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2021-08-31-accounts

Company No. 1196898 Registered in England Charity No. 503975

NEWCASTLE SCHOOL FOR BOYS A company limited by guarantee

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

NEWCASTLE SCHOOL FOR BOYS INDEX TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 AUGUST 2021

Contents Page
Governors, Officers and Advisers 1
Annual Report of the Governors 2
Strategic Report 6
Statement of Accounting and Reporting Responsibilities 9
Independent Auditor’s Report 11
Statement of Financial Activities 15
Balance Sheet 16
Cash Flow Statement 17
Notes to the Financial Statements 18

NEWCASTLE SCHOOL FOR BOYS GOVERNORS, OFFICERS AND ADVISERS FOR YEAR ENDED 31 AUGUST 2021

GOVERNORS, DIRECTORS AND CHARITY TRUSTEES

The Governors of Newcastle School for Boys (“the School”) are the School’s charity trustees under charity law and the directors of the charitable company. The members of the Governing Body who served in office as Governors during the year and subsequently are detailed below.

Mr T Care (Chairman) Finance Sub-Committee
Property Sub-Committee
Mr M R Gill*(appointed 30 Nov 21) Finance Sub-Committee
MrsLGraham *
Mrs C King Finance Sub-Committee
Dr N Lloyd-Jones Finance Sub-Committee
Health and Safety Sub-Committee
Mrs S Melbourne Education Sub-Committee
Mr P Parkinson Marketing Sub-Committee
Mr J Sykes* Property Sub-Committee

OFFICERS

Mr D J Tickner Headmaster Mrs C Dobson Bursar and Clerk to the Governors Website www.newcastleschool.co.uk

Principal address and Registered Office

30 West Avenue, Gosforth, Newcastle upon Tyne, NE3 4ES

Auditors

Joanne Regan FCA – Senior Statutory Auditor, for and on behalf of Azets Audit Services, 32 Brenkley Way, Blezard Business Park, Seaton Burn, Newcastle upon Tyne NE13 6DS

Bankers

Barclays Bank plc, Newcastle Corporate Service, Barclays House, 5 St. Ann’s Street, Quayside, Newcastle upon Tyne NE1 3DX

Solicitors

Muckle LLP, Time Central, 32 Gallowgate, Newcastle upon Tyne, NE1 4BF

Ward Hadaway LLP, Sandgate House, 102 Quayside, Newcastle upon Tyne NE1 3DX

Insurance Broker

Marsh Limited, Capital House, 1-5 Perrymount Road, Haywards Heath, West Sussex RH16 3SY

1

NEWCASTLE SCHOOL FOR BOYS ANNUAL REPORT OF THE GOVERNORS FOR YEAR ENDED 31 AUGUST 2021

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

REFERENCE AND ADMINISTRATIVE INFORMATION

The Charity was founded in 1975 as Newlands Educational Trust and is registered with the Charity Commission under Charity No. 503975. Newlands Educational Trust merged with Ascham House School Trust Limited on 1 September 2005 and changed its name to Newcastle School for Boys (“the School”) on 6 September 2005. The School is constituted as a company limited by guarantee registered in England, No. 1196898.

Details of the members of the Governing Body, together with the School’s officers and principal advisers, are given on page 1.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing documents

The School is governed by its Memorandum of Association and Articles of Association last amended January 2014.

Governing Body

The Governing Body is self-appointing, with members completing three years of service required to retire at each AGM. Members retiring can be re-elected.

New members of the Governing Body are elected on the basis of nominations from the Governors and the executive officers based on the candidates’ professional qualities, experience, personal competence and local availability.

Recruitment and training of Governors

New Governors are introduced into the workings of the School, including Governing Body policy and procedures, at an induction workshop specially organised for them by the Head and Bursar. The new Governors also attend specialist external courses on the role and responsibilities of charity trustees.

Members of the Governing Body attend external trustee training and information courses designed to keep them informed and updated on current issues in the sector and regulatory requirements.

Organisational management

The members of the Governing Body, as the charity trustees, are legally responsible for the overall management and control of the School and its senior and preparatory schools. They met remotely six times in the year ended 31 August 2021, via video conferencing facilities.

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NEWCASTLE SCHOOL FOR BOYS ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

The work of implementing their policies is carried out by members of the Sub-Committees:

The day-to-day running of the School is currently delegated to the Headmaster, supported by the Bursar, Deputy Head (Character Development), Deputy Head (Teaching and Learning), Head of Junior School and the Director of Marketing and Admissions, who work together as the Senior Leadership Team. The Headmaster and Bursar attend all meetings of the Governors.

Group structure and relationships

Newcastle School for Boys has no trading subsidiary company. The School co-operates with a number of local charities in its ongoing endeavours to widen public access to the schooling that it can provide, to optimise the educational use of sporting and cultural facilities and to awaken in its pupils the awareness of the wider social context of the education that they receive at the School.

Employment policy

The School is an equal opportunities employer. Full and fair consideration is given to job applications from disabled persons and due consideration is given to their training and employment needs. Consultation with employees, or their representatives, has continued at all levels with the aim of taking the views of employees into account when decisions are made that are likely to affect their interests. Employees are made aware of the financial and economic performance of the School. The School’s pay policy is in line with national pay scales. Communication with employees continues through normal management channels in a variety of forms and also through exceptional channels to apprise staff of current issues.

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Charitable Objects

The School’s Objects, as set out in the Memorandum of Association, are the advancement of education for boys. In furtherance of these Objects for the public benefit the School has established and administers bursaries, awards and other benefactions, and acts as the trustee and manager of property, bequests and gifts given or established in pursuance of these Objects.

3

NEWCASTLE SCHOOL FOR BOYS ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

The Board is mindful of the long-standing need to provide public benefit and of the requirements of the Charities Act 2011. In this connection the Board has monitored closely the guidance on public benefit produced by the Charity Commission together with its supplemental guidance on fee-charging.

Public Benefit and Intended impact

In meeting these Charitable Objects, Newcastle School for Boys' public benefit aims are:

Excellent teaching is combined with an ethos that believes in knowing each boy as an individual to create an environment where the highest possible academic standards are achieved.

School Ethos and Aims

The School provides, in a supportive environment, an excellent all-round learning experience for boys, throughout their education. Specifically, we aim to:

As one of the newest schools in the independent sector, Newcastle School for Boys incorporates traditional values whilst preparing all boys for the changing expectations and demands of modern life.

The School is unique, not only in being boy-focused but also in its size. Comparatively small both in class sizes and as an overall school, each boy who joins Newcastle School for Boys is well known to his teachers and taught as an individual. Each boy’s individual talents and aspirations are recognised and supported.

Outside of the classroom, boys are given the opportunity to bring their learning to life on a number of exciting educational and sporting trips such as science trips to Florida and CERN and sports tours to South Africa and India.

Our boys are also encouraged to play their part within the community, whether through voluntary and charitable work or valuable work experience in some of the region’s most highly regarded organisations.

Pastoral care at Newcastle School for Boys is second to none. Boys are offered support around matters both in and outside of school to ensure they are prepared for the many challenges they may face.

From their very first years until the day they leave the School, boys participate in a character education programme, developing values of community, integrity, resilience, courage, leadership and empathy with the aim of developing as young men of excellent character.

4

NEWCASTLE SCHOOL FOR BOYS ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

An education at Newcastle School for Boys will equip boys with the tools needed to go on to lead successful and fulfilled lives beyond school.

Strategies to achieve the primary objectives

Emphasis is placed on the provision of outstanding teaching and learning throughout the School.

The Governors and Senior Leadership Team work hard to ensure the best financial position to secure the future development of the School. Additional funding is provided by the NSB Parents Association and is often targeted to provide finance for specific projects.

Principal activity

The School’s principal activity, as specified in the Memorandum of Association, is the advancement of education and, in this, the School has again had a successful year. The senior school averaged 266 pupils (2020: 291) and 117 in the Junior School (2020: 119).

The School participates in the Government’s free early year funding, offering 15 hours of tuition to under 5’s, and 30 free hours to eligible families, funded by the local government. The School’s fees for the current year before the deduction of any means-assisted bursaries and scholarships are:

Reception After the term of their 5th birthday £3,258 per term
Junior School Years 1 and 2 £3,800 per term
Years 3 to 6 £3,920 per term
Senior School Years 7 to 13 £4,800 per term

Public benefit and fee remissions

Newcastle School for Boys remains committed to the aim of providing public benefit in accordance with its founding principles. Charity legislation includes a requirement to demonstrate that public benefit for any charitable purpose where it had hitherto been presumed in the absence of evidence to the contrary. This calls in turn for commensurate disclosure of our public benefit aims.

This year the School awarded bursaries and scholarships to 157 pupils (2020: 159 pupils).

The awarding of bursaries is a measurable means of providing public benefit. The Board takes the view that bursaries awarded to those who would not otherwise be able to afford the fees are important, but not to the exclusion of the much wider benefit that the School provides within the community. Those pupils who attend our schools and who receive financial support contribute to the school community in a variety of ways, and so the benefit is not purely to these pupils but to the whole School and, in some cases, to the wider community.

Means-tested awards, based on a sliding scale according to financial circumstances, totalling £435,000 were awarded to 61 pupils, including 4 for full fees (2020: 64 bursaries totalling £388,000 - this included Summer Term Hardship fund awards, assisting families most negatively affected by the coronavirus lockdown). The total cost of bursaries represented 8.7% of gross fee income (2020: 7.6%). The School continues to refine means-testing this year by introducing a more rigorous and detailed process that continues to develop.

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NEWCASTLE SCHOOL FOR BOYS ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

In addition, the School awarded scholarships to 127 pupils (2020: 141) based on their educational merit and potential. Of this number, 31 (2020: 35) also qualified for means-tested bursary support and are included in the figures relating to the bursary awards. The fees of six boys were fully discounted through a combination of scholarship and bursary awards. The progress of pupils receiving scholarships is reviewed at least annually to ensure that progress is in line with their abilities. No scholarships were withdrawn in the year as a result of reviews.

The balance of bursary and scholarship awards remains under careful review by Governors to ensure that children can accept offers of places at our School through the availability of meanstested fees assistance. Our approach is designed to widen access to our School.

The School supports actively the attainment of the highest standards of education through rigorous and continuous evaluation of quality and performance, the application of best practice and a widespread desire to improve standards. We cooperate with local charities and educational bodies in our ongoing endeavours to widen public access to the schooling we provide, to optimise the use of our cultural and sporting facilities and to awaken in our pupils an awareness of the social context of the all-round education they receive at the School.

STRATEGIC REPORT - Achievements and Performance

This year’s report is again set in the wider context of the coronavirus pandemic. Following the emergence of the pandemic in the UK in March 2020, and the national lockdowns that ensued, the start of the 2020/21 academic year saw all boys return to school for the Autumn term in September 2020 albeit with a number of protective measures in place derived from guidance from central government, the local authority and public health teams as well as the School’s own detailed risk assessments.

Unfortunately, a further national lockdown was announced early in the new year which meant that after Christmas, most boys were unable to return to school until 8[th] March 2021. During this period, the School continued to remain open for the sons of key workers and those with particular circumstances or needs that made it difficult for them to access their education remotely.

The School continued to deliver a full and successful programme of remote teaching and learning, as well as providing continued pastoral care and even online co-curricular activities.

Public examinations were once again cancelled in 2021. The cancellation required the School to undertake a thorough and rigorous process involving both internal and external quality control to arrive at Teacher Assessed Grades (TAGs), based on carefully managed and delivered internal assessments. The School is extremely proud of results achieved this year in the face of considerable challenges for boys and staff. At A level, 72.3% of grades were awarded A* to B (2020: 77.3%). Boys also saw success in other more applied and less examination-heavy sixth form qualifications, notably Cambridge Technical Extended Certificates (CTECs) with 96.7% (2020: 66.7%) achieving distinctions or * distinctions.

At GCSE, boys achieved 50.3% of grades at 9 to 7 (2020: 50.4%). The School also achieved 96.9% (2020: 100%) of grades awarded at 4 or higher.

Such excellent academic achievement was supported by the School’s fufilment of its second aim to develop boys and young men of excellent character . The School was pleased to be able

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NEWCASTLE SCHOOL FOR BOYS ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

to begin to resume a number of its co-curricular activities, such as team sports and fixtures, and Duke of Edinburgh’s award scheme training during the course of the summer term 2021.

Other components of the co-curricular programme continued to be delivered remotely and online with significant restrictions placed on schools by the requirement to keep year groups in discreet bubbles. This included a number of excellent musical performances and concert delivered by the boys. Despite the very significant restrictions imposed on sport in schools, the School still managed to produce an age group county cricket champion team and number of representative honours for boys in cricket, football, rugby and athletics.

Community links

The School remains committed to its local community links and partnerships, particularly with Newcastle Cathedral, All Saints’ Church, Ladybird Nursery and South Northumberland Cricket Club.

Throughout the pandemic, the School has continued to provide onsite provision for families who were key workers, particularly working in the NHS and other areas critical to the coronavirus response.

The School participates in the government’s 30-hour free nursery provision for early boys’ years enabling more boys to benefit from the excellent teaching and supportive environment at the start of their education.

Covid restrictions and lockdowns hindered the School’s ability to raise funds for charities this year. Every opportunity to do this was taken and charities that benefited from the £821 raised this year include Evidence Action and Streetwise.

The school has continued to develop its use of technology in teaching and learning, progressing a programme that will see staff and boys - initially at the Senior School - issued with one-to- one devices.

Particular emphasis will be given to technology being used as a learning tool. The technology enhances and serves learning not vice versa and increases the opportunity for more individualised learning. Effective and appropriate use of technology will also help boys to develop digital literacy and other important skills highly valued by employers and society such as collaboration and creativity.

Through the roll-out of a one-to-one device programme, the School seeks to harness further its use of technology as a tool to enhance our boys’ experience of school to support their academic progress and character development. Effective use of technology supports the delivery of a superior educational experience facilitating more individualised learning in several ways including, for example, through the ease of differentiation and feedback.

The use of technology will remove some barriers to learning and boys will be able to access learning regardless of their location – in school, at home or elsewhere.

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NEWCASTLE SCHOOL FOR BOYS ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

FINANCIAL REVIEW

Results for the year

The School’s net incoming resources for the year amounted to £112,640 (2020: £67,247). Surpluses were utilised to invest in classroom technology and to improve the sports hall facility. The surplus generated was also required to cover financing costs. Historic retained funds will be utilised to maintain and improve the School facilities, as well as improving the IT infrastructure throughout the school and to develop digital learning in the classroom.

Reserves Level and Policy and Financial Viability

The Governors maintain close control over expenditure and set fee income at a level which will:

Total reserves at 31 August 2021 were £5,835,430 (2020: £5,722,790), which comprised unrestricted funds of £5,557,863 (2020: £5,412,159) and restricted funds of £277,567 (2020: £310,631). The School's premises and equipment net of loans at 31 August 2021 were £5,000,691 (2020: £4,880,486).

The reserves policy requires that total free reserves, as defined by the Charities Commission, cover four months average gross expenditure in order to ensure sufficient funds are maintained in the unrestricted general reserve to meet the working capital requirements of the School, through the generation of annual operating surpluses. At 31 August 2021 average monthly gross expenditure was £354,453 (2020: £367,490). The free reserves as at 31 August 2021 were £3,098,599 (2020: £2,939,444). The level of the general reserve is monitored by the Finance Sub-Committee and adjusted as required through efficient financial management. Donations for bursaries are held in a Restricted Fund until released to fund assisted fees in future periods. In the current year £31,080 was released to fund bursaries for four boys in the school

PRINCIPAL RISKS AND UNCERTAINTIES

The Governors consider the economic turbulence of recent years and the affordability of fees by parents across the independent sector to be the principal risk faced by the School. The Governors are fully aware of the need to be responsive to changes to the political and economic landscape, which they continue to monitor closely. The impact of the coronavirus pandemic introduced an additional risk in 2019-20 and this continued throughout 2020-21.

Health and Safety is always a significant area for risk management. Other risks range from fire and infrastructure to personal risks (most notably when away from the School on trips and expeditions). The level and breadth of activity at the School is impressive and the risks associated with all activities are minimised by thorough planning and risk assessment. The Governors regularly review the effectiveness of current plans and strategies for managing all identified major risks for the School.

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NEWCASTLE SCHOOL FOR BOYS ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

PLANS FOR FUTURE PERIODS

The School continues to make progress towards realising its ambitious plans for continued development. The key strands of the plans are:

In the immediate future the School will continue to monitor the impact of the coronavirus pandemic, developing remote and in-school teaching and learning and to support parents and staff during these challenging times.

STATEMENT OF ACCOUNTING AND REPORTING RESPONSIBILITIES

The Governors of Newcastle School for Boys, who are also directors of Newcastle School for Boys for the purpose of company law, are responsible for preparing the Annual Report of the Governors, including the Strategic Report, and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. The Charities Act 2011 and Company Law requires them as charity trustees and directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the Charity for that period. In preparing these financial statements, the Governors of Newcastle School for Boys are required to follow best practice and:

9

NEWCASTLE SCHOOL FOR BOYS ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

The Governors are responsible for keeping adequate 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.

The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include:

The Governors maintain a formal risk management process to assess business risks and implement risk management strategies. This involves identifying the types of risks the Charity faces, prioritising them in terms of potential impact and likelihood of occurrence, and identifying means of mitigating the risks. The risk register is formally reviewed by Governors annually, or more frequently if circumstances require it. As part of this process the Governors have reviewed the adequacy of the Charity's current internal controls. The Governors are pleased to report that the Charity's internal financial controls, in particular, conform with guidelines issued by the Charity Commission.

In accordance with company law, as the company's directors, we certify that

This Trustees Report, including the Strategic Report, is approved by the Board of Governors of Newcastle School for Boys on 9 December 2021, and signed on its behalf by:

Tim Care (Chairman of Governing Body)

10

NEWCASTLE SCHOOL FOR BOYS INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF NEWCASTLE SCHOOL FOR BOYS

Opinion

We have audited the financial statements of Newcastle School for Boys (the ‘charitable company’) for the year ended 31 August 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the 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:

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 charitable company 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 other information comprises the information included in the Annual Report of the Governors, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Annual Report of the Governors.

11

NEWCASTLE SCHOOL FOR BOYS INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF NEWCASTLE SCHOOL FOR BOYS (Continued)

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

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

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 9, 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.

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NEWCASTLE SCHOOL FOR BOYS INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF NEWCASTLE SCHOOL FOR BOYS (Continued)

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

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NEWCASTLE SCHOOL FOR BOYS INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF NEWCASTLE SCHOOL FOR BOYS (Continued)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Joanne Regan FCA (Senior Statutory Auditor) For and on behalf of: Azets Audit Services Accountants Statutory Auditor 32 Brenkley Way Blezard Business Park Seaton Burn Newcastle upon Tyne NE13 6DS

9 December 2021

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NEWCASTLE SCHOOL FOR BOYS

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2021

Notes
Income and endowments
from:
Charitable activities
School fees receivable
2
Catering income
Government funding
Rental income from lettings
Other activities
Investments
Investment income
Voluntary sources
Grants and donations
3
Total income and
endowments
Expenditure on:
Raising funds
Financing costs
4
Charitable activities
Education and grant making
4
Total expenditure
4
Net income/(expenditure) and net
movement in funds before gains
and losses on investment
Gains on investments
Gains on fair value of financial
instruments
Transfers between funds
17
Net movement in funds
Fund balances brought forward
at 1 September 2020
Fund balances carried forward
at 31 August 2021
Unrestricted
Funds
Restricted
Funds
Endowed
Funds
Total
2020
Total
£
£
£
£
£


4,052,484
-
-
4,052,4844,163,479
204,078
-
-
204,078189,149
73,434
-
-
73,43486,915
7,300
-
-
7,3004,467
8,939
-
-
8,93910,179
128
-
-
128
95
19,713
-
-
19,713
22,859
4,366,076
-
-
4,366,076
4,477,143


(22,343)
- -
(22,343)
(33,589)
(4,231,073)
(20)-
(4,231,093) (4,376,307)
(4,253,416)
(20)
-
(4,253,436)
(4,409,896)
112,660
(20)
- 112,640
67,247
-
-
-
-
-
-
-
-
-
-
33,044
(33,044)
-
-
-
145,704
(33,064)
- 112,640
67,247
5,412,159 310,631
-5,722,790
5,655,543
5,557,863 277,567 -
5,835,430
5,722,790

The notes on pages 18 to 32 form part of these financial statements

15

NEWCASTLE SCHOOL FOR BOYS

COMPANY NO: 1196898

BALANCE SHEET AS AT 31 AUGUST 2021

Note
FIXED ASSETS
Tangible assets
7
Investments
8
CURRENT ASSETS
Stock
Debtors
9
Cash and deposits
CURRENT LIABILITIES
Creditors payable within one
year
10
NET CURRENT ASSETS
/(LIABILITIES)
TOTAL ASSETS LESS CURRENT
LIABILITIES
LONG-TERM LIABILITIES
Creditors payable after one
year
11
NET ASSETS
REPRESENTED BY:
RESTRICTED INCOME FUNDS
16
UNRESTRICTED FUNDS
General Reserve
16
Designated Funds
16		 2021
2020
£
£
£
£

7,214,869
7,318,268
2,113
2,113
7,216,982
7,320,381
3,035
5,177
90,109
149,474
1,512,014
1,509,247
1,605,158
1,663,898
978,200
1,048,707
626,958
615,191

7,843,940
7,935,572
(2,008,510)
(2,212,782)
5,835,430
5,722,790
277,567
310,631
5,541,822
5,382,667
16,041
29,492
5,835,430
5,722,790

These financial statements were approved by the Governing Body on 9 December 2021

Mr Tim Care

(Chairman of the Governing Body)

The notes on pages 18 to 32 form part of these financial statements

16

NEWCASTLE SCHOOL FOR BOYS

CASH FLOW STATEMENT AS AT 31 AUGUST 2021

Note 2021 2020 2020
£ £ £ £
Net cash outflow from operations
Net cash provided by / (used in)
operating activities (i) 311,369 387,009
Cash flows from investing activities:
Purchase of Tangible fixed assets (62,783) -
Investment income and bank interest
received 128 95
Net cash (used in) / provided by
investing activities (62,655) 95
Cash flows from financing activities:
Interest paid on borrowings (22,343) _(33,589) _
Loan Capital repayments (223,604) _(224,718) _
Net cash provided by financing
activities (245,947) (258,307)
(308,602) (258,212)
Change in cash and cash equivalents in
the reporting period 2,767 128,797
Cash and cash equivalents at the
beginning of period		 1,509,247 1,380,450
Cash and cash equivalents at the end of
the reporting period 1,512,014 1,509,247

(i)
Reconciliation of net income to net		 cash flow from operating activities
2021 2020
£ £ £ £
Net incoming resources 112,640 67,247
Elimination of non-operating cash flows:
Depreciation charges 193,116 200,327
Loss on disposal of assets 2,502
 -
Investment income (128) (95)
Loan interest 22,343 33,589
(Increase)/decrease in Stock and Debtors 61,507
 (13,199)
Increase/(decrease) in Creditors (80,611) 99,140
198,729 319,762
Net cash inflow from operations 311,369 387,009

17

NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES

These financial statements are prepared in accordance with the Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102)’, the Companies Act 2006 and the Charities SORP 2019. An adjustment was made on transition to FRS102, to recognise the valuation of derivative financial instruments in the balance sheet, and to reflect the movement in the valuation in the profit and loss account. The basis of valuation is detailed below in note 1.12. The functional currency of the School is GBP because that is the currency of the primary economic environment in which the School operates.

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

The Governors have paid particular attention to the impact that Covid-19 had on this financial year and the following 12 months.

Having reviewed the funding facilities available to the School together with the expected ongoing demand for places and the School’s future projected cash flows, the Governors have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the School’s financial viability.

Accordingly, they also continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Accounting and Reporting Responsibilities on page 11.

The accounts present the statement of financial activities (SOFA), the cash flow statement and the Charity balance sheet.

The School is a Public Benefit Entity registered as a charity in England and Wales and a company limited by guarantee. It was incorporated in 1975 (company number: 1196898) and registered as a charity in 1975 (charity number: 503975).

Critical accounting judgements and key sources of estimation uncertainty.

In the application of the accounting policies, Trustees are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the

18

NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES (continued)

revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods.

In the view of the trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

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

1.1 Fees and similar earned income

Fees receivable and charges for services and use of the premises, less any allowances, scholarships, bursaries granted by the School against those fees, but including contributions received from restricted funds, are accounted for in the period in which the service is provided.

1.2 Investment income

Investment income from dividends, bank balances and fixed interest securities is accounted for on an accruals basis.

1.3 Donations, legacies, grants and other voluntary incoming resources

Voluntary incoming resources are accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the School is considered probable.

Voluntary income for the School’s general purposes is accounted for as unrestricted and is credited to the General Reserve. Where donations have been received that are to provide assistance with fees, they are recognised when received and shown as an incoming resource under Restricted Funds, unless it is a condition stipulated by the donor that they are to be used in future periods. Where there is a condition stipulated by the donor that they are to be used in future periods, the donations are included as deferred income within creditors and released to fees receivable as the conditions are satisfied. All donations are held in a separate designated bank account until utilised.

When utilised they are transferred to unrestricted funds and netted off against fees receivable. Gifts in kind are valued at estimated open market value at the date of gift, in the case of assets for retention or consumption, or at the value to the School in the case of donated services or facilities.

1.4 Expenditure

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer-term liabilities. Expenditure attributable to more than one cost category in the SOFA is apportioned to them on the basis of the estimated amount attributable to

19

NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES (continued)

each activity in the year, either by reference to staff time or the use made of the underlying assets, as appropriate.

Governance costs comprise the costs of complying with constitutional and statutory requirements.

1.5 Tangible fixed assets

Expenditure on the acquisition, construction or enhancement of land and buildings costing more than £10,000 together with vehicles, furniture, machinery, ICT infrastructure and other equipment costing more than £5,000 are capitalised and carried in the balance sheet at historical cost. In certain circumstances, where the original costs of assets are not ascertainable, a reasonable estimate of the cost, if material, has been used. Other expenditure on equipment incurred in the normal day-to-day running of the School is charged to the Statement of Financial Activities as incurred.

1.6 Depreciation

Depreciation is provided to write off the cost of all relevant tangible fixed assets less estimated residual value based on current market prices, in annual instalments over their expected useful economic lives as follows:

Straight-line basis:
Freehold buildings 2%
Leasehold Improvements 20%
Astro- turf and playground surfaces 10%
Motor vehicles 20%
Fixtures, fittings and equipment 20%
Reducing balance basis:
Computers for teaching 33%
Classroom digital boards 15%

Where the net book value of the reducing balance becomes immaterial the balance will be depreciated to zero.

1.7 Investments

Listed investments are valued at market value as at the balance sheet date. Unrealised gains and losses arising on the revaluation of investments are credited or charged to the Statement of Financial Activities and are allocated to the appropriate Fund according to the “ownership” of the underlying assets.

1.8 Stock

Stocks are valued at the lower of cost and net realisable value.

20

NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES (continued)

1.9 Fund accounting

The charitable trust funds of the School 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.

Unrestricted income belongs to the School’s corporate reserves, spendable at the discretion of the Governors either to further the School’s Objects or to benefit the School itself. Where the Governors decide to set aside any part of these funds to be used in future for some specific purpose, this is accounted for by transfer to the appropriate designated fund. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted income comprises gifts, legacies and grants where there is no capital retention obligation or power but only a trust law restriction to some specific purpose intended by the donor.

1.10 Pension costs

Retirement benefits to employees of the School are provided through two pension schemes, one defined benefit and one defined contribution. The pension costs charged in the Statement of Financial Activities are determined as follows:

1.11 Operating leases

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are spread on a reducing balance basis over the lease term.

1.12 Financial instruments

21

NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES (continued)

cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions.

2. CHARITABLE ACTIVITIES – FEES RECEIVABLE

Fees receivable consist of:
Gross School fees
Less: Total scholarships and bursaries
Other awards		 2021_2020_
£
£
5,011,792
5,136,082
(875,873)
(864,745)
( 83,435)
(107,858)
4,052,484
4,163,479

Bursaries and other awards paid for by restricted funds transferred during the year totalled £31,080 (2020: £72,303 )

Scholarships, bursaries and other awards were paid to 194 pupils ( 2020: 211 ). Within this, means tested bursaries totalling £435,309 were paid to 61 pupils, ( 2020: £388,000 to 64 pupils including assistance for hardship due to the coronavirus restrictions) .

3. GRANTS AND DONATIONS RECEIVABLE

Grants from:
Government Coronavirus Job Retention scheme
Donations from:
Rugby Ball sponsorship
Parental donations		 20212020
£
£
18,90821,685
600
-
2051,174
19,71322,859

22

NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

4. ANALYSIS OF EXPENDITURE

(a) Total expenditure year ended 31 August 2021 (a) Total expenditure year ended 31 August 2021 (a) Total expenditure year ended 31 August 2021 (a) Total expenditure year ended 31 August 2021
Staff costs Depreciation Other Total Total
(note 6)
(note		 7) 2021 2020
£ £ £ £ £
Costs of generating funds:
Financing costs -loan interest - - 22,343 22,343 33_,589_

Charitable expenditure:		 £ £ £ £ £
Education and grant
making
Teaching 2,681,313 - 95,982 2,777,295 2,864,160
Welfare 11,743 - 267,204 278,947 242,782
Premises 160,913
193,116		 354,306 708,335 683,094
Support costs and
governance 282,794 - 183,722
466,516		 586,271
Total charitable 3,136,763
193,116		 901,214 4,231,093 4,376,307
expenditure
Total expended 3,136,763
193,116		 923,557 4,253,436 4,409,896

Prior Year comparison: Total expenditure to 31 August 2020

Staff costs Depreciation Depreciation
Other		 Total Total
(note 6)
(note		 7) 2020 2019
£ £ £ £ £
Costs of generating funds:
Financing costs -loan interest - - 33,589 33,589 64,967
Charitable expenditure £ £ £ £ £
Education and grant
making
Teaching 2,661,279 - 202,881 2,864,160 2,704,800
Welfare 10,297 - 232,485 242,782 311,214
Premises 151,872
200,327		 330,895 683,094 694,098
Support costs and
governance 289,932 - 296,339
586,271		 524,723
Total charitable 3,113,380
200,327		 1,062,600 4,376,307 4,234,835
expenditure
Total expended 3,113,380
200,327		 1,096,189 4,409,896 4,299,802
23

NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

(b) Governance included in support costs:
Remuneration paid to auditor for audit services
Other governance costs
Total governance costs
5.
INTEREST PAYABLE AND SIMILAR CHARGES
6.
STAFF COSTS AND RELATED PARTY TRANSACTIONS
The aggregate payroll costs for the year were as follows:
Wages and salaries
Social security costs
Other pension costs
Private Health Insurance
Total Staff Costs
Bank Loan interest		 2021
2020
£
£
10,8299,039
60
340
10,889
9,379
2021
2020
£
£
22,343
33,589
2021
2020
£
£
2,447,1022,441,416
233,665229,738
451,469437,613
4,5274,613
3,136,7633,113,380

None of the directors (or any persons connected with them) received any remuneration from Newcastle School for Boys during the year.

Aggregate employee-benefits of key management personnel
Number of higher paid employees in bands of:
£60,001 - £70,000
£80,001 - £90,000
The number with retirement benefits accruing
-
In Defined Contribution schemes was:
of which the contributions amounted to:
-
In Defined Benefit schemes was:		 468,136 453,448
2021
2020
2
2
1
1
1
1
£3,337
£ 3,403
2
2

24

NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

The average number of the School’s employees during the year calculated on a full-time equivalent basis, was 71 (2020: 74). The average number of employees employed during the year was:

Teaching
Welfare
Premises
Support		 2021
2020
62
64
2
2
9
10
11
12
84
88

During the year no termination payments were made (2020: two totalling £3,497).

Transactions with Related Parties: £ £
Scholarships awarded to children of directors: 8,640 6,450
Governor’s Liability Insurance cost borne by the company: 843 843
Training and expenses borne by the company (6 trustees): 60 340

7. TANGIBLE FIXED ASSETS

Cost or valuation:
At 1 Sept 2020
Additions
Disposals
At 31 Aug 2021
Depreciation:
At 1 Sept 2020
On Disposals
Charge for Year
At 31 Aug 2021
Net Book Value:
At 31 Aug 2021
At 1 Sept 2020		 Freehold
Leasehold
Improve-
ments
Fixtures,
Fittings &
Equipment
Computers
Total
£
£
£
£
£
9,200,713
37,165
496,184
399,07710,133,139
56,244
-
-
35,975
92,219
-
-
-
(42,733)
(42,733)
9,256,957
37,165
496,184
392,31910,182,625
1,974,104
22,299
462,667
355,801
2,814,871
-
-
-
(40,231)
(40,231)
154,501
7,433
16,758
14,424
193,116
2,128,605
29,732
479,425
329,994
2,967,756
7,128,352 7,433
16,759
62,325
7,214,869
7,226,609
14,866
33,517
43,276
7,318,268

Tangible fixed assets with a net book value of £4,846,670 have been pledged as security for liabilities of the charity.

25

NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

8. INVESTMENT

The investment consists of 150 units M&G Charifund stock stated at market value. The cost was £173.

9.
DEBTORS
Amounts falling due within one year: 2021 2020
£ £
Fee Debtors 46,415 100,029
Prepayments and Accrued Income 35,558 43,052
Sundry Debtors 8,136 6,393
90,109 149,474
10.
CREDITORS: amounts falling due within one year
2021 2020
£ £
Loan 225,171 225,000
Trade Creditors 66,621 116,840
Fee payments received in Advance 466,385 407,444
Other Creditors 64,917 105,352
Taxation and Social Security 59,586 54,924
Accruals and Deferred income 85,588 139,147
Hire Purchase 9,932 -
978,200 _1,048,707 _
11.
CREDITORS: amounts falling due after more than one year
2021 2020
£ £
Hire Purchase 19,503 -
Loan **1,989,007 ** _2,212,782 _
2,008,510 2,212,782
Bank Loan – repaid by equal monthly instalments over a 20-year period which started in
July 2011
Amounts falling due:
In one year or less or on demand 225,171 225,000
Between one and two years 225,171 225,000
Between two and five years 675,512 675,000
In five years or more 1,088,324 1,312,782
2,214,178 2,437,782

Interest is charged at 0.86% plus LIBOR and is secured by the following charges:

26

NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

12. FINANCIAL INSTRUMENTS

2021 2020 £ £ Financial assets measured at amortised cost (a) 1,569,600 1,620,846 Financial liabilities measured at fair value - - Financial liabilities measured at amortised cost (b) (2,927,124) (3,206,565) Net financial liabilities (1,357,524) (1,585,719)

Impairment losses charged to financial assets measured at amortised cost in the year amounted to £0.

13. LEASES

The company has a number of operating leases for computer equipment, minibus and photocopiers. A new lease for photocopiers, signed in August 2017 became operational in September 2017, and is reflected in the table below. A twenty-year lease of property at 1 Moor Road was signed in February 2016. The first break clause is in Year 5, February 2022. As six months’ notice is required to action this break clause, and that date has passed, the next break clause is in Year 10, February 2027. Rents payable up to that break clause are included below. A new three-year lease for the rental of laptops for one-to-one use by pupils and staff was agreed in August 2021 and became operational in September 2021.

The future minimum lease payments under non-cancellable operating leases are committed to be paid in the following periods:

In less than one year
Between 1 year and 5 years
In more than 5 years		 2021
2020
£
£
112,193
78,915
365,987
55,421
-
-
478,180
134,336

27

NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

14. RECONCILIATION OF NET DEBT

Cash
Finance Leases
Loans falling due within
one year
Loans falling due after
more than one year
Total		 At 1 Sept 2020
£
Cashflows
£
New finance
lease
£
At 31 Aug 2021
£
1,509,247
2767
-
1,512,014
-
-
(29,435)
(29,435)
(225,000)
(171)
-
(225,171)
(2,212,782)
223,775
-
(1,989,007)
(928,535)
226,371
(29,435)
(731,599)

15. FUNDS OF THE SCHOOL

The School’s funds are analysed under the following headings.

a) RESTRICTED FUNDS

The restricted fund relates to a fundraising campaign in which donors can specify whether the funds are to be used for:

Once funds have been used for providing Assistance with Fees a transfer is made to the General Fund. Once funds have been used against capital projects, a transfer is made to the Designated Fixed Fund. Restricted funds are held in a separate designated bank account.

b) UNRESTRICTED FUNDS

Unrestricted funds represent accumulated income from the School’s activities and other sources that are available for the general purposes of the School.

The General Fund represents the free funds of the charity which are not designated for particular purposes.

c) DESIGNATED FUNDS

The Designated Fixed Asset Fund has been set up to assist in identifying those funds that are not free funds and it represents the net book value of tangible fixed assets that have been purchased using restricted funds but for which the use of the asset, once purchased, is unrestricted.

The depreciation of the Designated Fund assets is transferred to the general reserve each year.

28

NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Net Current
Fixed Assets/ Long Term
As at 31 August 2021
Assets		 Investments (Liabilities) Liabilities Total
£ £ £ £ £
General Funds: 7,185,663
2,113		 362,556
(2,008,510)		 5,541,822
Designated Funds: 15,318 - 723 - 16,041
Restricted Funds: 13,888 - 263,679 - 277,567
7,214,869
2,113		 626,958
(2,008,510)		 5,835,430
Net Current
Fixed Assets/ Long Term
As at 31 August 2020 Assets Investments (Liabilities) Liabilities Total
£ £ £ £ £
General Funds: 7,273,647
2,113		 319,689
(2,212,782)		 5,382,667
Designated Funds: 28,769 - 723 - 29,492
Restricted Funds: 15,852 - 294,779 - 310,631
7,318,268
2,113		 615,191 (2,212,782) 5,722,790
17.
SUMMARY OF		 MOVEMENTS ON MAJOR FUNDS

Current Year		 At 1 At 31
September Incoming Resources August
2020 Resources Expended
Reval'n		 Transfers 2021
£ £ £ £ £ £
General Funds:
General Fund 2,939,444 4,366,076 (4,253,416) - 46,495 3,098,599
Revaluation Fund 2,442,973 - - - - 2,442,973
Music Prize Fund 250 - - - - 250
Designated Funds:
Fixed Asset Fund 28,769 - - - (13,451) 15,318
Other Fund 723 - - - - 723
Total Unrestricted
Funds: 5,412,159 4,366,076 (4,253,416) - 33,044 5,557,863

29

NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

Restricted Funds:
Fundraising -
Assistance with Fees
Fundraising - Capital
Projects
Fundraising -
Assistance with Fees
or Capital Projects
Other
Total Restricted
Fund:
Total Funds:
Prior Year
comparison
General Funds:
General Fund
Revaluation Fund
Music Prize Fund
Designated Funds:
Fixed Asset Fund
Other Fund
Total Unrestricted
Funds:
Restricted Funds:
Fundraising -
Assistance with Fees
Fundraising -
Capital Projects
Fundraising -
Assistance with Fees
or Capital Projects
Other
Total Restricted
Fund:
Total Funds:		 294,549
-
-
-
(31,080)
263,469
15,852
-
-
-
(1,964)
13,888
90
-
-
-
-
90
140
-(20)
-
-
120
310,631
-(20)
-
(33,044)
277,567
5,722,790
4,366,076 (4,253,436)
-
-
5,835,430
At 1
September
2019
Incoming
Resources
Resources
Expended
Reval'n Transfers
At 31
August
2020
£
£
£
£
£
£
2,786,423
4,477,143 (4,409,876)
-
85,754
2,939,444
2,442,973
-
-
-
-
2,442,973
250
-
-
-
-
250
42,220
-
-
-
(13,451)
28,769
723
-
-
-
-
723
5,272,589
4,477,143 (4,409,876)
-
72,303
5,412,159
366,852
-
-
-
(72,303) 294,549
15,852
-
-
-
-
15,852
90
-
-
-
-
90
160
-
(20)
-
-
140
382,954
-
(20)
-
(72,303)
310,631
5,655,543
4,477,143 (4,409,896)
-
-
5,722,790

30

NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

18. PENSION SCHEMES

Retirement benefits to employees of the School are provided through one defined benefit scheme, which are funded by the School’s and employees’ contributions.

Defined benefit scheme - 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 £435,707 (2020: £422,190) and at the year-end £50,154 (2020 - £48,218) 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 judgment 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 government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.

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

31

NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2021

onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. The consultation closed to response on 19 August 2021 and the Government is currently analysing the responses.

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 the cost cap mechanism review is completed 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.

Defined contribution scheme – NOW Pension

Newcastle School for Boys contribute to the money purchase group personal pension scheme managed by NOW:Pensions. Contributions of 5% were made for the employee and from 3% to 5% for the employer. The employer’s contributions are charged in the Statement of Financial Activities in the period in which the salaries to which they relate are due. The employer’s contributions in the year amounted to £15,762 (2020: £15,424). At 31 August 2021 there were £3,632 accrued pension contributions for this scheme (2020: £3,314).

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