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2023-08-31-accounts

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

Registered Charity No. 1002212 (England and Wales) Company Registra�on No. 02331296

Somerhill Charitable Trust Limited (A company limited by guarantee)

Report and Financial Statements For the year ended 31 August 2023

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

CONTENTS


Page
Chair of Governors’ summary 2
Governors’ report and strategic report 3 – 13
Statement of Governors’ responsibilities 14 - 15
Independent auditor’s report 16 – 18
Statement of financial activities 19 – 20
Balance sheet 21
Statement of cash flows 22
Notes to the financial statements 23 – 39

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

CHAIR OF GOVERNORS’ SUMMARY

For the year ended 31 August 2023

The board saw the retirement of Diane Huntingford at the end of the summer term 2023 and the election of Christine Barry which strengthens us in the area of HR, she will also take over the chair of the HR committee.

The year has been pleasingly normal and successful in both academic, sporting and other extra-curricular offerings reported elsewhere. Staff turnover is down and extensive refurbishment and improvements have been made to the School. A pre-application was made to the local planning authority in regard to our “masterplan”; this plan encompasses a variety of options to ensure the School is suitably provisioned to support our aims and provide the best structure in support of them.

We have also recently contracted a plan to progress our objectives in the long term to be a net zero site, this is providing some interesting challenges.

We have restructured our board meetings to provide additional focus to risk and strategies, particularly given the potential risk to our parent body (and therefore student headcounts) should VAT be levied on school fees and business rates be charged.

Saplings, our outside teaching environment, is well established, popular and profitable.

The School’s pupil headcount and finances remain strong although, along with all independent schools, we are wary of challenges that a downturn in the economy, changing tax regimes or a loss of charity status might inflict and we have appropriate plans in place to mitigate risks as they arise.

Mark A. Jiskoot

Chair of the Board of Governors

Date:

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DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

GOVERNORS’ REPORT AND STRATEGIC REPORT For the year ended 31 August 2023

The Directors of Somerhill Charitable Trust Limited (the “School”, “Somerhill”), who are also the Trustees of the charity and the Governors of the School (and will be referred to throughout these financial statements as the “Governors”), present their annual report and the audited financial statements of the company for the year ended 31 August 2023 and confirm they comply with the requirements of the Charities Act 2011, the governing document, 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 England and Wales and the Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in England and Wales and the Republic of Ireland' and the Companies Act 2006.

Constitution

The School is a charitable company incorporated under the Companies Act with company number 02331296 and charity number 1002212. The company is limited by guarantee and does not have a share capital. The liability of the members is limited to £1 each. The School’s governing document is the Memorandum and Articles of Association of 29 December 1988 as amended by special resolution passed on 14 February 1991 and incorporated on 25 February 1991.

Directors, Trustees and Governors

The Board should have a minimum of three members, with no maximum unless determined at a General Meeting through an Ordinary Resolution. Each Governor has one vote.

The Directors from 1 September 2022 to the date of signing were:

C A Barry ** (appointed 30 November 2023) P G Bromley * (appointed 30 November 2022) P R Brooks + ** P M Goodyer + E Henery + (appointed 30 November 2022) C Holder * (appointed 28 February 2023) D M Huntingford * + ** (resigned 31 August 2023) J V Irvine * **

M A Jiskoot * + ** ++ (Chair of Governors from 1 September 2022) P J North +

R E Verrell * D A Wells *

** Members of the HR Committee chaired by C Barry.

++ Members of the Health & Safety Committee chaired by J M Hunt (Bursar).

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DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

GOVERNORS’ REPORT AND STRATEGIC REPORT (con�nued) For the year ended 31 August 2023

Strategic Report

Objectives and Activities

The Governors’ aim is to provide an all-round excellent education to boys and girls from ages 3 – 13. The objectives are set to reflect the educational aims and ethos of Somerhill. It is important that the Governors maintain and enhance the reputation of the School through the continued success of the curricular and co-curricular programmes. In setting the objectives and planning the activities, the Governors have carefully considered the Charity Commission’s general guidance on public benefit and in particular its supplementary public benefit guidance on advancing education including the provision of assisted places. Particular reference is given to a) promoting the spiritual, moral, cultural, mental and physical development of pupils and b) preparing pupils at the school for the opportunities, responsibilities and experiences of later life.

The key objectives include:

Risk management

The Governors consider that the principal risks and uncertainties facing the School are as follows:

The Governors formally review the major risks that the company faces each financial year when preparing the strategic development plan and budget. The School has developed systems and procedures to manage and monitor these risks. The key controls used by the Governors include:

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DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

GOVERNORS’ REPORT AND STRATEGIC REPORT (con�nued) For the year ended 31 August 2023

Remuneration of key management personnel

The day-to-day running of the School is delegated to the Headmaster of Somerhill. He is supported by other members of the School’s Senior Leadership Team. The remuneration of key management personnel is agreed by the Board through the School’s annual budget, as recommended by the F&GP and HR Committees. It is the objective of the Board to ensure that key management personnel are provided with appropriate incentives to encourage enhanced performance and are, in a fair and responsible manner, rewarded for their individual contributions to the School’s success. The appropriateness of the remuneration policy is reviewed annually with reference to published salary levels of other independent schools to ensure that the School remains sensitive to the broader issues of pay and employment conditions elsewhere. Delivery of the School’s charitable vision and purpose is primarily dependent on our key management personnel and staff costs are the largest single element of our charitable expenditure.

Public Benefit

The Governors have given due regard to the Charity Commission’s guidance on public benefit. As a Registered Charity, the Trustees (Governors) are mindful of the School’s obligation to provide public benefit through means tested assisted places, by providing access to the School’s facilities and links with local maintained schools which complement its objectives to provide for the advancement of education.

The School maintains a Public Benefit Register which is reviewed by the Governors each year. The School continues to support a range of local schools and organisations within the local community. This includes weekly swimming lessons with Somerhill swimming teachers, including transport for four local primary schools, all at no charge to the school. Monson Swimming Club also use the pool on a near daily basis, both to teach swimming and for coaching competitive swimming for children in the local area.

The sports hall and playing fields are used by local sporting clubs, both for children and adult use, and our parkland is regularly used for cross-country events, football tournaments and mountain biking.

The School provided financial assistance of £495,090 in 2022/23 (2021/22: £560,137).

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SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

GOVERNORS’ REPORT AND STRATEGIC REPORT (con�nued) For the year ended 31 August 2023

Achievements and Performance

Overview: Somerhill is a vibrant, successful school with a good reputation within its marketplace. During the final term of the year ended 31 August 2023, Somerhill had 620 pupils.

Business review, achievements and performance : The company is principally engaged in the owning and running of the School and is a registered charity. The operation of the School is the responsibility of the Governors, who are the directors of the company, none of whom receive any remuneration.

Academic Achievement: As mentioned in the last ISI report, the achievement and progress of pupils at Somerhill is excellent. Pupils move on successfully to secondary education in both the grammar and independent sectors, notably with 19 boys going to Tonbridge School. Also impressive was the fact that 18 leavers gained scholarships.

Pupil Experience: Somerhill prides itself on providing a wide ranging and varied education. The School believes that enjoyment and inclusivity should go hand in hand with the setting of high standards and the pursuit of excellence. This year we have not only continued to celebrate our proud tradition of excellent academic results, but we have thoroughly enjoyed our sporting contests, been wonderfully entertained by top class musical and dramatic performances and seen our children thrive in a broad and exciting co-curricular programme which offers opportunity to all our young people – from beekeeping to Formula One model design and racing. As a unique school with a ‘diamond model’ for our boys and girls, we have enjoyed recognising where differences exist in their approaches to learning while promoting a unified and equal approach to their broader educational experience. The diamond model allows for a ‘best of both worlds’ approach – boys and girls are taught in the classroom together until Year 3; at this point classroom lessons become single sex although all other co-curricular and day-to-day activities take place in a co-educational environment. Pupils are then well prepared to go into a co-educational classroom setting at either secondary school or sixth form.

Pre-Senior Baccalaureate : The introduction of the Pre-Senior Baccalaureate (PSB) in the past few years has moved the curriculum to discovery-led, enquiry-based learning for our pupils, which sees the teacher as a facilitator to learning, not an oracle imparting academic knowledge. The skills extend more broadly into the establishment of skills for life. It is a programme of study that sits not only in the academic lessons of the School, but extends into the creative and performing arts, the practical elements of engineering and also onto the sports pitch and playground. The Pre-Senior Project Qualification (PSPQ) aims to develop pupils’ independent learning and performance, inspiring them to consider new areas or methods of study and preparing them for their learning at senior schools and later at university and at work. It has been very well received by destination senior schools. The PSPQ is now an established feature of Year 8 with the PSB now firmly established in both Year 8 and Year 7. PSB style project work has extended to art, engineering and drama as well as expanding into Year 6.

Curriculum Enhancements : Somerhill was only the second prep school in the UK to introduce Engineering as part of its curriculum. Pupils have used woodworking skills to make canvas frames and full-sized catapults, utilising skills in aerodynamics and civil engineering. Other practical units work with technology such as robotics, GPS systems and micro controllers to understand what engineers do. We also continue to leverage the use of our wonderful grounds in which our children have enjoyed pond dipping, den building and learning about the different flora and fauna. Pupils of all ages get to experience the outdoor learning whereby more traditional learnt knowledge can be re-enforced using the natural world. Our dedicated “outdoor” classroom, Saplings, goes from strength to strength and allows our pre-school children to enjoy a mixed model where existing and new parents can select internal and external classroom time for our youngest pupils.

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SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

GOVERNORS’ REPORT AND STRATEGIC REPORT (con�nued) For the year ended 31 August 2023

Environmental Awareness

Somerhill is very conscious of its responsibilities to the environment and reducing its carbon footprint. There are comprehensive plans under review to achieve a net carbon zero school and these plans will be progressed over the coming years.

Music at Somerhill

Learning about music and having the opportunity to play musical instruments and make music together is a vital part of a rich and rounded education. It has also been proven that music plays a key role in brain development. This is because it helps with the nurturing of language, motor skills, emotional intelligence and collaboration skills. At Somerhill, we consider music to be integral to our curriculum, with lessons being taught to all children from Reception through to Year Eight by two committed and highly experienced music teachers. In addition, a dynamic group of VMT (Visiting Music Teachers) deliver over 13,000 individual music lessons a year across all three sections of the school.

Beyond the classroom and individual lessons, the children have the opportunity to perform to an audience in a variety of ways. The Michaelmas term always concludes with Christmas performances by the children in the PrePrep and with Carol Services for the Prep school children at St Stephen's Church for the Juniors and at Tonbridge School for the Middles and Seniors. Instrumentalists and vocalists are able to perform in informal afterschool soirees in the Michaelmas and Lent terms, as well as to their peers in lunchtime soirees in the Trinity term.

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SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

GOVERNORS’ REPORT AND STRATEGIC REPORT (con�nued) For the year ended 31 August 2023

Music at Somerhill (continued)

More formally, the School holds a Spring Instrumental concert and Junior and Senior Choral and Instrumental concerts in the summer. In these concerts, our music teachers and VMTs are able to showcase their music groups to large audiences of family and friends. Current music groups include a 70-strong orchestra, brass groups, flute groups, strings groups, cello groups and guitar groups.

Somerhill continues to provide half of the tenor line for Tonbridge School, with up to 11 boys committed to three rehearsals a week and one or two performances on Sundays during term time. We remain one of the largest ABRSM (Associated Board of the Royal Schools of Music) centres in the country with pupils entering in a variety of instruments and voice exams up to Grade 6 standard.

Sport at Somerhill

Somerhill has always had a strong sporting tradition and the Governors are keen that this continues. The excellent and extensive facilities and the number of pupils at the School means that there are a large number of teams across many sporting disciplines, allowing all pupils to take part at a standard that is best suited to their abilities.

Pupils are introduced to a wide range of physical education skills through the Pre Prep curriculum and clubs. These skills are then developed in the Prep School in both team and individual disciplines.

In the winter, the main sports in the Prep School are football, rugby, hockey, netball, swimming and cross country. In the summer athletics, tennis and cricket. The School has an indoor 25m swimming pool with viewing gallery, four hardcourt tennis courts, an astro and extensive sports pitches on both our terraces and parkland. Somerhill also offers a wide range of other sports as well, such as equestrian, dance, golf, triathlon and judo through the extensive after school clubs’ programme.

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SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

GOVERNORS’ REPORT AND STRATEGIC REPORT (con�nued) For the year ended 31 August 2023

Sport at Somerhill (continued)

Somerhill regularly competes in local, county and national tournaments and has an extensive fixture list with local Prep Schools. Somerhill is viewed as one of the strongest sporting schools in Kent across many disciplines.

Recent projects and plans for future development

The Governors continue to provide the necessary resources from unrestricted general funds to maintain the buildings and structures that the Trust owns, especially the Grade 1 listed Jacobean Mansion. To maintain the fabric of the buildings the Governors have approved the full redecoration of all school buildings and this process has been underway since Easter with many classrooms and public areas already having been completed. The Governors also approved the final stages of the whole school IT upgrade and this phase was rolled out over the summer holiday, ensuring that all hardware is of the latest specification.

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DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

GOVERNORS’ REPORT AND STRATEGIC REPORT (con�nued) For the year ended 31 August 2023

Financial Review

The financial results of the School for the year ended 31 August 2023 are shown in the Statement of Financial Activities. The School has maintained a strong NOR (numbers on roll) ending the year with 620 pupils. Overall budget has been exceeded by £487k with a net surplus of £634k for the year. Operating surplus was £1.1m, which is a £513k (82%) improvement on budgeted operating surplus of £625k.

The School’s subsidiary undertaking, Somerhill Enterprises Limited, was dormant throughout the year.

Reserves policy

The Governors’ policy on reserves is to hold sufficient liquid assets to cover short term requirements which range between £1.5 million and £2 million. At 31 August 2023, the School had total reserves of £21,548,916 (2022: £20,914,726), made up of a general fund of £4,765,089 (2022: £9,047,699) and various designated funds, representing the net book value of the school mansion and grounds, of £11,743,827 (2022: £11,867,027) and the capital developments fund of £5,000,000 (2022: £nil). The school’s net current assets were £631,011 at 31 August 2023 (2022: £5,124,510).

Given the uncertain and changing economic and regulatory environment the School will review and update its reserves and investment policy in the next academic year to ensure that it is robust enough to handle the potentially challenging times ahead.

Other Assets

In addition to the school mansion and grounds (circa 120 acres), the Trust owns five residential properties with an aggregate historic cost of £3.3m, a figure the Governors consider to be an approximate current value. These could be liquidated without affecting the ability of the School to operate and continue to provide the excellent facilities enjoyed at present.

The Governors intend to build financial reserves so that they can continue to upgrade the facilities of the School in support of the Site Master Plan, and to continue providing appropriate assisted places/financial assistance for the parents of children who could otherwise not afford independent education.

Somerhill Parents’ Association

Somerhill Parents’ Association (SPA) holds circa 5 events across the academic year; these are for existing parents and their families, and other supporters of the school. Some events are designed to raise funds for the School, whilst others are intended to cover expenses and are there to build community spirit. Specific projects may raise funds for external charities e.g., a charity auction at the Summer Ball. Funds raised for the School are assigned to projects in consultation with the parent body, the Headmaster, and the Senior Leadership Team.

Other fundraising

The School does not carry out any fundraising activity in order to raise funds from the general public. The School has not received any complaints in relation to fundraising in the year (2022: none).

Fee Remissions

The School provides financial assistance through various means tested schemes:

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SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

GOVERNORS’ REPORT AND STRATEGIC REPORT (con�nued) For the year ended 31 August 2023

Professional advisers and senior leadership team

Headmaster of Somerhill Mr D B Sinclair
Head of Somerhill Pre-Prep Mrs A L McKnight
Bursar/Company Secretary Mr J M Hunt
Address and registered office Somerhill
Tonbridge
Kent
TN11 0NJ
Solicitors Veale Wasbrough Vizards
Orchard Court
Orchard Lane
Bristol
BS1 5WS
Auditors Azets Audit Services
First Floor, River House
1 Maidstone Road
Sidcup
Kent
DA14 5RH
Insurance brokers Towergate Risk Solutions
Towergate House
Chaucer Business Park
Thanet Way
Whitstable
Kent
CT5 3FE
Marsh Education Practice (W.E.F. 01/01/2024)
4 Milton Road
Haywards Heath
West Sussex
RH16 1AH
Bankers Barclays Bank plc
105 High Street
Tonbridge
Kent
TN9 1DJ
National Westminster Bank Plc
130 High Street
Tonbridge
Kent TN0 1

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DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

GOVERNORS’ REPORT AND STRATEGIC REPORT (con�nued) For the year ended 31 August 2023

Structure, governance and management

Governing documents

The Company is governed by its Memorandum and Articles of Association of 29 December 1988. These were amended by special resolution passed on 14 February 1991 and incorporated on 25 February 1991.

Recruitment and training of governors

Governors are appointed in accordance with the Memorandum and Articles of Association filed at Companies House (and the Charity Commission) adopted in 1991. The composition of the Board of Governors is designed to offer a wide range of expertise to meet the needs of Somerhill. Possible candidates for election as new Governors are proposed by an existing Governor and recommended by him or her through the Chair to the Board of Governors. Financial provision is made for external training courses for Governors. An induction tour is given by the Chair of the Governors, or by a designated person, to new Governors. Regular visits and inspections take place by existing Governors applicable to the relevant skills and contributions of those appointed. Trustee indemnity insurance is in place for the benefit of the Governors.

Scope of activities

The Memorandum of Association of the company restricts the Trust to provision of education but permits the Governors powers to conduct a wide range of activities in support of its aims. Education is also about the personal development of the pupils as recognised by the Charity Commission in their definition of education.

Organisation and administrative structure

The Governors determine the general strategy of the School. The Board of Governors meets as and when necessary, but certainly not less than once a term, when it receives reports from the Education Committee, the HR Committee and the Finance and General Purposes Committee (F&GP), along with reports from the School’s Senior Leadership Team. The day-to-day management of the School is delegated to the Headmaster and the Senior Leadership Team.

The Headmaster, in conjunction with the F&GP, the Education Committee and the Senior Leadership Team, prepares the School Development Plan (Achievements and Performance) which is considered and reviewed by the Board of Governors on an annual basis at their meeting in the Summer.

Education Committee: This is an advisory Committee designed to give guidance and assistance to the Headmaster, Head of Pre-Prep and Deputy Head Teachers. The Education Committee discusses matters specific to the education of children at Somerhill. The Committee meets as and when necessary, but certainly not less than once a term, and reports to the Main Board.

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DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

GOVERNORS’ REPORT AND STRATEGIC REPORT (con�nued) For the year ended 31 August 2023

Organisation and administrative structure (continued)

F&GP Committee: This Committee is responsible for monitoring the management of the finances and administration of Somerhill and, where necessary, taking appropriate action. The Committee reports to the Board of Governors and, when necessary, obtains their approval for the recommendations being made to them. The Committee is responsible for the maintenance of the buildings, properties and estate owned by the School. Changes to the Charities Acts and Charity Commission procedures are monitored and, if appropriate, recommendations made to ensure that Somerhill Charitable Trust Limited complies with its legal responsibilities and follows best practice. The Committee meets as and when necessary, but certainly not less than once a term, and reports to the Main Board.

HR & Remuneration Committee : The main responsibility of the Committee is to monitor and review all aspects of HR and set the remuneration of the Senior Leadership Team. This Committee also meets as and when necessary, but certainly not less than once a term, and reports to the Main Board.

Charitable Activity

Somerhill pupils take part in regular charitable fundraising activities. Pupils have previously raised money for a diverse set of charities addressing local and global issues. These include the Nourish Food Bank, Anti Bullying Alliance, Children in Need, Hospice in the Weald, Save the Children, Marie Curie, Battersea Dogs and Cats Home, RSCPA, RNLI, Restless Development and Sport in Mind. In addition, the School annually supports the Royal British Legion Poppy Appeal and Books for Africa, whereby books are sent to schools across Africa.

Investment powers and investment policy

The Memorandum of Association of the School empowers the Governors to invest the monies of the School not immediately required for its purposes in such investments, securities or property as may be thought fit and within the law. The Governors will take professional advice as required.

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SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

STATEMENT OF GOVERNORS’ RESPONSIBILITIES For the year ended 31 August 2023

The Governors are responsible for preparing the Governors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

STATEMENT OF GOVERNORS’ RESPONSIBILITIES (con�nued) For the year ended 31 August 2023

Company law requires the Governors to prepare a financial statement for each financial year which gives a true and fair view of the state of affairs of the charitable company, the incoming resources and application of resources, including the income and expenditure of the charitable company for the accounting period. In preparing this financial statement, the trustees are required to:

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

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

Statement as to disclosure of information to auditor

The Governors who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the Governors has confirmed that they have taken all the steps that they ought to have taken as Governors to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditors.

The Governors’ Report was approved by the board of Trustees and the Strategic Report (included therein) was approved by the board of Governors in their capacity as the directors of the company on 20 March 2024 and signed on its behalf by:

Mark A. Jiskoot Chair of the Board of Governors

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SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

INDEPENDENT AUDITOR’S REPORT

To the Governors of Somerhill Charitable Trust Limited

Opinion

We have audited the financial statements of Somerhill Charitable Trust Limited (the ‘School’) for the year ended 31 August 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the School in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (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 Governors' 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 School’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 Governors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Governors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

INDEPENDENT AUDITOR’S REPORT

To the Governors of Somerhill Charitable Trust Limited (con�nued)

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the School and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the Governors' report.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Governors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Governors

As explained more fully in the statement of Governors' responsibilities, the Governors, who are also the directors of the School for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Governors 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 Governors are responsible for assessing the School’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 Governors either intend to liquidate the School or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

17

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

INDEPENDENT AUDITOR’S REPORT

To the Governors of Somerhill Charitable Trust Limited (con�nued)

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the School's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the School's members 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 School and the School’s members as a body, for our audit work, for this report, or for the opinions we have formed.

M Wilkes FCA

Date: 23 May 2024

for and on behalf of Azets Audit Services

Chartered Accountants Statutory Auditor

First Floor, River House 1 Maidstone Road Sidcup Kent DA14 5RH

18

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES Including Income and Expenditure Account For the year ended 31 August 2023

Unrestricted
funds
2023
Notes
£
Income and endowments from:
Donations and legacies
390
Charitable activities:
-
School fees receivable
2
8,934,333
-
Ancillary trading income
3
366,466
-
Government grants
4
-
Other trading activities:
-
Lettings income
78,670
Investments
81,223
Other income
5
1,644
Total income
9,462,726
Expenditure on:
Raising funds:
-
Financing costs
14,128
-
Fundraising and development
8,112
Charitable activities:
-
Education
8,876,571
Total expenditure
6
8,898,811
Net income before other gains and
losses
563,915
Gains on fixed asset investments
12
30,275
Net income and net movement in
funds
594,190
Fund balances at 1 September 2022
20,914,726
Fund balances at 31 August 2023
19
21,508,916		 Restricted
funds
2023
£
40,000
-
-
3,658
-
-
-
43,658
-
-
3,658
3,658
40,000
-
40,000
-
40,000		 Total
2023
£
40,390
8,934,333
366,466
3,658
78,670
81,223
1,644
9,506,384
14,128
8,112
8,880,229
8,902,469
603,915
30,275
634,190
20,914,726
21,548,916		 Total
2022
£
5,010
8,174,768
388,419
5,970
105,214
17,788
99,773
8,796,942
10,333
14,794
8,123,811
8,148,938
648,004
-
648,004
20,266,722
20,914,726

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

19

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES Including Income and Expenditure Account (con�nued) For the year ended 31 August 2023

Year ended 31 August 2022 (comparative)
Unrestricted
funds
Notes
2022
£
Income and endowments from:
Donations and legacies
5,010
Charitable activities:
-
School fees receivable
2
8,174,768
-
Ancillary trading income
3
388,419
-
Government grants
4
-
Other trading activities:
-
Lettings income
105,214
Investments
17,788
Other income
5
99,773
Total income
8,790,972
Expenditure on:
Raising funds:
-
Financing costs
10,333
-
Fundraising and
development
14,794
Charitable activities:
-
Education
8,117,841
Total expenditure
6
8,142,968
Net income before other gains and
losses
648,004
Gains/(losses) on fixed asset
investments
12
-
Net income and net movement in
funds
648,004
Fund balances at 1 September 2021
20,266,722
Fund balances at 31 August 2022
19
20,914,726		 Restricted
funds
2022
£
-
-
-
5,970
-
-
-
5,970
-
-
5,970
5,970
-
-
-
-
-		 Total
2022
£
5,010
8,174,768
388,419
5,970
105,214
17,788
99,773
8,796,942
10,333
14,794
8,123,811
8,148,938
648,004
-
648,004
20,266,722
20,914,726		 Total
2021
£
3,667
7,190,992
315,128
46,656
70,959
2,236
-
7,629,638
13,580
7,253
7,582,284
7,603,117
26,521
-
26,521
20,240,201
20,266,722

20

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

BALANCE SHEET As at 31 August 2023

Notes
Fixed assets
Tangible assets
11
Investments
12
Current assets
Debtors
13
Investments
14
Cash at bank and in hand
Creditors: amounts falling due
within one year
15
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
16
Net assets
Income funds
Restricted funds
17
Unrestricted funds
18
-
Designated funds
-
General funds		 2023
£
£
16,038,210
5,031,293
21,069,503
2,613,229
1,508,007
533,337
4,654,573
(4,023,562)
631,011
21,700,514
(151,598)
21,548,916
40,000
16,743,827
4,765,089
21,508,916
21,548,916		 2022
£
£
15,902,416
100
15,902,516
2,676,186
1,500,384
4,982,499
9,159,069
(4,034,559)
5,124,510
21,027,26
(112,300)
20,914,726
-
11,867,027
9,047,699
20,914,726
20,914,726		 2022
£
£
15,902,416
100
15,902,516
2,676,186
1,500,384
4,982,499
9,159,069
(4,034,559)
5,124,510
21,027,26
(112,300)
20,914,726
-
11,867,027
9,047,699
20,914,726
20,914,726
15,902,516
5,124,510
21,027,26
(112,300)
20,914,726
-
20,914,726
20,914,726

The financial statements were approved by the Board of Governors on 20 March 2024 and signed on behalf of the Board by

Julia V. Irvine

Chair of the Finance and General Purposes Committee

Company Registration No. 02331296

21

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

CASH FLOW STATEMENT For the year ended 31 August 2023

Notes
Cash flows from operating
activities
Net cash provided in operating activities
22
Investing activities
Purchase of tangible fixed assets
Purchase of fixed asset investments
Sale proceeds of fixed asset investments
Investment income received
Net cash used in investing
activities
Net cash inflow before financing
Financing activities
New fees in advance money
Fees in advance amounts utilised
Net cash used in financing
activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
23		 2023
£
£
1,069,756
(651,535)
(7,590,495)
2,649,513
81,223
(5,511,294)
(4,441,538)
194,326
(326,108)
(131,782)
(4,441,538)
6,482,883
2,041,345		 2022
£
£
1,249,354
(219,522)
-
-
17,788
(201,734)
1,047,620
334,171
(256,940)
77,231
1,124,851
5,358,032
6,482,883		 2022
£
£
1,249,354
(219,522)
-
-
17,788
(201,734)
1,047,620
334,171
(256,940)
77,231
1,124,851
5,358,032
6,482,883
1,047,620
77,231
1,124,851
5,358,032
6,482,883

22

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2023

1 Accounting policies

The School is a registered Charitable Company limited by guarantee in the United Kingdom. The address of the registered office is given in the reference and administrative details, on page 12.

1.1 Basis of preparation

The financial statements of the School, 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 England and Wales and the Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in England and Wales and the Republic of Ireland' and the Companies Act 2006.

The financial statements have been prepared on a going concern basis under the historical cost convention.

The financial statements are prepared in sterling which is the functional currency of the School.

1.2 Going concern

At the time of approving the financial statements, the Governors’ have a reasonable expectation that the School has adequate resources to continue in operational existence for the foreseeable future. Thus the Governors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Consolidation

The School is exempt from the requirement to produce group accounts as the subsidiary is dormant and considered immaterial.

Accordingly, the accounts present a view of the individual charitable company and not of the group of which it is the parent.

1.4 Charitable funds

Unrestricted funds are available for use at the discretion of the Governors in furtherance of their charitable objectives.

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

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

23

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2023

1 Accounting policies (Continued)

1.5 Income

Income is recognised when the School is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Fees and similar earned income are accounted for in the period in which the service is provided. Invoices are raised in advance of each school term; any invoices outstanding at the balance sheet date are shown as trade debtors. Any element of fees relating to future terms is treated as deferred income and included within current liabilities.

Bursaries are awarded based on financial circumstances.

Donations and other voluntary income are accounted for as and when entitlement arises, the amount can be reasonably quantified, and receipt is considered probable.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.6 Expenditure

Expenditure is allocated to functional headings either on a direct cost basis or apportioned accordingly. The irrecoverable element of VAT is included with the item of expense to which it relates. Supplies of books, expenditure and sundry equipment are written off when the expenditure is incurred.

Support costs are those that assist the work of the School but do not directly represent charitable activities and include office costs, governance costs, and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of rising funds and expenditure on charitable activities on a basis consistent with use of the resource.

Governance costs include those incurred in the governance of the School and are primarily associated with constitutional and statutory requirements.

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the School 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.

24

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2023

1 Accounting policies (Continued)

1.7 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land Not depreciated Freehold buildings Between 0 and 50 years Equipment, fixtures and fittings Between 3 and 10 years Motor vehicles 5 years Website 3 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

Assets below the value of £1,000 are not capitalised.

No depreciation has been charged in relation to the School mansion building and other residential properties on the estate and owned by the School on the basis of immateriality. The Governors consider that any change and accumulated depreciation would be immaterial to the financial statements, due to the assets having a very long useful economic life, in any instance considered to far exceed 50 years, given the age of the buildings to date. The current estimated residual value would exceed any depreciation charged. An impairment review is undertaken annually.

1.8 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.9 Impairment of fixed assets

At each reporting end date, the School reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

Bank overdrafts are shown within borrowings in current liabilities.

Deposit accounts will more than 90 day maturity are classified as current asset investments.

25

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2023

1 Accounting policies (Continued)

1.11 Financial instruments

The School has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the School's balance sheet when the School becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the School is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Pension schemes

A hybrid retirement benefits scheme is provided to the teaching employees of the School. They may choose to be included within the Teachers’ Pension Scheme (TPS) or opt out into the group pension plan described below and shared with all other employees. The School’s contribution towards teachers pension is limited for either scheme.

The TPS scheme is a multi-employer pension scheme. It is not possible to identify the School’s share of the underlying assets and liabilities of the Teachers’ Pension Scheme on a consistent and reasonable basis and therefore, as required by FRS 102, the School accounts for the scheme as if it were a defined contribution scheme. The School’s contributions, where 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 School also operates a group Personal Pension Plan (defined contribution). The assets of the plan are held separately from those of the School. For every 1% contribution by employees the School contributes 2% with the School’s minimum contribution being 6% and a maximum of 10%. Employer’s pension costs are charged in the period in which the salaries to which they relate are payable.

26

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (con�nued) For the year ended 31 August 2023

1 Accounting policies (Continued)

1.14

Finance and operating leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

1.15 Value Added Tax

The School is not registered for VAT. All amounts in the financial statements are shown inclusive of VAT where appropriate.

1.16 Corporation Tax

Somerhill Charitable Trust Limited is a registered charity and as such its income and gains falling within Section 471 to 489 of the Corporation Tax Act 2010 or Section 256 of Taxation of Chargeable Gains Act 1992 are exempt from corporation tax to the extent that they are applied to its charitable objectives.

1.17 Judgements and uncertainty

Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The School makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 11 for the carrying amount of the property, plant and equipment, and for the useful economic lives for each class of assets.

Defined benefit pension scheme

The present value of the defined benefit pension deficit contributions payable depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the future recovery plan contributions due include the discount rate. Any changes in these assumptions, which are disclosed in note 24, will impact the carrying amount of the pension liability. Furthermore, a roll forward approach which projects results from the latest full actuarial valuation has been used by the actuary in valuing the pension liability. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability .

Bad debt provision

The value of trade debtors is sensitive to the recoverability in full of school fees. Once a debt becomes overdue, it is chased and periodically reviewed to ensure it is recoverable in full. An external debt collection agency is used. If a provision is deemed necessary, this is included on an annual basis.

27

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (con�nued) For the year ended 31 August 2023

2
School fees receivable
The school’s fee income comprised:
Gross fees
Less: Assisted places and fee discounts
The above awards were all made to individuals.		 2023
£
9,550,980
(616,647)
8,934,333		 2022
£
8,734,905
(560,137)
8,174,768

These include discretionary awards, assisted places, staff remission and sibling discounts made to 253 (2022: 243) individuals.

3 Ancillary trading income

Income from fundraising events
Other educational income:
-
Extras
-
Entrance and registration fees
4
Income from government grants
Coronavirus sick pay rebate scheme
Rural payments agency		 2023
£
8,930
340,786
16,750
366,466
2023
£
-
3,658
3,658		 2022
£
8,783
353,542
21,400
388,419
2022
£
2,312
3,658
5,970

Other income in 2022 primarily relates to amount received from an insurance claim. There was no other income for the year ended 31 August 2023.

28

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (con�nued) For the year ended 31 August 2023

6
Expenditure
Staff costs
(note 10)
Direct costs
(note 9)
Support costs
(note 7)
£
£
£
Raising funds
Financing costs
-
-
14,127
Fundraising events
-
-
8,112
-
-
22,240
Charitable activities
Education
3,967,077
2,238,621
2,674,531
3,967,077
2,238,621
2,674,531
Total expenditure
3,967,077
2,238,621
2,696,771
Expenditure includes:
Depreciation – owned assets
Operating lease rentals – equipment
Auditor’s remuneration (excl VAT)
-
Current year audit
-
Prior year audit
-
Other services
7
Support costs
Staff costs
Other expenses
Depreciation
Insurance
IT costs
Legal and professional fees
Motor costs
Advertising
Movement in provision against debts
Governance costs (note 8)		 Total
2023
£
14,128
8,112
22,240
8,880,229
8,880,229
8,902,469
£
515,741
52,200
14,750
5,485
3,650
2023
£
1,736,683
155,934
283,895
148,875
143,815
69,640
64,818
53,948
8,552
30,611
2,696,771		 Total
2022
£
10,333
14,794
25,127
8,123,811
8,123,811
8,148,938
£
476,898
43,239
13,750
435
4,950
2022
£
1,480,568
117,113
248,007
136,102
123,776
59,032
47,637
52,960
33,500
25,137
2,112,464

29

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (con�nued) For the year ended 31 August 2023

8
Governance costs
Audit and statutory accounts fee
Audit and statutory accounts fee – prior year
Teachers’ pension scheme audit fee
Governors’ indemnity insurance
9
Direct costs
Teaching costs
Welfare costs
Premises costs
10
Staff costs
Wages and salaries
Social security costs
Pension contributions
Other staff costs
This is made up of:
Teaching salaries
Support salaries
The average number of employees in the year was:
Teaching
Non-teaching		 2023
£
21,000
6,582
1,080
1,949
30,611
2023
£
516,305
740,197
982,119
2,238,621
2023
£
4,323,534
415,399
877,162
87,665
5,703,760
£
3,967,077
1,736,683
5,703,760
Number
111
36
147		 2022
£
19,800
522
2,640
2,175
25,137
2022
£
542,999
694,669
817,410
2,055,077
2022
£
3,924,336
374,293
647,374
28,137
4,946,003
£
3,493,572
1,480,568
4,974,140
Number
104
32
136

30

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS {continuedl Forthe year ended 31 August 2023 10 Staff costs Icontlnuedl The number of employees whose gross pay and benefits (including employer national insurance and excluding pension contributionsl exceeded £60,000 in the year were.. 2023 Numbgr 2022 Number £60,00- £70,000 £80.001- £90,000 £130,001 £140,000 Total remuneration for key management personnel (including employer national insurance and pension conlributionsl during the year amounted to £543,58912022.' £568,673). There were £nil of temiination payments in the year12022'. £19,000). Governors were reimbursed £1,37912022." £nill, £558 for travel and £821 for other meeting related costs. 31

Total £ 18,240,038 651,535 18,891,573 2,337,621 515,741 2,853,363 16,038,210 15,902,416
Website £ 21,302 - 21,302 8,521 7,101 15,622 5,680 12,781
Motor vehicles £ 136,971 - 136,971 95,692 9,997 105,689 31,282 41,279
Equipment, fixtures and fittings £ 1,313,077 396,872 1,709,949 629,966 249,518 879,485 830,514 683,111
Other freehold land and buildings £ 3,342,000 146,016 3,488,016 43,780 17,280 61,060 3,426,956 3,298,219
School freehold land and buildings £ 13,426,688 108,647 13,535,335 1,559,662 231,846 1,791,508 11,743,827 11,867,026
Tangible fixed assets Cost or valuation At 1 September 2022 Additions At 31 August 2023 Depreciation and impairment At 1 September 2022 Charge for the year At 31 August 2023 Net book values At 31 August 2023 At 31 August 2022
11

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (con�nued) For the year ended 31 August 2023

11 Tangible fixed assets (continued)

All freehold land and buildings are valued, for insurance purposes and including contents, at £97 million (2022: £68 million). School freehold land and buildings comprises the school mansion and grounds of 150 acres and other buildings owned by the School that are used for educational purposes. Other freehold land and buildings comprises other residential properties owned by the School.

12 Fixed asset investments

Fixed asset investments
Investment in managed funds
Investment in subsidiary		 2023
£
5,031,193
100
5,031,293		 2022
£
-
100
100

Investments in managed funds are made up of an Insignis Cash Account with a market value of £2,000,917 (2022: £nil) and a portfolio with LGT Wealth Management with a market value of £3,030,276 (2022: £nil).

£
Market value at 1 September 2022
-
Additions
7,590,495
Disposal
(2,589,577)
Gain in market value
30,275
Market value at 31 August 2023
5,031,193
Cost at 31 August 2023
5,036,513		 £
-
-
-
-
-
-

Included in the above are the following investments that make up more than 5% of the total portfolio value:

Insignis Cash Account £2,000,917 40%
United Kingdom (Government of) 0.25% BDS 31.01.2025 GBP1000 £214,190 7%
Columbia Thead OPPY FDS (UK) ICVC CT UK Social Bond INSTL GBP Acc £136,675 5%
Ishares VII PLC USD Treas BD 3-7yrs UCITS ETF GBP DIS HGD £198,447 7%
Legal & General (Unit Trust MGRS) Ltd Legal & Gen GBL INF LKD BD IDX
C ACC £186,889 6%
Mirova Funds SICAV MIrova Euro SHT TRM SUST BOND H GBP ACC £167,487 6%
Vontobel Fund TwentyFour SUST SHT TERM BD INC G GBP £308,066 £308,066 10%
10% £233,030 5%
Trojan Investment Funds Trojan Ethical GBP X ACC £233,030
Institutional Cash Series PLC Blackrock ICS STG LQDTY PREM GBP DIS £237,939 8%

The School has a wholly owned subsidiary, Somerhill Enterprises Limited, a company incorporated in England and Wales (company number 02580724). The company was dormant throughout the reporting period. The cost and net book value of the School’s investment as at 31 August 2023 was £100 (2022: £100).

33

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (con�nued) For the year ended 31 August 2023

13
Debtors
Trade debtors
Other debtors
Prepayments and accrued income
14
Current asset investments
Cash held in deposit accounts
15
Creditors: amounts falling due within one year
Trade creditors
Other taxation and social security costs
Accruals
Deferred income
Advance fees
Other creditors
Amounts payable to subsidiary company		 2023
£
2,411,372
313
201,543
2,613,229
2023
£
1,508,007
2023
£
359,896
177,163
174,403
2,877,974
154,702
279,324
100
4,023,562		 2022
£
2,440,713
284
235,189
2,676,186
2022
£
1,500,384
2022
£
353,380
94,055
255,385
2,771,421
325,782
234,436
100
4,034,559

Included within other creditors are amounts totalling £55,227 (2022: £44,435) in respect of outstanding pension contributions.

Deferred income

Included within creditors is an amount of £2,877,974 (2022: £2,771,421) in respect of fees invoiced prior to the year-end relating to future terms.


the year-end relating to future terms.
2023 2022
£ £
Balance at 1 September 2022 2,771,421 2,641,823
Released to fee income in year (2,771,421) (2,641,823)
- -
New deferred income 2,877,974 2,771,421
Balance at 31 August 2023 2,877,974 2,771,421

34

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (con�nued) For the year ended 31 August 2023

15 Creditors: amounts falling due within one year (continued)

Advanced fees

Included within creditors is an amount of £154,702 (2022: £325,782) in respect of fees received in advance, there is also a further amount of £151,598 (2022: £112,300) in respect of fees due after more than one year. Fees paid in advanced are analysed as follows:

Balance at 1 September 2022
New amounts paid
Amounts utilised in the payments of fees
Balance at 31 August 2023
Creditors: amounts falling due after more than one year
Fees in advance		 2023
£
438,082
194,326
632,408
(326,108)
306,300
2023
£
151,598		 2022
£
360,852
334,171
695,023
(256,941)
438,082
2022
£
112,300

16 Creditors: amounts falling due after more than one year

17 Restricted funds – current year

Restricted funds – current year
Balance at 1
September 2022
£
Long Library fund
-
Government grants
-
-		 Income
Expenditure
Balance at 31
August 2023
£
£
£
40,000
-
40,000
3,658
(3,658)
-
43,658
(3,658)
40,000
40,000

Restricted funds represent donations received for specific items or appeals.

The School received restricted government grant income of £3,658 in the year (2022: £5,970) – see note 4 for further details. All monies were fully spent during the year.

The School received a donation of £40,000 in the year (2022: £nil) specifically towards the Long Library refurbishment and all monies, including gift aid recoverable, were fully spent post year end on the works carried out. Further donations were received in the year 2023/24 to cover the final costs of the project.

35

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (con�nued) For the year ended 31 August 2023

17 Restricted funds (continued) – prior year

Balance at 1 Balance at 31
September 2021 Income Expenditure August 2022
£ £ £ £
Restricted funds - 5,970 (5,970) -
Designated funds – current year
Balance at 1 New Designations Balance at 31
September 2022 designations released August 2023
£ £ £ £
Designated property 11,867,027 - (123,200) 11,743,827
Capital developments fund - 5,000,000 - 5,000,000
11,867,027 5,000,000 (123,200) 16,743,827

18 Designated funds – current year

The designated property reserve fund has been set up to assist in identifying those funds that are not free funds and it represents the net book value of school freehold land and buildings.

The capital developments fund represents funds designated for future projects that support the strategic vision of the School.

Prior year

rior year
Balance at 1 New Designations Balance at 31
September 2021 designations released August 2022
£ £ £ £
Designated property 12,095,918 - (228,891) 11,867,027

36

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (con�nued) For the year ended 31 August 2023

19 Analysis of net assets between funds – current year

Unrestricted
funds
Designated
funds
£
£
Fund balances at 31 August 2023 are represented by:
Tangible fixed assets
4,294,383
11,743,827
Investments
31,293
5,000,000
Current assets/(liabilities)
591,011
-
Non-current liabilities
(151,598)
-
4,765,089
16,743,827
Prior year
Unrestricted
funds
Designated
funds
£
£
Fund balances at 31 August 2022 are represented by:
Tangible fixed assets
4,035,389
11,867,027
Investments
100
-
Current assets/(liabilities)
5,124,510
-
Non-current liabilities
(112,300)
-
9,047,699
11,867,027		 Restricted
Funds
Total
£
£
-
16,038,210
-
5,031,293
40,000
631,011
-
(151,598)
40,000
21,548,916
Restricted
Funds
Total
£
£
-
15,902,416
-
100
-
5,124,510
-
(112,300)
-
20,914,726

20 Related party transactions

There were no related party transactions in the year (2022: none). No Governors’ received remuneration, payments for services or reimbursed expenses during the year (2022: none).

21 Operating lease commitments

At 31 August 2023, the School was committed to make minimum lease payments in respect of noncancellable operating leases as follows:

Amounts payable:
Within one year
Between two and five years
More than five years		 2023
£
43,737
51,702
-
95,439		 2022
£
61,482
153,558
695
215,735

All leases relate to amounts payable in respect of equipment.

37

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (con�nued) For the year ended 31 August 2023

22 Cash generated from operations

Cash generated from operations
Surplus for the year
Adjustments for:
Depreciation charges
Interest receivable
Gain in market value of fixed asset investments
Movement in working capital:
Decrease/(increase)/in debtors
(Decrease)/increase in creditors
Cash generated from operations		 2023
£
634,190
515,741
(81,223)
(30,275)
62,957
(31,634)
1,069,756		 2022
£
648,004
476,898
(17,788)
-
(247,479)
389,719
1,249,354
23
Analysis of changes in net funds
At 1
Cash at bank and in hand
Current asset investments		 September
2022
Cash flows
At 31 August
2023
£
£
£
4,982,499
(4,449,161)
533,338
1,500,384
7,623
1,508,007
6,482,883
(4,441,538)
2,041,345		 September
2022
Cash flows
At 31 August
2023
£
£
£
4,982,499
(4,449,161)
533,338
1,500,384
7,623
1,508,007
6,482,883
(4,441,538)
2,041,345
2,041,345

38

DocuSign�Envelope�ID:�7750B90E-C78F-4A52-967D-714EA53A9783

SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (con�nued) For the year ended 31 August 2023

24 Pension and similar obligations

Defined contribution pension scheme

The School makes contributions to one defined contribution scheme on behalf of its employees. The assets of the defined contribution scheme in which employees participate are held separately from those of the School in independently administered funds. The pension costs charge represents contributions payable by the School to the funds and amounted to £538,638 (2022: £528,841). At the year-end £54,681 (2022: £44,027) was accrued in respect of employer contributions to other pension schemes.

Teachers’ Pension Scheme

Introduction

The School participates in the Teachers’ Pension Scheme (England and Wales) (“the TPS”) for its teaching staff. The Teachers’ Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Teachers are now offered a hybrid scheme and they have a choice to remain in this scheme or to opt out of it completely.

The TPS is an unfunded scheme and members to which both the member and employer makes contributions, as a percentage of salary – these contributions along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Under the definitions set out in FRS 102, the TPS is a multi-employer pension scheme. The School has accounted for its contributions to the scheme as if it were a defined contribution scheme.

The pension charge for the period includes employer contributions payable to the TPS of £295,011 (2022: £303,922) and at the year-end £546 (2022: 508) was accrued in respect of employer contributions to this scheme.

Valuation of the Teachers’ Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019. The key elements of the valuation and subsequent consultation are:

A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website.

25 Capital commitments

Capital commitments totalling £20,448 (2022: £nil) relate to the roofing works on 3 and 4 Bothy Cottages properties, which straddled the year-end.

39