ST PETER'S SCjJQOtrVORK

Registration number: 06927030

ST PETER'S SCjJQOtrVORK

(Charity number 1141329)

FINANCIAL STATEMENTS

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HPH Chartered Accountants

54 Bootham York

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ST PETER'S SCHOOL. YORK REPORT AND FINANCIAL STATEMENTS

CONTENTS Page

Governors, Officers and Advisers 1-2

Directors' and Trustees' Report 3 -14

Auditor's Report 15

Consolidated Statement of Financial Activities 16

Balance Sheets 17

Consolidated Cash Flow Statement 18

Notes to the Financial Statements 19-33

ST PETER'S SCHOOL. YORK GOVERNORS. OFFICERS AND ADVISERS

The Governors are the directors of St Peter's School, York (company number 06927030). The following persons have been members of the Board of Governors during the year.

Nominated by the Archbishop of York

Nominated by the University of York

Nominated by the Old Peterite Club

Nominated by the Dean and Chapter of York

Co-opted

OFFICERS

Head Master

The Bursar

The Clerk to the Governors

Mr W Woolley (Chairman)

Professor M D Matravers (from 1 September 2014)

Mr R D Harding

Dr A Lees

Mr J E Burdass Mr J R Coles (to 31 August 2015) Mr D Salter (to 31 August 2015) Dr D M Hayward Miss S L Palmer Mr S Town Mr P B Hilling Mr J C Morris (to 31 August 2015) Ms P Kaur Mr A Taylor (from 1 September 2014)

Mr N L Winkley

Mr R M Schofield

Mrs K V Hodges

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ST PETER'S SCHOOL. YORK GOVERNORS. OFFICERS AND ADVISERS

ADVISERS

Bankers Yorkshire Bank plc York Area Business Centre Aviator Court York YO30 4UT

HSBC Bank plc Parliament Street York Y018XS

Lloyds TSB Bank plc 8211 Cambridge Crescent Harrogate HG11PQ

Solicitors Rollits Rowntree Wharf Navigation Road York Y01 9WE

Veale Wasbrough Orchard Court Orchard Lane Bristol BS1 5WS

Auditor HPH, Chartered Accountants 54 Bootham York YO30 7XZ

Insurance broker Marsh Limited Education Practice Capital House 1 - 5 Perrymount Road Haywards Heath West Sussex RH16 3SY

Estate and property Stephensons 10 Colliergate York Y018BP

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ST PETER'S SCHOOL. YORK DIRECTORS' AND TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2015

The Directors and Trustees present their annual report for the year ended 31 August 2015 under the Charities Act 2011 together with the audited accounts for the year and confirm that the latter comply with applicable Accounting Standards in the United Kingdom, the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" issued in March 2005, the Charities Act 2011 and the Companies Act 2006.

St Peter's School, York, was incorporated in June 2009 with a scheme which authorised the Trustees to administer the School - the directors and trustees are those listed on Page 1 and are known as Governors.

Reference and Administration Information

Charitable Company name St Peter's School, York Charity number 1141329 Company number 06927030

Principal address St Peter's School Clifton York

YO30 6AB

The names of the Governors, officers and professional advisers are set out on pages 1 and 2.

STRUCTURE. GOVERNANCE AND MANAGEMENT

Governing Document

The School is governed by its Memorandum and Articles of Association dated 26 March 2014.

Recruitment and Training of Governors The School is governed by a Board of Governors who are all unpaid volunteers. On 26 March 2014 the Board of Governors resolved that three Governors would in future be nominated by the institutions below and the remaining twelve would be appointed by the Board of Governors. The nominated Governors are to be appointed as follows:

One by the Archbishop of York One by the Dean and Chapter of York One by the University of York

Each nominated appointment is made for a term of four years at a meeting convened and held according to the ordinary practice of the appointing body. The person appointed may be, but need not be, a member ofthe nominating body.

The remaining Governors are appointed for a term of five years by a resolution of the Board of Governors. The Board identifies suitable candidates bearing in mind a mix of skills and experience appropriate to the perceived needs of the School at that time.

The School's aim is to recruit responsible people who are actively interested in our Charity and who can give the necessary time commitment. We search for people with the specific expertise required to maintain a balanced, diverse and effective Board.

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New Governors are given an induction that includes meetings with key individuals and a tour of the School. Governors are encouraged to attend School Governor training programmes run by organisations including AGBIS and are provided with reading materials including "Guidelines for Governors", a manual of good practice for the Governors of independent schools. Internal training and visiting speakers are provided as necessary. All Governors receive an annual appraisal which is an opportunity to review contribution and to identify any additional training needs.

Organisational Management

The Board of Governors meets four times a year and in addition holds a training and strategy day each year. The strategic direction of the School, its general policy and financial oversight are determined and conducted by the Board of Governors in close collaboration with the Senior Leadership Team. The Head Master, the Bursar, the Deputy Head, the Master of St Olave's, the Head of Clifton School, and the Director of External Relations all attend meetings of Governors. To enhance the deliberation of the Board, a number of committees have been established which meet once per term or more regularly if appropriate. Terms of reference and levels of authority for each committee are determined by the Board of Governors and membership is as set out below. The teaching staff in each school are accountable to their respective heads and the Master of St Olave's and Head of Clifton School are accountable to the Head Master who in turn reports to the Board of Governors. The support staff are the responsibility of the Bursar who, in turn, reports directly to the Head Master. The day to day management of the School is delegated to the Head Master.

Academic Committee

Mr J C Morris (Chairman) DrA Lees Mr D Salter Miss S L Palmer Mr S Town Mr A Taylor Prof M D Matravers

Finance and Governance Committee

Mr P B Hilling (Chairman) Mr J E Burdass Miss S L Palmer Mr D Salter Mr S Town Ms P Kaur Mr W Woolley

Property and Facilities Committee

Mr W Woolley Mr J E Burdass (Chairman) Mr J R Coles Mr S Town Dr D M Hayward Mr R D Harding

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Bursary and Hardship Committee

Miss S L Palmer (Chair) Dr D M Hayward Mr J C Morris Mr W Woolley

OBJECTIVES. AIMS. AND ACTIVITIES

Charitable objectives

The object of the charity is the provision and conduct in or near York of a day, boarding and pre-preparatory school for boys and girls aged from 3 to 18.

The School's vision is to be a happy, thriving 3-18 co-educational day and boarding school community that combines a classical, high quality, all-round education with a forward-looking and exciting approach to learning.

Public benefit aims and intended impact

In meeting these objectives, St Peter's aims to deliver public benefit through the provision of first class independent education, both through strong academic tuition and by developing the wider artistic, sporting, cultural and social skills of its pupils. It is intended to be an environment in which each pupil can develop and fulfil his or her potential, thus building self-confidence and inculcating a desire to contribute to the wider community.

To the furtherance of these aims, the Governors of St Peter's School, as the charity trustees, have complied with the duty in s.17(5) of the Charities Act 2011 to have due regard to the Charity Commission's published general and relevant sub-sector guidance concerning the operation of the Public Benefit requirement ofthe Act.

Objectives for the year

Academic development

We completed the first year of our three-year classroom improvement plan' and classrooms in all three schools were refurbished.

With the assistance of our newly appointed Director of Digital Strategy we have developed a plan to deliver a step change in the School's IT infrastructure. Significant investment was made in the year and a larger investment is planned for 2015/2016 to ensure that the School is able to utilise all digital learning applications in and out of the classroom.

After a successful trial, the Extended Project Qualification was adopted. A review of the changes to the GCSE curriculum was conducted in order that we are ready for the changes to A Levels. We feel confident that we have managed well this complicated process and guided parents and pupils who are due to sit exams under the new system.

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Facilities development

The School developed an ambitious ten year Capital Master Plan which was approved in principle by the Board of Governors at the annual strategy meeting in June.

The School purchased "Briar Lea", a former guest house close to the School. The purchase of the house allows the School to offer suitable accommodation to GAP students and to new members of teaching staff requiring temporary accommodation on relocation to York. The guest house is completely detached from the School and is considered an investment property.

The refurbishment of the main entrance to St Peter's School was completed in Autumn 2014 and won the "York Press People's Choice Award" at the annual York Design Awards which was decided by a public vote. The new entrance is designed to blend seamlessly into the existing building whilst acting as a clear focal point for visitors.

The entrance and communal kitchen, sitting and games areas in The Manor Boarding House for boys was refurbished to an extremely high standard and the boarders are very pleased with their new facilities.

The Nursery department at Clifton has been refurbished and a new play area created (completed in Autumn 2015). The changes allow a better use of space and enables the recruitment of "rising threes" which has been a change to our admissions strategy from September 2014.

The School is investing in efficient heating management systems across the whole school and savings from this process are already identifiable and significant.

Staff

The Archbishop of York, Visitor to the School, chairs the Living Wage Commission. St Peter's is embracing those principles and, from September 2014, every single member of staff was paid the Living Wage or above.

Principal activities of the year

The Charity principally provides education in York to boys and girls from the ages of 3-18 in its three schools, St Peter's, St Olave's and Clifton.

This year 1068 pupils attended St Peter's (2014 1073), of whom 157 were full boarders (2014 162) plus 42 in Nursery (2014 22). Weekly and flexi boarding options are also popular at St Olave's.

Grant making policy

The St Peter's School Foundation was transferred to the School in September 2011. The Trustees of the Foundation concluded that, given the long history and relationship between the School and the Foundation, it was in the best interests of the Foundation and its beneficiaries to transfer the Foundation's assets, liabilities and undertakings to the School.

The grant making policy enables the School to continue its long tradition of opening its doors to children from a broad social spectrum. Through its fundraising, the Foundation enables the School to offer more bursaries to talented children, giving them life-changing educational opportunities which would otherwise be out of reach.

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The School has made a long term commitment to make a St Peter's School education a possibility for more children by working to minimise financial barriers. The means-tested bursary scheme and application process entered its fifth year of operation.

This year the value of scholarships, bursaries, music awards and other awards, together with funds from St Peter's Foundation, totalled £390,035 (2014 £497,260).

CHARITY FUNDRAISING AND SUPPORT

We actively engage in charitable work in the local community which benefits not only those organisations we choose to support, but also benefits those pupils engaged in the work by developing social responsibility.

Community Action Programme: In addition to fundraising, over a hundred pupils in the Senior School are involved each term in a wide range of support activities, including regular ICT tuition for senior citizens; befriending at the Wilberforce Trust; work in charity shops; organising events on-site for pupils, the elderly and with MENCAP; undertaking project and conservation work offsite; working with physically handicapped young people and those with mental illness; and working with younger pupils at St Olave's and Clifton.

Fundraisina: Pupils and staff nominate charities for support, and further fundraising is conducted during the course of the year.

Academic and curricular links

Independent/State Schools Partnership, York: St Peter's and St Olave's participated very actively in the ISSP scheme, providing classes for pupils from the independent and maintained sectors, in addition to the Latin GCSE course offered to pupils from 7 local State Schools. We organised workshops, conferences, competitions, author visits and a wide range of other events which local state sector pupils and staff attended.

Archbishop Sentamu Academy, Hull: St Peter's has continued working with the Academy on Careers and University entrance and initiated a programme to award one full Boarding bursary a year.

Exam boards: Several members of staff have contributed to national examination boards, either within committees or as advisors, or through involvement as examiners, markers or moderators.

Careers: Pupils at local schools have been invited to attend a wide range of careers events at St Peter's, including a presentation, "So you want to go to Medical School"; workshops; events on Oxbridge entry, UKC AT and overseas study opportunities.

Science and Outreach: a wide variety of events have involved staff and pupils from other local " schools, including the Physics Olympics; the York Schools Science Quiz; Technicians Conference; Stargazing Live event; ISSP Masterclasses and a Faraday Challenge competition. St Peter's is the hub school for the Ogden Trust York Schools Physics Partnership. The School's Cloud Chamber has been loaned to schools and universities on several occasions.

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Public lectures: A series of free lectures covering subjects as diverse as science, history, philosophy and the Tour de France continued to attract high-profile speakers. Each lecture was attended by several hundred individuals from the local community.

York Literature Festival: In the third year of our involvement, the School hosted seven events as part ofthe York Literature Festival, and will offer more support for this annual event in the future.

York Festival of Ideas: We hosted a number of events as part of the Festival and hope to grow our involvement in the future.

Community relations

Community relations: We hold regular meetings between members of whole school leadership team and the local community and councillors. We act as a venue for regular general meetings between the police and local community.

Community use: We provide a venue for an increasing number of local and national sports and community groups, providing access to sports facilities, both indoor and outdoor. In addition to sporting activities we regularly host meetings, conferences, dinners and wedding receptions. We are committed to the further development of local and national partnerships.

Sport and co-curricular links

Ruqbv: Several members of staff are involved as coaches and referees at York RUFC

Cricket: York Cricket Club makes use of our facilities, and several members of staff are involved with the Club.

Primary Schools Football Tournament: St Olave's hosted a successful football tournament attracting teams from local schools.

STRATEGIC REPORT

Achievement and Performance

The first Cohort of History of Art A level results were strong.

Examinations - Summer 2015

The School's Value Added performance measure (i.e. improvement from GCSE to A Level) improved further, marking the third consecutive year in which this measure was significantly better than in many other independent schools. GCSE results improved significantly compared with the performance over the previous three years. The proportion of awards at A* was up 6% to 41% and AVA up 8% to 73%. New subjects (EPQ and History of Art) enjoyed impressive success. A focus over the next few years will be improving boys' performance relative to girls at GCSE. This is a national as well as a local challenge.

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Academic Development initiatives

St Peter's

The School established a clear framework and set of principles for managing the introduction of the new A Level system. This included a shift to promoting alternative qualifications and courses as a fourth option to sit alongside the mandatory core of three A Levels. The EPQ is established as one such option and a further option, centred around developing personal presence and impact in the world of work, is being prepared for launch in September 2016. The Sixth Form curriculum will continue to be developed to ensure that it remains a rigorous and exciting preparation for university and wider life beyond school.

St Olave's

St Olave's was named by Independent School Parent magazine as their 'Best in Class' co-ed prep school for Scotland and the North. Philosophy was introduced as a discrete subject taught to every class in J1-3.The introduction ofthe nationally accredited Bronze Arts Award this year with 40 pupils in J4/5 taking part. Our Eight Learning Habits of collaboration, curiosity, empathy, flexible thinking, initiative, creativity, perseverance and embracing challenge were given a great focus in all areas of school life.

Clifton

We have introduced systems to share inspirational teaching practice between teachers, ensuring that we are striving for excellence all of the time. Our School Values are at the centre of all we do in school, and are driving our PSHE programme in school.

Co-Curriculum - St Peter's

• St Peter's has enjoyed another year of sporting success; boys' and girls' teams have competed at all levels in both local and national fixtures programmes. We are able to put out three and sometimes four teams in all age groups. Hockey, rugby, rowing, netball and tennis remain strong, with the further development of other sports including boys' and girls' football. Fencing is now fully established in the sports programme and next year cycling will be offered for the first time. In the last year there have been sports tours and training camps to Canada, Holland, Italy, Belgium and Portugal.

• 1 s t XI Rugby reached last 16 of Nat West Cup (400 entries) • National honours in Cross Country, Rugby, Hockey and Football (U17 England Goal Keeper) • Senior girls' hockey, rounders and tennis teams all enjoyed unbeaten seasons • Sam Dickinson won the Great Britain Triathlon; Robbie Brown represented England in Cross

Country

A full and well supported inter-house sports programme enables pupils of all abilities to represent their houses; rugby, hockey, athletics, cross county and swimming are amongst the activities offered throughout the year.

The School Challenge Team won the Regional Finals and the Debating Society is vibrant, along with other niche activities, for example the Literary and Science Societies and the School's own radio station, Radio 627.

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Guys and Dolls was performed to great acclaim and the school took part in the National Schools' Shakespeare Festival and at the Stephen Joseph Theatre in Scarborough. LAMDA lessons are increasingly popular with boys and girls of all ages. The school entered pupils for Artsmark Gold.

Over 80 Fourth Form pupils were currently enrolled on the Bronze Award Duke of Edinburgh Award with a healthy number continuing through to Silver and Gold. The Combined Cadet Force offers a comprehensive programme that includes term-time overnight manoeuvres and camping, as well as shooting and an annual camp at the end of the summer term.

262 pupils are included in music lessons. 34 Grade 8, certificates are held. Academic and cultural trips also went out to Morocco (trekking), Spain (languages), Florida (Space Camp) The Music School provided annual Autumn, Christmas and Summer Cabaret concerts as well as the Carol and Commemoration Services in York Minster. The Chapel Choir also contributed to a concert in York Minster in February 2015 for the local charity 'Homestart UK', which raised over £7000. The School Choir of 170 pupils and Choral Society of parents, staff and Old Peterites staged a major public concert at the University of York's Central Hall in March 2015 and the Chapel Choir visited St Paul's Cathedral in London to sing Evensong in the same month. Our Swing Band, Wind Band and Choir toured Paris and the surrounding area in July 2015, playing at Disneyland and singing at Chartres and Notre Dame amongst other venues.

Co-Curriculum - St Olave's

Our year 8's were placed into teams as part ofthe Enterprise project, where they allocate themselves different roles (CEO, FD, MD) to develop and show products at an Entrepreneur Fair. A Life Skills programme was implemented ih Year 8.

Year 8 took part in the Shakespeare Schools Festival at Joseph Rowntree Theatre. Three music concerts involving over two thirds of the School took place, along with six informal music concerts. Overseas trips including rugby in Italy, hockey in Ireland and skiing in Italy, plus more local trips including sailing trips with the Ocean Youth Trust in the North Sea and Irish Sea, and an U10 sports tour to the south west of England. All pupils in Year 8 went to the Lake District for a week of adventure training and team building. Local educational trips included the Thackray Medical Museum, temple and mosque in Bradford, Viking day at Murton Park, and geography fieldwork in Helmsley.

A very successful year's sport included the following highlights:

• U9 and U13 Boys'rugby teams were undefeated ' • U12 and U13 Girls and U13 boys won the North of England Independent School

Athletic Championships for their respective age groups • U10 girls received a bronze medal in the national I APS Swimming Championships . • U13 boys reached the final ofthe national JET cricket tournament.

Co-Curriculum - Clifton School and Nursery

Our U8 children all represented the School and hosted sports fixtures against Yarm, RGS, Newcastle and Bradford Grammar School, and Year 3 children visited London and enjoyed a residential weekend at Marrick Priory near Reeth.

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BURSARIES

Bursaries are central to the Governors' vision for the School. Monies to fund bursaries come from two sources - fee income and the St Peter's Foundation.

In 2015 the value of scholarships, grants, prizes and other awards made to the School's pupils out of restricted funds totalled £112,005 (2014 - £146,249). Further awards totalling £921,887 (2014 -£980,138) in bursaries and allowances were made out of the unrestricted funds; this includes bursaries made available to pupils of the School from St Peter's School Foundation. 13 honorary academic scholarships were awarded, and 28 pupils received music awards for tuition and/or instrument funding.

FOUNDATION

The St Peter's Foundation is the fundraising arm of the School and fundraises solely for bursaries. During the year 27 pupils at St Peter's received bursaries, 9 of which were funded, or part funded, by the Foundation. Many Old Peterites continued their support of the 627 Society, a valuable regular source of funds for the Foundation. The Foundation has engaged with Old Peterites, former staff and parents by holding a number of events. The Foundation hosted a series of alumni events both in York and London as part of its relationship building strategy. The School has developed a 10 year Campus Masterplan in June 2015, which will be for delivery. 2015 - 2025.

FINANCIAL REVIEW

The financial results for the year are set out in the accounts. The School's operating surplus, before transfers, is £1,237,088.

The commercial company provides instructional courses and recreational facilities at the School and this year has transferred by gift aid £138,564 (2014 £146,231) to the School. The appointment of a Commercial Officer, one of whose duties is to promote and oversee commercial activities, has allowed us to increase revenue, and ensure there is no adverse impact on the School's core activities.

During the year ending 2013 the Governors were notified that additional pension contributions would be required to fund a deficit on the support staff pension scheme. The additional funding required amounts to £65,644 pa each year for ten years (payable on a monthly basis). We are advised by our auditors that, although set to change in the near future, current accounting conventions do not permit full accrual for the liability despite the fact that it relates to past service. Until there is a change in accounting convention, the cost will be charged to the Statement of Financial Activities as it is paid. For further details, please see note 11.

Investment Poiicy and Performance

The Governors' investment powers are governed by the Trustee Act 2000 which permits the funds to be invested in accordance with the Act's standard investment criteria that being the suitability of the proposed investment to the nature ofthe School and the need for diversification to reduce risk.

Approximately two thirds of the investments are in Endowment Funds and these are subject to the individual donor's original conditions.

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The Board's policy is to adopt a low to medium risk investment strategy to maintain income which preserves the real capital value of investments in line with the Retail Price Index.

The performance ofthe School's investments has been satisfactory during the period.

RESERVES POLICY

Notes 17 to 20 ofthe financial statements show the assets and liabilities attributable to the various funds by type, describes the various Trusts and summarises the year's movement on each fund.

We have a strong balance sheet with no debt. Total unrestricted funds amount to £18,244,908, which is largely the value attributed to the School's estate and includes free reserves of £449,700.

The School maintains medium and long range financial forecasts and takes into account sensitivity to internal and external factors in determining the level of free reserves required. The Trustees' Report refers to our capital investment plans which we seek to fund out of operational cash flow.

The Trustees will ensure that the School holds a level of free cash reserves which is sufficient to ensure flexibility and liquidity and takes account of proposed capital investment.

PLANS FOR FUTURE PERIODS

The teacher appraisal system 3-18 will be reviewed.

Academic development

With improvements in IT infrastructure we will explore ways to integrate current best practice in the use of IT into our teaching. The new database has been successfully commissioned and its use is now being developed. A new VLE is being launched in phases during 2015/2016 academic year. Technical IT development and training of teaching staff in potential uses will become more significant in the coming year.

Pastoral and academic tutoring is being reviewed along with the way we deliver PSHE, careers advice, and complementary studies in the Sixth Form. The initial phase of the reforms in this area was launched in September 2015 with the bespoke Fourth Form Horizons course. This will be carried through into the Fifth Form with the current cohort of pupils. Methods for tracking pupils' academic and pastoral progress are being developed.

The classroom development project is in its second year (of three) and substantial improvements are being made to all three schools.

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Pastoral

We are aiming to understand better and support more proactively mental health within the School 3-18.

Aware of the pressures on young people and the growing concern that mental illness presents itself in young children as well as in teenagers, we aim to develop our collective awareness and understanding, build strategies to support and establish links with specialists on whom to call so that we can help our children and young people. We understand that the pressures on them are great, so we would like to help develop healthy thinking habits as well as long term resilience.

Our work may be broadly placed in three interrelated strands: prevent, prepare and support.

Facilities

To work the newly written ten year Campus Master Plan into a defined financial plan which will incorporate a project order and anticipated build periods for each one. Once this point is reached, the Board aim to approve the elements of the plan which relate to 2016/2017 for construction in that year.

Construction of a new boat house for the rowing club forms part of the Master Plan and the Governors approved expenditure to plan the project in 2015/2016. The School is planning to raise a significant amount of the cost from external donations.

The Estates Manager will continue work to upgrade boilers and roofs. In addition, the School will comply with Energy Saving Opportunity Scheme (ESOS) requirements which complements the work we have done already.

Financial

The School will follow a cost reduction programme across all areas of the School to ensure that we can maximise the funds available to be spent on teaching and learning. Improved budget procedures have created a framework with which we can measure, compare and question expenditure to ensure value and priority.

RISK MANAGEMENT

The Governors have examined the principal area of the School's operations and considered the key risks faced in its day to day operations. The School has developed systems to monitor, control and mitigate these risks which are kept under review.

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ST PETER'S SCHOOL YORK DIRECTORS' AND TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2015

STATEMENT OF DIRECTORS' AND TRUSTEES' RESPONSIBILITIES

Company and charity law requires the Directors and Trustees respectively to prepare financial statements for each financial year which give a true and fair view of the charitable company's state of affairs at the end of year and of its financial activities for that year.

In preparing the accounts the Directors and Trustees follows best practice and:

• select suitable accounting policies and apply them consistently, • make judgements and estimates that are reasonable and prudent, • follow applicable accounting standards and the Charities SORP disclosing and explaining

any departures in the accounts, and • prepare the accounts on a going-concern basis unless it is inappropriate to presume that

the School will continue in operation.

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

In so far as the Directors and Trustees are aware:

• There is no relevant information of which the School's auditor is unaware; and

• The Directors and Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

The Directors' and Trustees' Report and Strategic Report are approved on behalf of the Trustees on 9 March 2016 and signed on its behalf by:

W Woolley (Chairman)

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HPH

Chartered Accountants

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ST PETER'S SCHOOL, YORK

We have audited the Group and Parent financial statements of St Peter's School, York for the year ended 31 August 2015 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Charity Balance Sheets, the Consolidated Cash Flow Statement and the related notes.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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.

RESPECTIVE RESPONSIBILITIES OF THE DIRECTORS AND TRUSTEES AND AUDITOR

As explained more fully in the Statement of Directors' and Trustees' Responsibilities, the Trustees (who are also the directors of the charitable company for the purpose of company law) are responsible for the preparation of financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors.

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Report of the Directors and Trustees to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

OPINION ON FINANCIAL STATEMENTS

In our opinion the financial statements:

• give a tnje and fair view of the state of the Group's and the Parent's affairs as at 31 August 2015 and of the Group's incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion the information given in the Directors' and Trustees' Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

MATTERS ON VVHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

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:

• adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and retums; or

• certain disclosures of trustees' remuneration specified by law are not made; or

• we have not received all the infomiation and explanations we require for our audit.

Robert Woolley BA (Hons), FCA, MAAT, DChA, MCMI Senior Statutory Auditor

York For and on behalf of: HPH Statutory Auditor

10 March 2016 Chartered Accountants

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ST PETER'S SCHOOL. YORK CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

AND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2015

Unrestricted funds Restricted Endowed Total Total Note School Other funds Funds 2015 2014

£ £ £ £ £ £ INCOMING RESOURCES Income from charitable activities

School fees 2 15,213,193 - - - 15,213,193 14,587,162 Other income 3 31,269 - - - 31,269 24,643

Incoming resources from generated funds

Donations and legacies 15,935 - 101,270 - 117,205 175,811 Activities for generating funds:

Non-charitable trading 24 - 183,764 - - 183,764 185,593 Other income 3 34,458 - - - 34,458 65,358 Investment income 5,828 2,570 15,890 - 24,288 20,712 Bank and other interest 17,046 - - - 17,046 21,302

Total incoming resources £ 15,317,729 £ 186,334 £ 117,160 £ - £15,621,223 £15,080,581

RESOURCES EXPENDED Costs of generating funds

Non-charitable trading 24 - 45,200 - - 45,200 39,362 Marketing and publicity 107,143 - - - 107,143 153,184 School financing costs (2,828) - - - (2,828) 8,841

104,315 45,200 - - 149,515 201,387

Charitable Activities School operating costs and grant making 14,087,104 23 112,506 - 14,199,633 13,800,171 Foundation expenses 49,924 - - - 49,924 50,709

Governance costs 14,605 - - - 14,605 15,842

Total resources expended 4 £ 14,255,948 £ 45,223 £ 112,506 £ - £ 14,413,677 £14,068,109

Net incoming resources before transfers 1,061,781 141,111 4,654 - 1,207,546 1,012,472

Transfers between funds 21 57,889 (57,889) - - - -

Net incoming resources before other gains 1,119,670 83,222 4,654 - 1,207,546 1,012,472

Gains on investments 6 780 (2,366) 15,272 15,856 29,542 94,644

NET MOVEMENT IN FUNDS/NET INCOME 1,120,450 80,856 19,926 15,856 1,237,088 1,107,116

Balances brought forward at 1 September 2014 16,267,775 775,827 759,151 989,403 18,792,156 17,685,040

Balances carried forward at 31 August 2015 £ 17,388,225 £ 856,683 £ 779,077 £ 1,005,259 £ 20,029,244 £ 18,792,156

The notes on pages 19 to 33 form part of these financial statements.

Incoming resources and net movement in funds derive wholly from continuing operations.

16

ST PETER'S SCHOOL. YORK BALANCE SHEETS

AS AT 31 AUGUST 2015

Registration number: 06927030

Note Consolidated School only 2015 2014 2015 2014

£ £ £ £

FIXED ASSETS

Tangible fixed assets Investments

5 6

18,490,356 1,479,045

17,168,595 1,437,361

18,490,356 1,479,048

17,168,595 1,437,364

19,969,401 18,605,956 19,969,404 18,605,959

CURRENT ASSETS Stocks Debtors Cash at bank and in hand

7 8

77,873 265,439

5,159,248

63,622 312,743

5,824,033

77,873 260,325

5,159,248

63,622 306,902

5,824,033

5,502,560 6,200,398 5,497,446 6,194,557

CREDITORS: amounts falling due within one year 9 (4,747,569) (5,455,337) (4,742,458) (5,449,499)

NET CURRENT ASSETS 754,991 745,061 754,988 745,058

TOTAL ASSETS LESS CURRENT LIABILITIES 20,724,392 19,351,017 20,724,392 19,351,017

CREDITORS: amounts falling due after more than one year 10 (695,148) (558,861) (695,148) (558,861)

TOTAL NET ASSETS £ 20,029,244 £18,792,156 £ 20,029,244 £18,792,156

REPRESENTED BY

Endowed funds Restricted funds Unrestricted funds

18 17 19

1,005,259 779,077

18,244,908

988,750 759,804

17,043,602

1,005,259 779,077

18,244,908

988,750 759,804

17,043,602

£ 20,029,244 £18,792,156 £ 20,029,244 £18,792,156

The notes on pages 19 to 33 fonn part of these financial statements.

Approved on behalf ofthe Trustees on 9 March 2016 and signed on their behalf by:

W Woolley p B Hilling

17

ST PETER'S SCHOOL. YORK CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2015

Note 2015 £ £

2014 £ £

Net cash inflow from operating activities 13 1,414,494 2,475,653

Returns on investment and servicing of finance Interest received Interest paid

Net cash inflow from retums on investment and servicing of finance

41,334

41,334

42,014 (228)

41,786

Capital expenditure and financial Investment Purchase of tangible fixed assets Purchase of investments Sale of investments

Net cash outflow from capital expenditure and financial investment

Net cash inflow from acquisitions and disposals

(2,108,472) (1,433,196) 1,421,055

(2,120,613)

(2,452,349)

1,250

(2,451,099)

Financing Capital element of hire purchase payments

Net cash (outf!ow)/inflow 14 £ (664,785) £66,340

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

The notes on pages 19 to 33 form part of these financial statements

18

V ST PETER'S SCHOOL. YORK NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2015

1 ACCOUNTING POLICIES

Basis of preparation The accounts are prepared in accordance with the Companies Act 2006, under the historical cost convention as modified by the adoption of current cost for investment assets and in accordance with applicable accounting standards and the current Statement of Recommended Practice on Accounting and Reporting by Charities: the Charities SORP 2005.

The consolidated accounts include the results of St Peter's School, York and St Peter's School Commercial Company, which are consolidated on a line by line basis. In accordance with section 408 of the Companies Act 2006, no separate Statement Of Financial Activities (SOFA) has been presented for the School alone.

The Trustees/Directors have a reasonable expectation that the Charitable Company has adequate resources to continue in existence for the foreseeable future. They continue to believe the going concern basis of accounting is appropriate in preparing the financial statements.

Fees and other income Fees receivable, charges for services and use of premises are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the School, but include contributions received from restricted funds for scholarships, bursaries and other grants.

Donations Donations receivable for the general purpose of the School are credited to "other unrestricted funds", to distinguish them from direct school income. Donations for purposes restricted by the wishes of the donor are taken to "restricted funds" where these wishes are legally binding on the School Governors, except that any amounts required to be retained as capital in accordance with the donor's wishes are accounted for instead as endowments -permanent or expendable according to the nature ofthe restriction.

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

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

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

Tangible fixed assets Alteration and improvement expenditure on freehold property is treated as capital if it results in additional floor area for use of the School. Major repair work to the structure of a property is also treated as capital. Other costs are charged to revenue as maintenance of buildings. Other fixed assets costing more than £1,000 are included at cost including any incidental expenses of acquisition.

19

ST PETER'S SCHOOL. YORK NOTES TO THE ACCOUNTS


1 ACCOUNTING POLICIES (continued)

Depreciation

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

Non-teaching equipment 20% per annum straight line Teaching equipment 20% per annum straight line IT and computers over 3 years School vehicles 20% per annum straight line Freehold property over 50 years

One property is considered to have an estimated useful life of less than 50 years and has therefore been depreciated over its remaining estimated useful live. The assets transferred from the School charity are to be depreciated over their remaining useful life based on their original purchase date and cost.

Investment properties Investment properties are held for long-term investment, and are accounted for as follows:

No depreciation is provided in respect of investment properties and they are revalued annually. The surplus or deficit on revaluation is transferred to a revaluation reserve unless a deficit below original cost, or its reversal, on an individual property is expected to be permanent, in which case it is recognised in the SOFA for the year.

This treatment as regards investment properties may be a departure from the requirements of the Companies Act concerning the depreciation of fixed assets. However, these properties are not held for consumption but for investment and the Governors consider that systematic annual depreciation would be inappropriate. The accounting policy adopted is therefore necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount which might othenvise have been shown cannot be separately identified or quantified.

Fixed asset investments Quoted investments are included at closing mid-market value at the balance sheet date. Unquoted investments are stated at cost less any permanent diminution in the value. Any gain or loss on revaluation is taken to the SOFA. Investment income is accounted for in the period in which the School is entitled to receipt.

Leases Assets purchased under finance leases are capitalised as fixed assets. Obligations under such agreements are included in creditors.

Rentals payable under operating leases are charged to the SOFA evenly over the period of the lease.

Pensions The School contributes to the Teachers' Pension Defined Benefit Scheme at rates set by the Scheme Actuary and advised to the Board by the Scheme Administrator. The scheme is a multi employer pension scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the School. In accordance with FRS17 therefore, the scheme is accounted for as a defined contribution scheme. The School also contributes to a defined contributions scheme for administration staff which is being administered by The Pensions Trust of 15 Rathbone Street, London, W1P 2AJ. In both cases contributions are charged to the income and expenditure account in the year in which they accrue.

Stocks

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

Funds Structure Funds comprise unrestricted funds which have not been designated for other purposes, and are available for use at the discretion of the Governors in accordance with the Charitable objectives. Designated funds are unrestricted funds earmarked by the Governors for particular purposes. Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund. Endowment funds represent those assets which must be held permanently by the School, principally investments. Income arising on the endowment fund can be used in accordance with the objects of the School and is included as restricted income. Any capital gains/losses arising on the investments form part of the fund.

20



2 SCHOOL FEES 2015 2014 £ £

The School's fee income comprised: Gross fees 16,135,080 15,567,300 Less: Scholarships, bursaries and remissions (921,887) (980,138)

£ 15,213,193 £ 14,587,162

The above educational awards were made to 201 individuals (2014 - 234)

3 OTHER INCOME

Income from charitable activities Registration fees

2015 £

2014 £

31,269 24,643

£31,269 £ 24,643

Incoming resources from generated funds Insurance commission 450 652 Sundry income 34,008 64,706

£34,458 £65,358

4 ANALYSIS OF TOTAL RESOURCES EXPENDED

Cost of generating funds:

Marketing and publicity School financing costs

Staff costs

£

73,293

Other £

33,850 (2,828)

Depreciation £

Total 2015

£ 107,143

(2,828) Total for School 73,293 31,022 - 104,315

Non-charitable trading - 45,200 - 45,200

Total for Group £ 73,293 £ 76,222 £- £ 149,515

Charitable activities Teaching Welfare Premises Support costs of schooling

6,659,575 1,367,963

696,607 1,192,801

1,061,262 702,272

1,156,733 449,261

128,486 32,471

427,579 212,094

7,849,323 2,102,706 2,280,919 1,854,156

School operating costs Grants, awards and prizes

9,916,946 3,369,528 112,529

800,630 14,087,104 112,529

School operating costs and grant making Foundation expenses

9,916,946 49,924

3,482,057 800,630 14,199,633 49,924

9,966,870 3,482,057 800,630 14,249,557

Governance costs - 14,605 - 14,605

Total £ 9,966,870 £ 3,496,662 £ 800,630 £ 14,264,162

Total resources expended • Group £ 10,040,163 £ 3,572,884 £ 800,630 £14,413,677

Total resources expended - School £ 10,040,163 £ 3,527,684 £ 800,630 £ 14,368,477

21



4 ANALYSIS OF TOTAL RESOURCES EXPENDED (continued)

Governance costs include: Auditor's remuneration: for audit services

STAFF COSTS AND NUMBERS

2015 £

£ 12,600

2014 £

£12,675

Wages and salaries Social security costs Pension costs

Employees earning over £60,000 during the year £110,000-£120,000 £90,000-£100,000 £80,000 - £90,000 £70,000 - £80,000 £60,000 - £70,000

8,288,919 646,953

1,104,291

1 2 2

Four employees above have retirement benefits accruing under a defined benefit scheme.

The full time average number of employees analysed by function was: Marketing and publicity Teaching Welfare Premises Support

4 134 69 30 33

7,899,575 602,272

1,007,730

£10,040,163 £9,509,577

3 2

3 132 69 29 34

270 267

Karen Burdass, wife of James Burdass (Governor), received £2,959 as a swimming coach during the year. This is consistent with the normal rate that would be paid to someone in this role.

Andrea Taylor, wife of Adrian Taylor (Governor), received £19,090 as a teacher. This is consistent with the normal rate that would be paid to someone in this role.

22



5 TANGIBLE FIXED ASSETS Assets in the

lonsolidated and School

Freehold Property

£

Course of Construction

£

Investment Properties

£

Non-Teaching Equipment

£

Teaching Equipment

£

IT and Computers

£ Vehicles

£ Total

£

Cost: At 1 September 2014 Additions

18,359,026 1,092,875 264,322 375,980

2,664,909 124,338

1,921,529 6,731

2,068,383 193,702

197,461 64,443

25,211,308 2,122,391

At 31 August 2015 19,451,901 264,322 375,980 2,789,247 1,928,260 2,262,085 261,904 27,333,699

Depreciation: At 1 September 2014 Charge for the year

2,381,789 427,579

- - 2,172,739 104,256

1,428,741 128,486

1,915,101 107,838

144,343 32,471

8,042,713 800,630

At 31 August 2015 2,809,368 - - 2,276,995 1,557,227 2,022,939 176,814 8,843,343

Net book values: 31 August 2015 £ 16,642,533 £ 264,322 £ 375,980 £512,252 £371,033 £239,146 £ 85,090 £ 18,490,356

31 August 2014 £ 15,977,237 £ - £ - £492,170 £492,788 £ 153,282 £53,118 £17,168,595

Freehold land and buildings are carried at cost. The Governors consider the market value of the properties, at 31 August 2015, to be well in excess of the carrying value in the accounts. Due to the costs involved in obtaining a professional valuation of the freehold land and buildings it has not been practicable to quantify the difference. All fixed assets are held for own use on direct charitable activities.

23



6 FIXED ASSET INVESTMENTS

Consolidated Balance at 1 September 2014 Additions Disposals Revaluation

Balance at 31 August 2015

Unrestricted £

341,694 317,790

(314,924) (1,587)

£ 342,973

Restricted £

285,213 315,280

(312,355) 15,272

£303,410

Endowment £

810,454 800,126

(793,775) 15,857

£ 832,662

Quoted UK Securities Unquoted UK Securities (material investments detailed below)

342,973

£ 342,973

303,410

£303,410

832,662

£ 832,662

The historical cost of the above investments amounts to:

School

As above St Peter's School Commercial Company

The following material investments are over 5% by value of the investments held

2015 Market value

£

COIF income shares COIF accumulation shares Sarasin & Partners managed funds 1,363,583

£1,363,583

7 STOCKS 2015

Consolidated and School £ Teaching requisites 73,434 Groceries 1,089 Stores 3,350

£ 77,873

24



Consolidated School 2015 2014 2015 2014

£ £ £ £

8 DEBTORS

Trade debtors 120,391 112,810 - 12,582 Sundry debtors 32,482 35,693 32,482 35,693 Prepayments 112,566 164,240 112,566 164,240 Amounts due from subsidiary undertakings - - 115,277 94,387

£ 265,439 £312,743 £ 260,325 £306,902

9 CREDITORS amounts falling due within one year

Trade creditors 572,065 873,443 572,065 873,443 Taxation and social security 178,071 176,455 174,910 172,217 Other creditors 234,226 218,817 234,226 218,817 Pension creditor 141,001 133,772 141,001 133,772 Accruals and deferred income 3,622,206 4,052,850 3,620,256 4,051,250

£ 4,747,569 £5,455,337 £ 4,742,458 £ 5,449,499

10 CREDITORS amounts falling due after more than one year

Other creditors 695,148 558,861 695,148 558,861

£695,148 £558,861 £695,148 £558,861

The other creditors comparative figures have been amended to reflect the fact that the deposits held are now split between amounts falling due within one year and amounts falling due after more than one year.

11 PENSION SCHEMES

a) The School participates in the Teachers' Pension Scheme (England and Wales) ("the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £721,567 (2014 £699,199) and at the year-end £98,737 (2014 -£96,709) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by the Teachers' Pensions Regulations 2010 and, from 1 April 2014, 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. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set following scheme valuations undertaken by the Government Actuary Department. The latest valuation report in respect of the TPS was prepared at 31 March 2012 and was published in June 2014. This report confirmed that the employer contribution rate for the TPS will increase from 14.1% to 16.4% although, recognising that teaching establishments work on an academic and not financial year, the Government has deferred the implementation of this increase to 1 September 2015.

The Department of Education is also proposing that scheme administration costs will be devolved to scheme employers in the form of an administration charge. The Department provisionally estimates that the administration charge will be 0.08% of the employers' salary costs which would increase the employer payment rate from 16.4% to 16.48%.

The next revision to the employer contribution rate is not expected to take effect until 1 April 2019. This will follow on from the next actuarial valuation which is due at 31 March 2016. This valuation will also determine the opening balance of the cost cap fund and provide an analysis ofthe cost cap as required by the Public Service Pensions Act 2013.

25



11 PENSION SCHEMES (continued)

The School also operates an Additional Voluntary Contribution (AVC) Scheme for teaching staff who want to make extra contributions to their pension. These additional pension contributions are collected by the School and paid to the Scheme. The amount due to be paid over at the year end was £623 (2014 £742).

Support Staff

St Peter's School, York participates in The Pensions Trust's Growth Plan (the Plan). The Plan is funded and is not contracted-out of the State scheme. The Plan is a multi-employer pension plan.

Contributions paid into the Plan up to and including September 2001 were converted to defined amounts of pension payable from Normal Retirement Date. From October 2001 contributions were invested in personal funds which have a capital guarantee and which are converted to pension on retirement, either within the Plan or by the purchase of an annuity.

The rules of the Plan allow for the declaration of bonuses and/or investment credits if this is within the financial capacity of the Plan assessed on a prudent basis. Bonuses/investment credits are not guaranteed and are declared at the discretion of the Plan's Trustee.

The Trustee commissions an actuarial valuation of the Plan every three years. The purpose of the actuarial valuation is to determine the funding position of the Plan by comparing the assets with the past service liabilities as at the valuation date. Asset values are calculated by reference to market levels. Accrued past service liabilities are valued by discounting expected future benefit payments using a discount rate calculated by reference to the expected future investment returns.

The rules of the Plan give the Trustee the power to require employers to pay additional contributions in order to ensure that the statutory funding objective under the Pensions Act 2004 is met. The statutory funding objective is that a pension scheme should have sufficient assets to meet its past service liabilities, known as Technical Provisions.

If the actuarial valuation reveals a deficit, the Trustee will agree a recovery plan to eliminate the deficit over a specified period of time either by way of additional contributions from employers, investment returns or a combination of these.

The rules of the Plan state that the proportion of obligatory contributions to be borne by the member and the member's employer shall be determined by agreement between them. Such agreement shall require the employer to pay part of such contributions and may provide that the employer shall pay the whole of them.

The School paid contributions at the rate of 12% during the accounting period. Members paid contributions at the rate of 6% during the accounting period. As at the balance sheet date there were 133 active members of the Plan employed by the School. The School continues to offer membership of the Plan to its employees.

The School's contributions totalled £367,232 this year (2014 £308,610). There were £41,641 contributions outstanding at the year end (2014 £36,322).

The 2011 valuation of the Plan revealed that the Plan was in deficit. Therefore, the Trustee, following consultation with the Growth Plan Employer Consultative Group agreed a "Recovery Plan" to eliminate the deficit. The School agreed to pay additional contributions with effect from 1 April 2013 for a period of ten years. The additional contributions for the year from 1 August 2014 are £65,644. These will increase on the 1 April each year by 3%.

It is not possible in the normal course of events to identify on a reasonable and consistent basis the share of underlying assets and liabilities belonging to individual participating employers. The Plan is a multi-employer scheme, where the assets are co-mingled for investment purposes, and benefits are paid out of the Plan's total assets. Accordingly, due to the nature of the Plan, the accounting charge for the period under FRS17 represents the employer contribution payable.

The valuation results at 30 September 2011 were completed in 2012 and have been formalised. The valuation of the Plan was performed by a professionally qualified Actuary using the Projected Unit Method. The market value of the Plan's assets at the valuation date was £780 million and the Plan's Technical Provisions (i.e. past service liabilities) were £928 million. The valuation therefore revealed a shortfall of assets compared with the value of liabilities of £148 million, equivalent to a funding level of 84%.

The financial assumptions underlying the valuation as at 30 September 2011 were as follows:

% p. a.

Rate of return pre retirement Rate of return post retirement:

4.9

Active/deferred 4.2 4.2 0.0 2.9 2.4

Pensioners Bonuses on accrued benefits Inflation: Retail Price Index (RPI) Inflation: Consumer Price Index (CPI)

26



11 PENSION SCHEMES (continued)

In determining the investment return assumptions the Trustee considered advice from the Scheme Actuary relating to the probability of achieving particular levels of investment return. The Trustee has incorporated an element of prudence into the pre and post retirement investment return assumptions; such that there is a 60% expectation that the return will be in excess of that assumed and a 40% chance that the return will be lower than that assumed over the next 10 years.

The Scheme Actuary has prepared a funding position update as at 30 June 2014. The market value of the Plan's assets at that date was £779 million and the Plan's Technical Provisions (i.e. past service liabilities) was £913 million. The update, therefore, revealed a shortfall of assets compared with the value of liabilities of £134 million, equivalent to a funding level of 85%. This represents a reduction in liability of 31% from the position based on the update of 30 September 2012.

If an actuarial valuation reveals a shortfall of assets compared to liabilities, the Trustee must prepare a recovery plan setting out the steps to be taken to make up the shortfall.

The Pensions Regulator has the power under Part 3 of the Pensions Act 2004 to issue scheme funding directions where it believes that the actuarial valuation assumptions and/or recovery plan are inappropriate. For example, the Regulator could require that the Trustee strengthens the actuarial assumptions (which would increase the Plan liabilities and hence impact on the recovery plan) or impose a schedule of contributions on the Plan (which would effectively amend the terms of the recovery plan). A copy of the recovery plan in respect of the September 2011 valuation was forwarded to The Pensions Regulator on 2 October 2012, as is required by legislation.

Following a change in legislation in September 2005 there is a potential debt on the employer that could be levied by the Trustee of the Plan and The Pensions Act 2011 has more recently altered the definition of Series 3 of the Growth Plan so that a liability arises to employers from membership of any Series except Series 4. The debt is due in the event of the employer ceasing to participate in the Plan or the Plan winding up.

The debt for the Plan as a whole is calculated by comparing the liabilities for the Plan (calculated on a buy-out basis i.e. the cost of securing benefits by purchasing annuity policies from an insurer, plus an allowance for expenses) with the assets of the Plan. If the liabilities exceed assets there is a buy-out debt.

The leaving employer's share of the buy-out debt is the proportion of the Plan's liability attributable to employment with the leaving employer compared to the total amount ofthe Plan's liabilities (relating to employment with all the currently participating employers). The leaving employer's debt therefore includes a share of any 'orphan' liabilities in respect of previously participating employers. The amount of the debt therefore depends on many factors including total Plan liabilities, Plan investment performance, the liabilities in respect of current and former employees of the employer, financial conditions at the time of the cessation event and the insurance buy-out market. The amounts of debt can therefore be volatile over time.

When an employer withdraws from a multi-employer defined benefit scheme which is in deficit, the employer is required by law to pay its share of the deficit, calculated on a statutory basis (known as the buy-out basis). The calculation basis that applies to the Growth Plan was amended due to a change in the definition of money purchase contained in the Pensions act 2011 but the regulations that will determine exactly how the change will apply in practice are still awaited. As the law stands, it is not yet clear whether the statutory calculation should include or exclude Series 3 liabilities. However, based upon current advice, the most likely interpretation is that Series 3 liabilities will have to be included in the calculation of an employer's debt on withdrawal.

27



2015 £

12 RECONCILIATION OF GROUP NET INCOMING RESOURCES TO NET CASH INFLOW FROM GROUP OPERATIONS

Net movement on funds Less: Income from investments Less: Bank and other interest Gains on investments Interest paid

Operating surplus

1,237,088 (24,288) (17,046) (29,542)

£1,166,212

2014 £

1,107,116 (20,712) (21,302) (94,644)

228

£970,686

13 RECONCILIATION OF OPERATING SURPLUS TO NET CASH INFLOW FROM OPERATING ACTIVITIES

Operating surplus (note 12) 1,166,212 970,686 Depreciation charges 800,630 744,358 Profit on sale of assets - (1,250) Decrease/(increase) in stock (14,251) (6,663) Decrease in debtors 47,306 (127,174) (Decrease)/increase in creditors (585,403) 895,696

Net cash inflow from operations £1,414,494 £ 2,475,653

14 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET CASH FUNDS

(Decrease)/increase in cash in the year (664,785) 66,340 Cash outflow from repayment of loan and finance leases - -

Change in net debt resulting from cash flows (664,785) 66,340 Finance lease balance transferred from School charity - -

Movement in net debt in the year (664,785) 66,340 Net cash resources at 1 September 2013 5,824,033 5,757,693

Net cash resources at 31 August 2014 £5,159,248 £5,824,033

15 ANALYSIS OF CHANGES IN NET CASH RESOURCES Balance at Cash Other non Balance at 1 Sept 14 Flow cash changes 31 Aug 15

£ £ £ £

Bank 5,824,033 (664,785) - 5,159,248

£5,824,033 £(664,785) £ - £5,159,248

16 GOVERNORS' EXPENSES

Expenses were paid in respect of three (2014 four) Governors for course fees and travel to courses for the amount of £1,260 (2014 £3,123).

28



RESTRICTED FUNDS Balance at Investments Balance at 1 Sept 14 Income Expended gains Transfers 31 Aug 15

£ £ £ £ £ £

Extraordinary repair fund 207,287 - (270) 14,244 - 221,261 Prize fund 14,596 454 (57) 1,003 - 15,996 Scholarships 38,746 3,922 (17,337) - - 25,331 Edward Long Trust Fund 15,063 11,078 (22,050) - .- 4,091 Robin Shannon Memorial Prize . 1,446 26 - 25 - 1,497 T S Pick Competitors Fund 3,703 170 - - - 3,873 . R B Daniel Fund 1,255 180 (1,450) - - (15) Peter Taylor Community Trust Fund 8,119 - - 8,119 Shepherd Group Bursary Fund 5,427 497 - - 5,924 Art Gallery Fund 363 -

-• - 363

Music Department Fund 300 - - - - 300 Phillip Harris Chemistry Bursary 27,201 49 (1,593) - - 25,657 York Bursary Fund 10,000 - - - 10,000 History and PE Fund 60

- • . - - .. -' 60

Irene Stanley Music Award 1,622 - . .- - - 1,622 Tuition Support 11+ Bursary Fund 550 - - - - 550 St Peter* School Foundation Bursary Fund 43,969 6,705 (8,049) - - 42,625 627 Bursary Fund ' 263,067 83,261 (51,840) - - 294,488 York OP Lifetime Bursary Fund 30,614 3,000 (3,000) - - 30,614 Coles Family Bursary 81,081 177 (6,770) - 74,488 Donald Shepherd Bursary - 3,647 (52) - (1,897) 1,698 David Ord Bursary 4,682 3,994 (38) - 1,897 10,535

£759,151 £ 117,160 £(112,506) £ 15,272 ' £ - £779,077

Extraordinary Repair Fund

The repair fund represents investments held to be used for extraordinary repairs needed by the School.

Prize Fund

The prize fund represents a fund set up by individual donors to be used for prize giving.

Scholarships

Scholarships consists of a number of individual trust and prize funds set up by individual donors. Each trust is allocated its proportion of investment income and gains and losses and bears its own expenses.

Edward Long Trust Fund

The Edward Long Trust Fund is a subsidiary charity of the School. A scholarship is awarded to a student going to University or other institution to study music. Two exhibitions maintained to be awarded to a person entering as a scholar to St Peter's School.

Robin Shannon Memorial Prize

The Robin Shannon Memorial Prize is a subsidiary charity of the School. It is to provide an annual prize for spoken English in the third fomi.

T S Pick Competitors Fund

The T S Pick Competitors Fund is a subsidiary charity of the School. It is to.enable pupils to compete in championships and competitions who would otherwise be barred from doing so by reason of financial circumstances.

R B Daniel Fund

The R B Daniel Fund represents a fund set up by individual donors for the purpose of adventurous activities.

Peter Tavlor Community Trust Fund

The Peter Taylor Community Trust Fund represents a fund set up to provide support in the local community by the pupils.

Shepherd Group Bursarv

The Shepherd Group Bursary fund is for the provision of a Business Studies and Economics bursary.

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17 RESTRICTED FUNDS (continued)

Art Gallery Fund

The Art Gallery Fund is for the Art Department and Gallery.

Music Department Fund

The Music Department Fund is for the Music Department.

Phillip Hams Chemistry Bursary

The Phillip Harris Chemistry Bursary is for the provision of a Chemistry bursary.

York Bursary Fund

The York Bursary Fund is for the provision of bursaries for pupils who would not otherwise be able to attend the school.

Historv and PE Fund

The History and PE Fund is for the history and PE departments.

Irene Stanley Music Award

The Irene Stanley Music Award is for the provision of music lessons.

Tuition Support11+ Bursary Fund

The Tuition Support 11+ Bursary Fund is to provided assistance with the cost of additional tuition for pupils sitting the 11 + examinations.

St Peter's School Foundation Bursarv Fund

The St Peter's School Foundation Bursary is to fund 50% of the school fees for a child at the School for a 5 year period.

The 627 Society Fund

The 627 Society Fund is for the provision of a bursary.

York OP Lifetime Bursarv Fund

The York OP Lifetime Bursary Fund for boys and girls born or resident in York.

Coles Family Bursarv Fund

The Coles Family Bursary is to fund a 100% life time bursary for a day pupil.

Donald Shepherd Bursarv

The Donald Shepherd Bursary is for the provision of a bursary for a pupil aged 11 to 18.

David Ord Bursarv

The David Ord Bursary is for the provision of a bursary for pupils age 11 or over.

ENDOWED FUNDS Balance at Resources Investment Balance at 1 Sept 14 Income expended gains Transfers 31 Aug 15

£ £ £ £ £ £

Capital Recoupment fund 126,691 - 6,882 133,573 R B Daniel Fund 19,000 - - 19,000 Scholarships 129,133 - 3,462 132,595 Edward Long Trust Fund 310,167 - 7,121 317,288 T S Pick Competitors Fund 10,034 - 186 10,220 Shepherd Group Bursary 52,482 - 1,600 54,082 Donald Shepherd Bursary 211,276 - (410) 210,866 David Ord Bursary 128,600 - (2,985) 125,615 Ian Hunter Prize 2,020 - - 2,020

£ 989,403 £- £ - £ 15,856 £ - £ 1,005,259

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18 ENDOWED FUNDS (continued)

Capital Recoupment Fund

The capital recoupment fund represents recoupment of capital expenditure by order of the Charity Commission.

R B Daniel Fund

The R B Daniel Fund represents a fund set up by individual donors for the purpose of adventurous activities.

Scholarships

Scholarships consists of a number of individual trust and prize funds set up by individual donors. Each trust is allocated its proportion of investment income and gains and losses and bears its own expenses.

Edward Long Trust Fund

The Edward Long Trust Fund is a subsidiary charity of the School. A scholarship is awarded to a student going to University or other institution to study music. Two exhibitions maintained to be awarded to a person entering as a scholar to St Peter's School.

T S Pick Competitors Fund

The T S Pick Competitors Fund is a subsidiary charity of the School. It is to enable pupils to compete in championships and competitions who would otherwise be barred from doing so by reason of financial circumstances.

Shepherd Group Bursarv

The Shepherd Group Bursary is for the provision of a Business Studies and Economics bursary.

Donald Shepherd Bursarv

The Donald Shepherd Bursary is for the provision of a bursary for a pupil aged 11 to 18.

David Ord Bursarv

The David Ord Bursary is for the provision of a bursary for pupils age 11 or over.

Ian Hunter Prize

The Ian Hunter Prize is for the provision of an award to be given to the most improved musician.

19 UNRESTRICTED FUNDS

Balance at 1 Sept 14

£ Income

£

Resources expended

£

Investment gain

£ Transfers

£

Balance at 31 Aug 15

£

Designated funds - 2005 Bursary fund - Charles Brotherton Scholarship - Peter Croft Bursary

617,266

2,309 156,252 2,570 (23) (2,366)

80,675 697,941

2,309 156,433

Undesignated funds - General reserve

775,827

16,267,775

2,570

15,317,729

(23)

(14,255,948)

(2,366)

780

80,675

57,889

856,683

17,388,225

School Non charitable trading funds

17,043,602 15,320,299 183,764

(14,255,971) (45,200)

(1.586) 138,564 (138,564)

18,244,908

Total for the group £ 17,043,602 £ 15,504,063 £(14,301,171) £(1,586) £ - £ 18,244,908

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19 UNRESTRICTED FUNDS (continued)

The Governors have designated funds out of the unrestricted funds for specific purposes as follows:

2005 Bursarv Fund

A bursary fund to assist deserving pupils following withdrawal of the Assisted Places Scheme.

Charles Brotherton Scholarship Representing funds given to the School which the Governors have decided should be used as a Bursary Fund at the Headmaster's discretion.

Peter Croft Bursarv

The funds left by the late Peter Croft will be used to award bursaries.

20 ANALYSIS OF NET ASSETS BETWEEN FUNDS

The net assets are held for the various funds as follows:

Tangible fixed Net current Long term assets Investments assets liabilities Total

£ £ £ £ £

Unrestricted funds 18,490,356 342,973 106,727 (695,148) 18,244,908 Restricted funds - 303,410 475,667 - 779,077 Endowed funds - 832,662 172,597 - 1,005,259

Total for the group £18,490,356 £1,479,045 £754,991 £(695,148) £20,029,244

21 TRANSFERS

The transfer of £57,889 to general funds consisted of:

2015 £

Donation from Commercial Company 138,564 Transfer to bursary fund (80,675)

£ 57,889

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22 CONTRACTS AND COMMITMENTS

Capital commitments at 31 August 2015 in relation to building works were £nil (2014 £618,809).

23 OPERATING LEASES

The Group is committed to payments to 31 August 2015 under non-cancellable operating leases, which expire as follows:

Consolidated School 2015 2014 2015 2014

Equipment £ £ £ £

Between one and five years 54,364 54,364 54,364 54,364

£54,364 £54,364 £54,364 £54,364

24 INCOME FROM SUBSIDIARY'S TRADING ACTIVITIES

The School wholly owns St Peter's School Commercial Company, which provides instructional courses and recreational facilities relating to the School. It donates all of its taxable profits to the School, previously by deed of covenant, now by way of corporate gift aid. The trading results, extracted from its audited accounts were:

2015 2014 £ £

Turnover 183,764 185,593 Cost of sales (29,043) (23,830) GROSS PROFIT 154,721 161,763

Administration (16,157) (15,532) NET PROFIT 138,564 146,231

Gift aid (138,564) (146,231)

PROFIT BEFORE TAX £ - £ -

25 LEGACY

Number 16, Clifton Green, a domestic house, has been left to the Foundation in the will of John Mitchell on the deaths of the current residents who hold a life interest.

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ST PETER'S SCjJQOtrVORK

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