**REGISTERED COMPANY NUMBER: 00895208 (ENGLAND AND WALES) REGISTERED CHARITY NUMBER: 525915** 

**Report of the Trustees and Audited Financial Statements for the year ended 31[st] August 2021 for The Ryleys School Limited** 

Allen Mills Howard Limited Chartered Accountants & Statutory Auditors Lewis House 56, Manchester Road Altrincham Cheshire WA14 4PJ 



**The Ryleys School Limited** 

**Contents of the Financial Statements for the year ended 31[st] August 2021** 

||Page|
|---|---|
|Report of the Trustees|1 - 6|
|Report of the Independent Auditors|7 - 9|
|Statement of Financial Activities|10|
|Balance Sheet|11|
|Statement of Cash Flows|12|
|Notes to the Financial Statements|13 – 23|





## **The Ryleys School Limited** 

## **Report of the Trustees** 

## **for the year ended 31[st] August 2021** 

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st August 2021.   The trustees have adopted the provisions of 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 (FRS102) effective 1 January 2019). 

## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number** 895208 (England and Wales) 

## **Registered Charity number** 

525915 

## **Registered office** 

The Ryleys School Ryleys Lane Alderley Edge Cheshire SK9 7UY 

## **Trustees** 

A Hudson J Lort-Limond M Benson I Brown D Lampard 

## **Company Secretary** 

A Jones 

**Head** J Langford 

## **Auditor** 

Allen Mills Howard Limited Chartered Accountants & Statutory Auditors 56 Manchester Road Altrincham Cheshire WA14 4PJ 

## **Bankers** 

NatWest Bank Plc Bank of Scotland 52 London Road Box 1000 Alderley Edge BX2 1LB SK9 7EF 

## **Solicitors** 

DWF 1 Scott Place 2 Hardman Street Manchester M3 3AA 

1 



## **The Ryleys School Limited** 

## **Report of the Trustees for the year ended 31[st] August 2021** 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Governing document** 

The charity is controlled by its memorandum and articles of association and constitutes a limited company, limited by shares as defined by the Companies Act 2006. 

## **Induction and training of new trustees** 

New governors are elected by the Board of Governors and introduced to the workings of the School, the Company and Charity at an induction meeting arranged by the Chair of Governors, Head Teacher and the School Business Manager. Copies of appropriate documentation are provided, and training is provided. Governors are drawn from a wide spread of professional, business and other backgrounds whilst maintaining a mix of genders. 

## **Organisational structure** 

The Governing Body meet regularly and determine the general policy of the school. Specific areas of business are delegated to sub-committees which meet regularly throughout the year. The Head Teacher and the School Business Manager are responsible, in association with the senior management team, for the day to day management of the school. The Ryleys School has a close relationship with Alderley Playing Fields Limited which owns the playing fields that are used by the school. The two entities are related parties due to the common trustees in place. 

## **Risk management** 

The Governors have implemented and approved processes for risk management. Detailed consideration and management of risks are delegated to the Head Teacher, School Business Manager and senior management team who report to the Board. The Governors are risk conscious and review the major risks that the school faces on a regular basis and are satisfied that the major risks are managed and mitigated to an adequate extent. The Governors believe that the maintenance of reserves and an annual review of the controls over key financial systems should provide sufficient resources in the event of adverse conditions. The Governors recognise that systems can only provide reasonable but not absolute assurances that major risks are adequately managed. 

## **OBJECTIVES AND ACTIVITIES Objectives and aims** 

The school’s objects are set out in the Memorandum and Articles of Association and its principal activity continued to be that of the advancement of education through the running and administration of a preparatory school. The school aims for the highest quality of academic tuition and the development of wide sporting artistic and social skills in all its pupils. The school provides an environment in which each pupil can develop and fulfil his or her potential with increased selfconfidence and an awareness and understanding of the wider community. The school’s immediate beneficiaries are the pupils whose attendance at our fee-paying school can be funded by parents, guardians, scholarships, bursaries or a combination of these. The local community also benefits by way of access to the facilities that are made available in the ways set out below. The general public are the ultimate beneficiaries of the high-quality educational services provided by the school and the greater awareness of social values that it generates in our pupils. 

## **Strategies and objectives for the year** 

The school’s overall strategic aim is to provide all children with the highest possible standard of education, together with unrivalled extra-curricular provision in a caring environment. 

For the 2020/21 year the Governors set the following objectives: 

- To make sure that every child achieves their academic potential whilst at the Ryleys and is able to progress to the school of their choice at 11+ 

- To provide unrivalled extra-curricular provision 

- To expand communication with parents throughout the year 

- To further increase pupil numbers 

- To continue the improvement in financial results which is strengthening the school’s balance sheet 

The Governors are pleased to report a positive outcome on all of these strategic aims. 

## **Grant making** 

Bursaries are awarded at the discretion of the Governing Body and are means tested. A new scheme was introduced in recent years and this Assisted Places Scheme offers bursaries to pupils currently in the state sector so they may benefit from an independent school education. 

2 



## **The Ryleys School Limited** 

## **Report of the Trustees for the year ended 31[st] August 2021** 

## **REVIEW OF ACHIEVEMENT AND PERFORMANCE FOR THE YEAR** 

## **Operational performance of the school** 

The Autumn Term began in September 2020 with 230 pupils on role which had increased to 250 by the end of the academic year.  The intake continues to be non-selective and co-educational, with pupils coming from a range of backgrounds and possessing a range of abilities. 

Our Y6 pupils once again enjoyed academic successes at 11+, gaining 27 offers from independent secondary schools, including Manchester Grammar School, King’s School and Cheadle Hulme School; four scholarships were also amongst their achievements. This was a fantastic achievement once again for a mixed ability year group which had dealt with last minute changes to exam arrangements due to COVID. 

Despite some ongoing operational regulations due to COVID, the school nonetheless, returned to a full provision in September, including parent events, trips and extra-curricular programme, though we were limited in parental attendance and the mixing of year groups for some events. Therefore, some events were also adapted for outdoors, such as the Remembrance Day Service. 

However, due to the second lockdown in January 2021, the school had to return to online learning apart from key worker children attending in person and parental presence on site was restricted meaning that the usual key events such as the Carol Concert and nativity plays had to be filmed for parents. 

As soon as it was permitted, we once again returned to a full on-site provision, including parent attendance were appropriate such as sports day, trips, parent meetings and the Y6 end of year awards ceremony. 

The school received a significant volume of recognition and thanks from parents for its response to the remote learning programme and how it retained a sense of normality in school for the children, still offering the usual curriculum and extra-curricular programme.  Throughout the period of lockdown and restrictions, the school endeavoured to entirely replicate school life in every respect. 

There was the continuation of The Scholarship Programme with a new intake from Year 3 representing academic, sporting, art and musical talent. The scholars were given the responsibility of completing certain tasks and activities to enhance their development and learning in their specialist subject area.  The scholars continued to be great ambassadors for their subject and role models for others. 

The music programme at The Ryleys School was reduced due to COVID restrictions, but a small number of music examinations were able to take place with the children achieving the highest gradings.  The choirs and orchestras continued to practice and perform, with many performances filmed to share with the school community. 

In the sports department, competitive fixtures were limited, but the children continued to enjoy the full sporting provision in school and inter-house/class competitions. 

The extra-curricular club programme continued to operate throughout the year, though at times, the provision resorted to online activities and had to be modified. When at full provision, the school was able to offer over 30 clubs, all of which significantly enhanced the children’s experience and range of opportunities. 

When restrictions were lifted, the teachers organised and led a variety of day trips including both day and residential trips. These included Snowdonia Adventure Park, Mount Cook, Moorland Adventure, Cadbury’s World, circus performance, Chester, Blue Planet, kit car outing and Knowsley Safari Park.  In school, the children benefited from first aid training and a visit from a chocolatier. 

School community events included Singapore maths workshop, parents’ online safety workshop, curriculum and phonics workshops and meetings which were provided online.  All parents were invited into school for a transition meeting with their child’s new teachers. 

The Social Committee was limited in its activities due to the restrictions on socialising, but provided end of term gifts for the children, gifts for mother and father day occasions, organised a Christmas raffle and summer hamper raffle and paid for the screening of a Christmas production. 

3 



## **The Ryleys School Limited** 

## **Report of the Trustees for the year ended 31[st] August 2021** 

## **Operational performance of the school (continued)** 

The school supported a range of national and local charities such as Children in Need, as well as Sport and Comic Relief. Other fundraisers for charity included the Harvest Festival, Macmillan Coffee Morning and the Reindeer Rush which continued to raise money for a number of very worthy causes including Cancer Research UK, the East Cheshire Hospice, The Salvation Army, Royal Manchester Children’s Hospital and Francis House Children's Hospice. 

In addition to such charity work undertaken by the pupils and parents, the school offered its facilities to a number of local organisations who have been able to offer broad educational facilities to the wider local community These have included: 

- Alderley United football team has used grass and Astroturf pitches on weekends and evenings. 

- Alderley Edge Hockey Club has used the Astroturf on weekends and evenings. 

- Mini Sports has used the on-site facilities. 

- AESG has used the Astro in the evenings and weekends. 

- The Ryleys School bursary scheme continues to award a number of financially assisted places to children who otherwise would have been unable to attend the school. 

The school’s infrastructure has been maintained through a policy of repair, refurbishment and maintenance. 

4 



## **The Ryleys School Limited** 

## **Report of the Trustees for the year ended 31[st] August 2021** 

## **PUBLIC BENEFIT** 

The Governors confirm that they have, when and where necessary to do so, paid regard to the Charity Commissioner’s Guidance on Public Benefit, and in particular to the supplementary Public Benefit Guidance on advancing education and on fee-charging, when considering and making its decisions. 

## **FINANCIAL REVIEW AND GOING CONCERN** 

The summary of the year’s financial activities is set out on page 10 in the attached accounts. The surplus before depreciation and revaluation was £186,910 (2020: Surplus before depreciation £64,419) which has further strengthened the School’s balance sheet. 

Pupil numbers continue to increase allowing the Governors to invest in the facilities and educational provision. 

The School operates well within the banking facilities and the total borrowings remain low in comparison to the asset base. 

## **RESERVES POLICY** 

Note 16 to the financial statements shows the movements on funds for the year. All funds are unrestricted. The Governors have determined that the appropriate level of reserves should be equivalent to twelve weeks expenditure of approximately £500,000. The policy is, therefore, to build up reserves to that level by means of annual operating surpluses supplemented by specific and/or general-purpose appeals from time to time. The Governors have continued to keep the school’s cash resources under review to ensure that they remain adequate to cover the school’s working capital requirements. 

## **FUTURE PLANS** 

The school is fully committed to the provision of co-education and to maintaining the outstanding pupil teacher ratio. It is the aim of the Governors to further increase pupil numbers in successive years to ensure that the school is able to provide the highest standards in academic studies, music, drama and sport as well as providing a wide range of extracurricular activities. The school will, through its charity committee, continue to explore ways in which it can provide and share its educational facilities with others (including local educational groups, clubs or societies) and will maintain and review its bursary scheme. The school will, through the Head teacher, Senior Management Team and staff, continue to review and monitor the school curriculum and work to ensure that educational standards and attainment are to the highest level. 

5 



## **The Ryleys School Limited** 

## **Report of the Trustees for the year ended 31[st] August 2021** 

## **STATEMENT OF TRUSTEES RESPONSIBILITIES** 

The trustees (who are also the directors of The Ryleys School Limited for the purpose of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charity SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. 

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

In so far as the trustees are aware: 

- there is no relevant information of which the charitable company’s auditors are unaware; and 

- the trustees have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. 

## **TRUSTEES’ INDEMNITY ARRANGEMENTS** 

Individual indemnities have been provided to the directors, under which the company has agreed to indemnify the trustees to the extent permitted by law in respect of all liabilities to third parties arising out of, or in connection with, their execution of their powers, duties and responsibilities as trustees of the company. These indemnities are Qualifying Third Party Indemnities Provisions as defined in Section 236 of the Companies Act 2006 and copies are available for inspection in the office during normal school hours. 

## **AUDITORS** 

The auditors, Allen Mills Howard Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. 

This report of the trustees, approved by order of the board of trustees, as the company directors, on 20[th] May 2022 and signed on the board’s behalf by: 

## **M G Benson (Trustee)** 

6 



## **Report of the Independent Auditors to the Members of The Ryleys School Limited** 

## **Opinion** 

We have audited the financial statements of The Ryleys School Limited (the 'charitable company') for the year ended 31st August 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, 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 (United Kingdom Generally Accepted Accounting Practice). 

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 the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. 

In our opinion the financial statements: 

- give a true and fair view of the state of the charitable company's affairs as at 31st August 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **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 UK, including the FRC's Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 20 to the financial statements, 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 directors' 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 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 directors with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Report of the Independent Auditors thereon. 

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. 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. We have nothing to report in this regard. 

## **Opinion on other matters prescribed by the Companies Act 2006** 

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

- the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the Report of the Trustees has been prepared in accordance with applicable legal requirements. 

- . 

7 



## **Report of the Independent Auditors to the Members of The Ryleys School Limited** 

## **Matters on which we are required to report by exception** 

In the 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 Report of the Trustees. 

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

- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees' remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the Statement of Trustees Responsibilities, 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. 

## **Our 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 a Report of the Independent Auditors 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. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 

As part of designing our audit work, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud. 

In particular, we looked at where management made subjective judgements, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. 

We also considered potential financial or other pressures, opportunity and motivation for fraud.  As part of this discussion we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes.  Appropriate procedures included the review and testing of manual journals and key estimates and judgements made by management. 

We made enquiries of management with regards to compliance with applicable laws and regulations and corroborated any necessary evidence to relevant information, for example, minutes of the directors' meetings. 

We addressed the risk of management override of internal controls including testing journals and evaluating whether there was evidence of bias by management that represented a risk of material misstatement due to fraud. 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentation or through collusion.  There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. 

8 



## **Report of the Independent Auditors to the Members of The Ryleys School Limited** 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities.  This description forms part of our Report of the Independent Auditors. 

Mr David Allen FCCA for and on behalf of Allen Mills Howard Limited Chartered Accountants & Statutory Auditors Lewis House 56 Manchester Road Altrincham Cheshire WA14 4PJ 23[rd] May 2022 

9 



## **The Ryleys School Limited (Registered Number: 00895208)** 

## **Statement of Financial Activities (Incorporating an Income and Expenditure Account)** 

## **for the year ended 31[st] August 2021** 

|||**2021**|2020|
|---|---|---|---|
|||**Unrestricted**|Unrestricted|
|||**funds**|funds|
||Notes|**£**|£|
|**INCOME FROM:**||||
|**Donations**||**62,948**|13,609|
|**Charitable activities**||||
|School fees receivable|2|**2,126,779**|1,788,124|
|Other ancillary income|3|**98,437**|85,606|
|**Investments**||||
|Investment income|4|**11,879**|4,239|
|**Other**||||
|Other income|5|**1,947**|85,338|
|||________|________|
|**Total income**||**2,301,990**|1,976,916|
|**EXPENDITURE ON:**|7|||
|Raising funds||**21,481**|7,175|
|Charitable activities||**2,093,599**|1,905,322|
|||________|________|
|||**2,115,080**|1,912,497|
|**SURPLUS BEFORE DEPRECIATION**||||
|**AND OTHER GAINS**||**186,910**|64,419|
|Depreciation||**(106,284)**|(108,655)|
|||________|________|
|**NET INCOME/(EXPENDITURE)**||**80,626**|(44,236)|
|Gain on the revaluation of fixed assets||**1,154,293**|-|
|||________|________|
|**NET MOVEMENT IN FUNDS**||**1,234,919**|(44,236)|
|**RECONCILIATION OF FUNDS**||||
|Funds brought forward||**642,929**|687,165|
|||________|________|
|**FUNDS CARRIED FORWARD**|16|**1,877,848**<br>________|642,929<br>_______|



The Statement of Financial Activities includes all gains and losses recognised in the current and previous years. All results relate to continuing operations. 

The notes form part of these financial statements 

10 



## **The Ryleys School Limited (Registered Number: 00895208)** 

## **Balance Sheet** 

|**FIXED ASSETS**<br>Tangible assets<br>**CURRENT ASSETS**<br>Stock<br>Debtors<br>Cash at bank and in hand<br>**CREDITORS**<br>Amounts falling due within one year<br>**NET CURRENT (LIABILITIES)**<br>**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**<br>**CREDITORS**<br>Amounts falling due after more than one year<br>**NET ASSETS**<br>**UNRESTRICTED FUNDS**<br>Called up share capital<br>General<br>Revaluation<br>**TOTAL FUNDS**|**At 31st August 2021**<br>**2021**<br>2020<br>**Unrestricted**<br>Unrestricted<br>**funds**<br>funds<br>Notes<br>**£**<br>£<br>10<br>**2,308,434**<br>1,231,411<br>**1,072**<br>952<br>11<br>**104,830**<br>106,853<br>**515,077**<br>409,364<br>________<br>________<br>**620,979**<br>517,169<br>12<br>**(683,510)**<br>(736,121)<br>________<br>________<br>**(62,531)**<br>(218,952)<br>________<br>________<br>**2,245,903**<br>1,012,459<br>13<br>**(368,043)**<br>(369,518)<br>________<br>________<br>**1,877,860**<br>642,941<br>________<br>**________**<br>15<br>**12**<br>12<br>16<br>**135,565**<br>18,020<br>16<br>**1,742,283**<br>624,909<br>________<br>________<br>**1,877,860**<br>642,941<br>________<br>________|**At 31st August 2021**<br>**2021**<br>2020<br>**Unrestricted**<br>Unrestricted<br>**funds**<br>funds<br>Notes<br>**£**<br>£<br>10<br>**2,308,434**<br>1,231,411<br>**1,072**<br>952<br>11<br>**104,830**<br>106,853<br>**515,077**<br>409,364<br>________<br>________<br>**620,979**<br>517,169<br>12<br>**(683,510)**<br>(736,121)<br>________<br>________<br>**(62,531)**<br>(218,952)<br>________<br>________<br>**2,245,903**<br>1,012,459<br>13<br>**(368,043)**<br>(369,518)<br>________<br>________<br>**1,877,860**<br>642,941<br>________<br>**________**<br>15<br>**12**<br>12<br>16<br>**135,565**<br>18,020<br>16<br>**1,742,283**<br>624,909<br>________<br>________<br>**1,877,860**<br>642,941<br>________<br>________|
|---|---|---|
|||12<br>18,020<br>624,909<br>________<br>642,941<br>________|



The financial statements were approved by the Board of Trustees on 20[th] May 2022 and were signed on its behalf by: 

M Benson (Trustee) 

I Brown (Trustee) 

The notes form part of these financial statements 

11 



## **The Ryleys School Limited (Registered Number: 00895208)** 

**Statement of Cash Flows for the year ended 31[st] August 2021** 

|**2021**<br>Notes<br>**£**<br>**£**<br>£<br>**Cash generated by operating activities**<br>21<br>**169,881**<br>**Cash flows from investing activities**<br>Purchases of tangible fixed assets<br>**(29,014)**<br>(9,056)<br>Interest receivable<br>**40**<br>374<br>_______<br>_______<br>Net cash from investing activities<br>**(28,974)**<br>**Cash flows from financing activities**<br>Loan repayments in year<br>**(35,194)**<br>(32,532)<br>New borrowing<br>-<br>50,000<br>_______<br>_______<br>Net cash from financing activities<br>**(35,194)**<br>_______<br>**Increase/(decrease) in cash and cash**<br>**equivalents in the year**<br>**105,713**<br>**Cash and cash equivalents at the beginning**<br>**of the year**<br>**409,364**<br>_______<br>**Total cash and cash equivalents at the end**<br>**of the year**<br>**515,077**<br>_______|2020<br>£<br>17,613<br>(8,682)<br>17,468<br>_______<br>26,399<br>382,965<br>_______<br>409,364<br>_______|
|---|---|



The notes form part of the financial statements 

12 



## **The Ryleys School Limited (Registered Number: 00895208)** 

## **Notes to the Financial Statements for the year ended 31[st] August 2021** 

## **1. ACCOUNTING POLICIES** 

## **Charity information** 

The Ryleys School is a private company limited by shares. The company’s registered number and registered office address can be found on the Company Information page. The presentation currency of the financial statements is the Pound Sterling (£). 

## **Basis of preparing the financial statements** 

The financial statements of the charitable company, which is a public benefit entity under FRS102, have been prepared in accordance with the Charities SORP (FRS102) “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 (FRS102) (effective 1 January 2019)’, Financial Reporting Standard 102 ‘ The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006.  The financial statements have been prepared under the historical cost convention, as modified by the revaluation of freehold land and buildings. 

## **Going Concern** 

The trustees consider there are no material uncertainties about the charity’s ability to continue as a going concern. The review of the financial position, reserves level and future plans give trustees confidence the charity remains a going concern for the foreseeable future. 

## **Income** 

Income from school fees represents fees earned in respect of tuition given during the year. Fees received in advance are shown in creditors as deferred income. Fees receivable are stated after deducting bursaries and allowances granted by the school but include contributions received for grants. Local authority income is accounted for on the basis to which it relates. Voluntary income and donations are accounted for on a receivable basis.  Donations received include donated assets and resources generated through the Social Committee. 

## **Expenditure** 

Expenditure is charged to the income and expenditure account on an accrual basis. Expenditure is summarised under functional headings on a direct cost basis. Cost of generating funds are those costs incurred in attracting voluntary income. Charitable activities include expenditure associated with the objects of the School and both the direct costs and support costs relating to this activity. Governance costs include those incurred in the governance of the School and its assets and are primarily associated with constitutional and statutory requirements.  All expenditure is stated inclusive of irrecoverable VAT. 

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charitable activities.  All support costs relate to the running of the school. 

## **Tangible fixed assets** 

Land & freehold property is included at valuation. Valuations are performed at least every five years. All other tangible fixed assets are included at cost. Depreciation is provided at the following annual rates in order to write off each asset over its useful economic life or, if held under a finance lease, over the lease term, whichever is the shorter. 

Land Nil Freehold property Between 20 and 50 years Motor vehicles 25% on cost Fixtures & fittings 15% on cost Computer equipment 25% on cost 

Capital items costing less than £1,000 are written off as an expense as acquired. 

Donated assets are included at fair value. 

An amount equal to the excess of the depreciation charge on revalued assets over the notional historical cost depreciation charge on those assets is transferred annually from the revaluations reserve to the general fund. 

## **Stock** 

Stock, representing academic books and teaching materials, is stated at cost and written off as used. 

13 



**The Ryleys School Limited (Registered Number: 00895208)** 

**Notes to the Financial Statements - continued For the year ended 31[st] August 2021** 

## **1. ACCOUNTING POLICIES – continued** 

## **Debtors** 

Trade and other debtors are recognised at the settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. 

## **Cash at bank and in hand** 

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity date of three months or less from the date of acquisition or opening of the deposit or similar account. Cash placed on deposit for more than one year is disclosed as a fixed asset investment. 

## **Creditors** 

Creditors are recognised where the charity 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. 

## **Taxation** 

As a registered charity, the company is exempt from income tax, corporation tax and capital gains tax, but not value added tax. Irrecoverable value added tax is included in the cost of those items to which it relates. 

## **Fund accounting** 

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. 

## **Government Grants** 

Government Grants are recognised when the grant has been received. 

## **Financial instruments** 

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. 

## **Operating leases** 

Rentals paid under operating leases are charged to the Statement of Financial Activity on a straight-line basis over the period of the lease. 

## **Pensions** 

The school contributes to the Teachers' Pension Defined Benefits Scheme at rates set by the Scheme Actuary and advised to the school by the Scheme Administrator. The scheme is a multi-employer pension scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the school. The scheme is accounted for as a defined contribution scheme and contributions are accounted for when advised as due by the scheme administrator. 

In addition, the company operates a defined contribution pension scheme for non-teaching staff. Contributions payable for the year are charged in the Statement of Financial Activities. 

## **Critical accounting estimates and area of judgement** 

In the applications of the accounting policies, trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 

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. 

## **Share capital** 

The Ryleys School Limited is a charitable company limited by its share capital. The shareholders hold no rights to assets in the event of the charity being wound up and, in these circumstances, the liability in respect of the shareholders is limited to £1 per share. Shareholders do not hold rights to dividends. 

14 



## **The Ryleys School Limited (Registered Number: 00895208)** 

## **Notes to the Financial Statements - continued for the year ended 31[st] August 2021** 

|**2. SCHOOL FEES RECEIVABLE**<br>Fees<br>LEA income<br>**3. OTHER ANCILLARY INCOME**<br>Catering receipts<br>Other<br>**4. INVESTMENTS**<br>Rents received<br>Bank interest<br>**5. OTHER INCOME**<br>Grants receivable|**2021**<br>**£**<br>**2,108,609**<br>**18,170**<br>________<br>**2,126,779**<br>________<br>**2021**<br>**£**<br>**83,568**<br>**14,869**<br>________<br>**98,437**<br>________<br>**2021**<br>**£**<br>**11,839**<br>**40**<br>________<br>**11,879**<br>________<br>**2021**<br>**£**<br>**1,947**<br>________<br>**1,947**<br>________|2020<br>£<br>1,770,310<br>17,814<br>________<br>1,788,124<br>**________**|
|---|---|---|
|||<br>2020<br>£<br>67,408<br>18,198<br>________<br>85,606<br>________|
|||2020<br>£<br>3,865<br>374<br>________<br>4,239<br>**________**|
|||<br>2020<br>£<br>85,338<br>________<br>85,338<br>**________**|



15 



## **The Ryleys School Limited (Registered Number: 00895208)** 

## **Notes to the Financial Statements - continued** 

## **for the year ended 31[st] August 2021** 

## **6. STAFF COSTS** 

|Wages and salaries<br>Social Security costs<br>Pension costs|**2021**<br>**£**<br>**1,249,647**<br>**103,401**<br>**152,221**<br>________<br>**1,505,269**<br>**________**|2020<br>£<br>1,103,820<br>87,466<br>134,287<br>________<br>1,325,573<br>**________**|
|---|---|---|



The total average monthly number of employees during the year was as follows: 

|Direct charitable work<br>Administrative<br>The number of employees whose emoluments exceed £60,000:<br>£60,001 to £70,000<br>£70,001 to £80,000|**2021**<br>**46**<br>**8**<br>________<br>**54**<br>________<br>**2021**<br>-<br>**1**<br>________|2020<br>44<br>8<br>________<br>52<br>**________**|
|---|---|---|
|||<br>2020<br>1<br>-<br>**________**|



## **Key Management Personnel** 

The Key Management Personnel of the charity in charge of directing and controlling, running and operating the charity on a day-by-day basis comprises the trustees and the head teacher. The total amount of employee benefits received by Key Management Personnel for their services to charity was £71,213 (2020: £69,925). 

## **Trustees’ Remuneration** 

In accordance with Clause 7.3 of the Memorandum and Articles of Association, no payment has been made for the benefit of trustees. 

There were no trustees’ expenses paid in the year ended 31[st] August 2021, nor for the year ended 31[st] August 2020. 

16 



## **The Ryleys School Limited (Registered Number: 00895208)** 

## **Notes to the Financial Statements - continued for the year ended 31[st] August 2021** 

## **7. EXPENDITURE** 

|**EXPENDITURE**||||||
|---|---|---|---|---|---|
|**Costs of raising funds**<br>Advertising & marketing<br>Fundraising expenditure<br>**Charitable activities**<br>Staff costs (note 6)<br>Temporary staff<br>Catering<br>Rent, rates and water<br>Insurance<br>Heat & light<br>Medical insurance<br>Office supplies & postage<br>Telephone<br>Cleaning & supplies<br>Repairs and maintenance<br>Classroom materials<br>Equipment hire<br>Transport costs<br>Computer costs<br>Bad debts<br>Training courses<br>Motor and travel<br>Subscriptions & licences<br>Legal & professional<br>Sundries<br>Governance costs (note 8)<br>Finance costs (note 9)<br>**GOVERNANCE COSTS**<br>Auditors’ remuneration<br>Auditors’ remuneration: other services<br>Legal & professional fees<br>Subscriptions & licences|**Direct**<br>**costs**<br>**£**<br>**12,716**<br>**8,765**<br>_______<br>**21,481**<br>________<br>**1,329,180**<br>**-**<br>**166,548**<br>**20,537**<br>**18,028**<br>**57,701**<br>**3,767**<br>**-**<br>**-**<br>**42,133**<br>**36,240**<br>**51,721**<br>**-**<br>-<br>-<br>**25,300**<br>**1,791**<br>-<br>-<br>**19,372**<br>-<br>**18,172**<br>**27,141**<br>________<br>**1,817,631**<br>________|**Support**<br>**costs**<br>**£**<br>**-**<br>-<br>________<br>**-**<br>________<br>**176,089**<br>**6,964**<br>-<br>-<br>-<br>-<br>-<br>**11,286**<br>**9,194**<br>-<br>-<br>-<br>**5,642**<br>**16,947**<br>**17,688**<br>-<br>-<br>**1,939**<br>**23,198**<br>-<br>**7,021**<br>-<br>-<br>________<br>**275,968**<br>________|**2021**<br>**£**<br>**12,716**<br>**8,765**<br>________<br>**21,481**<br>________<br>**1,505,269**<br>**6,964**<br>**166,548**<br>**20,537**<br>**18,028**<br>**57,701**<br>**3,767**<br>**11,286**<br>**9,194**<br>**42,133**<br>**36,240**<br>**51,721**<br>**5,642**<br>**16,947**<br>**17,688**<br>**25,300**<br>**1,791**<br>**1,939**<br>**23,198**<br>**19,372**<br>**7,021**<br>**18,172**<br>**27,141**<br>________<br>**2,093,599**<br>________<br>**2021**<br>**£**<br>**6,732**<br>**8,470**<br>**121**<br>**2,849**<br>________<br>**18,172**<br>________|2020<br>£<br>4,298<br>2,877<br>________<br>7,175<br>**________**||
|||||<br>1,325,573<br>140,351<br>24,969<br>15,386<br>52,861<br>5,525<br>10,989<br>7,611<br>38,151<br>58,229<br>35,896<br>7,313<br>17,039<br>17,070<br>55,782<br>5,904<br>2,068<br>20,809<br>5,919<br>6,953<br>22,208<br>28,716<br>_______<br>1,905,322<br>**________**||
|||||<br>_|<br>2020<br>£<br>6,000<br>11,896<br>729<br>3,583<br>_______<br>22,208<br>**_______**|



## **8. GOVERNANCE COSTS** 

17 



**The Ryleys School Limited (Registered Number: 00895208)** 

## **Notes to the Financial Statements - continued** 

## **for the year ended 31[st] August 2021** 

## **9. FINANCE COSTS** 

|Bank loan interest<br>Bank charges<br>Parent pay charges<br>**. TANGIBLE FIXED ASSETS**<br>**COST/VALUATION**<br>At 1stSeptember 2020<br>Additions<br>Disposals<br>Revaluation<br>**At 31st August 2021**<br>**DEPRECIATION**<br>At 1stSeptember 2020<br>Charge for year<br>Disposals<br>**At 31st August 2021**<br>**NET BOOK VALUE**<br>**At 31st August 2021**<br>At 31stAugust 2020|**Freehold**<br>**Fixtures,**<br>**land and**<br>**fittings and**<br>**buildings**<br>**computers**<br>**£**<br>**£**<br>**2,530,894**<br>**651,817**<br>**12,400**<br>**16,614**<br>**-**<br>**(15,691)**<br>**1,154,293**<br>-<br>**________**<br>**________**<br>**3,697,587**<br>**652,740**<br>________<br>________<br>**1,376,169**<br>**575,579**<br>**71,418**<br>**34,418**<br>**-**<br>**(15,691)**<br>**________**<br>**________**<br>**1,447,587**<br>**594,306**<br>________<br>________<br>**2,250,000**<br>**58,434**<br>**________**<br>**________**<br>1,154,725<br>76,238<br>________<br>________|__<br>__|**2021**<br>**£**<br>**18,197**<br>**6,244**<br>**2,700**<br>______<br>**27,141**<br>______<br>**Motor**<br>**vehicles**<br>**£**<br>**17,887**<br>-<br>**-**<br>-<br>**________**<br>**17,887**<br>________<br>**17,439**<br>**448**<br>**_**<br>**________**<br>**17,887**<br>________<br>**-**<br>**________**<br>448<br>________|2020<br>£<br>20,119<br>6,600<br>1,997<br>________<br>28,716<br>**_______**<br>**Totals**<br>**£**<br>**3,200,598**<br>**29,014**<br>**(15,691)**<br>**1,154,293**<br>**________**<br>**4,368,214**<br>________|2020<br>£<br>20,119<br>6,600<br>1,997<br>_______<br>28,716<br>**_______**|
|---|---|---|---|---|---|
|||||||
|||||**1,969,187**<br>**106,284**<br>**(15,691)**<br>**________**<br>**2,059,780**<br>________||
|||||**2,308,434**<br>**________**||
|||||<br>1,231,411<br>________||



## **10. TANGIBLE FIXED ASSETS** 

Included in cost or valuation of land and buildings is freehold land of £104,000 which is not depreciated (2020: £104,000). 

The historical cost of land and buildings included in the above at a valuation is £1,491,745 (2020: £1,479,345) and the aggregate depreciation thereon would have been £984,028 (2020: £949,529). 

The land and buildings were valued by Savills Plc on 2[nd] December 2021 at Fair Value. Fair Value is defined as the amount for which an asset could be exchanged, a liability settled, or an equity instrument granted could be exchanged, between knowledgeable, willing parties in an arm’s length transaction. 

## **Capital Commitments** 

At 31[st] August 2021 had contracted capital commitments of £nil (31[st] August 2020: £nil). 

18 



## **The Ryleys School Limited (Registered Number: 00895208)** 

## **Notes to the Financial Statements - continued** 

## **for the year ended 31[st] August 2021** 

|**11. DEBTORS:**<br>Trade debtors<br>Other debtors<br>Prepayments and accrued income<br>**12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**<br>Bank loan (note 14)<br>Trade creditors<br>Taxation and Social Security<br>Other creditors<br>Accruals and deferred income<br>Fees received in advance<br>Refundable deposits (note 13a)<br>**Fees received in advance**<br>Brought forward at 1stSeptember 2020<br>Utilised in year<br>Received this year<br>**Carried forward at 31st August 2021**|**2021**<br>**£**<br>**64,554**<br>**25,976**<br>**14,300**<br>________<br>**104,830**<br>________<br>**2021**<br>**£**<br>**24,891**<br>**41,724**<br>**26,498**<br>**3,673**<br>**66,057**<br>**508,167**<br>**12,500**<br>________<br>**683,510**<br>________<br>**452,679**<br>**(452,679)**<br>**508,167**<br>________<br>**508,167**<br>________|2020<br>£<br>65,130<br>18,426<br>23,297<br>________<br>106,853<br>**________**|
|---|---|---|
|||<br>2020<br>£<br>14,913<br>50,760<br>85,107<br>35,963<br>81,699<br>452,679<br>15,000<br>________<br>736,121<br>**________**|
||||



Fees received in advance represent future years’ school fees that have been paid for in advance as at the balance sheet date.  They are therefore deferred and released to the Statement of Financial Activities in the period to which they relate. 

## **13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR** 

|Bank loans (note 14)<br>Refundable deposits (note 13a)<br>Amounts falling due in more than five years:<br>Refundable deposits (note 13a)|**2021**<br>**£**<br>**276,043**<br>**92,000**<br>________<br>**368,043**<br>________<br>**£**<br>**45,800**<br>________<br>**45,800**<br>________|2020<br>£<br>303,018<br>66,500<br>________<br>369,518<br>**________**|
|---|---|---|
|||<br>£<br>9,000<br>________<br>9,000<br>**________**|



19 



## **The Ryleys School Limited (Registered Number: 00895208)** 

## **Notes to the Financial Statements - continued** 

## **for the year ended 31[st] August 2021** 

- **13a.** Parents pay a deposit when a pupil joins the school. Assuming the pupil remains in the school, the deposits are expected to be refundable as follows: 

|Amounts due:<br>Within one year<br>Between two and five years<br>More than five years<br>**BANK LOANS**<br>An analysis of the maturity of the bank loan is given below:<br>Amounts falling due within one year or on demand<br>Amounts falling due between two and five years<br>Amounts falling due after five years|**2021**<br>**£**<br>**12,500**<br>**46,200**<br>**45,800**<br>________<br>**104,500**<br>________<br>**2021**<br>**£**<br>**24,891**<br>________<br>**276,043**<br>________<br>-<br>________|2020<br>£<br>15,000<br>57,500<br>9,000<br>________<br>81,500<br>**________**|
|---|---|---|
|||<br>2020<br>£<br>14,913<br>**________**|
|||<br>295,518<br>**________**|
|||<br>7,500<br>**________**|



## **14. BANK LOANS** 

Bank loans comprise of two loans. The first loan is repayable in monthly instalments over sixty months with a final instalment of an amount sufficient to repay the loan in full. The interest rate is 6.66% over the Base Rate. The loan is secured by a debenture dated 6[th] December 2011 over all assets of the company and a legal charge over the charity’s property. The second loan is repayable in monthly instalments commencing twelve months after the loan was taken. The loan is due to be repaid in full during 2026 at an interest rate of 2.5% per year. 

## **15. CALLED UP SHARE CAPITAL** 

|**Allotted, issued and fully paid:**<br>Number:<br>Class:<br>Nominal Value:<br>12<br>Ordinary<br>£1|**2021**<br>**£**<br>**12**<br>________|2020<br>£<br>12<br>**________**|
|---|---|---|



## **16. MOVEMENT IN FUNDS** 

|**Unrestricted funds**<br>General fund<br>Revaluation reserve<br>**TOTAL FUNDS**|**B/fwd at**<br>**01.09.20**<br>**£**<br>**18,020**<br>**624,909**<br>**________**<br>**642,929**<br>________|**Income Expenditure**<br>**£**<br>**£**<br>**2,301,990**<br>**(2,221,364)**<br>**-**<br>**-**<br>**________**<br>**________**<br>**2,301,990**<br>**(2,221,364)**<br>________<br>________|**Gain on**<br>**Transfers**<br>**Revaluation**<br>**£**<br>**£**<br>**36,919**<br>**-**<br>**(36,919)**<br>**1,154,293**<br>**________**<br>**________**<br>**-**<br>**1,154,293**<br>________<br>________|**C/fwd at**<br>**31.08.21**<br>**£**<br>**135,565**<br>**1,742,283**<br>**________**<br>**1,877,848**<br>________|
|---|---|---|---|---|



20 



**The Ryleys School Limited (Registered Number: 00895208)** 

**Notes to the Financial Statements - continued for the year ended 31[st] August 2021** 

## **17. OPERATING LEASE COMMITMENTS** 

Total operating lease commitments are falling due as follows: 

|**Payable:**<br>Within one year<br>Within two to five years|**Land & buildings**<br>**2021**<br>2020<br>**£**<br>£<br>**220**<br>220<br>**220**<br>440<br>________<br>________<br>**440**<br>660<br>________<br>________|**Other operating leases**<br>**2021**<br>2020<br>**£**<br>£<br>**16,598**<br>17,415<br>**31,272**<br>23,888<br>________<br>________<br>**47,870**<br>41,303<br>________<br>________|
|---|---|---|



## **18. RELATED PARTY TRANSACTIONS** 

The company is controlled by the Board of Governors. 

The school uses the playing fields belonging to Alderley Playing Fields Limited. The trustees of Alderley Playing Fields Limited are also trustees of the school. During the year, Alderley Playing Fields Ltd waived a loan owed from The Ryleys School Limited of £15,070.  At the balance sheet date the amount due to Alderley Playing Fields Limited was £nil (2020: £15,070). 

The children of the Governors pay school fees at the standard rates. The Governors did not receive a bursary or any other form of assistance. During the year the Governors paid school fees of £36,012 (2020: £74,346). At 31[st] August 2021 two Governors had paid fees in advance of £20,778 (2020: two Governors £36,106). 

## **19. PENSION SCHEMES** 

The School employees belong to two principal pension schemes: the Teachers’ Pension Scheme (TPS) for its teaching staff, and The People’s Pension for non-teaching staff. The TPS is a defined benefit scheme and The People’s Pension is a money purchase scheme. 

The pension charge for the year was £152,221 (2020: £134,287) and at the year end £3,673 (2020: £16,693) was outstanding. 

The Teachers' Pension Scheme (TPS or scheme) is a statutory, unfunded, defined benefit occupational scheme, governed by the Teachers' Pensions Regulations 2010 (as amended), and the Teachers’ Pension Scheme Regulations 2014 (as amended).  These regulations apply to teachers in schools and other educational establishments, including academies, in England and Wales that are maintained by local authorities.  In addition, teachers in many independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher education may be eligible for membership. 

Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for teachers and lecturers in part-time employment following appointment or a change of contract.  Teachers and lecturers are able to opt out of the TPS. 

21 



## **The Ryleys School Limited (Registered Number: 00895208)** 

**Notes to the Financial Statements - continued for the year ended 31[st] August 2021** 

## **THE TEACHERS' PENSION BUDGETING AND VALUATION ACCOUNT** 

Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and Public Service Pensions Act (2013) and are paid by public funds provided by Parliament.  The TPS is an unfunded scheme and members contribute on a ’pay as you go ‘basis – contributions from members, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Acts. 

The Teachers' Pensions Regulations 2010 require an annual account, the Teachers' Pension Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pension increases).  From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return. 

## **VALUATION OF THE TEACHERS' PENSION SCHEME** 

As a result of the latest scheme valuation employer contributions were increased in September 2019 from a rate of 16.4% to 23.6%. Employers also pay a charge equivalent to 0.08% of pensionable salary costs to cover administration expenses. 

The next valuation is expected to take effect in 2023. 

A copy of the latest valuation report can be found on the Teachers’ Pension Scheme website. 

## **SCHEME CHANGES** 

In December 2018, the Court of Appeal held that transitional protection provisions contained in the reformed judicial and firefighter pension schemes, introduced as part of public service pension reforms in 2015, gave rise to direct age discrimination and were therefore unlawful. The Supreme Court, in a decision made in June 2019, rejected the Government’s application for permission to appeal the Court of Appeal’s ruling and subsequently referred the case to an Employment Tribunal to determine a remedy which will need to be offered to those members of the two schemes who were subject of the age discrimination. 

Since then, claims have also been lodged against the main public service schemes including the TPS. The Department has conceded those in line with the rest of the government. In July 2020 HM Treasury launched a 12-week public consultation which will provide evidence to support the delivery of an appropriate remedy for the affected schemes, including TPS. 

A final remedy will be determined once the results of the consultation are established. 

In December 2019, a further legal challenge was made against the TPS relating to an identified equalities issue whereby male survivors of opposite-sex marriages and civil partnerships are treated less favourably than survivors in same-sex marriages and civil partnerships.  The Secretary of State for Education agreed not to defend the case.  In June 2020, the Employment Tribunal recorded its findings in respect of the claimant.  DfE is currently working to establish what changes are necessary to address this discrimination. 

Any impact of these events will be taken into account when the next scheme valuation is implemented.  This is scheduled to be implemented in April 2023, based on April 2020 data. 

## **20. FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES** 

In common with many other businesses of our size and nature, we use our auditors to assist with the preparation of the financial statements. 

22 



## **The Ryleys School Limited (Registered Number: 00895208)** 

## **Notes to the Financial Statements - continued** 

## **for the year ended 31[st] August 2021** 

## **21. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOWS FROM OPERATING ACTIVITIES** 

|Net movement in funds<br>**Adjustments for:**<br>Depreciation charges<br>Interest receivable<br>Interest payable<br>(Increase)/decrease in stock<br>(Increase)/decrease in trade and other debtors<br>Increase/(decrease) in trade and other creditors<br>**Net cash generated by operating activities**|**2021**<br>**£**<br>**80,626**<br>**106,284**<br>**(40)**<br>**18,197**<br>**(120)**<br>**2,023**<br>**(37,089)**<br>________<br>_<br>**169,881**<br>________|2020<br>£<br>(44,236)<br>108,655<br>(374)<br>20,119<br>1,854<br>6,658<br>(75,063)<br>_______<br>17,613<br>_______|
|---|---|---|



## **22. POST BALANCE SHEET EVENT** 

Since the year end, the charity has extended the maturity date on one of its bank loans from November 2022 to May 2033. The interest rate on the loan will be fixed at 4.37% for five years. After the initial five years, interest will be charged at 3.15% over base. 

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