Charity regiyirntion numbèr 505310 Company rngistration numb•r 012607651England and Wales) CARLETON HOUSE PREPARATORY SCHOOL ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 CARLETON HOUSE PREPARATORY SCHOOL LEGAL AND ADMINISTRATIVE INFORMATION Tru$teÈs G H 8e(*- Chaff of Trustees jP￿m$ E Czamecki S L Fletcher C M HaNison S M H¢9aty (Appointed 18 January 20231 C B Holguin MJoe (Appointed 1 February 20231 T Mannin9 L Morrison Charity number 505310 Company number 01260765 Registèred offi¢e 145 M•nlov8A¥enue Pélerseyside L18 3EE Auditor XèinadinAudit Lwniled 2 Hilliards Ccwjrt Chester Busness Park Chester Cheshire CH4 90P CARLETON HOUSE PREPARATORY SCHOOL CONTENTS Page Trustees, report Statement of Twslees. responsitilllie5 Inde￿ndent audilo¢s reFA)rt Statèment of finantyal #di￿5 Balance sheet 10 Statement of i>sh ffiows 11 Notes to the financial statements 12-23 CARLETON HOUSE PREPARATORY SCHOOL TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 AUGUST 2022 The Trustees p￿sent their annual report ar￿ ffinanci￿ 5tatew*nts for the ye8r ended 31 August 2022. The financial slatwmenls have been prepared in ar*ordan￿ wrfh the a¢￿untIng polic￿$ set c*Jt in r￿le 1 lo Ihe financial slalemenls and comply Mlh the tharit￿S Memorandum and Arlicles of A5SD¢j8t￿n. Ihg Companies A 2006 and 'Accountsng and Reporting by Charibes." state￿nI of R8crmimended Practice applicable lo charitie5 preparing their a¢¢ount5 in a¢xordanGe wtth the Financial Report￿Ig Stsndard appkable hi the UK and Republic of Iieland IFRS 1021" (effective 1 January 2019}. Objectives and activities The Head Teacher and all slaff have supported the sthod and worked hard lo mantain high sthool standards. The GDveming Body of the school is also activety involved in the ovèrsight of the management of the school and in setting new objectives forthe school for the luiure. C3ilelon House provides equal opportUnit￿S for al staff and pu￿Ls. The school is commilted to the safeguarding of chiklren aThJ its p￿￿S and procethres refled this. All rM)li¢ies and procedures a￿ updated as appropriate and arE awddable at the srjwl for inspedion. In Setting the School's objectives, the Twslees have given Caref￿ consKleralion to the Charity Commission's general guidance on pubthc benefits and in partiujlar to rts suppbemenlary public benefrt guidance on advancÈng 8ducation and on fee charging. The Trustees have paid due regard lo gutdance i*sued by the Charity Commission in dec*Jing what actswlie5 the charity should undÈrtakÈ. Achievements and perfonnance Garlelon House wa5 ranked as the highe51-placed indewdenl preparatoty school Merseyside by th8 most re¢ent Sunday Times Parenl Power Sthoo]s Gu¢de. It was ranked 10th over￿1 nationaly. Thè majorily of our pupils obtsin their first cknKe welewi¢e al secrmdary schoot level. The plac8s secured for 2021-2022 were as follows: The Blue Coat School- 14 pupils St Mary's Colleg&- 3 pupils Merchant Taylors. College- 1 pupil Sl Margatel's Atsdemy- 1 pupl Belvedere Aca(Jemy- 1 pupil Calderslones S¢hool- 1 pupil King David High S¢h(K)1- 1 pupil St Edwards College- 1 pupil CARLETON HOUSE PREPARATORY SCHOOL TRUSTEES, REPORT {INCLUDING DIRECTORS. REPORD (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 The achievements of our pupils are usualy rr￿aSured in Statutory Attainment Tests ISATS) using a scaled score. SATS testing resumed in May 2022. however Tesulis were not published nationally. Our SATS results remained in line with those high scores achieved in prevw)us years but comparison against other schools and national figurés was not possible. The School continued lo prowde a daily hot lunch for every d)dd p￿pa￿d by their own chef in Ihe kitchen to meet national lood Standards in schools. The qudity of fc#Jd aThJ cho￿2 15 ckjsety monitored and has been a ￿eat success wrth th& childien and staff. The Sthool has an active ¢lv)w whith is ask¢(I lo perf(Km at IAetropolitan Cathedral Christmas Concert every year and has taken part in a Jocal Cathok school thoir festival. The Sclwol runs a vibrant and positive mustc programme for pupils with the ou15ide resoLrn of Pulsè Music Liverpool. This has firmly cemented the devebpmenl of a $Gh(￿l wNJe Introdu￿on to music and we have a school orchestra. Al junior school pupils are offered rnusical luition on an instrument and the thar*ee to join the school orchestra. Pupils are inviied to take part in con￿rtS at Christmas or al the end of the school ye8r to ¢e￿rat& Ihwr achievements. Pupils are also provided with Ihe opportunty to take musical exams. The schLKsl provides an extensive range of extra ￿MI)jIar dubs includirwJ debating. ffirst aid, dance, judo. thess and wide variety of sports cjubs. Fundrai$ing *¢ti¥iti¢s and inwne g¥neration The school has continued to support local charrlies, iThJuding Cafod. B Thjge 2, South Lrverpwl Foodbank and th Whitechapel Centre for the homeless as wel as othef bxal and nation￿ good Gause5 and tharities. Financial ￿VIeW In what has been a difficult y8ar with high amounts of financ4al uncertainty. the Board of Tru5tee5 have ￿ntinUed to evaluate Ihe reserves requirements to énsur8 Ihe c￿tinUed running of the sthool. Due to prudent financial management over recent years, our reseryes have twi grryrting. whth meant thal wg were in a strong position to miligale the f￿an￿￿1 risk5 arising from the pandemic. As a general njle. the Board of Trustees have deuded that the sthool should have cash reserves equivalent to between three and six monlhs cos15 foi busine55 as usual operations. although this may b¢ redu￿￿ in peiiods sigrwfiGant wrtal inveslment is needed. The current year surrAus is £173.215. The general reserve has ¢n¢yea5ed to £1.221,662, inthd￿g ¢a$h bal￿¢9$ of £396,103. This is within the range of reseThes agreed by the Board of Trustees. allhough scrfne of retained serves have been sel into a 5pecAffic fund which will be utlised lo finance an ambrtious developrnent of the ￿rrent prefflises. which is planned to be phased over the next three years. Thè principal sourcè of lunding is Ihe fees d)arged to parerlts forlhe pro¥ision of sthool plxes for their childrèn. The Trustees have assessed Ihe major r￿kS to which the company is exFKJsed. in parti¢ulai those related to the operation5 aTrJ finances of the company, and ar8 satisfied that systerns and prockdures are in place lo mil￿ale exposure to the major risks. Plans for future periods Construction was recently completed on a nèw purpose bult M￿eM d￿k￿Orn which replaced our preV￿u$ cloakroorn which was housèd in thè original ts)nservatory to the house. As Outlined in our finanoal review. our growth in reserves will be partI￿ty utilised to fund a scheduled programme of buskjing refresh for the coming years, including intemal and extemal refurbishment and the rè dèvélopmènt of th• EYFS playground. CARLETON HOUSE PREPARATORY SCHOOL TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Structure. governan￿ and management C8rfeton House Preparatory School Limrted is registered as a d*rilable company limited by guarantee and was sèt up by a Memorandum ofAssoaation on 28 May 1976. The Memorandum and Arbdes of Associat￿ We￿ altered by sp*ial reS0￿￿on on 181h June 2020. The principal object of the crxnpany is to prtrwde a fiT5t dass. iridependenl (treduc*"onal s¢hool to pupils aged 3 to 11 years. The Head Teacher is a member of Ihe Independent Schools A550cia1￿n. which give5 acGreLlilalion by the Independent Schools Counol. The Schocl is a Catholic School which accepts children of other denominations and faiths. It h¥$ str￿9 links with the ArChd￿reSe of LiVe￿[KA and thg Parish of Our Lady of the Annunciation Bishop Elon. The Trustees. who are also Ihe dire¢tors for Ihe purpose ol ￿n￿anY Jaw. and who seNed during the year and up to the dale of signature of the finanual ststerr*nts wete: G H 80￿- Chair of Trustees M l Arshad J P Burns E Czarnecki D J Fletcher S L Flel¢htrr C M Harrison S M Hegarty C B Holguin MJoe M Kirby T Manning L Morrison S J Swanson (Apwnted 16 September 2021 and reyigne(130ALMJUSt 20221 (ReS￿ned 6 Juty 20221 IAppointed 18 January 2023) (Apph)wrted 1 February 2023) (Resigned 7 June 20221 (Resigned 6 ju￿ 2022) Th& management of the Cwipany is the reskK*nsibdrty of the Tnjstees who are elecied and ¢wpted under IIR torms of the Mernorandum of A550ciab"on. None of the Trustegs has any benef￿.81 ￿terest in the ¢￿pany. All of the Truslegs are Members of the company and 9uaianlee lo Gwlribule £1 in the event of a winding up. The Board of Trustees determines the general strategy and poky of the school. bjl the daY-l￿daY management of the school is delegated lo the Head Teacher. The Board meets at least lemW and there are a number of sub- commiitees convening such areas as Curri￿lurn and SaI￿Juarding. Finan￿. Buildings 8n¢J Heatth and Safety and Pay and Appraisal. The trustees who served dU[￿g the year are shown on p￿e one. Trustees are appointed by the Board of Trustees (also known as the Goveming Body) and serve for a penod of three years. Upon Ihe end of each three-year term, truslees a￿ eligible for ￿-ele￿i0￿. Vacant trustee p05ition5 are advettised with a curyent equal number of exlemal trusiees and trustees who are currenl parent5 of the schcd. New twstee5 are ptOVKled with an introduction into the nalure 3nd running of the school. Auditor In accordance wilh the company's ath"des. a resolutton pro&K)sing that Xeinadin Audit ￿Mited be reappointed as auditor ol Ihe company will ￿ pul al a General Meeting. CARLETON HOUSE PREPARATORY SCHOOL TRUSTEES. REPORT {INCLUDING DIRECTORS. REPORT) (coTrrfiNUED) FOR THE YEAR ENDED 31 AUGUST 2022 Disclosure of Inforniatlon to audltor Each of the Truslees has cx)nfirmed that Ihwe is no ￿tOrmatIon d ¥vhth tlw aware which is rd8wI lo the audit, bul of which lh8 auditor is Lm8Wafv. They have ft*ther conf1m￿d that they havg lak8Fh approw'ate step5 to identify suth rdevant informatrjn and to eslablish thal Ihe awae of such n)fonnation. The TNg1$9s' wcKt proved by Ihe Board ofT￿￿. - Chair of Ttustees Dale.. 2.a...£......'aS... CARLETON HOUSE PREPARATORY SCHOOL STATEMENT OF TRUSTEES, RESPONSIBIUTIES FOR THE YEAR ENDED 31 AUGUST 2022 The Trustees, who ￿ alw the dire(*ors of Carleton House Preparatory School for ￿ purFx)se of ¢xmpany law, are responsible for preparing the Trustees. Report and the financ1￿ ststements in arxordance with appl￿ble law and United Kingdom Accounting Standar¢Js (unit￿ KW)m Generaliv Accepted Accounting Practice). Company Law requires the Tvustees lo prepare finanual statements for e¥* fmawal year which give a Irue and fair view of thè st3tÈ of afrdits of the charity and of the in(XJmtng resources and application of osources, induding the ineome and expenditure, of the charitsbk ¢)Jmpany for that year. In preparing these finanual statements. the Trustees are requirgj to-. - selecl suitable a¢¢ounling po￿"(￿eS and then apFdy th8m consistentty". - obseNe the methods and pfinciple$ in the Chwthes SORP," - make judgements and eslimales that are reasonat)le and wudent" state whether appli¢able UK AcoJuniThJ Standards have been foltrwwj. subJeLI to any material departures disclosed and explained in the finan Nat cash used In Invèstlng a¢tlYllig$ (ITI.942) (20,5131 Fin#nclng a¢tivities Repayment of bank ban5 (113.1531 {9D.4611 Net cash used in financing activiliès {113.153) (90,4611 Net Idecreasellincrease in cash and cash equlvalents {35.424) 102,035 Cash and cash Èquivalents at beginning of year 431,527 329.492 Cash and cash equivalènts at ènd ot year 3￿.103 431.527 11 CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 Atcounting policies Charity infornmtion Carfelon House Preparatory School is a private company Iffnited by guarantee inccffporated in England and Wales. The registered office is 145 M¢nlovo Avenue, Dverpo(A. Mgrs¢yside. L18 3EE. 1.1 Accounting eonvention The financial statements have prepared in aeeordancÈ WElh thè d)aritrfs 190￿mIng documentl, the Companies Ad 2006. FRS 102 -The Finan(Yal Reporting Stsndard applicable in the UK and Republic of Ireland" fFRS 1027 and the Charities SORP "AcLount¥ig and Reporting by Chariknes." Statement of Recommended Pradice applica1￿& to charl￿.&S preparing their accounts in accordance wrth the Financial Reporting StsrKlard apwicable in the UK and Repjbbc of Ireland (FRS 1021" Ipffective 1 January 20191. The charity 15 a Public Benefit Entity as d8fm8d by FRS 102. The finanoal stalements are prepaie¢J in sterfing. whv* is the funthinal currency of the charity. Monelary amounts in these finanGial 51alements are rrJun(led to the neare5t£. The financial statements have been prepared under the histori￿1 cost convenlion, Imodified to indudè the revaluation of freehold properties al fair vahjel. The prinripal accounting poliaes adopted are set out below. 1.2 Going ¢on¢em Al the lime of approving the financaal State￿￿nts. the Tru5tee5 have a reasonable expecialion that the charity ha5 adequate resources to continue in yrational e￿steTrce for the foreseeable fvlure. Thus the Trustees conts'nue to adopt the wng concem baw$ of a￿untIng in p￿Paring the financial staternents. 1.3 Charitsble funds Unrestricted funds are availablè for use at the disuelion of the Trustees in furtherarth of lhe￿ charitable (￿Jectivt$. Re8tricted funds are subject 10 5peciffic ￿Tr￿i￿.0nS ty donor5 a5 lo how they may be wed. The pu￿08e$ and uses of the reslri¢aed fvnds are set out in the notes to the finan(4al statements. 1A Incom¢ Income is ￿￿gnIsed when the ¢PTarity is legafy erfitled to rt after any perfomian¢e cts)dibons have been met. the amounts can be measured rdiably. and rt is probable that income wdl be received. Grants are indude(l in the S181ement of Financial Acli¥ib"es on a re¢eNab￿ basks. The ba1￿Ce of ItKome re￿IVed foi specrfic purposes but not expended during the period shown ￿ the relevant funds on the Balan￿ Sheet. whe￿ income is received in advancè of entitlament of recÈipL its ro¢ognition is deferred and included in Greditors a5 deferred I￿￿￿e. Where enbuement oowr5 before inc￿le 15 received, the income is awued. Cash donations are recognised on receipl. Other donations ar8 recOgnis￿ once the charity has been nohfied of the donation, unless pwfotrnance l￿dItK)n5 requÈre deferral of the amount. Income tsx recovei8ble in lali¢)n to donations re￿Ved under GiftA¢d or deeds of o)venant is r8cognwd al the time of th8 donation. Legacies are recognised on reGeipt or other*￿e rf the chan.ty has been notrfied of an impending distribution, the amount is known. and T￿lpt is expecied. If the amount is thown. the legacy is tr83t8d as a contingent asset. 12- CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS {CONTINUED> FOR THE YEAR ENDED 31 AUGUST2022 Accounting policies (Continued) 1.5 Expendiiurè Expenditure is recognised once th&re 1$ a legal (x (x)nstrudwe obtyts.on lo transfer economic benefit to a third party. it is probable that a transfer of ec4Jnomic beneffts will be required in seltlement. and thè amount of the obligab'¢￿ can be measured reliabty. Expenditure is dassiffied by activity. The costs of each a(*wty are made up of the total of direct costs and shared costs. including support costs invofved in undertakw each activity. Direct cosls attributablè to a single activity are allocated dIre￿Y to that ac1]￿ty. Shared costs which contribute to nwjre than one ath"¥ty and support costs whKh are nol attribthable to a Sing￿ a¢h￿"tY are apporb.oned be￿een those acthvib.es on a basis COnS151enl with the use of ￿￿urceS. Central staff costs are auocated on the basis of lime spenl, and depreciation charges are alkJcatÈd on the porbon olthe asset's use. 1.6 Tangible fixed ass•ts Tangible fixed assets are initially measured at ¢xJst and subsequenty measured al eoyt or v8luatbJn. net of depreciation and any impairment k)sses. Dep￿ciall0￿ is le￿9￿15ed so as lo wrile off the cost or valualKJn of assets kns their residual valu&s 0￿r thèir useful lives owl the folloMng bases= FreehiAd property Freehold improvèments Plant & IT equipment FixLures and fittings Over 50 yeats- builthngs only &25 years straight line >5 years strawJht ￿ne 24 year5 stra*Jht fjne The gain or loss arising on tho disposal of an a55el 15 determined as the difference behveen the sajo proc*eds and the carrying value of Ihe asset. and is recognised in the statement of finan¢ial actNilies. 1.7 knpalm)Ènt offixed assets At each reporbng 8nd datè. the t*anty reviews the caThying amounls of its tsngible assets lo determine whethef there is any indication that those assets have suffeied an impairment loss. If any such ￿diCatiOn exists, the recoverable amount of the &3sel is estimated in ordw to delennine extent of ￿ impairmgnt ss lif any). 1A Stocks Stocks are stated at th¢ lowei of ￿3t and estirnated sdling wice kss costs to con¥Aete an(1 sen. Cost comprises dired materials ar￿. where applicatle. dwect labour cnsts and thosè ovÈrhèad$ that have been incurred in bringing the stocks lo their present Wkn"on and condition. Items held for disthbution al no or rtominal Consideration are measured Ihe k)wer of replacernent cost and cost. 1.9 Cash and cash equlvahnts Cash and cash equivalents Indu￿ rash in hand. deposits held al call with banks, other short-twm liquid investments with (xiginal malunb.es ol three nKJnlhs or less. and bank ovgrdrafts. Bank overdrafts 8re shown within borrowings in ¢urrent Ikibilrfies. 13- CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Accounting policles Icontlnued) 1.10 Finan¢Sal Instruments The charity has de¢led to appty the provisiorrs of Seclion 11 'Basic Finanaal Instruments. and Section 12 'Othèr Fin8ncial Instruments Issues. of FRS 102 to all of rts finanoal instruments. Financial instruments ale recognised tri the ¢harWs baa￿￿ sh￿1 when the tharity becomes paty lo the CxJntraCtu￿ provis￿nS of thè instrurnent. Financi?1 assets and liabflities * offset, with the net amounts presentsd in th8 finanaal statements. when tt)ere is a legally enforceable right to set ofl the recognised amounts and thÈre is an inlÈnllon to settle on a nel basis or lo realise th¢ asset and setue the liablity simullaneously. Basi¢ fIna￿la1￿55ets Basic finan￿31 assets. which include debtors and cash bank balan￿$, a￿ inib'alty measured at Iransadion price induding transaction costs and are subsequenlly cairied al amortised cost Using the effective interest method unless the arrangernent constitules a financing transaction. where Ihe transaction is measured at the present ¥￿u￿ of the future receipts di5counled at a market rale of inte￿st. F￿ana31 assets dassrfieE1 a$ ￿ceIv¥t￿e within one year are not amortised. Basic financial liabilitles Basic financial liabilities, including Credito￿ and bank knans ale iniliaty recognised at transacti￿ price unless the affangement constitules a ffinaneing transaction. where the debt instrument is measured al the present value ol the future p8ymÈnts dÈs¢ounled at a fflaTket rale of interest. Finanoal ￿abIlitIeS dassified a$ payable within one yoar are not amortised. Debt instruments are subsequenfy earried at amortised cost. ￿ng thè effecawe interest rale meltrK*J. Trade ¢re(lilors are obligations lo pay for goods or seNices that have been g¢quwed in the ordinary ojurse of operations from suppliérs. Amounts payable are dassifEd as cJJrrenl fjabililies rf payment is due within one year or le55. If not, they are presented as nor￿¢￿￿￿ nl li*)ilrties. Trade creditors are re(x)gni5ed inilialy at transadion p￿ce and subsequentty measurèd at amortise(I c05t U￿ng the eifeclive interest method. Derecogni¢ion of rwa￿1?111abilItjeS FinanrAal habilities are dere¢ogniseO when the tharivs contradual obligalions exp're or are th's¢harged or cancelled. 1.11 R•tiTement benefits Retiremènt benefits for employees who a￿ leachet5 at Ihe Sthool are prowded by the Teachers. Pension Scheme trps).The TPS is an unfunded s(thme and contribubons a￿ calcLdated so as to spread th8 Cost of pension5 over employees. workn.ng lives ￿th the School in such a way that thè pension cost is 3 substants"¥lly level percentage of ¢Ltrrenl and hjlure pensionablo payr(Al. The contribubons are dete￿nIn￿ by the Government Aduary on Ihe basis of quadrennial valuation5 usiThJ a pmjected unit method. Thè TPS is an ullfunded multFemployer scheme with no urthrlying assets lo assign bglwetrn employers. Consequently, the TPS is treated as a defined contribution s¢heme a(xJ)unb"ng purposes and the contributions are recognisèd in the period lo which they relate. The School also contributes to pèrson•1 pension plans for administrabve emplgyegs al￿ tre pension charge prèsents the amounts paythe by the S(*od. 1.12 Leas•s Rentals payable under operating 1835es, induding ary lease incentjves received, arg charged as an expense on a 51t8ighl line basis over thè tÈm of the relevant tease. 14- CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (cOP￿INUED} FOR THE YEAR ENDED 31 AUGUST2022 Critical accounting estimatss and judgements In th? application of the thariWs accknunting pob'cies. Tftjstees are ￿￿1r8d to make judgements, eslimales and assumptions about thè carrying amount of assets and liabil￿e$ that are not readily apparent from othw SOU￿5. The estimates and associated assumpt*)ns are based on historical eX￿ri￿￿e and other factors that are ￿nSIdered to be relevanl. Aciual resuKs may drffèr from èstimatès. The estimates and underfying assumpts)n5 ate revivwed on an ongoing basis. R￿lSIonS lo accounting estirnates are recognised in the perK>d in which the estimate is revtsed where Ihe revision affects only that period, or in the period of the revision and fuiure pe￿d$ where the rev￿lon affocts both ourtenl and futurp periods. L)onations and legacies Unrestricted Unrestrlcted funds funds 2022 2021 Donations Govemment grants 15.784 1.055 30.838 15,784 31.893 Charitable activities 2022 2021 School fees Olher ￿CoMe 1.432,076 171.591 1.239.522 156,192 1,603,667 1.395,714 Investments Total Unrestricted fvnd$ 2022 2021 Interest receNable 76 15- CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST2022 Charitable aGtiv4t School expenses 2022 School expenses 2021 staff costs School expenses School me815 expenditure S¢hool Iri)s expendilure Repairs and maintènance Motor and travel Rates Light. heal and power Telephone and IT Photocopi Membership and pKofessional subscriplions Insurance Training costs Bad debts Sundry expenses 979.537 128.287 42,196 40.7QKJ 19.715 9.062 6.720 19,214 17.238 4.082 16,623 58.550 5,657 (9.002) 8.668 922.890 99.902 ,276 13,368 31.387 19.588 7,127 15,355 20.013 4.706 12.556 50,272 8,132 824 1,347.247 1241.396 Share of goveTnance costs (see note n 98.989 99.418 1,446.236 1,340,814 Govem¥nce ¢osts 2022 2021 Deprerialion 45,264 45.975 Audit fèes Legal and professional 10.276 43.449 15.1C 38.343 98.989 99.418 Analysed beiween Charitable aclivsties 98.989 99.418 Govemance costs inthdes payments to the auditors of £5.4￿12021- £5.7751 for audit fees. Trust•es None of the Trustees lor any persons connecled wth them) re￿Ived any reMu￿ratiOn or beneffts from Ihe chanty during the year. 16- CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2022 Employees The average monthly number of emthees during the year was.. 2022 Number 2021 Nwnb¢r Tèaching Finance arKI admin Faulilies 25 Total 32 Employment cosls 2D22 2021 Wages and salarie5 SoeAal secunty costs Oth¢r pen￿on cosls 805.SB9 65.943 108.CN)5 751.001 61,068 110.821 979.537 922,890 The number of employees whose annual remurteralion wa5 more than £60.0 is as louows.. 2022 Number 2021 Number £60.001 to £70.000 £70.000 to £80.CKX) Thè key management ￿rsonnel of Ihe S¢thod t￿MpriSeS thè Truslees, the Head Teacher. the deputy Head Te3¢her antl the Busar from May 2022. The s¢hoc4s Trustees a￿ not remunerat8d. The total amount of employee benefits (including employer pension contributK*nsl re￿ved by the Head Teacher 8nd the depuiy Head Teacher was £175,895. 12021". £1g6.889 - atso induded an assislant Head Teacher). 11 represents remuneration foi these h¥0 members of staff who are dl substantially involved in lÈad)ing and the supèrvision of student& 10 Taxatlon The tharity is exempt from tax on inefjme 8nd gains f81￿n9 with￿) section 505 of th8 TaxesAct 1988 or section 252 of the Taxatiorx)f Chargeable GainsAct 1992 to the extent that these ar¥ appffied to it$ charitable objects. 17- CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 11 Tangible flxed assets Fr••hold Plant & IT Flxturn& and ttfngs Tolal Cost Al 1 September 2021 Additions Disposals 1.466.163 175.791 291.777 184.432 2,151 1198,5731 (123,607) 1.922.372 177,942 1322.180) At 31 Augus12022 1.641,954 93.204 42.976 1.778,134 Oepreciatlon and Impalmient At 1 September 2021 Depre¢ialion charged in the year Eliminat¢d in ie5pect of disp05als 239,870 27.866 258,865 1 $1.868 12,983 4,415 (198.573) {123,607) 650.603 45,264 {322,1801 Al 31 Augusl 2022 267.736 73275 32,676 373,687 Carylng amount At 31 August 2022 1.374.218 19.929 10.300 1.404.447 Al 31 August 2021 1.226.293 32,912 12.$84 1,271.769 Included in land and buibjings is freelN)hY land al 8 waluatson of £51￿.0(￿) (2021:£5o0.O￿} wh￿h is not depreciated. 12 Stocks 2022 2021 Sundry stod(s 1,C67 1.245 13 Dèbtors 2022 2021 Amounts tslling due within one y6ar. Trade deblors Other debtors Prepayments and a¢¢med irKX)me 1,241.569 4.976 37,671 1,191.401 1.503 22,564 1,284,216 1,215,468 18- CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED FOR THE YEAR ENDED 31 AUGUST2022 14 Creditors: amounts falling due Tmthin one year 2022 2021 Bank loans Trade ¢￿ditOrS Other taxation and social secJJTity Other uedrtors Accruals Deferred in¢orne 17 114,660 12.660 15,054 70,791 266,313 1.288,850 114,862 27,419 16.203 114.565 213,371 1,189,348 16 1.768.328 1.675,768 15 Creditors: amounts falllng •ftw mor• than ¢)rt* 2022 2021 Bank loans Other creditors 17 4.843 91.DOO 117,794 78.000 95,843 195.794 16 Dèferrod Sn¢ome 2022 2021 Arising from Deferred in(x)me 1,288.850 1.189,348 Doferred income is induded in the finan¢ial statements as fdbws". 2022 2021 Dèfèrred income is induded within= Curretrt liabilities 1288.850 1,189.348 Movements in tre year. Deferred Ir￿ome at 1 September 2021 Released from previous periods Resources deferred in Ihe year 1.189,348 1,137.485 11.189,348) 11,137.485) 1.288,850 1,189.348 Defe￿ed income at 31 AugLLsI 2022 1.288.850 1.189,348 19- CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2022 16 D¢f•rrgd inctsm• (Continued) School fees are invoiced in Juty for the coming acadefflic year. arHI are the￿fOre indudÈd in deferred incx)me al the year end. The priN year deferred income balarte has been released Ni ¥i tr* ye8r. and the total current year balance has been deferTed for this year. 17 Loan$ and overdrnfts 2022 2021 Bank loans 119,$03 232,656 Payable vrrilhin one year Payable after one year 114.660 4.843 114,862 117.794 The bank loan 15 secured on the CoMpan￿S freehold propety ty way of a first legal tharge in favour of the bank. Interest is charged a12.75% over the bank's base rate. The dwrges were satisfied aftgr thg year end. CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2022 18 Rétirement bèrtèflt $¢hemes Defined contribution sch•m•s The Teacher5, Pension Scheme (rps) 15 a statulory, contritwjtory, define(I benefft scheme, govemed by the Teachers, Pension Stheme Regulati￿$ 2014. Menknrshwi is aulomalic for ful-time teachers in schtsols and from 1 January 2007. aulLNnatic for lea¢*er5 in part4irne empbyment. AX teachers have the option to opt out of the TPS following enrolmenL The TPS is an unfunded scheme to which both the member and employer makes ￿ntrIbutIons. as a percentage of salary. These contributK*ns are uedited to the Exthequer. Retwemenl and otheT pension benefits a￿ pawj by publiG by Patlwamw The Govemmenl Actuary, using norrnal actuaiial pr1rKyp￿￿. COnd￿ts a fomwl actuarial review of th8 TPS in accordance with the Puuic S¢rvKo Pens￿n5 Ivalualions and Employer Cost Cap) (Amendment and Sawng$l Dire¢tiDns 2019. The aim of the ieview ￿ to speufy the level of firtU￿ contritr4Jtions. Acluarial scherne v8lu8tions are dependent on assurnpl'ons aboul the vahje of lulure costs, design of benèffts and many other factors. The latest actuarial vatuation of the TPS was caThied oul as al 31 Marth 2016. Thè v8luatKJn r8port was published by the Department for Education on 5 March 2019. The key ekniènts ol thè valuation and subwuént u)nsultation are". employer con1nt￿tiOn rates set at 23.68% of pensN)nable pay linthding a 0.08°h employer administration charge) total stheme liabdities (pensions CUTrendy in payment and the estirnaled ￿151 of future benefits) for s¢M¢e lo lh¢ elfediv¢ of £218.1￿ mikon. arwj nolicjnal assets (estimated future contributitsns logether with the rK>lional investsrenls at the valuaknun date) of £196,100 million giving a notional past Service deficit of £22.OLKI mthion an employer conlribution o)Trection cost of 7.3% of pensionable pay w¢U be applied to fthur8 valuations the assurned real rate of relum is 2.8% in excess of and 2% in excess of earnings. The rate of real earnings growth is assumed to be 2.2%. The assumed nominal rale of retum is 4.45%. The TPS v31uatK>n for 2016 detemiine$ an employer rate of 23.68%. whth was P8y8ble from September 2019. The employer pewons c4)sts paid to TPS in the year anN)untad to £99.234 (2021". £102,724}. A copy of the ValualK￿ report 5UPP(Mting dcKwmentstion 15 on the Teathews, Pension web$ite. Under definitions set out in FRS102. the TPS Is an unfunded MU￿￿eMploYer pension scheme. The School has accounted for its conlributions lo the $d￿me as if rt were a (￿f￿e{l ¢on1ribution scheme. The School also make5 contribulKJns to personal ￿slon plans for non-teathing staff. The total cost of these contributions was £8,Tt112021'. £7,949). -21- CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 19 D•signated funds The income funds of the charity indude the fol(Ming designated funds vthith have been set aside out Df unrestricled funds by the trustees for specJhc purFrf)5es.' Movement In funds 31 Aygust 2022 Sile development fijnd Personal donations fund General funds 43.200 20,000 18.1S21 111,8481 1,158,462 63.200 3,877 {771> 1.CMJ).201 1.615,574 (1,445.4651 1.048.447 1.619.451 {1,446,2361 1,221,682 Comparative infomi81ion in respect ofthe preceding period 1$ as folw: Movemènt in funds Balancè ai Inc+)mlng Rtrstsurt•s Twsf•ts B¥lan¢¥ at 1 Seplernber rgsourc•s •KpwMl8d 31 August 2021 2022 Site dèvèk)pmenl fvnd Personal donalions fund Gen8ral futMIs 43,2(XJ 5.196 257 (40n 913.182 1.427.426 (1,340.407) 43.2C 5,045 1.iX)0.201 1,048.447 1.427.6B3 {1,340,814} 1.tM8,447 20 Operating leasè commltmènts At the reports'ng end dale the tharity had outstandwy ojmmitments for future minimum lease payments under non-cancall8bk operatirvJ leases, which fall due as folw: 2022 2021 Wrthin one year Between two and five years 7,308 10,466 7,100 19,615 17,774 26.715 CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 21 Related party transactions Trustees whose children attend the pay fees al the saffle rate as any other parent. In addition thè sthool engaged the servKes of J & S Parirwship. a twwnes$ in vA)Kh the Trustee J P Burns has a material interest. to ￿)nStme1 a conservatory. The transa¢Aion was at arms. length and amounted lo £167.400. The work was awarded to J & S P8rtnership. folhjwing a formal lender wocess. 22 Cash generat•d from 0￿ratiOnS 2022 2021 Surplus for the year 173.215 86,869 Adjustments for. Inveslrnent income Tecognised in statem8nt offinan(i81 athitss Depreciation and impairmenl of tangible fued assets (761 45.976 45,264 Movements in working capit￿-. Decrease in stocks {Increase} in debtors Increase in ¢redilors Incrèase in defetrèd in￿rne 178 168,7461 6.280 99.502 110.055) 38,239 52,013 Cash generat•d Irom operntions 255,671 213,009 23 Analysis of changes in net funds At 1 S•ptwnber ¢a5h flows At 31 August 2022 Cash al bank and in hand 431,527 {35.424) 396,103 Loan5 faling due wilhin ono year Loan5 falling du& after more than one year (114,8621 (117,7941 202 112,951 (114,660} 14,843) 198,871 77,729 276.6 Charity regiyirntion numbèr 505310 Company rngistration numb•r 012607651England and Wales) CARLETON HOUSE PREPARATORY SCHOOL ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 CARLETON HOUSE PREPARATORY SCHOOL LEGAL AND ADMINISTRATIVE INFORMATION Tru$teÈs G H 8e(*- Chaff of Trustees jP￿m$ E Czamecki S L Fletcher C M HaNison S M H¢9aty (Appointed 18 January 20231 C B Holguin MJoe (Appointed 1 February 20231 T Mannin9 L Morrison Charity number 505310 Company number 01260765 Registèred offi¢e 145 M•nlov8A¥enue Pélerseyside L18 3EE Auditor XèinadinAudit Lwniled 2 Hilliards Ccwjrt Chester Busness Park Chester Cheshire CH4 90P CARLETON HOUSE PREPARATORY SCHOOL CONTENTS Page Trustees, report Statement of Twslees. responsitilllie5 Inde￿ndent audilo¢s reFA)rt Statèment of finantyal #di￿5 Balance sheet 10 Statement of i>sh ffiows 11 Notes to the financial statements 12-23 CARLETON HOUSE PREPARATORY SCHOOL TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 AUGUST 2022 The Trustees p￿sent their annual report ar￿ ffinanci￿ 5tatew*nts for the ye8r ended 31 August 2022. The financial slatwmenls have been prepared in ar*ordan￿ wrfh the a¢￿untIng polic￿$ set c*Jt in r￿le 1 lo Ihe financial slalemenls and comply Mlh the tharit￿S Memorandum and Arlicles of A5SD¢j8t￿n. Ihg Companies A 2006 and 'Accountsng and Reporting by Charibes." state￿nI of R8crmimended Practice applicable lo charitie5 preparing their a¢¢ount5 in a¢xordanGe wtth the Financial Report￿Ig Stsndard appkable hi the UK and Republic of Iieland IFRS 1021" (effective 1 January 2019}. Objectives and activities The Head Teacher and all slaff have supported the sthod and worked hard lo mantain high sthool standards. The GDveming Body of the school is also activety involved in the ovèrsight of the management of the school and in setting new objectives forthe school for the luiure. C3ilelon House provides equal opportUnit￿S for al staff and pu￿Ls. The school is commilted to the safeguarding of chiklren aThJ its p￿￿S and procethres refled this. All rM)li¢ies and procedures a￿ updated as appropriate and arE awddable at the srjwl for inspedion. In Setting the School's objectives, the Twslees have given Caref￿ consKleralion to the Charity Commission's general guidance on pubthc benefits and in partiujlar to rts suppbemenlary public benefrt guidance on advancÈng 8ducation and on fee charging. The Trustees have paid due regard lo gutdance i*sued by the Charity Commission in dec*Jing what actswlie5 the charity should undÈrtakÈ. Achievements and perfonnance Garlelon House wa5 ranked as the highe51-placed indewdenl preparatoty school Merseyside by th8 most re¢ent Sunday Times Parenl Power Sthoo]s Gu¢de. It was ranked 10th over￿1 nationaly. Thè majorily of our pupils obtsin their first cknKe welewi¢e al secrmdary schoot level. The plac8s secured for 2021-2022 were as follows: The Blue Coat School- 14 pupils St Mary's Colleg&- 3 pupils Merchant Taylors. College- 1 pupil Sl Margatel's Atsdemy- 1 pupl Belvedere Aca(Jemy- 1 pupil Calderslones S¢hool- 1 pupil King David High S¢h(K)1- 1 pupil St Edwards College- 1 pupil CARLETON HOUSE PREPARATORY SCHOOL TRUSTEES, REPORT {INCLUDING DIRECTORS. REPORD (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 The achievements of our pupils are usualy rr￿aSured in Statutory Attainment Tests ISATS) using a scaled score. SATS testing resumed in May 2022. however Tesulis were not published nationally. Our SATS results remained in line with those high scores achieved in prevw)us years but comparison against other schools and national figurés was not possible. The School continued lo prowde a daily hot lunch for every d)dd p￿pa￿d by their own chef in Ihe kitchen to meet national lood Standards in schools. The qudity of fc#Jd aThJ cho￿2 15 ckjsety monitored and has been a ￿eat success wrth th& childien and staff. The Sthool has an active ¢lv)w whith is ask¢(I lo perf(Km at IAetropolitan Cathedral Christmas Concert every year and has taken part in a Jocal Cathok school thoir festival. The Sclwol runs a vibrant and positive mustc programme for pupils with the ou15ide resoLrn of Pulsè Music Liverpool. This has firmly cemented the devebpmenl of a $Gh(￿l wNJe Introdu￿on to music and we have a school orchestra. Al junior school pupils are offered rnusical luition on an instrument and the thar*ee to join the school orchestra. Pupils are inviied to take part in con￿rtS at Christmas or al the end of the school ye8r to ¢e￿rat& Ihwr achievements. Pupils are also provided with Ihe opportunty to take musical exams. The schLKsl provides an extensive range of extra ￿MI)jIar dubs includirwJ debating. ffirst aid, dance, judo. thess and wide variety of sports cjubs. Fundrai$ing *¢ti¥iti¢s and inwne g¥neration The school has continued to support local charrlies, iThJuding Cafod. B Thjge 2, South Lrverpwl Foodbank and th Whitechapel Centre for the homeless as wel as othef bxal and nation￿ good Gause5 and tharities. Financial ￿VIeW In what has been a difficult y8ar with high amounts of financ4al uncertainty. the Board of Tru5tee5 have ￿ntinUed to evaluate Ihe reserves requirements to énsur8 Ihe c￿tinUed running of the sthool. Due to prudent financial management over recent years, our reseryes have twi grryrting. whth meant thal wg were in a strong position to miligale the f￿an￿￿1 risk5 arising from the pandemic. As a general njle. the Board of Trustees have deuded that the sthool should have cash reserves equivalent to between three and six monlhs cos15 foi busine55 as usual operations. although this may b¢ redu￿￿ in peiiods sigrwfiGant wrtal inveslment is needed. The current year surrAus is £173.215. The general reserve has ¢n¢yea5ed to £1.221,662, inthd￿g ¢a$h bal￿¢9$ of £396,103. This is within the range of reseThes agreed by the Board of Trustees. allhough scrfne of retained serves have been sel into a 5pecAffic fund which will be utlised lo finance an ambrtious developrnent of the ￿rrent prefflises. which is planned to be phased over the next three years. Thè principal sourcè of lunding is Ihe fees d)arged to parerlts forlhe pro¥ision of sthool plxes for their childrèn. The Trustees have assessed Ihe major r￿kS to which the company is exFKJsed. in parti¢ulai those related to the operation5 aTrJ finances of the company, and ar8 satisfied that systerns and prockdures are in place lo mil￿ale exposure to the major risks. Plans for future periods Construction was recently completed on a nèw purpose bult M￿eM d￿k￿Orn which replaced our preV￿u$ cloakroorn which was housèd in thè original ts)nservatory to the house. As Outlined in our finanoal review. our growth in reserves will be partI￿ty utilised to fund a scheduled programme of buskjing refresh for the coming years, including intemal and extemal refurbishment and the rè dèvélopmènt of th• EYFS playground. CARLETON HOUSE PREPARATORY SCHOOL TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Structure. governan￿ and management C8rfeton House Preparatory School Limrted is registered as a d*rilable company limited by guarantee and was sèt up by a Memorandum ofAssoaation on 28 May 1976. The Memorandum and Arbdes of Associat￿ We￿ altered by sp*ial reS0￿￿on on 181h June 2020. The principal object of the crxnpany is to prtrwde a fiT5t dass. iridependenl (treduc*"onal s¢hool to pupils aged 3 to 11 years. The Head Teacher is a member of Ihe Independent Schools A550cia1￿n. which give5 acGreLlilalion by the Independent Schools Counol. The Schocl is a Catholic School which accepts children of other denominations and faiths. It h¥$ str￿9 links with the ArChd￿reSe of LiVe￿[KA and thg Parish of Our Lady of the Annunciation Bishop Elon. The Trustees. who are also Ihe dire¢tors for Ihe purpose ol ￿n￿anY Jaw. and who seNed during the year and up to the dale of signature of the finanual ststerr*nts wete: G H 80￿- Chair of Trustees M l Arshad J P Burns E Czarnecki D J Fletcher S L Flel¢htrr C M Harrison S M Hegarty C B Holguin MJoe M Kirby T Manning L Morrison S J Swanson (Apwnted 16 September 2021 and reyigne(130ALMJUSt 20221 (ReS￿ned 6 Juty 20221 IAppointed 18 January 2023) (Apph)wrted 1 February 2023) (Resigned 7 June 20221 (Resigned 6 ju￿ 2022) Th& management of the Cwipany is the reskK*nsibdrty of the Tnjstees who are elecied and ¢wpted under IIR torms of the Mernorandum of A550ciab"on. None of the Trustegs has any benef￿.81 ￿terest in the ¢￿pany. All of the Truslegs are Members of the company and 9uaianlee lo Gwlribule £1 in the event of a winding up. The Board of Trustees determines the general strategy and poky of the school. bjl the daY-l￿daY management of the school is delegated lo the Head Teacher. The Board meets at least lemW and there are a number of sub- commiitees convening such areas as Curri￿lurn and SaI￿Juarding. Finan￿. Buildings 8n¢J Heatth and Safety and Pay and Appraisal. The trustees who served dU[￿g the year are shown on p￿e one. Trustees are appointed by the Board of Trustees (also known as the Goveming Body) and serve for a penod of three years. Upon Ihe end of each three-year term, truslees a￿ eligible for ￿-ele￿i0￿. Vacant trustee p05ition5 are advettised with a curyent equal number of exlemal trusiees and trustees who are currenl parent5 of the schcd. New twstee5 are ptOVKled with an introduction into the nalure 3nd running of the school. Auditor In accordance wilh the company's ath"des. a resolutton pro&K)sing that Xeinadin Audit ￿Mited be reappointed as auditor ol Ihe company will ￿ pul al a General Meeting. CARLETON HOUSE PREPARATORY SCHOOL TRUSTEES. REPORT {INCLUDING DIRECTORS. REPORT) (coTrrfiNUED) FOR THE YEAR ENDED 31 AUGUST 2022 Disclosure of Inforniatlon to audltor Each of the Truslees has cx)nfirmed that Ihwe is no ￿tOrmatIon d ¥vhth tlw aware which is rd8wI lo the audit, bul of which lh8 auditor is Lm8Wafv. They have ft*ther conf1m￿d that they havg lak8Fh approw'ate step5 to identify suth rdevant informatrjn and to eslablish thal Ihe awae of such n)fonnation. The TNg1$9s' wcKt proved by Ihe Board ofT￿￿. - Chair of Ttustees Dale.. 2.a...£......'aS... CARLETON HOUSE PREPARATORY SCHOOL STATEMENT OF TRUSTEES, RESPONSIBIUTIES FOR THE YEAR ENDED 31 AUGUST 2022 The Trustees, who ￿ alw the dire(*ors of Carleton House Preparatory School for ￿ purFx)se of ¢xmpany law, are responsible for preparing the Trustees. Report and the financ1￿ ststements in arxordance with appl￿ble law and United Kingdom Accounting Standar¢Js (unit￿ KW)m Generaliv Accepted Accounting Practice). Company Law requires the Tvustees lo prepare finanual statements for e¥* fmawal year which give a Irue and fair view of thè st3tÈ of afrdits of the charity and of the in(XJmtng resources and application of osources, induding the ineome and expenditure, of the charitsbk ¢)Jmpany for that year. In preparing these finanual statements. the Trustees are requirgj to-. - selecl suitable a¢¢ounling po￿"(￿eS and then apFdy th8m consistentty". - obseNe the methods and pfinciple$ in the Chwthes SORP," - make judgements and eslimales that are reasonat)le and wudent" state whether appli¢able UK AcoJuniThJ Standards have been foltrwwj. subJeLI to any material departures disclosed and explained in the finan Nat cash used In Invèstlng a¢tlYllig$ (ITI.942) (20,5131 Fin#nclng a¢tivities Repayment of bank ban5 (113.1531 {9D.4611 Net cash used in financing activiliès {113.153) (90,4611 Net Idecreasellincrease in cash and cash equlvalents {35.424) 102,035 Cash and cash Èquivalents at beginning of year 431,527 329.492 Cash and cash equivalènts at ènd ot year 3￿.103 431.527 11 CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 Atcounting policies Charity infornmtion Carfelon House Preparatory School is a private company Iffnited by guarantee inccffporated in England and Wales. The registered office is 145 M¢nlovo Avenue, Dverpo(A. Mgrs¢yside. L18 3EE. 1.1 Accounting eonvention The financial statements have prepared in aeeordancÈ WElh thè d)aritrfs 190￿mIng documentl, the Companies Ad 2006. FRS 102 -The Finan(Yal Reporting Stsndard applicable in the UK and Republic of Ireland" fFRS 1027 and the Charities SORP "AcLount¥ig and Reporting by Chariknes." Statement of Recommended Pradice applica1￿& to charl￿.&S preparing their accounts in accordance wrth the Financial Reporting StsrKlard apwicable in the UK and Repjbbc of Ireland (FRS 1021" Ipffective 1 January 20191. The charity 15 a Public Benefit Entity as d8fm8d by FRS 102. The finanoal stalements are prepaie¢J in sterfing. whv* is the funthinal currency of the charity. Monelary amounts in these finanGial 51alements are rrJun(led to the neare5t£. The financial statements have been prepared under the histori￿1 cost convenlion, Imodified to indudè the revaluation of freehold properties al fair vahjel. The prinripal accounting poliaes adopted are set out below. 1.2 Going ¢on¢em Al the lime of approving the financaal State￿￿nts. the Tru5tee5 have a reasonable expecialion that the charity ha5 adequate resources to continue in yrational e￿steTrce for the foreseeable fvlure. Thus the Trustees conts'nue to adopt the wng concem baw$ of a￿untIng in p￿Paring the financial staternents. 1.3 Charitsble funds Unrestricted funds are availablè for use at the disuelion of the Trustees in furtherarth of lhe￿ charitable (￿Jectivt$. Re8tricted funds are subject 10 5peciffic ￿Tr￿i￿.0nS ty donor5 a5 lo how they may be wed. The pu￿08e$ and uses of the reslri¢aed fvnds are set out in the notes to the finan(4al statements. 1A Incom¢ Income is ￿￿gnIsed when the ¢PTarity is legafy erfitled to rt after any perfomian¢e cts)dibons have been met. the amounts can be measured rdiably. and rt is probable that income wdl be received. Grants are indude(l in the S181ement of Financial Acli¥ib"es on a re¢eNab￿ basks. The ba1￿Ce of ItKome re￿IVed foi specrfic purposes but not expended during the period shown ￿ the relevant funds on the Balan￿ Sheet. whe￿ income is received in advancè of entitlament of recÈipL its ro¢ognition is deferred and included in Greditors a5 deferred I￿￿￿e. Where enbuement oowr5 before inc￿le 15 received, the income is awued. Cash donations are recognised on receipl. Other donations ar8 recOgnis￿ once the charity has been nohfied of the donation, unless pwfotrnance l￿dItK)n5 requÈre deferral of the amount. Income tsx recovei8ble in lali¢)n to donations re￿Ved under GiftA¢d or deeds of o)venant is r8cognwd al the time of th8 donation. Legacies are recognised on reGeipt or other*￿e rf the chan.ty has been notrfied of an impending distribution, the amount is known. and T￿lpt is expecied. If the amount is thown. the legacy is tr83t8d as a contingent asset. 12- CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS {CONTINUED> FOR THE YEAR ENDED 31 AUGUST2022 Accounting policies (Continued) 1.5 Expendiiurè Expenditure is recognised once th&re 1$ a legal (x (x)nstrudwe obtyts.on lo transfer economic benefit to a third party. it is probable that a transfer of ec4Jnomic beneffts will be required in seltlement. and thè amount of the obligab'¢￿ can be measured reliabty. Expenditure is dassiffied by activity. The costs of each a(*wty are made up of the total of direct costs and shared costs. including support costs invofved in undertakw each activity. Direct cosls attributablè to a single activity are allocated dIre￿Y to that ac1]￿ty. Shared costs which contribute to nwjre than one ath"¥ty and support costs whKh are nol attribthable to a Sing￿ a¢h￿"tY are apporb.oned be￿een those acthvib.es on a basis COnS151enl with the use of ￿￿urceS. Central staff costs are auocated on the basis of lime spenl, and depreciation charges are alkJcatÈd on the porbon olthe asset's use. 1.6 Tangible fixed ass•ts Tangible fixed assets are initially measured at ¢xJst and subsequenty measured al eoyt or v8luatbJn. net of depreciation and any impairment k)sses. Dep￿ciall0￿ is le￿9￿15ed so as lo wrile off the cost or valualKJn of assets kns their residual valu&s 0￿r thèir useful lives owl the folloMng bases= FreehiAd property Freehold improvèments Plant & IT equipment FixLures and fittings Over 50 yeats- builthngs only &25 years straight line >5 years strawJht ￿ne 24 year5 stra*Jht fjne The gain or loss arising on tho disposal of an a55el 15 determined as the difference behveen the sajo proc*eds and the carrying value of Ihe asset. and is recognised in the statement of finan¢ial actNilies. 1.7 knpalm)Ènt offixed assets At each reporbng 8nd datè. the t*anty reviews the caThying amounls of its tsngible assets lo determine whethef there is any indication that those assets have suffeied an impairment loss. If any such ￿diCatiOn exists, the recoverable amount of the &3sel is estimated in ordw to delennine extent of ￿ impairmgnt ss lif any). 1A Stocks Stocks are stated at th¢ lowei of ￿3t and estirnated sdling wice kss costs to con¥Aete an(1 sen. Cost comprises dired materials ar￿. where applicatle. dwect labour cnsts and thosè ovÈrhèad$ that have been incurred in bringing the stocks lo their present Wkn"on and condition. Items held for disthbution al no or rtominal Consideration are measured Ihe k)wer of replacernent cost and cost. 1.9 Cash and cash equlvahnts Cash and cash equivalents Indu￿ rash in hand. deposits held al call with banks, other short-twm liquid investments with (xiginal malunb.es ol three nKJnlhs or less. and bank ovgrdrafts. Bank overdrafts 8re shown within borrowings in ¢urrent Ikibilrfies. 13- CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Accounting policles Icontlnued) 1.10 Finan¢Sal Instruments The charity has de¢led to appty the provisiorrs of Seclion 11 'Basic Finanaal Instruments. and Section 12 'Othèr Fin8ncial Instruments Issues. of FRS 102 to all of rts finanoal instruments. Financial instruments ale recognised tri the ¢harWs baa￿￿ sh￿1 when the tharity becomes paty lo the CxJntraCtu￿ provis￿nS of thè instrurnent. Financi?1 assets and liabflities * offset, with the net amounts presentsd in th8 finanaal statements. when tt)ere is a legally enforceable right to set ofl the recognised amounts and thÈre is an inlÈnllon to settle on a nel basis or lo realise th¢ asset and setue the liablity simullaneously. Basi¢ fIna￿la1￿55ets Basic finan￿31 assets. which include debtors and cash bank balan￿$, a￿ inib'alty measured at Iransadion price induding transaction costs and are subsequenlly cairied al amortised cost Using the effective interest method unless the arrangernent constitules a financing transaction. where Ihe transaction is measured at the present ¥￿u￿ of the future receipts di5counled at a market rale of inte￿st. F￿ana31 assets dassrfieE1 a$ ￿ceIv¥t￿e within one year are not amortised. Basic financial liabilitles Basic financial liabilities, including Credito￿ and bank knans ale iniliaty recognised at transacti￿ price unless the affangement constitules a ffinaneing transaction. where the debt instrument is measured al the present value ol the future p8ymÈnts dÈs¢ounled at a fflaTket rale of interest. Finanoal ￿abIlitIeS dassified a$ payable within one yoar are not amortised. Debt instruments are subsequenfy earried at amortised cost. ￿ng thè effecawe interest rale meltrK*J. Trade ¢re(lilors are obligations lo pay for goods or seNices that have been g¢quwed in the ordinary ojurse of operations from suppliérs. Amounts payable are dassifEd as cJJrrenl fjabililies rf payment is due within one year or le55. If not, they are presented as nor￿¢￿￿￿ nl li*)ilrties. Trade creditors are re(x)gni5ed inilialy at transadion p￿ce and subsequentty measurèd at amortise(I c05t U￿ng the eifeclive interest method. Derecogni¢ion of rwa￿1?111abilItjeS FinanrAal habilities are dere¢ogniseO when the tharivs contradual obligalions exp're or are th's¢harged or cancelled. 1.11 R•tiTement benefits Retiremènt benefits for employees who a￿ leachet5 at Ihe Sthool are prowded by the Teachers. Pension Scheme trps).The TPS is an unfunded s(thme and contribubons a￿ calcLdated so as to spread th8 Cost of pension5 over employees. workn.ng lives ￿th the School in such a way that thè pension cost is 3 substants"¥lly level percentage of ¢Ltrrenl and hjlure pensionablo payr(Al. The contribubons are dete￿nIn￿ by the Government Aduary on Ihe basis of quadrennial valuation5 usiThJ a pmjected unit method. Thè TPS is an ullfunded multFemployer scheme with no urthrlying assets lo assign bglwetrn employers. Consequently, the TPS is treated as a defined contribution s¢heme a(xJ)unb"ng purposes and the contributions are recognisèd in the period lo which they relate. The School also contributes to pèrson•1 pension plans for administrabve emplgyegs al￿ tre pension charge prèsents the amounts paythe by the S(*od. 1.12 Leas•s Rentals payable under operating 1835es, induding ary lease incentjves received, arg charged as an expense on a 51t8ighl line basis over thè tÈm of the relevant tease. 14- CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (cOP￿INUED} FOR THE YEAR ENDED 31 AUGUST2022 Critical accounting estimatss and judgements In th? application of the thariWs accknunting pob'cies. Tftjstees are ￿￿1r8d to make judgements, eslimales and assumptions about thè carrying amount of assets and liabil￿e$ that are not readily apparent from othw SOU￿5. The estimates and associated assumpt*)ns are based on historical eX￿ri￿￿e and other factors that are ￿nSIdered to be relevanl. Aciual resuKs may drffèr from èstimatès. The estimates and underfying assumpts)n5 ate revivwed on an ongoing basis. R￿lSIonS lo accounting estirnates are recognised in the perK>d in which the estimate is revtsed where Ihe revision affects only that period, or in the period of the revision and fuiure pe￿d$ where the rev￿lon affocts both ourtenl and futurp periods. L)onations and legacies Unrestricted Unrestrlcted funds funds 2022 2021 Donations Govemment grants 15.784 1.055 30.838 15,784 31.893 Charitable activities 2022 2021 School fees Olher ￿CoMe 1.432,076 171.591 1.239.522 156,192 1,603,667 1.395,714 Investments Total Unrestricted fvnd$ 2022 2021 Interest receNable 76 15- CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST2022 Charitable aGtiv4t School expenses 2022 School expenses 2021 staff costs School expenses School me815 expenditure S¢hool Iri)s expendilure Repairs and maintènance Motor and travel Rates Light. heal and power Telephone and IT Photocopi Membership and pKofessional subscriplions Insurance Training costs Bad debts Sundry expenses 979.537 128.287 42,196 40.7QKJ 19.715 9.062 6.720 19,214 17.238 4.082 16,623 58.550 5,657 (9.002) 8.668 922.890 99.902 ,276 13,368 31.387 19.588 7,127 15,355 20.013 4.706 12.556 50,272 8,132 824 1,347.247 1241.396 Share of goveTnance costs (see note n 98.989 99.418 1,446.236 1,340,814 Govem¥nce ¢osts 2022 2021 Deprerialion 45,264 45.975 Audit fèes Legal and professional 10.276 43.449 15.1C 38.343 98.989 99.418 Analysed beiween Charitable aclivsties 98.989 99.418 Govemance costs inthdes payments to the auditors of £5.4￿12021- £5.7751 for audit fees. Trust•es None of the Trustees lor any persons connecled wth them) re￿Ived any reMu￿ratiOn or beneffts from Ihe chanty during the year. 16- CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2022 Employees The average monthly number of emthees during the year was.. 2022 Number 2021 Nwnb¢r Tèaching Finance arKI admin Faulilies 25 Total 32 Employment cosls 2D22 2021 Wages and salarie5 SoeAal secunty costs Oth¢r pen￿on cosls 805.SB9 65.943 108.CN)5 751.001 61,068 110.821 979.537 922,890 The number of employees whose annual remurteralion wa5 more than £60.0 is as louows.. 2022 Number 2021 Number £60.001 to £70.000 £70.000 to £80.CKX) Thè key management ￿rsonnel of Ihe S¢thod t￿MpriSeS thè Truslees, the Head Teacher. the deputy Head Te3¢her antl the Busar from May 2022. The s¢hoc4s Trustees a￿ not remunerat8d. The total amount of employee benefits (including employer pension contributK*nsl re￿ved by the Head Teacher 8nd the depuiy Head Teacher was £175,895. 12021". £1g6.889 - atso induded an assislant Head Teacher). 11 represents remuneration foi these h¥0 members of staff who are dl substantially involved in lÈad)ing and the supèrvision of student& 10 Taxatlon The tharity is exempt from tax on inefjme 8nd gains f81￿n9 with￿) section 505 of th8 TaxesAct 1988 or section 252 of the Taxatiorx)f Chargeable GainsAct 1992 to the extent that these ar¥ appffied to it$ charitable objects. 17- CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 11 Tangible flxed assets Fr••hold Plant & IT Flxturn& and ttfngs Tolal Cost Al 1 September 2021 Additions Disposals 1.466.163 175.791 291.777 184.432 2,151 1198,5731 (123,607) 1.922.372 177,942 1322.180) At 31 Augus12022 1.641,954 93.204 42.976 1.778,134 Oepreciatlon and Impalmient At 1 September 2021 Depre¢ialion charged in the year Eliminat¢d in ie5pect of disp05als 239,870 27.866 258,865 1 $1.868 12,983 4,415 (198.573) {123,607) 650.603 45,264 {322,1801 Al 31 Augusl 2022 267.736 73275 32,676 373,687 Carylng amount At 31 August 2022 1.374.218 19.929 10.300 1.404.447 Al 31 August 2021 1.226.293 32,912 12.$84 1,271.769 Included in land and buibjings is freelN)hY land al 8 waluatson of £51￿.0(￿) (2021:£5o0.O￿} wh￿h is not depreciated. 12 Stocks 2022 2021 Sundry stod(s 1,C67 1.245 13 Dèbtors 2022 2021 Amounts tslling due within one y6ar. Trade deblors Other debtors Prepayments and a¢¢med irKX)me 1,241.569 4.976 37,671 1,191.401 1.503 22,564 1,284,216 1,215,468 18- CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED FOR THE YEAR ENDED 31 AUGUST2022 14 Creditors: amounts falling due Tmthin one year 2022 2021 Bank loans Trade ¢￿ditOrS Other taxation and social secJJTity Other uedrtors Accruals Deferred in¢orne 17 114,660 12.660 15,054 70,791 266,313 1.288,850 114,862 27,419 16.203 114.565 213,371 1,189,348 16 1.768.328 1.675,768 15 Creditors: amounts falllng •ftw mor• than ¢)rt* 2022 2021 Bank loans Other creditors 17 4.843 91.DOO 117,794 78.000 95,843 195.794 16 Dèferrod Sn¢ome 2022 2021 Arising from Deferred in(x)me 1,288.850 1.189,348 Doferred income is induded in the finan¢ial statements as fdbws". 2022 2021 Dèfèrred income is induded within= Curretrt liabilities 1288.850 1,189.348 Movements in tre year. Deferred Ir￿ome at 1 September 2021 Released from previous periods Resources deferred in Ihe year 1.189,348 1,137.485 11.189,348) 11,137.485) 1.288,850 1,189.348 Defe￿ed income at 31 AugLLsI 2022 1.288.850 1.189,348 19- CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2022 16 D¢f•rrgd inctsm• (Continued) School fees are invoiced in Juty for the coming acadefflic year. arHI are the￿fOre indudÈd in deferred incx)me al the year end. The priN year deferred income balarte has been released Ni ¥i tr* ye8r. and the total current year balance has been deferTed for this year. 17 Loan$ and overdrnfts 2022 2021 Bank loans 119,$03 232,656 Payable vrrilhin one year Payable after one year 114.660 4.843 114,862 117.794 The bank loan 15 secured on the CoMpan￿S freehold propety ty way of a first legal tharge in favour of the bank. Interest is charged a12.75% over the bank's base rate. The dwrges were satisfied aftgr thg year end. CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2022 18 Rétirement bèrtèflt $¢hemes Defined contribution sch•m•s The Teacher5, Pension Scheme (rps) 15 a statulory, contritwjtory, define(I benefft scheme, govemed by the Teachers, Pension Stheme Regulati￿$ 2014. Menknrshwi is aulomalic for ful-time teachers in schtsols and from 1 January 2007. aulLNnatic for lea¢*er5 in part4irne empbyment. AX teachers have the option to opt out of the TPS following enrolmenL The TPS is an unfunded scheme to which both the member and employer makes ￿ntrIbutIons. as a percentage of salary. These contributK*ns are uedited to the Exthequer. Retwemenl and otheT pension benefits a￿ pawj by publiG by Patlwamw The Govemmenl Actuary, using norrnal actuaiial pr1rKyp￿￿. COnd￿ts a fomwl actuarial review of th8 TPS in accordance with the Puuic S¢rvKo Pens￿n5 Ivalualions and Employer Cost Cap) (Amendment and Sawng$l Dire¢tiDns 2019. The aim of the ieview ￿ to speufy the level of firtU￿ contritr4Jtions. Acluarial scherne v8lu8tions are dependent on assurnpl'ons aboul the vahje of lulure costs, design of benèffts and many other factors. The latest actuarial vatuation of the TPS was caThied oul as al 31 Marth 2016. Thè v8luatKJn r8port was published by the Department for Education on 5 March 2019. The key ekniènts ol thè valuation and subwuént u)nsultation are". employer con1nt￿tiOn rates set at 23.68% of pensN)nable pay linthding a 0.08°h employer administration charge) total stheme liabdities (pensions CUTrendy in payment and the estirnaled ￿151 of future benefits) for s¢M¢e lo lh¢ elfediv¢ of £218.1￿ mikon. arwj nolicjnal assets (estimated future contributitsns logether with the rK>lional investsrenls at the valuaknun date) of £196,100 million giving a notional past Service deficit of £22.OLKI mthion an employer conlribution o)Trection cost of 7.3% of pensionable pay w¢U be applied to fthur8 valuations the assurned real rate of relum is 2.8% in excess of and 2% in excess of earnings. The rate of real earnings growth is assumed to be 2.2%. The assumed nominal rale of retum is 4.45%. The TPS v31uatK>n for 2016 detemiine$ an employer rate of 23.68%. whth was P8y8ble from September 2019. The employer pewons c4)sts paid to TPS in the year anN)untad to £99.234 (2021". £102,724}. A copy of the ValualK￿ report 5UPP(Mting dcKwmentstion 15 on the Teathews, Pension web$ite. Under definitions set out in FRS102. the TPS Is an unfunded MU￿￿eMploYer pension scheme. The School has accounted for its conlributions lo the $d￿me as if rt were a (￿f￿e{l ¢on1ribution scheme. The School also make5 contribulKJns to personal ￿slon plans for non-teathing staff. The total cost of these contributions was £8,Tt112021'. £7,949). -21- CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 19 D•signated funds The income funds of the charity indude the fol(Ming designated funds vthith have been set aside out Df unrestricled funds by the trustees for specJhc purFrf)5es.' Movement In funds 31 Aygust 2022 Sile development fijnd Personal donations fund General funds 43.200 20,000 18.1S21 111,8481 1,158,462 63.200 3,877 {771> 1.CMJ).201 1.615,574 (1,445.4651 1.048.447 1.619.451 {1,446,2361 1,221,682 Comparative infomi81ion in respect ofthe preceding period 1$ as folw: Movemènt in funds Balancè ai Inc+)mlng Rtrstsurt•s Twsf•ts B¥lan¢¥ at 1 Seplernber rgsourc•s •KpwMl8d 31 August 2021 2022 Site dèvèk)pmenl fvnd Personal donalions fund Gen8ral futMIs 43,2(XJ 5.196 257 (40n 913.182 1.427.426 (1,340.407) 43.2C 5,045 1.iX)0.201 1,048.447 1.427.6B3 {1,340,814} 1.tM8,447 20 Operating leasè commltmènts At the reports'ng end dale the tharity had outstandwy ojmmitments for future minimum lease payments under non-cancall8bk operatirvJ leases, which fall due as folw: 2022 2021 Wrthin one year Between two and five years 7,308 10,466 7,100 19,615 17,774 26.715 CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 21 Related party transactions Trustees whose children attend the pay fees al the saffle rate as any other parent. In addition thè sthool engaged the servKes of J & S Parirwship. a twwnes$ in vA)Kh the Trustee J P Burns has a material interest. to ￿)nStme1 a conservatory. The transa¢Aion was at arms. length and amounted lo £167.400. The work was awarded to J & S P8rtnership. folhjwing a formal lender wocess. 22 Cash generat•d from 0￿ratiOnS 2022 2021 Surplus for the year 173.215 86,869 Adjustments for. Inveslrnent income Tecognised in statem8nt offinan(i81 athitss Depreciation and impairmenl of tangible fued assets (761 45.976 45,264 Movements in working capit￿-. Decrease in stocks {Increase} in debtors Increase in ¢redilors Incrèase in defetrèd in￿rne 178 168,7461 6.280 99.502 110.055) 38,239 52,013 Cash generat•d Irom operntions 255,671 213,009 23 Analysis of changes in net funds At 1 S•ptwnber ¢a5h flows At 31 August 2022 Cash al bank and in hand 431,527 {35.424) 396,103 Loan5 faling due wilhin ono year Loan5 falling du& after more than one year (114,8621 (117,7941 202 112,951 (114,660} 14,843) 198,871 77,729 276.6 ## **Audit Findings Memorandum for Carleton House Preparatory School** Year ended 31 August 2022 24 May 2023 **Helen Furlong** Audit Director T +44 (0)151 647 9581 E helen@mclintocks.co.uk **Debbie Craig** Audit Manager T +44 (0)151 647 9581 E debbie.craig@mclintocks.co.uk www.mclintocks.co.uk www.xeinadin.com **Ryan Booth** Audit Senior T +44 (0)151 647 9581 E ryan.booth@mclintocks.co.uk The Trustees/Board of Directors Carleton House Preparatory School 145 Menlove Avenue Liverpool Merseyside L18 3EE 24[nd] May 2023 Dear Sirs The purpose of this Audit Findings Memorandum is to highlight the key findings arising from the audit of Carleton House Preparatory School for the year ended 31 August 2022, as required by International Standard on Auditing (UK) 260. This report relates only to those matters which came to our attention during our normal audit procedures which are designed for the purpose of expressing our opinion on the financial statements. Our audit is not designed to test all internal controls or identify all areas of control weakness. However, where, as part of our testing, control weaknesses have been identified, we have included these in this report to you. The audit of the financial statements does not relieve management or those charged with governance of their responsibilities for the preparation of the financial statements. This report has been prepared solely for your use and should not be quoted in whole or in part without our prior written consent. We do not accept any responsibility for any loss occasioned to any third party acting, or refraining from acting on the basis of the content of this report, as this report was not prepared for, nor intended for, any other purpose. We would like to take this opportunity to record our appreciation for the kind assistance provided by the finance team and other staff during the course of our audit. Yours faithfully **Helen Furlong FCCA Xeinadin Audit Limited** © 2023 Xeinadin Audit Limited | Audit Findings Memorandum | Strictly Private and Confidential ## **Section** ## **Page** |1.|Status of the audit and our audit opinion|**3**| |---|---|---| |2.|Audit findings – risks identified at the planning stage|**4**| |3.|Key audit estimates|**6**| |4.|Other communication requirements|**7**| |5.|Design and operating effectiveness of controls|**8**| |6.|Summary of audit adjustments|**10**| |7.|Other matters|**11**| © 2023 Xeinadin Audit Limited | Audit Findings Memorandum | Strictly Private and Confidential ## **Section 1 :** Status of the audit and our audit opinion ## **Matters outstanding** ## **Completion and submission timetable** ## Matter still outstanding are: - Signed letter of representation - Signed accounts ## **Audit opinion** Our work is complete. No issues have arisen to date which required us to modify our audit report. |**Event**|**Date**| |---|---| |Audit clearance meeting|22nd May 2023| |Board meeting to approve financial statements|22nd May 2023| |Audit report approval|24st May 2023| Our audit opinion therefore for the period ended 31[st] August 2022 is unmodified. **3** © 2023 Xeinadin Audit Limited | Audit Findings Memorandum | Strictly Private and Confidential ## **Section 2:** Audit finding – risks identified at the planning stage |**Audit risk identified**|**Level of risk**|**Audit approach**|**Audit findings**| |---|---|---|---| |**Incompleteness of cash**
**income, incorporating**
**fraud risk -**Although all
possible controls have
been put in place to
eliminate this as much as
is physically possible,
there is always a risk by
nature of incompleteness
of cash income.|Medium|We undertook the following audit procedures in
relation to cash income:

Review controls in place & suggest any possible
improvements

Be aware of the possibility of incompleteness when
testing areas with cash income

Review for any significant fluctuations with previous
year

Enquire of any irregularities during the year under
review & based on findings audit testing will be
expanded if considered necessary|
No significant fluctuations with previous year to report.

We did not encounter any irregularities.

No other exceptions to report.| |**Related party**
**transactions –**Under ISA
550 there is a risk that
related parties
transactions are not
appropriately recorded or
disclosed|High|We undertook the following audit procedures in relation
to related parties transactions:

Based on review of pecuniary interests
declarations of trustees & key management
personnel, along with further appropriate audit
procedures, a list will be complied of all identified
related parties & the nature of the relationship with
them.

Review note in financial statements for
completeness and accuracy of presentation

Ensure transactions outside the normal scope of
business are appropriately treated and reported

Assess whether related party transactions are
performed at arms length

Be vigilant to identify any possible related party
transactions as part of our audit testing.|

Any conflicts of interests are declared at board meetings with annual
register of trustees and key management personnel other business
interests is updated and maintained.

Related party transactions appear to have been appropriately
performed at arms length.

Disclosures within the financial statements appear to be appropriate.| **4** © 2023 Xeinadin Audit Limited | Audit Findings Memorandum | Strictly Private and Confidential ## **Section 2:** Audit finding – risks identified at the planning stage |**Audit risk identified**|**Level of risk**|**Audit approach**|**Audit findings**| |---|---|---|---| |**Income and expenditure**
**transactions -**As this is
our first year auditing the
entity there is a
presumed increased
inherent, control and
detection risk.|Medium|We undertook the following audit procedures in relation
to income and expenditure transactions.

Reviewed controls in place, identifying any
weaknesses and suggest any possible
improvements.

Our usual audit tests will be performed, however
our sample size will be increased in order to obtain
adequate audit comfort|
We See section 5 for recommendations for possible improvements to
controls in place.

No issues to report based on sample tested.

No irregularities were reported to ourselves in relation to the year
under review.| |**Management override -**
Under ISA 240 there is a
presumed risk that
management over-ride
of controls is present|High|We undertook the following audit procedures in relation
to management override:

Reviewed accounting estimates, judgements and
decisions made by management

Performed testing of a sample of journal entries

Reviewed controls around journals

Reviewed unusual significant transactions|
Accounting estimates, judgements and decisions by management
appear reasonable and in line with expectations.

No issues to report on journal entries.

We have reviewed the controls in place for the posting and
authorising of journals.

Reviewed a sample of journals posted at the end of the year with no
exceptions to report.

No exceptions to report.| |**Accounting estimates:**
**Deferred Income –**By
nature deferred income is
considered medium risk.|Medium|We undertook the following audit procedures in relation
to deferred income:

Reviewed accounting estimates, judgements and
decisions made by management

We reviewed the basis for deferring income &
ensured that this is valid, complete and has been
correctly & consistently recorded in accordance
with in SORP|
Accounting estimates, judgements and decisions by management
appear reasonable and in line with expectations.

Based on our audit testing we are satisfied that the basis for deferring
income is valid, complete and has been correctly and consistently
recorded in accordance with the SORP.| **5** © 2023 Xeinadin Audit Limited | Audit Findings Memorandum | Strictly Private and Confidential ## **Section 3:** Key audit estimates |**Accounting estimate**|**Audit approach**|**Audit findings and impact on financial statements**| |---|---|---| |Depreciation rates|Depreciation proof in total testing. Where this results
in a significant variance, recalculations of individual
asset depreciation charges has been performed|No issues noted. Depreciation charges appear to be reasonable and are in
line with the accounting policy.
The policy is appropriately disclosed in the financial statements.| |Prepayments & accrued
income|Where appropriate substantive testing has been
performed on prepayments & accrued income
alongside an analytical review against those held in
previous years.|No issues noted, prepayments & accrued income appear reasonable and are
in line with our expectations.| |Accruals & deferred
income|Where appropriate substantive testing has been
performed on accruals & deferred income alongside
an analytical review against those held in previous
years.|No issues noted, accruals & deferred appear reasonable and are in line with
our expectations.| **6** © 2023 Xeinadin Audit Limited | Audit Findings Memorandum | Strictly Private and Confidential ## **Section 4:** Other communication requirements |**Audit approach**|**Audit findings and impact on financial statements**| |---|---| |**Accounting policies**|We have reviewed the accounting policies, particularly those involving any key judgements and have no matters to bring to
your attention.| |**Laws and regulations**|We have not identified any significant matters of non-compliance with laws and regulations.| |**Matters in relation to fraud**|We have previously discussed the risk of fraud with management and we have not been made aware of any incidents in the
period. No issues have been identified during the course of our audit procedures.| |**Written representations**|See letters of representation for specific representations for the purpose of our audit.| |**Financial statement disclosures**|Disclosures in the financial statements appear appropriate and in line with Charities SORP (FRS 102).| |**Related parties**|We have not identified any instances of previously undisclosed related parties.| **7** © 2023 Xeinadin Audit Limited | Audit Findings Memorandum | Strictly Private and Confidential ## **Section 5:** Design and operating effectiveness control ## _Risk Assessment_ During our audit we considered the internal controls relevant to the preparation of the financial statements in order to design appropriate audit procedures, but not for the purpose of expressing an audit opinion on their effectiveness.  _Low risk – improvements can be made but the matter is not considered fundamental_ The matters reported below are limited to those deficiencies identified during the course of our audit and that we consider to have sufficient importance to merit being reported to you in accordance with ISA 265 .  _Moderate risk – the matter is considered to be significant and should be addressed within the next 3-6 months_  _High risk – the matter is considered to be fundamental and should be actioned by management as soon as possible_ ## **Current period recommendations (2022)** |**Risk**
**assessment**|**Observation**|**Recommendations**|**Management’s response**| |---|---|---|---| ||It was found that a large amount of
assets included in the fixed asset register
were historic and either no longer owned
or no longer in use by the school.|In addition to an annual impairment an
annual review should be done, with any
assets no longer in use or owned to be
removed from the accounting records.|| ||Some expenditure samples purchase
invoices were not authorised.|All purchase invoices should be correctly
authorised in line with policies and
procedures in place.|| **8** © 2023 Xeinadin Audit Limited | Audit Findings Memorandum | Strictly Private and Confidential ## **Section 5:** Design and operating effectiveness control ## **Current period recommendations (2022)** |**Risk**
**assessment**|**Observation**|**Recommendations**|**Management’s response**| |---|---|---|---| ||No evidence of authorisation was found
on the BACS report/export for expenditure
sample payments.|All BACS reports/exports need to be
authorised prior to payments being
released.|| ||Bookkeeping invoice was paid out of
petty cash rather than BACS.|A monetary limit should be placed on the
amount which can be paid from petty cash,
anything over that limit would not be
considered ‘petty’ and therefore be paid by
BACS.|| ||No fully implemented financial
procedures handbook.|Financial procedures handbook to be
implemented and then subsequently
reviewed annually to ascertain whether
procedures in place are still applicable and
appropriate for the charity. Any review
should be evidenced.|| ||Credit balance brought forward from
prior 2 years ago relating to nursery early
years funding from Liverpool City Council.|This will need to be investigated further in
case of any potential repayment to
Liverpool City Council.|| **9** © 2023 Xeinadin Audit Limited | Audit Findings Memorandum | Strictly Private and Confidential ## **Section 6:** Summary of audit adjustments ## Below we present the following: **Adjusted misstatements** – these are adjustments identified during the course of the audit which have been processed through the financial statements following agreement with management and those charged with governance ## **No adjusted misstatements found** **Unadjusted misstatements** – these are potential adjustments identified during the course of our audit work which are not significant for adjustment. |**Journal**
**reference**|**Details**|**Balance Sheet**|**Balance Sheet**|**Income and Expenditure**|**Income and Expenditure**|**Surplus/(Deficit)**
**effect (£)**| |---|---|---|---|---|---|---| |||**Dr**|**Cr**|**Dr**|**Cr**|| ||**Surplus/(Deficit) per final financial statements**|||||**173,215**| |**1**|Dr Accruals
Cr Accountancy/Audit Fees
_Being: Audit accrual in excess of the requirement_|19,253|||19,253|19,253| ||**Surplus/(Deficit) if unadjusted journals were posted**|||||**192,468**| **10** © 2023 Xeinadin Audit Limited | Audit Findings Memorandum | Strictly Private and Confidential ## **Section 7:** Other matters ## **Going concern** Management has confirmed their assessment that the entity is expected to continue for a period greater than twelve months from the date of signing these financial statements. ## **Quality of service** We take the quality of our audits extremely seriously and it is our priority to provide you with a high quality service and to develop a successful, long-term working relationship. We welcome and are grateful to receive any comments you or any member of your team might have. ## **Independence and ethics** We can confirm that there are no significant facts or matters that impact our independence as auditors that we are required or wish to draw to your attention. We have fully complied with the Financial Reporting Council’s Ethical Standards and confirm we are independent and are able to express an objective opinion on the financial statements. ## **Respective responsibilities** As auditors, we are responsible for performing the audit in accordance with ISA’s (UK), which is directed towards forming and expressing an opinion on the financial statements that have been prepared by management with the oversight of those charged with governance. The audit does not relieve management or those charged with governance of their responsibilities. **11** © 2023 Xeinadin Audit Limited | Audit Findings Memorandum | Strictly Private and Confidential