## ## ## |||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|