Highclare School IA ccffipany linirted by guarantee) Govemors, Report and Consolidated Financial Ststements for the Year Ended 31 August 2021 Reg6lered numt*r. 10745 Registered charity number. 528940 *AAkfv720X• 3110112022 COMPANIES HOUSE #177 Highclare School Financial Statements For the Year Ended 31 August 2021 Contents Pages Govemors and General Infomiatk)n strateg￿ Report Govemors. Report Independent Auditorfs Report 9-12 ConsdKlatewrth (Chairman) J R Brain ACA Mrs P A Mayall AIHaz Mrs S D Watson A B Davison Professor F Eperjesi Head: Dr R Luker PhD MA BA (Honsl PGCE Educational estsblishments: Highclare Preparatory School.. W¢JyJfeld Pre-PreparalcKy and Preparatory 241 Birmingham Road Wylde Green Sutton Coldfield West Midlands B72 1EA H￿hCIare Preparntory School." Sl.Paul's Pre-Pfeparatory and Preparatory 88 Lichfield Road Sutton Coldfield We51 Midknds B71 2SY H￿hC1are'. The Abbey sen￿ School aTrJ Sixth Form 10 Sutton Road Erdington Birmingham B23 6QL Registered office: 241 Bimingham Road wY￿e Green Suiton Coklfiek West Midlands 872 1EA Bankers: HSBC Bank Ptc The Bndge WaL8all WS1 1LN Auditors- . Malcolm Piper 8 Company Limited Kingsnorth House Blenheim Way KingstsndirwJ Bimiingham B44 8LS Senior management personnel: Dr R Luker Mrs S Cassell (Appointed 1 September 2021) Mrs P Bennett Mrs M P A McGoklrick Mr M Coles Mrs J Griffiths Mts H Gocmj I￿>pe￿nt&￿ 1 September 2021) Charity number: Company number. 528940 10745* Pa9e 1 Highclare School Strateg1¢ Report Oble¢tlves and Activities The principal actimty of the Group remains the provision of luitK)n and general education facilities to children be￿een rising three and eighteen years. The objectives of the Charrty are: lal To promote and prowde for the advancement of education and training and in conneclK)n therewith to coThluct. carry on, wuire and devebp in the Unrted Kingdom or elsewhere any trx)arding or day schod or schooL8 forthe edueath)n of child￿n and young people of both sexes,. Ib) To provhlefacilities in the interest ofsock81 weware forthe w￿allOn and leisure timeoccupation for children and young people with the ¢*ecl of th￿proving their ￿ndrtionS of lrfe. For over 90 years, HwJhclare has been pursuing rts poI￿Y of encouraging pupils lo achieve their full potential within a stimulating a{xlem￿ environment and lo pursue excellen￿. The HighGl8re philosg)hy goes much further than educatKJnal ex￿llence." we endeavour lo work wi(h both students and parents to equip our young people to cope wrth the p￿SsUre$ of modem society. The measures imposed by the Govemment as part of its strategy to control the spread of Covid-19 had a signrficant impacl on the year. Much of the spring term wa5 impacted by the second lockdown, necessrtaling the return to remote educatKJn. The autumn and summer lems were largety face-to-face leaming in school under the well*slablished operational reStrict￿n$ bul some groups in the Senior School did miss part of the autumn term as a resum of the witract tracing procedures we were asked to follow. The School's focus continues to be on achievement of aCadern￿ performance by a ￿arnIng curriculum that is broad and balanced and kept constantly under review, the widening of access lo the education promded by the School. enhancing the use of technology in texhing and improving the School's facilrties and their access by the local communty. Over the period, there was once again extensive refurbishment lo continue the rolling programme of essential upgrajing of the intemal and exlemal infrastructure of all school bLtiklings, including extemal artd intemal refU￿1$hment and decoralion at three school locations plus the sports f￿ld and pavilion. Recrultsnent and Training of Govemor5 Governors are familiar wrth the aims, obJ"ectNes arwj pwtical operatK)n of the sc￿￿. usually erther by being parents or grandpar*fts tA children who are currenty being educated at Ihe Schod or having had children attend the School in the past Nthv GoverrKJrs are apFointed by the Board of Govemors and ele¢te¢J at an Annual Genera Meeting folkn¥iThJ Comple￿ of 12 months of servrE. Additionally, new Governors are prowded wth a copy of the latest financ￿1 statements and Memorandum and Articles of Association as well as a copy of the Charrty Commission's guKlance, 'The Essential Trustee.. What you need to kncNI. what you need to do.. Govemor5 undertake training as and when required appropriate lo their spe￿[IC needs and respons5bilrties. The Governor5 delemine the strategy and general poliues of the schc￿l and meet as a Board al least 10 lime5 a year. The implementatson of the strategy together wrth the daY-t￿daY management of the Sch¢x)l is delegated to the Headmaster and the Senior Leadership Team. Group Structure and Relationships The School has a wholty owned nOn-charrtab￿ subsidiary, Hohclaie Investments Limited. HighcLgre Investmen15 Limrted also has a wholly owned subsKliary. HIgh¢la￿ Limited. The principal activity of both subsidiaries is propety ownership and management although t￿h subswsiary eompanies were non-trading throughout the current financial year Page 2 Highclare School Strategic Report (continued) Achievements and Perfomwnce Academic achievement is a matter of record. with our pupiLs wnning place5 al lop indeperidenl and maintained grammar schcols al junM)r level and gaining their choice of university after the Sixth Form. School was able to create, Imp￿rne￿t and manage rts own bespoke system of te￿her-aSSes$ed grades. Thi8 was an effectwe and fair system that prcperty recLyJnised student achievement and maintained a very high level of professional integrity. The strength of le¥hing, processes and the dedication and continued hard woik and application from staff and students plac&J us fimity amongst the top independent and maintained schools in the region. Academic resutts during the year were On￿ #gain ex¢eltent wrth a 100% pass rate at 'A' Level", and 574A passe5 at A. and A grades lin¢luding EPQI. AI GCSE an impressive 100% of the candidates achieving grades 9 to 4 IA" to C equivalentl in fNe or more subjecls. 50°k achieving grades 9 to 7 and 94% attaining malhs and English. These grades were achieved alongside taking part in a full extra- Curr￿Ular timetab￿. in keeping with the HvJhclare ethos of educating the whole person. Academic 'value added.. using the CEM Centre's measures of MhlYIS and Yellls. continue5 to be indicative of the very good progress that the pupils make. This yearfs average residuals for MidYIS and Yellls 1+0.5 and +0.3 respectNely) ranked the School in the top /4 and /) Irespectivelyl in the order for participating schools. Throughoirt the year both the Senior and Preparatory sch￿[s continued to piovide a vast range of co- curricular and extra-curricular actmly. HvJhcLire School is deduted to educating the whole person and allowing them lo fu￿11 their potentkql in so many vrdys through sport, music. drdma, the Duke of Edinburgh Award scheme and the many activities and trips both local and abroad offered lo pupils. These adivities ¢omplemenl the learning through the curnculum and enrich personal devebpment. This is what Highclare Schwl is all about. gimng the opportunrtie5 to pupi15 to ￿arn important skills such as leadership. time rnanagernenl, teamwork. Fersislence and lo grow in both self-confidence and self- assurance. Although the Covid-19 related restrich'ons impacted Highdare and all other schools in the spring tem, there vrds still a very impressive depth and breadth to the enrichment xtivty that took place. In Ihe Senior School. exlra-Curr￿1ar clubs at ￿nch and after schcd continued lo play a huge part in the devebpmenl of sport. Except during lockdown. clubs included". fwtball, netball, hockey, table tennis, fugby, basketball, badminton, indoor athlet￿S and cncket. HKJhclare Sports Fiekl continues to be used weekly in the double lessons for football and rugby and more recently for cricket in Septembèr ana October. making use of the Astroturf wcket. The pupi15 in U31L4 conts.nued lo have a weekly Swimming lesson at Erdinglon Leisure Centre. which is a fantast￿ opportunty for their development. Highclare Preparatory School. unable to condu¢tthe usual sporting fixtures, engaged the boys and girfs superbly through the organisatKJn of numerous house-based sporting competrtions. The Ouke of Edinburgh Scheme, wh￿h Wds established at High¢la￿ SchcK)l in 2013. continues to flourish. The awards invdve a wide range of a¢iNrtEs including sport. expedit￿nS and volunteering all of which the students have to organise for themselves and wht¢h demands a great deal of personal input along wrth the tremendous support from the leaching staff involved. who also give up their free lime to supervise the expedrtions and manage the pKyJrnmme. Thi% year saw eleven pupils achieving bfonze status and four silver 51alus. Music and drama ¢onlinue to play an extremety inportant part of ￿h0o1 lrfe. Music events were unable lo lake pLace but many of the pupiL8 maintained their progress Ma the inleraclh?n with the numerous siting MUS￿ teachers vtho continue to do so much valuable work. The London A¢ademy of Music and Dramatic Arts ("LAMDA"l is an extremely popular extra-currieular aclivrty. which aifows pupils to grow in confidence and devekjp their Ir￿￿(1ua1ty. Thts hascontinued to flourish and, once again. manypupils look exams during the year. Page 3 Highclare School Strategic Report (continued) Achievements and Perfomiance {continued In the annual ISA art eompeti(ion Iregionall we enjoyed success across the School with five first places, three second place5 and three highty commended. Two pieces Y￿nt on lo be highly commended in the national competition. The Preparatory School continues to pr(Knote the ongoing and all-rourKI development of all the children in a nurturing and caring environmenl. The Governors offer their congratulat￿5 to the girts and tK)ys who participated in these achievements and thank the teachers and parents fortheirc(ynmibment and support. in spite of the difficU￿"eS we.have faced. P8StOfal care continues lo be a strength of the Schcol wrth cclnprehensive pol￿￿ on Personal. Sockql, Health and Citizenship Education {PSHCE}, Social, Moral. Spiritual and Cu￿Ural aspecis of Leaming (SMSCI and careers guidance, together wrth an outstanding I￿Or system. School has implemented the regulatory framework wrth regard to ￿lat￿nshiP and sex education. Community InvolY¢ment The School has an on-going commitmentto encLwraye all pupils ofevery age to engage lal appropriate levels) in cc¥nmunily involvement. These include community carol singing, personal visits to residential and care homes and a I(￿1 specia needs schcol. InvrtatNJns ale exlend&l lo these reswjents lo attend a ntlmber of school events such as concert5 and plays. Charity plays a huge part in both the SenKY and Preparatory Schools. The charitie5 chosen by the Student coun¢ils on each sile this year were Sh1￿ Aid. St Basils (supporting young people who are homeless or al risk of h¢Jmebssness) and TAWS (the Active Well Being Society) and the Erdington Fo￿bank. During the year the School raised over £9,00012020", £3,491.251- During the summer temi haw-temi break. the whde Schoo] took part in the second, annual 'Highclare Hike, which, this year, saw part￿1pantS - students. staff and families walking, njnning. cycling, swimming as many miles as possible lo 'link' Birmingham Inext year's host to the Commonwealth Games) to Gksgow {the most recent UK host crty) and then to Hamdton. Ontario. Canada, the host of the very first commonweath games in 1932. This year has also seen the School donating grfls of food for the Trussell Twst foodbank operated in Erdington. The Governots are extremely grateful lo the pupils and their parents for these considerable fund raising efforfs, which are even more necessary during the pandemic to assist those within the ccynmunity who are struggling to co￿. The compelbtions in art and ¢￿alIVe vnibng twk PL￿. The art completion, in thè spring. attracted 204 entries on the theme of 'a line is a dot that went for a w81k'. whilst the Creative wr(ting competition focussed on ￿rtIng a poem on any memberofthe black, Asian, minorrty ethn￿ community and attracted over 200 entries. Unfortunately. the Cowd-19 restrKlions prevented us from holding a live presenlalion these events. Instead, we created visual presentations and made them availab￿ for participants to view on the School's websrte. Neighbouring primary schools and local sportiThJ teams enjoy Ihe use of the School's re¢reational f&ilrties at both the Senior S¢hool and Highclare Sports Fiekl and the Church next door are able to use the car park every weekend when Ihey are open. wrthin current restrictions and able lo prowde services lo the community. A local ballet sch￿1 conts.nues lo use the SenKJr School hall on a weekly basis. The Trustees have considered their Tesponse to the change lo the law, as embodied in the Charities Act 2011. requiring that Publ￿ benefft can no longer be p￿sUMed btrt must be demonstrated. In addrtion, they have had due regard for Charty Commission guidance on the subject. The Governors consider that these wider invo5vernenls and contributions lo the communrty ¢1oarly demonstrate the greater public benefit requifernents are being met. Page 4 Hlgh¢lare School Strategic Report (continued) S¢holatshlp Awards Academic scholarships are awarded to pupils who perfom particularly well in the examinations and have already demonstrated a considerable degree of all round commrtment lo their school. Additional specialist schoLgrships are also awarded for those puptls showing a particular lalenl in music. sport or art. A limited number of bursaries are offered based on financial needs. The Highclare School Govemors. Prize is 8 means-te5ted bursary available annualty if all the n￿$Sary requirements are met to cover up lo 100% of sch￿1 fees for one pupil upon entering Senior School in U3 (Year 7)- The School currenuy has awarded this bursary to fNe pupils.. ranging from current U3 (Year 71 lo U5 Iyear 11). Financial Review Fee income has ii¢re8sed this year to £5.628.888 from 2020: £5.512.028. The school has continued lo make savings in overheads and costs where possible The continued and ne￿sSary annual rolling replacement programme of IT facilities has had to continue and has been especially necessary due lo the CoMd-19 reStr￿tIonS and changes. The programme this year included the replxement of interactwe smart boards. computers, iPads, servers and Wi-Fi provision to ensure that bolh pupiLs and staff continue to benefrt from enhanced interactive leaching. The department supported all stsff and students with this yearfs reqtlirement to work from home and installed an additional seNer lo ensure the infrastructure was in place to facilitate the need for remote tea¢hing and learning during l¢xkdown as a resuli of Covhl-19. There have been many oth& s1gnffj￿afiI enhancements this yearwhich included". Extensive impn)vement ol the p￿PreparatOry classn>oms and facllities at both Highclare Preparatory School.. St Paul s and Woodfield. Upgrade of Highclare Sports Pavilion Extensive extemal decoration at Highclare Preparatory School." Woodfield. Res¢r•es Policy It is the policy of the Charty to maintain separate ¥eserve funds for specffj￿ purposes. The changes in the needs to make the provishjn of the edUcat￿nal facilit￿S fft for delivery under the revised Covid-19 requirements and ieslrictKJns has brought this into ever more necessary frKus. The Chariiy aims lo relain al a minimum consolklated unrestricted reserves equivalent to the carying value of the tangible fixed assets. which amount to £4.887.593 as at 31 Au9USt 2021 12020.. £4,697,544) as a contingency in order lo maintain the stsbk operation of the School in the case of future unforeseen events., the most recent financHI years being a very goc¢J indicator of how appropriate that policy is to the future sustainability and stability of the School. 11 remain5 the objectNe of the Board of Governors for the rese￿e$ lo continue lo increase until this minimum target is met and through cafeftjl managemenl and control of operational costs through what has b*n a turbulent peri￿1 caused by Covid-19 the unreslri¢ted reserves have been maintained at the year*nd. Consolidated unrest￿ted reserves at 31 August 2021 amounted to £4.686,749 {2020.' £4,649,660). Risk Management The major risks. lo which the Charity is exposed. as identif*d by the Govemors, have been reviewed and syslerns have been established to miligale those risks. A risk register has been established and is updated throughout the year. 11 has been enhanced and extended to include the new.requiremenls and considerations under the CovKI-19 pandem￿. P•3e5. Highclare School Strategic Report (continued) Friends of Highclare School I-FOHS'I The FOHS plays a very important part in the Schwl. organising event5 for the thi￿ren and parents and raising funds for the School. They are a commrtted and ded￿ated group of pa￿nIS who want lo provide the best they can for the Sch(M)l. They also kindly operate a se￿nd-hand School unrtomi shop that is well used by the parent t*xly_ Chlld Protectlon Code of Practicè It is the policy of Highclare School lo provide a safe and se¢ure environment in which children can thrive nd develop and where all aspects ofth￿.rweffaWe wll be prote¢ted. A Chikl Prole¢tK)n Code of Practice has been adopted and is updated on a regular basis. This includes additional and ne￿SSary considerations for physical as well as psychological heatth, safety and well-being to ensure that all are pupils are protected. as far as is practically possible. from the impact of the Covid-19 parKlemic. Plans for Future Periods The Govemors. plan is to continue to improve the educatKJnal and aca-dem￿ achievements of pupils by the provision of enhanced facilrties. Constant monitoring of perfomiance, and the potentially changing landscape of ru￿5 and ￿qUirements lo deal wth the Cowd-19 pandemic. means th* the School's medium to long tem strategy is under review and any changes that are necessary will be considered and impkniented. The use of Highclare Sports Field continues to evdve and expand and has been a significant conlribuling factor to the Icemendous sporting success that both the Pceparalory and Senior School have seen over the past year. Highclare Sports Fiekl is also availab￿ to the local communrty and has s&n a Considerab￿ increase in usage by a number of local Sch￿15 and clubs during the year and this increase has continued into the folk)wing academic year. The School continues its major sGhwl wide capital investment programme, which includes further developments in the landscaping. adminislration centre and pre-prep provision al Highclare Woodfield.. a repL8cemenl of the existing food preparation and serving facilities. and boys and gids cloakroom and changing at High¢Jare St Paul's.. and a ￿furbI$hrnent of the sclence laboratories together with enhancements to the sports facilities al the Senior School. Additionally, the School's schedule of rolling maintenance in respect of areas su¢h as roofing. rainwater pipes, fire security and the healing systems continues across all three lOcat￿n5. to ensure a high qualily-leaming environment 15 maintained for the pupils. Approved by the Board on 15 December 2021 and *gr*d on its bèhaw by'.- J R Brain Governor Page 6 Highclare School Governors, Report The Govemofs 5ubmrf( their report and Ihe audited consolidated financial ststemenls of the Group for the year ended 31 August 2021. The G¢)vemors have adopled the provisions of the Ststemenl of Rec(xnmended Practice (SORPI 'A¢counting and Rep￿"n9 by Chanties. IFRS 102) in preparing the Annual Report and Financial stalemenls. Structure. Govemance and IAanag8ment The Company is limited by guarantee and is registered as a charitab￿ educational trusl. There is no share capital. Its MemorandLm and Arttles of Asxtiatson govem the Company. Govemors, responsibilities The Govefnors (who are also directors of Highclare SchLx)I for the purposes of c￿1panY Lawl are responsib￿ for preparing the Annual Report lirtluding the Strategic Report) and the Financial Statements in accordance with applKable law and United Kingdryn Generally Accepted Accounting Practice. Company Law requires the Govemor5 to prepare financial stalements lor each financial year, which give a true and fair view of the slate of affairs of the Charitable Company and the Group and of the income and expenditure of the Group and Charitable Company for that period. In preparing those financial slatemenls. Ihe Governors ale required to.. select surtable accounting poI￿leS and apply them consistently.. observe the methods and pri￿1p￿s in th8 Charities SORP (FRS 102)", make judgements and estimates that are reasonable and prudent" stale whethef appl￿ble UK Accounting Standards have teen followed. subject lo any departures disclosed and explained in the financial statements". prepare the financial statements on the going concem basis unless it is inappropriate to assume that the Group or Charrtable ¢ompany wll continue In Operat￿n. The Govemors are responsible for keeping adequate accounting reoyds that dtsclose with reasonable accuracy at any time the financial position of the Gcoup and Charrtable Company and enable Ihern lo ensure thal the financial slalement5 Gomply with Companies Act 2006. They are also responsible for safeguarding the assets of the Group and Charitable Company and hence for taking reasonable steps for the prevenlK)n and detection of fraud and other iffegularrtie5. The Governors are also respOns￿[e for en5urir*J that the assets are prwdy appl￿ in accordance with Charty The Govemots who were in offtce on the date of approval ofthese financial slaternents have confirmed, as far as they are aware, that there is no ￿leVant audit inforniatKsn of which the Group and Charitable Company'5 audrtor is unaware. Each of the Govemors have confirmed that they have taken all steps that they ought lo have taken as Govemors in order to make Ihernselves aware of any relevant audil infomialion and to eslablish that rt has teen communicated to the auditor. The Trustees are responsib￿ for the maintenance and inlegnty of the corporate and financial infomialion included on the Charitable Crynpany's websr(e_ Legislation in the Unrted JQ"ngdom goveming the preparat￿Th and dissemination of financial ststements may drffer from kgislation in other jurisdictions. Page 7 Highclare School Governors, Report (continued Organisational Management The Directors of the Company are also Charity Trustees for the purposes of Charity Law and under the Comp8ny's A￿'¢le$ are known as Governors. The Govemors are all members ofthe Company setwing in a non-executive capacty and receNe no emoluments. The day-to-day management of the School is deleg*ed to the Head and his Senior Leadership Team. The GoverrKJrs served in the year ended 31 August 2021 were: J A Barrett (President) Mrs L E Flowrth Ichairman) J R Brain (Treasurer) Mrs P A Mayall A l Hazel Mrs S D Wa150n A B Davison Professor F Eperiesi J A Barrett, S D Watson and Professor F Eperiesi reli￿ by rotst￿n at the forthcoming Annual General Meeting and. being elwJible" offer themselves for Te-ekc￿n al the Annual General Meeting. Auditors Malcolm Piper & Company Limited, as audittys. wll be prcwsed to the Govemors for re-election at the Annual General Meeting. Approved by the Board on 15th December 2021 and suned on its beha￿ by.'- J R Brain Governor Page 8 Independent Auditof s Report to the Governors of Highclare School (A Company Limited By Guarantee) (Registration number 1074596) Year Ended 31 August 2021 Oplnlon We have audited thefinancial slBt8ments of Hbjhdare scho￿ {th8'parent chaiitatAe comparty'l and its W￿￿13￿¢$ {Ihe'Group'l forthe year ended 31 March 2021 %thich ¢(xhpn"se the Consolidated Statement of Financial Activities, Consdidaleij Balance Sheet. Company Balance Sheet. Cons￿[dated Cash Flow Statement and notes to the finarrial statements. including significant accounting policjes. The financial reportir#J framework Ihat has been applied in their preparation is ap￿*Cab￿ law and United Kin9dom AcrA)unb"rg Standards, includin9 Financial R¢porting Standard 102 The Finartial Rewtiry SIarrt#*￿ apphcable in the UK and RepublK of Ifeland (Uniled Kingdorn Generally Accepted Acc¢yJnting Prxticel. In tsur Opin￿ thè finarrial ststèmènts.. gwe a true and fair view of the slate of the Group's and pa￿nt tharilable cornpanls affairs as at 31 August 2021, and of Ihe Group's irKoming Trsourt¢s applicatiw of resources. indudiThJ its irwme arrtl eXp￿dIture. for the year Ihen ended: have been properly prepared in wxOrda￿e wih United KTh•kni Generalty Accepted A(yx)urling l>ra¢bce.' and have been prèpared in ac¢oftlat￿& knith th& winnents ofthè Companies Act 2￿. Basis for opini4XI We conducted our audtt in accordance vhth Intemational Standard5 on Audsling IUKI {ISAs IUKII and applicab law. Our respon%bi1￿eS under those standard5 are furlher descAibed in the Auditorfs respon￿l￿11beS for the 8udit ofthe financial statements section of tyjr report. We a￿ independent ofthe Group and Pa￿nI charitable company in accOrdar￿ the eihical ￿quirerreTrts that are relevanl to our audit of Ihe finanryal statsments in the UK. including the FRC'S Ethical Stsndard. and have fulfilled other ethical reSp￿ls1￿11tie9 in accor¢Jance wth these requirements. We bdieve that the audit eMdence have obtsined is sufficient and app¥opriale to provide a basis for ouropnw. Concluslons relatlng to golng concern In audiliTrJ the fina￿181 statements. have conduded that ihe Govemor5' use of the goi￿ concern basis of a¢¢ounting in Ihe prepawation of ￿ fina￿la1 state1r￿nts is appropn*¢. Based on the work TrAE have perf1)rm￿. V￿ have rY)t KJentrffie(l any fflaterial Ur￿rtalntie5 relating to events or condikn.ons that. indiwdually orcollecbvety. maycastsyjnrf￿ doubt on the Group's Orpa￿ntcharitable company's abilty to wnb'nue as a gclng c￿Cern for a KwIC￿ ofat month5 from knfien th8 finan￿81 statements ¥e authorised for issue. Our resporribilibes and the resKhJnwbditw of the GI)Veff￿ respect to gjwig rmrn are described ￿ the relavant sections of trms ￿pOrt. Other Infomiatoon The other infoThnaDon CoMp￿S the informal*￿ inththd in the Govemorn, amual report, other than the financial statèmènts and our auditorf$ rekYJrt tt*r80n. The Govemors are resFM)nsble the olher infornation contsined thin the annual report. Our cpinion on the finanoa statements not covèr Ihe other information and. 8xeept to the extent otherwise expl￿tlY stated in our repori. do notexP￿sS any fom ofassufance co￿l￿s1on thereon. Our responsibility is to read the other infonnatson and. in doiTrJ so, ¢￿SIder ¥￿ther the other infonnation is materially incongstent vthh thè financial ststèmants or our kno%%ledgè obtained in Ihe of the audit ¢y otherwse appears to be materialty misstated. If Kdentify such material inconsistencies or apparent material misststefflents. we are required to detennine ￿ether this gtves rtse to a material misstatement in the financial ststements Ihefflselves. If. based on the VAxk we have performed. we condude that there is a material misstatement ofthis other inf(mtK￿. are requwed to rewjrt that fa¢L W& have notI￿r￿j to rewKI in Ihis wwd. [Gonlinued...J Page 9 Independent Auditor's Report to the Governors of Highclare School (A Company Limited By Guarantee) (Registration number 1074596) (continued) Year Ended 31 August 2021 Opini¢)ns on other nwtters pr•s¢r1￿￿ by ¢h• Qynpani•s A¢t 2006 In our opinion. based on the %K)rk undertaken in Ihe c(wrse of the aLMYt. the infom)ation given in the crt)vem￿. Report {incO￿kn.ng Ihe strateg￿ Repxt and the Govemors, Report) forthe fjnancial yearforwFMch the finanoal staierTwls are prepared is omgslent ￿1h th8financial Stat￿ents. artd the strateg￿ Report and the Go¥emors' Report have been Fffepared in accordance *ith appliCa￿e legal requirements. Matters on which wé ar• r•quir•d to rèp￿1 by•xeeption In the IKJht of our kno%%ledge and undetstsnd1￿ of Ihe Gmup and parent charitsble Crynpany and its environment obtsined in the course of the audit. we have not identified malerial mt55tstements in the Str8legtc Report and the Govemots, Report. We have nolhing to report Mi rtspe¢t ofthe matters in thtion to the Companies A¢t 2006 require$ us to repori to you if. in our(yirMon: adequate accounting records havè not been kept by Ihe parent chaiitable company. or reiums adequate for our audit have not been received from branches not visited by us: or the pa￿nt ch￿table comwls fThnci* statements are agreement wlh th8 acLtyJnting records and retums- or certain disclosu￿S ofdireclors. renwneration sFeiW by Iw a￿ not m•Je: or have not recetved all the inlomiabon aThJ eyptanatmmswe wuire forour autht. R￿PonSIbIlItIeS of G0￿mOr8 As 8xplain8d more fully in the Govemc*s' resrx)n*lxlthS Ststernent set out on page 8 the Govemors14tho are also the DI￿tOrS of the charitable company for the wrposes of Company Law} are resp￿&ble for the preparal'on of the finanaal 51atements and for teng sabsfied that they give a true and fair Mew, arKI for such intemal cDntrd as the Govemors detemine is r*cessary to enabfe the Fweparth"on offinancial ststements that are freè from material misstatement. %thether due to frathj or erTOr. In preparirKJ the finartial statem￿ts. the Governors are respon&ble for assessirvJ Ihe Group's and parent ¢haritatAe company's ability to as a goiry C0￿M, d￿sir￿j. as a￿l¢able. matter5 relaled to going orvrn arKI usng the going corwn bags gfarxountiry Unless the G¢)vemors eilher inlerKI to IiqyKlats the Group or the Pa￿nt charitable company or to cease q)erab"ons, or have no realists"c attemative but to do so. Audltorfs responslbllltles for the audit of the financlal sLitements We have ￿en appointed auditor underthe Comparies Act 2W6 and report ￿ ￿nce wlh this Act Our ot4eciives are to obtsin reasonable assur3￿& about*knethertr￿ finarKial statèm¢nts a$ a whole a￿ free frgm malerial misstatemenL vthether t1ue to fraud or error. and to issue an auditorfs report that indud&s our opinion. Reastsnable assurance is a h#Jh bevel of assur8r￿￿. but is not 8 guarantee that an audit conducted in accordanc ISAS IUKI will a￿vayS detéct a material misststement it ￿Sts. Misstatements ¢an ariss from fraud or error and are considered material rf. individualty or in the aggwate.theycouk1 reaSona￿Y beexpected to influence the ecorb)mic de￿S￿$ of usws laken on the oflhese statements. [continued...I Page 10 Independent Auditorfs Report to the Governors of Highclare School {A Company Limited By Guarantee) (Registration number 1074596) (Continued) Year Ended 31 August 2021 Irregularities, including fraud. a￿ instsnces of I￿￿cOmPli3r￿e with laws and regulations. We desvJn procedures in line our reSpOn￿bIlItieS. indurknro fraud as detailed bek)w.' We obtsined an undefStandiryJ of the ￿981 and regulatory ffameths that a￿ appl￿ble to Highclare school.llhe Group and Companfl and detennined that the most svJnificant a￿ those that relate to the UK reportir¥J framèwork under %thich the Company prePa￿S its acc(MJnts and rèwrt5 its rèsults and the relevant UK tax compliance fegulab"ons. In athJrth)n. conduded that there a￿ certain s￿nffiCant laws and regulations that may have an effect on the deterrnination of Ihe amounts and disclosure5 in Ihe financial statemenls and those laws and reguLHtions indude relatiro lo heath and safety. ern￿oyee mattgrs. 8nvirMmgntal. and briLwry a￿1 corwplion ￿¥¢fICe$. Having due regard to ISA 240 (Redraft￿1. AUdI￿S Relatin9 to Fraud in an Auditof Finaraal Statements. we planned and deggned our audit procedu￿$ to tjndertake such enquiry and tethg we deemed necessary lo understsnd howthe Company is complwng thoseframeworks. We mad* enquiries of the directors. s•nior managèmènt arwj those reskx)nsi￿e for legal aThJ complianca pmcedu￿s within the -Grc¥Jp and Companf and corycthrated our wuiries by refe￿nce to other docum8ntary evidenc£. wlereavailatrAe. orothercomrAimenlaryorcompensating evidenrA and with o￿T Cofrespondence received and noled that Ihere was no conlrnd￿t0ry e￿dertt: In designing the scope and deplh of our work to assess the likely rmpact on the financial statements of fravd and other irreguLgrities. we calojlate a materiality level Ithich is a percentage based upon lurnover, profitsbility and gross balance sheet assets. This cakxjlation pr(Kluces a figure against vknich financial statemenl errofs and irwularities are Compa￿ and indutes a kvel at which, in tsjr opinion aThJ juthJement, Ihis would cause Irans**)ns a￿1 balances *ilhin ihe finarKial stateffents to be Mi￿eading or matèrially incorr8cL We also assessed ihe SLtscepb"bAty of the cons0￿dated Financk?I Statements of the 'Grovp 8Th1 compan￿ to fflaterial rnisstaiement vsng qualitalive as *AEfi as quantitative factors. includiryJ how fraud rn19hl ¢Kcur. arKI desyned our audit tesb'ng and e￿VIneS in SLKh a way so as lo enable us to identify the fraud risks across various parts of the business. In addthn. uts"lised intemal and extemal infom)atic to r*rtwm a tr¥ud risk assesynent as part ofow awjil teslwig procedLYes. We C￿sidered the risk of fraud through man￿ement overwkje of controL8 and syslems and, in response, incorporated tests"NJ of large oi unusual manual Joumal entries into our audit approach. Wve also cortshYe￿d the possibility of fraudulent or comjpt payments made throu￿ third parb.es and conducted Ve. tsjr pr(tsdures involved joum81 èntry tèsting, ￿Tth focus on 1￿malS deffir￿d risk criteria based on our urKle￿tsnd1twJ of the business aThJ erk]uiries of "Group and C￿an￿ marwement: and If any instances of non-Com￿lance with lav4S and wuLalions 7Aere #1enbfied. *Jdit team F4rfom*d stJffick?nt and appropriate audit woctdures. Becatjse of the inherent limttslion$ of an awlit. there is a riskth*￿ vrill not(letect all irregulariiies. 1r￿1￿￿•ng trose leading toa rnaterial misstatement in the financial statements or non-compliance vitth régulation. This risk tncreases the mor& that ￿nk￿lanCe %%ith a law or regulation is r￿0ved from the events aThJ transaCt￿￿S rellected In tt financial statements, as we %%ill be less fikdy to tecome awa￿ of instarKes of nonty. in aceordar*e Chapter 3 of Part 16 of the Companies Act 2006. Our audit wyk has been undertaken so that we mpJht state to the Group and charitable company $ members those fflatters we are required Io state lo them in an audilorfs report and for no 0th8r purpose. To the fullest extent pemiitted by law, do not accept or assLth8 r8swns¢bility to anyone other than the Group and charitable company and the charitsble company's membetsas a bLMly, for our audit wort, this rekwrL ¢rfor the opinions Peter Whltehead BA FCA Senlor Siaiutory Auditor For and on behalf of Mal¢olm Plper & Comp*)y Llmlted Kin95north House l Blenhelm Way Birniingham B44 8LS Date(1.. 15 Oecember2021 Page 12 Highclare School Consolidated Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 August 2021 Unrtstricted Restricted funds funds 2021 2021 Total fvnd$ 2021 Total funds 2020 Income from: Charitable a¢tivities School fee5 T￿l¥able Registration fees Schcd ￿lm￿eS & trips 5.628.888 11,787 5.628,888 11,787 5.512,028 9,674 123.104 Investments Rents and letting$ 8.250 8.250 8,250 Other Other incom8 174.326 300 174.626 409,268 Total income 5.823,251 3C 5.823.551 6,C62.324 Resources expended Expenditure on: Charitable activities School OFeraling eosls Se1K￿l &tMlies and trips Governance costs School finance costs {5.774.33n 135) 15,774.3721 15,818.132) 1123,104) 113,2901 117,3111 {13,290) {12.859) 113.2901 112.8591 Total expenditure 10 (5.800.486) (35) 15.800.521) 15,971.8371 N8t Income 22.765 265 23.030 ).487 Transfers between funds 20 14.324 (14.3241 Net movement in funds for year 37.089 (14.059) 23.030 .487 Total funds brought forward at I September 2020 4.649,e60 14,753 4.664N13 4,573.926 Total funds Carried lorward al 31 August 2021 4.686.749 694 4,687,443 4.664,413 Al ir￿rne arhj expendi(ure is derNe(I frcyn c￿l￿1￿j operatKJns. The cOnsdidat￿ statement of f￿anCIal include5 all gain5 and k)sses re(LyJnised during the year. T1￿ notes on pages 17 to 31 f(fft ￿ integral part of these knnC￿I statements. Page 13 Highclare School Consolidated Balance Sheet at 31 August 2021 (Registration number 1074596 Notg 2021 2020 Fixed assets Intangible assets Tangible assets 11 12 11,530 4.887,593 45,747 4,697,544 4,899,123 4,743.291 Current assets Debtors Cash at bar* and in haTrJ 14 84,241 2,270,174 187,837 2,2￿,160 2.354,415 2.483,997 credito￿.. Amounts falling due within year 15 11,839.625> {1,750,5071 Net current assets 514,790 733,490 Totsl asssts less current liabilities 5.413,913 5.476,781 Credito￿." Amounts foll￿￿ due more one ￿ar 16 1726.470) 1812,3681 Total net •ssets 4,687,443 4.664,413 Charity Funds Restricted Funds 20 694 14.753 Unrestricted Funds General unrestricted furKIs Revalualvjn reserves 20 20 4.335,273 351,476 4,298,184 351.476 4,687.443 4,664.413 These financial statements were approved and authorised for issue by the Board on 15 December 2021 and signed on its behaK by.. Mrs L E Fbwrth J R Brain The notes on pages 17 tr) 31 fcfft an inlegral wt ca financHI slatemenls Paje 14 Highclare School Balance Sheet at 31 August 20211Registration number 1074596) Note 2021 2020 Flxed assets Intangible assets Taroible assets Investment 11 12 13 11,530 2.853,488 45,747 2,619.948 950.000 3.815.018 3,615.695 Current •ssets Debtor5 Cash al bank aThJ in harKI 14 2,289.592 2,270.116 2,393,188 2.2￿,036 4,559,708 4,689,224 Creditots.. Amounts falling due vrithin (￿e year 15 11.839,6251 11.750,507) Net current assets 1720,083 2.938,717 Total assets less Current liabilities 6.535.101 6,554,412 Creditors.. Amoun15 falling due after more Ihan orE year 16 1726A70 1812,3681 Total net assets SW8.631 5,742,044 Charity Funds Restricted Funds 20 -14.753 Unrestricted Funds General unre51ri¢led fund5 Revaluatp)n reserves 5.723.907 5.643.261 84,030 5.808.631 5,742,044 These financ￿1 statementswere approved and authon.sed forissue by the Board on 15th December2021 and sign on i($ behalf by". Mrs L E Flowbth Govemor J R Brain The nths on pages 17 to 31 frym an integral part cl financial statements P•3e 15 HIghCla￿ School Consolidated Cash Flow Statement for the Year Ended 31 August 2021 2020 Net cash inflow from operating activities 481.472 547,104 Cash flow from investing adivities Payments to acquire tangible ftxed assets Receipts from sale of tangible fixed as5e15 Rents r￿e1Ve￿ from investment properties {417.5811 630 1438,7131 420 8,250 Net cash flow from Investing activities 1408.6791 1430,0431 Cash flow from financing activities Repayment of loans Loan inleiesl pavj 185,8981 112.8591 (85,8981 117,311} Net ¢ash flow Irom financlng actlvltles 198.757) {103.209) Net increaselldecreasel in cash and cash equivalents (25,986) 13.852 Cash and ¢a$h equivalents at 1 Septemb•r 2020 2.296,160 2.282,308 Cash and cash equivalents at 31 August 2021 1270.174 2.2￿.160 Cash and cash equivalents consist of: Cash al bank and in hand 2.270.174 2.￿,160 Paye 16 Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2021 Icontinued 1. A¢¢ounting Policies General Inforniation and Basis of Ac¢ountlng The Charity is a Company Limile(J by Guarantee in the United Kingdom. The members of the company are the Trustees named on page 1. In the event of the Charrty being wound up. the liability in respect of the guarantee is limited to £10 per memberofthe Charty. The address of the registered office is given in the Charty infomiation on page 1 of the financial slalements. The n*ure of the Charity's operations and principal activities are detsiled in the StralegI¢ Report on page 2. The c(￿￿panY has Liken ajvantage of section 62 ofthe Compan*s Act 2006 and deleted the word "Limited. from rts narne. The Chartyconstitutes a Public Benefrt Entity as defined by FRS 102. The financial statements have been p￿pared in ac¢ordance wrth Accounting and Reporting by Chari(ies." Statement of Re￿mmended Praciice {SORP) applThble lo charrties preparing their accounts in a¢¢ordan¢e with Financial Reporting Standards applicable in the UK and Republic of Ireland issued in October 2019, the Financi81 Re￿rtIng Standards applicable in the UK and Republic of Ireland IFRS 102}. the Charrties Act 2011. the Companies Act 20C6 and UK Generalty Accepted Practice. The consolidated financial statements have been prepared under the historical cost accounting convention, other than in the case of certain freehokl properties and investment properties, which are slated at valualmjn. The u)nsolidated financial statements are prepared in sterling, which is the functional CUr￿ncY of the Charity and rounded to the nearest pound. There are no disconlinued Lyrations. The signrficanl accounting policres applEd in the prepar*ion of these financral statements for the Group and Charrtable Company 1'Chari￿) are set out below. These policie5 have been consislenlly applied to all years presented unless otherwise stated. Basis of Consolidation The Group financial 5talemenls consolKlate the financial statements of the company and ils subsidiary undertakings. Highclare Investments Lwnrted (company registered number 02963934) and HighcLare Limrted (company registered number 02963938). Intra-group Ifansaclions and profits are eliminated on Consolidat￿n. No separate statement of financial a¢tivrties is presented for the Company as permitted by section 408 of the Companies Ad 2006_ The Company had total income from charrtable activities of £5,640,675 12020." £5.644.8061. income from investments of £8.250 12020". £8,250) an¢J other incorne of £174,326 (2020.. £409.268) wh￿h includes £97,505 12020.'£276.634) received from HMRC in respect of staff furloughed under the Govemment's Job Retention Scheme and a further £26.532 12020". £19.6001 received from Bim)ingham Cty Council in respect of other Covid-19 funding inrf(ialives see Note 4. Tolal expenditure cn charrtabbe aclivrtie5 was £5,774,372 12020".£5.941,2361 anil govemance and finance costs of £26.149 (2020.. £30,601). The net income for the year amounted to £22.730 (2020. £90.487). Funds UnreslTiCted funds are fuTrJs wh￿h are available for use at the discretKsn of the Trustees in furtherance of the general objectives of the Charty and wh￿h have not been designated for other purposes. RestrKted funds are funds whtch are lo be used in accordance wth specffic ￿$trIctIonS imposed by dor￿TS or which have been raised by the Chanty for particular pu¥pose5. The ¢051 of raising and administering such funds are charged against the specific fund. The aim arK1 use of each restricled funds is set out in the notes to the financial sL*emenis. Income Recognition All income is included in the Statement of Financial Activities when the Charity is legally entilw to the income after any performance condrf(Ion5 have been met." the am(xJnt can be quanlrfied with reasonable accuracy: and il is prQ￿able that the income will be received. P￿e 17 Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2021 Icontinued} Accounting Policies (continued) Donations For donations to be re¢cgnised the Charty wll have been nclrfied of the amounts and settlement dale in wrrting_ If there are condrtions attached to the donation, and this requires a level of perfomance before entitlement can be obtained, then income 15 ¢jefer￿ until Ihose ¢ondilions are fully mel orthe fU￿lIment of those conditions is wrthin the control of the Charity and il is probable that they will be fu￿11￿￿. Donations reCeNab￿ for the general purposes of the school are credited to unrestricted funds. Donations subject to speGrfic wishes of the d￿or$ are credrted to relevant restricted fvJnd$. Charitable In¢ome Fees recewable and charges for services ore accounted for in the pertod in vthich the sermce is provided. Fees receivable are stated after deducting allowance5, scholarships and other remissions allowed by the schcol. Investment Income Investment income is eamed through hoklrng assets for investment PUTposes such as property. 11 includes Inte￿$t eamed and rent. Where rt is not practicable to rtlentify investment management costs incurred within a scheme wrth reasonable &cutacy the investment inccxne ts reported net ol these costs. It is included when the amount can be Measu￿ reliably. Interest and rental income are recognised as the charitys right to receive payment is established. Expenditure Recognition All expenditure is accounted for on an accruals basis and ha5 been clas5rfied under headin9$ that aggregate all costs related to the category. Expendrture is rec(8nised where Ihere is a legal or constructive obligation lo make payinenls to third parties.. it is probabk that Ihe settlement will be required.. and the amount of the obligation can be measured reliably. All costs are incurred in the furtherance of the charitable actIv￿es. Costs of Raising Funds Costs of generating funds are those costs i￿Urred in attr¥ting voluntary income and those incurred in trading aclivrtie5 that raise funds. Charitsble Activities Charitable activities include experKlrture on provNJing educat¥)n and include bolh direct wsts and support costs relatsng to the activity. Support Costs Support costs are those that assist the WO￿ of the Charty but do not directly represent charitable tivilies and include central functions and govemance costs. They are incurred directly in support of expenditure on the objectives of the Charity. Where 5UPPOrt costs cannot be dire¢lty attribuied lo part￿ular headings they have been allocated lo cost of ratsin9 funds and expenditure on charitab activities on a ba515 consistent ￿th the use of reswrces e.g. staff costs by the time spent and other costs by their usage. Governance Costs Govemance costs comprise cos¢$ of running the Chanty. ￿lUdIng Strateg￿ planning for its future devel¢)pment. external audrt, any legal admce for the Govemors and all the costs of complying with constitutional and statutory requirements. such as the c05t of Boaid and Committee meetings and of preparing Stat￿0ry a￿untS and satisfying publK accounlabilty. Leases Rentsls paKI under operating leases are charged to inccthe in the period lo wh￿h they ￿late. P•3e18 Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2021 (continued) Accounting Policies (continued) Intangible Assets - Pur¢hased Goodwill Goodwill arising on the excess of the pu￿haSe price compared wrth the fair value of net assets acquired is capita1ised and amortised on slraKJht line ba515 over rts 115eful lrfe. The period Chosen for writing off goodwill is 20 years as in the opinion of the Govern￿5 this represents the period over which goodwill is effectbve. This has been reviewed and reassessed by the Governors based upon that continuing value thatthe original acquisitKJn contributed lo the Group and this period of 20 years remains entirely appfopriate. Provision is made for any impairment. Tangible Fixed Assets Tangible fixed assets acquired arp capitalised in the baLance sheet at their original cost or valuation. Items costing less than £750 are written off as an expense in the period in which they are acquired. Depre¢i*ion is provided on all tangible fLxed assets other than freehokj land at rates calculated to write each asset down to lis estimated resKlual value evenly over r(s expected useful life, as follows."- Freehold propertres Leasehold improvemenls Fixtures. fittings and equipment Compulef equipment (leaching) Motor vehides Investment properties up lo 50 Yea￿ 5traighl line up lo 50 years slraighl line betrleen 2 and 5 years slraighl line maximum of 4 years straight line maximum of 5 years straight line nol dep¥ecialed Assets under Construction Costs incurred in fixed assets construdion are caprtalis&J as they are incu￿ed. The lolal Cost of the project will be assessed against rts realisable value Ltpon cornplelion ol the project and it will then be transferred to the appropriate asset category. No depreciation is charged during the prqect construction. Where a project 15 aborted. the costs are immediately wrilien off to the Statement of Financial Activf(ie$ fsoFA"I. Investment Properties Investmenl properties are ￿Unted for in accordance 7Mth FRS 11f2, whth prowdes that these should not be subject lo period￿ depreciation Charges (unless hekl on lease). bul should be shown at fair value. Thi5 is conliary lo the Companies Act 2006, which slates that. subject lo any provision for depreciation or diminution in value. fixed assets are normally to be slated at purchase price or production cost. Current cost accounting or the ￿ValuatiOn of specrfic assets to fair value, as detemiined at the dale of their last valualion, is also pemiilted_ The treatment of investment propertw under the Companies Act doe5 not give a true and fair view, as these assets are not held for consumption but as investments, the disposal ol whtch would not materially affect the wrations of the Group. In such a case. il is the current value of these investments. and changes in that Current value. wh￿h are of prime importance. Consequently. for the proper appreciats'on of the finanual posrtion. the accounting Ireatmenl required by FRS 102 is considered approprrale for inve51menl prOpe￿e5. Oelails of the current value armj histortsl cosl informalion for investment properties are given in the Tangible Fixed Asset note. Investments Fixed asset investments in subshlkaries are measured at historKal cost ￿$$ provision for any pemianent diminutk)n in value. Debtors and Credito￿ receivable I payable within one yoar Deblors and creditors with no slated interest rale and receivable or payable within one year are reeorded at tran5actK)n price. Any losses arising from impainnenl are reccgnised in the SOFA. Page 19 Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2021 (continued) Accounting Policies (continued) Loans and borrowings Loans and borrowngs are initially recognised at the Iransadion price including transaction costs. Subsequently, they are measured at amortised Cost using the effective interest rate melhcml, less impaiment. If an arrangement constilutes a finance transa¢l¥)n. it 1$ measured a present value. Impaiment Assets n¢A measured al fair value are ￿￿eWed for indications Ihat the asset may be impaired al each balance sheet date. If such Ind￿atIOn exists, Ihe recoverable amount ofthe asset, orlhe asset's cash generating unrt, is estimated and compared to the carrwng value. Where the carrying amount exceeds rts recoverable amount. an impaiment loss is recogni%ed in the SOFA. Provi5ion5 Ptovision5 are recco3nised when the Charity has an obligation * the balance sheet date because of a past event,. (( is probable th* an OLrtFlcw of eCOn￿n￿ beneffts will be required in settlement." and the amount can be reliably estimated. Employee Benefrts When employee5 have rendered serV￿e to the Charty, $hort-temi employee benefits to which the employees a￿ entitÈed are rewnised atthe undiscounted aM￿an1 expected lo be paid in exchange for that serv￿. The Charrty operates a defined cffitribulion pension plan for the benefit of its employees. Contnbulions are expensed lo the SOFA as they become payable in accordance with the rules of the scheme. Taxation The Company is registered 8$ a Charitable Edu¢*wal Tw$t and, under the provisions of Section 505, Income and Corpor*ion Taxes A¢t 1988. is 8xempt from l1aknlit￿S to taxation on rt5 charitable activrties. No corporation tax IHbilrty arises on the resuhs ofthe subsidiary undertaking5 for the year. Govemment Grants The company receives govemmenl grants tn resm of the HM Job Relent￿n Scheme and other l¢xal government support inrtiatives. Income frcxn govemment and other grants are recognised at fairvalue when the ¢rxnpany has entitlementafter any performance condrtions are met. il is probable that the income VAII be receNed and the amount can be measured reliably. If entit￿ment is mt met, these amounts are deferred. Going ¢oncern Having feviewed the cash position. the Governors ccfflswjer that the Group has adequate resources to continue its current operations and pursue rts Long Terni Strategy. as they believe (t has the ability to meet its debts as they fall due. Accordingty, they continue to adopt the going con￿r￿ basis in preparing Ihe annual report and aceounts. Income from Ch3ritsbl8 Activities During the year, a £3CQ donation vrds receNed arKI cl8$sTfied as ￿$1￿Cted fvnds. All other charitable income for the current and prior year is attributable lo unrestricted funds. Income from Investments All investment income for the Current and prior year is attn"butable to unrestricted fijnds. Page 20 Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2021 (continued Income from Other Activities 2021 2020 Olher Income 174.326 409.268 Other Income is attribu￿￿￿ to unrestricted furK15. 2021 includes £97.505 r￿e1Ved from HMRC in respect of staff furloughed urKlerthe HM Job Retention Scheme and a further £26.532 received from BiThingham Crty Council in ￿Spect of Sustsinability Funding initiatNes. School Operating Costs funds 2021 funds 2021 Total 2021 Totsl 2020 Salar Teaching materials Kitchen expenses Rent. rates and insuran Heat and lyJht C￿n1ThJ Training Repairs ar*4 MaIntena￿e Motor and transport 4.027.729 80.553 325.576 102,388 1e6.1 S1 205.6L 9.215 148,288 22.980 4.027.729 80.553 32S,S76 102.388 166.151 205.606 9,215 148.288 22.980 4,127.996 76,542 290.182 126,627 108,654 141,440 11,648 200,860 25,148 Depreciation: Fixtures. vehi￿$ and equipment Freehold buildin9S AmortisatKJn of gooth"Il Profrt on d￿pOSal assets 147.358 80.173 34,217 16301 147.358 80,173 34,217 (630) 153,077 77,687 34.310 131 Support costs: Printing and stsb'onery Advertising Sundry expenses Profess¥)nal charges Bank charges 192.265 70,311 65.493 77.510 45.303 192,265 70,311 65,528 77,510 45.303 162,480 39,923 50,517 1￿.993 34,051 5.800.486 5,800,521 5,818,132 All expenditure forthe Current and pr￿ryear 15 in respectof 1hefurt￿ran¢e ofthe charitable aCtivit￿S 0fwh￿h £3512020- £1.112} was attributable lo reslri¢led fvnds and £5,800.48612020- £5,817.0201 was attI￿(rtable to unreslllcled funds. Govemance Costs Unrestricted Restricted fund5 funds 2021 2021 Total 2021 Total 2020 Auditors, remunera￿ 10) 13.290 13290 13,290 Page21 Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2021 (continued) Slaff Costs The avLYage monlhty number Lrf and full tme equNalenls (FTE) durirvJ the year was as 2021 2020 Number Number FfE Teachers AdminiStrat￿n AU￿liary staff 134 127 29 37 90 23 22 18 123 193 135 2021 2020 staff costs for **)ve pe￿On5'. W*Jes and salaries Social secufity costs ¢]her pensKJn costs 3.554.954 267,322 3.653,118 268,327 2CE.551 4.027.729 4,127, There were three 12020.. three) employees whose emoluments a5 defined for laxalion purposes amounted to over£60.LXJJ. Theiremoluments fell wrthin the following ban¢Js'. two £60,001 to £70,000 (2020. two) and one £100.001- £125,00) {2020: one £1O).001- £110.￿0). Pension costs in respect of the above empbyees totalled £26.76812020". £26,544). Defined contribution pension scheme The Group operates a defined ¢ontributK)n pensKyn scheme. The assets of the scheme are held separately from those of the Group in independently administered funds. Two12D20'. twol higher paid employees are ac¢ruing benefts under the group defined conlribulK)n pension scheme and one 12020.. one) employee has their pensKJn contributions paKI into a private pension scheme. The total pension costs charge to all schemes represents contribution$ payable by the Group and amounted 10 £205.4S312020. £2C6.551). Trustees. and Key Management Personnel Remuneration and expenses The Governors do not receive any remuneration from the School, have no accruing pension ariangemenls and had no expenses reimbursed in ertheithe yearto 31 August 2021 or the previous financial year. The total amount of employee beneffts re￿ived by key management personnel is £373.26312020.. £358.7281. The Charity considers its key managemenl personnel are the SenKJr Leadership Team. Interest Payable 2021 2020 k loan Interest 12,8S9 17.311 Page 22 Hig￿lare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2021 (continued) 10. Total Resources Expended 2021 2020 Total resources expen¢Jed on ¢harilable thties i￿udeS.. Depreciatrjn of taroible fixed assets AmortisalKJn of intsngible fixed assets - purchased glxthll Surplus on disposal of ￿gible a55 Auditorfs remuneration in resp&t of n￿-aUdit servres 184.043 230,674 34,217 1630) 9.756 34.310 13) 3.802 Governan￿ ecjsts includes." 2020 AuditoFs' remuner*w in res￿ ofaL*Jit Se￿iceS - for audit services . for Other serv 13.290 9.7S6 13,290 23.046 13,290 11. Intangible Fixed Assets Purchased GoodvAII Group and Company Cost At 1 September 2020 and 31 ￿￿ust 2021 685,000 Amortisation At 1 September 21)20 Charged in the year 639.253 34,217 Al 31 August 2021 673.470 Net IK￿￿ value Al 31 August 2021 11,530 At 31 August 2020 45,747 Page 23 Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2021 (continued) 12. Tangible Fixed Assets futures. fittings. vehicles & equipment Assets under conslru¢tion Investment properties Freehold Prope￿¢5 Total Gr¢>up Cost or valuation At 1 September 2020 Additions Disposals Transfw cl Category 219.162 5.307.411 18,752 2,310,203 63.328 132,6291 337,451 335,500 8.174.227 417,580 132,629) 370,116 {370,1161 At 31 August 2021 219.162 5.6*.279 2,340,9)2 302,835 8 559.178 Depreclation At 1 September 2020 Charged In the year EliminatK)n on disposals 1.508.199 80.173 1.￿.484 147.358 132,6291 3.476,883 227.532 (32.6291 At 31 August 2021 1.588.372 2.083.213 3,671.585 Net Book Value Al 31 Augusl 2021 219.162 4.107,907 257.689 302,835 4,887.593 At 31 August 2020 219,162 3.799,212 341.719 337,451 4,697,$44 Cornpany Cost or valuation Al 1 September 2020 Addrtions Disposals Transfer of categrmy 219.162 2.179.476 18.752 2.310,203 63.331 132.6291 337,451 335,5 5,046,292 417,583 132,829) 370.116 1370,116) At 31 August 2021 219,162 2.568,344 302.835 5,431.246 Depreciation Al 1 September 2020 Charged in the year EliminatKJn c dispjsals 457,860 36,685 1.￿.484 147.358 2.426.344 184,043 {32.6291 (32,6291 At 31 August 2021 494.545 2.083.213 2.577,758 Net 8ook Value At 31 August 2021 219.162 2.073.800 257.691 302.835 At 31 August 2020 219.162 1,721616 337 451 2,619,948 Page 24 Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 20211continued 12. Tangible Fixed Assets Iconllnuedl On an historical cost basis the freehokl property wcMJld be included at." Group Company 2021 2021 2020 2020 5.304.305 (1.547.874) 4.915,437 (1.467.701) 2.474.313 1484.5441 2,085.445 1447.8591 Deprechgt￿n 3,756.431 3.447.7&S 1.989.769 1.637,586 Freehold land and buiklings at 241 Bimiingham Road. Wylde Green were re-vaIl￿ during the year ended 31 August 1995 al open market value with V￿nt possession by Wealherall, G￿en & Smith, independent charte￿d surveyors. The Governors are sa115fied that thi% valuation remains appropriate, and currentty have no intention to perform fijrther maluations. The Iransrtional rules set out in FRS 102-'Finarrial Reporting Standards applicable in the UK and Republic of Ireland, We￿ appl￿ on implementation of FRS 102. Accordingly. the book values at implementstion have been retained as deemed cost. The Governor5 are aware of their responsibilities to ensure that there has been no impairment lo the Wdlue al which the properties are included in the financial slatements. Based on 8th•￿e and enquiry of appropriate professionals the Governor5 are confident that the value of the freehold properties at the date of transitDn to FRS 102 15 not impaired and the uttim*e mathel value exceeds the book value5 retained at impkmentalion of FRS 102. On a historical cost basis the investment propety woukl included at.. Group Company 2020 2020 219.162 219.162 219.162 219,162 Depre¢otv)n 219.162 219,1S2 219.1K2 219,162 In accordance with the requ1￿mentS of FRS 102. but contrary to the requirements ofthe Companies Act 2006, investment pioperties are not depreciated. Instead, their orrfJoing current value is ewed annually. which the G0veM￿ consider necessary ￿ order to show a twe and fair view. The property was acqui￿ in 2005 and the Govemors conspjer that ils cunent market value at 31 August 2021 is not materially different to its cost. Included in GTOUP freehokl land and buildings 1$ land with a total ￿$t cf valuation of £1.027,50012020.. £1,027,$00) wh￿h is not depreciated. iv) I r￿ed assets other than the invesknent propert￿5 are used for direct charitable purposes. Page 25 Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2021 Icontinued) 13. Investment The investrnent represents 950,￿0 £1 ordinary shares acquired * par in Highclare Investments mited. (Company registered number 029639341 a wholly owned subsHliary. Highclare Investments mited also has a wholty owned subsidiary. Highdare Limited, (company registered nurnber 029639381 in wh￿h it holds 900.000 £1 ordinary shares again acquired al par. The principal activity of both 5ubsKliaiies is propety ownership and management and both ale incorpoiated in England. Highclare Investments Limited Hlghclarn Llmlted 2021 2020 2021 2020 Summary profit and account Turnover AdminislratNe expenses {8.5291 (8.5131 135.0251 135,0051 Nel loss for the year and Retsined In the subsldiary {8.$291 (8,513) {35.025) {35,005) The assets a￿1 Ikabilths ￿ the subsvjiaries V￿re.. Fixed assets Current assets 2.053.106 2.(61.6(r2 61 880,999 915.991 62 Credltors: Amounts falling due within one year 11.331.83n 11.331.83n (873.S141 {873.514} Totsl net assets 721.297 729.826 7,514 42.539 Aggregate Share capital and reserves 721.297 7,514 42,539 14. Debtors Group 2021 Company 2021 2020 2020 Due within one year. Outstanding fees Amounts ¢￿d by SL*>s¥Jk?ry underta(ings Other debtors Prepaymenls 922 33.317 922 33,317 2.205.351 12.843 70,476 2,205.351 11,177 143,343 12.843 70A76 11,177 1a3,343 84.241 187,837 2.289.592 2,393.188 P￿e 26 Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2021 (continued) 1S. Creditors: Amounts falling due within one year Group 2021 Company 2021 2020 2020 Bank loa Trae creditors Fees in advance Other taxation and s(xwl ￿￿rty other credrtors Accruals Friends of Highdwe Schwl FurKI 85.899 75.819 741.456 65,883 397,048 473.042 85,898 323,263 515.194 135,503 365.870 324.301 478 85,899 7S.819 741.456 65.883 397.048 473.042 478 85,898 323,263 515.194 135.503 365.870 324,301 478 1m9.625 1.750.507 1.839.625 1.750.507 Fnend5 of HKJhckn Schod has not conlributed any fvnds in this or the previous toward5 specific projects. Bank loans and overdraft5 are Secu￿ by a fixed charge t)ver book debts and a floating charge over all other assets of the Group. together wtth mortgages over certain freth)Id properties. 16. Creditors: Amounts falling due after mort than one year Group 2021 Company 2021 2020 2020 Bank bans 726.470 812,368 726.470 812,368 Maturity of borrowings Group 2021 Company 2021 2020 2020 Bank loans Amounts fall due on the bank l)ar a5 follows". Within year Betsveen one an¢J years Behveen and five years Overfve years 85.899 85.897 257.693 85,898 85,897 257.693 468,778 85.899 85.897 257.693 382.880 85.898 85,897 257,693 468,778 812.369 898.266 812,369 898,266 Bank loans for the group and C(￿panY include the following.- la) A mortgage loan which had a femaining balance at the year-end of £645,701 {2020'. £714,932} carries inlefest at the Bank's Slerfing Base Rate plus (2020 Bank's Steding 8ase R*e plus 10A1.Thi% ban is repayab￿ by lemity instalments of£23.077 wh￿h ￿mMenCed September 2013 and ends in 2028. Ibl A second loan with a remaining balan￿ al the year*nd of £166.669 {2020.. £183,334), which is fepayable by lefmty caprtal inslalments of £5,556 payable on 1 September, 2 January and 1 May ctynmencing on 1 September 2013 and ends 2033. The loan caffies interest atlhe Bank's Sterling 8a5e Rale plus 3.00% and is paid monthly_ P&ae 27 Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2021 (continued 17. Operating leases At 31 August 21T21, the SctrKol Iva5 ccfflmrtted to m*ing the folkn¥iNd payments under non- cancellabk oper￿.￿j leases. These corrmthents analysed as fdkMs'. Group 2021 Company 2021 2020 2020 Other wr(hin one year Betsyeen one and fNe year5 Over fwe years 47,120 32,0 136.000 47,120 61.340 144.C(O 47,120 32,000 136,000 47,120 61.340 144.000 215.120 252.460 215.120 252.460 Included in the operatirrfj leases discb5ure above is a twenty-fNe year tenancy lease with Birmingham Crty Council signed on 6 September 2018 over land ￿ferred to as "Highclare Sports Field.. Un¢Jer this agwment. there a five yeady rent review. 18. Capitsl ¢ommttsnents Group and Company At the 31 August 2021, contracted capital commibnents in respect of assets under construction amounted lo£Nil {2020- £20.489). These amounts had been approved by Governors and committed to be spent but ncl ir￿urred or invoiced at the yearond. 19. Contingent liabilities In the event that bank borrty¥ings arise. the Company has guaranteed the bank borrowing of the other Group undertakings. Page 28 Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2021 (continued) 20. Funds Reconciliation Group Asat1 September 2020 Asat31 August 2021 Income ExpoTrditure Transfe Restricted funds Unrestricted funds Revaluation reserve 14,753 4.298,184 300 5.823.251 1351 15,800,486) (14.324) 14,324 694 4,335,273 351,476 351,476 Total funds 4.6PA.413 5.823.551 5.800.521 4,687,443 Cornpany Asat1 September 2020 Asat31 August 2021 Income E¥pendilu Transfe Restricted funds unrestr￿ed furKIs Revaluation reserve 14,753 5.643.261 300 5.823.551 135) (5.756.929) {14,3241 14,324 694 5,723,907 84.030 84.030 Total funds 5.742.044 5.823.551 {S.756.9641 5.808.631 Fund descriptions a) Unrestricted lund5 The unrestricted funds are retatned as necessary lo meet the general requirements of the School. The Charity aims to retain consolidaled unieslricted reserve5 equivalent lo the Carrying value of the tangible fixed assets. which amount to £4,887.593 as al 31 August 2021 12020.. £4.697.5441 as a contingency in order lo maintain the stable operation of the Schwl in the case of future unforeseen events. 11 ￿mainS the 0￿.eCtiVe of the Board of Governor5 for the reserves lo eonlinue to increase until this minimum target is met and through careful rnanagemenl and control of operational costs through what has been a turbulent period caused by Covid-19 the unre5trKlecJ reserves have been maintained at the yearend. cons01￿ated unrestricted reserves al 31 August 2021 amounted to £4.686.74912020.. £4.649.6601. as shown in the notes above. b) Restrlcted funds During the year. a £300 donatKJn was receNed. lo be splrt eqLJally between Mysic, Modern Foreign Languages and Phys￿1 EducalK)n. Prewously. a donation of £10,000 was received from the late Sir Doug Ellis as a conlributs.on towards the build costs of a new pavilion at the Highclare School Sports Field during 2018 was Irealed as a reslrided fund This donation has been utilised in caprtal improvements lo the sw)rts field pavilK)n in the year and the reslricled funds have been transferred to un[estr￿ted funds. Funds previously reslricted forthe new netball and tennis courts at the School amountsng lo £4.324 (2020.. £4,324) have also been released as the funds have been used on the restrKted capital project. The remaining restricted funds £394 12020.. £429) relate lo donations receiNed for prize funds at sen￿rs Speech Day. c) Revaluation reserve The revaluation re5efft represents unrealised surpluses on the revaluation of fixed assets lo market value in prior years. An amount i8 transferred lo the unrestrthd fund each year on the sane basis that the asset 15 depreciataj. Page 29 HIghCla￿ School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2021 (continued) 21. Analy515 of nel assets between funds Group Unrestrictsd Restricted Funds Total Funds Fund balances at 31 August 2021 arn represented by: Tangible fixed assets Intangtr*le fixed assets CurTent assets CurTent liabili(*s LorKJ te￿ IHbilthes 4,887.593 11.530 2,353.721 11.839.625) (726,4701 4,887,S93 11,530 2,354,415 {1.839.625) 1726,470) 694 Totsl net assets 4.686.749 694 4,687.443 Unrealised gain5 inClud￿j aix)ve c￿ tsngib frxed assets 351,476 351.476 Company Unrestricted Fund5 Restricted Funds Total Funds Fund balances at 31 August 2021 are represented by: Tangible fixed asset5 Intangible fixed assets Investsnent Current assets Current liabilli￿S Long lern lia)ilit*s 2.853.488 11.530 950,CQO 4,559,014 11.839.625) (726.4701 2,853,488 11.530 950.000 4.559.708 {1,839.625) 1726,470) Tolal net assets S.807.937 694 5.808,631 Unrealised gains indud&J abrn on tarvJib fLxed assets 84,040 84,030 Page 30 Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2021 (continued) 22. Reconciliation of net income to net cash flow from opernting actlvltles 2021 2020 Net inco¥ne for ypar 23.030 .487 Rents receNed fr(xn Investsnent propeitEs DepreciatK)n of tsrKJlb￿ assets Surplus on disrx)sal of tangible fixed assels AmortLsatM)n of intangti￿ fixed assets Interest payab Ilncrease)Idecrease in debtors IOecrea5ellincrease in credrtCK5 {8,2501 227,439 16301 34,310 12,859 103,596 89,118 {8,250} 230,764 13} 34.310 17.311 {73,273) 255.758 Net flow frcqn operatng actN*ies 481.472 547.104 23. Transactions involving Govemo Govemors. interests in contracts. During the year under review no new trartsactions were made or ccthmrtted to conceming ¢onlracls in wh￿h Governors, may have an Inte￿t. As part of its insurances the Group maintain$ c¢)ver for Ihe Governors and officers against liabilities in relalKJn to their dulles to the sch￿1. The cost for 2021 was £2.767 {2020 - £2.767}. 24. Related party transa¢tlons There is no controlling paty- The Company has taken advantage of the exeMpl￿nS not to disclose intra-group transaclions on the basis that all subsidiaries are 100% owned and all Iransaelions with other Group companEs are eliminated in the consolKlated financial statements. Page 31