HALLFIELD SCHOOL TRUST
(A company limited by Guarantee)
THE GOVERNORS’ ANNUAL REPORT AND FINANCIAL STATEMENTS
31 AUGUST 2021
Company Number: 00631045 Charity Number: 528956
HALLFIELD SCHOOL TRUST CONTENTS
| Page | |
|---|---|
| Governors’ Annual Report | 3 |
| Reference and administrative information | |
| Governors’ Annual Report | 4 |
| Strategic Report | |
| Governors’ Annual Report | 11 |
| Structure, Governance and Management | |
| Report of the Independent Auditors | 14 |
| Statement of Financial Activities | 18 |
| Balance Sheet | 19 |
| Cash flow Statement | 20 |
| Notes forming part of the Financial Statements | 21 |
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HALLFIELD SCHOOL TRUST
GOVERNORS’ ANNUAL REPORT REFERENCE AND ADMINISTRATIVE INFORMATION
The Directors and Trustees are pleased to present their report for the year ended 31 August 2021.
Charity Name Hallfield School Trust Charity Registration Number 528956 Company Registration Number 00631045 Registered Office 48 Church Road Edgbaston Birmingham B15 3SJ
Governors
The Governors who served during the year and up to the date of this report are set out below:
T Venner (Chairman)[4,5,8 ] P L Clague[2,9 ] P Gough[1,8] S Stotts (Vice Chair)[5,6,7] H Coverdale[2,6 ] M R Plummer[4 9] D Ahuja[4,7, 10 ] G M Faber[3,6,8 ] D R Price[3] S Aulak[1,4,8] K Feist[3,6,7 ] A S Sherlock[2,3,5,7]
S Aulak, P Clague, P Gough and M R Plummer retire by rotation and being eligible offer themselves for re-election.
1 Finance and Facilities Committee 6 Compliance Committee 2 Education Committee 7 Parent of former pupil 3 Human Resources and Legal Committee 8 Old Hallfieldian 4 Marketing Committee 9 Appointed 22nd January 2021 5 Nominations Committee 10 Resigned 22nd September 2021
The Chairman and Vice Chair are ex-officio members of each of the Committees.
Executive Team from 1 September 2021
K B Morrow BA (Hons) QTS, - Head Master PGCPS(Ed), NPQH, FRSA T Butcher BA (Hons) - Deputy Head (Head of Prep) C Florida-James B Ed (Hons) - Deputy Head (Academic) E Sanderson B Ed (Hons) QTS - Deputy Head (Head of Pre-Prep) S Bowron BSc ACA - Director of Finance and Operations D Tinkler - Head of Estates and Facilities
Auditors Bankers Solicitors Crowe U.K. LLP Barclays Bank Plc Veale Wasbrough Vizards LLP Black Country House 38 Hagley Road Narrow Quay House Rounds Green Road Edgbaston Narrow Quay Oldbury Birmingham Bristol B69 2DG B16 8PE BS1 4QA
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HALLFIELD SCHOOL TRUST GOVERNORS’ ANNUAL REPORT STRATEGIC REPORT
Achievements and Performance
Despite the continued challenges of the Coronavirus Pandemic, the year ended 31 August 2021 was another exceptional one for Hallfield School, both inside and outside the classroom, with regard to academic results and all round achievement.
Continued restrictions and enforced closure due to the Coronavirus Pandemic
The academic year began with all children being able to return to school and we greeted them with an especially warm welcome. The children were kept in year group bubbles, as per government guidance, but the school continued to operate with its usual enthusiasm.
The Governors sub-committee created in the previous year to co-ordinate the School’s approach during the Coronavirus Pandemic continued to meet fortnightly (or more frequently when necessary) with management throughout the first two terms to ensure the school responded to the changing risk profile effectively and efficiently. The Governors would again like to record their deep gratitude to the Senior Leadership Team and all staff for their dedication and support during these unprecedented times.
When the second enforced school closure happened on 4th January, the School responded immediately to the situation reverting to its well tested on-line timetable at the start of the Spring Term with a combination of live and pre-recorded lessons and activities. Our children reverted to these alternative ways of learning exceptionally well.
The School re-opened to all children in accordance with government guidance on 8[th] March. Again, we welcomed the children back with a fun packed day to smooth them back into face to face learning.
To help support our children who were due to sit 11+ examinations and entrance exams for selective independent schools, we offered a free week of support and tuition on these studies during the Easter holidays for our year 5 pupils, to ensure there were able to perform to the best of their abilities in their upcoming examinations.
Parents have been very supportive of the School and highly complimentary of the standard of education delivered throughout the past year managing the implications of the pandemic and the relative normality it has continued to provide to our pupils during uncertain times.
Academic
The year ended 31 August 2021 was outstanding for the 11+ examination results. These were sat in the Autumn Term of 2020, with these children only having been able to return to school a few weeks previously. To help support them with these examinations, we offered two weeks of free summer school to ensure the children felt confident they were well prepared. There were 55 10-11 year olds (54 last year) entering both the select Local Authority Grammar schools and select independent schools. Our Year 6 pupils left us to go to 10 different schools in the Birmingham area, and further afield with some choosing to stay with us and continue their education in Hallfield Seniors.
During the Autumn Term, 49 pupils sat the King Edward VI Foundation Grammar and local grammar school examinations. They were offered a total of 45 places (92% success rate).
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HALLFIELD SCHOOL TRUST GOVERNORS’ ANNUAL REPORT STRATEGIC REPORT
Academic (continued)
This year sees outstanding results for the two highly selective independent schools – King Edward’s and King Edward VI High School for Girls – 27 boys (2020: 22 boys) have been offered places (including 7 scholarships (2020: 6 scholarships)) at King Edward’s School and 14 girls (2020: 10 girls) have been offered places (including 3 scholarships (2020: 1 scholarship) at King Edward VI High School for Girls. 14 places were offered at Solihull School (2020: 18 places) and 16 places (2020: 14 places) at Edgbaston High School for Girls (including 16 scholarships (2020: 7 scholarships)) and a total of 38 scholarships (2020: 24 scholarships) were awarded.
In the National Primary Schools Maths Challenge, 11 children earned a Gold medal, 25 gained a Silver medal and 26 a Bronze medal, with 8 pupils qualifying for the Bonus round. In the Bonus round, 3 children achieved a Gold certificate, 1 child achieved a Silver certificate and 1 achieved a Bronze certificate.
Music
Our commitment to Music continued with our expansion of the Year 3 Sponsored Lessons Scheme in September 2020. The choice of instruments broadened greatly to include violin, cello, flute, oboe, clarinet, bassoon, cornet and horn. Despite Covid restrictions meaning that lessons migrated online when necessary, every pupil in Year 3 entered their Prep Test Exam in the summer term and passed. A real passion for music has developed and over two thirds of the year group registered to continue learning their instrument in September 2021.
All pupils in Years 3 to 7 had the opportunity to sing outside the classroom in a Year Group Choir. Membership to all the choirs was very high and illustrates a renewed interest in singing as an important aspect of musical life at Hallfield.
Despite the second lockdown and resultant school closure, the Music Department maintained its offer of weekly instrumental and vocal lessons by migrating lessons online. Pupils made good progress during this period and some entered and passed ABRSM and Trinity exams.
Our Tea-Time Concert series continued with the performers being filmed and a full concert being released online. We experimented further with filming and recording and filmed “A Hallfield Christmas” showcasing our Year Group Choirs. Every child from Foundation to Year 7 rehearsed and recorded four songs at the end of the academic year which were then released to parents.
Sport
Sport remains a very important part of life at Hallfield, despite the implications of the pandemic restricting the number of fixtures. Luckily, there was some normality in the summer term with pupils being able to play a number of competitive cricket matches.
With children remaining in their year group bubbles to restrict the impact of the pandemic, the overall range and number of activities had to be reduced but these were well attended before school, at lunch time or after school. Nevertheless, new clubs such as kick boxing and fitness have been added to the schedule. Working with an external provider, Complete Cricket, we were able to coach many children after school and the interest in the sport from both boys and girls has continued to grow.
There were approximately 20 children who have represented at county, regional or national level in Chess, Squash, Tennis, Weightlifting, Cricket, Choi Kwang Do, Cross-Country and Football.
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HALLFIELD SCHOOL TRUST GOVERNORS’ ANNUAL REPORT STRATEGIC REPORT
Extra-curricular activities
Our hardworking staff were particularly dedicated to offering extra-curricular activities after school despite the restrictions of operating in year group bubbles. Our broadest offering yet comprised in excess of forty different activities for children to choose from. Once restrictions for day trips were removed in the summer term, we took each year group on an action-packed activity day to a venue to allow the children to develop their team-working skills.
Financial Review
Review of Transactions and Financial Position
The Governors are pleased to report an incredibly strong financial performance, achieving a surplus for the year of £992,837. This represents a significant increase from the surplus of £598,837 reported in 2020. The Governors felt the need to build reserves during an uncertain year but believe that a surplus in the region of £600,000 ought to be achieved annually to support future capital investment.
The Governors recognised that many parents’ lives continued to be affected during the pandemic and that this resulted in a huge strain on the personal finances of some families. Accordingly, we continued to offer flexible payment options, including interest-free monthly options and payment deferments based on individual financial circumstances. Approximately 35 families opted for support again this year. On the introduction of a second national lockdown, we responded with reduced fees for the eight-week period that school was unable to be fully open of a discount of 15% to pupils that did not attend and 5% to those that did. This enabled the School to continue to focus on our core offering of exceptional education and pastoral care whilst ensuring the financial viability of the school. The discounts offered, predominately in the spring term, amounted to £140,052.
During the enforced closure, as we remained open to Key Worker children, we were able to claim £8,354 of sustainability funding from Birmingham City Council towards the disproportionate operating costs of wraparound care faced during the closure period.
Costs continued to be tightly controlled and discretionary expenditure was targeted at priority areas during the first two terms to ensure the children enjoyed the best experience possible during the most restricted periods of the Pandemic. During the enforced closure in the spring term, we remained open to much higher numbers of Key Worker children. This meant there were fewer opportunities to furlough our highly dedicated support staff this year. For the year ended 31[st] August, 2021 the School claimed £84,521 of support from the Coronavirus Job Retention Scheme.
Opportunities to continually improve the facilities were focused on this year and significant capital investment of £668,485 was incurred. The start of the year saw the opening of the newly created Design Technology room and newly refurbished ICT suite. During the year, a multi-gym and fitness suite was opened for the benefit of our older pupils. Outside play spaces were improved with the introduction of an all-weather play area for our youngest children in Hallfield first at Easter and the creation of a new play area for Pre-Prep children over the summer holidays. The summer term saw the start of our long awaited new kitchen and bistro project, which will see the introduction of a new central dining space in the autumn term of 2021. Work also commenced on our new Food Technology room which will place food and nutrition at the heart of the curriculum too. Throughout the year, there was significant further investment in IT devices to support the combination of face to face and on-line learning which has epitomised the past eighteen months.
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HALLFIELD SCHOOL TRUST GOVERNORS’ ANNUAL REPORT STRATEGIC REPORT
Review of Transactions and Financial Position (continued)
During the summer term, the School undertook a review of the catering team structure to address the revised needs of the School as it moves towards a single kitchen and dining room. This ultimately resulted in 4 staff being made redundant at a cost of £21,081.
Pupil Numbers
The number of children, expressed in terms of full time equivalents (FTEs), attending the School increased during the academic year, rising to 543 in the summer of 2021. We attract pupils through the quality of the education the school delivers including sporting, cultural, social and personal development as well as academic excellence. We focus on developing the talents of each child to reach their full potential.
Fundraising
The charity had no fundraising activities requiring disclosure under s.162A of the Charities Act 2011.
Objectives and Aims
The primary object of the Trust is to manage, maintain and improve Hallfield School. Its aim is to operate the most educationally successful independent co-educational junior and infant school in the Birmingham area, providing the highest standard of day care and education for children aged 3 months to 13 years old. The school aims to prepare children for competitive entry to local secondary schools in the state and independent sectors. It offers a rounded foundation for children under the age of 5 and a particularly academic, subject-based education for 7 to 13 year olds, also encouraging development of personal, sports, social, spiritual, musical and artistic skills.
The Achievements and Performance as shown above, demonstrate the School’s continued meeting of its objectives and aims.
Specific Plans for 2021/2022
The School plans to continue to progress capital and maintenance spending plans in accordance with its Hallfield Futures plan prudently in order to:
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continue to develop the strategic planning for the School and its facilities;
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create a single kitchen and dining space for all children in the heart of the school;
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create new foundation classrooms to create a single building catering for all children in the EYFS; and
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continue to re-develop the external play areas in the Pre-Prep.
Charities Act 2011 and Public Benefit
The Trustees have considered the Charities Act 2011 on public benefit and have had due regard for Charity Commission Guidance on the subject.
The school is committed to funding the education at Hallfield of members of the local community who would not normally be in a position to afford the school fees but who demonstrate at assessment that they would benefit from the educational environment that Hallfield offers. The School has limited reserves and the assisted places scheme is funded through revenues generated by the School and not through investment income.
The Assisted Places Scheme, awarding bursaries for fees to families with household incomes of less than £16,190 p.a., commenced in 2008/09. During the 2020/21 year, it funded the education at Hallfield of 14 pupils. The value of this funding was £122,533 (2020: 12 pupils costing £119,324).
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HALLFIELD SCHOOL TRUST GOVERNORS’ ANNUAL REPORT STRATEGIC REPORT
Charity Governance Code
The Governors are aware of the new guidance and during the year have continued their review to produce recommendations and an action plan in order to ensure that the school takes positive steps towards working in line with the Code in all ways where it is practicable to do so.
Investment Policy
Due to the nature of the Trust’s activities, surplus funds are not held for long periods of time and are not therefore available for long-term investment. Accordingly, its policy is to invest such funds in deposit accounts offering a market rate of interest. The investment policy also requires deposits to be spread across a range of institutions in order to reduce the risk of capital loss.
Reserves Policy
The School’s reserves policy relates to unrestricted readily realisable reserves freely available to be spent on the charity’s purposes which are held to ensure that the core activities of the school could continue in the event of a period of unforeseen difficulty. Accordingly, the Governors consider that free reserves should be held in cash or assets which can be easily convertible into cash should the need arise.
A sum of £500,000 remains designated for future major development of the school site, in excess of routine capital expenditure.
The assessment of the required level of reserves is an integral part of the School’s planning and forecasting cycle and takes account of expected changes in the economic environment, demographic changes in the school’s catchment area, expected operating results and associated risk factors.
Historically, the major risk considered in this respect is a shortfall of annual income, but consideration has also been given to unexpected expenditure of both a routine and an unusual nature, and situations out of our control.
Last year’s unprecedented impact of the Coronavirus Pandemic on our parent body prompted a review of the level of reserves required to sustain the Charity through these uncertain times. Taking account of these risks, the Governors continue to believe that reserves held should steadily be increased over a period of one to two years to equate to one term’s expenditure which ranges between £1,500,000 and £1,800,000. At 31 August 2021, the charity’s free reserves amounted to £1,758,727 (2020: £1,042,553).
Going concern
Given the uncertainty that the Coronavirus has created, the Governors have looked especially carefully at the financial implications for Hallfield School. The School is in the fortunate position of having cash reserves and no borrowings. Capital spending plans were temporarily put on hold, whilst government furlough allowances have enabled the Governors to offer both a fee reduction for the 2021 spring term and selective support to parents suffering short-term financial problems. Fees for the 2021-22 remained incredibly strong. After making appropriate enquiries, the Governors consider that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, continuing to adopt the going concern basis in preparing the financial statements is considered appropriate. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
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HALLFIELD SCHOOL TRUST GOVERNORS’ ANNUAL REPORT STRATEGIC REPORT
Remuneration policy
The remuneration of key management personnel is set by the governors, with the objective of providing appropriate incentives to encourage existing staff to stay, and to attract new staff when required.
The appropriateness of the policy is reviewed regularly by the governors, and also compared with other independent schools, to ensure that the school remains sensitive to the broader issues of pay and employment conditions elsewhere.
Strategic Risk Management
There are a number of Strategic Risks that the Governors are actively monitoring due to the significant level of impact they may have:
Coronavirus Pandemic and Economic Uncertainty
The impact on the economic climate, as a result of the Coronavirus pandemic and Brexit, may affect the ability of parents to afford school fees, and the affordability of fees is considered an important factor in the long term financial planning of the School. To support parents, fees were held at prior year levels for the 2020-21 academic year and only subject to a modest increase for the 2021-22 academic year.
In terms of unexpected costs, the Governors ensure that insurance is in place for known and insurable risks. In common with many organisations, the financial implications of the Coronavirus pandemic was not covered by our business interruption insurance. With a large estate, the School also monitors and plans for foreseeable future building repairs. The management team also monitor carefully the level of scholarships and bursaries to ensure that grant commitments are maintained at a sustainable level.
Teacher Pensions
September 2019 saw an increase in the Employer Contribution rate to the Teacher Pension Scheme from 16.48% to 23.68%. This 7% increase is a substantial additional burden to our cost base. Management and the Board are actively considering options if potential further increases in contribution rates follow in the coming years, make remaining in the Scheme unaffordable.
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HALLFIELD SCHOOL TRUST GOVERNORS’ ANNUAL REPORT STRATEGIC REPORT
Operational Risk Management
Consideration has been given to the major risks to which the school is exposed and systems or procedures are established in order to manage those risks which include:
| Risk | Mitigating Factors | |
|---|---|---|
| Reduction in pupil headcount An unforeseen significant fall in pupil numbers could place the school under operational and financial pressure within an academic year. |
Regular parent drop-ins are held by the Senior Management Team to enable parents to provide feedback. Parent surveys ensure that concerns are identified and appropriate action is taken. The School maintains reserves to provide emergency funding. |
|
| Inspection Regime Failure The Independent School’s Inspectorate’s (“ISI”) Inspection regime changes regularly as legislation and statutory guidance are updated. |
We monitor changes to guidance and compliance. Senior members of our team are ISI inspectors and underwent an ISI inspection in February 2019, where the school was judged to be outstanding in all areas. |
|
| IT System Failure As with most modern businesses, the School is heavily reliant on Information Technology for its day to day operations. |
Cyber security risks are monitored closely and the school reviews processes regularly to try to mitigate against these. Off-site data back-ups help to protect vital information and would ease re-configuration should a failure occur. |
|
| Child Protection & Safeguarding Keeping children safe while they are at school or on an activity organised by the School is our highest priority. |
The School adheres to legislation and guidance on recruitment, child protection and Health & Safety. A “ring of steel” prevents entry to the site except at secure points. The School operates a CCTV system to help maintain site security. A Paxton key card security system was introduced in 2016 on all external doors and gates, and provides a lockdown environment. |
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| Natural and other disasters With over 500 pupils, the school is at risk from health epidemics, fire and flooding. |
Advice from a variety of professional bodies is constantly reviewed to ensure adherence to the latest Coronavirus guidance. A crisis management plan is in place which is tested periodically; the school has regular fire protection and safety audits. |
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HALLFIELD SCHOOL TRUST GOVERNORS’ ANNUAL REPORT
STRUCTURE, GOVERNANCE & MANAGEMENT
Governing Document
The Trust is a charitable company limited by guarantee. It was incorporated on 24 June 1959 and registered as a charity on 12 November 1963. Its Memorandum of Association, which established its objects and powers provide that in the event of it being wound up, members are required to contribute an amount not exceeding £1. Membership of the Trust is reviewed at the Annual General Meeting as appropriate. It is exempt from using “Limited” under s.60 of the Companies Act 2006.
The Board of Governors
Under the Articles of Association, the Board of Governors may appoint any member of Hallfield School Trust to be a Governor. New Governors are given appropriate induction about the school on appointment; Disclosure and Barring Service disclosures are sought in each case. Appointments are made to the Board primarily with a view to enhancing its skill base. None of the governors has any beneficial interest in the school and all serve without remuneration. Governors do not participate in decisions which involve a personal conflict of interest; in particular, governors who are also parents do not participate in pricing decisions in respect of future fee levels.
Governors are involved in on-going general and specific training according to their areas of responsibility. A tailored training programme was organised during the year where Governors received training on Safeguarding, Health & Safety and risk management. Governors are also encouraged to visit the school regularly, during the working day and for special events.
Under the Articles of Association one third of the Governors (or the nearest number to one third if their number is not divisible by three) must retire from office at each Annual General Meeting. At the Annual General Meeting held on 30 November 2007, provision was made to enable the number of governors to increase to a maximum of 15.
In accordance with normal commercial practice the school has purchased insurance to protect governors and officers from claims arising from negligent acts, errors or omissions occurring whilst on school business. The insurance provides cover up to £1m on any one claim and the cost for the year ended 31 August 2021 was £229 (2020: £296).
Committee Structure
Matters of policy and governance are determined by the Board normally at least once per term. In addition, the following committees consider policy issues in more detail and report to the Board accordingly:
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The Finance and Facilities Committee monitors capital expenditure, estates, catering and risk management together with management accounting and public reporting;
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The Education Committee is responsible for academic curriculum matters;
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The Marketing Committee is responsible for the admissions policy and marketing the school;
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The Human Resources and Legal Committee is responsible for human resource policy and various legal matters;
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The Compliance Committee is responsible for ensuring compliance with educational, health and safety, child protection and financial statutes, regulations and recommended practice;
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The Nominations Committee meets on an ad hoc basis to review the composition of the Board of Governors and to recommend changes according to the requirements for appropriate skills and experience.
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HALLFIELD SCHOOL TRUST GOVERNORS’ ANNUAL REPORT STRUCTURE, GOVERNANCE & MANAGEMENT
Executive Team
The Governors are responsible for the overall management of the school but delegate its day-to-day running to the Head Master, the Director of Finance and Operations (both of whom normally attend the above meetings) and other members of the Executive Team.
Compliance with laws and regulations
The school is subject to inspection by the Independent Schools Inspectorate and is regulated by Ofsted for children under the age of three. The school pro-actively manages its legal compliance in respect of education, nursery provision, child protection, health and safety, and various financial, administrative and regulatory matters. As a charitable company, the school is regulated by the Charity Commission and by the Registrar of Companies. The school maintains a Register of Interests in respect of members of the Board of Governors.
Related Parties
Hallfield School is affiliated to the Independent Association of Preparatory Schools. Professional support is also specifically available from the Independent Schools’ Bursars Association, the Independent Schools Council and the Association of Governing Bodies of Independent Schools. The members of the Friends of Hallfield provide greatly valued voluntary effort and funding.
Statement of Governors’ Responsibilities
The governors (who are also the directors and the Trustees of Hallfield School Trust for the purposes of company law and charity law respectively) are responsible for preparing the Governors’ Report, including the strategic report, and the financial statements in accordance with applicable law, and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Charities SORP.
Company law requires the governors to prepare financial statements for each financial year. Under that law, the governors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law. Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the governors are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
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HALLFIELD SCHOOL TRUST GOVERNORS’ ANNUAL REPORT STRUCTURE, GOVERNANCE & MANAGEMENT
Statement of Governors’ Responsibilities (continued)
The governors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time, the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The governors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.
Provision of information to auditors
In so far as the governors are aware:
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there is no relevant audit information of which the charitable company's auditors are unaware; and
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the governors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
Auditors
Crowe U.K. LLP continue to act as auditors.
Approved by the governors on 20[th] December, 2021 and signed on their behalf by:
T Venner Chairman of Governors
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HALLFIELD SCHOOL TRUST
Independent Auditor’s Report to the Members of Hallfield School Trust
Opinion
We have audited the financial statements of Hallfield School Trust (‘the charitable company’) for the year ended 31 August 2021 which comprise the Statement of Financial Activities, Balance Sheet, 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:
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give a true and fair view of the state of the charitable company’s affairs as at 31 August 2021 and of its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
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HALLFIELD SCHOOL TRUST
Independent Auditor’s Report to the Members of Hallfield School Trust
Other information
The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion based on the work undertaken in the course of our audit
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the information given in the governors’ report, which includes the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the strategic report and the governors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.
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:
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adequate and proper accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
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HALLFIELD SCHOOL TRUST
Independent Auditor’s Report to the Members of Hallfield School Trust
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context were The Education (Independent School Standards) Regulations 2014, General Data Protection Regulation (GDPR), Health and Safety legislation and employment legislation.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance & General Purpose Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, Independent Schools Inspectorate and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of
Page 16
HALLFIELD SCHOOL TRUST
Independent Auditor’s Report to the Members of Hallfield School Trust
non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.
Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Helen Drew
Senior Statutory Auditor
For and on behalf of
Crowe U.K. LLP
Statutory Auditor
Black Country House Rounds Green Road Oldbury B69 2DG
20 December 2021
Page 17
HALLFIELD SCHOOL TRUST
STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income and Expenditure Account) Year ended 31 August 2021
| 2021 2021 Unrestricted Restricted Funds Funds Note £ £ Income and endowments from: Donations and legacies 9,843 2,304 Investment income 3 1,021 33 Charitable activities 4 6,793,698 (523) Total income and endowments 6,804,562 1,814 Expenditure on: Charitable activities 5 5,812,232 1,307 Total expenditure 5,812,232 1,307 Net income / (expenditure) for the year 992,330 507 Reconciliation of funds: Funds brought forward at 1 September 2020 6,693,165 45,945 Total funds carried forward at 31 August 2021 7,685,495 46,452 |
2021 Total Funds £ 12,147 1,054 6,793,175 6,806,376 5,813,539 5,813,539 992,837 6,739,110 7,731,947 |
2020 Total Funds £ 10,549 9,511 6,488,952 6,509,012 |
|---|---|---|
| 5,910,175 5,910,175 598,837 6,140,273 6,739,110 |
There were no recognised gains or losses for 2021 or 2020 other than those included in the statement of financial activities. All income and expenditure relates to continuing operations.
The notes on pages 21 to 35 form part of these financial statements.
Page 18
HALLFIELD SCHOOL TRUST BALANCE SHEET Company Number: 00631045 as at 31 August 2021
| Note £ |
Note £ |
2021 | 2020 | |
|---|---|---|---|---|
| £ | £ | £ | ||
| Fixed assets | ||||
| Intangible Assets 7 |
819 | 117 | ||
| Tangible assets 8 |
4,880,035 | 4,600,190 | ||
| 4,880,854 | 4,600,307 | |||
| Current assets | ||||
| Debtors due after more than one year 9 746,927 |
755,372 | |||
| Debtors due within one year 9 274,847 |
251,133 | |||
| Stock 16,592 |
20,090 | |||
| Cash at bank and in hand 3,201,679 |
2,208,970 | |||
| 4,240,045 | 3,235,565 | |||
| Creditors:amounts falling due within | ||||
| oneyear 10 (1,183,547) |
(887,303) | |||
| Net current assets | 3,056,498 | 2,348,262 | ||
| Total assets less current liabilities | 7,937,352 | 6,948,569 | ||
| Creditors:amounts falling due after more than one year 10 |
(205,405) | (209,459) | ||
| 7,731,947 | 6,739,110 | |||
| Restricted funds 12 |
46,452 | 45,945 | ||
| Unrestricted funds 13 |
7,685,495 | 6,693,165 | ||
| 7,731,947 | 6,739,110 | |||
The financial statements were approved by the Governors on 20th December, 2021 and signed on their behalf by
T Venner Chairman of Governors
Page 19
HALLFIELD SCHOOL TRUST
CASH FLOW STATEMENT Year ended 31 August 2021
| Reconciliation of net income to net cash flow from operating activities Net income for the year Interest receivable Depreciation and amortisation of fixed assets Profit on disposal of fixed assets Decrease / (Increase) in stock (Increase) in debtors Increase / (Decrease) in creditors Net cash flow from operating activities Cash flow from investing activities Proceed from the sale of fixed assets Payments to acquire fixed assets Interest received Net cash flow from investing activities Net increase in cash and cash equivalents Cash and cash equivalents at 1 September Cash and cash equivalents at 31 August Cash and cash equivalents consists of: Cash at bank and in hand Analysis of changes in net debt Balance at 1 September 2020 £ Cash 2,208,970 Total 2,208,970 |
2021 £ 992,837 (1,054) 387,244 (2,138) 3,499 (15,269) 292,190 1,657,308 2,832 (668,485) 1,054 (664,599) 992,709 2,208,970 3,201,679 3,201,679 Cash flow £ 992,709 992,709 |
2020 £ 598,837 (9,511) 344,790 - (3,839) (93,339) (209,065) 627,873 - (304,185) 9,511 (294,674) 333,199 1,875,771 2,208,970 2,208,970 Balances at 31 August 2021 £ 3,201,679 3,201,679 |
2020 £ 598,837 (9,511) 344,790 - (3,839) (93,339) (209,065) |
|
|---|---|---|---|---|
| 627,873 | ||||
| - (304,185) 9,511 |
||||
| (294,674) | ||||
| 333,199 | ||||
| 1,875,771 | ||||
| 2,208,970 | ||||
| 2,208,970 | ||||
Page 20
HALLFIELD SCHOOL TRUST
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021
1. Accounting policies
1.1 General information and basis of preparation
Hallfield School Trust is a charitable company limited by guarantee (registered number 00631045) which is incorporated and registered in England and Wales. Its charity registration number is 528956. In the event of the charitable company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 3 of these financial statements. The nature of the charity’s operation and principal activity is the provision of a co-educational day school for pupils between the ages of 3 months and 13 years.
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and Companies Act 2006.
Hallfield School Trust meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are prepared in sterling which is the functional currency of the charity.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
1.2 Going concern
The Governors assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the school to continue as a going concern. The Governors make this assessment in respect of at least one year from the date of authorisation for issue of the financial statements.
During the year, the Coronavirus pandemic has caused significant strains on businesses and charities of all types. Hallfield School has responded to the crisis adjusting teaching methods and staffing levels. There have been temporary reductions in salaries and national guidelines to safeguard pupils, parents and staff are being embraced. Fees were reduced for the 2021 spring term and significant capital spending was paused until spring 2021. With uncertainty over pupil numbers, forecasts and budgets have been stress-tested to assess how the School could cope under different scenarios. The Governors have concluded that the Company is well placed to cope with the continuing uncertainties and has adequate resources to continue providing first class education to its pupils for the foreseeable future.
After making appropriate enquiries, the Governors consider that the company has adequate resources to continue in operational existence for the foreseeable future and it is therefore appropriate to continue to adopt the going concern basis in preparing the financial statements.
Page 21
HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021
1. Accounting policies (continued)
1.3 Fund accounting
Restricted funds
Restricted funds represent grants and donations which are subject to restrictions on their expenditure imposed by the donor or through the terms of an appeal.
Unrestricted funds and designated funds
Unrestricted funds represent funds that are expendable at the discretion of the governors in the furtherance of the objects of the charitable company. Such funds may be held in order to finance both working capital and capital investment. Designated funds are those funds which are unrestricted in nature but which have been designated by the governors to be used in a particular manner.
1.4 Income recognition
All incoming resources are included in the Statement of Financial Activities when the charitable company is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. The following specific policies are applied to particular categories of income:
-
Fees and charges for services are accounted for in the period in which tuition and services are provided at the expected level of income. Fees which have been physically received in advance are treated as deferred income.
-
Other income is recognised as it is receivable.
-
Government grants are credited to the statement of financial activities as the related expenditure is incurred.
1.5 Expenditure
Expenditure is recognised on an accruals basis as a liability is incurred. The following specific policies are applied to particular categories of expenditure:
-
Rentals applicable to operating leases are charged to the Statement of Financial Activities over the period in which the cost is incurred.
-
Charitable expenditure comprises those costs incurred by the charitable company in the delivery of its activities and services for its beneficiaries.
-
All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity comprise both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
-
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charitable company and include audit fees and costs linked to the strategic management of the charitable company.
Page 22
HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021
1. Accounting policies (continued)
1.6 Leases
All leases are operating leases and the annual rentals are expensed on a straight line basis over the lease term with any deferred charges included within creditors. Lease premiums, including associated professional fees, are treated as prepayments and amortised on a straight line basis over the life of the lease with the unamortised balance disclosed within debtors due after more than one year.
1.7 Pensions
Retirement benefits to employees of the Hallfield School Trust who are qualified Teachers are provided by the Teachers’ Pension Scheme (‘TPS’). The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the school in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a prospective unit credit method. As stated in Note 11, the TPS is a multi-employer scheme and there is insufficient information available to use defined benefit accounting. The TPS is therefore treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which they relate.
The charity also contributes towards a defined contribution Group Personal Pension Plan for its non-teaching staff. Contributions payable for the year are charged in the Statement of Financial Activities.
1.8 Intangible fixed assets and amortisation
Intangible fixed assets comprise the licence cost of the School’s trademark. The asset is amortised over ten years on a straight line basis, this being the period covered by the licence.
1.9 Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less accumulated depreciation. Additions over £500 are capitalised. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Computer equipment - over four years Fixtures and equipment - over seven years Leasehold property - over the life of the lease or 50 years, whichever is the shorter Leasehold improvements - over 10 years Freehold buildings - over 50 years
Freehold land is not depreciated.
1.10 VAT
Value added tax is not recoverable by the charitable company, and as such is included in the relevant costs in the statement of financial activities and tangible fixed assets.
Page 23
HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021
1. Accounting policies (continued)
1.11 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 expenditure.
1.12 Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible into known amounts of cash with insignificant risk of change in value.
1.13 Financial instruments
The company enters into only basic financial instrument transactions that result in the recognition of financial assets and liabilities. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
2. Judgements in applying accounting policies and key sources of estimation uncertainty
The charitable company makes estimates and assumptions concerning the future. Management are also required to exercise judgement in the process of applying the charitable company’s accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:
Leases
All leases are deemed to be either operating or finance leases, depending on whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis based on an evaluation of the terms and conditions of the arrangements.
In particular, in relation to the school buildings leased from Calthorpe Estates a number of judgements have been made that result in the conclusion that the agreement constitutes an operating lease: the lease does not transfer ownership of the building to Hallfield School at the end of the lease, nor offers the option to purchase the buildings; the lease term (to 2110) has been assessed not to constitute the majority of the useful life of the buildings; the buildings are deemed not to be of such a specialist nature that they could not be used by an alternative lessor in the future.
Page 24
HALLFIELD SCHOOL TRUST
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021
3. Investment Income
| Investment Income | ||
|---|---|---|
| Bank Interest – Unrestricted Funds Bank Interest – Restricted Funds |
2021 £ 1,021 33 1,054 |
2020 £ 9,411 100 |
| 9,511 |
4. Income
| Income | |||
|---|---|---|---|
| Net incoming resources are stated after charging: Depreciation – (note 8) Amortisation – Intangible Asset (note 7) Amortisation – Lease Premium (note 9) Auditors’ remuneration – audit services (exclusive of VAT) Auditors’ remuneration – non-audit services (exclusive of VAT) Operating lease rental – plant, machinery & vehicles Income from Charitable Activities - Unrestricted School fees Less: Assisted Places Net Fee Income Other educational income Other ancillary income Government grants |
2021 £ 387,106 138 8,446 11,250 575 27,355 2021 £ 6,596,468 (122,533) 6,473,935 172,985 53,903 92,875 6,793,698 |
2020 £ 344,662 128 8,446 11,000 875 38,368 |
|
| 2020 £ 6,007,444 (119,324) |
|||
| 5,888,120 197,973 48,010 354,849 |
|||
| 6,488,952 |
Included in school fees is a grant awarded by Birmingham City Council to parents of 3 and 4 year old children which is collected by The School. This amounted to £276,040 (2020: £278,946) to provide up to 15 hours per week of free education to each pupil aged 3 or 4.
Included in government grants is £8,354 (2020: £50,900) which relates to a sustainability claim to cover exceptional costs incurred whilst remaining open to Key Worker children throughout January to March 2021 (2020: March to May 2020). There is also a further grant of £84,521 (2020: £303,949) in relation to the Coronavirus Job Retention Scheme for the period from September 2020 to August 2021 (2020: April to August, 2020).
Page 25
HALLFIELD SCHOOL TRUST
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021
5. Analysis of resources expended
5.1 Total expenditure
| Year ended 31 August 2021 Staff costs £ Charitable activities (note 6) Teaching 2,902,248 Welfare - Premises repair and maintenance 285,475 Support costs and governance 724,662 Grants and prizes - Total charitable expenditure 3,912,385 Year ended 31 August 2020 Staff costs £ Charitable activities (note 6) Teaching 3,190,607 Welfare - Premises repair and maintenance 251,660 Support costs and governance 752,693 Grants and prizes - Total charitable expenditure 4,194,960 5.2 Grants, awards and prizes From restricted funds Maths prize From unrestricted funds Flowers, prizes and leaving presents |
Other costs £ 296,922 407,120 554,115 238,293 9,015 1,505,465 Other costs £ 323,253 342,654 505,852 184,615 5,605 1,361,979 |
Depreciation £ 131,057 14,286 250,208 138 - 395,689 Depreciation £ 112,574 11,368 229,166 128 - 353,236 2021 £ 25 8,990 9,015 |
Total 2021 £ 3,330,227 421,406 1,089,798 963,093 9,015 |
|---|---|---|---|
| 5,813,539 | |||
| Total 2020 £ 3,626,434 354,022 986,678 937,436 5,605 |
|||
| 5,910,175 | |||
| 2020 £ 25 5,605 |
|||
| 5,630 |
Page 26
HALLFIELD SCHOOL TRUST
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021
5. Analysis of resources expended (continued)
- 5.3 Governance included in support costs
| 5.3 Governance included in support costs | ||
|---|---|---|
| Remuneration paid to auditor for audit services Reimbursement of personal expenses to governors – travel costs Other governance costs |
2021 £ 13,500 - 1,413 14,913 |
2020 £ 13,200 436 3,252 |
| 16,888 |
6. Staff costs and numbers
| Staff costs and numbers | ||
|---|---|---|
| Salaries and wages Social security Pension costs Agency staff costs |
2021 Total £ 3,177,261 269,158 444,251 3,890,670 21,715 3,912,385 |
2020 Total £ 3,392,084 266,712 472,858 |
| 4,131,654 63,306 |
||
| 4,194,960 |
Included within in salaries and wages is £329 (2020: £709) of childcare voucher administration charges associated with a salary sacrifice scheme for employees and staff termination costs of £23,094 (2020: £114,674). Termination costs of £3,869 (2020: £14,177) remain outstanding at the year-end. Also included within salaries and wages is £5,636 (2020: £7,717) of premiums for staff death in service benefit cover and £5,243 (2020: £5,505) of premiums for private healthcare cover for senior managers.
The total amount of employee benefits received by key management personnel, including employer pension contributions, is £566,153 (2020: £577,246). The Governors consider that the key management personnel comprise the Executive team.
The average number of employees during the year was:
| Teaching staff Teaching assistants and nursery nurses Domestic staff Office and management staff |
2021 No. 38 44 16 16 114 |
2020 No. 43 45 14 17 |
|---|---|---|
| 119 |
Page 27
HALLFIELD SCHOOL TRUST
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021
6. Staff costs and numbers (continued)
The table below shows details of employees who on an annualised basis received remuneration, including benefits but excluding employer pension contributions, in excess of £60,000:
| 2021 | 2020 | |
|---|---|---|
| No. | No. | |
| £60,001 - £70,000 | 2 | 1 |
| £80,001 - £90,000 | - | 1 |
| £90,001 - £100,000 | 1 | 1 |
| £140,001 - £150,000 | 1 | 1 |
The employees in the £60,001 - £70,000 bracket (2020: One), the employee in the £90,001 - £100,000 bracket in 2020, and the employee in the £140,001 - £150,000 bracket (2020: One) are members of the Governments’ Teachers’ Pension Defined Benefits Scheme and the School pays standard contributions as detailed in note 11. The employee in the £90,001 - £100,000 bracket (2020: the employee in the £80,001 - £90,000 bracket) is a member of the defined contribution scheme set out in note 11.
No governor received any remuneration. No governor received reimbursement for travel expenses (2020: £Nil). No governor received reimbursement for subsistence costs for Governors’ meetings in 2020 (2020: £Nil). No governors (2020: 2 Governors) received reimbursement for travel costs associated with training courses of £Nil (2020: £420). No governors received reimbursement for entertaining expenses in either 2021 or 2020.
7. Intangible fixed assets
| Cost As at 1 September 2020 Additions Disposals At 31 August 2021 Depreciation As at 1 September 2020 Charge Disposals At 31 August 2021 Net Book Value At 31 August 2021 At 1 September 2020 |
Trademark Licence £ 1,280 840 (1,280) |
|---|---|
| 840 | |
| £ 1,163 138 (1,280) |
|
| 21 | |
| £ 819 |
|
| 117 |
The licence to use the trademark of Hallfield School will expire in ten years.
Page 28
HALLFIELD SCHOOL TRUST
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021
8. Tangible fixed assets
| Tangible fixed assets | ||||
|---|---|---|---|---|
| Cost At 1 September 2020 Additions Disposals At 31 August 2021 Depreciation At 1 September 2020 Charge Disposals At 31 August 2021 Net Book Value At 31 August 2021 At 31 August 2020 |
Freehold Land & Buildings £ 546,581 - - 546,581 72,730 10,133 - 82,863 463,718 473,851 |
Long Term Leasehold Property £ 6,457,520 392,351 (11,400) 6,838,471 2,681,022 241,763 (11,400) 2,911,385 3,927,086 3,776,498 |
Fixtures Fittings & Equipment £ 812,530 275,294 (9,579) 1,078,245 462,689 135,210 (8,885) 589,014 489,231 349,841 |
Total £ 7,816,631 667,645 (20,979) |
| 8,463,297 | ||||
| 3,216,441 387,106 (20,285) |
||||
| 3,583,262 | ||||
| 4,880,035 | ||||
| 4,600,190 |
Included in freehold land and buildings is an amount of £39,947 (2020: £39,947) relating to freehold land which is not depreciated.
9. Debtors: amounts due within one year
| Trade debtors Other debtors Prepayments and accrued income Debtors: amounts due after more than one year Lease Premium |
2021 £ 104,670 8,446 161,731 274,847 2021 £ 746,927 |
2020 £ 92,656 8,446 150,031 |
|---|---|---|
| 251,133 | ||
| 2020 £ 755,372 |
The lease premium represents amounts paid to the Trust’s Landlord on completion of the lease arrangements together with professional costs incurred in reaching the agreement. The premium is amortised over the life of the lease which expires on 24 March 2110.
Page 29
HALLFIELD SCHOOL TRUST
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021
10. Creditors: amounts falling due within one year
| Creditors: amounts falling due within one year | ||
|---|---|---|
| Fees in advance Trade creditors Other creditors Accruals and deferred income Deferred rental charge Other tax and social security |
2021 £ 318,325 336,672 369,456 70,446 4,054 84,594 1,183,547 |
2020 £ 181,796 217,528 337,673 62,983 4,054 83,269 |
| 887,303 |
Included within other creditors are amounts relating to outstanding pension contributions of £53,353 (2020: £54,849) and an amount of £216,410 (2020: £193,650) relating to deposits received from parents for pupils attending the School; deposits are repayable when the pupil leaves the School in Year 6 or Year 8.
The Governors have reviewed the contract terms under which the Pupil fee deposits are held by the school. Although under normal circumstances these will be repaid over future years when the pupils complete their education at the school, pupils can leave at earlier dates. The school does not therefore have an unconditional right to retain the individual deposits for at least 12 months after the balance sheet date and, in line with the requirements in FRS 102, the balance of the deposits held at 31 August 2021 have been included within current liabilities.
Creditors: amounts falling due after more than one year
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Deferred Rental Charges | 205,405 | 209,459 |
These charges arise as the rent payable under the new lease arrangements steps up over the period to 24 March 2029. Our policy is to recognise the rent equally over this period and the amount is expected to reverse by 31 August 2029.
11. Pensions
Teachers’ Pension Defined Benefits Scheme
The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £377,638 (2020: £406,245) and at the year-end £44,107 (2020: £45,264) was accrued in respect of contributions to this scheme.
The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
Page 30
HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021
11. Pensions (continued)
The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.
The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.
On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.
The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following the public consultation, the government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations.
In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.
Until the cost cap mechanism revision is completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly, no provision for any additional past benefit pension costs is included in these financial statements.
Page 31
HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021
11. Pensions (continued)
Other arrangements
The school also contributes to a defined contribution pension scheme in respect of its nonteaching staff. All eligible employees were enrolled in the defined contribution auto-enrolment scheme as of its staging date on 1 May 2014.
The pension status of all employees is reviewed monthly to ensure that all employees who are eligible are enrolled in the scheme and that all non-eligible or entitled workers are aware of their right to opt to join the scheme.
The pension charge in the Statement of Financial Activities and reported in note 6 to the financial statements represents contributions payable to all of the pension schemes of £444,251 (2020: £472,858).
12. Restricted funds
The funds of the charitable company include restricted funds comprising unexpended balances of donations and grants, held on trust, to be applied for specific purposes, as follows:
| At 31 August 2021 Pavilion Appeal Fund Rigby Bursary Hardship Fund Gifted and Talented Fund Stanley Owen Allday Memorial Ranjeen Neelima Memorial Award Make a Difference Fund At 31 August 2020 Pavilion Appeal Fund Rigby Bursary Hardship Fund Gifted and Talented Fund Stanley Owen Allday Memorial Ranjeen Neelima Memorial Award Make a Difference Fund |
Balances at 1 September 2020 £ 11,414 14,199 16,218 3,354 50 205 505 45,945 Balances at 1 September 2019 £ 12,696 14,157 15,687 3,344 50 229 440 46,603 |
Incoming Resources £ - 14 1,777 3 - - 20 1,814 Incoming Resources £ - 42 531 10 - 1 65 649 |
Outgoing Resources £ (1,282) - - - - (25) - (1,307) Outgoing Resources £ (1,282) - - - - (25) - (1,307) |
Balances at 31 August 2021 £ 10,132 14,213 17,995 3,357 50 180 525 |
|---|---|---|---|---|
| 46,452 | ||||
| Balances at 31 August 2020 £ 11,414 14,199 16,218 3,354 50 205 505 |
||||
| 45,945 |
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HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021
12. Restricted funds (continued)
Capital funds
The Pavilion Appeal Fund was created in the 125th Anniversary year, 2003, to supplement the school’s provision of funds for the new sports pavilion, benefiting from the generosity of various friends as well as the Old Hallfieldian Society. The cash raised was fully utilised on the purchase of the pavilion which is included in fixed assets; depreciation is charged on a straight line basis over the estimated remaining useful life of 10 years. The fund balance at the end of the year is represented by the attributable proportion of the net book amount of the asset to the extent that it was funded by the donation.
Other funds
The Rigby Bursary Fund is the result of a legacy from a former headmaster, Mr. R. Vaughan Rigby, to improve access for children from families with limited resources for independent schooling, especially the children of Old Hallfieldians.
There are two Hardship Funds operated by the School. The original Hardship Fund was created by the Parents’ Association to assist current pupils whose families run into financial difficulty, being under the control jointly of the Head Master and the chair of the Parents’ Association. During 2017-18, a second Hardship Fund called “The Bryan Family Unforeseen Hardship Fund” was created with a donation of £10,000. This money is to be used to support families that have had an unforeseen change of circumstances within an academic year and this fund should facilitate the pupil remaining at Hallfield School until the end of an academic year.
The Gifted and Talented Fund began in 2009 due to an enlightened donation by the retiring deputy head, Mrs. Rosemary Mountford.
The Stanley Owen Allday Memorial Fund is a prize fund awarded in respect of excellence at sport in memory of a pupil who was killed in active service during the First World War in 1915.
The Ranjan Neelima Memorial Award is the result of a donation received in respect of a former pupil for an award for excellence in mathematics. During the year the fund donated £25 (2020: £25) for the School’s prize in mathematics.
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HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021
13. Unrestricted funds
| At 31 August 2021 General Fund Designated fund Total At 31 August 2020 General Fund Designated fund Total |
Balances at 1 September 2020 £ 6,193,165 500,000 6,693,165 Balances at 1 September 2019 £ 5,593,670 500,000 6,093,670 |
Incoming Resources £ 6,804,562 - 6,804,562 Incoming Resources £ 6,508,363 - 6,508,363 |
Outgoing Resources £ (5,812,232) - (5,812,232) Outgoing Resources £ (5,908,868) - (5,908,868) |
Balances at 31 August 2021 £ 7,185,495 500,000 |
|---|---|---|---|---|
| 7,685,495 | ||||
| Balances at 31 August 2020 £ 6,193,165 500,000 |
||||
| 6,693,165 |
The Designated fund was established for future development of the school site.
14. Analysis of net assets between funds
| Analysis of net assets between funds | |||
|---|---|---|---|
| At 31 August 2021 Fixed assets Net current assets Long term debtors Long term liabilities At 31 August 2020 Fixed assets Net current assets Long term debtors Long term liabilities |
General funds £ 4,870,722 2,273,251 746,927 (205,405) 7,685,495 General funds £ 4,588,893 1,558,359 755,372 (209,459) 6,693,165 |
Restricted funds £ 10,132 36,320 - - 46,452 Restricted funds £ 11,414 34,531 - - 45,945 |
Total £ 4,880,854 2,309,571 746,927 (205,405) |
| 7,731,947 | |||
| Total £ 4,600,307 1,592,890 755,372 (209,459) |
|||
| 6,739,110 |
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HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021
15. Commitments under leases
Operating Leases
The charitable company has total future minimum lease payments under non-cancellable operating leases are as set out below:
| Leases expiring: Within one year Within 2 – 5 years Over five years |
2021 Land and buildings £ Other £ 100,000 30,246 462,500 34,808 27,766,677 - 28,329,177 65,054 |
2020 Land and buildings £ Other £ 100,000 24,810 437,500 29,073 27,891,677 - 28,429,177 53,883 |
2020 Land and buildings £ Other £ 100,000 24,810 437,500 29,073 27,891,677 - 28,429,177 53,883 |
|---|---|---|---|
| 53,883 |
The land and buildings commitment relates to a rental lease on the school premises which expires on 24 March 2110.
16. Capital commitments
At 31 August 2021, the charitable company had £357,740 of capital commitments (2020: £73,341).
17. Members
The charity is incorporated as a company limited by guarantee having no share capital and, in accordance with the memorandum of association, every member is liable to contribute a sum of £1 in the event of the company being wound up. At 31 August 2021 there were 31 members (2020: 29).
18. Related party transactions
At the year-end there was a £15,690 creditor representing amounts due to the Friends of Hallfield Society (“the Friends”) in respect of the combination of payments due from the School to the Society for annual subscriptions collected and other associated transactions made by the School on behalf of the Society. “The Friends” is a new umbrella society created in the year ended 31 August 2021 to allow current pupils, current parents, staff, governors, former parents and alumni to participate in a number of events hosted by the society. “The Friends” replaces the former Hallfield School Parents’ Association and the Old Hallfieldian Society to whom the School owed £8,958 as at 31[st] August, 2020. The Head Master is the President of the society and the Director of Finance and Operations is the Treasurer.
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