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2021-08-31-accounts

THE BELL CONCORD EDUCATIONAL TRUST LIMITED

TRUSTEES' REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2021

Haysmacintyre LLP Chartered Accountants Registered Auditors

Registered Number: 01503040

Registered Charity Number: 326279

THE BELL CONCORD EDUCATIONAL TRUST LIMITED

CONTENTS

Page
Reference and Administration Details 3
Annual Trustees’ Report 4
Independent Auditors' Report 14
Consolidated Statement of Financial Activities 17
Charity & Consolidated Balance Sheets 18
Cash Flow Statement 19
Notes to the Financial Statements 20 - 33

THE BELL CONCORD EDUCATIONAL TRUST LIMITED

REFERENCE AND ADMINISTRATION DETAILS

PATRON Datuk Lim Chee Wah
TRUSTEES Dr I M Bride, Chairman
Mr A F S Donovan
Mr R G Dyson
Mr T C Hughes
Ms J Krasocki
Mrs R M Mannell
Mr P S Ruben
Dr C A Stanford
Mr B R Yates
Mr P Yong
OFFICERS Mr N G Hawkins, Principal (resigned 31/08/2021)
Dr M R Truss, Principal (appointed 01/09/2021)
Miss B M Dean, Bursar & Clerk to the Trustees
REGISTERED & Acton Burnell Hall
PRINCIPAL OFFICE Acton Burnell
Shrewsbury
Shropshire
SY5 7PF
BANKERS Barclays Bank PLC
44-46 Castle Street
Shrewsbury
Shropshire
SY1 2BU
AUDITORS Haysmacintyre LLP
Registered Auditors
10 Queen Street Place
London
EC4R 1AG
SOLICITORS Farrer & Co
66 Lincoln's Inn Fields
London
WC2A 3LH
INVESTMENT M&G Investments
MANAGERS 4th Floor
Governor's House
Laurence Pountney Hill
London
EC4R 0HH

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THE BELL CONCORD EDUCATIONAL TRUST LIMITED

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 AUGUST 2021

The Trustees, who are also the directors, present their annual report, incorporating their strategic report, on the affairs of the charity, together with the accounts and auditors’ report for the year ended 31 August 2021.

CONSTITUTION POLICIES

The Trust is a private company limited by guarantee. It is governed by its Memorandum and Articles of Association. It is registered as a charity (registered charity number: 326279).

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

The objects of the Trust are to promote and provide for the advancement of education and in particular to carry on, acquire and develop in the United Kingdom or elsewhere any boarding or day schools or colleges.

The Trust is responsible for the governance of Concord College, Acton Burnell, Shrewsbury, Shropshire, SY5 7PF. The College is an independent boarding school responsible for the delivery of the GCSE and GCE A level curriculum. In addition, the College also delivers courses during the summer months to students wishing to develop their English, Mathematics and Science skills and knowledge.

The short term aim of the College is to continue with the provision of high-quality education, the development of independent learning and confidence building to enable students to gain excellent academic success and to strengthen the College’s financial position. Alongside this is an aim to develop in all students a moral code of responsibility and tolerance towards their fellows together with an understanding and appreciation of British values. Some 80% of the students will return home to a country other than the United Kingdom and many will become leaders in that country having completed degree studies in leading British universities. Their experience in Concord should benefit intercultural and business relations between their home country and the United Kingdom for the benefit of both.

The medium to long term aim is to continue improving the provision of education to enable all students to compete with the very top of their international peer group and gain entry into leading universities.

The strategy for achieving these aims will be the continued recruitment, selection and retention of the very best staff and the development of facilities to ensure the delivery of academic and non-academic education in the best possible environment.

The primary objective of the Trust is to set the very highest standards in the provision of the education delivered. The College is unusual in that the majority of the students are resident outside the United Kingdom, coming from over 40 countries. In addition to helping the students realise their academic potential the staff strive to develop a sense of community, to engender a respect for each other's cultures and beliefs and to provide a wide range of activities to broaden their outlook and wellbeing.

The Board is aware of the obligations placed upon it by the Charities Act 2011 and confirms that it has complied with the duty placed upon it by this Act and has paid due regard to the Charity Commission guidance on public benefit. The College strives to accept students from as wide a range of countries and backgrounds as possible and seeks to admit all who meet our academic standards irrespective of their financial status.

This year, as in 2019/20, the challenges of the coronavirus pandemic have continued to have a far reaching impact on the College and its activities. Access to the College’s facilities by the wider community has been severely restricted, but when it is possible to return to ‘normal operations’ we will continue to provide support to local schools and the community through a number of outreach initiatives with various academic departments in the College, by offering its excellent theatre free of charge to schools and charities, by making the swimming pool (and lifeguards) available to local junior schools and the community, by offering free places on our summer course programme to local school children and by providing teacher support to local junior schools. Where possible, our outreach support with local schools is being conducted remotely. In addition, the students themselves look forward to continuing to provide concerts and other support for charitable events in Shrewsbury and the surrounding area.

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THE BELL CONCORD EDUCATIONAL TRUST LIMITED

TRUSTEES' REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

We offer both scholarships and means tested bursaries in order to attract the most able students irrespective of background. In 2020/21 scholarships to the value of £310.1k (£329.3k in 2019/20) were awarded on academic merit and bursaries to the value of £527.4k (£376.1k in 2019/20) were awarded to 39 students based on a means test of their parents (36 in 2019/20). This included support to those who had been severely affected by the coronavirus pandemic. Further funds have been earmarked in the coming year which will be promoted as widely as possible to market their availability.

It is particularly gratifying that many of those students awarded bursaries for full fee remission are the most successful in their achievements.

Section 172 statement

Director’s duties under Section 172(1) of the Companies Act require that a director of a company must act in the way he/she considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole and in doing so have regard to:

The Trustees of the Company have acted in good faith in a manner most likely to achieve the long-term success of the school in achieving its charitable objectives as described in the objects, aims, objectives and activities section of this report.

The Trustees have regard to the College's employees’ interests as described in the statement of engagement with employees, below.

Where possible, the College forms long-term relationships with suppliers to enable the College and its suppliers to have a more certain environment in which to operate. Further details are included in the statement of engagement with suppliers, customers and others, who are in a business relationship with the College, on page 6 of this report.

The Trustees have considered the impact of the College on the community in complying with the public benefit requirement as described in the objects, aims, objectives and activities section of this report.

The Trustees have considered the impact of the College on the environment as outlined in the carbon and energy reporting statement on pages 6 and 7 of this report.

The primary objective of the College is to set the very highest standards in the provision of the education delivered and is reflected in the achievements of the College during the year as detailed in the objects, aims, objectives and activities section of this report.

The Trustees recognise the importance of acting in good faith and fairly between the Trustees and other stakeholders of the College in a manner most likely to achieve the long-term success of the College in achieving its charitable objectives as described in the objects, aims, objectives and activities section of this report.

Statement of engagement with employees

The Trustees have regard to the College's employees' interests and meet regularly with the Senior Management Team. The Senior Management Team play an active role in the various Trustees' sub-committees and academic and support staff also participate.

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THE BELL CONCORD EDUCATIONAL TRUST LIMITED

TRUSTEES' REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

The Trustees are made aware of any employee issues at their regular Board and committee meetings and Trustees visit the College and meet with staff. During the pandemic Board and committee meetings have been held remotely and visits to the College by the Trustees have been limited, but regular communication has been maintained and the Chair of the Board and the Chair of the Welfare Committee visited in person to see at first hand the significant measures which had been implemented and arrangements made for the delivery of education, welfare support and health and safety.

The College has an inclusive policy for disabled employees and applications for employment are considered without reference to disability. Training and career development are also awarded without reference to disability.

The Trustees authorised significant additional expenditure to ensure that the College was able to implement measures to provide as coronavirus safe an environment as possible for the return of its employees and students.

The Trustees are monitoring the current pension provision for academic staff.

Statement of engagement with suppliers, parents, the community and others

The Trustees have regard to the need to foster the company's business relationships with its suppliers. The Trustees review the payment practices reports and are content that suppliers are paid on a timely basis. Throughout the 2020/21 lockdown period there was no change to normal payment practices and excellent relationships with the College's suppliers were maintained.

The Trustees have regard to the need to foster relationships with the parents of students, being the College's customers. At the end of the autumn term, approximately 125 students were unable to travel home to their own countries to be with their families for the Christmas holiday period, due to coronavirus related restrictions. They were accommodated at the College and provided with a full programme of activities. This required additional staffing and the Trustees were particularly grateful for the commitment shown by staff to ensure the welfare of these students was prioritised. At the end of the Christmas holiday period, a number of students returned for the start of the spring term just prior to the January lockdown and the College had approximately 230 students in residence throughout the lockdown period. In response to the lockdown and the provision of online teaching during the spring term, the Trustees reduced the spring term fees for students who were studying at home. The Trustees also supportrsar, comprise the Senior Management Team and the key management personnel. short term bursaries. The College will continue to support those in need on a case by case basis.

Fundraising

Very little fundraising is undertaken by the College. The main fundraising purpose is to develop a scholarship/bursary fund for future students and our main contacts in this regard are members of our alumni. No member is contacted regarding fundraising without their express permission and we have received no complaints during the year regarding our fundraising activities.

We are not registered with the Fundraising Regulator.

Carbon and energy reporting

In the reporting of carbon and energy the Trust has used the GHG Protocol Corporate Accounting and Reporting Standard (revised edition). Further emission factors were used from UK Government’s GHG Conversion Factors for Company Reporting 2021.

The College’s energy use for 2020/21 is slightly less than might normally be expected as the College had fewer students in residence during January, February and part of March 2021 and had no summer courses operating. There has been an increase in usage compared to 2019/20 as the College had a reduced staff and no students on campus for five months of that year, including the summer course period.

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THE BELL CONCORD EDUCATIONAL TRUST LIMITED

TRUSTEES' REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

The table below shows the key metrics that are being reported for Streamlined Energy and Carbon Reporting in the financial year 1 September 2020 to 31 August 2021.

----- Start of picture text -----
Summary for 1 September 2020 to 31 August 2021 Value
Total Energy Use 7,921,361 kWh
Total Greenhouse Gas Emissions (mandatory & voluntary) 1,949.3 tCO2
Total Students 587
Intensity Ratio 3.32 tCO2 per student
----- End of picture text -----

The table below provides a comparison of current emissions relative to the previous financial year. It is clear that there has been an increase in emissions, mainly due to the factors mentioned above. Also, based on local weather data, the 2020-21 year was 7.5% colder than 2019-20, which will have increased heating oil usage across the College, resulting in higher emissions.

----- Start of picture text -----
FY 1 Sept 19 to 31 FY 1 Sept 20 to 31
Area of Measurement Variance
Aug 20 Aug 21
Energy Use 6,878.5 MWh 7,921.4 MWh 15.2% increase
Greenhouse Gas Emissions 1,730.0 tCO2 1,949.3 tCO2 12.7% increase
2.96 tCO2 per 3.32 tCO2 per
Intensity Ratio 12.2% increase
student student
----- End of picture text -----

Over the last year, the College has invested in numerous projects, aimed at improving efficiency and reducing energy consumption. These activities are summarised below: -

The aforementioned projects are projected to save circa 223,985 kWh per annum, representing some 2.8% of total energy consumption.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational management

The business of the Trust is managed by the Board of Trustees and the Articles of Association stipulate that their number must not be less than four nor more than twelve. New Trustees are nominated and elected by the members of the Board of Trustees on the basis of professional qualities, experience, personal competence and availability and appointed where they have the necessary skills to contribute to the charity’s development. The Board of Trustees meets five times a year.

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THE BELL CONCORD EDUCATIONAL TRUST LIMITED

TRUSTEES' REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

There is an Executive Committee which meets with senior management to discuss policy and strategic matters. The Executive Committee reports to the Board. There is a Finance and Estates Committee which meets as necessary and with external advisers, from whom reports are received, as required. The Finance and Estates Committee reports to the Board. The Board ratifies the decisions of the Executive and Finance and Estates Committees. There is an Academic Committee, a Welfare Committee, a Marketing and Summer School Committee, an International Development Committee and a Compliance and Health and Safety Committee, all of which meet a number of times a year. The Board approves each year the delegated powers given to the Principal and Bursar to enable them to administer the daily working of the Trust. They are also supported by senior management personnel, namely the Vice Principal (Academic), Vice Principal (Pastoral) Head of Lower School and three Assistant Principals and they, together with the Principal and Bursar, comprise the Senior Management Team and the key management personnel.

New Trustees are inducted through meetings with the Chairman, the Principal, the Bursar and other members of the Senior Management Team, including an introduction to College policies and procedures. Training is provided both internally and through external sources and Trustees are regularly invited to attend courses designed to keep them informed and updated on current issues in the sector and regulatory requirements.

Remuneration for the key management personnel is set by the Board. Appropriate incentives are considered to encourage enhanced performance and for rewarding fairly and responsibly individual contributions to the College’s success. The appropriateness and relevance of the remuneration policy is reviewed annually including reference to comparisons with other independent schools to ensure that the College remains sensitive to the broader issues of pay and employment conditions elsewhere. Delivery of the Company’s charitable vision and purpose is primarily dependent on our key management personnel and staff costs are the largest single element of our charitable expenditure.

Corporate governance

The Board of Trustees seeks to have a governance framework that is fit for purpose, compliant and efficient. The Board supports the Charity Governance Code and has carried out a review which found that, with a small number of limitations, we apply the code and the Board is satisfied that our governance framework is both robust and fit for purpose. The areas in which we currently do not fully comply are recruitment processes, diversity, term limits and a triennial external review of Board performance, all of which are currently being addressed.

Trustees who served during the year are: Dr I M Bride, Mr A F S Donovan, Mr R G Dyson, Mr T C Hughes, Ms J Krasocki, Mrs R M Mannell, Mr P S Ruben, Dr C A Stanford, Mr B R Yates and Mr P Yong.

Group structure

During the year the Trust had one wholly owned subsidiary, Concord College International Limited (non-charitable), whose activities are covered later in this report.

STRATEGIC REPORT

ACHIEVEMENTS AND PERFORMANCE

During 2020/21 the challenges presented by the coronavirus pandemic continued to have a significant impact on the College’s performance and aspects of this are covered in other sections of this report.

When the Government instructed schools to close in January, those students who had not returned to the College for the start of the spring term continued their education with us remotely. We provided a full timetable of lessons throughout the spring term. The focus of the College was the continued delivery of education to all our students to ensure they were able to complete their studies for the year.

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THE BELL CONCORD EDUCATIONAL TRUST LIMITED

TRUSTEES' REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

With the number of students in residence on campus and the continued provision of remote education, all staff were fully employed.

As in 2020, our summer course programme for 2021 had to be cancelled. Our programme usually attracts c600 students from across the world to attend either in July or August to study English, Mathematics and Science or to participate in our University Preparation Course. We prepared an online Uni Prep course which was very successful. Although the lost income from the 2021 summer courses cannot be replaced, we have maintained strong links with our markets and are already receiving a number of enquiries for our 2022 courses.

With regard to examination successes, the College has enjoyed another excellent year.

In A level examinations, 98% of grades awarded were A, A or B, while 93.7% were A or A.

Of the 164 graduating students, 96.3% were admitted to their first choice university with 11 going on to Oxford or Cambridge and 81 to University College London (UCL), London School of Economics (LSE), Imperial College and Warwick University.

GCSE examinations were also excellent with 94% of grades awarded being Grade 7-9.

Equally important to the College is the emphasis placed on developing the broader aspects of education and many students participate in sporting activities as well as a wide range of outdoor education and team building skills and in voluntary work. Many take part in Art and Music in addition to their academic studies and this is reflected in the large numbers taking part in productions for charities, which will continue once more when coronavirus related restrictions are lifted.

It is particularly satisfying that so many speak of the maturity and personality which is manifested by our students.

The College continues its investment in improving its facilities, with refurbishment projects in a number of areas.

The undoubted success of the College is due to it having a team of highly committed and very able staff – academic, pastoral and support.

PLANS FOR THE FUTURE & GOING CONCERN

During the year the Trustees have been kept regularly updated on the changing situation regarding the impact of coronavirus on the College. This has included discussions to aid decision making regarding arrangements for students, on communication with parents and staff, on protecting the College’s financial position and on measures needed to provide a safe working environment specific to the coronavirus. They have regularly reviewed monthly financial management reports which include income and expenditure reports on actuals, variances to budget, comparisons to the previous year and forecasts, together with operating and projected cash flows. Forecasts for 2021/22 provide a surplus before depreciation of over £2.5m and it is hoped that the summer course programme will return. Projected cash flows provide a positive financial position and recruitment of main term students for future years is very strong.

Student numbers for our main term GCSE and A level courses for 2020/21 are very strong and, post year end, the College is operating close to capacity.

A small number of overseas students have delayed their return until later in the term or until January, mainly due to travel restrictions in their own countries, but they are being taught remotely by our teachers within their class groups to ensure their education is not disrupted.

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THE BELL CONCORD EDUCATIONAL TRUST LIMITED

TRUSTEES' REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

Due to the uncertainties of the coronavirus pandemic, the Board put on hold the next phase of the accelerated programme of capital developments to ensure that it protected its position of financial strength. Two projects are now being revisited – an extension of the Bursary to allow expansion and create offices to support its international development staff, and an extension to and redesign of its main kitchen and dining hall. The bank loan facility, of which £7.5m of the original £12.5m remains undrawn, will be utilised as needed. Taking all these factors into account, the Board has a reasonable expectation that the College has adequate resources to continue in operational existence for the foreseeable future and therefore continues to adopt the going concern basis in preparing the financial statements.

The Trustees continue to look for alternative income streams and discussions with a number of interested parties are ongoing to explore the setting up of overseas schools. Work on the provision of bespoke online courses is also continuing.

RISK MANAGEMENT & PRINCIPAL RISKS & UNCERTAINTIES

The Trustees have reviewed the major strategic, business and operational risks which the Trust faces. Systems have been established to enable regular reports to be produced so that necessary steps can be taken to mitigate these risks.

Risks are managed under the following headings: Board of Trustees, management and structure, financial management, staffing, facilities provision and maintenance, academic standards, marketing, health and safety, reputation, information systems, regulatory requirements and overseas campuses. A risk register is in place and is fully reviewed on an annual basis. The risk factor of each risk is reviewed alongside the corresponding control measures. It was last reviewed on 2 July 2021. Risk management is also discussed regularly at Board meetings.

Principal risks and mitigations are as follows, which include risks relating to the coronavirus pandemic:

Coronavirus and its impact on the recruitment of students. Online teaching has continued as needed to safeguard the delivery of education to all students to cover events of absence due to quarantine, travel restrictions or other reasons. The upgrade of the IT network in 2020 ensured a robust connectivity in all buildings to support online lessons in all bedrooms in all boarding residences. Online marketing events have been attended to maintain exposure to our market. Engagement with potential students has been maintained with online tours of the College and interaction with College staff. Virtual open days have been organised and have been well attended.

Coronavirus and the control of infection in the College community. Risks have continued to be assessed on a day-today basis, regular communication has been maintained with all stakeholders, risk assessments have been updated regularly, guidance has been updated regularly, protective measures have remained in placed to protect the whole College community, enhanced cleaning/hygiene procedures have continued, there has been continuous monitoring of practices and procedures and there have been regular meetings of the coronavirus risk group. Guidance has been followed from government sources and other regulatory bodies.

Coronavirus and its financial impact. The impact of the pandemic on fee income has been carefully monitored and costs have been tightly controlled.

Increase in taxation, removal of charitable status and uncertainties for the future of independent education. These are being monitored.

Market dependence, loss of a key market, global economic fluctuations and the affordability of fees. The marketing strategy includes actively promoting the College with visits by senior management personnel to all the main countries from which it recruits students and also visiting other countries to explore the development of new markets. A contingency plan is in place to counteract the immediate effect of the loss of a key market. Fee increases are carefully considered to take into account the strength of sterling in the countries from which the College recruits. Discounts and bursaries are awarded to enable students who fulfil the College’s academic criteria to attend, regardless of their ability to pay fees. Online meetings and attendance at education fairs are now a regular occurrence due to the travel restrictions imposed by the coronavirus pandemic and the College is actively marketing all courses to maximise exposure and protect its income stream.

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THE BELL CONCORD EDUCATIONAL TRUST LIMITED

TRUSTEES' REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

Loss of key personnel. Terms and conditions of employment are regularly reviewed and provision is made to encourage professional development and enhanced skills through training.

Security of IT systems. An ICT strategy has been developed to improve the ICT network and its protection through improved firewalls, antivirus and malware protection.

The effect of regulation and legislation. Internal processes have been developed to address legal and regulatory compliance including the allocation of responsibility and accountability to key personnel. The management of legal and regulatory compliance for boarding schools is further supported by the Senior Management Team to aid the College’s self-assessment and enable a plan of continuous improvement.

FINANCIAL REVIEW

The results for this year have been significantly impacted by the coronavirus pandemic, the major factors being the closure of schools by the Government in January and the cancellation of the College’s summer course programme, which resulted in the loss of almost £3m in fee income.

Regular meetings of the Board have been held throughout the year to enable the Trustees to regularly review income and expenditure against budget provisions and monthly cash flow analysis against projections as part of the robust financial controls in place. The Trustees also review each year the delegated powers given to the Finance and Estates Committee with regard to financial controls.

The financial statements reflect the activities and results of the Trust and its subsidiary, Concord College International Limited.

The group had net income of £3,683,342 for the year (£1,315,796 in 2020), with fee income reduced for the second year running as a direct result of a reduction in spring term fees and the cancellation of the summer course programme. The recovery of financial markets resulted in the value of long term investments exceeding their previously highest value, which was a significant contributor to the positive year end position, compared to the fall in 2020.

On the basis of the current situation, the financial stability of the College remains strong. Main term student numbers were comparable to 2019/20 and despite the impact of the coronavirus on the global economy, the bad debt position was very low. Payment of fees was slower than usual for the spring term and second half year, but the position recovered during the summer term as students returned with confidence and the College continued to provide a first class education. A healthy cash flow position was maintained throughout the year.

Revenue expenditure was 4.9% higher than in 2019/20. The main contributors were an increase in welfare staffing costs related to the Christmas holiday period when students remained in College, the hire of a large marquee to provide additional catering capacity to accommodate social distancing, the hire of isolation pods and a coronavirus medical centre, increased costs on food, heating, lighting and water in relation to students being in College throughout the academic year and during all holidays other than the summer, and commission payments to agents for the recruitment of additional students to replace late withdrawals in the summer of 2020 due to coronavirus concerns.

Capital expenditure during the year was very low at £295k, with major projects having been put on hold because of the coronavirus pandemic and the uncertainties of its ongoing impact.

The Trust's main source of income is through the charging of fees and its charitable status ensures that parents have the assurance that all income is reinvested in the College for the benefit of current and future students.

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THE BELL CONCORD EDUCATIONAL TRUST LIMITED

TRUSTEES' REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

The appeal to alumni continued with the specific aim of providing scholarships and bursaries to academically bright and financially poor students. The fund is administered by a committee of selected Trustees and alumni. The fund is a restricted fund and is managed in a separately identifiable account. Donations during the year to the Anthony Morris bursary and scholarship foundation amounted to £79,150 (£154,551 in 2020).

The Trust’s trading subsidiary, Concord College International Limited, continued as its trading arm. Any profits made by the Company, in excess of operating needs, are gift aided to the Trust. The Shanghai Concord Bilingual School, which opened in September 2017, has had a successful third year and student numbers have increased further. Opportunities to create other international schools continue to be explored.

Reserves policy

The College, in common with other independent schools, does not now have free general reserves. The day to day operations of the College are controlled by careful management of both income and expenditure and cash requirements. These are monitored by the Trustees at regular Board meetings. The Trust also maintains a portfolio of investments to provide the liquidity needed to sustain high standards in the event of a temporary fall in student numbers. These investments could be liquidated quickly should the need arise.

There has been further investment in the infrastructure and facilities of the College during the year and this is reflected in the level of reserves held. Total funds as at 31 August 2021 were £42,443,988 (£38,760,646 in 2020). Of these, £670,278 (£591,128 in 2020) was held in the restricted fund highlighted above, with the remaining funds of £41,773,710 invested in fixed assets (£38,169,518 in 2020).

The Trust's total portfolio of investments is currently held in the M&G Charifund and M&G Global Dividend Fund. The objective of Charifund is to provide a high and growing income for charities, while at the same time protecting capital growth from the erosive effects of inflation over a rolling 10 year period. Normally the Manager's policy is to invest in a portfolio mainly of equities and convertible stocks to provide a yield significantly more than that of the FTSE AllShare Index. The Global Dividend Fund's objective is to provide income and growth, with at least 70% of investment in shares of companies from anywhere in the world. The performance of both funds from January 2020 was adversely affected by the impact of the coronavirus on global markets, with Charifund falling by 14.52% and the Global Dividend Fund falling by 1.9% during 2019/20. The funds fell further during September and October 2020, after which there was significant recovery which continued throughout the remainder of the year to Augustrsar, comprise the Senior Management Team and the key management personnel. short term bursaries. The College will continue to support those in need on a case by case basis.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees, who are also the directors of the charitable company, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the Trustees are required to:

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THE BELL CONCORD EDUCATIONAL TRUST LIMITED

TRUSTEES' REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

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

So far as each of the Trustees is aware at the time the report is approved:

AUDITORS

The Auditors, Haysmacintyre LLP, have expressed their willingness to be re-appointed as auditors of the Trust in accordance with Section 485 of the Companies Act 2006.

The Trustees have approved and authorised the Trustees Report including the Strategic Report at its meeting on 3 December 2021 and it was signed on its behalf by

Dr I M Bride

3 December 2021

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

THE BELL CONCORD EDUCATIONAL TRUST LIMITED

Opinion

We have audited the financial statements of The Bell Concord Educational Trust for the year ended 31 August 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, 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 group’s and the parent charitable company’s affairs as at 31 August 2021 and of the group’s net movement in funds, including its income and expenditure, for the year then ended;

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 requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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.

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’ Annual Report (which includes the strategic report and the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors’ report included within the Trustees’ Annual Report have been prepared in accordance with applicable legal requirements.

14

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

THE BELL CONCORD EDUCATIONAL TRUST LIMITED (continued)

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’ Annual Report (which incorporates the strategic report and 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:

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on pages 12 and 13, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the 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 parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in 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:

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to ISI regulations, safeguarding regulations, health and safety law, GDPR and employment law and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011, and payroll tax.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:

15

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

THE BELL CONCORD EDUCATIONAL TRUST LIMITED (continued)

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.

Richard Weaver (Senior Statutory Auditor)

For and on behalf of Haysmacintyre LLP (Statutory Auditors)

Date:

10 Queen Street Place London EC4R 1AG

16

THE BELL CONCORD EDUCATIONAL TRUST LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2021

(INCORPORATING INCOME & EXPENDITURE ACCOUNT)

Notes
Income from:
Charitable activities
School fees receivable
1
Other academic income
Other College activities
Rental and sale of fixed assets
2
Furlough grants
2
Other trading activities
Concord College International Limited
3
Investments
Bank and other interest
Donations
Donations
Total income
Expenditure on:
4
Raising funds
Charitable activities
Trading activities
Corporation tax liability on trading activities
Total expenditure
Net (loss) / gain on investments
11
Net income and net movement of funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
17
Operating result for the year before
gains/losses on investments		 Unrestricted
Funds
£
22,051,657
646,822
11,600
-
378,085
-
-
23,088,164
515
20,936,301
43,257
-
20,980,073
2,108,091
1,496,101
3,604,192
38,169,518
41,773,710		 Restricted
Funds
£
-
-
-
-
-
-
79,150
79,150
-
-
-
-
-
79,150
-
79,150
591,128
670,278		 2021
Total
£
22,051,657
646,822
11,600
-
378,085
-
79,150
23,167,314
515
20,936,301
43,257
-
20,980,073
2,187,241
1,496,101
3,683,342
38,760,646
42,443,988		 2020
Total
£
20,028,141
739,334
1,100
691,780
302,501
24,128
154,551
21,941,535
515
20,050,357
22,223
-
20,073,095
1,868,440
(552,644)
1,315,796
37,444,850
38,760,646

No summary income and expenditure account has been prepared because this information is clearly identified in the above statement.

There were no recognised gains and losses other than those shown in the above Statement of Financial Activities.

The accompanying notes form an integral part of this Statement of Financial Activities.

17

THE BELL CONCORD EDUCATIONAL TRUST LIMITED

CHARITY AND CONSOLIDATED BALANCE SHEETS - COMPANY NUMBER 01503040

AS AT 31 AUGUST 2021

Note
Fixed assets
Tangible fixed assets
10
Investments
11
Current assets
Stocks
Debtors
12
Cash at bank and in hand
Creditors: due within
13
one year
Net current assets / (liabilities)
Bank loan
14
Net assets
Represented by:
Unrestricted (general) funds:
Designated funds:
Fixed assets fund
17
Restricted fund
17		 s
£
£
£
42,421,125
6,319,874
48,740,999
77,788
105,765
374,084
632,276
18,836,626
13,426,785
19,288,498
14,164,826
(20,585,509)
(19,377,696)
(1,297,011)
(5,000,000)
42,443,988
41,773,710
41,773,710
670,278
42,443,988
Group
2021
20		 s
£
£
£
42,421,125
6,319,874
48,740,999
77,788
105,765
374,084
632,276
18,836,626
13,426,785
19,288,498
14,164,826
(20,585,509)
(19,377,696)
(1,297,011)
(5,000,000)
42,443,988
41,773,710
41,773,710
670,278
42,443,988
Group
2021
20		 £
44,149,743
4,823,773
48,973,516
(5,212,870)
(5,000,000)
38,760,646
38,169,518
38,169,518
591,128
38,760,646
20		 £
£
£
42,421,125
6,319,875
48,741,000
77,788
105,765
416,920
484,915
18,458,961
13,293,868
18,953,669
13,884,548
(20,585,509)
(19,377,696)
(1,631,840)
(5,000,000)
42,109,160
41,438,881
41,438,881
670,278
42,109,159
2021
20
Charity		 £
£
£
42,421,125
6,319,875
48,741,000
77,788
105,765
416,920
484,915
18,458,961
13,293,868
18,953,669
13,884,548
(20,585,509)
(19,377,696)
(1,631,840)
(5,000,000)
42,109,160
41,438,881
41,438,881
670,278
42,109,159
2021
20
Charity		 £
44,149,743
4,823,774
20
48,973,517
(5,493,148)
(5,000,000)
14,164,826
(19,377,696)		 13,884,548
(19,377,696)
38,480,369
37,889,240
37,889,240
591,128
38,480,368

APPROVED AND AUTHORISED FOR ISSUE BY THE BOARD AND SIGNED ON ITS BEHALF ON 3 DECEMBER 2021 BY

DR I M BRIDE CHAIRMAN OF THE BOARD OF TRUSTEES

The accompanying notes are an integral part of these balance sheets.

18

THE BELL CONCORD EDUCATIONAL TRUST LIMITED

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 AUGUST 2021

Note
£
£
Net cash outflow from operations
Net cash provided by operating activities
(i)
5,693,781
Cash flows from investing activities:
Investment income - interest and other income
-
Sale of tangible fixed assets
11,000
Purchase of investments
-
Purchase of tangible fixed assets
(294,940)
Net cash provided by investing activities
(283,940)
Cash flows from financing activities:
Increase in bank loan
-
Net cash provided in financing activities
-
Change in cash and cash equivalents in the
5,409,841
reporting period
Cash and cash equivalents at the beginning of the
13,426,785
reporting period
Cash and cash equivalents at the end of the
(ii)
18,836,626
reporting period
Notes:
(i) Reconciliation of net income to net cash flow from operating activities
£
£
Net movement in funds
3,683,342
Adjustments for:
Depreciation
2,023,558
(Profit) / loss on sale of fixed assets
(11,000)
Investment income
-
Net (gain) / loss on investments
(1,496,101)
(Increase) / decrease in debtors
258,192
(Decrease) / increase in creditors
1,207,813
(Increase) / decrease in stocks
27,977
2,010,439
Net cash provided by operating activities
5,693,781
(ii) Analysis of cash to cash equivalents
2021
£
Cash at bank and in hand
18,836,626
2021
2021		 £
£
2,218,531
24,128
-
-
(1,044,117)
(1,019,989)
-
-
1,198,542
12,228,243
13,426,785
£
£
1,315,796
2,008,912
-
(24,128)
552,644
(222,574)
(1,389,271)
(22,848)
902,735
2,218,531
2020
£
13,426,785
2020
2020		 £
£
2,218,531
24,128
-
-
(1,044,117)
(1,019,989)
-
-
1,198,542
12,228,243
13,426,785
£
£
1,315,796
2,008,912
-
(24,128)
552,644
(222,574)
(1,389,271)
(22,848)
902,735
2,218,531
2020
£
13,426,785
2020
2020
2,218,531
2020
£
13,426,785

19

THE BELL CONCORD EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

ACCOUNTING POLICIES

A summary of the principal accounting policies adopted (which have been applied consistently, except where noted) is set out below.

Basis of preparation

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Companies Act 2006 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - effective 1 January 2019.

The company has taken advantage allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities.

General information

The Charity is a company limited by guarantee, incorporated in England and Wales (company number: 01503040 and charity number: 326279. The Charity’s registered office address is: Acton Burnell Hall, Acton Burnell, Shrewsbury, Shropshire, SY5 7PF.

The accounts are drawn up on the historical cost basis of accounting, as modified by the revaluation of investments.

Going concern

Having reviewed the funding facilities available to the College together with the expected ongoing demand for places and the College’s future projected cash flows, the Board has a reasonable expectation that the College has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the College’s financial viability. Accordingly, the Board continues to adopt the going concern basis in preparing the financial statements.

Public benefit

The Company, incorporated on 19 June 1980, is a Public Benefit Entity registered as a charity in England and Wales and a company limited by guarantee.

Trading subsidiary

The wholly owned trading subsidiary of the Trust, Concord College International Limited, has been active during the year in exploring opportunities for the development of international schools overseas and in the UK. The results of the year for assets and liabilities for the Company have been consolidated into these accounts on a line by line basis.

Critical accounting judgements and estimates and key sources of estimation uncertainty

In the application of these accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management’s best knowledge of the amount, events or actions, actual results may ultimately differ from those estimates.

20

THE BELL CONCORD EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects current and future periods. The Trustees consider the following items to be areas subject to estimation and judgement:

Depreciation:

The useful economic lives of tangible fixed assets are based on management’s judgement and experience. When management identifies that actual useful economic lives differ materially from the estimates used to calculate depreciation, that charge is adjusted retrospectively. Although tangible fixed assets are significant, variances between actual and estimated useful economic lives will not have a material impact on the operating results. Historically, no changes have been required.

The following principal accounting policies have been applied:

Income and endowments

All income and endowments are recognised when the criteria of entitlement, measurement and probability of receipt have been satisfied. Tuition and boarding fees, less any allowances, bursaries or scholarships awarded, are recognised in the period in which they are received. There is no advanced fee fund scheme in place; on occasion, some parents may attempt to pay for fees in advance but they are free to utilise their account balances as they see fit which may include the anticipation of future invoices or the immediate need for school trips and visits. Consequently, the most appropriate method to treat fee income is to allocate it in the period it is received.

Donations and legacies are recognised when the conditions of entitlement, probability and measurement are met. Where the probability and/or measurement criteria for legacies and donations are not satisfied as at the balance sheet date but subsequent events resolve the uncertainty such that the criteria are met, an adjustment is made to recognise the income.

Investment income from dividends, bank balances and fixed interest securities is included when receivable and the amount can be measured reliably by the College. Dividends are recognised once the dividend has been declared and notification has been received that the dividends are due.

Expenditure

Expenditure is accounted for on an accruals basis where there is a legal and constructive obligation to make a payment to a third party and the amount of the obligation can be measured reliably, expenditure is allocated to the appropriate headings relevant to the charitable activities. Expenditure is recognised as soon as the related liability is incurred and has been classified under headings that aggregate all costs relating to that category. Liabilities are recognised as soon as there is a legal or constructive obligation committing the Charity to the expenditure. Employment benefits, including holiday pay, are recognised in the period in which they are earned. Termination benefits are recognised in the period in which the decision is made and communicated to the relevant employee(s). Expenditure on raising funds comprises commissions, advertising and marketing and associated travel and subsistence. Expenditure on charitable activities comprises personnel, catering and domestic, property, repairs and maintenance, rent, rates, light and heat, student supplies and services, depreciation, motor and travel, office overheads and insurance.

Support costs represent indirect costs relating to raising funds and the Charity’s charitable activities. Support costs, including governance costs, are allocated to activities on bases that represent the Trustees’ best estimate of actual use. The bases used to allocate costs to the above categories of expenditure are set out in note 5.

Governance costs comprise the costs of running the charity, including strategic planning for its future development, auditors’ remuneration, certain legal costs and all costs of complying with constitutional and statutory requirements, such as costs of Board meetings and preparing the statutory accounts and are included in note 6.

21

THE BELL CONCORD EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

Pension costs

Retirement benefits to employees of the College are provided through two pension schemes. The pension costs charged in the Statement of Financial Activities are determined as follows:

(a) The Teachers’ Pension Scheme - This scheme is a multi-employer pension scheme. It is not possible to identify the College’s share of the underlying assets and liabilities of the Teachers’ Pension Scheme on a consistent and reasonable basis and therefore, under FRS 102, the scheme is accounted for as if it were a defined contribution scheme. The College’s contributions, which are in accordance with the recommendations of the Government Actuary, are charged in the period in which the salaries to which they relate are payable.

(b) The Pensions Trust Flexible Retirement Plan - The plan is a multi-employer defined contribution money purchase scheme. All contributed costs are accounted for on the basis of charging the cost of providing pensions over the period when the College benefits from the employees’ services. The College has no further liability under the scheme.

Operating leases

Rentals under operating leases are charged on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Tangible fixed assets

Assets are capitalised if they have a value over £2,500, with occasional variations (eg computers).

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold property 2% straight line (except new sports hall six years, temporary classrooms three
years)
Plant and machinery 20% straight line
Motor vehicles 20% straight line
Fixtures and fittings 20% straight line
Computers 33.33% straight line

No depreciation is provided on freehold land.

Investments

Investments held for the long-term to generate income or capital growth are carried at fair value as fixed assets. Realised gains are the difference between sales proceeds and the carrying value of the investment. The carrying value is the fair value at the beginning of the year or the purchase cost where the investment was acquired during the year. Unrealised gains are the change in value of investments after taking into account any movements in investment holdings such as purchases and disposals of investments. Realised and unrealised gains are accounted for within the Statement of Financial Activities.

Stock

Stock represents goods for resale and is valued at the lower of cost and net realisable value.

Financial instruments

Basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable are accounted for on the following basis:

22

THE BELL CONCORD EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within current liabilities.

Debtors and creditors

Debtors and creditors are measured at the transaction price less any provision for impairment. Any losses arising from impairment are recognised as expenditure.

Fund accounting

The charitable trust funds of the College are accounted for as unrestricted or restricted income in accordance with the terms of trust imposed by the donors or any appeal to which they may have responded.

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Trust and which have not been designated for other purposes. Designated funds are funds set aside by the Trustees for particular purposes where their use remains at the discretion of the Trustees.

Restricted funds represent amounts donated to the College for specific purposes such as funding building developments, scholarships, bursaries and prizes.

23

THE BELL CONCORD EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

1. Charitable activities - fees receivable

Fees receivable consist of:
Gross fees: Main term
Gross fees: charges for half terms, Christmas & Easter
Gross fees: Summer courses
Less: total bursaries, scholarships and allowances		 2021
£
23,374,804
521,125
58,135
(1,902,407)
22,051,657		 2020
£
21,996,770
-
24,650
(1,993,279)
20,028,141

Scholarships, bursaries and allowances were paid to 138 pupils (139 pupils in 2019/20). Within this, means tested bursaries totalling £527,368 were paid to 39 pupils (£376,162 to 36 pupils in 2019/20).

2. Other College income

Rental income
Profit on sale of fixed assets
Furlough grants		 2021
£
600
11,000
11,600
0		 2020
£
600
500
1,100
691,780

3 Income from subsidiary's trading activities

Turnover
Costs of trading
Gross profit
Administrative expenses
Operating profit
Retained profit
Current assets
Current liabilities
Net assets/(liabilities)		 2021
£
378,085
0
378,085
(43,257)
334,828
334,828
378,245
(43,416)
334,829		 2020
£
302,501
(5,431)
297,070
(16,793)
280,277
280,277
294,252
(13,974)
280,278

The Trust owns the whole of the £1 ordinary share capital of Concord College International Limited, incorporated in England. The principal activity of the Company is to provide business and consultancy services. Its trading results for the period, as extracted from the audited accounts, are summarised above.

The management charge from The Bell Concord Educational Trust Limited to Concord College International Limited was £43,257 (£16,792 in 2020).

24

THE BELL CONCORD EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

4.
Analysis of total resources expended
Total expenditure
Cost of raising funds
Fundraising
Total for the charity
Trading costs of subsidiary activities
Total for the group
Charitable expenditure
Teaching costs
Welfare
Premises
Other academic costs
Support costs of schooling
(including governance)
Total charitable expenditure
Total resources expended for the group
Comparisons to 2020:
Cost of raising funds
Fundraising
Total for the charity
Trading costs of subsidiary activities
Total for the group
Charitable expenditure
Teaching costs
Welfare
Premises
Other academic costs
Support costs of schooling
(including governance)
Total charitable expenditure
Total resources expended for the group		 Staff costs
(note 8)
£
-
-
-
-
7,199,142
3,181,657
1,172,881
-
1,554,880
13,108,560
13,108,560
Staff costs
£
-
-
-
-
7,017,139
2,755,312
1,113,836
-
1,505,739
12,392,026
12,392,026		 Depreciation
(note 10)
£
-
-
-
-
653,482
92,461
1,277,615
-
-
2,023,558
2,023,558
Depreciation
£
-
-
-
-
597,298
85,323
1,326,291
-
-
2,008,912
2,008,912		 Other
£
515
515
43,257
43,772
1,037,873
1,353,390
1,365,187
558,936
1,488,797
5,804,183
5,847,955
Other
£
515
515
22,223
22,738
1,259,510
1,176,704
1,142,220
608,716
1,462,269
5,649,419
5,672,157		 Total
2021
£
515
515
43,257
43,772
8,890,497
4,627,508
3,815,683
558,936
3,043,677
20,936,301
20,980,073
Total
2020
£
515
515
22,223
22,738
8,873,947
4,017,339
3,582,347
608,716
2,968,008
20,050,357
20,073,095

25

THE BELL CONCORD EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

5. Analysis of direct and allocated costs

Support costs all relate to the direct operating costs of the College and principally comprise the following:

Administration and related costs
Promotion and related costs
Governance (see note 6)
6. Governance
Trustees' travel
Trustees training
Audit and accountancy
Professional and registration fees
7. Grants, awards and prizes
From unrestricted funds:
Bursaries
Scholarships
Discounts
8. Staff costs
Salaries and wages
Social security costs
Pension contributions
BUPA
PHI, DIS & personal accident
Other staff related costs		 2021
£
2,075,162
945,271
23,244
3,043,677
2021
£
471
50
22,170
553
23,244
2021
£
527,368
310,069
1,064,970
1,902,407
2021
£
10,311,376
1,068,809
1,459,377
62,152
128,092
78,754
13,108,560		 2020
£
2,088,977
855,014
24,532
2,968,523
2020
£
1,259
-
22,740
533
24,532
2020
£
376,162
329,341
1,287,776
1,993,279
2020
£
9,719,130
1,005,787
1,421,188
42,781
110,981
92,159
12,392,026

26

THE BELL CONCORD EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

2021 2020
£ £
Aggregate employee benefits of key management personnel 1,088,018 1,037,704

Neither the Trustees nor persons connected with them received any remuneration or other benefits from the College. 2 Trustees (2020: 12) were reimbursed travel, accommodation and other expenses relating to their duties as Trustees during the year amounting to £522 (2020: £14,135) which includes amounts paid directly to third parties on behalf of Trustees during the year totalling £50 (2020: £2,533).

mber of higher paid employees in bands of: 2021 2020
£60,001 to £70,000 14 10
£70,001 to £80,000 4 5
£80,001 to £90,000 4 1
£130,001 to £140,000 - 1
£140,001 to £150,000 1 -
£210,001 to £220,000 1 1

Number of higher paid employees in bands of:

The average weekly number of full-time equivalent employees during the year was made up as follows:

Teaching
Teaching support
Welfare
Premises
Support (including management and administration)
Premises
Average headcount:
Teaching
Teaching support
Welfare
Support (including management and administration)		 No of
FTEs
91
13
84
30
35
253
99
24
122
32
36
313		 No of
FTEs
94
12
89
29
36
260
101
25
122
30
39
317

27

THE BELL CONCORD EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

9. Net income 2021 2020
£ £
Net income includes:
Auditors’ remuneration (including VAT) for:
Audit 24,000 23,310
Other services 3,450 5,580
Depreciation 2,023,558 2,008,912
Operating lease costs 44,120 31,631

10.Tangible fixed assets

Group and Charity
Cost
At 1 September 2020
Additions
Disposals
At 31 August 2021
Depreciation
At 1 September 2020
Charge for the year
Disposals
At 31 August 2021
Net carrying value
at 31 August 2021
Net carrying value
at 31 August 2020		 Freehold
Land and
Buildings
£
51,272,869
35,779
51,308,648
9,834,092
980,629
10,814,721
40,493,927
41,438,777		 Plant,
Machinery &
Equipment
£
5,279,974
162,504
5,442,478
3,761,866
536,274
4,298,140
1,144,338
1,518,108		 Motor
Vehicles
£
229,174
71,982
(42,771)
258,385
207,952
10,572
(42,771)
175,753
82,632
21,222		 Furniture
and Fittings
£
4,623,127
24,675
4,647,802
3,451,491
496,083
3,947,574
700,228
1,171,636		 Total
61,405,144
294,940
(42,771)
61,657,313
17,255,401
2,023,558
(42,771)
19,236,188
42,421,125
44,149,743

On 20 April 2017 the College entered into a loan agreement with Barclays Bank Plc. There is legal charge over the freehold of various properties (land and buildings) owned by the College on the College site and in the village of Acton Burnell (see note 14).

28

THE BELL CONCORD EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

11. Investments

Market value brought forward
Net gain / (loss) on investments
Cash on deposit
Market value carried forward
Historical cost
Investments comprise:
Listed investments in the UK
Unlisted investments in the UK		 2021
£
4,823,774
1,496,101
6,319,875
-
6,319,875
3,678,665
2021
£
6,319,874
1		 2020
£
5,376,418
(552,644)
4,823,774
-
4,823,774
3,678,665
2020
£
4,823,773
1

Unlisted investments relate to the charitable company holding a £1 share in the wholly owned subsidiary, Concord College International Limited, registered in the UK (company number 10783635) and incorporated on 22 May 2017.

12.
Debtors
Tuition fees
Prepayments
Other debtors
Amount due from trading subsidiary		 2021
2020
£
£
61,491
26,751
312,593
444,190
-
161,335
-
-
374,084
632,276
Group		 2021
2020
£
£
61,491
26,751
312,013
444,190
-
-
43,416
13,974
416,920
484,915
Charity		 2021
2020
£
£
61,491
26,751
312,013
444,190
-
-
43,416
13,974
416,920
484,915
Charity
484,915

29

THE BELL CONCORD EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

13. Creditors: due within one year - Charity and Group

Trade creditors
Accruals and other creditors
Fees received in advance
Deposits
Other taxes and social security
Capital expenditure		 2021
£
345,428
644,344
13,205,907
6,056,723
251,398
81,709
20,585,509		 2020
£
244,991
485,580
12,181,450
6,188,857
244,335
32,483
19,377,696

14. Long term loan

On 20 April 2017 the College entered into a loan agreement with Barclays Bank Plc for £12,500,000 repayable over 25 years. Interest charged is linked to LIBOR. As at 31 August 2021 £5,000,000 had been utilised.

15.
Financial instruments
Financial assets measured at amortised cost (a)
Financial assets measured at fair value (b)
Financial liabilities measured at amortised cost (c)
Net financial assets measured at amortised cost and fair value		 2021
£
18,898,117
6,319,875
(20,334,111)
4,883,881		 2020
£
13,453,536
4,823,774
(19,133,361)
(856,051)

(a) Financial assets include cash, trade and fee debtors, other debtors, accrued income (b) Financial assets held at fair value include assets held as investments

(c) Financial liabilities include deposits, fees in advance, trade creditors, accruals and other creditors

Impairment losses charged to financial assets measured at amortised cost in the year amounted to £69,358 (2020: £55,363).

16. Leases

At 31 August 2021, the College had the following future minimum operating lease commitments:

up to 1 year
between 1 - 5 years
more than 5 years
Total		 2021
£
44,426
66,639
-
111,065		 2020
£
44,426
114,767
-
159,193

Amounts charged to the Statement of Financial Activities are £44,120 (2020: £31,631)

30

THE BELL CONCORD EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

17. Statement of funds: movements in the year

Designated funds
Fixed assets fund
General fund
Total unrestricted funds
Restricted funds
Total funds
Comparisons to 2020:
Designated funds
Fixed assets fund
General fund
Total unrestricted funds
Restricted funds
Total funds		 1 September
2020
£
38,169,518
-
38,169,518
591,128
38,760,646
1 September
2019
£
37,008,273
-
37,008,273
436,577
37,444,850		 Income
£
-
23,088,164
23,088,164
79,150
23,167,314
Income
£
-
21,786,984
21,786,984
154,551
21,941,535		 Expenditure
£
-
(20,980,073)
(20,980,073)
-
(20,980,073)
Expenditure
£
-
(20,073,095)
(20,073,095)
-
(20,073,095)		 Transfers/
gains/losses
£
3,604,192
(2,108,091)
1,496,101
-
1,496,101
Transfers/
gains/losses
£
1,161,245
(1,713,889)
(552,644)
-
(552,644)		 31 August
2021
£
41,773,710
-
41,773,710
670,278
42,443,988
31 August
2020
£
38,169,518
-
38,169,518
591,128
38,760,646

Designated funds have been set aside by the Trustees as described in the Reserves Policy on page 12.

The transfer from the Reserves Fund to the Fixed Asset Fund represents the investment in fixed assets during the year or such lesser amount as is available from free reserves.

Restricted funds:

Scholarship fund - the scholarship fund was set up during 2016 to receive donations for the funding of scholarships and bursaries for deserving students.

18. Taxation

The Trust is a registered charity and no taxation is payable on its charitable income.

19. Capital commitments

At the year end, commitments for future capital expenditure totalled £nil (£nil in 2020).

31

THE BELL CONCORD EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

20.
Analysis of net assets between funds of the charity and group
Unrestricted
Funds
2021
£
Tangible fixed assets
42,421,125
Fixed asset investments
6,319,874
Current assets
18,239,975
Creditors due within one year
(20,585,509)
Creditors due in more than one year
(5,000,000)
Total for charity
41,395,465
Subsidiary
378,245
Total for group
41,773,710
Comparison to 2020:
Unrestricted
Funds
2020
£
Tangible fixed assets
44,149,743
Fixed asset investments
4,823,773
Current assets
13,279,446
Creditors due within one year
(19,377,696)
Creditors due in more than one year
(5,000,000)
Total for charity
37,875,266
Subsidiary
294,252
Total for group
38,169,518		 Restricted
Funds
2021
£
-
-
670,278
-
-
670,278
-
670,278
Restricted
Funds
2020
£
-
-
591,128
-
-
591,128
-
591,128		 Total
Funds
2021
£
42,421,125
6,319,874
18,910,253
(20,585,509)
(5,000,000)
42,065,743
378,245
42,443,988
Total
Funds
2020
£
44,149,743
4,823,773
13,870,574
(19,377,696)
(5,000,000)
38,466,394
294,252
38,760,646

32

THE BELL CONCORD EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

21. Pensions

The company contributes to two pension schemes for the benefit of staff as follows.

Teachers' Pension Scheme

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £1,112,160 (£1,077,425 in 2019/20) and at the year-end £132,770 (£132,873 in 2019/20) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgement that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards.

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.

Until a remedy to the discrimination conclusion has been determined by the Employment Tribunal it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly, no provision for any additional past benefit pension costs is included in these financial statements.

Group Personal Pension Plans

The company operates group personal pension plans for its non-teaching staff. Contributions are made to separately administered funds managed by The Pensions Trust.

Contributions charged to the Statement of Financial Activities during the year totalled £347,217 (£335,276 in 2019/20). Amounts outstanding at the year-end totalled £50,560 (£49,020 in 2019/20).

22. Events after balance sheet date

There were no events after the balance sheet date.

23. Related party transactions

There were no related party transactions in the year.

33