Charity Registration No. 525929 Company Roglstralion No. 00661518 (England and Wales) POWNALL HALL SCHOOL TRUST LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 AUGUST 2020 *ABOYH4HC4 3110312022 COMPANIES HOUSE A25 #207 POWNALL HALL SCHOOL TRUST LIMITED LEGALAND ADMINISTRATIVE INFORMATION Governo Mts E M MxAulay (Chair} Mr T F Barnes MrG D Dawber MT T J IfyÈTeham Mrs L INrthw Mrs N M Vbixd Mr R B WIA4)od Mrs S Kelty Mrs S C Levy Mr M J Erian (AFwinled 7 October 20191 (Resigned 31 May 2020} {ReswJned 29 June 20201 H•adm•ster Mr D GOU1￿UM S•cr•tary Mr D Goulboum Bts8in•68 M•nag•r Mrs P CXK*)t Charlty number 525929 C¢Jmpany numbor OLW1518 Registered officè Pownall Hall School Carrwood Road Pownall Park Imslcm Cheshire SK9 SDW Auditor Josolyne LLP Merchant Exchange aters G￿en Macclesfield Cheshire SK116JX 8ankor8 Lloyds Bank Group Pk 223 Finney Lane Cheadle Cheshire SK8 3PY 'POWNALL HALL SCHOOL TRUST LIMITED CONTENTS Pag• Go¥err￿[s. report Statement of Governors, responsibilit*s Independent audilo¢s report 8-10 Stalemeni of financial actiwlies 11 Statement of financ￿1 position 12 Statement of cash Ikh 13 Notes lo the finanaal statements 14-32 POWNALL HALL SCHOOL TRUST LIMITED GOVERNORS. REPORT (INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 29 AUGUST 2020 The Govemors present their report and financial statements for the year erbded 29 August 2020. The financial statements have been prepared in accordance with the acccwnting poltcies set out in note 1 to the financial statements and c¢)mpty with the sch¢)ol's Memorandum and Articfes of Association. th Companies Act 2006 and "Accounting and Reporting by Charities.. Statement of Recommended Pract" applicable to charrties preparing their a￿lunt$ in ac￿rdanCe with the Financial Reporting Stand rd applicabb in the UK and Republic of Ireland IFRS 1021" las amended for a¢￿Unting periods commencing from 1 January 2016) ObJectO¥es and actlvllles In setting objectives for the S¢h¢)ol and planning its activities. the Governors have given eareful con5iderakn.on to the Charity Commission's general guidance on public benefit and in part￿￿lar lo its supplementary public guidance on advancing education and fee charging. The Governors have for many years offered assistance with fees and the Sthool has been particularly successful in attracting chiklren whose parents would not be ab￿ to afford a full fee paying place. The assistance takes in to account the cost of extra curricular acts"vikn'es. The Govemor$ are also conscious of the role that the School has always played, and continues to play, in the l¢)tal eommunty and this Report sets out details of acts"Vit￿$ whth benefit all sects.ons of that community. H¢)wever we a￿ not Complacent in resFeCt of the public benefil requirements,. on Ihe contrary we are continuously exploring opportunities to enhance the School's *i¥ibes and use all its resources for Ihe benefit of all stran¢Js of the local cornmunty. Our School welcomes pupils Irom all backgrounds. There is no entrance requirernent as such although in the upper forms an initial academic assessment is made, and this #Jentifies the edU￿tiOnal requirements and programme for the child. have made S￿nIficant investsnents in Infrastructu￿ to Cater for the needs of children who are, or become. disabled. The weffare and progress of the chihdren in every respect is a priority commitment and our procedures fxiliLite effecb.ve monrtoring of development and success. The Schod's obsectives are Ihe tharKemenl of educat*)n for 2 to 11 year okl thikjren. The Chanty has also to maintain ils herilage endowment, in particular the Hall which ￿ a gr* 2" listed building and various artefacls. books and woths of art. The Govemors have also emphasised the need to make the School's resources and acts"vrties available to the wmler eommunrty and to contn.bute to the welfare of the cunmunty. The Govemors also make bursarres available and are intent ¢)n achieving a wider access to the School. offering assisled Pla￿ lo children whose parents are unable lo meet the full fees and making the &hool's resources available to the k￿1 communty. Imthin Ihese Objects. the Schoofs is lo prowde a first ¢￿$S independent education, based on excellent 8cademic luilion and extra eurrieular activrties invofving the deveknpmenl of sporting. artistic and social skills in all ts pupils. This is designed to provide an environment in which all pupils can develop and fvifil their potential. both in gaining access to the secondary schod of their choice. and in buikjing seff confidence and a desire to contributé to the wider communty. The focus in the pefiod ended 31 August 2020 and beyond has been on maintaining and Improving academic perfonrtance,. increasing contribubon to the wKler community both by adivity and visibilty in the community and by making the School's resources and actsvilies availab￿ to others", actr¥ety pursuing the development and introduction of a bursary $ch￿ne.. arKI InveSt￿￿t in the S(*KxA's infrastructure and facilitie& The aclivilies which have contributed lo the implemenlalKJn of School's strate9y the achievement of its objectives are dealt with in the next seth.on of this Repjrt. The Governors have paid due regard to guidance tssued by the Charity CommisS￿n in deciding what activities the school should undertake. Straleglc report The descriplKin under the headings "Achievements and perfom)ance" and 'Financial re¥￿. meet the o)mp8ny law requirements for the Govemors lo present a Strateg￿ reporL POWNALL HALL SCHOOL TRUST LIMITED GOVERNORS. REPORT (CONTINUEDI(INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 29 AUGUST 2020 Achlevements and perforniance Education Quality and Compliance Inspection$ were ur¥Jertaken ty Ihe Independent Schools Inspectorate in March 2017. The InsFectors conduded that Ihe qualrty of the pupils. academic and other achievements is excellenl and that the qualty of the pupils. personal development is excellent. Specific mentKJn was made of excellent perfom)ance in every aspect of puyls. e¢Jucat￿1n. The Inspectors mad8 no rewmmendalions themselves but comrnended the objectr¥es in the Sch￿1.$ strategc plan. The results of the Complian Inspe¢lion were simiLarty positive wilh the School meeting the Lknvn stsndards. A further Compliance Inspection in March 2020 ￿Sutted in a Very powtive assessment. Our children continued to attain the hwJhest qualty academic standards. Al the chik1￿n in Fomi 6 achieved passes in the 11+ entrance examinations, and were offered places al the secondary schools of their choice, including Wthington Gids, School, Manchester High School for Girls. Slcrtkp)rt Grammar School. The King's School macc1esf￿1d, Cheadle Hulme School. St 8ede$. Cran￿eY, Alderley Edge School for Girfs and Imslow High Schcrt)l. Our thikdren received 64 offers of pla￿5 including 9 scholarships. The restrictions imposed in March 2020 as a result of the C¢)vid pandemic continued Ihrough the Trinity temi 2020. The School had to physicalty close at very short notice. In the last h¥0 week$ of the Lent term and for most of the Trinity term, lessons were delivered online. The prowsion was comprehensive, cOVe￿d all specialisl as well as Ckss leaching and invofved extensive interaction. supervision and feedback. The Governors recognise thal not onty was a ffirst dass online proviS￿n developed in such a short lime, but that il was also delivered so well by a highly eommrtted team of teaching staff. The Govemors would like to formally thank the Headmaster and his teaching staff for their immense efforts. thanks and appr￿latIOn for whith have also been expressed by many parents. So many 5aKI thal our proviS￿n during this very difficult wa5 second lo none. The Covid pandemic restrictions continued throughout the Trinty terni and as a eonsequence many of the activtties during that nomwlty very active term were cancelled. Although the prirnary focus of the Sthwl is on academic success. all our children participate in rrony extra curricular activities which we consider essential for their devewnent and prepares them for the ryorous demands of secondary sthool and beyond. There is considerable emphasis on music and drama. Many of the children passed music examinations and almost all are invow in choral actNI1￿$. The Aderley Edge and Hazel Grove Festivals were cancelled due to the pandemic. The majority of the senior school participated in excellent products'ons throughout the year. outstsnding perf0m￿nceS wh￿h reeeived numerous accolades. All children in the School sung and performed in numerous con￿rtS and plays. Our choirs paiticipatsd in m￿Y public, as well as internal, performances during the year. Sport continues to be an integral part of our chiklren's acbvities and opportunities. and the am weather hard court, which was originally ffinanced by a specific and generous donation from our Parents. Association, was extended and improved, again ffinanced by our Parents, Commrttee and is used extensivety for football, hockey. tennis, netball and other sports. This togethef With the Sports Hall and tyjr extensive external facilities provides for a variety of sporting actNi1￿$ in which our children participate with great enthusiasm, enjoyment and success. Tennis, football, hockey. crithet. netball. crossod Mrs S Kelly (ResffJned 31 May 2020) (ReS￿ned 29 June 2020) {Appointed 7 Oclober 2019) In aecordance with theArticles ofAssoeiation, Mr R B W Mrs N Ihwood and Mrs S Kelty will retire by rotation at the forthcoming AGM. and being eligible. will offer themselves'for Teele￿10n. The Trust does not have any Sha￿ capilal bul each Govemor is guawtor to the exlenl of £1. No Governor ha$ a beneficial interest in the Trust. Govemors are elected by The 8oard of Govemors hawng regard to the skills requirements ofthe Board. Each Governor contributes a Speerf￿ area of expertise re*￿t lo the management of the Schcd. The Govern￿$, as the Charity Trus¢￿. are legalty responsible for the overall management and control of the School and meel al least five times a year. The work of iMp￿Menting most of the policies laid down by the Board of Governors and the day to day management of the School is undertaken by the executs.ve senior management tearn under the Supe￿iS1On of Ihe BMC, chaired by the Chair of the Board, vthich meets al least fve times a year before the meetings of the Boaid, and which r￿rn￿ty irKludes the Deputy Chair IFinance Govemorl, Headmaster and Business Manager. Audmor In accordance with the company's articles. a resolulion proposing that Josotyne LLP be reapwnted as auditor of the company will be pul at a General MeetN￿. Dlsclosur• of infomation to auditor Each of the Governors has confimed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant infcffiiation and lo establ￿h that the audilor is ￿are of such information. The Govemors, report, including the strategic rep)rt. was approved by the Board of Govemors. Mr G D D•wb•r Governor POWNALL HALL SCHOOL TRUST LIMITED STATEMENT OF GOVERNORS. RESPONSIBILITIES FOR THE YEAR ENDED 29 AUGUST 2020 The Governors, who a￿ also the directors of Pownall Hall Schod Trust Limited for the purpose of ex*mpany law, are responsible for preparing the Govemors. Report and the finanual ststements in accordance with applicable law and United ￿ngdoM A￿O￿nts'n9 Standard5 (United ￿"ngdoM GenerallyAccepted ALEounbng Practice). Company Law requires the Govemots to wepare financial ststements for each fv￿￿la1 year give a In and fair view of the slate of affairs of the school and of Ihe incoming resources and application of reS￿r¢e$. including the income and expendilure. of the Chantab￿ company for that year. In preparing these financial statements. the Govemcrfs a￿ required to.. - select suitable accounting policies and then appty them consistenty: - observe the methods and principles in the Charilies SORP.. - make judgements and èslimales that are reason* and prudent" - stste whether applicable UK Accounting Standards have been followed. suf4.ecl to any material departures di5elosed and explained in the financial s¢alement$', and - prepare the financial statements on the gorng concem basvs unless it is inappropriate to presum& that the school will continue in operation. The G0vemors.a￿ responsible for keeping adequate accounting records that disclose wrth reasonable accuracy al any time the finanual posibon of the school and enable them to ensure that the finaricial slalerrents compty with the Companie$Acl 2006. They are also resw)n$ible for safeguarding the assets of the schooi and hence for taking reasonable steps for the prevention and detection of fraud ar#J other Kregukrities. POWNALL HALL SCHOOL TRUST LIMITED INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS OF POWNALL HALL SCHOOL TRUST LIMITED Opinion We have audited the financial ststements of PThvnaN Hall Sch()J Trust Limrted (the tchwl.) for the year ended 29 August 2020 whKh comprise the Stslemenl of Finanual ActTvibes, the Ststemenl of Financial Position, the Statement of Cash Fl(v4s and the notes to the financial stalemenl$, includrng a summary of signfficanl accounting poliaes. The financial repprtirw framework that has been applied in their preparation is applicable law and United Kingdom Accounting Stsndards, including Finanoal Rep)rting Stsndard 102 The Finoncial Reporting Sl8ndard applicable fft the UK end Repubk of Ireland (United Kingdom Generally Accepted Accounting Pr8ctsce}. In our opinion, the financial statements.. give a Irue and fair view of the of the tharilable coryan￿$ affairs as at 29 August 2020 aThJ of its incoming resources and aFplicatKJn of resources. for the year then ended., have been woperly prePa￿d in accordance with United ￿ngdorn Generally Accepted Accounting Practice.. and have been prepared in accordance *ryth the requirements of Ihe Companie$Act 201A. Bas18 for opinion We conducted our audit in accordance with Intemational Standards on Auditing (UK) IISAS {UK)l and applicable law. Our responsibilrties under Ihose standards are further described in the Auditorfs fftsponsibilities for the 8udil of the fin8nci81 statements se¢tKJn of our report. Vle are independent of Ihe school in atLOrdan￿ with the ethical requirements that are relevant to our audit of the financial statements in the UK. including the FRC'5 Ethical Stsndard, and we have fulfilled our other ethical responsibilit￿ in auordance wtlh these regul￿Ments. IAÈ believe that the audit evidence we have obtsined is SLfftient and appropriate to provide a basis for our opinion. EmphaslB of matter Due to the Statement ol Financial Posrtion showing net liabilth"e5 of £1.￿9,062 we draw your attentKJn to the relevant disdosure in the Govern￿5 report and Mte 1.2. Our opinion has not been mtrJif*d in respect of Ihis d￿closUre. Material uncertaSnty relatod lo golng concern È draw attention to note 1.2 in the financial ststements. Indi￿ that there is no fonnal agreement in place to extend the repayment dale ol the loan beyond the current repayment date of April 2022, although the govemors are in discussions lo ensure that the lender will nol seek repayment until the School has the necessary allemative funds. As stsled in nole 1.2, the Wential for a ￿quirement to repay this facilty. along with the uncertainty caused by the COVID panoemic and meeting the related cash costs as set forth in note 1.2. indicate that 8 material uncertainty exists that fflay cast swnrfKant doubt on the company's ability lo continue as a going concern. Our opinion is not mdrfied in respect of this matter. POWNALL HALL SCHOOL TRUST LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE GOVERNORS OF POWNALL HALL SCHOOL TRUST LIMITED Other infonnation The other information comprises the informatron included in the annual report other than the ffinancial statements 8nd our audilorfs report thereon. The Governors are reswnsible for the other infomatK)n. Our opinion on the financial slatemenls does not cover the other infomiatw)n and. ￿￿ept to the extent otherwise explicilly 5tsted in our report. we do not ex￿$$ any fomi of assurance ￿r￿lusion thereon. In connection with OUT audit of the financial statements. our responsibility is lo read the olher infomiation 8nd. in doing so, consider whether the other Info￿nation is malerialty inconsislenl with the financial slalemenls of our knowledge obtained in the audrt or olhepww appear5 to be materialty misstated. If we identify such material inconsistencies or apparent materKAI misstatements, we are required to detemiine whether there is a material misstatement in Ihe financial statements or a material misstatement of the other infomialion. If. based on the work we have performed. we conclude that there is a material misstatement of this other infomalion. we are required to report that fact. Vle have nothing to wort in this regard. Opinions on other matters prescrlbed by the compani￿ Act 2006 In our opinion. based on the woth undertaken in the course of our audit.. the infomation given in the Govemors, report, whth includes the directors, report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statgmenls are prepared is consistent with the finanual statements.. and the strategic report and the directors, rep)rt indLthd wrthin ihe Govemors, report havè been prepared in accordance with applicable legal requirements. Matters on which we are rnqulred lo r•port by *xceplion In the light of the knowledge and understsnding of the school and ils environment oblained in Ihe course of the audit, we have not tden1rr￿d material misststements in the Strateg￿ report or the directors. ￿pOrt included wthin Ihe Govemors, report. IAÈ have nothing to roport in respect of the folkmfing matters in r8lalN)n to wh￿h the Companies Ad 2¢J06 requires us to report to you if, in our opiniTrn.' a*uale accounting reeords have not been kepL or retums adequate for our audrt have not been re￿ived from branches not visited by us- or the financial statements a￿ not in ag￿ement with the ace(wnts"ng records and retums,. or certain disclosures of trustees, ￿M￿neral￿n specrfied by law are not made,. or we have not received all the infomiation and exp￿nat￿nS we require for our audit R•$pon$lbiliti•¥ ol Gov•rnorn As explained more fully in the statement of Govemors, r￿tsponsIbIlitIes. the GovemoTr. wh) are also the directors of the school for Ihe purpose of company Liw, are responsible for the preparation of the financral statements and for being satisfied that Ihey give a true and tsir view. and for such internal control as the Govomors delemiine is necessary to enable the preparalion of financial ststeTr*nts that are free frclr material mi%$tatement. whether due to fraud or error. In preparing the financial statements, the Governors are responsibk for assessing Ihe school's ability to continue as a going eoncem. disehjsing, as ap￿￿ble. matters rekted lo gI￿ng coneem and using the going eoncern basis of accounting unless the Governors erther intend to Ikiu*Jale th8 ¢hantable eompany or to cease opwalions. or have no realistsc aKemative but to do so. POWNALL HALL SCHOOL TRUST LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE GOVERNORS OF POWNALL HALL SCHOOL TRUST LIMITED Audlloffs responsiblllties for tho audit of the financlal 8Lgtsm•nts Our objectives are to obtain reasonable assurance about whether the financial slalements as a Who￿ are free from material misstatement. whether due to fraud or error. and lo isyje an audilof5 report that includes Our opinion. Reasonable assuranee is a high level of assuran￿ but is not a guarantee that an audit eonducled in accordance with ISAS {UKI will always detect a material misststement when r( exists. Misstatements can arise from fraud or error and are considered material rf, indiwdualty or in the a99￿gate. they COU￿ reasonabty be expected to influence the eeonomic dectsions of users laken on Ihe basis of these finanaal statements. A further descriplion of our responsibilities for the audit of the financh81 statements is located on the Financiol Reporting Council's websrte at.. https.'IhThw.frc.org.uklauditorsresponsibililJe5. This descripbon forms part of our audilorfs report. of our r•port This report is made solely to the Chafitab￿ company's members. •$ a IW. in &eordance with Chapter 3 of Part 16 of the Companies Act 2CM%. Our audrt work has been undertaken so that we might stale lo the eharrtable ompony's Members those matters we are required to st*e lo them in an auditors, report and for no other purpose. To the fvllest extent permitted by law, we do not accept or assume responsibility lo anyone other than the charitable company and the Charits￿e company's mèrnbe￿ as a body. fot our audit work, for thks report, or for the opinions we have fomied. Chloe H•rri8on ACA (Senior Statutory Auditor) for and on behall of J0801yne LLP 2rJiL Chart•r•d Accountants Statutory Auditor Merchant Exchange Vklets Green macC￿Sfiekl Cheshire SK116JX 10- POWNALL HALL SCHOOL TRUST LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOPIJE AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 29 AUGUST 2020 Unr•strict•d R•stri¢ted funds funds 2020 2020 . Total un￿$￿Cted Restricled fvnd$ funds 2019 2019 Totsl 2020 2019 Notes -Gifts and spec￿1 receipts Incoming resources 'from charitable aclivrties Investsment income Other incoming resources 2.250 16.1￿7 18.317 2.500 29.808 32,308 2.120.864 47 2,120,864 2,127,348 47 195 2,127,348 195 91.418 91.418 Total income 2,214,579 16.067 2.230.646 2.130.043 29.808 2.159,851 Raising funds 31.656 31.656 17,020 17.020 Charitsble activities 2.287,810 15.532 2,303.342 2.171.970 16,177 2.188,147 Other 12 82.255 82.255 17.091 17,091 Total rosourc•8 •xp•nded 2.401.721 15.532 2.417.253 2.2￿.081 16.177 2.222.258 Net Ièxp8ndltureylncom• for the yearl Net movemont in funds (187.1421 535 1186.607) 176.038) 13,631 162.407) Fund balances at 1 Seplember 2019 (1.218,625) 209,563 (1.Th)9.0621 11.142.587) 195,932 1946,655) Fund balances at 29 August 2020 11.405.767) 210.098 (1.195.669) {1.218.625) 209,563 (1,009,062) The 5tstement of financial aclbvibes indudes all gains and bsses recognised in Ihe year. All inwme and expenditure derive from continuing xtivrt" ies. The statement of financial activities also com￿leS with the requirements for an income and expenth'lure account undèr the CcwnpaniesAcl 2006. 11 POWNALL HALL SCHOOL TRUST LIMITED STATEMENT OF FINANCIAL POSItION ASAT29AUGUST2020 2020 2019 Fixod a$$•ts Propety. plant and equiptrrent 13 1.153.030 1,204.165 Current assets Trade and other ￿Ceivable5 Cash at bank and in hand 15 93.393 243.487 66,365 . 153.315 336.880 12.634.074) 219,680 {2.350.281) Current liabiliti•s 16 Nel cuffenl liabilit*8 {2.297.194) {2.130,601) Total oss•ts l•ss ¢urrenl liabifrties (1.144.164) {926.436) Non19 losses over a relalivety short period ar￿ the Govemors and sChC￿ Executive are implementing measures to meet this fvnding requirement by income. cost and cash management. Based on these meaSU￿s. forecasts for the year ending August 2023 shw the Sch(￿ retuming to positi.ve trading eash flow. Although there is some uncertainty Su￿oUnd1n9 the School's ability to meet the cash costs of Covid-19 losses and there is no formal agreement to exlend the April 2022 loan repayment tems. the Trustees have a rèasonable expectstion that the company has adequate re50urce5 to continue in operational existence for the fo￿Seeable future. Thus they ts)ntinue to &Jopt the going concern basi8 of a¢￿Unting in preparing the annual accounts. 1.3 Charftable funds UnrestrKted funds are available for use at the di5cretw of the Govemors in fvrtherance of their charitable oty'ectives. Restricted furKl$ are subjecl to SP8¢ffic conditions by donors as lo hN they may be used. The wrwses and uses of the reslrrcled funds are set out in the notes to the finarKial statements. Endowment fvnds are subject lo specifK condibons by donots that the eaprtal must be maintsined by the school. 14- POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 29 AUGUST 2020 Accounting policies IContinu•d} 1.4 Incomlng resources Income is recognised when the school is legalty entitled lo il after any performance condrtions have been mel. the amounts can be measured reliably. and it is prthble that ineome will be received. Fee income is recognised in the Slalement of Finan¢Fal AclNities on the accruals basis. Fees re￿ived in advance of education to be provided in future yeats are held until eTiher tsken to in￿rne in the tem or else refunded. Cash donations are recognised on recevpt. Other donatK•ns are fecognised once the school has been notified of the donation. unless perfomance eondrth)ns require defeffal of the amount. Ineome tsx recoverable in relation ¢0 donatsons recoivod und8r GrftAid or deeds of ￿venant recognisgd at the time of the th>nat￿n. Legacies are reeognised on receipt or otherwise rf the school has been n0tffj￿d of an impending dis1rFbut￿n, the arnount i8 kniy•m. and receipt is expected. If the amount is not known, the legscy 1$ treated as a contingent asset. 1.5 R•¥our¢o8 •xpend•d Expenditure is accounted for on an accruals basis. The ￿$1 headings comprise expenditure, incluthng stsff Costs and depfecialion. directy attributable to the ￿lty. Ihhere costs cannot be directly attributed they have been alkncated to activities on a fair and reasonable basis. Support costs comprise all semces induding an appropriate prow)rtion of general overheads specifically tdentified as wholly ￿ mainty incurred in SUPK*Yt of the direcl charitat)le expendrture. Governance cosls comprise the cosls incurred in managing the xhc¥J$ assets, organisational management, administration of and compliance with the statutory requirements of the school. Illhere overheads and olher costs cannot be directy attributed they have been allocated on the basis of management estimates of the amount attributsble lo suth adivities, eilhw by reference to staff tinp or space oCcup￿d, rf material. Expenses are indusive of VAT as it is irrecoverable. 1.6 Property. planl and equlpment Property, plant and equipment are initralty measured * cost and subsequentty measured at cost or valuat￿n, nel of depreciation and any impalm￿l kxses. Dep￿latIon is recA)gnised $0 as to wnte off the cost or valuation of assets ￿88 their residual values over their useful lives on the folltrwing bases.. Freehold land buAdingS Prefab buiklings Fixtu￿, fittings. plant and equipment Computers and office equipment Motor vehic over 50 yea over 20 years over 10 years over S years over 4 years The gain or knss arising on the disposal of an xset i¥ detemiitd as the (*'fferents be￿een the sale proceeds and the carrying value of the assel and is recognised in net incomel1expenditu￿) for the year. 15- '. POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 29 AUGUST 2020 Accountjng pollcl•s {Continued 1.7 Impalmi•nt of nonns are based on historical experience and other factors that are considered to te Tel￿an1. Adual results may drffer from these e51imal8S. The estimates and undertying assumptrons a￿ ￿1th¥ed on an ongoing basis. Revisions lo accounting estimates are recognised in the period in which the eslimate is revised where the revision affects onty that period, or in the period of the revision and future periods Whe￿ the revision affects toth current and future periods. Gifts and •p•¢lal rn¢olpts unrestrict￿ R¢strictsd funds fund8 Totsl Vnrestrt￿ed Reslricled fvnds funds Total 2020 2020 2020 2019 2019 2019 Dortalions and gffts 2,250 16.￿7 18,317 2.500 29,808 32,308 17- POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED> FOR THE YEAR ENDED 29 AUGUST 2020 Incoming r•sourc•s Ivom charitable activities Total Tolal 2019 bur5•rl•x gr•nts •nd •lh>wonc•s 2020 Sales within charithle activities Other income 2.326.267 37.131 1242.5341 2,083,733 37,131 2,107.540 19.808 2.363.398 1242,534) 2.120,864 2.127,348 Fee income was adversety affected by the Knpact of the cO￿d restrictM?ns in the Trinity lemi 2020. (See note 61. Inv•stm•nl in¢om• Unrnstrict￿ Unrestricted funds funds 2020 2019 Interest receivable 47 195 Othor incoming resources Unr•strict•d fund# Total 2020 2019 Governmenl grants 91.418 91.418 18- POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 29 AUGUST 2020 Olher In¢¢)mlng rn8ource8 {Contlnuod) The Govemmenl grants ore the Covid furlough rKeipts. As explained in more detail in the Govemors. Report. the School incurred wgniftcant losses due to Ihe impact of Covid. Fee discounts were granted to parents for the Trinity lem) and catering charges ￿versed albeit wtlh modest mitigatson from saving5 01 direct costs. There was a sKJnrficanl ineKlenee of irrecoverable fees in respect of parents were unwilling or unable to settle the reduced fees for the temi. Addrt￿nal costs were incurred as School resumed onsite to ensure complete complrance with Government requirements. A summary of these further ￿$1$ is detaikd below.. 10% discount offered to paonts Lunches income lost Trinty lemi Less.. Estimaled lunch cosls sawng After care income lost Bad debts non-payers for Tmity lem Additional costs incurred 70,228 54,258 {21,933} 1,144 19,C65 6,880- 129.642 Ralslng funds Unrnstrid•d Unrestricted fund# funds 2020 2019 Advertising Other fundraising costs 6,256 25.400 2.750 14,270 Fundraising and wblicity 31.656 17.020 31,856 17,020 19- POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 29 AUGUST 2020 Charit•ble aetiviti Teaching Premises Support ¢oBts of schooling 2020 Total 2020 Tolal 2019 2020 2020 Staff costs Depreciation and impairrnent Olher charitable expendrture 1.432.149 64.850 54,211 56,233 38,558 197.168 233.208 1.721.590 1.516.432 2,951 106,359 101,541 186,839 438,218 522,642 1.551.210 291.959 422.998 2,266.167 2.140.615 Share of govemanee eosts (see note 9) 37.175 37,175 47.532 1.551.210 291,959 460,173 2,303,342 2,188.147 Analy$l$ by fund Unreslricled funds Restricted funds 1.547.794 3.416 279.843 12,116 460.173 2.287.810 2.171,970 15.532 16,177 1.S51.210 291,959 460,173 2.303,342 2.188,147 For th• y•ar •nded 31 August 2019 Unrestricted funds Reslricled funds 1,415.389 3.416 254.253 12,761 502.328 2.171,970 16.177 1.418.805 267,014 502,328 2,188,147 POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 29 AUGUST 2020 Support CO8ts Support Govwnan¢• 2020 2019 Bas1$ of allocatlon s￿￿ costs Depreciation Printing. postsge and office statonery Telephone costs Molor and travel School costs Computer costs Legal, professional and consultancy fees Equipment hire Bad and doubtful debts 233.208 2.951 233.208 2.951 204.536 1.125 22.693 7.271 8.741 53.149 38.518 22.693 7.271 8.741 S3.149 38.518 18.702 7,308 10.803 67.438 37,460 1.325 5,255 1.325 5.255 22.906 4.194 40.300 40.300 57.207 Subseriptions and donats.ons Sundry expenses 5.974 3.613 5.974 3.613 7.716 15.401 Audit fees Accountancy and payroll support scho￿ inspection costs 12.(KlO 12.1]00 11.700 Goveman Governan 21.288 3.887 21.288 3,887 31,842 3.990 Govemance 422.998 37.175 460.173 502.328 Analysed betsveen Charitable activIt￿S 422.998 37.175 460,173 502,328 Govemance costs indudes payments to the auditors of £12.￿)0 (201 £11.7001 for audit fees. In addrtion costs of £21.288 were incurred on accountancy. bookkeeping and payrou services {2019 - £31.842J. The prior year charge includes £12.300 related to year end 2018 fees partty due lo an under acLrual lor year end work and paruy due to an invoice not being recorded in the accounts. 10 Govomor& None of the Govemors {or any person$ connected wilh them) rrfepled any remunerathjn during the year and t¢)tsl remnburwd expenses ￿Ounted lo £Nil. 21 POWNALL HALL SCHOOL TRUST LIMITED I NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 29 AUGUST 2020 . 11 Employo The average monthly number of employee$ during the year was.. 2020 Number 2019 Numb•r. Teaching staff Support staff 50 14 17 Total 67 Employm•nt ¢osts 2020 2019 Wages and salaries S¢xial security costs Other pension co$ls 1.404,095 119,932 197,563 1.291.011 101,272 124,149 1.721.590 1.516.432 The number of employees whose annual remuneralMM was £60.000 or more were.. 2020 Numb•r 2019 Number £70,001 - £80,000 £80.001 - £90,000 Of the employees whose emoluments. exceed £60,000, 1 (2019 - 11 has retirement benefits accruing under a defFned benefit penS￿rt scheme ITPS) desuib8d more fulty in note 21. 12 Oth•r 2020 2019 Financing interest and charges 82.255 17.091 82.255 17,091 POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 29 AUGUST 2020 13 Property. plant and eqtsipment Fr•¢hold Wnd . •nd buildlnys fftllngs. plant Totsl Al 1 September 2019 Additions 1,575.285 26.606 954.048 28,617 27,lY)O 2,556.333 55.223 At 29August 2020 1.601.891 982.665 27.000 2,611.556 Depr8ciation and Impalrment Al 1 September 2019 DepreC￿lI0n charged in the year 651,463 30.714 687.205 68.894 13.500 6.750 1.352,168 1(￿.358 Al 29 August 2020 682,177 756.099 20.250 1,458,526 Canying amount Al 29 August 2020 919,714 226, 6,750 1.153.030 AI 31 Au9usI 2019 923.822 266.843 13.500 1,204,165 The rel carrying value of tangible fixed assets includes folbwiry in respect of assets held under finance leases or hire purchase contracts. The depreuation charge in respect of such as￿$ amounted to £35,16412019 - £29.9701 for the year. 2020 2019 Motor ¥eh￿e$ Computers and office equipment 6.750 87.039 13,5C 107.825 93,789 121.325 14 Flnanclal In8tfuments 2020 2019 Carrying amount of flnaTr¢ial assets Oebl instruments measured at amorbsed cost 90,720 42,349 Carrying amount of financial Ilabllltles Measured at an￿[￿Sed cost 1.930.309 1,776,877 -23- POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 29 AUGUST 2020 15 Tr•d• and olhor rnceivables 2020 2019 Amounts falling du• wlthln one year. Trade receivables Other receivables Prepayments and aecrued ineome 81,564 9.156 2.673 31.121 11.228 24.016 93.393 66,365 16 Curr•nt Ilabllltles 2020 2019 Obligations under fIna￿e ￿aSeS Borrowings Other taxation and social secunty Defeffed incc¥ne Trade payables Other payables Accruals 18 37,295 1.508.000 227.805 527.465 37.126 214.846 81.537 35,843 1.453,000 24,959 481,981 88,718 116,690 149,090 2.634,074 2.350.281 Other payable indudes deposits of E89,269 (2019 - £89,784) technicalty payable with one tem)s notiee hence included as due in under 1 year. However. expectation is that these will be repaid over a number of years as each pupil leaves Ihe sthool. 17 Borrowlngs 2020 2019 Other loans 1.508.￿0 1,453.OCrf) Payable within one year 1.508.000 1,453,000 The loan 01 £1.050,000 from a third paty indNidual ts seeured by a kgal eharge over the propety known as Pownall Hall Schwl, Camwo¢¥J Road, Wlm$lN. SK9 5DW. -24- POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE .FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 29 AUGUST 2020 17 Borrowlngs {Continued) The loan from the third paty individual carries an interest r* of 5% pa. Althwh this is sh¢)V•n above as repayable within one year based on the repayment date al 31 st August 2020 of 31st March 2021. This loan has since been extended and ntr•V has an eartiest repayment dale of 10th April 2022. The loans from the Governors and their families cary an interest rale of 2.5% pa above base (minimum 3% pa}., amhough 3% has per annum has now been agreed os the maximum rate. Although these klans are shown as ￿Payable wf(hin one year based on the repayment dale al 31st August 2020 of 31st March 2021. These loans have since been extended and ntr•V have an eèrl*st fepayment dale of 1 Oth Aw'l 2022. Additional commentary on these loans is provided in the Governors. Report and in Note 1.2. 18 Financo10*80 commitinonts Future minimum lease payrrents due under finance leases: 2020 2019 INrthin one year wrthin iwo fNe years 47,492 66.824 45,563 106,115 114.316 125.516) 151,678 (33.2091 Less: fu￿re finance charges 88,800 118.469 The above represents finance leases to acquire equipmenl and motor vehths entered into for a term of 3 or 5 years. All leases are on a fixed repayment basis and no arran9emenls have been entered into fol contingent rental paymenls. The finanee lease ¢￿ditOrS are secured over Ihe assets to which they relate. 19 Non4urront Ilabilbties 2020 2019 Oblrgations under finance leases 18 51,505 82,626 POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 29 AUGUST 2020 20 Defe.rred Inc¢>me 2020 2019 Arising from Advance fees and depo 527.465 481.981 F••8 in advanG• fflovwTh•nt 2020 Brought forward August 2019 Utilised in year Received in the year 481,981 1481.9811 527.465 Carried forward atAugust 2020 527.465 Parents may enter an agreement to pay the sth¢wJl fees in The money may be returned subject lo spe(ar￿ conditions on the receipt of one terrn's not￿. In addition the school reeeive advance payments from both b¢al authoriks for the Early years PU￿15 and from parents Prior to the start of the Michaelmas tem in September. All amounts p￿d in advance relate lo fees in ¢onnecth)n with the year ended 31stAugusl 2021. POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) . FOR THE YEAR ENDED 29 AUGUST 2020 21 R•tlr•m•nt bgn•ffit $chemo5 The ￿h¢)01 participates in the Teathers, Pension $c￿me llhg TPS'I for its leaching stsff. The pension charge for the year includes contributions payab￿ lo the scheme of £188.475 {2019 - £117.6881 and at the year end Contribu￿nS of £110.009 {2019- £15,262) accrued in resFecI of conlribulions lo Ihe scheme. The TPS is an unfvnded multi*mployer defined beneffts scheme govemed by the Teachers, Pension Schefne Re9ul8tions 2014. Members contribute on a 'pay as you 9D" ba515 With CDntributionts frorn members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by ParlramenL The employef contribvtion iale is sel following scheme Valual￿nS undertaken by the Government Actuary's Department. The most recent *uari81 valuation of the TPS was p￿Pared as at 31 March 2016 and the Volualion report, which was published in March 2019, confimed that the employer eonlribulion iale for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Empbyers a￿ abo required to pay a scheme administration levy of 0.08% givin9 a lotsl employer contribution rale of 23.68%. The 31 March 2016 valuation report was wepared in accordance with the bènefits set out ￿ the $c￿me regulations and under the approath specified in the diiects"ons. as they applied at 5 March 2019. However, the assumptsons were considered and set by the Department for Educatkjn prior lo the ruling in the 'M¢CloudlSargeant case,. This case has required the ccwrts lo consider cases regarding the implementation of the 2015 reforms to Publtc Service Pensions includirg the Teachers. Pensions. On 27 June 2019 the Supreme Court denied the Govemmenl pe￿isSion lo appeal the Court of Appeal's judgement that transitional provIs￿n$ introduced lo 11)e refomed pension schemes in 2015 gave rise to unlawlul age discrimination. The 9ovemmenl is respeding the Court's decision and has said il will engage fulty with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. A consuhation was launched by the government on 16 July 2020. and closed to re$wnses on 11 Octcthr 2020. The TPS is suty'ect lo a cost cap mechanism which was pul in p*e to protect taxpayers against unforeseen changes in scheme ￿$ts. The Chief Seuetsry to Ihe Treasury, having in 2018 announced that there would be a revrew of this cost cap rnechanism. in January 2019 announced a pause lo the cost cap mechanism followirrfJ the Court of Appeal's ruling in the Mccloudlsargeanl case and until there.is certainty about the value of pens￿nS to empkjyees from April 2015 onwards. The pause was lifted in July 2020 and the govemment is preparing to complete the cost eofitrol element of the 2016 Valuat￿nS, which is expected to be completed in 2021. In view of the above rulings and deusions and the assumptions used in the 31 March 2016 Actuarial ValuatKJn may be￿me inappropriate. In this scenarKI, a ValUat￿n prepared in accordance with revised benefits and suilably revised assumptions woukJ yield drfterent results that those contained in the Actuarial Vdluallon. Until the consulL3tion and the cost cap mechanism revivw are c¢¥npleted il is nol possible lo conclude on any financial impact or future changes lo the contribution rates of Ihe TPS. Accordingty no provisKJn for any addilional past benefrt pension costs is included in these ffinancral statements. The School also runs a group personal pension scheme for its non-teaching stsff. The cost for the year represents the Schoofs contrrbutions to this scheme. The charge to profft or loss in respect of defvied contribution schemes was £9.08812019- £6.461). and at the year eThJ £3.602 was acwed12019- £5.088) in respect of conlr1bu￿nS to this scheme. -27- POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEPaENTS (CONTINUED) FOR THE YEAR ENDED 29 AUGUST 2020 R•strict•d fund¥ The funds ol the chanty indude restricted funds cornprising the following unexpended balances of donal*)ns and grants heky on trust for specfft purposes. The expended resource5 relate lo.the depreciation Chargos for the period and repair work undertaken in the year. At the year end, Ltnexpended income was £210.098 {2019- £209.563> Movwnent In fvnds Movement In funds Inconmng R*sourMs B•kn¢• * I￿ornI￿j Rwur¢ts B*nce at 8al•n¢• •t 1 SerAgfflbef 2019 2020 Roof appeal Playmatt Nelbalv Tenni5 Court Cheshire East Counal Quality Improvement Grant Playground EYFS Canopy and play area Nursery canopy Astro turf l)Jtd¢)or classrcom and lighting Crth&t works Radio station Ipads Stage li9hting. sound and recording equipmnl Outdoor play area 92.753 (2.576) .177 (2.576) 87.601 20.927 (537) 20.390 (5371 19.8S3 1967). {221n {21 (2.217) 11.085 6,651 16.471 (2.621) 13.850 (2.6201 11.230 3.755 36.273 1626} (7S6) 3,129 35.517 16261 {756) 2,503 34,761 13.699 (1.517) {82) 12,400) {1.0161 12,182 4.028 9.600 , (1.517) 182) 12,4001 11.0161 10,665 3.946 7.200 3.048 4,110 12.000 5.080 8.618 {862) 7.756 18621 6,894 16.067 {321) 15,746 195.932 29.808 (16.1771 209.563 16,067 115,532) 210,098 POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 29 AUGUST 2020 23.. Analysh of net a$6ets b•tW￿n funds UnrnBtrkted A￿trICtsd funds funds 2020 2020 Total Unrestricted Restricted funds funds 2019 2019 Tolal 2020 2019 Fund balances at 29 August 2020 are represented by". Propety. plant and equipment Current assetsl Iliabilitiesl Long temi lia￿litieS 942.932 210,098 1.153.030 994,602 209.563 1.204,165 12.297.194) 151.505) (2.297.194) (2,130.6011 (51,505) {82.6261 12.130,6011 (82,6261 11,405,767) 210,098 {1.195.669) {1,218,625) 209.563 11.009.062) Reslricled Funds a￿ funds which have been gi¥en for parti￿lar purposes and projects. The restricted fund must be used for the purpose speafied ie.. roof appeal. the netball court. nursery play flwr, 8ay l•Mnd¢)w repairs, Pupil playground, quality improvement, ICT software and Earfy Years Foundation Stage canopy and play area. 24 Operating lea8• commltments At the reporting end date the school had outstanding commitments for fulure minimum lease. paym8nts under non-cancellable operating leases. which fall due as folknws.. 2020 2019 wrthin one year Between and fve yea(s 1,200 900 1.200 2.100 2,100 3,300 The operating leases fepresenl leases of telephones. copiers and computer equipment from third partie& The ieases are negolialed over term5 of 5 years and rentaLs are fixed for this period. Amounts recognised in the Statwnent of Financial Ac¢Ni1￿$ for the yearwas £10,10412017 - £9,849). POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 29 AUGUST 2020 26 Events after the r•porting dat• During the year the oulbreak Adjusknenls for. Investsrenl income recognised in statement of financial acliwbes Depreuotion and impaimient of wopety. plant and equpment 147) 11%.359 11951 101.541 Movements in working capital: {Increase) in trade and other receNables Increase in trade and other payables Increase in deferned income {27.0281 181.857 45,484 140,1351 57,646 60,852 Cash g•nerat•d from OP•fation$ 120.018 117.302 28 Anatysis of changes in net (debtllfund$ At 1 Seplthnbèr Cashfiowj NewlOn8nce At 29Augwt 2019 2020 Cash 81 bank and in hand 153.315 90,172 243,487 Loans falling due within one year Obligations under finance leases {1.453,000) (118.469) (55.0001 37.296 {1.508.000) {88,800} 17.627) (1,418,154) 72.468 {7,627) 11,353,313)