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2022-08-31-accounts

Company number: 01193407

TERRINGTON HALL TRUST LIMITED

(Charity number 532362)

ANNUAL REPORT AND FINANCIAL STATEMENTS

for the year ended 31 August 2022

HPH Chartered Accountants 54 Bootham YORK YO30 7XZ

TERRINGTON HALL TRUST LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

CONTENTS Page
Governors' Annual Report 1 - 11
Auditor's Report 12 - 14
Statement of Financial Activities 15
Balance Sheet 16
Cash Flow Statement 17
Notes to the Financial Statements 18 - 26

TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

REFERENCE AND ADMINISTRATIVE INFORMATION

The Governors present their forty seventh annual report and audited financial statements for the year ended 31 August 2022.

Charity Name: Terrington Hall Trust Limited
Charity Registration Number: 532362
Company Registration Number: 01193407
Directors/Governors: Mrs K E Lamont (Chair)
Mr R I Smyth (resigned 6 July 2022)
Mr R L Cordingley
Mr K Storey
Ms Z A Bannister
Mr M Harrison
Mrs S Hogg
Mr R Dyer (resigned 31 December 2022)
Ms G Eaton (appointed 21 November 2022)
Mr A Dunn (appointed 21 November 2022)
Mr D Griffiths (appointed 16 March 2023)
Company Secretary: Mr A P Upton
Head: Mr S D Kibler
Registered Office and Terrington Hall Preparatory School
Principal Address: Terrington, YORK, YO60 6PR
Advisers
Auditors: HPH Accountants LLP
Chartered Accountants
54 Bootham
YORK
YO30 7XZ
Solicitors: Harrowells LLP
1 St. Saviourgate
YORK
YO1 8ZQ
Bankers: HSBC plc
13 Parliament Street
YORK
YO1 8XS

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TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Terrington Hall Trust Limited is a charitable company limited by guarantee, incorporated on 11 December 1974 and registered as a charity on 3 March 1975 and is governed by its Memorandum and Articles of Association. The Governors of the School are also the Charity trustees and directors of the company.

Recruitment and training of Governors

Until otherwise determined by a general meeting, the number of members of the governing body shall not be less than seven nor more than thirty. The members of the governing body shall be:

Provided that no person who is a principal or assistant master of the School and no person who is otherwise in receipt of a salary, fees, remuneration or other benefit, in money or monies worth from the trust (save as permitted by Clause 4 of the Memorandum of Association) shall be eligible for members of the governing body.

An annual skills audit of the governing body is carried out and both training needs and the composition of the governing body are considered in the light of this. All Governors take part in annual training, annual learning walks and new Governors receive a full induction programme in order to ensure their roles and responsibilities are effectively established.

Last financial year, a review of governance best practice was undertaken and as a result, the governing body was restructured to further enhance oversight; in this financial year, the board restructure was successfully embedded with a number of key projects coming to fruition.

The remit of the Teaching and Learning Committee was widened to incorporate staff development and welfare, as the engines of teaching quality and pupil wellbeing (renamed Education, Welfare and Staff Development or EWSD). This year this new remit has facilitated further enhancement of pupil outcomes, including the effective oversight of a number of innovative pupil voice and welfare initiatives which have been an important focus for pupil wellbeing post Covid-19. The committee has overseen the embedding of a comprehensive staff appraisal and development programme in addition to the oversight of a new co-curricular programme to further expand the learning horizons of our pupils.

Last year, the new Governance Committee was formed with the responsibility of overseeing all aspects of compliance in addition to the stewardship of Board skills, succession and composition; in its first year of operation, the Governance Committee has delivered a number of key projects, including the initiation of a new parent contract to promote the education and welfare of pupils and the stability, resourcing and development of the School. The committee has also enhanced compliance oversight through working with the Senior Management Team (SMT) to deliver a completed AGBIS compliance checklist which further supports Governor oversight over the detail of all ISI standards, as well as commissioning a mock inspection in January 2022.

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TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

The committee has also developed a full succession planning process which has supported the recruitment of a number of excellent board appointees; the appointment of Ellen Colquhoun, Ben Collins and Mike Willink has brought new skills to the Board and a wealth of experience in journalism,

PR, digital marketing, alumni relations, fundraising and development, organisational transformation and change management. In July 2022, Richard Smyth stood down from the Board after 9 years of exceptional service. We thank him for his unwavering commitment to driving Terrington Hall’s high standards of teaching as well as his immeasurable support for the Senior Management Team through his role as Designated Safeguarding Governor. Richard will be succeeded by Alastair Dunn who will join the Board in September 2022.

Last financial year, the Marketing Committee remit was widened to include the oversight of strategy and development (Strategy, Marketing and Development or SMD). This year, the committee has supported the management team to deliver a premium new rebrand, website and marketing programme. A new development function was initiated and marked by the inaugural Alumni Association event to celebrate the School Centenary.

The Finance and Estates Committee objectives remained as previous, but with an additional emphasis on seamless support for all committees with respect to budgeting and decision-making; a number of cross committee investments have been made including the significant enhancement of our Boarding proposition. In response to the global impact of rising costs and inflation, the committee has launched a Long Term Financial Planning taskforce to ensure that the School remains ahead of any emerging risk scenarios and to facilitate long-term financial decision-making.

Organisation

The Governors determine the general policy and strategy of the School as a whole. The School is divided into two sections:

Preparatory (‘Prep’) - for pupils aged seven to thirteen years old. Pre-Preparatory (‘Pre-prep’) - for pupils aged three to seven years old.

The day-to-day management of both sections of the School is delegated to the Head.

Remuneration of Senior Staff

The School aims to provide overall remuneration which is fair and competitive with the independent School sector as well as proportionate to the complexity of each role. In determining the right level of pay and wider remuneration, the School:

The Bursar and Heads salaries are benchmarked and their salaries are determined by the School Governors. There is no remuneration or other compensation for any Governor.

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TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

OBJECTIVES AND ACTIVITIES

Charitable Objectives and Public Benefits

The aims of the trust, as stated in the Memorandum and Articles and Association, dated 11 December 1974, are to provide all children, irrespective of race, religion, gender, background or academic ability, with the chance to be involved in a caring, supportive and challenging environment

where their full potential may be realised. In the furtherance of this aim the Governors, as the Charity trustees, have complied with the duty in the Charities Act 2011 to have due regard to the Charity Commission’s published general and relevant sub-sector guidance concerning the operation of the Public Benefit requirement under that Act.

Terrington Hall Trust Limited’s principal activity continues to be the provision of a day and boarding school for 3 -13 year old children.

Through our holistic, innovative and purposeful curriculum, we aim to develop lively, enquiring minds instilled with a love of learning, polite and well-mannered children who display natural self-confidence and humility, and critical thinkers and problem solvers with collaborative leadership skills to enable them to thrive in the 21[st] Century.

To support these aims, we seek to encourage and foster in children our key values, which are rooted in the Christian tradition upon which the school was founded:

By fostering these values and equipping our children with a love of learning and opportunity, we strive to explore ways to expand their horizons and secure the brightest possible future for our pupils, when they progress, at the age of thirteen, to their senior school of choice, with the knowledge, confidence and technical abilities to grasp every opportunity presented to them. The successes and achievements of our pupils is nothing short of outstanding, and each of them deserves to be celebrated. Our pupils strive to develop in all areas, from Academia, Performing Arts, to Sport. Motivation to have a go is more important than ability, striving continuously to improve and trying your best are the essential ingredients; and our pupils show this daily.

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TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

OBJECTIVES AND ACTIVITIES (continued)

Aligned with our values, we aim to support as many charities as possible and have, over the years, undertaken fundraising for a wide range of charities close to the hearts of our community including Teenage Cancer Trust, Prostate Cancer Trust, Young Minds, Alopecia UK, Myeloma UK, Candlelighters and a local charity, LIAM. We have also recently raised funds for the Ukraine Appeal, and support annual events such as Children in Need and Red Nose Day. A child in Year 3 has shown the initiative to raise money for Batten Disease, to support a family friend who has been recently diagnosed. In our ongoing undertaking to widen public access to our educational provision, we aim to maximise the educational use of our cultural and sporting facilities and to instil in our pupils an awareness of the wider social context of the education they receive. We regularly invite the local primary school to our events, such as our Remembrance Service, Christingle, fireworks night and Harry Potter Day. Numerous external cricket clubs use our winter nets in the sports hall, and our links with Yorkshire County Cricket Club and North Yorkshire Hockey mean we are a hub centre for youth cricket and hockey training and coaching.

The Headmaster, Mr Simon Kibler, is in his second year and the School has gone from strength to strength under his leadership, with a healthy and growing pupil roll standing at 185, and new initiatives now bedding in during the post-Covid world. The school’s weekly, streamlined communications such as the Terrington Trumpet and higher visibility on social media platforms, are going strong, along with the addition of a text alert system for parents and the addition of the on-line parent portal, Classlist, which is facilitated by the Friends of Terrington Hall School. The school now has a comprehensive staff professional review programme which has now completed its first cycle for all teaching staff.

There have been many national reports of deteriorating pupil wellbeing and academic standards across the UK due to the effects of lockdowns. We have monitored this, through our numerous pupil voice committees and through our normal academic testing and tracking regime, which initially did not register any significant trends in pupil anxiety.

More recently, research has highlighted that in the post-Covid setting, children find it harder to socialise and make friends and this is where our Girls on Board programme and Pastoral Welfare meetings have merit to support our pupils. A dip in standards at the lower end of reading ability in the Pre-Prep children had been observed, most likely due to lack of early reading in lockdown, noted anecdotally by staff and quantitatively through CAT4 assessments. The school has responded proactively through increased focus on reading in the earlier years and a daily reading period for all pupils throughout the school. We are in the planning stages of upgrading our standardised assessment package, keeping the best parts from CAT4 such that the school can track pupils more holistically, learn more about their attitudes to school, and demonstrate value added.

Summer 2022 Common Entrance averages were the best observed for over 6 years at the school and the number of scholarships awarded by senior schools was in line with pre-Covid times.

Pupil wellbeing has continued to be at the heart of the school’s pastoral provision with weekly pastoral welfare and safeguarding meetings with our newly expanded safeguarding team, which includes our newly appointed SENCo, who sits on the Senior Management Team. Regular staff and departmental meetings, complement our desire for ongoing year group pastoral welfare lunches with the Headmaster, and special year group boarding nights. Pupil voice is an essential component for the school and something we hold dear. There are five committees which are supported by children across all age groups within the Prep School from years 3 to 8. The School Council is the pinnacle of such committees and action points from these meetings are fed back to the wider school by the chair of this committee who is a senior pupil in Year 8 and sits within the school pupil leadership team.

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TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

OBJECTIVES AND ACTIVITIES (continued)

The Year 8 pupils all hold a position of responsibility after the Senior Management Team made structural changes to address this. The school now has two layers of pupil leadership: the Heads of School oversee the Prefects and sitting below these are the captains for different areas of responsibility within the school for Houses, School Council, Pupil Voice, and Social Action.

The Terrington Hall Adventure, Life skills and Leadership (TALL) award programme has been fully unveiled, following a successful pilot year. This co-curricular scheme focuses upon building 21[st] century learning skills and is proving hugely popular with all the children and staff. In order to add value to the programme, pupil selfreflections are now included within end of term reports for all three cycles. This term, the ISEB Project Qualification (iPQ) is being trialled in Year 8. The iPQ provides a framework for teaching and assessing the development of independent, pupil led project-learning skills, taking the form of a 15–20-hour project. It has been well received by our pupils, who have worked on such topics as podcasts, creating original art installations or exhibitions, writing original pieces of music. Others have written a script, produced props and recruited a cast to perform it.

Running alongside TALL and the iPQ, we are planning to introduce an academic stretch and challenge initiative called “Ad Astra” in September 2022. Pupils will get the opportunity to explore a wide range of academic focused enrichments in vertical House groups, such as coding, origami, debating, chess and French club for children in years 3-5, brain games, such as cryptic crosswords and Sudoku, philosophy, Japanese, maths challenge training and creative writing. As a school we are keen to incorporate activities suggested by the pupils. We are already looking forward to having art history on the programme next year. “Ad Astra” enrichments will certainly offer an extremely broad and exciting co-curricular programme for the pupils on the academic front and encourage them to reach “to the stars”. Running alongside this, are plans for a newly aligned competitive House structure and branding to align with our newly branded school crest and values. All children across the entire school will be placed in a selected House and House competitions will be run throughout the year to celebrate cerebral and enrichment opportunities.

The school's reputation has continued to grow with increased coverage from external review publications, such as Tatler Good Schools Review and The Cricketer Magazine, voting Terrington Hall as being one of the top 50 Prep Schools in the UK for cricket provision for girls and boys. The school has now rebranded, with a new crest and a fresh vision, mission statement and values. A five-year strategic development plan has been ratified and published to the wider Terrington Hall constituents and an annual marketing strategic plan implemented.

Grant Making Policy

Grants, scholarships and bursaries are awarded by the Governors on a means-tested basis, through the Bursary Policy process. Various discounts are given to children of the clergy, the armed forces, siblings, ex pupils and staff.

The ‘Prep’ School had an average of 106 pupils during the year, which enabled the School to support pupils through Scholarships, Bursaries, Forces personnel discount and Siblings discount. This support, which is available on a needs basis as determined by the Governing body in consultation with the Head, totalled £223,892.

An average of 74 children attended the ‘Pre-prep School’ during the year. Support through bursaries reduced ‘Pre-prep’ fees by £61,671 for the year.

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TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

OBJECTIVES AND ACTIVITIES (continued)

ACHIEVEMENTS AND PERFORMANCE

All leaving pupils were successful in their applications to their first choice of senior school with destinations for September 2022 to the following Schools: Ampleforth, Bootham, The Mount, Repton, Sedbergh, Scarborough College, St Peter’s, and Uppingham. Of the year 8 leavers, 6 scholarships and exhibitions were achieved. For the last 3 years all pupils have reached their desired senior school, a number achieving scholarships or other awards. The vast majority of pupils leaving the School achieve excellent results at GCSE and A Level.

The breadth of the academic syllabus has been maintained with pupils enjoying the challenge of languages taught (Spanish, French, Latin and Greek) alongside multiple separate sciences and a variety of Arts, Humanities and outdoor education. Teaching continues to demonstrate breadth and depth, and adapted to individual pupils as appropriate through differentiation. All pupils have a bespoke prep diary and pupils across the Prep School have a reading diary to log their reading at school and at home.

We have delivered numerous pupil Wellbeing Day trips, off timetable, to continue to support mental health across all year groups and successfully run three residential trips at the end of the summer term for all pupils from Year 3 to 8. Our guest speaker programme has continued since lockdown, with several senior school Heads and Housemasters sharing knowledge and experience with pupils in a number of formats. These sessions have been well attended, greatly appreciated, and help to round out the educational experience for all. Music and Drama recitals have taken place from Pre-Prep to Year 8 and have been presented in the Music Centre and outdoors!

The co-curricular activities programme extended to include sessions in a range of activities from Japanese, coding, orienteering, dance, to baking, photography, foot golf, CrossFit, cross stitch, book club, bike pump track, choir, and sports. Private lessons with professional coaches for tennis, swimming and cricket has also proven popular alongside ongoing peripatetic music lessons, with 75% of our pupils taking a private music or speech and drama lesson. Our Pre-Prep children also enjoy a weekly dance session from a visiting dance teacher.

We celebrate that most children in the Prep School have represented the School at competitive sport, competing in a full and varied fixture list from rugby, netball, hockey, football, cricket, cross-country and swimming. The school enjoyed successful seasons in a variety of sports and hosted several excellent events such as rugby 7’s tournaments and cross-country championships for schools across the Northeast and Scotland attending. Sporting honours at county level were achieved in swimming, cricket, football, hockey and cross-country.

Several improvements were made to the School estate including refurbishment of the Upper Prep school corridor, boarding house and windows, learning hub, and Year 8 common room. The fabric and appearance of the School has also benefited from the unwavering commitment of the cleaning, grounds staff and volunteers who keep the School looking smart and welcoming.

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TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

OBJECTIVES AND ACTIVITIES (continued)

Fundraising

The School’s fundraising activity is mainly through events run by the dynamic Friends of Terrington Hall parent group who continue to support the school with events that raise funds as well as enhance the community spirit that is so important to the Trust. The School does not have a paid Fundraiser. The Friends of Terrington Hall were able to plan for a comprehensive programme of activities for the year, to both raise funds and to galvanise our community following the periods of lockdown. These included Burn’s Nights, fireworks, Christmas fair, fun run and the Terrington Summer Ball. The penultimate night of summer term saw a parents/staff match vs children’s cricket and netball matches.

Our inaugural Alumni event was hosted at school in June 2022, with a healthy attendance. The next steps are to grow this event and to have three gatherings per year for designated groups, along with the formation of a committee to drive planning and expand our database of connections with former pupils, families and friends of Terrington Hall.

FINANCIAL REVIEW

The Governors are satisfied with this year’s School financial performance as detailed in the Statement of Financial Activities, the Balance Sheet and the Notes to the Financial Statements. Management, and all staff, have adapted well to the changing national circumstances through rigorous management of resources. Management and Governors have undertaken thorough, continuous review of resources and forecasts since the onset of the pandemic, and continue to do so in the 2021/2022 academic year. This close monitoring has helped to ensure that appropriate mitigating actions and adaptive measures have been made where necessary.

In terms of liquidity, cash flow remains strong, however the School maintains modest overdraft facilities with the Bank which have not been used for a number of years. An additional variable term loan facility was taken out as precautionary measure as part of the Covid-19 impact mitigation plan implemented by Management and the governing body. The loan facility was converted into a fixed term facility in agreement with the lender. The funds drawn down on the facility have not been utilised and remain fully available to the School.

The total funds of the School are £932,497 (2021 - £949,234) of which £178,479 (2021 £190,882) are held in restricted funds

The Governors have established a policy in respect of free reserves (being those funds not tied up in fixed assets and restricted funds) that should equate to two months of resources expended on charitable activities equating to £347,000. At this level, the Governors feel they would be able to continue the current activities of the trust in the event of a significant drop in incoming resources.

The current free reserves are currently below this level at a deficit of £195,000 but the Governors have arranged relevant facilities with the bank which they feel are sufficient for the trust to continue to meet its on-going obligations. It is their policy to build up the reserves to the required level by means of annual operating surpluses.

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TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

PRINCIPAL RISKS AND UNCERTAINTIES

During the year, the School's Governors have examined the principal areas of Terrington Hall Trust’s operations and considered the major risks in each of these areas. In the opinion of the Governors, the School has established systems which, under normal circumstances, should allow these risks to be managed to an acceptable level in its day to day operation. A comprehensive Risk Register is maintained and is being further developed to form the basis of a regular annual review of mitigation measures necessary to minimise or control risks to an acceptable level.

The Governors continue to keep Terrington Hall Trust’s activities under review, particularly with regard to any major risks that may arise from time to time, and to monitor the effectiveness of the system of internal controls and other viable means, including insurance cover where appropriate, by which those risks identified by the Governors can best be managed and mitigated. For example, in response to the global inflationary environment, the Board has initiated a Long Term Financial Planning taskforce for scenario planning and longer-term financial decision-making.

The Senior Management Team is, through its day-to-day operational management of the charity, responsible for managing and controlling risk in line with the approved policy and framework agreed by the Board. The impact of Covid-19 was identified to be a continuing risk and the School has moved to mitigate the impact. A separate Covid-19 risk register was collated in the year and continued to be maintained.

The key controls used by Terrington Hall Trust include:

Health and Safety issues are considered at regular meetings of the School Health and Safety Committee; a designated Governor is appointed to the committee, who reports to the Board.

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TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

PLANS FOR FUTURE PERIODS

Our 5-year strategic development plan has been launched. We have clear and ambitious targets that will ensure our continued success and development, built on a solid understanding of our vision and values, community, and most vitally, the children. We are intentionally ambitious in our aims and have the children at the core of all our initiatives and thinking. The leadership team examined the changing landscape for independent education, and the specific opportunities and threats facing the School. The plan sets out comprehensive strategic objectives and initiatives to enable the school to grow and provide the best possible outcomes for our children and staff.

Development of the curriculum will continue apace and the co-curricular TALL programme and iPQ will continue to become embedded, along with the development of our new House system and Ad Astra enrichment programme.

A focus in the coming year will be on incremental gains within our academic provision, with more diagnostic assessment, reporting and monitoring of pupils. This will include assessments for progress in maths, science and English, alongside two CAT4 assessments. A pastoral tracker is also being investigated.

Boarding is a key component of the school and offers children the opportunity to develop their social skills, independence and organisation. We have a growing interest from children wishing to weekly board and we are expanding this provision, whilst also looking to mainland Europe for short stay full time boarders. To this end, a new Head of Boarding has been internally promoted to this role, which will help energise and refresh our existing offer.

We plan to hold two assemblies per week, with the second one for celebration of achievements by the pupils. This will be referred to as the House assembly, and with a focus of pupil ownership and led by senior pupils. There will be a pastoral focus at weekly assemblies following the ‘theme of the week’, led by different staff members. This includes Fundamental British Values, Black Lives Matter, Martin Luther King Day and International Women’s Day to name but a few.

To supplement our outstanding pastoral care within the School, peer mentoring training has been delivered to our Year 8 pupils, along with basics in safeguarding training, who are assigned younger children to look after and mentor, as part of the TALL leadership programme.

The planning and delivery of Relationships and Sex Education (RSE) across the School will continue to sit within the remit of the Senior Management Team with a Designated RSE Governor in support. The programme has been endorsed by the PSHE Association and runs alongside the PSHE and science curriculum with a clear mapping in place. Parents are fully consulted about the programme prior to the commencement of teaching.

We are working hard to promote the Forest School, with two designated members of staff now trained to deliver outdoor lessons as accredited forest school leaders.

The year ahead will see advancements by the Headmaster and Board of Governors to reach out to our wider community, including establishing stronger links with our Alumni with the second gathering of the Alumni Association as well as our local primary school and local community representatives.

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TERRINGTON HALL TRUST LIMITED

GOVERNORS’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

STATEMENT OF TRUSTEES’ AND GOVERNORS’ RESPONSIBILITIES

The Governors (who are also the directors and trustees of the Terrington Hall Trust Limited for the purposes of company law) are responsible for preparing the Annual Report and financial statements in accordance with law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Governing Body to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charitable Company at the end of the year and of its financial activities for that year. In preparing those financial statements the Governors are required to:

The Governors are responsible for keeping adequate accounting records which disclose with reasonable accuracy the financial position of the Charity and which enables them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE TO OUR AUDITORS

In so far as the Governors are aware at the time of approving our Governors’ Annual Report:

Approved by the Board of Governors at its meeting on 16 March 2023 and signed on its behalf by:

K E Lamont Trustee

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

TERRINGTON HALL TRUST LIMITED

Opinion

We have audited the financial statements of Terrington Hall Trust Limited (the 'School') for the year ended 31 August 2022, which comprise the Statement of Financial Activities, Balance Sheet, 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 FRS 102 Section 1A '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 School 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:

Other information

The other information comprises the information included in the Governors’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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.

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

TERRINGTON HALL TRUST LIMITED

Opinion on other matter prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the School and its environment obtained in the course of the audit, we have not identified material misstatements in the Governors' Annual Report.

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

Responsibilities of Governors

As explained more fully in the Governors’ responsibilities statement set out on page 11, the Governors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Governors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the governors are responsible for assessing the School'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 Governors either intend to liquidate the School or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

TERRINGTON HALL TRUST LIMITED

Auditor’s responsibilities for the audit of the financial statements (continued)

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent Schools Standards) Regulations 2014, Food Hygiene regulations, Health and Safety legislation, Employment legislation, Charity Commission regulations and General Data Protection Regulation (GDPR).

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and income recognition. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, proof in total testing of fee income, detailed substantive testing on the completeness of other sources of income, reviewing regulatory correspondence and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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 School’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the School’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the School and the School’s members as a body, for our audit work, for this report, or for the opinions we have formed.

...................................... Sarah Wearing (Senior Statutory Auditor) For and on behalf of HPH, Statutory Auditor

54 Bootham YORK YO30 7XZ

16 March 2023

14

TERRINGTON HALL TRUST LIMITED STATEMENT OF FINANCIAL ACTIVITIES AND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2022

Unrestricted
Note
Funds
£
Income and endowments from:
Donations
5,548
Charitable activities
School fees
4
1,916,918
Other income
4
162,645
Other trading activities
5
2,456
Total income
£ 2,087,567
Expenditure on:
Costs of raising funds
6
27,607
Charitable activities
6
2,064,294
Total expenditure
6
£ 2,091,901
Net income/(expenditure)
(4,334)
Transfers between funds
-
Net movement in funds
(4,334)
Reconciliation of funds:
Total funds brought forward
758,352
Total funds carried forward
£ 754,018		 Restricted
Funds
£
-
-
-
33,105
£ 33,105
25,321
20,187
£ 45,508
(12,403)
-
(12,403)
190,882
£ 178,479		 Total
2022
£
5,548
1,916,918
162,645
35,561
£ 2,120,672
52,928
2,084,481
£ 2,137,409
(16,737)
-
(16,737)
949,234
£ 932,497		 Total
2021
£
1,087
1,688,016
212,240
1,402
£ 1,902,745
45,437
1,800,256
£ 1,845,693
57,052
-
57,052
892,182
£ 949,234

The notes on pages 18 to 26 form part of these financial statements.

Income and net movement in funds derive wholly from continuing operations.

15

TERRINGTON HALL TRUST LIMITED BALANCE SHEET AS AT 31 AUGUST 2022

Company number: 01193407

Note
£
£
Fixed assets
Tangible fixed assets
8
948,699
Current assets
Stocks
9
22,986
Debtors
10
88,126
Cash at bank and in hand
21
643,394
754,506
11
(676,849)
Net current assets
77,657
Total assets less current liabilities
1,026,356
12
(93,859)
Total net assets
£ 932,497
The funds of the charity
Unrestricted funds
14
754,018
Restricted funds
15
178,479
Total charity funds
£ 932,497
Creditors: amounts falling due after more
than one year
2022
Creditors: amounts falling due within one
year		 £
£
945,290
23,908
76,010
625,594
725,512
(616,650)
108,862
1,054,152
(104,918)
£ 949,234
758,352
190,882
£ 949,234
2021		 £
£
945,290
23,908
76,010
625,594
725,512
(616,650)
108,862
1,054,152
(104,918)
£ 949,234
758,352
190,882
£ 949,234
2021
1,054,152
(104,918)
£ 949,234
758,352
190,882
£ 949,234

The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

Approved by the Board on 16 March 2023 and signed on their behalf by:

K Lamont Governor

R L Cordingley Governor

The notes on pages 18 to 26 form part of these financial statements.

16

TERRINGTON HALL TRUST LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2022

Note
£
£
Net cash used in operating activities
20
94,969
Cash flow from investing activities:
Purchase of tangible fixed assets
(68,526)
(68,526)
Cash flow from financing activities:
Repayments of borrowings
(8,643)
Net cash used in financing activities
(8,643)
17,800
625,594
21
£643,394
Change in cash and cash equivalents in
the year
Cash and cash equivalents at beginning of
the year
Cash and cash equivalents at end of the
year
2022
Net cash used in investing activities		 £
£
297,538
(37,110)
(37,110)
(5,959)
(5,959)
254,469
371,125
£625,594
2021		 £
£
297,538
(37,110)
(37,110)
(5,959)
(5,959)
254,469
371,125
£625,594
2021
254,469
371,125
£625,594

The notes on pages 18 to 26 form part of these financial statements.

17

TERRINGTON HALL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1 ACCOUNTING POLICIES

Legal entity

Terrington Hall Trust Limited is regulated by the Charities Commission (532362), limited by guarantee and is registered in England and Wales. The address of the registered office and principal place of business is Terrington Hall Trust Limited, Terrington, York, YO60 6PR.

In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK (FRS102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and the Companies Act 2006.

The charity meets the definition of a public benefit entity under FRS102.

Going concern

The governors have considered the cash requirements beyond 12 months from date of approval of the accounts and, having undertaken a rigorous scenario planning process, have a reasonable expectation that the Charitable Company has adequate resources to continue in operational existence for the foreseeable future. They continue to believe that the going concern basis of accounting is appropriate in preparing the annual financial statements.

Fees and other income

Parental contributions, 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 School.

Donations

Donations receivable for the general purpose of the School 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 Trustees.

Other trading activities

All other incoming resources are included in the SOFA when the School is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Expenditure

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer-term liabilities. Expenditure attributable to more than one cost category is apportioned to them on the basis of the estimated amount attributable to each activity in the year, either by reference to staff time or the use made of the underlying assets, as appropriate. The irrecoverable element of VAT is included with the item of expense to which it relates.

Bursaries and allowances from unrestricted funds towards school fees are treated as a reduction in those fees.

Governance costs are costs associated with constitutional and statutory requirements. They include audit fees and estimated costs linked to the strategic management of the School. Support costs are those incurred directly in support of expenditure on the objects of the School.

18

TERRINGTON HALL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1 ACCOUNTING POLICIES (continued)

Tangible fixed assets

Alteration and improvement expenditure on freehold property is treated as capital if it results in additional floor area for use of the School or if it significantly enhances the property. Otherwise it is charged to revenue as maintenance of buildings.

Depreciation

Depreciation is calculated to write off the cost of fixed assets over their expected useful lives on a straight line basis. The rates used are as follows:

Freehold property 2% per annum straight line Freehold property - Integral features 10% per annum straight line Furniture, fittings and equipment 25% per annum straight line Motor vehicles 25% per annum straight line

Items costing less than £3,000 are written off as an expense as acquired.

Assets are depreciated once brought into use.

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.

Pension schemes

The charitable company 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. The scheme is therefore accounted for as a defined contribution scheme. The charitable company also contributes to a defined contributions scheme for administration staff. In both cases contributions are charged to the income and expenditure account in the year in which they accrue.

19

TERRINGTON HALL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1 ACCOUNTING POLICIES (continued)

Operating leases

Rentals payable under operating leases are charged in the SOFA on a straight line basis over the lease term.

Funds structure

Funds comprise unrestricted funds which have not been designated for other purposes, and are available for use at the discretion of the Trustees in accordance with the charitable objectives. Designated funds are unrestricted funds earmarked by the Trustees for particular purposes. Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Government grants

Government 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.

2 TAXATION

As a registered charity, Terrington Hall Trust Limited is exempt from the tax on income falling within sections 466 to 493 of the Corporation Tax Act 2010 to the extent that this is applied to its charitable objects. No tax charges have arisen in the Company.

3
OPERATING SURPLUS
The surplus for the year is stated after charging:
Depreciation
Operating lease - equipment
Auditors' remuneration
Other fees paid to auditor
4
INCOME FROM CHARITABLE ACTIVITIES
School fees
Gross fees
Less: Scholarships and allowances
Other income
Recharges to pupils for education and sports requisites
School shop sales
Government grants
Other income
All income from charitable activities relates to unrestricted funds.
5
OTHER TRADING ACTIVITIES
Fundraising activities
Hire of accommodation		 2022
£
76,042
22,232
5,725
1,893
2,202,481
(285,563)
£ 1,916,918
102,790
22,738
-
37,117
£ 162,645
33,105
2,456
£ 35,561		 2021
£
63,042
19,258
5,725
1,507
1,989,689
(301,673)
£ 1,688,016
61,234
14,040
134,464
2,502
£ 212,240
1,402
-
£ 1,402

20

TERRINGTON HALL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

5 OTHER TRADING ACTIVITIES (continued)

£25,321 of other trading activities relates to restricted funds (2021: £1,402).

Hire of accommodation relates to the renting out of the school's accommodation during school holidays and by renting out two properties.

6 ANALYSIS OF TOTAL EXPENDITURE

Staff Other Total Total
costs costs Depreciation 2022 2021
£ £ £ £ £
Cost of generating funds
Marketing and advertising - 24,855 - 24,855 37,067
Fundraising costs - 25,321 - 25,321 1,035
Bank interest - 2,752 - 2,752 2,955
Bad debts provided for - - - - 4,380
- 52,928 - 52,928 45,437
£25,321 (2021: £1,035) of expenditure on generating funds relates to restricted funds.
Charitable activities
Teaching costs 1,096,825 206,795 5,812 1,309,432 1,121,965
Welfare 118,559 91,353 15,490 225,402 177,687
Premises 59,939 223,149 54,524 337,612 300,572
Support costs 125,116 79,085 216 204,417 180,215
Governance costs - 7,618 - 7,618 7,232
1,400,439 608,000 76,042 2,084,481 1,787,671
Total expenditure £ 1,400,439 £ 660,928 £ 76,042 £ 2,137,409 £ 1,833,108
£20,187 (2021: £9,135) of the expenditure on charitable activities relates to restricted funds.
2022 2021
Governance costs include: £ £
Auditors' remuneration:
for audit services 5,725 5,725
for other services 1,893 1,507
£ 7,618 £ 7,232
7 STAFF COSTS
Wages and salaries 1,074,269 957,545
Social security costs 102,144 84,198
Other pension costs 182,882 167,125
Other costs 41,144 30,367
£ 1,400,439 £ 1,239,235
The average monthly head count was 44 staff (2021: 42) and the average monthly number of full-time equivalent
employees during the year were as follows:
Teaching 27 27
Welfare 7 6
Support 4 3
38 36

21

TERRINGTON HALL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

7 STAFF COSTS (continued)

No employees received benefits between £60,000 - £69,999 during the year (2021: none). One employee received benefits between £70,000 - £79,999 during the year (2021: one).

No governors nor any persons connected with them received any remuneration or other benefits from the school for their services to the charity nor were reimbursed for travel expenses during this or the preceding year.

The key management personnel of the Charity, comprise the governors, the Head Teacher, Deputy Heads - Pastoral and Academic and Bursar. The total employee benefits of the paid key management personnel of the Charity were £291,801 (2021: £275,946).

8 TANGIBLE FIXED ASSETS

ANGIBLE FIXED ASSETS
Cost:
At 1 September 2021
Additions
At 31 August 2022
Depreciation:
At 1 September 2021
Charge for the year
At 31 August 2022
Net book values:
31 August 2022
31 August 2021		 Freehold
property
£
1,654,882
35,447
1,690,329
725,161
54,524
779,685
£ 910,644
£ 929,721		 Furniture,
fixtures and
equipment
£
317,647
13,200
330,847
302,078
13,817
315,895
£ 14,952
£ 15,569		 Motor
vehicles
£
12,500
30,804
43,304
12,500
7,701
20,201
£ 23,103
£ -		 Total
£
1,985,029
79,451
2,064,480
1,039,739
76,042
1,115,781
£ 948,699
£ 945,290

The Governors consider the market value of the freehold property to be considerably in excess of its book value. Due to the costs involved in obtaining a professional valuation it has not been practicable to quantify the excess.

All of the tangible fixed assets relate to unrestricted funds.

9
STOCKS
10 DEBTORS
Trade debtors
Other debtors
Prepayments and accrued income
Stock of £420 relates to restricted funds in 2022 (£753 in 2021)
Closing stock		 2022
£
£ 22,986
46,557
336
41,233
£ 88,126		 2021
£
£ 23,908
31,509
2,751
41,750
£ 76,010

Debtors of £211 relates to restricted funds in 2022 (£2,751 in 2021)

22

TERRINGTON HALL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

11 CREDITORS: amounts falling due within one year
Fees received in advance
Trade creditors
Other creditors
Taxation and social security
Pension
Bank loan and overdraft
Accruals
12 CREDITORS: amounts falling due after one year
Bank loan
Other creditors
Amounts due after more than one year:
Repayable between 1-2 years
Repayable between 2 - 5 years
Repayable in 5 years and more		 2022
£
500,926
33,557
6,411
25,363
19,422
14,498
76,672
£ 676,849
66,859
27,000
£ 93,859
14,498
43,495
8,866
£ 66,859		 2021
£
470,573
44,540
17,503
19,727
19,260
12,082
32,965
£ 616,650
77,918
27,000
£ 104,918
14,498
43,495
19,925
£ 77,918

All creditors relate to unrestricted funds.

The bank loan facilities are secured by a first legal charge dated 15 May 2014 over freehold property known as Terrington Hall School, Terrington, York, YO60 6PR, and a debenture (including charged land) dated 15 May 2014. The loan facilities represent 9% (2021: 9.5%) of the net book value of the freehold property.

The interest rates on the loans are 3.46% or 3% over base.

2022 2021
**13 ** DEFERRED INCOME £ £
Fees received in advance
Balance at 1 September 470,573 305,066
Released to statement of financial activities (470,573) (305,066)
- -
Deferred in the period 500,926 470,573
Balance at 31 August £ 500,926 £ 470,573

23

TERRINGTON HALL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

14 UNRESTRICTED FUNDS

UNRESTRICTED FUNDS
Balance at Balance at
1 Sept. 2021 Income Expended Transfers 31 Aug. 2022
£ £ £ £ £
Designated funds
Capital fund 115,363 - - - 115,363
Undesignated funds
General 642,989 2,087,567 (2,091,901) - 638,655
£ 758,352 £ 2,087,567 £ (2,091,901) £ - £ 754,018
Balance at Balance at
1 Sept. 2020 Income Expended Transfers 31 Aug. 2021
£ £ £ £ £
Designated funds
Capital fund 115,363 - - - 115,363
Undesignated funds
General 577,169 1,888,758 (1,822,938) - 642,989
£ 692,532 £ 1,888,758 £ (1,822,938) £ - £ 758,352

The unrestricted school funds are held to finance the freehold property and to cover normal fluctuations in working capital, split as designated between freehold property and general reserves.

The capital fund represents the capital cost of the original land and buildings.

15 RESTRICTED FUNDS

Balance at
1 Sept. 2021
Income
Expended
Transfers
£
£
£
£
8,855
33,105
(25,321)
-
182,027
-
(20,187)
-
£ 190,882
£ 33,105
£ (45,508)
£ -
Balance at
1 Sept. 2020
Income
Expended
Transfers
£
£
£
£
8,488
1,402
(1,035)
-
191,162
-
(9,135)
-
£ 199,650
£ 1,402
£ (10,170)
£ -		 Balance at
31 Aug. 2022
£
16,639
161,840
£ 178,479
Balance at
31 Aug. 2021
£
8,855
182,027
£ 190,882

Terrington Hall Parents' Social and Fundraising Group fund

The Terrington Hall Parents' Social and Fundraising Group fund represents donations and fundraising to purchase specific items.

Bursary Fund

This fund relates to grants received for Bursaries for specific purposes.

24

TERRINGTON HALL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

16 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Net current Long
Tangible (liabilities)/ term 2022
fixed assets assets liabilities Total
£ £ £ £
Unrestricted funds 948,699 (100,822) (93,859) 754,018
Restricted funds - 178,479 - 178,479
£ 948,699 £ 77,657 £ (93,859) £ 932,497
Net current Long
Tangible (liabilities)/ term 2021
fixed assets assets liabilities Total
£ £ £ £
Unrestricted funds 945,290 (82,020) (104,918) 758,352
Restricted funds - 190,882 - 190,882
£ 945,290 £ 108,862 £ (104,918) £ 949,234

17 OPERATING LEASE COMMITMENTS

As at 31 August 2022 the charitable company had future minimum lease payments under non-cancellable operating as follows:

Within one year
Between one and five years		 2022
£
6,346
3,617
£ 9,963		 2021
£
6,092
8,438
£ 14,530

18 RELATED PARTIES

There were no related party transactions during the year which were not offered on the same terms as the general public.

19 PENSION SCHEMES

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £164,903 (2021: £150,805) and at the year-end £19,422 (2021 - £16,742) 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%.

25

TERRINGTON HALL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

19 PENSION SCHEMES (continued)

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. The consultation closed to response on 19 August 2021 and the Government is currently analysing the responses.

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.

Until the cost cap mechanism review is completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

The School also runs a scheme for its non-teaching staff, which is a defined contribution scheme. The pension charge for the year includes contributions payable to the scheme of £17,979 (2021: £16,320). At the year-end £nil (2021: £2,517) was accrued in respect of contributions to this scheme.

20 RECONCILIATION OF NET INCOME TO NET CASH FLOW
FROM OPERATING ACTIVITIES
Net income for the reporting period
Depreciation of tangible fixed assets
Decrease in stocks
Decrease/(Increase) in debtors
Increase in creditors
Net cash used in operating activities
21 ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Total cash and cash equivalents		 2022
£
(16,737)
76,042
922
(12,116)
46,858
£ 94,969
643,394
£ 643,394		 2021
£
57,052
63,042
1,662
8,626
167,156
£ 297,538
625,594
£ 625,594

26