QUEEN’S COLLEGE, LONDON COUNCIL’S REPORT AND …

QUEEN’S COLLEGE, LONDON

COUNCIL’S REPORT AND ACCOUNTS

YEAR ENDED 31 AUGUST 2017

Charity Registration No. 312726


CONTENTS

Contents Pages

Legal and administrative information 1

The Council’s report 2 – 6

Statement of the Council’s responsibilities 7

Auditor’s report 8

Statement of financial activities 10

Balance sheet 11

Statement of Cash flows 12

Notes to the accounts 13 - 21

1


LEGAL AND ADMINISTRATIVE INFORMATION


Patron Her Majesty The Queen

Council (Current Serving Members) The Revd Charlotte Bannister-Parker

Richard Ford

Alexandra Gregory

Matthew Hanslip Ward

John Jacob

Holly Porter

Paul Reeve

Danielle Salem

Michael Sharman

Alison While

Rhiannon Wilkinson

The Principal Dr Frances Ramsey (until 31 August 2017)

Richard Tillett (from 1 September 2017)

The Head of the Preparatory School Emma Webb

Bursar Simon Turner

Registered charity number 312726

Principal address 43-49 Harley Street

London

W1G 8BT

Auditor haysmacintyre

10 Queen Street Place

London

EC4R 1AG

Bankers National Westminster Bank Plc

PO Box No 4NU

1 Cavendish Square

London

W1A 4NU

Employment and Estate Solicitors Bircham Dyson Bell LLP

50 Broadway

London

SW1H 0BL

Investment advisors J M Finn & Co

4 Coleman Street

London

EC2R 5TA

2


THE COUNCIL’S REPORT


INTRODUCTION

The Council presents its report, together with the audited financial statements, for the academic year ended 31 August

2017, and confirms that the latter comply with the requirements of the Charities Act 2011 and the Statement of

Recommended Practice “Accounting and Reporting by Charities” SORP 2015 (FRS 102).

REFERENCE AND ADMINISTRATIVE INFORMATION

Queen’s College, London was founded by Deed of Constitution dated 1 September 1852 and Royal Charter dated 2

November 1854, supplemented by Charter dated 29 May 1970, and as amended 26 October 1988. It has charitable status

under reference number 312726.

THE COUNCIL OF QUEEN’S COLLEGE, LONDON

The present members of the Council of Queen’s College, London, who are also the Charity Trustees, and also any ex-

members who served throughout the year as indicated, are:-

The Revd Charlotte Bannister-Parker

Richard Ford (Elected 16 March 2017)

David Gallagher (Resigned 15 May 2017)

Alexandra Gregory (Elected 03 July 2017)

Matthew Hanslip Ward

John Jacob

Holly Porter (Elected 16 March 2017)

Paul Reeve (Elected 16 March 2017)

Danielle Salem

Mike Sharman (Chairman until 12 April 2017)

Alison While (Acting Chairman from 12 April 2017)

Rhiannon Wilkinson

FINANCE COMMITTEE

The members of the Finance Committee were: Richard Ford, John Jacob, Paul Reeve, Mike Sharman and David Gallagher.

David Gallagher was Chairman of the Committee until 15 May 2017 when he resigned as a Council member. Mike Sharman

acted as Chairman until 15 November 2017 when Richard Ford became Chairman of the Committee.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The College is governed by Royal Charter the bye-laws of which were last amended on 26 October 1988. The College has

applied to the Privy Council to make amendments to the bye-laws and this process is ongoing.

Governing Body

The Council of Queen’s College, London is the governing body of the College, which comprises both Queen’s College and

Queen’s College Preparatory School (and which together constitute Queen’s College, London or the “College”). Members

of the Council serve and are constituted as detailed by the governing document. Ordinary Members are elected at a full

meeting of the Council, taking into consideration their eligibility, personal competence, specialist skills, and local

availability. The Representative Member is elected by the educational staff of the College. Ordinary Members stand for a

term of three years and are then eligible for re-election. Four Ordinary Members are parents of girls currently at the College

and Preparatory School.

The Finance Committee, the Education and Pastoral Committee, the Premises and Development Committee, and the

Governance and Nomination Committee all report to the full Council following each of their meetings.

Trustee Training

Each new member of the Council is inducted into the workings of the College. Training is recommended dependent upon

the member’s personal skills and attributes. The Council has membership of the Association of Governing Bodies of

Independent Schools which conducts training courses for members.

3


THE COUNCIL’S REPORT (Continued)


STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Organisational Management

Queen’s College, London is constituted by Royal Charter in a body politic and corporate. The Council of Queen’s College,

London is the governing body.

The Council of Queen’s College, London meets at least four times a year to determine the policy of the College, and to

review the process by which the College is managed and controlled.

The financial operation of the College is reviewed by the Finance Committee which was chaired by Richard Ford and Mike

Sharman during the financial year. The Finance Committee reports to the Council at each of the Council meetings, and it

has particular responsibility for reviewing financial objectives, performance, budgets and accounts. The Educational and

Pastoral committee was chaired by Alison While, the Premises and Development Committee was chaired by Matthew

Hanslip Ward, and the Governance and Nominations Committee was chaired by John Jacob.

In accordance with the Royal Charter, the Principal and Headmistress are responsible to the Council for the whole of the

internal organisation, management and operation of the Queen’s College and Queen’s College Preparatory School.

In accordance with the Royal Charter the Principal is required to present an annual report to The Right Reverend Lord

Bishop of London who is the College’s Visitor. This report is available from the Secretary to the Council.

Salaries for key management personnel are set by the Chairman of the Council in consultation with the Vice Chairman and

Chairman of the Finance Committee. They take note of performance, benchmarking surveys, and are mindful that to attract

the best key personnel, it might be necessary to increase basic salaries in order to assist with the provision of

accommodation in London.

Risk Management

The Council has assessed all identified major risks to which the College is exposed. The Principal risks are considered as:

a. Ineffectual school management leading to loss of pupils creating financial instability.

b. Ever increasing leasehold costs enforcing fee increases thereby reducing accessibility to the education provided.

c. Political reform making operational costs beyond economical possibility.

The risks are mitigated by the Council of the College being rigorous in the appointment of key personnel, in appointing

specialists to negotiate leasehold arrangements, and in trusting educational organisations (ISC, HMC, GSA, AGBIS, ISBA

etc.) to counter political ignorance concerning the strength of independent education.

The Council is satisfied that control systems are in place to reduce exposure to identified major risks. The Council ensure

that, where possible, exposure to major risk is covered by suitable insurance.

OBJECTIVES, AIMS AND PRINCIPAL ACTIVITIES

Objectives of the College

The objects for which the College is established and incorporated are to promote the advancement of education and in

connection therewith to acquire, establish, conduct and carry on residential and non-residential schools for girls and young

women and in particular to continue and conduct the undertaking business and affairs of the College know as Queen’s

College, London at present carried on at Numbers 43, 45, 47 and 49 Harley Street, and 59, 61 Portland Place.

4




OBJECTIVES, AIMS AND PRINCIPAL ACTIVITIES (continued)

Objectives of the College (continued)

The Council is also empowered to:

a. Establish and maintain scholarships, bursaries and grants for the assistance or advancement of pupils at any school

carried on by the College or otherwise.

b. Make grants or allowances or other payments for the education of pupils.

c. Purchase, take on lease, hire, or otherwise acquire any real or personal property which may be deemed necessary

or convenient for the purposes of the College.

d. Borrow or raise money with or without security for any of the purposes of the College.

e. Receive and accept donations, endowments and gifts of money, lands, hereditaments, stocks, funds, shares,

securities and any other assets whatsoever and whether subject or not subject to any special trusts or conditions.

f. Invest any moneys of the College not immediately required for any of its objects in such manner as may be

authorised.

Annual Objective

The College’s annual objective in accordance with its Royal Charter is to educate girls at a level in keeping with the

College’s ‘Principles of Education’.

Principal Activity

The principal activity of Queen’s College, London is to provide for the education of over 570 girls between the ages of 4

and 18.

Public Benefit Queen’s College, London is the pioneer College for the higher education of women and, when opened on 1 May 1848, it

was the first institution to provide academic qualifications for women. The College was granted a Royal Charter in 1854,

the first Charter to be granted by a sovereign for the furtherance of the education of women. The provision of women’s

education continues to be the prime public benefit provided by the College.

In furtherance of the College’s principal activity, the Council give careful consideration to the Charity Commission’s

guidance on public benefit. The overarching public benefit provided by the College is therefore the education of girls.

In addition Queen’s College, London supported 76 pupils with financial awards through scholarships or bursaries

throughout the year. Sixteen pupils received full bursary awards. A total of £556,197 was awarded for reason of financial

hardship, academic scholarship or sibling discount. Of this £314,097 was allocated to means-tested bursary provision. The

College continues to fundraise to enhance its bursary provision.

College facilities are limited (there are no sports fields or recreational areas) due to the inner city location of both schools

but all internal facilities are available for use, and are used regularly by external agencies, particularly those involved in

the promotion of education. Facilities are currently used by external opera, music, dance and academic organisations. A

dance academy operates from both schools during each of the schools’ holiday periods and this is open to children from

all backgrounds.

Local school pupils are invited to attend lectures held at the College. The College’s art shows, drama performances, and Christmas fairs are open to the local community and donations received

at these events are subsequently donated to registered charities. Students at the College are active charity fundraisers and

many volunteer and assist with local charities. The girls’ choirs annually perform at the opening of the local community

Marylebone Christmas festival. The more senior girls of the College have now established a strong relationship with St Vincent’s Catholic Primary School,

and the relationship between the schools has been extended to Queen’s College, London providing science and dance

workshops as well as assistance at St Vincent’s. Additionally girls attend and assist at a weekly meeting with the All Soul’s

Clubhouse where they assist with serving lunches, washing up and cleaning, and by chatting and being sociable to the

elderly.

Approaches have been made to form partnerships with both St Marylebone School and The Grey Coat Hospital.

5




OBJECTIVES, AIMS AND PRINCIPAL ACTIVITIES (continued)

Public Benefit (continued)

The College students also provide much needed help with preparatory school lessons and where necessary stand in for

teaching assistants throughout the week.

ACHIEVEMENTS AND PERFORMANCE

Operational Performance

Throughout the year over 100 pre-preparatory girls, 95 preparatory girls, and 362 secondary girls were educated in keeping

with the College’s educational policies.

A Levels. There was a 99% pass rate at A level and 76% of entries were graded A*, A or B.

GCSEs. At GCSE and IGCSE the proportion of A*, A and B grades was 94% with all but one pupil achieving A* to C

grades.

11+. The Preparatory School 11+ examination pupils achieved excellent results allowing girls to attend senior schools of

parental choice.

Full details of educational results and activities, and other matters regarding the activities of the College, are contained in

the Annual Report (as presented to the Visitor) or appear on the College website www.qcl.org.uk. Copies of the report are

available from the Secretary to the Council, at the College address. Preparatory school details may be found on the website

www.qcps.org.uk.

Extra-Curricular Activities and Sports Academic success is also mirrored in the popularity and standards the girls achieve whilst participating in a host of extra-

curricular activities, the main being drama, dance and music.

Additionally the College, despite having none of its own sports facilities, has a structured and busy PE timetable and girls

compete against state and independent schools, with much success, in local sports leagues.

FINANCIAL REVIEW

The College’s net movement in funds, an increase of £279,642 shows a positive result following continued expenditure

into developing the premises of both Queen’s College and Queen’s College Preparatory School. Full details of financial

activities are contained in the attached accounts.

Investment Policy

Investment powers are governed by the Royal Charter. The investment portfolio is managed by the College’s investment

advisors, and their performance is regularly reviewed by the Finance Committee. The investment advisors present an annual

review of performance to the Finance Committee.

The Council adopts a conservative investment strategy, with the aim of optimising the College’s total investment return

consistent with mitigating risk, and whilst preserving the real value of endowed investments.

Investment Performance

During the year £109,811 (2016: £112,112) investment income was received into the business account. The realised /

unrealised value of investments increased the net trading surplus by £188,677.

Reserves policy

Total funds of the College at 31 August 2017 were £6,229,896 (2016: £5,950,254) comprising restricted funds of

£1,162,796 (2016: £1,092,402), designated funds of £700,928 (2016: £503,864) and general funds of £4,366,172 (2016:

£4,353,988).

Following 3 years of ongoing capital expenditure the College’s primary objective is to bring its reserve resources back to

a level of £3,000,000 a sum additional to its daily business requirement.

6




FINANCIAL REVIEW (continued)

PLANS FOR THE FUTURE

The objective of the College is and remains the provision of education for girls as directed by the College’s ‘Principles of

Education’.

Development

Following the completion, at the end of February 2017, of a £3.6 million development of a sixth form centre the College

will be consolidating its position to concentrate on bringing the remainder of its infrastructure up to an equivalent standard.

The additional space provided by the sixth form centre will allow the Premises and Development Committee to be flexible

in continuing to improve College facilities at both schools. The College will continue to concentrate on the improvement

of academic success.

The Preparatory School, with the assistance of the Premises and Development Committee will contract the build of a new

STEM room to foment a greater interest in the sciences whilst continuing to improve its IT facilities and infrastructure.

The Preparatory School

The School has had an excellent year with pupil numbers at an all-time high. The Council of the College continues to

enhance the school’s organisation and facilities to allow for the provision of a first class education and welfare for its

pupils.

Queen’s College, London

The reputation of Queen’s College, London continues to climb with pupil numbers growing steadily. The College’s future

focus remains on providing the best possible education and welfare for its pupils, and the Council continues to develop the

College’s organisation to support its educational provision.

Bursary Support and Public Benefit

The cost of bursaries provided by the schools has risen by approximately 21% when compared to the previous reporting

year. A majority of the provision has been made to parents whose children already attended the schools. The Council is

aware that charitable giving must reflect the College’s overall financial scenario in tandem with its requirement to ensure

the charity’s need to provide public benefit is met. Approximately 5% of fee income was dedicated to financial support.

Disclosure of information to auditors

Each of the directors has confirmed that there is no information of which they are aware which is relevant to the audit, but

of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such

relevant information and to establish that the auditors are aware of such information.

Auditor

A resolution to re-appoint haysmacintyre as the College’s auditors was passed at the Annual General Meeting on 6

December 2017.

Signed on behalf of the Council

Alison While (Chairman)

Date:………………………………….

7


STATEMENT OF THE COUNCIL’S RESPONSIBILITIES


The Council is responsible for preparing the Council’s Report and the accounts in accordance with applicable law and

United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Council to prepare accounts for each financial year which

give a true and fair view of the state of affairs of the College and of the incoming resources and application of resources of

the College in that year.

In preparing these accounts, the Council 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 accounting standards have been followed, subject to any material departures disclosed

and explained in the accounts; and

· prepare the accounts on the going concern basis unless it is inappropriate to presume that the College will continue

in operation.

The Council is responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the

financial position of the College and enable it to ensure that the accounts comply with the Charities Act 2011, the College

(Accounts and Reports) Regulations 2008 and the provisions of the trust deed. It is also responsible for safeguarding the

assets of the College and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

8

INDEPENDENT AUDITOR’S REPORT TO THE COUNCIL OF QUEEN’S COLLEGE, LONDON

Opinion

We have audited the financial statements of Queen’s College, London for the year ended 31 August 2017 which comprise

the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows 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, 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:

• give a true and fair view of the state of the College’s affairs as at 31 August 2017 and of the College’s net

movement in funds 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 Charities Act 2011.

This report is made solely to the College’s trustees, as a body, in accordance with section 144 of the Charities Act 2011

and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the

College's trustees 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 College’s trustees as a

body for our audit work, for this report, or for the opinions we have formed.

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and

relevant regulations made or having effect thereunder. 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 College

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.

Responsibilities of Council for the financial statements

As explained more fully in the Council’s responsibilities statement set out on page 7, the Council is 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 Council 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 Council is responsible for assessing the College’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 Council either intend to liquidate the College or to cease operations, or have no realistic alternative but to do so.

Auditor’s 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 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.

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 auditor’s report.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you

where:

• the Council’s use of the going concern basis of accounting in the preparation of the financial statements is not

appropriate; or

• the Council have not disclosed in the financial statements any identified material uncertainties that may cast

significant doubt about the College’s ability to continue to adopt the going concern basis of accounting for a period

of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The Council are responsible for the other information. The other information comprises the information included in the

Report of the Council. 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.

9

INDEPENDENT AUDITOR’S REPORT TO THE COUNCIL OF QUEEN’S COLLEGE, LONDON

(CONTINUED)

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 there is a material misstatement in the financial statements or a

material misstatement of the other information. 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports)

Regulations 2008 require us to report to you if, in our opinion:

• adequate accounting records have not been kept by the College; or

• sufficient accounting records have not been kept; or

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

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

haysmacintyre 10 Queen Street Place

Chartered Accountants London

Statutory Auditor EC4R 1AG

Date:

haysmacintyre is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

10


STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2017

Unrestricted Restricted Total Total

Funds Funds 2017 2016

Notes £ £ £ £

INCOME FROM:

Donations and legacies 12,169 - 12,169 91,356

Investments 2 55,796 54,015 109,811 112,112

-------------------- -------------------- -------------------- --------------------

67,965 54,015 121,980 203,468

Charitable activity

Education 3 10,162,300 - 10,162,300 9,566,232

-------------------- -------------------- -------------------- --------------------

Total income 10,230,265 54,015 10,284,280 9,769,700

-------------------- -------------------- -------------------- --------------------

EXPENDITURE ON:

Raising funds 58,052 - 58,052 50,335

Charitable activity

Education 10,135,263 - 10,135,263 8,876,047

--------------------- -------------------- --------------------- ---------------------

Total expenditure 4 10,193,315 - 10,193,315 8,926,382

--------------------- -------------------- --------------------- -------------------

Net income before net gains on

investment assets

36,950

54,015 90,965 843,318

Net gains on investment assets 139,251 49,426 188,677 205,758

--------------------- -------------------- --------------------- ---------------------

Net income 176,201 103,441 279,642 1,049,076

Transfers between funds 12/13 33,047 (33,047) - -

--------------------- -------------------- --------------------- ---------------------

Net movement in funds 209,248 70,394 279,642 1,049,076

Fund balances at 1 September 2016 4,857,852 1,092,402 5,950,254 4,901,178

-------------------- -------------------- --------------------- ---------------------

Fund balances at 31 August 2017 5,067,100 1,162,796 6,229,896 5,950,254

========== ========== ========== =========

All income and gains for the period are recognised above. All of the College’s activities are classified as continuing.

Details of comparative figures by fund are shown in note 18.

11


BALANCE SHEET

31 AUGUST 2017

2017 2016

Notes £ £ £ £

FIXED ASSETS

Tangible assets 7 5,422,855 4,510,083

Investments 8 2,296,691 3,275,577

------------------- -------------------

7,719,546 7,785,660

CURRENT ASSETS

Debtors 9 3,497,425 2,631,475

Cash at bank and in hand 1,044,854 651,972

--------------------- ---------------------

4,542,279 3,283,447

Creditors: amounts falling due within

one year 10 (6,031,929) (5,118,853)

--------------------- ---------------------

Net current liabilities (1,489,650) (1,835,406)

-------------------- --------------------

Total assets less current liabilities 6,229,896 5,950,254

========== ==========

Income funds

Restricted funds 12 1,162,796 1,092,402

Unrestricted funds:

Designated funds 13 700,928 503,864

General funds 4,366,172 4,353,988

---------------------- ----------------------

5,067,100 4,857,852

---------------------- ----------------------

6,229,896 5,950,254

=========== ===========

The accounts were approved by the Council on 6 December 2017.

Alison While Richard Ford

Chairman Chair of Finance

12


STATEMENT OF CASH FLOWS


2017 2016

£ £

Cash flows from operating activities:

Net cash provided by operating activities 743,605 1,541,153

Cash flows from investing activities:

Investment income 109,811 112,112

Payments to acquire tangible fixed assets (1,647,247) (2,354,341)

Payments to acquire investments (145,436) (96,750)

Other receipts from investment portfolio 1,332,149 63,791

-------------- --------------

Net cash used in investing activities (350,723) (2,275,188)

-------------- --------------

-------------- --------------

Change in cash and cash equivalents in the reporting period 392,882 (734,035)

Cash and cash equivalents at the beginning of the reporting period 651,972 1,386,007

-------------- --------------

Cash and cash equivalents at the end of the reporting period 1,044,854 651,972

====== ======

Reconciliation of net income to net cash flow from operating activities 2017 2016

£ £

Net income for the reporting period

(as per the statement of financial activities) 279,642 1,049,076

Adjustments for:

Net gains on investments (188,677) (205,758)

Depreciation charges 715,325 316,819

Investment income (109,811) (112,112)

Increase in debtors (865,950) (200,403)

Increase in creditors 913,076 693,531

-------------- --------------

Net cash provided by operating activities 743,605 1,541,153

======= =======

Analysis of cash and cash equivalents 2017 2016

£ £

Cash in hand 1,044,854 651,972

-------------- ---------------

Total cash and cash equivalents 1,044,854 651,972

======= =======

13


NOTES TO THE ACCOUNTS


1. ACCOUNTING POLICIES

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the

UK and Republic of Ireland (FRS102) and the 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 2015.

The functional currency of the College is considered to be GBP because that is the currency of the primary economic

environment in which the College operates.

The College is a Public Benefit Entity registered as a charity in England and Wales (Charity Registration No.

312726).

1.1 Going Concern:

Having reviewed the funding facilities available to the College together with the expected ongoing demand for

places and the College’s future projected cash flows, Members of the Council have an expectation that the College

has adequate resources to continue its activities for the foreseeable future and consider that there were no material

uncertainties over the College’s financial viability. Accordingly, they also continue to adopt the going concern basis

in preparing the financial statements as outlined in the Statement of Accounting and Reporting Responsibilities on

page 7.

1.2 Critical accounting judgements and key sources of estimation uncertainty:

In the application of the accounting policies, Members of the Council are required to make judgement, estimates,

and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources.

The estimates and underlying 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 if the revision affects only that period, or in the period of

the revision and future periods if the revision affected current and future periods.

Judgements made by Members of the Council, in the application of these accounting policies that have significant

effect on the financial statements and estimates with a significant risk of material adjustment in the next year are

deemed to be in relation to the depreciation rates of tangible fixed assets and are discussed below.

In the view of the Members of the Council, no assumptions concerning the future or estimation uncertainty affecting

assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in

the next financial year.

1.3 Fees and similar income:

Fees receivable for education are accounted for in the period in which the service is provided. Fees received for

education to be provided in future years are carried forward as deferred income.

Donations are accounted for when they are receivable. Donations for purposes restricted by the wishes of the donor

are taken to “restricted reserves” where these wishes are legally binding on the Council.

Investment income is accounted for when it is received.

14


NOTES TO THE ACCOUNTS (continued)


1. ACCOUNTING POLICIES (continued)

1.4 Expenditure: Expenditure is accounted for on an accruals basis, with the irrecoverable element of VAT included with the item of

expense to which it relates.

Expenditure is summarised under functional headings on a direct cost basis.

Governance costs are those incurred in connection with the administration of the College and compliance with

constitutional and statutory requirements.

The cost of furniture and equipment is written off in the year of acquisition.

1.5 Tangible fixed assets and depreciation:

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the

cost less estimated residual value of each asset over its expected useful life, as follows:

Leasehold Property Over the term of the lease, other than Somerville Hall which has been fully

depreciated and improvements to the dining hall and boiler room which are being

depreciated over 10 years.

Items costing less than £1,000 are written off on acquisition.

1.6 Leasing and hire purchase commitments:

Rentals payable under operating leases are charged against income on a straight line basis over the period of the

lease.

1.7 Investment:

Fixed asset investment are stated at market value.

Realised and unrealised gains and losses are dealt with in the Statement of Financial Activities.

1.8 Pensions:

The Teachers’ Pension Scheme - This scheme is a multi-employer pension scheme. It is not possible to identify the

College’s share of the underlying assets and liabilities of the Teachers’ Pension Scheme on a consistent and

reasonable basis and therefore, as required by FRS102, accounts for the scheme as if it were a defined contribution

scheme. The College’s contributions, which are in accordance with the recommendations of the Government

Actuary, are charged in the period in which the salaries to which they relate are payable.

The College also contributes to personal pension schemes for non-teaching staff.

1.9 Accumulated funds:

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of

the restricted funds are set out in note 12 to the accounts.

Designated funds comprise funds which have been set aside at the discretion of the Council for specific purposes.

The purposes and uses of the designated funds are set out in note 13 to the accounts.

Unrestricted funds are funds which can be used in the accordance with the charitable objects at the discretion of the

Council.

1.10 Taxation:

No provision for taxation is included in the accounts as the College is entitled to the exemption for tax afforded by

Part 10 of the Income Tax Act 2007 and Section 256 of the Chargeable Gains Act 1992.

15




1. ACCOUNTING POLICIES (continued)

1.11 Financial instruments:

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised

cost with the exception of investments which are held at fair value. Financial assets held at amortised cost comprise

cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which

recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and

used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and

other taxes and provisions.

1.12 Debtors:

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments

are valued at the amount prepaid net of any trade discounts due.

1.13 Cash at bank and in hand:

Cash at bank and cash in hand includes cash and short term highly liquid investments.

1.14 Creditors and provisions:

Creditors and provisions are recognised where the College has a present obligation resulting from a past event that

will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be

measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after

allowing for any trade discounts due.

2. Investment income

Unrestricted Restricted Total Total

Funds Funds 2017 2016

£ £ £ £

Income from listed investments 54,078 54,015 108,093 105,615

Interest receivable 1,718 - 1,718 6,497

---------------- ---------------- ----------------- -----------------

55,796 54,015 109,811 112,112

======== ======== ======== ========

3. Income from Charitable Activities – Education

2017 2016

£ £

Gross fees receivable 10,162,300 9,566,232

========== ==========

16




4. Total expenditure Staff

Costs

Depreciation

Other

Costs

Charitable

awards

Total

2017

Total

2016

£ £ £ £ £ £

Costs of raising funds

Investment management

costs - - 13,790 - 13,790 20,311

Fundraising 44,262 - - - 44,262 30,024

------------------ -------------------- ------------------ --------------- ---------------------- ----------------------

Total costs of raising funds 44,262 - 13,790 - 58,052 50,335

======= ========= ========= ======= ========== ==========

Charitable activities

Teaching 4,525,409 - 408,190 - 4,933,599 4,638,097

Housekeeping, cleaning and

catering

-

-

569,000

-

569,000

837,573

Premises costs 100,815 715,325 1,630,897 - 2,447,037 1,722,482

Scholarships and bursaries - - - 574,732 574,732 496,261

Support costs 803,437 - 807,458 - 1,610,895 1,181,634

------------------- -------------------- ------------------ ----------------- ---------------------- ----------------------

Total charitable activities 5,429,661 715,325 3,415,545 574,732 10,135,263 8,876,047

========== ========== ========= ======== ========== ==========

Total expenditure 5,473,923 715,325 3,429,335 574,732 10,193,315 8,926,382

========== ========== ========= ======== ========== ==========

Included within support costs above are governance costs of £10,800 (2016: £15,120) in respect of payments made

to the auditors for audit services.

Included within premises costs is £823,144 (2016: £745,164) in relation to operating lease payments.

5. Council

None of the Council (or any persons connected with them) received any remuneration or benefits from the College

during the year (2016: none).

6. Employees 2017 2016

Number Number

Number of employees

The average monthly number of employees during the year was:

Teaching staff 78 80

Administration staff 28 21

------------------ ------------------

106 101

======== =========

Employment costs 2017 2016

£ £

Wages and salaries 4,107,639 4,166,966

Social security costs 471,297 411,086

Pension contributions 568,316 544,892

Termination and redundancy payments 120,768 62,035

-------------------- --------------------

5,268,020 5,184,979

========== ==========

17




6. Employees (continued) 2017 2016 Number Number The number of employees whose remuneration was £60,000 or more were:

£60,000 - £70,000 5 2

£70,000 - £80,000 1 1

£80,000 - £90,000 - 1

£90,000 - £100,000 1 1

£100,000 + 1 1

======= =======

The total remuneration of key management personnel in the year was £892,694 (2016: £444,453). The definition of

key management personnel have been redefined in 2017 and now includes an additional five individuals.

7. Tangible fixed assets Leasehold

Improvements

£

Cost

At 1 September 2016 6,211,933

Additions 1,647,247

Disposals (19,150)

--------------------

At 31 August 2017 7,840,030

-------------------

Depreciation

At 1 September 2016 1,701,850

Charge for the year 715,325

--------------------

At 31 August 2017 2,417,175 --------------------

Net book value

At 31 August 2017 5,422,855

==========

At 31 August 2016 4,510,083 ==========

8. Fixed asset investments General Designated Restricted Total Total

Funds Funds Funds 2017 2016

£ £ £ £ £

Market value at 1 September 2016 1,679,311 503,864 1,092,402 3,275,577 3,036,860

Acquisitions at cost 25,020 40,040 80,376 145,436 96,750

Disposals at opening book value (980,643) (30,276) (33,129) (1,044,048) (75,702)

Change in value in the year

(including investment cash

movements) (90,721) (12,700) 23,147 (80,274) 217,669

-------------------- ---------------- ------------------- -------------------- --------------------

Market value at 31 August 2017 632,967 500,928 1,162,796 2,296,691 3,275,577

========== ======== ========= ========== ==========

18




9. Debtors Total Total

2017 2016

£ £

Trade debtors 3,184,385 2,487,995

Other debtors 26,655 20

Prepayments and accrued income 286,385 143,460

--------------------- ---------------------

3,497,425 2,631,475

========== ==========

10. Creditors: amounts falling due within one year Total Total 2017 2016 £ £

Trade creditors 76,677 589,139

Taxes and social security costs 234,843 115,478

Fees receivable in advance & pupil deposits 5,035,468 3,854,316

Other creditors 248,426 157,170

Accruals 436,515 402,750

------------------- -------------------

6,031,929 5,118,853

========= ==========

Fees in advance represents fees invoiced due for the Michaelmas 2017 term.

Deposits are due on the pupil leaving the College after giving one term’s notice.

11. Pension Costs

The College participates in the Teachers’ Pension Scheme (England and Wales) (“the TPS”), for its teaching staff.

The pension charge for the year includes contributions payable to the TPS of £855,830 (2016: 507,308) and £67,245

(2016: £37,583) to other defined contribution schemes.

The TPS is an unfunded multi-employer defined benefit pension scheme governed by the Teachers' Pension Scheme

Regulations 2014. Members contribute on a "pay as you go" basis with contributions from members and the

employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided

by Parliament.

The employer contribution rate is set following scheme valuations undertaken by the Government Actuary's

Department. The latest actuarial valuation of the TPS was prepared as at 31 March 2012 and the valuation report,

which was published in June 2014, confirmed an employer contribution rate for the TPS of 16.4% from 1 September

2016. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer

contribution rate of 16.48%.

This employer rate will be payable until the outcome of the next actuarial valuation, which is due to be prepared as

at 31 March 2017, with any resulting changes to the employer rate expected to take effect from 1 April 2019. This

valuation will also determine the opening balance of the cost cap fund and provide an analysis of the cost cap as

required by the Public Service Pensions Act 2013.

19




12. Restricted Funds

The income funds of the College include restricted funds comprising the following unexpended balances of donations

and grants held on trust for specific purposes:

Movement in Funds

Balance at

1 September

2016

Income

Expenditure

Net

investment

gains and

transfers

Balance at

31 August

2017

£ £ £ £ £

Dedicated Scholarship Fund 587,362 28,297 - (21,388) 594,271

Old Queens Bursary Trust Fund 505,040 25,718 - 37,767 568,525

-------------------- ---------------- ------------------- -------------------- --------------------

1,092,402 54,015 - 16,379 1,162,796

========== ======== ========= ========== ==========

The Dedicated Scholarship Fund represents income received from third parties with specific conditions as to who

can qualify for the scholarships.

The Old Queen’s Bursary Trust Fund represents funds set up by Alumni of the College which allows Pupils to apply

for Bursaries to assist them to further their Education.

13. Designated funds

The income funds of the College include the following designated funds which have been set aside out of unrestricted

funds by the Council of Queen’s College for specific purposes:

Balance at

1 September

2016

Transfers

Balance at

31 August

2017

£ £ £

General Scholarship Fund 503,864 (2,936) 500,928

Repairs and Maintenance

Fund

-

200,000

200,000

-------------------- ------------------- --------------------

503,864 197,964 700,928

========== ========= ==========

The General Scholarship Fund represents income received from investments and is to provide scholarships to pupils

on a discretionary basis.

The Repairs and Maintenance Fund represents monies set aside for the future upkeep and maintenance of the College

site.

20




14. Analysis of net assets between funds

Unrestricted

Funds

Designated

Funds

Restricted

Funds

Total

£ £ £ £

Fund balances at 31 August 2017 are

Represented by:

Tangible fixed assets 5,422,855 - - 5,422,855

Investments 632,967 500,928 1,162,796 2,296,691

Current assets 4,342,279 200,000 - 4,542,279

Creditors: amounts falling due (6,031,929) - - (6,031,929)

within one year

------------------- ------------------- -------------------- --------------------

4,366,172 700,928 1,162,796 6,229,896

========= ========= ========== ==========

15. Commitments under operating leases Land and buildings

2017 2016

£ £

Amounts due in:

Less than one year 823,144 841,855

Between two and five years 3,885,077 4,221,775

More than five years 7,854,665 9,214,353

----------------------- -----------------------

12,562,886 14,277,983

=========== ===========

16. Related parties

The former Principal received a staff discount of 50% on her child’s termly tuition fees which resulted in a

£8,850 (2016: £8,430) reduction during the year. There were no other related party transactions (2016: None).

17. Control

The College is controlled by the Council of Queen’s College, London.

21




18. Comparative Statement of Financial Activities

Unrestricted Restricted Total

Funds Funds 2016

£ £ £

INCOME FROM:

Donations and legacies 91,356 - 91,356

Investments 57,271 54,841 112,112

-------------------- -------------------- --------------------

148,627 54,841 203,468

Charitable activity

Education 9,566,232 - 9,566,232

-------------------- -------------------- --------------------

Total income 9,714,859 54,841 9,769,700

-------------------- -------------------- --------------------

EXPENDITURE ON:

Raising funds 50,335 - 50,335

Charitable activity

Education 8,876,047 - 8,876,047

--------------------- -------------------- ---------------------

Total expenditure 8,926,382 - 8,926,382

--------------------- -------------------- ---------------------

Net income before net gains/(losses) on

investment assets

788,477

54,841 843,318

Net gains on investment assets 136,263 69,495 205,758

--------------------- -------------------- ---------------------

Net income 924,740 124,336 1,049,076

Transfers between funds 58,530 (58,530) -

--------------------- -------------------- ---------------------

Net movement in funds 983,270 65,806 1,049,076

Fund balances at 1 September 2015 3,874,582 1,026,596 4,901,178

-------------------- -------------------- ---------------------

Fund balances at 31 August 2016 4,857,852 1,092,402 5,950,254

========== ========== ==========

Documents

QUEEN’S COLLEGE, LONDON COUNCIL’S REPORT AND …