The Trustees present their annual report and financial statements for the year ended 31 July 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The description under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the Trustees to present a strategic report.
Introduction
This report summarises the life and work of Albyn School over the 12 months from 1 August 2023 to 31 July 2024.
Roll
During the period of this report the school roll saw a steady decrease. The roll was 679 in May 2023 and decreased to 667 in May 2024. The roll in Nursery reduced slightly during the same period decreasing from 126 to 120.
Charitable status and charitable work
The School continues to offer bursaries in-line with the plans agreed with the Office of the Scottish Charity Regulator (OSCR). During the 2023-24 year 55 pupils received means tested support, 38 of whom received 100% assistance. The total value of this, in fee terms, equated to £733,167.
The Bridge Programme at Albyn School is a new and innovative initiative aimed at fostering transformative partnerships with nearby primary schools. This initiative is designed to provide children from low Scottish Index of Multiple Deprivation (SIMD) areas with access to essential skills for learning, life, and work. The programme serves as an academic enrichment opportunity for Primary 6 pupils from local primary schools. It is offered completely free of charge, taking place one afternoon per month and is led by dedicated pupils and staff from Albyn School. It is in its first year, and we are excited to see what outcomes there will be for pupils and staff taking part. Additionally, we host an annual Primary Schools Maths Challenge every November. This event brings together 40 children from various local schools and Albyn, fostering a collaborative and enjoyable morning of mathematical competition.
Furthermore, working with the Royal Society of Chemistry, our Chemistry department provides complimentary training to primary school teachers from state schools, equipping them with practical skills to effectively teach science in a primary setting.
Our community is encouraged to contribute to a culture of giving. A number of local charities are selected at the beginning of every academic year by the pupils with donations made from funds raised during in-school events. The School also has links with the Aberdeen Rotary Club and Instant Neighbour, organising collections every Christmas. In July 2024, we became Education Partners for CLAN, working with them to support their fundraising efforts in 2024-25.
Staffing matters
The school was fully staffed throughout the session and staff turnover during the year was once again low. August 2023 saw three retirements and seven other staff moving on, and nine staff joined the school.
A restructuring process took place during the year to create a clearer middle management structure. Our pastoral team was restructured to elevate their position and responsibility within the school, creating Principal Teachers of Pupil Support. And we created Heads of Faculty in order to bring together smaller departments to improve collaboration and pupil outcomes. There are now eight Heads of Faculty - English, Maths, Additional Support for Learning, PE & Sport, Languages, Creative Arts, Humanities & Social Sciences, Science & Technology. The last three of which are brand new, and the first five of which are reformulations of existing posts. Our Heads of Departments were aligned closer to the Scottish system and are now Principal Teachers.
During an investigation into a claim of misconduct, the Headteacher resigned from the school in June 2024. The Senior Deputy Head has been Acting Head since April 2024.
Albyn School is extensively involved in the activities of the Scottish Qualifications Authority (SQA). In 2023-24 some of our teaching staff were involved with SQA activities across a variety of subjects such as Biology, Business Management, Economics, Engineering Science, English, French, History, Maths, Modern Studies, Music, PE, Spanish and Statistics and at all levels: National 4, National 5, Higher and Advanced Higher. Albyn teachers have marked exams at one or more levels and also been assessment reviewers, team leaders, event verifiers, question paper quality assurers, question writers or visiting assessors.
Buildings, services and infrastructure
The building work to re-roof no.23 and create new rehearsal rooms and a recording studio concluded in November 2023. The Wee Music School is now using these facilities outside of school hours to deliver music lessons.
Over the summer months both the netball courts at Milltimber and the playing surface behind no.17 were resurfaced. This will provide a better experience for our pupils and extend the life of these areas.
Looking ahead
The School and wider community of parents, Former Pupils and Friends of the School continues to flourish. The school remains optimistic about the future even against the backdrop of the considerable economic and political turbulence, notably the threat of VAT on fees.
We are developing a clearer Development function in the school, with a focus on a sustained fundraising programme to launch in 2024-25 as part of our 100 years at Queens Road anniversary celebrations.
The Albyn Foundation
The subsidiary company has continued to receive donations and continues to make grant awards.
Fee assistance scheme
The school maintains a programme of fee assistance which is open to any family, present or prospective, where the prospect of paying full fees is prohibitive. In order to allow able pupils to benefit from the education provided by Albyn School and who fall into this category, applications are invited from parents. Family income is measured in order to determine whether they are eligible for fee assistance.
Pupils from primary 6 to secondary 6 benefit from the programme of fee assistance. In total 55 pupils (2023: 50 pupils) were awarded fee assistance 38 of whom received assistance of 100% of the fees. The cost of the fee assistance scheme was £738,765 (2023: £656,855). The Albyn Foundation allowed the school to further assist families receiving fee assistance by way of contribution towards their expenses.
Finance
Total income for Albyn School amounted to £12,122,631 (2023: £10,825,485). The key performance indicator is fee income which was £10,767,295 (2023: £10,416,095). Total expenditure amounted to £11,434,223 (2023: £10,648,411) with the main type of expenditure being staff costs which have increased from £7,331,840 in 2023 to £8,049,641 in 2024. Average staff numbers throughout the year have decreased from 172 in 2023 to 165 in 2024. An overall net surplus of £690,238 (2023: £175,762) has been generated.
Total designated funds amounted to £868,001 (2023: nil). These relate to legacies which are left by former pupils to the school.
Total funds of the group amount to £7,159,146 (2023: £6,468,665) and this consists of unrestricted funds of £6,489,233 (2023: £5,800,119) and restricted funds of £669,913 (2023: £668,546).
Bank and cash reserves at the year-end amounted to £1,208,505 (2023: £1,218,471).
Net bank debt at the year-end was £4,449,682 (2023: £4,330,433).
Funds held by the school are:
Unrestricted funds - these are funds which can be used in accordance with the charitable objects at the discretion of the governors.
Designated funds - these are funds which have been set aside by the trustees for specific purposes
Restricted funds - these are sources of funding recorded separately where restrictions are imposed by donors that are narrower than the school's overall charitable objects
It is the Board's intention to develop a reserves policy that will increase and maintain an appropriate level of unrestricted working capital funds into the future. The policy will ensure the School is financially secure for the long term and will provide the funds to support its strategic aims and objectives.
The total reserves of the School consist of unrestricted and restricted (appeals, funds directly related to asset purchases, prize and other funds). They are wholly invested in School facilities ensuring that day-to-day educational needs are met. The School has made use of loan facilities in order to finance major capital expenditure projects. It is the Board's intention to increase reserves when finances allow and to reduce borrowings to support the future development of the School.
The Board is responsible for the management of risks faced by the School. Risks are identified, assessed and controls established throughout the year. The School's risk review processes are undertaken annually. Through these processes the Trustees are satisfied that the major risks identified have been adequately mitigated where necessary. It recognises that systems can only provide reasonable, but not absolute assurance that major risks have been adequately managed. The key procedural controls used to manage the School's risks are as follows:
Clear terms of reference for roles and responsibilities, formal agenda for Board meetings and the School Leadership Team (SLT).
Comprehensive strategic and operational planning, budgeting, management control and financial reporting, conducted via Board and SLT meetings.
Clear structured lines of reporting.
Formal approved written policies where necessary.
Clear authorisation and approval at all levels.
Formal review of the School's risk register and management process carried out annually.
Risk management policies and objectives
The School's operations expose it to a variety of financial and other risks including credit, liquidity, interest rate and reputational risk:
Credit risk: The School's main source of income is tuition fees which are viewed as low credit risk. The amount of exposure is assessed regularly by the Board.
Liquidity risk: The School has facilities available to it to ensure that it has sufficient funds for its operations.
Interest rate: The School has loans which are both fixed and variable rates.
Reputational: The School, like any other Independent School, operates in an environment which, by its very nature, is exposed to reputational risk.
The UK government has decided to impose Value Added Tax (VAT) on independent school fees effective from 01 January 2025. At Albyn School, we view education as a charitable endeavour that enriches individuals and communities alike. The independent sector’s charitable status is founded on this principle, and we remain steadfast in upholding it. We believe that the imposition of VAT on school fees contradicts this view and risks undermining the accessibility of independent education for many families, particularly those who already make financial sacrifices or depend on bursarial support to provide this opportunity for their children. Given the challenge VAT on school fees will bring we have to adapt accordingly. We have carefully planned how best to manage the imposition of VAT and have outlined the steps we will take to mitigate the impact on our families.
In addition to VAT, the sector continues to face significant challenges in the form of ongoing cost pressures and wider consolidation in the sector. It is important that Albyn School is well positioned to meet these immediate challenges and to ensure it can continue to provide a fantastic educational experience for our young people and their families into the future. The role of Chair is key to navigating these challenges and it is essential that we attract the best possible candidates to apply for this position. In October 2024, the school articles were amended to allow the role of Chair to become a remunerated position.
Albyn School Limited is a charitable company limited by guarantee, incorporated on 21 December 1948 (company registration number SC026743) and a charity registered in Scotland (charity registration number SC008392). It is governed by its Memorandum and Articles of Association.
The School is administered by its governors/trustees. A panel comprising existing governors selects members of the governing body. There are two ways to obtain nomination. A member can obtain the support of at least three other members in the form of a simple letter request that his/her name is added to the list of persons to be considered for election as governor at the next AGM. A member or non-member can be identified by an existing governor and be asked if he/she would consider being a governor or can personally express an interest in becoming a governor directly.
Governors normally serve for a period of five years and may be re-elected for a further period. Members of the Board are not remunerated for the services that they provide but can be expected to give a great many hours attending Board and committee meetings.
The governors meet regularly to administer the activities of the school, working together with the Finance and other sub-committees which have their decisions ratified by the full Board. The day to-day management of the school is undertaken by Mr. David Starbuck, the Acting Head, and the rest of the School Leadership Team. The Bursar, Chris Simpson, is responsible for the maintenance of the financial records of the school.
Governors are encouraged to participate and attend seminars provided for new governors that are run by appropriate organisations.
Induction and training of the governors is seen as an ongoing process. The governors have reviewed and discussed the "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)".
Key management personnel (the School Leadership Team) are remunerated with reference to independent surveys for comparative schools and pay scales for the state sector equivalent post. The Board's Remuneration Committee meets annually to approve all pay awards.
The Albyn Foundation is a wholly owned subsidiary of Albyn School Limited. Graeme Bell is a director of The Albyn Foundation and also a trustee of Albyn School Limited.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
The Trustees, who are also the directors of Albyn School Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and 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 will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In accordance with the company's articles, a resolution proposing that MHA be reappointed as auditor of the company will be put at a General Meeting.
The Trustees' report was approved by the Board of Trustees.
Opinion
We have audited the financial statements of Albyn School Limited (the ‘parent charitable company’) for the year ended 31 July 2024 which comprise the group and charitable company statement of financial activities including income and expenditure account, the group and charitable company balance sheet, the group cashflow and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report and the strategic report prepared for the purposes of company law, is consistent with the financial statements; and
the strategic report and the directors' report included within the Trustees' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report included within the Trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the charitable company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified included FRS 102 and the Charities SORP, the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006.
We gained an understanding of how the charitable company is complying with these laws and regulations by making enquiries of management. We corroborated these enquiries through our review of submitted returns and board meeting minutes.
We assessed the susceptibility of the charitable company's financial statements to material misstatement, including how fraud might occur, by meeting with management to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity.
We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk.
The following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:
Reviewing minutes of meetings of those charged with governance for reference to: breaches of laws and regulation or for any indication of any potential litigation and claims; and events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud;
Reviewing the level of and reasoning behind the charitable company's procurement of legal and professional services;
Performing audit work procedures over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing judgements made by management in their calculation of accounting estimates for potential management bias;
Agreement of the financial statement disclosures to supporting documentation.
Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Albyn School Limited is a charitable company limited by guarantee incorporated in Scotland and registered with OSCR. The registered office is 2 Marischal Square, Aberdeen, AB10 1DQ. The principal address of business is 17-23 Queen's Road, Aberdeen, AB15 4PB.
The financial statements have been prepared in accordance with the charitable company's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charitable company is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention modified for fair value as appropriate. The principal accounting policies adopted are set out below.
The charitable company has taken advantage of the reduced disclosure framework of FRS 102 available to certain qualifying entities, namely the requirement to present an individual company statement of cash flows.
At the time of approving the financial statements, the trustees have a reasonable expectation that the group and charitable company have adequate resources to continue in operational existence for at least the next 12 months from the date on which these financial statements have been approved. The trustees have prepared cash flow forecasts which take account of anticipated changes in income and expenditure and are confident that there will be sufficient liquid reserves available to allow the group and charitable company to meet their liabilities as they fall due for a period of at least the next 12 months from the date of approval of the financial statements. Thus, having not identified any material uncertainties, the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
General funds are unrestricted funds which are available for use at the discretion of the governors in furtherance of the general objectives of the school and which have not been designated for other purposes.
Restricted funds include funds which are to be used in accordance with specific restrictions imposed by donors, funds which have been raised by the school for particular purposes and the funds of the subsidiary undertaking. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income and gains are allocated to the appropriate fund.
Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received, as shown as follows:
when donors specify that donations and grants given to the charitable company must be used in future accounting periods, the income is deferred until those periods;
when donors impose conditions which have to be fulfilled before the charitable company becomes entitled to use such income, the income is deferred and not included in incoming resources until the pre-conditions for use have been met;
gifts in kind are included in donations at the charitable company's best estimate of fair value. The value of services provided by volunteers has not been included in these financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised in the Statement of Financial Activities when the legacy has been received or it is probable that the legacy will be received and the value can be measured with sufficient reliability.
Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided.
Investment income represents interest entitlements accounted for as they accrue.
All expenditure is included in the financial statements on an accruals basis. Liabilities are recognised when the charitable company has a legal or constructive obligation to incur a transfer of economic benefit.
Charitable activities include all costs relating to activities where the primary aim is part of the objects of the school. This includes all the staff costs.
Governance costs are costs associated with the governance arrangements of the charitable company and include fees for audit and preparing statutory financial statements.
Support costs include all costs relating to activities in support of the running of the school, which is the primary aim of the group and charitable company.
Tangible fixed assets, including those under the course of construction, are capitalised at their purchase price together with any incidental expenses of acquisition. Assets with a cost below £3,000 are not normally capitalised. Refurbishment of rooms, areas or buildings are generally not capitalised.
Land is not depreciated. Depreciation of other assets is calculated so as to write off the cost of tangible fixed assets, less their estimated residual value, over the expected useful economic lives of the assets concerned. Assets in the course of construction are not depreciated until they are available for use. The principal annual rates used for this purpose are:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Impairment of fixed assets
At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/expenditure for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Investments are included at closing mid-market value, deemed to be fair value, at the balance sheet date. Any realised and unrealised gains and losses on revaluation or disposals are combined in the statement of financial activities.
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call in a one month notice account with banks.
The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include trade receivables and cash and bank balances, are measured at transaction price including transaction costs.
Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charitable company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less.
Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.
The school is a registered charity with HMRC, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the charity's primary objectives, if these profits and surpluses are applied solely for charitable purposes.
The school is not registered for VAT and accordingly, all its expenditure is recorded inclusive of any VAT incurred.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Some members of staff are members of the Scottish Teachers' Superannuation Scheme which is a multi-employer defined benefit scheme. Contributions to the fund are advised by the Scottish Office Pension Agency and are charged to the statement of financial affairs (SOFA) so as to spread the cost of pensions over the period during which the school benefits form the employees' services. It is not possible for the school to identify its share of the underlying assets and liabilities (as detailed in note 20). Consequently, in accordance with FRS102, the scheme is accounted for as a defined contribution scheme and contributions are recognised in the SOFA as they are payable.
All non-academic staff are entitled to join the school's defined contribution scheme. Contributions payable for the year are charged to the SOFA.
Rentals applicable to operating leases are charged to the statement of financial activities on a straight line basis over the lease terms.
In the application of the charitable company’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The group makes an assessment of the recoverable value of amounts due from debtors and make a provision where the debt is not expected to be recoverable. The carrying value of the relevant debts is £132,276 (2023: £127,418).
The estimated useful economic life of each class of asset and residual value is a judgement exercised by the trustees. The carrying value of total fixed assets is £10,373,184 (2023: £10,305,212). Depreciation in the year was £365,394 (2023: £292,256).
In August 2021, a valuation for lending purposes of certain of the charitable company's properties was carried out which gave rise to a potential indicator of impairment. The trustees prepared, and have revisited, detailed cash flow forecasts and considered the expected future income to be generated by these properties, and are satisfied that the value in use is significantly higher than the lending valuation and exceeds the carrying value in the financial statement and therefore conclude that no impairment exists.
Fees
Fees
Catering income
Catering income
Teaching costs
Property costs
Field and bus expenses
Catering expenses
Administration expenses
Property loan interest
Professional fees
Bursaries
Included within governance costs are audit fees of £21,000 (2023: £22,620).
Teaching costs
Property costs
Field and bus expenses
Catering expenses
Administration expenses
Property loan interest
Professional fees
Bursaries
Included within governance costs are audit fees of £21,000 (2023: £22,620).
There was no remuneration or other benefits paid to trustees, or any persons connected with them, not paid directly on their behalf for the year ended 31 July 2024 nor for the year ended 31 July 2023.
Trustee's expenses
There were no expenses paid to trustees or any persons connected with them for the year ended 31 July 2024 nor for the year ended 31 July 2023.
The average monthly number of employees during the year was:
The remuneration of key management personnel was as follows:
The group is exempt from taxation on its activities because all its income is applied for charitable purposes.
All the above tangible fixed assets are held for the purpose of the charity.
Freehold property includes non-depreciable land of £150,000 (2023: £150,000).
There were no investment assets outside the UK.
The Albyn Foundation is a company limited by guarantee and has no share capital, therefore there is no cost to include above.
The company controls The Albyn Foundation, a charitable company incorporated in Scotland:
Registered company number: SC348754
Registered charity number: SC039894
The principal activity of The Albyn Foundation is the advancement of education for the public benefit through granting and establishing bursaries, scholarships and prizes. The Albyn Foundation's registered office is 2 Marischal Square, Broad Street, Aberdeen AB10 1DQ.
The group and charitable company have four term loans.
The first term loan balance, of which £392,106 is outstanding at 31 July 2024, is repayable by monthly instalments over a total period of 20 years. Interest is charged at 1.95% per annum over LIBOR (replaced by SONIA from 1 January 2022).
The second term loan balance, of which £1,146,733 is outstanding at 31 July 2024, is repayable by monthly instalments over a total period of 20 years. Interest is fixed at 3.28% per annum for the first 5 years and thereafter is 2.5% per annum over the Bank of England base rate.
The third term loan balance, of which £2,419,665 is outstanding at 31 July 2024, is repayable by monthly instalments over a total period of 10 years. Interest is charged at 2.35% over the Bank of England base rate for the first year, 2.15% over the Bank of England base rate for the second year and thereafter 1.95% over the Bank of England base rate.
The fourth term loan balance, of which £491,178 is outstanding at 31 July 2024, is repayable by monthly instalments over a total period of 8 years. Interest is charged at 1.80% per annum over the Bank of England Base Rate.
There are bonds and floating charges, held by HSBC Bank plc, over the assets of the School. HSBC Bank plc holds a standard security over 17-23 Queen's Road and 19 Queen's Lane South, Aberdeen.
Deferred income relates to monies received in advance for which entitlement falls in a future accounting period.
Deferred income is included in the financial statements as follows:
Scottish Teachers’ Pension Scheme
The School participates in the Scottish Teachers' Pension Scheme. The scheme is an unfunded multi-employer defined benefit scheme. It is accepted that the treatment can be as a defined contribution scheme as Albyn School is unable to identify its share of the underlying assets and liabilities of the scheme. An actuarial valuation was carried out at 31 March 2016. The results of this valuation were rolled forward to give a liability of £53.5 billion at 31 March 2022 (latest available).
As the scheme is unfunded there can be no surplus or shortfall. Pension contribution rates will be set by the scheme's actuary at a level to meet the cost of pensions as they accrue.
Financial assumptions at 31 March 2023 (latest available):
Rate of return (discount rate): 4.15%
Rate of return in excess of:
Earnings increases: 0.5%
Price increases: 1.7%
The cost recognised in the statement of financial activities is equal to the contributions payable to the scheme for the year. The employer made contributions of 23% which increased to 26% on 1 April 2024. Employee contributions range between 7.2% and 11.9%.
The total employer contributions to the scheme in the year were £950,245 (2023: £823,579) and outstanding employer contributions at the balance sheet date were £83,429 (2023: £70,613).
The School also operates a staff group personal pension scheme with Royal London. The total employer contributions to the scheme in the year were £132,419 (2023: £105,619) and outstanding employer contributions at the balance sheet date were £10,680 (2023: £10,661).
The charge to profit or loss in respect of defined contribution schemes was £1,088,286 (2023: £942,231).
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
The New Development Appeal was set up to fund the science block extension which was completed on 31 July 2003.
The Special Purpose Prize Fund is spent on prizes for school pupils.
The Lawrence Art Legacy Fund relates to donations received which are to be used for the payment of an award for artistic achievement or to provide a scholarship to enable the children at Albyn School to study and research an artistic theme.
The Engineering Science Block Wood Fund relates to monies received from the Wood Foundation for the construction of a new engineering and science block.
The ASPA Piano Fund relates to monies to assist with the purchase of a new piano.
The ASPA lights fund relates to monies to be used to improve the lighting for shows in the main assembly hall.
The FP award fund is to be used to provide a prize as part of the annual former pupils award made to an Albyn pupils.
The Foundation Fund relates to the subsidiary charitable company, The Albyn Foundation, which is restricted to granting and establishing bursaries, scholarships and prizes.
These are unrestricted funds which are material to the charitable company's activities.
These designated funds are monies bequeathed to Albyn School by former pupils and are to be used in line with our Will and Charitable Legacy policy.
At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Amounts contracted for but not provided in the financial statements:
There are capital commitments totalling £24,313 at the balance sheet date (2023: £319,378).
During the year, 3 (2023: 3) of the governors had children who attended the school. Colin Boag, who was a director of Albyn School Limited, was also a director of The Albyn Foundation until he resigned from both on the 28 June 2024. On 28 June 2024 Graeme Bell. who is also a director of Albyn School Limited, was appointed as a director of The Albyn Foundation.
The school and its pupils/potential pupils are to be the beneficiaries of any funds raised by The Albyn Foundation. All expenses of The Albyn Foundation are met by the school and during the year audit fees of £3,000 (2023: £3,000) were incurred.
Albyn School Limited received donations of £4,966 (2023: £8,702) during the year from The Albyn Foundation and made donations to it of £240 (2023: £11,800).
The members' liability is limited by guarantee and, in the event of winding up, does not exceed 5p per member.