OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2024-08-31-accounts

REGISTERED COMPANY NUMBER: 00554799 (England and Wales) REGISTERED CHARITY NUMBER: 525919

Trustees' Report and

Audited Financial Statements

for the Year Ended 31 August 2024

for

Terra Nova School Trust Limited (A Company Limited by Guarantee)

Banks Sheridan (Statutory Auditor) Datum House Electra Way Crewe Cheshire CW1 6ZF

Terra Nova School Trust Limited

Contents of the Financial Statements for the year ended 31 August 2024

Page
Trustees' Report 1 to 7
Report of the Independent Auditors 8 to 11
Statement of Financial Activities 12
Balance Sheet 13
Cash Flow Statement 14
Notes to the Cash Flow Statement 15
Notes to the Financial Statements 16 to 27

Terra Nova School Trust Limited (Registered number: 00554799)

Trustees' Report for the year ended 31 August 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT

Status and administration

Terra Nova School was founded in 1897 and was transferred to Terra Nova School Trust Limited, a company limited by guarantee and a registered charity, in 1955. The registered company number is 554799 and the registered charity number is 525919.

The company is limited by guarantee and its governing document is its Memorandum and Articles of Association. Each Governor has undertaken to contribute a maximum of £1 to the assets of the company in the event of its winding up and as such is a member.

The school has an elected Board of Governors who also act as Trustees of the Charity and directors for the purposes of company law. A third of the Governors retire by rotation at each Annual General Meeting and are able to offer themselves for re-election. The Board of Governors meets a minimum of 3 times a year to consider matters of policy and strategy. The Finance and General Purposes Committee ("F & G P"), a sub-committee of the Board, also meets 3 times a year to exercise financial oversight and to prepare advice on other operational matters for the full Board. The Board also operates a Health & Safety Committee and a Safeguarding Committee which also meet 3 times a year to monitor the safety and wellbeing of the school's pupils and staff. Responsibility for the running of the School lies with the Board of Governors.

In line with generally accepted best practice for corporate governance, regular reviews of the Board's range of skills and training are undertaken to determine that the Governors have the necessary breadth of skills and experience. The Board has approved policies which cover conflict of interest, Governors' code of conduct and the recruitment of Governors. Role descriptions have also been drawn up for the Chair of Governors, the Governor who is the nominated safeguarding lead and the normal Governor function.

The remuneration of the Head and Bursar is set by the Board with reference to benchmarking surveys. The remuneration of the Senior Leadership Team is agreed by Governors following the Head's recommendation.

The Governors who served through the year were:

Mrs E J Lees-Jones - Chair Mr M J Grice Mrs E S Stanley Mr A C Dick Mr M A Boulton Ms A R Peak Ms K Campbell Ms L Tulloch Mr B Atkins Mrs Y Lawson

With support from the Governing body, the day-to-day management of the School is overseen by Headmistress Mrs C Westall and Bursar Mr N Parkin. They are supported by a Senior Leadership Team which currently consists of:

Mr M Greenwood Deputy Headteacher and DSL Mrs C Grey Assistant Head Academic Miss R Harper Head of EYFS - departed in April 2024

Page 1

Terra Nova School Trust Limited (Registered number: 00554799)

Trustees' Report for the year ended 31 August 2024

OBJECTIVES AND ACTIVITIES

Objectives and aims

The main objectives that the Governors hoped to focus upon that were detailed in last year's Strategic Report were as follows:

The Governors believe that positive progress has been made on all these objectives during this academic year.

The amount of bursary support reduced during the year to £154k (compared to £179k in 2022-23).

Public benefit

The Governors have complied with the duty to have due regard to the Charity Commission's guidance on public benefit in the course of carrying out their responsibilities.

The school, which is already ethnically and socially diverse, has continued to focus on increasing the accessibility to a wider range of families.

The fees of 13 children were subsidies in full, or in part, in the 2023-24 academic year totalling £154k (compared to £179k in 2022-23) a 13.96% decrease year-on-year.

The school's facilities are made available to sports clubs and other groups when not required by the pupils. Examples of use during this period include:

Each of the constituent parts of the school continue to be involved with raising awareness of and financial support for those less fortunate than themselves both at home and abroad. During the year the following charities have benefited from the care and generosity of our pupils, staff and families: BBC Children in Need; Genes for Jeans and Comic Relief; St Luke's Hospice, The Silklife Food Bank, Macclesfield; The Ocean Cleanup.

Page 2

Terra Nova School Trust Limited (Registered number: 00554799)

Trustees' Report for the year ended 31 August 2024

Governors' responsibilities statement

The Governors, who are also directors for the purposes of company law, are responsible for preparing the Trustees report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

In preparing these financial statements, the Trustees are required to:

The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.

Child protection

The school is committed to maintaining thorough and continuing child protection policies and procedures in accordance with legislation and good practice.

Statement of disclosure of information to auditors

The Governors who were in office on the date of the approval of these financial statements have confirmed that as far as they are aware there is no relevant audit information of which the auditors are unaware. Each of the Governors has confirmed that they have taken all the steps that they ought to have taken as Governors in order to make themselves aware of any relevant information and to establish that the auditors are aware of that information.

Fundraising

The charity had no fundraising activities requiring disclosure under S162A of the Charities Act 2011.

Auditors

Banks Sheridan have been appointed as the Charitable Company's auditors and have expressed their willingness to continue in office as auditors.

Page 3

Terra Nova School Trust Limited (Registered number: 00554799)

Trustees' Report for the year ended 31 August 2024

STRATEGIC REPORT Financial position

The results for the period to 31 August 2024 are as follows:

Net Income per accounts £4.1k
Depreciation £132.6k
Adjusted Net Income £136.7k

Terra Nova Schools Trust Limited has an adjusted net income of £136.7k for the 2023-24 academic year, with a reported £4.1k accounting income following the deduction of depreciation. This compares to a deficit of £433.8k in the 2022-23 academic year. This has been achieved by maintaining operational costs at a consistent level while increasing the number of fee paying students.

For the 2023-24 academic year:

The amount of cash and cash equivalents at the year-end was £902.4k vs. (£929.3k in 2022-23). This indicates cashflow stability and clearly denotes the work being carried out to safeguard the finances of the school.

Creditors

Creditors' amount falling due within one year has increased to £1.92m (2023: £1.44m). This is predominantly due to an increase in fees paid in advance and deferred income.

Trade creditors have decreased to £118.3k - (£257.4k in 2022-23). These are accounted for, but do not require immediate payment, these are as follows:

Sureties have reduced to £124.4k vs. (£138.4k in 2022-23). This is due to several being donated to the bursary fund at year end.

Reserves policy

The Governors currently have a policy to maintain available cash reserves at a level of at least £250k. This is reviewed based on activities and the nature of the charitable company's income streams. As the charitable company's greatest costs are those for teaching and ancillary staff, the Governors ensure that adequate cash reserves are held to meet this commitment.

The calculation of the required reserves is an integral part of the charitable company's planning, budget and forecasting processes and takes into account the risks involved with income and expenditure streams

being different from that budgeted, the expected levels of pupils in the various parts of the school, and the financial commitments of the school. The reserves policy will be reviewed annually, with the review considering expected pupil and fee levels, together with future needs and opportunities.

Page 4

Terra Nova School Trust Limited (Registered number: 00554799)

Trustees' Report for the year ended 31 August 2024

STRATEGIC REPORT

Financial and risk management objectives and policies

Risk management

The Board of Governors is responsible for the management of risks faced by the school. Operational management of these risks is delegated to sub-committees, principally the Finance & General Purposes Committee and the Health & Safety Committee. Procedures have been established to identify, assess and control risks.

The key controls used include:

The Board has considered the major strategic risks facing the school and has prepared a risk analysis which is reviewed at Board meetings. The Governors consider that the most significant risks facing the school currently are

In each case, the potential risks under these categories have been detailed, the potential impact on the School assessed and existing controls noted. Any further actions needed to further mitigate the risks have also been identified. These include:

Pupil numbers

The school continues to invest in targeted marketing to improve recruitment of pupils from both the UK and internationally. The school focuses on retention of existing families through targeted communication and excellent parent partnership.

Political change

The school has maintained its links with local and national agencies and continues to scenario plan and prepare for future challenges, including the confirmation of VAT on school fees from January 2025 and the removal of business rate support from April 2025.

Regulatory and Pension compliance

The school has procedures for the Senior Leadership Team and the Board to monitor and approve regulatory requirements. Compliance with pension schemes including the 'Teachers Pension Scheme' continues to be a key priority for Terra Nova School. This includes the annual review and audit of these schemes.

Reputational Risk

Currently, almost all of the income is generated from parents of pupils through fee and related income.The school is reliant on continuing to attract applicants in sufficient numbers by maintaining its reputation for the highest educational standards and an ethos that parents wish to invest in for their children. The Board of Governors continue to review to ensure that student success and achievement are closely monitored and review parental satisfaction surveys to ensure that the school's values and ethos continue to be attractive to parents.

Safeguarding and child protection

The Board of Governors continue to ensure that the highest standards are maintained in the areas of selecting, training and monitoring staff, the operation of child protection policies and procedures, health and safety measures and discipline.

Page 5

Terra Nova School Trust Limited (Registered number: 00554799)

Trustees' Report for the year ended 31 August 2024

STRATEGIC REPORT

Staffing

The success of the school is heavily reliant on the quality of its staff. The Board of Governors monitor and review policies and procedures to ensure continued development and training of staff as well as ensuring these is clear succession planning.

Future plans

Plans for future periods

The Governors have identified two key elements within the school's strategic plan to drive future development. These are the continued development of the school and expansion of the "Terra Nova" brand in order to raise pupil numbers together with the continued offer of boarding.

The Governors will continue to focus on the curriculum and the classroom resources available in relation to the school's aim of continually enhancing teaching and learning. The Governors also recognise the need to continue to expand access to the School and plan to maintain the commitment to means tested bursaries.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Refer to page 1 for the relevant details.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

00554799 (England and Wales)

Registered Charity number

525919

Registered office

Jodrell Bank Holmes Chapel Cheshire CW4 8BT

Trustees

Mrs E J Lees-Jones Chair Ms A R Peak Mrs E S Stanley J P Standen (resigned 6.11.23) Dr M A Boulton M J Grice Vice Chair Ms K J Campbell A C Gilchrist-Dick L E Tulloch B Atkins (appointed 1.10.23) Y Lawson (appointed 1.10.23)

Company Secretary

N J Parkin

Senior Statutory Auditor Stuart Banks FCA

Page 6

TerrA Nova School Trust Llmlted (Registered Dumbtr,. iH1554799) Trus¢ee$' Report for tb¢ year eDded 31 August 2024 REFERENCE AND ADMINISTRATIVE DETAILS Auditors Banks Sheridan (Statutory Auditor) Datutn House Electra Way Crewe Cheshtre CWI 6ZF EVEI¥TS SINCE THE END OF THE YEAR Inforn]ation relating to evettts since the ettd of the yeRr is given in the notes to the finaDciat Statements. TRUSTEES, RESPONSIBILITY STATEMENT The Governors, who are a]50 directors for the purpose% of company law, are respo]Jsible for preparing the Trnstees Report and the financial slatements in accordance with applicable law and United Kingdom Accounting Standards (United Kill8dom Generally A¢¢¢pted Accounting Practice). Company law requires the preparation financial statements for each year which give a true arjd fair view of the state of affairs of the charitable company and the incoming resources alld applic4Ltion of re50urces, including the income and expenditur¢. for thatperiod. In preparing these financial statefftenls, the Governors are requAr¢d to.. 8el¢¢¢ suitable aceounting policie5 and then apply consistently,. observe the methods and prillciples in the ?ppli¢able Charities SORP. make judgments aDd accounting estimates tbat are reusonabLe and prndent. state whether applicable UK Accounting StandaTds have been followed. subject to any mat¢rtal departLWeS disc105ed and explailltd in the fJnaDcial statern¢nts,' prepare the fu]anLial 5tsternents on th¢ going concem basis it is inappropTiat¢ to presurne that the charity will conlinue ill business. The Governor5 are responsible for keeping adequate accollnting records that uie sufficient ts) show and explain the Lharity'¥ tTansactions and disclose wryth reasonable aeeuraoy at any time the finallcial position of the chartty 8nd enabl¢ them to ensure that the fin4mcial statements comply with the Companie5 Act 2(M)6. Th¢y are also respotJsibl¢ for safeguardinb the assets of the charity and h¢n¢e for taking reasonable ￿tepS for the prev¢ntion end detection of fraud and other ifTegularities. AUDITORS The auditors, Banks Sheridan (Stathtory Auditor), will be proposed for re-appointmenl at the forth¢omin8 ADnuaI General M¢eting. Trnstees, report, incorporating a strategic report, approved by order of the board of tnL%tee4 as the company dir¢ctors, on ...lQ..•.Q.l..f..IS................. and SI￿ on the board's brhalf by: e¥- nes- Trust¢¢

Report of the Independent Auditors to the Members of Terra Nova School Trust Limited

Opinion

We have audited the financial statements of Terra Nova School Trust Limited (the 'charitable company') for the year ended 31 August 2024 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).

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 UK, including the FRC'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 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, except to the extent otherwise explicitly stated in our report, 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 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. 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 the audit:

Page 8

Report of the Independent Auditors to the Members of Terra Nova School Trust 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 Trustees' Report.

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:

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.

Page 9

Report of the Independent Auditors to the Members of Terra Nova School Trust Limited

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with law and regulations

We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the charitable company, and its industry, we identified that the principal risks of non-compliance with laws and regulations related to Charities Act 2011, Charities SORP (FRS 102) pensions legislation, employment regulation and health and safety regulation. We considered the extent to which non-compliance might gave a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.

We evaluated the trustees and management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgement and assumptions in significant accounting estimates and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

Our audit procedures in relation to fraud included but were not limited to:

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with the trustees. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misinterpretations or the override of internal controls.

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.

Page 10

RepDrt of ¢he IDdependent Audltor5 to the Members of Terra Iyova School Trust Llmited Use of our report Thi.% report is made solely to the eharitable cO￿panY'S members, as a body, ill accordance with ChapteT 3 of Part 16 of the Companies Act 2006. Our audit has been ulldertaken so t]￿t We Enigbt state to the charitable cornpaTLy'S members those matters we are required to state to them in on auditors, report and for no other purpose. To the fullest extent pern)itted by law, we do not accepl or assume resEK)nsibility to anyone other than the charitable cotnpany and the charitable company's memb¢r8 as 4 body, for our audit worl for this report, or for the opinions we have for￿￿. Stuart Batths FCA {Senior Statutory Auditor) for and on behalf of Banks SI￿ldall (Statutory Auditor) Dalum House Electra Way Cheshire CWI 6ZF Date.. I I fotsrL

Terra Nova School Trust Limited

Statement of Financial Activities for the year ended 31 August 2024

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Other trading activities
3
Investment income
4
Total
EXPENDITURE ON
Charitable activities
5
Staff costs
Education costs
Motor & travel costs
Premises costs
General administration costs
Legal & professional costs
Depreciation costs
Interest payable
Governance costs
Total
NET INCOME/(EXPENDITURE)
Transfers between funds
17
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
25,400
3,821,195
12,730
3,859,325
2,531,949
479,764
38,984
433,438
143,879
77,916
132,619
1,534
27,814
3,867,897
(8,572)
18,105
9,533
1,145,068
1,154,601		 Restricted
funds
£
28,353
(15,703)
-
12,650
-
-
-
-
-
-
-
-
-
-
12,650
(18,105)
(5,455)
261,289
255,834		 2024
Total
funds
£
53,753
3,805,492
12,730
3,871,975
2,531,949
479,764
38,984
433,438
143,879
77,916
132,619
1,534
27,814
3,867,897
4,078
-
4,078
1,406,357
1,410,435		 2023
Total
funds
£
20,747
3,412,445
7,316
3,440,508
2,490,124
505,819
32,693
410,149
163,072
110,972
140,601
2,910
17,930
3,874,270
(433,762)
-
(433,762)
1,840,119
1,406,357

The notes form part of these financial statements

Page 12

Terra Nova School Trust Limited (Registered number: 00554799)

Balance Sheet 31 August 2024

Notes
FIXED ASSETS
Tangible assets
11
CURRENT ASSETS
Stocks
12
Debtors
13
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
15
NET ASSETS
FUNDS
17
Unrestricted funds
Restricted funds:
Old appeals
Centenary appeal
Kennedy fund
SENCO
Bursary fund
New playground 2024
OTN - School repair fund
TOTAL FUNDS		 Unrestricted
funds
£
1,416,371
20,279
899,297
898,212
1,817,788
(1,924,254)
(106,466)
1,309,905
(155,304)
1,154,601		 Restricted
funds
£
251,580
-
-
4,254
4,254
-
4,254
255,834
-
255,834		 2024
Total
funds
£
1,667,951
20,279
899,297
902,466
1,822,042
(1,924,254)
(102,212)
1,565,739
(155,304)
1,410,435
1,154,601
78,645
48,603
69,960
30,273
-
24,099
4,254
255,834
1,410,435		 2023
Total
funds
£
1,736,826
12,446
190,398
929,359
1,132,203
(1,440,314)
(308,111)
1,428,715
(22,358)
1,406,357
1,145,068
83,743
58,625
72,080
31,138
15,703
-
-
261,289
1,406,357

The financial statements were approved by the Board of Trustees and authorised for issue on 30 January 2025 and were signed on its behalf by:

E J Lees-Jones - Trustee

The notes form part of these financial statements

Page 13

Terra Nova School Trust Limited

Cash Flow Statement for the year ended 31 August 2024

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest element of hire purchase payments
paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Capital repayments in year
Net cash used in financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2024
£
47,967
(1,534)
46,433
(63,744)
-
(63,744)
(9,582)
(9,582)
(26,893)
929,359
902,466		 2023
£
134,250
(2,910)
131,340
(11,342)
476
(10,866)
(8,825)
(8,825)
111,649
817,710
929,359

The notes form part of these financial statements

Page 14

Terra Nova School Trust Limited

Notes to the Cash Flow Statement for the year ended 31 August 2024

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Depreciation charges
Loss on disposal of fixed assets
Interest element of hire purchase and finance lease rental payments
Increase in stocks
Increase in debtors
Increase in creditors
Net cash provided by operations		 2024
£
4,078
132,619
-
1,534
(7,833)
(708,899)
626,468
47,967		 2023
£
(433,762)
139,422
26
2,910
(12,311)
(11,046)
449,011
134,250

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.23 Cash flow At 31.8.24
£ £ £
Net cash
Cash at bank and in hand 929,359 (26,893) 902,466
929,359 (26,893) 902,466
Debt
Finance leases (31,951) 9,582 (22,369)
(31,951) 9,582 (22,369)
Total 897,408 (17,311) 880,097

The notes form part of these financial statements

Page 15

Terra Nova School Trust Limited

Notes to the Financial Statements for the year ended 31 August 2024

1. ACCOUNTING POLICIES

General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Terra Nova School, Jodrell Bank, Holmes Chapel, Cheshire, CW4 8BT.

Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard appliable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Companies Act 2006.

Basis of preparing the financial statements

The financial statements have been prepared in accordance with 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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Going concern

The Trustees consider that the level of unrestricted funds is sufficient to meet the working capital requirements of the company. The Trustees have implemented a forward strategy to improve the future performance of the company to ensure the company is able to continue in existence for the foreseeable future.

The Trustees are not aware of any other uncertainties regarding the company's ability to continue as a going concern and after reviewing the company's post year end income documentation and forecasts, the Trustees are satisfied that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing it's financial statements.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported. These estimates and judgments are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Useful economic lives of tangible assets

The annual depreciation charges for the tangible assets are sensitive to changes in the estimate useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 11 for the carrying amount of the tangible assets and 'Tangible fixed assets' accounting policy for the useful lives for each class of asset.

Impairment of debtors

The school makes an estimate of the recoverable value of trade and other debtors. Where assessing the impairment of trade and other debtors, management considers factors including the ageing profile of debtors and historical experience. See note 13 for the net carrying amount of the debtors.

Fund accounting

Unrestricted funds

These are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.

Designated funds

These are unrestricted funds earmarked by the trustees for particular purposes.

Restricted funds

These are available for use subject to restrictions imposed by the donor or through terms of an appeal.

continued...

Page 16

Terra Nova School Trust Limited

Notes to the Financial Statements - continued for the year ended 31 August 2024

1. ACCOUNTING POLICIES - continued

Income

Recognition of income

Income from contracts for the supply of services is included in the Statement of Financial Activities (SoFA) when the school becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability.

Fees receivables are stated after deducting allowances, scholarships and other remissions granted by the school.

Income with related expenditure

Where income has related expenditure the income and related expenditure is reported gross in the SoFA.

Donations and legacies

Voluntary income received by way of grants, donations and gifts is included in the the SoFA when receivable and only when the Charity has unconditional entitlement to the income.

Investment income

This is included in the accounts when receivable.

Other income

This is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Expenditure

Recognition of expenditure

Expenditure is recognised on an accrual's basis. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates.

Expenditure on raising funds

These comprise the costs associated with attracting voluntary income, fundraising trading costs and investment management costs.

Expenditure on charitable activities

These comprise the costs incurred by the Charity in the delivery of its activities and services in the furtherance of its objects, including the making of grants and governance costs

Governance costs

These include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees, costs linked to the strategic management of the Charity, together with a share of other administration costs.

Other expenditure

These are support costs not allocated to a particular activity.

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates so as to write off their cost less residual amounts over their estimated useful economic lives. Assets are also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the assets carrying amount exceeds its recoverable amount.

Freehold property - Various rates between 2% and 33%
Fixture & fittings - 10% straight line
Computer equipment - 20% straight line
Motor vehicles - 25% straight line

continued...

Page 17

Terra Nova School Trust Limited

Notes to the Financial Statements - continued for the year ended 31 August 2024

1. ACCOUNTING POLICIES - continued

Tangible fixed assets

The residual value and useful lives of assets are reviewed and adjusted if appropriate at each statement of financial position date.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making do allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Hire purchase and leasing commitments

The interest element of these obligations is charged to the Statement of Financial Activities over the relevant period. The capital element of the future payments is treated as a liability.

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

Trade and other debtors

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

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Trade and other creditors

Short term creditors are measured at the transaction price. Other creditors and provisions 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. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Fees in advance

Parents may, subject to contractual terms and conditions, pay to the school tuition fees in advance. The money may be returned, subject to specific conditions.

Leased assets

Where the charity enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.

Leases which do not transfer substantially all the risks and rewards of ownership to charity are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the charity at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the charity's policy on borrowing costs.

Assets held under finance leases are depreciated in the same way as owned assets.

continued...

Page 18

Terra Nova School Trust Limited

Notes to the Financial Statements - continued for the year ended 31 August 2024

1. ACCOUNTING POLICIES - continued

Trade and other debtors

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.

Financial instruments

A financial asset of a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Pension costs and other post-retirement benefits

Retirement benefits to employees of the School are provided through two pension schemes, one

defined benefit and one defined contribution. 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 School’s 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 School’s 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. The School also operates a defined contribution pension scheme for non-teaching staff. The regular pension contributions are charged to the statement of financial activities as they are incurred.

2. DONATIONS AND LEGACIES

Donations
Grants		 2024
£
53,753
-
53,753		 2023
£
20,415
332
20,747

Included within donations received are amounts totalling £24,979 relating to the waiver of sureties being repaid once the children have left the school.

Grants received, included in the above, are as follows:

2024 2023
£ £
Other grants - 332

continued...

Page 19

Terra Nova School Trust Limited

Notes to the Financial Statements - continued for the year ended 31 August 2024

3. OTHER TRADING ACTIVITIES

Scholarships, bursaries and other awards were paid to 26 pupils (2023: 26).

Within this means tested bursaries totalling £154k were paid to 10 pupils (2023: £179k for 12 pupils).

4. INVESTMENT INCOME

Bank interest receivable
CHARITABLE ACTIVITIES COSTS
Staff costs
Education costs
Motor & travel costs
Premises costs
General administration costs
Legal & professional costs
Depreciation costs
Interest payable
Governance costs		 Direct
Costs
£
2,531,949
479,764
38,984
433,438
143,879
77,916
132,619
1,534
-
3,840,083		 2024
£
12,730
Support
costs (see
note 6)
£
-
-
-
-
-
-
-
-
27,814
27,814		 2023
£
7,316
Totals
£
2,531,949
479,764
38,984
433,438
143,879
77,916
132,619
1,534
27,814		 2023
£
7,316
3,867,897

5. CHARITABLE ACTIVITIES COSTS

6. SUPPORT COSTS

SUPPORT COSTS
Governance
costs
£
Governance costs 27,814

7. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2024 2023
£ £
Auditors' remuneration 6,000 5,100
Depreciation - owned assets 132,619 139,422
Hire of plant and machinery 3,161 3,501
Deficit on disposal of fixed assets - 26
Auditors remuneration - non audit services 9,664 -

continued...

Page 20

Terra Nova School Trust Limited

Notes to the Financial Statements - continued for the year ended 31 August 2024

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2024 nor for the year ended 31 August 2023.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2024 nor for the year ended 31 August 2023.

9. STAFF COSTS

STAFF COSTS
Wages and salaries
Social security costs
Other pension costs		 2024
£
1,997,243
184,242
336,514
2,517,999		 2023
£
1,954,808
184,235
314,831
2,453,874

Teachers' Pension Scheme

The school participates in the Teachers' Pension Scheme ("the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £320,353 (2023: £302,132) and at the year-end £36,892. (2023 - £32,639) 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 2020 and the Valuation Report, which was published in October 2023.

As from 1 April 2024 the employer contribution increased from 23.6% to 28.6%. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 28.68%.

Support Staff Pension Scheme

Support staff are entitled to join a defined contribution scheme operated by NOW. Contribution rates are 5% by the employee and 3% by the school.

During the year there were redundancy and termination costs which amounted to £24,926 which were outstanding at the year end.

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

Teaching Staff
Clerical/administrative/boarding staff
Manual workers		 2024
55
14
8
77		 2023
54
15
6
75

continued...

Page 21

Terra Nova School Trust Limited

Notes to the Financial Statements - continued for the year ended 31 August 2024

9. STAFF COSTS - continued

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

£60,001 - £70,000
£90,001 - £100,000
10.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
20,464
Other trading activities
3,412,445
Investment income
7,316
Total
3,440,225
EXPENDITURE ON
Charitable activities
Staff costs
2,490,124
Education costs
505,819
Motor & travel costs
32,693
Premises costs
410,149
General administration costs
163,072
Legal & professional costs
110,972
Depreciation costs
140,601
Interest payable
2,910
Governance costs
17,930
Total
3,874,270
NET INCOME/(EXPENDITURE)
(434,045)
Transfers between funds
52,129
Net movement in funds
(381,916)
RECONCILIATION OF FUNDS
Total funds brought forward
1,526,984
TOTAL FUNDS CARRIED FORWARD
1,145,068		 2024
1
1
2
Restricted
funds
£
283
-
-
283
-
-
-
-
-
-
-
-
-
-
283
(52,129)
(51,846)
313,135
261,289		 2023
1
1
2
Total
funds
£
20,747
3,412,445
7,316
3,440,508
2,490,124
505,819
32,693
410,149
163,072
110,972
140,601
2,910
17,930
3,874,270
(433,762)
-
(433,762)
1,840,119
1,406,357

continued...

Page 22

Terra Nova School Trust Limited

Notes to the Financial Statements - continued for the year ended 31 August 2024

11. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
COST
At 1 September 2023
Additions
Disposals
At 31 August 2024
DEPRECIATION
At 1 September 2023
Charge for year
Eliminated on disposal
At 31 August 2024
NET BOOK VALUE
At 31 August 2024
At 31 August 2023		 Freehold
property
£
2,842,175
36,036
-
2,878,211
1,497,289
67,659
-
1,564,948
1,313,263
1,344,886		 Fixtures
and
fittings
£
754,923
21,399
(210,772)
565,550
383,395
55,082
(210,772)
227,705
337,845
371,528		 Computer
equipment
£
324,119
6,309
(237,985)
92,443
303,707
9,878
(237,985)
75,600
16,843
20,412		 Totals
£
3,921,217
63,744
(448,757)
3,536,204
2,184,391
132,619
(448,757)
1,868,253
1,667,951
1,736,826

Tangible fixed assets with a carrying value of £25,561 have been pledged as security for the company's hire purchase loan.

12. STOCKS

Stocks
13.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Prepayments and accrued income		 2024
£
20,279
2024
£
720,852
73,966
104,479
899,297		 2023
£
12,446
2023
£
108,112
-
82,286		 2023
£
12,446
190,398

Trade debtors are shown net of a bad debt provision of £16,458 (2023: £89,668).

continued...

Page 23

Terra Nova School Trust Limited

Notes to the Financial Statements - continued for the year ended 31 August 2024

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

14.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024
£
Hire purchase (see note 16)
9,593
Trade creditors
118,381
Social security and other taxes
76,184
Other creditors
-
Sureties
124,403
Deferred income
962,599
Fees in advance
578,292
Accrued expenses
54,802
1,924,254
15.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024
£
Hire purchase (see note 16)
12,776
Fees in Advance
142,528
155,304		 2023
£
9,593
257,442
73,804
8,808
138,453
748,912
142,528
60,774
1,440,314
2023
£
22,358
-
22,358

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts Hire purchase contracts Hire purchase contracts
2024 2023
£ £
Net obligations repayable:
Within one year 9,593 9,593
Between one and five years 12,776 22,358
22,369 31,951
Non-cancellable operating
leases
2024 2023
£ £
Within one year 8,921 7,802
Between one and five years 48,214 -
In more than five years 2,545 -
59,680 7,802

continued...

Page 24

Terra Nova School Trust Limited

Notes to the Financial Statements - continued for the year ended 31 August 2024

17. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Restricted funds
Old appeals
Centenary appeal
Kennedy fund
SENCO
Bursary fund
New playground 2024
OTN - School repair fund
TOTAL FUNDS
Net movement in funds, included in the above ar
Unrestricted funds
General fund
Restricted funds
Bursary fund
New playground 2024
OTN - School repair fund
TOTAL FUNDS		 At 1.9.23
£
1,145,068
83,743
58,625
72,080
31,138
15,703
-
-
261,289
1,406,357
e as follows:		 Net
movement
in funds
£
(8,572)
-
-
-
-
(15,703)
24,099
4,254
12,650
4,078
Incoming
resources
£
3,859,325
(15,703)
24,099
4,254
12,650
3,871,975		 Transfers
between
funds
£
18,105
(5,098)
(10,022)
(2,120)
(865)
-
-
-
(18,105)
-
Resources
expended
£
(3,867,897)
-
-
-
-
(3,867,897)		 At
31.8.24
£
1,154,601
78,645
48,603
69,960
30,273
-
24,099
4,254
255,834
1,410,435
Movement
in funds
£
(8,572)
(15,703)
24,099
4,254
12,650
4,078

continued...

Page 25

Terra Nova School Trust Limited

Notes to the Financial Statements - continued for the year ended 31 August 2024

17. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

At 1.9.22
£
Unrestricted funds
General fund
1,526,984
Restricted funds
Old appeals
88,841
Centenary appeal
68,647
Kennedy fund
74,200
SENCO
32,003
Bursary fund
15,420
Timpson fund
34,024
313,135
TOTAL FUNDS
1,840,119
Comparative net movement in funds, included in the above are as
Unrestricted funds
General fund
Restricted funds
Bursary fund
TOTAL FUNDS		 Net
movement
in funds
£
(434,045)
-
-
-
-
283
-
283
(433,762)
follows:
Incoming
resources
£
3,440,225
283
3,440,508		 Transfers
between
funds
£
52,129
(5,098)
(10,022)
(2,120)
(865)
-
(34,024)
(52,129)
-
Resources
expended
£
(3,874,270)
-
(3,874,270)		 At
31.8.23
£
1,145,068
83,743
58,625
72,080
31,138
15,703
-
261,289
1,406,357
Movement
in funds
£
(434,045)
283
(433,762)

Transfers between funds

The transfer between restricted funds and unrestricted funds represents an amount equal to depreciation on the capital costs of land, buildings and equipment met by appeal.

18. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 August 2024.

continued...

Page 26

Terra Nova School Trust Limited

Notes to the Financial Statements - continued for the year ended 31 August 2024

19. POST BALANCE SHEET EVENTS

On 6 November 2024 Terra Nova School Trust Limited became registered for VAT.This is due to a change in government legislation regarding VAT being applied to private school fees.

20. LIMITED BY GUARANTEE

The company is limited by guarantee and as such has no such capital. The members (at present 8) are each under obligation to contribute £1 in the event of the winding up of the company.

21. FEES IN ADVANCE

Parents may be subject to contractual terms and conditions, pay to the school tuition fees in advance. The money may be returned, subject to specific conditions but, assuming the relevant pupils remain in the school, advance fees may be applied as follows:

2024 2023
£
142,528
-
-
£
Academic year 2024-25 578,292
Academic year 2025-26 89,836
Academic year 2026-27 38,948
Academic year 2027-28 13,744
142,528
720,820

The balance represents the accrued liability under the contracts.

The movement during the year was as follows:

2024 2023
£ £
Balance at 1 September 2023 142,528 142,528
New contracts 578,292 -
720,820 142,528
Amount utilised in payment of fees to the school - -
720,820 142,528

Page 27