Registered number: 02427105 Charity number.. 803153 GADS HILL SCHOOL (A company limited by guarantee) GOVERNORS, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021
GADS HILL SCHOOL IA company limited by guarantee) CONTENTS Page Reference and administrative dets1 of the Company J its Governors and advisers Governors, report Independent auditor's report on the financial statements Statement of financial acttvities 2-12 13-18 17 Balance shèèt 18-19 Statement of cash flows 20 Notes to the financial statements 21-39
GADS HILL SCHOOL IA Company limtted by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 JULY 2021 Governors Mr P Savage, Headmaster Mrs K Hillocks, Chairman Mrs A Eggleton, Vice-Chaim)an Mis5 N Barker Mr O Basi Mrs M Dickens Reverend Canon P Kerr Iresigned 20 September 20211 Mr S Martin Mr J Myatt Mr C Whittington Mr N Smith (appointed 30 November 2020) Company regtstered number 02427105 Charity registered number 803153 Registered office Gads Hill Place GTavesend Road Higham Kent ME3 7PA Independent auditor Crowe U.K. LLP Riverside House 40- 46 High Street Maidstone Kent ME14 1JH Bankers HSBC UK Bank PLC 84 New Road Gravesond Kent DA11 OAS SolicitOTS Stone King LLP Upper BDrough Court Upper Borough Walls Bath BA11RG dgb SDlicilors LLP Captains House Central Avenue Pembroke Chatham hnaritime Kent ME4 4UF Page 1
GADS HILL SCHOOL IA company limited by guarantee) GOVERNORS. REPORT FOR THE YEAR ENDED 31 JULY 2021 The Govemors are pleased to present their annual Governors, report together with the financial statements of the school for the year ending 31 Juty 2021. The Annual report serves the purposes of both 8 Governors, report and 8 directors, report under company law. The GDvernors confimi that the Annual report and financial statements of the charitable company comply wrth the tsut statutory requirements. the requirements of the charrtable companys governing document and the provisions of the Statement of Recommended Practice ISORPI applicable to CharleS pparIng their accourits in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 leffeclNe 1 January 20191. Objectlves and activities a. Policies and objectives Our Mlssion Our mission is lo enable our students to enjoy school, to achieve good academic qualrfications and to develop those personal attributes and qUalitS which will guide them on Iheirjourney through lrfe. Our Vision Our vision Is lo be the fir51 choice independent school for families in Kent who value a well-rounded education for their child. It is our intention that our students leave Gads Hill as confident. mature, articulate. pleasant and seLI- reliant young people who are well equipped to enter the world through a unNersty education or career of their choice_ Our Values We value Excellence, Enthslasrn, Fr+endship and Success. These attributes underpin all that we do. Our Mission and Vision are shaped by our commitment to educate children holistically, as articulated by our school mollo." First lo thine own se5f be true.. Our Ethos Children do well when they 8fB happy at 5choDI and al Gads we pride Duf5elves on providing a friendly environment, where enthusiasm and hard work are the foundations for achieving success. There is more to life Ih?n exam results alone and while Gads enjoys the reputation of receiving good GCSE results this is not our sole focus. We want to offer our pupils a foun(Jation in life, working with them to become confident, molivaled and articulate young people ready for the next stage in their education and lrfe beyond In setting objectTves and planning for actNrf(ies, the Govemor5 have given due consideration to general guidance published by the Charity Commission relating lo public benefit. including the guidance 'Public benefrt.. running charity IPB21'. Structure. Governance and Management CONSTITUTION The company is registered as a eharilable company limited by guarantee and wa5 set up by a Trust dèed. Th& company is wnstituted under 8 Trust deed and is a registered charity with number 803153. The charitable obje¢ts of the School as Set out in the Articles of Association {8s amended by Special Resolution dated 28 January 20091 are lo advance education and training (including physical Irainingl for the public beneff( by provision of a school or schools in the county of Kent. in particular the school known as Gads Hill School, Higham, Kent. CODE OF GOVERNANCE The Board has cenIty established a Govemance and Nominatk)ns Committee I'G&NC'I and this group has led Page 2
GADS HILL SCHOOL IA company limited by guarantee) GOVERNORS. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 Objectives and activities Icontinuedl the Board in undertaking the Association of Goveming Bodies of Independent Schools l°AGBIS'I self review exercise which incorporates. and expands upon, the Charity Commission's Governance Colfe and Self- Assessment Checklist. Basecl on these re5utts the 8oarcl, through G&NC, is driving fowdrd a review and ration81isalion Df Ils committee structure, reporting lines and so on so as lo ensure the charity operates as effectThiety and efficienlty as po$sible, and in accordance wf(h Ihird-sector best practice. METHOD OF APPOINTMENT OR ELECTION OF GOVERNORS The manaoemènl of the company is the responsibility gf the Governors who are el&cled and eo-DPted under the tems of the Trust deed. Undèr the Articles, the He8dm8sler 1$ a govemor. TWD goveTnors are appointed by The Dickens Fellowship lone of whom is a member of the Dickens family) and one by election 35 a chair or representatNe of The Friends of Gads Hill School la separate registered charity) representing par&nts of pupils al the school. The remaining governots are elected al a general meèting and one-third of the elecled governoTS, determined by length of servi, retires by rotstion each year, and may 5tanol for re*leclion. Nomination5 for new governors are proposed on the basis of adding specialist skills to the goveming body eg legal, financial, educational, medical, estates expertise and so on. This nominations proces5 is led by the G&NC. POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF GOVERNORS New governor5 are formally inducted into their roles through a serias of briefings by the Chair, Headmaster Snd Clerk to the Governing Body, alDng with other members of the school's senior leadership team I'SLfi as appropriate. Governors are encouraged lo visit the school regularly and afe given an insight into previous meetings of the BDard via minutes and the a¢¢ompanying raports. The governors are offered furthèr trydining through AGBIS and are infomed of seminars hekj throughout the period that are thought lo be beneficial to their governanee. ORGANISATIONAL STRUCTURE AND DECISION MAKING The governors. as trustees of the Charity and dire¢tors of the Company, a legal responsible for the overall management and ¢ontrol of the s¢hoo5. They meet a minimum of four times per year, normally oncè per academic lemi and once al the commencement of the new school year. There are various sub-committees which meet 8$ required lo deal with parhcular 8reas of the school. The governors detemine the general policy of the school. The day to day management of the sch¢)ol 15 delegated lo the Headmaster. KEY MANAGEMENT PERSONNEL AND REMUNERATION Key management pÈrsr)nnel are those persons having authority and responsibility for planning, directing and controlling the activities of the enlty, direclw or indirectly, Including all govemors of the chanty. RemL4ner8tlDn details are disclosed in these financial statements. Aside trom Governors. the other key management personnel are." Mr Paul Savage. Headmaster Dr Stephanie Burke, Director of Studies IAr Jack Tyler. Head of Seniors Miss Sam Long, Head of Juniors Mr5 Ificky Grant, Head Df Kindergarten Mr Barry Golding, Bursar, Clerk lo the Goveming Body 8nd Company Secretary The Board of Governors is responsible fcsr appioving the remuneration levels of all employees. The unremuneratect governor5 approve the Headmaslerfs remuneration, the Headmaster being the only governor who receive5 remuneration for his role overseeing the day4c)4ay running of the school. The Govemors, Stsff Salary Review Board I"SSRB'I sets the salaries inrjividually for the Headmaster and Bursar. The other key managgmenl personnel are each paid on one of SLT incrementsl pay s¢ales sel by the SSRB. Page 3
GADS HILL SCHOOL IA company limited by guarantee) GOVERNORS. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 Objectives and activities Iconlinued RISK MANAGEMENT The governor5 have assessec* the major risks to whi¢h the company is exposed, in particular those related to the operation5 and finances of the company. and are satisfied that systems and procedures are in place lo miligale our exposure lo the major risks. OTHER RELATIONSHIPS The Headmaster Is a member of the Independènt Schools Association I'ISA'I, and the School is a member of the Independent Schools. Bursars Association I'ISBA'I and AGBIS. In addition to providing crucial support lo the sch(iol and rts various leaders, these organisalions represent the independent education sector at a national level in contact with the Govèrnment and others. A number of our teachers are members of the Chartered College Df Teaching I'ccri. On completion of her three year leim of office as a Council Member of the CCT, Dr Burke was asked to stay on 85 Chair of their EdLJcalion Research and Journal Committee. During the year She gained Chartered Teacher (Leaderl status, was an Associate Lecturer wrf(h Coventry Uner5[ty and a Visiting Tutor for trainee teachers with EQualitas. Achievements and perfomiance a. 2020121: The Year in RevÈew Our objectives for 2020121 were.. To ensure the continued viability of Gads Hill School in the face of the global Covid-19 pandemic, ensuring safèty for the whole school c0mnItY and highUaIty education and outcomes for our pupils acros5 the school., Prevent any negative impact ot Covid-19 on attainment al Key Stage 4., Extend the work already done on 'One Curriculum. to see it develop as a diverse and 9lobal, 215t ntury curriculum for 811., Review the Inclusion Department $0 as lo ensure rts readiness to support the above objective as r( is iolled out frorn Autumn 2022., To recover our financial reserves to at least the Governors, usual policy of a minimum of £50D,000 in available cash.. To move to a model of 5-year high4evel Strateg planning." Estsblish a long-tem) plan for resources. estates and infraslructure. b. Achieving the Objectives set for 2020121 We en$ud the continued vi8bility of Gads Hill School in the face ofthe global Covid-19 pandemic, ensuring safety for the whole school communty and high-quality education and outcornes for all pupils across the school by implementing the comprehensive milHJalion measures contained within 8 regularly updated school Risk Assessment. This included staff training for the creation and delivery of an on-site testing laboratory on pupils, return to the schDoI after holidays in the autumn and spring terms, in acldition to an adapted school d8y and curriculum to ¢? viral spread. When the school site was closed to the majorTty of pupils from January until March 2021, we delwered an outstanding online learning programme, resourced through Microsoft Teams, Zoom and our own web511e Iprogress assessment on pupils, relum in the summer indicated onty marginal impact on w15eclive academic attainmenll, while also continuing lo accomrnodale in school and pVide for large18nd growing) numbers of pupils consideied to bp vulnerable or the children of critic31 workers. We prevented any negative impact of Covid-19 on attainment at Key Stage 4 by ensuring a full and robust cuirrulum offering during periods of Distance Learning and delivering staff training on the concept of a covery curriculum. using guidance from Professor Barry Carpenter and the Chartered College of Teaching, as well a5 the use of retriev81 pt8cli¢e in the classroom and principles of differentiation for Page 4
GADS HILL SCHOOL IA company limited by guarantee) GOVERNORS. REPORT ICONTINUED} FOR THE YEAR ENDED 31 JULY 2021 Achievements and performance {continuedl children as different places in their learning. During the Autumn term teachers carefully monrtored and assessed pupil8, following a period of Distan Learning or part-lime school attendance. and produced plans for interventions as needed. The Data Wort(ing Group continued lo meet lernily lo review whole -school 8ttainmenl data and to report to Governors. Our regular piogr8mme of assessment and r&porting recommenced, though was then disrupted by further school closures. with our parents evenings moving 51Jcce5sfully online. We worked hard lo work with exam boards following the late provision of approved assessment materials and implemented all exam board guidance and regulations to ensure slLJdents received fair and accurate centre assessed grades. Our Key Stage Four and Key Stage Five information evenings were held virtually to ensure that students still received a¢¢ess to our independent qualified careers advisor. We extended the work already done on 'One C1CulUrn' lo see il develop as 8 dNerse and global, 21st century curriculum by all by continuing the use of Knowledge Organi5er5 throughout the school and the production of Topic Overviews for each subject for each half term. This enabled a collation of our whole school curriculum for the first lime, after which we were able lo review our curriculum in order lo." Ensure we are making the most of being a through school, reviewing whether our subjects prOg$S through the s¢hool in a logical and delibgrate manner; Review out curriculum for'inlelligent interdis¢iplinarity,' and Review our curriculum for the diversrty we want rt to del(ver. We reviewed the Inclusion Department SD as lo ensure ils re2cliness lo support the above objective as it is rolled out from Autumn 2022 by redefining the entire team from scratch as a Iruty cros8-school department with responsibility for the full inclusion of all our pupils from ages 3 to 16. The department is led by the Inclusion Leader, a member of SLT, and In addition to Inclusion Assistants the team is complemented by our full-time School 14ur5e, Mr5 Louise Fuiby RGN RM. We recovered our financial reserves to al least the Governors, usual policy of a minimum of £500,000 in available cash by.. working sympathelicalty but proactively wrf(h d2btors lo agree affordable, reasonable payment plans to maximise cash inflow,. 8ncl controlling more closely than &ver expencliture and caprtal projects to reduce cash spend. Pleasingly, cash al 31 July 2021 was up 580/0 to £656.01012020' £415,429). We moved to 2 model of 5-year high4evel strategic planning by undertaking an SL T strategic planning day durin9 th& Easter 2021 break which resuf(ed in the production of a 51rategic plan for the school-"Towards 2027" (available on the school websilel- which was adopted by the Board in summer 2021. The plan comprises four strands". Govern8nce and Staffing" Curriculum and Pupils.. Facilities and Prem5ses", and Community and Social Action. We established a long-term plan for resources, eststes and infrastructure by appointing 8 local fim of archilecls (Clay Architecture Lldl lo work with us on revisiting the currently consented scheme for renewed accommodation for our senior school, potenlialty with a view to arriving al a much more phased, 8ffoidatyle and deliverable scheme with greater and more appropriate use by the communty, wider public, local schools and so on of our primary heritage asset- Gads Hill Place. Page 5
GADS HILL SCHOOL (A company limited by guarantee) GOVERNORS. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 Achievèments and performance Icontinuedl c. Othèr Activities and A¢hièvernÈnts in 2020121 and Useful Information COVID-19 All mitigation measures and onlin8 leaming were delivered by thg h0o1 without aesS lo any of the DfE's lunding, additional staffing or technology-for-schools programmes which were part of the Government's Covid-19 response. PUPIL NUMBERS, CLASS SIZES AND FEES Average pupil numbers and class sEe5 for the yeaT are set OLrt below 8long with the fees charged. Average pupils 20 18 17 20 75 80 24 25 Average class size 19 17 17 19 18 16 li 12 5tsndard temily fee £3,239.00 £3,239.00 £3,811.00 £3,811.00 Stsndard Section Year Group annualfee £9,717.00 £9,717.00 Ell,433.00 £11,433.00 Kindergarten KN INurseryl KR (Reception) KI Iyear 11 K2 (Year 21 Overall INursery to Year 21 Ovemll (Nursery to Year2 in 2019/20J J3 Iyear 31 J4 Iyear 41 Juniors £4,040.00 £4,040.00 £12,120.00 £12,120.00 kii" J5 (Year 51 Remove Iyear 61 Overall (yea 3 to 61 Overoll (yett 3 to 6in 2019/20) Shell (Year71 Lower4th (Year 81 Upper 4th (Year 91 Lower 5th (Year lol Upper 5th (Year 111 Overall Iyears 7 to 111 Overull (Yeors 7 to 11 in 2019/20) 32 28 109 ioi 27 37 30 22 31 147 138 16 14 13 £4,040.00 £12,120.00 £4.040. £12.120.00 Seniors 13 19 15 22 16 16 15 £4.324.00 £4,324.00 £4.566.00 £4,566.00 £4,566.00 £12,972.00 £12,972.00 £13,698.00 £13,698.00 £13,698.00 Whole School- Overall Whole School- Over¢ill (2019/20J 331 319 16 15 Pupil numbers remained pleasingly on target with 3.76DA growth in IDtal pupil numbers over the year before. Fee levels were on average 3.99°Ip higher than those charged in the preceding year. In sn effort lo support families further through the Coronavirus pandemic, 2020121 fees were held al 2019r20 levels and hènce we are now even more competitively priced against other independent senior schools in the area than before. EXPANSION OF OUR SENIOR SCHOOL In 2020121, based on incre8sing demand and scholarship uptske. we expanded our Senior School to three form entry (from two) so as to accommodate increased demand for places at Gads Hill School. Page 6
GADS HILL SCHOOL IA company limited by guarantee) GOVERNORS. REPORT ICONTINUEDJ FOR THE YEAR ENDED 31 JULY 2021 Achièvements and performance Icontinuedl ACADEMIC PERFORMANCE Significznl achievernenls include.. 1 OOPA of pupils gained a grade 94 in English Language- 97. of pupils gained a grade 94 in Mathematics", 81 of pupils gained a grade 94 in Science (Double Award) and we entered two students for the first time for triple science, achieving 100'/tr grades 9-5 More students achieved a grade 4 or above in all subjects. with the exception of history at 3.2% lower, than nationally. More students achieved a grade 5 or above in all subjects except English literature, history and PE. than nationally. This year all students were awarded a grade for English Literature compared lo previous years when not all students have been entered for this subject. AII BTEC music students passed their qLtalificalion. Combined Cadet For I'CCF'I pupils gained diplomas from The Instf(ute of Leadership and Management, a BTEC in Teamwork and Personal Deve5opment. Duke of Edinburgh Awarcts and First Aid qua1ificatK)ns. ole Gads pupils than ever before complete drama qualifications with the London Academy of Music and DrarnaliG Art I'LAMDA'I on their solo and small group pathways with LAMDA now offed lo years 5-11. Other qualifications achieved include- Emergency First aid at Work-. 31 students Bronze Duke of Edinburgh award". 10 students Silver Duke of Edinburgh award.. S students L4MDA.. Grade 8 Gold.. 1 sludant Grade 5-. 3 students Grade 3.. 5 studènts Musie grades.. Grade 4 Drumming.. 1 student A nèw programme for More Able, Gifted and Talented I'MAfi students in Shell and L4 Vears 7 and 8) was developed and delTvered. This offered evidence-based best practice for stretching and challenging our increasingly academic intèke. A new policy for identifying MAT studen15 was developed in consullalion with Dur Inclusion lead and the new programme was well received by pupils and parents. WHOLESCHOOL CURRICULUM REVIEW Our first review of our whole-school curriculum taok place during our Summer Inset day when staff met in subject-groups across the wholè-school for the first time lo review discuss progression of their subject throughout a child's journey through Gads. Staff were assigned to subject groups and completed a variety of tasks incliviLfually and in small groups that focused on overall vision for their subject (this Structure also madtt sure our Inset day was Covid safe by avoiding large groupings). In subject groups, staff got to meet together for the first time from across the school lo focus on subjecl-specific discussion. These subject groups prodUd first draft of a 'subject vision documenf lor each subject laught across the school which they then revisited uring a Monday CPD se55ion this leryn. These documents OLrtline for parents and students the main purpose of the subject, key principle5 2nLI values, the main 'big ideas, or key concepts students will encounter in the subject. and a brief summary of the knowledge, understanding and disposition expected lo be evident as pupils learn the subject. This activity encouraged teachers lo really think deeply about what wa5 Irnportanl about their subject and presents il in a way which is clear lo pupils and parents. Subject groups also worked this lenr on proLtucing 3n overview of all topics laught throughout the school to review the sequèncing of conlenl across our one curriculum. A further Prograrnme ol curriculum review was planned land took pla) in the 2021-2022 academic year. As part of oui ongoing curric(Jlum review we explored options to expand the offering al Kgy Stage 4, particularly Page 7
GADS HILL SCHOOL IA company limited by guarantee) GOVERNORS, REPORT (CONTINUED} FOR THE YEAR ENDED 31 JULY 2021 Achievements and perfonnancè (continued) in recognition of the increase Df a¢ademic ability of our senior 5chwl intske. largely 85 a result of the Charle$ Dickens. scholarships. After rigorous discussion among51 leadership, the decision wa5 made to offer an additional Psychology GCSE outside of the option blocks in our first expeiiment Into a blended learning approach to GCSE. An extem31 company was erllployed to f&cilit¥te the delivery of the GCSE, alongside in-person week leaching from one of otjr own teaching stsff, for the first cohort lo commence in the 2021-22 academi¢ year. Our humanities curriculum al Key Stages 1-2 w85 reviewed and slrenglh&ned. Students in J3-Remove received thiee 'humanrf(ies' lessons a week which cycle through termly projects which we found were heavily hi$lory- based. We found that this led to students thinking that they 'don'l do. history, geography or RE despite having the opportunity to be taught in some years by our specialist history te8¢her. Wg planned that from September 2021 we would movg lo morÉ distinct lessons, providing one cle8r geography, history and RE lesson per week for J3- Remove. Each subject will progress through its own curriculum and we hope that u5ifjg the language 'history. geography and RE, will help students lo have a greater appreciation for the drfferenl disciplines and prepare them better for Iransrtion into seniors. Kindergarten will continue with the lemi 'lopic' but wrth a greater focus on using the language 'scienc8. hi$lory, geography. RE, so students are able to better artlGulate their learning. A workin9 group was led by a member of staff during the sumrner term to prepare for the tiansition from humanities lo distinct geography, history and RE lessons in the Junior school from September. The development of the new curriculum was evidence-based and used the April 2021 DfE and Otsled subject reports and Tecommendalions. CURRICULUM EXPANSION AND DEVELOPMENT We expanded resources for our popul¥r Food and Nutrition GCSE course with the development of plans for a new, larger teaching kitchen plan, enabling more students to opt for thi3 5LJbje¢t and resulting in us being able to continue to deliver our track record of grrfing all students their first choice of GCSE options. Our flTSt two entries for trfple science, and the restructure of the Scien curriculum to prepare all students for triple science entries. with both candidates achi9ving grades 9-5 in each of the three sciences. REVIEW OF KINDERGARTEN AND JUNIOR SCHOOL REPORTING SYSTEMS This review resulted in Improvements made to ensure clearer communication lo parents. more effieienl data entry for teachers, and more useful progress csata lo inform leaching and interventions_ INITIAL TEACHER TRAINING I"ITh"I We successfully Iiained two teachers who joined the profession by achieving Qualified Teacher Status I"QTS'I. One qualified lo teach primary school chiklren aged 7 10 11,. the other qualfied lo teach secondary Geography. CONTINUING PROFESSIONAL DEVELOPMENT I'CPD'I FOR STAFF The Director of Studies. Dr Burke. led an evidence-based, robust review of CPD provision aeross the school as il was in Summer term 2021. leading lo a complete restructure of CPO and a new fo¢us and investment in professional leaming for teachers for 2021122. Prtsfessional dEveloprnent for teachers is proven lo improve student outcome5 and retention and is therefore something which it is worthwhile investing in. While the estIng approach lo CPD provided some good opportunrties for pedagogical and subject-specific leaming. we needed lo move towards a programme of learning for teachers that is focused, progressive rathei than 8d-hoc, iterative. implemented in pra¢lice, and rewewed. The review was based upon the Teacher Development Trust review model and fesulled in a report of recommendations for changes and inv2slmenl in a new approach to piofessional leaming for teachers at Gads Hill School lo be implemented during 2021122. CHARLES DICKENS ACADEMIC SCHOLARSHIPS Autumn Term 2020 saw the fourth wave of Chartes Dickens I'CD") academic scholars cornmence in the senior school, with a furthei 11 of the most ablè children in the arèa receiving this fom of fee assistance. Of particular note, one pupil joinecf us this year from a local maintained primary school, having achieved a 1000h CD Scholarship. and another candidate already al Gaty's Hill School w8s awarcfed the same level of Fee As51stan. Page 8
GADS HILL SCHOOL IA company limited by guarantee) GOVERNORS, REPORT ICONTtNUEDI FOR THE YEAR ENDED 31 JULY 2021 Achievements and perfomiance (Gontinuedl bringing lo three the number of Charles Dickens Scholars receiving 1000/0 Fee Assistance. OTHER FORMS OF FEE ASSISTANCE Signrficant increases in both the proportion of gross fee income used lo provide fee assislanee, and the proportion of families benefrting from some of fee assisl8nce are Set out elsewhere in this report. Governors keep under review our policies for all forms of fee assistance to ensLJrÈ that as many surtable pupils as possible can benefit from the education offered al Gads Hill School ?ven rftheir family financial circumstances would otheiSe preclude this. PUBLIC BENEFIT The school educated an average of 183 prirnary- and 147 secondary-age pupils during 2020121 at no c05t lo the public purse lexcepting, of course, the exceptional emergency Governrnent funding tu protect jobs during the Covid-19 pandemic). The absolute minimum fi would have CD5t public funds to educate these pupils at the Governmenys rninimum per pupil fLJnding levels[11 would be £1.421M12020.. £1.296MI. The real savings to the public purse. however. 8re considerably greater when the value of capital grants, VAT reclaims and so on are taken in lo account. All our staff live in Kent, Medway or one of the adjoining London Boroughs and hence our support to the local economy as the ernployer of nettr 100 people is significant. Support of our local economy has been increased further by choosing local suppliers for food produce wherever possible, taking more trips lo local sties and attfa¢lions, and $0 on. Desprte planned events duTinu 2020121 being curtailed severely by the Coronavirus pandemic. our CCF Contingent look their usual place at thè Remembrance Day events in Higham, alon9 with a number of other events A5 ever, children across the s¢hool faised money through House events for their chosen charities. The school also opened rt5 facilities to a number Df local schDols and organisations using facil((ies such as our climbing wall and shooting range. Financial review a. Going Concem After making appropriate enquiries. the trustees have a reasonable expectation that the company has adequate sources to continue in operational existence for the foreseeable future. Fur this reason they continue lo adopt the going concern basis in preparing the financial slalemenls. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies. Page 9
GADS HILL SCHOOL IA company limitsd by guarantee) GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 b. Reserv25 policy RESERVES AND FINANCIAL HEALTH The governors review reguSaily the finances of the school and plan for ft*lure years. In common with other indepèndent schools, governors have invested substantial sums into new and irnproved buildings and facilities in recent years and have a continuing programme of refurbishment. development and investment to maintain excellent leaching facilities for our pupils. AtthoLJgh as shown On the balance Sheet the school's free reserves lunreslricled reserves less fixed assets) are at a negative ba13nce of £2,815,658, this illustrates the extent of the investment in our school, which is common practicè for schools in the sector which have to finance their own capital investment pjans. The governors consider that, given the strength of the charivs balance sheet, the stable cash flow from heatthy sludènl rolls (including the managed impact of the current Covid-19 pandemic). the ongoing popularity of our school. and our strong relationship with bankers. there is no Current need lo build up a free reserve. As was fulty expected when Governors took actions oulllned elsewhere to deal with the Covid-19 panclemlc. the school's cash balances were depleted, and much lower than originally planned, at 31 July 2020 but, again as planned, rebounderl strongly in the year lo 31 Juty 2021. c. Prlncipal risk5 and uncertainties The Board of Governors is responsible for the management of ri5k5 faced by the school. Each year the SLT and Board identify and assess risks and implement contro15 to mitigate against these. Key controls implemented by the school include.. Formal agènda and papets for 811 Board and committee actwities Strategic planning, budgeting and management accounting Structured financi81 and other forecasting le9 pupil numbers) for future years Established organisational structure and uncleFStood lines of reporting Formal wrttten policies d. Principal funding The principal funding of the school is from school fees. APPROACH TO FUNDRAISING Fundraising income remains low, however the school does not specifically target SourceS for this source of funding. This year the school received donations amounting lo £nil12020.. £30,680). ND fundraising complaints 12020.. £nill were reiVed during the year. Structure. governance and management a. Constitution Gads Hill School is gIstered as a charitable company limited by guarantee and was set up by a Trust deed. b. Method5 of appointment or election of Governors The management Of the Company is the r&sponsibilily of the Governors whLJ are elected and co-opted under the lemis of the Trust deed. Page 10
GADS HILL SCHOOL IA company limited by guaranteel GOVERNORS. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 Structure, governance and management (continuèd) c. Financial risk management The GoveTnors have assessed the major risks to which the Company is exposed, in particular those related to the operations and finance5 of the Company. and are satisfied that systems and procedures are in place lo mitigate exposure to the major ri5k$. Plans for future periods OBJECTIVES FOR 2021122 The Board ha5 set the following objectives for 2021122- Governance and Staffing.. o Develop sector-leading Professlonal Learning PTogr8mme for leaching staff. inclLtding Eatty Career Teachers o Develop CPD prouramme for non-teaching staff Re-instate Leaming Review prograrnme o Establish 5-year department development plans Establish 5-year Irajeclory towards reduced Inclusion income o Rèview remuneration and reward for m051 excellent teachers o Establish effeclwe estsle management Structure and processe8 Curnculum and Pupil5". Review admissions politty with enhanced focus on pupil suitabilty and expectations o Conduct first full review ol One Curriculum o Develop crrtical oversight structure for lal pupil achievement and Ibl pupil personal clevelopmen( inciuding responsibility frjr evidencing 2nd celebrating success Facilities and Premises.. Audit technology assets and establish investment plan o Fin31ise updated design brief lor senior school accommodation o Develop interirn estates irnprovement plan Cornmunity 2nd Social Action.. o Create environmental 5Lislainability plan o Further links with local suppliers and businesses lo explore atternative employment routes fr)r pupils leaving the school Prepare effectively for an anlicipaled Regulatory Compliance Inspèction at some point in 2021122 Restructure the school-s middle leadership so as lo rneel current and anticipated need Review Admissions procedure5 better lo define suitability criteria for prospective pupils of all ages, ensuring their needs can be mel and gathering valuable attainment data to aid successful transition on cornmencemenl the school Build on the whole-school curriculum review catried out this year by conductin9 and documenting ourfiTSt review Df'one Curriculum. Undertake and document a review of the school's approach lo Equality, Diversity and Inclusion I'EDI'I ading to an action plan to improve further this important dynamic wrthin Dur communty Further expand our GCSE offering by introducing GCSE Psychology Page 11
GADS HILL SCHOOL IA company limited by guarantee) GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 Statemènt of Governors. responsibilities The Govemor5 (who are also the d4CtorS ofthe Company for the purposes of company lawl are responsible for preparing the Governors, report and the financial statements in accoidancè with applicable law and Untted Kingdom Accounting Stsndards Iuniled Kingdom Generally Accepted Accounting Prdclicel. Company law requires the Governors to prepare financial statements for each finanGial year. Under company law, the Governors musl not approve the financial statements unless they are satisfied Ihet they gNe a true and fair view of the stale of affairs of the Company and of its incoming resources and application of resources, includin9 Its income and expenditure, for that period. In preparing these financial staiements, the Governors are required to.. select suitable accounting policies and then apply them consislenlly., Observe the rnelhods and principles of the Chafilies SORP IFRS 1021., make judgments and accounting estimates that arÈ reasonable and prudent.. slate whether applicable UK Accounting Standards IFRS 1021 have been followed. subject lo any material departures disc105ed and explained in the finan¢ial ststements., prepaie the financial statements on the going concern basis unless it is in8ppropriate lo presume that the Comp8ny will continuè in business. The GovernDrs are responsible for keeping 8dequate accounlino records that are sufficient to show and explain the Company's transactions and disGlose with reasonable accuracy al any lime the financial position of the Company and enable them to ensuie thst the financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention 8nd detection of fraud and other irregularities. Disclosuro of inforrnation to auditor Eaeh of the persons who are Governors at the lime when this Govemors, ptsrt is approved has confiTmed that-. so far as that Governor is awafe, there is no revant audit inforynalion of which the chartys auditor is unaware, and that Governor has taken all the steps that ought to have been taken as a Governor in order to be aware of any retevant 8udil information and to establish that the chaTity's audi(or 15 aware of that inforniation. Auditor The auditor. Crowe U.K. LLP, has indicated his willingness to continue in office. The designated GovernDrs will propose a motion reapptsinting the audftor at a rneeting of the Governo. Approved by order of the members of the board of Govemors and signed on their behalf by.. Mrs K Hillo¢ks Ichair of Trustees) D8te'. 6. -f,1022 Page 12
GADS HILL SCHOOL A company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GADS HILL SCHOOL Opinion We have audited the financial slalemenls of Gads Hill School {the'¢harilable company'l for the year ended 31 July 2021 which comprise the Slaternent Df financial aclNilies. the Balance sheet, the Statement Df cash flows and thp related note5, including 8 summary of significant accounting policies. The financial reporting framework that has been applied in their preparalitsn is applicable law and Unrted Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial RepDrting Standard applicable in the UK and Republic of Ireland. (United Kingdom Generalty Accepted Accounting Practicel. In our opinion the financial slatemenls-. give a true and fair view of the slate of the charrtable Gomp8ny's affairs as at 31 JU 2021 and of its incorning resources and application of resou$, including its income and expenditure for the year then ended., have been properfy prepored in ardance with United Kingdom Generdlly Accepted Accounting Practice-, and have beèn prepared in accordar} wsth the requirements of the Companies Act 2006. Basis for opinion We conduded our audit in 3ccordance with International Standards on Auditing IUKI IISAS (UKII and applicable law. Our responsibilities under those slandarcls are further described in the Aud(roffs responsibilities fDr the audit of the fin8ncial slalemenls section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant lo our audlc of the financial statements in the Un1ted Kingdom. including the Financial Reporting Council's Ethical Standard, snd we have fulfilled our other ethical responsibilrties in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to goin9 concern In auditing the financial statements, we have concluded that the Govemors. use of the going con¢em basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not idenlrfied any materi81 uncertainties relating to events or condrtions that, indiviclualty or collectively, may cast significant doubt on thè charitable company's abilty to continue as a going GOnM for a period of al least e1ve months from when the financial statements are aulh0ri5ed for issue. Our responsibilities and the respDnsibililies of the Govemors with respect to going concern are described in the relevant sections of this report. Page 13
GADS HILL SCHOOL IA company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE 14fEMBERS OF GADS HILL SCHOOL ICONTINUEDI Other information The Dther information comprise5 the information included in the Annual report other than the financial Statements and our Audilorfs report Ihereon. The Governors are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other infomiation and, except lo the extent othenMise explicitly slated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is lo read the other inform8tion and, in aoing so, consicler whether the other informatlon is materially incon5iStent wrf(h the financial 5ts1ements or our knowledg obtsined in the course of the audit. or olhenNise appears lo be materially misstated. If we identify such material inconslstencies or apparent material misslalemenls, we are required lo determine whether this gNes risè to a material misststement in the financial statements themselves. If, based on the Work we have perfomied. we conclude that there is a material misstatement of this Dther information, we a required to report that fact. We have nothing lo report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undert8ken in the Course of the aud((.' the inform81ion given in the Govemors, Report for the financial year for which the financial slalernents are prepared is consistent with the financial statements. the Govèrnors. Report has been prepared in accordance with applicable legal requirements. Matters on which we are rèquired to report by excèption In the light of our 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 Govemors. Report. We have nothing to report in resped of the following matters in relation ID which Companies Act 2006 requires us to report to you if. in our opinion.. adequate accounting records have not been kept, or retums adequate for our audit have not been eived from branches not visited by us., or the financial stalemènls are not in agreement with the accounting records and return5,' or certain disclosures of Governors. remuneration 5pecifiecl by Saw are not made." or we have not received all the information and explanations we require for our audit. Responsibilities of trustee5 As explaineLI more fully the Governors, responsibilities statement, the Governors (who are also the directors of the charitable company for the purposes of company lawl are responsible foT the PTeparatiDn of the financial slalements and for being satisfied that they give a truè and fail view. and for such internal control as the Governor5 determine 15 nece55ary lo enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial stslements. the Governors are responsible for assessing the charitable company's ability lo continue as a going concem, disc105ing, as applicable, matters related lo going concem and using the going concern basis of accounting unless the Governors erther intend lo liquidate the charitable company or lo cease operations. or have no realisbc alternative bLrt to do so. Page 14
GADS HILL SCHOOL (A company limited by guarantee} INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GADS HILL SCHOOL ICONTINUEDI Audltor's responsibilities for the audit of the financial statements Our objective5 are lo obtain reasonable assuran about whether the fin3ncial statements as a whole are freo from rn8terial mis5tatemenl, whether due lo fraud or error, and to issue an Auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance. but is not a gijarantee that an audit conducted in accordance with ISAS IUKI will ahayS delect a material misststemenl when it exists. Misstatements ¢3n arise from fraud or error and are considered material if, individually or in the ag9regale, they could Teasonably be expected lo influence the economic decisions of users taken gn the basis of these financial statements. Irregularities. inclucling fraud, are inStsn$ of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlinerl above, lo detect msterial misstatements in respect ol irregularities, ncluding fraud. The extent lo which OUT procedures are capable Df delecling irregularities, includsng fraud is detailed below.. We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusin9 on those laws and regulations that have a direct effed on the determination of material amounts and clisclosures ln the financrdl statements. The laws and regulations we considered in this Context were the Companies Act 2006 and Charities Act 2011. We identified the greatest risk of material impact on the financial statements from irregularrties, including fraud, to be the override of controls by rnanagement. Our audit procedure5 to respond to these risks included.. enquiries of management about their own idenlific2lion and assessrnenl of the risks of irregularrties,. reviewing board minutes and making enquiries of management regarding any non<omplian¢e wfth laws and regulations and fraud., reviewing the revenue, supplier payments and payroll systems for signifant deficiencies or susceptibility to fraud", challenging assumptions and judgements made by management in their significant accounting eslimales and judgements.. and reviewing journal entries, in particular any journal entries p051ed with unusual account combinations. Owing to the inherènt limitations of an audit, there is an unavoidable risk that we may not have detected some material misstalemenls in the financial slatemenls, even though we have prDperly planned and performed our audi( in 8ccordance with auditing 5tsndards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. These inherent limitatlDns are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failur& lo record lonsactions. couusion or the provision of intentional mIsPresen&t1on$. A further description of our responsibilities lor the audit of the f nancial statements is located on the Financial Reporting Council's website at.. www.frc.or .uklaL+ditorsres onsibililies. This description fofms part of our Audrtor's report. Use of our report This port is made solely lo the charitable companls members. as a body. in aecordance with Chapter 3 of Part 16 of the Compsniès Act 2006. Our audit work has been undertaken SD that we might state to the charitable ompany's members those matters we are required to state to them in an Audilorfs report and for no other purpose. To the fullest extent pem)itted by law, we rso not accept or assume responsibilty to anyone other than the charitable company and its members, as 8 body, for our audit work, for this report, or for the opinions wo have formed. Page 15
GADS HILL SCHOOL IA company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GADS HILL SCHOOL ICONTINUEDI lan Weekes (Senior statutory auditor) for and on behalf of Crowe U.K. LLP Slalulory Auditor R Thierside House 40 - 46 High Street Maidstone Kent ME14 1JH Date= 8 July 2022 Page 16
GADS HILL SCHOOL IA company limited by guarantsel STATEMENT OF FINANCIALACTIWTIES IINCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 JULY 2021 Unrestricted funds 2021 Total funds 2021 Total funds 2020 Note Income from: Donations and legacies Charitable activrties Investments 144,115 3,755.028 506 144.115 3,755.028 506 196, 784 3,349.818 1.567 Total Tncome 3,899,649 3,899,649 3.548,169 Expenditure on- Provision of education 3,672.037 3.672,037 3,478,472 Total expenditure 3,672.037 3.672,037 3.478.472 Net movement in fund5 227,612 227.612 69.697 Reconciliation of funds: Total funds brought forward Net movement in funds 3,235,079 227,612 3,235,079 227,612 3, 765,382 69.697 Totsl funds carrled foThvard 3.462.691 3.462,691 3.235.079 The Statement of Financial Activities includes all gains and losses recogni8ed in the year. The notes on pages 21 to 39 fom part of these financial ststements. Page 17
GADS HILL SCHOOL IA company limitpd by guarantee) REGISTERED NUMBER.. 02427105 BALANCE SHEET AS AT31 JULY 2021 2021 2020 Note Ftxed assets Tangible assets Investments 12 13 6.278,349 S.365, 177 6,278,349 6.365, 178 Current assets Debtors Cash al bank and in hand 14 118,949 656,010 165,848 415,429 774,959 581,277 Creditors.. amounts falling due within one year 15 1605,8041 (514,028) Net current assèts 169,355 67,249 Total assets less current liabilities ,447,704 6.432,427 Creditors.. amounts falling due after more than one year 16 12,912.9451 (3, 117.833) Net assets excluding pension liabillty Defined benefft pension scheme liability 3,534,759 3,314,594 24 172,0681 (79.515) Total net assets 3,462,691 3,235,079 Charity funds Restricted funds 18 Unrestricted funds 18 3.462.691 3.235,079 Total fund5 3,462,691 3,235,079 The Govemors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial slalements were approved and authorised for issue by the Governors and signed on their behalf Page 18
GADS HILL SCHOOL IA company limtted by guarantee) REGISTERED NUMBER: 02427105 BALANCE SHEET ICONTINUEDI AS AT 31 JULY 2021 Lloor MT5 K Hillocks Ichair of Trustees Dale.. The ntstes on pages 21 to 39 form part of these financial $18lements. Page 19
GADS HILL SCHOOL {A company limited by guarantsel STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2021 2021 2020 Cash flows from operating acttvities Net cash used in operating activities 598.20T 1,474 Cash flows from Investing activitias Dividends, interests and rents from investments Proceeds from the sale of tangible fixed assets Purchase of tangible ffxed assets 506 240 153,8251 (49, 759) Net cash used in investing activities 53.0791 149,7591 Cash flows from financing activities Repayments of borrowing Interest paid on loan 1185,2341 1119,3131 f127,365J Net Cash used In flnaneing activities 1304.5471 1127,3651 Change in Gash and cash equivalents in the year Cash and cash equwalents at the beginning of the year 240,581 1175.7101 591, 739 415,429 Cash and cash equival&nts at the end of the year 656,010 415,429 The notes on pages 2110 39 form part of these financial slalements Page 20
GADS HILL SCHOOL IA ¢ompany limited by guarantèe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 General infomiation Thg company is a company limited by guarantee. The members of the company are the Trustees named in the frgnt of the financial ststements. In the event of the company being wound up, the liability in respect of the guarantee is limited lo £10 per member of the company. The company is registered in England and Wales. registered number 02427105 and ils registered office Gads Hill Place, Gravesend Road, Higham, Kent, ME3 7PA. The company is a registered chartty number 803153, its principal aclivty is the provision of education servi. Accounting policies 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with the Charities SORP IFRS 1021- Accounting and Reporting by Charities." Ststement c>f Recommendéd Practice applicable lo charities prèparing their accounts in accordance wrth the Financi31 Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191. the Financi81 Reporting S18ndard pplicable in the UK and Republic of Ireland IFRS 10218nd the Companies Act 2006. Gads Hill School meets the definition of a public benefit entity uncler FRS 102. Assets and liabilities are initially Fecognised at historical cost or Iran5aclion value unless othetwise Stated in thè rÈlÈv8nt accounting policy. 2.2 Going concem A¢¢ounting standards require the Governors lo tonsider the appropriateness of the going concem ba515 when preparing the financial 5ts1ements. After VIewIng thè group's forecasts and projections. the trustees have a reasonable expectation that the school has adequate resources lo continue in operational existence for the foreseeable future. Whilst the school has a clethcil on free reserves il hss bank funLling in pface to cover this and ftjlure income streams lo serviee that debt. The Governors therefore continue to atlopt trie going ¢on¢&rn basis in preparing the financial slatemenls. Page 21
GADS HILL SCHOOL (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Accounting pollcles {continued) 2.3 Fund accounting General funds are unrestricted funrjs which are available for use at the discretion of the Governors in rurthefance of the general objectives of the Company and which have not been designated for other purposes. Designated funds comprise unreslricled funds that have been sel aside by the GovemoJE for particular purposes. The aim and use of each designated fund is sel out in the note5 tD the financial slatem2nts. Reslricled funds are funds which are to be used in accordan with specbfic restTiCtions imposed by donors or which have been raised by the Company for particular purposes. The costs of raisin9 and administering such funds are charged against the specffic fund. The aim and use of each restricted lund 15 sel DUI in the notes lo the financial statements. Investment income, gains and losses are allocated lo the appropriate fund. 2.4 Fee income Fees recèNiable and charge5 for seNices anrl use of prèmises are accounted for in the period in which the seryice is provided. Fees recewable are stated after deducting scholarships. bursaries and other allowances. Interest income is accounted for on a receivable basis. Grants are included in the Statement of financial activities on a receivable basis. The balance of Income received for specrfic purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where incomé is received in advance of enlitlernent of receipt, its recognition is deferred and included in ¢redftors as deferred income. Where entitlement occurs before income is received, the income is accrued. 2.5 Expenditure Expenditure is recognised On there is a legal or constructive obli9alion to transfer econornic benefit lo a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured lIablY. Expenditure is classrfied by activity. The costs of each activity are rnade up of the totsl of direct costs anLI shared costs. including support costs involved in undertaking each aclivily. Direct costs attributable lo a single activity are allDcaled direclty lo that activity. Shared costs which contribute to more than one activity and support costs which are not attributable lo a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated Dn the basis ol time spent, and depreciation charges allocated on the portion of the asset's use. Expenditure on chartiable actDiilies is incurred on directly undertaking the actwilies which further the Companws objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. 2.5 Government grants Government grants relating lo tangible fixed assets are treated as deferred inCDme and rele8$èd lo the Statement of financial activities over the exp&cted ijseful lives of the assets concemed. Other grants are credited to the Statement of financial aclwiks as the related expenditure is incurred. Page 22
GADS HILL SCHOOL IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Accountlng policies Icontinued 17 Tangible fixed assets and depreciation Tangible fixed assets costing £NIL or more are capitalised and recognised when fLrture economic benefits are probable 8nd the cost or value of the asset can be me¥sured reliably. Tangible fixed assèts are initially recognised at cost. After recognition, under the cost model. tangible fixed 85sets are measured al cost less accumulated depreciation and any accumulated impaimient losses. All costs incurred lo bring a tangible red asset into ils intended working condition should be included in the measurement of cost. Depreciation is charged 50 as to allocate the cost of tangible fixed asset5 less their residual value over their estirnaled useful lives, Depreciation is provided on the following bases. Freehold proper Motor vehicles Fixtures and ftrtings 2Q/o on cost 25Q/o on Cost 20% 10 25% on cost Land of £140,000 is not depreciated. The governors consider that the freehold propety will have an estimated residual value of £1.9 million after 50 years, depreciation 15 charged at 20kn peT annum on the balance. 2.8 Investments Fixed asset investments are a form Of financial instrument and are fjnitial recognBed al their transaction cost and subsequently measured at fair value at the Balance Sheet date, unle55 the value cannot be measured reliably in which c8se il is me8surecl at cost less impairment. Investment gains and losses. whether realised or unrealised, are combin&d and presented as 'G8insllLossesl on investments, in thè Statement ol financial activsties. Investments in subsidiaries are valued at cost less provision for impairment. 2.9 Dèbtors Trade and other debtors afe recognised at the settlement amount after any trade discount offered. Prepaymènts are valued at the amount prepaid net of any trade discounts due. Known bad debts are written off and provision is made for any considered to be doubttul. Trade debtors rel8tes to income owed for charitable services provided. 2.10 Cash at bank and in hand Cash at bank and in hand includes cash and short-term highly liquid investments with a short matUTty of three months or les5 from the date of acquisltion or opening Df the deposit or similar account. Page 23
GADS HILL SCHOOL (A company limitsd by gtsarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Accounting policie5 {continuedl 111 Liabilities Liabil(ties are recognised when there is an obligation al the Balance sheet d8te as a result of a past event, it is probable th¥t a Ir8nsfei of economic bènefit will be required in settlem&nt, anEI the amount of the settlement can be estimated reliab. Liabilities are recognised at th? amount that the company anticipates Il will pay lo settle the debt or the amount rt ha5 received as advanced payments for the goods Dr services il musl provide. Provisions are measured al the best estimate of the smounls required lo settle the obligation. Where the effect of the lime value of money is material. the provision is based on the present value of those amounts, discounted al the pre-tax discount rale that ieflecls the risks specifi¢ to the liability. The unwinding of the dis¢Dunl is recognised wrthin Interest payable and sifflilar charge5. Fees receried in advance are carried fo?1 for credi( in the period to which they relate. 2.12 Financial instruments Thè Company only h8$ financial assets and fin8ncial liabilitiès of a kind that qualfy as basic financial instruments. Basic financial instruments are initialty recognised al transaction value 3nd subsequentty measured at their settlement value with the exception of bank loans which 8re subsequently measured al amortised cost using the effective interest m9thod. 113 Pensions The Company 15 a member of a rnulli-ernployer plari. WheTe il is not Possible for the Company lo obtsin suffioient information lo enable rt to account for the plan as a defined b&nefft ptan, it accDunls for the plan as a defined contribution plan. Critical accounting estimates and areas of judgrnent Estimates and judgments are continually evaluated and are based on historical experien¢9 and other factors, including expectations of future events that are believèd lo be reasonable under the Circumstan5. Critical accounting estimates and assumptions.. Tangible fixed assets are depreciated Over their useful live5 taking into account idUal values where appropriate. These are assessèd tsrinualty and may vary each annum depending on a number of factors. ResiLlual value assessments consider issues such as future market condi(ions, the ¥èmaining lrfe of the asset and projected disposal value5. The school makes allowance for dDubtfvl debts based on an assessment of the recoverabilty of receivables. Allowances are applied to re1vb]eS where events or changes in circumstances indicate that the carrying amount may not be recoverable. Management specrfi¢ally analysed historical bad debts, customer credit-worthiness, current economic trends and changes in customer payment terms when making judgement to evalkjate the adequacy of the allowan of doubfful debts. The Company makes estimates and assumptions coneerning the future. The resutting accounting estimates and assumptions will. by definition. seldom equ21 the related actual results. The estimates and assumptions th81 have a signrficant risk c)f causing a material arljuslmenl to the carrying amounts of assets and li8bililie5 wi(hin the next financial year are discussed below. Pagè 24
GADS HILL SCHOOL IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 In¢ome from donations and legacie5 Unrestricted funds 2021 Total funds 2021 Donations Government grants 375 143,740 3T5 143,740 144,115 144,115 Unrestricted funds 2020 Totsl funds 2020 Government gran15 196.784 196. 784 Income from charitsble activlties Unrestricted funds 2021 Total funds 2021 Fees re1vable Registration fees Educational Tequisiles income Sundry income 3.504,674 12,240 129,881 108,233 3.504,674 12,240 129,881 108.233 3.755.028 3.7S5.028 Page 25
GADS HILL SCHOOL {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Income from charitsble a¢tivlties Icontinuèdl Unrgstricled funds 2020 To181 runds 2020 Fees receNable Registration fees Educational requisites incom& Sundry income 3, 189.411 4.380 115,032 40,995 3, 789,411 4,380 115,032 40,995 3,349,878 3,349,818 Invo$tment income Unrestrlcted funds 2021 Total funds 2021 Investment income- other foreign investments 506 506 Unfftstricted funds 2020 Total fvnds 2020 Investment income- other foreign investments 1.567 1,567 Page 26
GADS HILL SCHOOL IA company limited by guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Analysis of expÈnditure on charitable activities Summary by fund type Unrestrittterl funds 2021 Total funds 2021 Education Weffare 2,270.874 158,613 617,815 505,422 119,313 2,270,874 158.613 617.815 50S,422 119,313 Premises Administration Interest payable 3,672,037 3,672,037 Endowment funds 2020 Restricted unStriCted funds funds 2020 2020 Total lunds 2020 Education Welfare Premises Administration Interest payable 2. 142,507 151. 743 551,370 502, 735 128.919 2,142,507 751, 743 553, 168 502, 135 128,919 1,253 545 1,253 545 3,476.674 3,478,472 Page 27
GADS HILL SCHOOL IA company limited by guarantee) NOTES TO THE FINANCtAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Analysis of expenditure on charitable activities Icontinuedl Summary by expenditure type Total funds 2021 Staff costs Depreciation Other costs 2021 2021 2021 Education Welfare Premises Adminislralion Interest payable 2,099,447 137,783 200,565 321,462 171.427 20,830 276.595 183,960 119,313 2,270,874 158,613 617,815 505,423 119,313 140.655 2,759.257 140,655 772,125 3,672,037 Total funds 2020 st8ff oosls DepCIation Other costs 2020 2020 2020 Education Weffare Premises Administralion Interest payable 2,022,972 130,21 8 759.859 325.311 119, 535 21,525 264,118 176, 825 128,gi 2, 142,507 157, 743 553.187 502. 135 128.919 129, 190 2, 638,360 729. 190 710,922 3.478,472 Page 28
GADS HILL SCHOOL IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 JULY 2021 Anatysis of expendre by activities Activities undertaken dlrect 2021 Support costs 2021 Total funds 2021 Education 2.280,123 137,783 477,160 480,277 119,313 19,2501 2.270,873 20,830 158,613 140,655 617,815 25,146 SOS,423 119,313 Welfare Premises Administration Intere51 paydble 3,494,656 177,381 3,672,037 Activities undertaken direclly 2020 Support costs 2020 Tolsl lunds 2020 EducatDn Welfa 2,142,507 130,218 575,9 483,324 128,919 2, 742,507 151,743 553,167 502, 136 128,919 21,525 37. 190 18,812 Premises Administration Interest payable 3,400,945 77,527 3.478,472 Auditorfs remuneratio 2021 2020 Fees payable to the CoMpanS auditor for the audit of the Company's annual accounts 14,350 12.000 P8ge29
GADS HILL SCHOOL IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 10. Staff costs 2021 2020 Wages and salaries Social security ¢osts ContTrbulirJn to defined contribution pension scheme5 2,211.441 198,937 348,879 2. 118.508 193.067 326, 791 2,759,2S7 2, 638,360 The average number of pgtsons employed by the Company during the year was as follows.. 2021 No. 2020 No. Average number of full-time equivalent employees 74 71 The number of employees whose employee benefts (excluding employer pension costs) exceeded £6D,000 was.. 2021 No. 2020 No. In the band £70.001- £80,000 In the band £80,001- £90,000 Key management personnel are ¢onsidered lo the be the Govemors of the school and their reMunetIDn is disclosed above in note 11. 11. Governors. remunpration and expon$8s 2021 2020 MF P Savage Remuneration 80,401 79,560 Remuneration of £80,401 (2020- £79,560) and pènsions contributions of £18,990 (2Q20- £18,340) wer& paid in respect of the highest paid Governor. During the year, retirement benefits weTe accruing to 1 GovernoJ5 (2020- 7) in respect of defined benefit pension schemes. During the year ended 31 Juty 2021, expenses totalling fd10 were reimbursed or paid directty lo Govemors (2020- £NILI. Page 30
GADS HILL SCHOOL IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 12. Tangible fixed assets Freehold property Motor Fixtures and vehicles fittings Total Cost or valuation At l August 2020 Additions Disp05als 6.500,000 201,444 19,404 12401 518,868 34,423 7,220,313 53,827 12401 At 31 Juty 2021 6,500,000 220.608 553,292 7,273,900 Depreciation Al 1 August 2020 Charge for the year On disposals 267,927 89,069 142.527 21,079 12401 444682 30,507 855,136 140,655 12401 At 31 July 2021 356,996 163,366 475,189 995,551 Net bookvalue Al 31 July 2021 6.143,004 57,242 78,103 6,278,349 At31 July2020 6.232.073 58,917 74,187 6,365, 177 Included in land and buildings is freehold land at valuation of £140,00012020 - £140,000), and listed building5 al a valuation of £1,906,57312020 £1,906,573). 13. Fixed asset investments Investments In subsidiary ompanies Al 1 August 2020 Disposals Net book value At 37 July 2020 Page 31
GADS HILL SCHOOL {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 14. Debtors 2021 2020 Due within one year Trade debtors other debtors Prepayments and accrued income 94,547 4.679 19,723 52.220 84,596 29,032 118.949 165.848 15. Creditors: Amounts falllng due Mthin one year 2021 2020 B8nk loans Trade credttors Other taxation and soeial security Other creLlitors Accruals and deferred income 194.739 163,638 775,084 21,303 52,326 243,420 21,895 200,470 46,757 605,604 514,028 16. Creditors: Amounts falling due after More than one year 2021 2020 Bank loans 2,912,945 3,117,833 The entire balance of bank loans shown above are 5ecur&d by a legal charge over the freehold propety of Gads Hill School. The loan is repayble in rnonlh instalments over the 15 year term. Interest is being paid pach month at a rate of 2.44°k above Base Rate. Page 32
GADS HILL SCHOOL IA company limit8d by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 17. Flnancial instruments 2021 2020 Financial assets Financial Bssets measured at fair value through income and expenditure 656,010 415,429 Financial assets measured al fair value through inwme and expenditure comprise Cash and cash equwalents. Page 33
GADS HILL SCHOOL IA company limtted by guarantee) NOTES TO THE FINANCiAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 18. Statemènt of funds Statsment of funds- current year Balance at 1 August 2020 Balance at Income Expenditure 31 July 2021 Unrestricted funds Designated funds Charles Dickens Fund Phase 2 New School Fund 50,000 152,620 50.000 152.620 202,620 202.620 General fund5 General Funds all funds 3,032,459 3,899,649 13,672,037) 3,260,071 Total Unrestricted funds 3,235,079 3.899,649 13.672,03n 3.462,691 Page 34
GADS HILL SCHOOL IA company limited by guarantee) NOTES TO THE FINANICIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 18. Statement of funds Icontinuedl Statement of funds - prior year Balan af 1 August 2019 881gnce al Incorne £¥penditU 31 July 2020 Unrestricted funds Designated funds Charles Dickens Fund Phase 2 New School Fund 50,000 152,620 50.000 152.620 202.620 202,620 Balance 81 7 August 2019 Balan at Income Expenditure 31 Juty 2020 General fvnds General Funds- all funds 2,960,964 3.548. 169 (3.476,674) 3.032.459 Total Unrestricted funds 3, 163,584 3,548, 769 {3.476,674J 3,235,079 Endowment funds Penelope Bow Award for Tesearch anddiscovery 1,253 17,253) Restricted funds PenelDpe Bow AwaNI enaowment fvnd 545 (545) Total of funds 3, 165,382 3,548, 169 (3,478,472) 3,235,079 Page 35
GADS HILL SCHOOL IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 19. Summary offunds Summary of funds- current year Balance at 1 August 2020 Balance at Income Expenditure 31 July 2021 Designated fund5 General funds 202,620 3,032,459 202,S20 3,899,649 13,672,037) 3,260.071 3,235.079 3.899,649 13.672,0371 3,462,691 Summary offunds- prforyear 1 August 2019 Balance at Income Exp8nditU 31 July 2020 Designated funds General funds Endowment funds Restricted fund5 202. 620 2,960,964 1,253 545 202.620 (3,476, 674) 3.032,459 11,253) (545) 3,548, 169 3, 165,382 3.548. 169 f3,478,4T2) 3,235.079 20. Anatysis of net assets beèn funds Analysis of net assets between funds - current year Unrestricted funds 2021 Total funds 2021 Tangible fixed assets Current asse15 Creditors due within one year Creditors due in more than one year Provisions tor liabiltties and charges 6,278,349 6.276,349 T74.959 774,959 1605.604) 1605.6041 12,912.9451 12.912.945) {72,0681 172.0681 Total 3.462.691 3,462,691 Page 36
GADS HILL SCHOOL (A company limited by guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 20. Analysls of net assets between funds Icontlnuedl Analysis of net assets between funds - prior year unStriCted fvnds 2020 Total funds 2020 Tangible fixed assets Fixed asset investments Current assets Creditors due wilhin one year Creditors due in rnore than one year Provisions for liabilities and eharges 6,365, 177 6,365, 17T 581.276 581,2T6 (514, 028) (514,028) f3, 117, 833) (3, 117,833) (79,515) 179,515} Total 3,235,078 3,235.078 21. Reconciliation of net movement in funds to net cash flow from operating a¢tivities 2021 2020 Net income for the year las per Statement ol Financial Activities} 227,612 69,697 Adjustments for. Depreciation charge5 Loss on investments Interest payable Endowment investment nel movements Interttsl receivable Decreasellincreasel in debtor5 InCre8sellde¢a8el in crèditors Repayable of pension deficit Loss on disposal of tangible assets 140,655 {1} 119.313 129, 190 127,365 1,253 15061 46.898 71,923 17,4471 12401 f6.314J {315.083J (4, 694J Net cash provided by operating activities S98,207 1.414 Page 37
GADS HILL SCHOOL IA company limitsd by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 22. Analysts of cash and cash equivalents 2021 2020 Cash In hand 656,010 415,429 Total cash and cash equivalents 656,010 475,429 Analysis of changes in net debt At 1 August 2020 Cash flov At 31 July 2021 Cash at bank and in hand Debt due within 1 year Debt due after 1 year 415,429 1175,0841 13.117,833 240.581 119,6551 204,888 656,010 1194.7391 12,912.9451 12.877,4881 425,814 12,4S1.6741 24. Pension commitments The school operates pension schemes, one of which provides benefrts based on a final or career average pensionable salary, while the other operates on the basis of a defined contribution leveEs from the employer and the employee. Teaching staff belong to the Teachers. Pension Scheme 'TPS" This is an unfunded defined benefit scheme operated by the Government with contributions calculated on an actuarial basis. bul sel in Telation to the current service period only. In aOrdance with paragraph 28.11 of FRS 102 the contributions have been accounted for as if this were a defined conlributK)n scheme. The employers contributions for the period rose from 23.680h to 23.580/0 from September 2020. Some members of the support and administrative staff belong lo The Independent Schools, Pension Scheme "ISPS This schème is run by Verity's Governors Limited. Verity is the governor of the Pensions Trust for Charities and Voluntary Organisations. ContributK)ns are calculated as a percentage of employee's eaming5. The contributions made by the employees are matched by the employer to the maximum of 40A. Employees a ablè to contribute more than this if they wish. The pension charge for the period was £345,879 12D20 £324.970). Outstsnding contributions on the balance sheet arnounl lo £72.06812020 - £32,216). The school also paid a ponsion of £250 per month ID a forner Headmistress. 11 Is CDmmilled lo pay this for the remainder of her lrfe. A provision of £23.596 12020 £23,596> for the pension is within other creditors. The school has entered into an arrangement lo repay the deficit of the mulli-employer ISPS. The amount is repayable over 13 years, wilh the first repayment being made in September 2D16. In the prior year this has been discounted lo its net present value of £72,067. The effective intèrest Charge will be unwound to Page 38
GADS HILL SCHOOL IA Company limited by yuaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Pension commitments Icontinuadl the Statement of Finoncial Actr'vrties over the paYment period, Opérating lease commitments At 31 July 2021 the Company had commitments to make fvtU minimum lease payments under non- cancelPdble operating leases as follows.. 2021 2020 Not later than 1 year Later than 1 year and not kter than 5 years 9.706 38,304 48,010 26. Related party transactlons During the year. the SchoDI was invoiced for Insuran services by The Waterhouse Group, a business in which Mr P Waterhouse, the father of governor Mrs K Hillocks. is the sole PTOPTietor. The cr)mmission earneLI by The Waterhouse Group was £5,19812020- £4,918). DuTing the year, the school paid for variDUS expense5 on behalf of The Charles Dickens Centre (Gads Hill) Limited £nil12020 - £1,276). No amount was oulslanding at the year end12020- £nill. A comp8ny in which there are common govemoTS. During the year, the school 1Ved donations of £5,07512020- £nil} from The Friends of Gacls Hill School. During the year. the school paid for various expenses on beha of The Friends of Gads Hill School totslling £3,28512020- £3,496>. £3.265 was outstanding al the year enc$12020- £4851. A charity in which thefe are common governors. During the year, the school made purchases lolalling £87 from Rochester and Chatham Dickens Fellowship12020- £1791. No amount was oulslanding at the year-end12020- £nill. Page 39