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2020-08-31-accounts

Company No: 2114449 Registered Charity No: 701294

St John’s College Limited

(A company limited by guarantee)

Annual report and financial statements For the year ended 31 August 2020

St John’s College Limited Annual report and financial statements

Contents Page
Trustees, officers and advisers 1 - 2
Annual Report of the Trustees including the Strategic Report 3 - 10
Independent Auditor’s Report 11 - 13
Statement of Financial Activities 14
Balance Sheet 15
Cash Flow Statement 16
Notes to the Financial Statements 17 - 32

St John’s College Limited Trustees, officers and advisers Year ended 31 August 2020

Trustees, directors and charity trustees

The Trustees of St John’s College (“the School”) are the School’s charity trustees under charity law and the directors of the charitable company. The members of the Governing Body who served in office as Trustees during the year and subsequently are detailed below.

S James (Company Secretary) P Smerald (Chair of the Trustees) S Dimond J Rees R Davies (Appointed 1 April 2020) S Eden (Appointed 1 April 2020) P Malfatti (Appointed 1 April 2020)

Each Trustee is expected to be involved in the responsibilities and the activities of all matters of governance.

Key management personnel

S Moody Head Teacher A Johnson Head of Estates J Gordon-Smith Deputy Head M Bridge Assistant Head E Jones Assistant Head

Principal address

College Green Newport Road Old St Mellons Cardiff CF3 5YX

Independent auditors

Saffery Champness LLP St Catherine’s Court Berkeley Place Clifton Bristol BS8 1BQ

1

St John’s College Limited Trustees, officers and advisers Year ended 31 August 2020

Bankers
Lloyds Bank Plc 3rd Floor Citymark
150 Fountainbridge
Edinburgh
EH3 9PE
Santander 1stFloor Operations Block
Bootle
Merseyside
L30 4GB
Solicitors
Capital Law Capital Building
Tyndall Street
Cardiff
CF10 4AZ
Investment advisors
Charles Stanley & Co 7/8 Park Place
Cardiff
CF10 3DP
Brewin Dolphin 5 Callaghan Square
Cardiff
CF10 5BT
Website www.stjohnscollegecardiff

www.stjohnscollegecardiff.com

2

Annual Report of the Trustees including the Strategic Report To the members of St John’s College Limited Year ended 31 August 2020

The Trustees’ present their annual report for the year ended 31 August 2020 under the Companies Act 2006 and the Charities Act 2011, including the Directors’ and Strategic Reports, together with the audited financial statements for the year, and confirm that the latter comply with the requirements of the Companies Act 2006, the Company’s Memorandum and Articles of Association and the Statement of Recommended Practice “Accounting and Reporting by Charities” (FRS 102) issued in 2015 (“SORP 2015”).

REFERENCE AND ADMINISTRATIVE INFORMATION

St John’s College (“the Company”) is a company limited by guarantee, company registration number 2114449. It is registered as a charity under registration number 701294. It is exempt from the requirement to include the word “limited” in its name. Its registered office and principal address is College Green, Newport Road, Old St Mellons, Cardiff CF3 5YX. Website: www.stjohnscollegecardiff.com.

The School

The School principally provides a high level of education to boys and girls in Cardiff and the surrounding areas from the ages of 3 to 18 years in the context of a recognised Roman Catholic cathedral choir school.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The company’s directors are the trustees and are referred to as trustees throughout. Members elect trustees at the Annual General Meeting for a period of up to three years. The body of trustees of the company is limited to no more than seven persons. At least 25 percent of trustees must retire at each Annual General Meeting and may offer themselves for re-election. The trustees may appoint a new trustee to fill a casual vacancy who will hold office until the next Extraordinary General Meeting or Annual General Meeting. The company is limited by guarantee and, as such, no trustee has any interest in the company.

The current board of trustees consists of men and women, that are made up of lawyers, professionals, a company director and central government manager. At the present time, they all happen to be parents of current or former pupils at the School. They possess professional legal competence, have a ready grasp of accounting and financial matters, understand the management of buildings and human resources and have a detailed knowledge of the educational activities within the School, not least in their role as parents of current or former pupils, and acquaintance with a wide range of existing families whose children attend the School.

As new trustees are appointed, an induction programme ensures that all of the above competencies and qualities are confirmed and that suitable professional development training will be undertaken as required. As a matter of course, all trustees are vetted through enhanced clearance from the Disclosures and Barring Service (DBS), as is every member of staff and volunteer at the School. All new trustees will be required to undertake an enhanced DBS disclosure prior to being appointed plus any further safeguarding measures as required by law and as administered by the ISC at the appropriate time.

The School’s Board of Trustees’ includes all the trustees, who advise and support the head and staff in managing and administering the work of the College. The Board expects to meet on up to four occasions each academic year.

The School’s trustees delegate the day-to-day management of the School to the head.

The board of trustees set the pay and remuneration for the head and key management personnel. Remuneration is set to provide appropriate incentives to encourage, and reward, enhanced performance. The appropriateness and relevance of the remuneration policy is reviewed annually including referred to comparisons with other independent schools.

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Annual Report of the Trustees including the Strategic Report To the members of St John’s College Limited Year ended 31 August 2020

AIMS, OBJECTIVES AND PRINCIPAL ACTIVITIES

The objects of the Charity, in accordance with its Memorandum and Articles of Association, are to promote and provide for the advancement of education of children, both Roman Catholic and others, and this is achieved and realised through the context of a specialist nationally recognised Cathedral Choir School, one of up to forty such schools in England and two in Wales. The School is a designated School of Religious Character (National Assembly for Wales) teaching the Roman Catholic faith.

In setting the objectives of the Charity and in planning activities, the trustees have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education and on fee charging.

The aims and objectives are more fully articulated as follows -

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Annual Report of the Trustees including the Strategic Report To the members of St John’s College Limited Year ended 31 August 2020

For this year, the main objective has been to continue to provide a first-class academic education for our pupils as well as benefiting the pupils by exposure to a range of non-academic pursuits. As part of this objective, the School performed very well at A-level, is amongst the leading group of independent schools, registered in Wales with WAG and thus inspected by ESTYN, in public examination league tables, and has succeeded in ensuring that all 6th-formers are successful in entering the best and mostly Russell Group universities to study subjects of their choice. Its objectives include maintenance (with appropriate succession planning and professional training) of an experienced, high quality body of teachers. The School strives to further enhance local community support and to foster access to pupils with limited financial resources.

In terms of financial objectives, the charity’s funds are managed prudently and returns are measured against market benchmarks but with a very sharp eye to security. The trustees also monitor the generation of an operating surplus by the School and the maintenance of reserves to provide the resources for supporting means-tested awards for pupils who would otherwise be unable to attend the School, particularly where this fosters the School’s academic and choral foundation aspirations and the wider public benefit which they bring. There is an ongoing commitment to improving facilities and resources.

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Annual Report of the Trustees including the Strategic Report To the members of St John’s College Limited Year ended 31 August 2020

Investment in the physical IT infrastructure continued during the year. This has enabled the school to provide significant improvements in teaching, communications and to enable the provision of a wholeschool MIS. This has also allowed the school to successfully continue to teach pupils during the national lockdown through online teaching offering a full time table to pupils.

During the Year the COVID-19 Pandemic in the UK and the Country was put into lockdown in March 2020. The school invested in Personal Protective Equipment, increased cleaning regimes and underwent rigorous risk assessments to ensure the safety of it’s staff, pupils, parents and local public.

PUBLIC BENEFIT

The amount of our wider public benefit means-tested/choral foundation bursaries during 2019/2020 exceeded our total investment income that was, as stated in the statement of financial activities, £93,723 (2019 - £110,793). The policy of the School has been to generate more funds for means-tested bursaries in order to relieve financial hardship for families where the pupil’s education and future prospects would otherwise be at risk.

Other charitable public benefit activity consistent with the School’s aims and ethos this year has included offering use of the School’s facilities/assets as follows during periods whereby the Country was not in lockdown due to the COVID-19 pandemic:

Further contribution to the public benefit during the COVID-19 pandemic;

Examples of charitable fund-raising by the College community during the year included: Cafod Crisis HPCT 73 The Pilgrim Trust Australia Fire appeal Racing to School Children In Need Sport Relief Books2Africa Macmillan Cancer Care Reading for Good

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Annual Report of the Trustees including the Strategic Report To the members of St John’s College Limited Year ended 31 August 2020

STRATEGIC REPORT

ACHIEVEMENT AND PERFORMANCE

Continued academic achievement is supported by an ongoing review of the academic curriculum in order to provide a breadth and challenge in the nature and range of subjects, as well as directing further resources to School departments and extra-curricular activities.

This strategy is to be incorporated in the ongoing revised Development Plan, drafted by the head and senior leadership team, and reviewed and endorsed by the trustees in order to 1) maintain funding for bursaries directed at the School’s objectives and 2) to finance further improvements to the school’s classrooms, catering facilities and science prep areas.

The academic year 2019/2020 again produced an excellent performance as measured by public examination results.

At A-level, a pass rate of 95% (2019 – 87%) was achieved at ‘A’, ‘A’ and ‘B’ level which was an extremely strong result by national standards. 76% (2019 – 63%) of all results were grade ‘A’ or ‘A’. A pass rate of 99% was achieved (2019 – 96%). All leavers have been offered places almost entirely at Russell group universities and in the subject of their choice.

AS results also provided an excellent platform for future A level success with a high proportion achieving ‘A’ or ‘B’ grades.

At GCSE level, 100 % (2019 – 99%) of results were at ‘A’- ‘C’ grades, and 80% (2019 - 81%) of all results were grade ‘A’ or ‘A’. In addition, 51% of pupils attained 9 or more straight A* / A grades (2019 – 53%). In 2018 Government ESTYN Inspectors graded the School Excellent in the areas of Standards, Wellbeing and attitudes to learning and Care, support and guidance.

The School has reached new heights in music performance, our facilities continue to improve with the completion of the new 6th form centre, new Sports Pavilion, and we have strengthened further our teaching force. We continue to serve the Archdiocese of Cardiff in the Metropolitan Cathedral, providing glorious music.

As a result of all of the above, the School is confident that it has achieved its objective in terms of academic performance which has led to the maintenance of a high position in the published league tables of independent schools and in university entrance success.

Wider access to the College’s schooling was achieved in 2019/2020 through the provision of bursaries as outlined above. During the course of the academic year, the School had an average of 546 day pupils (2019 – 546).

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Annual Report of the Trustees including the Strategic Report To the members of St John’s College Limited Year ended 31 August 2020

FINANCIAL REVIEW

The School’s operating deficit for the year was £477,385 (2019 - operating deficit of £398,661). This operating deficit is stated after the recognition for a provision totalling £361,539 which arose from an administrative error in pension auto enrolment in the financial year 2014/15, more detail for which is provided in note 22. The trustees consider this change in financial performance, before the aforementioned provision, to be in line with expectation given the decision to invest in facilities and staff and widen pupil access and experience. The school has cash reserves of £1,026,689. Budgets prepared for the 2020/21 year suggest that the school’s performance will improve, with the aim to generate small surplus.

The trustees believe that this is a satisfactory financial performance given the development of school buildings, formalisation of staffing structure and increased wider public benefit commitment in a context of reduced interest rates.

The trustees have considered the use of the going concern basis in the preparation of the financial statements and have concluded that it was appropriate.

The board of trustees is responsible for the management of the risks faced by the School. On a quarterly basis at a full Trustees’ meeting, they formally review the identified risks which the School may face and liaise with the School’s management in this regard.

The key risks identified for any independent school relate to reputation, health and safety, safety of all pupils, and general financial, operational and strategic risks. Controls and safeguards which are put in place to manage the major risks include: appropriate levels of insurance cover; terms of reference for subcommittees where applicable (in practice and almost without exception, all matters are addressed by the full Board); strategic planning; budgeting and cash flow forecasting; formal written policies; clear authorisation and approval levels; strict adherence to DBS vetting and safeguarding procedures in order to protect school pupils; and completion of appropriate risk assessments on all relevant aspects of the School’s activities.

The College senior leadership team implement these matters on an ongoing basis. The head reports to the board of trustees. The Finance Manager, Human Resource Manager, Examinations Officer and Estates Manager report to the head. The trustees are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that this process provides reasonable assurance that identified risks are being mitigated, but this cannot provide absolute assurance.

Limited fundraising is used by the school as the charity’s main source of income, pupil admissions, generates sufficient resources to cover its expenses. All pupil applications are independently reviewed by employees of the school and no professional or commercial participators are used in the decision making process.

INVESTMENTS

The objectives of the School’s investment policy are to maintain a secure level of reserves for the College while achieving growth in the capital of the College.

The trustees seek to maximise the value of investment returns for the benefit of pupils by the use of shortterm secure best interest bank deposits and longer-term investments consistent with security. The Trustees wish to adopt a medium risk approach, while complying with the Trustee Investment Acts.

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Annual Report of the Trustees including the Strategic Report To the members of St John’s College Limited Year ended 31 August 2020

Details of longer term investments that have been put in place during the year are shown in note 8 of the accounts.

RESERVES

At the reporting date, the College held unrestricted reserves of £8,100,833 (2019 – £8,578,218).

The trustees’ intention is that this surplus will be contributed towards the costs of the strategic capital projects to avoid the need for bank borrowings, and to maintain a reserve for wider public benefit bursaries; however, they have not specifically designated a set amount for this purpose.

FUTURE PLANS

In light of the academic and financial performance, the School’s key objectives for the future remain the same as reported above for this year.

STATEMENT OF ACCOUNTING AND AUDITING RESPONSIBILITIES

The members of the Governing Body (who are also the directors of the School for the purposes of company law) are responsible for preparing the Annual Report and the financial statements with applicable law and regulations.

Company law requires the Governing Body to prepare financial statements for each financial year. Under that law the Governing Body have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law.

Under company law the Governing Body members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Governing Body members are required to:

The members of the Governing Body are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions, disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the Charity’s constitution. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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Annual Rel￿rt of theTn￿ee5 Inch￿Ingthe Str** ftewt To the members of Stjohn's Collrye Lkntted Year ended 31 Au8ust 2020 Insofar as each of the Trustees, a5 members of the Governing Body. at the date of approval of this report Is aware there is no relevant audlt Information {Infomatlon needed by the Companvs auditor In conneclion wlth preparfngthe audit feportl ofwhlth the Compan￿$ audltorts unaware. Eath memberofthe Govemln8 Body has taken all the steps that he or she should have tsken as a member of the Go¥emlng Body In order to make hlmself of herself aware of relevant awlSt infornwtlon and to estsblish that the Companvs udltor Is aware of that Inft>rmatlon. AUDITOR In accordance wlth sectlon 485 of the Companles Act 2006 a resolutloTr proposlng ihe reappolntment of Saffery Champness LLP as audbtor to the Company w511 be put o the Trustees, at the next meetln8. Approved by the Tnjstees at thelr meetlng dlrertors the Strateglc Report thereln. and slAned on thelr b udlng In thelr Capadty Js campany P J Smerald Ch•lr of th rust Date

Independent auditor’s report To the members of St John’s College Limited Year ended 31 August 2020

Opinion

We have audited the financial statements of St John’s College Limited for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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:

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Independent auditor’s report To the members of St John’s College Limited Year ended 31 August 2020

Other information

The trustees are 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, 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.

Opinions on other matters 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 the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report and Strategic 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 trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 9, the trustees (who are also directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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Independent auditor’s report To the members of St John’s College Limited Year ended 31 August 2020

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, 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 charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

27 August 2021

Michael Strong St Catherine’s Court Senior Statutory Auditor Berkeley Place For and on behalf of Saffery Champness LLP Clifton Statutory Auditor Bristol BS8 1BQ

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St John’s College Limited Statement of financial activities Year ended 31 August 2020

Note
Income from:
Charitable activities
School fees receivable
2
Investment income
3
Donations and legacies
4
Other income
Total incoming
resources
Expenditure on:
Charitable activities
Education and grant
making
5
Costs of generating
funds
Investment
management fees
Total expenditure
Net income before
investment gains
Investment
(losses)/gains
9
Net income
Fund balances brought
forward
Fund balances carried
forward		 Unrestricted
funds
£
6,008,714
93,723
260,132
12,657
6,375,226
6,725,617
19,072
6,744,689
(369,463)
(107,922)
(477,385)
8,578,218
8,100,833		 Restricted funds
£
-
-
5,000
-
5,000
5,000
5,000
-
-
-
-
-		 2020
Total
£
6,008,714
93,723
265,132
12,657
6,380,226
6,730,617
19,072
6,749,689
(369,463)
(107,922)
(477,385)
8,578,218
8,100,833		 2019
Total
£
5,889,576
110,793
5,340
13,733
6,019,442
6,361,607
26,851
6,388,458
(369,016)
(29,645)
(398,661)
8,976,879
8,578,218

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St John'$ College Umlted Balance sheet Year ended 31 August 2020 2019 FNed assets Tangible assets Property INestments Securittes investments 5381.944 1.565,691 1,957575 8305210 5.636.221 1,565.691 2,530,731 9.732.643 Stock Debtors Cash at bank io li 9,500 91,793 987.769 1.089.062 118552 1.026.689 1.154.741 Current Nabllllles Creditors payable within one year Net ￿rreftt Ilabllllles {1.597.579) 1442,838) 12.243.488) {1,154.4261 Total assets less current li*lMlitles 8.4623n 8.578.218 Provlslons 22 (3615391 ¢l(Kl033 S￿318 Unre5trf¢ted funds Revaluation reser¥e General reser4e Totsl funds 18 15 222.166 7.878.667 &IC#)A33 229,730 8.348.488 S￿78218 These finanaal statements were approved lrythe Govemln8 Body o ..... .... ..-... . behalf by: re sianed on Its Jsme Id Chair of the Trustees

St John’s College Limited Cash flow statement For the year ended 31 August 2020

Note 2020 2020 2019
£ £ £ £
Net cash provided by operating
activities (i) (421,110) (99,306)
Cash flows from investing
activities
Remitted investment income 39,885 28,411
Capital expenditure (79,855) (721,749)
Disposal of investments 500,000 759,533
Net cash provided by investing 460,030
activities 66,196
(Decrease)/increase in cash in
the year 38,920 (33,111)
Net funds 1 September 2019 987,769 1,020,880
Net funds at 31 August 2020 1,026,689 987,769
(i)
Reconciliation of net incoming resources		 to net cash flow from operations
2020 2019
£ £
£		 £
Net income/(deficit) (477,385)
(398,661)
Investment losses/(gains) 107,922 29,645
Investment income (93,723) (110,793)
Finance costs 19,072 26,851
Depreciation charge 334,133 353,426
Increase in provisions 361,539 -
Loss on disposal of fixed assets - 38,751
(Increase)/decrease in debtors (26,759) (3,851)
Increase/(decrease) in creditors (645,964) (34,674)
56,220 299,355
Net cash inflow/(outflow) from operations (421,165) (99,306)
(ii)
Analysis of net debt
1 September 31 August
2019
Cashflows		 2020
£ £ £
Cash and cash equivalents 987,769 38,920 1,026,689

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St John’s College Limited Notes to the financial statements For the year ended 31 August 2020

1. Accounting policies

1.1

Company information

St John’s College is a company limited by guarantee incorporated in England and Wales (registered number 2114449). The registered office is College Green, Newport Road, Old St Mellons, Cardiff CF3 5YX.

1.2 Accounting convention

The accounts have been prepared under the Companies Act 2006 and in accordance with the Charities Statement of Recommended Practice (“SORP”) and Financial Reporting Standard 102 (“FRS 102”). The accounts are drawn up on the historical cost basis of accounting, as modified by the revaluation of investment properties and other investments.

The entity is a public benefit entity as defined under FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1.

Going concern

Having reviewed the funding facilities available to the School together with the expected ongoing demand for places and the School’s future projected cash flows, the Trustees have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Accounting and Reporting Responsibilities on page 9.

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

1.3

School fee income

School fee income is recognised in the Statement of Financial Activities in the accounting period to which it relates. School fee income is stated after deducting scholarships, bursaries and other remissions granted by the School. School fee income received in respect of future accounting periods is carried forward as deferred school fees within creditors and is taken to incoming resources in the term when used or else is refunded.

Student accommodation and guardianship income is recognised in the Statement of Financial Activities in the accounting period to which it relates.

1.4

Other incoming resources

Other incoming resources are recognised in the Statement of Financial Activities on the accruals basis.

1.5 Grant income

Grant income is recognised when there is evidence of entitlement, receipt is probably and the amount can be reliably measured. It is recognised in income when the performance related conditions are met.

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St John’s College Limited Notes to the financial statements For the year ended 31 August 2020

1.6 Investment income

Investment income from bank balances, portfolio investments and fixed interest securities is accounted for on an accruals basis. Income from investment properties is accounted for in the period to which the rental income relates.

1.7

Voluntary income

Voluntary incoming resources are accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the School is considered probable.

Voluntary income for the School’s general purposes is accounted for as unrestricted and is credited to the general reserve.

1.8 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 in the Statement of Financial Activities 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 direct costs incurred in preserving the School’s ancient buildings and their contents are shown as a charitable activity distinct from that of education and grant making. Irrecoverable VAT is included with the item of expenditure to which it relates.

Charitable activities represent the costs of providing education at the School and the upkeep and improvement of the facilities.

Staff costs are recognised in the period to which they relate. Termination payments are recognised as an expense immediately when the School is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Support costs are the direct expenses attributable to School activities. They are allocated to the charitable activity, being the provision of education.

Grants awarded are expensed as soon as they become legal or operational commitments.

Governance costs comprise the costs of complying with constitutional and statutory requirements.

1.9 Tangible fixed assets

All fixed asset additions are recorded at cost or deemed cost less depreciation. It is the policy of the School to review all expenditure over £500 and capitalise where necessary and appropriate.

Other expenditure on equipment incurred in the normal day-to-day running of the School and its subsidiaries is charged to the Statement of Financial Activities as incurred.

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St John’s College Limited Notes to the financial statements For the year ended 31 August 2020

1.10 Depreciation

Depreciation is provided to write off the cost of all relevant tangible fixed assets less estimated residual value based on current market prices, in equal annual instalments over their expected useful economic lives as follows:

Freehold buildings 2% per annum Motor vehicles 25% per annum Office furniture and equipment 25% per annum Computers, musical instruments and 33.3% per annum educational equipment

1.11 Investments

Investment properties are properties held primarily to earn capital appreciation or rental income and are valued at their fair value at the balance sheet date. All properties are revalued at least every five years.

Listed investments are valued at market value as at the balance sheet date. Unrealised gains and losses arising on the revaluation of investments are credited or charged to the Statement of Financial Activities and are allocated to the appropriate fund according to the “ownership” of the underlying assets.

1.12 Fund accounting

The charitable trust funds of the School are accounted for as unrestricted or restricted income, or as endowment capital, in accordance with the terms of trust imposed by the donors or any appeal to which they may have responded. Endowment funds are further subdivided into permanent and expendable.

Unrestricted income is expendable at the discretion of the Trustees either to further the School’s objects or to benefit the School itself. Where the Trustees decide to set aside any part of these funds to be used in future for some specific purpose, this is accounted for by transfer to the appropriate designated fund.

Restricted income comprises gifts, legacies and grants where there is no capital retention obligation or power but only a trust law restriction to some specific purpose intended by the donor.

1.13 Leases

Rentals paid under operating leases are charged to the Statement of Financial Activities evenly over the period of the lease.

1.14 Stocks

Stocks are valued at the lower of cost or net realisable value.

19

St John’s College Limited Notes to the financial statements For the year ended 31 August 2020

1.15 Financial instruments

Financial instruments are recognised in the School’s balance sheet when the School becomes party to the contractual provisions of the instrument. Financial assets and liabilities are only offset when there is a legally enforceable right to and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets are impaired where there is objective evidence that the estimated future cash flows have been affected. The impairment loss, being the difference between the carrying amount and the estimated future cash flow, is recognised in the Statement of Financial Activities.

Basic financial liabilities are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

1.16 Pension schemes

The School contributes to the Teachers’ Pension Scheme. This scheme is a multi-employer pension scheme. It is not possible to identify the School’s share of the underlying assets and liabilities of the Teachers’ Pension Scheme on a consistent and reasonable basis and therefore, as required by FRS 102, it accounts for the scheme as if it were a defined contribution scheme. The School’s contributions, which are in accordance with the recommendations of the Government Actuary, are charged in the period in which the salaries to which they relate are payable. The School also contributes to a defined contribution scheme for non-teaching staff. The contributions made by the School to both pension schemes are charged to the Statement of Financial Activities when they fall due.

1.17 Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

20

St John’s College Limited Notes to the financial statements For the year ended 31 August 2020

1.18 Critical accounting judgements and key sources of estimation uncertainty

In the application of the School’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The valuations for the investment properties are subjective in nature and the current valuations have been made by reference to transactions involving similar properties in the area.

2. Charitable activities – fees receivable

School fees
Scholarships, bursaries and other remissions		 2020
£
6,607,669
(598,955)
6,008,714		 2019
£
6,472,892
(583,316)
5,889,576

3. Investment income

Interest received
Rental income
Dividends from investment portfolio		 2020
£
6,035
33,851
53,837
93,723		 2019
£
4,223
24,189
82,381
110,793

4. Donations and legacies

Government grant
Sundry donations		 2020
£
254,892
10,240
265,132		 2019
£
-
5,340
5,340

The government grant related to the Job Retention Scheme which was utilised by the charity in the year.

21

St John’s College Limited Notes to the financial statements For the year ended 31 August 2020

5. Analysis of expenditure

(a) Total expenditure

Charitable expenditure
Education and grant
making
Teaching
Premises costs
Motor expenses
Support costs
Total		 Staff costs
(note 6)
£
5,160,843
-
-
-
5,160,843		 Depreciation
(note 7)
£
122,042
212,091
-
-
334,133		 Other
£
244,296
674,037
92,955
224,353
1,235,641		 Total
2020
£
5,527,181
886,128
92,955
224,353
6,730,617		 Total
2019
£
4,957,505
987,369
133,952
282,781
6,361,607

(b) Governance included in support costs:

2020 2019
£ £
Audit fees 13,500 13,500

22

St John’s College Limited Notes to the financial statements For the year ended 31 August 2020

6. Staff costs

2020
£
The aggregate payroll costs for the year were as follows:
Wages and salaries
3,809,918

Social security costs
369,130
Other pension costs
981,795
5,160,843

Included in the above were termination payments totalling £8,500 (2019: £300).
Aggregate employee-benefits of key management personnel
437,138
2020
Number of higher paid employees in bands of:
£60,001 to £70,000
4
£70,001 to £80,000
1
£80,001 to £90,000
-
£90,001 to £100,000
-
£100,001 to £110,000
1
The number with retirement benefits accruing in defined benefit
schemes was:
5
of which the contributions amounted to
86,686
The average number of the School’s employees during the year was as follows:
2020
Teaching staff
99
Support staff
22
121		 2019
£
3,673,812
350,950
415,395
4,440,157
413,055
2019
4
1
-
1
-
5
56,650
2019
97
23
120		 2019
£
3,673,812
350,950
415,395
4,440,157
413,055
2019
4
1
-
1
-
5
56,650
2019
97
23
120
120

23

St John’s College Limited Notes to the financial statements For the year ended 31 August 2020

7. Tangible fixed assets

Cost or deemed cost
At 1 September 2019
Additions
Transfers
Depreciation
At 1 September 2019
Charge for the year
Net book value
At 31 August 2020

At 31 August 2019		 Freehold
land and
buildings
£
6,615,223
30,619
15,934
6,664,776
1,439,348
135,801
1,575,149
5,086,627
5,175,875		 Asset under
construction
£
15,320
614
(15,934)
-
-
-
-
-
15,320		 Motor
vehicles
£
78,130
-
-
78,130
78,130
-
78,130
-
-		 Office
furniture
and
equipment
£
844,539
19,887
-
864,426
651,818
76,290
728,108
136,318
192,721		 Computers,
musical
instruments and
educational
equipment
£
1,545,598
28,735
-
1,574,334
1,293,293
122,042
1,415,335
158,999
252,305		 Total
£
9,098,810
79,855
-
9,178,666
3,462,589
334,133
3,796,722
5,381,944
5,636,221

All tangible fixed assets are held for use on charitable activities. Freehold land and buildings includes £187,500 (2019: £187,500) of land which is not depreciated. Assets under construction related to works on the school grounds which were completed in October 2019.

24

St John’s College Limited Notes to the financial statements For the year ended 31 August 2020

8. Property investments

Value at 1 September 2019
Additions
Transfer
Value at 31 August 2020		 2020
£
1,565,691
-
-
1,565,691		 2019
£
1,556,918
8,773
-
1,565,691

External valuations were carried out on individual properties by TR Davies LLP in November 2015, May 2016 and May 2019. The valuation for the current year has been made by reference to recent transactions of similar properties in the area.

9. Securities investments

Value at 1 September 2019
Investments disposed of
Income reinvested
Investment managers fees
Fair value (loss)/gain
Value at 31 August 2020		 2020
£
2,530,731
(500,000)
53,837
(19,071)
(107,922)
1,957,575		 2019
£
3,264,379
(759,533)
82,381
(26,851)
(29,645)
2,530,731

Security investments are measured by reference to quoted prices. Their book cost totalled £1,727,130 (2019: £2,234,821).

Investments comprise of:

Fixed interest
Equities
Alternative assets:
Hedge funds
Property funds
Cash
Total		 2020
£
335,934
1,253,923
87,499
169,668
1,847,024
110,551
1,957,575		 2019
£
465,964
1,571,450
107,939
257,077
2,402,430
128,301
2,530,731

25

St John’s College Limited Notes to the financial statements For the year ended 31 August 2020

10.
Stock
Stocks of school requisites
11.
Debtors
Trade debtors
Other debtors and prepayments
12.
Creditors: amounts falling due within one year
Trade creditors
Social security and other taxation
Accruals
Deferred school fees (see note 13)		 2020
£
9,500
2020
£
65,100
53,452
118,552
2020
£
99,563
96,497
56,560
1,344,959
1,597,579		 2019
£
9,500
2019
£
60,855
30,938
91,793
2019
£
132,545
87,663
32,341
1,990,939
2,243,488

26

St John’s College Limited Notes to the financial statements For the year ended 31 August 2020

13. Deferred fees

Deferred fees consisted of fees paid in advance of tuition. The amounts were split as follows:

2020 2019
£ £
Within one year 1,344,959 1,990,939

Amounts due within one year related to fees paid before the 1 September deadline for the forthcoming term.

14. Analysis of net assets between funds

Tangible fixed assets
Property investments
Securities investments
Current assets
Cash and cash equivalents
Creditors due < 1 year		 2020
Unrestricted
£
5,381,944
1,565,691
1,957,575
128,052
1,026,689
(1,597,579)
**8,462,372 **		 2019
Unrestricted
£
5,636,221
1,565,691
2,530,731
101,293
987,769
(2,243,488)
8,578,218

27

St John’s College Limited Notes to the financial statements For the year ended 31 August 2020

15. Unrestricted funds

Restricted funds
Balance at 1 September 2019
Deficit for the year
Realised revaluation surplus
Balance at 31 August 2020		 Revaluation
reserve
£
229,730
-
(7,564)
222,166		 General
reserve
£
8,348,488
(477,385)
7,564
7,878,667		 Total
£
8,578,218
(477,385)
-
8,100,833

16. Restricted funds

Balance at 1 Other Balance at
September Incoming resources 31 August
2019 donations expended 2020
Restricted funds
Choir donations and gifts - 5,000 (5,000) -

The School receives discretionary amounts from the Archdiocese of Cardiff to be used to finance the choir’s running costs.

17. Related party disclosure

During the year, the trustees received no remuneration (2019: £nil). One trustee claimed expenses totalling £589 (2019: £nil) to cover travel costs.

18. Revaluation reserve

Revaluation reserve brought forward
Realised revaluation surplus
Revaluation reserve carried forward		 2020
£
229,730
(7,564)
222,166		 2019
£
237,294
(7,564)
229,730

28

St John’s College Limited Notes to the financial statements For the year ended 31 August 2020

19. Pension schemes

Teachers’ Pension Scheme

The School participates in the Teachers' Pension Scheme (England and Wales) ("the TPS") for its teaching staff. The pension charge for the period includes contributions payable to the TPS of £618,090 (2019: £408,531) and at the year-end £51,060 (2019: £33,193) was accrued in respect of employer contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by the Teachers' Pension Scheme Regulations 2014. Members contribute on a "pay as you go" basis with contributions from members and the employer being credited to the Exchequer. The employer contribution rate is set following scheme valuations undertaken by the Government Actuary’s Department. A valuation report in respect of the TPS was prepared at 31 March 2012 and the valuation report, which was published in June 2014, confirmed an employer contribution rate for the TPS of 16.4% from 1 September 2015. Employers are also required to pay a scheme administration levy of 0.08% from 1 September 2015 giving a total employer contribution rate of 16.48%.

In April 2019, the valuation of the Teachers’ Pension Scheme as at 31 March 2016 was made available. This confirmed that the employer contribution rate increased to a total of 23.68%, consisting of employer scheme contributions of 23.60% and an administration levy of 0.08%. This took effect from 1 September 2019.

Defined contribution schemes for support staff

The School also contributed to a defined contribution scheme for another member of the support staff. Total contributions to the scheme for the year amounted to £71,059 (2019: £54,967). At the year-end contributions of £1,720 were outstanding (2019: £1,459).

29

St John’s College Limited Notes to the financial statements For the year ended 31 August 2020

20. Operating lease

Lessee

At the reporting date the company had contracted with tenants for the following minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2020
£
93,300
171,050
264,350		 2019
£
93,300
264,350
357,650

Costs recognised in respect of operating leases during the year totalled £93,300 (2019: £93,300).

Lessor

The operating leases represent leases of the School’s investment property. The leases run for a term up to three years and rentals are fixed for this period.

Within one year
Between two and five years		 2020
£
14,550
-
14,550		 2019
£
30,500
16,200
46,700

21. Capital commitments

At the balance sheet date, the company had committed to capital expenditure totalling £nil (2019: £nil).

30

St John’s College Limited Notes to the financial statements For the year ended 31 August 2020

22. Provisions for liabilities

Other Provisions
Movement in provisions
At 1 September 2019
Provision recognised during the
year
At 31 August 2020		 2020
£
361,539
361,539
2020
£
-
361,539
361,539		 2019
£
-
-
2019
£
-
-
-

During the year the it came to the Trustees attention that there was a historical administrative error arising from the pension scheme auto enrolment in the 2014-15 year end. After a thorough investigation conducted by the School’s finance team to identify all those affected, it was identified that those impacted may need to be retrospectively enrolled in the scheme and that the School would need to rectify their position. The School is actively working with those individuals and has recognised a provision for the expected amount payable. While there is some uncertainty around the exact timing, the School expects the amount to be settled within the next 1-2 financial reporting periods. Of this total, the School expects to receive a reimbursement totalling £107,321 from the impacted individuals for the employee element although this has not been recognised in these financial statements.

31

St John’s College Limited Notes to the financial statements For the year ended 31 August 2020

23.
Comparative figures by fund type
Year ended 31 August 2019
Income from:
Charitable activities
School fees receivable
Investment income
Donations and legacies
Other income
Total incoming resources
Expenditure on:
Charitable activities
Education and grant-making
Costs of generating funds
Investment management fees
Total expenditure
Net income before investments
Investment gains
Net income
Fund balances brought forward
Fund balances carried forward		 Unrestricted
£
5,889,576
110,793
340
13,733
6,014,442
6,356,607
26,851
6,383,458
(369,016)
(29,645)
(398,661)
8,976,879
8,578,218		 Restricted
£
-
-
5,000
-
5,000
5,000
-
5,000
-
-
-
-
-		 Funds
total
£
5,889,576
110,793
5,340
13,733
6,019,442
6,361,607
26,851
6,388,458
(369,016)
(29,645)
(398,661)
8,976,879
8,578,218

32