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2022-08-31-accounts

Sussex House School

(A company limited by guarantee and not having share capital)

Report and financial statements

For the year ended 31 August 2022

Company registration number: 02884794 (England and Wales)

Charity registration number: 1035806 (England and Wales)

Sussex House School

Reference and administrative details of the charitable company, its trustees and advisors

Trustees J A Crewe
J M Elias
M A J Goedhuis
N P Kaye
R T G Winter
Board of Governors J A Crewe (Chairman)
K Brewer_appointed_ 23 6 2022
J M Elias
N M Gayner_resigned 30 9 2022_
J Gallant
P D Hargreaves_resigned 5 11 2022_
R T G Winter
Registered Company 02884794 (England and Wales)
number
Registered Charity 1035806 (England and Wales)
number
Headmaster N P Kaye
Bursar A M Bennett
Independent auditor WMT - Chartered Accountants
Verulam Point
Station Way
St Albans
Hertfordshire
AL1 5HE
Registered Office 68 Cadogan Square
London
SW1X 0EA
Website www.sussexhouseschool.co.uk
Bankers Barclays Bank plc
Level 27
1 Churchill Place
London
E14 5HP

Sussex House School

Contents

Trustees’ report 1 - 8
Independent auditor’s report 9 - 12
Statement of financial activities (including income and expenditure account) 13 - 14
Balance sheet 15
Cash flow statement 16
Notes to the financial statements 17 - 28

Sussex House School

Trustees’ report

for the year ended 31 August 2022

The trustees (who are also directors of Sussex House School Limited for the purposes of company law and trustees for the purposes of charity law) present their statutory report, which also represents a directors’ report, for the year ended 31 August 2022 under the Companies Act 2006, together with the audited financial statements for the year, and confirm that the latter comply with the requirements of the Companies Act 2006 and the charitable company's memorandum and articles of association and have been prepared in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102) and the Statement of Recommended Practice (Accounting and Reporting by Charities) (the Charities SORP – Second Edition). The report has been prepared in accordance with Part 8 of the Charities Act 2011.

Reference and administrative information

Sussex House School ("the School") is a registered charitable company founded in 1994, charity number 1035806 and company number 02884794. The liability of the members is limited by guarantee to an amount not exceeding £5.

The School has an official Church of England affiliation under the Designation of Schools having a Religious Character (Independent Schools) (England) Order 2004.

Structure, governance and management

Governing document

The charitable company is governed by its memorandum and articles of association which were last amended on 10 March 1994.

Trustees

The trustees, who are also directors of the charitable company, who have held office for the whole of the year unless otherwise stated, and to the date of this report, are as follows:

J Crewe J M Elias M A J Goedhuis N P Kaye R T G Winter

Trustee appointment and training

New trustees will be appointed in accordance with the Articles of Association following lengthy consultation and consideration by the existing trustees who must be satisfied regarding their eligibility. Existing trustees retire by rotation each year.

Any new trustees will be inducted into the workings of the School, and also of the company as a registered charity by the Headmaster. Prospective trustees will be provided with a memorandum of the legal responsibilities and duties of trustees and are invited to familiarise themselves with CC3 "The Essential trustee: what you need to know, what you need to do" published by the Charity Commission plus copies of the charitable company's financial statements and minutes of previous trustees' meetings.

Page 3

Sussex House School

Trustees’ report

for the year ended 31 August 2022

Structure, governance and management (continued)

Organisational management

The trustees meet at least three times a year to determine the general policy of the charitable company and review its overall management and control, for which they are legally responsible. When determining policies, the trustees seek input from the Board of Governors which also meets at least three times a year, and is concerned with the running of the school. The day-to-day running of the School is delegated to the Headmaster and the Staff Senior Management Team.

Objects, aims, objectives and principal activities (including public benefit)

The primary objective of the charitable company, as set out in its memorandum and articles of association, is promoting and providing for the advancement of education of children and adults by the provision of one or more schools, tutorial colleges and other establishments.

The Trustees have had regard to the guidance on public benefit published by the Charity Commission, and in particular to its supplementary public benefit guidance on advancing education and on fee charging when exercising their powers and duties, in particular when setting fees charged by the School and identifying the benefits provided by the charitable company in relation to its aims.

Although the School has an entry test, due to the large number of applications for places, the policy is to measure potential as well as a pupil's current performance so that priority is given to children who will benefit from not only the academic programme on offer at the School, but also the specialities of certain areas of creativity, notably Music, Art and Theatre. The School has never restricted entry to a potential pupil because of the pupil's parents' inability to pay the fees. The geographical location of a pupil's home, their ethnicity, race or existence of a disability are quite irrelevant to the School's selection procedure. Although the School has an official Church of England affiliation, a family or child's religious affiliation is not taken into account when places are offered and boys of all religions and denominations or none are welcomed equally.

Strategic aim and intended effect

The School's strategic aim is to reach its annual objective which is the attainment of the highest academic levels whilst allowing pupils to benefit from the School's extensive extra-curricular programme. This enables the School to develop its pupils' abilities and academic potential, awaken and develop their wider interests in life and prepare them for the senior school of their own and their parents' choice.

Objectives for the year

The trustees' main objective for the year continued to be to educate all the School's pupils to at least the same high standard achieved by the School in previous years, so that they will fully benefit from their chosen senior school for the completion of their education in due course. The strategy to achieve this is to maintain a high teacher-to-pupil ratio and to tailor the education of each pupil to suit their individual needs. In addition, the trustees aim to continue providing support in respect of the provision of means tested bursaries and to continue to develop links with the local community and other organisations.

Principal activity

The School continues to operate as a day school for 8-13 year-old boys, educating them to a high standard and so enabling them to move on to a suitable senior school for the completion of their education.

Page 4

Sussex House School

Trustees’ report

for the year ended 31 August 2022

Review of achievements and performance for the year (including public benefit)

Operational performance of the School

The School enthusiastically returned to normality after the lifting of COVID 19 restrictions, and it has been another outstanding year for the School. Sixth form pupils were successful in gaining entry to the top schools of their choice, with an Academic Scholarship, 2 Music Scholarships and a Sports Exhibition.

Bursaries, donations and sponsorships

There was 1 bursary awarded for the 2021/22 academic year. The School continues to seek pupils who will benefit from the School's bursary provision, as well as additional sources of bursary funding. The School was grateful to receive £20,000 of funding for bursaries, and is actively seeking a suitable candidate who meets the criteria of the gift.

Donations to the Asra Hawariat School Fund, which supports the Asra Hawariat School, Ethiopia arising from funds raised at School events, amounted to £851 (2021: £9,846), and certain parents made donations directly.

Fundraising

The significant majority of the School's donations are raised as a result of the efforts of the School's Activities Committee, which comprises parents of current pupils and School staff. The Christmas Fair and the Summer Auction are the two main events each year which feature fundraising activities. These events are attended by pupils and their families, and donations are from persons with a connection to the School. Although the format of the Christmas Fair was modified due to COVID 19 precautions, donations to the School were generous.

Relationships with the Local Community and other organisations

The School is a member of IAPS which acts for the promotion and maintenance of preparatory school standards generally.

The School co-operates with various churches, including St Simon Zelotes, Milner Street, and pupils are involved in three concerts a year (two this year) as part of the Music Society Programme of St. Mary Magdalene Church Little Venice, and other local charities and societies. The School is also closely involved with the Asra Hawariat School in Ethiopia to which a proportion of the monies raised from the Christmas Fair is donated each year.

Sussex House has continued to share our curriculum under an initiative of the Board of Governors for Grenfell Response.

The Malcolm Arnold Preparatory Academy

The School is a strategic partner in the development of the Malcolm Arnold Preparatory Academy (part of the Malcom Arnold Academy), which is committed to reflecting aspects of the educational and creative approach of Sussex House School. The school is based in Northampton and Nicholas Kaye our Headmaster, has provided academic consultancy to the school.

Fencing

The School has a strong tradition of achievement in this sport, having produced a number of national champions over the past 20 years, and the return to competitions after COVID 19 was most welcome.

Page 5

Sussex House School

Trustees’ report

for the year ended 31 August 2022

Review of achievements and performance for the year (including public benefit) (continued)

Music

The School contributes to the funding of two major events of the St Mary Magdalene Music Society based at St Mary Magdalene Church, in which the School participates, at a cost of £33,989 (2021: £nil, as due to COVID restrictions neither event took place last year). Members of the public attend and form part of the Chorus and Orchestra in these events and the large audiences contain many members of the public who have no other association with Sussex House.

Church

Sussex House takes part in various events at its local church, St Simon Zelotes, Milner Street, SW3. The School continues to be very grateful to St Simon Zelotes for allowing a greater than normal use of the church during COVID restrictions. The School contributed £2,937 (2021: £8,000) towards the upkeep of the church. The School has also maintained its strong link with St Mary Magdalene Church, Rowington Close, Little Venice, W2.

The Asra Hawariat School, Addis Ababa

Sussex House has established a strong link with this school in Addis Ababa. The Asra Hawariat School exists to provide education for 1,500 Ethiopian children who would not otherwise have the means to attend school. The school is funded by the Asra Hawariat School Fund based in the UK and no children pay to attend. A generous contribution from funds raised at the Summer Auction 2021 was donated to the Asra Hawariat School Fund and as a result of the link many parents have made generous separate donations to that school.

The trustees have continued to review the School's activities including revenue and financial, human and physical resources as part of their duties to monitor and ensure that the School's charitable objects and the public benefit are achieved most effectively.

Related party transactions

N P Kaye is a trustee of both the Asra Hawariat School Fund, which funds the Asra Hawariat school in Addis Ababa, and of the St Mary Magdalene Music Society. Details of transactions with these related parties are set out in note 18 to the financial statements.

Bursary policy

Bursaries are available to those prospective pupils who meet the School's entry requirements, or current pupils, and are made solely on the basis of parental means or to relieve hardship where a pupil's education and future prospects would otherwise be at risk. In assessing means the School takes a number of factors into consideration including family income, investments and savings and family circumstances.

Risk management

The Trustees identify and assess the major risks to which the Charity is exposed, and how these are appropriately managed. The major risks identified being an adverse impact on the reputation of the school, changes to the regulatory, legislative and inspection regime, political and financial risk. To mitigate these risks, among other actions, the Trustees, with assistance from the Governors and the Staff Senior Management Team, ensure that a high quality education is provided, ensure that a robust set of policies, procedures and risk assessments are maintained, develop financial management, monitor the effectiveness of the system of internal controls and other viable means, including insurance cover where appropriate. Trustee Indemnity insurance is in place.

Page 6

Sussex House School

Trustees’ report

for the year ended 31 August 2022

Financial review and results for the year

The School’s income exceeded expenditure by £435,263 during the year (2021: £446,527), which reflects the ongoing management of income and costs without compromising educational quality. The School received income of £4,613,209 (2021: £4,203,550) during the year as a result of charging for tuition and related activities. In addition, the School received donations for Bursary provision of £20,000, and to the Arts and Sports Fund of £72,681 (2021: £47,557). There were donations of £851 (2021: £9,846) for the Asra Hawariat School. Unrestricted donations totalled £88,189 (2021: £53,148) and the School also received contributions of £8,063 towards the cost of our Jubilee celebrations.

Expenditure on School operating costs was £4,309,162 (2021: £3,882,096) with a further £52,949 (2021: £41,635) of expenditure incurred in relation to bursaries and donations.

This year, an additional smart board was purchased for use in the ballroom at a cost of £4,260 which has added to both teaching and extra-curricular flexibility. IT spending during the year included a mobile set of laptops for classroom use at a cost of £7,128, a set of laptops and a tablet for Learning Support at a cost of £7,685 and upgrades to laptops for staff use at a cost of £8,245. The fire alarm system, including emergency lighting, was upgraded at a cost of £53,145.

There continues to be a steady number of registrations for future attendance at the School, and a strong demand for places from high calibre academic candidates, based on entrance test results.

Reserves policy

The School's unrestricted funds at the end of the year were £2,029,814 (2021: £1,609,794), and restricted funds were £535,516 (2021: £525,303). Total reserves stand at £2,565,330 (2021: £2,135,097). In a normal year, a total reserve level equivalent to one term's customary expenditure would be a level which the trustees would consider practicable and achievable on an ongoing basis to cover the customary risks and uncertainties of operating as an independent educational establishment. However, given the considerable domestic and geo-political, and economic volatility at the present time, the Trustees consider it prudent to maintain a higher level of reserves to provide a greater degree of financial security for the School during this period of exceptional uncertainty. The Reserves Policy is subject to ongoing review.

Remuneration Policy

The key management personnel of the School are the Headmaster and the Staff Senior Management Team. Their remuneration is set by the Trustees.

Investment policy and objectives

There are no restrictions on the charitable company's absolute powers of investment. The trustees' policy continues to be to put any surplus cash on a special deposit account. Deposit account interest of £2,444 (2021: £1,617) was received during the year.

Future plans

The main project for the forthcoming year is the Technology project, which will continue the rolling upgrade of smart boards in the ICT room and all classrooms.

The School's key objectives remain to maintain the number of pupils at the present level and to pursue the same objectives as reported above for this year.

Page 7

Sussex House School

Trustees’ report

for the year ended 31 August 2022

Statement of trustees' responsibilities in respect of the financial statements

The trustees (who are also directors of Sussex House School for the purposes of company law) are responsible for preparing the trustees' report and financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (UK GAAP).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the trustees are required to:

The trustees 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the trustees of the charitable company confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of Section 418 of the Companies Act 2006.

This report has been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

Approved by the trustees and signed on their behalf by

N P Kaye Secretary

Date: 2022

Page 8

Independent auditor’s report to the members of Sussex House School for the year ended 31 August 2022

Opinion

We have audited the financial statements of Sussex House School (the ‘charitable company’) for the year ended 31 August 2022 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis 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 entity’s ability to continue as a going concern for a period of at least twelve months from the date when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The trustees 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.

Page 9

Independent auditor’s report to the members of Sussex House School for the year ended 31 August 2022

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

As explained more fully in the trustees’ responsibilities statement the trustees (who are also the directors of the charitable company for the purposes 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 trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the

Page 10

Independent auditor’s report to the members of Sussex House School for the year ended 31 August 2022

engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and noncompliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of Trustee meeting minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Page 11

Independent auditor’s report to the members of Sussex House School

for the year ended 31 August 2022

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Elizabeth Wicks Senior Statutory Auditor

For and on behalf of WMT Chartered Accountants and Statutory Auditors Verulam Point Station Way St Albans Hertfordshire AL1 5HE

Date: 13 March 2023

Page 12

Sussex House School

Statement of financial activities (including income and expenditure account)

For the year ended 31 August 2022

Notes
Unrestricted
funds
2022
£
Income from charitable
activities:
2
School fees
4,563,982
Registration fees
28,400
Income from generated funds:
Donations
88,189
Interest receivable
2,444
Other income
20,827
Total income
4,703,842
Expenditure on charitable
activities:
3
- Teaching costs
3,246,864
- Premises
536,254
- Support costs
410,771
- Depreciation and amortisation
34,426
- Bank charges and bad debts
8,319
- Bursaries
3,472
- Donations
38,686
Total expenditure
4,278,792
Net income / (expenditure)
for the year
425,050		 Restricted
funds
2022
£
—
—
93,532
—

—

93,532
18,701
⎯
—
53,827
—
—
10,791

83,319

10,213		 Total
funds
2022
£

4,563,982
28,400
181,721
2,444
20,827
4,797,374



3,265,565
536,254
410,771
88,253
8,319
3,472
49,477
4,362,111
435,263		 Unrestricted
funds
2021
£
4,085,712
35,210
53,148
1,617
82,628
4,258,315
2,813,032
514,104
384,359
21,296
16,203
29,207
9,358
3,787,559
470,756		 Restricted
funds
2021
£
—
—
111,943
—

—		 Total
funds
2021
£
4,085,712
35,210
165,091
1,617
82,628

111,943		 4,370,258
66,613
⎯
—
66,489
—
—
3,070		 2,879,645
514,104
384,359
87,785
16,203
29,207
12,428

136,172		 3,923,731

(24,229)		 446,527

The notes on pages 17 to 28 form part of the financial statements.

Page 13

Sussex House School

Statement of financial activities (including income and expenditure account)

For the year ended 31 August 2022

Notes
Unrestricted
funds
2022
£
Net income/(expenditure) for the
year
425,050
Depreciation on revaluation of
tangible fixed assets
(5,030)
Net movement in funds
420,020
Fund balances at 1 September
1,609,794
Fund balances at 31 August
11,12
2,029,814		 Restricted
funds
2022
£
10,213

—
10,213
525,303
535,516		 Total
funds
2022
£

435,263
(5,030)
430,233
2,135,097
2,565,330		 Unrestricted
funds
2021
£
470,756
(5,030)
465,726
1,144,068
1,609,794		 Restricted
funds
2021
£
(24,229)

—		 Total
funds
2021
£
446,527
(5,030)
(24,229)
549,532		 441,497
1,693,600
525,303 2,135,097

The net incoming resources for the year derive from the continuing operations of the charitable company.

The notes on pages 17 to 28 form part of the financial statements.

Page 14

Sussex House School - Charity registered number: 1035806 (England and Wales)

Company registered number: 02884794 (England and Wales)

Balance sheet

for the year ended 31 August 2022

Notes
Fixed assets:
Tangible assets
6
Listed investments
7
Current assets:
Debtors
8
Cash at bank
Creditors:amounts falling due within one year
9
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
10
Total net assets
Represented by:
Reserves:
Restricted funds
11
Unrestricted funds
12
Total funds		 £
228,142
2,851,445		 2022
£
681,679
124		 2021
£
657,778
124
681,803 657,902
2,183,527 242,804
2,392,838
3,079,587
(896,060)		 2,635,642
(866,447)
1,769,195
2,865,330
(300,000)		 2,427,097
(292,000)
2,565,330 2,135,097
535,516
2,029,814		 525,303
1,609,794
2,565,330 2,135,097

The financial statements have been prepared in accordance with the special provisions applicable to companies subject to the small companies’ regime.

Under Companies Act 2006, s454, on a voluntary basis the Trustees can amend these financial statements if they subsequently prove to be defective.

Approved and authorised for issue by the trustees and signed on their behalf by:

N P Kaye Trustee Date: 2022

The notes on pages 17 to 28 form part of the financial statements.

Page 15

Sussex House School

Cash flow statement

for the year ended 31 August 2022

Cash flows from operating activities:
Net income for the year
Adjustments for:
Depreciation charges
Interest
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net cash provided by operating activities:
Cash flows from investing activities:
Interest
Purchase of property, furniture and equipment
Net cash used in investing activities:
Change in cash at bank and in hand in the year
Cash at bank and in hand at the beginning of the year
Cash at bank and in hand at the end of the year
Changes in net debt
Cash at bank and in hand		 At
1 September
£
2,392,838		 2022
£
435,263
88,253
(2,444)
14,662
37,613		 2021
£
446,527
87,785
(1,617)
(36,660)
218,134
714,169
1,617
(13,355)
(11,738)
702,431
1,690,407
2,392,838
At
31 August
£
2,851,445
573,347
2,444
(117,184)
(114,740)
458,607
2,392,838
2,851,445
Cash
Flows
£
458,607

The notes on pages 17 to 28 form part of the financial statements.

Page 16

Sussex House School

Notes to the financial statements

for the year ended 31 August 2022

1 Accounting policies

Basis of preparation

Sussex House School is a public benefit entity under the Financial Reporting Standard 102 (FRS 102). The financial statements have been prepared under the historical cost convention modified to include the revaluation of freehold land and buildings, and in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102) – Second Edition and the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102) and the Companies Act 2006.

Income

All income is recognised when the charitable company is legally entitled to the income, when it is probable that the income will be received and when the amount receivable can be measured with sufficient reliability.

Fees

Fees consist of charges invoiced for the School year ending August 31 for tuition and registration. Fees received for education to be provided in future years are deferred to future periods.

Job Retention Scheme

Job Retention Scheme income consists of claims made through HMRC for a proportion of the cost of the wages and salaries of those employees who are furloughed during a period of Government-imposed physical school closure related to the COVID 19 pandemic. Amounts claimed are given in note 2.

Expenditure

All expenditure (including irrecoverable VAT) is recognised when a liability is incurred and has been classified under headings that aggregate all costs related to the category.

Charitable activities costs comprise all operating expenditure incurred to enable the charitable company to fulfil its charitable aims. These include both costs that can be allocated directly, and those of an indirect nature which are necessary to support charitable activities.

Costs of generating funds are those incurred in attracting voluntary donations.

Page 17

Sussex House School

Notes to the financial statements

for the year ended 31 August 2022

1 Accounting policies (continued)

Tangible fixed assets

Tangible fixed assets costing £300 or more are capitalised. Depreciation is provided on tangible fixed assets at rates calculated to write off the cost or valuation, less estimated residual value, of each asset evenly over its expected useful life, as follows:

Freehold buildings - over 50 years Leasehold property and improvements - over the lease term Furniture and equipment - over 4-10 years

No depreciation is charged on freehold land.

Listed investments

Listed investments are shown at market value.

Financial instruments

The charitable company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as debtors and creditors.

Financial instruments are initially measured at transaction value. They are assessed at the end of each reporting period for objective evidence of impairment, and if found, an impairment loss is recognised.

Cash at bank

Cash at bank comprises cash at bank and in hand.

Debtors

Short term debtors are measured at transaction price, less any impairment losses.

Creditors

Short term creditors are measured at the transaction price.

Deposits

Deposits refundable against final term's fees are treated as a long term liability except to the extent that they are due to be repaid within one year of the balance sheet date in which case they are recorded as a current liability. Forfeited deposits are taken to income.

Pensions

The School contributes to the Teachers' Pension Defined Benefits Scheme at rates set by the Scheme Actuary and advised to the School by the Scheme Administrator. The Scheme is a multi-employer pension scheme and it is not possible to identify the assets and liabilities of the Scheme which are attributable to the School. In accordance with FRS 102 the Scheme is accounted for as a defined contribution scheme and contributions are accounted for when advised as due by the Scheme Administrator.

Contributions to the NEST Pension Scheme are at the level required under current workplace pension legislation.

Page 18

Sussex House School

Notes to the financial statements

for the year ended 31 August 2022

1 Accounting policies (continued)

Leasing commitments

Rentals paid under operating leases are charged to income on a straight line basis over the lease term.

Fund accounting:

Restricted funds

Restricted funds comprise donations given for a specific purpose and their use is therefore subject to specific restrictions imposed by donors.

Expenditure incurred in fulfilling the objective of each fund is charged against the fund balance and deducted from the expenditure category in the charitable company's Statement of Financial Activities. Where the expenditure relates to a fixed asset, an amount is set aside in restricted funds related to that fixed asset and an annual depreciation charge is made against the restricted fund until such time as that asset is fully depreciated.

Unrestricted funds

Unrestricted funds comprise accumulated surpluses and deficits and are available for use at the discretion of the trustees in furtherance of the general objectives of the charitable company.

Judgements

The preparation of the financial statements requires the Trustees to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for income and expenditure during the year. The nature of estimation means the actual outcomes could differ from those estimates. There are no judgements made that have a significant effect on the amounts recognised in the financial statements.

Going concern

The trustees are not aware of any material uncertainties regarding going concern.

2 Income

Income represents fees charged in respect of tuition, other related activities and registration fees. Donations include those amounts donated to specific restricted funds and unrestricted donations along with any tax refund received under Gift Aid. Incoming resources also includes interest receivable and any gains in value of investments. Last year, Other Income included claims made under the HMRC Job Retention Scheme, comprising claims of 2021: £63,007 and 2021: £9,621 for wages and salaries of furloughed teaching and support staff respectively.

Page 19

Sussex House School

Notes to the financial statements

for the year ended 31 August 2022

2 Income (continued)

The donations received during the year comprised:


Arts and Sports Fund
Asra Hawariat School Fund
Music and Theatre Fund
Bursary Fund
Other
3
Expenditure
(a)
This is stated after charging:		 Restricted
funds
£
72,681
851
⎯
20,000
⎯		 Unrestricted
funds
£
⎯
⎯
⎯
⎯
88,189		 2022
Total
£
72,681
851
⎯
20,000
88,189		 2021
Total
£
47,557
12,246
52,140
⎯
53,148
93,532 88,189 181,721 165,091
Staff costs (note 4)
Governance costs – Auditor’s remuneration
– other governance costs
Depreciation of owned fixed assets
Operating lease rentals – plant and equipment
– land and buildings		 2022
£
2,845,780
9,500
196
88,253
2,838
308,198		 2021
£
2,685,764
9,000
196
87,785
3,012
313,400

(b)

Remuneration of trustees

No trustees received any remuneration in respect of their services during the year (2021: £nil). No trustee received any reimbursement of expenses during the year (2021: £nil).

Mr N P Kaye, who is a trustee is also the school’s headmaster and his remuneration (excluding pension contributions) including benefits, was £145,246 (2021: £141,924) and is included in the staff costs. In addition, the School has made employer contributions to the Government's Teachers' Pension Defined Benefits Scheme (note 14) for the benefit of Mr N P Kaye of £30,650 (2021: £30,347).

(c) Indemnity insurance

The School has purchased indemnity insurance to indemnify the School for up to £1,000,000 from loss arising from the neglect or default of its trustees, employees or agents and to indemnify the trustees or other officers against the consequences of any neglect or default on their part at a cost of £196 (2021: £196).

Page 20

Sussex House School

Notes to the financial statements

for the year ended 31 August 2022

3 Expenditure (continued)

(d) Support Costs

Wages and salaries
Computer costs
Insurance (non-buildings)
Other support costs		 2022
£
275,053
77,234
23,672
34,812		 2021
£
259,146
65,099
21,672
38,442
410,771 384,359

4

Staff costs

Staff costs
Wages and salaries
Social security costs
Other pension costs (note 14)		 2022
£
2,263,165
262,720
319,895		 2021
£
2,150,480
232,527
302,757
2,845,780 2,685,764

Of the above £2,570,727 (2021: £2,426,618) is included in teaching costs and £275,053 (2021: £259,146) is included in support costs in the Statement of Financial Activities.

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

2022 2022 2021 2021
FTE No. FTE No.
Teaching staff 37 48 36 45
Administration 5 6 5 5
42 54 41 50

Ex-gratia payments totalling £2,000 (2021: £nil) were paid to staff leaving during the year.

The total of key management personnel compensation was £960,325 (2021: £862,828).

The number of employees whose remuneration exceeded £60,000 and to whom retirement benefits are accruing under defined benefit schemes (note 14) are set out below:

2022 2021
No No
£60,001 - £70,000 7 5
£70,001 - £80,000 1 2
£80,001 - £90,000 2 1
£90,001 - £100,000 1 2
£100,001 - £110,000 1 -
£140,001 - £150,000 1 1

Page 21

Sussex House School

Notes to the financial statements

for the year ended 31 August 2022

5 Taxation

The School is a registered charity and therefore is not liable to income tax or corporation tax or income or gains derived from its charitable activities, as they fall within the various exemptions available to registered charities.

6 Tangible fixed assets

Cost/valuation:
At 1 September 2021
Additions
Disposals
At 31 August 2022
Depreciation:
At 1 September 2021
Provided during the year
Disposals
At 31 August 2022
Net book value:
At 31 August 2022
At 1 September 2021		 Freehold land
and buildings
£
936,628
14,199
—		 Leasehold
improvements
£
449,546
66,346
—		 Furniture &
equipment
£
858,011
36,639
—		 Total
£
2,244,185
117,184
—
950,827 515,892 894,650 2,361,369
402,076
9,918
—		 384,660
48,775
—		 799,671
34,590
—		 1,586,407
93,283
—
411,994 433,435 834,261 1,679,690
538,833 82,457 60,389 681,679
534,552 64,886 58,340 657,778

All fixed assets owned are used for direct charitable purposes.

The charitable company has adopted a policy of not revaluing its tangible fixed assets. The book value of freehold land and buildings is based on a valuation by Gerald Eve, Chartered Surveyors on November 26 1999 at open market value in accordance with The Royal Institution of Chartered Surveyors' Appraisal and Valuation Manual. This valuation of £700,000 has been incorporated in these financial statements with subsequent additions being included at cost.

The historical cost of freehold land and buildings included above at a valuation of £936,628 was £685,106 and the aggregate depreciation thereon would be £313,200.

7 Listed investments

The charitable company holds 372 shares in Lloyds Banking Group plc (2021: 372 shares) which is recorded at its market value of £124 on August 31 2022 (2021: £124).

Page 22

Sussex House School

Notes to the financial statements

for the year ended 31 August 2022

8 Debtors

Fees receivable
Prepayments and accrued income
Other debtors
Creditors: amounts falling due within one year
Deposits refundable within one year
Payments for school fees received in advance
Expense creditors
Taxation and social security costs
Other creditors
Accruals		 2022
£
57,350
170,792
0		 2021
£
94,253
146,390
2,161
228,142 242,804
2022
£
74,000
585,160
109,755
62,096
37,546
27,503		 2021
£
85,500
587,665
80,913
55,553
35,088
21,728
896,060 866,447

9 Creditors: amounts falling due within one year

Payments for school fees received in advance of £585,160 (2021: 587,665) represents fees which are received before the start of the term to which they relate, typically fees for the Michaelmas Term which are received during the preceding summer holiday period.

Other creditors includes an amount of £37,824 (2021: £35,088) in respect of contributions due to pension schemes.

10 Creditors: Amounts falling due after more than one year

School fee deposits 2022
£
300,000		 2021
£
292,000

Page 23

Sussex House School

Notes to the financial statements

for the year ended 31 August 2022

11 Restricted funds

(a) The income funds of the School include restricted funds comprising the following balances:

At 1 September 2021
Incoming resources:
Donations received
Resources expended:
Capital expenditure
Depreciation
School activities
Asra Hawariat School
Ethiopia
Transfers
At 31 August 2022		 Capital
Expenditure
fund
£
103,045
⎯
13,703
(53,827)
⎯
⎯
⎯
⎯		 Arts and
Sports fund
£
385,300
72,681
⎯
⎯
(18,701)
⎯
⎯
⎯		 Asra
Hawariat
School fund
£
9,940
851
⎯
⎯
⎯
(9,191)
(1,600)
⎯		 Music and
Theatre
fund
£
6,980
⎯
(2,315)
⎯
⎯
⎯
⎯
⎯		 Technology
Fund
£
20,038
⎯
(11,388)
⎯
⎯
⎯
⎯
⎯		 Bursary
Fund
£
⎯
20,000
⎯
⎯
⎯
⎯
⎯
⎯		 Total
£
525,303
93,532
—
(53,827)
(18,701)
(9,191)
(1,600)
⎯
62,921 439,280 ⎯ 4,665 8,650 20,000 535,516
At 1 September 2020
Incoming resources:
Donations received
Resources expended:
Capital expenditure
Depreciation
School activities
Asra Hawariat School
Ethiopia
Transfers
At 31 August 2021		 Capital
Expenditure
fund
£
163,343
⎯
6,191
(66,489)
⎯
⎯
⎯
⎯		 Arts and
Sports fund
£
347,450
47,557
⎯
⎯
(10,932)
⎯
⎯
⎯		 Asra
Hawariat
School fund
£
764
12,246
⎯
⎯
⎯
(2,270)
(800)
⎯		 Music and
Theatre
fund
£
10,521
52,140
⎯
⎯
(55,681)
⎯
⎯
⎯		 Technology
Fund
£
22,454
⎯
(2,416)
⎯
⎯
⎯
⎯
⎯		 Art Display
fund
£
5,000
⎯
(3,775)
⎯
⎯
⎯
⎯
⎯		 Total
£
549,532
111,943
—
(66,489)
(66,613)
(2,270)
(800)
⎯
103,045 384,075 9,940 6,980 20,038 1,225 525,303

Page 24

Sussex House School

Notes to the financial statements

for the year ended 31 August 2022

11 Restricted funds continued

b) The Capital Expenditure Fund represents amounts used to purchase fixed assets for the School, from funds raised specifically for such a purpose, and also the annual depreciation charge each year on those assets.

The Arts and Sports Fund has been used partly to fund fixed assets in the past but is also to maintain and develop the School’s creative, musical, theatrical and sporting activities, with the majority of its funds being generated by the School’s Christmas Fair and Summer Auction. The purposes for which the Art Display Fund was established have been fulfilled and therefore the remaining funds of £1,225 have been amalgamated with the Arts & Sports Fund.

Further music and drama resources will be funded from the Music and Theatre Fund, and the main current focus is the ongoing rolling upgrade of smart white boards, in the ICT room and classrooms.

The School also operates a fund to support the Asra Hawariat School.

12 Unrestricted funds

Unrestricted funds
These funds comprise:
Revaluation reserve
Accumulated surplus		 2022
£
152,724
1,877,090		 2021
£
157,754
1,452,040
2,029,814 1,609,794

The revaluation reserve arose on the revaluation of the freehold land and buildings in 1999, less the depreciation released to the Statement of financial activities.

The remaining unrestricted resources arise principally from the School’s day-to-day operations.

13 Analysis of net assets between funds

The fund balances at 31 August 2022 are represented by:

Fixed assets
Current assets
Current liabilities
Creditors: Amounts falling due
after one year
Total net assets		 Restricted
funds
2022
£
62,921
472,595
—
—
535,516		 Unrestricted
funds
2022
£
618,882
2,606,992
(896,060)
(300,000)
2,029,814		 Total
funds
2022
£
681,803
3,079,587
(896,060)
(300,000)
2,565,330		 Restricted
funds
2021
£
103,045
422,258
—
—
525,303		 Unrestricted
funds
2021
£
554,857
2,213,384
(866,447)
(292,000)
1,607,794		 Total
funds
2021
£
657,902
2,635,642
(866,447)
(292,000)
2,135,097

Page 25

Sussex House School

Notes to the financial statements

for the year ended 31 August 2022

13 Analysis of net assets between funds (continued)

Unrealised gains at 31 August 2022 are represented by:

At 1 September
Realised in the year
At 31 August		 Restricted
funds
2022
£
—
—
—		 Unrestricted
funds
2022
£
157,754
(5,030)
152,724		 Total
funds
2022
£
157,754
(5,030)
152,724		 Restricted
funds
2021
£
—
—
—		 Unrestricted
funds
2021
£
162,784
(5,030)
157,754		 Total
funds
2021
£
162,784
(5,030)
157,754

14 Pensions

Teachers’ Pensions

The School participates in the Teachers' Pension Scheme (England and Wales) ("the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £297,843 (2021: £281,585) and at the year end £35,432 (2021: £32,675) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by the Teachers’ Pensions Regulations 2010 (as amended) and the Teachers' Pension Scheme Regulations 2014 (as amended). Members contribute on a "pay as you go" basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The latest valuation report in respect of the TPS was prepared at 31 March 2016 and the valuation report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.

Page 26

Sussex House School

Notes to the financial statements

for the year ended 31 August 2022

14 Pensions (continued)

Teachers’ Pensions (continued)

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020 and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following a public consultation, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations.

The 2016 cost control valuations have since been completed in January 2022, and the results indicated that there would be no changes to benefits or member contributions required. The results of the cost cap valuation are not used to set the employer contribution rate, and HM Treasury has confirmed that any changes to the employer contribution rate resulting from the 2020 valuations will take effect in April 2024.

Until the 2020 valuation is completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

Under the definitions set out in section 17 of Financial Reporting Standard 102, the TPS is a multi-employer pension scheme. The charitable company is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, it has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The charitable company has set out above the information available on the scheme.

Other Pensions

Pension contributions are also paid to a contributory pension scheme for the benefit of non-teaching staff. In May 2015 the School started its auto-enrolment pension scheme with NEST for the benefit of all non-teaching staff. The assets of this scheme are held separately from those of the School in independently administered funds.

All pension contribution costs are recognised in the statement of financial activities as they become payable. The pension charge for the year includes contributions payable to NEST of £22,052 (2021: £21,182) and at the year end the amount due to the scheme was £2,192 (2021: £2,213). The statutory minimum contribution level increased in April 2019.

There were capital commitments for items contracted for but not provided in the financial statements amounting to £nil (2020: £nil).

15 Capital commitments

Page 27

Sussex House School

Notes to the financial statements

for the year ended 31 August 2022

16 Other financial commitments

The future minimum lease payments due to the end of the relevant leases are as follows:

Operating leases payments due:
Within one year
Between 2 and 5 years
Greater than 5 years		 Plant and
Equipment
2022
£
631
2,050
—
2,681		 Plant and
Equipment
2021
£
1,580
—
—
1,580		 Land and
buildings
2022
£
199,260
—
—
199,260		 Land and
buildings
2021
£
263,552
195,000
—
458,552

17 Financial Instruments

Financial assets that are debt instruments
Financial liabilities		 2022
£
2021
£
76,012
107,849
539,304
506,619

Financial assets measured at amortised cost comprise fees receivable, accrued income and other debtors.

Financial liabilities measured at amortised cost comprise deposits, expense creditors, pension contributions and expense accruals.

18 Related party transactions

N P Kaye is a trustee of the St Mary Magdalene Music Society which organises an annual series of recitals and concerts at St Mary Magdalene Church, Rowington Close, Little Venice, London W2. The School supports this programme and the School's pupils, parents and staff usually participate in two concerts a year (but just one last year due to the COVID 19 pandemic) which are sponsored by the charitable company but are also open to the general public. During the year the charitable company incurred expenditure of £44,749 (2021: £1,064) and received contributions of £9,000 (2021: £nil) from the St Mary Magdalene Music Society towards this expenditure.

N P Kaye is a trustee of the Asra Hawariat School Fund. Donations from Sussex House fundraising activities amounting to £9,191 (2021: £2,270) were made to the Asra Hawariat charitable Fund.

There were no donations to the charitable company from the Trustees.

19 Limitation of liability

The members of the charitable company guarantee to contribute an amount not exceeding £5 to the assets of the charitable company in the event of a winding up.

Page 28