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2020-08-31-accounts

THE POCKLINGTON SCHOOL FOUNDATION

(Charity number 529834)

ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 August 2020

HPH Chartered Accountants 54 Bootham York YO30 7XZ

THE POCKLINGTON SCHOOL FOUNDATION REPORT AND FINANCIAL STATEMENTS

CONTENTS Page
Annual Report of the Trustee 1 - 16
Public Benefit and Outreach Statement and Bursary Policy 17 - 19
Auditor's Report 20 - 22
Consolidated Statement of Financial Activities 23
Balance Sheets 24
Consolidated Cash Flow Statement 25
Notes to the Financial Statements 26 - 41

ANNUAL REPORT OF THE TRUSTEE OF THE POCKLINGTON SCHOOL FOUNDATION FOR THE YEAR ENDED 31 AUGUST 2020

The Trustee presents its report and audited financial statements for the year ended 31 August 2020. The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and the relevant version of the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

land (FRS 102).
Governor Remarks 1 2 3 4 5 6 7 8
Mr TA Stephenson MA FCA(9) Chair * C
Mr JL BurleyBSc MRICS(14) Vice-Chair C * *
Mr JA Farmer FCA(10) Vice-Chair C *
Mrs C Atkin(12) * *
The Rev Dr JJ Belder From December 2020
Mr JC Bloom (13) C *
Mr JSL Burke BDS (11) * C
Mr DG ButteryMBE BA DL (12) Until December 2020 * * *
Mr MJ Cargill BSc CEngMICE /
Mr AJ Clarke From December 2020 * *
Mrs RH Cookson BA FRSA From December 2020 *
Dr JPD Cooper MA DPhil FSA
FRHistS		 Representing the University of York *
Cllr R M Cronshaw BSc Representing Pocklington Town Council (from
December 2020)		 * *
Mrs DP Flint MA FCIPD(13) * C
Mrs JD Good BA (13) Representing the Lord Lieutenant of the East Riding of
Yorkshire.		 * *
Mrs K Groves LLB From December 2020 * *
Mr JJ Hargan LLB(Hons) * *
Dr JR Hind MA MEd PhD *
Rt Hon Sir GregKnight MP MP for Yorkshire East
a SWL Lunt LLB /
Mrs LE Masheder BSc DChA FCA *
Dr AM Nicholls PhD FSA FRHistS RepresentingSt John’s College Cambridge *
Mrs CJ Peake BA *
Cllr G Perry CEng MIMechE
FIHEEM(14)		 Representing Pocklington Town Council (until April
2020)		 * *
Mrs L Rickatson LLB(Hons) * * *
The Rev LJ Slow BSc MSc Representingthe Archbishopof York. *
Mrs HL Smith BA *
Mr M Stathers Representingthe East Ridingof Yorkshire Council * *
Mr DM Strachan MA From March 2020
Mrs LE Turner BA MA Until December 2019 *

COMMITTEES OF THE BOARD OF GOVERNORS AND GOVERNORS WITH SPECIAL RESPONSIBILITIES

  1. Education

  2. Employment

  3. Estates and Project Oversight

  4. External Relations

  5. Finance

  6. Nominations and Governance

  7. Pastoral and Safeguarding Children Oversight

  8. Pocklington Prep

  9. AGBIS Representative

  10. Fundraising – Financial Oversight Special Responsibility for:

  11. Child Protection

  12. Boarding

  13. Teachers and Support Staff

  14. Health and Safety

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ANNUAL REPORT OF THE TRUSTEE OF THE POCKLINGTON SCHOOL FOUNDATION FOR THE YEAR ENDED 31 AUGUST 2020

LIFE PATRONS (retired Governors, who are no longer Directors, and other Supporters)

Mrs J Atkinson Mrs JS Davies DL SSSJ The Rt Hon DM Davis MP Mr B Fenwick-Smith MA Mr RE Haynes MA The Rt Hon The Earl of Halifax JP DL Mrs N Jennings Mr JL Mackinlay DL FCA FCMA Mr CM Oughtred MA DL Dr AJ Warren MBE MA DPhil FRHS

OFFICERS

The Headmaster Mr TDG Seth MA The Bursar Mr PS Bennett BSc FLS Head of Pocklington Prep School Mr ID Wright BSc (until 31 July 2020) Ms S Ward LLB (from 1 September 2020)

REGISTERED ADDRESS

West Green Pocklington York, YO42 2NJ

AUDITOR

HPH Chartered Accountants 54 Bootham York, YO30 7XZ

BANKERS

National Westminster Bank plc 31 Market Place Pocklington York, YO42 2AS

INVESTMENT

ADVISORS

Brewin Dolphin Ltd 34 Lisbon Street Leeds LS1 4LX

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ANNUAL REPORT OF THE TRUSTEE OF THE POCKLINGTON SCHOOL FOUNDATION FOR THE YEAR ENDED 31 AUGUST 2020

THE POCKLINGTON SCHOOL FOUNDATION STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Pocklington School was founded in 1514. The Pocklington School Foundation comprises both Pocklington School and Pocklington Prep School. The Foundation is a registered charity, number 529834. The governing document is a Scheme of the Charity Commissioners dated 1 September 2008. A corporate trustee, Pocklington School Trustee Limited administers the charity – the directors are those listed on Page 2 and are known as Governors.

Governor Recruitment and Training

Co-Opted Governors. Governors are elected on the recommendations of the Nominations and Governance Committee. Criteria for selection for each vacancy are established by the Committee following an audit of existing skills and competence. Availability of suitable and willing candidates from the local community has not yet been an issue.

Ex-Officio Governors. The appointment of this group of Governors is self-explanatory.

Nominated Governors. The organisations entitled to nominate governors all have different methods of selecting representatives. The Nominations and Governance Committee negotiates with the head of each body to ensure that nominations assist the Governors in maintaining the breadth of experience and skills required.

Training. New Governors receive a full induction from the Chairman, the Headmaster and the Bursar. The Chairman uses courses organised by the Association of Governing Bodies of Independent Schools (AGBIS) and the Boarding Schools Association to develop trustee-specific skills relevant to the Foundation.

Organisational Management

The Trustee is legally responsible for the overall management and control of both Schools, and the Governors meet at least three times a year. The Board now has eight Governors' committees with formal responsibilities for oversight of defined aspects of school and charity life. The Nominations and Governance Committee meets when required, the other committees usually meet in the first half of each term and, additionally, the Finance Committee also meets to approve budgets and accounts. The Project Oversight Committee meets monthly to monitor building development during periods of intensive building work.

The day-to-day running of the Foundation is delegated to the Headmaster of Pocklington School, in accordance with The Directions for the Conduct of the Charity, supported by key management personnel who form the Foundation Planning Group. Every meeting of the Board or its committees is attended by the Headmaster or the Bursar, or by both. The Head of the Prep School and the Pocklington School Deputy Head also attend meetings of the full Board of Governors.

Other Relationships

The Headmaster is a member of the Head Masters’ and Mistresses’ Conference (HMC) and the Foundation also holds membership of the Association of Governing Bodies of Independent Schools, the Independent Association of Preparatory Schools, the Independent Schools’ Bursars Association and the Boarding Schools’ Association. All give the opportunity to share expertise, knowledge and experience across the independent school sector as well as appropriate representation to Government and regulators of the views of the sector.

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ANNUAL REPORT OF THE TRUSTEE OF THE POCKLINGTON SCHOOL FOUNDATION FOR THE YEAR ENDED 31 AUGUST 2020

THE POCKLINGTON SCHOOL FOUNDATION
AIMS, VALUES AND PRACTICE OF THE FOUNDATION
Aim To Inspire for Life
Confidence We encourage individuals to be confident and considerate; fostering self-respect and
self-belief.
Responsibility Personal responsibility and service to others are expected; both have opportunity for
expression within the school and beyond.
Achievement In all areas of school life we seek to nurture talent and aspiration, to encourage
perseverance and to prepare young people for the challenges of adult life.
Values We achieve our aim through a strong working relationship between pupils, staff
and families which is founded on the following values:
Trust The Foundation’s Christian ethos guides our caring and straightforward approach.
We treat each other with respect and uphold our tradition as friendly and
compassionate schools.
Truth We value debate which is open, honest and informed to stimulate creativity,
intellectual curiosity and initiative.
Courage We challenge ourselves and each other to change for the better.
Practice We provide a community to be proud of, where pupils can explore, make
mistakes, learn and grow. In order to do this:
Support We put the well-being of our pupils first, with excellent pastoral care.
Learning We encourage successful learning through effective teaching and a
commitment to a broad education.
Recognition We recognise and reward success and commitment, progress and achievement.

The Foundation is an Equal Opportunities employer. Full and fair consideration is given to job applications from disabled persons and due consideration is given to their training and employment needs. The Foundation is a signatory to the Armed Forces Covenant.

The Foundation consults widely with staff and parents when drawing up each iteration of the strategic plan and staff are made aware of the financial and economic performance of the Foundation.

Communication with staff takes various forms including termly and weekly briefings and training, newsletters and e-mail correspondence to augment the usual cascade of information through normal management channels.

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ANNUAL REPORT OF THE TRUSTEE OF THE POCKLINGTON SCHOOL FOUNDATION FOR THE YEAR ENDED 31 AUGUST 2020

THE IMPACT OF COVID 19 ON OPERATIONS

As with every school, this Academic Year has been dominated by the impact of the Coronavirus pandemic on the delivery of the curriculum, on public exam results and on other activities. After schools closed in March we maintained our delivery of education remotely during Lockdown I, and beyond, to the overall satisfaction of parents and pupils as assessed by surveys. Blended teaching and learning followed once classrooms and laboratories began to open for certain year groups in June and July, with full resumption possible from the beginning of the Michaelmas Term; at the time of reporting, during Lockdown II, both schools are operating in accordance with the different Government guidelines which have evolved over the last 8 months, as have the Risk Assessments we have made. The school also cared for the children of key workers and some enterprising colleagues volunteered to manufacture and distribute personal protective equipment for the NHS and care homes when their supply chains seemed to be in desperate straits. Some overseas boarders returned a fortnight early to spend their two weeks of self-isolation with us.

An ad hoc CoVid Committee of the Board has been overseeing the planning by the Headmaster and other senior managers, and the Board acknowledges the hard work of all employees throughout the period. A specific CoVid Risk Register was created to cover off the additional considerations necessary at this time.

The positive result for 2020 was achieved through a combination of: re-budgeting and helping parents by passing on savings to fee payers; pausing uncommitted capital projects; for those staff eligible, accessing the government furlough scheme; collecting nearly all of the fees owing for the term; raising modest hardship and bursary support totalling £45k; awarding means-tested hardship bursaries; inspiring confidence amongst staff, parents and beneficiaries and delivering a quality product, in a safe way; with a special CoVid addendum to our safeguarding children policy; ending the year with healthy cash reserves to see the Foundation through the years ahead.

The plan for 2020/21 is based on: the stress testing of various scenarios conducted in the Spring and Summer; no fee increase - to help fee payers; a reprofiled budget to produce a viable surplus; taking advantage of our enhanced reputation as remote learning provision was well received, giving a bit of a recruitment bounce, so that pupil numbers are much stronger than feared; the provision of a special purpose fund of £150k established to cover extraordinary Covid-related expenses (staffing, sanitising, toilet facilities, IT etc); with debtors under control; with strong cash flow; repaying part of the bank loan for estate development as project spending has been paused, thereby saving loan interest over the next 2-3 years.

Looking to 2021/22, the budget process begins now, with the aim of producing a balanced budget by April 2021, based on pupil projections in February and by considering longer-term re-organisation and savings, including the introduction of a new school working week which will be more attractive to the new generation of parents and to improve students' educational experience.

The Board is satisfied that the finances of the Foundation have shown the resilience required in exceptional circumstances, and with continued strong financial management and decision making can be confident of the financial prospects of the Foundation.

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ANNUAL REPORT OF THE TRUSTEE OF THE POCKLINGTON SCHOOL FOUNDATION FOR THE YEAR ENDED 31 AUGUST 2020

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

The object of the Charity is to advance education in particular by the provision and conduct, in or near the town of Pocklington, of a day and boarding school for boys and girls and by ancillary or incidental educational activities for the benefit of the community. The main beneficiaries are the pupils of the Pocklington School Foundation. Other beneficiaries include pupils at local state schools, who have access to facilities and our outreach programme, and young people who have regular access to our facilities through local and national clubs.

Our objectives are set to further our educational aims and the ethos of the Foundation whilst maintaining a sound financial footing. We have confirmed the core values of the Foundation after consulting widely. It is important to us that we maintain and enhance academic success. This objective is, however, seen in the context of the broader goals we set for the Foundation and its pupils. We endeavour to widen public access to the education we provide and to feature in our local community through the educational use of our cultural and sporting facilities. In setting these objectives, the Governors have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to its supplementary guidance on advancing education and on fee-charging.

The Trustee exercises its stewardship of the permanent endowment of buildings and grounds (including the maintenance of art, artefacts and archive documents) as well as non-endowed trust funds for special purposes in connection with facilities and for scholarships, bursaries, prizes and other educational purposes.

The Foundation comprises Pocklington School, for pupils 11-18, and Pocklington Prep School for pupils 3- 11. We welcome pupils of all backgrounds. For the academic year, the Foundation had an average of 721 pupils (2019: 752) of whom 198 (2019: 215) attended Pocklington Prep School and there were 80 boarders (2019: 98). The Pre-School had an average of 14 pupils (13) and 81% (83%) of the sessions were taken. Local demand remains solid but demographic trends are monitored closely, and the impact of the current economic climate remains uncertain.

In setting the strategy for achieving the objectives, Governors are mindful of the need: to place the academic syllabus, teaching practices and examination results in the broader educational context including valueadded analysis; to ensure the range of co-curricular activities is stimulating and challenging; to invest in infrastructure; and to continue to refine policy and practice for awarding bursaries to encourage wider access to pupils from all backgrounds. Where we can, and where it is wanted, we co-operate with local schools – this remains more practical with primary rather than secondary schools at the moment although efforts continue at Headmaster level and through Chatta, a novel learning application that has been developed to help young learners read and articulate ideas, and which is being demonstrated in several local schools.

We wish pupils to attain the highest academic achievements of which they are capable as well as to provide an extra-curricular programme which aims to develop life-long interests, helps to build self-confidence and instils a desire to contribute to the community. Every effort is made to further enhance standards, to improve facilities and to keep class sizes small. During the year the focus has switched to the delivery of our new 2020 Strategic Education Plan, although school closure due to the pandemic has created a hiatus in its full roll out: developing our curriculum, particularly at Sixth Form in response to changes at A Level; enhancing our pastoral provision, accounting for the evolution of the use of social media, and extra-curricular provision. Parents are given regular information about their children’s well-being and academic progress through parent evenings in addition to the traditional end-of-term and year-end reports. We maintain regular contact with parents throughout the year through formal and informal contacts, and through social media, letters, e-mails, magazines, bulletins and the website. We have begun to consult widely with stakeholders on enhancing the classroom experience and gaining more teaching time. This will culminate within the next 6 months.

The Foundation is committed to safeguarding and promoting the welfare of our pupils and demands that all staff and volunteers share this commitment.

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ANNUAL REPORT OF THE TRUSTEE OF THE POCKLINGTON SCHOOL FOUNDATION FOR THE YEAR ENDED 31 AUGUST 2020

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

During the year we have continued to make significant progress with the final tasks in the 2016-20 Strategic Plan. Departments are implementing their development plans which encourage learning through innovation and challenge. Several societies complement these initiatives by producing breadth through exposure to different ideas.

Many of the objectives of the Strategic Plan have been completed or are poised for further development. We have successfully concluded the following objectives during the year:

No external examinations took place in Summer 2020 due to the Covid-19 pandemic. Students received centre-assessed grades, produced in line with Ofqual guidance.

GCSE Results GCSE Results
Year % 9-7 grades % 9-4 grades % of pupils with 5 9-4
grades
2020 50.6 97.6 100
2019 40.2 92.4 97.3
A level and BTEC results
Year % A*/A grades % A*-B grades % A*-C grades % A*-E grades
2020 49.1% 75.0% 94.5% 100%
2019 32.2% 56.5% 79.2% 97.3%

Of those in the UCAS system, 81% were accepted into their first-choice university and 10% into their insurance choice. The proportion of students who secured a place on a degree course was 96% (96% in 2019). 62% of students in the UCAS system achieved places at Russell Group universities.

The Extended Project Qualification (EPQ) continues to be a popular academic extension option at Sixth Form with most students completing it in their Lower Sixth year. In a year blighted by Covid-19 the 20192020 cohort, consisting of nine students, showed great resilience in completing their projects, exploring a wide range of topics from a graphic novel on the enigmatic figure of Akenhaten to the moral implications of having driverless cars on our roads. The Higher Project Qualification (HPQ) is in its 3rd year. 21% of our current 5th Year have completed the project and are awaiting their preliminary results; 23% of our current 4th Year are working on projects with topics varying from Victorian baking to extinct reptiles. The increase in student uptake illustrates the success of the project in extending the academically strong as well as providing a platform for developing independent learning.

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ANNUAL REPORT OF THE TRUSTEE OF THE POCKLINGTON SCHOOL FOUNDATION FOR THE YEAR ENDED 31 AUGUST 2020

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR (continued)

We do not, though, assess achievement by examination results alone. Pocklington School subscribes to independently set and assessed base line tests at age 11, 14 and 16 which produces predictions of GCSE and A level. Staff use these to assess value-added performance and to monitor pupil performance across each academic year.

Pupils have participated in a range of external extra-curricular competitions and events this academic year, although a number of events have been postponed or cancelled in light of current Covid-19 restrictions. Pupils took part in the Physics Olympics which was run online this year. School teams also participated in all UKMT Maths Challenges online. Two students qualified for the Olympiad papers from the Intermediate group. Three students were entered for the Cambridge Chemistry Challenge in June 2020. Pocklington School entered a record seven teams in the Student Investor Challenge this year, which was opened to Y10 and Y11 pupils as well as Sixth Form. The competition involved teams of four investing virtual money on the London Stock Exchange and other investment instruments. One student had his photography work published in online magazine, ‘Uniquely Aligned’. Five of our Sixth Form linguists took part in the European Commission’s Juvenes Translatores translation competition. Five students have taken part in and passed The Duke of York Inspiring Digital Enterprise Award (iDEA.), an international programme that provides digital skills education in the form of online modules.

All our Prep School pupils progressed to Pocklington School or the senior school of their choice. We assess pupils from year 3 onwards on an annual basis through online standardised assessments; in addition to tracking performance, a further vital aspect of assessment at the Prep School is the teacher’s individual assessment of pupil’s progress. The school’s tracking procedures now enable automatic transfer from Pocklington Prep School to Pocklington School, replacing the need for most pupils to sit the Pocklington School entrance examination. Potential scholars are identified, and they are invited to sit the same examinations; late arriving pupils (joining during years 5 or 6) are required to sit the entrance examinations.

The Foundation is very proud of the all-round opportunities provided for all pupils. A wide range of team and individual sport is encouraged and as we navigate through this pandemic period students have acquitted themselves admirably through the very comprehensive program provided. Unfortunately, we have been unable to fulfil fixtures as extensively as in previous seasons. We do still have several boys and girls representing the county or region at different age groups in rugby, athletics, netball, cross-country, cricket, swimming, squash, tennis, and hockey and we hope for a very speedy return to normality to allow them all to display their extensive talents across such a wide range. The latter half of the academic year was adversely affected by COVID-19, with no sports fixtures taking place from March onwards. This was unavoidable, and we hope to make up for lost time in the coming months

Pocklington School organized overseas tours, trips, excursions and exchanges to the USA (History), Poland (Religious Studies) and Germany (German Exchange.) Each trip allowed the students to broaden their horizons as well as deepen their knowledge in the respective subjects. Trips from Easter 2020 onwards were sadly cancelled due to the restrictions of Covid-19. Nevertheless, the History Department compensated for the cancellation of the Battlefields Tour by running a ‘virtual Battlefields Tour’ during the Easter Holidays. The clips were recorded and published on the Pocklington School History Department twitter page for all to learn from and enjoy. The Sports Tour to South Africa in August 2021 has been cancelled with a view to giving parents more certainty when planning the year ahead.

Residential experience for Prep School pupils included accessing a wide range of activities at Bewerley Park . We also provide further learning opportunities for our pupils through a variety of educational day trips which this year included an afternoon of outdoor activity for Year 2 culminating in an overnight camp on the school grounds. Again, these opportunities were substantially reduced from March, and the overseas language trip had to be cancelled. Forest School and ‘Mind, Body and Soil’ continue to run successfully in the Pre-Prep, making great use of the training undertaken by the staff.

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ANNUAL REPORT OF THE TRUSTEE OF THE POCKLINGTON SCHOOL FOUNDATION FOR THE YEAR ENDED 31 AUGUST 2020

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR (continued)

Music is central to life at Pocklington. All pupils are exposed to music through the curriculum, church services, assemblies and other whole school events. There is ample opportunity to become involved in a variety of ensembles aimed at different styles, ages and abilities. Prior to lockdown, the Music Department was able to deliver music for an Autumn Concert, Commemoration Day, two Soloists’ Concerts and the Carol Service. The highlight of the year was a public concert in March which took place at Beverley Minster, given by the Swing Band, Chamber Choir, String Group and soloists.

During the lockdown period, many of the peripatetic staff were able to continue delivering music lessons via Zoom to those families who wished. The curriculum shifted online using the online platform ‘Focus on Sound’ and concerts were compiled remotely and published online at the end of May and one at the beginning of July. Looking ahead, the Department will continue to provide as many opportunities for pupils as allowable under the guidance from the Department of Education. The curriculum has been re-written to give pupils a more robust progression to GCSE and the provision of Apple Macs has enabled composition work to flourish. We continue to host music examinations at the school with three days of ARBSM and LCM exams taking place in December.

In the Prep School, music continues to be a popular choice of activity. Many children opt to undertake individual music lessons, and extra-curricular activities are well attended. The school carol concert was very well received. In order to continue our commitment to music, the Prep School will continue to enable concerts and performances to happen via Zoom for the foreseeable future

In the Summer Term, we ran remote Sports Day and the School Walk, presenting both as challenges to be participated in whilst at home. Virtual music concerts and drama productions were broadcast within the school community and we are looking to continue with this format as we remain with social distancing guidelines preventing large audiences to congregate in school. Remote training for D of E has been delivered via Zoom and Drop Everything and Read has been a success both in school and virtually across the Summer and Michaelmas Terms.

We have a Self-Evaluation Policy, and a comprehensive series of evidence-gathering procedures underpin the process. The constant scrutiny of our policies and procedures by staff trained in regulatory compliance ensures that the school continues to be compliant with the current legislative and regulatory environment within which we operate. This work was validated by the ISI Inspection in December 2017 where the report commented: ‘The school meets the standards in the schedule to the Education (Independent School Standards) Regulations 2014, the National Minimum Standards for Boarding Schools 2015, and relevant requirements of the statutory framework for the Early Years Foundation Stage, and associated requirements, and no further action is required as a result of this inspection’. A snap inspection in February 2019 was passed successfully.

The pastoral care of our pupils is a key focus of our schools. Each Pocklington School pupil has a tutor and is attached to one of the houses where the housemaster or housemistress has overall care of the wellbeing and academic progress of the pupil. Boarders also have a boarding houseparent who looks after them with a dedicated team of residential and non-residential staff in each of the four boarding houses. In addition to pastoral staff (tutors and house staff), pupils are further supported by the Wellbeing Service where children can access sessions with trained counsellors and/or independent clinical psychologists. Each pupil therefore has a large team of adults who are looking after them, all supported by the Head of Pupil Welfare, reflecting the importance of our pupils’ welfare at Pocklington.

PSHE has been developed in line with DfE Guidance. External speakers also visit the school to talk about a range of issues including sex and relationships, substance abuse, screen time and online safeguarding.

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ANNUAL REPORT OF THE TRUSTEE OF THE POCKLINGTON SCHOOL FOUNDATION FOR THE YEAR ENDED 31 AUGUST 2020

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR (continued)

In the Prep School we have continued to strengthen our pastoral provision. The newly appointed Pastoral Lead has developed the skills of all our staff and represents a welcome port of call for mid-level pastoral issues. Two staff have undergone training to deliver ‘draw and talk’ sessions as a way of encouraging children to express emotions that might otherwise be detrimental to their mental health. Our sex education provision has changed; we now begin in the Pre-School and the course is started with ‘Big Talks’ (an external company) who work with staff, children and their parents to ensure that clear and accurate messages are delivered in an age-appropriate way.

There is an annual review of our Safeguarding Suite of policies by the Board. The Deputy Head (Pastoral) and the Head of Pupil Welfare present an annual report to Governors outlining any patterns of wellbeingrelated concerns and an overview of challenges and initiatives. Regular review of our policies is undertaken by the pastoral team who also co-ordinate training, at least once a year, for all staff about Keeping Children Safe in Education as well as briefings and developments in best practice in schools and boarding. We continue to hold Prevent Education Team sessions with our local Safeguarding Children Partnership (ERSCP) and the Police for Year 8 and Year 9 pupils. Early March a Covid 19 - Child Protection Policy Addendum was drawn up and circulated which was reinforced during our summer INSET by including familiarisation with the Addendum and the Remote Learning Policy. Throughout the lockdown pastoral virtual seminars were conducted by clinical psychologists and included training on supporting families and providing support over the telephone.

Boarding pupils have an induction programme and enjoy an ever-developing range of activities in the evenings and at weekends (although this has required significant change and creativity during the ongoing pandemic). There is provision for boarders to be looked after at school during exeats and we expect to remain supportive of those unable to go home or to stay with guardians because of difficulties related to the current pandemic.

The Chaplain prepares candidates for confirmation and boarders have weekly services, in addition to the School services, in the School Chapel and at All Saints in Pocklington; the Foundation enjoys an excellent relationship with the latter which has enabled year group bubbles to continue to worship each week in the parish church on a rota basis. The Christian ethos of the school and our links with the Church of England and the local and wider community are very important to us as a Foundation.

Drama at Pocklington is taught by active practitioners and academics and remains a subject which demands and achieves high standards. Recent results have included several 9 grades at GCSE and several As at A Level. Studies include sound, lighting, and costume with excellent results in all. Exams are held throughout the year, meaning that approximately twenty performances would be staged each academic year and normally available for an audience to attend. The summer’s Lower School production of Pinocchio was cancelled but hopefully will be able to return for Summer 2021. The Drama department has committed to completing the examination of the existing LAMDA candidates that were interrupted in taking their Speaking Verse & Prose or Acting last year, and we plan to have these examined remotely, with Gold medals in Acting held in November.

The Combined Cadet Force has adapted well to the fore-shortened year and is bouncing back well. Dedicated staff are delivering training without the help of their student NCOs as bubbles cannot mix. In November 2019 more than 50 Officers and Cadets represented the school in the Pocklington Town Remembrance Day parade, and we are all hugely disappointed that it was cancelled this year. Air experience flying continued to be extremely popular amongst our RAF Cadets and although they are currently on hold, we look forward to such opportunities returning in 2021 not just for flying but for adventure training and the summer camps. We continue to nurture responsible, aware students and have seen many over recent years turn their enjoyment of the cadet force into a successful career, occasionally in the armed forces, although often into a career elsewhere.

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ANNUAL REPORT OF THE TRUSTEE OF THE POCKLINGTON SCHOOL FOUNDATION FOR THE YEAR ENDED 31 AUGUST 2020

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR (continued)

Due to further restrictions of Covid-19, the Community Action programme which is usually on offer to our L6 students has been suspended. The risk to both our students and the elderly, disabled and primary schools’ community of running the programme was too significant and we hope to recommence the programme once it is safe to do so.

The Prep School continues to maintain its positive atmosphere, enabling lessons where children want to learn and progress. Pupils enjoy project work immensely, immersing themselves in the opportunity to direct their learning, as well as learning in collaboration with others; all pupils benefit from the expertise of different teaching staff. As at Pocklington, the Prep School has a full programme of dramatic, musical and charitable events that involves all the children; pupils from local schools are invited to attend matinées of drama productions. However, this year only the Pre-Prep nativity and Prep Carol Concert took place in front of a ‘live’ audience. The Year 3 & 4 production was filmed, and Years 5 and 6 were not able to work on a production at all.

The Foundation could not achieve its objectives without its teaching and support staff; their continued hard work, dedication and interaction with the pupils makes such a difference to the pupils’ experience. This year has been more demanding than ever with our staff having to adapt to new ways of working, including remote teaching, working from home, attending work under new health & safety regimes and implementing new initiatives such as the furlough scheme and boarding quarantine. The furlough scheme brought its own challenges for those furloughed, and those still at work. This year it has been more important than ever to find ways to stay connected and keep our staff motivated. Line managers have been key in this, but so has the work undertaken by the senior management team and Human Resources in keeping the staff body updated and consulted on the many changes. Well-being has been, and remains, an issue to have at the forefront of our minds. The Pock Health committee has not met since the start of the pandemic but will recommence its work shortly to look at the longer term view of how we address staff wellbeing and morale. Performance management has been delayed during this period, but is now being recommenced, with staff who were due a review during the school closure periods and the start of this term having an opportunity to have a review.

FUTURE PLANS

The Governors intend to maintain the Foundation’s position in a competitive market by investing to provide high quality education for our pupils - achieving a high standard of academic results whilst maintaining the breadth and depth of the education provided. The Headmaster and senior staff continue to review the curriculum to ensure that the educational opportunities remain appropriate for our pupils’ development.

We have reached the successful conclusion of Strategic Plan 2016-20. We have begun to implement Strategic Education Plan 2020.

DETAILS OF BURSARY AND SCHOLARSHIP AWARDS

Bursaries

This year the value of means-tested bursaries totalled £195,085 (2019: £203,400) representing 1.82% (1.76%) of gross tuition fees, including hardship support to families during the pandemic. This provided assistance to 28 (2019: 22) of our pupils including 4 pupils (2019: 3) who benefited from full remission of fees. In common with the experience in similar schools, the number of applicants continues to fall, and we are looking at how we prevent the initial steps necessary for joining the Foundation from appearing too daunting as experience shows that once a pupil joins the school none leave before their school career is complete. The Foundation can also help pupils in receipt of 100% bursaries to meet some of the costs of educational trips, examination entrance fees and similar expenses. Twenty three children of servicemen and diplomats (2019: 28) received a discount on their boarding fees. The funds of the John Dolman Trust remain sufficient to fund one 100% bursary; the aim is to achieve a significant increase in bursary funding, depending on fundraising, legacies and investment performance.

11

ANNUAL REPORT OF THE TRUSTEE OF THE POCKLINGTON SCHOOL FOUNDATION FOR THE YEAR ENDED 31 AUGUST 2020

DETAILS OF BURSARY AND SCHOLARSHIP AWARDS (continued)

Scholarships

In addition, the Foundation maintained scholarships and exhibitions to 69 pupils (2019: 71) including 10 (2019: 9) music scholarships, based on merit and potential, totalling £70,015 (2019: £71,633) and representing 0.65% of our gross fees, continuing the decline in non means-tested awards from 1.65% in 2011; this year-on-year reduction in the value of scholarships is helping to provide the funds for bursaries. The performance of pupils receiving scholarships is reviewed at least annually to ensure their progress is in line with their abilities. No scholarships were withdrawn in the year.

Review

The Governors review the bursary and scholarship policies regularly to ensure that able children can accept offers of places through the availability of means-tested fee assistance. The annual review informs the continued refinement of our policy and helps to achieve our ambition of even wider access.

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

The Foundation’s net incoming resources as shown in the Statement of Financial Activities nearly met the targeted percentage of fee income set out in the financial plan for another year, despite the pandemic and a fee reduction for parents. The surplus has been achieved through rigorous planning, by maintaining revenue and through tight cost control. As a charity, the parents of our pupils have the assurance that all of our income is applied for educational purposes. We enjoy tax exemption on our educational activities (there is no VAT on fees) and on our investment income and gains, and we are also entitled to an 80% reduction on our business rates on the property we occupy. The financial benefits we receive from these tax exemptions are all applied for educational purposes. We are, though, unable to reclaim VAT input tax on our costs as we are exempt for VAT purposes. In addition to the very substantial benefits we bring to our pupils, to the local community and to society through the education we offer, our bursary programme and our community programme create a social asset without cost to local, regional or central government; although obviously somewhat constrained in recent months, we hope to recommence this outreach activity in 2021.

The Foundation has paused its investment in major infrastructure and development projects whilst assessing the impact of the pandemic. This will enable measured planning to take place on a three-year view. The Foundation’s surplus is in line with the budget and the strategic plan. The consolidated financial statements include the Foundation, Pocklington School Enterprises Limited and various funds, the use of which is restricted by trusts (see note 15). Consolidated net incoming resources for the year, as set out in the Statement of Financial Activities on page 23, amounted to £156,469 (2019: £280,335), stated before losses on investments of £56,742 and after donations of £76,180 (2019: £155,389).

Gross fee income for the year was deliberately reduced to £10,669,025 to assist parents during the lockdown; last year’s income was £12.227 million. The trading subsidiary continues to hire out the Foundation’s facilities and has contributed £30,585 (2019: £42,586) to the operating surplus. Group total funds increased by £99,727 (2019: £851,683 decrease) for the year. Cash used in operating activities amounted to £42,273 (2019: cash generated £941,131) including donations. Capital expenditure amounted to £327,668 (2019: £392,257).

Free Reserves

At 31 August 2020, the total reserves of the Foundation amounted to £13,521,276 (2019: £13,421,549). Reserves comprise designated funds (fixed assets and associated bank borrowing) amounting to £10,272,868; restricted funds (comprising donations for specific purposes, which are held within the cash balances of the Foundation and includes endowments) amounting to £2,431,052; free reserves in other unrestricted funds stood at £803,740 (2019: £850,777). The Foundation continues to be dependent on annual cash generation to fund operating activities and loan repayments.

12

ANNUAL REPORT OF THE TRUSTEE OF THE POCKLINGTON SCHOOL FOUNDATION FOR THE YEAR ENDED 31 AUGUST 2020

FINANCIAL REVIEW AND RESULTS FOR THE YEAR (continued)

Governors believe that funding in place is sufficient for current purposes and to support the priorities of the Strategic Plan. The aim is to provide an excellent environment for pupils by improving facilities as funds allow, and this has not changed. The maintenance of existing buildings is funded from income and significant capital projects will continue to be funded through a mixture of fundraising, bank loan and income. The Governors’ policy remains that of maintaining sufficient annual cash surpluses to meet operating and investment needs, in order for the charity to meet its stated objectives. Governors continue to review the financial position of the Foundation in the light of the present economic uncertainties, and the budget process for the next 2-3 years will continue to be the central measure to control costs and to produce a viable surplus. Governors had to have funding certainty when commissioning the new Art and Design Centre so a loan was negotiated to fund that project and the Estate Development Plan. The success of the fundraising means that we also now hold significant cash as well, and Governors have decided it is appropriate to pay down the loan by £2 million, a decision reached after the year-end.

Reserves and Financial Health

The Governors regularly review the finances, budgets and performance against budget, together with cash flow analysis, as part of effective stewardship of the Foundation. The Governors have invested substantial sums in new buildings in recent years and have a continuing programme of refurbishment, development and investment to improve further the teaching facilities for our pupils. In the current circumstances, the Governors consider that, on the strength of the Foundation’s trading result last year, the size of its cash reserves, the pause in capital investment and the three-year view they are now taking, the reserves are appropriate to the needs of the Foundation.

Remuneration Policy

Pay scales, allowances and terms and conditions of service are reviewed periodically and set by the Board. Responsibilities, pay and working hours have been compared to benchmarks in recent years. Staff surveys also play a part. Terms and conditions have been reviewed and all employment policies updated. All staff are paid more than the National Living Wage and have a comprehensive range of benefits including access to a counselling service.

The Foundation aims to recruit, subject to experience, at the lower to medium point within any band to allow subsequent reward for the additional contribution which often depends on greater experience. Management and pastoral leadership roles are recognised. Except for two senior managers, setting an individual’s pay is delegated to the Headmaster. The pay of staff is reviewed annually and normally increased by a cost of living increment, often reflecting CPI. The rewards of senior managers are benchmarked annually and set by the Board.

Trustees give of their time freely and no trustee remuneration was paid in year. Details of trustee expenses and related party transactions are at Note 22.

Grant Making Policy

Awards, scholarships, exhibitions, bursaries, grants and prizes made to pupils from restricted and unrestricted funds amounted to £688,846 (2019: £765,322), in part due to the reduction in gross fees where grants are a percentage of the fee. The Governors’ policy and report is shown in the separate panel.

13

ANNUAL REPORT OF THE TRUSTEE OF THE POCKLINGTON SCHOOL FOUNDATION FOR THE YEAR ENDED 31 AUGUST 2020

FINANCIAL REVIEW AND RESULTS FOR THE YEAR (continued)

Fundraising

The Development Office has enhanced the ability of the Foundation to attract donations to the John Dolman Trust without having to resort to specialist external consultants and we do not use professional fundraisers to solicit gifts. We have quietly launched an appeal for the bursary fund, mainly through legacies, and have created two new vehicles to assist – the John Dolman Society for all donors and the 1514 Club for testators. Costs were £54,632, 71.7% (2019: 34.7%, 2018: 23.5%, 2017: 8.15%) of the £76,180 (2019: £155,389) raised; most of the donations received are the sums covenanted for the Art and Design campaign but the costs relate to the office and the new campaign. We usually hold a range of events to help those previously connected with the Foundation and recent donors remain as closely engaged as possible with the Foundation’s charitable priorities, supplemented by bulletins and updates. Most gifts are solicited and agreed through one-to-one meetings or exchanges with members of staff, or through telephone calls made by staff or supporters. The Foundation is voluntarily subject to the Fundraising Regulator and subscribes to the Code of Fundraising Practice; it is unaware of any occasion in the reporting period upon which it has failed to comply with the Code. The Foundation has never received any complaints about its fundraising activities. Great care is taken in dealing with individuals evidencing any sort of vulnerability. No subsequent attempt to persuade is ever made following a negative response to a specific fundraising overture, and the person approached is always assured that he or she remain a valued member of our community irrespective of the response. Some electronic communications include information on how donations may be made but most are not marketing or 'solicitation' communications as they serve to inform the wider community about developments at their School. The Foundation records and assiduously adheres to both opt-in preferences concerning how people wish or do not wish to be contacted about fundraising, and communication preferences concerning e-mails, mail and telephone calls.

Investment Policy and Objectives

The Governors are required to invest free monies in accordance with the standard investment criteria of the Trustee Act 2000. They are obliged to take especial regard of the suitability to the Foundation of any proposed investment whilst still providing a prudent spread of risk through diversity.

All free monies are invested for a reasonable overall rate of return in income and on capital. Governors have a moderate risk investment strategy and wish to generate income whilst preserving the real capital value of investments in line with a target return of 5% per annum on an anticipated long-term view of more than 10 years; this measurement will take account of growth and income. Having weighed advice from Brewin Dolphin Limited, Governors have rebalanced the portfolio to achieve this goal and now use their discretionary service with set parameters ‘Cautious with Risk – Income Return’ to achieve these aims. When not offset against any borrowed funds, short-term monies, including fees in advance, are placed on Treasury Reserve at the beginning of each term.

Restricted funds not eligible for the investment strategy noted above and the funds of the smaller subsidiary charities are deposited with the Foundation’s unrestricted funds. All receive an agreed internal rate of interest on capital, usually base rate plus 1.5% (reviewed 2018).

The bursary funds of the John Dolman Trust are invested on the same basis as those of the Foundation. Funds held by the Trust for specific building projects are, by their very nature, relatively short term, and therefore invested to generate income and to preserve the capital. The trust deed allows the funds of the Trust to be applied to the benefit of the Foundation; so any short-term cash holdings may be used to offset any borrowing of the Foundation in return for an agreed rate of interest, usually base rate plus 1.5% (reviewed 2018) but without the capital leaving the Trust.

Investment decisions are reviewed regularly by the Finance Committee. At the end of the financial year, the Foundation’s long-term investments had decreased to £479,256 (2019: £541,510); £18,000 was drawn to fund bursary support. Yield was 3.7%. A further £17,687 is held in cash within the portfolio, pending investment.

14

ANNUAL REPORT OF THE TRUSTEE OF THE POCKLINGTON SCHOOL FOUNDATION FOR THE YEAR ENDED 31 AUGUST 2020

FINANCIAL REVIEW AND RESULTS FOR THE YEAR (continued)

Group Structure and Relationships

The Charity has two wholly-owned non-charitable subsidiaries: Pocklington School Enterprises Limited, which performs trading functions such as lettings, oversight of the school shop and capital building works and a covenant of £30,585 (£42,586) is to be made by the company; Pocklington School International Ltd, which was created in 2018, has yet to trade.

The Foundation actively supports the promotion of the highest standards in the Independent Schools sector. The Foundation participates in the spread of best practice through membership of the professional bodies engaged with the sector. We also co-operate with other local and national charities and organisations to widen access to the schooling we provide, to optimise the use of our sporting and cultural facilities and to ensure our pupils are aware of the social context of the all-round education they receive.

Risk Management

The Governors are responsible for the management of the risks faced by the Foundation. The risks facing the Foundation are identified, categorised, assigned and systematically assessed, and recorded in the Risk Register. Mitigation is put in place throughout the year. Detailed considerations of risk have been delegated to the appropriate committee, assisted by the Foundation Planning Group. After a coherence check by the Nominations and Governance Committee, risk is reviewed by the whole Board each Michaelmas Term. The key controls used include:

During the pandemic, an additional specific CoVid Risk Register was created and is still being used to help manage the risks posed. Through the risk management processes established by the Foundation, the Governors are satisfied that the major risks identified have been adequately mitigated where necessary and where possible. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed. The Internal Financial Controls used by the charity have been reviewed. The Trustee is permitted by its Articles of Association to maintain governor and officer liability insurance. The major risks relate to the linked issues of future pupil numbers and charitable status.

Finances. The future of the Foundation is reliant on pupil numbers and income so the schools can function. Affordability and economic uncertainty affect recruitment. Mitigation is provided through active marketing, our reputation, demonstrating value for money, cash flow management, budget setting and in-year adjustment, contingencies, reserves, fundraising, prudent investment and borrowing decisions and access to short-term banking facilities. Currently, significant cash is also held in further mitigation of the unforeseen.

Safeguarding and Reputation. Our success is secured by our reputation for an all-round education and excellent pastoral care. This is protected by our suite of safeguarding policies, investment in pastoral staff, safe recruitment procedures, academic rigour and enhancement, and active Health and Safety management and scrutiny (where much risk is attached, within sport and educational visits).

Academic Performance. The reaction we make to the changes in the A Level environment and how we develop our curriculum to attract the parents of younger children will be key to our continued success.

15

ANNUAL REPORT OF THE TRUSTEE OF THE POCKLINGTON SCHOOL FOUNDATION FOR THE YEAR ENDED 31 AUGUST 2020

FINANCIAL REVIEW AND RESULTS FOR THE YEAR (continued)

Political Context. The current uncertainty about Brexit and customer confidence, the imposition of VAT on fees, the removal of mandatory business rates relief and the taxation of annual surpluses as well as the implications of further increases to the employer contribution to the pension scheme for teaching staff are all threats that the Board is considering.

Serious Incidents. There were no serious incidents during the reporting period that should have been reported to the Charity Commission by the Trustee but were not.

ACCOUNTING AND REPORTING RESPONSIBILITIES

The Charities Act 2011 requires the Trustee to prepare accounts for each financial year which give a true and fair view of its financial activities during the year and of its financial position at the end of the year.

In preparing the accounts the Trustee follows best practice to:

The Trustee is responsible for keeping accounting records which are such as to disclose, with reasonable accuracy, the financial position of the Foundation at any time and to ensure that the accounts comply with charity law. The Trustee is also responsible for safeguarding the Foundation’s assets and ensuring their proper application in accordance with charity law and hence for taking reasonable steps for the prevention and detection of error, fraud and other irregularities.

Insofar as each of the Governors is aware at the time of the Board meeting when approval is given, there is no relevant information needed by the Foundation’s auditor of which the auditor is unaware. Each Governor has taken all steps that he or she should have taken as a member of the Board of Governors to become acquainted with any relevant audit information and to establish that the auditor is aware.

Approved by the Trustee on 4 December 2020 and signed on its behalf by:

…………………………………. T A Stephenson Chairman

…………………………………. J A Farmer Vice Chairman

16

PUBLIC BENEFIT AND OUTREACH

State school partnerships and support

We support the development of pupils from local state primary and secondary schools in a variety of contexts. Academic links

Pastoral links

Extra-curricular links

Both the Schools Outreach Programme and our work with Chatta have contributed to us being shortlisted for the Educate North Community Engagement Award for Schools 2020.

Community Service

We are actively engaged in charitable work in the local and wider community in a variety of ways:

17

PUBLIC BENEFIT AND OUTREACH (continued) Wider Community Initiatives

Pocklington School provides support to a wide range of groups in our local community.

Community Access

18

BURSARY POLICY

Widening Access

The Foundation seeks to benefit the public through the pursuit of its objects. Fees are set at a level to ensure the financial viability of the charity and at a level that supports the provision of a first-class education whilst acknowledging that the East Riding of Yorkshire is not the wealthiest area in the country, and that our rural location can also entail considerable travel expense.

Our schools welcome pupils from all backgrounds. We need to be satisfied that we will be able to educate and develop prospective pupils to the best of their potential; entrance interviews and assessments are undertaken to ensure that potential pupils can cope with the pace of learning and benefit from the education we provide. An individual’s economic status does not form part of our assessment processes. We are an equal opportunity organisation and are committed to a working environment that is free from any form of discrimination; we make reasonable adjustments to meet the needs of staff, parents or pupils who are or become disabled.

Our bursary scheme is important in helping to ensure children from families who would otherwise not be able to afford the fees can access the education we offer. Our bursary awards are available to all who meet our general entry requirements and are made solely on the basis of parental means or to relieve hardship where a pupil’s education and future prospects would otherwise be at risk. In assessing means we take a number of factors into consideration including family income, investments, property and savings and family circumstances. Currently we are making a determined drive to encourage access to our Sixth Form and our efforts and funding are directed accordingly. However, we do not have a large endowment and in funding our awards we have to be mindful that we must ensure a balance between fee-paying parents, many of whom make considerable personal sacrifices to fund their child’s education, and those benefiting from the awards. Currently, only after Sixth Form Bursaries have been awarded do we consider other applications from these limited funds.

The bursary awards cover up to 100% of the fees. We also supplement 100% bursary awards to pay for co-curricular activities and educational school trips. Information about fee assistance is provided to all applicants. We also advertise the awards in the local press and through local businesses, libraries and our website.

Promoting High Academic Standards

The purpose of our scholarship awards is to recognise high academic potential or the ability to excel in our co-curricular activities. Our scholarships are awarded on the basis of the individual’s academic potential or evidence of exceptional abilities which will contribute to our co-curricular activities.

Newer scholarships and exhibitions are now rewarded with a 10% and 5% reduction in fees; previously fixed remission of £1,000 and £500 was awarded respectively thus maintaining our competitiveness and our ability to support means-tested bursaries. Where further assistance is required, scholarship awards may themselves be supplemented by a means-tested bursary. We advertise the availability of scholarships and exhibitions in all our marketing material in a similar manner to bursaries.

Sibling and Forces Discounts

To underline the value we place on continuity for, and equality within, families, we offer discounts where parents have more than two children within the Foundation. We also encourage the continuity of education for the children of servicemen, many of them non-commissioned officers, which assists in maintaining a thriving boarding community and its positive enhancement to our ethos.

Assistance for our staff

As part of our emphasis on attracting and retaining high calibre staff, we offer a discount scheme when staff members choose to educate their children at our schools, from Pre-Prep to A Levels.

19

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEE OF THE POCKLINGTON SCHOOL FOUNDATION

Opinion

We have audited the financial statements of The Pocklington School Foundation for the year ended 31 August 2020 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Charity Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

20

INDEPENDENT AUDITOR’S REPORT

TO THE TRUSTEE OF THE POCKLINGTON SCHOOL FOUNDATION

Other information

The trustee is responsible for the other information. 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 we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of the trustee

As explained more fully in the trustee’s responsibilities statement set out on page 16, the trustee is 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 trustee determines 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 trustee is responsible for assessing the group’s and the parent charity’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 trustee either intends to liquidate the charity or to cease operations, or has no realistic alternative but to do so.

21

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEE OF THE POCKLINGTON SCHOOL FOUNDATION

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

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.

Use of our report

This report is made solely to the charity’s trustee, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustee those matters we are required to state to it 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 charity and the charity’s trustee as a body, for our audit work, for this report, or for the opinions we have formed.

...................................... HPH, Chartered Accountants Statutory Auditor

54 Bootham York YO30 7XZ

24 February 2021

HPH, Chartered Accountants is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

22

THE POCKLINGTON SCHOOL FOUNDATION CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020

Restricted
Unrestricted & Endowed Total Total
Note Funds Funds 2020 2019
£ £ £ £
Income and endowments from:
Charitable activities
School fees receivable 2 10,024,958 - 10,024,958 11,539,427
Ancillary trading income 3 31,072 - 31,072 43,642
Government grant income - CJRS 578,566 - 578,566 -
Other trading activities
Non-ancillary trading income 21 38,838 - 38,838 84,502
Investments
Investment income 6 8,589 25,051 33,640 54,739
Voluntary sources
Donations and legacies 100 76,080 76,180 155,389
Total £ 10,682,123 £ 101,131 £ 10,783,254 £ 11,877,699
Expenditure on:
Raising funds
Non-ancillary trading 21 6,151 - 6,151 38,917
Other income-generating activities 54,632 - 54,632 53,942
Financing costs 86,402 5,069 91,471 113,305
Total deductible costs 147,185 5,069 152,254 206,164
Charitable Activities
Education and grant making 10,473,641 890 10,474,531 11,391,200
Total 4 £ 10,620,826 £ 5,959 £ 10,626,785 £ 11,597,364
Net income and
net movement in funds before
losses on investments 61,297 95,172 156,469 280,335
Net losses on investments 6 - (56,742) (56,742) (10,018)
Net income 61,297 38,430 99,727 270,317
Transfers between funds 15, 16, 17 18,000 (18,000) - -
79,297 20,430 99,727 270,317
Other recognised losses
Pension scheme actuarial losses - - - (1,122,000)
Net movement in funds 79,297 20,430 99,727 (851,683)
Reconciliation of funds:
Total funds brought forward 23 10,997,311 2,424,238 13,421,549 14,273,232
Total funds carried forward £ 11,076,608 £ 2,444,668 £ 13,521,276 £ 13,421,549

The notes on pages 26 to 41 form part of these financial statements

All income and expenditure in the year derives from continuing operations

A comparative statement of financial activities is shown at note 23 to these financial statements

23

THE POCKLINGTON SCHOOL FOUNDATION BALANCE SHEETS AS AT 31 AUGUST 2020

Note
FIXED ASSETS
Tangible fixed assets
5
Investments
6
CURRENT ASSETS
Stocks
7
Debtors
8
Cash at bank and in hand
CREDITORS: amounts falling due
within one year
9
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS: amounts falling
due after more than one year
10
TOTAL NET ASSETS
REPRESENTED BY
Unrestricted funds - free reserves
17
Unrestricted funds - designated
17
Restricted funds
15
Endowed funds
16		 2020
2019
£
£
13,577,849
13,651,516
479,256
541,510
14,057,105
14,193,026
1,595
8,418
562,045
387,134
5,061,726
5,695,327
5,625,366
6,090,879
(2,536,633)
(2,997,124)
(2,536,633)
(2,997,124)
3,088,733
3,093,755
17,145,838
17,286,781
(3,624,562)
(3,865,232)
13,521,276
13,421,549
803,740
850,777
10,272,868
10,146,534
2,431,052
2,410,720
13,616
13,518
£ 13,521,276
£ 13,421,549
Consolidated		 2020
2019
£
£
13,664,849
13,738,516
-
-
13,664,849
13,738,516
1,595
8,418
570,158
423,828
3,117,823
3,756,754
3,689,576
4,189,000
(2,609,269)
(3,027,482)
(2,609,269)
(3,027,482)
1,080,307
1,161,518
14,745,156
14,900,034
(3,624,562)
(3,865,232)
11,120,594
11,034,802
708,405
663,442
10,272,868
10,233,534
125,705
124,308
13,616
13,518
£ 11,120,594
£ 11,034,802
Foundation only		 2020
2019
£
£
13,664,849
13,738,516
-
-
13,664,849
13,738,516
1,595
8,418
570,158
423,828
3,117,823
3,756,754
3,689,576
4,189,000
(2,609,269)
(3,027,482)
(2,609,269)
(3,027,482)
1,080,307
1,161,518
14,745,156
14,900,034
(3,624,562)
(3,865,232)
11,120,594
11,034,802
708,405
663,442
10,272,868
10,233,534
125,705
124,308
13,616
13,518
£ 11,120,594
£ 11,034,802
Foundation only
13,738,516
8,418
423,828
3,756,754
4,189,000
(3,027,482)
(3,027,482)
1,161,518
14,900,034
(3,865,232)
11,034,802
663,442
10,233,534
124,308
13,518
£ 11,034,802

The notes on pages 26 to 41 form part of these financial statements

Approved by the Governors on 4 December 2020 and signed on their behalf by:

........................................ T A Stephenson Chairman

….....................................

J A Farmer Vice Chairman

24

THE POCKLINGTON SCHOOL FOUNDATION CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2020

Note
Cash flows from operating activities:
14
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Proceeds from sales of investments
Purchase of investments
Net cash used in investing activities
Cash flows from financing activities:
Finance costs paid
Repayments of borrowing
Net cash used in financing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of
the reporting period
Net cash (used in)/provided by operating
activities		 2020
£
(42,273)
33,640
(332,888)
150
21,500
(15,988)
(293,586)
(97,741)
(200,001)
(297,742)
(633,601)
5,695,327
£ 5,061,726		 2019
£
941,131
68,920
(392,257)
80
5,898
(21,438)
(338,797)
(117,568)
(133,334)
(250,902)
351,432
5,343,895
£ 5,695,327

Charity law requires separate administration of the cashflows of endowed and other restricted funds of the charity. This constraint has not adversely affected group cashflows as stated above.

The notes on pages 26 to 41 form part of these financial statements

25

THE POCKLINGTON SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1 ACCOUNTING POLICIES

Legal entity

The Pocklington School Foundation is regulated by the Charities Commission (529834). The registered address and principal place of business is Pocklington School, West Green, Pocklington, York, YO42 2NJ.

The School constitutes a public benefit entity as defined by FRS 102.

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements.

Basis of preparation

The financial statements have been prepared in accordance with the relevant version of the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Accounting Practice.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the relevant version of the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The accounts are presented in UK Sterling pounds (£).

Basis of consolidation

The consolidated accounts include the results of The Pocklington School Foundation, Pocklington School Enterprises Limited and the John Dolman Trust (formerly the Pocklington School Development Trust) managed by the Trustee, which are consolidated on a line by line basis. Pocklington School International Limited has not been included in the consolidated accounts as it is immaterial. In accordance with the Charities SORP(FRS102), no separate Statement of Financial Activities (SOFA) has been presented for the Charity alone.

Going concern

As described in the Annual Report of the Trustee, special consideration has been given to the COVID-19 pandemic. The Governors have prepared financial projections, taking into consideration the current economic climate and its potential impact on the sources of income and planned expenditure. They have a reasonable expectation that adequate financial resources are available to enable the School to continue in operational existence for the foreseeable future, and have adequate contingency plans in the event that income streams are reduced. Consequently the financial statements have been prepared on the basis that the School is a going concern.

Fees and other income

Fees receivable, charges for services and use of premises are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the Charity, but include contributions received from restricted funds for scholarships, bursaries and other grants. Fees received in advance of education to be provided in future years under an advance fee payment scheme are held as interest-bearing liabilities until either taken to income in the term when used or else refunded.

Donations

Donations receivable for the general purpose of the Charity are credited to unrestricted funds. Donations for purposes restricted by the wishes of the donor are taken to restricted funds where these wishes are legally binding on the School Governors, except that any amounts required to be retained as capital in accordance with the donor's wishes are accounted for instead as endowments - permanent or expendable according to the nature of the restriction. Income from legacies is accounted for on an accruals basis where amounts and timing of the receipt can be accurately ascertained.

Government grants

The government has made the Coronavirus Job Retention Scheme available to the charity which has been recognised as income using the accrual model.

Grant income is recognised when the conditions for receipt have been met and there is reasonable assurance that the grant will be received. It is then recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate, except where the grant is compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs in which case it is recognised as income in the period in which it becomes receivable.

26

THE POCKLINGTON SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1 ACCOUNTING POLICIES (continued)

Expenditure

Expenditure is accounted for on an accruals basis. Overheads and other costs not directly attributable to particular functional activity categories are apportioned over the relevant categories on the basis of management estimates of the amount attributable to that activity in the year, either by reference to staff time or space occupied, as appropriate. The irrecoverable element of VAT is included with the item of expense to which it relates.

Governance costs comprise the costs of running the Charity, including strategic planning for its future development, also external audit, any legal advice for the Trustee, and all the costs of complying with constitutional and statutory requirements, such as the costs of board meeting and preparing statutory accounts and satisfying public accountability.

Tangible fixed assets

Tangible fixed assets are depreciated over their expected useful lives at the following annual rates:

Buildings over 50 years Infrastructure investments and Re-locatable buildings 10% per annum straight line Furniture, fixtures and fittings 20% per annum straight line Motor vehicles 25% per annum reducing balance Computer equipment 20% per annum straight line

Freehold land and assets under construction are held at cost and not depreciated.

Fixed asset investments

Quoted investments are included at market value on the balance sheet date. Unquoted investments are stated at cost less any permanent diminution in the value. Any gain or loss on revaluation is taken to the SOFA.

Stocks

Stocks are stated at the lower of cost and net realisable value.

Debtors

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

Cash at bank and in hand

Cash at bank and cash in hand includes cash and any short term deposit accounts with a maturity of three months or less from the date of opening.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Where the School has received tuition fees in advance the amount is treated as deferred income until the pupil joins the School whereupon the fees for each school term are charged against the remaining balance and taken into income. Any shortfall is treated as a deduction from school fee income and any excess accrued is treated as additional school income.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

27

THE POCKLINGTON SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1 ACCOUNTING POLICIES (continued)

Funds Structure

Funds comprise unrestricted funds which have not been designated for other purposes, and are available for use at the discretion of the Governors in furtherance of the general objectives of the Charity; designated funds being funds designated as representing the written down value of fixed assets of the Foundation net of associated borrowing; and restricted funds the use of which by the Governors is restricted in some way, usually by wishes of the donor. Restricted funds include endowed funds, which comprise donations required to be retained as capital.

Pensions

The Charity contributes to the Teachers' Pension Defined Benefit Scheme at rates set by the Scheme Actuary and advised to the Board by the Scheme Administrator. The scheme is a multi-employer pension scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the School. In accordance with FRS102 therefore, the scheme is accounted for as a defined contribution scheme.

All support staff may join a defined contribution scheme to which the School contributes.

2
CHARITABLE ACTIVITIES - FEES RECEIVABLE
The fee income comprised:
Gross fees
Casual boarding fees
Less: Total bursaries, grants and allowances
The above educational awards were made to 159 individuals (2019: 170).
3
CHARITABLE ACTIVITIES - OTHER INCOME
Other educational charitable activities
Registration fees
Sub-letting
4
ANALYSIS OF EXPENDITURE
Total expenditure includes:
Auditor's remuneration:
for audit services
for other services
STAFF COSTS AND NUMBERS
Wages and salaries
Social security costs
Pension costs		 2020
£
10,669,025
44,779
(688,846)
£ 10,024,958
15,972
15,100
£ 31,072
8,568
7,070
6,553,160
598,841
1,038,236
£ 8,190,237		 2019
£
12,226,821
77,938
(765,332)
£ 11,539,427
15,610
28,032
£ 43,642
8,400
6,480
6,776,445
615,712
1,121,152
£ 8,513,309

The key management personnel of the School comprise the Trustee (a corporate trustee of which the School governors are directors) and the Foundation Planning Group. The total employee benefits of the key management personnel were £776,850 (2019: £823,874).

28

THE POCKLINGTON SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

4
ANALYSIS OF EXPENDITURE (continued)
2020
2019
Employees earning over £60,000 per annum
£100,000 - £110,000
1
-
£90,000 - £100,000
-
1
£80,000 - £90,000
2
1
£70,000 - £80,000
-
1
£60,000 - £70,000
5
6
Teaching
90
94
Academic support
14
16
Admin and clerical
23
24
Premises
36
37
Welfare
34
37
197
208
Staff costs
Other
Depreciation
Total 2020
Cost of raising funds:
£
£
£
£
Financing costs
-
91,471
-
91,471
Fund-raising for voluntary income
54,632
-
-
54,632
54,632
91,471
-
146,103
Trading costs of the subsidiary
2,276
3,875
-
6,151
Total cost of raising funds
£ 56,908
£ 95,346
£ -
£ 152,254
Charitable expenditure
Education and grant making
Teaching
5,750,506
262,371
15,350
6,028,227
Welfare
830,391
296,668
-
1,127,059
Premises
860,159
812,595
391,055
2,063,809
Support costs of schooling
692,273
539,565
-
1,231,838
Governance costs
-
23,598
-
23,598
Total charitable expenditure
8,133,329
1,934,797
406,405
10,474,531
Total expended - Group
£ 8,190,237
£ 2,030,143
£ 406,405
£ 10,626,785
Total expended - Charity
£ 8,187,961
£ 2,026,268
£ 406,405
£ 10,620,634
The average monthly head count was 263 staff (2019: 272) and the average monthly number of full-time
equivalent employees during the year were as follows:
The above employees have retirement benefits accruing under a defined benefit scheme.		 4
ANALYSIS OF EXPENDITURE (continued)
2020
2019
Employees earning over £60,000 per annum
£100,000 - £110,000
1
-
£90,000 - £100,000
-
1
£80,000 - £90,000
2
1
£70,000 - £80,000
-
1
£60,000 - £70,000
5
6
Teaching
90
94
Academic support
14
16
Admin and clerical
23
24
Premises
36
37
Welfare
34
37
197
208
Staff costs
Other
Depreciation
Total 2020
Cost of raising funds:
£
£
£
£
Financing costs
-
91,471
-
91,471
Fund-raising for voluntary income
54,632
-
-
54,632
54,632
91,471
-
146,103
Trading costs of the subsidiary
2,276
3,875
-
6,151
Total cost of raising funds
£ 56,908
£ 95,346
£ -
£ 152,254
Charitable expenditure
Education and grant making
Teaching
5,750,506
262,371
15,350
6,028,227
Welfare
830,391
296,668
-
1,127,059
Premises
860,159
812,595
391,055
2,063,809
Support costs of schooling
692,273
539,565
-
1,231,838
Governance costs
-
23,598
-
23,598
Total charitable expenditure
8,133,329
1,934,797
406,405
10,474,531
Total expended - Group
£ 8,190,237
£ 2,030,143
£ 406,405
£ 10,626,785
Total expended - Charity
£ 8,187,961
£ 2,026,268
£ 406,405
£ 10,620,634
The average monthly head count was 263 staff (2019: 272) and the average monthly number of full-time
equivalent employees during the year were as follows:
The above employees have retirement benefits accruing under a defined benefit scheme.		 Total 2019
£
113,305
53,942
208
Total 2020
£
91,471
54,632
146,103
6,151		 167,247
38,917
£ 152,254 £ 206,164
6,028,227
1,127,059
2,063,809
1,231,838
23,598		 6,214,787
1,224,201
2,186,474
1,741,240
24,498
10,474,531 11,391,200
£ 10,626,785 £ 11,597,364
£ 10,620,634 £ 11,558,447

29

THE POCKLINGTON SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

5 TANGIBLE FIXED ASSETS

Consolidated
Cost:
At 1 September 2019
Additions
Disposals
At 31 August 2020
Depreciation:
At 1 September 2019
Disposals
Charge for the year
At 31 August 2020
Net book values:
31 August 2020
31 August 2019
Foundation
Cost:
At 1 September 2019
Additions
Disposals
At 31 August 2020
Depreciation:
At 1 September 2019
Disposals
Charge for the year
At 31 August 2020
Net book values:
31 August 2020
31 August 2019		 Freehold
Land and
Buildings
£
17,921,883
327,668
-
18,249,551
4,370,478
-
381,861
4,752,339
£ 13,497,212
£ 13,551,405
18,008,883
327,668
-
18,336,551
4,370,478
-
381,861
4,752,339
£ 13,584,212
£ 13,638,405		 Furniture,
Fixtures &
Vehicles
£
776,183
5,220
(19,440)
761,963
676,072
(14,827)
20,081
681,326
£ 80,637
£ 100,111
776,183
5,220
(19,440)
761,963
676,072
(14,827)
20,081
681,326
£ 80,637
£ 100,111		 Total
£
18,698,066
332,888
(19,440)
19,011,514
5,046,550
(14,827)
401,942
5,433,665
£ 13,577,849
£ 13,651,516
18,785,066
332,888
(19,440)
19,098,514
5,046,550
(14,827)
401,942
5,433,665
£ 13,664,849
£ 13,738,516

Freehold land and buildings are carried at cost. The fair value as at 31 August 2020 was estimated at £68,009,515 which is based upon the replacement cost for insurance purposes of the properties concerned. All fixed assets are held for own use on direct charitable activities.

30

THE POCKLINGTON SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

6 FIXED ASSET INVESTMENTS

2020
2019
£
£
Quoted investments (all United Kingdom)
Market value at beginning of the year
541,510
535,988
Additions
15,988
21,438
Disposals
(21,500)
(5,898)
Net losses
(56,742)
(10,018)
Market value at end of year
£ 479,256
£ 541,510
Historical cost at end of year
£ 434,961
£ 486,320
Consolidated		 2020
2019
£
£
-
-
-
-
-
-
-
-
£ -
£ -
£ -
£ -
Foundation		 2020
2019
£
£
-
-
-
-
-
-
-
-
£ -
£ -
£ -
£ -
Foundation
£ -
£ -

The Foundation owns 100 ordinary £1 shares in Pocklington School Enterprises Limited and 1 ordinary share in Pocklington School International Limited, companies incorporated in the United Kingdom.

Investment income analysed as follows:
Fixed asset investments
Cash at bank and pension scheme		 23,453
10,187
£ 33,640		 22,735
32,004
£ 54,739		 -
8,589
£ 8,589		 -
32,004
£ 32,004

Investment income of £8,589 relates to unrestricted funds and £25,051 to restricted and endowed funds.

7 STOCKS

Raw materials and consumables £ 1,595 £ 8,418 £ 1,595 £ 8,418
8 DEBTORS
Fees receivable 125,642 122,005 125,642 122,005
Trade debtors 24,574 19,829 - -
Amounts due from subsidiary 16,733 16,733 49,420 73,256
Other debtors 4,023 1,029 4,023 1,029
Prepayments and accrued income 391,073 227,538 391,073 227,538
£ 562,045 £ 387,134 £ 570,158 £ 423,828

31

THE POCKLINGTON SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

9 CREDITORS amounts falling due within one year

Consolidated Consolidated Consolidated Foundation Foundation
2020 2019 2020 2019
£ £ £ £
Bank loans and overdrafts 200,001 200,001 200,001 200,001
Trade creditors 56,879 113,138 56,879 113,138
Fees received in advance 1,242,982 1,675,373 1,242,982 1,675,373
Taxation and social security 139,611 154,832 139,480 149,435
Amounts owed to subsidiary - - 53,389 18,057
Pension creditor 129,862 107,155 129,862 107,155
Other creditors 154,260 100,770 177,914 124,424
Returnable deposits 196,172 193,870 196,172 193,870
Accruals 103,129 106,029 98,853 100,073
2,222,896 2,651,168 2,295,532 2,681,526
Advance fees (see note 11) 313,737 345,956 313,737 345,956
£ 2,536,633 £ 2,997,124 £ 2,609,269 £ 3,027,482
REDITORS amounts falling due after more than one year
Bank loan 2,999,980 3,199,981 2,999,980 3,199,981
Advance fees (see note 11) 624,582 665,251 624,582 665,251
£ 3,624,562 £ 3,865,232 £ 3,624,562 £ 3,865,232

10 CREDITORS amounts falling due after more than one year

A loan of £4M was negotiated in 2016 and helps fund the next stages of the Estate Development Plan.

11 ADVANCE FEE PAYMENTS

A limited number of parents may enter into a contract to pay to the Foundation up to the equivalent of nine years tuition fees in advance. The money may be returned subject to specific conditions on the receipt of one terms notice. Assuming pupils will remain in the school, advance fees will be applied as follows:

Within 2 to 5 years
Within 1 to 2 years
Within 1 year		 2020
£
389,514
235,068
624,582
313,737
£ 938,319		 2019
£
410,816
254,435
665,251
345,956
£ 1,011,207

The balance represents the accrued liability under the contracts.

32

THE POCKLINGTON SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

12 BANK LOANS AND OVERDRAFTS

2020
2019
£
£
Loans and overdrafts are repayable as follows:
Within one year or on demand
200,001
200,001
Between one and two years
200,001
200,001
Between two and five years
2,701,584
2,701,584
In five years or more
98,395
298,396
£ 3,199,981
£ 3,399,982
Consolidated		 2020
2019
£
£
200,001
200,001
200,001
200,001
2,701,584
2,701,584
98,395
298,396
£ 3,199,981
£ 3,399,982
Foundation		 2020
2019
£
£
200,001
200,001
200,001
200,001
2,701,584
2,701,584
98,395
298,396
£ 3,199,981
£ 3,399,982
Foundation
£ 3,399,982

13 PENSION SCHEMES

Teachers

The School participates in the Teachers' Pension Scheme (England and Wales) ("the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £830,891 (2019: £620,380) and at the year-end £104,600 (2019: £84,717) 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.

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. A consultation was launched by the government on 16 July 2020, and closed to responses on 11 October 2020.

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 the government is preparing to complete the cost control element of the 2016 valuations, which is expected to be completed in 2021.

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 consultation and the cost cap mechanism review are 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.

33

THE POCKLINGTON SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

13 PENSION SCHEMES (continued)

Support Staff

The Pocklington School Foundation participates in The Pensions Trust’s Growth Plan (the Plan).

Series 3

Initially this was into the Plan’s Series 3 which included a capital guarantee. That Plan is no longer offered to staff because the capital guarantee produced a defined benefit element in a scheme which was funded and a potential deficit which was not the intention of the scheme when it was designed as defined contribution vehicle. The estimated cost of withdrawal from this multi-employer pension plan is calculated at £71,592 (2019: £72,686) and this will crystallise when there are no longer any members remaining who are not also active members in another of the Trust’s Plans; 10 members of staff are in this category.

Series 4

The defined contribution scheme now offered to support staff is the Growth Plan Series 4. This has no capital guarantee and the employer has no liability beyond its contributions to the fund. The Foundation paid contributions at the rate of 9% during the accounting period and members paid contributions at the rate of 6%. The Foundation's contributions totalled £187,066 this year (2019: £179,772). Contributions of £25,000 were outstanding at the year end (2019: £21,978).

The Pensions Trust Retirement Solutions - Independent Schools' Pension Scheme (ISPS)

The Pocklington School Foundation also participates in The Pension Trust's Independent Schools' Pension Scheme, a multi-employer scheme which provides benefits to some 66 non-associated employers. The scheme is a defined benefit scheme in the UK.

It is not possible for the Foundation to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the Foundation is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme.

The Foundation's estimated buy-out debt on withdrawal from the scheme is calculated at £183,514 (2019: £150,312). The buy-out debt on withdrawal is the withdrawing employer's share of the difference between the scheme's assets and the scheme actuary's estimate of the amount that an insurance company would charge to take on responsibility for paying all of the benefits due from ISPS. Whilst the ISPS continues to be in operation, this buyout debt will not trigger so long as the Foundation continues to employ an active member in the ISPS.

34

THE POCKLINGTON SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

14 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income/(expenditure) for the reporting period
Adjustments for:
Depreciation charges
Net losses on investments
Dividends, interest and rents from investments
Financing costs
Actuarial loss
Loss on sale of assets
Decrease in stock
Increase in debtors
(Decrease)/increase in creditors
Net cash (used in)/provided by operating activities
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Total cash and cash equivalents
ANALYSIS OF CHANGES IN NET DEBT
Cash
Loans falling due within one year
Loans falling due after more than one year		 At
01/09/2019
£
5,695,327
(200,001)
(3,199,981)
£ 2,295,345		 2020
£
99,727
401,942
56,742
(33,640)
91,471
-
4,463
6,823
(174,911)
(494,890)
£(42,273)
5,061,726
£ 5,061,726
Cash-flows
£
(633,601)
(633,601)
-
200,001
£(433,600)		 2019
£
(851,683)
436,458
10,018
(54,739)
113,305
1,122,000
192
352
(52,388)
217,616
£ 941,131
5,695,327
£ 5,695,327
At
31/08/2020
£
5,061,726
(200,001)
(2,999,980)
£ 1,861,745

35

THE POCKLINGTON SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

15 RESTRICTED FUNDS
John Dolman Trust
CSU Prize Fund
Croft Prize Fund
William Arthurs Classics Fund
Joan Allen Science Fund
Pocklington Silvestri Fund
Dr Harold Williams Scholarship
D W Bagot Scholarship
Improvement Fund
Archive Fund
The Darrell Buttery Bursary Fund
Keith Applebee Scholarship
The Archbishop Zouche Prize
The Elliott Prize
John Dolman Trust
CSU Prize Fund
Croft Prize Fund
William Arthurs Classics Fund
Joan Allen Science Fund
Pocklington Silvestri Fund
Dr Harold Williams Scholarship
D W Bagot Scholarship
Improvement Fund
Archive Fund
The Darrell Buttery Bursary Fund
Keith Applebee Scholarship
The Archbishop Zouche Prize
The Elliott Prize		 Balance at
1 Sept 19
£
2,301,412
2,457
2,709
2,351
3,296
2,379
18,506
23,912
2,790
26,835
21,603
2,000
235
235
£ 2,410,720
Balance at
1 Sept 18
£
2,167,246
2,409
2,656
2,305
3,231
2,332
18,143
23,443
2,790
26,655
21,179
2,000
230
230
£ 2,274,849		 Income
£
98,746
43
47
41
58
42
349
419
-
662
378
25
4
4
£ 100,818
Income
£
172,567
48
53
46
65
47
363
469
-
150
424
-
5
5
£ 174,242		 Expended
£
(61,811)
-
(50)
(25)
(100)
-
(450)
-
-
-
-
-
(25)
(25)
£(62,486)
Expended
£
(15,401)
-
-
-
-
-
-
-
-
(220)
-
-
-
-
£(15,621)		 Transfers
£
(18,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
£(18,000)
Transfers
£
(23,000)
-
-
-
-
-
-
-
-
250
-
-
-
-
£(22,750)		 Balance at
31 Aug 20
£
2,320,347
2,500
2,706
2,367
3,254
2,421
18,405
24,331
2,790
27,497
21,981
2,025
214
214
£ 2,431,052
Balance at
31 Aug 19
£
2,301,412
2,457
2,709
2,351
3,296
2,379
18,506
23,912
2,790
26,835
21,603
2,000
235
235
£ 2,410,720~~e~~o

John Dolman Trust

The Trust comprises a Bursary Account and a Development Account. The Bursary Account received a donation of funds from the Yorkshire Society in 2010; this £114,000 is invested with the rest of the funds and an annual income of base rate plus 1.5% is targeted at bursary support for applicants for the School's bursary scheme that were born in Yorkshire.

The CSU Prize Fund

Mrs Winifred Bond bequeathed the sum of £1,000 in 1980 to the Community Service Unit in recognition of the kind attention shown by pupils to her husband and herself over a period of years. The income from the bequest is administered by the Master in charge of the CSU who awards grants to present or former Sixth Form pupils for specific Community Service assignments. No awards were made during the year.

The Croft Prize Fund

Mr Peter Croft, a late Governor of the School, made a donation of £1,000 in 1993, for the funding of prizes. No conditions were attached to the gift, which, at the time was to be anonymous. Notional interest is added each year. This now supports a singing prize.

36

THE POCKLINGTON SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

15 RESTRICTED FUNDS (continued)

William Arthurs Classics Fund

Donated in 2001 to fund a prize to student or students leaving to read for a degree in classics.

Joan Allen Science Fund

Joan Allen donated £2,000 to the Charity to set up a prize fund to benefit students studying science.

Pocklington Silvestri Fund

The Pocklington Silvestri Fund provides for miscellaneous expenses to Romanian Students who become boarders at the School. Currently there are none.

Dr Harold Williams Scholarship

The School received £11,799 from the estate of the late Dr Harold Williams, an Old Pocklingtonian. The income from this bequest can provide a scholarship to assist a Pocklington pupil studying at a university in the United Kingdom.

D W Bagot Scholarship

Mr B Fenwick-Smith donated £25,000 as a travel scholarship in memory of his friend D W Bagot. The annual travel scholarship accumulates interest over time.

Improvement Fund

The School accepts small donations for the repairs, improvements and installation of items and artefacts of a historic nature.

Archive Fund

Funds were raised for the creation of the School Archive rooms. The balance is to be used for curating materials in the Archive including digitalisation.

The Darrell Buttery Bursary Fund

Mr Darrell Buttery, Governor and former teacher at Pocklington, made donations to establish a hardship fund to support outstanding pupils at Pocklington School who would otherwise have to leave on financial grounds. Mr Buttery intends that both capital and income can be used for this purpose. No awards were made during this year.

Keith Applebee Scholarship

A legacy was received from the estate of Keith Applebee (old Pocklingtonian and Governor of the school) to provide an annual prize to the pupil who is deemed by the Headmaster to have made the greatest contribution to the community life of the school.

The Archbishop Zouche Prize

Donated anonymously and will be awarded to a pupil who overcomes personal adversity.

The Elliott Prize

Donation by Mr Stephen Elliott, a former teacher and Governor, for the best contribution to wildlife study and nature conservation.

37

THE POCKLINGTON SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

16 ENDOWED FUNDS

Nine small charities were amalgamated into one Scheme in 1987. They now comprise a Prize Fund, a Scholarship Fund, The Desmond Boult Swimming Prize and the Isherwood and Allen Bursary Fund. These are a mixture of restricted and endowed funds.

Balance at Balance at
1 Sept 19 Increases Decreases Transfers 31 Aug 20
£ £ £ £ £
Scholarship Funds 5,587 98 (100) - 5,585
Prize Funds 4,764 160 (100) - 4,824
Desmond Boult Prize 416 7 (15) - 408
Isherwood & Allen Bursary Fund 2,751 48 - - 2,799
£ 13,518 £ 313 £(215) £ - £ 13,616
Balance at Balance at
1 Sept 18 Increases Decreases Transfers 31 Aug 19
£ £ £ £ £
Scholarship Funds 3,809 1,778 - - 5,587
Prize Funds 4,565 99 (300) 400 4,764
Desmond Boult Prize 408 8 - - 416
Isherwood & Allen Bursary Fund 2,697 54 - - 2,751
£ 11,479 £ 1,939 £(300) £ 400 £ 13,518
NRESTRICTED FUNDS
Transfer
Balance at Surplus/ between Balance at
1 Sept 19 (deficit) funds 31 Aug 20
£ £ £ £
Free reserves 850,777 467,852 (514,889) 803,740
Designated funds
- Fixed assets 10,146,534 (406,555) 532,889 10,272,868
Total for the group £ 10,997,311 £ 61,297 £ 18,000 £ 11,076,608
Transfer
Balance at Surplus/ between Balance at
1 Sept 18 (deficit) funds 31 Aug 19
£ £ £ £
Free reserves 817,231 546,787 (513,241) 850,777
Pension reserve 1,122,000 (1,122,000) - -
Designated funds
- Fixed assets 10,047,673 (436,730) 535,591 10,146,534
Total for the group £ 11,986,904 £ (1,011,943) £ 22,350 £ 10,997,311

17 UNRESTRICTED FUNDS

The transfer of £532,889 represents the value of fixed asset additions purchased with free reserves being transferred to the designated reserves (£332,888), plus the loan repayments made this year (£200,001). The transfer of £18,000 represents unrestricted bursary expenditure funded by the John Dolman Trust.

38

THE POCKLINGTON SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

18 ANALYSIS OF NET ASSETS BETWEEN FUNDS

2020
Restricted Funds
Unrestricted funds
Endowed funds
Designated funds
Total for the group
2019
Restricted Funds
Unrestricted funds
Endowed funds
Designated funds
Total for the group		 Tangible
fixed
assets
£
-
-
-
13,577,849
£ 13,577,849
-
-
-
13,651,516
£ 13,651,516		 Investments
£
479,256
-
-
-
£ 479,256
541,510
-
-
-
£ 541,510		 Net
current
assets
£
1,951,796
1,428,322
13,616
(305,001)
£ 3,088,733
1,869,210
1,516,028
13,518
(305,001)
£ 3,093,755		 Long
term
liabilities
£
-
(624,582)
-
(2,999,980)
£ (3,624,562)
-
(665,251)
-
(3,199,981)
£ (3,865,232)		 Total
£
2,431,052
803,740
13,616
10,272,868
£ 13,521,276
2,410,720
850,777
13,518
10,146,534
£ 13,421,549

19 CONTRACTS AND COMMITMENTS

Capital commitments at 31 August 2020 in relation to building works were £nil (2019: £nil).

20 OPERATING LEASES

As at 31 August 2020 the School had future minimum lease payments under non-cancellable operating as follows:

Equipment
Within one year
Within one to two years
Within two to five years		 2020
2019
£
£
45,661
34,733
41,806
28,021
20,959
24,166
£ 108,426
£ 86,920
Consolidated		 2020
2019
£
£
45,661
34,733
41,806
28,021
20,959
24,166
£ 108,426
£ 86,920
Foundation		 2020
2019
£
£
45,661
34,733
41,806
28,021
20,959
24,166
£ 108,426
£ 86,920
Foundation
£ 86,920

39

THE POCKLINGTON SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

21 INCOME FROM SUBSIDIARY'S TRADING ACTIVITIES

The School owns Pocklington School Enterprises Limited (PSEL), which provides academic, sport and leisure courses, and the administration of a shop trading in uniforms, sports clothing and equipment. Its trading results extracted from its financial statements for the year ended 31 August 2020 were:

2020
£
Turnover
38,838
Cost of sales
(781)
Gross profit
38,057
Administrative expenses
(7,473)
Operating profit
30,584
1
30,585
(30,585)
£ -
Other
interest
receivable
and
similar income
Profit before tax
Gift
aid
distribution
to
parent
charity
Retained earnings		 2019
£
84,502
(30,642)
53,860
(11,275)
42,585
1
42,586
(42,586)
£ -

Administration expenses include £2,103 (2019: £3,000) for management fees paid to the School.

22 RELATED PARTIES

Governors remuneration and benefits

The Governors did not receive any remuneration or benefits for their services.

Governors expenses

Travel expenses amounting to £113 were paid to two Governors during the year (2019: £nil to no Governors).

Governors other related parties

Two Governors (2019: three) have a total of two children (2019: three) enrolled at the school. Of these children none (2019: none) receive sibling discounts towards the cost of their education. All fees are charged at the normal arm's length rate. No Governor or person connected with a Governor received any benefit from means-tested bursaries.

Due to the nature of the Foundation's operations and the composition of the Board of Governors (many being drawn from local public and private sector organisations) it is inevitable that transactions will take place with organisations in which a member of the Board of Governors may have an interest. All such transactions involving organisations in which a member of the Board of Governors may have an interest are conducted at arm's length and in accordance with the Charity's financial regulations and normal procurement procedures. No transactions were identified which should be disclosed under FRS 102.

Subsidiaries

The School wholly owns Pocklington School Enterprises Limited. Further details regarding this subsidiary can be found in note 21.

The School wholly owns Pocklington School International Limited. This subsidiary was dormant during the year.

There are no other related parties.

40

THE POCKLINGTON SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

23 COMPARATIVE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

Income and endowments from:
Charitable activities
School fees receivable
Ancillary trading income
Other trading activities
Non-ancillary trading income
Other activities
Investments
Investment income
Voluntary sources
Donations and legacies
Total
Expenditure on:
Raising funds
Non-ancillary trading
Other income-generating activities
Financing costs
Total deductible costs
Charitable Activities
Education and grant making
Total
Net income and
net movement in funds before
gains on investments
Net (losses)/gains on investments
Net income
Transfers between funds
Other recognised (losses)/gains
Pension scheme actuarial (losses)/gains
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£
11,539,427
43,642
84,502
3,000
30,243
3,704
£ 11,704,518
41,917
53,942
107,922
203,781
11,390,680
£ 11,594,461
110,057
-
110,057
22,350
132,407
(1,122,000)
(989,593)
11,986,904
£ 10,997,311		 Restricted
& Endowed
Funds
£
-
-
-
-
24,496
151,685
£ 176,181
-
-
5,383
5,383
520
£ 5,903
170,278
(10,018)
160,260
(22,350)
137,910
-
137,910
2,286,328
£ 2,424,238		 Total
2019
£
11,539,427
43,642
84,502
3,000
54,739
155,389
£ 11,880,699
41,917
53,942
113,305
209,164
11,391,200
£ 11,600,364
280,335
(10,018)
270,317
-
270,317
(1,122,000)
(851,683)
14,273,232
£ 13,421,549		 Total
2018
£
11,241,367
38,125
95,814
3,876
84,345
214,591
£ 11,678,118
49,108
50,494
116,060
215,662
11,002,896
£ 11,218,558
459,560
4,123
463,683
-
463,683
643,000
1,106,683
13,166,549
£ 14,273,232

41