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2021-08-31-accounts

The Tower House School Charitable Foundation (A Company Limited by Guarantee)

Incorporated in England and Wales No. 03345004 Registered Charity No. 1068844

GOVERNORS' REPORT AND FINANCIAL STATEMENTS

For the year ended

31 August 2021

The Tower House School Charitable Foundation CONTENTS for the year ended 31 August 2021

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Governors' Report 1 - 14
Auditors' Report 15 - 18
Statement of Financial Activities 19
Balance Sheet 20
Cash Flow Statement 21
Notes to the Financial Statements 22 - 37
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The Tower House School Charitable Foundation TRUSTEES REPORT for the year ended 31 August 2021

Trustees C Pike
Governors Alex Wilson
Nick Woods
Andy Sutch
Prof. Claire Hogg
Brian Giffen
Antony Phillips
Headmaster: G Evans
Bursar & Clerk to Governors: A Pomfret
Company registered number: 03345004
Charity registered number: 1068844
Registered Office: 188 Sheen Lane
East Sheen
London
SW14 8LF
Bankers: National Westminster Bank
341 Upper Richmond Road West
East Sheen
London
SW14 8QP
Auditors: Moore Kingston Smith LLP
Devonshire House
60 Goswell Road
London
EC1M 7AD
Investment Managers: Rathbone Brothers Plc
8 Finsbury Circus
London
EC2M 7AZ

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The Tower House School Charitable Foundation TRUSTEES’ REPORT for the year ended 31 August 2021

OBJECTIVES AND ACTIVITIES

Tower House School’s aim as an educational charity for children is to benefit the public by providing a first class education independent of the State system. We are a mixed ability school and we aim for the highest quality of academic tuition and the development of wider sporting, artistic, musical and social skills in all our pupils. We offer an environment where each pupil can develop and fulfil his potential, in order to help build self-confidence and inculcate a lifelong desire to contribute to the wider community . Objectives are set up in accordance with the whole school development plan.

The Foundation has continued seeking to act as a good citizen in the local community and elsewhere. The school maintains a close liaison between parents/guardians, teachers, the governing body as well as other local charities/organisations that can benefit from the school’s facilities. During this unusual year the school has acted in response to Government COVID 19 Guidance and has remained open during the holidays to accommodate the children of Key Workers.

In setting our objectives and planning our activities, our Governors give full weight to the Charity Commission’s guidance on public benefit in the context of charities such as Tower House. Due to the impact of COVID-19 during this academic year, ongoing objectives have had to be modified or in some cases postponed to respond to the fast changing situation and in order to comply with the highest health and safety measures, in line with the frequently reviewed Risk Assessment and current Government Guidance.

Ongoing and future objectives of the school are to:-

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The Tower House School Charitable Foundation TRUSTEES’ REPORT

for the year ended 31 August 2021

The Governors are mindful of the need to consider activities for the wider Public Benefit, although the priority is still to ensure that pupils already at the School should be able to continue and complete their education at the School. They continue to keep abreast of legal developments, taking particular note of any guidance on general public benefit issued by the Charity Commission. The Governors continue to consider ways to benefit the wider community within the financial constraints affecting the school, and resources/facilities available.

As part of the education of its pupils the school encourages them to offer service and philanthropy as part of the privileged education that they enjoy.

This includes arranging fund raising for local, national and international charities which in the past year has raised a combined figure of over £3,100 distributed to the following charities:-

The Poppy Appeal Sport Relief The Richmond Foodbank Comic Relief Help for Heroes Christchurch MacMillan Cancer Care Cancer Research UK The Western Front Way

In addition to the various fund raising activities the school organises, the older boys also enjoy a close relationship with various environmental agencies, particularly The Friends of Palewell Common.

In the autumn term food baskets are distributed to the Richmond Food Bank. Local residential homes/day centre residents are frequently invited into the school to enjoy music recitals and other drama/musical events. The school choir also visits local residents. Some of these activities have been curtailed this year due to COVID-19 social distancing rules.

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The Tower House School Charitable Foundation TRUSTEES’ REPORT

for the year ended 31 August 2021

The school hall is made available to local charities such as MacMillan Cancer Care, Members of East Sheen Society (MESS), drama groups who work with children, and also to local musicians for sound recording. A wide variety of afterschool and holiday clubs run throughout the year and are where possible open to children in the local area. These include:-sports, art, pottery, drama, film making.

The governors are continuing to identify ways in which they can make the facilities available to the local community and particularly to under privileged children and groups.

Key Management Personnel

The key management personnel of the school is made up as follows:-

Trustees

Charles Pike

Governors Alex Wilson Nick Woods Andy Sutch Prof. Claire Hogg Brian Giffen Antony Phillips (appointed March 2020)

Senior Management Team (SMT) Gregory Evans - Headmaster Alison Pomfret – Bursar & Clerk to Governors Ben Peyton – Deputy Head Kerry Hogan – Head of Junior School Justin Ryan – Director of Studies

The Trustees and Governors are responsible for the overall management of Tower House School. Governors have the legal responsibility for ensuring that the school complies fully with the law, is solvent and complies with all the financial regulations for charities as well as with Independent School Inspectorate (ISI), and Early Years Foundation Stage (EYFS) regulations. The school should be run in accordance with its charitable objects, including public benefit. Governors set the school's vision, ethos and direction, regularly review the school's performance against targets and monitor the risks to which the charity is exposed. They are responsible for ensuring that proper measures are taken by the school to mitigate all risks, by safer recruitment and child protection, compliance with health and safety and appropriate insurance. They are responsible for the Trustee structure. Governors have a duty to keep in mind the interests of pupils, staff and parents as well as those of the community. The Board of Governors meet formally at least 3 times per year. Governors also have specific responsibilities, such as safeguarding and child protection, special educational needs, health and safety and education. This aids Governors to attain an in depth knowledge of issues affecting the school within their area of responsibility. They can also create links with the relevant staff in school. Governors are welcome and encouraged to visit the school at any time to observe lessons or audit their area of responsibility. Relevant training for governors is promoted and provided. The trustees and governors give their time voluntarily and are not remunerated.

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The Tower House School Charitable Foundation TRUSTEES’ REPORT

for the year ended 31 August 2021

Selection, Appointment, and Induction of Governors

Governors are responsible for the selection, safe recruitment and appointment of new Governors. The aim is to achieve a balanced board, with individuals with an educational, legal, business, financial, property and marketing backgrounds. All Governors complete a selection process, which requires the submission of a CV, a meeting with a senior Governor and a meeting with the Head. Every Governor has an enhanced DBS check. Each appointment is made/ratified by the full Board for period of 3 years. The school arranges for all new governors to receive a thorough induction in child safeguarding and in the compliance and fiduciary duties of governance. New Governors visit the school in order to meet the key personalities and to gain an insight into the curriculum and to meet groups of pupils.

All new Governors receive a briefing pack on appointment that contains:

Management and Remuneration

The day to day management of the school is delegated to the Head, Deputy Head and Bursar, supported by the other members of the Senior Management Team. All members of the Senior Management Team are placed on the appropriate scale point of the Tower House School leadership pay scale, which is derived from the IAPS (Independent Prep Schools Association) Guide to Salaries. The remuneration for the Head and Bursar is reviewed annually by the governing body. The Head and Bursar review the pay for the other members of the SMT annually. Delivery of the School’s charitable vision and purpose is primarily dependent upon key management personnel and as is the case with most schools, staff costs are the largest single element of our charitable expenditure.

Review of Achievements and Performance

The school continues to be a ‘learning community’. Whilst face-to-face professional Learning Teams (PLTs) have needed to be suspended during Covid times, there has been a tremendous amount of sharing good practice – especially with regards to facilitating on-line learning.

The school has invested heavily in further education qualifications studied by staff; these include an MA in Advance Educational Practice (UCL), a Senior Leaders Masters Degree Apprenticeship, (Salford), a Senior Leaders Masters Degree Apprenticeship (Coventry), a Primary Education Foundation Degree (St Mary’s) and a Level 5 Diploma in HR Management, CIPD (Chartered Institute of Personnel and Development).

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The Tower House School Charitable Foundation TRUSTEES’ REPORT for the year ended 31 August 2021

Academic Success

Once again all Year 8 pupils achieved places at their chosen schools. These include both boarding and day schools, in the area and further afield. 100% success rate at Common Entrance. One pupil was awarded an academic scholarship through the ISEB Common Academic Scholarship Exams (CASE).

Sports and Fitness

Sporting achievements have been numerous this year; with excellent results in all three main sports (Football, Rugby and Cricket). Specialist professional sports coaches have continued to be utilised for both Rugby and Cricket, with great success. One of our pupils received the offer of a Sports Scholarship from his chosen senior school.

Music

Music continues to develop under the guidance of a dynamic Director of Music. The Senior Choir now accounts for 80% of the pupils who are eligible to join and they have enjoyed performing for the School community and beyond. The recent addition of strings and woodwind ensembles shows the diversity of musical talents and potential performances. One of our Year 8 pupils was awarded a Music Scholarship by his senior school.

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The Tower House School Charitable Foundation TRUSTEES’ REPORT for the year ended 31 August 2021

The Arts (including the performing arts)

Art continues to flourish. The whole of the Year 8 group completed the Bronze Arts Award – a national qualification administered by Trinity College in association with Arts Council England. The resulting pupil portfolio is equivalent to 40 hours guided learning and 20 hours independent learning – the scheme also involves passing on of acquired skills to others – further supporting our claim to be a truly ‘learning community’.

Drama productions continue to set new standards and this year THS performed a stage production of The Space Race. High standards do not preclude inclusivity – on average, 70% of pupils who are eligible to audition will be given parts in the play. This year one boy in Year 8 was awarded a Drama Scholarship by his chosen senior school.

Negative factors that affected the achievement of objectives and how future plans have been affected:

COVID19

The pandemic has obviously had a huge impact on the School and its operations. Forced closure of the School, cancelled residential trips and a reduced curriculum delivered online to pupils in their homes were just some of the issues faced. A small COVID Committee, comprising Governors and staff members, met at regular intervals throughout the year, able to respond quickly to Government guidance and to keep parents informed about the steps being taken by the School.

The parents were most appreciative of the support given to them by the School throughout Lockdown, not least by the changes to the Spring Term's fees and the provision of a strong educational curriculum which was delivered online to all pupils in their homes. The School did not make use of the Government's job retention scheme this year.

Projected plans for the future:

To improve facilities to both develop the educational experience for pupils and to retain and attract the highest calibre of staff.

Development of the newly acquired site adjacent to the school began at the end of the summer term. The house occupying the site was swiftly demolished and the groundworks have begun. Once completed the new development will provide 4 new state of the art teaching rooms, a multipurpose sports hall/theatre and a much improved playground area. See artist’s impression.

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The Tower House School Charitable Foundation

TRUSTEES’ REPORT

for the year ended 31 August 2021

Fees, Bursaries and Hardship Fund

The fees are inclusive of all residential and curriculum related trips costs and also lunch, to ensure that the highly beneficial trips and excursions are open to all.

To assist the school to attract and retain high calibre staff, we offer a fees discount scheme to staff that enrol their children at our school. The Governors of Tower House School are committed to broadening access to the school by offering to eligible parents/guardians means-tested financial support with the payment of schools fees. Bursaries may be awarded in the form of a discount of up to 100% on tuition fees payable, depending on the financial, compassionate or other pertinent circumstances of applicants. For transparency all applications are assessed by an independent agency who are experienced in administering bursary applications for the independent sector. Bursary awards are subject to repeat testing of parental means each year and may be varied upwards or downwards, depending on parental circumstances, compassionate or other pertinent considerations.

Requests for financial support usually fall into two categories:

• New applicants to the school, where a place has been offered but parents/guardians are unable to fund the tuition fees.

• Existing pupils where a change in parents/guardians’ circumstances has resulted in difficulty in meeting tuition fees and may result in the child being withdrawn part way through a stage of education.

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The Tower House School Charitable Foundation TRUSTEES’ REPORT

for the year ended 31 August 2021

Information provided by the School alerting the parents/guardians of potential pupils to the possibility of gaining means-tested financial support with the payment of schools fees is included in:

Awards 2020-21

Fee reduction for staff with children at Tower House School £ 21,227

Financial support for parents/guardians with children at Tower House School £ 3,327

Total £24,554
COVID-19 Discount £89,031

Principal Risks and Uncertainties

Category Description Control Procedures
Operational COVID-19 Pandemic Working party formed to meet frequently and respond quickly to
Government Guidance.
Full Risk Assessment following ISBA format in place and regularly
reviewed.
Contingency Plan in place for sudden full or part closure.
H & S Officer encouraged to participate in Webinars and training related
to COVID 19 safety precautions.
Proactive communication to whole school community.
Remote learning platform for pupils to continue to study at home.
Support and training provided to teaching staff to assist with delivery of
remote learning.
Hygiene practices communicated to staff and pupils regularly
Regularity and degree of cleaning provision increased.
IT equipment purchased to assist staff working from home.
Staff and Y7-Y8 boys encouraged to take lateral flow tests twice weekly

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The Tower House School Charitable Foundation TRUSTEES’ REPORT for the year ended 31 August 2021

Operational Safeguarding Issue All staff DBS checked, together with strict Safer Recruitment procedures
(Head, Deputy Head, Chair of Governors and Safeguarding Governor all
trained in safe recruitment)
All staff attend Child Protection Level 2 training at least once every 3
years
DSL and Deputy DSL attend Level 3 training course every 2 years
All visitors escorted and badged
Access through front door via intercom
CCTV coverage throughout exterior areas of premises
All unscheduled visitors challenged
Encourage culture of awareness in all site staff, including facilities and
security to challenge children leaving the site.
Lockdown procedures developed and practiced
Whistle blowing procedure
Legal and Regulatory Non-compliance leading Appointment of Compliance Manager to audit current regulatory
to serious inspection compliance and ensure that all processes are adhered to
and press issues Responsibility for all areas of School operations assigned to
individual SMT members
Information sources identified and monitored
Policies and practices regularly updated with rolling reviews
at all school staff meetings
Governors review and agree major changes to regulatory
policies
Competition The opening of a free Maintenance of high standards of curricular and extra-
school or primary curricular provision together with continuous improvement
school in the area of facilities (eg. junior school refurb/extension)
Profile and understand beneficiary needs
Use market place analysis to establish future funding requirements
and/or threats to business
Strategic marketing, publication of the schools excellent ISI Inspection
report, and constant high performance or our boys in all areas of
education; academic, music, sport, drama

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The Tower House School Charitable Foundation TRUSTEES’ REPORT for the year ended 31 August 2021

Operational Cyber Attack/Data Breach The school obtained the Cyber Essentials accreditation last year and has successfully completed the annual renewal and subscription process this year to help mitigate and manage the risk in data protection and the threat of a cyber attack. 5 Controls within the Cyber Essentials Scheme are designed to protect the school against cyber-attacks and guard the internet connection, devices, data and services. The scheme is designed to protect charities against 80% of the most common cyber-attacks which can impact charities of all sizes. Weekly backups of all data are taken and kept offsite as a precaution against data loss/damage.

Financial Revenue and Reserves

The financial statements for the year ended 31 August 2021 are set out in pages 19 to 37 including the Statement of Financial Activities and the Balance Sheet. The Trustees are of the opinion that the balance sheet position is satisfactory.

The principal funding source is the parents of the children it educates. All income of the school is applied for educational purposes, in line with its Objectives.

During the year income amounted to £2,770,641 (2020 £2,735,599), an increase of 1.3%. Expenditure this year amounted to £2,430,013 (2020 £2,406,293), an increase of 0.98%, which has enabled the School to continue to provide the high level of education to pupils, and to continue to provide the excellent extra-curricular activities that are included in the tuition fees and therefore available to all, e.g. educational residential trips to support the learning of; French, Geography, History, Science, Sport and personal development/confidence building.

After taking into account unrealized capital gains in the Trustees’ investment portfolio of £578,691 (2020 loss of £62,059) overall the charity made a surplus of £919,319 (2020 £267,247) which will be used to fund future capital works and maintain and develop the School’s buildings, to ensure the School can continue to operate at full of near full capacity for the foreseeable future. At the end of August 2021 £1.3m value of the investment portfolio was liquidated in preparation of meeting the construction costs of the 190 Sheen Lane Development.

Teachers Pension Scheme

Despite the huge increase in the employers contribution rate from September 2019 the school continues to be a member of the Teachers Pension Scheme (TPS). As yet, none of the schools immediate competitors have pulled out and moved to an alternative scheme. Membership of the TPS is still viewed as a strong recruitment tool. The Governors are monitoring the sector closely as the move for schools to withdraw from the scheme gains momentum.

Page 10

The Tower House School Charitable Foundation TRUSTEES’ REPORT for the year ended 31 August 2021

Reserves Policy

Primarily reserves are held to enable the continuity of services and activities that we undertake.

Reserves are held for the following reasons:

In considering the level of reserves that should be held, we test the policy level against various scenarios to ensure adequate levels of reserves are held. The Trustees review what an adequate level of reserves is regularly. Currently set level of free reserves at £500k

Investment Policy

The School has an investment portfolio managed by one of the UK’s leading investment managers; Rathbones Investment Management. Surplus funds are transferred to expand the portfolio when sufficient funds have accrued in the schools bank account to warrant a long term approach to investment. The objectives of the School’s investment policy are to ensure the creation of sufficient income and capital growth to enable funds to be used for the continued improvement of education of children and major capital projects, such as the development of the recently acquired 190 Sheen Lane site. The current valuation of these funds is £2,006,658 (2020 £2,659,575). Investment Income for this year is £58,146 (2020 £76,152). £46,340 is held in the cash account awaiting suitable investment. The investments have performed soundly this year, and the Board are confident that the School can expect a positive return on the money invested over the anticipated period of investment. The Board reviews the portfolio regularly and the investment manager is invited to present to the Board annually.

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The Tower House School Charitable Foundation TRUSTEES’ REPORT for the year ended 31 August 2021

Annex 1 CAT4 results for Years 4,5 &6 (2020-2021) compared against national average.

Achieved scores shifted markedly to the right of national average ‘bell curve’.

Year 4

Page 12

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The Tower House School Charitable Foundation

TRUSTEES’ REPORT

for the year ended 31 August 2020

Trustees responsibilities’ statement

The Trustees (who are also Directors of Tower House School for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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.

Disclosure of information to auditors

In so far as the Trustees are aware:

This report has been prepared in accordance with the provisions applicable to companies entitled to small companies exemption.

On behalf of the board

C Pike Trustee Date: 15 November 2021

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The Tower House School Charitable Foundation TRUSTEES’ REPORT

for the year ended 31 August 2020

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE TOWER HOUSE SCHOOL CHARITABLE FOUNDATION

Opinion

We have audited the financial statements of The Tower House School Charitable Foundation (‘the company’) for the year ended 31 August 2021 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the 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,

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The Tower House School Charitable Foundation TRUSTEES’ REPORT

for the year ended 31 August 2020

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 there is 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.

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the trustees’ annual report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters where 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.

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The Tower House School Charitable Foundation TRUSTEES’ REPORT

for the year ended 31 August 2020

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charitable company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, 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.

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The Tower House School Charitable Foundation TRUSTEES’ REPORT

for the year ended 31 August 2020

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Shivani Kothari (Senior Statutory Auditor)

for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Date: 18 January 2022

Devonshire House 60 Goswell Road London, EC1M 7AD

Page 18

The Tower House School Charitable Foundation

STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure statement) for the year ended 31 August 2021

Notes
INCOME FROM:
Charitable Activities
School fees
3
Other educational income
4
Investments
Investment Income
5
Voluntary sources
Grants and donations
6
Total income and endowments
EXPENDITURE ON:
Costs of raising funds
7
Investment Management
Interest and other costs
Charitable activities
7
Education
Total expenditure
7
Net operating income/(expenditure)
Net gain/(loss) on investments
12
Net income/(expenditure)
Transfer between funds
Net movement in funds
Fund balances brought forward
Fund balances carried forward
17		 Unrestricted
£
2,637,986
37,611
58,146
9,211
2,742,954
27,569
14,337
2,366,420
2,408,326
334,628
578,691
913,319
-
913,319
5,431,496
6,344,815		 Restricted
funds
£
-
21,687
-
6,000		 Total
2021
£
2,637,986
59,298
58,146
15,211
2,770,641
27,569
14,337
2,388,107
2,430,013
340,628
578,691
919,319
-
919,319
5,431,496
6,350,815		 Total
2020
£
2,563,318
46,548
76,152
49,581
27,687 2,735,599
-
-
21,687		 23,238
22,382
2,360,673
21,687 2,406,293
6,000
-		 329,306
(62,059)
6,000
-		 267,247
-
6,000
-		 267,247
5,164,249
6,000 5,431,496

The statement of financial activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared.

All of the above amounts relate to continuing activities.

The accompanying notes form part of these financial statements.

Page 19

The Tower House School Charitable Foundation

BALANCE SHEET

as at 31 August 2021

Notes
FIXED ASSETS
Tangible assets
11
Investments
12
CURRENT ASSETS
Debtors
13
Cash at bank and in hand
CREDITORS: Amounts falling due within one year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS:Amounts falling due after more than one year
15
NET ASSETS
FUNDS
Restricted funds
17
Unrestricted funds
17		 2021
£
4,388,610
2,006,658
6,395,268
61,663
2,288,517
2,350,180
(821,349)
1,528,831
7,924,099
(1,573,284)
6,350,815
6,000
6,344,815
6,350,815		 2020
£
4,022,513
2,659,575
6,682,088
51,995
936,907
988,902
(596,023)
392,879
7,074,967
(1,643,471)
5,431,496
13,800
5,417,696
5,431,496

Approved and authorised for issue by the Board of Governors on 15 November 2021 and signed on their behalf by:

Charles Pike Chairman of the Board of Governors

The accompanying notes form part of these financial statements. Company Number: 03345004

Page 20

The Tower House School Charitable Foundation

CASHFLOW STATEMENT for the year ended 31 August 2021

CASH FLOW STATEMENT
Notes
Net cash inflow from operating activities
22
Cash flows from investing activities:
Bank interest received
Dividends received
Interest paid
Proceeds from sale of investments
Payments to acquire fixed assets
Payments to acquire investments
Net cash outflow from investing activities
Financing:
Loans repaid
Net cash outflow from financing activities
Increase/(decrease) in cash
beginning of the reporting period
end of the reporting period
Cash and cash equivalents at the
Cash and cash equivalents at the		 2021
£
597,580
6,203
51,943
(14,337)
2,625,345
(432,339)
(1,393,738)
843,077
(89,047)
(89,047)
1,351,610
936,907
2,288,517		 2020
£
264,302
18,267
57,885
(22,382)
382,556
(155,161)
(462,263)
(181,098)
(83,803)
(83,803)
(599)
937,506
936,907

Page 21

The Tower House School Charitable Foundation ACCOUNTING POLICIES for the year ended 31 August 2021

1 ACCOUNTING POLICIES

The Tower House School Charitable Foundation is a company limited by guarantee with registered number 03345004, incorporated and domiciled in England and Wales. Its registered office is 188 Sheen Lane, East Sheen, London, SW14 8LF.

1.1 BASIS OF PREPARATION

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charitable Company is a public benefit entity for the purposes of FRS 102 and therefore the Charity also prepared its financial statements in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound.

These financial statements are prepared on the going concern basis, under the historical cost convention as modified by the revaluation of investments and in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom. The principal accounting policies, which have been applied consistently throughout the year, are set out below.

1.2 GOING CONCERN

The financial statements are prepared on a going concern basis which assumes the school will continue in operation for the foreseeable future. The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements.

The school is dependent on students applying to it and on parents to pay their fees. Long term forecasting of student numbers is difficult but work continues to raise the profile of the school and to maintain and enhance relationships with parents, feeder schools and nurseries and destination schools. In particular the governors have considered the forecasts and projections and have taken account of pressures on fee income, particularly in the light of the impact of the COVID-19 pandemic. After making enquiries the governors have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in the preparation of the financial statements.

1.3 COMPANY LIMITED BY GUARANTEE

The charitable company is limited by guarantee. In the event of the charitable company being wound up the liability in respect of the guarantee is limited to £10 per member of the charity.

Page 22

The Tower House School Charitable Foundation ACCOUNTING POLICIES for the year ended 31 August 2021

1.4 INCOME RECOGNITION

All incoming resources are included in the Statement of Financial Activities (SoFA) when the Charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within the scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective method and dividend and rent income is recognised as the Charity's right to receive payment is established. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the Bank.

School Fees are recognised within income when they become due. Fees are charged on a termly basis. Fees raised in advance are deferred until the School becomes entitled to the funds.

In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised. Refer to Trustees' report for more information about their contribution.

Income tax recoverable in relation to donation received under Gift Aid or deeds of covenant is recognised at the time of donation.

Income from government or other grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grant have been met, it is probable the income will be received and the amount can be reliably measured.

1.5 DONATIONS

Donations received for the general purposes of the school are included as unrestricted funds. Donations restricted by the wishes of the donor or the terms of an appeal are taken to restricted funds.

1.6 EXPENDITURE

All Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Expenditure is categorised under Expenditure on charitable activities, which includes all costs incurred on furthering objects of the Charity.

Support costs are those costs incurred directly in support of expenditure on the objects of the Charity and include project management carried out at the School.

Charitable activities and Governance costs are costs incurred on the Charity's educational operations, including support costs and costs relating to the governance costs incurred on the Charity's educational operations, including support costs relating to the governance of the Charity apportioned to charitable activities.

1.7 FUND ACCOUNTING

the general objectives of the charity. Designated funds are unrestricted funds earmarked by the governors for particular purposes. Restricted funds are subjected to restrictions on their expenditure imposed by the donor.

1.8 FIXED ASSETS AND DEPRECIATION

All fixed assets are used in direct furtherance of the school’s objectives. Fixed assets are included in these financial statements at their original cost less depreciation and accumulated impairment losses provided to date. Assets over £1,000 are capitalised.

Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the costs less estimated residual value of each asset, by equal annual instalments, over their expected useful lives which are considered to be:

Freehold property 2% on reducing balance Fixtures and fittings 20% on reducing balance

Page 23

The Tower House School Charitable Foundation ACCOUNTING POLICIES for the year ended 31 August 2021

1.09 PENSIONS

The charity contributes to three pension schemes: the Teacher's Pension Scheme, the National Employment Savings Trust and Independent Schools Pension Scheme.

Retirement benefits to employees of the Charity are provided by the Teacher's Pension Scheme ("TPS") and the Independent Schools' Pension Scheme. These are defined benefit schemes and the assets and liabilities are held separately from those of the Charity. Defined contributions retirement benefits to the employees of the Charity are also provided under the National Employment Savings Trust.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of the pensions over employee's working lives with the Charity in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a prospective unit credit method. As stated in Note 19, the TPS is a multi employer scheme and there is insufficient information available to use defined benefit accounting. The TPS is therefore treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period in which they relate.

The Charity participates in the Independent School's Pension Scheme (Note 19). Included in the scheme is an employer's debt which would become payable if the Charity left the scheme and this is explained in Note 19. As a multi-employer scheme within the definitions of FRS 102, none of the assets or liabilities of the scheme are included on the Charity's Balance Sheet. The pension charge represents amounts payable by the Charity to each scheme in respect of the year. Contributions are expensed as they become payable.

1.10 LEASES

Rentals paid under operating leases are charged to the Statement of Financial Activities evenly over the period of the lease.

1.11 INVESTMENTS

The charity has equity investments in listed entities. Investments are valued in the balance sheet at their midmarket value at the balance sheet date. Investment management costs are accounted for as incidental costs of the acquisition or disposal where transaction-based, while investment income management costs are charged as expenditure out of the relevant income funds. All gains and losses are taken to the Statement of Financial Activities as they arise.

1.12 CASH AND CASH EQUIVALENTS

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

Page 24

The Tower House School Charitable Foundation ACCOUNTING POLICIES for the year ended 31 August 2021

1.13 FINANCIAL INSTRUMENTS

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. See notes 9, 11 and 12 for the debtor and creditor notes.

1.14 TAXATION

The company is a registered charity and is exempt from taxation as afforded by Section 505 ICTA 1988.

1.15 EMPLOYEE BENEFITS

The costs of short-term employee benefits are recognised as a liability and an expense.

2 KEY ESTIMATES & JUDGEMENTS

In the application of the company's accounting policies, the Council is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

In the opinion of the board, the estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Critical judgements

Useful economic lives

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 15 for the carrying amount of the property, plant and equipment and note 1.10 for the useful economic lives for each class of asset.

Recoverable value of fee debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 15 for the net carrying amount of the debtors and associated impairment provision.

Deficit pension scheme

The net present value of the calculation for the pension deficit has been based on an estimated percentage based on potential future events.

Page 25

The Tower House School Charitable Foundation

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

3 FEE INCOME
The School’s activities are carried out within the UK.
The school's fee income comprised:
Gross fees
Less: Scholarships, bursaries and discounts
Less: Covid-19 discount
4 OTHER EDUCATIONAL INCOME
Extras and disbursements
Registration fees
Retained deposits
Other income
5 INVESTMENT INCOME
Interest received
Dividend income
6 DONATIONS AND GRANTS
Donations and gifts
Furlough income		 2021
£
2,751,571
(24,554)
(89,031)
2,637,986
2021
£
-
5,100
24,516
29,682
59,298
2021
£
6,203
51,943
58,146
2021
£
6,000
9,211
15,211		 2020
£
2,817,559
(23,036)
(231,205)
2,563,318
2020
£
3,570
5,000
9,000
28,978
46,548
2020
£
18,267
57,885
76,152
2020
£
1,000
48,581
49,581

Included within the above is an amount of £6,000 (2020: £12,800) which relates to restricted income.

Page 26

The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

7 EXPENDITURE
(a)
Costs of Raising Funds
Investment Management Fees
Finance Costs
Total Costs of Raising Funds
Charitable expenditure
Teaching
Welfare
Premises and Estates
Administration
Governance
Total Charitable Expenditure
Total Expended		 £
-
-
-
£
1,384,343
-
-
477,142
-
1,861,485
1,861,485
Staff costs
(note 8)
Staff costs
(note 8)		 Other
£
27,569
14,337		 Depreciation
£
-
-
-
Depreciation
£
-
-
66,241
-
-
66,241
66,241		 Total
2021
£
27,569
14,337
41,906 41,906
Other
£
126,594
137,853
108,061
69,049
18,824		 Total
2021
£
1,510,937
137,853
174,302
546,191
18,824
460,381 2,388,107
502,287 2,430,013

Included within Staff Costs is an amount of £2,679 (2020: £19,387) relating to restricted expenditure.

Prior year
Costs of Raising Funds
Investment Management Fees
Finance
Total Costs of Raising Funds
Charitable expenditure
Teaching
Welfare
Premises and Estates
Administration
Governance
Total Charitable Expenditure
Total Expended		 £
-
-
-
£
1,357,374
-
-
494,229
-
1,851,603
1,851,603
Staff costs
(note 8)
Staff costs
(note 8)		 Other
£
23,238
22,382		 Depreciation
£
-
-
-
Depreciation
£
-
-
65,319
-
-
65,319
65,319		 Total
2020
£
23,238
22,382
45,620 45,620
Other
£
118,659
122,431
110,337
74,460
17,864		 Total
2020
£
1,476,033
122,431
175,656
568,689
17,864
443,751 2,360,673
489,371 2,406,293

Page 27

The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

7 EXPENDITURE (continued)
(b)
Other Governance Costs include:
Auditors' remuneration
- Audit Fees
- under provision from previous year
- Accountancy Fees
- Other Auditors remuneration
(c)
Administration Costs
Salaries
National Insurance
Pension Costs
Staff Training
Staff travel
Operating Leases
IT support
Postage and stationery
Telephones
Marketing and advertising
Memberships
Inspection costs
Legal and Professional Fees
Other Administration Costs
Bank charges and interest
8 STAFF COSTS
Wages and salaries
Social security costs
Other pension costs
Other staff costs
The average monthly number of employees during the year was as follows:
Teaching
Welfare
Support		 2021
£
12,595
2,814
3,192
223
2021
£
394,843
34,618
36,267
11,414
257
8,519
19,340
7,216
5,014
17,040
4,010
2,291
3,636
732
994
546,191
2021
£
1,410,576
149,926
275,060
25,923
1,861,485
2021
No.
20
1
17
38		 2020
£
11,700
2,310
2,474
1,380
2020
£
418,887
38,148
32,837
4,357
837
4,064
22,068
9,921
7,053
15,715
5,147
3,483
4,541
491
1,140
568,689
2020
£
1,422,418
144,612
261,277
23,296
1,851,603
2020
No.
22
1
14
37

Page 28

The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

8 STAFF COSTS (continued)

£60,000 in the year was as follows:
£70,001 - £80,000
£100,001 - £110,00
The number of employees		 2021
No.
2
1
3		 2020
No.
2
1
3

Pension contributions for the year amounted to £42,929 (2020: £58,945) for the above employees.

Key management personnel include the Governors and the senior executives which are made up of the head, the bursar and the deputy heads. The total pay and benefits received by key management personnel were £491,833 (2020: £490,582).

9 GOVERNORS REMUNERATION AND EXPENSES

There were no Governors' remuneration or other benefits for the year ended 31 August 2021 nor for the year ended 31 August 2020.

No governors were reimbursed any expenditure in the year (2020: £Nil).

10 NET INCOME FOR THE YEAR

NET INCOME FOR THE YEAR
2021 2020
£ £
Net income is stated after charging:
Depreciation of tangible fixed assets 66,241 65,319
Loan Interest 14,337 22,382
Operating lease rentals – other 25,137 23,651
Auditor’s remuneration
Audit services for the school- current year 12,595 11,700
Audit services for the school- prior year under provision 2,814 2,310
Non-audit services 3,415 3,854

Page 29

The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

11 TANGIBLE FIXED ASSETS

Cost:
At 1 September 2020
Additions
At 31 August 2021
Depreciation:
At 1 September 2020
Charge for year
At 31 August 2021
Net book value:
At 31 August 2021
At 1 September 2020		 Assets under
Construction
£
223,387
264,946
488,333
-
-
-
488,333
223,387		 Freehold
Property
£
3,949,558
135,000		 Fixtures &
Fittings &
Motor Vehicles
£
897,568
32,393
929,961
772,979
31,397
804,376
125,585
124,589		 Total
£
5,070,513
432,339
4,084,558 5,502,852
275,021
34,845		 1,048,000
66,242
309,866 1,114,242
3,774,692 4,388,610
3,674,537 4,022,513

The freehold property was formerly held at market value, following a professional revaluation performed on 24 August 2011 by Bonsor Penningtons. The Trustees have elected to preserve this value under the transitional provisions to FRS102. In the Trustees opinion, the net book value of the property is indicative of the market value as at 31 August 2020. The property's deemed cost will no longer be subject to revaluation.

Within the cost of freehold property is land totalling £2,135,000 (2020:£2,000,000) which is not depreciated.

Page 30

The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

12 INVESTMENTS
Cost/valuation At 1 September 2020
Additions
Disposal proceeds
Gains/(Losses) arising on investments
Cost/valuation At 31 August 2021
Overseas fixed interest
UK equities
International equities
Property
Alternative assets
Historical Cost
13 DEBTORS
Fees and extras
Other debtors
Prepayments and accrued income
14 CREDITORS
Amounts falling due within one year:
Bank loan
Trade creditors
Taxation and social security costs
Fee Deposits
Fees in advance
Other creditors
Accruals
Deferred income:
Brought forwards
Released in year
Received in year
Carried forwards		 Listed
investments
£
2,659,575
1,393,738
(2,625,345)
578,691		 2021
£
2,659,575
1,393,738
(2,625,345)
578,691
2,006,658
-
221,924
861,647
72,044
851,043
2,006,658
2,239,540
2021
£
12,947
3,304
45,412
61,663
2021
£
81,821
199,898
41,468
20,500
400,749
30,284
46,629
821,349
2021
£
369,185
(369,185)
400,749
400,749		 2020
£
2,641,927
462,263
(382,556)
(62,059)
2,006,658 2,659,575
-
221,924
861,647
72,044
851,043		 23,870
364,103
1,060,528
73,134
1,127,940
2,006,658
1,458,852		 2,649,575
2,239,540
2020
£
6,837
549
44,609
51,995
2020
£
79,315
16,275
45,048
28,740
369,185
29,217
28,243
596,023
2020
£
445,499
(445,499)
369,185
369,185

Deferred income relates to schools fees received in advance for the following term.

Page 31

The Tower House School Charitable Foundation

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

15 CREDITORS DUE AFTER ONE YEAR
Amounts falling due after more than one year:
Bank loan
Other creditors
School fee deposits
Movement on loans
In one year or less
Between one and two years
Between two and five years
After five years
Movement on deposits:
In one year or less
Between one and two years		 2021
£
1,288,595
36,070
248,619
1,573,284
2021
£
81,821
81,821
245,464
961,308
1,370,416
2021
£
20,500
248,619
269,119		 2020
£
1,380,150
34,061
229,260
1,643,471
2020
£
79,315
79,315
237,944
1,062,892
1,459,465
2020
£
28,740
229,260
258,000

The bank loans provided to the Charity by NatWest Bank Plc are secured by a fixed and floating charge over the assets of the Charity, including the properties at 28 Sheen Gate Gardens, 188 Sheen Lane and 190 Sheen Lane, London. The loan is to be repaid over 20 years from 17 February 2017 and interest charges at 1.75% above the base rate on an offset basis.

16 FINANCIAL INSTRUMENTS

2021 2020
£ £
Carrying amount of financial assets
Financial assets measured at fair value through profit and loss 2,006,658
 2,659,575
Debt instruments at amortised cost 61,663
 21,675
Carrying amount of financial liabilities
Measured at amortised cost 1,957,814
 228,338

Page 32

The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

17 STATEMENT OF FUNDS

STATEMENT OF FUNDS
Unrestricted funds:
General reserve
Restricted funds:
190 project
Extra learning support
Total restricted
Total funds
Unrestricted funds:
General reserve
Restricted funds:
190 Project
Extra learning support
Total restricted
Total funds		 £
5,417,696
13,800
-
At 1
September
2020		 Income
£
2,742,954
6,000
21,687
27,687
2,770,641
Income
£
2,715,212
1,000
19,387
20,387
2,735,599		 Expenditure
£
(2,408,326)
-
(21,687)		 Gains/
(losses)
& transfers
£
578,691
-
-
-
578,691
Gains/
(losses)
£
(62,059)
-
-
-
(62,059)		 £
6,331,015
19,800
-
At 31 August
2021
13,800 (21,687) 19,800
5,431,496 (2,430,013) 6,350,815
£
5,151,449
12,800
-
At 1
September
2019		 Expenditure
£
(2,386,906)
-
(19,387)		 £
5,417,696
13,800
-
At 31 August
2020
12,800 (19,387) 13,800
5,164,249 (2,406,293) 5,431,496

Restricted funds

190 Project - these relate to donations received for the 190 project. Extra learning support - grant funding for extra learning support

Page 33

The Tower House School Charitable Foundation

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

18 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets
Investments
Current assets
Current liabilities
Long term liabilities
Total net assets
Tangible fixed assets
Investments
Current assets
Current liabilities
Long term liabilities
Total net assets		 Unrestricted
funds
£
4,388,610
2,006,658
2,336,380
(821,349)
(1,573,284)		 Restricted
funds
£
-
-
13,800
-
-
13,800
Restricted
funds
£
-
-
13,800
-
-
13,800		 2021
Total
£
4,388,610
2,006,658
2,350,180
(821,349)
(1,573,284)
6,337,015 6,350,815
Unrestricted
funds
£
4,022,513
2,659,575
975,102
(596,023)
(1,643,471)		 2020
Total
£
4,022,513
2,659,575
988,902
(596,023)
(1,643,471)
5,417,696 5,431,496

19 COMMITMENTS UNDER OPERATING LEASES

At 31 August 2021, the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Due within one year
Due between two and five years		 2021
Office
equipment
24,380
65,869
90,248		 2020
Office
equipment
21,927
62,603
84,530

20 RELATED PARTIES

There were no related party transaction during the year. In the prior year, the school used the services of Sutch a Good Idea Ltd for first aid training which was the wife of Andy Sutch, one of the governors. The total payment was £4,320.

21 CONTINGENT LIABILITY

In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.

Page 34

The Tower House School Charitable Foundation

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

22 NOTES TO THE CASHFLOW STATEMENT

Reconciliation of operating result to net cash inflow from
operating activities
Net movement in funds
(Gains)/loss on investments
Depreciation
Bank interest received
Dividends received
Interest payable
Increase/(Decrease) in creditors
(Increase)/Decrease in debtors
Analysis of changes in net debt
At 1
September
2020
Cash and cash equivalents
Cash
936,907
Overdrafts
-
Cash Equivalents
-
936,907
Borrowings
Debt due within one year
(79,315)
Debt due after one year
(1,380,150)
(1,459,465)
Total
(522,558)		 Cash flows
1,351,610
-
-		 2021
£
919,319
(578,691)
66,241
(6,203)
(51,943)
14,337
244,188
(9,668)
597,580
Other non-
cash
changes
-
-
-
-
(2,506)
2,506
-
-		 2020
£
267,247
62,059
65,319
(18,267)
(57,885)
22,382
(80,921)
4,368
264,302
At 31 August
2021
2,288,517
-
-
1,351,610
-
89,049		 2,288,517
(81,821)
(1,288,595)
89,049 (1,370,416)
1,440,659 918,101

23 CAPITAL COMMITMENTS

There were capital commitments of £1,948,683 at the year end (2020: nil)

Page 35

The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

24 PENSION COMMITMENTS

The charity contributes to three pension schemes: The Teacher's Pension Schemes ("TPS"), the Independent Schools Pension Scheme ("ISPS") and the National Employment Savings Trust ("NEST").

Teachers' Pension Scheme

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £275,060 (2020: £228,440) and at the yearend £27,780 (2020 - £27,423) 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 most recent actuarial valuation of the TPS was prepared as 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.

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. The consultation closed to response on 19 August 2021 and the Government is currently analysing the responses.

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.

Until the cost cap mechanism review 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.

Page 36

The Tower House School Charitable Foundation

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

Independent School's Pension

Tower house school limited participates in the ISPS. The ISPS is a multi-employer defined (DB) scheme. The scheme is funded and is contracted out the state scheme.

There are four DBS structures available, namely:

Final salary with a 1/60th accrual rate Final salary with a 1/80th accrual rate Career average revalued earnings with a 1/80th accrual rate Career average revalued earnings with a 1/120th accrual rate

A defined contribution (DC) benefit structure was made available from 1 September 2013.

An employer can elect to operate different benefit structures for different categories of staff.

Tower House School has elected to operate a Final Salary 1/60th accrual rate benefit scheme for Category A members as at 31 August 2017.

The Trustee commissions an actuarial valuation of the Scheme every three years. The main purpose of the valuation is to determine the financial position of the scheme in order to determine the level of future contributions required so that the Scheme can meet its pension obligations as they fall due.

The actuarial valuation assesses whether the Scheme's assets at the valuation date are likely to be sufficient to pay the pension benefits accrued by members as at the valuation . Asset values are calculated by reference to market levels. Accrued pension benefits are value by discounting expected future benefit payments using a discount rate calculated by reference to the expected future investment returns.

During the accounting period the Charity paid a joint contribution rate of 27.3% comprising employer contributions of 20.9% and members contributions of 6.4%.

As at the Balance Sheet date, there was 1 active member of the Scheme. The charity continues to offer membership of the Scheme to its employees.

It is not possible in the normal course of events to identify on a consistent and reasonable basis the share of underlying assets and liabilities belonging to individual participating employers. This is because the scheme is a multi-employer scheme where the Scheme assets are co-mingled for investment purposes and benefits are paid from the total Scheme assets. Accordingly due to the nature of the Scheme, the accounting charge for the period under section 28 of FRS 102 represents the employer contribution payable.

The pension charge in the period amounted to £18,663 (2019: £14,354). The pension cost charge represents the contributions payable by the Charity to the Funds in respect of the year. At year end, there were outstanding contributions of £nil (2019: £nil). The last formal valuation of the Scheme was performed at 30 September 2017 by a professionally qualified actuary using the Projected Unit Method. The market value of the Scheme's assets at the valuation date was £110.0 million. The valuation revealed a shortfall of assets compared with the value of liabilities of £37.4million, equivalent to a past service funding level of 75%.

In 2019, the Charity was notified by the Pensions Trust of the estimated employer debt on withdrawal from the LISPS Plan based in the financial position of the Plan as at 30 September 2017. As of this date the estimated employer debt was £272,000. The Charity has also been notified that additional contributions of £3,406 + 3% p.a. will be payable for 13 years from 1 September 2019 in order to eliminate the deficit in the Plan. In accordance with the Charity's accounting policy, this expenditure has been recognised in the accounts.

National Employment Savings Trust

During the year, the Charity made contributions to defined contribution schemes of £17,604 ( 2020: £14,174) to the National Employment Savings Trust ("NEST")

The amount of pension outstanding at year end is £2,104 (2020: £1,794).

Page 37

The Tower House School Charitable Foundation

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021 NOT TO BE FILED - DETAILED INCOME BREAKDOWN

2021 2020
£ £ £ £
Income
Standard fees 2,751,571 2,817,559
Bursaries 3,327 15,357
Staff Discounts 110,258 238,884
(113,585) (254,241)
2,637,986 2,563,318
Extras and Disbursements - 3,570
2,637,986 2,566,888
Other Operating Income
Registration Fees 5,100 5,000
Fees in Lieu of Notice 24,516 9,000
Sundry / other 29,682 28,978
59,298 42,978
Incoming resources from generated funds:
Donations and Grants 15,211 49,581
Investment income 58,146 76,152
Total Incoming Resources 2,770,641 2,735,599

Page 38

The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021 NOT TO BE FILLED - DETAILED EXPENDITURE BREAKDOWN

Teaching Costs
Salaries
National Insurance
Pension Costs
Other Staff Costs
Trip expenditure
Classroom expenditure
Activities
Recruitment Costs
Other Teaching
Welfare Costs
Catering Contracts
Laundry and Cleaning Costs
Premises and Estates Costs
Maintenance
Rates
Utilities
Insurance
Health and Safety
Motor expenses
Depreciation
Other Premises		 2021
£
1,015,733
115,308
238,793
12,361
35,312
58,391
21,692
2,148
11,199
1,510,937
2021
£
109,084
28,769
137,853
2021
£
10,857
22,797
30,333
23,587
4,292
12,751
66,241
2,799
174,302		 2020
£
1,003,531
106,464
228,440
10,524
23,710
52,990
31,848
8,415
10,111
1,476,033
2020
£
100,837
21,594
122,431
2020
£
11,634
22,974
25,657
21,401
7,175
12,164
65,319
9,332
175,656

Page 39

The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021 NOT TO BE FILLED - DETAILED EXPENDITURE BREAKDOWN

Administration Costs
Salaries
National Insurance
Pension Costs
Staff Training
Staff travel
Operating Leases
IT support
Postage and stationery
Telephones
Marketing and advertising
Memberships
Inspection costs
Legal and Professional Fees
Other Administration Costs
Bank charges and interest
Trading Costs
Loan Interest
Investment Management Costs
Governance Costs
Audit
Accountancy
Other Auditors Remuneration
Total Costs of Charitable Activities		 2021
£
394,843
34,618
36,267
11,414
257
8,519
19,340
7,216
5,014
17,040
4,010
2,291
3,636
732
994
546,191
2021
£
14,337
27,569		 2020
£
418,887
38,148
32,837
4,357
837
4,064
22,068
9,921
7,053
15,715
5,147
3,483
4,541
491
1,140
568,689
2020
£
22,382
23,238
41,906 -
45,620
2021
£
15,409
3,192
223
18,824		 2020
£
14,010
2,474
1,380
17,864
2,430,013 2,406,293

Page 40