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2020-08-31-accounts

Page
Reference and administrative details
Report to the Trustees' 2-21
Independent
Auditors'
report		 22-24
Statement
offinancial
activities		 25
Balance sheet 26
Statement
ofcash flows		 27
Notes to the financial
statements		 28-51

Trustees: Mr JJowett
Ms A Curran
Mr D Arthur
Ms SJopling
Dr M Gibson
Mr D Kent
Ms A Russell
Ms A Woods
Dr N Spencer (resigned 28 February 2020)
Ms LCharles-Jones
Mr A Chadda (resigned 28 February 2020)
Ms S Fitzpatrick
Mr T Frazer
Ms A Moore
Mr P Foreman (appointed 30 December 2019)
Company number: 01855026
Charity number: 515943
Registered office: Hampeth
Lodge, Station		 Road, Newcastle upon Tyne, NE12 8YY
Company secretary: Tara Allen
Senior management team:
Chief Executive Officer Carole Harder
Headteacher —Percy Hedley School Katie Murray
Headteacher —Northern Counties
School Jo Allen
College Principal Joanne Rees-Proud
Director of Resources Tara Allen
Director of Business Development,
Quality 8 Performance Alison Williams
Auditors: Haines Watts, 17Queens Lane, Newcastle upon Tyne, NE1 1RN
Bankers: Barclays Bank Pic, 5StAnn's Street, Newcastle upon Tyne, NE1 3DX
Solicitors: Womble Bond Dickinson (UK) LLP
St Ann's Wharf, 112Quayside, Newcastle upon Tyne, NE1 3DX

Unrestricted Unrestricted
General Designated Restricted Total Total
Fund Fund Funds 2020 2019
Notes f000 f000 f000 f000 f000
Income from:
Donations
and legacies		 455 71 69 595 255
Charitable
activities		 31,093 167 31,260 29,507
Fundraising
activities		 83 83 178
Investments 36 36 65
Total income 31,667 71 236 31,974 30,005
Expenditure
on:
Raising funds
Investment
management		 costs 19 19 11
Costs of generating fundraising 213 213 184
Charitable
activities		 30,034 33 123 30,190 28,576
Total expenditure 30,266 123 30,422 28,771
Net gain on investment 70 70 53
Net income before transfers 1,471 38 113 1,622 1,287
Transfers
between		 funds 18 (605 ) 646 (41 )
Net income before other
recognised
gains		 and losses 866 684 72 1,622 1,287
Actuarial
gains/(losses)		 on defined
benefit pension schemes 22 515 515 (3,915 )
Net movement
in funds		 1,381 684 72 2 137 (2,628 )
Reconciliation
offunds:
Total funds brought forward 7,513 690 202 8,405 11,033
Total funds carried forward 8,894 1,374 274 10,542 8,405

Notes 2020 2019
OOOO f000 OOOO f000
Fixed assets
Tangible assets 12 16,653 16,320
Investments 13 2,455 1,568
19,108 17,888
Current assets
Debtors 14 1,387 3,583
Cash at bank and in hand 8,278 4,886
9,665 8,469
Creditors: amounts falling
due within one year (3,754 ) (2,691 )
Net current assets 5,911 5,778
Total assets less current liabilities 25,019 23,666
Creditors: amounts falling due after
more than one year 16 (2,884 ) (3,153 )
Net assets excluding pension
scheme liabilities 22,135 20,513
Defined benefit pension scheme liability 22 (11,593 ) (12,108 )
10,542 8,405
Charity Funds
Restricted funds 18 274 202
Unrestricted
funds		 18 20,487 19,621
Pension reserve (11,593 ) (12,108 )
Designated
funds		 1,374 690
Total unrestricted
funds		 10,268 8,203
Total funds 10,542 8,405

Notes
2020 2019
f000 f000
Cash flows from operating activities:
Net cash provided
by operating
activities		 20 5,688 3,330
Cash flows from investing activities:
Dividends
and interest		 36 51
Purchase oftangible fixed assets
Purchase offixed asset investments
Proceeds from sale offixed asset investments		 ( 1,391 )
(1,096 )
365		 ( 944 )
(1,165 )
223
Net cash used in investing activities (2,086 ) (1,835 )
Cash flows from financing activities:
Repayments
of borrowings
Loan interest		 (77 )
(54 )		 (141 )
(55 )
Net cash provided
by financing
activities		 (131 ) (196)
Change
in cash and cash		 equivalents in the year 3,471 1,299
Cash and cash equivalents brought
forward		 4,981 3,682
Cash and cash equivalents carried forward 8,452 4,981
Cash and cash equivalents consist of:
Gash at bank and
in hand
Current account (12 )
Deposit account 8,269 4,887
Funds held with investment
managers		 174 95
Petty cash 9 11
8,452 4,981

3. Fundraising Fundraising Fundraising activities
Unrestricted Restricted Total Total
funds funds 2020 2019
f000 f000 f000 f000
Fundraising events 83 83 178
4. Investmeni income
Unrestricted Restricted Total Total
funds funds 2020 2019
f000 f000 f000 f000
Interest from cash held on deposit 25
Dividends 36 36 26
Other interest 14
36 36 65
5. Income from charitable activities
Unrestricted Restricted Total Total
funds funds 2020 2019
f000 f000 f000 f000
Education 17,546 167 17,713 15,291
Adult day services 4,021 4,021 4,465
Adult residential 5,354 5,354 5,468
Children's residential 4,172 4,172 4,283
31,093 167 31,260 29,507
6. Analysis ofexpenditure by activities
Activities
undertaken Support Total Total
directly costs 2020 2019
f000 f000 f000 f000
Education 14,678 1,172 15,850 14,818
Adult day services 4,082 320 4,402 4,437
Adult residential 5,048 413 5,461 5,225
Children's residential 4,157 320 4,477 4,096
27,965 2,225 30,190 28,576

7. Support costs Support costs Support costs
Education Adult Day Adult Children' s Total Total
Services Residential Residential 2020 2019
OOOO f000 f000 f000 f000 f000
Staff costs 1,001 273 354 273 1,901 1,765
Professional costs 63
Other direct costs 44 12 15 12 83 36
Facilities cost 12 3 4 3 22 25
ITcosts 60 16 21 16 113 86
Maintenance costs 4 1 1 2 8
Depreciation 52 14 18 14 98 169
Interest 25
1,173 319 413 320 2,225 2,169
8. Governance costs
Included
within support		 costs above are governance costs as follows:
2020 2019
f000 f000
Audit fees 14 14
Legal fees 23 27
37 41
9. Net income before transfers
This is stated after charging:
2020 2019
f000 f000
Depreciation oftangible fixed assets:
-owned
by the charity		 1,059 1,273
Interest payable 54 55
10. Auditors
remuneration
2020 2019
f000 f000
Fees payable to the company's auditor and its associates
for the audit ofthe company's annual accounts
Audit ofthe charitable company 12 12
Audit ofthe pension scheme 3 3
Other 1 1

11. Analysis ofstaff costs, trustee remuneration and expenses, and the cost of key management
personnel
2020 2019
OOOO f000
Wages and salaries 21,363 20,352
Social security costs 1,454 1,393
Other pension costs 2,232 1,606
25,049 23,351
2020 2019
No. No.
Operational staff 1,023 1,032
Admin and support 112 76
Management 3 4
1,138 1,112
Average headcount expressed as a full time equivalent:
2020 2019
No. No.
Full time equivalent- all employees 989 1,029
The number of higher paid employees were:
2020 2019
No. No.
In the band F60,001 - F70,000 2 1
In the band 670,001 - F80,000 1 4
In the band f80,001 —F90,000 1
In the band 290,001 - F100,000 1
In the band f100,001 - F110,000
In the bank F110,001 - 2120,000
In the band F120,001 - 8130,000

12. Tangible fixed assets
Long term
Freehold leasehold Motor Fixtures &
property property vehicles fittings Equipment Total
ROOD ROOD ROOD ROOD ROOD ROOD
Cost
At 1 September 2019 8,452 12,706 280 1,022 1,806 24,266
Additions 1,040 26 151 175 1,392
At 31 August 2020 9,492 12,706 306 1,173 1,981 25,658
Depreciation
At 1 September 2019 3,540 1,974 241 711 1,480 7,946
Charge for year 499 155 31 165 209 1,059
At 31 August 2020 4,039 2,129 272 876 1,689 9,006
Net book value
At 31 August 2020 5,453 10,577 34 297 292 16,653
At 31 August 2019 4,911 10,732 310 327 16,320
13. Fixed assets investments
2020 2019
Listed investments 2,281 1,473
Cash held with investment managers 174 95
2,455 1,568
Market value at 1 September 2019 1,473
Additions
to investments		 at cost 1,095
Disposals at carrying value ( 365 )
Revaluation
ofinvestments		 to market value 78
Market value at 31 August 2020 2,281
Historical cost 2,203

Debtors
2020 2019
f000 f000
Trade debtors 2,908 5,138
Bad debt provision (2,087 ) (1,952 )
Other debtors 15 5
Prepayments
and		 accrued income 551 392
1,387 3,583
Creditors: amounts falling due within one year
2020 2019
f000 f000
Bank loans 203 162
Trade creditors 670 479
Other taxation and social security 352 367
LGSS pension scheme deficit 44 50
Other creditors 224 210
Accruals and deferred income 2,261 1,423
3,754 2,691
Deferred income
Deferred income comprises fee income relating to future periods:
OOOO
Balance at 1 September 2019 575
Amounts
released		 to income earned from charitable activities (575 )
Amounts
deferred		 in the year 585
Balance at 31 August 2020 585

2020 2019
OOOO f000
Bank loans 2,102 2,220
LGSS pension scheme deficit 782 933
2,884 3,153
Creditors include amounts not wholly repayable within 5years as follows:
2020 2019
OOOO f000
LGSS pe nsion scheme deficit 782 933

Bank loa ns d ue a fter one year are repayable as follows:
2020 2019
f000 OOOO
Between one and two years 203 162
Between two and five years 2,102 2,058

Financial instruments
2020 2019
f000 f000
Measured at fair value through
net income		 2,455 1,568
Financial assets measured at amortised cost 9,114 8,077
Financial liabilities measures at amortised cost (5,122 ) (3,919 )

Balance Balance
At 1 September Transfers Gains/ At 31 August
2019 Income Expenditure in/out (losses) 2020
f000 OOOO f000 f000 OOOO f000
Unrestricted
funds
General funds 19,621 31,667 (30,266 ) (605 ) 70 20,487
Pension reserve ( 12,108 ) 515 (11,593 )
7,513 31,667 (30,266 ) (605 ) 585 8,894
Designated
funds
Education 61 31 (10 ) (4) 78
Adult Day Services 16 17 (15) 18
Adult Residential
Children's
Residential		 9
4		 2
10		 (2)
(6)		 9
8
Central Services 11 11
Maintenance
fund		 300 200 500
Strategic Development fund 300 200 500
Recovery Plan PHS fund 250 250
690 71 (33 ) 646 1,374
Total unrestricted funds 8,203 31,738 ( 30,299 ) 41 585 10,268
Restricted funds
Education 191 207 (123) (9) 266
Adult Day Services 11 29 (32 ) 8
202 236 ( 123 ) (41 ) 274
Total offunds 8,405 31,974 ( 30,422 ) 585 10,542

Balance Balance
At 1 September Transfers Gainsl At 31 August
2018 Income Expenditure in/out (losses) 2019
f000 f000 f000 f000 f000 OOOO
Unrestricted
funds
General funds 18,927 29,595 ( 28,421 ) (533 ) 53 19,621
Pension reserve (8,193 ) (3,915 ) ( 12,108 )
10,734 29,595 (28,421 ) (533 ) (3,862 ) 7,513
Designated
funds
Education
Adult Day Services
Adult Residential
Children's
Residential		 40
8
5
2		 55
11
8
5		 (34 )
(3)
(2)
(3)		 (2) 61
16
9
4
Maintenance
fund		 300 300
Strategic development fund 300 300
55 79 (42 ) 598 690
Total unrestricted funds 10,789 29,674 ( 28,463 ) 65 ( 3,862 ) 8,203
Restricted funds
Education 201 269 (214 ) (65 ) 191
Adult Day Services 17 23 (29 ) 11
Children's
Residential		 26 (26 )
244 292 (269 ) (65 ) 202
Total offunds 11,033 29,966 ( 28,732 ) (3,862 ) 8,405

For the
ear ended 31Au ust 2020
Unrestricted Restncted Total
funds funds funds
f000 f000 f000
Tangible fixed assets 16,653 16,653
Fixed asset investments 2,455 2,455
Current assets 9,391 274 9,665
Creditors due within one year (3,754 ) (3,754 )
Creditors due in more than one year (2,884 ) (2,884 )
Provisions for liabilities and charges (11,593 ) (11,593 )
10,268 274 10,542
Unrestricted Restricted Total
funds funds funds
8000 'ZOOO f000
Tangible fixed assets 16,320 16,320
Fixed asset investments 1,568 1,568
Current assets 8,267 202 8,469
Creditors due within one year (2,691 ) (2,691 )
Creditors due in more than one year ( 3,153 ) (3,153)
Provisions for liabilities and charges (12,108 ) (12,108 )
8,203 202 8,405

2020 2019
OOOO OOOO
Net income/(deficit) for the year (as per Statement of Financial Activities) 2,137 ( 2,628 )
Adjustment
for:
Depreciation
charges		 1,059 1,273
Interest payable 54 55
Interest from investments (36) (51 )
Pension
provision		 adjustment (515) 3,915
Unrealised
gain
Decrease
in debtors		 (75 )
2,196		 (53 )
1,107
Increase/(decrease) in creditors 868 (288 )
Net cash provided by operating activities 5,688 3,330

Analy sis ofchanges
in net debt
At 1 Sep Cash At 31 Aug
2019 flows 2020
f000 OOOO f000
Long term borrowings (2,220 ) 118 ( 2,102 )
Short term borrowings (162 ) (41 ) (203 )
Total liabilities (2,382 ) 77 ( 2,305 )
Cash and cash equivalents 4,981 3,471 8,452
2,599 3,548 6,147

The disclosures
below are		 provided
in respect of Percy Hedley Pension Sche		 me ("the Scheme").
The total cost recognised in the period was as follows:
2020 2019
F'000 E'000
Current service cost (345 ) (493 )
Past service cost 2,447
Net interest ( 235 ) ( 193 )
Total cost recognised ( 580 ) 1,761
The amounts
recognised		 in the balance sheet are as follows:
2020 2019
f'000 8'000
Fair value ofscheme liabilities (34,849 ) (33,569 )
Fair value ofscheme assets 23,256 21,461
Deficit in the scheme ( 11,593 ) ( 12,108 )

Change
in t		 he pres ent val ue ofthe defined benefit obligation
2020 2019
6'000 K'000
Opening
defined
benefit obligation		 33,569 29,292
Current service cost 345 493
Past service cost (2,447 )
Interest cost 669 779
Contributions to scheme participants 117 118
Actuarial
(gain)/loss		 arising on the scheme liabilities 870 6,456
Benefits paid (721 ) (1,112 )
Liabilities
in scheme		 at end ofthe year 34,849 33,569
Change
in the fair value ofscheme assets
2020 2019
E'000 R'000
Opening
fair		 value ofscheme assets 21,461 21,089
Interest income 434 586
Actual return assets 859 115
Contributions by employer 1,106 665
Contributions to scheme participants 117 118
Benefits paid (721 ) (1,112 )
Total market value ofassets 23,256 21,461
Major categories of scheme assets as a percentage oftotal assets
2020 2019
0/ 0/
Equities 96.9 98.5
Other (incl cash and net current assets) 3.1 1.5

The return on plan assets was as follows:
2020 2019
K'000 R'000
Interest income 434 586
Actual return assets 859 115
Total return on plan assets 1,293 701

Principal
actuarial		 assumptions
at the balance sheet		 date
As at As at
31 August 31August
2020 2019
0/ '/o
Discount rate 1.80 2.00
Salary increases 0.00 0.00
Inflation assumption (RPI) 3.35 3.50
Inflation assumption (CPI) 2.35 2.50
The mor tali ty assumptio ns
us		 ed for longevity
(in years) on r		 etirement
at age 65are:
As at As at
31 August 31August
2020 2019
years years
Retiring at the balance sheet date
—males 21.5 21.4
—females 23.5 23.3
Retiring in 20 years
—males 22.8 22.7
—females 24.9 24.8

2019
f000
Amounts payable:
Within 1 year 37 124
Between 1 and 5years 92 92
After more than 5years 409 424
Total 539 640

Unrestricted Restricted Total Total
Fund Funds 2019 2018
Notes OOOO FOOO OOOO 8.000
Income from:
Donations
and legacies
Charitable
activities
Fundraising
activities
Investments		 146
29,324
178
65		 109
183		 255
29,507
178
65		 508
28,170
219
14
Total income 29,713 292 30,005 28,911
Expenditure
on:
Raising funds
Investment
management
costs
Costs of generating
fundraising
Charitable
activities		 11
184
28,307		 269 11
184
28,576		 218
28,066
Total expenditure 28,502 269 28,771 28,284
Net gain on investment 53 53
Net income before transfers 1,264 23 1,287 627
Transfers
between
funds		 65 (65 )
Net income/(expenditure) before
other recognised
gains		 and losses 1,329 (42 ) 1,287 627
Actuarial
gains/losses
on defined
benefit pension schemes 22 (3,915) (3,915 ) 83
Net movement
in funds		 (2,586 ) (42 ) (2,628 ) 710
Reconciliation
offunds:
Total funds brought
forward		 10,789 244 11,033 10,323
Total funds carried forward 8,203 202 8,405 11,033