charlty rogistration number 525929 Company régistration number 00661518 (England and Wale81 POWNALL HALL SCHOOL TRUST LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 27 AUGUST 2022
POWNALL HALL SCHOOL TRUST LIMITED LEGALAND ADMINISTRATIVE INFORMATION Governors Mrs E M MattAulay Ichairl Mr T F Barnes Mr G D Dawber Mr T J Wareham Mrs N M Wood MrRBWWo Mrs S Kelly Mr$ D Hueling Mrs A Slmmonds IAppc4nled 21 February 20231 (Appnted 4 September 2023) Headrnaster Mr D GOU1UM Se¢i•tsry Mr D Goulbourn 8uslness Manager Mr M Hughes Charlty number 525929 Company numbgr 00661518 Reglstsred offlce Pownall H811 School CarNood Ro8d Pownall Park Imlmslow Cheshire SK9 5DW Audltor Josolyne LLP Merthanl Exthange Waters Green Macclesfield Cheshire SK116JX Bankers LIoytJ5 Bank Group PIC 223 Finney Lane Cheadla Cheshire SK8 3PY
POWNALL HALL SCHOOL TRUST LIMITED CONTENTS Page Govemors. report Independent auditor's report Statement of financial acaivrties statement of financial position 10 Statement of 11 Notes to the financial statements 12-29
POWNALL HALL SCHOOL TRUST LIMITED GOVERNORS. REPORT IINCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE PERIOD ENDED 27AUGUST 2022 The Governofs present their annual report and financial statements for the perfod ende(127Augusl 2022. The financial statements have been prepared in accordance wrf(h the accounting polreies set oul in note 1 to the nancial statements and comply with the school's Mernorandum and Articles of Association, the Companies Act 2006 and "Accounliw 2nd Reporting by Charities.. Ststemenl of Recommend8d Practice applicable to charrbes preparing their accounts In accordance with the Financial Reporting Stsndard applicable in the UK aryl Republic of IreLgnd IFRS 1 D21" (effective 1 January 2019). Objectlves and actlvltles In setting objedives for the Sch¢)ol and planning ils acb"vib"e5, the Governors hove given careful consideration lo the Ch8rity Commission'5 general guidance on public benefit and In particular to its supplementary public guidance on advancing education and fee charging. The Governors have for many years offered assIstae with fees and Ihe School has been particularfy successful in attracting children whose parents would not be able lo afford a fvll fee paying place. The assistance takes in lo account the cost of extra curricular activities. The Govemors are also conscious of the role that the School has alw8ys played, and continues to play. in the local community and this Report sets out details of activities which benefit all sections of that community. However we are not complant in iespecl of the public benefit requirements." on the contrary we are eonlinuously explonng opportunities to enhance the School's aclivilies and use all its resourcès for the benefit of 811 strands of the l¢xal community. Our School wekomes pupils from 811 backgrounds. There is no entrance rgquiremenl as Sh allhough in the upper forms an initial academic assessment 1$ made. and this identifies the educational qUIrementS and progmmme for the child. We have made signifieanl investments in inftastructure to cater for the needs of children who are, or bewme, disabled. Thè welfare and progress of the children in every respect is a priority commitment and our procedures facilitsle effective monitoring of d8velopmenl and SUC$. The s¢01.5 objectives are the advancement of education for 6 months to 11 year old childr8n. The Charty has also to maintain 115 heritage endowment. in particu18r the Hall which is a grade 2" listed building and various artefacls, books and works of art. The Govemors have also emphasised the need lo make the School's resources end activrties available to Ihe wder MMunity and to contribute lo the welfare of the community. The Govemors also make bursaries available and are intent on athieving a wider access to the School. offering assisted places to children whose parents are unable lo meet the full fees and making the &hool's resources available to the local community. Wthin these Obi8cls, the School's aim is lo provide a first class independent education, based on excellent academic tuition and extra curricular activities involving the development of sporting, artistic and social skllls in all its PLtpils. This is designed lo provide an environment in which all pupils ean develop and fulfil their potential, both in gaining access to the seeond8ry sch¢)ol of their choice. and in building self confidence and a desire lo contribute lo the wlder community. The focus in the period ended 27 August 2022 and beyond has been on maintsining and improvong academic pgrformance. increasing contribLrtion to the wtder communty both by activity and visibility in the community and by making the School's reSoUrS and activities available to others., actively pursuing the developm1 and introduction of a bursary scheme,. and investment in the Sch¢)ol's infrastructure and facilities. Tho actiwties which have contributed lo tho imF4ementation of the School's strategy and the achiovement of its objectives are dealt urith in the next section of this Report. The Govemors hav8 paid duè regard lo guldance issued by the Charty Commission in decidirg sthat adivities the school should undertake. stratogic report The descrlplion under the headings "Achievemanls and perfomance. and "Financial revithv, meet the company law requirements for the Govemors lo present a strategic report.
POWNALL HALL SCHOOL TRUST LIMITED GOVERNORS. REPORT {CONTINUED)(INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE PERIOD ENDED 27AUGUST 2022 Achlevements and performance Educatson Quality and Compliance Inspeclions were undertaken by the Independent Schools Inspectorate in March 2017. The Inspectors concluded that the quality of the pupils, academic and other achievements is excellent and that the qualty of the pupils, personal development is excellent. Speeifie mention was made of excellent performance In every aspect of pupils, education. The Inspectors made no recommendations themselves but commended the objectives in the School's strategic plan. The results of the Complian Inspection were similady posttive with the School meeting the laid down standards. A further Compliance Inspection in March 2020 resulted in a very p0511ive assessment. The Robins room for under 2 has algj received an OFSTED in$pedion in July 23 and has received a 'Good' rating for all aspects which was a fantast'¢ outcome for a provision which has been in operation for ILt 30 mnths. Finally, in order to obtain a Material Change Increase to the Schools Registered Capacity a further compliance inspection was rrIed oul during 2023 and all expect81ions were found lo have been mel and the Material Change application was approved. Our thildren continued lo attain the highest quality academic standards. All the children in Form 6 achieved passes in the 11 + entrance examinations and were offered places at the secondary Schools of their ch)1, including Manchester Gramrnar Sch¢Jol, Stockport Grammar School. The King's School Macclesfield, Cheadle Hulme Sthool, Alderley Edge Schogl for Gir15, Altrincham Grammar School, Rtrssall School, Flee00d, Hulme Hall Grammar School, Manchester high School. Wthinglon High Sch¢XJl, Hazel Grove High School. Our children received 56 offers of places including 6 scholarships. Although the primary focus of the School is on academic success, all our children participate in many extra curricular activities ¥vhich we consider essential for their development and prepares them for th8 rigorous demands of secondary school and beyond. There is eonsiéer8ble emphasis on music and ¢Jrama. Many of the children passed music examinations and almost all are involved in choral activities. The majority of the senior school participated in excellent productions throughout the year, oulslanding performances which r1Ved numerous accolades. All children in the School sung and performeé in numerous concerts and plays. choirs participated in many public. as well as intemal, performances during the year. Spc*t continues to be an integral part of our ¢hildren's activf(ies and opportunities, and the all weather hard court, which was originally financed by a sp8cific and generous donation from our Parents, Association, was extended and improved, again financed by our Parents, Committee and is used extensively for football, hockey, tennis, netball and other sports. This together with the Sports Hall and our extensive extern81 facilitss prgvKles for 8 vari&ty of $portin9 actiwties in which our ehlldren participate with great enthusiasm, enjoyment and success. Tennis, football. hockey, cricket, netball, cross-county, swirnming, rugby and athletlcs are just some of the sports in which our children are extensively involved. No less importanl are other activities such as music, art, cookn'ng and chess which add to the broad education which is provided. The &)vemors in implementing the bursary policy, awarded a number of 88SiSted places lo children who otheNrise would have been unable to end the School. The Finance Govemor continues lo develop the formal policy and the Govemors are anxious lo ensure that aswsled Pla afe made available lo the wder community on a consislenl, equitable and realist basis. Corssi(lerable emphasis has been placed on upd8tlng the School's infrastructure and facilities. This year the focus has continued to be on enhancing and modernising leaching facilities. There has been further investment in ICT and the provisitx of interaGtiv¢ teaching and leaming equipment in 811 classroom$ and facalf(ies 18 now complete. Progress has been made in achieving high speed broadband conneth'vity. The Govemors, staff and parents, together th their children. are partScularly committed to Ihe Sch¢)ol's contribution to the wKler local community. The H811 being a grade 2" listed Arts and Crafts building 15 opened lo visitors on several occasions during the year. The School's sporting and other facilities are frequently used by local sports dubs and similar organisalions and the Govemors are Seeking lo extend this opportunity lo those who are not fortunate enough to have their own facililie$. Our children's plays and choral activities are provtded to many in the community. in particular pensioners. and a conslderable number of tharitable aclivilkgs ar8 organised by all members of the School community.
POWNALL HALL SCHOOL TRUST LIMITED GOVERNORS. REPORT (CONTINUED)IINCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE PERIOD ENDED 27AUGUST 2022 The S¢hwl'$ Operations are funded in the main by fee income. However. the Govemors and other v0teerS ané supporters of the School are alert lo polen1181 fundraising opportunitie5 although these are largely focused on specific projects. The School's Parents. Committee is particularfy active and successful in mounting Social and other events and surpluses are tyPillY used to PLtrchase oquipmenl lor classTooms and other school facilities, entirely al the discretil of the Committee. The Govefnors would like to record their appreaation of the parents. contribution to the School. Flnanclal revlew Al 29 August 2021 the finawng of the School comprise(I the interim loan of £1,050.000 from a personal lender and loans from Governors and their families of £458,000. The repayment of these loans had been extended lo April 2022 lo enable the Governors to conclude alternative ftjnding arrangements. The adverse financial impa of the Covid pandem, vthich had continued in lo 20121 and beyond, meant that the School was unable to meet the lending parameters and criteria indicated by our bankers as a requirement for refinancing. As a result 8n allernalive source of finance was obtained again from a personal lender to replace the above mentioned loan of £1,050,000. This new loan for £1,050,000 commenced on 26th August 2022 and is interest free wlh rw) repayments required for 8 period of 3 years whilst the Governors source replacement finance from the School's bankers. During the period ended 27th August 2023 the school has commenced repayment of the Govemors ans and th8 balance was reduced by £50,000 to £408,000. NUmr$ in the School have increased throughout the period and continue to do so lo the extent that the School was required lo submlt a material change application lo incr&ase the Règistered Capacity of the Schcx)l from 260 10 338 rAJpils which wag subs8quenlty approved. During this period the Nursery provision was expand with the op8ning of the Robin's room to accommodate children from 6 months and upwards, but pupil numbers have also irKreased throughoLJt the School rising from 231 on roll at the stsrt of this school year lo 272 on roll for Ihe first day of lem in 2022123. The Govemors report a deficit of £79,941 for the period, compared lo a deficit of £19B,729 in the previoug peri¢)d. the improvement reflects the growth in pupil numbers during the year. As a rewll of the deficit in this and the previou$ year the School continued to experience cash flow pres8ures. The Govemors remain disappointed that our bankers were unable lo approvo o Coronavirus interruption loan of £200.000 although the School did receive a BounGe Back Loan of £50,000. The G0vemS are grateful lo HMRC who granted deferred payment terms for PAYE and Teachers, Pension contributions. During the subsequent year the cash flow pressuies have signrficanlly improveé In line with rising pupil numbers. As a result, deferred payments of Teacher$ Pensions and PAYE as well as repayment of GOverts loans have been made lolallirvJ in excess of £250,000. Reserves pollcy The Governors, policy towards reserves is to invest any surpluses in the School's facilities ond infra5truthire. Although this impacts on resetves only through the progressive recognition of depclaI10n in the Stslemenl of Financial Acts'vrties, the impact on the School's cash resourc8s is immediate. Consequently, the Govemors think it appropriate that the overall financiol position, incluijing and in particular the cash posttK)n. infonns and inluences the policy on, 8nd18vel of, reserves. The Governors are conscious that the Unrestricted frjnds are in deficit. However, as slated above, the school is experiencing significant increases in numbers and although the impael of Covid-19 had postponed the retum lo profitability, the Govemois expecl that they wll be able to r8POrt trading profits in the next and subsequent yoars. The sale of surplus land in 2017118 yielded 8 significant profit and was consislenl with the valuati)n of the School's freehold land and bLJildings. Lmdertaken in 2012 as part of the negotiations in ConneCtn wf(h the increased bank facilits'es, which indicated a value significantly in eXSS of the carrying value in the balan¢e sheeL Urnler the direct of the Govemors and the Headmasler, the School has continued to invest in modemising and enhanong Ihe leaching provision, and in the provision of new facilities which will enhance the education experience of our children. Essential, albeit mt)desl, investment programmes were continued during this period. The current ernphasis has been on new teaching and assessment schemes, as well as on direct contact leaching methods and content. Some of the investment was once again funded by our Parents, Committee and we again record our appreciation of their tireless activities, support and contribution.
POWNALL HALL SCHOOL TRUST LIMITED GOVERNORS, REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE PERIOD ENDED 27AUGUST 2022 The Board of Governors is responsible for the management of risks faced by the School. Detsiled consideration and management of rfsks are delegated lo the executive management team who report infornially lo the Business Management Committ88 I'BMC'I and Board. The Governors have continued to implement enhan¢ed risk management processes during the year. Major risks ond issues afe evaluated and considered al all management meetings and the risk idenlfficalion. assessment and iespon5e process has been formally documented duiing the year. The Govemors and executive management team are risk conscious and are satisfied that the major risks faced by the School have been managed and miligaled to an adequate extent. The governors reeognise that systems can onty provide reasonable bLrt nol absolute assuran that Ma1 risk5 have been adequale]y managed. The key objectives of the medium to long term Strateg plan are.. To achieve optimurn pety in each class throughout the Scho To ensure that i@aching eapacrty and capability is commensurate with these class sizes To maintain the current high standards of academic achievement measured in the main by the $uceess of the School's children in securing offers from the secondary schools of their choice To continue to maintain the School's reputation for excellence in extra curricular activity in Ihe arts, 8POrt and community activity To widen participation in the Sch¢x)I by offering assisted places for children, and lo make the School's resources, facilities and activities available to the wider community To continue the programme of improving the School's infrastructure and facilities. In the short temi the Govemors are conscious of the Schoofs financial posibon. Initlatives to athieve efficiencies and economies in the co81 base continue to be imr4emenled and emphasis is being placed on initiatives lo increase pupil numbers. The Governors will implement projects and initiatives only on the basis that the School remains within its financial facilities. Structure. govemanc• and management The activities of the Trust are ref8ry8d 19 in the Memorandum andArtieles olAssocSalion whi¢h K% the governing document of the TTUSI. The Governors, who are also the directors for the purp)se of company law. and who have served Sin 30th August 2021 wer8.. Mrs E M MacAulay (Chair) Mr T F Barnes Mr G D DaWr Mr T J Wareham Mrs L Wndow Mrs N M Wood MrRBWWood Mrs S Kelly Mrs H F Jeys {Restgned 4 September 20231 (Appointed 27 September 2021 and resigned 4 September 20231 (AFpointed 21 February 2023) (App)inted 4 September 20231 Mrs D Huetin9 Mrs A Simmonds In aGrdance with the Artides ofAssocialion, Mr G D Dawber, Mr T J Wareham and Mrs L Wndow wll rere by rotat?n al the forthcoming AGM, and being eligible, wll offer themselves for rè-electlon. The Tru81 does not have any share capital bul each Governor is guarantor to the extent of £1. No GoverrK)r has a beneficlal interest in the Trust. Govemors are elected by The Board of Govemors having regard lo thè skills requiremen1$ of the Board. Each Govemor contributes a specific aa of expertise relevant to the management of the School.
POWNALL HALL SCHOOL TRUST LIMITED GOVERNORS, REPORT (CONTINUED){INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT FOR THE PERIOD ENDED 27AUGUST 2022 The G0verrrs, as the Charity Truste, are legally responsible for the overall management and control of the School and meet al least five times a year. The work of implementing most of the policies laid down by the Board of Governors and the day lo day management of the School is undertaken by the executive senK)r management team under the supèrvision of the BMC, chaired by the Chair of the Board, which meets al least five times a year before the meetings of the Board, and which nomially indudes the Deputy Chair {Finance Govemorl, He8dmasler and Business Manager. Statement of Governors. rgsponsibilities The Governors, who are also the directors of Pownall Hall School Trust Limited for the purpose of company law, are responsible for preparing the Govemors, Repgrt and the financial slalemenls in aeeordance wth applicable law and United KIrd0M Accounling Standards (United Kingdom GenerallyAccepted Accounting Praclicel. Company Law require$ the GoverTh)rs lo pr8pare financial statements for each financh11 year which give a true and fair view of the stale of affairs of the school and of the incoming resources and application ol resourees. including the inwne and expenditure, of the charitable company for that period. In preparing these financial statements, the Governors are required lo.. - select suitable accounting p)licies and then appty them consistently,. - observe the methods and principle$ in the Charilies SORP., - make judgements estimates that are reasonable and prudent.. slate whether applicable UK Accounting Stsndards have been followed, subject to any material departures disdosed and explained in the financial statements," and preparè the financial slatsmenls on the going concern basis unlèss it is inappropriate to that the school will continue in operation. The Governors are responsible for keeping adequate accounting records that disclose with reasonable accuracy al any time the financial position of the school and enable them to ensure that the financial slalemenls comp th the Companies Ad 2006. They are also responsible for safeguarding the as$el$ of the sclx)ol and hence for taking reasonable steps for the prevention and detection of fraud and other irregularib"es. Auditor In accordan wth the company's artides, a re501ution rxoposing that Josolyne LLP be reappolnted as auditor of the MpanY will be put al a General Meeting. Dlsclosure of informatlon to audttor Each of the Governors has Confirmed that there Is no information of which they are aware which is relevant to the audit, bul of which thè audrtor is unaware. They have further confirmed that they have taken appropriate steps to identity such relevant information and to establish that the auditor is aware of such information. The Govemors, report, including the strategic report, wa5 approved by the Board of Governors. Mr G D Dawber Goveinor Dated: 23 November 2023
POWNALL HALL SCHOOL TRUST LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POWNALL HALL SCHOOL TRUST LIMITED Oplnlon Wè have audrted the financial statements of Pownall Hall School Trust Limited {the 'school? for the period ended 27 August 2022 whith comprise the Statement of Financial Adivilies. the Statement of Finanryal Position, the Statement of Cash Flows and the notes lo the financial statements, induding a summary of significarft accounting policies. The financi81 ieporting framework that has been applied in their prepar81ion Is applicable law and United Kingd¢)m Aeeountsng Stsndards, including Financial Reporbng Standard 102 The Financial Reporting Standard applic8bl& in the UK and Republic of Iland Iuniled Kingdom Generally Accepted Accounting Practi¢el. In our opinion, the ffinanual statements.. give a truè and fair view of the state of the charitsble company's affairs as at 27 August 2¢)22 ar of f(s incoming resources and applicion of resources, including ils income and expernliture. for the period then ended., have been propedy prepared in accordance with United Kingdom Generally Accepted Accounting PracliL>' and have ien prepared in a¢¢ordance with the requirements of the Companies Act 2006. Basls for oplnlon We Conducted our audit in a¢¢ordanee %•Mh Intem81ional *andards on Auditing IUK) IISAS IUKII and applicable law. Qur responsibilities under those standaids are further described in the Auditors responsibilrfies for the audit Ihtr financial statements section of our report. We are independent of the school in accordance vllh the ethical requirements that are relevant to our audit of the financial statements in the UK, includin9 the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with th8se requirements. We believg that the audit evidence we have obtsined is sufficient and appropriate lo provide a basi5 for our opinton. Emphasls of matter Due to the Slalement of Financ181 Position showing nel liabilities of £1,474,339 we draw your 8ttentr)n to the relevant dlsdosure in the Governors report and nol8 1.2. Our opinK)n has not been modified in respect of thi$ dlselosure. Other ITrformation The other infomalion comprises the Infonnation included in the annual report other than the finatKSal slal8Menls and our auditols report thereon. The Govemors are responsbble for the other information contained within the annual report. Our opinion on the financial slalemenls does not Cover the other infomiation and, except lo the extent otherwise explicitly slated in our report, we do not express any form of assuranee eondusion thereon. Our sponsibility is ID read the other information and. in doing so, consider whether the other information is material inconsist8nl with the financial statements or our knOedge oblained in the course of the audit, or otherwis¢ appears to be materially misstsleé. If we identify such maleiial inconsistencies or apparent material misstatements. we are required lo determine whether this gives rise to a material misstatement in the financial statements themselve8. If, based on th8 Work we have perfomied, we conclude that there is a material miss18lemenl of this other information. we ar8 required to report that fact. We have nothing to report in this regard. Oplnlons on other matters pr•scrib8d by the Companles Act 21)06 In our opinion, based on the work Lrndertaken in the course of our audit.. the information given in the Govemors. report for the finanaal period for which the finanaal statements are prepared, which includes the diredors. report and the strategic report prepared for the purposes of tmpaThy law, is consistent wlh the financial slalemenls". and the strategic report and the directors, report induded within the Govemors, report have been prepared in a)rdance with applicable legal requirements.
POWNALL HALL SCHOOL TRUST LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF POWNALL HALL SCHOOL TRUST LIMITED Matters on vthich we are requlred to report by exception In th¢ light of the knovledge and understanding of the SL*ool arbd its environment obtained in th6 course of the audit, we have not identified material misstatements In the strategic report or th6 directors, report induded within the Governors. report. We have nothing to report in respect of the following matters in relatlon to which the Companies Act 2006 requires us lo report to you if, in our opinion.. adequate accounting records have not been kept, or turnS adequate for our 8udll have not been received from branches rt visited by us.. or the finaneial statements are not in agreement with the accounting record5 and returns., or eert8In dbsclosures of trustees. remuner8tiors specified by law are not made- or we have not received all the information 8nd explanations we require for our audit. Rèsponslbllrtles of Governors As explained more fully in the statement of GoveTnors' responslbllllies, the Governors, who are also the directors of the school for the purpose of company law, are responsible for the preparation of the financial ststements and for being 58lisfied that they give a true and fair view, and for such intemal control as the Govemors determine is necessary lo enable the preparab.on of financial Stalém8nls that are free from material misslalemenl, whether due to fraud or error. In preparing the financial slalemenls, the Govemors are responsible for assessing the school's ability to continue as a going eoncem, disclosing, as applicable, matters ielated to going concem and using the golng concem basis of accounting unless the Govemors either intend lo liquidate the charitsble company or to cease operations, or have no reallstic allernalive bul to do so. Audltorf$ r•sponslbllltles for the audit of the flnancial statements Our objectives are lo obtain rea50n8ble assurance about whether the financial statements as 8 whole are free from material misslalemenl, whether due lo fraud or error, and to issue 8n auditor's report that indude5 our opinion. Reasonable assurance is a hh level of assurance bLrt is nel 8 guarantee that an audit conducted in a¢¢ord8nce with ISAS IUKI will always detect a material misstatement when il exists. Misslalemenls can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence Ihe ecoTh)mic decisions of user5 taken on the basis of these financi81 slatemenls. The extent to which our procedures are capable of éelecling iThegularities. including fraud, is detailed bebw. obtained an understsnding of the 16gal and regulatory framewoth5 that are applicable to the entity and its industry. and detemiined that the m05t 5igntficant are Iho$e that relate lo breaches of safeguarding, health and safety regulations, data protection and employment laws. We also considered those laws and regulations th81 have a dired effect on the finala1 staternenls such as FRS102 accounting principles and the Companies Act 2006. We have considered the exlenl to which non-complian might have a material effect on the financial stalemenl$ and also evaluated management's incentives and opportunitie$ for fraudulent manipulation of the financial statements.
POWNALL HALL SCHOOL TRUST LIMITED INDEPENDENT AUDITOR'S REPORT ICONTINUED) TO THE MEMBERS OF POWNALL HALL SCHOOL TRUST LIMITED W8 est8bli8hed thal the principal ri8k8 relatsd lo revenu6 recognition, management bias in accounbng eslimat8s and rnanagement override, recoveiabilily of debtors, potential understatement of creditors and the going o)ncem status of the school. Audit procedures perfomied included.. Perfomed a reconciliation of lolal school fees to expectats'ons based on pupil numbers and cuNent fee r?les. Reviewed fee invoi¢es raised ef(her side of the year end lo ensure acwunted for in the correGt period. Vouched year end a¢¢ruals and prepayment balances lo supporting invoices. Reviewed payments and invoices post year end for omitted creditors and accruals. Cheeked cash reiVed after dale lo confirm re¢overability of year end debtors and ensure sufficient provision was includ8d. Designed audit procedures in order to incorporate unpredictability around the nature, timing or extent of our testing. Identified and tested joumal entrie8 to consider the appropriateness of joumal gntri85 and other adjustments., Assessed whether the judgements made in maknng accountsng estimates are Indicative of a potential tias., and evaluated the business rationale of significant transactions that were unusual or outside the nornial course of business. Challenged assumptions made by managemént in m8kSng their Signifint 8¢counling eslimales Reviewed financial slalemenl disclosufes and tested lo supporting documentstson to assess compliance with 8pplicable laws and regulations Reviewed manag8menls assumptions with regard to the going concem slalus of the school. Reviewed profit and cash flow lorecasts prepared for a period in excess of 12 months from approval of the accounts. We communicate wth those charged with govemance regarding, among other matters, the plannèd scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identity during our audit. A rther description of responsibilities Is availabb on the Financial Reporting Council's website at.. https'.11 www.trc.org.uklauditorsresponsibililies. This description fomis part of our auditor's report. U$• of our report This report is mgde solely lo the charitable company's members, as a body, In accordancè with Chapter 3 of Part le ofthe Cornpanies Act 2006. Our audit work has been undertaken so that we might slate to the charrtae Company's members thos& matters we are required lo slate lo them in an audilols report and fgr no other purwse. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than the ¢harilable ompany and the charilsble company's members as a botjy, for our audit work, for this report, or forthe opinions we have formed. LLLF James Bostock ACA (Senlor Ststutory Audltorl for and on behalf of Josolyne LLP 23 Novèmber 2023 Chartered Accountsnts Statutory Auditor Merehanl Exchange Waters Green Macc18sfRld Cheshire SK116JX
POWNALL HALL SCHOOL TRUST LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOMEAND EXPENDITUREACCOUNT FOR THE PERIOD ENDED 27AUGUST 2022 Unrestrlcted Restrlcted funds funds 2022 2022 Totsl Unrnslrlcted Rgstrlct•d funds funds 2021 2021 Totsl 2022 2021 Notgs ntsf Gifts and Special receipts Incoming resources from charitable activitias Investment Income Other incoming resources 558 558 2,000 2,000 2,382,289 21 2,382,289 21 2.072,881 20 2,072.881 20 34,974 34,974 Totsl Incom¢ 2,382,868 2,382,868 2,109,875 2,109,B7S RaisirKJ fvnds 8,114 8,114 8,940 8.940 Charitabb adivities 2,354,495 15,530 2,370,025 2,180.003 15,530 2,195.533 Other 12 84.870 84.670 104,131 104.131 Total expendlture 2.447.279 15,530 2.462.809 2,293.074 15,530 2.308,604 Net expgnditure for the perlodl Net movemènt In funds 164,4111 115.5301 179,9411 {183,199) {15,5301 {198.7291 Fund balances al 30August 2021 {1,588,9661 194,568 11.394,398} 11,405,767) 210,098 {1,195,e691 Fund balances at 27 August 2022 {1,653.377) 179.038 {1,474,3391 11.588,9661 194,568 (1,394,398) The statement of finala1 activities Indudes all gains and1055es recognised in the period. All income and expenditure derive from eonb"nulng aciivilies. The statement of financial aclivities also complies wlh the requir8menls for an income and expenditure account under the Companies Ad 2006.
POWNALL HALL SCHOOL TRUST LIMITED STATEMENT OF FINANCIAL POSITION ASAT27AUGUST2022 2022 2021 Notes Flxed assèts Propety, plant and equipment 14 1.031.160 1,069,111 Current assets Trade and other receivables Cash at bank and in hand 16 101,331 99,056 43,205 204.584 200,387 {1,539,292} 247,789 12,617,747) Current liabilities 19 Nel currenl liabilities 11.338,905 {2,369,9581 Total assgts less current Ilabilities {307,7451 {1,300,847) Non4urrent liabilities 20 11.166.594} (93,551} Net Ilablllties {1.474.3391 (1,394,398) Income funds Restricted funds unrestn.cted funds 23 179.038 (1.653,3771 194,568 11,588,966) 11.474,3391 {1,394,3981 The financial slalemenls were approved by the Govemors on 23 November 2023 Mrs E M MaG4ulay {Chairl Trustse Mr G D Dawber Trustsg Company reglstration number 00661518 10-
POWNALL HALL SCHOOL TRUST LIMITED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 27AUGUST 2022 2022 2021 Notss Cash flow& from operating actlvltles Cash absorbed by operations 27 143,7091 (62,3081 Investlng Jctlvltles Purchase of pioperty. plant and equipment Investment income recelved (29.705) 21 {13,501) 20 Net cash used in investlng activities {29,684) {13,4811 Flnanclng actlvltles Proceeds from new bank loans Repayment of bank loans Payment of obligations under finance leases 50,000 18.3331 123.802) 113,114) Net cash (used inllgenerated from flnancing acllvllles 132,1351 36,886 Net dlease In cash and cash aquivalents (105,5281 {38.903) Cash and cash equivalents 8t beginning of period 204.584 243.487 Cash and cash equlvalfjnts at end of perlod 99,056 204.584
POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 27AUGUST 2022 Accountlng poll¢l8s Charity Inforniation Pownall Hall School Trust Limited is a pn.vate company limited by guarantee incorporated in Englatxl and lgs. Tho registered office is Pownall Hall School, Carrwood Road. Pownall Park, Wlmslow, Cheshire, SK9 5DW. 1.1 Accountlng conventlon The financial statements have been prepared in accordance with the school's Memorandum and Articles of AssoallOn, the Companies Act 2006, FRS 102 °The Financial Reporting Stsndard applicable in the UK and Republic of Ireland. I'FRS 102.1 and the Charities SORP"Accounling and Reporting by Charities.. Slatemenl of Recommended Practice applicablg to Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic csf Ireland IFRS 1021. leffeclive 1 January 2019). The schod is a Public Benefit Entity as defined by FRS 102. The financ¢al ststemenls are Pfepared in sterling, which is the functional currenty of the school. Monetsry amounts in these financial statements are rounded lo the nearest £. The financial slalements have bèen prepared under the historical cost convention, modified lo Indude certain financial instruments al fair value. The principal accounting policies adopted are sel out below. 1.2 Golng concem Thè financing of the School al 31 August 2022 comprised interim fundlng of £1.05m from a personal lender and loans of £458.000 from Governors and their families. The Sch(x)I's bankers, Lloyds, have orally indicated their willingnes5 to consider replacing this funding based on the School's return to profitability. For the reasons more fully explained in the Governors, Report, discussions with Lloyds have been deferred as a resul of the many issues arising from Covtd-19. The interim funding of £q.0Sm was agreed in August 2022 and is repayable on or before 26th August 2025. The adverse finaneial IMpt of Covid-19 has been significant. The losses arising have been funded initially by a BourKe Back Loan of £50,000, a deferral of amounts due to HMRC, repayment of which by inslalmenls commenced in Odober 2020 and have been completed in July 23 and finally by deferral of amounts due lo Teachers Pension Stheme for which there is also a repayment plan in place. As 8 result the SGhool has been funding the Covid-19 losses over a relatively short period and the Governors and School Exècutive have implemented measures lo rneel this funding requirement by income, cost and cash flow management. Based on these measures, forecasts for the yeaf ending August 2023 show the school returning ID positive trading cash flow and this has been evidenced by the settlement of arrears of PAYE and Teaehers Penslon totdling £101,361 and £99,000 respectively durin9 the year ended 31st August 23 as well as a reduction In Governors loarss of £50.000 during the &8me period. Although the School has incurred a defiryt during 21-22 and the slalemenl of financial position show a ¢umulalNe delicil of £1.5m, this is of course with properties included at 8 depreciated cost well bel¢)w their current values. During the year ended 31 sl August 23 the setuement of borrowngs as detailed above in exeess of £250,000 cle8rty demonstrales that the School is having no drfficully meeting liabilities as they fall due and is generating significant operating cash flows. Draft management accounts and forecast5 for the ye8rs to August 2023 and August 2024 show significant surpluses that will continue ID generate sufficient cashflows lo reduce borrow1rS fvrther before the persc)nal lender finan of £1.0Sm is due for repayment in August 2025. By this time the expectation is that the School will have both the AugLJSt 2023 and August 2024 accounts approved and swing significant surpluses that will support refinancing of the É1.0Sm loan facility. The Twsièes therefe have a reasonablè expectation that the company has adequate resources lo continue in operational existence for th8 fore5eeabl& future. Thus they eontinue to adopt the going concem basis of a¢untIng in preparing the annual accounts. 1.3 Charitable funds Unreslri¢18d furKls are available lor use at the discretion of the Governors in furtherance of their charltable otyectwes. 12-
POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 27AUGUST 2022 Ac¢¢untlng policies {Contlnued) Restricted funds are Subjeet to specrfic conditions by dOrS as lo h¢)w they may be us8d. The purposes and uses of the restried funds are set out in the notes lo the financi statements. Endowment funds are subject to specific conditions by donors that the capital musl be maintained by lh8 school. 1.4 Incomlng resourcfjs Income is recognised when the school is legally èntitled to it after any performance condrtions have been mel, Ihe amounts can be measured reliably, and it 15 probable that income wll be received. Fee income 1$ reeognised in the Slat8menl of Finanual Activities on the accruals ba8is. Fees reiVed in advance of education to be provided in fijture years are held until either taken to income in the lem or else refunded. Cash donation5 are recognised on receipt. Other donations are recognised ¢)nee the school has been notified of the donation, unless perfortnanee eonditions require d8ferral of the amount. Income lax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the lime oflhe donation. Legacies are recognised on r8ceipl or otheiSe if the school has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as 8 contingent asset. 1.5 Resources expend•d Expenditure is recognised once there is a gaI or constructive obligation to transfer economic benèfit to third party, it 15 probable that a transfer of e¢LomiC benefrts will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classified by adivity. The costs of each activty are made up of the lolal of dir¢1 eosts and shad costs. including support costs involved in undertaking each activrty. Direct costs attributable lo a single acliwty are allocated directly lo that actNty. Shared costs which eontn.bthe to more than one activity and support costs which are not attributable lo a sir@le activity are apportioned between those actiVitS on a basis ¢onsistent wlh the use of resources. Central staff St$ ?re allocated on the basis of lime sperrt, and depreaation charges are allocated on the kx)rtion of thg asset's use. Expenditur8 is accounted for on an accruals basis. The cost headings comprise expenditure. including staff costs and depreaalion, directly attributable lo the acts"vrty. ere costs cannot b8 directly attrlbuled they have been allocated to activities on a fair and reasonable basis. Support costs comprise all servi$ induding an appropriate proportion of general overheads spe¢ffically identified 85 wholly or mainly incurred in SLFPPOrt of the dir8Ct charitable expenditure. Govemance costs comprise the costs incurred in managing the sthools assets, organi5ational management, administration of and compliance with the slalutory requirernenls of the schoL)l. Where overheads and other costs canngt be diTeLlly attributed they have en allocated on th8 basis of management estimates of the amount attributable to such activitiès. either by referènce to staff lime or space occupied, if material. Expenses are in¢lusive of VAT as it is irrecoverable. 13-
POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 27AUGUST2022 Accountlng pollGles Icontlnuedl 1.6 plant and equlpmgnt Property, an1 and equipment are initially measured at cost and subsequenlty measured at cosl or valuation, net of depreciation and any impaimienl Ioss8S. Derxeclation is recogni$ed so as lo wite off the cost or valuation ot assets less thr resldual values over their useful lives on the following bases.. Freehold land and buildlngs Prefab buil*JirEs Plant and machinery Fixtures. fittings. plant and equipment Computers and office equipment Motor vehicles over SO years over 20 years over 5 years over 10 years over S years over 4 years The gain or loss arising on the dispgsal of an asset is det8m)ined as the dtfference been the sale proceeds and the carying value of the asset, and is recognised in the statement of financial oaivilie5. 1.7 Impalrment of non-current assets At each repprting end date, the school rewews the carrying amounts of ils tangle assets to determine whether there is any indication that those assets have suffered an impairment loss. If any sh indKalion exists, the recoverable amount of tho asset is esllmaled in order lo determine the extent of the impaimient 108s lif any). 1.8 Cash and Cash equivalents Cash and cash equivalents irbclude cash in hand, deposits held al call with banks, other short-term liquid investments wf(h original m2turitie5 of three months gr less, and bank overdrafts. Bank overdrafts are shown within boNowngs in current li8bilities. 1.9 Financial instruments The school has glected to apply the provisions of Section 11 'Basic Finanoal Instruments, and Section 12 'Olher Financial Instruments Issues, of FRS 102 to all of its finanaal instruments. Financial instruments are recognised in the school'5 balarKe sheet when the school becomes paty to the contractual provision5 of the instrument. Financial assets an(1 li8bilities are offset, with the net amounts presented In the finanryal statements. when there is a legally enforceable right lo sel off thè recogr)ised amounts and there 15 an intention to settle on 8 net basis or to realis6 the asset and settle the liability simultsneou4y. Basic linancial ass•ts Basic financial assets, which include trade and other receivables and ¢8sh and bank bllances, are inilially measured at transaction price induding transaction costs and are subsequently carried at amortised cost using the effective interest mèthod unless the arrangement constitutes 8 financing transaction. wherg th8 transaction is measured al the present value of the future receipts discounted at a matkel rate of interest. Financial assets classified as receivable wlhin one year are not aM0'sed. 14-
POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 27AUGUST 2022 A¢¢ountlng pollcles Icontlnuedl Basic financlolllabilitits Basic finanaal liabilities, including trade and other payables ond bank loans are inthally iecognised at transaction price unless the arraroemenl wnslilules a financing transaction, where the debt instrument is measured at the present value of the fUre payments discount8d at a market rate of inlere51. Finanaal liabilities dassifEd as payable wlhin on8 year are not amortised. Debt instrumerrts are subsequently carried at amortised cost, using the effective interest rate method. Trade payables are obligations lo pay for goods or services that have been a¢qulred in the ordinary course of operations from suppliers. Amounts payab are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-currenl liabilities. Tiade payables are recognised initially at Iransaclion price and subsequently measured at amortised cost using the effective interest melhod. Derecognition of Iln•n¢ial liabilities Financial liabilities are derecognised when the school's contractual obligations expire or ore diseh8rged or cancelled. 1.10 Employee benellts The cost of any unused hdiday entitlement is recoynised in the period in whlch the employee's services are received. Terrninalion benefits are reccgnised immediately as an expense when the school is demonstrably committed lo lemiinate the employment of an employee or to provide tgmiination benefits. 1.11 Retirement benefits The School participates in a mulli employer pension scheme, the Government's Teachers Pension Defined Bengfits Scheme, for ils teaching staff. The pension liability is the responsibility of the Teachers, Penslons. As a result il is rt possible to identify the a$¥els and liabilities of the sthemè that are att11ttable to the school. Accordingly, the scheme is accounted for as if it were a defined contributions scheme. The school als9 contributes lo d8ffin8d contribution schemes for non-teaching staff. Conlribulion5 Payable for the year are charged in the Statement of Financial Aclivilies. 1.12 Leases Leases are classified 8$ finance leases whenever the terms of the lease transfer subslanlialty 811 the risks and rewards of 0ershiP to the lessees. All olher leases ore cla55ified as operating18ase$. Assets held under financo leases are recognised as assets at the lower of the assets fair value 8t the dale of inception and the present valuè of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Leas8 payments are Irealed as consisting of capital and interest elements. The interest is Charged lo nel incomellexpenditurel for the year so as to produce a constant periodic rale of interest on the remaining balance of the liability. 1.13 Govomment grants Govemmenl grants are recognised at the fair value of the asset recelv&Y or receivable vthen there Is reasonable assurance th81 ts grant condrbon8 will mel and the grants will be received. A grant that speafies rf0Mian¢e condf(ions is recognised in income when the performance conditiS are mel. Vlfftere a grant does ng1 specify perfom)ance conditions It is rec4)gnised in income when the proceeds are received or receivable. A grant recerved b&fore the reeognitson criteria are satisfied is recognised as a 15-
POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 27AUGUST 2022 A¢eounflng policies Icontlnuedl 1.14 Fees In advance Fees received in advance are deferred until such time that they become receivable, and are then re)gnISed in the Ststement of Financial Activities. Crftlcal accounting estimates and ludgements In the application of the school's accounting policies, the Govemors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The eslimales and associated assumptions are based on historical experience and Otr factors that are considered lo be relevant. Adual results may differ from these estimates. The estima18s and underlylng assumptions are reviewed on an ongoing basis. Revisions lo auntIng estsmates are recognised in the period in which the estimate is revised where the revlsion affects mly th81 Per1. or in the period of the rewsion and future pertods where the revision affects both current and futu periods. Glfts and speclal recglpts Unre$trf¢t¢d Restrlctsd funds funds Total Unrestrfcted funds 2022 2022 2022 2021 Donations and gffts 558 558 2.000 Incoming resourc•s from charitable actlvltl•8 Gros$ fe88 Less: Total bursarie5, grants and allowanc88 Totsl 2022 Gr055 1885 Less.. TOIBI bw5aries. grants and allowanc•s 2021 Total 2021 2022 2022 2021 Sales within charitable activities Other income 2,520,684 40,171 1178.$861 2,342,118 40,171 2,257,481 16,378 1200,9781 2.056,503 16,378 2,560,855 1178,5661 2,382,289 2,273,859 1200,9781 2,072,881 16-
POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 27AUGUST 2022 Investment Income Unr•stricted Unrestricted funds funds 2022 2021 Interest receivable 21 20 other incoming resources Unrestricted funds 2022 Total Unrestrlcted funds 2021 2022 Government grants 34,974 The above represenls amounts re1vable under the Coronavirus Job Retention Scheme. Ralslng funds Unrestrl¢tod Unrestrlcted funds funds 2022 2021 FundTaisin Advertising and ublici 8,114 8,940 8,114 8,940 17-
POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 27AUGUST 2022 Charitable a¢tlvltle8 Teachlng Premlses Support Costs of schoollng 2022 Tot41 2022 Totsl 2021 2022 2022 Staff costs Depreciation and impairment Other eharilable expenditure 1,503,580 45,763 40,146 56.796 38.557 177.210 259.461 1,819,837 1.644,739 3.336 87,656 97,420 217.450 434,806 416,140 1,589,489 272,563 480.247 2,342,299 2.1 S8,299 Share of govemance costs {8ee note 91 27.726 27.726 37,234 1.589,489 272,563 507.973 2,370,025 2.195,533 Analysls by fund Unrestricted funds Restricted funds 1,586,073 3,416 260,449 12,114 507,973 2.354,495 2,180,003 15,530 15,530 1,589,489 272,563 507,973 2.370,025 2,195,533 For the perfod end¢d 29 August 2021 Unreslricled funds Restricted funds 1,444,074 3.416 258.642 12.114 477.287 2.180.003 15,530 1,447,490 270,756 477.287 2,195,533 18-
POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE PERIOD ENDED 27 AUGUST 2022 Support costs Support Governance costs costs 2022 2021 8asls of allo¢atlon Staff costs Depreciation Printsng, postage and Off stationery Telephone costs Motor and travel School costs Computer costs Legal. professonal and corbsullancy fees Equipment hire Bad and doubtful debts 259,461 3,336 259.461 3,336 247.021 3,440 30,814 14,034 9.152 79,944 22,131 30,814 14,034 9,152 79,944 22.131 22,935 5,818 6,895 50,462 20,974 14,182 879 14,182 879 1,530 5,882 12,523 12,523 60,119 Subyeriplions and donations Sundry expenses 18,314 10,051 18,314 10,051 3,089 11.888 Audit fees Accountsncy and payroll School insp¢dion costs 14,400 10,471 2,855 14,400 10,471 2,855 12.600 Govemance 21.660 Goveman 2,974 Govemanee 474,821 27.726 502.547 477,287 Analysed between Charitable 8Ctivitres 480,247 27,726 507,973 477,287 Govemance costs indudes payments to the auditors of £14,40012021- £12,600) for audit fees. In addition 51$ of £10,471 were Inrred on accountancy. bookkeeping and payroll services12021 - £21,660). 10 Governors None of the Govemors lor any p8rson$ connected with them) received any remuneration during the peTiod and total reimbursed expenses amounted lo £Nil.
POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED> FOR THE PERIOD ENDED 27 AUGUST 2022 11 Employee5 The average monthly number of employees durirKJ the period was: 2022 Number 2021 Number Teaching staff Support staff 52 17 16 Total 69 62 Employment Costs 2022 2021 Wages and salanes Social security costs Other pension costs 1,489.985 131,201 198,651 1,341,773 111,442 191,524 1.819,837 1,644.739 The number of employees whose annual remuneration was more than £60,000 os follows.. 2022 Number 2021 Number £80,001- £90,000 Of the employees whose emoluments exceed £60,000. 1 12021 1) has retirement benefits accruing under a defined benefft pension scheme ITPSI described more frjlly in note 21. 12 Other 2022 2021 FinanGing interest and charges 84.670 104,131 84.670 104.131 13 Taxatlon The charlty is exempt from tax on incomg and gains falling within section 50S of the T8xes Art 1988 or section 252 of the Taxalionof Chargeable Gains Act 1992 to the extent that these are applied lo its charitable objects. -20-
POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 27 AUGUST 2022 14 Pmperty, plant and equipmènt Freohold knd Flxtureg.Motor vehl¢l•s and bulldings Ilttlngs. plant and ¢qulpm8nt Total C05t At 30 August 2021 Additions Disposa15 1,601.891 996,166 29,705 27,000 20,000 127,0001 2,625,057 49,705 127,0001 At 27 Augusi 2022 1.601,891 1.025,871 20.000 2,647.762 Depreciation and Impairn)ent At 30 August 2021 DepreclalSon charged in t period Eliminated in respect of disposals 712,892 30,715 816,054 56,941 27,000 1.555,946 87,656 {27,0001 127,000) At 27 August 2022 743.807 872,995 1,616,e02 Carrylng amount At 27 August 2022 858,284 152.876 20,000 1,031,160 At 29 August 2021 888,999 180,112 1,069,111 TPe net carrying value of tangible fixed assets indudes the following in respect of assets held Lnder finance leases or hire purchase contracts. The depreaalion charge in respect of such assets amounted to £23,105 12021 - £31,371) for the pericKI. 2022 2021 Motor vehieles Computer5 and office equipment 20,000 39,313 62,418 59,313 62,418 15 Flnan¢lal instruments 2022 2021 Carrylng amount of flnanclal assets Debt instruments measured at amortised cost 41,325 26,442 Carrylng amount of fjnanclal Ilabilitios Measured at amortised cost 2.115.279 2,015,690 -21
POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 27AUGUST2022 16 Trade and other roceivables 2022 2021 Amounts falllng due wlthln one year: Trade receivables Other receIvabS Prepayments and accrued income 41.325 26.322 120 16,763 60,006 101,331 43,205 17 Borrowlngs 2022 2021 Bank loans Other loans 41.667 1.508.000 50,000 1,508,000 1.549,667 1,558.000 Pay8tAe wlhin one year Payat4e aftér one year 468,000 1,081,667 1,516,333 41,667 The loan of £1,050,000 Ir¢m a Ihlrd party individual is secured by a legal tharg8 over the property known as Pownall Hall School, Carrwood Road, Wilmslow, SK9 5DW. The loan from the thlrd paty individual was replaced in Ihg year by a loan of the same amount frcth another Ihlrd paty individual on 26th August 2022 The original loan carried an interest rate of 50A pa. Tre new Ii)an Is Interest fre8 for a period 36 months al whid) point the schod will havè obtained replacement funds from ils bankers. The loans from the Govemorfs and their families cary an interest rale of 2.5% pa above base (mirimum 3% pa}., although 3% per annum ha5 now been agreed as the maximum rate. These loans have since been extended and repaym&nt$ have commenced. During the year ended 31 st August 2023 there has been a £50,000 repaymènt of these loans and a monthly repayment plan is now in place whlch will be accelerated once the TeaCr Pension Scheme settlement is COmFete. The expectslion is that these loans will be reduced by 8 fiJrther £155,000 during the year erKling 31st August 2024. Additional commtsry on these loan¥ is provldad in the Governors, Report and In Note 1.2. -22-
POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 27AUGUST 2022 18 Flnanc• lease commltsnents Future minimLMn lease payments due un¢Jer finance leases.. 2022 2021 thin one year Ithin M and five years 29,014 55,6g4 33.869 62.546 84,708 112,824) 96.415 {20.7291 Lfj$s'. fvtU finance charges 71,884 75,686 The aljove iepresents finance leases to acquire equipment and motor vehicles entered into for a term of 3 or 5 years. All leases are on a ftted repayment basis and no arrangements have been entered into lor contingent rental payments. The finance lease credit$ are secured over the assets to thch they re18te. 19 Current Ilabllltles 2022 2021 Notes Bank loans Obligations under flnance leases Other borrowings Other taxation and social secunty Deferred income Trade payables Other payabl8S Accruals 17 18 10,01)O 22,552 458,000 134.379 420,633 71,562 357,643 84,523 8,3 23,802 1,508,DOO 93,945 601,663 68,165 233,133 80,706 21 1,539,292 2,617.747 Other payablé includes deposrts of £144,334 12021- £90,834) technically payable with one terms notice hence included as due in under 1 year, However. expectation is that these wll be repaid over a numter ol year8 as each pupil leaves the 5th¢1. 20 Monwcurrent Ilabllitiès 2022 2021 Notes Bank loans Obligatsons under finance leases Other borrowings Deferred income 17 18 31,667 49,332 1,050,000 35.595 41.667 51.884 21 1,168,594 93,551 -23-
POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 27AUGUST 2022 21 Deferred Incom• 2022 2021 Artsing from Advance fees and deposits 456,228 601,6e3 Deferred in¢ome is included in the financial statements as follows: 2022 2021 Current liabilities Non-current liabilrtles 420,633 35,595 601,663 456,228 801,663 Fe08 In advance rnovement 2022 Br%JJght foThvard August 2020 utllised In year Received in the year 527,465 1527,4851 601,663 Carried forward alAugust 2021 456,228 Parents may enter into an agreément lo pay the school fees in adv8nce. The money may be retumed subject lo specffic eonditicffls on the receipt of one lemi's notice. In 8ddilion the school receives advance payments from Cheshire East In respect of GhildGare funding for the Early years pupils and from parents prfor to the start of the Mi¢haelmas term in September. The amounts paid Ir) advance are split belween fees in connect*)n wlh the year ended 31st Aihjust 2023 and lrfelime ffjes paid for futur8 school years Post 31stAugust 2023. -24-
POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE PERIOD ENDED 27AUGUST 2022 22 R•tlr•mgnt bgnefrt schemes The school parh'opates in the Teachers, Pen&on Scheme I'lhe TPS'I for its leaching staff. The pension charge for the year includes contributions payable to the scheme of £188,228 {2021- £182,775) and at the year end contribuiions of £229,28512021- £129,971} attrued in respect of contributions lo the scheme. The TPS Is an unfunded Multi-emoyer defined benefits pension scheme govemed by The Teathers, Pen&ons Regulation5 2010 las amen(ledl and The Teachers, Pension Scheme Regulations 2014 18$ amended). Members contribute on a'pay as you gg. basis with eontributions from mèmbers and the employer being credited to the Exchequer. Retirement and other pension beneffts are paid by public funds provided by Partiament. The employer conlribulion rate is set by the Secretary of Slate following scheme valuations undertaken by the Government Actuary's Department. The most Tecent actuarial valuation of the TPS wa5 prepared as at 31 March 2020 and the Valuation Report. vlhich was published in October 2023. Followng the Mccloud judgement, the remedy proposed th81 when b8nefils bèty)me payable. eligible embers can select lo receive them from either the reformed or legacy schemes for the pèriod 1 April 2015 10 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the greater benefits. and in preparing the 2020 valuation have valued the 'greater value, benefits for groups of relevant memters. The valuation confimied that the emptoyer contribution rate fgr the TPS would incr8ase from 23.6% to 28.6% from 1 April 2024. Employers are also raquired to pay a hOMe admir)istralion levy of 0.08% giving a lotsl employer conlributlon rate of 28.68%. The charge to profrt or loss in respect of defined contribution schemes was £10.42312021- £8.7491. and at the year end £2,425 was accrued12021- £3.300} in respect of contributions lo thls scheme, .25-
POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 27AUGUST 2022 Restrl¢t•d funds The fvjnds of the charity indude restrKted funds comprising the following unexpended balances of d¢)nations and grants held on trust for specific purposes. The expended resources relattr lo the deweciation tharges for Ihe period and repair work undertaken in the year. At the year end, unexpended income was £179,03812021 . £194,568} B•lance at 30Augu$t 2020 ResouTC 0Xnd#d Balance at 30 August 2021 R8sourc•$ Balance at expended 27 Augu81 2022 Roof appeal Playmatt Netbalennls ¢ourt Playground EYFS Canopy and play area Nursery canopy Astro turf Outdoor classroom and lighting Cricket works Radio station Ipad5 Stage lighting, sound and recording equipment Outdoor play area 87.601 19,852 6,651 11,231 2,503 34,761 10,665 3,946 7.200 3.048 {2,576} 1537} (2,217) {2,620} 16261 (7561 (1,5171 1821 12,4001 11.0161 85,025 19,315 4,434 8,611 1,877 34,005 9,148 3,864 4,800 2,032 12.576) 1537> 12,217} 12,620} 1626} 7561 {1,5171 (821 {2.4001 11,0161 82.449 18,778 2.217 5,991 1,251 33,249 7,631 3.782 2.400 1,016 6,894 15,746 18621 13211 6,032 15.425 (862) {321} 5,170 15,104 210,098 115.530) 194,568 {15,5301 179,038 24 Analy$l$ of net assets between funds Unrestrictod Restrfctod funds funds 2022 2022 Total Llniestrlcted Restrlcted funds funds 2021 2021 Totsl 2022 2021 Fund balarbces at 27 August 2022 are represented by". Property, plant and equipment 852,122 Current asselsl{liabilities) {1,338,9051 Long term liabilities (1,166,594) 179,038 1,031.160 874.543 (1.336.905) {2,369,9581 11.166.594) 193,5511 194,568 1,069,111 12,369,958) (93,5511 (1,653.3771 179,038 11.474.339) {1,5e8,96S1 194.568 {1,394,3981 Restricted Funds are funds which have b88n given for parttcular purposes and projects. The restricted fijnd must be used for the purpose specified ie,. roof appeal, the netball court, nursery play floor, Bay Wndow pairs, Pupil playground, quality improvement, ICT sofvare and Earfy Years Foundation Stage canopy an play area.
POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMEKfs (CONTINUED) FOR THE PERIOD ENDED 27AUGUST2022 25 Operating It commltments At the reporting end date the school had OLrtslanding commitments for future minimum leas8 payments under noTrcancellable operating lease5. which fall due as follows.. 2022 2021 thin one year Between and fve years 5,454 16,363 900 21,817 900 The operab.ng leases represent leases of Idephones, copiers and computer equipment from third parties. The leasos arg negolialed over terms of 5 years and rentals are fixed for thls period. Amounts recc9nised in the Ststement Of Financlal Activities for the year was £1.24212020 - £1,242). 26 Related party transactlons Remuneratlon of key management personnel Th& remuneration of key management personnel is as follows. 2022 2021 Aggregate compensation 142.423 154,404 Loans During previous years, th8 school received loans from Governor Mr G D Dawberfs immediate family and from the Chair of Govemors Mrs E M MacAulay. shown in other loans in note 17. These loans remain outstanding as follows.. Loans from the famlly of Mr G D Dawbgr Balance Balance outstsndlng outstsndlng 30th August Advanc•s In Rgpaymènts 271h August 2021 porlod in perlod 2022 Loan from A Dawber (wrfe ofmr Dawberl Loan from G Dawbtrr (son ol Mr Dathrl 233,000 145,000 233.000 145,OIK> 378,000 378,0110 Ab)ve loans were originally agreed w6th Interest payable at base rale plus 2.5% (minimum 30kn pal. As a result of a subs8quent agreement, interest on the loans is now fixed 813% pa. The whole of the above108ns have been classified as short tfjrni r8presenting condthons existing at the balance sheèt dale. However subsequent 8Xtensicffi of theloon has confirmed that this balance will not be repaid unb'l altemallve long tem finan is agreed. -27-
POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 27AUGUST 2022 26 Related party trans•¢tions (Contlnuedl The tems of the loans, inclvding interest rale payable, were approved by the Govemors 18xcluding Mr Dawberl having regards to prevailing rates for loans and d&posils. Interest of £10,546 has been paid during the year and further interest tolalling £22,680 is accrued al the year erKS. The interest eharge for the period in relation to the aboveloons is £11,380. Loans from Mrs E M MacAulay (Chalr of the Board of Goyomors) Balance Balante outstandlng outstanding 30th August Advances In Repayment$ 27th August 2021 pfrrlod In period 2022 Loan from EM MaG4ulay 80,000 80,000 80.000 80.000 Above loan was originally agreed wth interest payatAe al base rale plus 2.5% (minimum 3% pa). As a iesull of a subsequent agreement, inleresl on the loans is now fixed at 3tyA pa. The fvll amount of £80.000 due lo Mis E M MacAulay was outstsnding as at 27th August 2022 the balance sheet date. However subsequent extension of the loan has confirmed th81 this balance wll not be repaid until allern8llve long term finance is agreed. The lems of the loans, induding interest rate payaEJe, w8r8 approved by the GoverrK)rs lexcluding Mrs MacAulayl hoving regards lo prevailing Talès for loans and deposils. Interest of £2,400 has bèen paid during the year and further interest lotalling £4,800 is accrued os atAugLtst 2022. The interest charge for the period in relalKJn to the above loans is £2.400. 27 Cash generated from operatlons 2022 2021 Deficit for the period 179,9411 (198.7291 ustments for.. Investment income recognised in stslement of financial aclivilie$ Depreeiatfjon and Impainent of propgty, plant snd euuipment 1211 87,6S6 {201 97.420 Movemerkts in working capitsl: Ilnereaselldecrease in trade and other receivables Increaselltjecrease) in trade and other payables (Decreasellincre88e in deferred income 158,126} 152.158 (145.435} 50,188 185,3651 74.198 Cash absorbed by operatlons (43,7091 162,3081 -28-
POWNALL HALL SCHOOL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED FOR THE PERIOD ENDED 27 AUGUST 2022 28 Analysls of changes In nel Idebtyfunds AI 30 August 2021 Cash Newfftn•nro At 27 August 2022 Cash at bank and in hand 204.564 1105,528) 99,058 Loans falling due within one year Loans falling due after more than one year Obligations under finance leases {1,516.3331 1,048.333 {41,6671 11,040,000) 175,6861 23.802 1468,000) 11.081.667) (71,8841 120,0001 1,429,102) 173,393> 120.0001 11.522,4951 -29.