DUKE OF KENT SCHOOL A COMPANY LIMITED BY GUARANTEE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31" AUGUST 2023 *AQ3LOOXE' 21105r2024 C￿PANIEs ￿M)usE 39 Registered in England. Company No: 3424289 Registered Charity No: 1064183 DUKE OF KENT SCHOOL COMPANY INFORMATION FOR THE YEAR ENDED 31 AUCUST2023 STATUS AND ADMINISTRATION The School is an in¢kpendent regiS￿re1 Charity numttr 1064183 and acompany limiteil by guarantee with registered number 3424289. GOVERNORS The Board of Governors are the mernbers company. They are also directors of the company under company law and trustees of the Charity under chaTiiy Saw. Those serving during the to the date of ihi5 rewTrrt are &8 follows: Mr R.A.Brocksom (Chair) Mr A.R.W.Balls Mrs J.S.Cropp¢r Mr S.M. Dallyn Mrs J.Hendriksen Mr D.M. Jack Mrs P.M.M¢Kenna Mts C.A. Wi150n Mr R.J.L. Rowland (Resigned 26th January 2023) Mr A.B. Bond {Appointed Jurte 2023) KEY EXECUTIVFS AND PROFE&8IONAL ADVISERS HEAD Mrs S.l. Knox MEd, MBA, BA (Hons) FINANCE MANAGER Mr N. Tearle BA (Hon5). Clwtertd Managem￿1 Accountant IACMA) COMPANY SECREfARY Mr K. Stacey PRJNCIPAL ADDRESS & REGISTEiiED OFFICE Duke of Kent School P¢aslake Road Ewhurst Surrey GU6 7NS BANKERS Lloyds Bank plc 2 City Place Ga¢wick West Sussex RH6 OPA AUDITORS Alliotts LLP Statutory Auditor and Chanerd Accountants Friary Court 13-21 High Sireet Guildford. Surrey GUI 3DL DUKE OF KETriT SCHOOL COVERNORS. REPORT FOR THE YEAR ENDED31 AUGUST 2023 The Board of Governors present th¢ir Annua] Report for the year ended 3 I Augu￿ 2023 together with the audited financial st&tements forthe year. and confim) that they comply with curreni statutory requirements. th¢ requirements of ihe ¢ompany's gov¢ming document and the provisions of the Charitics Statement of Recommended Pracii¢¢ IChaTlties SORP) 'Accounting and reporting by Chariiie5" applicable io charities preparing their accounts in ac¢ordart¢e with the Financial Reporting Standard applicable In the UK and Republic of Ireland (FRS102) eff￿lIve January 2019. STRUCTURE. COVERNANCE AND MANAGEMENT GoverniDg Docurnent The company is governed by its Memorandum 8nd Articles of Association. GoverThAnce The Governors are elected at a full Governors, meeting and are selerted on the basis of their expertise and experience. The Governors deiem)ine the generdl policy of the Sch(x)l. The day to day management of the School 15 delegated io the Head. the Bursar and the FIrta￿e Manager who rtport eiiher directly io the Governing Body or through sub- committees covering specific areas such as Finance and Property. Education. IT. Ma¥k¢tin& ¢Safety and Health & Safely. Thes¢ are chaired by m¢mb¢rs of the Governing body or Senior Management. Governors. tr&ining New Govemors a￿ familiarised with the organi52tion and srructure of the School. This programme includes knowledge of the School's wjlicies and safeguardingtraining. Governor5 and HeAd Duke of Kent Sch￿1 is fortunate to be served by a board of dedicatut and enthusiastic Gov¢mors with a wide range of experience. expertise and talent. Governors help toshape developm¢nr straiegy. adviseand 5UPPOrt the Head. sCr￿1n]$e policies and ensur¢ compliance with statutory and regulatory requirements, tskiTrg an informed inieresi in the work of ihe S¢hool. In addilion to ihe four Gov¢rnin8 Body meetings thai normally lake place each year. Governor5 serve on su￿MmIttee5 including FinanK Edu¢aiion. IT. MaTkeiin& esafety and Health & Safely. AIM& OBJEcfivES AND PRINCIPAL AcfiviTIES The School airns to teach pupi15 to be p051tive. compassionate and ronstTUCtive mernbets of ¢heir local and global community. ready to face the ¢hallenges of the ￿t￿re, and to provsde ihem with opportunities for teamworK leadership, service and mordl development. Up to July 2014. the School provided b)th boarding alld day education for tA)ys and girls in the age rang¢ three to sixieen. All boarding ceased ai the SchcK)l from then and the School. from the Autumn temi 2014. ￿c￿rne a day school only on an Exiended Day model. As a legacy of boardin& the sch￿)1 provid¢s a full and exi¢nsiv¢ pro8ramme ofedu¢aiional activities beyond the core school day from 7.30am to 7.30pm. five days per week Ethos And Strategic Airns. The School exi5t5 10 provide 8 Safe. happy environment in which children can enjoy i high quality education. This education is to be IKJth sufficiently adaptsble fo address the needs of each individual ¢hild and suificiently wide ranging to challen8e and develop 2 broad swead of talents aThJ abilities within eaeh child. Objettives for the year The Board's main objective ¢(￿tInued to be the eduotion of all the SchcK)I's pupils to enable them to proceed to their n¢xt school or sixth forni college of choice. to develop their academic and social skills to their full potential. Employability is a key focus. with attention given to fostering positive character iTaits. babits and skills in order to enable our pupils to enjoy a productive and fi]lfilling life. The Arate8y for achieving thi5 IS to rnaintain a high teacher- to-pupil ratio, pursue a gro￿ mindseu and a balance of challenge and suptK)rt as required by ¢a¢h pupil. DUKE OF KENT SCHOOL GOVERNORS, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 Principal activity The principal aGtivity is the provision of a ￿￿dUcatiOnal Extended Day School serving the Surrey and West Sussex ar￿. GRANT MAKIIYG AND BURSARtES The Governor5 view bursary awards &5 imrATrrt8nt in helping to ￿￿Ure that children whose parents would otherwise not be able to afford ihe fees can access or Continue wilh th¢ edu¢aLiOn offered by the School. Bursaries can be rnade available for new entrants. to facilitate access or. moTe obviously. ¢0 current pupils, to facilitaie educational continuity when deteriorating family circumgances didate. In makin8 awards a number of factors are taken into Consideration in¢luding educational contivuity. family income. asse￿ Invesiments, savings and other individual circumstances. The School does [￿t have endowments aTMI in funding awards a very careful balance has to be struck beiween ￿71 fee- paying paTen¢s, many of whom make considerable Fersonal Sacrifices to fund their children's education. and those benefiting from the awards. RISK MANAGEMENT The BoaTd of Governots is responsible forthe managemeni of risks fac£d by the S¢hool. Risks such as those relating to safeguaTdin8, health and safety or ihe School's finances are identified and assessed with controls applied to miiigate risk. A fom)al risk review i$ undertaken annually and any perceived vulnerabilities addressed. Controls used by the School irttlude cornprehensive Strategic planning. an established Organisational Structure and line5 of reporting. hierarchical authorisation aThl approval levels. formal written policie5 and risk assessments and terms of reference for Govemors. Through the risk management process established for the School. the Governors are satisfied that the major risks identified have been adequately mitl8ated where rx)ssible. It is recognised that Sy5ter115 ran only provide ieasonable bui not absolut¢ assuran¢es ihat major risks have tt¢n adequaiely mana8ed. RESERVES As in Notes 12 and 13 10 the a¢counts, (he T¢serv¢s are split between those restricted to specific purposes and those available for the day to day requirements of the School. The Teserves policy of the School is io ¢ontinue building up reserves out of annual operdling surpluses uniil a suitable level of free reserves is obtaind. The policy is rhac two monihs. expendilure would be prn¢ti¢able and achievable in orderto cover the ri5k5 and uncertainties of operating as an independent educational e5tabli5hment. It is p)ssible IKJwever that free reserves will need to be used"prior to rea¢hing the recommended l¢v¢l in order to satisfy the demand5 of fvrther capital expenditure so that the SclN)ol can be equipped with the up io date facilities needed to maintain ihe standards of educational 5ervice5 currently provided. In common with rnost independent schools the School has neg￿]Ve free weserves (£238,500) &5 the Governors have continued to reinvest surpluses inio tht School PTopertie5. INVFSTMENT POLICY The School's policy is, when appropriate. to retain core cash b￿anCeS on term dep)sii a¢¢ounts. PUBLIC BENEFIT Th¢ Govemors have complied wilh the duty under Section 4 of the Charities Ad 2CH)6 to hav¢ regard to the public benefit guidance wblished by ihe Chariiies CommiSSLOn. REVIEW OF ACHIEVEMENTS AND PERFORMAf4cE FOR THE YEAR Strong local demand and excellent retentiofi hav¢ ¢nsur¢d lh* pupil numbers have climbed steadily. In September 2023 there were 325 children on roll. with a nurnber of year groups operating at capaci¢y. Th¢ S¢hool ¢ontinues to provide an excellent &lucaiion for its pupils across a broad academic rang& with a fticus on the ￿e￿IS of ¢ach individual and the importaTKe of personal developmeni_ DUKE OF KENT SCHOOL GOVERNORS, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGusf 2023 The School was la51 insp¢ded by ISI (the Independeni Schools. Inspertornfe) in November 2019, in the area of Regulaiory Complian¢¢. We w¢r¢ deli8ht¢d to achieve full compliance in all areas. This is a parti¢ularly pleasing achievement and a welcome external validation of the Schwl's operations and p¢rformance. The S¢1￿1 is committed to brtadih ofedu¢ation aTKI thereforegreatly valuesthe contribution of Sw>rt and P¢rfoTming I Creative Arts to our pupils, development. in addilion io the Core subjects stlldied. Well-being and promoting the welf8r¢ of our pvptls in the broadest sense Temains our priority. As a further means of develop?ng pupils beyond the classrty)m. the School •)joys ex¢¢ptionally htgh rdies of uprake in its Duke of Edinburgh Award Scheme. IT is embedded into the curriculum and pupils have access io iPadsorChrometKA)ks as well as a kspoke Computer S¢ience classroom. Community Engagement programme5 are at the very heart of what wedo and we were honoured to receive a Highly Commended Award for Community Setvice initiatives this year. We continue to l(x)k at ways we can Strengthen our community links. Facilities ai the School are outstandin8. Two brand new. slate ofthe art Science laiK>r*ories pJDvide a stimulating and ellg8￿ng environment for St￿JentS from Yeats 3 to I I to pvrsue the ever incre&sin8 range of enriching 5ciente tspportunities. The installation tsf the All-weathersports pit¢h. supplemenied by major changing room improvem¢nts. has signiftcantly enhanced stK)rting optiOll5 especially duTin8 the winter mnths. Local sports clubs also benefit frun the hiring opportunities that these facilities offer. GCSE results were outstanding again this year. Our Year I Is achitvcd an overall GCSE pa5S Tate of 98Yo, Wlth commendable 8V/o of our pupils gaining at least one grade 7 or above. Irmleed. over half of all the grndes awarded were a grade 7. 8 or 9. The cohort average a¢ro$s all subjects was a gnde 7, wilh grade 9 making up 12% of the ilxal. This is a truly fantastic achievement. UpK)n leavin& OUT pupils Continue their educaiion ai a range of independent schools and excellent lool sixih fom colleges. FINANCIAL REVIEWAND RESULTS FOR THE YEAR The result5 for the year under review show total in¢ornirt8 re50ur¢es of £5,564,122 (2022.. £5,266,923) and a related surplus of £1 1,478 (2022.. £59,613). Unrexricted funds carried fon¥ard amoun( to £1.076.862 whi15t restri¢ted funds Carried forward totsl £18,134. Cash held by the School shows an Incre￿ of £101,250 overthe balance atthe previous ytar end. COMMUNITY RELATIONS AND ACCESS The 5¢hool actively culiivaie5 Strong connections with ihe local ¢cthmuni¢y. recognising its pivotal 2Dl¢ in the educational journey of its students. With the majority of students hailing from the IMM￿]81¢ vicinity. Ihe schcx)I ¢mbrace5 the resportsibility of impartirtg a sound understsnding of ihe local geography, people, history. culture, and traditions. Thi5 vibrant locale is viewed as a rich ¢d￿￿tional resource, seamlessly Jniegrated Into Ihe curriculum and various ¢lubs and extracurricular activitie5. Notably, the school 0￿5 its doors and exlensive 8round5 to local organisaiions. clubs. and associations, often waiving fees cnlirely or charging a nominal amount. For instance, it has host¢d the AGMS of the.FTiertdg of the Hurfwo(xJ and wovid¢d ¢omplimentary access to IrKal children's football and cricket clubs. Metnbers of the local community are valued as educaiiortal asse￿. frquenily inviied io the school as visiiing Speakers, Artists in Residence, and educational praaitioners. Moreover. the school actively enga8es with the loul area ihrough a myriad of initiativ4 such as historical sile visits, ￿[laboralI0nS with local charities like Cranleigh Rotary, community ¢ollcert5. trips io l¢xal museums armj public space¥ aryd projects centred around local themes. such as archiieciural sketching of ihe l¢)cal high #reet. In the wake of reduced interaction during the lockdown. the schoDI seized the opportunity to re4s5ess and strengthen exisiing cornmunity ties while fostering new ones. This commitment is prominently fraiured in the sch(x)I's Developmeni Plan and h&$ been dili8ently acEed upon throughoui the year. The school h&4 intensified its collaborations with other ILKal scho)Is. inviting them on educational trips, masl¢rcla5ses. work5hop5. Sporting events and coynp¢iitions. This in¢luded a shared Art trip io The Sculptur¢ Garden in Farnham, a stimulating Comput¢r Science Coding competition and a Crickei Skills workshop. DUKE OF KENT SCHOOL GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUCUST 2023 A significant development is the establishmeni of a dedicated Cornrnunity Week. where students devot¢ momings to variou5 charstable activities. including wistin8 the Horsham Food Banl crealing rnurdls for the RTrding for the Disabled. supporting lo¢al ¢ar¢giving ¢harilies. and engaging with s¢aff and Voluntee￿ * lo¢al nature parks. This initiative has been recogni5ed as'High Commended, by the ISA for the School's outstanding ￿MMUni¢Y Contributions during the academi¢ y¢ar 2022-23. The school Is gieadfasily v)mmiiied to ¢xpandin8 and enhancing this impactful project in the future. VOLUNTEERS The School tontillues to bEnefit from a thriving and very a¢tive Parents. Assocration. PADOK. which. during ihe year, raised fvnds through so¢ia] functions for th¢ purchasing of 5ch(KTrl equipment to th¢ value of £7.788. FUTURE PLANS Whilst The School 15 Scenario planning for the impact of any futuie iynplementation of VAT on fees, the S¢hool aims to continue to enhance its facilities and eurriculum across the entire age range (Nllr5ery to Yezr I l) and to improve the extended weekday provision of an enrichin& balanced and stimulating edU￿10n for all pupil& keeping our focu5 rneetin8 the needs of each individual. The Head and Governors Continue to ￿refullY consider development opportunitie5 consistent with the aims and ethos of the Schwl. PAY POLICY FOR SENIOR STAFF The Governors consider the Board of Governo￿. the Head and the Senior Leadership Team comprise the key personnel in charge of dire¢iing and Controlling the School. All Governors give iheir ¢ime freely and no Govemor received any remuneration during the year. nor did they claim any expenses. The remuneration of senior sraff is reviewed annually. The Govern￿$ ar¢ mindful of both national Ind local trends when conducting this exercise. GOVERNORS. RESPONSIBILITILS IN RKLATION TOTHE FINANCIALSTATEMENTS The GovemoT5 are responsible for Preparing the Governors. report and the Financial Ststements in accoidance with applJ¢able law and Uni*d Kingdom A¢couniing Siandards (Uni¢ed Kingdom Generally Accepted Ac¢ountiT)8 Practice). The ￿r￿)Se of this statement is to distinguish the Governor5. responsibilities for the aewunts from those of th¢ audiiors Os ststed in th¢ir repo Company law require5 the Governor5 to prepare finanoal statements for each financial year. Under company law ihe Governors mllst not approve the finan¢ial statements unless they are satisfied that ihey give a true and fair view of the slate of affaiTS of the charitable company and of the in¢oming resources and applir2tion of resources, including the income and expenditure. of the charitable company for that peric*J. In preparing ihese finan¢ial $tstemeJ)ts. the Governors are required to: select suitable accounting PDl¥rics and then apply tl*rn ¢onsisitstly obs¢tve ih¢ m¢th¢yls and principl￿ in the Charities SORP make judgements and accounting estimate5 that are rea50n*ble Ind prudent stste whether applicable accounting standards have beem followed, subject to any material departure5 disclosed and explained in the Financial Siaternents- and prepare the financial statem¢niS on going concern ￿1$ unless it is inappropriate to presume that the charitable company will continue in operation. The Governors are responsible for keeping adequate accounting records thai are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy al any tiriiE the financial position of Lhe charitable ¢ompany and enable them to ensur¢ that the Financial Statements comply with the Charitie5 Act 2011. thr Charity (Accounts and Reports) Regulations 2008 and the Companies Act 2006. They are also responsible for safeguarding ihe assets of the charitabl¢ ￿MpanY and hence for iakÉng reasonable step5 for the prevention and detection of fraud and o(her irregularities. DUKE OF KENTSCHOOL COVERNORS, REPORT(CONTINUED) FOR THE YEAR ENDED31 AUCUST2023 The Governors are respon5Lble for the maintenance awNJ integrity of the C￿p0Ate aTwJ financial infoThation included on the charitable Company's websiie. Legrislaiion in the United Kingdom governing ihe preparation and dissemination of financial statements may differ from legislation in other Jurisdicti￿5. PROVISION OF INFORMATION TO AUDITOR Each of lh¢ persons who are Governors ai lh¢ ¢ime when this Govemojs. rep)rt Is approved bas ¢onfimied that.. so fara5 that Governor is aware. there is no relcvanl audit inforniation of which the charitable company's auditOTS are unaware, and he or She ha5 taken all the steps ihat ought its have Ixen taken &s a Governor in orderto be aware of any information needed by the charltable ¢ompany's audiiors in conne¢tion wilh preparing their Annual Report and to Establish that the charitable company's auditors are aware of that information. In pr¢parin8ihis r¢port. the Governors have tsken advantsge of the small ¢ompanies' ¢xemptions provided by S￿tion 415A of the Compani¢s Act 2006. Approved by the Board of Governors at tts meetingon 12 Marth 2024 and on its behalf. .Brocksom Chair of the Govemors REPORTOFTHE INDEPENDENT AUDITORSTOTHE MEMBERS OF DUKE OF KENT SCHOOL Opinion We have audited the financial statements of Dukeof Ktnt School for the yeareTtded 31° August 2023 which ¢omprise the Siatement of Financial Aetivities. th¢ Balan¢¢ SheeL the S￿lement of Cash Flows and the related notes. The financial iewning framework th￿ been appli&1 in their preparntion is applicable law and United Kingdorn Accounting Standards including Financial Reporting Standard 102. The FiDancial Reporting Standard appli¢abl¢ in the UK and Republic of Ireland (UnitoJ Kingdom Generally A¢¢wttsl Accounting Prdctice). In OUT opinion the financial 5tatcments-. give a true and fair view of th¢ 5￿C of the ¢harithbl¢ ¢x)mpany's affw-rs as at 31° AuguM 2023 and of its income and expenditure for the year then ended- have been properly prepared in a¢¢ordartce with Untted Kingdom Generally Accepted Accountin8 Practice,. and have been prepared in a¢¢ordan¢e with the T4U7￿Ments of the Companies A¢t 2006. B#si$ for OPilliD W¢ ¢onduct¢d ouraudit in ac¢ordante with Intwiatiortal Sthnéards on Auditing(UK) (ISAS (UK)) and applicable law. Our re5POll5ibilities under those 51andards are fvrther described in the Audilor's re5pon5ibililies for the audi¢ of the firbancial statements s¢¢tion of our report. We are independ¢ni of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial stsiernents in ihe UK. including the FRC'5 Ethical Standard, 2nd we have fulfilled our other dhical Tesponsibilities ID accordartce with ihese requirernents. We believe Ihat the audit evidence we have obtsined is 5ufficiertt and appropriwe to provide a basis for our opinion. Conclusion5 relatiDE to going cowcer In auditing the financial statements, we have concluded that the Govemors, use of the going con¢em basis of accounting in the preparation ofthe financial 5tatemtnts is appropriate. B&sed on the work we have perfomied, we have noi ideniifial any material uncertaintie5 relating to events or Hditions thai, individually or wIle￿ive7y. rnay ra5t $ignif)cant doubt on the charitsble company's ability to continue 85 a going concern for a period of at leasi twelve rnonths from when the financial stat¢m¢nts are auihorised for issue. Our responsibilities 8nd the re5fA)nsibilitie5 of the Govemors with respect tts going concern are describ&J in th¢ relevant sections of this report. Other inf0rn12tion The other infomi&ion comprists ihe inforniaiion included in the annual report. otherthan the finan¢ial statemenis and our audiior's report iherts)n. The Govemors are reskX)nsible for ihe other infornlation. Our opinion on the financial statements does not cover the other inforniation and, except to the exteni othenvi5e expli¢iily $￿ted in our report, we do not express any fonn of &ssurdnce conclusion thereon. In conllection wilh our audi¢ of the financial statements, ourresponsibility isto rtad the other infomiation and, in doin8so. consider whetherthtother information is materially incon515tenl with the financial 5tat¢rntnts orouT knowledge obtained in the auditor otherwise appears to be materially rnisstaied. If we identify such Materi￿ Incon515tencie5 or apparent Ma¢¢rial mis5tateTnent$, we art required to detemine whether the￿ is a material missthi¢ment in ihe financial statements or a material rniss¢atement of the o¢h¢r information. Sf. based on the work we have pthrmal. we conclude that there is a material mi5siatemeni of this other information. wt are required to report that f8¢t. We have nothing io report in thts regard. REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF DUKE OF KENT SCHOOL{continued) Opinions on other m*rters prescribed by the Com￿•1¢$ Act 2006 In our opinion. based on the WO￿ undertaken in the ¢OUTse of the audiL' the infomiation given in the Governors, report. which includes the Dite¢iors' report pr¢par¢d for the purposes of company law. for the financial year forwhich the financTral stsiements are Prcpared is consistent with ihe financial statements,. and the DirectOT5' Report In￿rpOlatcd within the Govemors. Rew&n h&$ been prepared in accordance with 8ppli¢able legal requirements. Matter5 on which we #rt reqwired to rtport by esteption In the light of the knowledge and under51andrng of the tharitsble company and its environm¢nt obtained in the COUTse of the audit. we have vot identified maieriol missiaiements in ihe Directors. Report included within the Govemors. Report. We have nothing to reN)rt in rtspeci of ihe ftsllowing mattews where the Companies Act 2006 require5 US to report to you if, in our opinion.. adequate accouniing records have not kept or returns adequate for our audit have not been r¢c¢ived from branches not Visit￿ by us. the financial stat¢menis are not in agreerneni with the accountin8 record5 and returns" certain disclosure5 of Governots. remuneration $pecifJed by law are nol made- we have not rec¢iv¢d all the infonnaiion and explanations we require for our audit. or the Gov¢mor5 were not entitled to prepare the financi81 statements in accordance with the small companies. regime and take advaniage of th¢ small companies exemptions in preparing the Direaors. Report and from the TeqiJiTement to prepare a Strategi¢ Report. R¢$ponsibilitits of Gov¢rnors As explained rnore fully in the GoverTh)TS Responsibilities Siatement set out on page 5. the Governors (who are also the direaors of the charitable company for the purposes of company law) art responsible for the preparation of financial statements and ftir being saiisfied that ihey give a irne and fair view. and for such internal control a5 the Governor5 deterniine is necessary to enable the prePar￿l￿n of financial s¢atenKnts thai are fftt from mat¢ria] misstatement. whether due to fraud or error. In preparing ihe financial $t*ements, Ihe Governors are responsible for assessing the charitable company's ability to continue as a 80ing concem. disclosin& as applicabl< matters rtSaied io going con¢ern and using the going concern basis of a¢cournting unless th¢ Governors either intend to liquidate the Company or to cwe operations. or have no realistic alternative but to do w. Auditor's responsibilities for the amdit of ibe financial statements Our objectives are to obthin Teasonable assurance about whether the financial sthiements as a whole are from material mis$tat¢ment, whether due to frdud or error, and to issue an auditor's report that include5 OUT opinion. Reasonable assurance is a high level of assurance. bul is noi a guarantee thai an audii conducted in a￿Ordance with ISAS (UK) will ￿WayS delect a material mis5ts1emenl when it exists. Mis5tstements can arise from fraud or ern)r and are con5idtred material if. individually or in the aggregatc. they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial st￿ementS. REPORT OFTHE If4DEPENDErirAUDITORSTOTHE MEMBERS OF DUKE OF KETrfr SCHOOL (fontlnued) Ext¢nt to which th¢ 9¥dit wa$ col)$1d¢r￿ ¢ap4bl¢ oldetrtting irrtgul4ritiu, induding fr4ud Our approach to identifyin8 and a5se55in8 the risks of material mi55taiement in respea of irregularities. including fraud and non-compliance with laws and regtslations, wa5 as follows: the engagemeni pather ensured that the engagement team collettively had th¢ appTowiaie ￿mpetenCe, capabilities and skills to identify or reco8nise non-compliance with applicable laws and re8ulations- we identified ihe laws and regul*ions applicable io the Sthool thtough dI￿U￿40ns with management, and from our comrnercial knowledge and experience of the sector, we focus￿ on specific law5 and regulations which we con5ider¢d may have a dire¢t tn8terial effect on the finan¢ial tstements or the Op¢￿tionS tsf the Sthool. ¥n¢luding the Companies Act 2006, Charities Act 2011, taxation legislation. d*a protection. anii-bribery. employment. environmentsl and htalth and safety legislation- we assessed the extent of Compliance wilh the laws and regulations id¢n1ifi￿ above thwtjgh m8king enquirie5 of management and inspecting legal correS￿nde￿cc. and identified laws and regulaliorts were communicated within the aLJdit team regularly and the team ttmained alert to instan¢¢s of non•complianc¢ throughout th¢ audit. We &ssessed the susceptibility of the School's financial statements to material miss¢attment, including obtaining an understanding of how fraud might occur. by= making enquiries of management as io where they considered there was susceptibility to fraud. their knowledge of a¢¢ual, suspeaed and alleged fraud; considerin8 the internal conirols in placeto mitl8atcri5k5 of fraud and non-cornpliance with laws and regulations, and undeL%tanding the design of the Sch￿1,$ renJuner*ion polrcie5. Audit rt5POTbse ¢0 risks identified To address the risk of fraud through management bias and override of oJntrol& we: perfomied analytical procedures lo identify any unusual or unexpeded relationships- tested joumal entries io identify unusual tnnsactjons: asse$5ed whether judgements and assumptions made in detemiining the accounting estimate5 were indicative of po¢ential bi8s,' artd investl8ated the rationale behind 51gnifi￿1 or unusual transactions. In response to ihe risk of irregularities and non-compliance with laws and re8ulation4 we designed procedurcs which included, but were llot lirnited to.. agreeing financial statemeni disclostsr¢s to underlying SUPPYting documentation. erbquirin8 of management as to aciual and PDl￿ti3] litlgation and rlwms- 3rtd reviewed legal expenses for indications of non-¢ompliav¢e or l¢ga] aciion. There are inher¢ni Iimitatitsns in our audit procedure5 desLYibal al)ove. The more removed that law5 and regul*ions are from financial transaciions. the less likely il is ihat we would become aware of non-compliance. Auditin8 standards also limit the audit procedures required to identify non-compliance with laws and regulations io enquiry of the Govemors and oth¢r m￿agement and th¢ inspection of regularory and legal Correspondence, if any. Material misstatements that arise due to fraud can bc harder to ddcct than those that arise from error as they may involve deli￿[*¢ ¢on¢¢alm¢nt or rollu5i0n. A further description of our responsibilities for the audit of the finanrial ststements Is locat¢d on the Financial Keporting Council's website at www.fr¢_o¥g.uklauditOT5responsibilitie5. This description forns part of our auditor's report. REPORT OFTHE INDEPENDENT AUDITORS TOTHE MEMBERS OF DUKE OF KENfscHOOL(continu¢d) Use of our report This report is made solely to the chariry's Governors. as a Emyly. in accordance with Chapter 3 of Part 16 of the Companies Aci 2006. Our audit work has been und&taken so thai we might swe io the charitable companys Governors those matter5 we are required to State to them in an audilOTS' report and for no other purpose. To th¢ fijllest ¢xtent permitted by law. we do not accept or assume resw>nsibility to anyone other ihan the Charitable company and the charitable cornpany's Governo￿ as a body. for our audit work. forthis report. or for the opinions we have fomled. Siephen Mer&Jith BA FCA DChA {s￿l0T Statutory Auditor) For and behalf ofAlliotts LLP Chartered Accounrants Starui¢xy Auditor Friary Court 13-21 High Street Guildford Sllrrey GUI 3DL Dated I leL 10 DUKE OF KEP4T SCHOOL STATEMENTOF FINANCIAL ACTIVITIES (INCLUDINC IP4COME AND EXPENDITURE ACCOUTrffj FOR THE YEAR ENDED 31 AUGUST2023 Lknre5tricted Fund$ 2023 Re5triCt8J Total Funds 2023 Funds 2023 Tota1 Funds 2022 Notrs INCOMEfrom: Donatlons 7.788 7.788 4048 Donations fiom par￿￿S Association Charitable Attivitie5 School fees receivable Registration fees 5.405,375 8,500 5.405.375 8,500 5.14?.872 s￿00 Other tratling ￿tIVItIeS Other income 132.124 132.124 109,210 Investments Bank and other interest 10.335 10.335 193 Total incorne 5564.122 5564.IZZ 5266.913 E OD.. Generzilng Funds Financing costs 17345 17.345 18%08 Charltable Actlvitles Teaching Wdfare 3.181507 573.814 1.134,256 608.009 37.713 3.181.507 573.814 1.134.256 608.(KJ9 37.713 3.020.351 555521 992.844 534.407 8S.379 Premise5 Support costs Goverftance costs Total ejtpendblure 5552ffi44 5552fi44 5207310 Net Income and movement In fundsfor the year IIA78 IIA78 59.613 RECONCILIATION OF FUNDS FLtnd5 brought forward 1st September 1.065.384 18.134 1.083.518 1.023.905 Funds ￿rrIed forward 31st August 11176I62 18.134 11194,996 1,083.518 The *otes on pages 14 to 22 form parts of these Financ•*l Staternents. Th¢r¢ are other retognised gain$ and 105ses o¢h¢r th#tt ih¢ #et incornt for th¢ y¢gr. All op¢r*tion$ and *ctivities are tODtinutng. DUKE OF KEf4T SCHOOL BALANCE SHEET AS AT 31 AUGUST2023 Notes 2023 2022 FIXED ASSEfs Tangible Assets 1.365.360 1,331,628 CURRENT ASSETS Stock 7310 155.321 1.350.216 1.512.847 7828 184,790 1.248.966 1.441.584 Debtr)rs Cash at thg bank and in hand CLKtRENT LIABILfflES Creditors.. fal l ing due within one yeaf 11240.3801 11.111.119) NEf CURRENT Ass￿5 272.467 330,463 TOTAL ASSEIS LESS CURRENT LL4BILfllE5 I.63?￿27 1,662,092 CREDITORS Due after rTh)re than one year 1542.8311 1578,5741 TOTAL NET ASSETS 1I794?96 IX183 518 . THE FIthNDS OF THE CHARITY Restricted funds 13 18.134 18.134 1.065,384 Unrestritted funds 12 1.076.862 TOTAL FUNDS IA194J96 IA183518 The financial statements have been prepared in accordance with the special provisiors relating to companies subject to the small companies regime within F4rt 15 of the Companies ACL 2006. The financial stsiements were aMJrovtd by the Board on 12th March 2024 and signed on its behalf by Mr R.A. Bro¢ksom Chair of the Governors Mr S.M. Dallyn Governor member of he Finan Commi Company Number 3424289 The notes on pages 14 to 22 fonn parts of these 4c¢ou*ts. 12 DUKE OF KENT SCHOOL STA TEM ETriT OF CASH FLOWS FOR THE YEAR ENDED 31 AUCUST 2023 Recorbeiligtion of movement in funds tfj Aet CA$h flow fnjm oper*tiThg *ctivities 2023 2022 Net mo¥ement in fvnds IIA78 59.614 Add.. Depr&iation charge Add.. Loss on saleof fixvj ass£ 249,216 10.983 110.3351 518 265.305 Deduct-. Interest recwved reaselllncreasel in swck Dcf reaselllncfeasel in debtors IDeEreaselllncrea5e in crLxlitors 11931 12.2661 137.3291 2,974 29.469 129.5SO Net cash generated by operatSn8 artfvitles 420A79 Z88.105 Cashflows from investlnz actlvlties Interesi Income 10335 1293.9331 193 Purchase of fixed assets 187.9031 Net cash used in investing arti%rytles 12835981 187.710) Cashflows from fmanowd aclfvltie5 Repayma)t of borrowine 136.0321 134,5691 Net l's contribution to the scheme in lh¢ year to 31 August 2023 was £44,477 (2022.. £42.623). Each member's compulsory personal contribution is 4.0￿ The School joined rhe Scheme in 1997 and contributions from that date to Septernber 2001 were convena io defined amounts of pension payable from norrnal retiremeni date_ From (kiob¢r 21)01 witriblltions were invested in personal fijnds which have a capitsl guardntee and whidb are converted to a pension on rerirem¢nL either within the Growth Plan or by purchaseof an annuity. From 2 September2005. the rules w¢re changed such ihai all multi employer schemes had to change the meihod of ¢al¢ula¢ing any possible debi du¢ if an employeT Wlthdrnws from the s¢hem¢. This us¢d ¢0 be calculated on the MFEi (minimum funding requirement) basis but 15 now calculated on a full buy oui basis. The S¢herne has always been more than IOOO/o funded on the MFR basjs but there is a deficit of approximately 4% on the full buy out basis. A full actuarial valuation for the scheme was last carried out as at 30 September 2020. This valuation showed assets of £800m, liabilities of £832m and a deficit of £32m. To eliminate this fvnding shortfall. the Trustee has asked the parti¢ipating employers io pay additional contri1￿tiOnS to the scheme. Underthese'employer debt regulatic￿lS-fh¢ latesi auuarial ¢stimat¢ indicatesthat ifthe Duke of Kent School were io leave the Pen￿on5 Trust Scheme or had no ewnployees remaining within the scheme. the debt on wiihdrawal would be £84,067 (2022= £152,139 - see note 15). In order to address this deficit a recovery plan has been established by The Pensions Tru￿. The required deficit wntribulions are allocated to each particip￿ing employer in line with their esiimated share of their Series l and Series 2 scheme liabilities. As the Scheme is in deficit and the School h&$ agrced to the deficit funding aTrangements it recognises a liability for this obligation. The amount re¢ognised is the net present value of the deficit reduction eontTibuttons payable under the agreemeni and is as follows: 2023 2022 Present value of provision 20 DUKE OF KENTSCHOOL NOTES TO THE ACCOUT4TS (tontinued) FOR THE YEAR ENDEDJI AUGUST 2023 12. iJNRESTRICTED Fuf4DS Balance 1st Septwvber 2022 Balance 31st Au8U5t 2023 Incoft Expenditure Unrestricted lund Prior y¢Ar. Balance 1st tember 2021 Balance31st Au8USt 2022 Income Expenditure Unrestricted fund 13. RESTRtCTED FUNDS The Prize fvnd is used to partially fund the Sch(x>l's expenditure on prizes. The Amenitie5 Fund is used io contribute to refvrt)ishment and maintenance costs. The fEStricted funds are held in cash. Balance 1st s￿len4)er 2022 Balance 31st Augusi 2023 Incoff Expenditure Prize fund Ameniiies fund 3.449 3.449 Prior year Balance 1st September 2021 Balance 31st Augvst 2022 Incoft Expenditure Prize fund 3.449 3.449 Amenitie5 fund 21 DUKE OF KENTSCHOOL P40TES TO THE ACCOUNTS (continued) FOR THE YEAR ENDEDJI AUCUST 2023 14. OPERATINC LEASES The School holds its lond and buildin8s on le￿e from ihe Alexander Duckham Memori?] S¢hools Tnjst. The School entered into this lease with the Trust on 13 Au8iJSt 2010 for a ierni of 25 years from Septernber 2008. The S¢hotsl rematns responsibl¢ for maintaining ihe properry in a fit and proper condition and such costs are generally written off as and when ineurred. From September 2020 the annual rent payable was set at a fixed raie of £157.890 per annum for the five ytars commenting I September 2020. The total annual commitment under all It￿S is as follow5= 2023 2022 Within l year Ito5years More than S years 201.519 662.750 789,450 1.6S3,719 203,096 706,379 947,340 1.8S6,81S 15. CONTINGENT LIABILITIES As detailed in note I Ilbl, there 15 a contingeni liability ac¢ording to the late51 actuanal estimate of £84,067 {2022.. £152,139) r¢laiing to ihe 'employer debt regulations, under the Pensions Twst Scheme. The Schwl has no intention of leaving ihe Pensions Trusi Scheme and the￿fore it is unlikely thar thisdebi will cry51alli5e. The Govemor5 do noi therefore feel it appropriate to mak¢ any provision for ihis amouni in the a¢¢ounts. The last full actuarial valuation was carried out in September 2020 and action coniinues to b¢ taken by 411 participating employe￿ in the Scheme to diminatr the deficit. 16. GOVERNORS. REMV14ERATION No Governors rtt¢ive4J any remuneration during ihe year (2022.. £nil). nor were any of expense5 incurred by them12022.. £nil). 17. RELATED PARTIES There are no relaied party transactions during the period or balances held w year end. 22