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The Edinburgh Academy and Subsidiary Companies

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The Edinburgh Academy and Subsidiary Companies THE EDINBURGH ACADEMY AND SUBSIDIARY COMPANIES Consolidated Financial Statements And Directors’ Report for the year ended 31 July 2020 Charity registration number: SC016999 THE EDINBURGH ACADEMY AND SUBSIDIARY COMPANIES CONSOLIDATED FINANCIAL STATEMENTS AND DIRECTORS’ REPORT for the year ended 31 July 2020 CONTENTS PAGE Directors’ Report 1 Independent Auditor’s Report 17 Consolidated Statement of Financial Activities 20 School Statement of Financial Activities 21 Balance Sheets 22 Consolidated Statement of Cash Flows 23 Notes to the Financial Statements 24 THE EDINBURGH ACADEMY AND SUBSIDIARY COMPANIES DIRECTORS’ REPORT for the year ended 31 July 2020 The Directors present their report and the audited financial statements for the year ended 31 July 2020. This report has been prepared in accordance with current statutory requirements applicable to charities. GLOBAL PANDEMIC Impact on the Edinburgh Academy The Edinburgh Academy, along with the rest of the country watched the spread of COVID across the UK and the world in March 2020. The School had a few weeks of preparation to move to remote learning and teaching before the Scottish Government announced that schools would be closed from 20th March 2020 and that the certificate exams for 2020 had been cancelled and that the pupils would be graded on teacher assessments of their work. At this time the pupils in these certificate years were to be allowed into the School for 2 weeks to allow more evidence to be gathered to support their exam grades. This fast moving situation then changed again on Sunday 22 March 2020 when the Deputy First Minister made an announcement that no pupils were to attend school with immediate effect. In line with the Scottish Government directive the School remained open for the education of children of Key Workers throughout the lockdown and, as a registered provider with the Care Inspectorate, volunteered to host additional children with Edinburgh City Council in case there was a shortage of Nursery provision for the children of Key Workers. The School swiftly adapted its plan and started to provide remote home learning to all year groups whilst also collating the evidence required to support the exam estimates that the teaching staff were preparing for submission to SQA. This process took place over the two weeks before the Easter Holiday. After the Easter holiday the focus for teaching staff was to ensure that the pupils continued to receive a first class education. This was a steep learning curve for all as lessons were delivered in a wide variety of methods to suit the age and stage of the pupils. These ranged from live lessons using Microsoft Teams to recorded lessons but the overall aim was that pupils and teachers had live interaction in every school day. The whole staff worked hard together to ensure that learning and teaching continued throughout the lockdown period. The School managed to conduct its first set of remote exams with the Fourths being tested. This was an excellent proof of concept which may be used again if the restrictions require it. It was disappointing that due to the lockdown lasting beyond the end of the Summer Term all the normal Summer Term activities were cancelled, a loss which was felt by all at the School. It impacted the leavers hardest, as they were unable to join together to celebrate their time at the School in the usual manner. However the Divisional Competition was completed with remote competitions and Exhibition for both the Junior and Senior Schools was pre-recorded and the made available for all pupils, parents and staff to watch. During lockdown the School continued to provide public benefit by supporting the local community at this time of national crisis.The Design and Manufacture Department produced plastic face masks which were given to care homes and other organisations who were desperately short of PPE when the country entered lockdown. The School also supported the Scran Academy, a local charity providing meals to vulnerable people. This support took the form of providing kitchens for the preparation of food and the use of the dining room in which to package it. This initative was supported by 15 of our senior pupils who volunteered between April and July to pack and deliver meals. They formed a formidable work force and packed over 50,000 meals. This was great testimony to their own resilience and sense of duty that, in a time of adversity, they stepped forward to help others. The publication of the exam results in August 2020 was a fraught time as the examination boards were forced to change how they had interpreted the evidence given to them to support the pupil grades and to revert back to the assessments that the teachers had originally submitted. Details of these results are discussed later in this report. The Court took swift decisions to deal with the financial uncertainty that came with the lockdown. It immediately created a hardship fund to assist those families who found themselves in severe financial difficulties as a result of the lockdown. The Court decided to give a summer term discount on tuition fees to both the Nursery and to Sevenths. 1 THE EDINBURGH ACADEMY AND SUBSIDIARY COMPANIES DIRECTORS’ REPORT for the year ended 31 July 2020 A scheduled pay award of 2% to all staff due to be made in April 2020 was cancelled and the Court cancelled or postponed all but essential spending. A major casualty in this was the postponement of the building plan to extend the Science Centre and the Library. It had been hoped this would commence in July 2020. However, whilst this building plan remains central to our plans for the future development of the Senior School, the Court is considering carefully when it will appropriate to start it. The Court announced in April 2020, to both staff and parents, that there would be fee and pay freeze for the 2020/21 academic year. The Court of Directors was concerned that the impact of the lockdown could result in a withdrawal of pupils. It is pleasing, however, to report that this has not occurred and the excellent efforts of the teaching staff to continue to evolve how they delivered remote education were rewarded with the pupil numbers remaining strong, and in fact growing. When the School re-opened on 19th August 2020 the Senior School opened with 655 pupils and the Junior School with 393 and waiting lists at all major entry points. The new academic session has started with many measures in place to ensure that the School is fully compliant with Government legislation and guidance to limit the spread of COVID. The pupils and staff have displayed great resilience and flexibility in how they have adapted to this new environment which has quickly become the new normal. Whilst competitive sport is yet to start and some communal activities cannot yet take place, the School is delivering the full range of education and activities that would normally be expected. Further funding has been made available to assist families who find themselves in financial hardship due to the economic impact of the crisis. This support is being offered on a means tested basis. The Court has ensured that appropriate controls and procedures are in place to monitor the impact of the recession on the School and to ensure the financial integrity of the School for the future. Whilst it is recognised that this remains a fast-moving situation the Court of Directors is convinced that the School is extremely well placed to meet these challenges and to continue to deliver a first class education to all our pupils. OBJECTIVES The Edinburgh Academy is regarded as one of the leading independent schools in Scotland. We offer an impressive range of opportunities for our pupils. A generous staff to pupil ratio enables staff quickly to come to know the pupils and recognise their individual needs. Individuality is nurtured within the context of a caring community. The staff seek to foster in all pupils a vision and an ambition for themselves as a foundation for life, which will enable them to realise their full potential. The Royal Charter was originally granted in 1824 with the most recent amendment made by a supplementary Charter in 2017. The purpose behind the amendment of the Charter in 2017 has been to ensure: (a) that the objects and powers of the Academy are appropriate for the current activities and operation of the school; (b) that the objects and powers are in compliance with the legislation relating to charities and trustees and in particular the Charities and Trustee Investment (Scotland) Act 2005 (“the 2005 Act”); (c) that the governance arrangements comply with relevant legislation, the recommendations of Office of the Scottish Charity Regulator (OSCR) and best practice. As part of the amendment to the Royal Charter the Court, on the recommendation of the Chair, may from time to time, elect persons to be Fellows of The Edinburgh Academy where it is recognised that they have made a significant contribution to the furtherance of the objects of The Edinburgh Academy or have otherwise rendered benefits to The Edinburgh Academy. This year the Court approved the election of the former Chair of the Court, , as a Fellow. 2 THE EDINBURGH ACADEMY AND SUBSIDIARY COMPANIES DIRECTORS’ REPORT for the year ended 31 July 2020 OBJECTIVES (continued) The School’s Charitable Objective is: the provision of education in Scotland and in particular at The Edinburgh Academy including all aspects of nursery, primary and secondary education and the provision of all facilities to achieve that; the furtherance of that and a contribution to the educational life of Scotland in its widest sense and the provision of benefits related to the purposes of The Edinburgh Academy for those who may not be enrolled pupils at the Edinburgh Academy In support of the Charitable Object, the School has certain fundamental aims which are set out in The Edinburgh Academy Vision Statement.
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