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2021-08-31-accounts

Charity Registration No. 526973

Company Registration No. 00914963 (England and Wales)

WINDERMERE EDUCATIONAL TRUST LIMITED

T/A WINDERMERE SCHOOL

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL LEGAL AND ADMINISTRATIVE INFORMATION

Governors A Chamberlain
J Dearden
C Rickart
A Roberts (Appointed 7 October 2020)
P Hogan (Appointed 4 January 2022)
I C Kenny (Appointed 5 May 2021)
P Scott (Appointed 5 May 2021)
C A Dodwell (Appointed 5 May 2021)
Secretary S Ross
Charity number 526973
Company number 00914963
Principal address T/a Windermere School and
Windermere Preparatory School
Browhead
Windermere
Cumbria
LA23 1NW
Registered office T/a Windermere School and
Windermere Preparatory School
Browhead
Windermere
Cumbria
LA23 1NW
Auditor Jackson Stephen LLP
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
Bankers HSBC Bank plc
64 Highgate
Cumbria
Kendal
LA9 4TF

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL CONTENTS

Page
Governors' report 1 - 8
Statement of Governors' responsibilities 9
Independent auditor's report 10 - 12
Statement of financial activities 13 - 14
Balance sheet 15
Statement of cash flows 16
Notes to the financial statements 17 - 30

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 AUGUST 2021

The Governors of Windermere Educational Trust Limited present their annual report and audited accounts for the year ended 31 August 2021 and confirm they comply with the requirements of the Charities Act 2016, the Charities SORP (FRS 102) and the Companies Act 2006.

REFERENCE AND ADMINISTRATIVE INFORMATION

Windermere Educational Trust Limited (“The Trust”) was founded in 1863 in Lytham St Anne’s. It is constituted as a Company Limited by Guarantee, registered in England and Wales, no. 00914963, and is registered with the Charities Commission under Charity No. 526973.

The Trust operates on three sites known as Windermere School, the Browhead Campus, for those in Year 7 and above, the Elleray Campus, for pupils in Pre-School to Year 6 and Hodge Howe, our Sailing and Outdoors Centre on the shore of Windermere. The Trust also operates under the trading name Windermere International Summer School.

There is one Governing Body. Details of the members of the Governing Body, together with the Trust’s officers and principal advisors, are given on the legal and administrative information page.

COVID 19

The global pandemic has continued to affect the nation and the School throughout the academic year 2020-2021 and into 2021-22. Although the School has continued to demonstrate resilience and adaptability, the impact of the pandemic can be seen in the financial results. In May 2021, the School took on a Coronavirus Business Interruption Loan in order to ensure cash flow stability throughout the next period. The School is also looking at opportunities for planning gain on parts of the estate which are not used currently, in line with the Board’s responsibility to ensure the viability of the School through the current challenging business environment.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Documents

The Trust is governed by its Memorandum of Association and Articles of Association last amended on 20 January 2017.

Governing Body

The Governing Body is self-appointed with one third of its members required to retire by rotation at each AGM. The first appointed, or longest serving since last reappointment, are the first to retire. Governors retiring by rotation can be re-elected.

New members of the Governing Body are elected on the basis of nominations of the Governors and the executive officers based on the candidates’ professional qualities, experience, personal competence and local availability.

Recruitment and Training of Governors

New Governors are inducted into the workings of the Trust, including Governing Body policy and procedures, at a series of induction meetings specially organised for them by the Head, the Clerk and other Governors. Governors carry out an annual skills audit and undertake to procure additional support or training to ensure the appropriate skills remain available to assist the School in meeting its strategic and operational objectives.

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Organisational Structure

The Members of the Governing Body, as the Charity Trustees, are legally responsible for the overall management and control of the Trust. The Governing Body usually meets six times a year. The work of implementing their policies is carried out by five Committees:

The Finance and General Purposes Committee scrutinise revenue, the budget, the future capital plan, capital expenditure and monitor financial risk. This Committee also supervise and finalise the audited financial statements and annual report for approval by the Governing Body. The Finance and General Purposes Committee is chaired by Mr J Dearden and reports to the Governing Body at each board meeting.

The Nominations Committee , chaired by Mrs A Roberts, oversees the orderly succession for appointments to the Board and senior management.

The Risk Management Group monitors the strategic risks facing the Trust. The group is chaired by the Operations Manager, Mr R Hennah and reports into the Board at each meeting via Mr I C Kenny.

The Education Committee chaired by Mr C Rickart, monitors and reviews the academic, co-curricular and pastoral provision of the School, and makes recommendations as appropriate to the Governors.

The Marketing Committee , chaired by Mr P Scott, monitors the recruitment of new pupils through marketing and admissions initiatives.

Some governors have delegated responsibilities. For example, Mrs A Roberts (previously Mrs S Hamilton until her resignation) oversees all aspects of Safeguarding. Mrs A Roberts also overseas the Early Years Provision.

The Chair of each committee co-opts members of the Governing Body and any additional external expertise they deem appropriate for matters under consideration by each committee.

The day to day running of the school is delegated to the Headmaster supported by the Senior Management Team and Senior Leadership Team. The Headmaster attends all meetings of the Governing Body’s Committees with the exception of the Nominations Committee.

Employment Policy

The School is an equal opportunities employer. Full and fair consideration is given to job applications from disabled persons and due consideration is given to their training and employment needs. Consultation with employees, or their representatives, has continued at all levels with the aim of taking the views of employees into account when decisions are made that are likely to affect their interests.

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Trust Management

The Governors give consideration to the major risks to which the Trust is exposed. The Governing Body has ultimate responsibility for managing any risks faced by the Trust. Detailed consideration of risks is delegated to the appropriate sub-committee. The structure of these committees comprises appropriate membership from the Governing Body, assisted by the School’s Senior Management and Leadership Teams and any external expertise that may be required from time to time.

The Trust management process and the resulting reports identify risks, assesses their impact and likelihood and, where necessary, recommends controls to mitigate and monitor those risks that are assessed as high.

The generic controls used by the Trust to minimise risks include:

Terms of reference for each committee and Trust Board activity; Comprehensive budgeting and management accounting; Established organisational structures and lines of reporting; Formal written policies including clear authorisation and approval levels; Vetting procedures as required by law for the protection of children.

Health and safety is always a significant area for Risk Management. The risks range from fire and infrastructure to personal risks (most notably when away from the campus on trips and expeditions), and more recently contagion risk. The level and breadth of activity at the Trust 's Schools is impressive and the risks associated with all activities are minimised by employing a competent and qualified Operations Manager, and a trained Educational Visits Coordinator. The Board used Kym Allen Associates to advise on Health & Safety and Educational Visits throughout 2020/21.

The Governing Body is satisfied that for all major risks identified, appropriate controls have been put in place and maintained to mitigate those risks adequately. It is recognised that systems can provide only reasonable but not absolute assurance that major risks have been managed.

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Charitable Objects

The Trust’s Objects, as set out in the Memorandum of Association, are the advancement of education by providing general instruction of the highest class, together with physical and moral guidance in the School’s management by the Trust. In furtherance of these Objects and for the public benefit, the Trust has established and administers bursaries, scholarships, awards and other benefactions, and acts as the Trustee and Manager of endowments, bequests and gifts given or established in pursuance of these Objects.

The Board is mindful of the long-standing need to provide public benefit and of the requirements of the Charities Act 2016. In this regard, the Board has monitored closely the supplemental guidance produced by the Charity Commission, in particular its public benefit guidance on advancement of education and on fee charging. Despite a continuing difficult economic climate the Trust has almost exceeded £1m of support provided by way of bursary, discount or financial support.

Vision

To be the best small school in Britain.

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Mission Statement

The Trust’s mission is to produce confident and compassionate people. Through teaching excellence, supportive pastoral care and experience of our environment, we encourage individual success for community good.

Our vision and mission are shaped by our determination to encourage self-knowledge, articulated by our school motto: Vincit qui se vincit – One conquers who conquers oneself. Today that means: overcome yourself and you will achieve.

The School challenges pupils to excel, to have sufficient self-reliance to know that determination can overcome adversity, and to be of value to society.

Intended Impact

Within its charitable Objects, the Trust’s intention is to provide a first-class education through strong academic tuition and by developing broader skills that enable every pupil to realise his or her potential to the full. This involves emphasis on the co-curriculum through cerebral, sporting, artistic, team-building and social skills.

This policy builds self-confidence and life skills in our pupils and inculcates a desire to learn and a willingness to contribute to the wider community whilst at school and in later life.

Aims

The Trust’s aims for the public benefit are to:

  1. Inspire our pupils through a broad and balanced curriculum that challenges inside and outside the classroom, where they learn about their strengths and weaknesses, and are encouraged to strive for excellence in all things;

  2. Support our pupils to develop their individual academic, creative and sporting talents and skills of leadership to enable and empower them to make an active and real contribution to their world;

  3. Use our unique location at the heart of mountains, lakes and rivers as our greater classroom for adventure and adventurous learning, where our pupils will learn directly about the environment, each other and themselves;

  4. Foster a democratic and accountable culture where our pupils contribute fully to school and community life and take increasing responsibility for their own learning and actions;

  5. Encourage a global perspective by providing opportunities for all our pupils irrespective of gender, race and beliefs and encouraging them to value and respect differences.

Strategies to Achieve the Aims

The Governors began a major review of Strategy in 2018 resulting in the ‘5 Year Strategic Plan 2018-2023’ which was shared with employees and parents in 2019. The Plan created a roadmap for development under the four main areas of Curriculum, Community, Estates and Funding, broken down into a series of Initiatives, each with a Governor Sponsor and an Owner from the Senior Management Teams.

Examples of initiatives currently in the plan are:

Curriculum – Further development of Pupil Pathways, a focus on Experiential Learning outside the classroom and a review of the provision of Adventure, Special Educational Needs & Disabilities and the Able Gifted and Talented program.

Community – Partnerships with Charities and Community Groups, a public lecture series and strengthening mentoring and exchange programs.

Estates – Development of the extensive estate to the best advantage of pupils.

Funding – Development of the International Summer School, a review of the fee discount model and Fundraising.

During the pandemic, the focus has largely been on the route back to normal operations, rather than on the furtherance of the initiatives above. It is likely that the pandemic will result in the need for some revision, and as such, the strategy will be reviewed within the next two years.

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Principal Activity

The Trust’s principal activity, as specified in the Memorandum of Association, is the advancement of education.

Public Benefit

Windermere Educational Trust Limited remains committed to the aim of providing public benefit in accordance with its founding principles. There is a requirement to demonstrate that public benefit for charitable purposes where it has hitherto been presumed in the absence of evidence to the contrary. This in turn calls for more detailed disclosures concerning our aims.

The awarding of bursaries for the needy is a measurable means of providing public benefit. The Board takes the view that bursaries awarded to those who would not otherwise be able to afford the fees are important, but not to the exclusion of the much wider benefit that the Trust provides within the community. Those pupils who attend our Schools and who receive financial support contribute to the School community in a variety of ways, and so the benefit is not purely to these pupils but to the Trust and, in some cases, to the wider community.

In 2020/21 the Trust awarded bursaries, scholarships and other awards almost totalling £1m (2019/20: £1.2m). Within this, means-tested awards based on a sliding scale according to financial circumstances totalling £408k were awarded to 46 pupils (2019/20: 69 bursaries totalling £558k). Bursary awards represented 6. 8% of gross income in 2020/21 (2019/20: 8.1%).

In addition to bursaries, the Trust has engaged in many other activities that provide benefit to the public within the Trust’s objectives. It is difficult to measure accurately the financial value of this public benefit. The benefit provided by bursaries and other activities can then be considered alongside the benefit of educating the 260 UK pupils which, in itself, has saved the exchequer some £1.5m.

The Trust is an important part of the local community with 11 9 full and part-time employees in 2020/21 making it one of the largest employers in the district. By far the largest proportion of the Trust’s expenditure is accounted for by salaries and purchases from local and regional businesses. Thus a significant proportion of funds are invested directly into the local economy.

Other Charitable Activities

In addition to its primary purpose, in normal years the Trust provides a number of services and experiences to local primary schools free of charge. These include a ‘Chemical Magic’ Show, Watersports Day, Languages Day and Geography Day, in addition to hosting an annual Cross-County Event for 26 local primary schools.

Sailing and Watersports tuition at the School’s lake shore Watersports Centre is provided on a weekly basis to two local primary schools at minimal charge, and the Trust also provides a high quality School Meals Service to another school.

The Trust also frequently lets the School’s facilities at no charge to local community or charitable groups such as the Community Choir, Rotary Club, County Sports Associations and Blackwell Sailing who provide free of charge sailing activities for those with a disability.

Pupils also make significant contributions to the local community and charities. The School runs a Service programme for Years 10 and 11, where pupils engage in a variety of activities for one afternoon per fortnight for the benefit of the local community. Examples of activities undertaken include repairing footpaths on the fells, conservation work in the grounds of a local visitors’ centre, planting trees and clearing litter from the National Park.

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

STRATEGIC REPORT ACHIEVEMENTS AND PERFORMANCE

Academic

In 2021 the Trust celebrated impressive GCSE results with 98% (2020: 98%) of pupils obtaining 5 or more level 4-9 / A - C GCSEs, and 53.4% (2020: 53.3%) of grades were a level 7 or above (A or A), when the national average for level 7+ was 28.9%.

Despite the challenges of the pandemic, in 2021 the Trust enjoyed its best ever International Baccalaureate results with a mean average score of 36.4 (2020: 34.4) against a 2021 world average of 3 3.0 points. 36.4 points is equivalent to achieving 3 A levels with grades of A*AA.

An impressive ten students scored 40 points or more, which is equivalent to 4 or 5 A at A Level. The pass rate was 96.4% (2020 - 94.7%). Ten students took the IB Career-related Programme with equally impressive results; four students achieved DD, (equivalent to achieving an AA grade at A Level), which ties with 2020 as the highest number of students achieving a maximum score the School has ever had, with a further 2 students achieving DD.

These are remarkable results given that the School is non-selective. The Sunday Times guide to the very best schools in Britain ranked the School as 9 th in the North West and is the highest placed boarding school on the list. For the country as a whole, out of 2,450 schools, the School is ranked 144 th which is in the top 6 percent.

Co-curricular Activities

The 2020-21 academic year was one affected hugely by the COVID pandemic.

In Sport, inter school fixtures could not take place and even competitions were extremely challenging with the restrictions that were in place for most of the year. The School continued to stretch the students in lesson time and through a significantly altered extra-curricular programme which students attended in their bubbles in order to maintain physical activity and some element of competition, albeit within their own peer group.

In Sailing, many of the usual events could not take place, however despite that, 5 students qualified for the British Youth Sailing Feva North Squad and have attended summer training camps around the North and Midlands, in order to progress their skills with other local sailors. In July 2021, the School’s sailors competed at Bassenthwaite Sailing Club for one of the only events that did go ahead in the RYA North West Regional champs, attended by over 100 sailors from all over the country. The School had 12 sailors competing at the event, taking 1 st and 3 rd podium places for two of our sailing pairs.

The Duke of Edinburgh Award Scheme was able to continue despite restrictions, with pupils allowed by the Scheme to move to higher awards without taking part in an expedition. As soon as expeditions were possible, the School put on a number of catch up expeditions allowing even those that had passed with the certificate of achievement to take part in an expedition with their peers. In total four separate D of E trips went out in 2021.

Although many of the usual outdoor activities could not take place, the School was able to offer voluntary posts through the pandemic, including working in bubbles to improve the grounds at the Hodge Howe Sailing Centre and bike maintenance with the School's fleet of bikes.

The staff and pupils are looking forward to a more normal year in 2022.

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

FUTURE PLANS

The core elements of the Trust’s Development Plan are:

To continue to ensure the campuses offer a safe and attractive environment for pupils, staff and visitors; To provide a happy and secure pastoral environment, suitable for both day and boarding pupils, in which all pupils are offered opportunities for leadership and service to others;

To provide a stimulating learning environment in which pupils can develop their academic potential to the full; To offer all pupils the opportunities of experiencing a broad range of intellectual, cultural, sporting and widercommunity activities;

To increase the capability of the Trust to offer education to children whose parents are unable to afford full fees;

To provide an enjoyable and appropriately challenging environment within which members of staff may develop their careers;

To ensure that the Trust plays a significant part in the life of the local community, sharing facilities and seeking local partnerships wherever possible.

FINANCIAL REVIEW

Results for the year

Net fee income decreased by 8.56% to £5,05 1 k (2020: £5,526k) due to a fall in the number of boarders caused by the pandemic. Total income was roughly comparable to the prior year however at £5,972k (2020: £6,025k) on account of being able to run a Summer School (although not a residential one), some new income generating activities, and continued support from the government’s Coronavirus Job Retention Scheme.

Costs reduced by £181k from the previous year coming in at £6,077k (2020: £6,2 58 k) due to cost saving measures in all areas. Net expenditure was therefore an improvement on the prior year at £106k (2020: £233k). Depreciation costs of £160k (2020: £203k) are included in the cost figures above.

Reserves Policy

The Trust’s free reserves at the year-end amounted to £439k (2020: £548k) representing retained unrestricted income reserves. The Trust has adopted a policy of maintaining free reserves at a level to provide reasonable cover for operating costs with any surplus to be re-invested into improvement of the estates and school facilities.

Fixed Assets

Tangible fixed assets are held by the Trust for use by the School although there are some properties that could be divested should the need arise. Note 1.6 describes the Trust’s accounting policy in relation to fixed assets.

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

The Governors, who served during the year and up to the date of signature of the financial statements were:

A Chamberlain J Dearden C Burrow (Resigned 31 December 2020) S Hamilton (Appointed 7 October 2020 and resigned 4 December 2021) J Harris (Resigned 5 March 2021) A Hodson (Resigned 2 July 2021) C Rickart A Roberts (Appointed 7 October 2020) A Smith (Resigned 10 March 2021) P Hogan (Appointed 4 January 2022) I C Kenny (Appointed 5 May 2021) P Scott (Appointed 5 May 2021) C A Dodwell (Appointed 5 May 2021)

Additionally, P Hogan was appointed on 5 May 2021 and resigned on 6 July 2021.

Auditor

The auditor, Jackson Stephen LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Disclosure of information to auditor

Each of the Governors has confirmed 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 information and to establish that the auditor is aware of such information.

The Governors' r eport was approved by the Board of Governors.

A Chamberlain

Chairman of Governing Body Dated: 21 January 2022

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL STATEMENT OF GOVERNORS' RESPONSIBILITIES

FOR THE YEAR ENDED 31 AUGUST 2021

The Governors, who are also the directors of Windermere Educational Trust Limited for the purpose of company law, are responsible for preparing the Governors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

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

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

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL INDEPENDENT AUDITOR'S REPORT

TO THE GOVERNORS OF WINDERMERE EDUCATIONAL TRUST LIMITED

Opinion

We have audited the financial statements of Windermere Educational Trust Limited (the ‘Trust’) for the year ended 31 August 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE GOVERNORS OF WINDERMERE EDUCATIONAL TRUST LIMITED

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Trust and its environment obtained in the course of the audit, we have not identified material misstatements in the d irectors ' r eport included within the Governors' r eport.

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

Responsibilities of Governors

As explained more fully in the s tatement of Governors' r esponsibilities, the Governors, who are also the directors of the Trust for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Governors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Governors are responsible for assessing the Trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Governors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

Based on our understanding of the charitable company and sector, we identified that the principal risks of noncompliance with laws and regulations related to, but were not limited to, the Companies Act 2006, the Charities Act 2016, employment, pension and health and safety legislation and regulation through the Charity Commission for England and Wales and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities’ Statement of Recommended Practice.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgements.

Our procedures to respond to risks identified included the following:

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE GOVERNORS OF WINDERMERE EDUCATIONAL TRUST LIMITED

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Peter Atkinson F.C.A. (Senior Statutory Auditor) for and on behalf of Jackson Stephen LLP

.........................

Chartered Accountants Statutory Auditor

James House Stonecross Business Park Yew Tree Way Warrington Cheshire WA3 3JD

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2021

Current financial year
Unrestricted Unrestricted
funds
funds
general designated
2021
2021
Notes
£
£
Income from:
Donations and legacies
3
-
-
Charitable activities
4
5,692,372
-
Other trading activities
5
275,311
-
Total income
5,967,683
-
Expenditure on:
Raising funds
6
104,736
-
Charitable activities
7
5,872,592
-
Other
12
99,971
-
Total resources expended
6,077,299
-
Net (expenditure)/income for the year/
Net movement in funds
(109,616)
-
Fund balances at 1 September 2020
548,370 20,047,615
Fund balances at 31 August 2021
438,754 20,047,615		 Restricted
funds
2021
£
4,114
-
-
4,114
-
-
-
-
4,114
2,178
6,292		 Total
2021
£
4,114
5,692,372
275,311
5,971,797
104,736
5,872,592
99,971
6,077,299
(105,502)
20,598,163
20,492,661		 Total
2020
£
28,951
5,964,316
31,653
6,024,920
65,187
6,046,218
146,882
6,258,287
(233,367)
20,831,530
20,598,163

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

Net income /(expenditure) before depreciation for the year totalled £ 54,958 (20 20 : £ (30,845 ) ) .

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2021

Prior financial year

Unrestricted Unrestricted
funds
funds
general designated
2020
2020
Notes
£
£
Income from:
Donations and legacies
3
4,917
-
Charitable activities
4
5,964,316
-
Other trading activities
5
31,653
-
Total income
6,000,886
-
Expenditure on:
Raising funds
6
65,187
-
Charitable activities
7
6,024,362
-
Other
12
146,882
-
Total resources expended
6,236,431
-
Net (expenditure)/income for the year/
Net movement in funds
(235,545)
-
Fund balances at 1 September 2019
783,915 20,047,615
Fund balances at 31 August 2020
548,370 20,047,615		 Restricted
funds
2020
£
24,034
-
-
24,034
-
21,856
-
21,856
2,178
-
2,178		 Total
2020
£
28,951
5,964,316
31,653
6,024,920
65,187
6,046,218
146,882
6,258,287
(233,367)
20,831,530
20,598,163

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL BALANCE SHEET

AS AT 31 AUGUST 2021

Notes
Fixed assets
Tangible assets
13
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
16
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
17
Net assets
Income funds
Restricted funds
19
Designated funds
Unrestricted funds - general		 2021
£
£
25,238,958
5,963
310,078
1,897,550
2,213,591
(3,085,368)
(871,777)
24,367,181
(3,874,520)
20,492,661
6,292
20,047,615
438,754
20,492,661		 2020
£
£
25,381,940
5,153
150,457
378,481
534,091
(2,708,748)
(2,174,657)
23,207,283
(2,609,120)
20,598,163
2,178
20,047,615
548,370
20,598,163

The financial statements were approved by the Governors on 21 January 2022

A Chamberlain Trustee

Company Registration No. 00914963

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2021

Notes
Cash flows from operating activities
Cash generated from operations
25
Investing activities
Purchase of tangible fixed assets
Interest paid
Net cash used in investing activities
Financing activities
Fees in advance scheme
Proceeds of new bank loans
Repayment of bank loans
Net cash generated from/(used in)
financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
£
171,267
(17,478)
(99,971)
(117,449)
(393,792)
2,000,000
(140,957)
1,465,251
1,519,069
378,481
1,897,550		 2020
£
£
45,287
(88,492)
(146,882)
(235,374)
(482,636)
-
(112,354)
(594,990)
(785,077)
1,163,558
378,481

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

Charity information

Windermere Educational Trust Limited is a private company limited by guarantee incorporated in England and Wales and a registered charity in England and Wales. The registered office is Browhead, Windermere, Cumbria, LA23 1NW.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Trust's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The Trust is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the Trust . Monetary a mounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Governors have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the Governors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Governors in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the Governors for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements .

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the Trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying the goods and services in order to raise funds and is recognised when entitlement has occurred.

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

1.5 Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings 2% per annum straight line basis Fixtures, fittings and equipment 10% to 33.3% per annum straight line basis Motor vehicles 25% per annum straight line basis

No provision for depreciation of school buildings is made as the trust considers that the estimated useful life of the buildings is so long and the residual value so high that any depreciation charged is not material, either each year or cumulatively over the useful economic life of the asset.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Impairment of fixed assets

At each reporting end date, the Trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.8 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell .

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

1.10 Financial instruments

The Trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Trust 's balance sheet when the Trust becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Trust transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Trust ’s contractual obligations expire or are discharged or cancelled.

1.11 Taxation

The charitable company is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

1.13 Pension benefits

Retirement benefits to employees of the charitable company are provided by the Teachers’ Pension Scheme (‘TPS’) and The Pension Trust Growth Plan. These are defined benefit schemes and the assets are held separately from those of the charitable company.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the charitable company in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a prospective unit method. The TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions are recognised in the period to which they relate.

For The Pension Trust Growth Plan, the contributions are determined by a qualified actuary on the basis of financial valuations using a projected unit method. The Pension Trust Growth Plan is a multi-employer scheme and there is sufficient information available to unlock detailed benefit accounts. The plan is therefore treated as a defined contribution scheme for accounting purposes and contributions are recognised in the period to which they relate.

1.14 Government grants

Government grants received in respect of the Coronavirus Job Retention Scheme are included in other income within charitable activities and are accounted for on an accruals basis.

2 Critical accounting estimates and judgements

In the application of the Trust’s accounting policies, the Governors 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 estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The trustees have considered the residual value and remaining useful economic life of the land and buildings and consider that the assumptions in arriving at these values are reasonable.

Depreciation policies have also been considered again this year and are deemed reasonable.

The assumptions regarding the treatment of the Trust's pension schemes within the financial statements have also been considered again this year, with no adjustment to their treatment considered necessary.

3 Donations and legacies

Restricted Unrestricted Restricted Total
funds funds funds
general
2021 2020 2020 2020
£ £ £ £
Donations and gifts 4,114 4,917 24,034 28,951

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

4 Charitable activities

4 Charitable activities
Unrestricted Unrestricted
funds
funds
2021
2020
£
£
Net fees 5,051,039
5,526,195
Other income 641,333
438,121
5,692,372
5,964,316
5 Other trading activities
Unrestricted Unrestricted
funds funds
general general
2021 2020
£ £
Summer school 189,486 -
Rental income 66,123 1,825
Catering income 19,702 29,828
Other trading activities 275,311 31,653
6 Raising funds
Unrestricted Unrestricted
funds funds
general general
2021 2020
£ £
Associated summer school costs 89,768 47,765
Associated catering costs 14,968 17,422
104,736 65,187

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

7 Charitable activities

Depreciation and impairment
Academic costs
Welfare costs
Property costs
Management and administration costs
Other expenses
Marketing costs
Governance costs
Analysis by fund
Unrestricted funds - general
Restricted funds
8
Net movement in funds
Net movement in funds is stated after charging/(crediting)
Depreciation of owned tangible fixed assets
9
Auditor's remuneration
The analysis of auditor's remuneration is as follows:
Audit of the annual accounts
10
Governors		 2021
£
160,460
3,100,491
906,705
720,072
709,436
85,050
178,466
11,912
5,872,592
5,872,592
-
5,872,592
2021
£
160,460
2021
£
8,700		 2020
£
202,522
3,332,494
801,866
715,559
679,036
104,937
196,245
13,559
6,046,218
6,024,362
21,856
6,046,218
2020
£
202,522
2020
£
8,530

None of the Governors (or any persons connected with them) received any remuneration or benefits from the Trust during the year.

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

11 Employees

Number of employees

The average monthly number of employees during the year was:

Number of employees
The average monthly number of employees during the year was:
2021 2020
Number Number
Teaching staff 64 72
Welfare staff 29 28
Maintenance and gardens 8 9
Administrative staff 18 18
119 127
Wages and salaries 3,392,007 3,464,010
Social security costs 319,653 322,335
Other pension costs 528,133 548,687
4,239,793 4,335,032
The number of employees whose annual remuneration was £60,000 or
more were:
2021 2020
Number Number
£60,001 - £70,000 1 -
£100,001 - £110,000 - 1
£110,001 - £120,000 1 -
12 Other
Unrestricted Unrestricted
funds funds
general general
2021 2020
£ £
Loan interest 32,458 40,224
Discounts on the fees in advance scheme 67,513 106,658
99,971 146,882

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

13 Tangible fixed assets

Cost or valuation
At 1 September 2020
Additions
Disposals
At 31 August 2021
Depreciation and impairment
At 1 September 2020
Depreciation charged in the year
Eliminated in respect of disposals
At 31 August 2021
Carrying amount
At 31 August 2021
At 31 August 2020		 Freehold
buildings
£
24,825,920
-
-
24,825,920
-
-
-
-
24,825,920
24,825,920		 Fixtures,
fittings and
equipment
Motor vehicles
£
£
1,664,152
35,088
9,204
8,274
(6,301)
(10,000)
1,667,055
33,362
1,121,613
21,607
155,078
5,382
(6,301)
(10,000)
1,270,390
16,989
396,665
16,373
542,539
13,481		 Total
£
26,525,160
17,478
(16,301)
26,526,337
1,143,220
160,460
(16,301)
1,287,379
25,238,958
25,381,940

The freehold land and buildings have been valued by the Trust on a depreciated replacement cost basis on 31 August 202 1 .

At 31 August 2021, had the revalued assets been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying amount would have been approximately £4,778,305 (2020 - £4,778,305).

Included within freehold land and buildings is an amount of £1,755,500 (20 20 : £1,755,500) attributable to land, which is not depreciated.

14 Stocks

Stocks
2021 2020
£ £
Food stock 5,963 5,153

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

15
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
16
Creditors: amounts falling due within one year
Notes
Bank loans
18
Other taxation and social security
Deferred income
Trade creditors
Other creditors
Accruals
17
Creditors: amounts falling due after more than one year
Notes
Bank loans
18
Other taxation and social security
Other creditors
18
Loans and overdrafts
Bank loans
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments		 2021
£
109,988
9,061
191,029
310,078
2021
£
204,456
285,811
818,306
164,372
1,540,677
71,746
3,085,368
2021
£
3,313,954
-
560,566
3,874,520
2021
£
3,518,410
204,456
3,313,954
496,130		 2020
£
71,469
7,152
71,836
150,457
2020
£
112,647
229,317
644,197
33,804
1,619,174
69,609
2,708,748
2020
£
1,546,720
203,569
858,831
2,609,120
2020
£
1,659,367
112,647
1,546,720
1,096,131

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

18 Loans and overdrafts

(Continued)

Three bank loans are repayable over ten and fifteen years. The loans are subject to an interest rate that is equal to the Bank of England base rate +2%. They are secured upon certain freehold land and buildings held by the School and a fixed and floating charge over other assets.

A Coronavirus Business Interruption Loan was received in the year, repayable in 3 years. This loan is subject to no interest in year 1, 8.3% in year 2, and 8% in year 3. The loan is secured upon certain freehold land and buildings held by the School.

19 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement Movement Movement
Balance at Income Expenditure Balance at Income Balance at
1 September 1 September 31 August
2019 2020 2021
£ £ £ £ £ £
Hardship Fund - 24,034 (21,856) 2,178 4,114 6,292

The Hardship Fund was set up to help parents affected due to Covid-19.

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

20
Analysis of net assets between funds
Unrestricted
fund
Designated
fund
2021
2021
£
£
Fund balances at 31 August 2021 are represented
by:
Tangible assets
5,191,343 20,047,615
Current assets/(liabilities)
(878,069)
-
Long term liabilities
(3,874,520)
-
438,754 20,047,615		 Restricted
funds
2021
£
-
6,292
-
6,292		 TotalUnrestricted
fund
2021
2020
£
£
25,238,958
5,332,147
(871,777) (2,174,657)
(3,874,520) (2,609,120)
20,492,661
548,370		 Designated
fund
2020
£
20,047,615
-
-
20,047,615		 Restricted
funds
2020
£
2,178
-
-
2,178		 Total
2020
£
25,381,940
(2,174,657)
(2,609,120)
20,598,163

Designated funds relate to the revaluation of fixed assets.

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

21 Operating lease commitments

At the reporting end date the Trust had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2021
£
59,617
77,739
137,356		 2020
£
31,202
17,146
48,348

22 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2021 2020
£ £
Aggregate compensation 612,657 584,551

A number of Governors have children who attend the school. The fees paid by those Governors are on the same terms and conditions as are charged to any other parent who does not work at the school.

During the period to 5 March 2021 the school incurred costs from Windermere Wine Stores Limited totalling £ 12 (20 20 : £ 769 ). J Harris was a Governor of the school until 5 March 2021 .

As at 31 August 202 1 , J Dearden, a Governor of the school, had a balance with the school under the fees in advance scheme amounting to £ 1,990 (20 20 : £ 48,749 ). Discounts have been given from this scheme in the year totalling £ 1,637 (20 20 : £ 3,735 ).

A Hodson, a Governor of the school until 2 July 2021 , had a balance with the school under the fees in advance scheme amounting to £nil (20 20 : £ nil ). Discounts have been given from this scheme to the period ending 2 July 2021 totalling £ nil (20 20 : £ 552 ).

I C Kenny, a Governor of the school appointed on 5 May 2021, had a balance with the school under the fees in advance scheme as at 31 August 2021 amounting to £25,768. Discounts have been given from this scheme for the period between appointment and year end of £116.

23 Members liability

The charity has no share capital being a company limited by guarantee. Each member is required to contribute an amount not exceeding £1 per member in the event of a winding up situation.

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

24 Pension costs

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff and The Pensions Trust's Growth Plan for non teaching staff. The total pension charge for the year was £ 528,133 (20 20 : £ 548,687 ) and at the year-end £ 65,970 (20 20 - £ 15,182 ) was accrued in respect of contributions to this scheme.

Introduction

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for full-time teachers and, from 1 January 2007, automatic for teachers in part-time employment following appointment or a change of contract, although they are able to opt out.

The TPS is an unfunded scheme and members contribute on a 'pay as you go' basis - these contributions along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Valuation of the Teachers' Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016 and in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014. The valuation report was published by the Department for Education on 5 March 2019

The key elements of the valuation and subsequent consultation are:

The TPS valuation for 2016 determined an employer rate of 23.68%, which was payable from September 2019. The next valuation of the TPS will be based on the March 2020 data, whereupon the employer contribution rate is expected to be reassessed and will be payable from 1 September 2023.

A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website.

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The trust has accounted for its contributions to the scheme as if it were a defined contribution scheme. The trust has set out above the information available on the scheme.

WINDERMERE EDUCATIONAL TRUST LIMITED T/A WINDERMERE SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

25
Cash generated from operations
Deficit for the year
Adjustments for:
Interest paid
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in stocks
(Increase) in debtors
Increase in creditors
Increase/(decrease) in deferred income
Cash generated from operations
26
Analysis of changes in net (debt)/funds
At 1 September
2020
£
Cash at bank and in hand
378,481
Loans falling due within one year
(112,647)
Loans falling due after more than one year
(1,546,720)
(1,280,886)		 2021
2020
£
£
(105,502)
(233,367)
99,971
146,882
160,460
202,522
(810)
1,082
(159,621)
(16,884)
2,660
463,973
174,109
(518,921)
171,267
45,287
Cash flows
At 31 August
2021
£
£
1,519,069
1,897,550
(91,809)
(204,456)
(1,767,234)
(3,313,954)
(339,974)
(1,620,860)