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2022-08-31-accounts

Company No. 2042309 Registered in England and Wales Charity No. 518009

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED (A Company Limited by Guarantee)

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS

Contents Page
Governors, Directors and Advisors 1
Annual Report of the Directors 3
Strategic Report 7
Statement of Accounting and Reporting Responsibilities 10
Independent Auditor’s Report 11
Statement of Financial Activities 15
Balance Sheet 16
Cash flow statement 17
Notes to the Financial Statements 19

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED GOVERNORS, OFFICERS AND ADVISERS YEAR ENDED 31 AUGUST 2022

GOVERNORS, DIRECTORS AND CHARITY TRUSTEES

The Governors of Priory School Edgbaston Trustees Limited are the School’s charity trustees under charity law and they are the directors of the charitable company. Members of the Governing Body (Governing Council) who served in office as Governors during the year and subsequently are detailed below.

(1) (2) (3)
Ms H Somerfield(Chair) X X
Ms D Mattison(Vice Chair) X X
Mr V Naik X
Mrs A Cleary X
Mr S Brereton Appointed 8 December 2021 X
Mrs P Skrybant Appointed 10 November 2021
Mr T J P Ryan Resigned 8 May 2022
Sister M Matthews Resigned 13 June 2022 X
Dr T Wood Resigned 18 May 2022

During the year certain activities of the Governing Body were carried out through three committees, being the following

Membership of Committees is shown above for each Governor.

Post Year - end Appointments to Governing Council

1

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED GOVERNORS, OFFICERS AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

ADVISORS

Officers (currently and throughout the year)

Mr J Cramb BA Hons, PGCE, MEd Headmaster Mr P Murphy LIB Finance Director and Company Secretary

Registered Office

Priory School, 39 Sir Harry’s Road, Edgbaston, Birmingham, B15 2UR

Auditors

Crowe U.K. LLP, Rounds Green Road, Oldbury, West Midlands, B69 2DG

Bankers

Handelsbanken, 55 Calthorpe Road, Edgbaston, Birmingham B15 1TH and

Barclays Bank, Birmingham Business Centre, 15 Colmore Row, Birmingham, B3 2EP

Website

www.prioryschool.net

2

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED DIRECTORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

The members of the Priory School Governing Body present their Annual Report for the year ended 31 August 2022 under the Charities Act 2011, including the Directors’ and Strategic Reports, under the Companies Act 2006, together with the audited financial statements for the year.

REFERENCE AND ADMINISTRATIVE INFORMATION

Priory School Edgbaston Trustees Limited is constituted as a company limited by guarantee registered in England, No. 2042309, and is registered with the Charity Commission under Charity No. 518009.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing documents

The School is governed by its Memorandum of Association and Articles of Association, as altered by special resolutions passed 29[th] May 2002 and 30[th] July 2002.

Governing Body

The Governing Council is the Governing Body. Council members are elected at a general meeting and must be proposed by a member qualified to attend and vote at such meetings, in accordance with the Memorandum and Articles of Association. The number of Council members in office should not be more than 16 and not less than 8, as provided in the Memorandum and Articles of Association.

Recruitment and training of Directors

New Directors (Members of the Governing Council) are introduced to the workings of the School, including Governing Council policy and procedures, by the Governor Nomination and Selection Committee. Directors also attend specialist external courses from time to time, for example on Safeguarding Training.

Organisational management

The Council members meet as a Board at least four times per annum to determine the general policy of the company and to review its overall management and control, for which they are legally responsible.

The Council members delegate day to day management of the School to the Headmaster and his senior management team, comprising the Finance Director, the Facilities Manager and the Deputy Heads and Assistant Heads of the Preparatory and Senior Schools. Together, this group are the key management personnel.

The Council operates a number of Committees with delegated responsibilities in specific areas. These include the Finance and General Purposes Committee, the Risk and Compliance Committee and the Governor Nomination and Selection Committee. The Head and Finance Director attend meetings of the Governing Council’s Committees. In addition, certain members of the Council have specific governance responsibilities in key areas such as Early Years, Child Protection, Marketing and Special Educational Needs.

The Finance and General Purposes Committee meets shortly before each meeting of the full Governing Council, specifically to review financial performance, budgets and management accounts. Responsibilities of this Committee also include Marketing, Facilities, Fundraising and Infrastructural Development projects. The Committee makes recommendations to Governing Council on the annual reviews of School Fee tariffs and Staff Salary scales.

3

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED DIRECTORS’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2022

Employment policy

Delivery of the School’s charitable vision and purpose is primarily dependent on its key management personnel, and staff costs are the largest single element of charitable expenditure.

Remuneration policy is set by the Headmaster and Finance Director, subject to board (Council) approval, with the objective of providing appropriate incentives to encourage optimal performance and of rewarding individual contributions to the School’s success fairly and responsibly.

The appropriateness and relevance of remuneration policy is reviewed annually. While reviews include reference to conditions in the education sector generally, the School is free to set its pay scales independently. Here the objective is to ensure that the School remains sensitive to the broader issues of pay and employment conditions elsewhere, while adapting to local budgetary conditions

The School is an equal opportunities employer. Full and fair consideration is given to job applications from disabled persons and due attention is given to their training and employment needs.

Communication with employees continues through normal management channels, in particular through the Daily Bulletin in which staff are apprised of current issues and of key decisions affecting the school. Whole staff meetings, which are held termly, include briefings from the Headmaster, Finance Director, and other members of the senior management team.

Key Relationships

The School is a member of ISA (Independent Schools Association), AGBIS (Association of Governing Bodies of Independent Schools), and ISBA (Independent Schools Bursars’ Association).

Locally, the School is a member of the Birmingham Catholic Schools Partnership.

In recognition of its heritage, the School maintains links with the Society of the Holy Child Jesus and with sister schools in Ireland, Europe and North America.

We cooperate with a number of local organisations in our ongoing endeavours to widen public access to the schooling that we can provide, to optimise the use of our cultural and sporting facilities and to develop in our pupils an awareness of the social context of the education that they receive at the School. We are also involved in the Erasmus “Big Outdoors” project for Early Years children with schools in Sweden, Germany, Iceland and Austria.

The School also benefits from the generosity of its parents’ association, the Friends of Priory School, whose close support we greatly appreciate and gladly acknowledge.

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

The company is established to advance education by running a School in the United Kingdom as a registered charity for the education of children of both sexes and all denominations.

The company’s principal activity remains the provision of independent education for children from Early Years to Sixth Form.

Strategic Aim

Priory School is a Catholic Heritage school which welcomes pupils of all faiths and abilities and is committed to delivering success for every child in its care, complementing academic life with performing arts, sports, and other extra-curricular activities designed to develop self-confident and well-rounded individuals.

4

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED DIRECTORS’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2022

Our aim is encapsulated in the following extract from our Mission Statement:

‘In partnership with parents or guardians, we provide a caring community with high standards of teaching and learning, enabling all pupils to achieve success .’

During the year, the Governing Council has been working with management to consider how we can best ensure that the School has the broadest possible appeal to our increasingly diverse pupil and parent population while continuing to respect its traditional Catholic values. To this end, a new Mission Statement will be adopted in the year commencing in September 2022.

Principal activity

The company’s principal activity remains the provision of independent education for children from nursery to sixth form.

Serving the public benefit

In setting our objectives and planning our activities the Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit. In particular, the School has continued to support the widening of access to our school by pupils from lower income families through the provision of Scholarships and Supported Places. However, as the School has no endowment fund, we have had to maintain a careful balance between fee paying parents and those benefiting from the awards, in order to ensure our ongoing financial viability and to support further development of the School

The Scholarship scheme offers access to our School for bright pupils who excel academically or in areas such as sport, art, music or drama. During the 2021/2022 academic year we have again complemented the Scholarship scheme with Supported Place awards, which have been means-tested and which have further supplemented the Scholarship award in appropriate cases.

The Council views our Scholarship and Supported Place awards as essential in helping to ensure that children from families who would otherwise not be able to afford the fees can access the education that we offer. Additionally, awards of Bursaries are made on the basis of parental means or to relieve financial hardship where an existing pupil’s place might otherwise be at risk. To underline the value that we place on continuity for families, we continue to offer sibling discounts where parents have more than one child at the School.

This year, special full scholarship awards were made to two Ukrainian children, as part of the School’s response to the crisis in their native country.

The Trustees achieve the wider public benefit aim by providing use of the school’s facilities for a range of community events and activities, including car parking for major sporting events at Edgbaston Priory Club (tennis tournaments) and at Edgbaston Stadium (cricket test matches).

Other beneficiaries of this policy this year included

The School continues to play an active part in seeking to extend its charitable activities to the general public and is willing to assist and support in areas of need. We encourage our pupils to be good team players who are able to think independently and lead when required and we seek to foster a strong sense of the pupils’ place in their local community and wider society.

5

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED DIRECTORS’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2022

We play a key role in the Catholic Partnership, which consists mainly of state schools, by hosting sports events and by opening our acclaimed Forest School to Partnership pupils. Our pupils also serve the community by entertaining residents of Sunrise Senior Living Care Home in Edgbaston and residents of the Little Sisters of the Poor Care Home in Harborne with singing and music. Our pupils also serve the community by suggesting charities to support and by actively engaging in fund raising activities in support of worthy causes, including

6

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED DIRECTORS’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2022

STRATEGIC REPORT

FINANCIAL REVIEW

Results for the year

This year, the School reports a surplus of £23k , an improvement of £240k on the previous year’s result (deficit £217k).

The return to surplus, after two years of deficits, occasioned largely by the Coronavirus pandemic, is a welcome development. This has been achieved through the dedicated efforts of the entire Priory team, which have been directed towards cost savings and strategic management of key resources, while maintaining optimal quality of education for pupils.

The teaching staff, who deliver the educational product, are often rightly cited as our greatest asset. Inevitably, their remuneration accounts for over seventy per cent of the School’s costs, which is in line with sector norms. Our loyal colleagues have shown great commitment and understanding in accepting the limited ability to increase salaries over the last two years. During this time, the usual teacher pay scale arrangements have been suspended. The Governing Council has committed to keeping overall remuneration under review with a view to further improvement when finances permit.

As reported last year, one of the principal issues arising from the pandemic was a significant drop in pupil numbers due to parental circumstances, with the consequent loss of school fee revenue. It has been a prime goal of School management to restore pupil numbers. At the date of writing, this aim has been partly achieved and numbers have risen in the new academic year from September 2022.

Reserves Level and Policy and Financial Viability

The school’s total reserves were £1,452,614 at the year - end. £1,029,164 of this represented the net book value of fixed assets, leaving free reserves of £423,450 (2021 £282,747). There were no restricted funds.

The Council’s continuing policy is to seek to have free reserves at a level sufficient to enable the School to withstand consequential pupil losses of up to 10%. The target level of free resources on this basis is approximately £505k. There is, therefore, a shortfall of £82k against the desired reserve level as a consequence of the financial outcomes mentioned above. This compares favourably, however, with the prior year £222k shortfall

The Council has reviewed financial projections for the future. These projections reflect the School’s aim to continue the growth in pupil numbers throughout the school and to increase net income through modest annual increases in school fee tariffs while continuing the policy of providing judiciously for scholarships, supported places and bursaries. Combined with continued attention to credit control and costs, achievement of this strategic objective should deliver growing surpluses in the years ahead, while free reserves should reach the desired level in 2022 – 2023.

On this basis, production of these accounts on a going concern basis is considered appropriate.

The Governing Council is aware of the wider general threats to the independent education sector in a high inflation economy combined with the potential for major changes in taxation policy at some future date. There is little that can be done to forestall adverse changes in public policy, other than to keep informed and to rely on the combined lobbying efforts of our representative bodies.

7

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED DIRECTORS’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2022

PRINCIPAL RISKS AND UNCERTAINTIES

The Council continues to keep under review the School’s activities, the risks that may arise from them and the internal controls, systems and procedures established to manage them.

Detailed consideration of risk is delegated to the Risk and Compliance Committee, which meets three times a year and reports formally to the Governing Body. The structure of the Committee comprises two members of the Governing Council, assisted by Senior Management.

The risk management process adopted by the Risk and Compliance Committee identifies major risks, assesses their impact and likelihood and, where necessary, recommends controls to mitigate and monitor those risks that are assessed as high. Mitigation measures include ensuring that appropriate insurance cover is in place to cover any insurable risks identified.

The key risks and actions to mitigate those areas are as follows:

Risk identified Mitigation
Damage to reputation
from fraud, accident,
unsatisfactory inspection
reports or adverse media
coverage		 Careful financial management by Governing Council, supported by a
Finance and General Purposes Committee and by the Finance
Director;
A Risk and Compliance Committee of the Board with specific
delegated responsibility for Health & Safety meets three times a year
and reviews policy, practice, and any incidents requiring Board level
attention.
Continuous programme of campus security improvements in place
All external and parent communications channelled through senior
management for immediate attention;
Detailed risk register maintained by the Facilities Manager
Reduction in pupil
numbers		 Heavy emphasis on and continuing investment in marketing;
Close involvement of senior management in pupil recruitment process;
Increased focus on improving the academic achievement of pupils
Change in Charitable
Status and/or imposition
of VAT on School Fees		 Limited, as changes would apply to the entire independent education
sector
Change may be gradual rather than immediate

8

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED DIRECTORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

Other risk aspects:

The Trustees consider the affordability of fees by parents across the independent sector to be the principal financial risk faced by the School, especially as local competition from other independent schools remains intense. In recognition of these factors, the Governing Council decided to increase school fee tariffs by a lower than inflation level of 3.00% (following a zero increase in 2020/21)

Health and Safety is always a significant area for risk management. The risks generally range from fire and infrastructure to personal risks (most notably when pupils or teachers are away from the campus on trips and expeditions). The level and breadth of activity at the School is impressive and the risks associated with all activities are minimised by thorough planning and risk assessment. Particular attention is given to government advice and guidelines on public health issues. This measure served the School well during the pandemic, and continues to help keep health related absences under control.

FUTURE PLANS

2022/2023 will be another challenging year for Priory School, in which we shall seek to build on the financial recovery now underway

Plans include:

9

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED DIRECTORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

STATEMENT OF ACCOUNTING AND REPORTING RESPONSIBILITIES

The trustees (who are also the directors of Priory School for the purposes of company law) are responsible for preparing the Annual Report and the financial statements with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law.

Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources for that period. In preparing these financial statements, the Governing Body members are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Relevant Audit Information

Insofar as each of the Directors is aware, as members of the Governing Body, at the date of approval of this report, there is no relevant audit information of which the Company’s auditor is unaware. Each member of the Governing Body has taken all the steps that he or she should have taken as a member of the Governing Body in order to make himself or herself aware of the relevant audit information and to establish that the Company’s auditor is aware of that information.

Approved by the Governing Council of Priory School Edgbaston including, in their capacity as company directors, approving the Directors’ and Strategic Reports contained herein, and signed on its behalf by:

H Somerfield

Chair of Governing Council Date:

10

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 AUGUST 2022

Opinion

We have audited the financial statements of Priory School Edgbaston Trustees Limited for the year ended 31 August 2022 which comprise the Statement of Financial Activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

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

11

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED INDEPENDENT AUDITOR’S REPORT

FOR THE YEAR ENDED 31 AUGUST 2022

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report including the Strategic Report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the

12

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 AUGUST 2022

Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent School Standards) Regulations 2014, General Data Protection Regulation (GDPR), Health and safety legislation, and Employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance & General Purposes Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, Independent Schools Inspectorate, Ofsted and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

13

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 AUGUST 2022

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Kerry Brown (Senior statutory auditor)

For and on behalf of

Crowe U.K. LLP

Statutory Auditor

Black Country House Rounds Green Road Oldbury West Midlands B69 2DG Date:

14

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2022

Note
Unrestricted
Funds
2022
Total
2021
Total
£
£
£
Income from:
Charitable activities
School fees receivable
2
4,247,862
4,247,862
4,207,764
Ancillary trading income
3
221,891
221,891
165,509
Other trading activities
4
10,807
10,807
9,973
Investments
5
14
14
19
Other income
6
-
-
20
,311
Total incoming resources
4
,480,574
4
,480,574
4
,403,576
Expenditure on:
Raising funds
Financing costs
7
52,330
52,330
(8,340)
Charitable activities
Education
7
4
,405,480
4
,405,480
4
,629,362
Total expenditure
4
,457,810
4
,457,810
4
,621,022
Net incoming funds from operations before
transfers
22
,764
22
,764
(217
,446)
Net movement in funds for the year
22
,764
22
,764
(217
,446)
Fund balances at 1 September 2021
1
,429,850
1
,429,850
1
,647,296
Fund balances at 31 August 2022
1
,452,614
1
,452,614
1
,429,850		 Note
Unrestricted
Funds
2022
Total
2021
Total
£
£
£
Income from:
Charitable activities
School fees receivable
2
4,247,862
4,247,862
4,207,764
Ancillary trading income
3
221,891
221,891
165,509
Other trading activities
4
10,807
10,807
9,973
Investments
5
14
14
19
Other income
6
-
-
20
,311
Total incoming resources
4
,480,574
4
,480,574
4
,403,576
Expenditure on:
Raising funds
Financing costs
7
52,330
52,330
(8,340)
Charitable activities
Education
7
4
,405,480
4
,405,480
4
,629,362
Total expenditure
4
,457,810
4
,457,810
4
,621,022
Net incoming funds from operations before
transfers
22
,764
22
,764
(217
,446)
Net movement in funds for the year
22
,764
22
,764
(217
,446)
Fund balances at 1 September 2021
1
,429,850
1
,429,850
1
,647,296
Fund balances at 31 August 2022
1
,452,614
1
,452,614
1
,429,850		 Note
Unrestricted
Funds
2022
Total
2021
Total
£
£
£
Income from:
Charitable activities
School fees receivable
2
4,247,862
4,247,862
4,207,764
Ancillary trading income
3
221,891
221,891
165,509
Other trading activities
4
10,807
10,807
9,973
Investments
5
14
14
19
Other income
6
-
-
20
,311
Total incoming resources
4
,480,574
4
,480,574
4
,403,576
Expenditure on:
Raising funds
Financing costs
7
52,330
52,330
(8,340)
Charitable activities
Education
7
4
,405,480
4
,405,480
4
,629,362
Total expenditure
4
,457,810
4
,457,810
4
,621,022
Net incoming funds from operations before
transfers
22
,764
22
,764
(217
,446)
Net movement in funds for the year
22
,764
22
,764
(217
,446)
Fund balances at 1 September 2021
1
,429,850
1
,429,850
1
,647,296
Fund balances at 31 August 2022
1
,452,614
1
,452,614
1
,429,850
1
,429,850

The notes on pages 19 to 31 form part of these financial statements

15

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED BALANCE SHEET

AS AT 31 AUGUST 2022

Note
2022
2021
£
£
FIXED ASSETS
Tangible assets
10
1
,029,164
1
,147,103
CURRENT ASSETS
Debtors
11
245,948
344,109
Cash and deposits
742
,729
744
,179
988,677
1,088,288
CURRENT LIABILITIES
Creditors payable within one year
12
(565
,227)
(805
,541)
NET CURRENT ASSETS
423
,450
282
,747
NET ASSETS
1
,452,614
1
,429,850
REPRESENTED BY:
UNRESTRICTED FUNDS
General Reserve
15
1
,452,614
1
,429,850		 Note
2022
2021
£
£
FIXED ASSETS
Tangible assets
10
1
,029,164
1
,147,103
CURRENT ASSETS
Debtors
11
245,948
344,109
Cash and deposits
742
,729
744
,179
988,677
1,088,288
CURRENT LIABILITIES
Creditors payable within one year
12
(565
,227)
(805
,541)
NET CURRENT ASSETS
423
,450
282
,747
NET ASSETS
1
,452,614
1
,429,850
REPRESENTED BY:
UNRESTRICTED FUNDS
General Reserve
15
1
,452,614
1
,429,850		 Note
2022
2021
£
£
FIXED ASSETS
Tangible assets
10
1
,029,164
1
,147,103
CURRENT ASSETS
Debtors
11
245,948
344,109
Cash and deposits
742
,729
744
,179
988,677
1,088,288
CURRENT LIABILITIES
Creditors payable within one year
12
(565
,227)
(805
,541)
NET CURRENT ASSETS
423
,450
282
,747
NET ASSETS
1
,452,614
1
,429,850
REPRESENTED BY:
UNRESTRICTED FUNDS
General Reserve
15
1
,452,614
1
,429,850		 Note
2022
2021
£
£
FIXED ASSETS
Tangible assets
10
1
,029,164
1
,147,103
CURRENT ASSETS
Debtors
11
245,948
344,109
Cash and deposits
742
,729
744
,179
988,677
1,088,288
CURRENT LIABILITIES
Creditors payable within one year
12
(565
,227)
(805
,541)
NET CURRENT ASSETS
423
,450
282
,747
NET ASSETS
1
,452,614
1
,429,850
REPRESENTED BY:
UNRESTRICTED FUNDS
General Reserve
15
1
,452,614
1
,429,850
1
,429,850

These financial statements were approved by the Governing Body and signed on its behalf by:

H Somerfield (Chair) Date:

The notes on pages 19 to 31 form part of these financial statements

16

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED CASH FLOW STATEMENT

AS AT 31 AUGUST 2022

2022
£
Net cash outflow from operations
Net cash provided by operating activities (i)
Cash flows from investing activities:
Payments for tangible fixed assets
(51,447)
Investment income and bank interest received
14
Net cash used in by investing activities
Cash flows from financing activities:
Finance costs paid
52,330
Net cash provided by financing activities
Change in cash and cash equivalents in the
period
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the
period		 2021
£
£
£
102
,313
326
,517
(11,467)
19
(51
,433)
(11
,448)
(8,340)
52
,330
(8
,340)
(1,450)
323,409
744
,179
420,770
742
,729
744
,179

The notes on pages 19 to 31 form part of these financial statements

17

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED NOTES TO THE CASH FLOW STATEMENT

AS AT 31 AUGUST 2022

(i) Reconciliation of net income to net cash flow from operating activities Reconciliation of net income to net cash flow from operating activities
2022 2021
£ £
Net incoming resources 22,764 (217,446)
Elimination of non-operating cash flows:
- Investment income (14) (19)
- Finance costs 52,330 (8,340)
Depreciation charge 169,386 224,884
Decrease/(Increase) in debtors 98,161 122,166
Increase/(Decrease) in creditors (excluding (55,634) 76,641
fees in advance and deposit)
Increase/(Decrease) in fees in advance (194,920) 136,681
scheme creditors
(Decrease) in parents’ deposits 10
,240		 (8
,050)
Net cash inflow/(outflow) from operations 102
,313		 326
,517
(ii) Analysis of cash and cash equivalents
Cash at bank 742
,729		 744
,179

(iii) Analysis of changes in net debt

At 1 Cash Other At 31
September flows non-cash August
2021 changes 2022
£ £ £
Cash at bank and in hand 744 ,179
(1		 - 742

The notes on pages 19 to 31 form part of these financial statements

19

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1. ACCOUNTING POLICIES

1.1 Basis

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities

preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The functional currency of the School is considered to be sterling because that is the currency of the primary economic environment in which the School operates.

The Trustees have a reasonable expectation that Priory School Edgbaston Trustees Limited has adequate resources to continue in operational existence for the foreseeable future. There are no material uncertainties about the School’s ability to continue and therefore the Trustees adopt the going concern basis of accounting in preparing the financial statements.

The School is a Public Benefit Entity registered as a charity in England and Wales and a company limited by guarantee. It was incorporated on 30 July 1986 (company number: 2042309) and registered as a charity on 6 October 1986 (charity number: 518009). The registered office and principal place of business is 39 Sir Harry’s Road, Edgbaston, Birmingham, B15 2UR.

1.2 Critical accounting judgements and key sources of estimation uncertainty

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

1.3 Fees and similar earned income

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

Fees received in advance of education to be provided in future years are treated as deferred income and included within creditors.

1.4 Donations, legacies, grants and other voluntary incoming resources

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

Voluntary income for the School’s general purposes is accounted for as unrestricted and is credited to the General Reserve. Where the donor or an appeal has imposed trust law restrictions, voluntary income is credited to the relevant restricted fund.

20

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

ACCOUNTING POLICIES (continued)

1.5 Expenditure

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer-term liabilities. Expenditure attributable to more than one cost category in the SoFA is apportioned to them on the basis of the estimated amount attributable to each activity in the year, either by reference to staff time or the use made of the underlying assets, as appropriate. Irrecoverable VAT is included with the item of expenditure to which it relates.

Grants awarded are expensed as soon as they become legal or operational commitments.

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

1.6 Tangible fixed assets

Fixed assets are stated at historical cost less accumulated depreciation. Depreciation is provided on all tangible fixed assets at rates calculated to write each asset down to its estimated residual value, evenly over its expected useful life, as follows:

Fixtures, fittings and equipment 3 to 10 years
Leasehold improvements 5 to 20 years

Depreciation is provided in full in the year of acquisition.

Expenditure of a capital nature below £500 are not capitalised.

1.7 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discounts offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.8 Creditors and provisions

Creditors and provisions are recognised where the School has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.9 Fund accounting

The charitable trust funds of the School are accounted for as unrestricted or restricted income

Unrestricted income belongs to the Schools’ corporate reserves, spendable at the discretion of the Trustees either to further the School’s Objects or to benefit the School itself. Where the Trustees decide to set aside any part of these funds to be used in future for some specific purpose, this is accounted for by transfer to the appropriate designated fund.

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

21

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

ACCOUNTING POLICIES (continued)

1.10 Pension costs

Retirement benefits to employees of the School who are teachers are provided through a defined benefit scheme. The pension costs charged in the Statement of Financial Activities are determined as follows:

The Teachers’ Pension Scheme - This scheme is a multi-employer pension scheme. It is not possible to identify the Schools’ share of the underlying assets and liabilities of the Teachers’ Pension Scheme on a consistent and reasonable basis and therefore, as required by FRS102, accounts for the scheme as if it were a defined contribution scheme. The Schools’ contributions, which are in accordance with the recommendations of the Government Actuary, are charged in the period in which the salaries to which they relate are payable.

1.11 Operating leases

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

1.12 Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions.

1.13 Cash at Bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2. CHARITABLE ACTIVITIES – FEES RECEIVABLE

CHARITABLE ACTIVITIES – FEES RECEIVABLE
Fees receivable consist of:
School fees
Less: total scholarships and bursaries		 2022
£
5,050,606
(802
,744)
4
,247,862		 2021
£
5,027,130
(819
,366)
4
,207,764

Scholarships, bursaries and other awards were paid to 210 pupils ( 2021: 209 ). Within this meanstested bursaries totalling £166,322 were paid to 60 pupils ( 2021: £212,284 to 66 pupils ).

22

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

3.
CHARITABLE ACTIVITIES – OTHER INCOME
Extras
Entrance and registration fees
Commissions and other income
4.
OTHER TRADING ACTIVITIES
Other activities
Lettings
Other
5.
INVESTMENTS
Bank interest
6. OTHER INCOME
Government grant		 2022
2021
£
£
169,193
125,050
47,851
36,653
4
,847
3
,806
221
,891
165
,509
2022
2021
£
£
3,500
3,500
7
,307
6
,473
10
,807
9
,973
Total
Total
2022
2021
£
£
14
19
Total
Total
2022
2021
£
£
-
20
,311

The government grant received during the prior year related to the Coronavirus Job Retention Scheme.

23

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

7. ANALYSIS OF EXPENDITURE

(a) Total expenditure

Total expenditure
Staff costs
Depreciation
(note 9)
(note 10)
£
£
Costs of generating funds
Financing costs (note 8)
-
-
Total costs of generating
funds
-
-
Charitable expenditure
Education
Teaching
2,706,210
-
Welfare
-
-
Premises
279,560
169,386
Support costs and governance
285,690
-
Total charitable expenditure
3
,271,46
0
169
,386
Total expended
3
,271,460
169
,386
Total expenditure comparative
Staff costs
Depreciation
(note 9)
(note 10)
£
£
Costs of generating funds
Financing costs (note 8)
-
-
Total costs of generating funds
-
-
Charitable expenditure
Education
Teaching
2,864,561
-
Welfare
-
-
Premises
317,649
224,884
Support costs and governance
301,968
-
Total charitable expenditure
3
,484,178
224
,884
Total expended
3
,484,178
224
,884		 Other
Total
Total
2022
2021
£
£
£
52,330
52
,330
(8
,340)
52
,330
52
,330
(8
,340)
158,077
2,864,287
3,013,021
227,294
227,294
324,455
282,733
731,679
809,394
296,530
582,220
482,492

964
,634
4
,405,480
4
,629,362
1
,016,964
4
,457,810
4,621,022
Other
Total
Total
2021
2020
£
£
£
(8,340)
(8
,340)
164
,705
(8
,340)
(8
,340)
164
,705
148,460
3,013,021
2,961,554
324,455
324,455
219,764
266,861
809,394
914,987
180,524
482,492
298,955
920
,300
4
,629,362
4
,395,260
911
,960
4
,621,022
4,559,975

24

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

7. ANALYSIS OF EXPENDITURE (CONTINUED)

ANALYSIS OF EXPENDITURE (CONTINUED) 2022 2021
Governance included in support costs:
£ £
Remuneration paid to auditor for audit services 11,500 11,490
Other governance costs 56
,758		 57 ,217
68
,258		 68 ,707

(b) Governance included in support costs:

8. FINANCE AND OTHER COSTS

Bank charges
Bad and doubtful debts		 2022

£
9,539
42
,791
52
,330		 2021
£
9,434
(17
,774)		 2021
£
9,434
(17
,774)
(8
,340)

9. STAFF COSTS

.
STAFF COSTS
2022 2021
The aggregate payroll costs for the year were as follows: £ £
Wages and salaries 2,592,981
2,772,528
Social security costs 249,873 259,195
Other pension costs 405
,537		 428
,063
3,248,391
3,459,786
Supply staff costs 23,069 24,392
3
,271,460		 3
,484,178

None of the members of the governing body received any remuneration or other benefits from Priory School or from any connected body.

Travel expenses reclaimed by members of the governing body – Nil (2021: Nil) .

Aggregate employee-benefits of key management personnel 608,300 647,217

25

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

9.
STAFF COSTS (CONTINUED)
Number of higher paid employees in taxable emoluments bands of:
£120,001 to £130,000
The number with retirement benefits accruing
- in Defined Benefit schemes was
of which contributions amounted to		 2022
2021
1
1
1
1
29
,741
£29
,941

The average number of persons employed by the School during the year was as follows:

2022 2021
Teaching 77 83
Other activities 22 24
99 107

26

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

10. TANGIBLE FIXED ASSETS

Leasehold
Fixtures,
Fittings &
Improvements
Equipment
£
£
Cost
At 1 September 2021
699,573
Additions
8,354
43,093
Disposals
-
At 31 August 2022
Depreciation
At 1 September 2021
618,288
Charge for the year
120,187
49,199
Disposals
-
At 31 August 2022
667
,487
Net book value
At 31 August 2022
953
75
,179
At 31 August 2021
81
,285
11.
DEBTORS
2022
£
Trade debtors
166,825
Other debtors
15,681
Prepayments and accrued income
63,442
245
,948		 Total
£
2,737,499
51,447
-
2,788,946
1,590,396
169,386
-
1
,759,782
1
,147,103
2021
£
225,912
16,967
101,230
344
,109

An impairment loss of £42,791 (2021: gain of £17,774) was recognised against the School Fees debtors during the year.

27

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

12. CREDITORS: amounts falling due within one year

Deposits from parents
Deferred income
Trade creditors
Taxes and Social Security Cost
Accruals and other creditors		 2022
2021
£
£
(140,576)
(130
(230,876)
(425
(25,838)
(86
(63,041)
(62
(104,896)
(100
(565,227)
(805		 2022
2021
£
£
(140,576)
(130
(230,876)
(425
(25,838)
(86
(63,041)
(62
(104,896)
(100
(565,227)
(805
(805

The Governors have reviewed the contract terms under which Pupil fee deposits are held by the school. Although under normal circumstances these will be repaid over future years when the pupils complete their education at the school, pupils can leave at earlier dates. The school does not therefore have an unconditional right to retain the individual deposits for at least 12 months after the balance sheet date and, in line with the requirements in FRS 102, the balance of the deposits held at 31 August 2022 have been included within current liabilities. The prior year Pupil fee deposits balance has been similarly represented.

13. DEFERRED INCOME

Summary of movements in liability £
Balance at 1 September 2021 425,796
Amounts released to incoming resources (425,796)
Amounts deferred in the year 230,876
Balance at 31 August 2022 230
,876

Deferred income comprises school fees received in advance and trip monies received in advance.

28

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

14. OPERATING LEASES

The commitments due over the life of the leases, under non-cancellable operating leases are analysed as follows:

< 1 year
2 – 5 years
> 5 years
Total		 2022
22,272
34,179
166
,500
222
,951		 2021
17,872
38,468
171
,000
227
,340

The operating lease expense charged in the year was £22,272 ( 2021: £ 18,185 ).

29

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

15. STATEMENT OF FUNDS

Balance at 1 Incoming Incoming Resources Resources Transfers Transfers Balance at
September resources expended between 31 August
2021 funds 2022
£ £ £ £ £
Unrestricted funds
General funds
1,429,850		 4,480,574 4,457,810 - 1,452,614
Total Funds
1
,429,850
4
,480,574
4
,457,810
-		 1
,452,614
TATEMENT OF FUNDS – PRIOR YEAR
Balance at 1 Incoming Resources Transfers Balance at
September resources expended between 31 August
2020 funds 2021
£ £ £ £ £
Unrestricted funds
General funds
1,647,296		 4,403,576 (4,621,022) - 1,429,850
Total Funds
1
,647,296		 4
,403,576		 (4
,621,022)
 - 1
,429,850
UMMARY OF FUNDS
At 1 Incoming Resources At 31
September resources expended Transfers August
2021 2022
£ £ £ £
Unrestricted funds
1
,429,850		 4
,480,574		 4 ,457,810 1 ,452,614
Total Funds
1
,429,850		 4
,480,574
4
,457,810		 1 ,452,614
UMMARY OF FUNDS – PRIOR YEAR
At 1 Incoming Resources At 31
September resources expended Transfers August
2020 2021
£ £ £ £
Unrestricted funds
1
,647,296
 - (217 ,446) 1 ,429,850
Total Funds
1
,647,296
 - (217 ,446) 1 ,429,850

STATEMENT OF FUNDS – PRIOR YEAR

SUMMARY OF FUNDS

SUMMARY OF FUNDS – PRIOR YEAR

30

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted Total
Fund balances at 31 August 2022 are represented by: £ £
Tangible fixed assets 1,029,164 1,029,164
Current assets 988,677 988,677
Current liabilities (565,227) (565,227)
1
,452,614
1
,452,614

ANALYSIS OF NET ASSETS BETWEEN FUNDS – PRIOR YEAR

Unrestricted Total
Fund balances at 31 August 2021 are represented by: £ £
Tangible fixed assets 1,147,103 1,147,103
Current assets 1,088,288 1,088,288
Current liabilities (805,541) (805,541)
1
,429,850		 1
,429,850

17. PENSION SCHEMES

Teachers’ Pension Scheme

The School participates in the Teachers’ Pension Scheme (England and Wales) (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £522,777 (2021: £428,063) and at the year-end £28,630 (2021: £33,751) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

31

PRIORY SCHOOL EDGBASTON TRUSTEES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

17. PENSION SCHEMES (CONTINUED)

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following a public consultation, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations.

The 2016 cost control valuations have since been completed in January 2022, and the results indicated that there would be no changes to benefits or member contributions required. The results of the cost cap valuation are not used to set the employer contribution rate, and HM Treasury has confirmed that any changes to the employer contribution rate resulting from the 2020 valuations will take effect in April 2024.

Until the 2020 valuation is completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly, no provision for any additional past benefit

pension costs is included in these financial statements.

NOW Pension scheme

The school participates in the NOW pension scheme for its non-teaching staff. The pension charge for the year includes contributions payable to the NOW of £28,164 (2021: £29,830) and at the year-end £639 (2021: £1,300) was accrued in respect of contributions to this scheme.

18. RELATED PARTY TRANSACTIONS

There were no related party transactions in the year.

32