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2022-08-31-accounts

Highclare School (A company limited by guarantee)

for the Year Ended 31 August 2022

Registered number: 1074596 (England & Wales) Registered charity number: 528940

Highclare School

Financial Statements

For the Year Ended 31 August 2022

Contents Contents
Pages
Governors and General Information 1
Strategic Report 2 6
7
8
9 12
Consolidated Statement of Financial Activities 13
Consolidated Balance Sheet 14
Company Balance Sheet 15
Consolidated Statement of Cash Flows 16
Notes to the Consolidated Financial Statements 17
32

Highclare School

Governors and General Information

Governors: J A Barrett (President) J A Barrett (President) J A Barrett (President)
Mrs L E Flowith (Chairman)
J R Brain ACA
Mrs P A Mayall
A I Hazel
Mrs S D Watson
A B Davison
Head: Dr R Luker PhD MA BA (Hons) PGCE
Educational establishments: Highclare Preparatory School: Woodfield
Pre-Preparatory and Preparatory
241 Birmingham Road
Wylde Green
Sutton Coldfield
West Midlands
B72 1EA
Pre-Preparatory and Preparatory
88 Lichfield Road
Sutton Coldfield
West Midlands
B71 2SY
Highclare: The Abbey
Senior School and Sixth Form
10 Sutton Road
Erdington
Birmingham
B23 6QL
Registered office: 241 Birmingham Road
Wylde Green
Sutton Coldfield
West Midlands
B72 1EA
Bankers: HSBC Bank Plc
The Bridge
Walsall
WS1 1LN
Auditors: Malcolm Piper & Company Limited
Kingsnorth House
Blenheim Way
Kingstanding
Birmingham
B44 8LS
Senior management personnel: Dr R Luker
Mrs S Cassell
Mrs P Bennett
Mrs M P A McGoldrick
Mr M Coles
Mrs J Griffiths
Mrs H Good
Charity number: 528940
Company number: 1074596

Page 1

Highclare School

Strategic Report

Objectives and Activities

The principal activity of the Group remains the provision of tuition and general education facilities to children between rising three and eighteen years.

The objectives of the Charity are:

For over 90 years, Highclare has been pursuing its policy of encouraging pupils to achieve their full potential within a stimulating academic environment and to pursue excellence. The Highclare philosophy goes much further than educational excellence; we endeavour to work with both pupils and parents to equip our young people to cope with the pressures of modern society.

Despite the pressure caused by the pandemic on pupils and staff attendance, the School enjoyed a very successful and purposeful year face to face.

that is broad and balanced and kept constantly under review, the widening of access to the education provided by the School, enhancing the use of technol facilities and their access by the local community. Over the period, there was once again extensive refurbishment to continue the rolling programme of essential upgrading of the internal and external infrastructure of all school buildings, including external and internal refurbishment and decoration at three school locations plus the sports field and pavilion.

Recruitment and Training of Governors

Governors are familiar with the aims, objectives and practical operation of the School, usually either by being parents or grandparents of pupils who are currently being educated at the School or having had pupils attend the School in the past. New Governors are appointed by the Board of Governors and elected at an Annual General Meeting following completion of 12 months of service.

Additionally, new Governors are provided with a copy of the latest financial statements and

Governors undertake training as and when required appropriate to their specific needs and responsibilities.

The Governors determine the strategy and general policies of the School and meet as a Board at least 10 times a year. The implementation of the strategy together with the day-to-day management of the School is delegated to the Headmaster and the Senior Leadership Team.

Group Structure and Relationships

The School has a wholly owned non-charitable subsidiary, Highclare Investments Limited. Highclare Investments Limited also has a wholly owned subsidiary, Highclare Limited. The principal activity of both subsidiaries is property ownership and management although both subsidiary companies were non-trading throughout the current financial year.

Page 2

Highclare School

Strategic Report (continued)

Achievements and Performance

Academic achievement is a matter of record, with our pupils winning places at top independent and maintained grammar schools at junior level and gaining their choice of university after the Sixth Form.

Academic results during the 77% passes at A - C grades (including EPQ). At GCSE an impressive 100% of the candidates achieving grades 9 to 4 (A to C equivalent) in five or more subjects, 40% achieving grades 9 to 7 and 100% attaining Maths and English. These grades were achieved alongside taking part in a full extracurricular timetable, in keeping with the Highclare ethos of educating the whole person. The strength of teaching, processes and the dedication and continued hard work and application from staff and pupils placed us firmly amongst the top independent and maintained schools in the region.

, continues to be (+0.2 and +0.05 respectively) ranked the School in the top 1/2 and 3/4 (respectively) in the order for participating schools.

Throughout the year both the Senior and Preparatory Schools continued to provide a vast range of cocurricular and extra-curricular activity. Highclare School is dedicated to educating the whole person and allowing them to fulfil their potential in so many ways through sport, music, drama, the Duke of Edinburgh Award scheme and the many activities and trips both local and abroad offered to pupils. These activities complement the learning through the curriculum and enrich personal development. This is what Highclare School is all about, giving the opportunities to pupils to learn important skills such as leadership, time management, teamwork, persistence and to grow in both self-confidence and selfassurance.

In the Senior School, extra-curricular clubs at lunch and after school continued to play a huge part in the development of sport. Clubs included: football, netball, hockey, table tennis, rugby, basketball, badminton, indoor athletics and cricket. Highclare Sports Field continues to be used weekly in the double lessons for football and rugby and more recently for cricket in September and October, making use of the Astroturf wicket. The pupils in U3/L4 continued to have a weekly swimming lesson at Erdington Leisure Centre, which is a fantastic opportunity for their development.

Prep School sport is enhanced via the extra-curricular clubs before school, at lunchtime and after school. Clubs included football, netball, hockey, basketball, ballet, tennis, multi-sports and dancing as examples. Highclare Sports Field continues to be used by the Prep School 4 times a week and we also share facilities at the Senior School or across Prep School sites. Swimming is taught weekly for pupils in Reception, Year 1 and Year 2 and then on a half termly basis for pupils in Year 3-6. Fixtures take place for all pupils throughout the school (Year 1 upwards) in all sports such as swimming, tri-golf and hockey. Last year we played approximately 65 fixtures against other schools. These were both competitive and friendly.

The Duke of Edinburgh Scheme, which was established at Highclare School in 2013, continues to flourish. The awards involve a wide range of activities including sport, expeditions and volunteering all of which the pupils have to organise for themselves. This demands a great deal of personal input along with the tremendous support from the teaching staff involved, who also give up their free time to supervise the expeditions and manage the programme. This year saw fifteen pupils achieving bronze status and three silver status.

Music and drama continue to play an extremely important part in school life. Music events took place and many of the pupils maintained their progress via the interaction with the numerous visiting music teachers, who continue to do so much valuable work. The London Academy of Music and Dramatic Arts -curricular activity, which allows pupils to grow in confidence and develop their individuality. This has continued to flourish and, once again, many pupils took exams during the year.

Page 3

Highclare School

Strategic Report (continued)

Achievements and Performance (continued)

In the annual ISA art competition (regional) we enjoyed success across the School with four first places, three second places and three highly commended. One piece went on to be highly commended in the national competition.

The Preparatory School continues to promote the ongoing and all-round development of all pupils in a nurturing and caring environment.

The Governors offer their congratulations to the pupils who participated in these achievements and thank the teachers and parents for their commitment and support.

Pastoral care continues to be a strength of the School with comprehensive policies on Personal, Social, Health and Citizenship Education (PSHCE), Social, Moral, Spiritual and Cultural aspects of Learning (SMSC) and careers guidance, together with an outstanding tutor system. School implemented the regulatory framework with regard to relationship and sex education and responded positively to the national initiatives on equity, diversity and equality that schools were asked to implement.

Community Involvement

The School has an on-going commitment to encourage all pupils of every age to engage (at appropriate levels) in community involvement. These include community carol singing, personal visits to residential and care homes and a local special needs school. Invitations are extended to these residents to attend a number of school events such as concerts and plays.

Charity plays a huge part in both the Senior and Preparatory Schools. The charities chosen by the pupil councils on each site this year were Shoe Aid, St Basils (supporting young people who are homeless or at risk of homelessness) and TAWS (The Active Wellbeing Society) and the Erdington Foodbank. During the year the School raised over £10,000 (2021; £9,145.13).

During the Summer term half-term brea pupils, staff and families walking, running, cycling, swimming This year has also seen the School donating gifts of food for the Trussell Trust foodbank operated in Erdington. The Governors are extremely grateful to the pupils and their parents for these considerable fundraising efforts, which were even more necessary during the current cost of living crisis to assist those within the community who are struggling to cope.

The competitions in art and creative writing for local primary schools took place. The art competition, in the Spring, attracted 272 entries on the theme of a pop art inspired piece showing what 15 minutes of fame might look like, whilst the creative writing competition focussed on writing a poem on and attracted over 330 entries. Unfortunately, the Covid-19 restrictions prevented us from holding a live presentation for the creative writing event although, we created a visual presentation and made it available for ebsite. We were able to welcome participants into school in the Summer for the art presentation event.

facilities at both the Senior School and Highclare Sports Field and the Church next door are able to use the car park every weekend when they are open, within current restrictions, and able to provide services to the community. A local ballet school continues to use the Senior School hall on a weekly basis.

The Trustees have considered their response to the change to the law, as embodied in the Charities Act 2011, requiring that public benefit can no longer be presumed but must be demonstrated. In addition, they have had due regard for Charity Commission guidance on the subject. The Governors consider that these wider involvements and contributions to the community clearly demonstrate the greater public benefit requirements are being met.

Page 4

Highclare School

Strategic Report (continued)

Scholarship Awards

Academic scholarships are awarded to pupils who perform particularly well in the examinations and have already demonstrated a considerable degree of all round commitment to their school. Additional specialist scholarships are also awarded for those pupils showing a particular talent in music, sport or art. A limited number of bursaries are offered based on financial needs. The Highclare School -tested bursary available annually if all the necessary requirements are met to cover up to 100% of school fees for one pupil upon entering Senior School in U3 (Year 7). The School currently has awarded this bursary to six pupils: ranging from current U3 (Year 7) to L6 (Year 12).

Financial Review

Fee income has increased this year to £6,255,310 from 2021: £5,628,888.

The School has continued to make savings in overheads and costs where possible.

The continued and necessary annual rolling replacement programme of IT facilities has had to continue and has been especially necessary due to the Covid-19 restrictions and changes which continued during this school year. The programme this year included the replacement of interactive smart boards, computers, iPads, servers and Wi-Fi provision to ensure that both pupils and staff continue to benefit from enhanced interactive teaching.

There have been many other significant enhancements this year which included:

Reserves Policy

It is the policy of the Charity to maintain separate reserve funds for specific purposes. The Charity aims to retain at a minimum consolidated unrestricted reserves equivalent to the carrying value of the tangible fixed assets, which amount to £4,941,749 as at 31 August 2022 (2021: £4,887,596) as a contingency in order to maintain the stable operation of the School in the case of future unforeseen events; the most recent financial years being a very good indicator of how appropriate that policy is to the future sustainability and stability of the School. It remains the objective of the Board of Governors for the reserves to continue to increase until this minimum target is met and through careful management and control of operational costs. The unrestricted reserves have been maintained at the year-end. Consolidated unrestricted reserves at 31 August 2022 amounted to £4,760,959 (2021: £4,686,749).

Risk Management

The major risks, to which the Charity is exposed, as identified by the Governors, have been reviewed and systems remain under constant review to mitigate those risks. The risk register is updated throughout the year.

Page 5

Highclare School

Strategic Report (continued)

Friends of Highclar

The FOHS plays a very important part in the School, organising events for the pupils and parents and raising funds for the School. They are a committed and dedicated group of parents who aim to provide the best they can for the School. They also kindly operate a nearly new School uniform shop that is used by the parent body.

Child Protection Code of Practice

It is the policy of Highclare School to provide a safe and secure environment in which pupils can thrive and develop and where all aspects of their welfare will be safeguarded. A Child Protection policy and procedures has been adopted and is updated on a regular basis. This includes additional and necessary considerations for physical as well as psychological health, safety and well-being of all our pupils.

Plans for Future Periods

the provision of enhanced facilities. Constant monitoring of performance, and the potentially changing under review and any changes that are necessary will be considered and implemented.

The use of Highclare Sports Field continues to evolve and expand and has been a significant contributing factor to the tremendous sporting success that both the Preparatory and Senior School have seen over the past year. Highclare Sports Field is also available to the local community and has seen a considerable increase in usage by a number of local schools and clubs during the year and this increase has continued into the following academic year.

The School continues its major school wide capital investment programme, which includes further developments in the landscaping, administration centre and pre-prep provision at Highclare Woodfield; a replacement of the existing food preparation and serving facilities, and pupils cloakroom and changing ents to the facilities at the Senior School. Additionally, security and the heating systems continues across all three locations, to ensure a high quality-learning environment is maintained for the pupils.

Approved by the Board on 14 December 2022 and signed on its behalf by:-

J R Brain Governor

Page 6

Highclare School

The Governors submit their report and the audited consolidated financial statements of the Group for the year ended 31 August 2022.

The Governors have adopted the provisions of the Statement of Recommended Practice (SORP) Annual Report and Financial Statements.

Structure, Governance and Management

The Company is limited by guarantee and is registered as a charitable educational trust. There is no share capital. Its Memorandum and Articles of Association govern the Company.

The Governors (who are also directors of Highclare School for the purposes of Company Law) are responsible for preparing the Annual Report (including the Strategic Report) and the Financial Statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Company Law requires the Governors to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the Group and Charitable Company and of the income and expenditure of the Group and Charitable Company for that period. In preparing those financial statements, the Governors are required to:

The Governors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Group and Charitable Company and enable them to ensure that the financial statements comply 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 prevention and detection of fraud and other irregularities.

The Governors are also responsible for ensuring that the assets are properly applied in accordance with Charity Law.

The Governors who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the Group and Charitable that they ought to have taken as Governors in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

The Trustees are responsible for the maintenance and integrity of the corporate and financial te. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Page 7

Highclare School

Organisational Management

The Directors of the Company are also Charity Trustees for the purposes of Charity Law and under the in a non-executive capacity and receive no emoluments. The day-to-day management of the School is delegated to the Head and his Senior Leadership Team.

The Governors who served in the year ended 31 August 2022 were:

J A Barrett (President) Mrs L E Flowith (Chairman) J R Brain (Treasurer) Mrs P A Mayall A I Hazel Mrs S D Watson A B Davison Professor F Eperjesi (resigned 5[th] October 2022)

J R Brain, Mrs P A Mayall and A I Hazel retire by rotation at the forthcoming Annual General Meeting and, being eligible; offer themselves for re-election at the Annual General Meeting.

Auditors

Malcolm Piper & Company Limited, as auditors, will be proposed to the Governors for re-election at the Annual General Meeting.

Approved by the Board on 14[th] December 2022 and signed on its behalf by:-

J R Brain Governor

Page 8

(A Company Limited By Guarantee) (Registration number 1074596)

Year Ended 31 August 2022

Opinion

We have audited the financial statements of Highclare

Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and notes to the financial statements, including 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 of the financial statements section of our report. We are independent of the Group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, led our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the fin going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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.

Page 9

(A Company Limited By Guarantee) (Registration number 1074596)

(continued)

Year Ended 31 August 2022

Opinions on other matters prescribed by the Companies Act 2006

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

een prepared in accordance with applicable legal

requirements.

Matters on which we are required to report by exception

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

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

Responsibilities of Governors

As

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 Governors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In prepa

concern and using the going concern basis of accounting unless the Governors either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

We have been appointed auditor under the Companies Act 2006 and report in accordance with this Act.

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 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.

Page 10

Highclare School (A Company Limited By Guarantee) (Registration number 1074596)

(continued)

Year Ended 31 August 2022

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, including fraud as detailed below:

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.

Page 11

Highclare School (A Company Limited By Guarantee) (Registration number 1074596)

(continued)

Year Ended 31 August 2022

A further description of our responsibilities for the audit of the financial statements is located on the Financial report.

Use of our report

16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Group and other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other ers as a body, for our audit work, for this report, or for the opinions we have formed.

Peter Whitehead BA FCA Senior Statutory Auditor For and on behalf of Malcolm Piper & Company Limited Kingsnorth House 1 Blenheim Way Birmingham B44 8LS

Dated: 14 December 2022

Page 12

Highclare School

Consolidated Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 August 2022

Note
Income from:
Charitable activities
School fees receivable
Registration fees
School activities & trips
Investments
Rents and lettings
Other
Other income
4
Total income
Resources expended
Expenditure on:
Charitable activities
School operating costs
5
School activities and trips
Governance costs
6
School finance costs
9
Total expenditure
10
Net income
Transfers between funds
20
Net movement in funds for
year
Total funds brought forward
at 1 September 2021
Total funds carried
forward at 31 August 2022		 Unrestricted
funds
2022
£
6,255,310
11,045
63,828
8,250
279,773
6,618,206
(6,455,192)
(63,828)
(11,640)
(13,336)
(6,543,996)
74,210
-
74,210
4,686,749
4,760,959		 Restricted
funds
2022
£
-
-
-
-
-
-
(30)
-
-
-
(30)
(30)
-
(30)
694
664		 Total
funds
2022
£
6,255,310
11,045
63,828


8,250


279,773
6,618,206
(6,455,222)
(63,828)
(11,640)
(13,336)
(6,544,026)
74,180
-
74,180
4,687,443
4,761,623		 Total
funds
2021
£
5,628,888
11,787
-
8,250
174,626
5,823,551
(5,776,502)
-
(11,160)
(12,859)
(5,800,521)
23,030
-
23,030
4,664,413
4,687,443

All income and expenditure is derived wholly from continuing operations.

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

The notes on pages 17 to 32 form an integral part of these financial statements.

Page 13

Highclare School

Consolidated Balance Sheet at 31 August 2022 (Registration number 1074596)

Note
Fixed assets
Intangible assets
11
Tangible assets
12
Current assets
Debtors
14
Cash at bank and in hand
Creditors: Amounts falling due within one year
15
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due more than one year
16
Total net assets
Charity Funds
Restricted Funds
20
Unrestricted Funds
General unrestricted funds
20
Revaluation reserves
20		 2022
£
-
4,941,749
4,941,749
161,142
2,354,712
2,515,854
(2,055,408)
460,446
5,402,195
(640,572)
4,761,623
664
4,409,483
351,476
4,761,623		 2021
£
11,530
4,887,593
4,899,123
84,241
2,270,174
2,354,415
(1,839,625)
514,790
5,413,913
(726,470)
4,687,443
694
4,335,273
351,476
4,687,443

These financial statements were approved and authorised for issue by the Board on 14[th] December 2022 and signed on its behalf by:

Governor

Mrs L E Flowith

Governor J R Brain

The notes on pages 17 to 32 form an integral part of these financial statements

Page 14

Highclare School

Balance Sheet at 31 August 2022 (Registration number 1074596 )

Note
Fixed assets
Intangible assets
11
Tangible assets
12
Investment
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: Amounts falling due within one year
15
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after
more than one year
16
Total net assets
Charity Funds
Restricted Funds
20
Unrestricted Funds
General unrestricted funds
20
Revaluation reserves
20		 2022
£
-
2,918,399
950,000
3,868,399
2,366,441
2,354,694
4,721,135
(2,055,408)
2,665,727
6,534,126
(640,572)
5,893,554
664
5,808,860
84,030
5,893,554		 2021
£
11,530
2,853,488
950,000
3,815,018
2,289,592
2,270,116
4,559,708
(1,839,625)
2,720,083
6,535,101
(726,470)
5,808,631
694
5,723,907
84,030
5,808,631

These financial statements were approved and authorised for issue by the Board on 14[th] December 2022 and signed on its behalf by:

Governor Mrs L E Flowith Governor J R Brain

The notes on pages 17 to 32 form an integral part of these financial statements

Page 15

Highclare School

Consolidated Cash Flow Statement for the Year Ended 31 August 2022

Note
Net cash inflow from operating activities
22
Cash flow from investing activities
Payments to acquire tangible fixed assets
Receipts from sale of tangible fixed assets
Rents received from investment properties
Net cash flow from investing activities
Cash flow from financing activities
Repayment of loans
Loan interest paid
Net cash flow from financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at 1 September 2021
Cash and cash equivalents at 31 August 2022
Cash and cash equivalents consist of:
Cash at bank and in hand		 2022
£
415,556
(241,713)
1,680
8,250
(231,783)
(85,899)
(13,336)
(99,235)
84,538
2,270,174
2,354,712
2,354,712		 2021
£
481,472
(417,581)
630
8,250
(408,679)
(85,898)
(12,859)
(98,757)
(25,986)
2,296,160
2,270,174
2,270,174

Page 16

Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2022 (continued)

1. Accounting Policies

General Information and Basis of Accounting

The Charity is a Company Limited by Guarantee in the United Kingdom. The members of the company are the Trustees named on page 1. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the Charity. The address of the registered office is given in the Charity information on page 1 of the financial statements. The nature of the

The Company has taken advantage of section 62 of the Companies Act 2006 and deleted the word

The Charity constitutes a Public Benefit Entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice.

The consolidated financial statements have been prepared under the historical cost accounting convention, other than in the case of certain freehold properties and investment properties, which are stated at valuation. The consolidated financial statements are prepared in sterling, which is the functional currency of the Charity and rounded to the nearest pound. There are no discontinued operations.

The significant accounting policies applied in the preparation of these financial statements for the applied to all years presented unless otherwise stated.

Basis of Consolidation

The Group financial statements consolidate the financial statements of the company and its subsidiary undertakings, Highclare Investments Limited (company registered number 02963934) and Highclare Limited (company registered number 02963938). Intra-group transactions and profits are eliminated on consolidation.

No separate statement of financial activities is presented for the Company as permitted by section 408 of the Companies Act 2006. The Company had total income from charitable activities of £6,330,183 (2021: £5,640,675), income from investments of £8,250 (2021: £8,250) and other income of £279,773 (2021: £174,326). Total expenditure on charitable activities was £6,519,020 (2021: £5,774,372) and governance and finance costs of £24,976 (2021: £26,149). The net income for the year amounted to £74,180 (2021: £23,030).

Funds

Unrestricted funds are funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity 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 Charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted funds is set out in the notes to the financial statements.

Income Recognition

All income is included in the Statement of Financial Activities when the Charity is legally entitled to the income after any performance conditions have been met; the amount can be quantified with reasonable accuracy; and it is probable that the income will be received.

Page 17

Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2022 (continued)

1. Accounting Policies (continued)

Donations

For donations to be recognised the Charity will have been notified of the amounts and settlement date in writing. If there are conditions attached to the donation, and this requires a level of performance before entitlement can be obtained, then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Charity and it is probable that they will be fulfilled. Donations receivable for the general purposes of the school are credited to unrestricted funds. Donations subject to specific wishes of the donors are credited to relevant restricted funds.

Charitable Income

Fees receivable and charges for services are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions allowed by the school.

Investment Income

Investment income is earned through holding assets for investment purposes such as property. It includes interest earned and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest and rental income

Expenditure Recognition

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

Costs of Raising Funds

Costs of generating funds are those costs incurred in attracting voluntary income and those incurred in trading activities that raise funds.

Charitable Activities

Charitable activities include expenditure on providing education and include both direct costs and support costs relating to the activity.

Support Costs

Support costs are those that assist the work of the Charity but do not directly represent charitable activities and include central functions and governance costs. They are incurred directly in support of expenditure on the objectives of the Charity. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with the use of resources e.g. staff costs by the time spent and other costs by their usage.

Governance Costs

Governance costs comprise the costs of running the Charity, including strategic planning for its future development, external audit, any legal advice for the Governors and all the costs of complying with constitutional and statutory requirements, such as the cost of Board and Committee meetings and of preparing statutory accounts and satisfying public accountability.

Leases

Rentals paid under operating leases are charged to income in the period to which they relate.

Page 18

Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2022 (continued)

1. Accounting Policies (continued)

Intangible Assets - Purchased Goodwill

Goodwill arising on the excess of the purchase price compared with the fair value of net assets acquired is capitalised and amortised on straight line basis over its useful life. The period chosen for writing off goodwill is 20 years as in the opinion of the Governors this represents the period over which goodwill is effective. This has been reviewed and reassessed by the Governors based upon that continuing value that the original acquisition contributed to the Group and this period of 20 years remains entirely appropriate. Provision is made for any impairment.

Tangible Fixed Assets

Tangible fixed assets acquired are 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.

Depreciation is provided on all tangible fixed assets other than freehold land at rates calculated to write each asset down to its estimated residual value evenly over its expected useful life, as follows:-

Freehold properties up to 50 years straight line
Leasehold improvements up to 50 years straight line
Fixtures, fittings and equipment between 2 and 5 years straight line
Computer equipment (teaching) a maximum of 4 years straight line
Motor vehicles a maximum of 5 years straight line
Investment properties not depreciated

Assets under Construction

Costs incurred in fixed assets under construction are capitalised as they are incurred. The total cost of the project will be assessed against its realisable value upon completion of the project and it will then be transferred to the appropriate asset category. No depreciation is charged during the project construction. Where a project is aborted, the costs are immediately written off to the Statement of Financial Activities .

Investment Properties

Investment properties are accounted for in accordance with FRS 102, which provides that these should not be subject to periodic depreciation charges (unless held on lease), but should be shown at fair value. This is contrary to the Companies Act 2006, which states that, subject to any provision for depreciation or diminution in value, fixed assets are normally to be stated at purchase price or production cost. Current cost accounting or the revaluation of specific assets to fair value, as determined at the date of their last valuation, is also permitted.

The treatment of investment properties under the Companies Act does not give a true and fair view, as these assets are not held for consumption but as investments, the disposal of which would not materially affect the operations of the Group. In such a case, it is the current value of these investments, and changes in that current value, which are of prime importance. Consequently, for the proper appreciation of the financial position, the accounting treatment required by FRS 102 is considered appropriate for investment properties.

Details of the current value and historical cost information for investment properties are given in the Tangible Fixed Asset note.

Investments

Fixed asset investments in subsidiaries are measured at historical cost less provision for any permanent diminution in value.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the SOFA.

Page 19

Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2022 (continued)

1. Accounting Policies (continued)

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction, it is measured at present value.

Impairment

Assets not measured at fair value are reviewed for indications that the asset may be impaired at cash generating unit, is estimated and compared to the carrying value. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the SOFA.

Provisions

Provisions are recognised when the Charity has an obligation at the balance sheet date because of a past event; it is probable that an outflow of economic benefits will be required in settlement; and the amount can be reliably estimated.

Employee Benefits

When employees have rendered service to the Charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The Charity operates a defined contribution pension plan for the benefit of its employees. Contributions are expensed to the SOFA as they become payable in accordance with the rules of the scheme.

Taxation

The Company is registered as a Charitable Educational Trust and, under the provisions of Section 505, Income and Corporation Taxes Act 1988, is exempt from liabilities to taxation on its charitable activities. No corporation tax liability arises on the results of the subsidiary undertakings for the year.

Government Grants

The company receives government grants in respect of the HM Job Retention Scheme and other local government support initiatives. Income from government and other grants are recognised at fair value when the company has entitlement after any performance conditions are met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met, these amounts are deferred.

Going concern

Having reviewed the cash position, the Governors consider that the Group has adequate resources to continue its current operations and pursue its Long Term Strategy, as they believe it has the ability to meet its debts as they fall due. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

2. Income from Charitable Activities

During the year, no donations (2021: £300) were received and classified as restricted funds. All other charitable income for the current and prior year is attributable to unrestricted funds.

3. Income from Investments

All investment income for the current and prior year is attributable to unrestricted funds.

Page 20

Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2022 (continued)

4. Income from Other Activities

come from Other Activities
2022 2021
£ £
Other Income 279,773 174,326

Other Income is attributable to unrestricted funds. Other Income includes £Nil (2021: £97,505) in respect of staff furloughed under the HM Job Retention Scheme and a further £Nil (2021: £26,532) received from Birmingham City Council in respect of Sustainability Funding initiatives.

5. School Operating Costs

chool Operating Costs chool Operating Costs
Unrestricted
funds
2022
£
Salaries
4,132,083
Teaching materials
145,327
Kitchen expenses
432,389
Rent, rates and insurance
94,863
Heat and light
225,808
Cleaning
286,282
Training
13,652
Repairs and maintenance
433,914
Motor and transport
51,945
School activities and trips
63,828
Depreciation:
Fixtures, vehicles and equipment
130,840
Freehold buildings
56,717
Amortisation of goodwill
11,530
Profit on disposal of fixed assets
(1,680)
Support costs:
Printing and stationery
192,845
Advertising
34,655
Sundry expenses
60,499
Professional charges
125,758
Bank charges
52,741
6,543,996		 Restricted
funds
2022
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
-
-		 Total
2022
£

4,132,083
145,327
432,389
94,863
225,808
286,282
13,652
433,914
51,945
63,828
130,840
56,717
11,530
(1,680)
192,845
34,655
60,529
125,758
52,741		 Total
2021
£
4,027,729
80,553
325,576
102,388
166,151
205,606
9,215
148,288
22,980
-
147,358
80,173
34,217
(630)
192,265
70,311
65,528
77,510
45,303
6,543,996 30 6,544,026 5,800,521

All expenditure for the current and prior year is in respect of the furtherance of the charitable activities of which £30 (2021 - £35) was attributable to restricted funds and £6,480,138 (2021 - £5,800,486) was attributable to unrestricted funds.

Included within school operating costs are school activities and trips, governance costs (note 6) and school finance costs (note 9), which have been disclosed separately on the Statement of Financial Activities.

Page 21

Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2022 (continued)

6. Governance Costs

Unrestricted Restricted
funds funds Total Total
2022 2022 2022 2021
£ £ £ £
(note 10) 11,640 - 11,640 11,160

7. Staff Costs

The average monthly number of employees and full time equivalents (FTE) during the year was as follows:

Teachers
Administration
Auxiliary staff
Staff costs for above persons:
Wages and salaries
Social security costs
Other pension costs		 2022
Number
FTE
138
85
27
22
24
15
189
122		 2022
Number
FTE
138
85
27
22
24
15
189
122		 2021
Number
FTE
134
82
28
23
29
18
191
123
2022
2021
£
£
3,642,361
3,554,954
286,472
267,322
203,250
205,453
4,132,083
4,027,729		 2021
Number
FTE
134
82
28
23
29
18
191
123
2022
2021
£
£
3,642,361
3,554,954
286,472
267,322
203,250
205,453
4,132,083
4,027,729		 2021
Number
FTE
134
82
28
23
29
18
191
123
2022
2021
£
£
3,642,361
3,554,954
286,472
267,322
203,250
205,453
4,132,083
4,027,729
122 123
2021
£
3,554,954
267,322
205,453
4,027,729

There were three (2021: three) employees whose emoluments as defined for taxation purposes amounted to over £60,000. Their emoluments fell within the following bands: one £60,001 to £70,000 (2021: two), one £70,001 - £80,000 (2021: nil) and one £120,001 - £130,000 (2021: one).

Pension costs in respect of the above employees totalled £28,031 (2021: £26,768).

Defined contribution pension scheme

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in independently administered funds. Two (2021: two) higher paid employees are accruing benefits under the group defined contribution pension scheme and one (2021: one) employee has their pension contributions paid into a private pension scheme. The total pension costs charge to all schemes represents contributions payable by the Group and amounted to £203,250 (2021: £205,453).

Page 22

Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2022 (continued)

8.

The Governors do not receive any remuneration from the School, have no accruing pension arrangements and had no expenses reimbursed in either the year to 31 August 2022 or the previous financial year.

The total amount of employee benefits received by key management personnel is £481,782 (2021: £373,263). The Charity considers its key management personnel are the Senior Leadership Team.

9. Interest Payable

9.
Interest Payable
Bank loan Interest
10.
Total Resources Expended
Total resources expended on charitable activities includes:
Depreciation of tangible fixed assets
Amortisation of intangible fixed assets
- purchased goodwill
Surplus on disposal of tangible fixed assets
-audit services
Governance costs includes:
in respect of audit services
- for audit services
- for other services		 2022
£
13,336
2022
£
187,557
11,530
(1,680)
9,378
2022
£
11,640
9,378
21,018		 2021
£
12,859
2021
£
184,043
34,217
(630)
11,886
2021
£
11,160
11,886
23,046

Page 23

Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2022 (continued)

11.
Intangible Fixed Assets
Group and Company
Cost
At 1 September 2021
Disposals
31 August 2022
Amortisation
At 1 September 2021
Charged in the year
Elimination on disposals
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021		 Purchased
Goodwill
£
685,000
(685,000)
-
673,470
11,530
(685,000)
-
-
11,530

Page 24

Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2022 (continued)

12. Tangible Fixed Assets

Group
Cost or valuation
At 1 September 2021
Additions
Disposals
Transfer of Category
At 31 August 2022
Depreciation
At 1 September 2021
Charged in the year
Elimination on
disposals
At 31 August 2022
Net Book Value
At 31 August 2022
At 31 August 2021
Company
Cost or valuation
At 1 September 2021
Additions
Disposals
Transfer of category
At 31 August 2022
Depreciation
At 1 September 2021
Charged in the year
Elimination on
disposals
At 31 August 2022
Net Book Value
At 31 August 2022
At 31 August 2021		 Investment
properties
Freehold
properties
Fixtures,
fittings,
vehicles &
equipment
Assets
under
construction
Total
£
£
£
£
£
219,162
5,696,279
2,340,905
302,835
8,559,178
-
137,504
104,206
-
241,710
-
-
(2,861)
-
(2,861)
-
215,447
87,388
(302,835)
-
219,162
6,049,230
2,529,638
-
8,798,030
-
1,588,372
2,083,213
-
3,671,585
-
56,717
130,840
-
187,557
-
-
(2,861)
-
(2,861)
-
1,645,089
2,211,192
-
3,856,281
219,162
4,404,141
318,446
-
4,941,749
219,162
4,107,907
257,692
302,835
4,887,596
219,162
2,568,344
2,340,905
302,835
5,431,246
-
137,504
104,206
-
241,710
-
-
(2,861)
-
(2,861)
-
215,447
87,388
(302,835)
-
219,162
2,921,295
2,529,638
-
5,670,095
-
494,545
2,083,213
-
2,577,758
-
45,959
130,840
-
176,799
-
-
(2,861)
-
(2,861)
-
540,504
2,211,192
-
2,751,696
219,162
2,380,791
318,446
-
2,918,399
219,162
2,073,799
257,692
302,835
2,853,488

Page 25

Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2022 (continued)

12. Tangible Fixed Assets (continued)

i) On an historical cost basis the freehold property would be included at:

Cost
Depreciation		 Group
2022
2021
£
£
5,519,752
5,304,305
(1,604,591)
(1,547,874)
3,915,161
3,756,431		 Company
2022
2021
£
£
2,689,760
2,474,313
(530,503)
(484,544)
2,159,257
1,989,769		 Company
2022
2021
£
£
2,689,760
2,474,313
(530,503)
(484,544)
2,159,257
1,989,769
1,989,769

Freehold land and buildings at 241 Birmingham Road, Wylde Green were re-valued during the year ended 31 August 1995 at open market value with vacant possession by Weatherall, Green & Smith, independent chartered surveyors. The Governors are satisfied that this valuation remains appropriate, and currently have no intention to perform further revaluations.

The transitional rules set out in FRS 102 icable in the UK and were applied on implementation of FRS 102. Accordingly, the book values at implementation have been retained as deemed cost. The Governors are aware of their responsibilities to ensure that there has been no impairment to the value at which the properties are included in the financial statements. Based on advice and enquiry of appropriate professionals the Governors are confident that the value of the freehold properties at the date of transition to FRS 102 is not impaired and the ultimate market value exceeds the book values retained at implementation of FRS 102.

ii) On a historical cost basis the investment property would be included at:

Cost
Depreciation		 Group
2022
2021
£
£
219,162
219,162
-
-
219,162
219,162		 Company
2022
2021
£
£
219,162
219,162
-
-
219,162
219,162		 Company
2022
2021
£
£
219,162
219,162
-
-
219,162
219,162
219,162

In accordance with the requirements of FRS 102, but contrary to the requirements of the Companies Act 2006, investment properties are not depreciated. Instead, their ongoing current value is reviewed annually, which the Governors consider necessary in order to show a true and fair view.

The property was acquired in 2005 and is stated at cost. The Governors consider that its current market value at 31 August 2022 is in excess of its accounts carrying value.

Page 26

Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2022 (continued)

13. Investment

The investment represents 950,000 £1 ordinary shares acquired at par in Highclare Investments Limited, (company registered number 02963934) a wholly owned subsidiary. Highclare Investments Limited also has a wholly owned subsidiary, Highclare Limited, (company registered number 02963938) in which it holds 900,000 £1 ordinary shares again acquired at par. The principal activity of both subsidiaries is property ownership and management and both are incorporated in England.

Summary
profit
and
loss
account
Turnover
Administrative expenses
Net loss for the year and
Retained in the subsidiary
The assets and liabilities of the
subsidiaries were:
Fixed assets
Current assets
Creditors: Amounts falling due
within one year
Total net assets
Aggregate share capital and
reserves
14.
Debtors
Due within one year:
Outstanding fees
Amounts owed by subsidiary
undertakings
Other debtors
Prepayments		 Highclare Investments
Limited
2022
2021
£
£



-
-

(4,756)
(8,529)


(4,756)
(8,529)



2,048,350
2,053,106
2
28

(1,331,811)
(1,331,837)
716,541
721,297
716,541
721,297		 Highclare
2022
£
-
(5,999)
(5,999)
875,000
3
(873,488)
1,515
1,515		 Limited
2021
£
-
(35,025)
(35,025)
880,999
29
(873,514)
7,514
7,514
Group
2022
2021
£
£
4
922
-
-
93,551
12,843
67,587
70,476
161,142
84,241		 Company
2022
2021
£
£
4
922
2,205,299
2,205,351
93,551
12,843
67,587
70,476
2,366,441
2,289,592
2,289,592

Page 27

Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2022 (continued)

15. Creditors: Amounts falling due within one year

Bank loans
Trade creditors
Fees in advance
Other taxation and social security
Other creditors
Accruals
Friends of Highclare School Fund		 Group
2022
2021
£
£

85,899
85,899
181,262
75,819
759,098
741,456
67,269
65,883
396,895
397,048
560,496
473,042
4,489
478


2,055,408
1,839,625		 Company
2022
2021
£
£
85,899
85,899
181,262
75,819
759,098
741,456
67,269
65,883
396,895
397,048
560,496
473,042
4,489
478


2,055,408
1,839,625

In the year, Friends of Highclare School have contributed outdoor benches, across all sites, for the well-being of pupils, staff and visitors.

Bank loans and overdrafts are secured by a fixed charge over book debts and a floating charge over all other assets of the Group, together with mortgages over certain freehold properties.

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

Bank loans
Maturity of borrowings
Bank loans
Amounts fall due on the bank loans
as follows:
Within one year
Between one and two years
Between two and five years
Over five years		 Group
2022
2021
£
£
640,572
726,470
Group
2022
2021
£
£


85,899
85,899
85,899
85,899
257,697
257,697
296,976
382,874
726,471
812,369		 Company
2022
2021
£
£
640,572
726,470
Company
2022
2021
£
£
85,899
85,899
85,899
85,899
257,697
257,697
296,976
382,874
726,471
812,369

Page 28

Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2022 (continued)

Bank loans for the group and company include the following:

17. Operating leases

At 31 August 2022, the School was committed to making the following payments under noncancellable operating leases. These commitments are analysed as follows:

Other
Within one year
Between one and five years
Over five years		 Group
2022
2021
£
£
48,088
47,120
182,330
32,000
128,000
136,000
358,418
215,120		 Company
2022
2021
£
£
48,088
47,120
182,330
32,000
128,000
136,000
358,418
215,120		 Company
2022
2021
£
£
48,088
47,120
182,330
32,000
128,000
136,000
358,418
215,120
215,120

Included in the operating leases disclosure above is a twenty-five year tenancy lease with Birmingham City Council signed on 6 September 2018

this agreement, there is a five yearly rent review.

18. Contingent liabilities

In the event that bank borrowings arise, the Company has guaranteed the bank borrowing of the other Group undertakings.

Page 29

Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2022 (continued)

19. Funds Reconciliation

Group

Restricted funds
Unrestricted funds
Revaluation
reserve
Total funds
Company
Restricted funds
Unrestricted funds
Revaluation
reserve
Total funds		 As at 1
September
2021
£
694
4,335,273
351,476
4,687,443
As at 1
September
2021
£
694
5,723,907
84,030
5,808,631		 Income
£
-
6,618,206
-
6,618,206
Income
£
-
6,618,206
-
6,618,206		 Expenditure
£
(30)
(6,543,996)
-
(6,544,026)
Expenditure
£
(30)
(6,533,253)
-
(6,533,283)		 Transfers
£
-
-
-
-
Transfers
£
-
-
-
-		 As at 31
August
2022
£
664
4,409,483
351,476
4,761,623
As at 31
August
2022
£
664
5,808,860
84,030
5,893,554

Fund descriptions

a) Unrestricted funds

The unrestricted funds are retained as necessary to meet the general requirements of the School. The Charity aims to retain consolidated unrestricted reserves equivalent to the carrying value of the tangible fixed assets, which amount to £4,941,749 as at 31 August 2022 (2021: £4,887,596) as a contingency in order to maintain the stable operation of the School in the case of future unforeseen events. It remains the objective of the Board of Governors for the reserves to continue to increase until this minimum target is met and through careful management and control of operational costs. The unrestricted reserves have been maintained at the year-end. Consolidated unrestricted reserves at 31 August 2022 amounted to £4,760,959 (2021: £4,686,749), as shown in the notes above.

b) Restricted funds

During the year, no donations (2021: £300) were received and prizes of £30 (2021: £35) were awarded. The remaining restricted funds £664 (2021: £694) relate to donations received for prize funds at Seniors Speech Day and for use by the Music, Modern Foreign Language and Physical Education departments.

c) Revaluation reserve

The revaluation reserve represents unrealised surpluses on the revaluation of fixed assets to market value in prior years. An amount is transferred to the unrestricted fund each year on the same basis that the asset is depreciated.

Page 30

Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2022 (continued)

20. Analysis of net assets between funds

Group
Fund balances at 31 August 2022 are
represented by:
Tangible fixed assets
Current assets
Current liabilities
Long term liabilities
Total net assets
Unrealised gains included above on tangible
fixed assets
Company
Fund balances at 31 August 2022 are
represented by:
Tangible fixed assets
Investment
Current assets
Current liabilities
Long term liabilities
Total net assets
Unrealised gains included above on tangible
fixed assets		 Unrestricted
funds
£
4,941,749
2,515,190
(2,055,408)
(640,572)
4,760,959
351,476
Unrestricted
Funds
£
2,918,399
950,000
4,720,471
(2,055,408)
(640,572)
5,892,890
84,030		 Restricted
Funds
£
-
664
-
-
664
-
Restricted
Funds
£
-
-
664
-
-
664
-		 Total
Funds
£
4,941,749
2,515,854
(2,055,408)
(640,572)
4,761,623
351,476
Total
Funds
£
2,918,399
950,000
4,721,135
(2,055,408)
(640,572)
5,893,554
84,030

Page 31

Highclare School Notes to the Consolidated Financial Statements for the Year Ended 31 August 2022 (continued)

21. Reconciliation of net income to net cash flow from operating activities

Net income for year
Rents received from Investment properties
Depreciation of tangible fixed assets
Surplus on disposal of tangible fixed assets
Amortisation of intangible fixed assets
Interest payable
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Net cash flow from operating activities		 2022
£
74,180
(8,250)
187,557
(1,680)
11,530
13,336
(76,901)
215,784
415,556		 2021
£
23,030
(8,250)
227,439
(630)
34,310
12,859
103,596
89,118
481,472

22. Transactions involving Governors

During the year under review no new transactions were made or committed to concerning contracts may have an interest.

During the financial year ending 31 August 2022, £13,725 (2021: £nil) was invoiced by Jon Flowith & Partners. The fees related to building, planning and other complex strategic property matters for the school. Mrs Louise Flowith, the Chair of Governors and a partner in that consulting practice, absented herself from discussions and instructions to the partnership, which were given expressly to her husband Jon Flowith, a Chartered Surveyor, by designated Governors. All transactions were This amount was paid in the year ending 31 August 2022. An additional £12,000 has been accrued in respect of the work done prior to the year end but not yet invoiced.

As part of its insurances the Group maintains cover for the Governors and officers against liabilities in relation to their duties to the School. The cost for 2022 was £2,864 (2021: £2,767).

23. Related party transactions

There is no controlling party. The Company has taken advantage of the exemptions not to disclose intra-group transactions on the basis that all subsidiaries are 100% owned and all transactions with other Group companies are eliminated in the consolidated financial statements.

Page 32