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← The Tower House School Charitable Foundation

2024-08-31-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 2024

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The Tower House School Charitable Foundation

CONTENTS for the year ended 31 August 2024

Page
Governors' Report 1
Auditors' Report 19
Statement of Financial Activities 24
Balance Sheet 25
Cash Flow Statement 26
Notes to the Financial Statements 27

The Tower House School Charitable Foundation

TRUSTEES REPORT for the year ended 31 August 2024

Trustees Mr C Pike
Mr A Phillips
Governors Antony Phillips (CoG)
Andy Sutch
Prof. Claire Hogg
Brian Giffen
Tom Hill
Sarah Field (Safeguarding)
Peter Marr
Headmaster: Mr N Lunnon Appointed September 2023
Bursar & Clerk to Governors: Mrs H Ali
Company registered number: 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
9 Appold Street
Floor 6
London
EC2A 2AP
Investment Managers: Rathbone Brothers Plc
8 Finsbury Circus
London
EC2M 7AZ

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The Tower House School Charitable Foundation

TRUSTEES’ REPORT (continued) for the year ended 31 August 2024

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.

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 to:-

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The Tower House School Charitable Foundation

TRUSTEES’ REPORT (continued) for the year ended 31 August 2024

5

The Tower House School Charitable Foundation

TRUSTEES’ REPORT (continued) for the year ended 31 August 2024

The Governors are mindful of the need to consider activities for the wider Public Benefit, although the priority is still to ensure that pupils 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 and distributed to the following charities: -

Junior school: Rackets cubed food bank - Roehampton

Year 4: World Wildlife Fund

Year 5: Team Trees

Year 6: Make a Wish

Year 7: Water aid

Year 8: Spear – supporting the homeless in the local community

Harvest Festival, Christmas and Easter – donations to Roehampton Community Supermarket (through Rackets Cubed)

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 and The Friends of Richmond Park.

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.

The school hall is made available to local charities such as Christ Church Choir, Members of East Sheen Society (MESS), drama and music groups who work with children, to a local Mandarin teaching group and 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. The Governors are looking forward to letting out the new multipurpose hall to groups within the community, once completed.

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The Tower House School Charitable Foundation

TRUSTEES’ REPORT (continued) for the year ended 31 August 2024

Key Management Personnel

The key management personnel of the school are made up as follows:Trustees Charles Pike Antony Phillips

Governors Andy Sutch Prof. Claire Hogg Brian Giffen Antony Phillips Tom Hill Sarah Field Peter Marr

Senior Management Team (SMT) Neill Lunnon - Headmaster Huma Ali – Bursar & Clerk to Governors Ben Peyton – Deputy Head Kerry Hogan – Head of Junior School Edmund Orme – Deputy Head Academic

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, education, and inclusion. 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 (continued) for the year ended 31 August 2024

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 5 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 Leadership Team. All members of the Senior Leadership 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 SLT 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.

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The Tower House School Charitable Foundation

TRUSTEES’ REPORT (continued) for the year ended 31 August 2024

Review of Achievements and Performance

The school has invested heavily in further education qualifications studied by staff; these include an MA in Advance Educational Practice (UCL), a Senior Leaders Master’s Degree Apprenticeship, (Salford), a Senior Leaders Master’s 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).

Financial Review and Future Developments

The Governors are pleased to report that the School continues to operate from a position of financial strength, supported by a robust balance sheet and healthy reserves.

This position is underpinned by strong financial processes and rigorous governance in line with the School’s charitable objectives.

Despite the well-documented challenges facing the independent education sector in recent years, pupil numbers have remained strong and demand for places continues to be high.

This resilience has enabled the School to continue investing in its facilities and educational provision. Following the successful completion of the new Senior School building, the Governors are now turning their attention to the refurbishment of the remaining school buildings, ensuring that all pupils continue to benefit from a first-class learning environment that reflects the School’s ethos and long-term strategic vision.

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The Tower House School Charitable Foundation

TRUSTEES’ REPORT (continued) for the year ended 31 August 2024

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. Eight pupils were awarded scholarships by his chosen senior school (Academic x3, Drama x2, Art x2, Sport x1, all-rounder x1).

DESTINATION SCHOOLS - SEPTEMBER 2024

St James School
**Epsom College ** Drama Scholarship
**Brighton College **
KCS, Wimbledon Academic Scholarship
Reeds School Art Scholarship & Drama
Scholarship
Reeds School
**Brighton College ** Millenium All-Rounder Scholarship
St John's,
Leatherhead
St Paul's School
Hampton School
Harrow School
Cranleigh School
Rugby School
**Brighton College ** Academic Scholarship
Hampton School Sports Scholarship
Hampton School Academic Scholarship
KCS, Wimbledon
KCS, Wimbledon Art Scholarship
Harrow School
**Brighton College **

Total of 9 scholarships for this cohort of 20 boys

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The Tower House School Charitable Foundation TRUSTEES’ REPORT (continued) for the year ended 31 August 2024

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. A biennial cricket tour to Barbados serves to provide a fantastic experience to Tower House pupils, whilst also opportunity to donate cricketing equipment to their hosts. Two of our pupils received the offer of a Sports Scholarship from their chosen senior school.

Music

Music continues to develop at Tower House. A new dynamic Director of Music will arrive in September 2025 to take excellence in quantity and quality of music provision and performance to a new level. 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 Junior Choir attracts a large proportion of boys in that stage of the school. The addition of a Chamber Choir to the singing repertoire has allowed elite singers to perform in external venues. The number of music ensembles has expanded to include jazz band, swing band, guitar group, rock band, strings ensemble and school orchestra. Combined music concerns with the Old Vicarage School in school and at external venues is a welcome addition to our musical provision.

The Arts (including the performing arts)

Art throughout the school is in rude health. There is an inclusive exhibition every year with a variety of age groups represented as part of the Creative Arts Concert. A fully curated Art Fair is to be introduced in Summer Term 2025. The addition of a laser cutter in art has allowed for development of the curriculum and increased use of different media. The school’s own kiln remains a central part of art lessons and art clubs. Art club remains one of the most over-subscribed clubs in school.

Drama productions continue to set new standards and this year THS performed a brilliant production of Harry Potter, involving a record 84 boys on stage for speaking parts, the vast majority of the Senior School. High standards do not preclude inclusivity – all those that want to be a part of the production are included. This year two boys in Year 8 was awarded Drama Scholarships by his chosen senior school.

Tower House won the prestigious Talk Education

Independent School of the Year Award for Performing Arts and was a finalist in the Independent School of the Year for Performing Arts Award.

Projected plans for the future:

To support the new Head of Tower House School through this first year in the role. The Governors appointed Neill Lunnon as Head for September 2023.

To improve facilities to both develop the educational experience for pupils and to retain and attract the highest calibre of staff. Plans to be agreed for the refurbishment of 188 Sheen Lane building to improve library facility, technology studio, science laboratory, teaching classrooms and staff work space.

The Evans Hall building has been operational for over an academic year and has transformed the provision for the pupils at the school and use by external groups such as Sheen Montessori, PlayBall and Mandarin Club on the weekends.

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The Tower House School Charitable Foundation

TRUSTEES’ REPORT (continued) for the year ended 31 August 2024

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 school's 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:

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 school's fees is included in:

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The Tower House School Charitable Foundation

TRUSTEES’ REPORT (continued) for the year ended 31 August 2024

Principal Risks and Uncertainties

Operational Safeguarding
Issue		 •
All staff DBS checked, together with strict Safer
Recruitment
•
Head, Bursar, Deputy Head, Chair of Governors and
Safeguarding Governor all trained in safer 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 issued with visitor lanyards
•
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 to serious
inspection		 •
Dedicated Compliance Manager to audit current regulatory
compliance and ensure that all processes are and press
issues adhered to
•
Responsibility for all areas of School operations assigned
to individual SMT members
•
Policies and practices regularly updated with rolling reviews
at all school staff meetings
•
Governor's review and agree major changes to regulatory
Policies each term

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ER HOD
CED
SCHO OY
Competition The opening of a
free school or
primary school in
the area		 •
Maintenance of high standards of curricular and extra -
curricular provision together with continuous improvement
of facilities (e.g. 4 new classroom and multipurpose hall)
Profile and understand beneficiary needs
•
Use marketplace 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
Operational Cyber Attack or
Data Breach		 •
The school, once again, has successfully completed the
annual renewal and subscription process for the
CyberEssentials accreditation. 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, encrypted, and kept
offsite as a precaution against data loss/damage.
Financial Global and
Economic
Forces		 •
In response to implementation of VAT affecting fees, the
School developed a strategy to assist parents with this
additional financial burden.
•
Recognising the ongoing cost-of-living crisis in the UK, the
School kept fee increases to a minimum, helping to reduce
financial pressure on fee-payers.
•
In response to inflationary pressures on operational costs,
the School implemented a zero-based budget to ensure all
spending was necessary and no resources were wasted.
•
To mitigate volatility in energy and utilities costs, the School
secured competitive fixed-term contracts.

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The Tower House School Charitable Foundation

TRUSTEES’ REPORT (continued) for the year ended 31 August 2024

Financial Revenue and Reserves

The financial statements for the year ended 31 August 2024 are set out in the pages following this report. 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 £3,015,184 (2023 £2,935,539), an increase of 2.7%. Expenditure this year amounted to £3,141,796 (2023 £2,875,102), an increase of 9.3%, 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 £98,573 (2023: losses of £18,149) overall the charity made a loss of £28,039 (2023 £42,288).

Teachers’ Pension Scheme

Following the completion of negotiations, the School has withdrawn from the Teachers’ Pension Scheme (TPS). While membership of the TPS was previously viewed as a strong recruitment tool, the Governors carefully considered the significant increase in the employer’s contribution rate from September 2019 and, again in 2024, reviewed sector trends. The School has now implemented an alternative pension arrangement and will continue to monitor the education sector closely to ensure that staff benefits remain competitive.

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 determining the appropriate level of reserves, the policy is tested against a range of scenarios to ensure adequacy. The Trustees regularly review what constitutes an appropriate level of reserves. The current target level of free reserves is set at £500,000.

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The Tower House School Charitable Foundation TRUSTEES’ REPORT (continued) for the year ended 31 August 2024

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 school's 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 £945,234 (2023 £835,562) Investment Income for this year is £8,545 (2023 £12,982). £1m is held in the cash account attracting 0.65% interest, in anticipation of draw down as the 190 Project Development nears completion. 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 (continued) for the year ended 31 August 2024

Annex 1: Achieved scores shifted markedly to the right of national average ‘bell curve’.

Year 4 2023/2024

Year 6 2023/2024

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The Tower House School Charitable Foundation

TRUSTEES’ REPORT (continued) for the year ended 31 August 2024

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:

There is no relevant audit information of which the charity's auditors are unaware; and the Trustees have taken all steps that they ought to have taken to make themselves aware 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 entitled to small companies’ exemption.

On behalf of the board

Antony Phillips

Peter Marr

Trustee

Date 22/08/2025

Date 22/08/2025

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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 August 2024

Opinion

We have audited the financial statements of The Tower House School Charitable Foundation (‘the company’) for the year ended 31 August 2024 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, except to the extent otherwise explicitly stated in our report, we do not express any

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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 2024

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

20

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 2024

the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the audit of the financial statements

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

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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 2024

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.

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.

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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 2024

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

6[th] Floor 9 Appold Street London EC2A 2AP

28 August 2025

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The Tower House School Charitable Foundation STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure statement) for the year ended 31 August 2024

Notes
INCOME FROM:
Charitable Activities
School fees
3
Other educational income
4
Other income
Other trading income
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)
Other Profit or Loss on sale of assets/property
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
£
2,927,499
46,268
8,833
8,545
-
2,991,145
5,768
48,553
3,062,816
3,117,137
(125,992)
-
98,573
(27,419)
42,950
15,531
6,542,848
6,558,379		 Restricted
funds
£
-
24,039
-
-
-
24,039
-
-
24,659
24,659
(620)
-
-
(620)
(42,950)
(43,570)
44,680
1,110		 Total
2024
£
2,927,499
70,307
8,833
8,545
-
3,015,184
5,768
48,553
3,087,475
3,141,796
(126,612)
-
98,573
(28,039)
-
(28,039)
6,587,528
6,559,489		 Total
2023
£
2,802,816
70,699
4,362
12,982
44,680
2,935,539
6,061
28,136
2,840,905
2,875,102
60,437
(1,878)
(16,271)
42,288
-
42,288
6,545,240
6,587,528

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 24

The Tower House School Charitable Foundation

BALANCE SHEET

as at 31 August 2024

Notes
FIXED ASSETS
Tangible assets
11
Investments
12		 2024
2023
(as restated)
£
£
7,152,272
7,062,458
945,234
835,562
CURRENT ASSETS
Debtors
13
Investments
Cash at bank and in hand		 8,097,506
7,898,020
130,011
130,142
200,776
200,000
1,019,092
578,480
CREDITORS: Amounts falling due within one year
14		 1,349,879
908,622
(1,107,077)
(802,135)
NET CURRENT ASSETS 242,802
106,487
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS:Amounts falling due after more than one year
15		 8,340,307
8,004,507
(1,780,818)
(1,416,979)
NET ASSETS 6,559,489
6,587,528
FUNDS
Restricted funds
16
Unrestricted funds
16		 1,110
44,680
6,558,379
6,542,848
6,559,489
6,587,528

Approved and authorised for issue by the Board of Governors on 22/08/2025 and signed on their behalf by:

Antony Phillips Chairman of the Board of Governors

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

Page 25

The Tower House School Charitable Foundation CASHFLOW STATEMENT

for the year ended 31 August 2024

CASH FLOW STATEMENT
Notes
Net cash inflow from operating activities
21
Cash flows from investing activities:
Investment in current asset investments
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
Cash received from Fees in Advance Scheme
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		 2024
£
386,973
(776)
8,545
-
(48,553)
-
(224,346)
(11,099)
(276,229)
(57,632)
387,500
329,868
440,612
578,480
1,019,092		 2023
(as restated)
£
100,643
(200,000)
4,500
8,482
(28,136)
1,118,667
(789,109)
(1,143,096)
(1,028,692)
(73,649)
-
(73,649)
(1,001,698)
1,580,178
578,480

Page 26

The Tower House School Charitable Foundation ACCOUNTING POLICIES for the year ended 31 August 2024

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 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 operational existence for 12 months from when the accounts are signed. 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 27

The Tower House School Charitable Foundation

ACCOUNTING POLICIES for the year ended 31 August 2024

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.

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.

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

All funds are unrestricted funds which are available for 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 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 28

The Tower House School Charitable Foundation

ACCOUNTING POLICIES for the year ended 31 August 2024

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 23, 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 23). 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 23. 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 mid-market 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 29

The Tower House School Charitable Foundation ACCOUNTING POLICIES for the year ended 31 August 2024

1.13 CURRENT ASSET INVESTMENTS

Current asset investments include cash in hand, deposits held at call with banks, other investments with original maturities of over three months. A prior year adjustment has been made to reflect bank deposits held with a maturity of over 3 months as at 31 August 2023.

1.14 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 13, 14 and 15 for the debtor and creditor notes.

1.15 TAXATION

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

1.16 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 11 for the carrying amount of the property, plant and equipment and note 1.8 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 13 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.

Investments

Included in investments are judgements made on the value of property and alternative assets.

Page 30

The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2024

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
4 OTHER EDUCATIONAL INCOME
Extras and disbursements
Registration fees
Retained deposits
Other income		 2024
£
2,960,138
(32,639)
2,927,499
2024
£
13,456
7,600
7,568
41,683
70,307		 2023
£
2,835,901
(33,085)
2,802,816
2023
£
4,020
6,100
29,319
31,260
70,699

Included within the above is an amount of £24,039 (2023: £24,083) which relates to restricted income.

5 INVESTMENT INCOME
Interest received
Dividend income
6 DONATIONS AND GRANTS
Donations and gifts		 2024
£
8,545
-
8,545
2024
£
-
-		 2023
£
4,500
8,482
12,982
2023
£
44,680
44,680

Included within the above is an amount of £Nil (2023: £44,680) which relates to restricted income.

Page 31

The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2024

**7 ** EXPENDITURE
(a) Costs of Raising Funds Staff costs (note Total
8) Other Depreciation 2024
£ £ £ £
Investment Management Fees - 5,768 - 5,768
Finance Costs - 48,553 - 48,553
Total Costs of Raising Funds - 54,321 - 54,321
Charitable expenditure Staff costs (note Total
Teaching £
1,531,907
8)		 Other
£
199,244		 Depreciation
£
-		 2024
£
1,731,151
Welfare - 212,645 - 212,645
Premises and Estates - 203,065 134,532 337,598
Administration 624,328 162,363 - 786,691
Governance - 19,391 - 19,391
Total Charitable Expenditure 2,156,235 796,708 134,532 3,087,475
Total Expended 2,156,235 851,029 134,532 3,141,796
Included within Staff Costs is an amount of £24,659 (2023: £24,083) relating to restricted expenditure.
Prior year
Costs of Raising Funds Staff costs (note Total
Investment Management Fees £
-
8)		 Other
£
6,061		 Depreciation
£
-		 2023
£
6,061
Finance - 28,136 - 28,136
Total Costs of Raising Funds - 34,197 - 34,197
Charitable expenditure Staff costs (note Total
Teaching £
1,512,717
8)		 Other
£
165,600		 Depreciation
£
-		 2023
£
1,678,317
Welfare - 207,464 - 207,464
Premises and Estates - 177,383 115,184 292,567
Administration 517,392 124,266 - 641,658
Governance - 20,899 - 20,899
Total Charitable Expenditure 2,030,109 695,612 115,184 2,840,905
Total Expended 2,030,109 729,809 115,184 2,875,102

Page 32

The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2024

7 EXPENDITURE (continued)

(b)
Other Governance Costs include:
Auditors' remuneration
- Audit Fees
- under/(over) provision from previous year
- Accountancy Fees
(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
Premises
Support		 2024
£
17,720
(1,099)
2,770
2024
£
531,779
48,227
32,654
11,668
449
10,058
40,633
17,131
8,716
37,645
6,153
3,250
35,484
2,042
803
786,691
2024
£
1,644,961
174,259
310,254
26,760
2,156,235
2024
No.
23
1
-
19
43		 2023
£
16,100
2,149
2,650
2023
£
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
641,658
2023
£
1,495,883
161,636
273,076
99,514
2,030,109
2023
No.
22
1
-
15
38

Page 33

The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2024

8 STAFF COSTS (continued)

£60,000 in the year was as follows:
£60,000 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£100,001 - £110,000
The number of employees		 2024
No.
1
-
1
1
3		 2023
No.
-
1
1
1
3

Pension contributions for the year amounted to £51,725 (2023: £54,383) 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 £484,259 (2023: £511,638).

9 GOVERNORS REMUNERATION AND EXPENSES

There were no Governors' remuneration or other benefits for the year ended 31 August 2024 nor for the year ended 31 August 2023.

No governors were reimbursed any expenditure in the year (2023: £Nil).

10 NET INCOME FOR THE YEAR

NET INCOME FOR THE YEAR
2024 2023
£ £
Net income is stated after charging:
Depreciation of tangible fixed assets 134,532 115,184
Loan Interest 48,553 28,136
Operating lease rentals – other 18,265 25,078
Auditor’s remuneration
Audit services for the school- current year 17,720 16,100
Audit services for the school- prior year under provision (1,099) 2,149
Non-audit services 2,770 2,650

Page 34

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2024

The Tower House School Charitable Foundation

11 TANGIBLE FIXED ASSETS

Cost:
At 1 September 2023
Additions
Disposals
Transfer
At 31 August 2024
Depreciation:
At 1 September 2023
Charge for year
Disposals
Transfer
At 31 August 2024
Net book value:
At 31 August 2024
At 1 September 2023		 Assets under
Construction
£
-
-
-
-
-
-
-
-
-
-
-
-		 Freehold
Property
£
7,392,245
171,282
-
-
7,563,527
435,271
98,209
-
-
533,480
7,030,047
6,956,974		 Fixtures &
Fittings &
Motor Vehicles
£
963,394
53,064
-
-
1,016,458
857,910
36,323
-
-
894,233
122,225
105,484		 Total
£
8,355,639
224,346
-
-
8,579,985
1,293,181
134,532
-
-
1,427,713
7,152,272
7,062,458

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 (2023: £2,135,000) which is not depreciated.

Page 35

The Tower House School Charitable Foundation

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2024

12 INVESTMENTS
Cost/valuation At 1 September 2023
Additions
Disposal proceeds
Gains/(Losses) arising on investments
Cost/valuation At 31 August 2024
UK fixed interest
Overseas fixed interest
UK equities
International equities
Property
Alternative assets
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
£
835,562
11,099
-
98,573
945,234
101,896
25,521
274,780
382,253
29,302
131,482
945,234		 2024
£
835,562
11,099
-
98,573
945,234
101,896
25,521
274,780
382,253
29,302
131,482
945,234
2024
£
5,260
13,137
111,614
130,011
2024
£
57,635
84,479
43,404
20,000
833,062
42,420
26,077
1,107,077
2024
£
536,547
(536,547)
833,062
833,062		 2023
£
827,404
1,143,096
(1,118,667)
(16,271)
835,562
90,074
22,560
242,898
337,901
25,902
116,227
835,562
2023
£
21,499
-
108,643
130,142
2023
£
75,286
54,001
42,464
19,000
536,547
35,603
39,234
802,135
2023
£
457,299
(457,299)
536,547
536,547

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

Page 36

The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2024

15 CREDITORS DUE AFTER ONE YEAR
Amounts falling due after more than one year:
Bank loan
Other creditors
School fee deposits
Fees in advance
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		 2024
£
1,088,953
22,095
282,270
387,500
1,780,818
2024
£
57,635
57,635
172,905
858,413
1,146,588
2024
£
20,000
282,270
302,270		 2023
£
1,128,934
28,264
259,781
-
1,416,979
2023
£
75,286
75,286
225,859
827,789
1,204,220
2023
£
19,000
259,781
278,781

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.

Page 37

The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2024

16 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		 £
6,542,848
44,680
-
44,680
6,587,528
£
6,545,240
-
-
-
6,545,240
At 1
September
2023
At 1
September
2022		 Income
£
2,991,145
-
24,039
24,039
3,015,184
Income
£
2,866,776
44,680
24,083
68,763
2,935,539		 Expenditure
£
(3,117,137)
(620)
(24,039)
(24,659)
(3,141,796)
Expenditure
£
(2,851,019)
-
(24,083)
(24,083)
(2,875,102)		 Gains/
(losses)
& transfers
£
141,523
(42,950)
-
(42,950)
98,573
Gains/
(losses)
£
(18,149)
-
-
-
(18,149)		 £
6,558,379
1,110
-
1,110
6,559,489
£
6,542,848
44,680
-
44,680
6,587,528
At 31 August
2024
At 31 August
2023

Restricted funds

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

Transfer between the 190 Project account and the general reserve to reflect capital expenditure.

Page 38

The Tower House School Charitable Foundation

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2024

17 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
£
7,152,272
945,234
1,348,769
(1,107,077)
(1,780,818)
6,558,379
Unrestricted
funds
£
7,062,458
835,562
863,942
(802,135)
(1,416,979)
6,542,848		 Restricted
funds
£
-
-
1,110
-
-
1,110
Restricted
funds
£
-
-
44,680
-
-
44,680		 2024
Total
£
7,152,272
945,234
1,349,879
(1,107,077)
(1,780,818)
6,559,489
2023
Total
£
7,062,458
835,562
908,622
(802,135)
(1,416,979)
6,587,528

18 COMMITMENTS UNDER OPERATING LEASES

At 31 August 2024, the company had outstanding commitments for future minimum lease payments under noncancellable operating leases, which fall due as follows:

Due within one year
Due between two and five years		 2024
Office
equipment
20,796
33,994
54,790		 2023
Office
equipment
24,380
17,110
41,490

19 RELATED PARTIES

During the year £Nil (2023:£2,500) was paid to Sutch A Good Idea Ltd for first aid training. This company is owned by the wife of Andy Sutch (Governor). There were no other related party transactions during the year.

20 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 39

The Tower House School Charitable Foundation

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2024

21 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
(Profit)/Loss on disposal of Fixed Assets
Increase/(Decrease) in creditors
(Increase)/Decrease in debtors
Analysis of changes in net debt
At 1 September
2023
Cash and cash equivalents
Cash
578,480
Overdrafts
-
Cash Equivalents
-
578,480
Borrowings
Debt due within one year
(75,286)
Debt due after one year
(1,128,934)
(1,204,220)
Total
(625,740)		 Cash flows
440,612
-
-
440,612
-
57,632
57,632
498,244		 2024
£
(28,039)
(98,573)
134,532
(8,545)
-
48,553
-
338,913
131
386,973
Other non-
cash changes
-
-
-
-
17,651
(17,651)
-
-		 2023
£
42,288
16,271
115,184
(4,500)
(8,482)
28,136
1,878
(17,968)
(72,164)
100,643
At 31 August
2024
1,019,092
-
-
1,019,092
(57,635)
(1,088,953)
(1,146,588)
(127,496)

22 CAPITAL COMMITMENTS

There were no capital commitments at the year end (2023: £Nil )

Page 40

The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2024

23 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 £315,196 (2023: £273,076) and at the year-end £35,652 (2023: £29,251) 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 2020 and the Valuation Report, which was published in October 2023.

Following the McCloud judgement, the remedy proposed that when benefits become payable, eligible members can select 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 members 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 valuation confirmed that the employer contribution rate for the TPS would increase from 23.6% to 28.6% from 1 April 2024. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 28.68%.

The School left the TPS scheme on 1 January 2025, a full withdrawal from the TPS for all teaching staff who remained in the scheme.

Independent School's Pension

The company participates in the scheme, a multi-employer scheme which provides benefits to some 66 nonassociated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out with an effective date of 30 September 2020. This actuarial valuation was certified on 22 December 2021 and showed assets of £201.1m, liabilities of £256.3m and a deficit of £55.2m. To eliminate this funding shortfall, the trustees and the participating employers have agreed that additional contributions will be paid, in combination from all employers, to the scheme as follows:

Deficit contributions

From 1 September 2022 to 30 June 2032:

£2,687,000 per annum

(payable monthly and increasing by 3% on each 1st September)

Page 41

The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2024

23 PENSION COMMITMENTS (continued)

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £149.4m, liabilities of £187.6m and a deficit of £38.2m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 September 2019 to 30 April 2030: £2,387,537 per annum (payable monthly and increasing by 3% on each 1st September)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities.

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

Present Values of Provision

31-Mar-24
(£s)
Present value of provision
43,311
Reconciliation of opening and closing provisions
Provision at start of period
Unwinding of the discount factor (interest expense)
Deficit contribution paid
Remeasurements - impact of any change in assumptions
Remeasurements - amendments to the contribution schedule
Provision at end of period
Income and Expenditure Impact
Interest expense
Remeasurements - impact of any change in assumptions		 31-Mar-23
(£s)
46,259
Period Ending
31-Mar-24
(£s)
46,259
2,145
(5,519)
426
-
43,311
Period Ending
31-Mar-24
(£s)
2,145
426		 31-Mar-22
(£s)
54,431
Period Ending
31-Mar-23
(£s)
54,431
1,380
(4,669)
(4,883)
-
46,259
Period Ending
31-Mar-23
(£s)
1,380
(4,883)

*includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes.

Page 42

The Tower House School Charitable Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2024

23 PENSION COMMITMENTS (continued)

Assumptions
31-Mar-24 31-Mar-23 31-Mar-22
% per annum % per annum % per annum
Rate of discount 4.69 4.95 2.65

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

Deficits Contributions Schedule

31-Mar-24 31-Mar-23 31-Mar-22
(£s) (£s) (£s)
Year 1 5,684 5,519 4,669
Year 2 5,855 5,684 5,519
Year 3 6,030 5,855 5,684
Year 4 6,211 6,030 5,855
Year 5 6,398 5,211 6,030
Year 6 6,590 6,398 6,211
Year 7 6,787 6,590 6,398
Year 8 6,991 6,787 6,590
Year 9 1,769 6,991 6,787
Year 10 1,769 6,991
Year 11 - - 1,769

ISPS and Nest

Total employers contributions for the year to both pension schemes is £20,628 (2023: £15,641) and £5,684 (2023: £5,519).

The amount of pension outstanding at year end is £nil (2023: £1,859).

Page 43