directors’ report and financial statements for the …

Charity Registration No. 1096270

Company Registration No. 4659710 (England and Wales)

THE WOODARD CORPORATION (A Company Limited by Guarantee)

DIRECTORS’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2016

THE WOODARD CORPORATION LIMITED CONTENTS

Page

Company information 1

Directors’ report 3

Strategic Report 10

Directors’ responsibilities statement 24

Independent auditor’s report 25

Statutory financial statements of the company 27

THE WOODARD CORPORATION LIMITED COMPANY INFORMATION

YEAR ENDED 31 AUGUST 2016

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Directors (Meetings attended)

The Right Reverend Dr A J Russell (4/6)

Post and Committee Membership

(Meetings attended; *Chairman)

President, Pastoral* (3/3), Nominations & Appointments (3/3)

Mr R S Morse (1/1) (Appointed 26 April 2016)

Chairman of the Board from 1 August 2016

Mr T D Fremantle (6/6) (Resigned 15 March 2017)

Chairman of the Board to 31 July 2016, Nominations & Appointments* (3/3)

Mr R H Knight (2/4) (Resigned 16 March 2016)

Vice-Chairman of the Board, Nominations & Appointments* (2/3), Finance & Estates (2/2)*, Remuneration* (1/1)

Mr S G Alder (6/6) Senior Independent Director, Governance* (2/2), Finance & Estates (4/4), Remuneration (1/1), Nominations & Appointments (3/3)

Ms L Ayres (5/6) Governance (1/2), Pastoral (1/3)

The Reverend Canon L M Barley (4/6) Pastoral (2/3)

Dr I Bishop (5/6) Education* (4/4), Remuneration (1/1)

Mr R J Bokros (5/6) Finance & Estates (0/0)

Mr M E Hartley (6/6) (Resigned 6 October 2016)

Governance (2/2)

Mr M S Hedges (2/6) Audit* (5/5), Remuneration (1/1)

Mrs M Holman (5/6) Education (4/4), Governance (2/2)

Mr B M Newman (4/6) Finance & Estates* (2/2)

Mrs J C Richardson (1/2) (Resigned 9 December 2015)

Mr P H W Southern (5/6) Finance & Estates (4/4), Nominations & Appointments (3/3)

Mrs P Pritchard (Appointed 29 June 2016)

Mr A Prince (Appointed 16 March 2017)

Charity Number 1096270

Company Number 4659710

Registered Address High Street Abbots Bromley Staffordshire WS15 3BW

Vice-President Rear Admiral Sir Robert Woodard

Key management personnel and executive officers

Senior Provost Director of Education Director of Finance and Company Secretary

The Reverend Canon B D Clover Mr C G Wright Mr M G Corcoran

Auditors Grant Thornton UK LLP Grant Thornton House Melton Street London NW1 2EP

Bankers Lloyds TSB Bank plc 1 Pride Hill Shrewsbury SY1 1DG

THE WOODARD CORPORATION LIMITED COMPANY INFORMATION

YEAR ENDED 31 AUGUST 2016

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Insurance Brokers/Providers Zurich Municipal Marsh Zurich House Capital House 2 Gladiator Way 1 to 5 Perrymount Road Farnborough Haywards Heath Hampshire West Sussex GU14 6GB RH16 3SY

Solicitors Farrer & Co Veale Wasbrough Vizards

66 Lincoln’s Inn Fields Orchard Court London Orchard Lane WC2A 3LH Bristol BS1 5WS

The schools in the Woodard group are:

Incorporated (Independent) Affiliated (Maintained)

Abbots Bromley School1

Ardingly College2

Bloxham School3

The Cathedral School, Llandaff4

Denstone College5

Denstone College Preparatory School at Smallwood Manor

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Ellesmere College6

Hurstpierpoint College7

King’s College, Taunton8

King’s Hall School, Taunton8

Lancing College9

The Peterborough School10

Prestfelde School, Shrewsbury11

Queen Mary’s School, Baldersby12

St James’ School, Grimsby13

Worksop College15

Worksop College Preparatory School at Ranby House

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The Bishop of Hereford’s Bluecoat School, Tupsley

Bishop Stopford School, Kettering

Bishop Stopford’s School, Enfield

The Bishops’ Blue Coat CofE School, Great Boughton

Crompton House CofE High School, Shaw

Dyson Perrins CE Academy, Malvern

King Solomon International Business School, Birmingham

St Andrew’s CE School and Sixth Form, Croydon

St Marylebone CE School, Westminster

St Olave’s Grammar School, Orpington

St Peter’s CofE Aided School, Exeter

S Peter’s Collegiate School, Wolverhampton

St Saviour’s and St Olave’s CofE School, Southwark

St Wilfrid’s CofE Academy, Blackburn

Trinity CofE School, Belvedere

Trinity School, Lewisham

Wren Academy, North Finchley

Woodard Sponsored Academies Associated (Independent)

Kings Priory School, Tynemouth16

The Littlehampton Academy16

St Augustine Academy, Maidstone16

St Peter’s Academy, Stoke on Trent16

The Sir Robert Woodard Academy, Sompting16

Alderley Edge School for Girls

Exeter Cathedral School

King’s School, Rochester

Overseas

Woodard Langalanga Secondary School, Gilgil, Kenya

Superscript number denotes company per note 14

Affiliated schools are maintained sector schools that have chosen to link themselves to Woodard for reasons of ethos and educational networking. Their results are not consolidated into these financial statements.

Associated schools are independent schools that are unable to be full members of Woodard but choose to link themselves to the group, also for reasons of ethos and educational networking. Their results are not consolidated into these financial statements.

Woodard Langalanga Secondary School is supported by, but not owned by Woodard.

A full list of Woodard companies and charities is provided in note 14.

THE WOODARD CORPORATION LIMITED DIRECTORS’ REPORT (incorporating the Strategic Report) YEAR ENDED 31 AUGUST 2016

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The directors present their report and financial statements for the year ended 31st August 2016 and confirm they comply with the requirements of the Charities Act 2011, including the Directors’ and Strategic Reports, under the Companies Act 2006.

REFERENCE AND ADMINISTRATIVE INFORMATION

The Woodard Corporation (Woodard, the Charity or the Company) was incorporated as a company limited by guarantee (registered number 4659710) in February 2003 and registered with the Charity Commission as charity number 1096270. Woodard is the holding company of the incorporated schools and sponsored academies shown on page 2. Woodard commenced trading on 1 September 2003 and took over most of the assets and functions of the unincorporated charity known as the Corporation of SS Mary and Nicolas (charity number 314291) during the year to 31 August 2004.

Details of all connected charities are shown in note 14.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Woodard was governed by Memorandum and Articles of Association dated 7 February 2003 and amended by Special Resolutions dated 10 March 2005, 6 July 2005 and 17 March 2010; these were replaced by Articles of Association adopted by Special Resolution on 20 March 2013. The original and revised Memorandum and Articles of Association of Woodard forbid the distribution of any income, which is to be applied solely towards the promotion of the charitable objects. References in this report will be to the clauses in the current Articles of Association, unless otherwise stated.

Governing Body

The members of the Woodard Board (the Board) are the directors and charitable trustees of the Company. The relationship between Woodard and the subsidiary schools (the incorporated schools) and the Woodard Academies Trust (WAT) is outlined in regulations developed for the purpose. The Board oversees the management of Woodard and formulates policy. The Board met six times during the year. In attendance at Board meetings are the Senior Provost, Company Secretary/Director of Finance, the Director of Education and a Minutes Secretary. The Board designated Mr S G Alder as the Senior Independent Director.

Recruitment and Training of Directors

Each incorporated school has a governing School Council comprising Woodard Corporate Fellows (the Fellows). The majority of the trustees of the WAT are also Fellows. The Fellows are the custodians of the Woodard ethos and are the guarantors for the company. Fellowship is open to the President and any other individual interested in promoting the objects of Woodard, whether or not they are a communicant member of the Church. In addition to the Fellows engaged on School Councils, there are up to forty other Fellows who are not attached to schools.

Together, the Fellows form the Corporate Chapter. It is the Corporate Chapter that elects the members of the Board, who are the trustees of Woodard itself, the names of whom are listed on page 1. The Board looks to ensure a mix of skills and, to this end, can co-opt up to six members on the basis of background, competence, specialist skills and Christian commitment. Board members are provided with induction training by the Chairman and staff and a wider programme of training events is organised by the schools themselves and Woodard. Woodard also encourages its Board members to attend events run by the Association of Governing Bodies of Independent Schools (AGBIS).

Where possible the directors consider that the skills and experience of the Board should comprise the following:

A director with a legal background.

A director with a financial/accounting background.

A director with education experience.

A director with senior managerial or business experience.


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A director with experience of equal opportunities or disability needs.

At least one female director and at least one male director.

An individual director may have one or more of these skills or attributes.

Volunteers

Directors are volunteers providing their time for free to support the governance of Woodard. Woodard relies on a wide range of volunteers in its schools and thanks all of them for their valuable input and insight.

Organisational Management

Woodard is governed by the Board which delegates responsibility for overseeing work to a number of committees listed below. Board membership of each committee is given on page 1; there are members of committees who are not on the Woodard Board, who are noted below, with the numbers in brackets indicating the meetings attended by each. The directors determine the general policy of Woodard. The incorporated schools hold all real estate and other property of the schools. Each School Council is responsible for running the schools, with delegated responsibility being held by the Headteacher and Bursar. Individual academies are supported by their Academy Councils which operate as sub-committees of the WAT. The School and Academy Councils are in some cases supported by a number of sub-committees.

Woodard employs three executive officers: the Senior Provost, the Director of Education and the Company Secretary/Director of Finance; these post holders report directly to the Board. The Articles allow for the President and Chairman to be paid an honorarium and this allows them to undertake their roles in ensuring the delivery of the Woodard strategy. The executive officers, to whom day to day operations are delegated, are the Key Management Personnel for Woodard, as listed on page 1.

Mr T D Fremantle stepped down as Chairman of Woodard during the year. The Board would like to acknowledge the enormous contribution made by Mr Fremantle who first became a member of the Woodard Board in 2010. He oversaw a period of significant change for Woodard and steps down having achieved a considerable amount to secure the group for the future. Mr R S Morse was appointed during the year to replace Mr Fremantle as Chairman, and the Board was delighted that he chose to accept the appointment following an extensive and rigorous search carried out with professional advisers. Mr Morse comes from a background in merchant and investment banking and is involved with a number of charities.

Mrs J C Richardson resigned as Chairman of the WAT and from the Woodard Board in December 2015. The Board would like to acknowledge the significant contribution that Mrs Richardson made during her tenure, particularly in relation to the consolidation of the WAT and development of the executive team. Mr M E Hartley took over as the Chairman of the WAT and steered the charity through a difficult period before handing over to Mrs P Pritchard in October 2016 when Mr Hartley stepped down from the Woodard and WAT Boards. The Board is very grateful to Mr Hartley for directing the WAT Board through the work necessary to allow academy growth to be resumed and for issues at two academies to be addressed.

Mr R H Knight retired from the Board at the Corporate Chapter in March 2016. The Board would like to acknowledge the enormous contribution made by Mr Knight who first became an elected member of the Woodard Board at its restructuring in 2003. He was a director of a number of Woodard subsidiaries and assisted a variety of Woodard schools in developing and delivering their plans. Mr Knight was the Chairman of the Finance & Estates Committee and the Vice–Chairman of Woodard. The Board thanks him for his work.

Nominations & Appointments Committee

Until October 2016, the Nominations & Appointments Committee, was responsible for oversight of appointments of Woodard Fellows and governors, meeting as required. The members of the Nominations & Appointments Committee were the Chairman, the Vice-Chairman and one other Board member shown on page 1. The Senior Provost was in attendance at committee meetings. From October 2016, the work of the committee is carried out by the whole Board, supported by the Senior Provost.


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Audit Committee

The committee’s responsibilities include overseeing arrangements for the audit of Woodard and subsidiary school companies and charities, and oversight of the audit of the WAT. The Audit Committee is responsible for monitoring the integrity of the annual financial statements of Woodard and any other associated formal announcements or returns relating to its financial performance, and for reviewing, and challenging where necessary, the actions and judgements of management in relation to Woodard’s financial statements before submission to, and approval by, the Board and before clearance by the external auditors. The committee also has to keep under review the effectiveness of Woodard’s internal financial controls and risk management systems and it reviews Woodard’s procedures for whistle-blowing and for detecting fraud.

The Audit Committee met five times during the year ended 31 August 2016. The Chairman, Mr M S Hedges, is the one Board member shown on page 1. The other members are Mr G C Lloyd (5/5) who has particular expertise in the fields of corporate governance and finance and, from 8 December 2015, Mr J N Christie (5/5) who has expertise in risk management and financial control. The Company Secretary/Director of Finance and the Woodard Accountant normally attend Audit Committee meetings. The committee also meets the auditors in private to discuss any relevant matters.

Education Committee

The Education Committee reviews academic performance at Woodard schools, monitors changes in the sphere of educational provision and makes recommendations to the Board on matters relating to delivery of education. It also acts as the primary link between the Board and the Woodard Heads Association (WHA).

The Education Committee met four times during the year. Dr I Bishop is the Chairman of the committee. The committee comprises the members shown on page 1, plus five co-opted members: Mrs E M K Phillips (3/4), Mr D R Levin (2/4), Mr R R Biggs (2/4), Mrs M Gibbs (4/4) and Mr C Calvey (2/4). The Director of Education and the Chairman of the WHA attend meetings of the committee. The committee and colleagues in Woodard were particularly saddened to hear of the death, during the year, of Mr D F Gibbs who was a member of the Education Committee. All in Woodard are thankful for the many contributions he made to enrich the educational life of Woodard, both at school (Ardingly College) and Woodard level.

Finance & Estates Committee

The committee is responsible for overseeing on behalf of the Board all financial aspects of the company and charity, to ensure short- and long-term viability, and to report back to the Board accordingly. It is also responsible for advising the Board as to the most appropriate future financial strategy for the organisation. It has to consider whether the draft annual financial statements are consistent with the management accounts reported during the year and it reviews the draft financial statements prior to consideration by the Audit Committee. The committee reviews and then recommends to the Board Woodard’s annual revenue and capital budgets and monitors performance in relation to the approved budgets. The committee also oversees the property development strategy and proposals made by individual schools, making recommendations to the Board, and it monitors the extent to which the incorporated schools plan their maintenance programmes for future years.

The Finance & Estates Committee met four times during the year. The Chairman during the year was Mr R H Knight, until he stood down as a director of Woodard. The Chairman is Mr B M Newman. The members during the year ended 31 August 2016 are shown on page 1. Meetings of the Finance & Estates Committee are attended by, the Company Secretary/Director of Finance and Woodard’s Accountant.

Governance Committee

Until October 2016, the Governance Committee oversaw development of appropriate policies, practices and procedures for governance. The committee was the driver of constitutional change for Woodard and for response to issues of public benefit, along with development of systems for appointing and training governors and Chairmen of School Councils. The Governance Committee met twice during the year and comprises the members as shown on page 1. The Company


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Secretary/Director of Finance is in attendance at the meetings. From October 2016 the work of the committee has been a Board activity.

Pastoral Committee

The Pastoral Committee has oversight of policies, practices and procedures for the pastoral, spiritual and emotional support of staff and pupils in Woodard schools, including provision of chaplaincy support. The Pastoral Committee met three times during the year. The members during the year ended 31 August 2016 are outlined on page 1 plus the Woodard Provosts: Right Reverend Dr R Ladds (2/3), Reverend Dr J Caperon (3/3), Reverend T A Parkinson (0/3) and Reverend Canon R B Ruddock (1/3). Reverend Canon G Lowson (1/1) resigned during the year.

Remuneration Committee

The Remuneration Committee determines the annual remuneration of Woodard’s executive officers and the honoraria of the President, Chairman and Provosts. Remuneration of all other staff directly employed by Woodard is determined by management. Remuneration of the Key Management Personnel is set after an individual appraisal, having regard to targets set, individual performance against those targets and, where available, comparative data. The Remuneration Committee met once during the year. The members during the year ended 31 August 2016 are shown on page 1.

Directors’ expenses incurred in attending meetings are met by Woodard.

Group Structure and Relationships

In the year to 31 August 2016, Woodard discharged its objects by establishing, maintaining or otherwise supporting 16 schools, incorporated within 15 charitable companies with the shares in these companies ultimately being owned by Woodard, and through sponsorship of five academies operated through its sister company and charity, the WAT. Note 14 provides details of connected charities and these are consolidated into these financial statements.

In addition there are 20 UK based schools, in the independent and state sectors, that are committed to following the ethos and objectives of Woodard’s Founder, the Reverend Canon Nathaniel Woodard. These schools are linked to Woodard through agreements of ‘affiliation’ or ‘association’, as set out in the governing documents. They are not consolidated into these financial statements.

Woodard Corporation directly sponsors five academies through the Woodard Academies Trust Limited, a sister company and charity (Exempt charity, Company No: 6415729). The WAT has its own Board and individual academies have Academy Councils which operate as sub-committees of the WAT. In line with Financial Reporting Standard (FRS) 102, Woodard believes it exerts a dominant influence over the WAT as the Memorandum and Articles of the WAT allow Woodard to appoint and remove the majority of the directors (the ‘sponsor directors’) and the two companies follow an agreed strategy. As a consequence, the accounts of the WAT are consolidated into these financial statements.

The members of the Woodard Board (the Board) are the directors and charitable trustees of the group called the Woodard Corporation (incorporated, academies, affiliated and associated). The Board oversees the management of Woodard and formulates policy and strategy. The Board has an executive working on its behalf.

In early January 2009 the teaching activities of Grenville College, a Woodard incorporated school, merged with a school owned by the Methodist Education Group and ceased trading. Details of the effect of discontinuing the operations can be found in note 35.

Employment Policy

We are an equal opportunity organisation and are committed to a working environment that is free from any form of discrimination on the grounds of colour, race, ethnicity, religion, sex, sexual orientation or disability. We will make reasonable adjustments to meet the needs of staff or pupils who are or become disabled.

We recruit and promote on merit and we help our employees to maximise their achievements through


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a programme of personal development. We have continued to provide employees with opportunities for training and staff development and engage with universities and other bodies to ensure that the employee intake is as broad as possible. Schools use a variety of tools to communicate with professional and support staff including newsletters and electronic communication including email and via the school’s website. The senior staff will often address staff meetings, and governors are available at school events.

Investment Policy and Objectives

The Articles of Association of Woodard and its subsidiary schools permit funds to be invested in such manner as the directors see fit, providing that such powers of investment are only exercised for the purpose of attaining the objects and in a manner that is legally charitable. The general policy is to preserve the capital value of investments and maximise the return and income on all investments. For the advanced fees scheme, the aim is to match the return on investments with the maturation profile of the related liability to provide schooling in future years.

CHARITABLE OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Within the objects, Woodard schools aim to create an environment to nurture children, to get the best from them and to allow them to develop and fulfil their potential. All Woodard schools provide pupils with a first-class education and a wide range of sporting and artistic opportunities. Woodard’s public benefit aim is that all pupils will be self-confident and desire to contribute to the wider community. In the furtherance of these aims, the Board and governors at all incorporated schools, as the charity trustees, have complied with the duty in s.17 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 under that Act.

Charitable Objects

The primary objects of Woodard, as set out in the Articles of Association, are ‘to promote and extend Education (including spiritual, moral, social, cultural and physical education) in accordance with the doctrines and principles of the Church through any or all of the following means:

establishing, maintaining or otherwise supporting schools which commit to develop and sustain a Christian environment centred on the Anglican tradition of the Eucharist and at which a fundamental importance is attached to the teaching of those principles;

promoting the efficiency and effectiveness of Woodard schools; promoting the use of the facilities of Woodard schools by the wider community’

The Charitable Objects are given focus through the adoption of a Mission and Vision for Woodard, and by describing the intended impact:

Mission

Woodard’s Mission is to provide a high quality education in an actively Christian environment for all. Woodard is:

An educational charity tasked with extending education in accordance with the principles of the Church.

A family of schools that, by sharing practice and doing things together, becomes more effective and efficient.

Working with the community promoting the use of the resources of Woodard schools.

Vision

Woodard’s Vision is to be the leading charitable provider of education in both state-maintained and private sectors, setting exemplary standards for teachers and governors, and preparing pupils to play a full role in society, recognising their responsibility for others and the uniqueness of all.

Intended impact

Woodard schools strive for the best all round education of every aspect of each individual; they ensure high standards of religious education; and they see themselves as communities working


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together for the benefit of all members, and of the Church and the nation. They are strong Christian foundations which adhere to catholic belief as found in the Church, to Christian worship focused in the Eucharist, and to the care of each individual and the whole school community particularised in the ministry of the Chaplain.

Primary objectives

The primary objectives of Woodard to fulfil Woodard’s Mission and Vision, and to deliver the impact are described in the Woodard Group Strategic Plan 2014 as being that Woodard and its schools will:

Develop Professional Capital and as a consequence will be known for its leading professional capital and development opportunities, attracting the best staff and governors.

Enhance the Recognition of Woodard and as a consequence will build a reputation for academic and educational excellence, and to be known for doing something unique that is considered exceptional.

Increase Collaboration Between Schools and all schools in the group will be empowered to collaborate and share best practice.

Strategies to achieve the primary objectives

In support of the three main objectives of the 2014 strategic plan the following were the objectives for the year:

To recruit a new Chairman and to prepare the necessary routines and practices to service a fully non-executive Chairman and Board

To continue to develop and broker collaboration between Woodard schools and other organisations

To ensure that a strong and constructive working relationship develops quickly between the Woodard and WAT Education teams

To ensure that the first phase of Woodard hub projects achieve a strong level of engagement from all Woodard schools

To deliver added value to Woodard schools through the development of a common reporting system and through development of the procurement initiative

To deliver necessary compliance reports, particularly in relation to carbon reporting and saving

To deliver a second high quality research report at a carefully planned and targeted audience

To complete the planning for and work towards the delivery of a Woodard celebration event in 2017

To successfully introduce the new Statement of Recommended Practice (SORP) and Financial Reporting Standard 102 (FRS102) in the 2015/16 financial statements

To continue to handle issues and challenges in an efficient manner and to manage the processes to support the Board in fulfilling their responsibilities towards individual Woodard schools

To continue to work to deliver maximum benefit from sales of excess assets at previous Woodard schools

Principal Activity

The principal activity of the group of schools that comprise the Woodard Corporation, as defined in the Articles of Association, is to promote and extend education, and with this as a focus, 2015/16 has been another successful year overall, showing a rise in pupil numbers at the incorporated independent schools but a small decline in numbers at Woodard academies.


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Pupil numbers in Woodard incorporated schools and Woodard academies were:

Boys Girls Day Boarding Total 2015

Woodard incorporated schools 4,580 3,550 5,951 2,179 8,130 8,026

Woodard academies 2,706 2,599 5,305 - 5,305 5,442

TOTAL 7,286 6,149 11,256 2,179 13,435 13,468

Schools are academically strong but the overall aim is to provide a holistic education and there is a full programme of activities in the fields of music, arts and sport with some notable results being achieved. Woodard also has formal links to independent and maintained sector schools through associated or affiliated status. With over 18,000 pupils in the associated and affiliated schools, Woodard schools educated over 31,500 children in the year to August 2016.

Woodard and its schools provide a significant benefit to the public. The Board and each of the schools strive to ensure that measures of public benefit are appropriate, and that significant sections of the public are not excluded from the opportunity to benefit from the education and facilities offered by Woodard schools due to the need to pay a fee. In addition to significant provision of bursaries and other forms of financial support, Woodard schools provide a wide range of opportunities for community benefit and their facilities and events are often open to all. Further detail of the public benefit offered by the schools is included in the financial statements of each school and in the section entitled ‘Review of Achievements and Performance for the Year’ below.

It is a key requirement of evidencing public benefit that any private benefit to individuals or elements of the charity will be incidental to the charity's objectives. An example of private benefit may be the reimbursement of travelling expenses for trustees attending training courses: any private benefit to individuals or elements of Woodard is incidental to delivery of the charitable objectives.

All Woodard schools seek to provide a very high standard of education, validated in the academic results, measurements of added value and through external inspection. The schools offer a broad curriculum and educate children with a wide range of ability. The aim of all Woodard schools is to support pupils to reach their potential in all areas of their activity. This may be in academic subjects but could just as easily be reflected in success in art, drama, sport, music or dance. Woodard schools produce well-rounded individuals who are able to make a positive contribution to society.

Parents of pupils at Woodard incorporated schools often make significant sacrifices to pay the fees. In educating over 7,470 UK based pupils in Woodard incorporated schools parents help to relieve the state of the financial burden of paying for their children’s education. The saving to the public purse is estimated to have a value in the last year of over £45.5 million (2015: £45.9 million)

Unlike schools in the maintained sector, Woodard incorporated schools are unable to recover the £8.0 million in VAT incurred on goods and services.

Bursaries & Scholarships

Woodard schools aim to provide opportunities for a wide range of people to access benefits from the charity. Woodard independent schools provide substantial means tested bursaries in cases of hardship where a pupil’s education and future prospects would otherwise be at risk or to those whose parents are on such low incomes that they would otherwise not be able to benefit from the educational opportunities provided. Bursary awards range from 1% to 100% remission of fees. Schools have hardship funds that supplement bursary awards to pay for co-curricular activities, equipment and school trips. The availability of all such awards for fee assistance is advertised on school websites and in prospectuses. In the past year Woodard incorporated schools provided bursaries to 1,918 children (2015: 1,963), the total value of which was over £11.7 million (2015: £10.6 million), representing 8.0% of gross fees (2015: 7.5%).

Scholarships are used to ensure that Woodard schools are able to maintain the high standards in all areas of provision. Woodard schools provide an excellent all-round education, adding value in educating children and providing pupils from all walks of life with an opportunity to benefit from a Woodard education.


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The purpose of scholarship awards is to recognise high academic potential or the ability to excel in co-curricular activities. Some awards carry specific conditions imposed by the original donors. The progress of pupils receiving scholarships is reviewed at least annually to ensure their progress is in line with their abilities. In many Woodard incorporated schools it is the policy to reduce the financial value of these awards over time as compared to the value of means tested bursaries. Scholarships are mostly awarded with a fixed remission of fees of between 5% and 80%, though some are above this level. Where further assistance is required, scholarship awards may be supplemented by a means tested bursary. Parents making enquiries about possible entry are provided with a description of the criteria for bursaries and scholarships. The value of scholarships in the year was £7.4 million (2015: £6.8 million).

A number of Woodard schools provide financial awards to pupils who are members of cathedral choirs. The concessions on fees reflect the commitment of our schools to supporting the choral work of the cathedrals with which they are associated. Woodard schools also provide support through concessions to staff and other classes of parents including clergy and forces.

Woodard schools provided unfunded concessions, comprising the bursaries and scholarships discussed above and other remissions, totalling £22.7 million (2015: £20.9 million) or 15.5% (2015: 14.9%) of gross fees.

Woodard schools include details of the various concessions in their prospectuses and on their websites. All parents making enquiries about possible entry are provided with a description of the criteria for bursaries and scholarships. In most cases the budget for means tested bursaries is allocated using a ‘needs blind’ approach as far as possible, whilst giving priority to the continuity of education of those pupils already at the school. All criteria and policies relating to concessions are kept under review and are updated when necessary.

STRATEGIC REPORT

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

As noted earlier in this report, Mr R S Morse was recruited and appointed as Chairman following an extensive and rigorous search carried out with professional advisers. The Chairman and the Board are working on streamlining governance mechanisms and simplifying the committee structure. Woodard continued to develop relations with external organisations, most notably the Schools, Student and Teachers network (SSAT), with whom Woodard created research publications in 2015 and 2016. Woodard and its schools have also been looking at the possibility of expansion abroad and work has taken place to establish the possible market. King’s College in Taunton already has links to a school in Rohtak in India, and during the year a further link was developed to a school in Doha, working with an external organisation. All links are designed to bring benefit to Woodard schools either through direct co-operation, or through development of new income streams for the group.

As described in more detail under ‘Significant Events’, in November 2015 the WAT received warning letters from the Regional Schools Commissioner outlining failings at two Woodard academies. With financial assistance from the Woodard Corporation, and working with Woodard and schools in the group, the WAT responded to the letters with a new strategy for school improvement which was successfully delivered during 2015/16 and continues into 2016/17. Joint initiatives and co-operation between Woodard and the WAT are becoming a key activity, and methods of working are being explored to bring about a tighter relationship between the sister charities. There have also been significant changes in the composition of the WAT Board with a number of trustees, including the Chairman, retiring during the year.

Woodard hub school projects have continued and been further developed during the year. The three projects are:

Woodard’s Teaching and Learning Professional Development Programme led by Wren Academy

Wren Academy is one of the leading schools in the UK with a national reputation for the quality of its teaching and learning. The project is for Wren to lead on creation and delivery of development programmes for teachers, senior and middle leaders aimed at providing the attendees with skills and tools to improve their teaching. Wren also seeks to provide bespoke consultancy, workshops and conferences and a forum for sharing of ideas via a dedicated portal.


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Woodard’s Schola Programme led by St Olave’s Grammar School

St Olave’s Grammar School has built an enviable national reputation for scholarship and for pupils’ attainment, including accessing Oxbridge courses and medical school. The project is to share the school’s expertise in supporting pupils aiming for the highest levels of achievement in exams, who are thinking of applying for Oxford or Cambridge universities, or for courses in medicine. Support includes provision of additional resources along with workshops, courses and conferences for pupils and staff.

Woodard Centre for Independent Learning led by Lancing College

Lancing College is one of the leading schools in the country in terms of one-to-one mobile device adoption and the school is proud of its high-speed fully wireless campus and the skill with which staff and pupils use their iPads to add impact and independence to their learning. The Woodard Centre for Independent Learning seeks to bring Lancing’s central values to the construction of a network of professionals across Woodard schools, exploring in partnership how they can develop free and rigorous thought and learning from pupils.

A number of Woodard schools and individuals have benefitted from the hub schools programme during the year either through direct involvement in the project, through training and courses, through online involvement and mentoring or through a consultancy project at their school.

In addition, the Director of Education has been further developing a leadership programme for staff at Woodard schools looking to progress to senior positions in Woodard schools. During 2016 the Government issued a ‘Green Paper’ entitled ‘Schools That Work for Everyone’. The Director of Education and the Woodard Education Committee consulted Woodard Heads and others in order to formulate a constructive and detailed response to the consultation.

Woodard has been working with a consultant on development of a common finance system across all independent Woodard schools. The aim of the project is to bring about financial reporting on a common system, with common training and reports and consistent use of the application. The project is being undertaken with a view to implementing the system most commonly used at Woodard schools, as this is seen as being the least disruptive way to bring about the change needed. Since October 2016 Woodard has employed a procurement manager to work on group procurement across Woodard independent schools. The aim is to extend this to Woodard academies and the maintained sector, though various hurdles relating to public sector procurement have to be overcome. The main projects during the year have involved the tender for group insurance which includes such activities as motor and private health insurance, as well as buildings and public and employers’ liability insurances. Significant savings have been made in this area when the insurance cover and premiums are compared on a like for like basis. Other procurement activity has been in child protection checks, the purchase of energy and business rates reviews. Activities in progress at the year end included a group fleet buying strategy, waste management, purchasing of wholesale food and work on a recruitment strategy.

We have continued to work on compliance with government initiatives, including necessary reporting under the Carbon Reduction Commitment (CRC). The CRC is effectively a tax on carbon usage and cost Woodard, as a group, a total of nearly £220,000 for the year. In addition, Woodard was required to comply with the Energy Savings Opportunity Scheme reporting requirements during the year. The CRC is to be phased out in 2019 but another government initiative, the Apprenticeship Levy, will begin in 2017 and is likely to cost Woodard schools around £500,000 per year, though credits should be available for appointing apprentices. Work will start on a group strategy to make maximum use of apprenticeship credits made available as part of this scheme. Like all charities, Woodard has had to adapt accounts to suit the new Statement of Recommended Practice (SORP) following the introduction of Financial Reporting Standard 102 (FRS102). Woodard and the schools have been working to ensure that the transition to the new SORP is effected with minimum disruption. It is a credit to Woodard school bursars and finance teams that this project has been given the priority necessary to ensure a smooth transition.

Woodard continues to devote resources to applied research in education. Working with the SSAT, in May 2016 Woodard published ‘Schools for Human Flourishing’, a series of school case studies demonstrating how maintaining academic standards whilst focussing on well-being, confidence and


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relationships creates an education for flourishing. Contributors included the Archbishop of York, John Sentamu, the Right Reverend Stephen Conway, the Bishop of Ely, and Peter Green, the Headmaster of Rugby School. The book has been well received. The book, is free to download by visiting the Woodard website at http://www.woodard.co.uk/research/ and clicking the picture icon.

In pursuit of increasing the collaboration between schools and the opportunity for networking Woodard has been working towards a celebration in February 2017 at the Symphony Hall in Birmingham entitled ‘A Thousand Voices of Woodard’. The Senior Provost has been working with an external choir master and a project team to plan for the event and to ensure that schools are able to benefit. The aim is for the event to be as inclusive as possible, within the limits imposed by the scale and size of the venue. The Senior Provost has also been working on support for Chaplaincy within Woodard schools, and more widely. This includes the Chaplaincy Conference and links to external organisations established to provide support to chaplains. The weakness in this support is the lack of a coherent national strategy and operational method by which the educational needs of chaplains can be met.

The Board has continued to provide support to Abbots Bromley School which has undertaken a process of reorganisation, part of which included the creation of an international school; AB International. The new international school was launched in September 2015 and provides foundation courses for pupils with varying abilities in the English language, preparing them for entry into sixth form education. We have also continued to work on protecting Woodard’s interests in previous Woodard school sites. During the year this has involved work on the legacy issues at Bolitho School Penzance, which entered into voluntary liquidation in the summer of 2016, and in land in Harrogate, previously the playing field of a Woodard school. In March 2015, Harrogate Borough Council gave outline planning permission for development of the land owned by Woodard and Queen Mary’s School, Thirsk. The work to finalise the sale has been considerable, and there is no guaranteed timescale for completion due to the complications of the arrangements, and the fact that we have to rely, at least in part, on other landowners.

As outlined in note 1(c), the Woodard Board has prepared and approved these financial statements on the going concern basis in the absence of having final signed and audited financial statements for Abbots Bromley School Limited. Woodard and Abbots Bromley are in the process of restructuring the financing of the school. In the opinion of the Woodard Board the absence of final signed and audited financial statements for Abbots Bromley does not lead to the group financial statements being materially misstated. On this basis the Woodard Board do not consider that there are any material going concern uncertainties for the group as a whole for a period of at least twelve months from the date of signing the accounts.

Academic Results

The educational performance of our Woodard schools was mostly excellent, as demonstrated by the public examination results.

Woodard incorporated schools achieved an 82% (2015: 85%) pass rate at grades A* to C including English and mathematics for GCSE, with the five academies averaging over 55% (2015: 46%) for the same measure. At A Level, 64% (2015: 65%) of grades were A* to B at the incorporated schools and 50% (2015: 36%) graded A* to B at the Woodard academies. Overall results are above the national average for all schools and the performance of the independent schools is in line with the average performance of the sector. As noted above, the Woodard schools aim to provide a rounded education to help the pupils to make their way in adult life and schools are non-selective. A very large majority

of pupils move on to higher education and achieve their first choice destination.

Two Woodard schools provided the IB examination in the sixth form. The average points score across all candidates at the two schools was 37 (2015: 28) with all bar one candidate achieving a diploma for the exams.

Measures of success at Woodard preparatory and junior schools vary from school to school but all include some form of examination and ability assessment. All schools successfully prepare pupils for entry to senior independent schools with a significant number gaining academic awards at scholarship or exhibition level to major independent schools. Pupils performed well in Common Entrance examinations.

http://www.woodard.co.uk/research/


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Woodard affiliated and associated schools are some of the best state and independent schools in the country. Affiliated schools achieved an average pass rate of 74% (2015: 71%) at grades A* to C including English and mathematics for GCSE and averaged 53% (2015: 52%) A* to B at A Level, with the associated independent schools achieving near to 86% (2015: 83%) for grades A* to C including English and mathematics at GCSE and 64% (2015: 64%) grades A* to B at A Level.

Significant Events

Progress on the new King’s College in India continues to be made. The first group of about 50 pupils arrived in August 2016. A second project to open King’s College Doha has been developed in association with EduReach Education who are specialists in development of schools abroad. The school opened to pupils on 18 September 2016 and provides for children from 3-11. The next phase is to prepare a secondary option from 11-18 over the next two years. As with the Indian project, King’s College is not making any financial investment in the project but will, in time, receive an income from it for provision of support.

Following on from opening the new boys’ boarding house, New Mason House, representing a £4m investment in boarding, Worksop College submitted its masterplan for moving the junior school to the main Worksop College site as soon as practically possible. As a first step, Y7 & Y8 moved back to the main Worksop College site for the first time in 60 years, occupying a dedicated and newly refurbished Portland House.

St James in Grimsby was delighted to be the only school in the whole of North East Lincolnshire invited to attend the National Armed Forces Day event in June 2016. The event received national media coverage, and the school was prominently placed opposite Rt. Hon David Cameron MP and other dignitaries viewing the proceedings from ‘the Knoll’.

Following an Ofsted visit in March 2016, The Littlehampton Academy was taken out of Special Measures. As recorded in the 2014/15 financial statements, the school entered Special Measures following letters from the Regional Schools Commissioner in November 2015. With financial assistance from the Woodard Corporation the WAT responded to the letters with a new strategy for school improvement which was successfully delivered during 2015/16 and into 2016/17. The WAT also received a Pre Warning letter in respect of St Peter’s Academy and it similarly entered Special Measures. Despite considerable progress being achieved and significant improvements in delivery and results, St Peter’s Academy will be ‘re-brokered’ (transferred) to City Learning Trust in Stoke on Trent in 2017, though no date has yet been confirmed. The outcomes for both schools in public examinations were positive with both achieving improved results in 2015/16. On 1 April 2017 Polam Hall School in Darlington joined the WAT; Polam Hall was previously an independent school before converting to become a ‘free school’.

The re-brokering of St Peter’s will have a financial impact on the WAT, and the trustees needed to consider if this could threaten its financial viability. The trustees considered five year budgets and financial projections of the WAT for the remaining four academy schools. After making appropriate enquiries of the executive analysis, the trustees have a reasonable expectation that the WAT has adequate resources to continue to meet its financial obligations for the foreseeable future. For this reason the WAT continues to adopt the going concern basis in preparing its financial statements. The financial impact of the addition of Polam Hall was considered as part of the due diligence process before the final commitment was made. The WAT trustees are of the opinion that the addition of Polam Hall will have a positive impact on the ability of the WAT to support academy provision in the North East, linking with the WAT academy at King’s Priory School in Newcastle.

Improving Facilities

Woodard schools are always investing to improve their facilities and to ensure that they are up to date environments in which to teach pupils to the highest standards. Thanks to the generosity of an alumnus, King’s College constructed a new art studio which opened in the autumn of 2016. At the preparatory school, King’s Hall, a project to build a new science faculty commenced with relocatable classrooms being moved and the groundwork completed. The laboratories should be occupied in good time for use from September 2017. Lancing has completed a £2million extension to Handford House adding further accommodation for girls including extra beds, new bathrooms and kitchen, and common room with views over the South Downs. Lancing has also been given support for a new equestrian centre, including from South Downs National Park committee. It is expected to be open at some point during the Lent Term 2017. The centre will provide livery, riding lessons and hacking and


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initially there will be around 15-20 horses on site. Lancing also received permission to re-develop the site of the preparatory school in Hove.

Worksop College continued with its development and refurbishment programme including the completion of the new boys’ boarding house at a cost of approximately £4 million. This work also included the refurbishment of an external building to house Y7 and Y8 pupils following the school’s strategic decision to relocate these year groups to the main Worksop College site, from Ranby House preparatory school. At Denstone work started on the new ten classroom teaching block in April 2016 with a target completion date of March 2017. The building of a new Memorial Hall at The Cathedral School, Llandaff, is progressing well. The Memorial Hall will offer space for sports, dining and assembly for the primary school. At King’s Priory School, the new reception block for the First School and other improvements were completed. These developments allowed the school to increase pupil numbers. The Middle School block, new food technology, art and modern foreign languages classrooms, changes to girls’ changing rooms, refurbished science labs and new sixth form block are also now complete and in operation.

The girls’ houses at Ardingly were restructured and two new boarding houses created through refurbishing the former upper sixth house. A new girls’ day house was also created. Two new classrooms were also developed for the preparatory school in the main building, continuing the strategy of using as much of this inspirational space for teaching as possible. Ardingly and Ellesmere installed new biomass boilers, with Ellesmere’s being used to heat the swimming pool and gymnasium, and photo voltaic panels were sited at the sports hall and in eight staff houses to provide electricity to the school. Ellesmere also took advantage of a rare opportunity to purchase an additional 11 acres of land adjoining the campus at Tetchill. Hurstpierpoint continued its programme of development including £1.4million on an extension to the science block; £932,000 on an extension to the classroom block; £425,000 on refurbishments and repairs to the school’s original listed buildings. On a considerably smaller scale, St James in Grimsby created a Raspberry Pi suite.

Arts, Music and Drama

Woodard schools are outstanding places for the study of all forms of art, music, drama and dance. Groups are formed to support activity in a wide range of areas of music, not just in chapel. Woodard schools provide chamber choirs, men’s choirs, brass, flute, saxophone and clarinet groups, percussion ensembles, string quartets, folk, rock, swing and jazz groups and school orchestras among many other musical activities. The choristers at Ellesmere were awarded the prize for the best Youth Choir in the Chester Music Festival and the choirs in Key Stage Two at Queen Mary’s had another excellent year, again winning their class in the Wharfedale Music Festival. At Ardingly, the choirs from across the school joined forces for evensong at St. Paul’s Cathedral and the Ellesmere choir performed at Notre Dame Cathedral in Paris. Other locations for Woodard choir performances included Leicester and Peterborough Cathedrals and Shrewsbury Abbey. Hurstpierpoint hosted an African Music concert in the summer term and a huge summer concert in the Chapel. Specific tuition in Woodard schools allows many pupils to achieve scholarships, for example three pupils at Prestfelde gained instrumental scholarships to senior schools including Shrewsbury School’s top music scholarship. Increasing participation more widely is one challenge for Woodard schools and development of the Voces 8 partnership at Worksop College allows hundreds of children from local maintained schools to get involved. By the end of the academic year, 77% and 71% respectively of juniors and seniors were registered as playing a musical instrument at the Cathedral School, Llandaff. Pupils at Woodard schools are members of numerous national groups including the National Children’s Choir and the National Youth Orchestra, National Youth Jazz Orchestra, National Children’s Orchestra, National Children’s Chamber Orchestra and the National Youth Sinfonia, the National Youth Orchestra of Wales, the National Youth Choir of Great Britain and the National Children’s Choir of Great Britain. No fewer than five students at Denstone College Preparatory School at Smallwood Manor were invited to join the National Children’s Choir of Great Britain. This is a remarkable achievement when it is taken into consideration that the choir only selects 40 children of primary school age to join each year.

Drama and dance form significant artistic elements at Woodard schools. The drama pupils at Bloxham took The Invisible Man to the Edinburgh Fringe festival. Several girls from Lancing preparatory school were chosen to take part in a dance workshop over three days with The Ballet Rambert. Hurstpierpoint again participated in the local arts festival, the Hurst Festival, and fifth form drama scholars performed Our Town by Thornton Wilder. This production was taken to a number of


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local preparatory schools. In the second year of the Hurst in Rep programme, seven plays took place over two weeks, in October and January. The varied productions in the year included The Lion King at Sir Robert Woodard Academy and King’s Hall and Beauty and the Beast at Lancing preparatory school, Oliver at The Peterborough School, Joseph and The Amazing Technicolour Dreamcoat at The Cathedral School, Llandaff and Gosforth’s Fete by Alan Ayckbourn at Ellesmere College. The main production at Bloxham was Lost Boys, involving over 100 pupils, who were also involved in the script writing. Following their performance in this play, eight pupils were selected for the National Student Drama Festival in Scarborough. Y6 at King’s Hall in Taunton produced a splendid collection of Roald Dahl stories to mark the centenary of his birth and on the 400

th anniversary of Shakespeare’s death,

Woodard schools were involved in productions including Othello, Twelfth Night and A Midsummer Night’s Dream. Prestfelde took part in The Shakespeare Schools Festival at Theatre Severn enabling the cast to perform on a professional stage, as well as take part in a workshop run by professional actors. Many pupils also performed at Shrewsbury Castle to celebrate Shakespeare’s anniversary. Queen Mary’s performed a musical adaptation of The Tempest to mark the anniversary and pupils at the preparatory school at St James in Grimsby performed Shakespeare Rocks.

Ellesmere College worked with the Arts Council of Great Britain to aid it in the development of a new, higher, standard of the Artsmark accreditation: Artsmark Platinum. Ellesmere is the first and, so far, only independent school in the UK to be accredited at Artsmark Platinum level. Ellesmere also hosted a summer Art Exhibition attracting exhibitors and visitors from all over the West Midlands and beyond. This year the guest feature for the exhibition was the artistic works of the TV personality, Harry Hill. Ardingly also hosts ArtsFest with talks and lectures from scientists to philosophers including Brother Guy Consolmangno from the Vatican and Eugenie Von Tunzelmann, who worked on the special effects for the film Interstellar. The festival continued to be supported by Dame Judi Dench and was endorsed by Hollywood film director Christopher Nolan and Clair Fox from the Institute of Ideas. King’s Hall now hosts a Literature Festival and Arts Week welcoming visitors and arranging numerous trips and productions. King’s College pupils enjoyed the experience of exhibiting their art work in a commercial gallery in Exeter, the Brook Gallery. Pupils from Denstone again entered the Rotary Young Photography Competition, winning various awards across the various age ranges. Bloxham pupils participated in a ceramics workshop led by a local potter who was involved in the stunning Tower of London remembrance project. He helped Bloxham pupils make their own poppies; 79 remain in the school grounds to remember the Bloxhamists who died fighting during World War 1.

Sport

It is impossible to list all of the sports and sporting achievements at Woodard schools. Sports offered range from the more traditional football, cricket, hockey, tennis, lacrosse, netball, athletics and swimming, to sports as varied and exciting as triathlon, canoeing, kayaking, climbing, mountain biking and mountain walking, river swimming, wakeboarding, wind sailing and surfing. Other activities cover such sports as golf, horse riding, judo, croquet and table tennis and pupils take part in cross fit, and ‘jazzercise’ to keep them fit for all. In what may be termed minority sports, Woodard schools often nurture current and future champions.

With its concentration on providing sporting ‘academies’ and with a wide range of sporting successes, Ellesmere has achieved World Academy of Sport accreditation, one of only a very small number of schools in the UK to achieve this level. To add to this accreditation, Ellesmere was awarded the Sports Award at the Annual Education Business Awards.

In cricket, the U15 boys’ cricket team at King’s College Taunton won the national competition at the end of their season, beating Solihull School in the final whilst the U13, U12 and U11 teams at King’s Hall were either county champions or runners up, with eight boys selected to play for Somerset at their age group. The U12 team won the Bunbury Cup and will compete for the National title. Two boys left Lancing at the end of their upper sixth studies to pursue academy contracts at Leicestershire CCC, with one signing a professional contract, and a third Denstonian made his 1st class debut in as many years. Tom Haines of Hurstpierpoint made his first class debut for Sussex CCC and also represented England at U17 level and 2015 leaver, George Garton, was selected for the England Lions side that played against Sri Lanka. The U15 girls side at Hurstpierpoint were national schools runners-up, county champions in the softball competition and runners-up in the county indoor competition.


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The Ardingly 1st XI Football Team achieved the ‘Double Double’ for the first time in Independent School Football history by winning the Elgin Southern League and the Independent Schools Football Association (ISFA) National U18 Cup two years in a row. The girls’ senior football team at King’s College also won the ISFA national competition, beating Repton in the final. Three boys from Lancing represented Worthing FC in the Ryman Youth League, with one playing in the FA Youth Cup against premier league Middlesbrough. The same player left the upper fifth on a Football Scholarship to the University of the Cumberlands in Kentucky. The U16 Rugby VII’s team from the Cathedral School, Llandaff won the Dubai College Invitational VII’s and nine boys from Denstone have played for Leicester Tigers U18s with two going on to represent England at U18 level. The 1

st XV at Bloxham

School reached the semi-final of the National Vase Trophy. At Ellesmere more than 30 players achieved representative honours in rugby at county level or above, with international representation for the England U16 and the Swiss U18 teams.

The potential for success at a wide range of sports is a particular plus of being at a Woodard school. Twenty two pupils at the Cathedral School Llandaff represented Wales at various levels and in various sports. A pupil at The Peterborough School qualified four horses for the Royal International Tournament, one of the most prestigious Equestrian events in the country, whilst another secured 4th place at the Pony Club National Eventing Championships and an excellent second place in the Royal International qualifying event. An equestrian at Ellesmere visited Spain winning the Young Horse Grand Prix in November. A pupil at The Peterborough School continues to represent the England U16 squad at golf and an Ellesmere golfer was selected for national representation at a match in Spain. Prestfelde have the IAPS U12 National Champion in the same sport. Peterborough have a particular strength in indoor rowing with every age category finishing in the top three for their event at the National Indoor Rowing Championships, and the Y8 Boys and Y9 Girls being National Champions. Pupils amassed two gold medals, ten silver medals and five bronze medals.

Ellesmere is particularly strong in swimming with its own swimming team, the Titans, competing at a national level. Thirteen members of the team had Olympic qualifying times and attended Olympic trials in Glasgow. Two swimmers were selected for the Great Britain Team in the European Junior Championships with three being selected for the World Junior Open Water Championships. Four Titans represented England in swimming competitions in Majorca, Italy and France. In the British Summer Championships, which are not age limited, the Titans finished top of the national medal table. Ellesmere pupils also excel at tennis where the senior boys were runners up in the Aegon National Tennis Finals and the senior mixed team were also finalists. A lower school pupil was Welsh Champion in her age group and was selected as one of two players of her age to represent Wales in the Home Nations International Tournament. A new school record was set at Worksop College when a current lower fifth pupil won the annual Dorm Run for the fourth successive year; this has never before been achieved in the race’s 100 year history. Queen Mary’s School had five representatives in the U13 Preparatory School Athletics National finals.

In other sports, a sixteen year old pupil at Ellesmere was selected to represent the senior Adult Great Britain Team at shooting in a match against the USA and was the youngest participant by some considerable distance. One pupil from Lancing won the overall individual long distance competition having out-shot every other cadet in the UK at 600 yards, and another was placed first in the 500 yard match. Two of Ellesmere’s pupils were capped for the U18s Welsh Hockey Squad, and two pupils from Peterborough earned the right to advance to the National Fencing Championships in Sheffield. In the Biathlon, one pupil from Lancing qualified for the national finals held at the London Aquatics Centre and finished eleventh overall. Also at Lancing, a lower sixth girl reached number seven in the world at U17 level for squash and also won England Caps throughout the season. Finally, a Y10 pupil at Peterborough was selected by the Kennel Club for Team GB at the European Agility Junior Championships in Slovakia in the summer.

Wider Education

Woodard schools offer extended educational opportunities to all pupils and the education pupils receive is second to none. Schools believe that education is not all about the classroom, and that pupils learn as much from activities beyond school, and through interaction with pupils from other schools and faiths, and from different backgrounds and cultures. The schools and their staff also support education in a wide range of different settings.

Undoubtedly the highlight of the year at Ardingly was the development of a Solar Car. The Ardingly


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Team were the first in Europe to design, build and race a solar-powered vehicle the 3,020km from Darwin to Adelaide across Australia in the October 2015 Bridgestone World Solar Challenge. They entered the Cruiser class which is looking into how solar-powered cars can become a practical mode of transport. Entering the race was the culmination of three years’ work by some 80 Ardingly College pupils aged 11-18 who have been involved. Abbots Bromley has developed strong links with Keele University as one of their Senior Professors of Internationalisation has joined the School Council. The school also hosted an international exchange of preparatory school students from China for two weeks.

Lancing created the Lancing College Centre for Educational Research, encompassing the Woodard Centre for Independent Learning, part of the Hub Schools project, a strategic initiative funded by Woodard. The initiative provides a regional centre of excellence for the promotion of the teaching and learning of independent learning skills and for dissemination of this good practice to schools in the local area and beyond. Prestfelde has introduced a number of new clubs to aid development. These include archery in ‘Little Prestfelde’; yoga in the middle school and Aikido throughout all year groups. In the senior school, Politics, Spanish and Minecraft have proved popular additions for both girls and boys. The school is attempting to set up the Bushcraft programme for all middle and senior school pupils in order to widen the curriculum for those pupils. Most Woodard schools have a Combined Cadet Force (CCF) contingent, and Worksop College is part of the CCF Expansion Scheme, supporting the establishment of a CCF at Dukeries Academy and a second expansion project in Mansfield.

The profile of mathematics, and as a consequence the results in that subject, at Sir Robert Woodard Academy have benefitted from the link with the prestigious Ricardo, a leading global engineering company based in the locality of the academy. This has led to success for pupils applying to study mathematics at a number of universities. The Littlehampton Academy offers courses in conjunction with further education colleges, for example technical skills days, catering, engineering, and motor vehicle studies. At King’s Priory School more than 20% of pupils take additional music lessons and the outdoor education programme is extensive and makes full use of the environment near the school offering surfing and diving. Pupils at King’s Priory also take part in the Duke of Edinburgh scheme which is more traditionally offered at Woodard independent schools.

Trips, events and visitors add to the variety of the education offered to pupils at Woodard schools. Sixth form politics pupils at Denstone visited Westminster and history pupils visited Auschwitz. Oscar winner Serena Armitage, an old girl of Queen Mary’s School, was guest speaker at Speech Day; Cokie Van der Velde, the Barclays Bank Woman of the Year, talked to the girls about successful women in business and John Sentamu, the Archbishop of York, conducted a service as part of his pilgrimage. Matthew Thorne, a lower sixth pupil at King’s College, won the highly-regarded Vellacott History Prize, a national essay competition run by Peterhouse, Cambridge, with his essay on child labour in Victorian times.

Outreach

Woodard schools also aim to extend the education they offer to provide support to other schools and to national initiatives. King’s College has taken the lead in working with the charity Physics Matters in setting up a local support group for physics teachers from state schools, linking teachers from academies, comprehensive schools and independent schools. The first Science Week in the Michaelmas Term which was attended by 150 primary school pupils. The governors at Ellesmere support the Headmaster’s involvement as the Chairman of Governors at St. Martin’s Academy, a free school in Chester; the Headmaster is also Chairman of North West Academies Trust, a growing multi-academy trust based in Chester.

Hurstpierpoint continues to be involved in the Inspire Teaching School Alliance which is a group of like-minded schools working in partnership with two local universities to provide teachers with the skills and experience to become outstanding practitioners at any stage in their career. The group has a particular focus on providing a pathway into teaching and Hurstpierpoint hosted a training day and placement. Hurstpierpoint also works with The Littlehampton Academy on revision sessions for GCSE and A Level and works with other local schools in areas such as the teaching of ‘business’ and of gifted and talented pupils. Prestfelde has continued to organise an early years cluster of schools supporting and learning from each other in the delivery of early years provision. This project includes moderation of children’s attainment throughout Shropshire. Queen Mary’s has informal partnerships


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with the local primary schools and provides expertise in canoeing and other Outdoor Education activities to help enrich their educational provision. St James in Grimsby continues its formal partnership with Grimsby Institute, whereby the younger sibling from abroad may be educated and board at St. James’ School, and the older sibling may attend the Institute to study and be resident there.

Ardingly has a looser arrangement with the local primary school, St Peter’s in Ardingly Village whereby the school provides use of facilities especially the swimming pool, and hosts joint events including a celebration of Commonwealth Day. Lancing has been supporting Sir Robert Woodard Academy as part of the Woodard Centre for Independent Learning with Lancing and SRWA staff co-operating with those from other state and independent schools in the development of a meta-cognition curriculum. Sir Robert Woodard Academy pupils attend events at Lancing on preparation for university study and Oxbridge and university admissions. Denstone provides classroom teaching support to some pupils from Painsley School in Cheadle. Like all Woodard schools, Denstone participates in an internship programme for graduates, helping them to gain experience both inside and outside the classroom. The Cathedral School, Llandaff provides opportunities for past and present university students to gain practical sports coaching experience as part of their training course, and a number of language students visit the school to gain experience in teaching languages for GCSE and A levels.

Community

Woodard schools are at the heart of their communities. They are often the largest local employer, they provide sports facilities for those in their local areas; halls and studios for performances; rooms for meetings; musical and theatrical productions; venues for community events including weddings; opportunities for education and training and a host of other activities. Sports facilities are of such high quality that they are used by professional clubs and national teams. Brighton and Hove Albion and Arsenal Football Club make use of pitches at Woodard schools, and England Hockey and Cricket have made use of sports facilities. Many Woodard schools have swimming pools and these are used by the communities around the school for recreational and training purposes. The local Beavers and a newly formed youth group make use of the pool at Prestfelde as does the local primary school, and Denstone provides ‘Learn to Swim’ teaching lessons for local children aged between two and eight, with over 300 children participating.

Woodard schools support a wide range of outreach activities. Lancing runs an outreach programme for community service every week. Projects include work with the young and the elderly; pupils assist with class activities at a nursery school in Southwick run by West Sussex County Council and at an inner city church school in Brighton. Pupils at the Cathedral School, Llandaff regularly visit a local primary school to assist younger children with their reading skills and pupils local to Prestfelde make use of the excellent forest school facilities, as they do at King’s Hall in Taunton. Denstone allows the local cadet forces and Uttoxeter Rifle Club to use their outdoor range, and eighty associate members from the local community use the golf facilities at the school. The Lancing College Farm Project hosts a large number of supervised visits from local primary schools, and this has been added to by visits from secondary and middle schools in East and West Sussex, along with special educational needs assisted schools. With the support of the Mid Sussex Older Persons’ Council Ardingly has been running a drop-in computer support session every Monday lunchtime for older members of the local community. Pupils explain how to use popular programmes and social media.

Woodard schools often provide facilities and host events not provided elsewhere in their communities. Prestfelde hosted a lacrosse development day to increase participation and competition. Eighty girls from six schools attended the day and three professional English Lacrosse coaches together taught lacrosse skills and new mini games, assisted by Prestfelde’s own teachers. The grounds at Worksop College are made available to a range of public service bodies including the Nottinghamshire Police Service, the Worksop Sea Cadets and the Worksop Air Training Corps. The regular and reserve Armed Forces also use the College grounds and facilities for training. Ellesmere College continues to act as a venue for cricket matches in the Birmingham League and facilities at King’s College were used by Amici Choir, Orchestra South West and the Somerset Opera Company, among others, with all performances being open to the public. A crammer course make use of classroom and boarding houses as part of the Easter revision school at St James School, in Grimsby and the BTEC level 2 in Public Services has been a particular success at Hurstpierpoint with 14 pupils gaining a distinction or merit. Community schemes include recycling, woodland conservation, farming, community service


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and Hurst’s in-house crèche. Lancing is a member of Adur and Arun Farmers Group which is a co-operative to try and promote farming via education, joint working and networking. Bloxham School again hosted the Bloxham Festival of Faith and Literature, which was sponsored by The Church Times.

Charitable Activities

Charitable activity at Woodard stretches far beyond the school gates. Schools support projects in countries in Africa, Asia and South America as well as national charities in this country, and those in their local community. Projects take place in Uganda, Gambia, Ghana, Kenya, Tanzania, Malawi, Nepal, India, Madagascar, South Korea, and Bolivia among many others. Denstone pupils spent four weeks on a ‘True Adventure’ trip to Bolivia to help rebuild part of an old Inca Trail and repaint buildings at an impoverished school. Pupils and staff also support schools in South Africa and visits are arranged to help in development of educational projects. Abbots Bromley also supports a South African charity, the South African Schools Project. Abbots Bromley send two sixth form students to work in the school. This year, one of the students from South Africa also visited Abbots Bromley for two weeks.

The annual Ellesmere Snowdon Run consists of a relay race covering 75 miles from Ellesmere to the summit of Snowdon. Among others, runners raised funds for Ellesmere’s international charity Monduli in Tanzania providing support scholarships to enable individual pupils to go to a secondary school. The Ardingly in Africa projects, are specifically located in Kenya and Gambia. Ardingly has a long association in Kenya actively supporting the Ndogo primary school, and the Kariandusi School Trust, which was subject of the Woodard 2011 anniversary project. Lancing organised the Malawi Walk where the school and families walked twelve miles across the Downs to raise money in support of five boys (Aubrey, Moses, Norman, Blessings and Wilson) sponsored through their secondary education by the school.

Closer to home, Lancing continues to fund 100% means-tested support to 13 pupils. Since 2014 the school has developed links with Trinity Church of England School in Lewisham allowing one pupil per year to join in the lower sixth form on a fully funded place. Typical of all Woodard schools, Prestfelde supported a range of charities including Harry Johnson Charity, Sport Relief, the NSPCC, Children in Need, the Royal British Legion, Bishop’s Ordination Fund/Kenyan Ironman Challenge, the British Red Cross, Race for Life and Severn Hospice. Among many others, St James supported Help for Heroes, the R.N.L.I. and St. Andrew’s Hospice, King’s Schools in Taunton assisted the Dorset and Somerset Air Ambulance and the Peterborough School supported SHINE.

Fundraising Performance

Significant progress has been made this year in fundraising and the ongoing work of raising voluntary funding for the school. Grants and donations totalled £3.508 m (2015: £5.167 m), including restricted income donations of £2.309 m (2015: 2.986 m)

Investment Performance Against Objectives

Woodard’s investments are managed by UBS Wealth Management and, in the opinion of the advisers, the portfolio has produced an exceptional level of absolute return in the year. The investment performance is measured against targets agreed with the investment advisers and performance has been slightly below the benchmark, in a cautious mix of investments. The majority of the investments are held for the long-term and represent amounts yet to be spent on education.

FINANCIAL REVIEW

Results for the Year

The results for the year are set out in the attached statements of financial activities on pages 27 to 28.

Many individual schools achieved their budgeted surplus and the overall financial performance of Woodard is satisfactory. Woodard looks to all schools to make an operational surplus sufficient to allow appropriate re-investment in their facilities. Like other independent schools, some Woodard schools are finding it difficult to achieve a level of surplus necessary to fund all development and significant sums are borrowed. The Board has reviewed financial information from all Woodard


20

schools and for the group as a whole and is confident in its assessment that the group will be able to meet its debts for a period of at least 12 months from the date of signing the financial statements. Woodard currently provides loans to support two Woodard schools at the date of these financial statements. The loans are on commercial terms to those schools, are for the short-term and are coupled with a plan for recovery of amounts loaned. In one case there are concerns as to the school’s ability to continue in the absence of support from Woodard. The Board is content that the issues at the school are not material to these consolidated financial statements and no adjustments have been made to reflect the possible future financial position of either school.

As noted earlier in this report, the Regional Schools Commissioners have suggested it may be in the interest of the WAT to have one less academy and the intention is that St Peter’s Academy will be ‘re-brokered’ (transferred) to City Learning Trust in Stoke on Trent in 2017. The re-brokering of St Peter’s would have a financial impact on the WAT, and the trustees have considered five year budgets and financial projections of the WAT for the remaining four academy schools and concluded that they have a reasonable expectation that the WAT has adequate resources to continue to meet its financial obligations for the foreseeable future. For this reason the WAT continues to adopt the going concern basis in preparing the financial statements.

Conditions in the sector continue to be subject to changing trends but pupil numbers and demand appear to have stabilised in most areas, particularly in preparatory schools. Pressure on pupil numbers has been an economic phenomenon not a demographic one. Parents have been choosing to delay sending their children to independent schools as they have lacked the confidence in their own continued employment. This has been coupled with the restricted availability of funding from banks meaning that, in many areas, parents have been unwilling or unable to take on debt. As at the end of 2015/16 pupil numbers are up at all bar three Woodard schools, all of which are outside the South East. There is growth in both Boarding and Day numbers and some Woodard schools have never had more pupils. All schools have plans to address their market and to ensure their continued stability. Pupils numbers in the academies are down following a number of years of poor performance and difficult relations with the Department for Education. This fall in numbers has a particularly harsh effect on academies as their funding per pupil has been cut at the same time. It is a difficult problem to resolve as being below capacity on numbers puts pressure on income, and this can lead to pressure on results. The cycle thus repeats itself. As noted in this report, it is believed that intervention in 2015/16 and planned support for future years will break the cycle and results in 2016 were improved.

Significant investment in capital assets is still taking place across Woodard schools and more is planned. All Woodard schools are aware of the market conditions and are planning to maintain their standards and pupil numbers in the coming years. Surpluses in charitable independent schools are re-invested in education either directly through employment of teaching or support staff, or indirectly through capital development or investment to create bursaries. For schools there is a balance between surpluses, movements in cash and investments in assets, including particularly buildings.

Woodard and many Woodard schools provide a pension to support staff under the terms of the Pensions Trust Growth Plan. As a result of this pension scheme being under funded, Woodard and the participating schools are committed to contributing to a recovery plan. During the course of the year a total of £270,000 was contributed to the recovery plan and the recognised liability under the plan increased by £613,000 in aggregate, with this value being recognised in the Statement of Financial Activity (SOFA). Further details can be found in note 27.

As reflected in this report, when aggregated, the net outgoing resources were £(125,000) (2015: net incoming resources of £8.1 million), as shown on page 27. A number of schools are investing cash into new buildings whilst others are retaining it and delaying construction until they are more certain about the economy, continuing to preserve their cash as described above. The overall movement in liquid cash was to decrease from £10.05 million to £7.4 million. More detail is given in the cash flow statement on page 30. This movement was after the significant investment in fixed assets of £19.0 million (2015: £14.2 million).

Reserves Level and Policy, and Financial Viability

All significant reserves are held at school level, or by the WAT, for the benefit of the individual incorporated schools and academies. The reserves policy is therefore dictated by the needs of the schools and academies with a general guideline that schools should be looking to generate reserves backed by liquid assets equivalent to between a half and a whole term’s expenditure. Schools and


21

academies will also hold reserves that are designated as being essential for future capital development or which are tied up in the fixed assets and working capital of the schools themselves. The aim is to budget so as to provide sufficient working capital to meet the present needs and future development requirements of the school or academy without the need to have recourse to sales of tangible fixed assets. Consolidated funds decreased by £4.6 million (2015: increase of £7.4 million) to £183.7 million (2015: £188.3 million), as shown in note 23. The primary driver of the decrease in consolidated funds is the additional pension provisions made in the year. Pension provisions stand at £12.69 million, having been £7.6 million in 2015. Further details can be found in note 26.

The consolidated unrestricted reserves are invested primarily in tangible fixed assets which are all used for direct charitable activities. The funds available are, in the opinion of the Board, adequate to meet future obligations on a fund by fund basis. Wherever possible advance fee funds are segregated from the other funds.

Tangible fixed assets are controlled by the school companies, the WAT and Woodard for their own use. Impairment reviews have been undertaken and, in the directors' view, properties are not impaired below their recorded cost in the financial statements. Tangible fixed assets are recorded in the financial statements at book value; the aggregate market value of the assets would be higher. Investments (other than endowment assets) are held to create income and capital growth pending utilisation.

Woodard schools and academies have invested substantial sums into new school buildings in recent years and have a continuing programme of refurbishment, development and investment to maintain excellent teaching facilities for pupils. In common with most charity groups involved in independent and maintained sector education, and due to current and previous investment in fixed assets and support for education, the free reserves are at a negative balance of £(36.609) million (2015: £(36,215) million). Free reserves describe a charity’s ability to meet short- to medium-term charitable commitments from ‘liquid’ net assets. Calculation per the SORP definition excludes fixed assets used in the operation of the charity whilst including the liabilities associated with long-term borrowing to fund their purchase. The Board keeps the level of the free reserves under review and, at the balance sheet date, the Board considers that the strength of Woodard’s balance sheet, the stable cash flow from pupil rolls and government grants, the ongoing popularity of the schools and the available banking facilities that can be called upon if need arises mitigate the risk of a shortage of liquid funds.

PRINCIPAL RISKS AND UNCERTAINTIES

The Board is responsible for the identification and management of risks. The major risks to which the company is exposed, as identified by the directors, have been reviewed and systems or procedures have been established to manage those risks. Detailed examination of the risks and establishment of controls to mitigate them is delegated to the executive officers and the process is overseen by the Audit Committee on behalf of the Board. A formal review of the risk management processes is undertaken annually.

The principal risks to which Woodard is exposed include those affecting protection of pupils and security and preservation of charitable assets both now and in the future. Significant risk areas are:

the market in which Woodard and the schools operate is highly competitive and developments in education are monitored to ensure that pupils always receive a first class, holistic and varied educational experience in Woodard schools

Woodard strives to ensure that all staff are able to work in a safe and supportive environment and policies, procedures and training in human resource management and health and safety help to ensure that Woodard meets expectations

Woodard and its schools operate in a highly regulated sector, including matters of child protection and appropriate professional advisers are appointed to ensure that Woodard can keep up to date with all requirements; school, academy or individual membership of bodies such as the constituent members of the Independent Schools Council (ISC) also ensure that we have access to up to date information and support and monitoring of communications from DfE and others, coupled with regular updates to policies, ensures all schools and academies are able to be compliant

Woodard and its schools operate in an increasingly litigious environment and appropriate professional advisers are appointed and insurance purchased using specialist brokers and


22

advisers to ensure that Woodard can keep up to date with all requirements and meet all challenges

all organisations face difficult economic conditions and directors and senior managers in Woodard and all schools keep abreast of economic conditions locally, nationally and internationally to identify trends and develop plans to address issues

as identified in this report, there is an ongoing risk to the group from the sudden loss of schools either through catastrophic closure or external intervention

The key controls used by Woodard and Woodard schools include:

formal agendas and minutes for all meetings of the Board and committees terms of reference for all committees comprehensive strategic planning, financial forecasting, budgeting and management accounting established and identifiable organisational structures and reporting lines which are regularly

reviewed formal and informal links between the individual elements of the Woodard group including regular

meetings, involvement in committees and executive liaison use of key performance indicators and appraisals for individual staff members comprehensive formal written policies clear authorisation limits vetting procedures, as required by law, for protection of the vulnerable appointment of appropriately qualified professional advisers

Under the regulations established between Woodard and its schools, each school is required to plan strategically having regard for risk. Schools provide the Board with regular updates including details of their principal strategic objectives and the activity to achieve those objectives. Schools also record their significant achievements and update Woodard on their short-term plans.

The strategy for the development of academies under the WAT is discussed between the Woodard Board and that of the WAT and the WAT is able to nominate two members of the Woodard Board.

Financial Risk Management Objectives and Policies

Woodard and its schools use financial instruments, other than derivatives, comprising loans, cash and other liquid resources and various other items such as trade debtors, creditors and finance lease arrangements that arise directly from their operations. The main purpose of these financial instruments is to provide working capital and raise finance for Woodard’s operations.

The main issues arising from Woodard’s financial instruments are liquidity risk and interest rate risk. Woodard directors and those in the individual schools adopt policies for managing each of the risks and these are summarised below:

Liquidity risk – Woodard and its schools seek to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs by negotiating adequate facilities from banks and other lenders

Interest rate risk – Woodard and its schools finance their operations through a mixture of retained surpluses and bank and other borrowings; the exposure to interest rate fluctuations is managed by the use of both fixed and floating facilities

FUTURE PLANS

As mentioned earlier in this report, the Board finalised their most recent Strategic Plan in 2014. All Woodard Strategic Plans are reviewed on an annual basis and the Board confirms that the objectives remain valid. The primary objectives described in the Woodard Group Strategic Plan 2014 are that Woodard and its schools will:

Develop Professional Capital and as a consequence will be known for its leading professional capital and development opportunities, attracting the best staff and governors.

Enhance the Recognition of Woodard and as a consequence will build a reputation for academic and educational excellence, and to be known for doing something unique that is considered exceptional.


23

Increase Collaboration Between Schools and all schools in the group will be empowered to collaborate and share best practice.

In order to meet our objectives we will focus on the following in 2016/17:

Developing the work of the three Woodard Training Hubs with special focus on face to face events and development of web based resources

Sustaining the professional learning community including a training course for the aspirant Headship cohort in Autumn Term 2016 and Spring Term 2017

Design and develop an online Leadership Programme of professional development resources for Heads and Senior Leaders

Create a professional network (financial, legal, curriculum development, inspection models, governance etc.) to support Woodard schools’ ambitions overseas

Nurture and develop existing international links, particularly possible links to develop opportunities abroad

Work with individual schools on developing their overseas strategy, including advice on market research and execution

Development and publication of “Establishing an International School: Getting it right from the start”, in support of the international objectives set out above

Consultation with all schools on Government policy and working with schools to ensure (a) Woodard is always relevant to their needs, (b) new opportunities for collaboration and growth are identified

Updating of the Woodard risk management processes including development of a new Woodard Risk Management policy, method and assessment and consideration of the impact of this process on development of future strategic objectives

Manage the successful sale of land, where possible, to ensure maximum value for Woodard and, when relevant, consider introduction of an investment committee

Work towards delivery of the project for creating a Woodard consolidated finance system and roll out to schools

Deliver a successful event in 2017 – ‘A Thousand Voices of Woodard’ Continue development of the support network for Chaplains

DIRECTORS

The directors who served during the year, and the committees of which they are members, are shown on page 1. None of the directors has any beneficial interest in the company. Under the terms of the Articles, and as disclosed in note 10, the President and the Chairman are remunerated for their work on Woodard matters and are trustees of Woodard. The remuneration of the President and Chairman reflects their contribution to the continuing successful delivery of the Woodard strategic plan and is decided by an independent Remuneration Committee.

AUDITORS

Grant Thornton UK LLP, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with section 487(2) of the Companies Act 2006 unless the company receives notice under section 488(1) of the Companies Act 2006.


24

DIRECTORS’ RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the director’s report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and group for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and then apply them consistently;

observe the methods and principles in the Charities SORP (FRS 102);

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and,

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company and group will continue in business.

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

The directors confirm that:

so far as each director is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and

the directors have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the Board of Directors of The Woodard Corporation on 25 May 2017, including, in their capacity as company directors, approving the Directors’ and Strategic Reports contained therein, and signed on its behalf by:

R S Morse CHAIRMAN [Signed 26

th May 2017]

THE WOODARD CORPORATION LIMITED INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS THE WOODARD CORPORATION LIMITED YEAR ENDED 31 AUGUST 2016

25

We have audited the financial statements of The Woodard Corporation Limited for the year ended 31 August 2016 which comprise the consolidated statement of financial activities, the company statement of financial activities, the consolidated and charitable company 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), including FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland.

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 its members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective Responsibilities of Directors and Auditor

As explained more fully in the Directors' Responsibilities Statement set out on page 24, the directors are responsible for the preparation of the 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 Ethical Standards for Auditors.

Scope of the Audit of the Financial Statements

A description of the scope of an audit of financial statements is provided on the Financial Reporting Council's website at www.frc.org.uk/auditscopeukprivate.

Opinion on Financial Statements

In our opinion the financial statements:

give a true and fair view of the state of the group’s and charitable company’s affairs as at 31 August 2016 and of the group’s and charitable company’s incoming resources and application of resources, including the group’s and charitable company’s 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 Matters Prescribed by the Companies Act 2006

In our opinion the information given in the Directors' Report (including the Strategic Report) for the financial year for which the financial statements are prepared is consistent with the financial statements.

http://www.frc.org.uk/auditscopeukprivate

THE WOODARD CORPORATION LIMITED INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE WOODARD CORPORATION LIMITED YEAR ENDED 31ST AUGUST 2016

26

Matters on Which 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 by the parent charitable company or returns adequate for our audit have not been received from branches not visited by us; or

the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit. Richard Shaw Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants London [Signed 30

th May 2017]

THE WOODARD CORPORATION LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income and Expenditure Account) YEAR ENDED 31 AUGUST 2016

27

Notes Unrestricted Funds

Restricted Funds

Endowed Funds

2016 2015

£’000 £’000 £’000 £’000 £’000

Income and endowments from:


School fees receivable 2 124,279 (16) - 124,263 119,682

Funding for academies’ educational operations

- 30,135 - 30,135 30,625

Ancillary trading income 3 7,253 937 - 8,190 8,269

Other trading activities

Non-ancillary trading income 4 5,543 - - 5,543 5,682

Investments

Investment income 5 107 38 17 162 222

Bank and other interest 6 196 7 54 257 180

Voluntary sources

Grants and donations 7 1,199 2,309 - 3,508 5,167

Other incoming resources 1,874 - - 1,874 8,690

TOTAL INCOMING RESOURCES

23 140,451 33,410 71 173,932 178,517

Expenditure on:

Raising funds

Non-ancillary trading 3,812 - - 3,812 3,514

Financing costs 9 592 - - 592 1,188

Bank interest 795 - - 795 837

Investment management 53 5 5 63 37

Fundraising and development 1,125 - - 1,125 223

TOTAL DEDUCTIBLE COSTS 6,377 5 5 6,387 5,799


Education and grant making 133,148 35,083 71 168,302 164,600

TOTAL EXPENDITURE 8 139,525 35,088 76 174,689 170,399

Realised (losses)/gains on investment assets

13 139 39 29 207 74

Unrealised (losses)/gains on investment assets

13 314 68 43 425 (112)

Net income/(expenditure) 1,379 (1,571) 67 (125) 8,080

Transfers between funds 23 (1,632) 1,732 (100) - -

Other recognised gains/(losses)

Pension scheme actuarial losses 26 (728) (3,747) - (4,475) (715)

Net Movement in funds for the year

(981) (3,586) (33) (4,600) 7,365

Fund balances at 1st September 107,081 77,916 3,266 188,263 180,898

FUND BALANCES AS AT 31ST AUGUST

106,100 74,330 3,233 183,663 188,263

All amounts relate to continuing activities. All recognised gains and losses in the current and prior year are included in the statement of financial activities. The notes on pages 31 to 80 form part of these financial statements.

THE WOODARD CORPORATION LIMITED COMPANY STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income and Expenditure Account) YEAR ENDED 31ST AUGUST 2016

28

Notes Unrestricted Funds

Restricted Funds

Endowed Funds

2016 2015

£’000 £’000 £’000 £’000 £’000

Income and endowments from:


Ancillary trading income 3 23 - - 23 22

Other trading activities

Non-ancillary trading income - - - - -

Investments

Investment income 5 28 - - 28 44

Bank and other interest 6 83 - - 83 78

Voluntary sources

Grants and donations 7 2,359 - - 2,359 1,647

Other incoming resources 916 - - 916 883

TOTAL INCOMING RESOURCES

3,409 - - 3,409 2,674

Expenditure on:

Raising funds

Non-ancillary trading - - - - -

Financing costs 9 64 - - 64 69

Bank interest 4 - - 4 17

Investment management - (1) 5 4 11

Fundraising and development - -

TOTAL DEDUCTIBLE COSTS 68 (1) 5 72 97


Education and grant making 1,659 46 - 1,705 1,537

TOTAL EXPENDITURE 8 1,727 45 5 1,777 1,634


13 71 4 10 85 56


13 50 13 (10) 53 (68)

Net income/(expenditure) 1,803 (28) (5) 1,770 1,028

Transfers between funds 23 - - - - -

Other recognised gains/(losses)

Pension scheme actuarial losses 26 - - - - -

Net Movement in funds for the year

1,803 (28) (5) 1,770 1,028

Fund balances at 1st September 2,305 209 20 2,534 1,506

FUND BALANCES AS AT 31ST AUGUST 4,108 181 15 4,304 2,534

All amounts relate to continuing activities. All recognised gains and losses in the current and prior year are included in the statement of financial activities. The notes on pages 31 to 80 form part of these financial statements.

THE WOODARD CORPORATION LIMITED CONSOLIDATED AND COMPANY BALANCE SHEETS AS AT 31ST AUGUST 2016

29

Note Group Company 2016 2015 2016 2015 £’000 £’000 £’000 £’000 FIXED ASSETS Tangible assets 12 225,691 213,932 775 775 Securities Investments 13 6,808 6,575 206 228 Fees in Advance scheme investments 13 1,636 2,111 1,636 2,079 Investment in subsidiaries 13 - - 2 2

234,135 222,618 2,619 3,084

CURRENT ASSETS Stock 808 886 - - Debtors 15 8,041 10,158 1,945 1,871 Cash at bank and in hand 32,749 31,795 1,407 28

41,598 42,839 3,352 1,899 CURRENT LIABILITIES Creditors payable within one year 16 (44,562) (36,951) (825) (1,159)

NET CURRENT (LIABILITIES)/ ASSETS

(2,964) 5,888 2,527 740

TOTAL ASSETS LESS CURRENT LIABILITIES

231,171 228,506 5,146 3,824

LONG TERM LIABILITIES Creditors payable after one year 17 (32,019) (30,479) (826) (1,275) Provisions for liabilities 27 (2,799) (2,144) (16) (15) TOTAL NET ASSETS EXCLUDING PENSION LIABILITY

196,353 195,883 4,304 2,534

Net pension liability 26 (12,690) (7,620) - -

NET ASSETS 183,663 188,263 4,304 2,534

REPRESENTED BY: UNRESTRICTED FUNDS 23 106,100 107,081 4,108 2,305 RESTRICTED FUNDS 23 74,330 77,916 181 209 ENDOWED FUNDS 23 3,233 3,266 15 20

183,663 188,263 4,304 2,534

The financial statements were approved and authorised for issue by the Board on 25 May 2017 and signed on its behalf by R S Morse [Signed 26

th May 2017]

CHAIRMAN Company registration number 4659710 The notes on pages 31 to 80 form part of these financial statements.

THE WOODARD CORPORATION LIMITED CONSOLIDATED CASH FLOW STATEMENT YEAR ENDED 31ST AUGUST 2016

30

2016 2016 2015 2015 Notes £’000 £’000 £’000 £’000

NET CASH INFLOW FROM OPERATING ACTIVITIES 28 15,142 9,870

RETURNS ON INVESTMENT AND SERVICING OF FINANCE

Investment income 419 402

Interest payable and other finance costs (1,450) (2,062)

(1,031) (1,660)

CASH FLOW FROM INVESTING ACTIVITIES

Purchase of tangible fixed assets (18,967) (14,196)

Proceeds from sale of tangible fixed assets

1,918 8,169

Investment income - 39

(17,049) (5,988)

Payment for purchase of investments (1,810) (4,354)

Uninvested cash (increase)/decrease 396 (294)

Proceeds from sale of investments 2,288 2,267

874 (2,381)

CASH FLOW FROM FINANCING ACTIVITIES

(2,064) (159)

Advance fee contracts

New contracts 3,276 4,649

Payment of fees (3,837) (4,409)

(561) 240

(DECREASE)/INCREASE IN CASH FOR THE YEAR

(2,625) 81

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

(Decrease)/increase in cash (2,625) 81

Net funds at 1 September 10,053 9,972

Net funds at 31 August 29 7,428 10,053

CASH AND CASH EQUIVALENTS

Continuing activity 9,795 12,407

Discontinued activity 35 (2,367) (2,354)

Net funds at 31 August 29 7,428 10,053

THE WOODARD CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST AUGUST 2016

31

1. ACCOUNTING POLICIES

The principal accounting policies, all of which have been applied consistently throughout the year and in the preceding year are:

a) Basis of Accounting

The accounts of the group have been prepared under the Companies Act 2006 and in accordance with the Statement of Recommended Practice for Charities (‘SORP (FRS102)’) and with applicable UK Accounting Standards. They are drawn up on the historical cost accounting basis except that property and share investments held as fixed assets are carried at fair value.

The Woodard Corporation meets the definition of a public benefit entity under Financial Reporting Standard (FRS) 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The preparation of financial statements in conformity with FRS 102 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Further details are provided in note 34, and in the accounting policies for depreciation of fixed assets, and for bad debts.

b) Reconciliation with previous Generally Accepted Accounting Practice

In preparing the accounts, the directors have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 the restatement of comparative items was required. Details are given below and in note 36.

At the date of transition in applying the requirement to recognise liabilities arising from employee benefits, a liability was recognised for accrued holiday pay entitlement for employees. The initial liability recognised at the date of transition was for the holiday entitlement carried forward and for the entitlement arising in the year which was due but not taken. The initial liability was for £398.

At the date of transition there is a requirement to recognise the liability to contribute to a recovery plan in respect of membership of the Pensions Trust Growth Plan and the Independent Schools Pension Plan. More details are provided in note 27. The initial liability recognised at the date of transition was £2.8 million. No other restatements were required.

c) Going Concern

The accounts have been prepared on a going concern basis. The Woodard Board reviews the financial information for the company and the group, and considers whether the group and company are a going concern for a period of at least 12 months from the date of approval of the accounts. After making enquiries, the directors have a reasonable expectation that the group company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the Annual Report and financial statements.

The Woodard Board has prepared and approved these financial statements on the going concern basis in the absence of having final signed and audited financial statements for Abbots Bromley School Limited. The draft financial statements of Abbots Bromley are, however, included in the consolidation forming the basis for these group financial statements. In the opinion of the Woodard Board the absence of final signed and audited financial statements for Abbots Bromley does not lead to the group financial statements being materially misstated for the following reasons:

The Woodard Board has assessed the potential impact to users of the group financial statements of material misstatements in revenue, net assets and movement in funds for the Draft Financial Statements of Abbots Bromley, and concluded that the risk of an impact on economic decisions on the users of the Woodard group accounts is low;


32

The Woodard Board has reviewed the draft financial statements for Abbots Bromley School Limited and is satisfied that, but for the matters discussed below, the financial statements could be signed by the Board of Abbots Bromley School Limited;

The Woodard Board has also reviewed the plans, budgets, forecasts and cash flow forecasts for Abbots Bromley and made appropriate enquiries of the school Board and executive;

Woodard and Abbots Bromley are in the process of restructuring the financing of the school to ensure that funding will be available to it for a period of at least twelve months from the date that the Abbots Bromley financial statements are signed.

It is anticipated that this process and assessment will be completed in the few weeks after approval of these financial statements, that the financial statements of the school company will be approved as a going concern by the Abbots Bromley Board, and an audit opinion will be sought. On this basis the Woodard Board do not consider that there are any material going concern uncertainties for the group as a whole for a period of at least twelve months from the date of signing the accounts.

d) Group Accounts

The financial statements consolidate the financial statements of the company and all its subsidiary companies, charitable trusts and funds with all inter-company balances being eliminated. Entities are consolidated where Woodard exercises overall control either through ownership of shares or through having common directors with a common objective. Accounting policies are consistently applied between group companies.

e) School Fees Receivable and Similar Income

Fees receivable and other educational income are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions by the school, but include contributions received from restricted funds for scholarships, bursaries and other grants.

Fees in Advance Scheme Contracts are those fees received in advance of education to be provided in future years under a specific contract. The fees are either held as investments in interest bearing assets until taken to income to match liabilities in the term when used, or refunded, or they are held within the unrestricted reserves of the school. Any surplus of assets over liabilities is held within the fund as a buffer.

Debts are provided for if not recovered within one term. Estimating amounts to provide against recovery of debts is a matter of judgement.

f) Ancillary and Non-Ancillary Trading Income

Ancillary trading income represents amounts from activities to generate funds within the charitable objects for example, school shop sales, coaches to and from school and school trips. Non-ancillary trading income represents amounts from activities not directly related to the charitable objects, for example lettings of school facilities out of term time and rental from spare school buildings. Income from these activities is recognised in the SOFA when the goods are sold or services provided.

g) Voluntary sources, Grants and Donations

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

Voluntary income for general purposes is accounted for as unrestricted and is credited to the General Reserve. Where the donor or an appeal has imposed trust law restrictions, voluntary income is credited to the relevant restricted fund and incoming endowments are accounted for as permanent trust capital or expendable trust capital, according to whether the donor intends retention to be permanent or not.

Gifts in kind are valued at estimated open market value at the date of gift, in the case of assets for retention or consumption, or at the value to the school in case of donated services or facilities.


33

h) Expenditure

Expenditure is accrued as soon as there is a contractual obligation or a liability is considered probable, discounted to present value for longer term liabilities. Expenditure is allocated to expense headings either on a direct cost basis or apportioned according to time spent. The irrecoverable element of VAT is included with the item of expense to which it relates. Bad debts are provided for in accordance with the group bad debt policy.

The cost of refurbishing and converting existing buildings is written-off in the year in which it is incurred except where the useful life has been extended.

i) Finance and Other Costs

Other costs include amounts accrued in accordance with the terms of Fees in Advance Scheme Contracts.

j) Pension Costs

Woodard and its schools participate in the Teachers' Pensions scheme, which is an unfunded government scheme, and the Pensions Trust scheme and the Independent Schools’ Pensions scheme, both of which provide benefits based on final pensionable pay. The funds of the schemes are separate from those of Woodard and its school companies, although the companies’ shares of the schemes cannot be identified as the schemes are multi-employer schemes, and so the pension costs are accounted for as defined contribution schemes. Woodard and some school companies also contribute to other defined contribution pension schemes for non-teaching staff.

Woodard and some Woodard schools offer membership of the Pensions Trust Growth Plan or to the Independent Schools’ Pensions Scheme to employees other than the full-time academic staff. The Pensions Trust Growth Plan and the Independent Schools’ Pensions Scheme are multi-employer pension schemes where the scheme assets are pooled for investment purposes and cannot be attributed to individual employers. Benefits are paid from the total scheme assets. They are in most respects money purchase arrangements, but have some guarantees. As a result it is not possible or appropriate to identify the assets and liabilities of the schemes which are attributable to group companies, though, due to the guarantees inherent in the scheme, the companies remain potentially liable for a debt on withdrawal from the scheme. In accordance with Financial Reporting Standard (FRS) 102 (section 28) therefore, the scheme is accounted for in a fashion which is similar to a defined contribution scheme.

The companies must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises. More detail is given in notes 27 and 31.

k) Tangible Fixed Assets and Depreciation

In accordance with Section 35.10 (d) of FRS102, Woodard and its schools have elected to use the carrying value of any of the freehold land and buildings previously carried at a valuation, as their deemed cost at the date of transition to FRS102, 1 September 2014.

Tangible fixed assets are stated at cost less depreciation. Individual capital items, or projects, with a value greater than £10,000 are capitalised. Assets in the course of construction are stated at cost less any provision for impairment. They are transferred to completed assets when substantially all of the activities necessary to get the asset ready for use are complete. Where appropriate cost includes our own labour costs in relation to construction, and directly attributable overheads.

Where tangible fixed assets have been acquired with the aid of specific grants they are included in the balance sheet at cost and depreciated over their expected useful economic life. The related grants are credited to a restricted fixed asset fund (in the statement of financial activities and carried forward in the balance sheet). The depreciation on such assets is charged in the statement of financial activities over the expected useful economic life of the related asset on a basis consistent with the depreciation policy.

Depreciation is provided at rates calculated to write off the cost, less estimated residual value


34

of each asset based on current market prices, over its expected useful life, as follows:

Freehold land is not depreciated Freehold Buildings: - Variable according to the building and written off over

the expected useful life (see note below) Leasehold land - Over the shorter of the economic life of the asset or

the life of the lease Leasehold enhancement - Over the economic life of the asset Computer equipment - 25% on cost Telephone system - 10% on cost Fixtures and fittings - 25% on cost Motor vehicles - 25% on cost

Woodard and Woodard schools have reviewed their tangible assets, which comprise land, buildings and initial fixtures and fittings. All companies undertake an annual review of all buildings assessing their useful economic life. In some cases the useful economic life of a building is anticipated to be of considerable length, often in excess of 100 years. The buildings are capitalised in the financial statements at historic cost. Where the calculated depreciation charge is a material figure, it is charged in these financial statements but, where the carrying value is not more than the estimated recoverable amount and the depreciation on the building is not material to these financial statements, it has been assessed, but not charged on the basis that it is not material. The directors will continue to carry out annual assessments of the recoverable amount and the estimated useful life of all buildings and where the depreciation is a material value, it will be charged. The review is based on the directors’ assessments of the market value and the future economic benefit derived from an asset versus its carrying value in the financial statements.

No depreciation is provided for in respect of investment properties in accordance with Section 16 of FRS102. Such properties are held for their investment potential and not for consumption within the business. Investment properties are stated at their fair value at the balance sheet date.

Woodard and Woodard schools exercise judgement in selection of appropriate rates for depreciation of fixed assets, and for matters of impairment.

l) Financial Instruments

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

m) Securities and Fees in Advance Investments

Securities and Fees in Advance investments are carried at fair value, which is deemed to be market value as at the balance sheet date.

Unrealised gains and losses arising on the revaluation of investments are credited or charged to the statement of financial activities and are allocated to the appropriate fund according to the ‘ownership’ of the underlying assets. Realised gains and losses are the difference between sales proceeds and opening market value where the investment was held at the beginning of the year, or sales proceeds less cost of purchase where the investment was acquired in the year. The revaluation reserve reflects the accumulated total of unrealised gains and losses. Uninvested cash is the balance of liquid cash, held as an investment, which has not been invested in securities.

n) Stocks

Stocks comprise raw materials, consumable stores and goods held for resale: they are valued at the lower of cost and net realisable value.

o) Leasing Commitments

Assets held under finance leases and hire purchase contracts are capitalised in the balance sheet and are depreciated over their useful lives or the period of the lease whichever is the


35

shorter. The interest element of the obligations is charged to the statement of financial activities over the period of the lease. Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities on a straight line basis over the lease term. Lease incentives are accounted for over the lease term on a straight-line basis.

p) Fund Accounts

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity. Endowment funds are further sub-divided into permanent and expendable, where required by the terms of the trust.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Designated funds comprise funds which have been set aside at the discretion of the directors for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

q) Taxation

Woodard and Woodard school are registered charities and as such are exempt from income tax and corporation tax under the provisions of Section 478 of the Corporation Tax Act 2010. There is no similar exemption for VAT, which is included in expenditure or in the cost of assets as appropriate.

Many Woodard schools have a subsidiary company that is subject to taxes including corporation tax and VAT in the same way as any commercial organisation. Tax charged to the profit and loss account is based on the subsidiary company’s profit for the year and takes into account tax arising because of timing differences between the treatment of certain items for tax and accounting purposes. The subsidiary companies pay over the majority of their profits to their parent school company under Gift Aid and tax liabilities are kept to a minimum.

r) Discontinued Operations

Where the primary activity of a subsidiary, such as the education of children in a school, ceases, we record all activity to realise assets or other ‘wind-down’ activity under a separate note in the accounts, and in the SOFA. See note 35 for more details.

2. CHARITABLE ACTIVITIES - SCHOOL FEES RECEIVABLE 2016 2015

Group £’000 £’000 The school fees income comprises Gross fees 146,729 140,560 Less: Total scholarships, bursaries, etc (22,743) (21,044)

Add back: Scholarships, Grants etc paid for by Restricted Funds

277 166

124,263 119,682

Scholarships, bursaries and other awards were paid to 4,290 pupils (2015: 4,038 pupils). Within this, means-tested bursaries totalling £8,739,000 were paid to 1,085 pupils (2015: £7,914,000 to 851 pupils).


36

3. CHARITABLE ACTIVITIES – ANCILLARY TRADING INCOME 2016 2015

Group £’000 £’000

Extras 3,519 2,985 Entrance fees and registration fees 720 755 Pupil transport 783 1,045 Rent receivable and other sales 275 375 Commissions and other income 258 268 Sundry income 2,635 2,841

8,190 8,269

Company

Sundry income 23 22

23 22

4. OTHER TRADING ACTIVITIES 2016 2015

Group £’000 £’000

Non-ancillary trading income Enterprise company trading turnover 4,498 4,596 Lettings income 635 304 Rents receivable 334 681 Interest receivable - pupil bills 76 101

5,543 5,682

5. INVESTMENTS - INVESTMENT INCOME

Total Total Advance 2016 2015

Group Unrestricted Restricted Endowed Fees £’000 £’000 £’000 £’000 £’000 £’000

Securities

UK Quoted 70 36 17 27 150 208

Non UK Quoted 9 2 - - 11 14

Other 1 - - - 1 -

80 38 17 27 162 222

Company

Securities

UK Quoted - - - 28 28 44

- - - 28 28 44


37

6. INVESTMENTS - BANK AND OTHER INTEREST

Total Total Unrestricted Restricted Endowed 2016 2015

Group £’000 £’000 £’000 £’000 £’000

Bank interest 137 - - 137 103 Other interest 120 - - 120 77

257 - - 257 180

Company

Bank interest 2 - - 2 1 Other interest 81 - - 81 77

83 - - 83 78

7. VOLUNTARY SOURCES - GRANTS AND DONATIONS

Total Total Group Unrestricted Restricted Endowed 2016 2015

£’000 £’000 £’000 £’000 £’000

Grants and donations: 1,199 2,309 - 3,508 5,167

1,199 2,309 - 3,508 5,167

Total Total

Company Unrestricted Restricted Endowed 2016 2015 £’000 £’000 £’000 £’000 £’000

Grants and donations 2,359 - - 2,359 1,647

2,359 - - 2,359 1,647


38

8. ANALYSIS OF EXPENDITURE a) Total expenditure Group Staff costs Support Depreciation Total Total (note 10) Costs (note 12) 2016 2015 £’000 £’000 £’000 £’000 £’000 Costs of raising funds Non ancillary trading 1,066 2,655 91 3,812 3,514 Financing cost (note 9) - 592 - 592 1,188 Bank interest - 795 - 795 837 Investment management - 63 - 63 37 Fundraising and development

789

336

-

1,125

223

Total cost of generating funds

1,855 4,441 91 6,387 5,799

Charitable expenditure Education and grant making Teaching 79,282 10,459 1,668 91,409 86,025 Welfare 6,918 8,249 221 15,388 14,535 Premises 7,984 19,695 2,646 30,325 31,490 School administration and governance

16,208

11,515

2,510

30,233

32,002

Donations - 171 - 171 735 Grants awards and prizes (note 8b)

-

50

-

50

-

Movement in pension recovery plan

-

726

-

726

(187)

Total charitable expenditure

110,392 50,865 7,045 168,302 164,600

Total Expended 112,247 55,306 7,136 174,689 170,399


39

8. ANALYSIS OF EXPENDITURE (Continued)

Company Staff costs Support Depreciation Total Total (note 10) Costs (note 12) 2016 2015 £’000 £’000 £’000 £’000 £’000 Costs of raising funds Financing cost (note 9) - 64 - 64 69 Bank interest - 4 - 4 17 Investment management - 4 - 4 11

Total cost of generating funds

- 72 - 72 97

Charitable expenditure School administration and governance 648 574 - 1,222 1,018 Donations - 479 - 479 519 Grants awards and prizes (note 8b) - 1 - 1 - Movement in pension recovery plan - 3 - 3 -

Total charitable expenditure

648 1,057 - 1,705 1,537

Total Expended 648 1,129 - 1,777 1,634

b) Grants’ awards and prizes

Group

Woodard schools make awards to individual families to support schooling.

2016 2015 £’000 £’000

From Endowed Funds: Bursaries and other grants and awards 1 - From Restricted Funds: Bursaries and other grants and awards 41 40 Prizes and leaving awards 20 24 From Unrestricted Funds: Bursaries and other grants and awards 345 325 Prizes and leaving awards 25 28

432 417


40

8. ANALYSIS OF EXPENDITURE (Continued)

c) Governance included in support costs

Group - Woodard schools reimburse governors for out of pocket expenses including travel subsistence and accommodation, where a claim is made. 54 directors were reimbursed during the year.

2016 2015 £’000 £’000

Remuneration paid to auditor for audit services 332 236 Remuneration paid to auditor for prior year 99 - Remuneration paid to auditor for non-audit services 4 2 Reimbursement of personal expenses to governors 31 28 Other governance costs 556 529

1,022 795

Company - Woodard reimburse directors for out of pocket expenses including travel subsistence and accommodation, where a claim is made. 15 directors were reimbursed during the year.

Remuneration paid to auditor for audit services 90 23 Remuneration paid to auditor for non-audit services - - Reimbursement of personal expenses to directors 16 14 Other governance costs 205 150

311 187

9. FINANCING COSTS 2016 2015

Group £’000 £’000

Fees In Advance debt financing costs 171 159 Lease finance costs 8 2 Pension Scheme financing cost 9 5 Bank charges 183 169 Other finance costs 26 28 Provision for bad and doubtful debts 195 825

592 1,188

Company Fees In Advance debt financing costs 52 44 Bank charges 12 25

64 69


41

10. STAFF COSTS 2016 2015

Group £’000 £’000

The aggregate payroll costs for the year were: Wages and salaries 92,945 90,958 Social security costs 7,660 6,717 Other pension costs 11,488 9,465 Private medical insurance 154 152

112,247 107,292

Company

The aggregate payroll costs for the year were: Wages and salaries 533 472 Social security costs 64 56 Other pension costs 50 42 Private medical insurance 1 -

648 570

One director of a Woodard school received consultancy fees of £21,600. Fees of £20,000 were also paid in 2014/15, though reported in the company financial statements as £10,000 in error. No other directors at Woodard schools received remuneration or other benefits from the school or from any connected body.

Company 2016 2015 £’000 £’000

The following trustees were paid emoluments: Chairman 10 10 President 5 5

The Articles of Association permit the trustees listed above to be paid honoraria allowing them to undertake their roles in ensuring the delivery of the Woodard charitable objects. Minor amounts of travel expenses were reimbursed to certain trustees and directors' liability insurance is provided.

Group - Aggregate employee benefits of key management personnel 6,665 6,195

Company - Aggregate employee benefits of key management personnel

377 366

The average number of employees during the year calculated on a full time equivalent basis, was 3,044 (2015: 3,374) 2016 2016 2015 2015 Group Company Group Company No. No. No. No. Teaching 1,516 - 1,622 - Other activities 1,528 8 1,752 7

3,044 8 3,374 7


42

10. STAFF COSTS (Continued)

The number of higher paid employees whose annual emoluments were £60,000 or more was: 2016 2016 2015 2015 Group Company Group Company No. No. No. No. £60,001 - £70,000 35 - 27 - £70,001 - £80,000 22 - 21 - £80,001 - £90,000 7 - 3 - £90,001 - £100,000 4 - 3 - £100,001 - £110,000 8 1 6 1 £110,001 - £120,000 2 - 4 - £120,001 - £130,000 2 1 4 2 £130,001 - £140,000 2 - 1 - £140,001 - £150,000 2 1 1 - £150,001 - £160,000 1 - 1 - £160,001 - £170,000 - - - - £170,001 - £180,000 1 - - - £180,001 - £190,000 - - 1 - £210,001 - £220,000 1 - - - £280,001 - £290,000 - - 1 - The number with retirement benefits accruing: - in Defined Contribution schemes was 26 2 20 2 Of which the contributions amounted to: £241,000 £17,000 £170,000 £16,000 - in Defined Benefit schemes was 59 1 51 1 Of which the contributions amounted to: £743,000 £20,000 £619,000 £17,000

For 2016 and 2015 there are 2 employees over earning over £60,000 that have chosen not to participate in a pension scheme.

11. TAXATION

The company is a registered charity and therefore no liability to taxation arises on its charitable activities.


43

12. TANGIBLE FIXED ASSETS

Group Freehold Land &

Buildings

Leasehold Land &

Buildings

Under

Construction Plant &

Equipment Fixtures

& Fittings Motor

Vehicles Total £’000 £’000 £’000 £’000 £’000 £’000 £’000

Cost

At 1st September 2015 119,970 90,057 6,822 22,488 15,484 1,208 256,029

Additions 3,641 938 8,302 4,274 1,341 471 18,967

Disposals (55) - - (66) (362) (297) (780)

Transfers 9,427 941 (10,415) (6) - 53 -

At 31st August 2016 132,983 91,936 4,709 26,690 16,463 1,435 274,216

Depreciation

At 1st September 2015 8,323 5,101 - 14,695 12,941 1,037 42,097

Charge for the year 1,395 1,871 - 2,273 1,376 221 7,136

Disposals - - - (66) (355) (287) (708)

59 (60) - (32) - 33 -

At 31st August 2016 9,777 6,912 - 16,870 13,962 1,004 48,525

Net book value at 31

st August

2016 123,206 85,024 4,709 9,820 2,501 431 225,691

Net book value at 31

st August 2015

111,647 84,956 6,822 7,793 2,543 171 213,932

All assets are used for charitable purposes.

Included in Leasehold Land and Buildings are the are the depreciated values of the buildings occupied by Sir Robert Woodard Academy, The Littlehampton Academy and Kings Priory School. In the case of Kings Priory School long term leases for 125 years from the freeholders are in place. For The Littlehampton Academy and Sir Robert Woodard Academy the schools have been in occupation of their buildings for four years and are thus included although the issue of 125 year leases is still awaiting final completion of works for West Sussex County Council by the contractors. The property occupied by St Augustine Academy will be included in Leasehold Land and Buildings at the conclusion of the defects period under the construction contract which is expected to be in 2017.

Included in fixed assets is the gain on revaluing the freehold land and buildings at the King’s School Tynemouth that were transferred to Woodard in 2013-14 and subsequently leased to the WAT on a 125 year lease. The land and buildings were valued at £10,585,000 when transferred and were revalued by a professional valuer at £14,635,000 when leased to the WAT. The lease is a peppercorn lease. See note 21.

Included in fixed assets are assets held under finance leases which have net book values of £753,000 (2015: £Nil) at the year end.


44

12. TANGIBLE FIXED ASSETS (Continued)

Company Freehold Land & Total Buildings 2016

£’000 £’000

Cost At 1 September 2015 775 775 Additions - - Disposals - -

At 31 August 2016 775 775

Depreciation At 1 September 2015 - - Additions - - Disposals - -

At 31 August 2016 - -

Net book value at 31 August 2016 775 775

Net book value at 31 August 2015 775 775


45

13. SECURITIES INVESTMENTS

Group Fees in Advance Securities Total

Investments Investments Investments

2016 2015 2016 2015 2016 2015

£’000 £’000 £’000 £’000 £’000 £’000

Group investments

At 1 September 2,111 1,730 6,575 4,613 8,686 6,343 New money invested 1,651 1,125 63 3,523 1,714 4,648 Reinvested income 4 - 128 - 132 - Amounts extracted (1,843) (934) (445) (1,333) (2,288) (2,267) Investment management fees

(8)

-

(28)

-

(36)

-

Realised gains on investments

72

58

135

16

207

74

Unrealised gains/(losses) on investments

46

(64)

379

(48)

425

(112)

Uninvested cash (397) 196 1 (196) (396) -

Group investments at 31 August

1,636 2,111 6,808 6,575

8,444 8,686

Group Fees in Advance Securities Total


2016 2015 2016 2015 2016 2015

£’000 £’000 £’000 £’000 £’000 £’000

Investments comprise:

Listed investments UK Quoted 1,473 1,484 4,709 5,395 6,182 6,879

Non-UK Quoted - - 945 393 945 393 Unlisted investments

Land and buildings - - 645 645 645 645 Other - - 309 - 309 - Cash 163 627 200 142 363 769


1,636 2,111

6,808 6,575 8,444 8,686

In addition to the above investments, cash balances within the Fees in Advance Scheme are included in current assets as cash deposits.

The main Securities Investments and Fees in Advance Scheme Investments deposits are managed for Woodard schools by professional advisers. All investments are managed and held in the UK.

Holdings at the year-end comprising more than 5% of the total are:

£’000 TM UBS (UK) Global Yield FD CL F NET 1,472 Property investments – Smallwood Manor 645


46

13. SECURITIES INVESTMENTS (Continued)

Company Fees in Advance Securities Total


2016 2015 2016 2015 2016 2015

£’000 £’000 £’000 £’000 £’000 £’000

Group investments

At 1 September 2,079 1,755 228 232 2,307 1,987 New money invested 1,651 1,321 12 20 1,663 1,341 Reinvested income 4 - - 4 - Amounts extracted (1,810) (987) (54) (22) (1,864) (1,009) Investment management fees

(8)

-

(1)

-

(9)

-

Realised gains on investments

71

54

14

2

85

56

Unrealised gains/(losses) on investments

46

(64)

7

(4)

53

(68)

Uninvested cash (397) - - - (397) -


1,636 2,079 206 228

1,842 2,307

Company Fees in Advance Securities Total

Investments Investments Investments 2016 2015 2016 2015 2016 2015

£’000 £’000 £’000 £’000 £’000 £’000

Investments comprise:

Listed investments UK Quoted 1,473 1,452 206 184 1,679 1,636

Unlisted investments

Other - - - 42 - 42 - - Cash 163 627 - 2 163 629


1,636 2,079

206 228 1,842 2,307

Woodard owns all of the share capital of the subsidiary schools listed in note 14.

In addition to the above investments, cash balances within the Fees in Advance Scheme are included in current assets as cash deposits.

The main Securities Investments and Fees in Advance Scheme Investments deposits are managed for Woodard by UBS Wealth Management. All investments are managed and held in the UK.

Holdings at the year-end comprising more than 5% of the total are:

£’000 TM UBS (UK) Global Yield FD CL F NET 1,472 M&G Charifund Accumulation units 133


47

14. GROUP UNDERTAKINGS

Woodard holds directly or indirectly 100% of the share capital of the following companies (all of which are incorporated and registered in England) at a cost of £2,000 (2015: £2,000) and also controls a number of unincorporated charities:

Owned Companies

Name Charity Company Number Number Woodard Corporation Trustee Company Limited 380961

(former holding company) Woodard Endowment Fund 288472 Educational Charitable Companies Abbots Bromley School Limited

1 1103321 5018628

Ardingly College Limited2 1076456 3779971

Bloxham School Limited3 1076484 3779976

The Cathedral School (Llandaff) Limited4 1103522 5091977

Denstone College Limited5 1102588 5010957

Ellesmere College Limited6 1103049 5066406

Grenville College Limited 1103317 5077205 Hurstpierpoint College Limited

7 1076498 3779893

King’s Schools Taunton Limited8 1103346 5084301

The King’s School Tynemouth Limited 269665 1182631 Lancing College Limited

9 1076483 3779985

The Peterborough School Limited10

269667 1182629 Prestfelde School Limited

11 1102931 5023969

Queen Mary’s School (Baldersby) Limited12

1098410 4806128 St James’ School, Grimsby Limited

13 1099060 4788370

Smallwood Manor Preparatory School Limited14

1102929 5035260 Woodard Schools (Midland Division) Limited 269671 1182630 Woodard Schools (Nottinghamshire) Limited

15 1103326 5011039

Woodard Schools (Western Division) Limited 269669 1182633

School Subsidiary Companies

Abbots Bromley School Enterprises Limited 5181898 Ardingly Projects Limited 1931797 Bloxham School Library Services Limited 5174043 Buxbrass Limited 1570797 Denstone College Enterprises Limited 5181951 Ellesmere College Enterprises Limited 5181897 Ellesmere College International Limited 8512074 Grenville College Enterprises Limited 537251 Hurst Facilities Limited 1320729 Hurst Transport Limited 7914424 Lancing College Preparatory School at Worthing Limited 8808550 Newdom Developments (Holdings) Limited 7290437 Prestfelde School Enterprises Limited 5181895 Smallwood Manor Enterprises Limited 5181896 Spiralhome Limited 2095047 WST Enterprises Limited 5181894 Woodard Facilities (Southern Division) Limited 1320729 Woodard Lettings (Yorkshire Schools) Limited 1746376 Woodard Schools (Nottinghamshire) Enterprises Limited 5181900 Subsidiary Fund Raising Charities Ellesmere College Endowment Fund 506533 Lancing College Development Fund 310896


48

14. GROUP UNDERTAKINGS (Continued)

Included in Consolidation on Grounds of Dominant Influence

Woodard has a dominant influence over the following company on the grounds that the Memorandum and Articles of the company allow Woodard to appoint and remove the majority of the directors (the ‘sponsor directors’) and the two companies follow a common strategy. On 1 August 2013, academy trusts automatically became exempt charities under section 12(4) of the Academies Act 2010 (previously charity number 1122096).

Woodard Academies Trust16

Exempt 6415729

Superscript number denotes school company per page 2

15. DEBTORS

Group Company 2016 2015 2016 2015 £’000 £’000 £’000 £’000

School fees receivable 2,585 2,258 - - Trade debtors 1,717 934 - - Other debtors 738 1,910 3 68 Sale of land – Grenville College - 2,173 - - Prepayments and accrued income 3,001 2,883 8 4 Amounts due from subsidiary company - - 1,934 1,799

8,041 10,158 1,945 1,871

16. CREDITORS: amounts falling due within one year

Group Company 2016 2015 2016 2015 £’000 £’000 £’000 £’000

Bank overdrafts 2,408 1,465 - 352 Bank loans 2,634 2,420 - - Net obligations under finance leases 156 24 - - Deposits from parents 3,552 1,437 - - Fees received from parents in advance of term

16,716

12,979

-

-

Trade creditors 5,739 5,710 82 45 Taxation and social security 1,859 1,806 16 13 Other creditors 3,630 3,726 62 217 Fees in Advance Scheme 3,645 3,734 383 479 Accruals 4,223 3,650 129 24 Amounts due to parent company - - 153 29

44,562

36,951

825

1,159

Bank loans and overdrafts are secured either by an unlimited all moneys guarantee as part of an overdraft facility under a pooled banking arrangement organised by Woodard or by charges over property. Woodard and two school companies subscribed to a pooled banking arrangement and overdraft facility with Lloyds Bank plc which has a gross limit of £2.75 million. As a result of this arrangement Woodard and the subscribers are able to obtain borrowings at an advantageous rate of interest. Included in creditors are unsecured amounts due from Abbots Bromley School to APB Group Limited totalling £300,000.


49

17. CREDITORS: amounts falling due after one year

Group Company 2016 2015 2016 2015 £’000 £’000 £’000 £’000

Bank loans and overdrafts 19,280 16,858 - - Other loans 1,000 1,000 - - Net obligations under finance leases 464 67 - - Deposits from parents 6,948 7,555 - - Other creditors 477 677 - - Fees in Advance Scheme 3,850 4,322 826 1,275

32,019 30,479 826 1,275

On 18 June 2015 Abbots Bromley School entered into an agreement with the APB Group for a loan facility of £1 million. The school uses the amount borrowed by it under the facility to meet its cash flow needs. The rate of interest on the loan is 4.5% per annum above the Bank of England’s base rate. The initial loan is due for repayment on 22 June 2018.

18. BANK LOAN Group Group 2016 2015 £’000 £’000

The bank loan is repayable in instalments Due after 5 years 12,677 9,876 Due within 2 to 5 years 5,308 4,905 Due within 1 to 2 years 1,295 2,077

Due after more than one year 19,280 16,858

Due within 1 year 2,634 2,420

21,914 19,278

Bank loans shown above are secured by charges over group property.

19. FEES IN ADVANCE SCHEME

Parents and others may enter into a contract to pay for fixed contributions towards pupil tuition fees for a number of years in advance. The money may be returned subject to specific conditions on the receipt of notice. Assuming pupils remain in the school, fees in advance will be applied as follows:

Group Company 2016 2015 2016 2015 £’000 £’000 £’000 £’000

After 5 years 417 564 62 242 Within 2 to 5 years 1,683 1,146 388 674 Within 1 to 2 years 1,750 2,612 376 359

3,850 4,322 826 1,275 Within 1 year 3,645 3,734 383 479

7,495 8,056 1,209 1,754


50

19. FEES IN ADVANCE SCHEME (Continued)

Summary of movements in liability Group Company £’000 £’000

Balance at 1 September 2015 8,056 1,754 New contracts 3,608 112 Repayments (332) (168) Amounts used to pay fees (3,837) (489)

Balance at 31 August 2016 7,495 1,209

20. FINANCE LEASE OBLIGATIONS

Group Group 2016 2015 £’000 £’000

Amounts falling due After 5 years 30 - Within 2 to 5 years 282 48 Within 1 to 2 years 152 19

Due after more than one year 464 67

Within 1 year 156 24

620 91

21. FUNDS

Woodard and Woodard school funds are analysed under the following headings: a) ENDOWED FUNDS Group

Woodard and Woodard schools have a number of endowed funds. An endowed fund is created to be one of two types:

Permanent Endowment - where the donor wishes to preserve the capital of the fund, whilst making the income generated from that capital available for use by the charity.

Expendable Endowment – where both the capital and income may be expended in pursuit of the objects of the fund.

Most endowed funds held by Woodard and Woodard schools are for provision of scholarship, bursary and prize trust funds. Transfers from the endowed funds mainly arise when income to the funds is used to support education through provision of scholarships and bursaries. Details of individual school funds can be found in the financial statements of the individual schools companies, details of which can be found in note 14.

Company

The Company endowment fund comprises the Talbot Prize where the capital is permanently endowed and the income generated may fund prizes for science, mathematics or computer studies at the fifth or sixth form level to pupils in any incorporated or affiliated school.


51

21. FUNDS (Continued)

b) RESTRICTED FUNDS Group

Restricted Funds represent amounts collected donated or otherwise generated for a specific purpose and the funds are generally expended on that purpose, or held against that purpose. The restricted funds held by Woodard and Woodard schools tend to be of the following types:

The scholarship, bursary and prize funds consist of a number of separate trust funds set up by individual donors. The income arising, when distributed, is primarily to fund remissions and prizes at schools within Woodard.

Building and development funds are funds raised by various schools where the use is restricted to a particular fixed asset or similar development.

Other educational funds have been set up by individual donors, the funds can be used for a range of purposes but the use is restricted to particular Woodard schools.

The Lancing Chapel Maintenance Fund receives external donations and, together with monies from unrestricted school funds, helps to contribute to the maintenance of Lancing Chapel. Lancing College also undertakes appeals and the funds are held for the specific purposes for which the appeal was held.

The Special Endowment Funds are an accumulation of funds which were given to individual schools for purposes which would be in support of specific classes of pupils, or former pupils, or to support other purposes relating to the particular school.

The funds received from the DfE in support of development and operation of academies are restricted in their use and are shown as such. The majority of amounts transferred from the restricted funds are in relation to the General Annual Grant and represent mainly timing differences. Other transfers occur when the terms of the fund are met, and amounts are used for the purposes for which they were donated. Restricted funds include a specific reserve for the deficit in pensions for staff who are members of relevant local government pension schemes.

Upon conversion to academy status and future operation by the WAT, The King’s School, Tynemouth donated its land and buildings to Woodard and, following revaluation, the economic value was donated to the WAT via creation of a lease at a peppercorn rent. See note 12.

Company

Woodard restricted funds comprise scholarship, bursary and prize funds which have been held on behalf of former Woodard schools. Included is the Wilkes Prize Fund held by Woodard to commemorate a former Divisional Provost.

c) UNRESTRICTED FUNDS Unrestricted funds represent accumulated income from the schools’ activities and other sources that are available for the general purposes of the schools.


52

22. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Group Total Total Unrestricted Restricted Endowed 2016 2015 £’000 £’000 £’000 £’000 £’000 Tangible fixed assets 145,709 79,693 289 225,691 213,932 Securities investments 1,727 1,352 3,729 6,808 6,575 Fees in Advance Scheme investments

1,636

-

-

1,636

2,111

Net current (liabilities)/assets (7,275) 3,992 319 (2,964) 5,888 Long term liabilities (35,697) (10,707) (1,104) (47,508) (40,243)

106,100

74,330

3,233

183,663

188,263

Company Total Total Unrestricted Restricted Endowed 2016 2015 £’000 £’000 £’000 £’000 £’000 Tangible fixed assets 775 - - 775 775 Securities investments 12 181 15 208 230 Fees in Advance Scheme investments

1,636 -

-

1,636

2,079

Net current (liabilities)/assets 2,527 - - 2,527 740 Long term liabilities (842) - - (842) (1,290)

4,108 181 15 4,304 2,534


53

23. SUMMARY OF MOVEMENTS ON MAJOR FUNDS

Group

At 1 Sept 2015

Incoming resources

Resources expended Transfers

Gains/ (losses)

At 31 August

2016

£’000 £’000 £’000 £’000 £’000 £’000

Unrestricted Funds Revaluation reserves 9,519 10,985 (10,658) (8) 21 9,859 Building and Development Funds

50 - - 20 - 70

Pension Funds (1,561) - (160) - (728) (2,449) Appeal Funds 48 30 (28) (9) - 41 Scholarship, bursary and prize trust funds

529 12 (7) (70) 28 492

Advance Fees Fund 320 28 (51) - 118 415 Other Funds 5,772 3,832 (4,142) 97 71 5,630 General Reserve 92,504 124,035 (122,923) (1,662) 215 92,169

107,181 138,922 (137,969) (1,632) (275) 106,227

Trading companies' assets

(100) 1,529 (1,556) - - (127)

Total Unrestricted 107,081 140,451 (139,525) (1,632) (275) 106,100

Restricted Funds

Revaluation reserves 201 - - (58) 60 203 Scholarship, bursary and prize trust funds

1,002 155 (45) 10 47 1,169

Building and Development Funds

81,164 1,619 (2,406) (35) - 80,342

Other Educational Funds

(1,160) 31,407 (31,828) 1,715 - 134

Other Restricted Funds

(3,291) 229 (809) 100 (3,747) (7,518)

Total Restricted 77,916 33,410 (35,088) 1,732 (3,640) 74,330

Endowed

Revaluation reserve 85 - - (10) 42 117 Scholarship, bursary and prize funds

3,024 71 (71) (105) 35 2,954

Other funds 157 - (5) 15 (5) 162

Total Endowment 3,266 71 (76) (100) 72 3,233

Total Funds 188,263 173,932 (174,689) - (3,843) 183,663

Note 21 provides more details on the funds.


54

23. SUMMARY OF MOVEMENTS ON MAJOR FUNDS (Continued)

Company

At 1 Sept

2015 Incoming

resources Resources expended Transfers

Gains/ (losses)

At 31 August

2016

£’000 £’000 £’000 £’000 £’000 £’000

Unrestricted Funds Advance Fee Contracts 320 28 (51) - 117 414 Festival Fund 27 - - - 4 31 Wilkes Prize Fund 1 - - - - 1 Revaluation reserve 49 - - - - 49 General Reserve 1,908 3,381 (1,676) - - 3,613

Total Unrestricted 2,305 3,409 (1,727) - 121 4,108

Restricted Funds

Scholarship, bursary and prize trust funds

61 - - - - 61

Wilkes Prize Fund 1 - - - - 1 Revaluation reserve 147 - (45) - 17 119

Total Restricted 209 - (45) - 17 181

Endowed - Expendable

Trust funds 9 - (5) - - 4 Revaluation reserve 11 - - - - 11

Total Endowment 20 - (5) - - 15

Total Funds 2,534 3,409 (1,777) - 138 4,304

Note 21 provides more details on the funds.

24. COMMITMENTS UNDER OPERATING LEASES

Group Land and buildings Other 2016 2015 2016 2015 £’000 £’000 £’000 £’000

Expiry date: Within 1 year 50 63 262 236 Between 2 and 5 years 19 100 494 451 After 5 years - - 30 5

69 163 786 692

25. CAPITAL COMMITMENTS

At 31 August 2016, the group had capital commitments as follows: 2016 2015 £’000 £’000

Expenditure contracted for but not provided in the accounts 6,314 7,815

Expenditure authorised but not contracted for: - 84


55

26. PENSION SCHEMES

Summary

Woodard and Woodard schools have staff in a number of different pension schemes. These schemes are:

The Ardingly College Scheme – this is defined benefit scheme for non-teaching staff at Ardingly College. It is closed to new members.

Local Government Pension Schemes – there are a series of defined benefit schemes for non-teaching staff at Woodard academies. The schemes were previously for local authority staff.

The Pensions Trust Schemes – defined contribution schemes for non-teaching staff which, due to previous commitments, has some elements of defined benefit for members and are thus subject to a recovery plan.

The Independent Schools Pension Plan – this is a scheme run by the Pensions Trust and offered to non-teaching staff in some independent schools. It is similar to the Pensions Trust schemes outlined above.

The Teachers’ Pension Scheme – a defined benefit scheme for teachers in schools. This is a multi-employer scheme which is accounted for on a contribution basis in line with accounting policy 1(j).

Defined Benefit Pension Schemes

Allocation of the Pension Deficit for the Year 2016 2015

The deficit for the year is allocated: £'000 £'000

Ardingly College (1,983) (1,232)

Local Government Pension Scheme Liability:

Sir Robert Woodard Academy (2,232) (1,127) The Littlehampton Academy (2,766) (1,294) St Peter's Academy (3,553) (3,032) St Augustine Academy (1,558) (782) Kings Priory School (598) (153)

Per Balance Sheet (12,690) (7,620)

Movement in The Deficit

The unrealised movement in the deficit for each pension scheme in the year is:

2016 £'000

Ardingly College (728)

Local Government Pension Scheme Liability:

Sir Robert Woodard Academy (966) The Littlehampton Academy (1,280) St Peter's Academy (671) St Augustine Academy (373) Kings Priory School (457)

Per SOFA (4,475)


56

26. PENSION SCHEMES (Continued)

Ardingly College Defined Benefit Scheme

The Ardingly College Retirement Benefit Scheme for support staff is a defined benefit scheme whereby retirement benefits are based upon the employee's final remuneration and length of service and is funded through a separate trustee administered scheme. Contributions to the scheme are made good in accordance with the recommendations of independent actuaries who value the scheme at regular intervals, usually triennially. The scheme is closed to new members.

A full FRS102 valuation was carried out for the Ardingly College Retirement Benefit Scheme as at 30 August 2015 by a qualified independent actuary. The assets of the scheme are held separately from those of the Employer. The major assumptions used by the actuary to value the assets and liabilities at the balance sheet date are:

2016 2015

Inflation assumption 3.1% 3.5% Rate of increase in salaries 4.1% 4.5% The assumed rate of increase to pensions in deferment 3.1% 3.5% The assumed rate of interest to pensions in payment 3.1% 3.4% Assumed rate used to discount scheme liabilities 2.0% 3.8% Expected returns on assets 3.9% 4.7%

Assumptions

The assumptions used are our recommended assumptions. The assumptions have been determined as follows:

the discount rate is based on a yield curve constructed from the iBoxx sterling AA Corporate Bond Index at the effective date, at the duration of the liabilities;

the rate of increase in the Retail Price Index (RPI) is derived from the difference in the yields on fixed and index-linked UK government bonds (gilts) at the effective date published by the Bank of England. The rate of increase in the Consumer Price Index (CPI) and inflation-linked pension increases are based on the RPI assumption

demographic assumptions are those used for the funding valuation as at 1 September 2014. They are described in the report on the valuation dated 28 August 2015

Assets and Liabilities at each year end in accordance with FRS17 were:

2016 2015 £’000 £’000 Total market value of assets 1,958 1,633 Present value of liabilities (3,941) (2,865)

Deficit (1,983) (1,232)


57


Ardingly College Defined Benefit Scheme (Continued)

Analysis of amount recognised in Statement of Financial Activities

2016 £’000

2015 £’000

Current service cost 52 52 Net interest 46 36 Expenses paid from the Scheme 8 6

Total cost 106 94

Changes in the present value of the defined benefit liabilities are:

2016 £’000

2015 £’000

Opening value of liabilities 2,865 2,802 Interest cost 109 110 Service cost (including member contributions) 59 59 Experience (loss) (83) (8) Change of assumptions gain/(loss) 1,032 (85) Gain on settlements and curtailments and past service cost - - Benefits paid (41) (13)

Closing value of liabilities 3,941 2,865

Changes in the fair value of the assets are as follows:

2016 £’000

2015 £’000

Opening value of assets 1,633 1,482 Expected return 63 74 Asset gain 221 36 Contributions by employer 83 53 Contributions by members 7 7 Benefits paid (41) (13) Expenses paid from the scheme (8) (6)

Closing value of assets 1,958 1,633

The total value of the assets is divided between the main asset classes as follows:

At 31 Aug 2016

At 31 Aug 2015

Equities 43.3% 41.2% Gilts 9.1% 9.6% Bonds 36.8% 36.1% Property 7.4% 8.0% Cash 3.4% 5.1%

Total 100% 100%


58

26. PENSION SCHEMES (Continued) Ardingly College Defined Benefit Scheme (Continued)

Amounts for the current and previous four periods:

2016 £’000

2015 £’000

2014 £’000

2013 £’000

2012 £’000

Present value of liabilities (3,941) (2,865) (2,802) (2,346) (2,203) Total market value of assets 1,958 1,633 1,482 1,339 1,221 Deficit (1,983) (1,232) (1,320) (1,007) (982) Experience gain/(loss) on assets 221 8 40 117 (8) Experience loss/(gain) on liabilities 83 36 69 56 (15)

The actual return on assets over the period was a gain of approximately £284,000 (2015: £110,000).

The total actuarial gain/loss for the period (being the sum of the liability experience gain/loss, the change of assumptions gain/loss and the asset gain/loss) was a loss of approximately £728,000 (2015: gain £129,000).

The employer expects to contribute approximately £50,000 to the scheme in the year from the end of the period.

Local Government Pension Scheme (LPGS)

The LGPS is a funded defined benefit pension scheme, with the assets held in separate trustee-administered funds.

The total contribution made for the year ended 31 August 2016 was £1,247k (2015: £1,183k), of which employer’s contributions totalled £957k (2015: £893k) and employees’ contributions totalled £290k (2015: £290k).

The Trust contributes to four individual Local Government Pension Funds (employer contribution rates %):

Sir Robert Woodard Academy and The Littlehampton Academy - West Sussex County Council Scheme (18.1%, 19.0% from 1st April 2015) St Augustine Academy - Kent County Council Scheme (19.8%) St Peter's Academy - Stoke City Council Scheme (19.2%, 20.2% from 1st April 2015) King's Priory School - South Tyneside Council Scheme (21.2%)

Employees contribute between 5.5% to 12.5% of their gross income depending on their salary level.

Parliament has agreed, at the request of the Secretary of State for Education, to a guarantee that, in the event of academy closure, outstanding Local Government Pension Scheme liabilities would be met by the Department for Education. The guarantee came into force on 18 July 2013.

The results for each academy pool are set out on the following pages.


59


Local Government Pension Scheme (Continued)

Sir Robert Woodard Academy

Principal Actuarial Assumptions

At 31 August 2016

At 31 August 2015

Rate of increase in salaries 3.6% 4.1% Rate of increase for pensions in payment/inflation 2.1% 2.7% Discount rate for scheme liabilities 2.1% 3.8% Inflation assumption (CPI) 3.8% 3.8% Commutation of pensions to lump sums 50.0% 50.0%

The current mortality assumptions include sufficient allowance for future improvements in mortality rates. The assumed life expectations on retirement age 65 are:

At 31 August At 31 August Current pensioners 2016 2015 Males 24.4 years 24.4 years Females 25.8 years 25.8 years

Future pensioners Males 26.9 years 26.9 years Females 28.5 years 28.5 years

The trust’s share of the assets and liabilities in the scheme was:

Fair value at 31 Aug

2016


2015

£'000 £'000

Total market value of assets 3,873 2,941

Present value of scheme liabilities (6,105) (4,068)

Deficit in the scheme

(2,232)

(1,127)

The actual return on scheme assets was 7.8%


60



Sir Robert Woodard Academy (Continued)

Amounts recognised in the Statement of Financial Activities

2016 2015 £'000 £'000

Current service cost (net of employee contributions) 291 273 Net interest cost (45) 152 Benefit changes, gain/(loss) on curtailment and gain/(loss) on settlement

- -

Total 246 425

Movements in the present value of defined benefit obligations were as follows

2016 2015 £'000 £'000

At 1 August 2015 4,068 3,267 Current service cost 291 273 Interest cost 161 152 Employee contributions 64 65 Actuarial loss 1,542 326 Benefits paid (21) (15)

At 31 July 2016 6,105 4,068

Movements in the fair value of the trust’s share of scheme assets:

2016 2015 £'000 £'000

At 1 August 2015 2,941 2,535 Expected return on assets 116 118 Return on plan assets (excluding net interest on the net defined pension liability) 576 44 Employer contributions 197 194 Employee contributions 64 65 Benefits paid (21) (15)

At 31 July 2016 3,873 2,941


61



The Littlehampton Academy


At 31 Aug At 31 Aug 2016 2015



At 31 August At 31 August 2016 2015

Current pensioners Males 24.4 years 24.4 years Females 25.8 years 25.8 years




2016


2015 £'000 £'000



Deficit in the scheme (2,766) (1,294)



62



The Littlehampton Academy (Continued)


2016 2015 £'000 £'000

Current service cost (net of employee contributions) 428 427 Interest cost 52 222 Benefit changes, gain/(loss) on curtailment and gain/(loss) on settlement

- (170)

Total 480 479

Movements in the present value of defined benefit obligations were as follows:

2016 2015 £'000 £'000

At 1 August 2015 5,597 4,466 Current service cost 428 424 Interest cost 222 209 Employee contributions 89 96 Actuarial loss 2,120 452 Benefits paid (43) (50)

At 31 July 2016 8,413 5,597

Movements in the fair value of the Trust’s share of scheme assets:

2016 2015 £'000 £'000

At 1 August 2015 4,303 3,721 Interest income 170 173 Return on plan assets (excluding net interest on the net defined pension liability) 840 64 Employer contributions 288 299 Employee contributions 89 96 Benefits paid (43) (50)

At 31 July 2016 5,647 4,303


63



St Peter's Academy









Fair value at 31 August

2016


2015

£'000 £'000



Deficit in the scheme (3,553) (3,032)



64



St Peter’s Academy (Continued)


2016 2015 £'000 £'000

Current service cost (net of employee contributions) 209 210 Net interest cost 180 160 Benefit changes, gain/(loss) on curtailment and gain/(loss) on settlement

- (83)

Total 389 287


2016 2015 £'000 £'000

At 1 September 2015 4,633 4,221 Current service cost 209 210 Interest cost 180 160 Employee contributions 48 47 Actuarial loss 648 25 Benefits paid (52) - Plan introductions, benefit changes, curtailments and settlements (11) (30)

At 31 August 2016 5,655 4,633


2016 2015 £'000 £'000

At 1 September 2015 1,601 1,373 Interest income 64 54 Return on plan assets (excluding net interest on the net defined pension liability) 275 (13) Employer contributions 166 159 Employee contributions 48 47 Benefits paid (52) (19)

At 31 August 2016 2,102 1,601


65



St Augustine Academy

Principal Actuarial Assumptions At 31 August At 31 August 2016 2015








2016


2015 £'000 £'000



Deficit in the scheme (1,558) (782)

The actual return on scheme assets was £159,000 (2015: £21,000)


66



St Augustine Academy (Continued)


2016 2015 £'000 £'000

Current service cost (net of employee contributions) 219 200 Net interest cost 29 65 Benefit changes, gain/(loss) on curtailment and gain/(loss) on settlement

1 (56)

Total 249 209


2016 2015 £'000 £'000

At 1 September 2015 1,811 1,560 Current service cost 219 200 Interest cost 73 65 Employee contributions 43 40 Actuarial loss/(gain) 786 (37) Benefits paid (24) (17)

At 31 August 2016 2,908 1,811


2016 2015 £'000 £'000

At 1 September 2015 1,029 858 Interest income 44 36 Return on plan assets (excluding net interest on the net defined pension liability 115 (14) Employer contributions 144 127 Employee contributions 43 40 Benefits paid (24) (17) Plan introductions, benefit changes, curtailments and settlements (1) (1)

At 31 August 2016 1,350 1,029


67



King’s Priory School

Principal Actuarial Assumptions At 31 August At 31 August 2016 2015

Rate on increase in salaries 3.5% 3.5% Rate of increase for pensions in payment/inflation 2.0% 2.0% Discount rate for scheme liabilities 2.0% 3.8% Inflation assumption (CPI) 2.0% 2.1% Commutation of pensions to lump sums 50.0% 50.0%


At 31 August At 31 August 2016 2015 Current pensioners Males 23.2 years 23.1 years Females 24.8 years 24.7 years




2016


2015

Total market value of assets 1,021 674 Present value of scheme liabilities

(1,619)

(827)

Deficit in the scheme (598) (153)

The actual return on scheme assets was £142,000 (2015: £17,000)


68



King’s Priory School (Continued)

Amounts recognised in the Statement of Financial Activities 2016 2015 £'000 £'000

Current service cost (net of employee contributions) 148 165 Net interest cost 2 4 Benefit changes, gain/(loss) on curtailment and gain/(loss) on settlement - -

Total 150 169


2016 2015 £'000 £'000

At 1 September 2015 827 632 Current service cost 148 165 Interest cost 32 24 Employee contributions 46 49 Actuarial (gain)/loss 569 (39) Benefits paid (3) (4)

At 31 August 2016 1,619 827


2016 2015 £'000 £'000

At 1 September 2015 674 442 Expected return on assets 30 20 Employer contributions 112 (3) Employee contributions 162 170 Benefits paid 46 49 Plan introductions, benefit changes, curtailments and settlements (3) (4)

At 31 August 2016 1,021 674


69


Pensions Trust Growth Plan

Woodard and Woodard schools participate 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.

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 FRS102 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 4.9

Rate of return post retirement:

Active/Deferred

Pensioners

4.2

4.2

Bonuses on accrued benefits 0.0

Inflation: Retail Prices Index (RPI) 2.9

Inflation: Consumer Prices Index (CPI) 2.4


70


Pensions Trust Growth Plan (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.

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.

A further actuarial valuation for the scheme was carried out at 30 September 2014. This valuation showed assets of £793m, liabilities of £970m and a deficit of £177m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as detailed in notes 27 and 31. Further details of the valuation have not been published.

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 of the 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. Therefore, the amounts of debt can be volatile over time.

When an employer withdraws from a multi-employer defined benefit pension 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). Due to a change in the definition of money purchase contained in the Pensions Act 2011 the calculation basis that applies to the Growth Plan will be amended to include Series 3 liabilities in the calculation of an employer’s debt on withdrawal.

The Growth Plan is a “last man standing” multi-employer scheme. This means that if a withdrawing employer is unable to pay its debt on withdrawal the liability is shared amongst the remaining employers. The participating employers are therefore, jointly and severally liable for the deficit in the Growth Plan. As at 30 September 2014 the total deficit calculated on the buy-out basis was £219.9m. See notes 27 and 31 for further details.


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The Independent Schools Pension Plan

Two schools participate in the Independent Schools Pension Plan, a multi-employer scheme which provides benefits to some 66 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the schools to obtain sufficient information to enable them to account for the scheme as a defined benefit scheme. Therefore, they account for the scheme as a defined contribution scheme.

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

The scheme is classified as a 'last-man standing arrangement'. Therefore the schools are potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme. See notes 27 and 31 for further details.

Teachers’ Pension Scheme

Woodard schools and academies participate in the Teachers' Pension Scheme (England and Wales) ("the TPS"), for its teaching staff. This is a multi-employer defined benefits pension scheme and it is not possible or appropriate to consistently identify the liabilities of the TPS which are attributable to the participating schools. As required by Section 28.11 of FRS102, the schools account for this scheme as if it were a defined contribution scheme.

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pensions Regulations (2010) and, from 1 April 2014, by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for full-time teachers in schools and, from 1 January 2007, automatic for teachers in part-time employment following appointment or a change of contract, although they are able to opt out.

The TPS is an unfunded scheme and members contribute on a ‘pay as you go’ basis – these contributions along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Valuation of the Teachers’ Pension Scheme

Not less than every four years the Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2012, and in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014. The valuation report was published by the Department for Education on 9 June 2014. The key elements of the valuation and subsequent consultation are:

• employer contribution rates set at 16.48% of pensionable pay (including a 0.08% employer administration charge (currently 14.1%)

• total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £191,500 million, and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £176,600 million giving a notional past service deficit of £14,900 million

• an employer cost cap of 10.9% of pensionable pay will be applied to future valuations

• the assumed real rate of return is 3.0% in excess of prices and 2% in excess of earnings. The rate of real earnings growth is assumed to be 2.75%. The assumed nominal rate of return is 5.06%

• During the year the employer contribution rate was 14.1%. The TPS valuation for 2012 determined an employer rate of 16.4% from September 2015, which will be payable during the implementation period until the next valuation as at March 2016, whereupon the employer contribution rate is expected to be reassessed and will be payable from 1 April 2019.


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27. PENSION SCHEME DEFICIT RECOVERY PLAN

Pension Deficit Recovery Plans

As outlined in note 26, Woodard and Woodard schools participate in the Pensions Trust Growth Plan and the Independent Schools Pension Plan, which are multi-employer schemes providing benefits to over 1,300 non-associated participating employers. The schemes are defined benefit schemes in the UK. It is not possible for Woodard schools to obtain sufficient information to enable them to account for the schemes as defined benefit schemes. Therefore they account for them as defined contribution schemes.

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

The schemes are classified as 'last-man standing arrangements'. Therefore Woodard schools are potentially liable for other participating employers' obligations if those employers are unable to meet their share of scheme deficits following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficits on an annuity purchase basis on withdrawal from the scheme.

Summary of provision for pension deficit recovery plan Group Company 2016 2015 2016 2015

£’000 £’000 £’000 £’000

Pensions Trust Growth Plan 2,720 2,107 16 15 The Independent Schools Pension Plan 79 37 - -

2,799 2,144 16 15

Pensions Trust Growth Plan Deficit Contributions

A full actuarial valuation for the scheme was carried out at 30 September 2011. This actuarial valuation showed assets of £780m, liabilities of £928m and a deficit of £148m. To eliminate this funding shortfall, the trustees and the participating employers have agreed that additional contributions will be paid to the scheme as follows:

From 1 April 2013 to 31 March 2023: £13.9m per annum (payable monthly and increasing by 3% each on 1st April)

A further actuarial valuation for the scheme was carried out at 30 September 2014. This valuation showed assets of £793m, liabilities of £970m and a deficit of £177m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:

From 1 April 2016 to 31 March 2025: £12.945m per annum (payable monthly and increasing by 3% each on 1st April)

From 1 April 2016 to 31 March 2028: £54,450 per annum (payable monthly and increasing by 3% each on 1st April)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the employer has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.


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27. PENSION SCHEME DEFICIT RECOVERY PLAN (Continued)

Present Values of Provision 2016 2015 £’000 £’000

Present value of provision 2,720 2,107

2016 2015 Reconciliation of opening and closing provisions £’000 £’000 Provision at 1 September 2,107 2,283 Unwinding of the discount factor 41 63 Deficit contribution paid (270) (263) Remeasurements - impact of any change in assumptions 130 24 Remeasurements - amendments to the contribution schedule 712 -

Provision at 31 August 2,720 2,107

2016 2015

Income and expenditure impact £’000 £’000 Interest expense 41 55 Unwinding of the discount factor - - Remeasurements - impact of any change in assumptions 130 23 Remeasurements - amendments to the contribution schedule 712 - Contributions paid in respect of future service 14 16 Costs recognised in income and expenditure account 409 35

Assumptions 2016 2015 2014

% per annum

% per annum

% per annum

Rate of discount 1.08 2.25 2.55

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions. Deficit Contributions Schedule The following schedule shows the deficit contributions agreed between Woodard and Woodard schools, and the scheme, at each year end period:

2016 2015 £’000 £’000

Year 1 277 273 Year 2 286 281 Year 3 295 288 Year 4 303 298 Year 5 312 307 Year 6 323 317 Year 7 332 326 Year 8 341 193 Year 9 352 - Year10 30 -

2,851 2,283


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Woodard and Woodard schools must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account, i.e. the unwinding of the discount rate as a finance cost in the period in which it arises.

It is these contributions that have been used to derive the group balance sheet liability.

The Independent Schools Pension Plan Deficit Contributions

A full actuarial valuation for the scheme was carried out at 30 September 2011. This actuarial valuation showed assets of £119.4m, liabilities of £161.2m and a deficit of £41.8m. To eliminate this funding shortfall, the trustees and the participating employers have agreed that additional contributions will be paid to the scheme as follows:

From 1 September 2013 to 31 August 2016: £3,467,000 per annum (payable monthly)

From 1 September 2016 to 31 August 2026: £3,340,000 per annum (payable monthly)

A further actuarial valuation for the scheme was carried out at 30 September 2014. This valuation showed assets of £110.0m, liabilities of £147.4m and a deficit of £37.4m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:

From 1 September 2016 to 31 August 2029: £2,341,000 per annum (payable monthly and increasing by 3% each on each 1st September)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities.

Where the scheme is in deficit and where the employer has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

Present Values of Provision 2016 2015 £’000 £’000

Present value of provision 79 37

Reconciliation of opening and closing provisions 2016 2015 £ £ Provision at 1 September 37 40 Unwinding of the discount factor 1 1 Deficit contribution paid (3) (4) Remeasurements - impact of any change in assumptions 6 - Remeasurements - amendments to the contribution schedule 38 -

Provision at 31 August 79 37

Income and expenditure impact 2016 2015 £ £ Interest expense 1 1 Remeasurements - impact of any change in assumptions 6 - Remeasurements - amendments to the contribution schedule 38 - Contributions paid in respect of future service * 7 5 Costs recognised in income and expenditure account 52 7


75


Assumptions 2016 2015 2014 % per

annum % per annum

% per annum

Rate of discount 1.34 2.61 2.91

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

Deficit Contributions Schedule

The following schedule shows the deficit contributions agreed between the school company and the scheme at each year end period:

2016 2015 2014 £’000 £’000 £’000

Year 1 5 4 4 Year 2 6 4 4 Year 3 6 4 4 Year 4 6 4 4 Year 5 6 4 4 Year 6 6 4 4 Year 7 7 4 4 Year 8 7 4 4 Year 9 7 4 4 Year 10 7 4 4 Year 11 7 4 4 Year 12 8 - 4 Year 13 8 - - The school company must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account, i.e. the unwinding of the discount rate as a finance cost in the period in which it arises.

It is these contributions that have been used to derive school companies’ balance sheet liability.

See notes 26 and 31 for further details. 28. RECONCILIATION OF NET INCOMING RESOURCES TO NET

CASH INFLOW FROM OPERATIONS

2016 2015 £’000 £’000 Net (outgoing)/ incoming resources (page 27) (125) 8,080 Depreciation charges 7,136 7,124 Investment income (419) (402) Finance and other costs 1,450 2,062 Decrease in stocks 78 57 Decrease in debtors 2,117 2,562 Decrease in assets held for resale - 150 Increase/(decrease) in creditors 7,383 (1,634) Profit on disposal of tangible fixed assets (1,846) (8,167) Realised/Unrealised losses/(gains) on investments (632) 38

Net Cash Inflow from Operating Activities 15,142 9,870


76

29. ANALYSIS OF CHANGES IN NET DEBT At 1 Sept Cash At 31 Aug

2015 Flow 2016 £’000 £’000 £’000

Cash in hand and at bank 31,795 954 32,749 Bank loans and overdrafts (21,742) (3,579) (25,321)

10,053

(2,625) 7,428

30. Consolidated Statement of Financial Activities – Comparative figures by fund type

Year Ended 31 August 2015 Unrestricted Restricted Endowed Total £’000 £’000 £’000 £’000

Income and endowments from Charitable activities

School fees receivable 89,055 30,625 2 119,682 Funding for academies educational operations

30,625

-

-

30,625

Ancillary trading income 7,882 387 - 8,269 Other trading activities Non-ancillary trading income 5,682 - - 5,682 Investments Investment income 118 86 18 222 Bank and other interest 180 - - 180 Voluntary sources Grants and donations 2,181 2,986 - 5,167 Other incoming resources 8,684 6 - 8,690

Total Incoming Resources 144,407 34,090 20 178,517

Expenditure on: Raising funds Non ancillary trading 3,514 - - 3,514 Financing costs 1,188 - - 1,188 Bank interest 837 - - 837 Investment management 11 23 3 37 Fundraising and development 223 - - 223

Total Deductible Costs 5,773 23 3 5,799

Charitable activities Education and grant making 128,546 36,041 13 164,600

Total expenditure 134,319 36,064 16 170,399


58

16

-

74


(72)

(38)

(2)

(112)

Net income/(expenditure) 10,074 (1,996) 2 8,080

Transfers between funds 1,225 (1,225) - - Other recognised gains/(losses)

Pension scheme actuarial gains/(losses)

129

(844)

-

(715)

Net movement in funds for the year

11,428 (4,065) 2 7,365

Fund balances at 1st

September 95,653

81,981

3,264

180,898

Fund Balances as at 31st

August

107,081 77,916 3,266 188,263


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31. CONTINGENT LIABILITIES

Pooled Banking Arrangements

Woodard and two subsidiary school companies subscribe to a pooled banking arrangement and overdraft facility with Lloyds Bank plc. This facility is secured by an unlimited all moneys guarantee from Woodard and the subscribers to the facility. This facility includes an omnibus letter of set-off covering all monies due both present and future from Woodard and the subscribers to the facility.

Pensions Trust Growth Plan

When an employer withdraws from a multi-employer defined benefit pension 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). Due to a change in the definition of money purchase contained in the Pensions Act 2011 the calculation basis that applies to the Growth Plan will be amended to include Series 3 liabilities in the calculation of an employer’s debt on withdrawal.

Group

Participating schools and Woodard itself have been notified by the Pensions Trust of the estimated employer debt on withdrawal from the Growth Plan, as outlined in note 26, based on the financial position of the Growth Plan as at 30 September 2015. As of these dates the estimated employer debt on withdrawal for the group was £4.918 million (2015: £5.361 million).

Company

Woodard has been notified by the Pensions Trust of the estimated employer debt on withdrawal from the Growth Plan, as outlined in note 26, based on the financial position of the Growth Plan as at 30 September 2015. As of this date the estimated employer debt for Woodard was £21,636 (2015: £25,617).

The Independent Schools’ Pension Scheme

The participating schools have been notified by The Pensions Trust of the estimated employer debt on withdrawal from the Plan based on the financial position of the Plan as at 30 September 2014. As of this date the estimated employer debt for the school was £878,105 (2015: £858,152).

32. RELATED PARTIES

Woodard holds directly or indirectly 100% of the share capital of the companies and unincorporated charities listed in note 14. An amount of £916,000 was paid during the year to Woodard by way of a levy to meet the running costs.

33. POST BALANCE SHEET EVENTS

On 1 April 2017 Polam Hall School in Darlington joined the WAT; Polam Hall was previously an independent school before converting to become a ‘free school’. The financial impact of the addition of Polam Hall was considered as part of the due diligence process before the final commitment was made. The WAT trustees are of the opinion that the addition of Polam Hall will have a positive impact on the ability of the WAT to support academy provision in the North East, linking with the WAT academy at King’s Priory School in Newcastle.


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34. ACCOUNTING ESTIMATES AND JUDGEMENTS

In preparing the financial statements, the directors are required to make estimates and judgements. The matters detailed below are considered to be the most important in understanding the judgements that are involved in preparing the financial statements and the uncertainties that could impact the amounts reported in the results of operations, financial position and cashflows. Accounting policies are shown at note 1 to the financial statements.

Pension scheme deficit reduction payments

As explained at note 27, there is a deficit reduction plan in place in respect of Woodard and Woodard schools’ membership of the Pension Trust’s Growth Plan and Independent Schools Pension Scheme. FRS 102 requires a liability to be recognised in respect of the present value of future contributions payable under the terms of the deficit recovery plan. The incorporation of this liability in the financial statements involves the exercise of judgement in a number of areas, including the selection of an appropriate discount rate.

Pension scheme contingent liability

As explained at note 31, there is a contingent liability in the event that Woodard and Woodard schools were to withdraw their membership of the Pension Trust’s Growth Plan or the Independent Schools Pension Scheme. The independent qualified actuaries advising the Pensions Trust in respect of the contingent withdrawal liability exercise significant judgement in determining the amount of that liability. Judgement is exercised in a number of areas, including future changes in salaries and inflation, mortality rates and the selection of appropriate discount rates.

35. DISCONTINUED ACTIVITY

On 6 January 2009 the educational business of Grenville College Limited discontinued when the activity at the school was transferred to Edgehill College, which is owned by the Methodist Education Group. Items of income and expenditure in the SOFA of Grenville College Limited for the year to 31 August 2015 are included in the consolidated SOFA of Woodard.

The summarised results for the year for Grenville College, as reflected in the SOFA, are: 2016 2015 £’000 £’000

Total incoming resources including profit on disposal 4 6 Total resources expended including all fees on disposal (2,371) (2,360) _____ _____

Net movement in funds (2,367) (2,354) _____ _____

The net book value of the fixed assets at 31 August 2016 was £Nil (2015: £Nil).

The loss for the year is due to making a donation to the Woodard Corporation for use in pursuit of the charitable objects.


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36. EFFECT OF TRANSITION TO FRS102 AND PRIOR PERIOD ADJUSTMENT

Funds as at 1 September 2014 reconciliation Group

Group

Group

Group

Company

Company

Company

Company

Unrestricted

Restricted

Endowed

Total

Unrestricted

Restricted

Endowed

Total

funds

funds

funds

funds

funds

funds

funds

funds

Note £’000

£’000

£’000

£’000

£’000

£’000

£’000

£’000

Funds as at 1 September 2014 as previously stated

108,572

69,146

3,264

180,982

1,292

210

20

1,522

Provision for pension scheme deficit reduction payments a (2,334)

-

-

(2,334)

(16)

-

-

(16)

Holiday pay accrual b -

-

-

-

-

-

-

-

Adjustment for building transfer to WAT c (10,585)

12,835

-

2,250

-

-

-

-

Funds as at 1 September 2014 under the

Charities SORP (FRS102) 95,653

81,981

3,264

180,898

1,276

210

20

1,506

Funds as at 31 August 2015 reconciliation

Group

Group

Group

Group

Company

Company

Company

Company

Unrestricted

Restricted

Endowed

Total

Unrestricted

Restricted

Endowed

Total

funds

funds

funds

funds

funds

funds

funds

funds

Note £’000

£’000

£’000

£’000

£’000

£’000

£’000

£’000

Funds as at 31 August 2015 as previously stated

119,813

65,081

3,266

188,160

2,320

209

20

2,549

Provision for pension scheme deficit reduction payments a (2,144) - - (2,144) (15) - - (15)

Holiday pay accrual b (3) - - (3) - - - -

Adjustment for building transfer to WAT c (10,585)

12,835

-

2,250

-

-

-

-

Funds as at 31 August 2015 under the

Charities SORP (FRS102) 107,081

77,916

3,266

188,263

2,305

209

20

2,534


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36. EFFECT OF TRANSITION TO FRS102 AND PRIOR PEIOD ADJUSTMENT (Continued)

2014/15 Net Movement in Funds Reconciliation Group

Group

Group

Company

Company

Company

Unrestricted

Restricted

Endowed

Group

Unrestricted

Restricted

Endowed

Company

net

net

net

Total net

net

net

net

Total net

movement

movement

movement

movement

movement

movement

movement

movement

in funds

in funds

in funds

in funds

in funds

in funds

in funds

In funds

Note £’000

£’000

£’000

£’000

£’000

£’000

£’000

£’000

2014/15 net movement in funds as previously stated

11,241

(4,065)

2

7,178

1,028

(1)

-

1,027

Movement in provision for pension scheme deficit reduction payments a 190

-

-

190

1

-

-

1

Movement in holiday pay accrual b (3)

-

-

(3)

-

-

-

-

2014/15 net movement in funds under the Charities SORP (FRS102)

11,428

(4,065)

2

7,365

1,029

(1)

-

1,028

Notes

a FRS 102 - The provision for pension scheme deficit reduction payments relates to the deficit recovery plan in place in respect of Woodard and Woodard schools’ membership of the Pension Trust’s Growth Plan and the Independent Schools Pension Scheme. As further explained at note 27, and in line with the Charities SORP (FRS 102), the provision shown above represents the present value of contributions payable by Woodard and Woodard schools that result from the terms of the deficit recovery plan in respect of the Growth Plan.

b FRS 102 requires recognition of the cost of all employee benefits to which employees have become entitled during the period. This has necessitated the creation of an accrual for the value of annual leave and other holiday allowances that staff are entitled to and have carried forward from one accounting year to the next.

c PRIOR PERIOD ADJUSTMENT - Included in fixed assets in 2014/15 was a gain on revaluing the freehold land and buildings at the King’s School Tynemouth that were transferred to Woodard in 2013/14 and subsequently leased to the WAT on a 125 year lease. The land and buildings were valued at £10,585,000 when transferred and were revalued by a professional valuer at £14,635,000 when leased to the WAT. Total land and buildings of £16,885,000 were transferred to the WAT at that time, but the consolidation did not identify a necessary adjustment to funds of £2,250,000 to correctly disclose the total value of buildings transferred.

directors’ report and financial statements for the …

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