br>Present value of defined benefit obligation as at 31st August|**2019-2020**<br>**2018-2019**<br>**€**<br>**€**|
|---|---|
||(93,123)<br>162,294|
||(93,123)<br>162,294|
||**2019-2020**<br>**2018-2019**<br>**€**<br>**€**|
||1,746,691<br>1,437,400<br>122,067<br>109,948<br>14,508<br>28,423<br>5,240<br>21,561<br>(34,959)<br>(6,769)<br>(3,394)<br>(6,166)<br>(93,123)<br>162,294|
||1,757,030<br>1,746,691|



The cumulative actuarial losses taken to the statement of other recognised gains and losses at 31[st] August 2020 were losses of €423,465 (2019:  €516,588 losses). 

_Page 26_ 



**ST. CATHERINE’S BRITISH SCHOOL Notes to the Accounts as at 31st August 2020** 

(All amounts in tables and notes are presented in € unless otherwise stated) 

## **11. RESTRICTED AND UNRESTRICTED FUNDS** 

## **Restricted Funds** 

|Land Revaluation Reserve<br>School Reserves|**2019-2020**<br>**€**<br>531,683<br>146,742<br>678,425|**2018-2019**<br>**€**<br>531,683<br>146,742<br>678,425|
|---|---|---|



The Land Valuation Reserve reflects the revaluation of the School’s freehold land. The revaluation reserve has been frozen due to the decision of the School to record the land at deemed cost following the adoption of FRS 102. 

## **Unrestricted Funds** 

The School’s funds are held to finance the freehold property and to cover normal fluctuations in working capital. As at 31[st] August 2020 unrestricted reserves amounted to €24,341,599 (2019: €21,631,987). 

## **12. RELATED PARTY TRANSACTIONS** 

There were no related party transactions in the year. 

## **13. CONTRACTS AND COMMITMENTS** 

At 31[st] August 2020 the School had commitments under non-cancellable operating leases as set out below: 

|elow:|||
|---|---|---|
|Operating leases:<br>Less than one year<br>In 2 to 5 years<br>Greater than 5 years|**2019-2020**<br>**€**<br>153,993<br>167,350<br>0<br>321,343|**2018-2019**<br>**€**|
|||153,884<br>324,195<br>0|
|||478,079|



Additionally, at 31[st] August 2020 the School had commitments related to the redevelopment of the Macsolar site as set out below: 

|Less than one year<br>In 2 to 5 years<br>Greater than 5 years|**2019-2020**<br>**€**<br>897,205<br>0<br>0<br>897,205|**2018-2019**<br>**€**|
|---|---|---|
|||7,576,549<br>889<br>0|
|||7,577,448|



_Page 27_ 



**ST. CATHERINE’S BRITISH SCHOOL Notes to the Accounts as at 31st August 2020** (All amounts in tables and notes are presented in € unless otherwise stated) 

## **14. ANALYSIS OF CHANGES IN NET DEBT** 


**----- Start of picture text -----**<br>
Other noncash   At 31 Aug<br>Cash and cash equivalents At 1 Sep 2019  Cash flows<br>changes 2020<br>Cash  4,151,539  738,982  0  4,890,521<br>Overdrafts 0  0  0  0<br>Cash equivalents 0  0  0  0<br>4,151,539  738,982  0  4,890,521<br>Borrowings<br>Debt due within one year (7,224) (7,515,276) 6,522,500  (1,000,000)<br>Debt due after one year  (777,750) 0  (6,522,500) (7,300,250)<br>(784,974) (7,515,276) 0  (8,300,250)<br>3,366,565  (6,776,294) 0  (3,409,729)<br>**----- End of picture text -----**<br>


## **15. CONTINGENT LIABILITIES** 

During May 2000, the School’s tax status was clarified with the tax authorities and the School was granted a Greek tax registration number. According to Greek tax legislation, tax returns are filed annually but the profits or losses declared for tax purposes remain provisional until such time as the tax authorities examine the returns and the records of the tax payer and a final assessment is issued.  As the School has never been audited by the tax authorities since inception, its liability for taxes, fines, duties and any other dues or actions that may be levied or taken against it by the said authorities is not considered finalised. 

Given the clarification of the School’s income tax status described above, the School’s principal activities are not subject to income taxes; as a result, the Directors believe that the possibility of realisation of such contingent tax liabilities is remote. 

Greek tax law 3842/2010 imposed, among others a special tax of 15% to various categories (entities or individuals) of real estate owners in Greece, simultaneously providing for certain exceptions. The School, as a not for profit organization, is exempted from the above mentioned tax. The law specified that a formal procedure of submitting an exception application and a zero tax return to the tax authorities had to be followed. The School did not file an exception application with the tax authorities, for the calendar year 2010 but it directly submitted a zero tax return. Management believes that, because the School is exempted of the above mentioned tax non strict implementation of the above formalities will not result in any additional tax burden. 

## **16. Post Balance Sheet Events** 

- (a) Bank Loans 

Since the year end the School has drawn a further €3,349,875 from NBG and Alpha Bank respectively increasing the loans to €7,500,000 each. 

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