The Tower House School Charitable Foundation IA Company Limited by Guarantee) Incorporated in England and Wales No. 03345004 Registered Charlty No. 1068844 GOVERNORS. REPORT AND FINANCIAL STATEMENTS For the year ended 31 August 2023 The Tower House School Charitable Foundation CONTENTS for the year ended 31 Au ust 2023 Page )vernors' Rewrt Auditors. Réport 17-21 Statement of Financial Activities 22 Balan￿ Sheet 23 Cash Flow Slal8ment 24 Notes to the Financial Statements 25-40 The Tower House School Charitable Foundation TRUSTEES REPORT for the year ended 31 August 2023 Trustees C Pike Mr A Phillips Governor8 Antony Phillips ICOGI Andy SJt¢h Prof. Claire Hogg Brian Gilfen Tom Hill Sarah Field (Safeguarding) Peter M8rr appoinléd 15 Novèmber 2022 appoint8d 15 Nov8mb8r 2022 appointed 15 March 2023 Headma8tsr- N Lunnon appointed 01 September 2023 Bursar & Cl•t* to Governors: H ￿1 8PP0117t8d 30 J8nuary 2023 Company registered number- 03345004 Charlty reg15tsred number- 1068844 Reglster6d Office= 188 Sheen Lane East Sheen London SW14 8LF Bankers.. National Westminster Bank 341 Upper Richmond Road Wesl East Sheen London SW14 8QP Auditors.. Moor8 Kingston Smith LLP 9 Appold Street Fknor6 London EC2A 2AP Rathbone Brolhers PIC 8 Finsbury Circus London EC2M 7AZ P¥9e 1 The Tower House School Charitable Foundation TRUSTEES. REPORT Icontinuedl for the year ended 31 August 2023 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 Stste system. We are a mixed ability school and we aim for the highest quality of acadernic tuition and the development of wider sporting, a￿stiC, musical, and social skills in all our PLJpils. We offer an environment where each pupil can develop and fulfil his polenlial, in order lo help build Self-confiden￿ and inculcate a lifelong desire to contribute to the wider community- Objectives are sel up in accordan￿ with the whole school developrnenl plan. The Foundation has continued seeking to act as a good citizen in the local community and elsewhere. The school maintsins a close liaison be￿een parentslguardians, teachers, the governing b￿Y as well as other loc81 charitieslorg8nisalions that can benefit from the school's 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. Ongoing and future objectives of the school are lo:_ Maintain the schools, same high level of academic performance and sports achievements with the present 10..1 pupillteacher ratio. Ensuring all leavers attend their senior schools of choice. Expand the leaching of Performing Arts and extend performances and opportunity to participate to the wider community. Maintain the expertise of leaching stsff, with succession-planning and continual professional developrllent staff professional development through externally provided courses and by professional learning teams set up 'in house,. Continue to develop and resource the Special Educational Needs Department to ensure the appropriate level of support for both the talented and gifted and those with specific leaming difficulties. To embed a scheme of work which addresses the pupils, wellbeing. Such a scheme to be integrated into the PSHE curriculum and its effi¢8cy measured using a pupil survey in due course. To embed a full and comprehensive Relationships and Sex Edu¢alion IRSEI curriculum. Consultsts'on with parents of the same and feedback acted upon. Staff and boys lo receive awareness training of equality and diversity aspects- stsff also lo receive awareness training on unconscious bias. To further expand the PSHE provision by increasing the number of timetabled slots per week. This will allow deeper studyldis¢ussion of the lopi¢s already in the scheme and also allow for the introduction of new topics such as economic literacy. Further develop the extensive Residential Trip Programme allowing pupils lo experience different lifestyles and traditions, to face challenges and lo see how in the future they may be able lo contribute lo the different aspects of society. P482 The Tower House School Charitable Foundation TRUSTEES. REPORT Icontinuedl for the year ended 31 August 2023 Further develop liaison with environmentsl agencies lo enable voluntary work lo be carried out in the community. Facililale wider Community access lo the sch(x)I's facilities and stsff expertise. Fully explore the possibility of Tower House teachers sharing their skills and expertlse with local state sector schools. Continue lo develop and resource the Sports Department, and extend the opportunity for boys lo experience a wide range of Spotts and Physical Development. To invest heavily in swimming tuition for the younger age groups by ulilising the new purpose- built training pool which has been built locally. To further invest in Assessment strategies for Senior School and Junior School- these should include an investment in online assessment rllodels leading lo slandardized scores for national comparison. Please see Annex 1 for CAT4 results for Years 4 & 6 120231 Further inc￿sSe the numbers of boys leaming musical instruments and parti¢ipaling in ensembles - including specialist ensembles such as Woodwind,. This year over 100 boys participated in extracurricular music lessons, ensembles and groups. The Governors are mindful of the need lo 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 conslrainls affecting the school, and resources1fa￿lI1leS available. As part of the education of ils 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 inlemational charities which in the past year has raised a combined figure of £8,121 distributed to the following charities. Parkinsons Ruth Strauss RSPCA Sealife Trust lergy UK Heartbeat In addition to the various fund-raising activities the school organises, the older boys also enjoy a close relationship with various environmenial agencies, particularly The Friends of Palewell Common and The Friends of Richmond Park. In the autumn term food baskets are distributed to the Richmond Food Bank. Local residential homeslday centre residents are frequently invited into the school to enjoy music recitals and P483 The Tower House School Charitable Foundation TRUSTEES. REPORT Icontinuedl for the year ended 31 August 2023 other dramalrnusical events. The school hall is made available to local charities such as Members of East Sheen Society IMESSI, East Sheen Choir groups and to a local nursery to hold their Nativity play. A wide variety of afterschool and holiday dubs run throughout the year and are where possible open to children in the local area. These include.'- sports, art, pottery, drama, film making. The govemors are Continuing to identify ways in which they can make the facilities available lo the local community and parb'¢ularly lo under privil￿ed children and groups. The Govemors are looking fO￿ard to letting out the new multipurpose hall lo groups within the community, on completed. Key Management Personnel The key msnagemenl personnel of the school are made up as follows'.- Trustees Chartes Pike Antony Phillips (appointed 20161221 Govemors Andy Sulch Prof. Claire Hogg Brian Giffen Antony Phillips lappoinled 20161221 Tom Hill Sarah Field Peter Marr lappointed 151031231 Senior Mana emenl Team SMT Neil Lunnon- Headmaster (from 011091231 Gregory Evans- Headmaster Ilo 311081231 Huma Ali- Bursar & Clerk to Governors (from 301011231 Alison Pomfret- Bursar & Clerk to Govemors Ito 291011231 Ben Peyton - Deputy Head Kerry Hogan- Head of Junior School Edmund Orme- 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 wlh Independent School Inspectorate IISII, and Early Years Foundation Stage IEYFSI regulations. The school should be run in accordance with its chariiable objects, including public benefil. Govemors sel the school's vision, ethos, and direction, regularfy review the school's performan¢e against tsrgets and monitor the risks lo which the Charity is exposed. They are responsible for ensuring that proper measures are taken by the school to mitigate all risks, by The Tower House School Charitable Foundation TRUSTEES. REPORT Icontinuedl for the year ended 31 August 2023 safer recruitment and Child protection, Compliance with health and safety and appropriate insLJrance. They are responsible for the Trustee structure. Govemors have a duty to keep in mind the interests of pupils, stsff 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, education, and inclusion. This aids Governors lo attain an in-depth knowledge of issues affecting Ihe school within Iheir area of responsibility. They can also create links wilh the relevanl staff in school. Governors are welcome and encouraged lo visit the school al any time to observe lessons or audit their area of responsibility. Relevant training for governors is promoted and provided. The trustees and govemors give their lime voluntsrily and are not remunerated. Selection, Appointment, and Induction of Governors Governors are responsible for the selection, safe recruitment, and appointment of new Governors. The aim is lo achieve a balanced board, with individuals with an educational, legal, business, financial, property and marketing backgrounds. All Governors complete a selection pro￿$$, which requires Ihe 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 madelratified by the full Board for period of 3 years. The school arranges for all new govemors to re￿1ve 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 lo meet groups of pupils. All new Govemors receive a briefing pack on appointment that ¢ontsins= The Governing Instrument List of fellow Governors and their contact details Dates of meetings for the ensuing year Minutes of most recent meetings AGBISIISC 'Guidelines for Governors" School staff list The School Development Plan The School's Risk Register The School's Conflict of Interest Policy The School Calendar and list of functions A list of School poli¢ies The most recent school accounts ststement of governor responsibilities Conflicts of interest policy Staff handbook School prospectus Declaration of interest form Declaration of eligibility form P485 The Tower House School Charitable Foundation TRUSTEES. REPORT Icontinuedl for the year ended 31 August 2023 Management and Remunaration The day-lo-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 Ilndependenl 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 ¢haritsble vision 8nd purpose is prirnarily 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 Perfomiance ISI Focused Compliance and Educational Quality Inspection June 2023 the school is extremely proud to have secured EXCELLENT in all parts of the Inspection and rated EXCELLENT overall. The school has invested heavily in further education qualifications studied by staff., these include an MA in Advance Educational Practice IUCLI, a Senior Leaders Masters Degree Apprenticeship, Isalfordl, a Senior Leaders Masters Degree Apprenticeship Icoventryl, a Primary Education Foundation Degree ISI Mary's) and a Level 5 Diploma in HR Management, CIPD (Chartered Institute of Personnel and Developmenll. The Tower House School Charitable Foundation TRUSTEES, REPORT (continued} for the year ended 31 August 2023 Academic uccess Once again, all Year 8 pupils achieved pla￿$ al their ¢hosen schools. These include both boarding and day schools, in the area and further afield. 100 /0 success rate al Common Entrance. Five pupils were awarded scholarships by his chosen senior school13 sports, 1 music. 1 drama). DESTINATION SCHOOLS- SEPTEMBER 2023 SCHOOL Wellington College Reed's School Brighton College London Oratory Cranleigh School Wellington College St Edward's Oxford Reed's School Hampton School St Edward's Oxford Hampton School Harnpton School Epsom College Radley College Bradfield College Harrodian School Wellington College Hampton School Abingdon School SCHOLARSHIPS Sports Scholarship Music Scholarship Sports Scholarship Sports Scholarship Drama Scholarship Total of 53 offers to 11 different schools for this cohort of 19 boys. The Tower House School Charitable Foundation TRusfEES' REPORT {continuedl for the year ended 31 August 2023 THS Destination Schools 2017-2023 /// . /// Secondary Schools 2017 •2018 D2019 •2020 •2021 •2022 •2023 THS Destination Schools 2019-2023 //•///,// Secondary Schools 2019 •2020 •2021 12022 •2023 The Tower House School Charitable Foundation TRUSTEES. REPORT {continuedl for the year ended 31 August 2023 S orts 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 lo be ulilised for both Rugby and Cricket, with great success. A biennial cricket lour lo Barbados serves lo provide a fantastic experience lo Tower House pupils, whilst also opportunity to donate cricketing equipment to their hosts. Three of our pupils received the offer of a Sports Scholarship from his chosen senior school. Music Music continues lo develop under the guidance of a dynamic Director of Music. The Senior Choir now accounts for 800/0 of the pupils who are eligible lo join and they have enjoyed perforrning for the School community and beyond. The re￿nI addition of a guitar ensemble shows the diversity of musical talents and potential performances. One of our Year 8 pupils was awarded a Music Scholarship by his senior school. The Arts includin the erformin arts Art throughout the school is in rude health. There is an inclusive exhibition every year wth a variety of age groups represented. There is 8 newly formed, bul prolific, pottery club- all cer8mic art works are fired in the school's own kiln. Drama productions continue lo sel new standards and this year THS performed a brilliant production of Braveheart. High standards do not preclude inclusivity - on average, 800/D 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. Pro ecled lans for the future.. To appoint a sU￿sS0r to Gregory Evans as Head of Tower House School. The Governors appointed Neill Lunnon as incoming Head for September 2023. To improve facilities to both develop the educational experience for pupils and to relain 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 2021. Now fully completed the new development provides 4 new state of the art teaching rooms, a multipurpose sports halllthealre and a much-improved playground area. Plans to develop and repurpose vacated spaces in 188 Sheen Lane. There are plans lo inorease access to ICT. Music Technology and Scien￿, as well as increase the size of the school library. The Tower House School Charitable Foundation TRUSTEES. REPORT Icontinuedl for the year ended 31 August 2023 Fees, Bursaries and Hardship Fund The fees are inclusive of all residential and curriculum related trips costs and also lunch, lo ensure that the highly beneficial trips and excursions are open lo all. To assist the school to attract and retain high calibre staff, we offer a fees discount scheme to staff that enrol their children al our school. The Govemors of Tower House School are committed to broadening ac￿SS to the school by offering to eligible parentslguardians means-tested financial support with the payment of school's fees. Bursaries may be awarded in the form of a discount of up to 1 OOYO on tuition fees payable, depending on the financial, compassionate, or other pertinent circumstan￿S 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 SLJbjert to repeat testing of parentsl means each year and may be varied upwards or downwards, depending on parentsl circurllstances, compassionate or other pertinent considerations. Requests for financial support usually fall into two ¢alegories= New applicants lo the sch(x)I, where a place has been offered bul parentslguardians are unable to fund the luilion fees. Existing pupils where a change in parenlslguardians, circumstances has resulted in difficulty in meeting tuition fees and may result in the child being withdrawn part way through a stsge of education. Information provided by the schc()l alerting the parenlslgu8rdians of poten1181 pupils lo the possibility of gaining means-lested financial support with the payment of school's fees is included in.. The school proS￿¢tus. The school website. The local press by means of advertisements. Aw rd 2022-2 Fee reduction for stsff with children at Tower House School £24,701 Financial support for parentslguardians with children al Tow8r House School £8,384 Total £33,085 PaBB 10 The Tower House School Charitable Foundation TRUSTEES. REPORT {continuedl for the year ended 31 August 2023 Principal Risks and Uncertainties Descri i?on ConlrolPro¢edures Operational Safeguarding Issue All staff DBS chethed, {￿ether wilh strict Safer Recruilmenl procedures (Head, Deputy H8ad. Chairof Governors and Safeguarding Governor all trained i safer ￿t[U11mentj All staff attend Child Protection Level 2 training at least once every 3 years DSL and D8PUty DSL att8nd Lav813 training couise ev8ry 2 years All visitors escorted and badged Access through Ironl door via intercom CCTV coverage throughout exterior areas of premises All unscheduled visitors challenged Encourage culture ol awareness in all sile staff, including facilities and security lo cha118nge childr8n188ving the site. Lockdown procedures developed and practiced Whistle blowing pra￿dUre Legal and Regulatory Non-compliance leading to serious inspection and press issueg Dedicated Compliance Manager lo audit current iegulaloiy Complian￿ and ensure that all processes are adhered to Responsiiwlilylor411 areas olschool operations 8$5igned lo i￿l￿dual SMT members Information 8our¢es identified and monitored Poliaes and practi￿ regularfy updated with rdling rewews al all sch￿1 staff M￿ing8 Governorfs review and agree major changes to iegul8lw Policies each temi. Competition The opening of a fre8 school or primary schod In the ar83 Mainten8noe of high sland8rds of curricular and exlr8- curricular provision together with continuous improvement olfaciliti8s18.9. 4 n&w classroom and multipurpose hall) Profile and understand teneficiary needs Use MaTketpla￿ tnalysis lo establish futhie funding iequiiemenls andl threats lo business Strategic marketing, publicab'on of the schocls excellent ISI Inspection rewrt. and constsnt high performanGe or our ￿y5 in all 8reas of education,. 8cJdemiG, music, sport, drama P89e 11 The Tower House School Charitable Foundation TRUSTEES, REPORT Icontinuedl for the year ended 31 August 2023 perat￿n8 er Breath The school, On￿ again, h8s suwessfully wrnpleled Ihe 8nnu31 renew81 and subscription prLKess forthe CfftrEssenlials accredilalion. To help mitigate and manage the risk in data protecbon and the threat ola cyber attack. 5 controls within th8 CyberEss8ntials Sch8me ar8 d8sign8d to piolect th8 schoo against cyb8r-attacks and guaid the int8rnel connection, d8VIC85, dats, and setViC8s. Th8 scheme is designed lo protect chtriti8s against 80% 01 the most common cyber-allacks, which can impact charities ol all sizes. 88kly backups olall d8ts ar8 18k8n, 8ncrypled, and k8Pt offsite 8$ a pr8cauti( against data lossldamage. Finanual Global Economic Fo￿$ The euimt eeonomic downtown and in¢￿ase In ihe Cost ol energy, due in the most p8rt lo the war in Ukraine. has created an addition31 risk for the %hool. as il has lo most areas ol life. The general cost ol living crisis could affect pupil numbets and the school's operational costs, The school has taken steps lo maintain pupil numbers by appointing a Marketing and Communications Manager,. and the school has fixed energy tariffs 81 an affordable level. The Governors regularly review the 8ff8cliv&n8ss ol cuirent plans and 5trat8gi8s lor managing all Id8nlified major risks via The Risk Register. The management ol risk and Ihe flexibility ol the school lo react was Iried and lesled successfully. during the recenl Pandemic. The Governors have a policy ol ensuring the school has sullicienl reserves lo wilhsland a severe downturn in income. The Governors believe that on this basis the School can continue lo meet ils on going obligations and liabili118s loi th8 1018S88ab18 future and Is therefore a going concein. Pap 12 The Tower House School Charitable Foundation TRUSTEES. REPORT Icontinuedl for the year ended 31 August 2023 Financial Revenua and Raservas The finanryal ststements for the year ended 31 August 2023 are set out in the the pages following this report. Induding the Slalemenl 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 ils Objectives. During the year income smounted lo £2,935,539 12022 £2,982,277), a de¢rease of 1.50/0. Expenditure this year amounted to £2,875,10212022 £2,568,693), an increase of 11.9°1o, which has enabled the School to continue lo provide the high level of education lo pupils, and lo continue lo provide the excellent extra-curricular activities that are included in the luilion fees and therefore available lo all, e.g. educational residential trips lo support the learning of." French, Geography, History, Saence, Sport and personal developmenuconfidence building. After taking into account unrealized capital losses in the Trustees, investment portfolio of £16,271 12022 £219,159) overall the charity made a surplus of £42,28812022 £194,425) 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 al full of near full capacity for the foreseeable future. Teachers Penslon Scheme Despite the huge increase in the employerfs contribution rate from September 2019 the school continues lo be a member of the Teachers, Pension Scheme ITPSI- As yet, none of the school's immediate competitors have pulled out and moved to an allemative scheme. Membership of the TPS is still viewed as a strong recruitment tool. The Govemors are monitoring the sector closely as the move for schools to withdraw from the scheme gains momentum. Reserves Pollcy Primarily reserves are held lo enable the continuity of services and activities that we undertake. Reserves are held for the following reasons.. to handle any sudden reduction in income to handle fluclualions in the market value of the investment portfolio to cover for other key risks cryslalizing resulting in unplanned expenditure to lake advantage of unexpected opportunities In considering the level of reserves that should be held, we test the policy level against various scenarios lo ensure adequate levels of reserves are held. The Ttuslees review what an adequate level of reserves is regularfy. Currently set level of free reserves at £500k. At the year end the Sch¢x)I held £6,542,84812022 £6,545,240) in unreslricled reserves. PBgB 13 The Tower House School Charitable Foundation TRUSTEES. REPORT Icontinuedl for the year ended 31 August 2023 Invgstment 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 sGhool's bank account lo warrant a long-lerm approach to investment. The objectives of the school's investment policy are to ensure the creation of sufficient income and capital growth lo enable funds lo 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 sile. The current valuation of these funds is £835,56212022 £827,404). Investment Income for this year is £12,98212022 £42,8921- The Board reviews the portfolio regulady and the investment manager is invited lo present lo the Board annu811y. PBgB 14 The Tower House School Charitable Foundation TRUSTEES, REPORT Icontinuedl for the year ended 31 August 2023 Annex 1: Achieved scores shifted markedly to the right of national average'bell curve.. CAT4 results for THS pupils120221 compared against national average. Yoar 412023} DIBtrtbutlon of ¥Gor•sfor yourgroup comparnd wlth th0￿ fortho rMllonal Bampl• 45% 40% 35% 25 a)% 15% io% s% 74 7U1 97-103 I1￿126 ?126 ￿￿9ver4￿* Year 6 {20231 ¥trfibulJon foryourgroup ¢omp•rgd wllh thv•for th• Th•￿￿n￿l ¥•rnpl• 40% 30% 20% 10% <74 74-81 97-103 1￿111 I1￿126 >126 The Tower House School Charitable Foundation TRUSTEES, REPORT {continued) for the year ended 31 August 2023 Trustees responsibilities. statement The Trustees (who are also Directors of Tower House School for the purposes of company lawl 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 finanual slalements for each finan￿al year. Under that law the trustees have elected lo prepare the financial statements in acwrdance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accountir@ Standards and applicable lawl- Under company law the trustees must not approve the finanaal statements unless they are sats"sfied that they give a true and fair view of the stale of affairs of the wmpany and of the profil or loss of the company for that period. In preparing these financial statements, the directors are required to.. select suitable accounting policies and then apply them consistenuy.. make judgements and accounting eslimales that are reasonabl8 and prudent,. state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements., prepare the financial ststemenls on the going con￿rn basis unless il is inappropriate lo presume that the company will continue in business. The Irustees are responsible for keeping adequate a¢counting records that are sufficient to show and explain the companls transactions and disclose with reasonable accuracy al 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 hen￿ for taking re850nable steps for the prevention and detection of fraud and other irregularities. Disclosure of information to auditors In so far as the Trustees are aware.. there is no relevant audit infomalion of which the charity's auditors a￿ unaware., and the Trustees have taken all steps that they ought lo have taken lo make themselves 8ware of any relevant audit information and to establish that the auditors are aware of that information. This report has been prepared in accordance with the provisions applicable to companies entided to small companies exemption. On behalf of the board A Phillips Trustee Dale.. The Tower House School Charitable Foundation INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE TOWER HOUSE SCHOOL CHARITABLE FOUNDATION for the year ended 31 AugLJSt 2023 Opinion We have audited the finanual slalements of The Tower House School Charitable Foundation I'the company'l for the year ended 31 August 2023 which comprise the Statement of Financial Aclivilies, the Summary Income and Expenditure Account, the Balan￿ Sheet, the Cash Flow Ststemenl and notes lo the financial slalements, 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 Praclicel. In our opinion the financial slalements.. give a true and fair view of the stale of the charitable company s affairs as at 31 August 2023 and of its incoming resources and application of reSoUr￿s, including its incorne and expenditure, for the year then ended- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the audit of the financial slalements section of our report. We are independent of the charitsble company in accordan￿ 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 eviden￿ we have obtsined 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 Iruslees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we hsve 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 lo continue as a going concern for a period of al least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going ¢on¢ern 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 slalements does not cover the other infomialion and, except lo the extent olherwse expliciuy slated in our report, we do not express any PBgB 17 The Tower House School Charitable Foundation INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE TOWER HOUSE SCHOOL CHARITABLE FOUNDATION (continued) for the year ended 31 August 2023 fomi of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other infomation is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears lo be materially misstated. If we identify such material inconsistencies or apparent malerial misstslements. we are required to determine whether Ihere is a material misslalement 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. Oplnlons on other matters prescrlbed by tho Companles 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 slalemenls are prepared is consislenl 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 understsnding of the company and ils environment obtsined 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.. adequate accounting records have not been kept, or retums adequate for our audit have not been received from branches not visited by us., or the financial stat&menls are not in agreement with the a￿OUntIng records and returns,. or rtain disclosures of trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit. or the trustees were not entitled to prepare the finanaal statements in accordance with the small companies regime and lake advantage of the small companies exemption in preparing the Iruslees, annual report and from preparing a strategic report. Responslbllltles of twstees As explained more fully in the trustees, responsibilities slalement, the trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial ststements 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 51aterNenls that are free from material misslaterllenl, whether due to fraud or error. In preparing the financial slalements, the trustees a￿ responsible for assessing the Charitable company s ability lo continue as a going concern, disclosing, as appli¢able, matters related to going concem and using the going con￿rn basis of accounting unless the trustees either intend lo liquidate PBgB 18 The Tower House School Charitable Foundation INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE TOWER HOUSE SCHOOL CHARITABLE FOUNDATION Icontinuedl for the year ended 31 August 2023 the charitable wmpany or to cease operations, or have no re81islic altem8tive but lo do so. Auditor's Responsibilities for the audit of the financial statements Our objectives are lo obtain reasonable assurance about whether the financial slalements as a whole are free from material misslatemenl, whether due lo fraud or error, and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audil conducted in accordan￿ with ISAS IUKI will always detecl a material misstatement when it exists. Misslalements 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 finanaal ststemenls. As part of an audit in accordance with ISAS IUKI we exercise professional judgement and maintain professional $￿pIle1$M throughout the audit. We also.. Identify and assess the risks of material misstslement of the financial ststements, whether due to fraud or error, design and perform audit procedures responsive lo those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a rnalerial misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentstions, or the override of internal control. Obtain an understanding of internal control relevant lo the audit in order lo design audit procedures that are appropriate in the circumstances, bul not for the purposes of expressing an opinion on the effectiveness of the charitsble company's internal control. Evaluate the appropriateness of accounting pdicies used and the reasonableness of accounting estimates and related disdosures made by the Iruslees. 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 lo events or conditions that may cast significant doubl on the charitable company s ability to continue as 8 going cOn￿rn. If we conclude that a material uncertainly exists, we are required lo draw attention in our auditor's report to the related disclosures in the financial statements or, rf 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, futLJre events or conditions may cause the charitable company lo cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial ststements, including the disclosures, and whether the financial siatements represent the underfying 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 deficienryes in internal control that we identify during our audit. PBgB 1 The Tower House School Charitable Foundation INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE TOWER HOUSE SCHOOL CHARITABLE FOUNDATION Icontinuedl for the year ended 31 August 2023 Explanatlon as to what extent the audlt was consldered capable of detectlng Irregularltles. including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design prO￿dureS in line with our respon5ibililies, outlined above, lo delect material mi5slalements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detsiled below. The objectives of our audit in respect of fraud, are., lo identify and assess the risks of material misstatement of the financial statements due lo fraud,. to obtsin sufficient appropriate 8udil evidence regarding the assessed risks of material misstatement due lo fraud, through designing and implementing appropriate responses lo those assessed risks,. and lo ￿Spond appropriately lo 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 govemance of the charitable company. Our approach was as follows.. We obtained an understanding of the legal and regulatory requirements applicable lo the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standard5 as Issued by the Financial Reporting Council We obtsined an understanding of how the Charitable wmpany Complies with these requirements by discussions with management and those charged with g0veman￿. We assessed the risk of material misstatement of the financial stalements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance. We inquired of management and those charged with govemance as lo any known inslan¢8s of non-compliance or suspected non-compliance with laws and regulations. Based on this understanding, we designed specific appropriate audit procedures to identify instan￿S of non-compliance with laws and regulations. This included making enquiries of management and those Charged with governance and obtaining additional corroborative evidence as required. There are inherent limitations in the audit prO￿dureS described above. We are less likely lo become aware of instances of non-compliance with laws and regulations that are not closely related lo events and transactions reflected in the financial slalemenls. Also, the risk of not delecling a material misslalement due lo fraud is higher than the risk of not delecling one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresenlalions, or through collusion. P¥9p20 The Tower House School Charitable Foundation INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE TOWER HOUSE SCHOOL CHARITABLE FOUNDATION {continued) for the year ended 31 August 2023 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 slate lo the company s members those mallers we are required lo state to them in an auditor's report and for no other purpose. To the fullest exlenl permitted by law, we do not accept or assume resFX)nsibilily to any party other than the charitable company and charitsble company's members as a body, for our audit work, for this report, or for the opinions we have formed. Shivani Kothari (Senior Statutory Audilorl for and on behalf of Moore Kingston Smith LLP, Statutory Auditor 6th Floor 9 Appold Street London EC2A 2AP PaBB 21 The Tower House School Charitable Foundation STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure statement) for the ear ended 31 Au ust 2023 Unrestrieted Restricted funds Totsl 2023 Total 2022 Notes INCOME FROM: Charltable ActlvStles School fees Other education81 income Other income Other trading income Investments Investment Income Voluntary sources Grants and donations 2.802,816 4fj,616 2.802,816 70,699 2,762,653 96,839 24,083 4,362 4,362 12,982 12,982 42,892 44,680 44,680 79,893 Total income and endowments 2,866,776 68,763 2.935,539 2,982,277 EXPENDITURE ON.. Costs of raising funds Investment Management Interest and other costs 6,061 28,136 6,061 28,136 12,759 17,139 Charitable activities Education 2,816,822 24,083 2.840,905 2,538,795 Total expendlture 2,851,019 24,083 2.875,102 2,568,693 Net operating incomellexpenditurel 15,757 44,680 60,437 413,584 Pension Provision change Other Profit or Loss on sale ol assetslproperty Net gainlllossl on investments 12 11,8781 11.8781 16,271 219.159 Net incomellexpenditurel 12,3921 44,680 42,288 194,425 Transfer between funds Nat movamant in funds 12,3921 44,680 42,288 194,425 Fund balances brought forward 6,545,240 6.545,240 6 350815 Fund balances carried forward 17 6,542,848 44,680 6,587,528 6,545,240 The stalernent of financial activities includes all gains and losses in the year and therefore a slalement of total recognised gains and losse5 has not been prepared. All of the above amounts relate to continuing activities. The accompanying notes form part of these financial statements. Page 22 The Tower House School Charitable Foundation BALANCE SHEET as at 31 August 2023 Notes 2023 2022 £ £ FIXED ASSETS Tangible assets 11 7,062,458 6,390,411 Investments 12 835,562 827,404 7,898,020 7,217,815 CURRENT ASSETS Debtors 13 130,142 57,978 Cash at bank and in hand 778,480 1,580,178 908,622 1,638,156 CREDITORS: Amounts falling due within one year 14 (802,135) (863,699) NET CURRENT ASSETS 106,487 774,457 TOTAL ASSETS ASSETS LESS CURRENT LIABILITIES 8,004,507 7,992,272 CREDITORS: Amounts falling due after more than one year (1,416,979) (1,447,032) NET ASSETS 6,587,528 6,545,240 FUNDS Restricted funds 44,680 - Unrestricted funds 6,542,848 6,545,240 6,587,528 6,545,240 Approved and authorised for issue by the the Board of Governors on 2 24 and signed on their behalf FIXED ASSETS Tangible assets Investments TOTAL ASSETS ASSETS LESS CURRENT LIABILITIES CREDITORS: Amounts falling due after more than one year Approved and authorised for issue by the the Board of Governors on 2 by: Antony Phillips Chairman of the Board of Governors The accompanying notes form part of these financial statements Company Number: 03345004 Page 23 The Tower House School Charitable Foundation CASHFLOW STATEMENT for the ear ended 31 Au ust 2023 CASH FLOW STATEMENT Notes 2023 2022 Net cash inflow from operating activities 22 100,643 464,386 Cash flows from investing activities.. Bank interest received Dividends received Interest paid Proceeds from sale of investments Paytnents to acquire fixed assets Payments to acquire investments 4,500 8,482 128,1361 1,118,667 1789.1091 11,143,096) 406 42,486 117.1391 1,369.728 12.066,0261 1409.6331 Net cash outflow from investing activities 828 692 1080 178 Financing.. Loans repaid 173,6491 192,5471 Net cash tsutflow from financing activities Increaselldecreasel in cash 1801,6981 1708,3391 Cash and cash equivalents at the beginning of the reporting period 1.580,178 2,288,517 Cash and cash equivalents at the end of the reporting period 778,480 1,580,178 Page 24 The Tower House School Charitable Foundation ACCOUNTING POLICIES for the ear ended 31 Au ust 2023 1 ACCOUNTING POLICIES The Tower House School Chariiable Foundation is a company limited by guarantee with registered number 03345004, incorporat8d and domici18d in England and Wales. Its r8gistgr8d offic8 is 188 She8n 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 IFRS 1021. The Charitable Gompany is a public benefit entity for the purposes of FRS 102 and therefore the Charity also prepared its financial statements in accordanee with the Statement of Recommended Practice applicable io charities preparing their accounts in accordance with the Fin8nci81 Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORPI, the Companies Act 2006 and the Charities Act 2011. The financial statements are prepared in steding, which is the functional eLJrreney of the chaiity. Monetary amounts in these financial staternenis are rounded to the nearest pound. These financial statemenls are prepared on the going con￿rn basis, under the historical cost convention as modified by the revaluation of investments and in accordance with the Gompanies Act 2006 and applicable accounting standards in the United Kingdom. The principal accounting policies, whieh have been applied consistently throuohout the year, are set out below. 1.2 GOING CONCERN The financial statements are prepared on a going ctsncem basis which assumes the sd)ool will continue in operation for the foreseeable future. The trustees have assessed whether the use ol the going concern assumption is appropriate in preparing these Iinancial ststements. The trustees have m8de 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 applwng lo it and on parents lo pay their fees. Long term forecasting of student numbers is difficult but work continues to raise the profile of the school and tts maintain and enhan relationships with parents, feeder schools and nurseries and destination schwls. In particular the governors have considered the forecasts and projections and have tsken account of pressures on fee income, particularly in the light of the current economic uncertainty. After making enquiries the governors have concluded that there is a reasonable expectation that the charity has adequate resources to continue in oper8tion81 existence for the foresee8bl8 futur8. A¢¢r)rdingly, they continue lo adopt the going ¢c)ncern 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 ol the charity. Page 25 The Tower House School Charitable Foundation ACCOUNTING POLICIES for the ear ended 31 Au ust 2023 1.4 INCOME RECOGNITION AJI incoming resources are included in the Statement of Financial Activities ISOFAI when Ihe Charity is legally entitled to the income after any performance conditions have been mel, the arnounl can be measured reliably and it is probable that the income will be received. Investment income is earned through holding assets for investrnent purposes such as shares and property. It includes dividends and interest. Wh8r8 It is not practicabl8 to id8ntify inv8Stment m8nag8ment costs incLJrr8d thin 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 divid8nd and rent inc0rn8 is r8cognised as the Charit¢s right to r8e8iV8 payment IS 8Stablished. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Gharily.. this is normally upon notification of the interest paid or payable by the Bank. School Fees are recognised within incorme when they become due. Fees are charged on a termly b85is. Fees raised in advance are deferred until the School becomes entitled to the funds. In accordance wilh the Charities SORP IFRS 1021, the general volunteer tirne of the Friends is not r8cogni58d. R8f8r to Trust8es' r8POrt for mor8 information about th8ir contribution. Income tax recoverable in relation to donation received under Gift Aid or deeds of covenant is recognised at the time of donation. Incorne from government or other grants is recognised when the charity has entiuement 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 Al Expenditure Is accoLJnted 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 construciive obligation to make paym8nts lo third parties. il is probable that th9 S8tt18m8nt will b8 required and th8 arllount of the obligatic>n can be measured reliably. Expenditure is categorised under ExpenditLJre on charitable activities, which includes all costs incurred on furthering objects of the Charity. Support wsts are thos9 costs incurred dir8Ctly 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 Charitys educational operations, including support costs and costs r8lating to the gov8rnanc8 costs incurred on th8 Chariws educab.onal operations, including support costs relating to the governance of the Charity apportioned to charitable activities. 1.7 FUND ACCOUNTING I funds are unrestricted funds which are available lor use at the discretion of the trustees in furtherance of the general objectives of the charity. Designated funds are unrestricted funds earmarked by the governors for particular purpos85. R8Strict8d funds are subjected to restrictions on their expenditure imposed by the donor. 1.8 FIXED ASSETS AND DEPRECIATION AJI fixed assets are used in direct furtherance of the school's objectives. Fixed assets are included in these financial statements at th8ir original cost 18ss d8pr8Clation and accumulated impairm8nt Ioss8s providad 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 propety Fixtures and fittings 2°A on reducing balance 20Yo on reducing balance Page 26 The Tower House School Charitable Foundation ACCOUNTING POLICIES for the ear ended 31 Au ust 2023 1.09 PENSIONS The charity contributes to three pension schemes.. the Teacherfs 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 I'TPS") and the Independent Schools, Pension Scheme. These are defined benelil schemes and the assets and liabilities are held separ81ely from those of the Charity. Defined contributions r8lir8ment benefits to the emplo)y8es of the Charity are also provided under the National Employment Sawngs Trust. The TPS is an unfunded scheme and contributions are Calculated so as to spread the eost of the pensions over employee's working lives with the Charity in such a way that the pension cost is a subsiantially 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 Irealed as 8 defined contribution scheme for accounting purposes and the contributions recognised in the period in which they relate. The Charity participat8s in the Ind8P8nd8nt School's Pension Schem8 (Not8 191. Includ8d in th8 sch8m8 is an employer's debt which would become payable il 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 Renta15 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 81 their mid- market value at the balance sheet date. Investment management costs are accounted for as incidentsl costs of the acquisition or disposal where transaction-based, while investment income management costs are harged as expenditure out of the relevant income funds. All gains and losses are taken to the Ststement 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 IKiuid investments with original maturities of three months or less. Page 27 The Tower House School Charitable Foundation ACCOUNTING POLICIES for the ear ended 31 Au ust 2023 1.13 FINANCIAL INSTRUMENTS The Company has elerted to apply the provisions of Section 11 'B8sic Fin8nci81 Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 tts all of its financial instruments. Financial instruments are recognised in the companys balance sheet when the company becornes party to the contractual provisions of the instrum8nt. Financial assets and liabiliti8s ar8 offs8t, with th8 net atnounts pr8s8nted in th8 financial statements, when there is a legally enforceable right to set off the recognised amounis and there is an intention to settle on a net b85is or to realise the asset and settle the liability simult8neousty. With the excepts'ons of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. See notes 13, 14 and 15 for the debtor and creditor ntstes. 1.14 TAXATION The company is a registered charity and is exempl from taxation as afforded by Section 505 ICTA 1988. 1.15 EMPLOYEE BENEFITS The wsts of short-term employee benefits 8re recognised as 8 liability and an expens&. 2 KEY ESTIMATES & JUDGEMENTS In the application tsf the compantys aceounting policies, the Ctsuncil 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 estim8tes and 85soci8led assumptions are based on historic81 experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underfyng assumptions are reviewed on an on-going basis. Revisions lo accounting estimatès ale ￿OgnISed in the period in which the estimate is rèvisèd, 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 adjusknent to the Carr￿ng amount of assets and liabilities are outlined below. Critical judg•monts Useful economic lives The annual depreciation charge for property, plant and equipment is sensltive to ¢hanges 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 advancemènt, future investments, econornic utilisation and the physical ¢(>ndition ol the assets. See note 11 for the carrying amount ol the property, plant and equipment and note 1.8 for Ihe useful economic lives for each ¢lass of asset. Recoverable value of fee debtors The company makes an estimate of the recover8ble value of trade and other debtors. When assessing impaim)ent of trade and other debtors, management considers factors including the current credit rating of the debtor. Ihe ageing profile of debtors and historical experience. See note 13 for the net carrying amount of the debtors and associat8d impairm8nt provision. DefiGilpensNon sch8m8 The net present value ol the calculation lor the pension deficit has been based on an estimated percentage based on potential futur8 ev8nts. Investments Included in investrnents are judgements made on the value of property and altemalive assets. Page 28 The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the ear ended 31 Au ust 2023 3 FEE INCOME The School's activities are carried out within the UK. The school's fee income comprised.. 2023 2022 Gross fees Less.. Scholarships, bursaries and discounts 2,835,901 {33,0851 2,798,126 135,4731 2.802,816 2,762,653 4 OTHER EDUCATIONAL INCOME 2023 2022 Extras and disbursements Registration fees Retsined deposts Other income 4,020 6,100 29,319 31,260 4,280 6.700 52,302 33,557 70,699 96,839 Included wthin the abov8 is an atnount of £24,08312022.. £24,036) which r81at85 to r8Stricted income. 5 INVESTMENT INCOME 2023 2022 Interest received Dividend income 4,500 8,482 406 42,486 12,982 42,892 6 DONATIONS AND GRANTS 2023 2022 Donations and gifts 44,680 79,893 44,680 79,893 Included wlhin the above is an amount of £44.68012022.. £79.8931 which relates to restricted income. Page 29 The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the ear ended 31 Au ust 2023 7 EXPENDITURE (al Costs of Raising Funds Staff costs Inote 81 Total 2023 Other Depreciation Investment Management Fees Finance Gosts 6,061 28,136 6,061 28,136 Total Costs of Raising Funds 34,197 34,197 Charltable expendlture staff costs Inote 81 Total 2023 Other Depreciation Teaching Welfare Premises and Eststes Administration Governance 1,512,717 165,600 207,464 177,383 124,266 20,899 1,678,317 207,464 292,567 641,658 20,899 115,184 517,392 Total Charltablè Expendlturè 2,030,109 695,612 115,184 2,840,905 Total Expended 2,030,109 729,809 115,184 2,87S,102 Included wthin Staff Costs is an amount of £24,08312022." £24,036) relating to restricted expenditure. Prior year Costs of Raising Funds Staff costs Inote 81 Total Other Depreciation 2022 Inv8Stm8nt Management F88S Finance 12,759 17,139 12,759 17,139 Total Costs of Ralslng Funds 29.898 29,898 Charltable expendlture staff costs Inote 81 Total 2022 Other Depreciation Teaching Welfare Premises and Estates Administration Governance 1.420,112 171.530 172,024 110.305 82,809 19,980 1,591,642 172,024 174,530 580,619 19,980 64.225 497,810 Total Charitable Expenditure 1.917,922 556.648 64.225 2,538,795 Total Expended 1.917,922 586,546 64.225 2,568,693 Page 30 The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the ear ended 31 Au ust 2023 7 EXPENDITURE Icontinuedl Ibl Other Governance Costs Include: 2023 2022 Auditors, ramunaration - Audit Fees under provision from previous year - AccoLJntancy Fees 16,100 2,149 2,650 14,808 3,192 2023 2022 (¢1 Administration Costs Salaries National Insurance Pension Costs Staff Training Staff travel Operating Leases IT sUPPOrt Postage and station8ry Telephones Marketing and advertising Memberships Inspection costs Legal and Professional Fees Other Administration Cosis Bank charges and inter851 443,679 39,452 27,228 7,033 460 8,518 31,020 8,390 7,197 42,932 6,286 5,075 12,150 1,184 1,054 416,978 39,276 37,535 4,021 1.147 9.288 26,349 8,096 7,256 12,622 7,018 4,679 3.198 2,001 1,155 641,658 580.619 8 STAFF COSTS 2023 2022 Wages and salaries Social security costs Other pension costs Other stsff costs 1.495,883 161.636 273,076 99,514 1,430,178 161,420 285.739 40,585 2030 109 1917922 The average monthly number of employees during the year was as follows.. 2023 No. 22 2022 Nc>. 22 Teaching Welfare Support 15 15 38 38 Page 31 The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the ear ended 31 Au ust 2023 8 STAFF COSTS Icontinuedl The number of etmployees £60,000 in the year was as follows.. 2023 No. 2022 No. £70,001- £80,000 £80,001- £90,000 £100,001- £110.000 Pension contributions for the year amounted to £54,38312022.' £60,361) for the above employees. Key management personnel include the Governors and the senior executives which are made up ol the head, the bursar and the deputy heads. The total pay and benefits received by key rnanagement personnel were £511,63812022.. £501,218). 9 GOVERNORS REMUNERATION AND EXPENSES There were no Governors, remuneration or other benefits for the year ended 31 August 2023 nor for the year ènd8d 31 August 2022. No governors were reimbursed any expenditure in the year12022'. £Nill. 10 NET INCOME FOR THE YEAR 2023 2022 Net income is stated after charging.. Depreciation of tangible fixed assets Loan Interest Operating lease rentals- other 115,184 28,136 25,078 64,225 17,139 25,650 Auditor's rernuneration Audit services lor the school- current year Audit services for the s¢hool- prior year under provision Non-audit setViC8S 16,100 2,149 2,650 14,808 3,192 Page 32 The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the ear ended 31 Au ust 2023 11 TANGIBLE FIXED ASSETS Fixtures & Freehold Fittings & Property Motor Vehicles Assets under Cc>nstructic>n Totol Cost-. At 1 September 2022 Additions Disposals Transfer 2,536,281 771,406 4,084,558 948,039 17.703 12.3481 7,568,878 789,109 12,3481 3,307,687 3,307,687 At 31 August 2023 7,392,245 963,394 8,355,639 Depreciation.. At 1 September 2022 Charge for year Disposals Transfer 345,358 89,913 833,109 25.271 14701 1,178,467 115,184 14701 At 31 August 2023 435,271 857,910 1,293,1B1 Net bocik value.. At 31 August 2023 6,956,974 105,484 7,062,458 Al 1 September 2022 2,536.281 3,739.200 114,930 6390411 The freehold property was fomerly held at markel value, following a professional revaluation performed on 24 August 2011 by Bonsor P8nningtons. Th8 Trustees have elect8d to pr8s8rv8 this v8lu8 und8r the tr8nsitsonal provisions to FRS102. In the Trustees opinion, the net book value of the property is indicats.ve of the market value as at 31 August 2020. The propertls deemed cost will no longer be subject to revaluation. Within the cost of freehold property is land lotslling £2,135,00012022.. £2,135,000) which is not depreciated. Page 33 The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the ear ended 31 Au ust 2023 12 INVESTMENTS Listed investrnents 2023 2022 Costlvaluation At 1 September 2022 Additions Disposal proceeds GainsllLossesl arising on investments 827,404 827,404 1,143,096 1,143,096 11,118,667) 11,118,667) 116,2711 116,2711 2,006,658 409,633 11,369,728) 1219,1591 Costlvaluation At 31 August 2023 UK fixed interest Overseas fixed interest UK equities International equities Propety Ajternalive assets 90,074 22,560 242,898 337.901 25,902 116,227 90,074 22,560 242,898 337,901 25,902 116,227 29,212 60,801 360,011 56,081 321,299 835,562 83S,S62 827,404 13 DEBTORS 2023 2022 Fees and extras Prepayments and accrued income 21,499 108,643 1,927 56,051 130 142 14 CREDITORS Amounts falling due within one year.. 2023 2022 Bank loan Trade creditors Taxation and social security costs Fee Deposits Fees in advance Other creditors Accruals 75,286 54,001 42,464 19,000 536,547 35,603 39,234 86,365 186.899 42,774 23,000 457,299 31,226 36,136 802 135 Deferred income.. 2023 2022 Brought forwards Released in year Receivèd in yèar 457,299 1457,2991 536,547 445,499 1445,4991 457,299 C8rri8d forwards 536,547 457.299 Deferred income relates to schools fees received in advance for the following temi. Page 34 The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the ear ended 31 Au ust 2023 15 CREDITORS DUE AFTER ONE YEAR 2023 2022 Amounts falling due after more than one year.. Bank loan Other creditors School f88 deposits 1,128,934 28,264 259,781 1,191,504 33,742 221,786 1416 979 1447 032 2023 2022 Movement on loans In one year or less Between one and years etween two and five years After five years 75.286 75,286 225,859 827,789 86.365 86,365 259,094 846,045 1,204,220 1,277,869 2023 2022 Movement on deposits". In one year or less etween one and two years 19,000 23,000 221,786 278,781 244,786 The bank loans provided to the Charity by Nalwest Bank Pl¢ 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 10 8bove the base rate on an offset basis. 16 FINANCIAL INSTRUMENTS 2023 2022 Carying amount of financial assets Financial assets rneasured at fair value through profit and loss Debt instruments at amortised oost 835,562 130,142 827,404 57,978 Carrylng amount of flnanclal Ilablllt5es Measured 8t amortised cost 1,654,303 1,819,690 Page 35 The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the ear ended 31 Au ust 2023 17 STATEMENT OF FUNDS At1 September 2022 Gainsl Ilossesl Expenditure & transfers At 31 August 2023 Income Unrestricted funds.. General reserve 6,545,240 2,866,776 12,851,019) 118,1491 6,542,848 Restricted funds.. 190 project Extra18arning support 44,680 24,083 44,680 124,0831 Total restricted 68,763 124,0831 44,680 Total funds 6,545,240 2,935,539 12,875,102) 118,1491 6,587,528 At1 September 2021 Gainsl Ilossesl At 31 August 2022 Income Expenditure Unrestricted funds.. Gen8ral r858rv8 6,331,015 2,878,348 12,544,657) 1119,4661 6,545,240 Restricted funds.. 190 Project Extra learning support 19,800 79,893 24,036 199,6931 124,0361 Total restricted 19,800 103,929 124,0361 199,6931 Tol81 funds 6,350,815 2,982.277 12,568,693) 1219,1591 6.545,240 Restricted funds 190 Project- these relat8 to donations re￿ived for the 190 project. Extra learning support- grant funding for extra learning support Page 36 The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the ear ended 31 Au ust 2023 18 ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrestricted funds Restricted funds 2023 Total Tangible fixed 855ets Investments Current assets Curr8nt liabilib-es Long term liabilities 7,062.458 835,562 863,942 1802,1351 11,416,9791 7,062,458 835,562 908.622 1802,13SI 11.416,9791 44,680 Tot81 net assets 6 542 848 6 587 528 Unrestricted funds Restricted funds 2022 Tot81 Tangible fixed assets Investments Current assets Current liabilities Long term liabilities 6,390,411 827,404 1,638,156 1863,6991 11,447,0321 ,390,411 827,404 1,638,156 1863,6991 11,447,032) Total net assets 6,545,240 6,545,240 19 COMMITMENTS UNDER OPERATING LEASES At 31 August 2023, the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases. which fall due as follows.. 2023 Offic• equipment 2022 Office equipment Due within one year Due between two and five years 24,380 17,110 24,814 42,069 20 RELATED PARTIES During the year £2,500 was paid t(> Sut¢h A Good Idea Ltd for first aid training. This ¢(>mpany is owned by the fe of Andy Sutch (Govemorl. There were no related party transactions during the prior year. 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 37 The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the ear ended 31 Au ust 2023 22 NOTES TO THE CASHFLOW STATEMENT 2023 2022 Reconciliation of operating result to nel cash inflow frorn operating acb-vities Net movernenl in funds (Gainsllloss on investments Depreciation Bank interest received Dividends received Interest payable IProfilllLoss on disposal of Fixed Assets IncreasellDeGre8sel in creditors IlncreasellDecrease in debtors 42,288 16,271 115,184 14.5001 18.4821 28,136 1,878 117.9681 172.1641 194,425 219.159 64,225 14061 142.4861 17,139 8,645 3,685 464 386 Analysls of changes In net debt At1 September 2022 Other non- sh changes At 31 August 2023 Cash flows Cash and cash equivalents Cash Overdrafts Cash Equivalents 1,580,178 1801,6981 778,480 1,580,178 1801,6981 T78,4BO Borrowing5 Debt due within one year Debl due after one year 186,3651 1,191,504 11.277.869) 11,079 11.079 175,2861 1.128.934 11.204.220) 73.649 73.649 Total 302 309 23 CAPITAL COMMITMENTS There were no capitsl commitments at the year end12022.' £217,638) Page 38 The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the ear ended 31 Au ust 2023 24 PENSION COMMITMENTS The charity contributes to three pension schemes.. The Teacher's Pension Schemes I'TPS"), the Independent Schools Pension Scheme I'ISPS") and the National Employment s8￿ngs Trust I'NEST'I. Teachers. Pension Scheme The School participates in the Teachers, Pension Scheme I'the TPS.) for its teaching staff. The pension charge for the year includes contributions payable tc> the TPS of £248,60412022'. £285,739) and at the year- end £29,25112022'. £28,6681 was accrued in respect of contributions to this scheme. The TPS is an unfunded multi-employer defined benefits pension scheme govemed by The Teachers, Pensions Regulations 2010 la5 arllendedl and The Teachers, Pension Scheme Regulations 2014 las 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 provid8d by Parliam8nl. The 8tnploy8r contribution rate is 58t by th8 S8cr8tary of State following scheme valuations und8rtak8n by the Government Actuarfs Department. The most recent actuarial valuation Of the TPS was prepared as at 31 March 2020 and the Valuation Re￿rt, which was published in October 2023. Followng the Mccloud judgement, the iemedy pr(>posed that when benefits beeome payable, eligible members can selecl to receive them from either the reformed or legacy schemes for the period 1 April 2015 to 31 March 2022. The actuaries have assumed that merllbers are likely to choose the option that provides them with the greater benefits, and in preparing the 2020 valuation have valued the 'greater value, benefits for groups of relevant members. The valuab.on eonfimed that the employer contribution rate for the TPS would Increase from 23.60/0 to 28.6% from 1 April 2024. Employers are also required to pay a scheme administration levy of 0.08.10 giving a lotal employer contribution rate of 28.68°/v. Independent School's Penslon Tower house school limited participates in the ISPS. The ISPS is a rnultiemployer defined IDBI schewe. The scheme is funded and Is contracted out the statB sch8tne. Th8r8 ai8 ftsur DBS strLJetur8s available, nam81y'. Final salary with a 1160th accrual rate Final salary with a 1180th accrual rat8 Career average revalued earnings with a 1180th accrual rate Career average revalued earnings with a 111201h accrual rate A defined contribution IDCI benefit structure was made available from 1 September 2013. An employer can elect to operate different benefil structures for different categories of staff. Tower House School has elected to operate a Final Salary 11601h accrual rate benefit scheme for Category A m8mb8rs a$ 8t 31 August 2017. The Trustee commissions an aciuarial valuation of the Scheme every three years. The main purpose of the valuation is to d8t8rmin8 the financi81 position of the soheme in order to determin8 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 al the valuation dale are likely to be sufficient to pay the pension benefits accrued by members as at the valuation Asset valLJes are calculated by reference lo market levels. Accrued pension benefits are value by discounting expected future benefit payments using a discount rat8 calculated by reference lo the expected future investment returns. Page 39 The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the ear ended 31 Au ust 2023 24 PENSION COMMITMENTS Icontlnuedl During the accounting peri¢xl the Charity paid a joint contribution rate of 27.3°k comprising employer Contributions of 20.9Vh and members contributions of 6.49 As at the Balance Sheet date, there was 1 active member of the Scheme. The eharity etsntinues to offer membership of the Scheme to its employees. It is not possible in the normal course of events lo identify on a consistent and reasonable basis the share of underfying assets and liabilities belonging to individual participating employers. This is because thè scheme is a multiemployer 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 a¢￿untIng charge for the period under section 28 of FRS 102 represents the employer contribution payable. The p8nsion charg8 In th8 period amounted to £11,80512022.. £18,999). The p8nsion cost charge r8pr8s8nts the contributions payable by the Charity lo the Funds in respect of the year. At year end, there were outstanding ￿ntrIbutIOnS of £nil12022.. £nill. The 18st formal valuation of the Scherlle was perforrned at 30 September 2017 by a professionally qualified actuary using the Projected Unit MethcKI. The market value of the Scheme's assets at the valuation date was £110.0 million. The valuation revealed a shortfall of assets ornpared wlh the value of liabilities of £37.4million. equiv819ril to 8 past service funding lev81 of 75%. In 2019, the Charty 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 oontributions of £3,40fj + 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 Charitys accounting policy, this expenditure has been recognised in the accounts. National Employment Savings Trust During the year, the Charity made contributions to defined contribution sd)emes of £15,641 12022.. £12,248) to the National Employment Savings Trust I'NEST'I The amount of pension outstanding at year end is £1,85912022.. £2,158). Page40