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REGISTERED COMPANY NUMBER: SC023577 (Scotland)

REGISTERED CHARITY NUMBER: SC09352














REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST AUGUST 2024


FOR



ST. MARY'S SCHOOL, MELROSE



ST. MARY'S SCHOOL, MELROSE








CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST AUGUST 2024






Page




Report of the Trustees  

1


to


11



Report of the Independent Auditors  

12


to


15



Statement of Financial Activities  

16




Balance Sheet  

17


to


18



Cash Flow Statement  

19




Notes to the Cash Flow Statement  

20




Notes to the Financial Statements  

21


to


32


ST. MARY'S SCHOOL, MELROSE (REGISTERED NUMBER: SC023577)



REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2024



The School Governors, who are also the trustees and directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st August 2024.  The trustees have adopted the provisions of 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).


St. Mary's School, Melrose is a charitable company founded in 1945 with the liability of its members limited to £1 each by guarantee.


Objectives and aims

In accordance with Charitable Company's Memorandum and Articles of Association, the object of the School is the advancement of education.


Principle activities

The company operates an independent preparatory school.


School development plan

The School's core values of caring, communication, curriculum, confidence, connectivity, and curiosity underpin daily life at St. Mary's. These values are central to St. Mary's education and are lived out every day in the busy routines of pupils and staff. The review of schemes of work and assessment throughout the lower, middle, and upper parts of the School are on-going with the Headmaster, Director of Studies and Class Teachers from pre-prep through to Form 8 reporting to the Education Committee of the Board of Governors. The Education Committee serves the function of channelling ideas from pupils and staff to the Board of Governors and the presence, throughout the year, of three Governors on this Committee offers a regular overview. The Committee meets on a termly basis to discuss key agenda items such as, Health and Safety in the classroom; Child Protection and General Data Protection Regulation (GDPR); Innovative Classroom practice; Access to learning, and the campus.


Pupils at St. Mary's enjoy learning and parents and pupils have been positive about their experiences both within the academic and wider life of the School. The Eco Committee, Library Group, Boarding Committee, and Rights Respecting School Award Committee are all examples of forums where the pupil voice makes a significant difference to life at St. Mary's. In addition, staff are active in seeking the opinions of pupils in their subject areas and acting upon feedback. Any concerns raised are taken seriously and open conversation amongst pupils, parents and staff is encouraged and valued.  Our "You Said, We Did" wall provides an excellent visual display of the pupil voice.


As well as the core subjects of English, Maths and Science, pupils attend lessons in Spanish, French, History, Geography, Theology, Philosophy and Religion (TPR), Classical Civilisation, Religious and Moral Education (RME), Latin, Information Computer Technology (ICT), Art, Design and Technology, Personal and Social Health Education (PSHE), Music, Drama, Physical Education (PE), Environmental Studies, and Environmental Science as they progress through the school.  In the final years pupils may be invited to study Ancient Greek as an additional Common Entrance subject.  Teaching at St. Mary's is creative, engaging, inspiring and fun.  This is monitored and supported by regular review of practice along with our Professional Review and Development (PRD) system, in service training (INSET) days and engagement with the General Teaching Council for Scotland (GTCS).



ST. MARY'S SCHOOL, MELROSE (REGISTERED NUMBER: SC023577)



REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2024


The PRD system has a two-year cycle and provides staff with the opportunity to access training, develop their skills, knowledge and understanding and set personal goals and targets with support of their line manager.  This process also complements the opportunity for staff to contribute to the Whole School Improvement Plan by providing a platform where ideas, observations and opinions can be shared about the day to day running of the school and the medium and longer term strategies in place.


St. Mary's has an excellent Learning Support Department that ensures specific learning needs are catered for appropriately and sensitively.  Children requiring additional support with their learning are identified through regular staff meetings and testing is carried out where appropriate.  Staff are proactive in the staged intervention process within the school and support is provided within the regular classroom setting where possible, and on a one-to-one or small group basis where it is deemed more advantageous to the pupil/pupils. We work with parents, pupils, and outside agencies to support individual children and incorporate advice and resources into our planning and professional development.  The school is accessible to all users and is well equipped to meet the needs of our children and staff.


Monitoring of Health and Wellbeing continues to be of prime importance, with Form Tutors creating opportunities for sharing feelings and exploring emotions and anxieties. We have the ongoing input of one of our Governors who works professionally and expertly in the field of counselling and psychology. Weekly assemblies offer an opportunity for the whole school to gather with Headmaster, staff and pupil-led assemblies taking place, as well as a range of invited guests


Community partnerships and shared benefit

The School is very much part of the independent school network north and south of the border. Visits to various schools, both for staff training or educational and extra-curricular activities, allow St. Mary's to maintain close links with other schools. Equally, visits from independent prep schools and senior schools are commonplace and enhance the valued links the School has with other independent schools. Heads and other representatives from senior schools visit St. Mary's throughout the School year to deliver an Assembly address, afterwards meeting with pupils, staff and parents.


After a three year break due to Covid restrictions and the cancellation in 2022 following the passing of HM Queen Elizabeth II, Bang Goes the Borders returned to the campus in September 2023 with a full programme of engaging workshops for youngsters from across the Borders.  Sponsored by Vision Scotland and Bright Green Nature, we welcomed presenters from Senior Schools, Universities, Colleges, and national organisations such as Glasgow Science Centre and the RNLI.  Sponsorship means that this event remains open to all and is free to attend.


St. Mary's is proud of its place within the local community and constantly strives to work with partners to provide educational opportunities for all and integrating into local community life. Many pupils participated in Melrose Festival week, representing the school by singing at the Crowning Ceremony, and riding in the junior rideout. Much success was celebrated by our young equestrians, competing locally and further afield, several of whom qualified for the British Championships in October 2024. Many children play for their rugby clubs in Melrose, Selkirk, Lauder and Jedburgh and the local Fjordhus Reivers hockey club is very well attended by St. Mary's pupils. The relationships between these clubs and the school are positive and mutually beneficial. Links with local brass bands saw pupils performing with Jedburgh Instrumental Band and Galashiels Town Band, including participation in Scottish Borders Brass Band workshops, contests and the National Youth Brass Band Championships of Scotland.


St. Mary's has closer links with the community than ever before. By continuing to increase and strengthen its involvement with schools, opportunities are provided for local schools to be involved in leadership challenge activities, choir concerts, music lessons and drama productions. Opportunities to link with Melrose Primary School and Earlston High School, whether for sports fixtures or coaching sessions, have allowed a rapport to develop between pupils and staff.


ST. MARY'S SCHOOL, MELROSE (REGISTERED NUMBER: SC023577)



REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2024



These community links have also led to St Mary's offering work experience opportunities to senior school pupils from Peebles, Selkirk, Earlston, Hawick High Schools and Galashiels Academy. Links with Borders College enable us to offer placements to students within Kindergarten and Reception Class to complete their HNC Early Years courses.


Bursary allocation remains high, the School recognises the need to support families and the benefit that bursarial support offers to families, providing an independent preparatory school education for their children. All bursary applications are subject to due diligence and require annual re-application.



ST. MARY'S SCHOOL, MELROSE (REGISTERED NUMBER: SC023577)



REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2024


STRATEGIC REPORT

Achievement and performance

The Trustees would like to thank all St Mary's staff for their hard work and dedication throughout the academic year.


The curriculum continues to be well balanced and appropriately rigorous, presenting parents a wider choice of senior schools for their children. The school prides itself on its academic record and achievements within the disciplines of sport, performing arts and the creative arts. School examination results are measured against expectations from GL Assessment Cognitive Ability Testing (CAT) that takes place for each pupil in September each year. Achieved results indicate all pupils achieve above expected levels at Common Entrance (CE). This year our pupils collectively earned a total of 1 academic scholarship, 5 sports scholarships, 1 sports exhibition, 1 music exhibition, 1 drama scholarship and 1 all-rounder scholarship in music, drama, and sport.  All Form 8 pupils passed Common Entrance and gained entrance to their chosen senior school.


Data from the Accelerated Reader initiative continues to give us a detailed overview of pupils' reading engagement and progress, which informs curriculum-planning and specific small-group or individual attention. Developing the school library has allowed for enhanced visibility of reading achievement and associated initiatives.


Following the assembly of a portfolio for our Reading Schools Award application a targeted collection of evidence was put together and we achieved our Reading Schools Core Award in Michaelmas Term 2024. The 2024-25 academic year will see us aim for the Silver level.  This initiative has been superbly supported by our active pupil Library Committee.


The Collins Big Cat Phonics programme was introduced part way through the academic year to the Pre-Prep curriculum.  Parent sessions were held, and the response was incredibly positive.  As a result, the School will roll this out to the Middle School in the academic year 2024-25.


Two members of staff undertook the "Girls on Board" training and a rollout of the programme has now been planned for the PSHE lessons in the academic year 2024-25.


In the 2024 UK Mathematics Trust Junior Challenge our senior pupils secured 11 awards in total.  Pupils in Form 7 earned 4 Bronze and a Silver whilst Form 8 secured 3 Bronze and 3 Silver awards.  Several pupils were very unlucky to miss out by the narrowest of margins this year.


Digital Technology continues to feature daily in teaching and learnings.  Touch-typing skills are embedded within the curriculum from Form 2 upwards.  Regular Online Safety sessions take place with all pupils, and one member of staff embarked upon the first stage of the CEOP Ambassador Training.


Instrument instruction continues to flourish, with a cohort of eleven visiting instructors, coaching our young people on a wide variety of instruments. Pupils were able to sit grade exams with the Associated Board of the Royal Schools of Music, Trinity College and Rock School, with many gaining passes with Merit or Distinction.  Senior pupils were fortunate to attend a performance by the Scottish Chamber Orchestra in Galashiels.



ST. MARY'S SCHOOL, MELROSE (REGISTERED NUMBER: SC023577)



REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2024


Our athletes were thrilled to compete at a Fettes College athletics event in June and deservedly came away with 16 gold, 15 silver and 13 bronze medals. One of our Form 8 pupils was named as the outstanding athlete at the event, and we retained the Saville Cup for relays.  Several of our pupils are members of our local athletics club, Gala Harriers, and benefit hugely from the collaborative coaching that takes place between school and club.  In Cross Country, the U11 girls were placed first at the IAPS event and the U9 and U11 boys and girls placed first at Merchiston relays.  One pupil was awarded a gold medal at the Scottish Independent Prep Schools' Cross Country event.


We were delighted to have 9 players in the South of Scotland hockey squads (boys and girls). Representing the South of Scotland is the first step in the Scottish Hockey Pathway. Once again, we had excellent representation in the Thistles hockey, rugby, and netball.


The eco committee engaged with three main initiatives during the year; the WWF program - Food Waste Warriors - looking at reducing food waste; growing plants with our Reception to Form 2 classes, and finally the continued work on our wildlife corridor through our environment science lessons.


The Food Waste Warriors project resulted in several recommendations being made to the kitchen and management teams and work continues to ensure we achieve minimal food waste.  Form 7 pupils worked alongside our young Pre-Prep pupils to raise a wide variety of seedlings which were then sold to the wider school community and raised £90 towards the cost of new corridor toys/games for our young pupils.  Work on the wildlife corridor included tidying up and weeding the developing hedge; finishing the deadwood hedger around the pond and adding bulbs to various places around campus.  For the 4th year running the meadow area was prepared for a new strategy of planting to see if we can get anything other than grass to grow.


The School's general programme of maintenance and repair work continued throughout the year.  This included a complete refurbishment of the Boys Duffy Passage Toilets and the re-surfacing of the All-Weather Surface.


During the year, the Brownlie Gym project was completed, and the new indoor space is proving to be of huge benefit not only for games and PE lessons but also as a valuable resource for our youngest pupils in Kindergarten and our boarders.


The School continued to benefit from the support provided by The Friends of St. Mary's and Former Pupils (FP) Club. The Friends of St. Mary's, an active parent-led group who fundraise, support and organise several events throughout the school year. They hosted a re-vamped wonderful Winter Wonderland in early December, as well as helping to organise our Save the Children Christmas Jumper Day. In the Lent Term, a fantastic fundraising quiz was held for parents, staff and guests and in June the Summer Fair was an enormous success from which a donation of £100 was made to each Form Class.  In addition, the Friends donated money to several projects including the purchase of Numnahs for our Equestrian team; new reading books for Reception and Form 1; sound engineer for the Form 5 and 7 Christmas Show; accessories for the girls boarding house and bouncy castle for Kindergarten's annual Teddy Bears Picnic.


The FP Club donated extra funds to those they had made in 2022-23 towards the cost of an additional panel to the fabulous mural in the dining room and towards cost of sound engineer for our two shows during Lent Term 2024.


During the academic year, the School embarked upon its Rights Respecting School Award journey and we achieved a Bronze Award in March 2023. The action plan for Bronze lays out our goals for the Silver Award which we will embark upon in the academic year 2023-24.



ST. MARY'S SCHOOL, MELROSE (REGISTERED NUMBER: SC023577)



REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2024


The School welcomes the close relationship with parents and families having an open-door approach with the Headmaster and staff, ensuring a supportive environment for all pupils.  Parent engagement with our School Portal and App has been good with all our families registered.  Pupil reports and general notices are sent out via the Portal and App and staff have found this to be a quick and easy means of communication when on the move, particularly at sporting events.  Our social media pages continue to have excellent engagement with current and prospective families, former pupils, and wider community.


During the academic year, the School consolidated its work with the Rights Respecting School Award programme and continued to work towards achieving Silver Award.


The School has several key performance indicators that are regularly reviewed and monitored. These are set and reviewed in conjunction with the Board of Governors and are split into financial and non-financial key performance indicators (KPIs). Current indicators include but are not limited to income levels, pupil numbers, management of operating and capital costs, bursary support, health and safety including monitoring pastoral care, and staff development.



ST. MARY'S SCHOOL, MELROSE (REGISTERED NUMBER: SC023577)



REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2024



STRATEGIC REPORT

Financial review

The principal source of income is fees. Net income of £170,264, shown after investment gains of £37,432, was achieved during the year, being net income of £66,644 to the general fund, and net income of £103,620 to the restricted fund. The Governors are pleased with the overall performance of the School.


Class and boarding fees amounted to £2,451,937 after discounts of £186,357 and bursaries of £321,123 (2023 £2,323,131 after discounts of £139,507 and bursaries of £363,481).


The value of each class of discount was as follows:



£



Bursaries Awarded 2024  


321,123




Discounts Awarded 2024



Staff


100,703



Sibling


78,117



Other


7,537



Total Discounts 2024


507,480




This is shown in terms of the number of pupils receiving assistance as follows:



No. of

Pupils



Bursary only


39



Discount only


31



Bursary & discounts


1




Total pupils receiving assistance


71





The Trustees identify the principal risks and uncertainties to be pupil numbers, loss of key personnel and damage to the School's reputation. In addition the current economic and political environment is uncertain, which may present a significant challenge, particularly taxation policy.


The main factors likely to affect future financial performance, include the failure to manage costs, such as rising rates, utilities and employer pension costs that may all lead to higher fees which in turn become unaffordable for some families resulting in a drop in pupil numbers.  In addition, the announcement by the newly appointed Labour Government to introduce VAT on fees from January 2025 will have a significant impact on the School's finances.  The School will need to manage this as well as it possibly can to support current families and minimise the risk to the school roll.


Fixed assets

The Trustees are of the opinion that, in aggregate, the market value of land and buildings is no less than the book value of the assets.


Reserves policy

In recent years' surpluses have allowed the School to start building a cash reserve to assist in meeting objectives in developing the School. The policy remains to strengthen reserves where possible although this is impacted by the economic environment and challenges faced by the School at the time.



ST. MARY'S SCHOOL, MELROSE (REGISTERED NUMBER: SC023577)



REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2024



STRATEGIC REPORT

Development of the fabric of the School will continue to be a work in progress and various elements of refurbishment are constantly being actioned or are under review.


The Trustees are satisfied that they have sufficient reserves for maintaining and developing the fabric of the School and as a reserve for general running costs in the short term.


Future plans

This year's income and strong financial planning over previous years allowed the Governors to once again recognise the enormous effort and commitment put in by the staff, both teaching and non-teaching, by awarding a pay increase for the 2024-25 academic year. It will also allow the Governors to consider moving forward with various development projects although in the current economic climate, it remains the case that continued investment in the School will require the Board to manage the School finances more carefully than ever in the year ahead. There is however a continued commitment and support from the Board of Trustees to ensure St Mary's continues to grow and position itself as one of the best Prep Schools in Scotland.


STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its Memorandum and Articles of Association and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.


Governing body

The Board of Governors (Trustees) determine the general policy of the School. The day to day management of the School is delegated to the Headmaster. The membership of the Board during the year is set out below. All Trustees served throughout the year except as stated.


Mrs G, Adamson and Dr R. Murphy retire by rotation at the AGM. Being eligible, they both offer themselves for re-election.


The company has no share capital and therefore no Trustee holds any shares but each, as a member, has guaranteed to pay a sum of £1 if called upon. Trustees are elected in accordance with the terms set out in the Articles of Association. Trustees are elected for a three-year term for a period not normally exceeding twenty years.


Recruitment, appointment, and development of new trustees

When vacancies arise, Trustees are very carefully selected based on the benefit that their experience and expertise can bring to the Board. The Board strive to ensure a wide mix of skills and experience exists within the group. Trustees regularly attend training courses and seminars run by bodies such as the Scottish Council of Independent Schools to ensure knowledge within the group is both developed and up to date.


The School continues to draw from its Parent Body for Parent Governors, with appropriate skills, as required. The Board of Trustees of St Mary's School, Melrose recognises that there will continue to be challenges for the School and its parent body. The Trustees are confident the School is strongly placed to continue with development plans and to provide help where needed. The School will be governed prudently and wisely to ensure that St Mary's stands strong and ready to embrace the future.


Key management remuneration

Remuneration of key management is determined by the Finance and General Purposes Committee, for approval by the Board, considering employees' level of responsibility and salaries paid by similar organisations.



ST. MARY'S SCHOOL, MELROSE (REGISTERED NUMBER: SC023577)



REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2024



STRUCTURE, GOVERNANCE AND MANAGEMENT

Risk management

The Board continues to keep the School's activities under review, particularly regarding any major risks that may arise and to monitor steps which can be taken by which those risks already identified by the Trustees can be mitigated. At each Board meeting the Governors discussed at length the challenges facing the independent education sector and the implications for St. Mary's School. A risk register is in place, monitored, reviewed and maintained by a committee of 11 staff members from different areas of the School. The document is overseen by the Governance Committee who report back to the full Board on a termly basis with a summary of key considerations.. The register examines the Structure, Governance and Management of the School's operations, considering the major risks, allocating responsibilities, and suggests appropriate mitigating actions.


It is the opinion of the Governors that the School's management team has established resources and review systems which, under normal conditions, should allow risks to be mitigated to an acceptable level in the day-to-day operations of the School.


REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

SC023577 (Scotland)


Registered Charity number

SC09352


Registered office

Abbey Park

Melrose

Roxburghshire

TD6 9LN


Trustees

G T G Baird (Chairman)

Mrs G L Adamson

G Aitkenhead

A J Armstrong

J D Casson (resigned 16.5.24)

P Macdonald (appointed 21.2.24)

Mrs F X H Maclay

Dr R Murphy

J S Robertson (resigned 31.8.24)

Mrs R Trotter (appointed 21.2.24)

B Weir (appointed 21.2.24)


Headmaster

W Harvey

BEd (Hons)


Company Secretary

Mrs F M Tait


Senior Statutory Auditor

Kevin D Ferguson


ST. MARY'S SCHOOL, MELROSE (REGISTERED NUMBER: SC023577)



REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2024



REFERENCE AND ADMINISTRATIVE DETAILS

Auditors

JRW Hogg & Thorburn LLP

Chartered Accountants &

Statutory Auditor

19 Buccleuch Street

Hawick

Roxburghshire

TD9 0HL


Solicitors

Lindsays

Caledonian Exchange

19a Canning Street

Edinburgh

EH3 8HE


Banking Services

Royal Bank of Scotland

36 St Andrew's Square

Edinburgh

EH2 2YB


STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of St. Mary's School, Melrose for the purposes of company law) are responsible for preparing the Report of the Trustees 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 period. In preparing those financial statements, the trustees are required to


-

select suitable accounting policies and then apply them consistently;

-

observe the methods and principles in the Charity SORP;

-

make judgements and estimates that are reasonable and prudent;

-

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


The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.


In so far as the trustees are aware:


-

there is no relevant audit information of which the charitable company's auditors are unaware; and

-

the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.



ST. MARY'S SCHOOL, MELROSE (REGISTERED NUMBER: SC023577)



REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2024


AUDITORS

The auditors,  JRW Hogg & Thorburn LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.


Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 5th February 2025 and signed on the board's behalf by:






Mrs G L Adamson - Trustee


REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES AND MEMBERS OF

ST. MARY'S SCHOOL, MELROSE


Opinion

We have audited the financial statements of St. Mary's School, Melrose (the 'charitable company') for the year ended 31st August 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the charitable company's affairs as at 31st August 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 8 of the Charities Accounts (Scotland) Regulations 2006.

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 Auditors' responsibilities for the audit of the financial statements section of our report.  We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern

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 charitable company'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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.


Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.


In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.


REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES AND MEMBERS OF

ST. MARY'S SCHOOL, MELROSE



Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-

the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

the Report of the Trustees has been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.


We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

-

adequate and proper 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.


Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees 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.


REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES AND MEMBERS OF

ST. MARY'S SCHOOL, MELROSE



Our responsibilities for the audit of the financial statements

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 a Report of the Independent Auditors 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:


dentifying and assessing potential risks related to irregularities

Enquiring with management and trustees, including obtaining and reviewing supporting documentation, concerning the charities policies and procedures relating to:

-  Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances on non compliance;

-  Detecting and responding to the risks of fraud and whether they have any knowledge of any actual, suspected or alleged fraud; and

-   The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;

Discussing with the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud.

Obtaining an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a direct effect on the financial statements. These areas were identified through enquiries with trustees, management and our knowledge and understanding of the charity accumulated throughout the audit and our sector-specific experience.


Audit responses to risks identified

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud being expenditure payments and fee income receipts.


In addition to the above, our procedures to respond to the risks identified included the following:

- Reviewing the financial statement disclosures and testing and supporting documentation to assess compliance with relevant laws and regulations identified as having a direct effect on the financial statements;

-  Performing analytical procedures to identify and unusual or unexpected relationships that may indicate the risk of material misstatement due to fraud;

- Testing of fee income receivable and ensuring these were received;

-  Reading minutes of trustee meetings;

-  In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments.


We also communicated relevant laws and regulations identified as potential fraud risks to all the engagement team members and remained vigilant to any indications of fraud or non-compliance with laws and regulations throughout the audit.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.



REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES AND MEMBERS OF

ST. MARY'S SCHOOL, MELROSE


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.


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, and to the charitable company's trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and the trustees those matters we are required to state to them in an auditors' 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.





Kevin D Ferguson (Senior Statutory Auditor)

for and on behalf of JRW Hogg & Thorburn LLP

Chartered Accountants &

Statutory Auditor

Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006

19 Buccleuch Street

Hawick

Roxburghshire

TD9 0HL


6th February 2025



ST. MARY'S SCHOOL, MELROSE



STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31ST AUGUST 2024



2024


2023


Unrestricted


Restricted


Total


Total


fund


funds


funds


funds


Notes

£   

£   

£   

£   


INCOME AND ENDOWMENTS FROM

Donations and legacies

2

72


70,396


70,468


29,769



Charitable activities

4

School fees receivable

2,451,937


-


2,451,937


2,323,131



Investment income

3

33,531


8


33,539


15,933


Other income

5

34,348


-


34,348


36,552


Total

2,519,888


70,404


2,590,292


2,405,385



EXPENDITURE ON

Charitable activities

6

School fees receivable

13


-


13


-


School operating costs

2,453,724


3,723


2,457,447


2,230,803


Total

2,453,737


3,723


2,457,460


2,230,803



Net gains on investments

493


36,939


37,432


845



NET INCOME

66,644


103,620


170,264


175,427


Transfers between funds

20

(10,000

)

10,000


-


-


Net movement in funds

56,644


113,620


170,264


175,427



RECONCILIATION OF FUNDS

Total funds brought forward

4,870,243


247,244


5,117,487


4,942,060



TOTAL FUNDS CARRIED FORWARD

4,926,887


360,864


5,287,751


5,117,487



ST. MARY'S SCHOOL, MELROSE (REGISTERED NUMBER: SC023577)



BALANCE SHEET

31ST AUGUST 2024



2024


2023


Notes

£   

£   


FIXED ASSETS


Tangible assets

12

3,623,568


3,260,328


Investments

13

261,255


213,823


3,884,823


3,474,151



CURRENT ASSETS


Stocks

14

900


900


Debtors

15

129,370


50,993


Cash at bank and in hand

1,705,835


1,643,425


1,836,105


1,695,318



CREDITORS


Amounts falling due within one year

16

(433,177

)

(51,982

)


NET CURRENT ASSETS

1,402,928


1,643,336



TOTAL ASSETS LESS CURRENT

LIABILITIES

5,287,751


5,117,487



NET ASSETS

5,287,751


5,117,487



ST. MARY'S SCHOOL, MELROSE (REGISTERED NUMBER: SC023577)



BALANCE SHEET - continued

31ST AUGUST 2024


FUNDS

20

Unrestricted funds:


General fund

4,926,887


4,870,243


Restricted funds:


Bang goes the Borders

3,063


1,786



Farr-Out Challenge Fund

25


17



Bursary Fund

256,954


210,015



Designated Donation

100,822


35,426


360,864


247,244


TOTAL FUNDS

5,287,751


5,117,487




The financial statements were approved by the Board of Trustees and authorised for issue on 5th February 2025 and were signed on its behalf by:






G L Adamson - Trustee



ST. MARY'S SCHOOL, MELROSE



CASH FLOW STATEMENT

FOR THE YEAR ENDED 31ST AUGUST 2024



2024


2023


Notes

£   

£   



Cash flows from operating activities

Cash generated from operations

1

506,522


253,507



Interest paid

(1,536

)

(1,612

)


Net cash provided by operating activities

504,986


251,895




Cash flows from investing activities

Purchase of tangible fixed assets

(474,315

)

(15,523

)


Purchase of fixed asset investments

(10,000

)

(10,001

)


Sale of tangible fixed assets

8,200


1



Interest received

33,539


15,933



Net cash used in investing activities

(442,576

)

(9,590

)



Change in cash and cash equivalents

in the reporting period

62,410


242,305



Cash and cash equivalents at the

beginning of the reporting period

1,643,425


1,401,120



Cash and cash equivalents at the end

of the reporting period

1,705,835


1,643,425





ST. MARY'S SCHOOL, MELROSE



NOTES TO THE CASH FLOW STATEMENT

FOR THE YEAR ENDED 31ST AUGUST 2024


1.

RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING

ACTIVITIES


2024


2023

£   

£   



Net income for the reporting period (as per the Statement of

Financial Activities)

170,264


175,427




Adjustments for:


Depreciation charges

110,146


92,655




Gain on investments

(37,432

)

(845

)



(Profit)/loss on disposal of fixed assets

(7,270

)

13,483




Interest received

(33,539

)

(15,933

)



Interest paid

1,536


1,612




Increase in debtors

(78,377

)

(26,842

)



Increase in creditors

381,194


13,950




Net cash provided by operations

506,522


253,507





2.

ANALYSIS OF CHANGES IN NET FUNDS



At 1.9.23

Cash flow

At 31.8.24

£   

£   

£   



Net cash



Cash at bank and in hand

1,643,425


62,410


1,705,835



1,643,425


62,410


1,705,835




Total

1,643,425


62,410


1,705,835





ST. MARY'S SCHOOL, MELROSE



NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST AUGUST 2024


1.

ACCOUNTING POLICIES



Basis of preparing the financial statements


The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.



Going concern


Having reviewed the cash flow projections, and whilst accepting that the future will be challenging, the trustees believe that the charity has the ability to continue as a going concern for the foreseeable future.



Income


All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.



Fees and meal charges


Fees and meal charges are the total amount receivable by the charity in respect of school fees, outlays and meal charges and are inclusive of any VAT suffered on outlays.  This is net of fee discounts and bursaries granted.



Government grants


Grants relating to revenue are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.


Grants that become receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in income in the period in which it becomes receivable.



Expenditure


Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.



Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.



Heritable land and buildings

-

in accordance with the property


Improvements to property

-

5% on cost


Plant and machinery

-

25% on cost


Fixtures and fittings

-  

10% on cost and 10% on reducing balance


Motor vehicles

-

25% on cost



ST. MARY'S SCHOOL, MELROSE



NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST AUGUST 2024


1.

ACCOUNTING POLICIES - continued



Tangible fixed assets


Included in fixtures and furniture is a piano gifted to the school. No depreciation has been provided on this instrument as in the opinion of the Governors the asset life is so long and the residual value so high that any charge would be immaterial.



Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.


Taxation

The charity is exempt from corporation tax on its charitable activities.


Fund accounting

Unrestricted funds are donations and other incoming resources received or generated for expenditure on the general objectives of the charity and spent at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor of when funds are raised for particular restricted purposes. Expenditure for those purposes is charged to the fund to which it relates. Once the fund has been expensed on capital items a transfer is made to general fund.


Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.


Pension costs and other post-retirement benefits


The pension costs charged against profits represent the amount of the contributions payable to the teacher's superannuation scheme in respect of the accounting period.



Financial assets


Basic financial assets, including trade and other debtors and bank balances, are initially recognised at transaction price.


At the end of each reporting period financial assets measured at cost are assessed for evidence of impairment. Any impairment loss is recognised in the Statement of Financial Activities.


Financial assets are derecognised when the contractual rights to the cash flows from the asset expire or are settled.



Financial liabilities


Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price.


Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. These are classed as current liabilities if payment is due within one year or less. If not they are presented as non-current liabilities.


Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.



Investments

Investments are included within the accounts at market value. Realised gains or losses arising from disposals of investments and unrealised gains and losses are added or deducted from the appropriate fund.



ST. MARY'S SCHOOL, MELROSE



NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST AUGUST 2024


2.

DONATIONS AND LEGACIES


2024


2023

£   

£   



Grants and donations

70,468


29,769




3.

INVESTMENT INCOME


2024


2023

£   

£   



Deposit account interest

33,254


15,655




Dividends

285


278



33,539


15,933




4.

INCOME FROM CHARITABLE ACTIVITIES


2024


2023


Activity

£   

£   



Class and boarding fees

School fees receivable

2,321,665


2,181,234




Kindergarten fees

School fees receivable

127,872


139,897




Enrolment registration fees

School fees receivable

2,400


2,000



2,451,937


2,323,131




5.

OTHER INCOME


2024


2023

£   

£   



Sundry receipts

34,348


36,552




6.

CHARITABLE ACTIVITIES COSTS


Support



Direct

costs (see



Costs

note 7)

Totals

£   

£   

£   



School fees receivable

13


-


13




School operating costs

2,285,529


171,918


2,457,447



2,285,542


171,918


2,457,460






ST. MARY'S SCHOOL, MELROSE



NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST AUGUST 2024


7.

SUPPORT COSTS


Governance



Management


Finance


costs


Totals

£   

£   

£   

£   



School operating costs

162,582


1,536


7,800


171,918




8.

NET INCOME/(EXPENDITURE)



Net income/(expenditure) is stated after charging/(crediting):




2024


2023

£   

£   



Auditors' remuneration

7,800


5,000




Auditors' remuneration for non audit work

-


2,497




Depreciation - owned assets

110,145


92,655




Hire of plant and machinery

47,799


28,848




Surplus/(deficit) on disposal of fixed assets

(7,270

)

13,483




9.

TRUSTEES' REMUNERATION AND BENEFITS


There were no trustees' remuneration or other benefits for the year ended 31st August 2024 nor for the year ended 31st August 2023.



Trustees' expenses


There were no trustees' expenses paid for the year ended 31st August 2024 nor for the year ended 31st August 2023.


10.

STAFF COSTS


2024


2023

£   

£   



Wages and salaries

1,372,716


1,287,871




Social security costs

126,408


115,114




Other pension costs

193,154


172,859



1,692,278


1,575,844





The average monthly number of employees during the year was as follows:



2024


2023


Teaching staff

32


34




Admin/Grounds

7


7




Catering/Cleaning

14


13




Gap Year Students

3


4



56


58





ST. MARY'S SCHOOL, MELROSE



NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST AUGUST 2024


10.

STAFF COSTS - continued



The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:



2024


2023


£90,001 - £100,000

1


1





The key management personnel of the school comprise the trustees, headmaster, deputy head and school administrator.  None of the trustees were remunerated for their duties as trustees during the year.  The total employee benefits of the key management personnel of the school during the year were £241,081.


11.

COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES


Unrestricted


Restricted


Total


fund


funds


funds

£   

£   

£   



INCOME AND ENDOWMENTS FROM


Donations and legacies

129


29,640


29,769




Charitable activities


School fees receivable

2,323,131


-


2,323,131




Investment income

15,928


5


15,933



Other income

36,552


-


36,552



Total

2,375,740


29,645


2,405,385




EXPENDITURE ON


Charitable activities


School operating costs

2,225,762


5,041


2,230,803




Net gains/(losses) on investments

(250

)

1,095


845




NET INCOME

149,728


25,699


175,427



Transfers between funds

(10,000

)

10,000


-



Net movement in funds

139,728


35,699


175,427




RECONCILIATION OF FUNDS


Total funds brought forward

4,730,515


211,545


4,942,060




TOTAL FUNDS CARRIED

FORWARD

4,870,243


247,244


5,117,487




ST. MARY'S SCHOOL, MELROSE



NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST AUGUST 2024


12.

TANGIBLE FIXED ASSETS


Heritable


Improvements



land and


to


Plant and


buildings


property


machinery

£   

£   

£   



COST


At 1st September 2023

3,117,089


835,140


259,468




Additions

-


474,315


-




Disposals

-


-


-




At 31st August 2024

3,117,089


1,309,455


259,468




DEPRECIATION


At 1st September 2023

419,759


361,443


223,340




Charge for year

29,713


56,518


16,127




Eliminated on disposal

-


-


-




At 31st August 2024

449,472


417,961


239,467




NET BOOK VALUE


At 31st August 2024

2,667,617


891,494


20,001




At 31st August 2023

2,697,330


473,697


36,128





Fixtures



and


Motor



fittings


vehicles


Totals

£   

£   

£   



COST


At 1st September 2023

167,107


52,447


4,431,251




Additions

-


-


474,315




Disposals

(3,783

)

(52,447

)

(56,230

)



At 31st August 2024

163,324


-


4,849,336




DEPRECIATION


At 1st September 2023

113,934


52,447


1,170,923




Charge for year

7,787


-


110,145




Eliminated on disposal

(2,853

)

(52,447

)

(55,300

)



At 31st August 2024

118,868


-


1,225,768




NET BOOK VALUE


At 31st August 2024

44,456


-


3,623,568




At 31st August 2023

53,173


-


3,260,328





The heritable and and buildings were last valued on 31st July 1991 by Lorne Brown Associates, Chartered Surveyors, on an open market basis.




ST. MARY'S SCHOOL, MELROSE



NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST AUGUST 2024


13.

FIXED ASSET INVESTMENTS


Listed


investments

£   



MARKET VALUE


At 1st September 2023

213,823




Additions

10,000




Revaluations

37,432




At 31st August 2024

261,255




NET BOOK VALUE


At 31st August 2024

261,255




At 31st August 2023

213,823





There were no investment assets outside the UK.



Cost or valuation at 31st August 2024 is represented by:



Listed


investments

£   



Valuation in 2024

261,255




14.

STOCKS

2024

2023


£   

£   



Stocks

900


900




15.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023


£   

£   



Trade debtors

22,504


12,885




Prepayments and accrued income

106,866


38,108



129,370


50,993






ST. MARY'S SCHOOL, MELROSE



NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST AUGUST 2024


16.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023


£   

£   



Trade creditors

76,779


36,520




Other creditors and accruals

5,124


6,989




Deferred income

351,274


8,473



433,177


51,982




Deferred income is mainly fees relating to and received in advance of the 2023/24 school terms commencing.

17.

LEASING AGREEMENTS



Minimum lease payments under non-cancellable operating leases fall due as follows:


2024

2023


£   

£   



Within one year

54,146


16,262




Between one and five years

170,231


16,630



224,377


32,892




18.

SECURED DEBTS



Any overdraft is secured by a standard security over the school buildings and land and by a bond and floating charge over all the company's assets.  The school currently has no overdraft facility in place.


19.

ANALYSIS OF NET ASSETS BETWEEN FUNDS

2024

2023



Unrestricted


Restricted


Total


Total


fund


funds


funds


funds

£   

£   

£   

£   



Fixed assets

3,614,368


9,200


3,623,568


3,260,328




Investments

5,067


256,188


261,255


213,823




Current assets

1,740,605


95,500


1,836,105


1,695,318




Current liabilities

(433,153

)

(24

)

(433,177

)

(51,982

)


4,926,887


360,864


5,287,751


5,117,487






ST. MARY'S SCHOOL, MELROSE



NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST AUGUST 2024


20.

MOVEMENT IN FUNDS


Net


Transfers




movement


between


At



At 1.9.23


in funds


funds


31.8.24


£   

£   

£   

£   



Unrestricted funds


General fund

4,870,243


66,644


(10,000

)

4,926,887





Restricted funds


Bang goes the Borders

1,786


1,277


-


3,063




Farr-Out Challenge Fund

17


8


-


25




Bursary Fund

210,015


36,939


10,000


256,954




Designated Donation

35,426


65,396


-


100,822



247,244


103,620


10,000


360,864




TOTAL FUNDS

5,117,487


170,264


-


5,287,751





Net movement in funds, included in the above are as follows:



Incoming


Resources


Gains and


Movement



resources


expended


losses


in funds


£   

£   

£   

£   



Unrestricted funds


General fund

2,519,888


(2,453,737

)

493


66,644





Restricted funds


Bang goes the Borders

5,000


(3,723

)

-


1,277




Farr-Out Challenge Fund

8


-


-


8




Bursary Fund

-


-


36,939


36,939




Designated Donation

65,396


-


-


65,396



70,404


(3,723

)

36,939


103,620




TOTAL FUNDS

2,590,292


(2,457,460

)

37,432


170,264






ST. MARY'S SCHOOL, MELROSE



NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST AUGUST 2024


20.

MOVEMENT IN FUNDS - continued



Comparatives for movement in funds



Net


Transfers




movement


between


At



At 1.9.22


in funds


funds


31.8.23


£   

£   

£   

£   



Unrestricted funds


General fund

4,730,515


149,728


(10,000

)

4,870,243





Restricted funds


Bang goes the Borders

2,198


(412

)

-


1,786




Farr-Out Challenge Fund

12


5


-


17




Bursary Fund

198,920


1,095


10,000


210,015




Designated Donation

10,415


25,011


-


35,426



211,545


25,699


10,000


247,244




TOTAL FUNDS

4,942,060


175,427


-


5,117,487





Comparative net movement in funds, included in the above are as follows:



Incoming


Resources


Gains and


Movement



resources


expended


losses


in funds


£   

£   

£   

£   



Unrestricted funds


General fund

2,375,740


(2,225,762

)

(250

)

149,728





Restricted funds


Bang goes the Borders

-


(412

)

-


(412

)



Farr-Out Challenge Fund

5


-


-


5




Bursary Fund

-


-


1,095


1,095




Designated Donation

29,640


(4,629

)

-


25,011



29,645


(5,041

)

1,095


25,699




TOTAL FUNDS

2,405,385


(2,230,803

)

845


175,427





Designated donations are donations received for a specific purpose, either to meet revenue expenditure or provide fixed assets for use by the School. These funds have been expended on the items specified by the donor, and transferred to general funds where items are of a capital nature and have no further conditions attached.



The Bursary fund (formerly the Bursary & Redevelopment Appeal fund) is being grown for future sponsorship of pupils qualifying for support. The balance on the fund at the year end comprises investments £256,188 and cash at bank £766.



The Farr out challenge fund was set up to sponsor inter schools competitions events. The balance on the fund at the year end is £25.



ST. MARY'S SCHOOL, MELROSE



NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST AUGUST 2024


20.

MOVEMENT IN FUNDS - continued




Bang Goes the Borders fund was set up to host a science initiative day which is held annually. The first event was held in May 2011 and is growing every year. The balance on the funds at the year end comprises of £3,063.


21.

EMPLOYEE BENEFIT OBLIGATIONS



(a) The charity participates in the Scottish Teachers' Superannuation Scheme. The scheme is an unfunded statutory public service pension scheme with benefits underwritten by the UK Government. The scheme is financed by payments from employers and from those current employees who are members of the scheme and paying contributions at progressively higher marginal rates based on pensionable pay, as specified in the regulations. The rate of employer contributions is set with reference to a funding valuation undertaken by the scheme actuary. The 2016 valuation set employer contribution rates at 23% from 1st September 2019 until 31st March 2023, although the UK Government has since stated that the rates would continue until 31st March 2024. Member contributions continued at the same rates within a range of 7.2% to 11.9% and are anticipated to deliver a yield of 9.4%.



(b) The charity has no liability for other employers obligations to the multi-employer scheme.



(c) As the scheme is unfunded there can be no deficit or surplus to distribute on the wind-up of the scheme or withdrawal from the scheme.



(d) (i) The scheme is an unfunded multi-employer defined benefit scheme.



(d) (ii) It is accepted that the scheme can be treated for accounting purposes as a defined contribution scheme in circumstances where the charity is unable to identify its share of the underlying assets and liabilities of the scheme.



(d) (iii) The employer contribution rate for the period 1st April 2022 is 23% of pensionable pay. The employee rate applied is variable and is anticipated to provide a yield of 9.4% of pensionable pay.



(d) (iv) While a valuation was carried out as at 31st March 2016, it is not possible to say what deficit or surplus may affect future contributions.  Work on the valuation was suspended by the UK Government pending the decision from the Court of Appeal (McLeod (Judiciary scheme)/Sargeant (Firefighters' Scheme) cases) that held that the transitional protections provided as part of the 2015 reforms was unlawfully discriminatory on the grounds of age.  Following consultation and an announcement in February 2021 on proposals to remedy the discrimination, the UK Government confirmed that the cost control element of the 2016 valuations could be completed.  The UK Government has also asked the Government Actuary to review whether, and to what extent, the cost control mechanism is meeting its original objectives.  The 2020 actuarial valuations will take the report's findings into account.  The interim report is complete (restricted) and is currently being finalised with a consultation.  Alongside these announcements, the UK Government confirmed that current employer contribution rates would stay in force until 1 April 2024.



The total pension contributions for teaching staff in the year was £170,791 (2023, £156,471).



ST. MARY'S SCHOOL, MELROSE



NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST AUGUST 2024


22.

RELATED PARTY DISCLOSURES


Three governors had children in attendance at the School during the year (2023, three governors). One governor received bursary assistance.