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2020-08-31-accounts

Charity number: 527552 Company Number: 00413810

Sunfield Children’s Home Limited (Private Limited Company)

Trustees’ report and financial statements for the year ended 31 August 2020

SUNFIELD CHILDREN’S HOME LIMITED

CONTENTS

Page
Legal and administrative information 1
Report of the Trustees 2
Statement of Trustees’ Responsibilities
9
Independent Auditor’s report to the Trustees 11
Statement of Financial Activities 14
Balance Sheet 15
Cash Flow Statement 16
Notes to the Financial Statements 17

SUNFIELD CHILDREN’S HOME LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Registered office Ruskin Mill Millbottom Nailsworth Stroud Gloucestershire GL6 0LA Principal office Clent Grove, Clent, Stourbridge West Midlands DY9 9PB

Trustees

H M Kippax A C H Gordon Dr T Zundel V F B Griffiths T A Gratton C Court Company secretary E Johnson Key management personnel Aonghus Gordon – Founder & Executive Chair Tara Gratton – Director of Schools and Rise Chris Lore – Interim Head of School Shazuli Iqbal – Chief Financial Officer Lindsay Wilkinson – Trust Head of Human Resources

Auditors

Grant Thornton UK LLP The Colmore Building 20 Colmore Circus Birmingham B4 6AT

Bankers

Lloyds Bank Plc Barclays Bank PLC 12 Rowcroft 15 Colemore Row Stroud Birmingham Gloucestershire B3 2EP GL5 3BD

Solicitors

Royds Withy King LLP 69 Carter Lane London EC4V 5EQ

1

SUNFIELD CHILDREN’S HOME LIMITED

REPORT OF THE TRUSTEES

The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year to 31 August 2020.

• Governing document

Sunfield Children's Homes Limited, also known as ‘Sunfield’, is registered with the Department for Education under sections 347(l) and (3) of the 1996 Education Act as an independent residential school suitable for pupils with severe learning difficulties. It is registered as a Children's Home under the Care Standards Act 2000, and is governed by the regulations of this Act.

It is a registered charity in England and Wales (registered number: 527552) and is constituted as a company in England and Wales (registered number: 00413810), limited by shares. Its objects, powers and other constitutional matters are set out in its Memorandum and Articles of Association.

STRUCTURE, GOVERNANCE AND MANAGEMENT

• Group Structure

Sunfield Children’s Homes Limited is part of the Ruskin Mill Trust Group.

The whole of the issued share capital of 100 £1 ordinary shares is owned by Ruskin Mill Trust Limited. As Trustees of the Charity and Directors of the Company, members of the Governing Body are legally responsible for the overall management and control of the charity. The main Trustee body meets at least four time a year.

• Recruitment and appointment of new Trustees

Trustees are appointed in accordance with the Memorandum and Articles of Association. The charity’s practice regarding recruitment has been for members of the Board to make recommendations for suitably skilled and experienced people who are then appraised by Ruskin Mill Trust’s Board of Trustees.

Induction and training are carried out during the meeting cycle, and members are also invited to training at Ruskin Mill Trust’s other provisions. During the year, individual Trustees undertook a range of appropriate training.

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SUNFIELD CHILDREN’S HOME LIMITED

REPORT OF THE TRUSTEES

• Organisational Management

The Trustees delegate the day-to-day running to a Senior Leadership Team who oversee operations. The key management personnel are listed on page 1. The Trustees did not receive any remuneration in the current or previous period.

• Directors and Trustees

The Trustees during the period are listed on page 1.

• Risk Management

A description of the principal risks and uncertainties facing Sunfield, as identified by Trustees, together with a summary of the plans and strategies for mitigating those risks, are reviewed regularly by the Trustee body, and plans are put in place to mitigate these risks. The risks and uncertainties facing Sunfield are set out in the Strategic Report on page 5.

• Employment Policy

Sunfield is an equal opportunities organisation and is fully committed to its Equal Opportunities Policy. It aims to ensure there is no discrimination on the grounds of disability and that access to work and promotion is based on ability, qualification and suitability for the work. Sunfield is committed to creating a working environment that is free from any form of discrimination.

Sunfield employs salaried staff with the appropriate qualifications to provide education and care for pupils and does not rely on volunteers.

The remuneration of the key management personnel, deemed to be the Senior Leadership Team listed on page 1, is reviewed annually by Trustees based on national criteria and affordability.

• Trustees' Indemnity Insurance

Trustee indemnity insurance is paid for under the Ruskin Mill Trust Group policy.

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SUNFIELD CHILDREN’S HOME LIMITED

REPORT OF THE TRUSTEES

OBJECTS AND AIMS

• Charitable Objects

Sunfield's objects, as set out in the Memorandum of Association, are:

• Background and Aims

Sunfield has over 80 years of experience in supporting individuals, aged 6-19, with complex learning needs, including autistic spectrum conditions; it caters for day and residential placements of up to 52 weeks, as well as respite. Set in 58 acres of idyllic parkland, Sunfield nestles on the slopes of the Clent Hills overlooking beautiful Worcestershire countryside. The grounds include a farm and walled garden with nature trails for exploration and adventure, as well as play areas and sensory areas with calm outdoor spaces, all designed to enable Sunfield’s young people to learn, exercise, enjoy and engage with their surroundings practically and safely.

As the first residential special school based on principles Rudolf Steiner established in the UK in the 1930s, Sunfield has a long history of being a therapeutic centre and international beacon of education. Its highly skilled teaching and residential staff team work alongside an integrated therapy team with particular skills in sensory education. Therapies available include speech and language, music, movement, drama and colour.

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SUNFIELD CHILDREN’S HOME LIMITED

REPORT OF THE TRUSTEES

• Public Benefit

The Trustees have given due consideration to the published Charity Commission guidance on the operation of the public benefit requirement of the Charities Act 2006. As places at Sunfield are assessed on the needs of the pupils and the fees are largely paid by local authorities, the Trustees consider that the public benefit test has been met. Where possible, Sunfield also makes its facilities available for community use. For example, Sunfield’s main hall is a popular venue for local drama and performance groups, and the school now operates a farm shop for the local community.

STRATEGIC REPORT

• Achievements and Performance

There has been a strong focus on the development of the Sunfield School site and this has enabled the children to have greater access to an emerging outdoor curriculum.

There is a development plan for the land and farm to create accessible and diverse spaces for the children, enabling them to engage in the outdoors at a level suitable to them. Paths have been created guiding the children around the site and kitchen and craft gardens developed in addition to the walled garden.

Children at Sunfield are spending more time outside, working with the new land tutors, engaging with the animals and gardens. This has been especially important during the pandemic where outdoor learning has enabled children to continue in their education and care with reduced risk of transmission.

Work has also been completed on the children’s homes, following feedback from Ofsted Social Care. There has been a significant amount of staff training in Holistic Care and Support and the homes feel more aligned with the Ruskin Mill Trust Group ethos and educational approach. Staff have provided positive feedback about changes in behaviour of the children. The homes have been fitted with new kitchens and furniture. The intention is to start on the upgrade of the bathrooms next.

The progress and tracking systems have been implemented and are working well across the site. Teachers, teaching assistants and tutors are working closely together to deliver a rich and varied curriculum of craft and land work with embedded functional skills and elements of the national curriculum. The changes to the curriculum and increase in outdoor learning have led to a decrease in incidents.

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SUNFIELD CHILDREN’S HOME LIMITED

REPORT OF THE TRUSTEES

• Financial Review

Investment

Sunfield's investment objective is to seek to maximise total return within its chosen investment criteria by a combination of income and capital growth and with an acceptable level of risk. Trustees use the discretionary managed service of Brewin Dolphin Limited whose delegated manager makes the day-to-day decisions regarding investments in the portfolio. Trustees set the structure and parameters of the portfolio as set out in the Investment Policy and the Board of Trustees reviews the policy annually and monitors the investment performance termly.

Reserves

The Trustees review the charity’s financial plans and results regularly throughout the year. This is done through monitoring income and expenditure against budget forecasts and monitoring cash flow forecasts. The Trustees follow the Ruskin Mill Trust Reserves Policy and, therefore, feel it prudent to build the level of reserves on an annual basis with the purpose of ensuring that the charity has sufficient reserves to act as a buffer against unexpected drops in income or increases in expenditure. The reserves held at year-end were £2,409,990 unrestricted (2019: £2,323,326) and - £459,260 restricted (2019: -£1,086,279). The negative restricted reserve is due to Grant Commitment made to Ruskin Mill Land Trust.

The Covid-19 pandemic has had little impact on Sunfield Children’s Home. We have been able to continue operating during this time and have received assurances from some local authorities that payment for this period will be received.

Fundraising

Fundraising at Sunfield is overseen by Ruskin Mill Trust’s Director of Fundraising. No use is made of any external, professional fundraiser nor any commercial participator, so no fundraising activities were carried out on its behalf during the year nor were any approaches made to vulnerable individuals in pursuit of the raising of funds for the charity.

Sunfield has signed up to the Fundraising Regulator’s Code of Fundraising Practice. During the year there was no failure to comply with a scheme or standard cited nor were any complaints received about the fundraising activities conducted by the Trust.

Money raised through fundraising activities are used by Sunfield as agreed with the donor and comply with any conditions attached by the donor.

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SUNFIELD CHILDREN’S HOME LIMITED

REPORT OF THE TRUSTEES

• Risks and Uncertainties

The Trustees review the risks to which the charity is exposed such as the health and safety of children, visitors, volunteers and staff on an on-going basis, and are satisfied that systems are in place to manage exposure to the major risks. They maintain appropriate levels of insurance cover for all foreseeable risks.

Specific areas of risk and uncertainty are:

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SUNFIELD CHILDREN’S HOME LIMITED

REPORT OF THE TRUSTEES

• Future Plans

The five-year development of Sunfield is ongoing; the team has been working with an architect to plan the new site and structures, including the development of new residential homes and the school. The development work will be implemented in phases.

8

SUNFIELD CHILDREN’S HOME LIMITED

REPORT OF THE TRUSTEES

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also directors of Sunfield Children’s Home Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

• Provision of information to Auditor

Each of the persons who are Trustees at the time when this Report of the Trustees is approved has confirmed that:

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SUNFIELD CHILDREN’S HOME LIMITED

REPORT OF THE TRUSTEES

company’s auditor in connection with preparing its report and to establish that the charitable company’s auditor is aware of that information.

• Qualifying third party indemnity provisions

Directors’ indemnity insurance, indemnifying each director against liability to third parties, has been in place throughout the year ended 31 August 2020 and up to the date of approval of this report.

• Auditor

The auditor, Grant Thornton UK LLP, will be proposed for reappointment at the Annual General Meeting.

In preparing this report, the Trustees have taken advantage of the small companies’ exemptions provided by Section 415A of the Companies Act 2006.

Approved by the Trustees on 15/02/2021 and signed on their behalf by:

………………………………………

Aonghus Gordon Trustee

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SUNFIELD CHILDREN’S HOME LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SUNFIELD CHILDREN’S HOME LIMITED

Opinion

We have audited the financial statements of Sunfield Children’s Home Limited (the ‘charitable company’) for the year ended 31 August 2020, which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards 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 have been appointed as auditor under the Companies Act 2006 and report in accordance with regulations made under that Act. 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

The impact of macro-economic uncertainties on our audit

Our audit of the financial statements requires us to obtain an understanding of all relevant uncertainties, including those arising as a consequence of the effects of macro-economic uncertainties such as Covid-19. All audits assess and challenge the reasonableness of estimates made by the trustees and the related disclosures and the appropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessments of the future economic environment and the charitable company’s future prospects and performance.

Covid-19 is amongst the most significant economic events currently faced by the UK, and at the date of this report its effects are subject to unprecedented levels of uncertainty, with the full range of possible outcomes and their impacts unknown. We applied a standardised firm-wide approach in response to these uncertainties when assessing the charitable company’s future prospects and performance. However, no audit should be expected to predict the unknowable factors or all possible future implications for a charitable company associated with these particular events.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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SUNFIELD CHILDREN’S HOME LIMITED

In our evaluation of the trustees' conclusions, we considered the risks associated with the charitable company's business, including effects arising from macro-economic uncertainties such as Covid-19, and analysed how those risks might affect the charitable company's financial resources or ability to continue operations over the period of at least twelve months from the date when the financial statements are authorised for issue. In accordance with the above, we have nothing to report in these respects. However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditor's report is not a guarantee that the charitable company will continue in operation.

Other information

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

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matter on which we are required to report under the Companies Act 2006

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors’ Report included in the Report of the Trustees.

Matters on which we are required to report by exception

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 trustees for the financial statements

As explained more fully in the Statement of Trustees' Responsibilities set out on page 9, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the

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SUNFIELD CHILDREN’S HOME LIMITED

preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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.

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

William Devitt Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Birmingham

Date: 31 March 2021

Grant Thornton UK LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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SUNFIELD CHILDREN’S HOME LIMITED

STATEMENT OF FINANCIAL ACTIVITIES

(Incorporating an Income & Expenditure Account) for the year ended 31 August 2020

Notes
INCOME FROM:
Donations and legacies
Charitable activities
Other trading activities
Investments
Other
TOTAL INCOME
3
EXPENDITURE ON:
Charitable activities
Grant Commitment
TOTAL EXPENDITURE
5
NET INCOME/(EXPENDITURE) FOR
THE YEAR BEFORE GAIN
ON INVESTMENTS
Gain / (Loss) on investments
8
NET INCOME/(EXPENDITURE)
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
11
Total funds carried forward
11		 Unrestricted
Funds
£
19,589
7,108,124
15,731
10,852
-
7,154,296
7,060,151
-
7,060,151
94,146
(7,482)
86,664
86,664
2,323,326
2,409,991		 Restricted
Funds
£
1,000
-
-
-
-
1,000
-
(626,019)
(626,019)
627,019

-
627,019
627,019
(1,086,278)
(459,259)		 Total
Funds
Year to
31.8.20
£
20,589
7,108,124
15,731
10,852
-
7,155,296
7,060,151
(626,019)
6,434,132
721,165
(7,482)
713,683
713,683
1,237,047
1,950,731		 Total
Funds
Year to
31.8.19
£
216,174
6,646,655
15,000
13,250
70,714
6,961,793
6,404,382
-
6,404,382
557,411

11,525
568,936
568,936
668,111
1,237,047

The notes on pages 17 to 34 form part of these financial statements.

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SUNFIELD CHILDREN’S HOME LIMITED

(Company registration no. 0413810)

BALANCE SHEET

As at 31 August 2020

Notes
FIXED ASSETS:
Tangible assets
7
Investments
8
CURRENT ASSETS:
Debtors
9
Cash at bank and in hand
LIABILITIES:
Creditors falling due within one year
10
NET CURRENT (LIABILITIES)
NET ASSETS
FUNDS
Unrestricted funds
Restricted funds
11		 31 August
2020
£
2,558,362
442,539
3,000,901
1,825,656
165,520
1,991,176
(3,041,345)
(1,050,169)
1,950,732
2,409,991
(459,259)
1,950,732		 31 August
2019
£
2,782,915
459,266
3,242,181
73,451
1,406,779
1,480,230
(3,485,364)
(1,992,417)
1,237,047
2,323,326
(1,086,279)
1,237,047

Approved and authorised for issue by the Trustees on 15/02/2021 and signed on their behalf by:

Aonghus Gordon Trustee

The notes on pages 17 to 34 form part of these financial statements.

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SUNFIELD CHILDREN’S HOME LIMITED

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 AUGUST 2020

Notes
Cash flows from operating activities:
Net cash provided by (used in) operating
activities
21
Cash flow from investing activities
Interest received
Payments to acquire tangible fixed assets
Payments to acquire FA
Receipt from Sales of Investment
Reclassification of cash held by
investment manager
Net cash provided by (used in) investing
activities
Cash flow from financing activities
Repayment of borrowing
Cash acquired from Sunfield
Net cash provided by (used in) financing
activities
Change in cash and cash equivalents in
reporting period
Cash and cash equivalents at beginning of
the reporting period
Cash and cash equivalents at the end of
the reporting period		 2020
(1,157,841)
10,852
(103,816)
(87,797)
84,626
12,717
(83,418)
0
0
(1,241,259)
1,406,779
165,520		 2019
298,883
13,250
(94,859)
(60,981)
57,128
0
(85,462)
0
0
213,421
1,193,358
1,406,779

The notes on pages 17 to 34 form part of these financial statements.

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SUNFIELD CHILDREN’S HOME LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the period ended 31 August 2020

1 ACCOUNTING POLICIES

Legal status of the charity

Sunfield Children’s Homes Limited (Sunfield) was incorporated in England and Wales as a company limited by shares (registered no. 00413810).

Sunfield is also registered with the Charity Commission in England and Wales (registered no. 527552).

The registered and principal office of Sunfield is Clent Grove, Clent, Stourbridge, West Midlands DY9 9PB.

Basis of accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Sunfield meets the definition of a public benefit entity under FRS 102.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

The financial statements are presented in sterling (£) which is the functional currency of the charity.

Going concern

For the foreseeable future the Trustees consider Sunfield a going concern based on recurring funding receivable from the local authorities to enable us to provide a level of care for our students and cover overheads. The Trustees also believe that reserves are maintained at an appropriate level to provide the sufficient level of cover necessary should it be required.

During the Covid-19 pandemic Sunfield has continued to support its pupils, either through home learning or on-site, this has resulted in there being a very limited impact during this period. During this time, cash flow has been regularly monitored to make sure Sunfield was able to meet all its commitments. Under the guidance of Ruskin Mill Trust Limited robust budgets are set, and the actual spend against these budgets are analysed on a monthly basis by both the Executive Team and the Board of Trustees’ Finance Sub-Committee. The full Board also receives these monthly management accounts and reviews them on a two-monthly cycle.

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SUNFIELD CHILDREN’S HOME LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

for the period ended 31 August

The group, headed by Ruskin Mill Trust Limited, has substantial net assets. Furthermore, Ruskin Mill Trust Limited has provided assurances that group financial support will be provided to Sunfield as required. There are therefore no material uncertainties surrounding the going concern status of Sunfield

Income

Income derived from fees is accounted for on an accruals basis.

Donations and legacies are credited to revenue when the charitable company has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from dividends is recognised when receivable.

All income is attributable to the one principal activity of the company which arose wholly within the United Kingdom.

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SUNFIELD CHILDREN’S HOME LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) for the period ended 31 August 2020

1 ACCOUNTING POLICIES (CONTINUED)

Expenditure

Resources are included in the Statement of Financial Activities on an accruals basis. Overheads are allocated over the charitable and fundraising activities in proportion to the direct costs by those activities. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Included in Governance costs are the annual audit fee, professional fees related to maintain the constitutional framework and Trustee expenses.

Termination payments are accounted for as soon as the charitable company is aware of the obligation to make the payment.

Investments

Investments are stated at market value at the balance sheet date. The SOFA included the net gains and losses arising on revaluation and disposal throughout the year.

Fixed assets

Items of a capital nature, capable of lasting more than one year and costing more that £5,000 are normally capitalised.

Depreciation

Depreciation is calculated so as to write off the cost of an asset, over the useful economic life of that asset as follows:

Freehold buildings 1% - 10% pa - straight line
Plant & machinery 10% - 20% pa - straight line
Motor vehicles 25% pa - straight line
Fittings & equipment 10% - 25% pa - straight line
Tractor and farm implements 10% - 25% pa - straight line

A full year’s depreciation is charged in the year of acquisition and no depreciation is charged in the year of disposal.

Operating lease agreements

Rentals paid under operating leases are charged to income on a straight-line bases over the period of the lease.

Consumables

It is not the company’s policy to include consumables as a current asset in these financial statements. The consumables store area maintains medical and domestic supplies for daily use, not thought to be worth in excess of £15,000 at any one time.

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SUNFIELD CHILDREN’S HOME LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) for the period ended 31 August 2020

Pension costs

Teachers are eligible for membership of the Teachers’ Pension Scheme, which is a defined benefit scheme. It is a multi-employer scheme and the charity’s share of any deficit cannot be identified. Therefore, it is accounted for as a defined contribution scheme in accordance with the provisions of FRS 102.

All other staff are eligible to join our stakeholder scheme with an employer’s contribution of varying rates. Contributions payable are charged to the SOFA in the year in which they are due. All pension costs are allocated to unrestricted funds.

Fund accounting

Unrestricted funds are available for use at the discretion of the Trustees to fulfil the charity’s general charitable objectives.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor and/or through the terms of an appeal. Further explanation of the nature and purpose of each fund is included in note 11.

Debtors

Short-term debtors are initially measured at transaction price, less any impairment. Prepayments are measured at the amount prepaid.

Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount after allowing for any trade discounts due.

Cash and cash equivalents

Cash and cash equivalents include cash in hand and held with banks and other short-term deposits.

Financial instruments

Sunfield only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value, or market value in the case of investments.

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SUNFIELD CHILDREN’S HOME LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

for the period ended 31 August 2020

Taxation

The company is a registered charity and as such is entitled to tax exemption on all its income and g gains, properly applied for its charitable purposes.

Significant estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The items in the financial statements where these estimates and judgements have been made include the following:

Grant commitment

A grant commitment of £3,184,850 was recognised in the prior period and £2,558,831 remains outstanding at 31 August 2020 after £626,019 was released in the period. A commitment has been recognised as a result of the deed of covenant signed by Sunfield and its parent, Ruskin Mill Trust Limited, on 31 August 2017 which commits Sunfield to the transfer of all freehold land and buildings to Ruskin Mill Land Trust (RMLT). The gross commitment of £3,184,850 was valued based on the net book value of the freehold land and buildings held by Sunfield as at 31 August 2017. The commitment has subsequently reduced, in line with a reduction in the net book value of the freehold land and buildings to be transferred due to the depreciation. The liability is shown as due within one year as the transfer could take place at any point on or before 31 August 2021.

Useful economic lives of tangible assets

The annual depreciation charges for the tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on economic utilisation and the physical condition of the assets.

Bad debt provision

A bad debt provision of £38,131 has been made against an outstanding sum that has been judged to have a reasonable expectation of becoming uncollectable. This provision has been made so future periods’ results will not be adversely affected.

21

SUNFIELD CHILDREN’S HOME LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) for the period ended 31 August 2020

2 STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD 31.8.18 TO 31.8.19

Notes
INCOME FROM:
Donations and legacies
Charitable activities
Other trading activities
Investments
Other
TOTAL INCOME
3
EXPENDITURE ON:
Charitable activities
TOTAL EXPENDITURE
5
NET EXPENDITURE FOR
THE YEAR BEFORE GAIN
ON INVESTMENTS
Gain on investments
8
NET INCOME / (EXPENDITURE)
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
11
Total funds carried forward
11		 Unrestricted
Funds
£
12,341
6,646,655
15,000
13,250
70,714
6,767,959
6,404,382
6,404,382
353,577
11,525
365,102
365,102
1,958,223

2,323,325		 Restricted
Funds
£
203,833
-
-
-
-
203,883
-
-
203,833
-
203,833
203,833
(1,290,112)
(1,086,279)		 Total
Funds
Year to
31.8.19
£
216,174
6,646,655
15,000
13,250
70,714
6,961,793
6,404,382
6,404,382
557,411
11,525
568,936
568,936
668,111
1,237,047

22

SUNFIELD CHILDREN’S HOME LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

for the period ended 31 August 2020

3 INCOME

Donations and legacies
Charitable activities
Care and education of children
Training and research
Other trading activities
Sale of goods
Rent
Investments
Listed investments
Other
TOTAL INCOME
4
NET INCOME
Net income is stated after charging:
Auditor's remuneration - audit
Auditor's remuneration - other services
Trustee indemnity insurance
Operating lease payments in year
Depreciation - owned assets		 Year to 31
August
2020
£
20,589
7,108,124
- 0
7,108,124
731
15,000
15,731
10,852
10,852
-
7,155,296
Year to 31
August
2020
£
9,600
680
-
2,170
328,369		 Year to 31
August
2019
£
216,174
6,646,655
-
6,646,655
-
15,000
15,000
13,250
13,250
70,714
6,961,793
Year to 31
August
2019
£
7,000
-
-
3,997
312,703

23

SUNFIELD CHILDREN’S HOME LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) for the period ended 31 August 2020

5 ANALYSIS OF EXPENDITURE

Grant Commitment
Charitable activities
Care of children
Education of children
Therapies and healthcare for children
Training, research and awareness
Governance
Total		 Staff costs
(see note 6)
£
-
3,271,744
1,557,973
103,865
25,966
-
4,959,548
4,959,548		 Depreciation
(see note 7)
£
-
215,545
102,641
6,843
1,711

-
326,739
326,739		 Insurance
£
-
-
-
-
-

-
-
-		 Repairs &
Renewals
£
-
116,369
55,414
-
-

-
-
171,783		 Grant
£
(626,019)
-
-
-
-
-
-
(626,019)		 Support
£
-
869,426
732,655
-
-

-
-
1,602,080		 Year to
31 August
2020
£
(626,019)
4,473,084
2,448,683
110,708
27,677

-
7,060,151
6,434,132		 Year to 31
August
2019
£
-
4,188,434
2,093,273
112,703
2,742
7,230
6,404,382
6,404,382

A grant commitment of £3,184,850 has been recognised in the prior period in respect of a deed of covenant which was entered into by the charitable company and its parent, Ruskin Mill Trust Limited, on 31 August 2017. A release of £626,019 was released into the accounts for the year ended 31 August 2020, the remaining balance of £2,558,831 remais outstanding. The deed of covenant commits Sunfield to transfer all title, right and interest of its freehold land and buildings to Ruskin Mill Land Trust on 31 August 2020 (or such earlier date as the parties may agree in writing).

24

SUNFIELD CHILDREN’S HOME LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

for the period ended 31 August 2020

6 STAFF COSTS

Wages and salaries
Social Security Costs
Other pension costs		 Year to 31
August 2020
£
4,575,989
289,677
93,882
4,959,548		 Year to 31
August 2019
£
4,267,427
277,437
87,724
4,632,589

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

Headcount
Psychology and therapies
Support services
Education
Care		 Year to 31
August 2020
Year to 31
August 2019
No.
No.
4
6
23
29
50
42

114

90
191
167

No employees received in excess of £60,000 for the year (prior year Nil)

No trustee expenses were reimbursed during the financial year ( period ended 31 August 201 9 : £ Nil was reimbursed during the financial year).

No Trustees were remunerated in the current period (period ended 31 August 2019 : £ Nil was paid) .

During the year there were termination payments made which amounted to £9,510 (2019: £nil). As at 31 August 2020 there was £nil outstanding (2019: £nil).

25

SUNFIELD CHILDREN’S HOME LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

for the period ended 31 August 2020

7 TANGIBLE FIXED ASSETS

Cost
At 31 August 2019
Additions
Disposals
At 31 August 2020
Depreciation
At 31 August 2019
Charge for the year
Disposals
At 31 August 2020
NBV
At 31 August 2020
At 31 August 2019		 Freehold land &
buildings
£
6,536,234
73,355
-
6,609,589
3,851,858
288,910
-
4,140,768
2,468,821
2,684,376		 Plant &
machinery
£
69,011
-
-
69,011
`
48,968
-2,777
-
51,745
17,266
20,043		 Motor
vehicles
£
220,522
-
-
220,522
191,751
4,838
-
196,589
3,933
8,771		 Fittings &
equipment
£
660,737
19,074
(3,068)
676,744
591,013
31,844
(3,068)
619,789
56,955
69,725		 Assets
Under
Construction
£
-
11,387
-
11,387
-
-
-
-
11,387
-		 Totals
£
7,466,504
103,816
- 3,068
7,567,253
4,683,590
328,369
0
5,011,959
**2,558,362 **
2,782,915

26

SUNFIELD CHILDREN’S HOME LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) for the period ended 31 August 2020

8 INVESTMENTS

Listed investments:
Market value at 31 August 2019
Acquisitions at cost
Proceeds on disposal
Gain in the period
Market value at 31 August 2020
Investments at market value comprised:
UK bonds
UK equities
Overseas bonds
Overseas equities
Alternative investments
Properties
Other
Historical cost		 31 August 2020
£
446,550
87,797
(84,626)
(7,482)		 31 August 2019
£
431,172
60,981
(57,128)
11,525
446,550
31 August 2019
£
51,327
131,495
15,881
184,810
44,815
18,223
-
446,550
342,372
442,539
31 August 2020
£
50,784
116,778
16,437
205,178
16,731
14,512
22,119
442,539
378,352

The following investments represent more than 5% of the total market value:

JUPITER UT MANAGERS
JPMORGAN LTD US EQUITY
VANGUARD INV UK
BLACKROCK FM EUR DYNAMIC		 31 August
2020
£
33,118
41,210
54,761
24,239

27

SUNFIELD CHILDREN’S HOME LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) for the period ended 31 August 2020

9 DEBTORS: AMOUNTS DUE WITHIN ONE YEAR

Trade debtors
Intercompany debtors
Prepayments and accrued income
Other debtors
 31 August 2020
31 August 2019
£
£
1,263,604
33,485
550,000
-
5,820 -6
9,011
( 6,232
30,956
1,825,656
73,451

10 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Intercompany creditors
Grant commitment
Social security and other taxes
Other creditors
Accruals
Fees in advance		 31 August 2020
£
193,331
5,886
2,558,831
124,402
119,421
39,473
-
3,041,345		 31 August 2019
£
100,332
-
3,184,850
82,062
81,453
36,666
-
3,485,364

28

SUNFIELD CHILDREN’S HOME LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

for the period ended 31 August 2020

11 RECONCILIATION OF MOVEMENT IN FUNDS

Unrestricted funds
General fund
Restricted funds
Grant commitment
Share capital
Capital fund
Sensory rooms
Other funds
TOTAL
Unrestricted funds
General fund
Restricted funds
Grant commitment
Share capital
Capital fund
Sensory rooms
Other funds
TOTAL		 At 31 August
2019
£
2,323,326
(3,184,850)
100
1,768,835
3,073
326,563
(1,086,279)
1,237,047
At 31 August
2018
£
1,958,223
(3,184,850)
100
1,768,835
3,073
122,730
(1,290,112)
668,111		 Income
£
7,154,296
-
-
-
-
1,000
1,000
7 7,155,296
Income
£
6,769,485
-
-
-
-
203,833
203,833
6,973,318		 Expenditure
£
(7,060,151)
626,019
-
-
-

-
6
2
626,019
(6,434,132)
Expenditure
£
(6,404,382)

-
-
-
-

-
-
(6,404,382)		 Losses
£
(7,482)
-
-
-
-

-
-
(7,482)
Gains
£
-
-
-
-
-
-
-
-		 Transfers
£
-
-
-
-
-

-

-
-
Transfers
£
-
-
-
-
-
-
-
-		 At 31
August 2020
£
2,409,991
(2,558,831)
100
1,768,835
3,073

327,563
(459,260)
1,950,731
At 31 August
2019
£
2,323,326
(3,184,850)
100
1,768,835
3,073
326,563
(1,086,279)
1,237,047

29

SUNFIELD CHILDREN’S HOME LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

for the period ended 31 August 2020

Capital Fund The capital fund is used for the purpose of improving the building and site at Clent.

Sensory Rooms Donations received to create sensory rooms on-site at Sunfield that can be accessed by both day and residential pupils.

Other Funds Donations received for Sunfield Children’s School to improve the services that we provide. These funds will also be used to purchase equipment.

30

SUNFIELD CHILDREN’S HOME LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) for the period ended 31 August 2020

12 ANALYSIS OF NET ASSETS BETWEEN FUNDS

The capital fund represents assets purchased with restricted funds.

Authorised
100 Ordinary shares of £1 each
Allotted and fully paid
100 Ordinary shares of £1 each
As at 31 August 2020
Fixed assets
£
Share capital
-
Other reserves

1,768,835
Restricted funds
1,768,835
Unrestricted funds

789,526
2,558,362
As at 31 August 2019
Fixed assets
£
Share capital
-
Other reserves
1,768,835
Restricted funds
1,768,835
Unrestricted funds

1,014,080
2,782,915		 Investments
£
-

-
-

442,539
442,539
Investments
£
-
-
-

446,550
446,550		 31 August
2020
£
100		 31 August
2020
£
100		 31 August
2019
£
100
100 100
Other net
assets
£
100
(2,228,194)
(2,228,094)
1,177,925
(1,050,169)
Other net
assets
£
100
(2,855,214) )
(2,855,114)

862,695
(1,992,418)		 Total
£
100
**(459,359) **

(459,259)
2,409,991

1,950,732
Total
£
100
(1,086,379)
(1,086,379)

**2,323,326 **
1,237,047

31

SUNFIELD CHILDREN’S HOME LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

for the period ended 31 August 2020

13 FINANCIAL INSTRUMENTS

13 FINANCIAL INSTRUMENTS
31 August 31 August
2020 2019
£ £
Financial assets measured at settlement value 1,435,356 1,471,221
Financial assets measured at fair value 442,539 459,266
Financial liabilities measured at settlement value 352,225 218,451

Financial assets measured at settlement value comprise cash, trade debtors and other debtors.

Financial assets measured at fair value comprise listed investments which is the market value at the balance sheet date.

Financial liabilities measured at settlement value comprise trade creditors, other creditors and accruals.

An impairment of £nil was recognised in respect of financial assets held at settlement value (period ended 31 August 2019: £nil) .

15 PENSIONS

Teachers’ Pension scheme

The charity participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £40,903 and at the year-end £3,577.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by the Teachers’ Pension Scheme Regulations 2014. Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set following scheme valuations undertaken by the Government Actuary’s Department. The latest actuarial valuation of the TPS was prepared as at 31 March 2019 and the valuation report, which was published in April 2019, confirmed an employer contribution rate for the TPS of 23.6% from 1 September 2019. This was a rise of 43% from the previous rate of 16.4%, in place since 2012. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

This employer rate will be payable until the outcome of the next actuarial valuation, which was due to be prepared as at March 2020 and completed in 2023, with any resulting changes to the employer rate expected to take effect from 1 April 2023. This valuation will also determine the opening balance of the cost cap fund and provide an analysis of the cost cap as required by the Public Service Pensions Act 2013.

32

SUNFIELD CHILDREN’S HOME LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) for the period ended 31 August 2020

16 OPERATING LEASE COMMITMENTS

At the period end the charitable company has total commitments due under non-cancellable operating leases, for items of equipment only, as set out below:

Operating lease commitments due:
Within 1 year
Within 2 - 5 years		 31 August
2020
£
2,485
-
2,485		 31 August
2019
£
3,997
504
4,501

17 CONTINGENCIES

There are no contingent liabilities known or anticipated by the Trustees at the current or previous period end.

18 CAPITAL COMMITMENTS

There are no capital commitments at the current or previous period end.

19 ULTIMATE PARENT COMPANY AND CONTROLLING PARTY

Ruskin Mill Trust Limited (registered in England and Wales; company number: 07252866 and charity number: 1137167) is the sole member and controlling party of Sunfield Children’s Homes Limited. The objects of Ruskin Mill Trust Limited include the advancement of the education of young people with learning difficulties and/ or problems or special educational needs; the promotion of research into the practice and development of those areas of education; and the promotion of Rudolf Steiner education establishments. The charitable company runs six special educational needs schools/colleges. A copy of their financial statements can be obtained from the Registrar of Companies, Companies House, Crown Way, Cardiff CF14 3UZ.

20 RELATED PARTY TRANSACTIONS

During the year Mr A Gordon was the director and sole corporate Trustee of Ruskin Mill Land Trust (RMLT). At the year-end there is a grant commitment of £2,558,831 in place for transfer of the freehold land and buildings to RMLT. The transfer of this commitment to Ruskin Mill Land Trust will take place on or before 31 August 2021. The remaining balance is outstanding as at 31 August 2020.

33

SUNFIELD CHILDREN’S HOME LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

for the period ended 31 August 2020

21 RECONCILIATION OF OPERATING GAIN TO NET CASH INFLOW FROM OPERATING ACTIVITIES

Net incoming resources before
gains/(losses)
Non operating cashflows eliminated:
Interest
(Gain)/ loss on investments in the period
Depreciation of tangible fixed assets
Loss on disposal
Decrease / (Increase) in debtors
Increase/(Decrease) in creditors
Net cash inflow from operating activities		 2020
713,683
(10,852)
7,482
328,369
0
(1,752,205)
(444,318)
(1,157,841)		 2019
568,936
(13,250)
(11,525)
312,703
13,555
(629)
(570,907)
298,883

34