OpenCharities

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

2021-08-31-accounts

Registered number: 00787642 Charity number: 528409

MORETON HALL EDUCATIONAL TRUST LIMITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

MORETON HALL EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Charity, its Trustees and advisers 1
Trustees' report 2 - 11
Independent auditors' report on the financial statements 12 - 15
Consolidated statement of financial activities 16
Consolidated balance sheet 17 - 18
Charity balance sheet 19 - 20
Consolidated statement of cash flows 21
Notes to the financial statements 22 - 45

MORETON HALL EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2021

Trustees Dr L V Boon (resigned 14 January 2022)
Mr R J Carryer (appointed 29 November 2021)
Mrs R M E Clacher (appointed 9 March 2022)
Dr J J Dixey
Ms E J Flynn
Mrs A G Foulger
Mrs S E Groves (resigned 10 January 2022)
Mr C M Heath
Ms S E Hincks
Mrs C A Jones
Mrs C M Neilson
Mr C N H Pursglove (resigned 23 September 2021)
Mr A L Stockdale
Mrs S M Tunstall
Ms L V Yule
Company registered
number 00787642
Charity registered
number 528409
Registered office Moreton Hall
Weston Rhyn
Oswestry
Shropshire
SY11 3EW
Company secretary Mr I Davies
Independent auditors WR Partners
Chartered Accountants
Belmont House
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG
Key Management George Budd - Principal (resigned 31 August 2022)
Sarah Davis - Principal (appointed 1 September 2022)
Ian Davies - Financial Controller (resigned 1 December 2022)
Sarah Hughes - Head of Senior School
John Bond - Head of Moreton Hall Prep
Victoria Eastman - International Trustee
Lorna Campbell - Development Trustee
Carolyn Tilly (resigned October 2020)
Samantha Malkin (resigned August 2021)

Page 1

MORETON HALL EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021

The Trustees present their annual report together with the audited financial statements of the Charity for the year 1 September 2020 to 31 August 2021. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Objectives and activities

a. Policies and objectives

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

Charitable object

The object of the Charity is to benefit the public through the advancement of education, including the provision of boarding and day schooling for girls from the age of 3 to 18 and boys aged 3 to 13, with overseas boys up to age 18 accommodated in a separate International Study Centre.

Aims

The School's principal aims:

Objectives for the year

The Trustees’ main objective during this year of uncertainty and upheaval was to maintain the high standards of our joyous, aspirational and nurturing community, whether online or in person. While the pandemic raged outside our gates and reached into our school, Moreton planned, pivoted, innovated and ultimately, flourished.

Page 2

MORETON HALL EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Objectives and activities (continued)

Whilst planning the objectives for the year under review the trustees kept in mind the Charity Commission's guidance on public benefit. The trustees' objectives for the year under review were to maintain the academic standards of the School; to be able to fund development while at the same time holding fees as low as possible and ensuring a proper level of reward for employees; to promote open access to the School by maintaining and if possible increasing the provision of bursaries; to achieve further progress with the development plan for improving facilities; to promote links between the School and the local community including schools in the maintained sector.

b. Strategies for achieving objectives

The pandemic required innovation in every area of the school. With the assistance of our IT department, our teaching staff successfully continued with online teaching, with positive feedback for our online learning provision from both pupils and parents. Administration staff worked from home during lockdown. While buildings sat empty, our maintenance department completed several building projects, including a new library, junior art suite and common room for year 11, and an archive room. The trustees took a number of unprecedented steps to keep the school financially stable and to address the needs of parents during this time: school fees were reduced for the Spring Term 2021, and staff placed on furlough when necessary. During these adjustments, our academic programme remained at its normal pace and our rich and varied extracurricular activities continued, either online or in person.

The Trustees' strategy for achieving these objectives during the year has been to monitor the academic achievements of the School and to engage with the Principal and his colleagues on developments in the curriculum; to monitor the financial performance of the School and to approve a budget for the year which produces a result sufficient to support the School's development plan, whilst also taking into consideration the pressure that substantial fee increases can have on family budgets; to build a bursary appeal fund through the School's Foundation; to use the resources of the School’s foundation to offer bursary support to students from local maintained schools; to subsidise places for local students and Moreton Hall students.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

c. Activities undertaken to achieve objectives

The principal activity this year has been to maintain our academic, pastoral and extracurricular standards during the pandemic while shifting to pandemic rules and online learning. When awarded the Boarding School of the Year 2021 by TES Independent School Awards, the judges said, “Moreton Hall wowed judges with its commitment to its students and the wider community, exemplifying the best of the boarding school sector and managing the difficulties of the pandemic with aplomb.”

Despite the obstacles, Moreton accomplished a great deal during this year. We successfully continued with online schooling and kept the closeness and spirit of the school alive. The extensive society calendar of events moved online, and masterclasses were added. Pastoral care remained outstanding. We created initiatives to deal with COVID changes, including a bespoke six-week programme of life skills and A-Level and university preparation for Years 11 & 13 to fill the gap left in their time table when exams were cancelled. When our new community theatre, the Holroyd, was shuttered, Moreton continued to champion the local arts community by providing a virtual weekly venue for performing artists and their audiences. Our performing arts academy, Face2Face, continued and offered sessions free of charge to local pupils. Moreton also opened the ACE Sports Performance Hub which allows the school to provide to the community for sport what we already offer across the performing arts.

Page 3

MORETON HALL EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Objectives and activities (continued)

d. Grant-making policies

The School has a bursary appeal fund, which is administered within its Foundation, which gives financial support to parents whose child has been awarded a place at the School but who cannot afford the full fees. The School also provides bursaries funded from its own income. All bursaries are means tested up to 100% of fees and reviewed annually. The School also awards scholarships to pupils who show exceptional academic, musical, sporting or artistic promise.

During the year the School was able to award £3,650,232 (2020 - £3,624,611) in scholarship awards for academic, sport, musical, artistic and all-round excellence, and means tested bursaries designed to widen access to the School's education and relieve hardship where the pupil's education and prospects would otherwise be at risk.

Strategic report

Achievements and performance

a. Main achievements of the Charity

The extent to which the School achieves its aims cannot be measured by examination results alone. There are a range of indicators, not all measurable in quantitative terms, which show how well the School is providing an academic environment with high aspirations, an appropriate academic challenge which enables each pupil to realise their full potential, a wide range of activities through which children can develop a breadth of interests and learn to work cooperatively, a caring, supportive and well-ordered environment in which children from a variety of social backgrounds can feel secure and equally valued, and an ethos which encourages spiritual and personal development.

The School's financial performance is measured against the budget for the year with monthly management accounts which compare actual and budgeted expenditure and income, thus ensuring that, providing there are no unforeseen exceptional variations in expenditure or income, there are no significant variations from budget.

The Charity is continuing to develop wider community links. The development of the Holroyd Community Theatre, opened in November 2019, will cement Moreton’s reputation as a regional hub for the Arts. In addition, the charity has developed a key role in supporting the staff and pupils of a nearby state school. On a weekly basis, Moreton offers local students’ extra tuition in core subjects, with an emphasis on the gifted and talented, ensuring that the most able pupils receive the stretch and challenge they require.

The Charity also encourages widening participation by inviting pupils from local schools to events such as the Annual Careers Convention and Moreton Means Business Conference.

While some performance factors are clearly within our control, for example quality of teaching staff, other factors are not, which was even more apparent this year as the nation moved in and out of lockdown. We count ourselves fortunate in being able to acknowledge the positive contribution made to this year's achievements by a number of factors not susceptible to control, such as our pupils’ striving for excellence and their parents' endorsements of the life values we seek to inculcate. At A Level, over 88% of grades achieving A* to B, whilst at GCSE, 70% of all entries achieving top grades 9 – 7.

In December 2018, the school was inspected by the Independent Schools Inspectorate and was awarded the top grade of ‘Excellent’ for the quality of the achievement of the pupils, including their academic development, and their personal development.

Page 4

MORETON HALL EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Strategic report (continued)

Achievements and performance (continued)

The Enrichment programme within the school continues to develop with an extensive programme of lectures, clubs and societies taking learning beyond the syllabus. These activities continued online when we could no longer meet in person. The school achieves outstanding results beyond the classroom including success in Mathematical Olympiads, Physics Olympiads, Oxford Essay competitions and National Arts Awards. Additionally, the school has a long-standing reputation for Spoken English and the Performing Arts where students achieve recognition of their talents.

The school’s Enrichment programme, which was originally designed to assist in the preparation of Oxbridge candidates, has now been extended to each year group and is available to every girl in the school. It is designed to challenge and stretch girls and aims to provide every pupil with an education that is as broad as it is deep. Academic Societies include Gertrude Bell, aimed at girls with an interest in anthropology, geography and archaeology; Pi, for would-be engineers and mathematicians; Jenner, for pupils hoping to pursue a career in every field of medicine; and Bronwen, open to every girl in the school to develop thinking skills and explore areas not covered by the examination boards. For those who intend to apply to Oxbridge (or other highly competitive Universities), an accelerated programme of tutorials, seminars and intensive interview practice is on offer.

The Lady Barbirolli Music Society provides students with opportunities to receive professional level coaching through a series of masterclasses and workshops run by professional musicians.

Now in its tenth year, the Jenner Society is a Medical Science Society, established and run by the Lower Sixth Form students, which invites speakers to discuss biological developments and encourages attendance at a range of events and workshops to help girls interested in Medical and Veterinary Science.

The Bronwen Society provides a diverse collection of lectures and trips to inspire Moreton students beyond the confines of the curriculum.

There is a strong commitment to co-curricular activities for all pupils. The extended curriculum programme is designed to encourage girls to pursue a broad base of extended curriculum and enrichment activities whilst allowing the flexibility to follow special interests. Activities are tailored to each year group and offered for an hour every day after school. Year 7 and 8 children are expected to take at least four activities, Year 9 and above, three. In reality, participation rates are higher than this. Students are welcome to suggest activities they would like added to the programme, as they did this year with kayaking and dress making.

Our societies are just one aspect of our extracurricular programme, which also include Spoken English and debating, for which Moretonians regularly achieve national success, and sports, drama, art and music in many forms. Moretonians can be found at the national level across the performing arts and sports.

Student-led Moreton Enterprises (ME), a cornerstone of our entrepreneurial education, achieved turnover of £16,805 (2020: £18,967).

The DofE Award continued to thrive at Moreton Hall throughout the pandemic and is now emerging from the other side. A total of 20 Lower 5 students are working towards the Bronze Award and 16 Sixth Form pupils (10 in Upper 6 and 6 in Lower 6) are preparing for the Gold Award. Like most schools, we took advantage of the changes to assessment authorised during the Covid Pandemic: overnight camps for expeditions have been in the school grounds and many students have volunteered for a family member. The Gold Expedition did not take place last year so this year we will be combining the Sixth Form groups for a single programme of Training and Assessed Expeditions. There has been no change to the policy that the School does not undertake the Silver programme.

Page 5

MORETON HALL EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Strategic report (continued)

Achievements and performance (continued)

Sport is truly for every pupil at Moreton, as we understand how vital exercise is for both physical and mental health. While our Sports Department provides carefully monitored programmes for elite athletes, they also provide the same level of care for those pupils who are still searching for the activity that suits them best. Moreton offers a choice of more than 20 sports. Pupils have access to enhanced and specialist coaching from sporting teachers and professionals. We invite current international players and coaches to deliver special training days and workshops and regularly take pupils to events which benefit their physical and mental development.

Sadly, due to the global Covid pandemic, School sport was hit badly, and fixtures that we had scheduled for Hockey and Lacrosse had been unable to take place. All national, regional and county competitions were cancelled.

We mapped out a year-long external wider Lacrosse programme across the holiday periods, which involved camps, from beginners to master classes. Developing wider Lacrosse across the community is certainly an exciting development for Moreton and there is definitely a gap on the market for us to excel in this area.

This ties in nicely with the introduction of our new “ACE” sports hubs that we are promoting in the other sports, such as, Tennis, Hockey and Golf. A programme has been implemented to offer external camps and coaching workshops in these sports to attract people to Moreton.

In the students’ year group bubbles, we incorporated internal set competitions and tournaments to try and maintain the competitive element in sport, and give the students something to play for each week.

We look forward to continue to drive forward our sporting prowess at Moreton.

b. Fundraising activities and income generation

Like the rest of the school, Foundation activities had to pivot with the pandemic. Before the lockdown, the Foundation held dinners and quiz nights to promote Moreton in our communities. Unfortunately, we were forced to cancel our popular Annual Business Lunch and OM reunions as they could not take place in-person. The Foundation laid the groundwork for the next Capital projects and continues to support the Holroyd Community Theatre.

c. Investment policy and performance

The Charity does not have specific investment objectives, as the investments held are minimal. Investment performance is not therefore measured. All investment decisions are made within the restrictions imposed by the Memorandum and Articles of Association.

Financial review

a. Going concern

On 18 October 2022, the ongoing charitiable activities and assets of Moreton Hall Educational Trust Limited were sold to Moreton Hall Education Limited. The outstanding liabilities of the Charitable Company will be met from the proceeds of the sale. Accordingly the financial statements have been prepared on the basis that the Charitable Company is no longer a going concern as described in Note 2.2.

Page 6

MORETON HALL EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

b. Reserves policy

The total funds of the School as at 31 August 2021 were £5,773,089 (2020: £6,829,105). Of these £4,602,962 were unrestricted funds, and £1,170,127 restricted funds. Of the £4,602,962 of unrestricted funds, £7,347,668 is represented by tangible fixed assets. Therefore, the School currently has a deficit on free reserves of £2,744,706 which primarily represents funds expended on fixed assets which have been financed through working capital.

The deficit on free reserves is consistent with the trustees’ medium term (5 to 10 year) projections, with cash flow projections to the years ended 31 August 2023 having been produced and considered. The School aims to continue providing an excellent environment for pupils at the School by improving on the facilities of the School both in terms of academic and pastoral provision. The programme is reviewed and updated on a regular basis, along with its impact on cash flows. In addition to the improvements programme the School has undertaken a buildings condition survey to ensure that an adequate maintenance programme is in place to protect the fabric of the current plant for the long term. .

The reserves policy of the school will be reviewed on an annual basis by the Trustees.

c. Financial risk management objectives and policies

The Trustees are responsible for the management of the risks faced by the School. Detailed considerations of risk are delegated to the senior management team of the School. Risks are identified and assessed, and controls established throughout the year. A formal review of the Charity's risk management processes is undertaken on an annual basis.

The key controls used by the Charity include:

Through the risk management processes established for the School, the trustees are satisfied that the major risks to which the School is exposed, as identified by the trustees, have been reviewed and systems or procedures have been established to manage those risks. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Management has considered the Covid-19 scenario and concluded that it will continue to have a material impact on income. As such, appropriate steps have been taken to ensure the school continues to operate to the highest standards, these measures include utilising the various Government schemes and careful control of all expenditure.

Revised budgets, prepared by management and reviewed by Trustees, show the school is able to operate within its agreed banking facilities despite the Covid impact. As such, both management and trustees are confident they have the appropriate strategy in place to deal with future challenges. That said, although the position remains under constant review, based on the facilities available, it is considered appropriate to prepare the accounts on a going concern basis.

Page 7

MORETON HALL EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Structure, governance and management

a. Constitution

Moreton Hall Educational Trust Limited is registered as a charitable company limited by guarantee and was set up by a Trust deed.

Moreton Hall Educational Trust Limited is a charitable company limited by guarantee and therefore has no share capital. Each member is liable, upon the winding up of the company, to an amount not exceeding £2. The charity was incorporated on 10th January 1964.

The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association. The Memorandum and Articles were drawn up on 9th December 1963.

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Dr L V Boon (resigned 14 January 2022) Mr R J Carryer (appointed 29 November 2021) Mrs R M E Clacher (appointed 9 March 2022) Dr J J Dixey Ms E J Flynn Mrs A G Foulger Mrs S E Groves (resigned 10 January 2022) Mr C M Heath Ms S E Hincks Mrs C A Jones Mrs C M Neilson Mr C N H Pursglove (resigned 23 September 2021) Mr A L Stockdale Mrs S M Tunstall Ms L V Yule

The directors retiring by rotation who, being eligible, are available for re-election are: Ms E J Flynn Mr A L Stockdale Mrs C A Jones Mrs A G Foulger

Page 8

MORETON HALL EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Structure, governance and management (continued)

b. Methods of appointment or election of Trustees

The management of the Group and the Charity is the responsibility of the Trustees who are elected and coopted under the terms of the Trust deed.

Trustees are appointed by the existing board of trustees in accordance with the company's Memorandum and Articles of Association. There is no set time limit for a trustee's term in office, although each year one third of the board retire by rotation. No fee or remuneration is payable to trustees, other than reimbursement, if claimed, of reasonable costs incurred in attending meetings. A trustee who is disqualified from acting under the Charities Act 2011 or does not meet all the conditions as set out in point 40 of Articles of Association, will cease to be a trustee.

In appointing new trustees, the Board first reviews the skills and expertise available among serving trustees, looking at educational, financial, legal, charity and business skills. Having identified the skills and expertise required trustees discuss suitably qualified candidates and then appoint the most suitable candidate. The Board looks to have an appropriate gender balance among trustees and to have among the trustees, Old Moretonians (former pupils of the school), and former parents.

The School has taken out trustee indemnity insurance. This covers claims made against the School in respect of trustees' liability arising from any negligent act, error or omission committed in good faith.

c. Organisational structure and decision-making policies

The Trustees of the Charity are responsible for the overall management and control of the School and meet three times a year. There is one principal trustee sub-committee. The Finance Committee meets before each meeting of the full trustees, and addresses matters relating to finance. Mr A L Stockdale was chairman of the finance committee during the year.

The work of implementing most of the trustees' policies and the day to day running of the School is delegated to the Principal, the Financial Controller and the Senior Management Team. The Principal and Financial Controller attend all full Trustee and Finance Committee meetings.

d. Policies adopted for the induction and training of Trustees

All new Trustees are invited to spend a day at the school, which usually coincides with their first trustee meeting, and includes a complete tour of the school and meetings with relevant senior management. They are also encouraged to attend any seminars specifically relevant to their role as trustee. New Trustees appointed as members of the Finance Committee are briefed on the School's financial position by the chairman of the Committee. All Governors undertake relevant safeguarding training and receive regular updates on safeguarding provision from the school’s DSL.

e. Pay policy for key management personnel

The pay of key management personnel is reviewed annually by the governors. The charity benchmarks remuneration against other similar sized independent schools, using both AGBIS and the Baines Cutler salary surveys.

Page 9

MORETON HALL EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Structure, governance and management (continued)

f. Related party relationships

The Charity has a wholly owned non-charitable subsidiary, Moreton Hall Services Limited, whose trading performance is disclosed in the consolidated accounts which are publicly available from the Registrar of Companies, Cardiff.

The Holroyd Community Theatre Company Limited is a dormant company.

g. Financial risk management

The Trustees have assessed the major risks to which the Group and the Charity are exposed, in particular those related to the operations and finances of the Group and the Charity.

h. Post year end activities

On 18 October 2022, the ongoing charitiable activities and assets of Moreton Hall Educational Trust Limited were sold to Moreton Hall Education Limited. The outstanding liabilities of the Charitable Company will be met from the proceeds of the sale. Accordingly the financial statements have been prepared on the basis that the Charitable Company is no longer a going concern as described in Note 2.2.

Following a marketing process, the Trustees have sold the Trusts' activities and assets on 18 October 2022. As at the date the financial statements have been signed the Trust ceased to trade as an educational establishment. The Trust will continue to support the school, in the next six months, through the distribution of certain funds, and it is the intention to cease all operations within the next twelve months.

Page 10

MORETON HALL EDUCATIONAL TRUST UMITED IA company limited by guardntee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 staternent of TnBt8es' responsibilities The Tnjstees {Wt￿ are also the directors of the Charity for the purFQSes of compary lawl are responsible for preparing the Trustees, report including the Stralegic report and the financial statemenls in ￿3rdance with applicable lav and United lfjngdom Accwnting StarKlards {United lfjngdom Generalty Accepted Accounting Pracb'ce). Company law requires the Trustees to prepare financial ststements for each financial year. Under company law, the Trustees must not approve the financial sL￿nellts unle5S they are satisfied thal they give a twe and fair view of the state of affairs of the Group and Ihe Charity and of their incoming resources and application of resour￿, including their income and exp￿￿1￿uTe. for Ihat periLNJ. In pwing thhese financial statements, the Trustees are r￿uired io.. select suttable aC￿UntIng polKies and appty them consistenty: observe the methods and principle5 ofthe Charrhes SORP IFRS 1021,. make judgments and accounting estimates that are reasonab￿ and prudent,. sle whether 4plic&le UK Acc(yJnting StarKlards IFRS 102) have been folk)wed. subject to any merial departures di￿ and explained in the financial Statem￿., prepare the financÈal statements on the going ¢on¢em basB unless it is inappropriate to presume that the Group will continue in business. The Trustees are responsible for keepirKJ alequate accounting records that afe sufficient to show and explain the Group and the Charity's transactions and d￿{kne wrth reasonable awrw at any time the financial position of the Group and the Charity and enable them to ensure that the finanaal statements comply with the Companies Act 201￿. They are also iesponsible for uarding the assets of the Group and the Charity and hence for taknng reasonab￿ steps for the prevention and detectKJll of fraud and other irwularities. Disclosure of inforniation to auditOKS Each of the p￿n$ are TrLtstees at Ihe time when Ihis Twstees. re￿1 is approved has confirmed that: so far as thal Trustee is aware, there is no relevant audit information of which the charilable gri)up's audrtors are unaware, and that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant a￿1￿( information to establish Ihat the charitable gfW)'s a￿l￿OrS are aware of Ihat informatitin. Auditor5 The auditors, WR Partners, have Indi￿ed their willingness to continue in offi￿. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees. Approved by order ofthe members of the board of TT￿Stee$ and s[gn￿l on their teha￿bY.' ASLJ Mr A L Stockdalo Trustee Page11

MORETON HALL EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MORETON HALL EDUCATIONAL TRUST LIMITED

Opinion

We have audited the financial statements of Moreton Hall Educational Trust Limited (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 August 2021 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Charity balance sheet, the Consolidated statement of cash flows and the related notes, 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.

Emphasis of matter

We draw attention to Note 2.2 to the financial statements which explains that the Charitable Company has ceased its trading activities post year-end. It is the Trustees intention to cease all activities within the next twelve months and therefore the Trustees do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly the financial statements have been prepared on the basis that the Charitable Company is no longer a going concern as described in Note 2.2. Our opinion is not modified in this respect of this matter.

Page 12

MORETON HALL EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MORETON HALL EDUCATIONAL TRUST LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees 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.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report including the Strategic Report.

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

Page 13

MORETON HALL EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MORETON HALL EDUCATIONAL TRUST LIMITED (CONTINUED)

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the 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 are responsible for assessing the Group's and the parent 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 either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 Auditors' 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:

• We reviewed the susceptibility of the charitable company's financial statements to material misstatement and identified the principal risks, implementing a series of testing procedures to provide us with sufficient comfort to issue our opinion.

• We reviewed the charitable company's regulatory environment to ensure we could conclude that it had acted in accordance with the framework relevant to the charitable company and its environment and identify any instances of non-compliance.

• We also assessed the charitable company's internal control procedures to ensure we could appropriately scrutinise these controls and establish whether our understanding of the control environment was sufficient to supplement our additional testing procedures.

• The engagement team consisted of a team that the engagement partner believes is equipped with the relevant level of technical and charitable company awareness to carry out our work to the required standard.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Auditors' report.

Page 14

MORETON HALL EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MORETON HALL EDUCATIONAL TRUST LIMITED (CONTINUED)

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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Andy Malpass (Senior statutory auditor) for and on behalf of WR Partners Chartered Accountants Statutory Auditors Belmont House Shrewsbury Business Park Shrewsbury Shropshire SY2 6LG Date:

Page 15

MORETON HALL EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2021

Note
Income from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Other income
7
Total income
Expenditure on:
Raising funds
8
Charitable activities
9
Impairment to tangible fixed assets
Total expenditure
Net expenditure before net
gains/(losses) on investments
Net gains/(losses) on investments
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2021
£
-
-
-
-
-
-
-
37,854
-
37,854
(37,854)
-
(37,854)
1,207,981
(37,854)
1,170,127		 Unrestricted
funds
2021
£
-
7,744,000
16,805
-
923,129
8,683,934
14,838
8,823,315
865,346
9,703,499
(1,019,565)
1,403
(1,018,162)
5,621,124
(1,018,162)
4,602,962		 Total
funds
2021
£
-
7,744,000
16,805
-
923,129
8,683,934
14,838
8,861,169
865,346
9,741,353
(1,057,419)
1,403
(1,056,016)
6,829,105
(1,056,016)
5,773,089		 Total
funds
2020
£
23,928
8,479,070
18,967
1,737
696,458
9,220,160
59,753
9,287,736
-
9,347,489
(127,329)
(2,945)
(130,274)
6,959,379
(130,274)
6,829,105

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 22 to 45 form part of these financial statements.

Page 16

MORETON HALL EDUCATIONAL TRUST LIMITED (A company limited by guarantee) REGISTERED NUMBER: 00787642

CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2021

Note
Fixed assets
Tangible assets
14
Investments
15
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
19
Total net assets		 10,240
312,241
1,863,596
2,186,077
(2,886,216)		 2021
£
8,932,511
9,212
8,941,723
(700,139)
8,241,584
(2,468,495)
5,773,089		 8,370
280,400
304,575
593,345
(2,473,141)		 2020
£
10,053,265
7,809
10,061,074
(1,879,796)
8,181,278
(1,352,173)
6,829,105

Page 17

MOREfoN HALL EDUCATIONAL TRUST UMThED IA company limited by guarantee) REGISTERED NUMBER: (xin7642 CONSOUDATED BALANCE SHE￿ ICONTINUEDI AS AT 31 AUGUST 2021 2021 harity funds gestrided fvnds Unrestricted ￿ndS 20 1,170.127 4601962 1.207,981 5.621.124 Total funds 5.7T3.089 6.829. 105 The Trustees arknuledge their responsibilibes for ¢￿TrplyIng wilh the requirements of the Act with resp￿1 to accounting recxyds arKI preParat￿n of financial statements. The finan¢BI statements were approved and aulhoriJ for issue by the Trustees and signed on their behalf by.. hlr A L StoGkdal Trustee Date.. i¥lia> The notes on pages 22 to 45 form part ofthese financial st*ements. P￿18

MORETON HALL EDUCATIONAL TRUST LIMITED (A company limited by guarantee) REGISTERED NUMBER: 00787642

CHARITY BALANCE SHEET AS AT 31 AUGUST 2021

Note
Fixed assets
Tangible assets
14
Investments
15
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
19
Total net assets		 8,439
316,624
1,845,183
2,170,246
(2,883,933)		 2021
£
8,932,117
9,214
8,941,331
(713,687)
8,227,644
(2,468,495)
5,759,149		 5,735
282,477
292,236
580,448
(2,471,888)		 2020
£
10,052,740
7,811
10,060,551
(1,891,440)
8,169,111
(1,352,173)
6,816,938

Page 19

MOREfoN HALL EDUCATIONAL TRUST uMfTED IA company1Smited by guarantee) REGISTERED NUMBER: I#)787642 CHARITY BALANCE SHEEf ICOPfflNUED) AS AT 31 AUGUST 2021 20* 2020 Nots Charity fvnds estricted funds Unrestricted fund$ 1,170.127 4,589.022 1.207.981 5.eQ&957 Total funds 5.759.149 6,816.938 The Charrty's net movernent in fijnds for the year q1.057,789) (2020- £(730. 129). The Trustees ad(n¢ywledge th￿r reSp¢￿￿bilItIeS for complying wth the requirements of the Act with resFtd to accounting records and preparation ot financial slatemenrs. The financial ststements were approved authorised for issue by the Trustees and signed on their behatf by.. Mr A L Stockdalo Tnjstee Date. l%liTr-)L The rtotes on pajes 22 to 45 form part ofthese finanual statern￿. Page 20

(A company limited by guarantee)

MORETON HALL EDUCATIONAL TRUST LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Cash inflows from new borrowing
Repayments of borrowing
Net cash provided by/(used in) financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£
447,238
975
-
(159,444)
(158,469)
1,500,000
(229,748)
1,270,252
1,559,021
304,575
1,863,596		 2020
£
(856,844)
1,737
250
(890,374)
(888,387)
-
(191,568)
(191,568)
(1,936,799)
2,241,374
304,575

The notes on pages 22 to 45 form part of these financial statements

Page 21

MORETON HALL EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1. General information

Moreton Hall Educational Trust Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office Moreton Hall, Weston Rhyn, Oswestry, Shropshire, SY11 3EW.

2. Accounting policies

2.1 Basis of preparation of financial statements

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

Moreton Hall Educational Trust Limited 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.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.

Page 22

MORETON HALL EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.2 Going concern

On 21 July 2022, Moreton Hall Education Limited agreed to purchase the activities and assets of the Charitable Company.

On 18 October 2022, the assets, liabilities, staff and pupils of the Charitable Company were transferred to Moreton Hall Education Limited. The oustanding liabilities of the Charitable Company will be met from the proceeds of the sale and under the terms of the agreement.

It is the Trustees intention to cease all activities of Moreton Hall Educational Trust Limited within the next twelve months and therefore the financial statements have been prepared on the basis that the Charitable Company is not a going concern.

The financial statements have been prepared using an alternative basis. The assets of the Charitable Company have been assessed for impairment based on the proceeds that have been received. The recoverable amount of each asset class has been reviewed. The recoverable amount is the higher of, the assets value in use and the fair value less costs to sell. The value in use is the present value of the future cash flows expected to be derived from the asset class. The fair value is an amount obtainable from sale in an arm's length transaction between knowledgeable, willing parties, less the costs of disposal.

The recoverable amount review has led to an impairment charge against tangible fixed assets. The fair value, established from a valuation report, was below the carrying amount of this asset class. An impairment charge for £865,346 has been recognised. There has been no further impairment charge recognised on the other assets following a fair value review.

The Charitable Company received £3,800,000 for the activities and assets of the school. This is substantially lower than the fair value of the assets which has been reported in the balance sheet.

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

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

Page 23

MORETON HALL EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Tangible fixed assets and depreciation

Tangible fixed assets costing £2,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following bases:

Freehold property - 2% -10% straight line on cost
M&E work - 2% on cost
Motor vehicles - 25% on reducing balance
Fixtures and fittings - 20% - 33.3% on cost, 10% - 25% on reducing
balance

2.6 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

Page 24

MORETON HALL EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.7 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.8 Debtors

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

2.9 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.10 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.

2.11 Financial instruments

The Group 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.12 Pensions

The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year. The Group contributes to two pension schemes:

Page 25

MORETON HALL EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.13 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Income from donations and legacies

Donations and gifts
Total 2021
Total 2020		 Restricted
funds
2021
Unrestricted
funds
2021
£
£
-
-
-
-
18,578
5,350		 Total
funds
2021
£
-
-
23,928		 Total
funds
2020
£
23,928
23,928

Page 26

(A company limited by guarantee)

MORETON HALL EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

4. Income from charitable activities

Unrestricted
funds
2021
£
Gross fees receivable
11,151,790
Remissions
(3,650,232)
Registration fees
33,194
Other educational income
209,248
Total 2021
7,744,000
Total 2020
8,479,070
5.
Income from other trading activities
Income from non charitable trading activities		 Total
funds
2021
£
11,151,790
(3,650,232)
33,194
209,248
7,744,000
8,479,070		 Total
funds
2020
£
12,020,969
(3,624,611)
24,782
57,930
8,479,070
Unrestricted
funds
2021
£
Moreton Hall Services Ltd income
16,805
Total 2021
16,805
Total 2020
18,967		 Total
funds
2021
£
16,805
16,805
18,967		 Total
funds
2020
£
18,967
18,967

Page 27

MORETON HALL EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

6. Investment income

Unrestricted
funds
2021
£
Dividends
-
Total 2021
-
Total 2020
1,737		 Total
funds
2021
£
-
-
1,737		 Total
funds
2020
£
1,737
1,737

7. Other incoming resources

JRS income
Other income
Total 2021
Total 2020		 Unrestricted
funds
2021
£
923,129
-
923,129
696,458		 Total
funds
2021
£
923,129
-
923,129
696,458		 Total
funds
2020
£
646,458
50,000
696,458

Page 28

MORETON HALL EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

8. Expenditure on raising funds

Costs of raising voluntary income

Unrestricted
funds
2021
£
Fundraising activities
-
Total 2021
-
Total 2020
40,831
Fundraising trading expenses
Unrestricted
funds
2021
£
Moreton Hall Services Ltd expenditure
14,838
Total 2021
14,838
Total 2020
18,922		 Total
funds
2021
£
-
-
40,831
Total
funds
2021
£
14,838
14,838
18,922		 Total
funds
2020
£
40,831
40,831
Total
funds
2020
£
18,922
18,922

Page 29

(A company limited by guarantee)

MORETON HALL EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

9. Analysis of expenditure on charitable activities

Summary by fund type

Restricted Unrestricted

Education
Teaching
Welfare
Premises
Support costs
Governance costs
Total 2021
Total 2020		 funds
2021
£
-
-
-
37,854
-
-
37,854
40,176		 funds
2021
£
300,993
5,643,322
550,659
993,871
1,255,604
78,866
8,823,315
9,247,560		 Total
2021
£
300,993
5,643,322
550,659
1,031,725
1,255,604
78,866
8,861,169
9,287,736		 Total
2020
£
564,377
6,192,979
442,868
852,887
1,152,243
82,382
9,287,736

10. Analysis of expenditure by activities

Education
Teaching
Welfare
Premises
Support costs
Governance costs
Total 2021
Total 2020		 Activities
undertaken
directly
2021
£
300,993
5,643,322
550,659
1,031,725
-
-
7,526,699
8,053,111		 Support
costs
2021
£
-
-
-
-
1,255,604
78,866
1,334,470
1,234,625		 Total
funds
2021
£
300,993
5,643,322
550,659
1,031,725
1,255,604
78,866
8,861,169
9,287,736		 Total
funds
2020
£
564,377
6,192,979
442,868
852,887
1,152,243
82,382
9,287,736

Page 30

MORETON HALL EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

10. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Depreciation
Bad debts
Teaching costs
House
expenditure
Catering &
hospitality
Repairs &
maintenance
Other premises
costs
Rates
Utilities
Insurance
Lettings
Other
Total 2021
Total 2020		 Education
2021
£
-
-
-
-
-
-
-
-
-
-
-
13,908
287,085
300,993
564,377		 Teaching
2021
£
5,278,605
-
-
364,717
-
-
-
-
-
-
-
-
-
5,643,322
6,192,979		 Welfare
2021
£
-
-
-
-
135,706
414,953
-
-
-
-
-
-
-
550,659
442,868		 Premises
2021
£
-
367,066
-
-
-
-
202,971
146,488
40,521
235,073
39,279
-
327
1,031,725
852,887		 Total
funds
2021
£
5,278,605
367,066
-
364,717
135,706
414,953
202,971
146,488
40,521
235,073
39,279
13,908
287,412
7,526,699
8,053,111		 Total
funds
2020
£
6,206,452
367,319
21,116
(13,473)
102,850
340,018
100,459
106,428
38,923
236,431
43,700
152,349
350,539
8,053,111

Page 31

MORETON HALL EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

10. Analysis of expenditure by activities (continued)

Analysis of support costs

Support
2021
Governance
2021
£
£
Staff costs
894,897
-
Depreciation
17,068
-
Other
59,227
-
Bank interest & charges
92,919
-
Telephone
20,466
-
Postage & stationery
16,359
-
Marketing & publicity
123,811
-
Office equipment
1,830
-
Staff recruitment
6,781
-
Subscriptions
22,246
-
Professional fees
-
63,866
Auditors remuneration
-
15,000
Total 2021
1,255,604
78,866
Total 2020
1,152,243
82,382
11.
Auditors' remuneration
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts
Fees payable to the Charity's auditor in respect of:
All non-audit services not included above		 Total
funds
2021
£
894,897
17,068
59,227
92,919
20,466
16,359
123,811
1,830
6,781
22,246
63,866
15,000
1,334,470
1,234,625
2021
£
11,000
3,250		 Total
funds
2020
£
829,636
15,452
3,896
55,373
19,166
28,138
148,545
18,085
14,092
19,860
70,322
12,060
1,234,625
2020
£
10,500
-

Page 32

MORETON HALL EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

12. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2021
£
5,110,212
455,945
607,345
6,173,502		 Group
2020
£
5,808,229
504,411
723,448
7,036,088		 Charity
2021
£
5,110,212
455,945
607,345
6,173,502		 Charity
2020
£
5,808,229
504,411
723,448
7,036,088

The average number of persons employed by the Charity during the year was as follows:

Teaching
Support and ancillary		 Charity
2021
No.
100
115
215		 Charity
2020
No.
119
122
241

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

Group Group
2021 2020
No. No.
In the band £60,001 - £70,000 2 -
In the band £80,001 - £90,000 - 1
In the band £100,001 - £110,000 1 1
In the band £130,001 - £140,000 - 1

The key management personnel of the charitable company are listed on page 1. The total amount of employee benefits (including employer pension contributions and employer national insurance contributions) received by key management personnel for their services to the charitable company was £478,455 (2020: £424,288).

13. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).

During the year ended 31 August 2021, no Trustee expenses have been incurred (2020 - £501).

Page 33

MORETON HALL EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

14. Tangible fixed assets

Group

Cost or valuation
At 1 September 2020
Additions
Disposals
Impairment
At 31 August 2021
Depreciation
At 1 September 2020
Charge for the year
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Freehold
property
£
14,139,748
137,145
(30,392)
(865,346)
13,381,155
4,603,805
338,597
4,942,402
8,438,753
9,535,943		 Plant and
machinery
£
589,109
-
-
-
589,109
209,004
11,680
220,684
368,425
380,105		 Motor
vehicles
£
174,734
22,299
-
-
197,033
128,443
17,394
145,837
51,196
46,291		 Fixtures
and
fittings
£
713,032
-
-
-
713,032
622,106
16,789
638,895
74,137
90,926		 Other
fixed
assets
£
41,723
-
-
-
41,723
41,723
-
41,723
-
-		 Total
£
15,658,346
159,444
(30,392)
(865,346)
14,922,052
5,605,081
384,460
5,989,541
8,932,511
10,053,265

Page 34

MORETON HALL EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

14. Tangible fixed assets (continued)

Charity

Cost or valuation
At 1 September 2020
Additions
Disposals
Impairment
At 31 August 2021
Depreciation
At 1 September 2020
Charge for the year
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Freehold
property
£
14,139,748
137,145
(30,392)
(865,346)
13,381,155
4,603,805
338,597
4,942,402
8,438,753
9,535,943		 Plant and
machinery
£
577,378
-
-
-
577,378
197,798
11,549
209,347
368,031
379,580		 Motor
vehicles
£
174,734
22,299
-
-
197,033
128,443
17,394
145,837
51,196
46,291		 Fixtures
and
fittings
£
713,032
-
-
-
713,032
622,106
16,789
638,895
74,137
90,926		 Other
fixed
assets
£
41,723
-
-
-
41,723
41,723
-
41,723
-
-		 Total
£
15,646,615
159,444
(30,392)
(865,346)
14,910,321
5,593,875
384,329
5,978,204
8,932,117
10,052,740

The freehold property has been subject to an impairment review based on an external valuation performed by Sanderson Weatherall LLP, chartered surveyors, on an open market basis. The valuation was performed on 2 October 2020.

Page 35

MORETON HALL EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

15. Fixed asset investments

Group
Cost or valuation
At 1 September 2020
Revaluations
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020
Charity
Cost or valuation
At 1 September 2020
Revaluations
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Investments
in
subsidiary
companies
£
2
-
2
2
2		 Listed
investments
£
7,082
1,403
8,485
8,485
7,082
Listed
investments
£
7,082
1,403
8,485
8,485
7,082		 Unlisted
investments
£
727
-
727
727
727
Unlisted
investments
£
727
-
727
727
727		 Total
£
7,809
1,403
9,212
9,212
7,809
Total
£
7,811
1,403
9,214
9,214
7,811

Page 36

(A company limited by guarantee)

MORETON HALL EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

15. Fixed asset investments (continued)

Principal subsidiaries

The following was a subsidiary undertaking of the Charity:

Name Company Company Holding
Included in		 Holding
Included in		 Holding
Included in
number consolidation
Moreton Hall Services Ltd 02964198 100% Yes
The financial results of the subsidiary for the year were:
Name Income Expenditure Profit/ Net assets
£ £ (Loss) for £
the year
£
Moreton Hall Services Ltd 16,805 (14,838) 1,967 13,942
16. Stocks
Group Group
Charity		 Charity
2021 2020
2021		 2020
£ £
£		 £
Stock 10,240 8,370
8,439		 5,735
17. Debtors
Group Group
Charity		 Charity
2021 2020
2021		 2020
£ £
£		 £
Due within one year
Trade debtors 116,078 157,798
116,078		 157,798
Amounts owed by group undertakings - - 4,383 2,077
Other debtors 193,409 98,209
193,409		 98,209
Prepayments and accrued income 2,754 24,393
2,754		 24,393
312,241 280,400
316,624		 282,477

Page 37

MORETON HALL EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

18. Creditors: Amounts falling due within one year

Bank loans
Payments received on account
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 Group
2021
£
378,197
1,909,128
233,944
135,123
31,834
197,990
2,886,216		 Group
2020
£
224,267
1,733,306
69,258
156,099
107,839
182,372
2,473,141		 Charity
2021
£
378,197
1,909,128
231,661
135,123
31,834
197,990
2,883,933		 Charity
2020
£
224,267
1,733,306
69,258
156,099
106,586
182,372
2,471,888

19. Creditors: Amounts falling due after more than one year

Group
2021
£
Bank loans
2,468,495
Included within the above are amounts falling due as follows:
Group
2021
£
Between one and two years
Bank loans
665,077
Between two and five years
Bank loans
1,315,797
Over five years
Bank loans
487,621		 Group
2020
£
1,352,173
Group
2020
£
250,340
484,186
617,647		 Charity
2021
£
2,468,495
Charity
2021
£
665,077
1,315,797
487,621		 Charity
2020
£
1,352,173
Charity
2020
£
250,340
484,186
617,647

The bank loans are secured by a first legal charge over freehold land and property, a fixed charge over book debts and floating charge over all other assets. In addition to this there is an available overdraft facility, secured under the same provisions.

Page 38

(A company limited by guarantee)

MORETON HALL EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

20. Statement of funds

Statement of funds - current year

Balance at 1
September
2020
£
Unrestricted funds
General Funds - all funds
5,608,957
Non-charitable trading funds
12,167
Impairment to tangible fixed
assets
-
5,621,124
Restricted funds
Norman Quick
5,598
Foundation
56,981
Lingard Goblet
1,000
Science Block
86,071
Sports Pavilion
54,249
Walled Garden
3,000
Theatre Project
1,001,082
1,207,981
Total of funds
6,829,105		 Income
£
Expenditure
£
8,667,323
(8,823,315)
16,611
(14,838)
-
(865,346)
8,683,934
(9,703,499)
-
-
-
(1,325)
-
-
-
(2,002)
-
(1,188)
-
-
-
(33,339)
-
(37,854)
8,683,934
(9,741,353)		 Gains/
(Losses)
£
1,403
-
-
1,403
-
-
-
-
-
-
-
-
1,403		 Balance at
31 August
2021
£
5,454,368
13,940
(865,346)
4,602,962
5,598
55,656
1,000
84,069
53,061
3,000
967,743
1,170,127
5,773,089

Page 39

MORETON HALL EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

20. Statement of funds (continued)

Statement of funds - prior year

Statement of funds - prior year
Unrestricted funds
General Funds - all funds
Non-charitable trading funds
Restricted funds
IT Centre Fund
Norman Quick
Foundation
Lingard Goblet
Science Block
Sports Pavilion
Walled Garden
Theatre Project
Total of funds		 Balance at
1 September
2019
£
5,717,484
12,316
5,729,800
2,322
5,598
58,306
1,000
88,073
55,437
3,000
1,015,843
1,229,579
6,959,379		 Income
£
9,182,809
18,967
9,201,776
-
-
-
-
-
-
-
18,578
18,578
9,220,354		 Expenditure
£
(9,291,336)
(19,116)
(9,310,452)
(2,322)
-
(1,325)
-
(2,002)
(1,188)
-
(33,339)
(40,176)
(9,350,628)		 Balance at
31 August
2020
£
5,608,957
12,167
5,621,124
-
5,598
56,981
1,000
86,071
54,249
3,000
1,001,082
1,207,981
6,829,105

Page 40

MORETON HALL EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

20. Statement of funds (continued)

IT Centre

This fund represents monies given to cover the development of the IT suite and income is released from this fund in line with the depreciation of the suite.

Foundation

This fund represents money received for bursaries and capital projects raised from appeals, events and bequests. In the year ended 31 August 2014 this money was spent on the development of the science block and income is being released from the fund in line with the depreciation of the science block.

Science Block

This represents monies given for the development of the science block and is being released from the fund in line with the depreciation of the science block.

Sports Pavilion

This fund represents monies given for the building of a sports pavilion and is being released from the fund in line with the depreciation of the pavilion.

Centenary Scholarships

This represents money givenfor scholarships awarded to pupils. All moneis have been spent on scholarships in 2020.

Walled garden

This represents money given for a project to develop the walled garden. The work on the walled garden has yet to be started.

Theatre Project

This represents money given to build The Holroyd Community Theatre and is being released from the fund in line with depreciation of the theatre.

Page 41

MORETON HALL EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

21. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Total
Analysis of net assets between funds - prior year
Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Restricted
funds
2021
Unrestricted
funds
2021
£
£
1,584,843
7,347,668
-
9,212
-
2,186,077
(414,716)
(2,471,500)
-
(2,468,495)
1,170,127
4,602,962
Restricted
funds
2020
Unrestricted
funds
2020
£
£
1,840,251
8,213,014
-
7,809
-
593,345
(632,270)
(1,840,871)
-
(1,352,173)
1,207,981
5,621,124		 Total
funds
2021
£
8,932,511
9,212
2,186,077
(2,886,216)
(2,468,495)
5,773,089
Total
funds
2020
£
10,053,265
7,809
593,345
(2,473,141)
(1,352,173)
6,829,105

Page 42

MORETON HALL EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

22. Reconciliation of net movement in funds to net cash flow from operating activities

Net expenditure for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Impairment on tangible fixed assets
Dividends, interests and rents from investments
Loss/(profit) on the sale of fixed assets
Decrease/(increase) in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Fair value gains and losses on investments
Net cash provided by/(used in) operating activities		 Group
2021
£
(1,056,016)
414,852
865,346
(975)
-
(1,870)
(31,841)
259,145
(1,403)
447,238		 Group
2020
£
(130,274)
382,946
-
(1,737)
(196)
8,353
277,747
(1,396,628)
2,945
(856,844)
  1. Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 Group
2021
£
1,863,596
1,863,596		 Group
2020
£
304,575
304,575

Page 43

MORETON HALL EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

24. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 At 1
September
2020
£
304,575
(224,267)
(1,352,173)
(1,271,865)		 Cash flows
£
1,559,021
(153,930)
(1,116,322)
288,769		 At 31
August
2021
£
1,863,596
(378,197)
(2,468,495)
(983,096)

25. Pension commitments

Defined contribution schemes

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pensions Regulations (2010) and from April 2014, by the Teachers' Pension Regulations 2014. Membership is automatic for full-time teachers and lecturers and from 1 January 2007 automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS.

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 Teacher's Pension Scheme

Not less than every four years the Government Actuary (GA), 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 contribution. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The lastest actuarial valuation of the TPS wascarried 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 in March 2019. This showed an increase in employer contribution rates fro September 2019 set as 23.68% of pensionable pay (including a 0.08% employer administration charge (previously 16.48%).

The pension charge for the year represents contributions payable to the scheme of £555,766 (2020: £668,728). Contributions payable for the year ended 31 August 2021 totalled £Nil (2020: £75,165).

The school also contributes to personal pension schemes for some non-teaching staff. They are defined contribution schemes and contributions are charged to the SOFA as they accrue. The total pension charge for the year was £57,955 (2020: £54,720).

A copy of the valuation report and supporting documentation is on the Teachers' Pension website.

Page 44

MORETON HALL EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

26. Operating lease commitments

At 31 August 2021 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:


payments under non-cancellable operating leases as follows:
Not later than 1 year
Later than 1 year and not later than 5 years		 Group
2021
£
5,828
3,400
9,228		 Group
2020
£
5,828
9,227
15,055

27. Related party transactions

During the year two Trustees (2020: one) had children or grandchildren at the School. They receive no remission of fees by virtue of their membership of the governing body.

28. Post balance sheet events

On 18 October 2022, the ongoing charitiable activities and assets of Moreton Hall Educational Trust Limited were sold to Moreton Hall Education Limited. The outstanding liabilities of the Charitable Company will be met from the proceeds of the sale.

Page 45