Registered Charity No. 1002212 (England and Wales) Company Registration No. 02331296 Somerhill Charitable Trust Limited (a company limited by guarantee) Report and Financial Statements for the year ended 31 August 2024 SOMERHILL SOME SCHOOL A LEADING INDEPENDENTPREP SCHOOL FOR GIRLS AND BOYS
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) CONTENTS Page Chair of Governors, summary Governors, report and strategic report 3-15 Statement of Govemors, responsibilities 16 Independenl auditorfs report 17-19 Statement of financial activibes 20-21 Balance 5h8et 22 Statement of cash flows 23 Notes to the ffinancial statements 24-40
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) CHAIR OF GOVERNORS, SUMMARY For the year ended 31 August 2024 This note has been updated as of the recorded dale for post-year events. The board currently has a full complement of skills, but there have been two resignations for which we have excellent candidates. We were saddened by the resignation of our head teacher for personal reasons and we are currently in the midst of a recruilmenl drive with a strong slate of candidates. We are blessed to have an extremely strong and time-served leadership team that works extremely well together and that has made it such that we have not needed to find an interim head. Much of our strategic focus has been and remains around risk planning for the imposition of VAT and business rates and the reducing demographic pool of pupils for which we musl compete. We are fortunate to be in a strong financial position that will enable us to weather any significant shakeout in our sector as we continue to see mergers and consolidations both between prep-schools and in some cases senior schools. We also plan to ensure that we are the school of Choi in this area maintaining an excellent offering al a reasonable cost. We had excellent reports for both our PSB and ISI inspections and these are available on our website. We are continuing to invest towards nel Zero with contracts to both reduce our energy usage and generate more solar energy. Saplings. our outside teaching environment, is well established. popular and profitable. We continue to focus on excellence in provision of facilities for education and overall wellbeing. We plan to upgrade our hard play area (Hockeylfootball} in the upcoming year, discussions are undeNay that may result in our becoming a centre of excellence. The year has been pleasingly successful in both academic, sporting and other extra<urricular offerings reported elsewhere. We are happy to report that we were extremely successful both in placemenl of 11+ candidates lour success rate is one of the highest around) and in gaining scholarships and places at public schools, with over 24 awards, one ofour best outcomes and, perhaps per pupil headcount, Ihe best we have ever delivered. In summary, while we are often asked what our specializalion is, and we say that'we grow amazing people" the reality is that we are very successful in delivering the best for each pupil who joins us in achieving the outcomes they and their parents wish. Mark A. Jiskool Chalr of the Board of Governo Date..
SOMERHILL CHARITABLE TRUST LIMITED {A company limited by guarantee} GOVERNORS, REPORT AND STRATEGIC REPORT For the year ended 31 August 2024 The Directors of Somerhill Charitable Trust Limited {the "School" Somerhill"), who are also the Trustees of the charity and the Governors of the School land 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 2024 and confirm they comply with the requirements of the Charities Act 2011, the governing document, the Charities SORP {FRS 102) (effective 1 January 20191 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 Mémorandum and Articles of Association adopted by special resolution on 9 Augusl 2024. Directors. Trustees and Govemors The Board should have a minimum ofthree members, with no maximum unless determined at a General Meeting through an Ordinary Resolution. Each Governor has onè vote. The Directors from 1 September 2023 to the date ofsigning were.. C A Barry. (appointed 30 November 2023) P G Bromley. P R Brooks +. (resigned 22 January 2025) P M Goodyer + E Henery + C Holder" J V Irvine. MAJiskoot'+" PJNorth+ R E Verrell. DA Wells. ++ (Chair of Governors from 1 September 2022} Mernbers ofthe Finance and General Purposes Committee chaired by J V INine. Members ofthe Educalion Committee chaired by P R Brooks until 22 January 2025 and then by P M Goodyer. Members of the HR Cornmittee chaired by C A Barry. ++ Members ofthe Health & Safety Committee chaired by J M Hunt (Bursar).
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) GOVERNORS, REPORT AND STRATEGIC REPORT (continued) For the year ended 31 August 2024 Strategic Report Objectives and Activities The Governors, aim is to provide an all-round excellent education lo 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 al promoting the spiritual, moral, cultural. mental and physical development of pupils and b) preparing pupils al the school for the opportunities. responsibilities and experiences of later life. The key objectives inclLJde'. Tocontinue to enhance the academic curriculum offered across the School To continue to monitor and enhance the co-curricular programmes across Iheschool To continue to develop the first-class pastoral care the School provides for pupils To maintain pupil numbers in the School To provide continuing support to the pupils already in reIpl of fee assistance To provide access to Ihe School from age 7 through means tested financial assistance To monitor and review the key policies and procedures lo ensure a safe environment for employees, pupils and visitors lo the School To continue to develop the links with local state schools and to open the facilities lo the local community To manage and maintain the historic buildings and estate in a cost effective, sustainable and environmentally responsible manner Risk management The Governors consider that Ihe principal risks and uncertainties facing the School are as follows: Child protection and safer recruitment Safeguarding and welfare of employees, pupils and visitors Maintenance of reputation Reduction in pupil numbers Retention of key personnel Imposition by Parliament of tax changes or changes to charitable status Security of school buildings Impact of a resurgent Covid pandemic or similar The Govemors formally review the major risks that the company faces each financial year when preparing the slralegic development plan and budget. The School has developed systems and procedures lo manage and monitor these risks. The key wntrols used by the Governors include: Budgeting and budgel accountability Monitoring of pupil intake and retention Formal written policies including policies on the safeguarding of children and health & safely Authorisalion procedures External audit of and internal identification of health & safetyrisks Appropriate training of governors, leaching and non-teaching staff Appropriate insurance to mitigate perceived risks
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) GOVERNORS, REPORT AND STRATEGIC REPORT Icontinuedl For the year ended 31 August 2024 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, as set out on page 12. The remuneration of key management personnel is agreed by the Board Ihrough the School's annual budgel, 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 perfomiance 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 wilh reference to published salary levels of other independent schools lo ensure that the School remain5 sensitive to the broader issues of pay and employment conditions elsewhere. Deliv8ry 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 Govemors have given due regard to the Charity Cornmission'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 Govemors each year. The School continues lo 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 lo the schools. Monson Swimming Club also use the pool on a near daily basis, both to teach swimming and for coaching competilive 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 £560,703 in 2023-24 {£495,090 in 2022-23).
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) GOVERNORS, REPORT AND STRATEGIC REPORT (continued) For the year ended 31 August 2024 Achlevements and Performance Overview: Somerhill is a vibrant, successful school with a good reputation within its marketplace. During the final temi of the year ended 31 Augusl 2024. Somerhill had 600 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 ofthe company, none of whom receive anyremuneration. Academic Achlevemènt: As mentioned in the last ISI report, the teaching across the school is cited as being 'of a consistently high standard,; teachers 'know their pupils, abilities and needs well,, 'challenge pupils to think, and 'have ambitious aims for pupils, aohievemenls, whilst also planning 'to ensure all are appropriately supported and challenged., As a result, Somerhill pupils are described as 'highly numerate and literate,. Pupils move on successfully to secondary education in both the grammar and independent sectors, notably with 10 pupils heading toTonbridge orsevenoaks School and 35 gaining entry to local grammar schools. Also impressive was the fact that 24 leavers gained scholarships in academics, art, drama,mu5ic and sport. Pupil Experlence: 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 conlesls. been wonderfLJlly entertained by lop class mLJsical 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 lo 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 lo learning while promoting a unified and èqual approach lo their broader educational experience. The diamond rnodel allows for a 'best of both worlds, approach- boys and girls are taught in the classroom together until Year 3,. al 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 (PSBI in Ihe 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 sils not only in the academic lessons of the School, bul 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 IPSPQI aims to develop pupils, independent learning and performance, inspiring them to consider new areas or methods of study and preparing them for their learning al senior schools and later al university and al work. It has been very well received by destination senior schools. The PSPQ is now an annual feature of the Year 8 curriculum culminating in some outstanding oral presentations. The PSB is now firmly established in both Year 8 and Year 7 with PSB style project work extending to art, engineering and drama as well as expanding to the rest of the Pp School where we have designed age appropriate PSB skills grids and pupils reflect on academic performance regularly with their Form teachers. Curriculum Enhancements.. Somerhill was only the second prop school in the UK to introduce Engineering as part of its curriculum. Pupils have used woodworking skills to make canvas frames and full-sized calapulls, 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. Our annual STEM Day is an opportunity for pupils lo work in teams on projects which bring together skills developed in science, engineering and maths lessons as well as developing a whole host of PSB skills. We also continue to leverage the Ljse 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 experien the outdoor learning whereby more traditional learnt knowledge can be re*nforced using the natural world. Our dedicated "outdoor" classroom, Saplings, goes from strength to strength and allows our pre- school children lo enjoy a mixed model where existing and new parents can select internal and external classroom time for our youngest pupils.
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) GOVERNORS, REPORT AND STRATEGIC REPORT (continued) For the year ended 31 August 2024 Co-curricular Clubs and School Trips at Somerhill The importance of providing a broad range of co-curricular activities in schools cannot be overstated. These activities are essential in preparing children for the challenges and opportunities they will face beyond the classroom. The benefits extend to several key areas, including social-emotional development (building empathy, self-confidence, and resiliencel, academic performance (improving grades and learning skills through teamwork and time management), and career prospects {helping students identify passions and interests to guide their future choices). Furthermore, co-curricular activities promote healthy lifestyles through physical activily, offer opportunit18s for fun and relaxation to counter academic pressures and foster creativity by encouraging exploration beyond the curriculum. Somerhill School actively supports student involvement in co-curricular activities through a three-pronged approach. First, a wide variety of clubs are offered each term, catering to diverse interests, both academic and non-academic. These clubs. run by school staff and external providers. ensure a dynamic and engaging experience for students. Second, the school provides six weeks of in-house holiday courses annually, allowing families flexibility while offering children enriching exp8riences in a farniliar environment. These courses prioritise fun but also aim to enhance specific skills. Finally, Somerhill emphasises educational trips as a crucial component of the co-curricular program. These trips vary in length and location, from local excursions to enhance classroom learning to longer trips to London and coastal areas. For older students, a progression of residential trips builds confidence and independence, culminating in opportunities for more adventurous trips, such a5 Vislts lo the UKSA centre on the Isle of Wight or the annual ski trip in the Alps. This comprehensive approach ensures Somerhill students have abundant opportunities to develop holistically and confidently prepare for future success.
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) GOVERNORS, REPORT AND STRATEGIC REPORT (continued) For the year ended 31 August 2024 Pre Prep at Somerhill Somerhill Pre-Prep provides a nLJrturing and high-qualily start to education for children aged 2 to 7. The Pre-Prep places significant emphasis on both academic excellence and pastoral care, ensLJring that each child's wellbeing is central to every decision made. Recognising the vital role early education plays in shaping future success, Somerhill is proud of its highly skilled team of early years practitioners who collaborate closely with parents. This partnership ensures that each child's learning journey is personalised and supported to meet their individual needs, providing a strong foundation for future development. From Reception lo Year 2, Form Teachers and Teaching Assistants ensure a consislenl and cohesive educational experience. The curriculum is age-appropriate, fun, and exciting, designed to ignite a passion for learning that is crucial at the beginning of each child's educational journey. Enriched by specialist subjects such as music. physical education, swimming, French, and Saplings-the forest school programme-this diverse curriculum not only promotes academic growth bul also encourages personal development. Taught by experts, these subjects offer children a variety of opportunities to explore and engage, fostering a love for learning whil& supporting both intellectual and emotional growth. The Pre-Prep's commitment to high educational standards is reflected in its carefully designed, comprehensive curriculum. The curriculum integrates core subjects with a dynamic, lopic-based approach, encouraging deeper learning and helping children apply knowledge in real-wortd contexts. The structured phonics programme, Read Write Inc. ensures that children develop strong reading skills al an accelerated pace. with many surpassing age- related expectations. Additionally. the mathematics curriculum consistently delivers outstanding results, while the hands-on, inquiry-based approach to science sparks curiosity and fosters a deeper understanding of the world. This thoughtfully slruclured and engaging curriculum nurtures each child's curiosity and ignites a passion for discovery, helping them a strong emphasis on co-curricular development, offering a broad range of opportunities in sport, music, art, outdoor education. and drama. Specialist teachers lead these activities, giving children their first experiences of sporting fixtures, musical lea-time concerts, and drama performances. This exposure helps students explore their interests and lalenls. while building confidence and self-esteem, which positively impacts their overall devolopment. Personal growth is 8 key focus in the Pre-Prep, with the "Pre-Prep Pals" a group of charming animal characters that personify Somerhill's core values of Kindness, Resilience, Responsibility, Respect, Community, and Excellence. These values are deeply embedded in the Pre-Prep's daily routines, conversations, and reward system, helping to shape the overall school culture. The influence of these values extends beyond the school environment, with parents frequently sharing examples of how their children have referenced the "Pre-Prep Pals" al home. In many cases, parents have also invoked the animals, attributes to support their children through activities outside of school, further reinforcing the school's commitment to developing strong character both in and oul of the classroom. To support our working families, Somerhill Pre-Prep offers wraparound care, including a Breakfast Club from 7..30 a.m. and after-school care from 3..30 p.m. until 5..45 p.m. Experienced leaching assistants, who are already familiar with the children and their individual needs, provide a nurturing environment that ensures consistency and continued support after a busy school day. This thoughfful care allows childran to unwind and feel secure, fostering a positive end lo their day. Transitions are a vital part of a child's educational journey, whether helping new children sellle into school, guiding them from Pre-school to Reception, or supporting the move from Pre-Prep to Prep School in Year 3. In Pre-Prep, careful planning is essential, as the youngest leamers are still building the confidenoe and independence needed to navigate change. By prioritising these transitions. we ensure that every child feels secure, confident, and happy as they take the next slep. The strong foundations established in Pre-Prep provide the perfect springboard for the challenges and opportunities ahead in the Prep, enabling children to embrace new experiences with enthusiasm and setting them up for ongoing success at Somerhill.
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) GOVERNORS, REPORT AND STRATEGIC REPORT {continued) For the year ended 31 August 2024 Music at Somerhill At Somerhill, we recognize that learning about music and having the opportunity to play instruments and create music together is a vital part of a child's education. Music is not only 8 creative oullet but also plays a significant role in a child's broader development. Here, music is integral to our curriculum, and all children from Reception lo Year Eight have lessons taught by two dedicated and experienced music teachers. In addition to classroom lessons, we are fortunate to have a dynamic team of Visiting Music Teachers IVMTSI, who provide many one-on- one lessons each week across all three sections of the school. Beyond the structured lessons, Somerhill offers numerous opportunities for students to perform and share th6ir talents with others. We have upwards offifty performances of different kinds, throughout the year, and across the whole school. Our current music groups include an orchestra, year 3 and 4 choirs, a boys choir, a girls choir, a chamber choir, a brass ensemble, flute groups, string groups, a clariphones troop, cello groups, and guitar groups. The Michaelmas temi always ends with a whole range of pre-prep perf0mlanS celebrating Christmas, and carol seNices for both Juniors and Seniors. In the Michaelmas and Lent tem)s, instrumentalists and vocalists have the chance to perform in informal after-school Teatime concerts. These provide a relaxed setting for students to perform in front of peers, family, and friends. Similarly, in the summer term, we host a series of instrumental and vocal lunchtime concerts, offering another opportunity for students la see one another perform. and support each other. At the end of the Lent lemi, we have one of our showcase events.. the Spring Concert for Ihe whole prep school. In the Summer, similarly, we have larger-scale concerts, one for the Juniors and one for Seniors. These performances give students the chance to present their hard work and musical achievements to family and friends. Somerhill is also proud to continue its tradition of providing choristers for Tonbridge School, where our boys commit lo thre8 rehearsals a week and one or Iwo performances on Sundays during lerm time. The boys involved gain an invaluable performance and rehearsal experience. In addition to Ihis. Somerhill is a thriving ABRSM centre (Associated Board of the Royal Schools of Music), supporting students in entering a variety of musiG exams across instruments and Vol at all levels. This offers our students a structured path for assessing their musical progress, and we are proud of the exceptional results that we have had recently. Whether it's a quiel lunchtime practice session or 8 grand concert performance, music at Somerhill is an essential and vibrant part of the school experience.
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) GOVERNORS, REPORT AND STRATEGIC REPORT (continued) For the year ended 31 August 2024 Sport at Somerhlll 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 Ihere are a large number of teams across many sporting disciplines, allowing all pupils to lake part al a standard that is best suited lo their abilities. Pupils are introduced lo 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. Somerhill regularly competes in local, county and national tournaments and has a full fixture list with local Prep Schools. Somerhill is viewed as one of the strongest sporting schools in Kent across many disciplines. The Libraries at Somerhlll Somerhill has libraries managed by a full-time librarian. The pre-prep library caters for pupils from reception to year two and houses approximately 2000 resources including picture books, chapter books and non-fiction books. Classes visit the pre-prep library weekly with their teachers and borrow books lo take home. The Woodgate library is located in the prep school and serves pupils from years three to eight. The library houses 10,000 resources in four sections Junior Fiction, Middle grade fiction, Young Adult riction (for years T and 8 only) and Non-fiction. Fiction is arranged by genre and non-fiction follows the Dewey Decimal system. The library includes a large selection of dyslexia-friendly books published by Barrington Stoke. All pupils attend regular library classes with thèir English teachers. Year three enjoy weekly classes and all other year groups visit fortnightly. The library is also open to all pupils before school belween 8.00 and 8.30 and at break tim6s. Pupils may visit the library during their breaks to read, play chess. borrow books and (for students in years 7 and 81 lo complete prep. The library has a variety of comfortable seating areas, a quiet well-being zone, a prep zone with tables and chairs and a large communal space furnished with sofas where classes and book groups can meet. The library is equipped with IT for teaching and learning purposes including a large TV and a chrome book which pupils can use to search the library catalogue Accessit {Library Management System) and reserve books. Pupils may access the library catalogue remotely and can use this facility to access booklists, see whal is new in the library and reseNe books. Library resources in the Pre-prep library and the Woodgate library are regularly audited, reviewed and refreshed so that the libraries remain relevant, enticing and infomialive and reflect the abilities, identities and interests of our whole comrnunity. 10
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) GOVERNORS, REPORT AND STRATEGIC REPORT (continued) For the year ended 31 August 2024 Environmental Awareness Somerhill takes its responsibilities towards the environment very seriously and the governors are extremely conscious of the need to work towards becoming net carbon zero, in line with government targets. The school comrnissioned industry specialists, Re-energise, to produce a Site Decarbonisation Plan and this now forms part of the site Masterplan when considering future priorities. A number of phase 1 priorities have been identified, such as the installation of two solar panel arrays, and these will be progressed in the next academicyear. 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 Jacob8an Mansion. The year-long total redecoration of the school was cornpleted in August 2024 and this included an improved layout for the dining room and opening ofthe new Woodgate library. Financial Review The financial results of the School for the year ended 31 August 2024 are shown in the Statement of Financial Activities. The School has maintained a strong NOR (numbers on roll) ending the year with 600 pupils. Overall budget has been exceeded by £122k with a net surplus of £335k for the year. Operating surplus was £942k, which is a £118k {14 % } improvement on budgeted operating surplus of £824k. Reserves policy The Governors, policy on res8Nes is to hold sufficient liquid assets to cover short term requirements which range between £1.5 million and £2 million. At 31 August 2024, the School had total rèserves of £21,884,179 (2023.. £21,508,916), made up of a general fund of £5,328,189 {2023.' £4,765,089) and various designated funds, representing the net book value of the school mansion and grounds, of £11.555,990 {2023: £11,743,827). the capital developments fund of £5,000,00012023'. £nil) and the contingency fund of £1,500.00012023'. £nill. The school's net current assets were £36.617 {2023'. £631,011). Given the uncertain and changing economic and regulatory environment, the School will review and update its reserves and inveslment policy in the next academic year to ensure that it is robust enough to handle the potentially challenging times ahead. Reserves are high at the moment to allow for capilal expenditure as part of both the Site Master Plan and Site Decarbonisation Plan but also give a buffer to any unexpected regulatory and fiscal changes that may be introduced by the current government. Other Assets In addition to the school mansion and grounds Icirca 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 th8 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 placeslfinaricial 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 al 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.
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) GOVERNORS, REPORT AND STRATEGIC REPORT {continued) For the year ended 31 August 2024 Other fundraising The School does not carry out any fundraising activity in order lo raise funds from the g6neral public. Tha 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-t&sted schemes.. Bursaries - bursary applications are assessed by a third party, Bursary Administration Ltd {BAL), who undertake an assessment and subsequently make a recommendation to the School. The Principal and Bursar then have the final say on the award of a bursary. The award is based on affordability and BAL use a means testing formula to inform their recommendation. Employee Fee Concession- as part of an emphasis on attracting and retaining high calibre staff, the School offers a discount scheme to staff members who choose to edLJcale their children at Somerhill. Family discounts - to underline the value the Governors place on continuity for families, the School offers sibling discounts of 5 % for the second child and 10 % for any furthersiblings. 12
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) GOVERNORS, REPORT AND STRATEGIC REPORT {continued) For the year ended 31 August 2024 Professional advisers and senlor leadershlp team Headmaster of Somerhlll Mr D B Sinclair Head of Somerhill Pre-Prèp Mrs A L McKnight Bursarlcompany Secretary MrJ M Hunt Address and registered office Somerhill Tonbridge Kent TN11 ONJ Solicitors Veale Wasbrough Vizards Orchard Court Orchard Lane Bristol BS15WS Auditors Azets Audit Services First Floor, River House 1 Maidstone Road Sidcup Kent DA14 5RH Insurance brokers Marsh Education Practice 4 Milton Road Haywards Heath Wesl Sussex RH16 1AH Bankers Barclays Bank plc 105 High Street Tonbridge Kent TN91DJ National Westminster Bank PIC 130 High Street Tonbridge Kent TN01DE 13
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) GOVERNORS, REPORT AND STRATEGIC REPORT (continued) For the year ended 31 August 2024 Struclure, governance and management Governing documents The Company is governed by its Memorandum and Articles of Association of 9 August 2024. These were adopted by special resolution passed on 9 August 2024 and incorporated on 28 August 2024. Recruitment and trainlng of governors Governors are appointed in accordance wilh the Memorandum and Articles ofAssocialion filed at Companies House land the Charity Comrnission} adopted in 2024. The composition of the Board of Governors is designed to offer a wide range of expertise to meet the needs of Somerhill. Possib18 candidates for election as new Governors are proposed by an existing Governor and recommended by him or her through the Chair lo the Board of Governors. Financial provision is made for external training courses for Governors. An induction lour 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 lo 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 bul permits the Governors powers to conduct a wide range of activities in support of ils aims. Education is also about the personal development of the pupils as recognised by the Charity Commission in their definition of education. Organisation and admlnistrative structure The Governors determine the general strategy of the School. The Board of Governors meets as and when necessary, bul 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-lo-day managemenl ofthe S¢hool 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 al their meeting in the Summer. Education Committee: This is an advisory Committee designed to give guidance and assistance lo the Headmaster, Head of Pre-Prep and Deputy Head Teachers. The Education Committee discusses matters specific to the aducation of children at Somerhill. The Commilt&e meets as and when neGessary, but certainly not less than once a term, and reports to the Main Board. 14
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) GOVERNORS, REPORT AND STRATEGIC REPORT {continuedl For the year ended 31 August 2024 Organisation and administrative structure l¢ontinued) 'Iiiuii_ Flnan¢ial & General Purposes Commlttee: This Committee is responsibl8 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 rnade to ensure that Somerhill Charitable Trust Limited complies with its legal responsibilities and follows best practice. The Committee meets as and when necessary, but rtainlY not less than once a term, and reports to the Main Board. Human Resources & Remuneration Committee= The main responsibility of the Committee is lo monitor and review all aspects of HR and set the remuneration of the Senior Leadership Team. This Committee also m&ets 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 Govemors to invest the monies of the School not immediately required for its purposes in such inveslments, securities or property as may be thought fil and within the law. Th8 Governors will take professional advice as required. 15
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) STATEMENT OF GOVERNORS, RESPONSIBILITIES For the year ended 31 August 2024 The Governors are responsible for preparing the Governors, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Slandards {Uniled Kingdom Generally Accepted Accounting Practice). Company law requires the Governors to prepare a financial statement for each financial year which gives a true and fair view of the stale 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= select suitable accounting policies and then apply them consistently., obseNe the methods and principles in the Charilies SORP IFRS102)', makajudgments and estimates that are reasonable andprudont- slate whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements., prepare the financial statements on the going concem basis unless it is inappropriate lo presume that the charitable company will continue in business. The Governors are responsible for keeping proper accounting records thal disclose with reasonable accuracy at any lime the financial position of the charitable company and enable them lo ensure thal 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 includad on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statemenls may differ from legislation in other jurisdictions. Statement as to dlsclosure of information to auditor The Governors who were in office on the date of approval of these financial statements have confirmed, as far a5 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 stops that they ought to have taken as Govarnors to make themselves aware of any relevant audit information and to establish that it has been communicated lo the auditors. The Gove approved signed o rs. Report was approved by the board of Trustees and the Strategic Report (included therein) was the f Governors in their capacity as the directors of the company on 19th March 2025 and half by- Mark Cha the Board of Governors 16
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) INDEPENDENT AUDITOR'S REPORT To the Governors of Somerhill Charitable Trust Limited Opinlon We have audited the financial statements of Somerhill Charitable Trust Limited (the 'School') for the year ended 31 August 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and he 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 Reporiing Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial slatemenls.. give a true and fair view of the stale of the School's affairs as al 31 August 2024 and of its incoming resources and application of resources, for the year thenended., have been properly prepared in accordance with United Kingdom Generally ACpted Accounting Practice.. and have been prepared in accordance with the requirements of the Companies Act2006. Basis for opinion We conducted our audit in accordance with Snternational Stsndards on Auditing {UK} {ISAs (UKI} and applicable law. Our responsibilities under Ihose 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 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 ouropinion. Conclusions relating to going concorn 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 lo 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 Govemors with respect to going concern are described in the relevant sections of this report. other infomiation 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 infomiation and, except to the extent othemise explicitly staled in our report, we do not express any form of assuran conclusion thereon. Our responsibility is lo read Ihe 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 otheNise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required lo delermirie whether this gives rise to a material rnisstatemenl in the financial statements themselves. If, based on the work we have performed, we conclude that ther6 is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 17
SOMERHILL CHARITABLE TRUST LIMITED {A company limited by guarantee) INDEPENDENT AUDITOR'S REPORT To the Governors of Somerhill Charitable Trust Limited (continued) Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of our audit.. the information given in the Governors, report for the financial year for which the financial statements are prepared. which includes the directors, report prepared for the purposes of company law, is consistent with the financial statements., and the directors, report included within the Governors, report has been prepared in accordance with applicabl& legal requirements. Matters on which we are required to report by exceptlon 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 ils 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 lo you if. in ouropinion.. adequate accounting records have not been kept, or relums adequate for our audit have not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and returns., or certain disclosures of Governors, remuneration specified by law are not made. or we have not reiVed all the information and explanations we require for our audit'or the Governors were not entitled to prepare the financial statements in accordance with the small companies regime and lake advantage of the small companies, exemptions in preparing the Governors, report and from the requirement to prepare a strategic report. Responsibllltles 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 slatemenls 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 lo going concern and using the going concern basis of accounting unless the Govemors either intend to liquidate the School or to cease operations, or have no realistic alternative but lo do so. Auditor's responsibilities for the audit of the financial slatements A further description of our responsibilities is available on the Financial Reporting Council's website at.. https-.Ilwww.frc.org.uklaudilorsresponsibilities. This description forms part of our auditor's report. Extent to which the audit was considered capablo of detecting irregularitles, 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, lo datecl material misstatements in respect of irregularities, including fraud. Vve 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 lo those risks, and obtain audit evidence that is sufficient and appropriate lo provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary lo applicable laws and regulations, including fraud. 18
SOMERHILL CHARITABLE TRUST LIMITED {A company limited by guarantee) INDEPENDENT AUDITOR'S REPORT To the Governors of Somerhill Charitable Trust Limited {continued) In response lo the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included.. Enquiry of management and those charged with governance around actual and potential liligation and claims as well as actual, suspected and alleged fraud- Reviewing minutes of meetings of those charged with govemance., Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial slalements or the operations of the entity through enquiry andinspeclion., Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations., Performing aLJdit work over the risk of management bias and override of controls, including testing ofiournal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. Because of the inherent limitations of an audit, there is a risk thal we will nol delect all irregularities, including those leading lo a material misslatement in the financial statements or non-compliance with regulation. This risk increases the more Ihal 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 lo 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 orassume responsibility to anyone olherthan the School and the School's members as a body, for our audit work, for this report, or for the opinions we haveformed. M Wilkes FCA for and on behalf of Azets Auditservices Date.. 7 May 2025 Chartered Accountsnts Statutory Auditor First Floor, River House 1 Maidstone Road Sidcup Kent DA14 5R 19
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) STATEMENT OF FINANCIAL ACTIVITIES Including Income and Expenditure Account For the year ended 31 August 2024 Unrestricted Restricted funds funds 2024 2024 Total 2024 Total 2023 Notes Income and endowments from: Donations and legacies Charitable activities.. School fees receivable Ancillary trading income Government grants Other trading activities.. Letlings income Investments Other income 597 10.055 10,652 40,390 9.184,946 222,519 9,184,946 222.519 3,607 8,934,333 366.466 3,658 3,607 109,337 185,498 30,714 109,337 185,498 30,714 78,670 81,223 1.644 Total income 9,733,611 13,662 9,747,273 9,506,384 Ex enditure on: Raising funds.. Financing costs Fundraising and development Charitable activities.. Education 12,206 14,507 12,206 14,507 14,128 8,112 9,576,976 53.662 9,630,638 8,880,229 Total expendlture 9,603,689 53,662 9,657,351 8,902.469 Net Incomellexpenditure) before other gains and lossos 129.922 (40,000) 89,922 603,915 Galns on fixed asset Investments 12 245.341 245,341 30,275 Net Income and net movement In funds 375,263 {40,000) 335.263 634,190 Fund balances at 1 Sèpt8mber 2023 21,508,916 40,000 21,548,916 20,914,726 Fund balances at 31 August 2024 19 21,884,179 21,884,179 21,548,916 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. 20
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) STATEMENT OF FINANCIAL ACTIVITIES Including Income and Expenditure Account (continued) For the year ended 31 August 2024 Year ended 31 August 2023 {oomparativel Unrestricted Restricted funds funds 2023 2023 Total 2023 Total 2022 Notes Incorne and endowments from: Donations and18gacies Charitable activities.. School fees receivable Ancillary trading income Government grants Other trading activities.. Leltings income Investments Other income 390 40,000 40,390 5,010 8,934,333 366,466 8,934,333 366,466 3,658 8,174,768 388,419 5,970 3,658 78,670 81,223 1,644 78,670 81,223 1,644 105.214 17,788 99,773 Total income 9,462,726 43,658 9,506,384 8,796.942 enditure on: Raising funds.. Financing costs Fundraising and development Charitable activities.. Education 14,128 8,112 14,128 8,112 10,333 14,794 8,876,571 3,658 8,880,229 8,123,811 Total expenditure 8,898,811 3,658 8.902,469 8,148,938 Net income before other gains and losses 563,915 40,000 603,915 648.004 Gainsl{losses} on fixed asset investments 12 30,275 30,275 Net income and net movement in funds 40,000 634,190 648,004 594,190 Fund balances at 1 September 2022 20,914,726 20,914,726 20,266,722 Fund balances at 31 August 2023 19 21,508,916 40,000 21,548,916 20,914,726 21
SOMERHILL CHARITABLE TRUST LIMITED {A company limited by guarantee) BALANCE SHEET As at 31 August 2024 2024 2023 Notes Fixed assets Tangible assets Investments 11 12 15,814,775 7,711,669 16,038,210 5,031,293 23,526,444 21,069,503 Current assets Debtors Investments Cash at bank and in hand 13 14 2,351,089 1,028,488 1,511,333 2,613,229 1,508.007 533,337 4.890,910 4,654,573 Creditors: amounts falling due within one year 15 (4,854.293) 14,023,562) Nel current assets 36,617 631,011 Total assets less current liabilities 23,563,061 21,700,514 Creditors: amounts falling due after more than one year 16 11,678,882) {151,5981 Nel assets 21,884,179 21,548,916 Income funds Restricted funds Unrestricted funds Designated funds General funds 17 18 40,000 16,555.990 5,328,189 16,743,827 4,765,089 21,884,179 21,508,916 19 21,884,179 21,548,916 The financial statements were approved by the Board of Governors on 11 t%pRI L 20Lf and signed on behalf of the Board by Julia V. INine Chair of the Finance and General Purposes Committee Company Registration No. 02331296 22
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) CASH FLOW STATEMENT For the year ended 31 August 2024 2024 2023 Notes Cash flows from operatlng activities Net cash Provided in operating activities 22 284,780 1,069,756 Investing activities Purchase of tangible fixed assets Sale proceeds of fixed assets Purchase of fixed asset investments Sale proceeds of fixed asset investments Investm8nt income received (377,366) 28,774 {2,948,012} 512.977 184,743 {651,535) 17,590.4951 2,649,513 81,223 Net cash used in investing activities (2,651,837) {5,511,294) Net cash inflow before financing {2,367,0571 {4,441,538) Financing activities New fees in advance money Fees in advance amounts utilised 2,985.743 {120,210) 194,326 {326,108) Net cash used in finanoing activities 2,865,533 {131,782) Net increasel(decrease) in cash and cash equivalents 498,476 (4,441,538) Cash and cash equivalents al beginning of year 2,041,345 6,482,883 Cash and cash equivalents at end of year 23 2,539.821 2,041,345 23
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2024 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. 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 1021 'Accounting and Reportir7g 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 Ihe Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cosl convention. The financial statements are prepared in sterling which is tho functional currency of the School. Going concom 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. Consolidation The School is exempt frorn 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 il is the parent. Charitable ftinds Unrestricted funds are available for use at the discretion of the Govemors 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 sel out in the notes to the financial slatements. 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. 24
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2024 Accounting policies (Continued) Income Income is recognised when the School is legally entitled lo il after any performance conditions have been met, the amounts can be measured reliably. and it is probable that income will be rèceived. 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 al the balance sheet dale are shown as Irade 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, Ihe amount can be reasonably quantified. and receipt is considered probable. Governrnent grants are recognised at the fair value of the asset received or reGeivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. A grant Ihat specifies performance conditions is recognised in incorne 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. Expenditure Expenditure is allocated to functional headings either on a direct cost basis or apportioned accordingly. The irrecoverable element of VAT is included with Ihe item of expensa 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 SchoDI 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 charily. Where support cosls cannot be directly attributed to particular headings they have been allocated to cost of rising funds and expenditure on charitable activitios on a basis consistent with use of the resource. Govemance Gosls include those incurred in the governance of the School and are primarily associated th 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. 25
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2024 Accounting policies (Conlinued) Tangible fixed assets Tangible fixed assets are initially measured al cost and subsequently rneasured at cost or valuation. net of depreciation and any impaimient 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 Freehold buildings Equipment. fixtures and fittings Motor vehicles Website Not depreciated Between O and 50 years Between 3 and 10 years 5 years 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 C8Pltalised. 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 tho assets having a very long useful economic life. in any instance considered lo far exceed 50 years, given the age of the buildings lo date. The current estimated residual value would exceed any depreciation charged. An impairment review is undertaken annually. Fixed asset investments Fixed asset investments are initially measured at transaGtion price excluding transaction costs, and are subsequently measured al fair value al each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred. Impalrment of fixed assets At each reporting end date, the School reviews the carrying amounts of ils 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 lo 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 al 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. Deposil accounts will more than 90 day maturity are classified as current asset investments. 26
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2024 Accounting policies (Continued) 1.11 Financlal 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 ils financial instruments. Financial instrurnents 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 sel off the recognised amounts and there is an intention to setde on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assels, 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 fulure 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. Temination 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 lo be included wilhin the Teachers, Pension Scheme {TPSI 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. Th8 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 TeaGhers' 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. The School will Gontribute double the amount of employee's contribution percentage to a maximum of 10 /0 for non-teaching staff. For teachers in this scheme, the School contributes 160/4 plus the employer Nl saving under the salary sacrifice regulations. Employer's pension costs are charged in the period in which the salaries lo which they relate are payable. 27
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2024 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 lo the lessees. All other leases are classified as operating leases. Assets held under finan leases are recognised as assets at the lower of the asset5 fair value at the date of inptiOn 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 corisisting of capital and interest elements. The interest is charged to nel incomel(expendilurel for the year so as to produce a constant periodic rale of interest on the remaining balance of the liability. Rentals payable under operating leases, including any lease inntiveS 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 ofthe Corporation TaxAct 2010 or Section 256 of Taxation of Chargeable GainsAcl 1992 are exempt from corporation tax lo the extent that they are applied lo ils charitable objectives. 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 bélieved 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 lo 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 ofthe propety, planl and equipment, and for the useful economic lives foreach class of assets. 1.17 Defined benefit pension schem8 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 assurnptions, which are disclosed in note 24. will impact the carrying amount of the pension liability. Furthermore, a roll fonmard 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 lo ensure it is re¢overable in full. An external debt collection agency is used. If a provision is daemed necessary, this is included on an annual basis. 28
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2024 School fees receivable 2024 2023 The school's fee income comprlsed: Gross fees Less.. Assisted places and fee discounts 9,984,536 {799,590) 9,550,980 (616,647) 9,184,946 8,934,333 The above awards were all made lo individuals. These include discretionary awards, assisted places, staff remission and sibling discounts made to 21812023: 253} individuals. Ancillary tradlng income 2024 2023 Income from fundraising events Other educational income.. Extras Entrance and régistration fees 10,965 8,930 197,854 13,701 340,786 16,750 222,519 366,466 Income from government grants 2024 2023 Rural payments agency 3.607 3,658 3,607 3,658 other in¢ome other income in 2024 primarily re5aled to proceeds on sale of a motor vehicle (2023.. primarily related to amount received from an insurance claim). 29
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS {continued} For the year ended 31 August 2024 Expenditure Staff costs {note 10} Direct costs (note 91 Support costs (note 7) Total 2024 Total 2023 Ralslng funds Financing costs Fundraising events 12,206 14,507 26,713 12,206 14,507 26,713 14,128 8,112 22,240 Charitable activities Education 4,405,996 2,132,840 3,091,802 9,630,638 8,880,229 4,405,996 2,132,840 3,118,515 9,657,351 8,880,229 Total expenditure 4,405,996 2,132,840 3.118,515 9,657,351 8,902.469 Expenditure in¢ludes', Depreciation- owned assets Operating lease rentals - equipment Auditor's remuneration (excl VAT) Current year audit Prior year audit Other services 583,302 56,656 515,741 52,200 15,500 14,750 5.485 3,650 3,950 Support costs 2024 2023 Staff costs Other expenses Depreciation Insurance IT costs Legal and professional fees Motor costs Advertising Movement in provision against dèbts Governance costs {note 8) 2,011,304 182,957 339,827 172,940 153,669 74,286 74.220 58.798 28,832 21,682 1,736,683 155,934 283,895 148,875 143,815 69,640 64.818 53.948 8,552 30,611 3,118,515 2,696,771 30
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS (contlnued) For the year ended 31 August 2024 Governance costs 2024 2023 Audit and statutory accounts fee IOver)lunder provision in prior year Teachers, pension scheme audit fee Govemors, indemnity insurance 22,200 (4,3001 1,140 2,642 21,000 6,582 1,080 1,949 21,682 30,611 Direct costs 2024 2023 Teaching costs Welfare costs Premises costs 333,071 822,055 977.714 516,305 740,197 982,119 2,132,840 2,238,621 10 Staff costs 2024 2023 Wages and salaries Social security costs Pension contributions Other staff costs 4,676.536 475,035 1,012,408 253,321 4,323,534 415,399 877,162 87,665 6,417,300 5.703.760 This is made up of: Teaching salaries Support salaries 4,405,996 2,011,304 3,967,077 1,736,683 6,417,300 5,703,760 The average number of employees in the year was.. Number Number Teaching Non-teaching 116 39 111 36 155 147 31
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2024 10 Staff costs (continued) The number of employees whose gross pay and benefits {excluding pension contributions) exceeded £60.000 in the year were.. 2024 Nurnber 2023 Number £60,000 - £70,000 £70,001 _ £80,000 £80,001- £90,000 £130,001- £140,000 £140,001- £150,000 Total remuneration for key management personnel (including pènsion conlribulions) during the year amounted lo £687.52412023'. £543,589). There were £nil of termination payments in the year (2023.. £nil). Governors were reimbursed £932 {2023.' £1,379) for Iravél and other meeting related costs. 32
cg 41 Iv c
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2024 11 Tangible fixed assets Icontinuedl All freehold land and buildings are valued, for insurance purposes and inclLJding contents, at £97 million {2023'. £97 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 2024 2023 Investment in managed funds Investment in subsidiary 7,711,569 100 5,031.193 100 7,711,669 5,031,293 Investments in managed funds are made up ofan Insignis CashAccounl wilh a markel value of£2.029.293 {2023'. £2,000,917) and a portrolio with LGTWeallh Management with a market value of£5,682,543 {2023'. £3,030,276}. Market value at 1 September 2023 Additions Disposal Gain in market value 5,031,193 2,948,012 (512,971) 245,341 7,590,495 (2,589,577) 30,275 Market value at 31 August 2024 7,711,569 5,031,193 Cost al 31 August 2024 7,503,080 5,036,513 Included in the above are the following investments that make up more than 50/0 of the total portfolio valuo: Insignis Cash Account LGT Cash Account GIAAccounl £2,029,293 £2,464,456 £3,217,820 26% 32/0 42°/0 The School has a wholly owned subsidiary, Somerhill Enterprises Limited, a company incorporated in England and Wales (company number 025807241. The company was dormant throughout the reporting period. The cost and net book value of the School's investment as at 31 August 2024 was £100 (2023.. £1001. The company was wound down after the year-end. 34
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2024 13 Debtors 2024 2023 Trade debtors Other debtors Prepayments and accrued income 2,117,460 38,172 195,467 2,411.372 313 201,543 2,351,089 2,613,229 14 Current asset Investments 2024 2023 Cash held in deposit accounts 1,028,488 1,508,007 15 Creditors: amounts falling due within one year 2024 2023 Trade creditors Other taxation and social security costs Accruals Deferred income Advance fees other creditors Amounts payable to subsidiary company 355.603 181,703 51,448 2,461,105 1,492,954 311,383 100 359,896 177,163 174.403 2,877,974 154,702 279,324 100 4,854,293 4,023,562 Included within other creditors are amounts totalling £62.046 (2023.. £55,227) in respect of outstanding pension Gonlributions. Deferred income InGlud8d within creditors is an amount of £2,461,105 {2023'. £2,877,974) in respect of fees invoiced prior to the year-end relating lo future terms. 2024 2023 Balance at 1 September 2023 Released to fee incom6 in year 2,877,974 12,877,974) 2,771,421 {2,771,4211 New deferred income 2,461,105 2,877,974 Balance at 31 August 2024 2,461,105 2,877,974 35
SOMERHILL CHARITABLE TRUST LIMITED {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2024 15 Creditors: amounts falling due within one year (continued) Advanced fees Included within creditors is an amount of £1,492,95112023.- £154,702) in respect of fees received in advance, there 15 also a further amount of £1,678,882 (2023.. £151,598) in respect of fees due after more than one year. Fees paid in advanced are analysed as follows.. 2024 2023 Balance at 1 September 2023 New amounts paid 306,300 3,114.252 438,082 194,326 3,420,552 632,408 Amounts utilised in the payments of fees 1248,719} {326,108) Balance at 31 August 2024 3,171,833 306,300 16 Creditors: amounts falling due after more than one year 2024 2023 Fees in advance 1.678.882 151,598 17 Restrlcted funds - current year Balance at 1 September 2023 Balance at 31 August 2024 Income Expenditure Long Library fund Government grants 40,000 10,055 3,607 150,055) (3,607} 40,000 13,662 (53.6621 Restricted funds represent donations reiVed for specific items or appeals. The School roceived restricted govemment grant income of £3,607 in the year12023'. £3,6581- see note 4 for further details. All monies were fully spent during the year. The School received a donation of £10,055 in the year (2023.. £40,000} specifically towards the Long Library refLJrbishment 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 2023124 to cover the final costs of the project. 36
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2024 17 Restricted funds (continued) - prior year Balance at 1 September 2022 Balance at 31 August 2023 Income Expenditure Long Library fund Government grants 40,000 3,658 40,000 (3,658) 43,658 {3,6581 40,000 18 Designated funds- current year Balance at 1 Septembèr 2023 New Designations deslgnations released Balance at 31 August 2024 Designated property Capital development5 fund 11,743.827 5,000,000 {243,475} 11,555,990 5,000.000 16,743.827 (243.475) 16,555,990 The designated propety 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 designaled for future projects that support the strategi sion of the School. Prior yaar Balance at 1 September 2022 New designations Designations released Balance al 31 August 2023 Designated property Capital developments fund 11,867,027 {123,2001 11,743,827 5,000,000 5,000,000 11,867,027 5,000,000 {123,2001 16,743,827 37
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2024 19 Analysis of net assets between funds- current year Unrestricted funds Designated Restricted funds Funds Total Fund balances at 31 August 2024 are represented by.. Tangible fixed assels Investments Nel current assets Non-Gurrent liabilities 4,258,785 7,711,669 14,963,443) 11,678,822) 11,555,990 15,814,775 7,711,669 36,557 (1,678,822) 5,000.000 5,328,189 16.555,990 21,884,179 Prior year Unrestricted funds Designated Restricted funds Funds Total Fund balances at 31 Augusl 2023 are represented by.. Tangible fixed assets Investments Net current assets Non-current liabilities 4,294,383 31,293 591,011 1151,598} 11,743,827 5,000,000 16,038,210 5,031,293 631.011 1151,5981 40,000 4,765,089 16,743,827 40.000 21,548,916 20 Related party transactions There were no related party transactions in the year (2023: none). No Governors. received remuneration, payments for services or reimbursed expenses during the year {2023'. none). 21 Operating lease commitments Al 31 August 2024, the School was committed to make minimum lease payments in respect of non- cancellable operating leases as follows- 2024 2023 Amounts payable: Within one year Between two and five years 46,079 58,673 43,737 51,702 104,752 95,439 All leases relate to amounts payable in respect of equipment. 38
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2024 22 Cash generated from operations 2024 2023 Surplus for the year 335,263 634,190 Adjustments for: Depreciation charges Interest receivable Gain in market value of fixed assel investments Gain on sale of fixed assets Decre8sel{increase}lin debtors Increaselldecrease) in creditors 583,302 (185,498} 1245,341 } 27,861 262,140 1639,300} 515,741 {81,223) {30.275) 62,957 131.6341 Cash generated from operations 284,780 1,069,756 23 Analysis of changes In net funds At 1 September 2023 Cash flows At 31 August 2024 Cash at bank and in hand Current asset investments 533,338 1,508,007 977,995 1479,519) 1,511,333 1,028,488 2,041,345 498,476 2,539,821 39
SOMERHILL CHARITABLE TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS {continued) For the year ended 31 August 2024 24 Pension and similar obligations Defined contribution penslon 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 £723,47612023'. £538,638). At the year-end £61.82812023'. £54,681) 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 ITPSI is a slalulory, 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 il 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*mployer pension scheme. The School has accounted for ils contributions lo the scheme as if it were a defined contribution scheme. The pension charge for the period includes employer contributions payable lo the TPS of £350,761 (2023= £295,011) and at the year-end £nil12023'. £546} 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 lo 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 lalesl 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 Gonsullation are.. Employer contribution rates set from 1 September 2019 at 23.680/0 of pensionable pay (including a 0.08 /0 employer administration charge} Total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £218.1 billion, and notional assets (estimated future contributions together with Ihe notional investments held al the valuation date) of £196.1 billion giving a notional past service deficit of £22 billion The SCAPE rate, sel by HMR. is used to determine Ihe notional investment retum. The current SCAPE rale is 2.4 /0 above the rate of CPI, assumed real rate of return is 2.40/D in excess of prices and 2 % om excess of earnings. The rate of real earnings growth is assumed to be 2.2 /0. The assumed nominal rate of return including earnings growth is 4.45 %. A copy of the valuation report and supporting documentation is on the Teachers, Pensions website. 25 Capital commitments Capital commitments totalling £nil {2023'. £20,448) relate to the roofing works on 3 and 4 Bothy Cottages properties, which straddled the year-end. 40