## |||Page| |---|---|---| |Reference and administrative|details|| |Report to the Trustees'||2-20| |Independent
Auditors'
report||21 -24| |Statement
of financial
activities||25| |Balance sheet||26| |Statement
of cash flows||27| |Notes to the financial
statements||28- 51| ## ## |Trustees:|Trustees:||||Mr JJowett|||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| ||||||Ms A Curran|||||||||| ||||||Mr D Arthur|||||||||| ||||||Ms SJopling|||||||||| ||||||Dr M Gibson|||||||||| ||||||Mr D Kent|||||||||| ||||||Ms A Russell|||||||||| ||||||Ms A Woods|||||||||| ||||||Ms L Charles-Jones|||||||||| ||||||Ms S Fitzpatrick||||(resigned|30/07/2021)||||| ||||||Mr T Frazer|||||||||| ||||||Ms A Moore|||(resigned||26/01/2021)||||| ||||||Mr P Foreman|||||||||| ||||||Ms L Phillipson|||(appointed||29/06/2021)||||| ||||||Mr BSnaith|||(appointed||08/06/2021)||||| ||||||Mr EWeir|||(appointed||26/01/2021)||||| |Company||number:|||01855026|||||||||| |Charity|number:||||515943|||||||||| |Registered||office:|||Hampeth
Lodge, Station|||Road, Newcastle|||upon|Tyne, NE12 8YY||| |Company||secretary:|||Tara Allen|||(resigned||30/09/2021)||||| ||||||Lynsey Dawson|||(appointed||01/10/2021)||||| |Senior|management||team:|||||||||||| |Interim|Chief Executive|||Officer|D'Arcy Myers|||||||||| |Headteacher —Percy|||Hedley School||John Steward|||||||||| |Headteacher —Northern||||Counties||||||||||| |School|||||Jo Allen|||||||||| |College|Principal||||Joanne Rees-Proud|||||||||| |Director|of|Resources|||Tara Allen|||||||||| |Director|of|Business|Development,|||||||||||| |Quality|&|Performance|||Alison Williams|||||||||| |Director|of|Residential|Services||Lisa Deane|||||||||| |Auditors:|||||Haines
Watts|North|East Audit LLP,|||17|Queens||Lane, Newcastle|upon| |Tyne, NE1||1RN||||||||||||| |Bankers:|||||Barclays Bank|Plc, 5|St|Ann'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|2021|2020| ||||Notes|f000|OOOO|f000|f000|f000| |Income from:||||||||| |Donations
and legacies||||179|175|36|390|595| |Charitable
activities||||31,245||250|31,495|31,260| |Fundraising
activities||||66|||66|83| |Investments||||41|||41|36| |Total income||||31,531|175|286|31,992|31,974| |Expenditure
on:||||||||| |Raising funds||||||||| |Investment
management||costs||30|||30|19| |Costs of generating|fundraising|||125|||125|213| |Charitable
activities||||30,355|411|196|30,962|30,190| |Total expenditure||||30,510|411|196|31,117|30,422| |Net gain on investment||||385|||385|70| |Net income before|transfers|||1,406|(236 )|90|1,260|1,622| |Transfers
between
funds|||18|(587 )|590|(3)||| |Net income before|other|||||||| |recognised
gains|and losses|||819|354|87|1,260|1,622| |Actuarial
gains/(losses)
on||defined||||||| |benefit pension schemes|||22|2,207|||2,207|515| |Net movement
in funds||||3,026|354|87|3,467|2,137| |Reconciliation
offunds:||||||||| |Total funds brought|forward|||8,894|1,374|274|10,542|8,405| |Total funds carried|forward|||11,920|1,728|361|14,009|10,542| ## ## ||||||Notes||2021||2020| |---|---|---|---|---|---|---|---|---|---| |||||||f000|OOOO|f000|f000| |Fixed assets|||||||||| |Tangible assets|||||12||16,693||16,653| |Investments|||||13||3,360||2,455| ||||||||20,053||19,108| |Current assets|||||||||| |Debtors|||||14|2,105||1,387|| |Cash at bank and|in|hand||||8,204||8,278|| |||||||10,309||9,665|| |Creditors:
amounts||falling|||||||| |due within one year|||||15|( 4,228 )||(3,754 )|| |Net current assets|||||||6,081||5,911| |Total assets less|current liabilities||||||26,134||25,019| |Creditors:
amounts||falling due||after|||||| |more than one year|||||16||(2,739 )||( 2,884 )| |Net assets excluding|||pension||||||| |scheme liabilities|||||||23,395||22,135| |Defined
benefit pension|||scheme|liability|22||( 9,386 )||( 11,593 )| ||||||||14,009||10,542| |Charity Funds|||||||||| |Restricted
funds|||||18||361||274| |Unrestricted
funds|||||18|21,306||20,487|| |Pension
reserve||||||( 9,386 )||( 11,593 )|| |Designated
funds||||||1,728||1,374|| |Total unrestricted|funds||||||13,648||10,268| |Total funds|||||||14,009||10,542| ## ## ## ## ||||Notes||| |---|---|---|---|---|---| |||||2021|2020| |||||OOOO|f000| |Cash flows from operating|activities:||||| |Net cash provided
by operating
activities|||20|1,632|5,688| |Cash flows from investing|activities:||||| |Dividends
and interest||||41|36| |Purchase
of tangible fixed assets
Purchase
of fixed asset investments
Proceeds from sale of fixed asset investments||||(1,097 )
(850 )
269|(1,391 )
(1,096 )
365| |Net cash used in investing|activities|||(1,637 )|(2,086 )| |Cash flows from financing|activities:||||| |Repayments
of borrowings||||( 101 )|(77 )| |Loan interest||||(27)|(54 )| |Net cash provided
by financing
activities||||( 128 )|( 131 )| |Change
in cash and cash|equivalents|in the year||( 133 )|3,471| |Cash and cash equivalents|brought
forward|||8,452|4,981| |Cash and cash equivalents|carried forward|||8,319|8,452| |Cash and cash equivalents|consist of:||||| |Cash at bank and
in hand|||||| |Current account|||||| |Deposit account||||8,187|8,269| |Funds held with investment
managers||||115|174| |Petty cash||||17|9| |||||8,319|8,452| ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## |3.|Fundraising|Fundraising|activities|||||| |---|---|---|---|---|---|---|---|---| ||||||Unrestricted|Restricted|Total|Total| ||||||funds|funds|2021|2020| ||||||OOOO|f000|OOOO|f000| ||Fundraising||events||66||66|83| |4.|Investment||income|||||| ||||||Unrestricted|Restricted|Total|Total| ||||||funds|funds|2021|2020| ||||||f000|f000|OOOO|f000| ||Dividends||||41||41|36| ||||||41||41|36| |5.|Income from charitable|||activities||||| ||||||Unrestricted|Restricted|Total|Total| ||||||funds|funds|2021|2020| ||||||OOOO|OOOO|OOOO|f000| ||Education|and Adult day||services|21,659|250|21,909|21,734| ||Adult residential||||7,355||7,355|5,354| ||Children's|residential|||2,231||2,231|4,172| ||||||31,245|250|31,495|31,260| |6.|Analysis of||expenditure|by activities||||| ||||||Activities|||| ||||||undertaken|Support|Total|Total| ||||||directly|costs|2021|2020| ||||||OOOO|f000|f000|f000| ||Education|and Adult day||services|18,744|1,969|20,713|20,252| ||Adult residential||||6,476|573|7,049|5,461| ||Children's|residential|||2,796|404|3,200|4,477| ||||||28,016|2,946|30,962|30,190| ## ## |7.|Support c|os|ts||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---| ||||||||Education||Adult|Children'|s|Total|Total| |||||||Adult day services|||Residential|Residential||2021|2020| |||||||||ROOO|ROOO|ROOO||ROOO|ROOO| ||Staff costs|||||||1,609|468|330||2,407|1,901| ||Professional|costs||||||47|14|10||71|| ||Other direct|costs||||||152|44|31||227|83| ||Facilities cost|||||||17|5||3|25|22| ||ITcosts|||||||78|23|16||117|113| ||Maintenance||costs||||||||||8| ||Depreciation|||||||66|19|14||99|98| ||Interest||||||||||||| |||||||||1,969|573|404||2,946|2,225| |8.|Governance||costs||||||||||| ||Included
within support|||costs|above|are governance||costs|as follows:||||| |||||||||||||2021|2020| |||||||||||||ROOO|ROOD| ||Audit fees|||||||||||17|14| ||Legal fees|||||||||||37|23| |||||||||||||54|37| |9.|Net income|before transfers|||||||||||| ||This is stated||after charging:||||||||||| |||||||||||||2021|2020| |||||||||||||ROOO|ROOO| ||Depreciation|of tangible fixed|||assets:||||||||| ||- owned
by|the charity||||||||||1,204|1,059| ||Interest payable|||||||||||27|54| |10.|Auditors
remuneration||||||||||||| |||||||||||||2021|2020| |||||||||||||ROOO|ROOO| ||Fees payable||to the company's||auditor and its||associates||||||| ||for the audit|ofthe company's|||annual|accounts|||||||| ||Audit of the|charitable||company||||||||17|12| ||Audit of the|pension scheme||||||||||3|3| ||Other|||||||||||1|1| ## ## |11.|Analysis of staff costs, trustee remuneration|and expenses,|and the cost of key management|| |---|---|---|---|---| ||personnel|||| ||||2021|2020| ||||f000|f000| ||Wages and salaries||21,255|21,363| ||Social security costs||1,535|1,454| ||Other pension costs||1,980|2,232| ||||24,770|25,049| ||||||2021|2020| |---|---|---|---|---|---|---| ||||||No.|No.| |Operational||staff|||940|1,023| |Admin|and|support|||117|112| |Management|||||4|3| ||||||1,061|1,138| |Average
headcount|||expressed as a full time equivalent:|||| ||||||2021|2020| ||||||No.|No.| |Full time equivalent|||—all employees||1,000|989| |The number||of higher paid employees||were:||| ||||||2021|2020| ||||||No.|No.| |In the|band|F60,001|- 270,000||1|2| |In the|band|F70,001|- F80,000|||| |In the|band|F80,001|- 290,000|||1| |In the|band|F90,001|- R100,000|||1| |In the|band|F100,001 - 2110,000||||| |In the|band|F110,001 - F120,000||||| |In the|band|R120,001 - F130,000||||| |In the|band|F210,001 - F220,000||||| ## ## ## |Tangible fixed assets|||||||||| |---|---|---|---|---|---|---|---|---|---| |||||Long term|||||| |||Freehold||leasehold|Motor|Fixtures &|||| |||property||property|vehicles|fittings|Equipment||Total| ||||FOOO|f000|f000|OOOO|f000||OOOO| |Cost|||||||||| |At 1 September 2020|||9,492|12,706|306|1,173|1,981||25,658| |Additions|||519||99|223||404|1,245| |Disposals|||||(7)||(|347 )|( 354 )| |At 31 August 2021|||10,011|12,706|398|1,396|2,038||26,549| |Depreciation|||||||||| |At 1 September 2020|||4,039|2,129|272|876|1,689||9,006| |Charge for year|||640|154|35|186||190|1,204| |On disposal|||||(6)||(347 )||(354 )| |At 31 August 2021|||4,679|2,283|30I|1,062|1,532||9,856| |Net book value|||||||||| |At 31 August 2021|||5,332|10,423|97|334||506|16,693| |At 31 August 2020|||5,453|10,577|34|297||292|16,653| |Fixed assets investments|||||||||| ||||||||2021||2020| |Listed investments|||||||3,245||2,281| |Cash held with investment||managers|||||115||174| ||||||||3,360||2,455| ||||||||||F| |Market value at 1 September 2020|||||||||2,281| |Additions to investments|at|cost|||||||849| |Disposals at carrying value|||||||||(270 )| |Revaluation
of investments||to market|value||||||385| |Market value at 31 August||2021|||||||3,245| |Historical cost|||||||||2,875| ## ## ## ## ## |14.|Debtors|||||| |---|---|---|---|---|---|---| ||||||2021|2020| ||||||OOOO|OOOO| ||Trade debtors||||4,383|2,908| ||Bad debt provision||||( 2,774 )|(2,087 )| ||Other debtors||||6|15| ||Prepayments
and|accrued income|||492|551| ||||||2,107|1,387| |15.|Creditors: amounts||falling due within one year|||| ||||||2021|2020| ||||||f000|f000| ||Bank loans||||220|203| ||Trade creditors||||793|670| ||Other taxation and|social security|||567|352| ||LGPS pension scheme deficit||||44|44| ||Other creditors||||41|224| ||Accruals and deferred||income||2,563|2,261| ||||||4,228|3,754| ||Deferred income|||||| ||Deferred income comprises fee income relating to future periods:|||||| |||||||OOOO| ||Balance at 1 September 2020|||||585| ||Amounts
released|to|income earned from charitable|activities||(585 )| ||Amounts
deferred|in the year||||764| ||Balance at 31 August||2021|||764| ## ## |Creditors|: amounts
fallin|g due after more th|an one year||| |---|---|---|---|---|---| |||||2021|2020| |||||OOOO|OOOO| |Bank loans||||1,983|2,102| |LGPS pension scheme deficit||||755|782| |||||2,738|2,884| |Creditors|include amounts|not wholly repayable|within 5 years as follows:||| |||||2021|2020| |||||OOOO|f000| |LGPS pension scheme deficit||||755|782| |Bank loa|ns d|ue a|fter|one year are repayable
as follows:||| |---|---|---|---|---|---|---| ||||||2021|2020| ||||||f000|f000| |Between|one|and|two|years|220|203| |Between|two|and|five|years|1,983|2,102| ## |Financial|instruments||||| |---|---|---|---|---|---| |||||2021|2020| |||||f000|f000| |Measured|at fair value through
net income|||3,360|2,455| |Financial|assets measured|at amortised|cost|9,820|9,114| |Financial|liabilities measures|at amortised|cost|(4,805 )|( 5,122 )| ## ## |||Balance|||||Balance| |---|---|---|---|---|---|---|---| ||At 1|September|||Transfers|Gains/|At 31 August| |||2020|Income|Expenditure|in/out|(losses)|2021| |||2000|f000|f000|OOOO|f000|f000| |Unrestricted
funds|||||||| |General funds||20,487|31,531|( 30,510 )|( 587 )|385|21,306| |Pension reserve||( 11,593 )||||2,207|( 9,386 )| |||8,894|31,531|(30,510 )|( 587 )|2,592|11,920| |Designated
funds|||||||| |Education||78|125|(20 )|||183| |Adult Day Services
Adult Residential||18
9|3
19|(9)
(1)|(10)||12
17| |Children's
Residential||8|||||9| |Central Services||11|||||38| |Maintenance
fund||500||(13)|||487| |Strategic Development|fund|500||(118)|||382| |Recovery Plan PHS fund||250||(250 )|||| |Improvement
projects|||||300||300| |Estate development|||||300||300| |||1,374|175|(411 )|590||1,728| |Total unrestricted|funds|10,268|31,706|(30,921 )|3|2592|13,648| |Restricted funds|||||||| |Education||266|286|( 196 )|(3)||353| |Adult Day Services||8|||||8| |||274|286|( 196 )|(3)||361| |Total offunds||10,542|31,992|( 31,117 )||2,592|14,009| ## ## ## |||Balance|||||Balance| |---|---|---|---|---|---|---|---| ||At 1|September|||Transfers|Gains/|At 31 August| |||2019|Income|Expenditure|in/out|(losses)|2020| |||OOOO|f000|OOOO|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||9|2|(2)|||9| |Children's
Residential||4|10|(6)|||8| |Central Services|||11||||11| |Maintenance
fund||300|||200||500| |Strategic Development|fund|300|||200||500| |Recovery Plan PHS fund|||||250||250| |||690||(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 of funds||8,405|31,974|( 30,422 )||585|10,542| ## ## ## ## ## ## ## ## |For the|ear ended 31|Au ust2021|||| |---|---|---|---|---|---| ||||Unrestricted|Restricted|Total| ||||funds|funds|funds| ||||ROOD|ROOD|ROOD| |Tangible|fixed assets||16,693||16,693| |Fixed asset investments|||3,360||3,360| |Current assets|||9,948|361|10,309| |Creditors|due within one year||(4,228 )||(4,228 )| |Creditors|due in more than one year||(2,739 )||(2,739 )| |Provisions for liabilities||and charges|(9,386 )||(9,386 )| ||||13,648|361|14,009| ## ||||Unrestricted|Restricted|Total| |---|---|---|---|---|---| ||||funds|funds|funds| ||||ROOD|ROOD|ROOD| |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| ## ## ## |||||||2021|2020| |---|---|---|---|---|---|---|---| |||||||f000|f000| |Net income/(deficit)|for the year|(as per Statement|of Financial|Activities)||3,467|2,137| |Adjustment
for:|||||||| |Depreciation
charges||||||1,058|1,059| |Interest payable||||||27|54| |Interest from investments||||||(41 )|(36 )| |Pension
provision|adjustment||||(|2,207 )|(515)| |Unrealised
gain||||||(385 )|(75)| |(Increase)/decrease|in debtors|||||(721 )|2,196| |Increase/(decrease)|in creditors|||||434|868| |Net cash provided|by operating|activities||||1,632|5,688| ## |Analy|sis of changes
in net debt|||| |---|---|---|---|---| |||At 1 Sep|Cash|At 31 Aug| |||2020|flows|2021| |||OOOO|OOOO|f000| |Long|term borrowings|( 2,102 )|118|( 1,984 )| |Short|term borrowings|( 203 )|( 17 )|( 220 )| |Total|liabilities|(2,305 )|101|( 2,204 )| |Cash|and cash equivalents|8,452|( 133 )|8,319| |||6,147|( 32 )|6,115| ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ||||2021|2020| |---|---|---|---|---| ||||R'000|R'000| |Current service cost|||(300 )|(345 )| |Past service cost||||| |Net interest|||(204 )|(235 )| |Total cost recognised|||(504 )|(580 )| |The amounts
recognised||in the balance sheet are as follows:||| ||||2021|2020| ||||R'000|R'000| |Fair value of scheme|liabilities||(38,116)|(34,849 )| |Fair value of scheme|assets||28,730|23,256| |Deficit in the scheme|||(9,386 )|(11,593 )| ## ## ## |Change
in the present value of the defined benefit|Change
in the present value of the defined benefit|obligation||| |---|---|---|---|---| ||||2021|2020| ||||2'000|R'000| |Opening
defined
benefit obligation|||34,849|33,569| |Current service cost|||300|345| |Past service cost||||| |Interest cost|||623|669| |Contributions
to scheme participants|||82|117| |Actuarial
(gain)/loss
arising
on the scheme|liabilities||3,070|870| |Benefits paid|||( 808 )|(721 )| |Liabilities
in scheme at end ofthe year|||38,116|34,849| |Change
in the fair value ofscheme assets||||| ||||2021|2020| ||||R'000|R'000| |Opening
fair value of scheme assets|||23,256|21,461| |Interest income|||419|434| |Actual return assets|||4,989|859| |Contributions
by employer|||792|1,106| |Contributions
to scheme participants|||82|117| |Benefits paid|||( 808 )|(721 )| |Total market value of assets|||28,730|23,256| |Major categories of scheme assets as a|percentage|oftotal assets||| ||||2021|2020| ||||0/|0/| |Equities|||99.1|96.9| |Other (incl cash and net current assets)|||0.9|3.1| |None ofthe scheme's assets are invested|in property|or other assets used by the employer.||| |The return on plan assets was as follows:||||| ||||2021|2020| ||||R'000|R'000| |Interest income|||419|434| |Actual return assets|||4,989|859| |Total return
on plan assets|||5,408|1,293| ## ## ## |Principal|actuarial|assumptions
at the balance sheet|date|| |---|---|---|---|---| ||||As at|As at| ||||31 August|31 August| ||||2021|2020| ||||0/o|0/| |Discount|rate||1.75|1.80| |Salary increases|||0.00|0.00| |Inflation|assumption|(RPI)|4.00|3.35| |Inflation|assumption|(CPI)|3.00|2.35| |The mor|tali|ty|assumptio|ns
us|ed for longevity
(in years) on r|etirement
at age 65are:||| |---|---|---|---|---|---|---|---|---| ||||||||As at|As at| |||||||31|August|31 August| ||||||||2021|2020| ||||||||years|years| |Retiring|at|the|balance|sheet|date|||| |—males|||||||21.8|21.5| |—females|||||||24.2|23.5| |Retiring|in|20|years|||||| |—males|||||||23.1|22.8| |—females|||||||25.7|24.9| ## ## |||||2020| |---|---|---|---|---| |||||f000| |Amounts||payable:||| |Within|1|year|41|37| |Between||1 and 5 years|138|92| |After|more than 5years||390|409| |Total|||569|538| ## ## ## ## ## ## ||||||Unrestricted|Unrestricted|||| |---|---|---|---|---|---|---|---|---|---| ||||||General|Designated|Restricted|Total|Total| ||||||Fund|Fund|Funds|2020|2019| |||||Notes|ROOD|ROOD|ROOD|ROOD|ROOD| |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||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|33|123|30,422|28,771| |Net gain on investment|||||70|||70|53| |Net income before||transfers|||l,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|