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2023-08-31-accounts

wr) HALLFIELD Qy 4) a SCHOOL

_—w~ FOUNDED 1879

HALLFIELD SCHOOL TRUST

(A company limited by Guarantee)

THE GOVERNORS’ ANNUAL REPORT AND FINANCIAL STATEMENTS

31 AUGUST 2023

Company Number: 00631045 Charity Number: 528956

HALLFIELD SCHOOL TRUST

CONTENTS

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||||||| |---|---|---|---|---|---| |Page| |Governors’|Annual|Report|3| |Reference|and|administrative|information| |Governors’ Annual|Report|4| |Strategic|Report| |Governors’|Annual|Report|13| |Structure,|Governance and|Management| |Report of the|Independent|Auditors|16| |Statement|of|Financial|Activities|20| |Balance|Sheet|22| |Cash|flow Statement|23| |Notes forming|part|of the|Financial|Statements|24|

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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 2023.

Charity Name Hallfield School Trust Charity Registration Number 528956 Company Registration Number 00631045 Registered Office 48 Church Road Edgbaston Birmingham B15 35)

Governors

The Governors who served during the year and up to the date of this report are set out below:

G RH Ralphs (Chairman) H Coverdale ® M R Plummer S Stotts (Vice Chair) >7 1° _ A Earnshaw “74 D R Price 24 K McEwen (Vice Chair) 3%” G M Faber 3%? AS Sherlock 235745 S Aulak 1° P Gough +9 M Georgevic * S Balfour 4% A Oliver *

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|||||||||| |---|---|---|---|---|---|---|---|---| |1|Finance|and|Facilities|Committee|° Old|Hallfieldian| |2|Education|Committee|10 Resigned|30° June|2023| |3|Human|Resources|and|Legal|Committee|1 Anpointed|315 October|2022| |4 Marketing|Committee|” Appointed|28" October 2022| |5 Nominations|Committee|B Appointed|24|March|2023| |® Compliance Committee|14 Resigned|4" September 2023| |7|Parent|of former|pupil|5 Resigned|24" July|2023| |8 Parent|of current|pupil|16 Appointed|29°" September 2022|

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The Chairman and Vice Chair are ex-officio members of each of the Committees.

Executive Team from 1 September 2022

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|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |«|B|Morrow|BA|(Hons)|OTS,|-|Head|Master| |PGCPS(Ed),|NPQH,|FRSA| |T|Butcher|BA|(Hons)|-|Deputy Head|(Head|of|Prep)|(resigned|30" September 2023)| |C|Florida-James|B|Ed|(Hons)|-|Deputy|Head|(Academic)| |E|Sanderson|B|Ed|(Hons)|QTS|-|Deputy Head|(Head|of|Pre-Prep)| |B|Patel|ACA|-|Director of|Finance|and|Operations| |D Tinkler|-|Head|of Estates|and|Facilities|(resigned 30 September 2023)| |E|Cook|MCIM|-|Marketing|and|Communications|Manager| |Auditors|Bankers|Solicitors| |Crowe|U.K.|LLP|Barclays|Bank|Plc|Veale|Wasbrough|Vizards|LLP| |Black Country|House|79 — 84|High|Street|Narrow Quay|House| |Rounds|Green|Road|Birmingham|‘Narrow Quay| |Oldbury|B4|7TE|Bristol| |B69|2DG|BS1|40A|

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HALLFIELD SCHOOL TRUST GOVERNORS’ ANNUAL REPORT STRATEGIC REPORT

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Achievements and Performance

Academic

The year ended 31 August 2023 was outstanding for the 11+ examination results. This year 43 pupils in Year 6 at the start of the academic year sat the 11+ grammar school exam with 88% achieving the qualifying score and 80% achieving the priority score.

There were 57 10-11 year olds (2022: 60) entering the selective Local Authority Grammar schools and selective 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. This year sees outstanding results for the two highly selective independent schools — King Edward’s and King Edward VI High School for Girls — 21 boys (2022: 26 boys) have been offered places (including 3 scholarships (2022: 1 scholarship)) at King Edward’s School and 9 girls (2022: 15 girls) have been offered places (including 3 scholarships (2022: 1 scholarship)) at King Edward VI High School for Girls. 10 places were offered at Solihull School (2022: 16 places) (including 5 scholarships (2022: 2)) and 13 places (2022: 19 places) at Edgbaston High School for Girls (including 8 scholarships (2022: 13 scholarships)) and a total of 36 scholarships (2022: 32 scholarships) were awarded.

Hallfield Seniors started in September 2020, with the purpose of educating boys and girls in Year 7 and Year 8, to allow the pupils the opportunity of transferring to schools at 13+ rather than at the end of Year 6, 11+.

The first cohort of eight pupils left Hallfield School at the end of July 2023 and achieved excellent results and entry to the following schools: Bromsgrove, Rugby, Aston University School, British School of Malaga & International School of Abu Dhabi.

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The school is delighted with the results and is keen to continue the growth and expansion of Hallfield Seniors to enable pupils who desire to stay through to the end of Year 8. There are currently 23 pupils enrolled in Hallfield Seniors.

In the National Primary Schools Maths Challenge, 35 (2022: 19) children earned Gold, Silver or Bronze medals; and 64 (2022: 59) children achieved gold, silver or bronze in the Junior Maths Challenge.

Music

Our commitment to Music continued during the year with a number of performances by the school. This year also sawa rise in the numbers of pupils having instrumental and vocal lessons; we had over 238 pupils registered for lessons.

At the start of the year twelve ofour finest string players were invited to be a part of a workshop day at Bromsgrove School. This event brings musicians from a number of local schools together for a workshop followed by a concert. The day includes tuition and ensemble work with a member of the English Symphony Orchestra. At the end of the day, pupils perform alongside musicians from the English Symphony Orchestra and Bromsgrove School music scholars in a concert in the Routh Concert Hall.

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HALLFIELD SCHOOL TRUST GOVERNORS’ ANNUAL REPORT STRATEGIC REPORT

After the autumn term we had a new Director of Music who has been working hard to increase the exposure of Hallfield pupils to musicians of excellence from outside of school. We took all of Year 3 and 4 to Symphony Hall at the beginning of February to listen to the Birmingham Symphony Orchestra perform a brilliant educational programme, with commentary. The Year 5 Brass students also went to the Ruddock Hall to see a concert by students at King Edward’s School before half term.

The Tea-Time Concert series continued featuring soloists on a range of instruments and included a number of smaller ensembles such as the Guitar Ensemble.

The Music Department hosted ABRSM and LCM exams where we had a large numberofchildren taking their Grade exams (32 from Years 4-6}, and the standard was higher than ever before.

The Music Department year culminated with the Year 6 production of ‘Matilda, Junior - the Musical’, which all the children thoroughly enjoyed rehearsing and performing.

Musical activities of note currently planned for next term include: the rolling out of the jSax scheme to Year 5, in which every child in that year will be given a jSax to learn as part of the Music curriculum; the Harvest, Remembrance, Christingle and Christmas Services at St George’s Church; a workshop with Shrewsbury School’s Orchestra and the introduction of woodwind and brass to our Hallfield Orchestra.

Sport

Sport remains a very important part of life at Hallfield.

One of our main developments this year in sport has been the push on mixed sex hockey. It has been a pleasure to have someofthe boys join the girls in training and matches against Eversfield (who also play mixed sex hockey) for the U11s, U10s and U9s. This experience has received a lot of positive feedback from the boys, and the parents of both the boys and the girls about how wonderful it is to see mixed sex hockey matches.

In PE this year, our focus is on dance. The children have taken to this really positively and enthusiasm has been much greater than in previous years. | think we can attribute this to the successful implementation of drama in the curriculum causing the children to have much more confidence when performing in front of each other than in previous years. We are looking at dance from different cultures, including; Ceilidh, African, Chinese and Street dancing.

We were also very happy to have welcomed Amy Dowden as our guest speaker at this year’s Speech Day event. Amy Dowden, who is nowa star of Strictly Come Dancing, was an inspirational speaker and also led a dance masterclass for over 100 parents the evening after Speech Day, as part of[our][Hallfield] Insights programme. Amy hasa special relationship with Hallfield, having started her dance company here over a decade ago, which is now run by her husband each week at Hallfield.

One Hallfield pupil was crowned U13 IAPS National Squash Champion, an achievement all the more remarkable as they competed aged only 10 years old.

The Seniors have embarked on a Sports Leaders programme to develop their leadership and coaching skills. They have invented practices to teach each other and then had the chance to lead a session with some Year 3 pupils, who relished these small group exercises.

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HALLFIELD SCHOOL TRUST GG OVERNORS’ANNUALREPORT— i i ss—s STRATEGIC REPORT

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The school continues to work with external agencies, with Year 2 and 3 going swimming at the University of Birmingham swimming baths, various forms going to learn squash at the Priory Club, Seniors learning golf at the Edgbaston Golf Club, and the provision of a whole host of external clubs - dance, fencing, cricket, football and martial arts.

We were delighted to see the childrens’ participation in this year’s Sports Day y. Nursery — Year 2 took part in a variety of events including sprinting, obstacle courses, a skills course, a tennis ball throw and a relay, either in Forms or in Houses. The Prep Sports Day took place the following day and include the full programme of track and field events using our fantastic facilities. All children took part in at least one track and one field event and competed for individual medals in their events, as well as the allimportant House Cup.

Extra-curricular activities

Activities we have been able to offer a full range of clubs, sporting fixtures, day visits and residential visits, including a visit overseas to France, which have enhanced the opportunities and enjoyment for our pupils.

Year 6 and Seniors travelled to France to Chateau de Warsy. The trip was a great success with the usual opportunities to visit local attractions and to practise French in various shops and markets, and with the visit to Paris being a real highlight.

Whilst a host of previous Enrichment activities continue, this year has seen the introduction of Broadcasting {in the new Mac Suite and broadcasting room) and of LAMDA lessons as rotation sessions for children in Years 1 and 2 during Enrichment. Opportunities such as these sit within the agenda to help improve children's oral communication and presentation skills; something identified as an area to improve by the end of a child’s time in the Pre-Prep. Feedback from children is very positive. Broadcasting is also incorporated into the Prep Enrichment rota.

Children’s Mental Health Week was marked this year by the theme ‘Let’s Connect’ and the school’s Pupil Mental Health Lead, with help from the Librarian put together a programme of activities for the week in February. Activities encouraged children to look at how we can make meaningful connections in our lives to support our mental health and wellbeing. We had children’s author and mental health advocate, Vie Portland, visiting Hallfield in February to support this year’s theme. Vie did two assemblies with year groups from Year 1 upwards and also ran some workshops with the children in Year 4 and Year 2 during the day.

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HALLFIELD SCHOOL TRUST GOVERNORS’ ANNUAL REPORT STRATEGIC REPORT

Financial Review

Review of Transactions and Financial Position

The Governors are pleased to report a strong financial performance, achieving a surplus for the year of £569,195 (2022: £938,026). The Governors felt the need to build reserves during an uncertain year but believe that a surplus in the region of £500,000 ought to be achieved annually to support future capital investment.

The Governors recognised that many parents’ lives continued to be affected by the cost of living crisis 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. 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.

Costs continued to be tightly controlled and discretionary expenditure was targeted at priority areas during the year to ensure the children enjoyed the best experience possible.

Opportunities to continually improve the facilities were focused on this year and significant capital investment of £769,536 was incurred. During the year the school completed a redesign and fit out of the Pre Prep playground. The children participated in a vote and a pirate theme was chosen for the design. New play equipment was also purchased to fit the theme and create new spaces for active and imaginative play.

The school also made improvements to the front of school with new gates to improve security and access. The lower carpark was also expanded to free up the front car park for parents to alleviate congestion during school pick up and drop off.

During the year we also completed the necessary project planning for our ambitious Project 150 project. The first stage of which will be to build two new classrooms on the school site to support our growing Senior year groups.

Other smaller projects included a new pupil shelter, upgrades to school windows and also the school heating system.

Pupil Numbers

The number of children, expressed in terms of full time equivalents (FTEs), attending the School increased during the academic year, rising from 548 in Autumn 2022 to 575 in Summer of 2023. 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.

All fundraising conducted by the school is done internally. We do not engage the services of a professional fund-raiser or commercial participator to carry on any of these activities.

Fundraising activities conducted by pupils have helped many causes during the year including Birmingham-based charity ‘Help Harry Help Others’, the Black Country Food Bank and the National Guide Dogs Association.

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HALLFIELD SCHOOL TRUST GOVERNORS’ ANNUAL REPORT STRATEGIC REPORT

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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 2023/2024

The School plans to continue to progress capital and maintenance spending plans in accordance with its Hallfield Futures plan prudently in order to:

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 Hallfield Insights programme, which includes inspirational speakers including dancers, musicians, and scientists is available free of charge to local residents in care homes and to pupils attending local state schools.

The Assisted Places Scheme, awarding bursaries for fees to families with household incomes of less than £16,385 p.a., commenced in 2008/09. During the 2022/23 year, it funded the education at Hallfield of 17 pupils. The value of this funding was £182,134 (2022: 21 pupils costing £206,264).

The school continues to create a public benefit by working with a network of local state schools.

This year we worked with a school from the Oasis Academy Trust to support their pupils coming to the school to practise their music performances using the school’s resources. This provided them with the space and equipment to practice ahead of their state schoo! competition.

Using the Independent Schools Council’s (ISC} Economic Impact tool we have assessed that, in the 2021-2022 financial year, the school contributed to the UK GDP a value of £12.8m through a mixture of our own direct GDP and that created from our supply chain and payments on staffing. At a local level this equated to a GDP impact of £7.6m

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HALLFIELD SCHOOL TRUST GOVERNORS’ ANNUAL REPORT STRATEGIC REPORT

The school also supported UK tax income of £3.6m through our activities, payments to our supply chain (including VAT) and staff.

The report has highlighted that the school has also generated a UK taxpayer saving of £3.6m as a result of attendance at the school by pupils who could otherwise take up a free UK state school place.

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.

Having taken into 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 2023, the charity’s free reserves amounted to £1,939,462 (2022: £1,584,662).

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HALLFIELD SCHOOL TRUST GOVERNORS’ ANNUAL REPORT STRATEGIC REPORT

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Going concern

Given the uncertainty that the Ukrainian war has created, impacting on the cost of goods and utilities, the increase in cost of living for families and the potential change in Government threatening the Charitable status of independent schools, 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. Fee income for the 2022-23 remained incredibly strong which enabled the Governors to offer selective support to parents suffering short-term financial problems.

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.

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:

Economic Risk

The impact on the economic climate, as a result of the Ukrainian war and the cost of living crisis, 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.

in terms of unexpected costs, the Governors ensure that insurance is in place for known and insurable risks. With a large estate, the School also monitors and plans for foreseeable future building repairs. The management team also carefully monitor 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%, as at the year end it is expected that a further increase to 28%-29% will be due. Currently it is thought that this will coming into effect in April 2024. This 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

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:

Reduction in pupil headcount
An unforeseen significant fall in pupil numbers Regular parent drop-ins are held by the Senior
could place the school under operational
financial pressure within anacademicyear.		 and
School maintains reserves to provide emergency
funding.
Inspection Regime Failure
The Independent School’s Inspectorate’s (“ISI”) We monitor changes to guidance and compliance.
Inspection
regime
changes		 regularly as
legislation and statutoryguidance are updated. underwent an
ISI inspection
in February 2019,
wheretheschool was judged tobeoutstanding in all
areas.
ITSystem Failure
As with most modern businesses, the School is The School’s core infrastructure is well monitored
_) heavily relianton InformationTechnology for its and appropriate fail over systems are in place. The
dayto dayoperations. strategic direction for the School’s use of IT
is
currently being reviewed to make improvements in
the usage of ITfor curriculum activities.
Child Protection & Safeguarding
Keepingchildrensafewhiletheyareatschool or The School adheres to legislation and guidance on
on an activity organised by the School is our recruitment, child protection andHealth
& Safety. A
highest priority. “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.
Natural and other disasters
With over 500 pupils, the school is at risk from
health epidemics,
fireand flooding.		 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
andsafetyaudits.

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HALLFIELD SCHOOL TRUST GOVERNORS’ ANNUAL REPORT STRATEGIC REPORT

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Risk Management (Continued)

Change _in Government
(VAT &		 _in Government
(VAT &		 _in Government
(VAT &		 removal of removal of removal of
domestic rate relief)
Should there be a change in Government it is TheGovernors have required the ExecutiveTeam to
expected that independent
schools		 wil! be plan for the risks as a part of the School's financial
required to payVATon on school fees. Also, their Planning process.
charitable status may be removed. The key Asa school we have started to look atwhat impact
impact on this will be a loss of the current this might have on parents.
ion
ji
i
tes.
This
reduction in domestic rates
is
increase the costs to the school as
lief
is
at80%
rener'sa
.		 will
tl
wm
Vastly
the current		 We are looking very carefully at how Hallfield can
.
.
:
achieve efficiencysavingsandhowmuchVATcould
be absorbed bythe School(through re-claimingVAT
that we are currently unable to claim back) and
hence reduce the burden to parents.
All schools will be facing the same challenges, but
we feel the size and sound financial footing that
Hallfield enjoys mean that we are in an excellent
positiontofacethesechallenges.

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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 £5m (2022: £5m) on any one claim and the cost for the year ended 31 August 2023 was £1,130 (2022: £1,025).

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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HALLFIELD SCHOOL TRUST GOVERNORS’ ANNUAL REPORT STRUCTURE, GOVERNANCE & MANAGEMENT

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Executive Team

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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.

This year Hallfield School is delighted to announce that our nursery, Hallfield First is rated “Outstanding” in our most recent inspection conducted by the Independent Schools Inspectorate in May 2023.

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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 ofthe 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 purpases 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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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:

Auditors

Crowe U.K. LLP continue to act as auditors.

Approved by the Governors on 8" December, 2023 and signed on their behalf by:

GRH Ralphs .' Chairman of Governors

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HALLFIELD SCHOOL TRUST

Independent Auditor’s Report to the Members of 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 2023 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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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 ethica! 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.

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.

Page 16

HALLFIELD SCHOOL TRUST Independent Auditor’s Report to the Members of Hallfield School Trust

7

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

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 governors’ 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:

Responsibilities of Governors

As explained more fully in the governors’ responsibilities statement set out on page 14, 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.

Page 17

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 override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance & Facilities 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, Ofsted, and reading minutes of meetings of those charged with governance.

Page 18

HALLFIELD SCHOOL TRUST Independent Auditor’s Report to the Members of Hallfield School Trust

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 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.

Kerry Brown Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor Black Country House

Rounds Green Road

Oldbury

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Page 19

HALLFIELD SCHOOL TRUST

STATEMENT OF FINANCIAL ACTIVITIES

(Incorporating an Income and Expenditure Account) Year ended 31 August 2023

2023 2023 2023 2022
Unrestricted Restricted Total Total
Funds Funds Funds Funds
Note £ £ £ £
Income and endowments from:
Donations and legacies 12,868 150 13,018 6,240
Investment income 3 61,492 - 61,492 3,503
Charitable activities 4 8,076,987 - $8,076,987 7,606,567
Total income and endowments 8,151,347 150 8,151,497 7,616,310
Expenditure on:
Charitable activities 5 7,580,995 1,307 7,582,302 6,678,284
Total expenditure 7,580,995 1,307 7,582,302 6,678,284
Net income / (expenditure) forthe year 570,352 (1,157) 569,195 938,026
Reconciliation offunds:
Funds brought forward at 1 September 2022 8,623,928 46,045 8,669,973 7,731,947
Totalfundscarriedforwardat31August2023 9,194,280 44,888 9,239,168 8,669,973

There were no recognised gains or losses for 2023 or 2022 other than those included in the statement of financial activities. All income and expenditure relates to continuing operations.

The notes on pages 24 to 39 form part of these financial statements.

Page 20

.

HALLFIELD SCHOOL TRUST STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income and Expenditure Account) Year ended 31 August 2022

2022 2022 2022 2021
Unrestricted Restricted Total Total
Funds Funds Funds Funds
Note £ £ £ £
Income and endowments from:
Donations and legacies 5,320 920 6,240 12,147
Investment income 3 3,503 - 3,503 1,054
Charitable activities 4 7,606,567 - 7,606,567 6,793,175
Total income and endowments 7,615,390 920 7,616,310 6,806,376
Expenditure on:
Charitable activities 5 6,676,957 1,327 6,678,284 5,813,539
Total expenditure 6,676,957 1,327 6,678,284 5,813,539
Net income / (expenditure) forthe year 938,433 (407) 938,026 992,837
Reconciliation offunds:
Funds brought forward at 1 September 2021 7,685,495 46,452 7,731,947 6,739,110
Totalfundscarriedforwardat31August2022 8,623,928 46,045 8,669,973 7,731,947

There were no recognised gains or losses for 2022 or 2021 other than those included in the statement of financial activities. All income and expenditure relates to continuing operations.

Page 21

HALLFIELD SCHOOL TRUST BALANCE SHEET

Company Number: 00631045 as at 31 August 2023

Note 2023 2022
£ £ £ £
Fixed assets
Intangible Assets 7 651 735
Tangible assets 8 6,224,606 5,996,603
6,225,257 5,997,338
Current assets
Debtors due aftermorethan
one year 9 730,035 738,481
Debtors due within one year 9 202,547 293,719
Stock 8,931 11,565
Cash at bank and
in hand 3,949,938 3,270,263
4,891,451 4,314,028
Creditors: amounts falling due
within
one year 10 (1,680,242) (1,440,041)
Net current
assets 3,211,209 2,873,987
Total assets less current
liabilities 9,436,466 8,871,325
Creditors: amounts falling due
after morethan one year 10 (197,298) (201,352)
9,239,168 8,669,973
Restricted funds 12 44,888 46,045
Unrestricted
funds 13 9,194,280 8,623,928
9,239,168 8,669,973

The financial statements were approved by the Governors on 8" December, 2023 and signed on their behalf by

GRH Ralphs ~~ Chairman of Governors

Page 22

7

HALLFIELD SCHOOL TRUST CASH FLOW STATEMENT

Year ended 31 August 2023

----- Start of picture text -----
|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |Reconciliation|of|net|income|to|net|cash|flow|from|2023|2022| |operating|activities|£|£| |Net|income|for the|year|569,195|:|938,026| |Interest|receivable|,|(61,492)|(3,503)| |Depreciation|and|amortisation|of fixed|assets|541,617|438,224| |Loss/{Profit)|on|disposal|of fixed|assets|-|(385)| |Decrease|in|stock|;|;|Co|2,634|5,027| |(Increase)/Decrease|in|debtors|99,618|(10,426)| |Increase/(Decrease)|in|creditors|236,147|252,441| |Net|cash|flow from|operating|activities|1,387,719|1,619,404| |Cash|flow from|investing|activities| |Proceed|from|the|sale|of fixed|assets|-|1,706| |Payments|to|acquire|fixed|assets|(769,536)|~|(1,556,029)| |Interest|received|61,492|3,503| |Net cash|flow from|investing|activities|(708,044)|(1,550,820)| |Net|increase|in|cash|and|cash|equivalents|679,675|68,584| |Cash|and|cash|equivalents|at|1|September|3,270,263|3,201,679| |Cash|and|cash|equivalents|at|31 August|3,949,938|3,270,263| |Cash|and|cash|equivalents|consists|of:| |Cash|at|bank and|in|hand|3,949,938|3,270,263|

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Analysis of changes in net debt

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|||||| |---|---|---|---|---| |Balance|at|1|Balances|at| |September|Cash|flow|31 August| |2022|£|2023| |£|£| |Cash|3,270,263|679,675|3,949,938| |Total|3,270,263|679,675|3,949,938|

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Page 23

HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

:

L 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 ofa 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.

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 24

HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

7

.

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 ofthe 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 ina 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:

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:

Page 25

HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

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.

Assets under construction are accounted for at cost incurred to 31 August. They are not depreciated until the accounting period in which they are brought into use.

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 - overfouryears
Fixtures and equipment —_- over seven years
Leasehold property -overthe life ofthe lease or 50years, whichever isthe shorter
Leasehold improvements - over 10 years
Freehold buildings - over 50 years
Assetsunderconstruction -Nil

Freehold land is not depreciated.

Page 26

HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

  1. Accounting policies (continued)

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.

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 havea 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 27

HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

3. Investment Income

;

2023 2022
£ £
Bank Interest— Unrestricted Funds 61,492 3,503
Bank Interest— Restricted Funds - -
61,492 3,503
4. Income
2023 2022
£ £
Net incoming resources are stated after charging:
Depreciation —(note 8) 541,456 438,140
Amortisation— Intangible Asset (note 7) 84 84
Amortisation — Lease Premium (note 9) 8,446 8,446
Auditors’ remuneration — audit services (exclusive ofVAT) 14,438 14,400
Auditors’ remuneration— non-audit services (exclusive ofVAT) - -
Operating lease rental — plant, machinery&vehicles 32,751 30,246
2023 2022
£ £
Income from Charitable Activities - Unrestricted
School fees 7,736,441 7,390,750
Less: Assisted Places (182,134) (206,264)
Net Fee Income 7,554,307 7,184,486
Other educational income 477,553 344,173
Other ancillary income 45,127 77,908
8,076,987 7,606,567

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 £335,708 (2022: £240,576) to provide up to 15 hours per week of free education to each pupil aged 3 or 4.

Page 28

HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS

7

Year ended 31 August 2023

  1. Analysis of resources expended

5.1 Total expenditure

5.1 Total expenditure
Yearended 31 August Other
2023 Staffcosts costs Depreciation Total 2023
£ £ £ £
Charitable activities (note 6)
Teaching 3,446,620 636,324 170,885 4,253,829
Welfare - 544,742 24,913 569,655
Premises repairand 352,137 759,288 354,085 1,465,510
maintenance
Support costs and 893,970 376,073 103 1,270,146
governance
Grants and prizes - 23,162 - 23,162
Total charitable
expenditure 4,692,727 2,339,589 549,986 7,582,302
Year ended 31August Other
2022 Staffcosts costs Depreciation Total 2022
£ £ £ £
Charitable activities (note 6)
Teaching 3,148,996 497,450 138,784 3,785,230
Welfare - 465,249 20,233 485,482
Premises repairand 341,616 667,130 287,569 1,296,315
maintenance
Support costs and 809,691 286,301 84 1,096,076
governance
Grants and prizes - 15,181 - 15,181
Total charitable
expenditure 4,300,303 1,931,311 446,670 6,678,284
5.2 Grants, awards and prizes
2023 2022
£ £
From restricted funds
Maths prize 25 25
From unrestricted funds
Flowers, prizes and leaving presents 23,137 13,185
23,162 13,210

Page 29

HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

5. Analysis of resources expended (continued)

5.3 Governance included in support costs

,

5.3 Governance included in support costs
2023 2022
£ £
Remuneration paid to auditor foraudit services 13,750 14,400
Reimbursement of personal expenses to governors—travel costs 631 -
Other governance costs 7,A62 2,765
21,843 17,165
6. Staff costs and numbers
2023 2022
Total Total
£ £
Salaries and wages . 3,724,540 3,433,139
Social security 338,519 299,538
Pension costs 527,071 487,382
4,590,130 4,220,059
Agency staffcosts 102,597 80,244
4,692,727 4,300,303

Included within in salaries and wages is £Nil (2022: £206) of childcare voucher administration charges associated with a salary sacrifice scheme for employees. Also included are Staff termination costs of £30,654 (2022: £404) with £Nil (2022: ENil) remain outstanding at the yearend. Also included within salaries and wages is £5,335 (2022: £4,907) of premiums for staff death ~ in service benefit cover and £5,659 (2022: £5,461) 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 £687,733 (2022: £659,448). The Governors consider that the key management personnel comprise the Executive team.

The average number of employees during the year was:

The average number of employeesemployees during the year was:was:
2023 2022
No. No.
Teaching staff
Teaching assistants and nursery nurses		 40
42		 4i
40
Domestic staff 14 17
Office and management staff 20 19
116 117

Page 30

.

EeeHALLFIELD SCHOOLeee TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023 Ee eee

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:

----- Start of picture text -----
|||||| |---|---|---|---|---| |2023|2022| |No.|No.| |£60,001|- £70,000|1|2| |£70,001|- £80,000|3|-| |£80,001|- £90,000|-|1| |£90,001|-|£100,000|-|-| |£140,001|- £150,000|-|-| |£150,001|- £160,000|1|1|

----- End of picture text -----

The employee in the £60,001 - £70,000 bracket (2022: Two) and the employee in the £150,001 - £160,000 (2022: One) are members of the Governments’ Teachers’ Pension Defined Benefits Scheme and the School pays standard contributions as detailed in note 11. The remaining employees are members of the defined contribution scheme set out in note 11. No governor received any remuneration. During the year 4 (2022: 0) governors received reimbursement of £631 for travel expenses (2022: £Nil). No governor received reimbursement for subsistence costs for Governors’ meetings in 2023 (2022: £Nil). No governors (2022: 0) received reimbursement for travel costs associated with training courses of£Nil[(2022:][£Nil).] No governors received reimbursement for entertaining expenses in either 2023 or 2022.

7. Intangible fixed assets

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Trademark| |Licence| |Cost|£| |As|at|1|September|2022|840| |Additions|-| |Disposals|-| |At|31|August|2023|840| |Depreciation|£| |As|at|1|September 2022|105| |Charge|84| |Disposals|-| |At|31|August|2023|189| |Net|Book Value|£| |At|31|August 2023|651| |At|1 September 2022|735|

----- End of picture text -----

The licence to use the trademark of Hallfield School will expire in eight years.

Page 31

HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

8.
Tangible fixed assets		 8.
Tangible fixed assets
Freehold
Land&
Buildings		 LongTerm
Leasehold
Property		 Fixtures
Fittings&
Equipment		 pannel Total
£ £ £ £ £
Cost
At 1 Sep 2022 546,581 8,139,606 1,326,779 - 10,012,966
Additions - 216,405 72,835 480,296 769,536
Disposals - - - - -
At 31August2023 546,581 8,356,011 1,399,614 480,296 10,782,502
Depreciation
At 1 Sep 2022 92,996 3,189,834 733,533 - 4,016,363
Charge 10,133 357,942 173,458 - 541,533
Disposals - - - - -
At31August2023 103,129 3,547,776 906,991 - 4,557,896
Net BookValue
At 31August2023 443,452 4,808,235 492,623 480,296 6,224,606
At31August2022 453,585 4,949,772 593,246 ~ 5,996,603

Included in freehold land and buildings is an amount of £39,947 (2022: £39,947) relating to freehold land which is not depreciated.

  1. Debtors: amounts due within one year
Debtors: amounts due within one year
2023 2022
£ £
Trade debtors 21,388 116,684
Other debtors 8,446 8,446
Prepayments and accrued income 172,713 168,589
202,547 293,719
Debtors: amounts due after morethan one year
2023 2022
£ £
LeasePremium 730,035 738,481

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 32

HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

10. Creditors: amounts falling due within one year |

2023 2022
£ £
Fees in advance 477,204 483,688
Trade creditors 581,962 252,287
Other creditors 299,162 362,135
Accruals and deferred income 216,554 250,688
Deferred rental charge 4,054 4,054
Othertaxand social security 101,306 87,189
1,680,242 1,440,041

Included within other creditors are amounts relating to outstanding pension contributions of £67,108 (2022: £61,923) and an amount of £202,346 (2022: £183,500) 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 2023 has been included within current liabilities.

Creditors: amounts falling due after more than one year

2023 2022
£ £
Deferred Rental Charges 197,298 201,352

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 £404,750 (2022: £411,750) and at the year-end £53,551 (2022: £44,107) 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.

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HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

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.

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 following a public consultation in 2021 the Government has accepted three key proposals recommended by the Government Actuary, and is aiming to implement these changes in time for the 2020 valuations.

The 2016 cost control valuations were completed in January 2022, and the results indicated that there would be no changes to benefits or member contributions required. The results of the cost cap valuation are not used to set the employer contribution rate, and HM Treasury has indicated that any changes to the employer contribution rate resulting from the 2020 valuations will take effect in April 2024.

Until the 2020 valuation 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.

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 ail of the pension schemes of £527,071 (2022: £487,382).

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HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023 ee

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 31August 2023 Balances at Balances at
1 September Incoming Outgoing 31August
2022 Resources Resources 2023
£ £ £ £
Pavilion Appeal Fund 8,850 - (1,282) 7,568
Rigby Bursary 14,213 - - 14,213
Hardship Fund 18,885 75 - 18,960
Gifted and Talented Fund 3,357 - - 3,357
StanleyOwen Allday Memorial 50 - - 50
Ranjeen Neelima Memorial 155 - (25) 130
Award
Make a Difference Fund 535 75 - 610
46,045 150 (1,307) 44,888
At 31August2022 Balances at Balances at
1September Incoming Outgoing 31August
2021 Resources Resources 2022
' £ £ £ £
Pavilion Appeal! Fund 10,132 - (1,282) 8,850
Rigby Bursary 14,213 - - 14,213
Hardship Fund 17,995 S00 (10) 18,885
Gifted and Talented Fund 3,357 -: - 3,357
StanleyOwen Allday Memorial 50 - - 50
Ranjeen Neelima Memorial 180 - (25) 155
Award
Make a Difference Fund 525 20 (10) 535
46,452 920 (1,327) 46,045

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HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

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' 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 Aliday 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 (2022: £25) for the School's prize in mathematics.

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HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

13. Unrestricted funds

,

At31August 2023 Balances at 1 Balances Balances
September at 31
2022 Incoming Outgoing ‘August
Resources Resources ' 2023
£ £ £ £
General Fund 8,123,928 8,151,347 (7,580,995) 8,694,280
Designated fund 500,000 - - 500,000
Total 8,623,928 8,151,347 (7,580,995) 9,194,280
At 31 August 2022 Balances at 1 Balances
September at 31
2021 Incoming Outgoing August
Resources Resources 2022
£ £ £ £
General Fund 7,185,495 7,615,390 (6,676,957) 8,123,928
Designated fund 500,000 - - 500,000
Total 7,685,495 7,615,390 (6,676,957) 8,623,928
The Designated fund was established forfuture future development ofthe school site.
Analysis of net assets between funds
At 31August2023 General Restricted
funds funds Total
£ £ £
Fixed assets 6,217,689 7,568 6,225,257
Net current assets 2,443,854 37,320 2,481,174
Long term debtors 730,035 - 730,035
Longterm liabilities (197,298) - (197,298)
9,194,280 44,888 9,239,168
At 31August2022 General Restricted
funds funds Total
£ £ £
Fixed assets 5,988,488 8,850 5,997,338
Net current assets 2,098,311 37,195 2,135,506
Long term debtors 738,481 - 738,481
Longterm liabilities (201,352) - (201,352)
8,623,928 46,045 8,669,973

The Designated fund was established for future development of the school site.

14. Analysis of net assets between funds

‘

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HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

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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:

2023 2022
Land and Land and
buildings Other buildings Other
£ £ £ £
Leases expiring:
Within oneyear 112,500 10,425 100,000 26,852
Within 2-5 years 500,000 11,191 487,500 7,014
Over five years 27,491,677 - 27,641,677 -
28,104,177 21,616 28,229,177 33,866

, The land and buildings commitment relates to a rental lease on the school premises which expires on 24 March 2110.

  1. Capital commitments

At 31 August 2023, the charitable company had £1,093,054 of capital commitments (2022: £4,643).

  1. 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 2023 there were 11 members (2022: 31).

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HALLFIELD SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

18. Related party transactions

At the year-end there was a £1,348 (2022: £4,775) 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 Head Master is the President of the society and the Director of Finance and Operations is the Treasurer.

.

During the year one Governor (2022: 0 Governors) was appointed to the board who has children who are current pupils at the school. Fees and extras were charged at a standard market rate and based on standard commercial terms.

During the year a close family member of the Head Master was made redundant and received a redundancy payment and payment in lieu of notice. This payment was based at statutory rates in line with their employment contract and did not involve the Head Master in calculation of the amounts.

During the year the Head Master utilised the services of the school in connection with his employment by the Trust. These services were provided on standard commercial terms and were paid in full by the Head Master with no amounts owing at the year end and with no benefits derived from the service.

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