2023-07-31-accounts

Registered company number: 3883748 Registered charity number: 1078461 Registered VAT number: 423470321

KINGSTON GRAMMAR SCHOOL

(A CHARITABLE COMPANY LIMITED BY GUARANTEE)

REPORT OF THE GOVERNORS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

KINGSTON GRAMMAR SCHOOL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

CONTENTS

GOVERNORS, DIRECTORS & OFFICERS ................................................................................. 2 ADVISERS, REGISTRATION NUMBERS & WEBSITE ...................................................................... 3 DIRECTORS’ REPORT ...................................................................................................... 4 STATEMENT OF ACCOUNTING AND REPORTING RESPONSIBILITIES ................................................. 8 STRATEGIC REPORT ......................................................................................................10 FINANCIAL REVIEW .......................................................................................................13 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF KINGSTON GRAMMAR SCHOOL .....................17 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES ............................................................20 CONSOLIDATED BALANCE SHEET .......................................................................................21 KGS SCHOOL BALANCE SHEET ..........................................................................................22 CONSOLIDATED STATEMENT OF CASH FLOWS .......................................................................23 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ..........................................................24

KINGSTON GRAMMAR SCHOOL GOVERNORS, DIRECTORS & OFFICERS FOR THE YEAR ENDED 31 JULY 2023

GOVERNORS, DIRECTORS & OFFICERS

Under the Articles of Association the Governors are the charity trustees and are also the directors and members of the Company. The Governors of Kingston Grammar School who served during the year are:

Name

Committee membership and roles

Robert O’Dowd (Chair) Lorraine Adam (Vice-Chair)[ 1] Catherine Chevallier Liz Dux Andrew Evans Jatinder Harchowal (Vice-Chair from Jan 23) Nima Khandan-Nia Frances Le Grys[2] Julia Mikardo Diana Rose Na’eem Ahmed Ed Bowyer Nicholas Cole Vivek Agarwal Peter Kelk Beatrijs Lelyveld[3]

S&R (Chair); I (Interim Chair to Dec 22); F&GP M&A (Chair); N&G (Chair); E&S S&R; F&GP; N&G M&A (Chair from Jan 23); E&S; N&G (from Jan 23) F&GP (Chair); AR&C; I; S&R F&GP (to Dec 22); N&G (Chair from Jan 23); E&S (from Jan 23) E&S; AR&C AR&C (Chair); M&A; N&G E&S E&S (Chair) M&A; S&R M&A (from Jan 23); S&R E&S; M&A (from Jan 23) F&GP; AR&C (Chair from Jan 23) F&GP; I (Chair from Jan 23) E&S; AR&C

Resignation / Retirement

Basis of, and changes in, appointment

1 Resigned as Governor on 5 December 2022

2 Resigned as Governor on 5 December 2022 3 Appointed as Governor on 6 December 2022

Committees

Staffing and Remuneration S&R Education & Safeguarding E&S Finance & General Purposes F&GP Investment I Marketing & Admissions M&A Nominations & Governance N&G Audit, Risk & Compliance AR&C

OFFICERS

Head Master Director of Finance & Operations Deputy Head Safeguarding and Development Deputy Head Academic Clerk to the Governors

Stephen Lehec David Leen Sarah Humphrey William Cooper Dinah Coomes

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KINGSTON GRAMMAR SCHOOL GOVERNORS ADVISERS, REGISTRATION NUMBERS & WEBSITE FOR THE YEAR ENDED 31 JULY 2023

ADVISERS, REGISTRATION NUMBERS & WEBSITE

Auditor:

Auditor: Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW Bankers: Barclays Bank plc Level 27, 1 Churchill Place Canary Wharf London E14 5HP Investment Advisers: Close Brothers Asset Management B4 Endeavour Place 11 Coxbridge Business Park Alton Road Farnham GU10 5EH CCLA Investment Management Ltd 80 Cheapside London EC2V 6DZ PMN Financial Management LLP 10 Crown Place London EC2A 4FT Solicitors: Farrer & Co 66 Lincoln’s Inn Fields London WC2A 3LH Veale Wasbrough Vizards LLP Narrow Quay House Narrow Quay Bristol BS1 4QA Pension Advisers: JLT Benefit Solutions DC Consulting South 36 Ridgmont Road St Albans Hertfordshire AL1 3AB Insurance Brokers: S Ellis Consulting Ltd 28 Park Road North Leigh Witney Oxfordshire OX29 6RX on behalf of AON UK Limited Principal Address & Registered Office: 70 London Road Kingston upon Thames Surrey KT2 6PY Website: www.kgs.org.uk Registered Charity Number 1078461 Registered Company Number 3883748 Registered VAT Number 423470321

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KINGSTON GRAMMAR SCHOOL ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023

The Governors present their Annual Report for the year ended 31 July 2023. This is prepared in accordance with the Companies Act 2006 and the Charities Act 2011 and includes the Directors’ Report and Strategic Report, together with the audited Financial Statements for the year. The Governors confirm that the latter comply with the requirements of the Companies Act 2006, the Company’s Articles of Association and the Charities SORP 2019.

DIRECTORS’ REPORT

CONSTITUTION AND OBJECTS

The Charity, Kingston Grammar School Foundation, was founded in 1561. On 22 November 1999 Kingston Grammar School was incorporated as a charitable company, limited by guarantee, registered in England No. 3883748, and is registered with the Charity Commission under Charity No. 1078461. The company is the corporate trustee of the Kingston Grammar School Foundation. The governing document is the Articles of Association, last amended 4 December 2019 with a further minor amendment on 11 October 2023.

The objects of the Charity are the advancement of education generally and in particular through the provision and conduct of schools including (but not exclusively) in or near the Royal Borough of Kingston upon Thames.

In furtherance of these objects for the public benefit, the Charity has established and administers fee assistance/bursaries, grants, awards, and other benefactions, and acts as the trustee and manager of property, endowments, bequests, and gifts given or established in pursuance of these Objects.

VISION, AIMS AND OBJECTIVES

At KGS, we aim to live out our motto of ‘Work well & be happy’ in all that we do.

We believe in achieving excellence with integrity, without compromising on individual wellbeing or our values.

• We encourage and foster personal ambition alongside the development of social conscience.

• We promote commitment and determination in all areas of school life, while highlighting the importance of care for oneself and others in striving for one’s goals.

• We provide support to each individual, whilst developing their own sense of self-reliance.

• � Most importantly, we aspire for our students to become the leaders of a better, kinder world.

Each of these aims is underpinned by our core values of aspiration, respect, and engagement (ARE). It is in this way that we can ‘Work well & be happy’, and truly know what that means.

Aspiration

We want to equip our young women and men with the skills and confidence they need to pursue their chosen ambitions and pathways. We understand the importance of having the right ‘currency’ in the form of examination results and other outcomes, whilst also pursuing excellence in a broad range of co-curricular endeavours as goals in themselves. We enable our students to become future-ready, able to master digital technology and to build interpersonal relationships with people from all walks of life. We also recognise that success can be different for every student, and wholeheartedly aim to inspire and support each student in the pursuit of their ambitions.

Respect

We hold dear the notion that every member of the KGS community should have respect for themselves, for other people and for the world in which we live whilst embracing the concept of kindness, in all its facets. We demonstrate an absolute understanding of equality and diversity, as well as promoting sustainability at every level. Beyond this, we encourage the practice of self-kindness, learning to balance competing priorities and both developing and maintaining a positive self-image.

Engagement

We actively encourage our students to fully embrace all the opportunities available to them, including those they are familiar with and may well excel in, and those that are new and require a determined effort. We encourage collaboration with peers and adults both within and beyond the school,

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KINGSTON GRAMMAR SCHOOL ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023

recognising how much more can be achieved when working in partnership. We invite our students to give back to the communities of which they are a part, through their leadership and service.

In December 2021 ISI inspectors conducted their routine Regulatory Compliance Inspection. This inspection checks that a schools' policies and practices are compliant with the regulations set by the Department for Education. The school met all 8 Standards inspected.

The most recent ISI Educational Quality and Focused Compliance inspection of the School was in May 2017. The school meets all the requirements of the Education (Independent School Standards) Regulations 2014 and achieved the top category of Excellent for students’ academic and other achievements as well as personal development. The reports were very positive noting:

• “The high levels of achievement derive significantly from the impact of a culture of all-round accomplishment for all students that is so effectively promoted by the senior leadership and governors. Students are determined to live up to the school motto ‘Work well and be happy’ and in this they are conspicuously successful.”

• “Without exception, those spoken to feel that this is a kind school where unkindness is never acceptable.”

• “Students show great enthusiasm in their work and display excellent attitudes to their learning…. These attributes are prodigious, because they form highly supportive relationships with their teachers who inspire them to enjoy learning and do their best.”

• “Students exhibit very strong study skills and are able to think for themselves and work independently, due in large part to carefully planned and well-structured lessons and a curriculum that challenges and captivates students.”

• “Students have a pronounced sense of right and wrong and instinctively understand the importance of taking responsibility for their own behaviour and being mindful of its impact on others.”

• “Students’ success is also enhanced by the academic enrichment activities that give them opportunities to develop their learning beyond the classroom.”

• “Key contributory factors to students’ personal development are the strong ethos and commitment to students’ well-being and the clear sense of purpose promoted by school leaders and governors, the coherent and well-planned pastoral care provision, and the strong and supportive community which values equally academic success and personal growth.”

• “Success in sport is particularly notable.”

• “Nearly every sport offered is available to both boys and girls, and the equality of opportunity is valued by them.”

• “Students show outstanding development and display particularly mature personal qualities for their age.”

• “Students possess outstanding communications skills. Their oral contributions, both spontaneous and prepared, are of a particularly high quality. They write with clarity, accuracy, fluency, and imagination, often at extended length. Students greatly enjoy learning through discussions and debate. They listen well to each other.”

• “Students enjoy marked success in the wide and challenging co-curricular programme that not only enables them to achieve at a high level, but also to develop their talents and interests.”

• “The achievement of so many students outside the classroom is due significantly to the breadth of the co-curricular programme which caters fully for their interests and talents, and to the high levels of staff involvement and commitment.”

• “Students learn to balance success and failure. They persevere with the challenges presented to them and develop strong self- reliance and independence.”

• “Students creative, design and performance skills are notable and strongly displayed around the school, through their bold and sensitive artwork in many different media, the high-quality artefacts produced in design technology, and the strong performance of many musical groups and ensembles.”

• “Virtually every student responding to the pre-inspection questionnaire felt they were making good progress as a result of the supportive teaching they receive, and their parents agreed.”

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KINGSTON GRAMMAR SCHOOL ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023

The Inspection report made one recommendation for improvement, which was to continue to develop our strategic vision for ICT so that students’ collaborative learning and preparation for higher education can be enhanced further using the excellent framework of tools already in place. This recommendation has been taken forward by the Education and Safeguarding Committee.

Our objectives are set to reflect our educational aims and the vision of the School. In setting our objectives and planning our activities Governors have given careful consideration to the Charity Commission’s general guidance on public benefit and to its supplementary public benefit guidance on fee-charging and advancement of education. The focus of our objectives is on the development of our students, their continued high levels of academic, co-curricular achievement and pastoral wellbeing and to further widen access to the education our School provides. Our key objectives for the year, in line with our three-year School Development Plan are to:

• Plan and deliver exceptional teaching and learning within a curriculum and assessment framework which gives all students the skills and learning disposition to make continuous progress and achieve the currency they need to follow their chosen path beyond KGS.

• Deliver an unrivalled level of pastoral care, alongside a wellbeing and education programme that will enable all KGS students to take responsibility for their personal development and, make wellinformed life choices that help to promote a positive and respectful culture for all members of the school and wider community.

• Develop the character of all students through the provision of a range of enriching and engaging opportunities in cocurricular and beyond.

• Prepare students to enter the world beyond school with the credentials to succeed, the confidence to adapt to a fast-changing world, and the leadership skills to create positive change.

• Attract, admit, and retain the students who have the greatest potential to benefit from an education at KGS.

• Recruit and retain the best teaching and support staff who are committed to the School vision and live by the core School values.

• Maintain and grow income to provide optimum investment in the long-term future of the School and to ensure high quality facilities to deliver education to the highest standards.

GOVERNANCE AND MANAGEMENT

Governing Body

Membership of the Governing Body and its Committees is set out on page 2. As noted on page 2 since 31 July 2022 two Governors have stood down and one new Governor has been appointed.

Under the Articles of Association, the Governing Body is composed of no fewer than ten and not more than fifteen individuals appointed by resolution of the Board. The normal term of office is four years. A Governor may serve two consecutive terms after which, in the absence of exceptional circumstances, they are not eligible for re-election until after a year has elapsed.

Recruitment and training of Governors

New members of the Governing Body are appointed in accordance with criteria and procedures set out in an agreed Recruitment and Induction Policy, seeking to maintain an appropriate balance in terms of age, gender, ethnicity, and a range of backgrounds, as well as an appropriate mixture of skills and experience. Under the Policy, the Governing Body will seek to ensure that it includes at least one governor who is a parent of a current pupil when the parent is first appointed as governor, at least one who is a former pupil of the school and at least one Governor who is involved in higher education.

New Governors are inducted into the workings of the Charity and the School, including Governing Body Policy and procedures, at meetings with the Head Master, Director of Operations & Finance, other members of the School Executive and the Clerk to the Governors. Safeguarding training is delivered annually to Governors and an internal training workshop on a topic of strategy is organised each year. In addition, Governors are

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KINGSTON GRAMMAR SCHOOL ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023

encouraged to attend training courses to enhance their skills in areas relevant to their role at the school such as finance, marketing and good governance organised by external organisations. Circulation of briefing notes and newsletters from relevant organisations keep them informed and updated on current issues in the sector and regulatory requirements.

Organisational management

The Governing Body is legally responsible for the overall management and control of the School, and usually meets four times a year. The Governing Body delegates specific duties to committees and may refer particular matters to them from time to time. The committees of the Governing Body currently operated as follows:

The Audit, Risk & Compliance Committee – consists of no more than four Governors. The Chair should not also be the Chair of the Finance and General Purposes Committee. The Committee usually meets twice a year. Its terms of reference are to receive reports from the School’s auditors, to agree the form of the annual audit, to recommend to the Governing Body the adoption of the Annual Accounts, to monitor the risk management process and allocate risk management responsibilities to other committees or the Executive, to monitor Health & Safety and to oversee and review compliance generally at the School.

The Education and Safeguarding Committee – consists of up to seven Governors and usually meets three times a year. Its terms of reference are to consider all educational matters (including but not limited to academic, pastoral and co-curricular areas) and all safeguarding matters; proposed developments of the educational and safeguarding provision, to receive reports from relevant members of staff on issues of note concerning the educational provision of the School or raised by any member of the Governing Body, and to monitor and oversee compliance with educational, pastoral and safeguarding requirements.

The Finance and General Purposes Committee consists of up to seven Governors and usually meets four times a year. Its terms of reference are to recommend revenue and capital budgets and fee levels to ensure a sound commercial operation; to monitor the financial position of the School; to explore opportunities for the development, expansion and refurbishment of the School’s buildings and property; to submit proposals and to monitor the implementation of major projects; to advise on the financial implications of projects and recommendations from other committees; and to approve or recommend changes to the School’s financial policies.

The Investment Committee – meets twice a year and consists of up to four members including the Chair or Vice-Chair of the Governing Body, the Chair of the Finance and General Purposes Committee and a Governor with relevant financial experience. Its terms of reference are to select and appoint advisory and/or discretionary investment managers, to make recommendations on investment policy, to monitor investment performance and appropriateness, to take investment advice as appropriate and approve transactions recommended by appointed financial advisers.

The Marketing and Admissions Committee – consists of up to four Governors and meets twice a year. Its terms of reference are to agree the Admission policy, to ensure a strategy for marketing and publicity, to review admissions against target and to agree Bursary guidelines.

The Nominations and Governance Committee – consists of up to four Governors including the ViceChair of the Governing Body, and meets at least twice a year. Its terms of reference are to lead on matters of succession planning and composition of the Governing Body; to co-ordinate and follow the required process for recruitment of new Governors; to ensure that new Governors receive a proper induction; to integrate and co-ordinate all aspects of governance and legal and regulatory compliance; to keep under review the Governors’ register of interests and to advise on conflicts of interest where required.

The Staffing and Remuneration Committee – meets at least once a year and consists of the Chair of Governors, the Chair of the Finance & General Purposes Committee and not more than three other Governors. Its terms of reference are to review the pay and conditions of all staff including determining the remuneration of the Head Master, the Deputy Heads, the Director of Finance and Operations and Assistant Heads; and to consider other staff related matters.

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KINGSTON GRAMMAR SCHOOL ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023

During the year, 22 meetings of the Governing Body or one of the committees were held and attendance by Governors at these meetings averaged 88%.

All Governors are linked to a member of the School Executive and spend time during the year so that they can experience and understand better how the School operates. Certain Governors fulfil functional roles, relating to Safeguarding and Health & Safety to ensure legal compliance.

All Governors give their time freely and no remuneration was paid in the year. Where Governors have children who are students at the school there are no special arrangements in respect of the fees payable. Governor’s children are eligible for means-tested fee assistance or scholarships in accordance with normal school policies and practice. Governors do not participate in decisions regarding awards of fee assistance or scholarships insofar as their own children are involved.

The day-to-day running of the School is delegated to the Officers, known collectively as the School Executive, who attend relevant meetings of the above governors’ committees. The School’s Executive comprises: Stephen Lehec (Head Master), David Leen (Director of Finance & Operations), Sarah Humphrey (Deputy Head – Development, Outreach & Partnerships), Will Cooper (Deputy Head – Academic), Deborah Sherwood (Assistant Head), Andy Beard (Assistant Head), Anoushka Lett (Assistant Head), Nick Hudson (Assistant Head), Alison Williams (Assistant Head), Adam House (Assistant Head) and Nicola Sloan (Director of Human Resources).

The framework for remuneration of the School staff is set by the Governing Body and is reviewed annually, including reference to comparisons with other independent schools to ensure the School remains sensitive to the broader issues of pay and employment conditions in the local area.

The School has developed a HMC Teacher Training programme to offer professional development to support wider education with well trained teachers in all areas. It brings an outlook of modern teaching methods at the School and provides community benefit as teachers exchange with their state school counterparts. Delivery of the School’s charitable vision and purpose is primarily dependent on our key staff and their costs are the largest single element of our charitable expenditure.

Employment Policy

The School actively supports the attainment of the highest standards of education through rigorous and continuous evaluation of quality and performance, the application of best practice and a widespread desire to improve standards.

The School is an equal opportunities employer. Full and fair consideration is given to job applications from disabled persons and due consideration is given to their training and employment needs. Consultation with employees, or their representatives, has continued at all levels with the aim of taking the views of employees into account when decisions are made that are likely to affect their interests. Employees are made aware of the financial and economic performance of the School.

STATEMENT OF ACCOUNTING AND REPORTING RESPONSIBILITIES

The Governors (who are also directors of Kingston Grammar School for the purposes of company law) are responsible for preparing the Governors’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the Governors to prepare Financial Statements for each financial year. Under company law the Governors 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 group and charitable company and of the incoming resources and application of resources, including the income and expenditure, of the group and charitable company for that period. In preparing these financial statements, the Governors are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgments and estimates that are reasonable and prudent;

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KINGSTON GRAMMAR SCHOOL ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023

• state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and charitable company will continue in business.

The Governors are responsible for ensuring adequate accounting records are kept and are sufficient to show and explain the group and charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the group and charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the group and charity’s constitution. They are also responsible for safeguarding the assets of the group and charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Insofar as each of the Directors, as members of the Governing Body, at the date of approval of this report is aware there is no relevant audit information (information needed by the Company’s auditor in connection with preparing the audit report) of which the Company’s auditor is unaware. Each member of the Governing Body has taken all the steps that he or she should have taken as a member of the Governing Body in order to make himself or herself aware of the relevant audit information and to establish that the Company’s auditor is aware of that information.

In preparing these Financial Statements, the Governors, having duly considered the benefits to the School of so doing, have resolved to adopt a total returns accounting approach to two of the Schools permanent endowments: the RD Finlay Bursary Fund and the KGS Bursary Fund. The following information is relevant to these funds:-

For the RD Finlay Bursary Fund:

• the initial value of the funds trust for investments was established as at 29 June 2017 when Mr RD Finlay gave the School £2,000,000 in cash;

• at that date the value of the Fund’s unapplied total return was £nil; and

• It is the object of the RD Finlay Bursary Fund to fund the provision of bursaries and fee assistance for students of the School who satisfy the Fund’s Bursary Policy and the Governors consider that this object is best served by maximising the capacity of the Fund to finance these bursaries and fee assistance. Consequently, it is currently the Governors policy to make annual transfers of the unapplied total return arising on the Funds trust for investment to the Funds trust for application. The resulting cash and investments held within the trust for application are subject to the same investment as apply to the trust investment.

For the KGS Bursary Fund:

• the initial value of the funds trust for investments was established as at 1 November 2017 when the School received a donation in cash of £532,221. This together with a founding contribution to the Fund of £10 established the Funds initial trust for investment of £532,231;

• at that date the value of the Fund’s unapplied total return was £nil; and

• It is the object of the KGS Bursary Fund to fund the provision of bursaries and fee assistance for students of the School who satisfy the Fund’s Bursary Policy and the Governors consider that this object is best served by maximising the capacity of the Fund to finance these bursaries and fee assistance. Consequently, it is currently the Governors policy to make annual transfers of the unapplied total return arising on the Funds trust for investment to the Funds trust for application. The resulting cash and investments held within the trust for application are subject to the same investment as apply to the trust investment.

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KINGSTON GRAMMAR SCHOOL ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023

STRATEGIC REPORT

MISSION STATEMENT

Kingston Grammar School aims to provide the best and broadest educational opportunities possible, in a caring and supporting environment where all are instilled with the virtues of regard, integrity and aspiration. The School also encourages all staff and students to be engaged in productive partnerships whilst fostering a high degree of independence, both now and in future life.

ACTIONS TO ACHIEVE THE PRIMARY OBJECTIVES

The School had its highest ever student roll.

Our actions to achieve the year’s objectives included:

• promoted available fees assistance and support to potential students and their families;

• maintained positive engagement with parents through various channels, including newsletters;

• monitor the entrance assessment to ensure a balanced experience despite increased numbers;

• ensured that all communication is of the highest standard with a consistent message and responded to the recommendations of the external communications review;

• used department meetings and INSET to share areas of good practice and development points that needed to be worked on/eradicated;

• celebrated student successes and achievements within an established framework of assemblies and publications, online and hard copy.

To promote high academic standards and broaden access, the School has the following specific policies:

• Scholarships – Our scholarships are awarded on the basis of the individual’s academic potential or evidence of exceptional abilities which will contribute to our co-curricular activities. Scholarship awards are normally set at 10% but do range from honorary awards up to 40% remission of full fees at 11+, 13+ and 16+, allowing the School to provide further resources to means-tested fee assistance, whilst not increasing the burden on fee-paying parents. Where further assistance is required, scholarship awards may be supplemented by a means-tested bursary, up to a total of 100%.

• Fee Assistance (formerly Bursaries) – Our means-tested fee assistance, up to 100% of full fees, are used to make places available for deserving students from families who might otherwise not be able to afford school fees or to those students whose education may be at risk due to financial hardship. We also make additional awards when necessary to pay for co-curricular activities, school trips and uniform.

• Assistance for staff – As part of our emphasis on attracting and retaining high calibre staff, we offer a discount scheme where staff members choose to educate their children at the School.

• Fee payment – A monthly payment facility is available to help those who wish to fund education through regular payments.

The Governors’ policy is to offer the School’s educational provision to as many children as possible, regardless of means, whilst continuing to promote high academic standards. Our aim is to allow at least 35 students at any one time to be in receipt of free places or a greater number in receipt of lower levels of support. We actively promote the availability of fee assistance and scholarships in our promotional material and at all events and activities designed to recruit and attract prospective students.

We welcome students from all backgrounds and seek to ensure access to the education we offer is not restricted to those who can afford our fees as we believe our students benefit from learning within a diverse community. To be admitted to the School, we need to be satisfied that we will be able to educate and develop a prospective student to the best of their potential and in line with the general standards achieved by their peers. In addition to the sitting of entrance examinations, we interview all those prospective students where, on the evidence of their written papers, there is a possibility that we might make an offer of a place, to satisfy ourselves and parents that potential students can cope with the pace of learning and benefit from the education we provide. An individual’s economic status, gender, ethnicity, race, religion, or disability do not form part of our assessment.

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KINGSTON GRAMMAR SCHOOL ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023

Our fees are set at a level to ensure the financial viability of the School, at a level that is consistent with our aims of providing a first-class education to boys and girls, and at a level that balances the aim of providing wide access with the needs of full fee-paying parents.

ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

Principal activities of the year

This year has again been a successful year, the School’s student population averaged 873 students (2022: 870). The ratio of boys to girls was 51%:49% (2022 52%:48%).

The level of interest in joining the School remains high, as witnessed by attendance at open events.

Governors’ scholarships and fee assistance

Since the School has limited specific fee assistance or scholarship funds the provision of such grants is made in part from the School’s general funds. In funding our awards, we are mindful to ensure a balance between fee-paying parents, many of whom make considerable personal sacrifices to fund their child or children’s education, and those benefiting from the awards. During the year, grants totalled £2,144k (2022 £1,949k) representing 11.0% of our gross fees (2022: 10.6%). This amount comprised:

• £663k (2022: £646k) to provide scholarships for Academic studies, Music, Art, Design & Technology, Drama and Sport to 175 students (2022 190 students), with awards ranging from 10% to 40% (2022: 10% to 40%);

• Fee assistance awarded to those in need of financial assistance at the time they entered the School totalled £827k (2022: £714k) to 42 students (2022: 40 students) with awards ranging from 40% to 100% (2022: 40% to 100%), including: 29 students (2022: 27 students) with fee assistance awards of 100%;

• Hardship fees assistance awards totalled £248k (2022: £200k);

• Staff grants and other discounts accounted for £406k (2022: £389k); and

• In 2022/23 the KGS Foundation supported 2 students with 100% fee assistance. Additionally, the RD Finlay Bursary Fund supported 3 students with awards of a 100% fee assistance and KGS Bursaries Fund 1 students at 100% fee assistance. The KGS College Fund supported a further student with 100% support.

Academic achievements

Academic success is the main priority at KGS. Throughout the School we strive to provide flexibility and a personalised learning programme for each student. Aspiring to, and achieving, excellence is at the heart of everything we do, and this year’s examination results deservedly reflect the hard work of the students and teachers.

At GCSE in 2023, despite the return to the 2019 grading standard, students produced excellent results with 90% at grades 9-7 (2022: 92%), including 73.7% at grades 9-8 (2022: 75%). 17 students gained grade 9 in all their subjects, and over 95% of students achieved at least one 9/8 grade. Impressive results were achieved by individuals, one student with 13 x 9s; two students with 11 x 9’s, and four students with 10 x 9’s.

At A Level 30.8% (2022: 38.7%) of all grades were As and 37.7% (2022: 36.5%) of all grades were As, giving a combined 68.5% (2022: 76.2%) A-A. Of the students achieving at least an A grade in three or more subjects, 21 achieved 3 A*s or higher (2022: 17). This was a particularly strong set of results given the changes in the grading standard and reduction of top grades awarded nationally.

This year 84% (2022: 79%) of the students gained a place at their first-choice university of which 79% (2022: 81%) were Russell Group universities. The most popular destinations were Nottingham (11) Newcastle (11) Manchester (10) Leeds (7) Exeter (7) Bath (5) Bristol (5) Durham (5) Cambridge (4) Edinburgh (4) Royal Holloway (4) Sheffield (4) York (4). In total 6 students won places at Oxford and Cambridge colleges with 6 going off to study overseas, including 3 on sports scholarships in the US.

Outreach & Partnership Programme

KGS has strengthened links and relationships with local primary and secondary state schools over the last year.

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KINGSTON GRAMMAR SCHOOL ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023

The school works extensively with its local state primary school, St Joseph’s. Last year, we maintained a number of long running projects with St Joseph’s (such as supervised reading with younger year groups by 6th Form students, the gardening club and language leaders’ classes) and developed new projects such as a Drama project where staff and 6th Form students supported St Joseph’s to put on a play.

The school has also provided ICT support in our partnerships work with local primary schools. The school has run workshops for year 6 children, such as the Faraday Challenge, but also provided ICT professional development for staff in primary schools to build their knowledge and enhance their ability to develop their own curriculum.

Closer links have been established to support academic attainment and to provide UCAS and careers support in local secondary schools. The school’s Director of Careers and Universities has attended TKA for an afternoon per week and conducted one to one appointments with all of their U6th students to discuss their options and support their applications process. Additionally, the school ran a Maths revision workshop for local state schools, focusing on students on the 6/7 border to push them to develop their mathematical thinking.

Additionally, professional support has been provided to new Heads of Department at TKA through peer support from Heads of Department at KGS.

The PE department have offered significant support for Sport in the Borough. We hosted the Borough’s Primary School Cross Country competition. Additionally, we have provided physical resources to local schools (such as hockey sticks and balls) in addition to PE CPD and support in delivering their PE curriculum.

Co-curricular achievements 2022-23

In Music and Drama

• Fifteen students participated in the Pro Corda Chamber Music Festival.

• The Autumn Term Concert, the Carol Service, Jazz Night, Spring Term Concert, the Scholars’ Concert and House Music, Dance and Drama events all took place.

• 80 parents and friends of the school took part in the KGS Choral Society Concert at St Andrew’s, Surbiton.

• The school hosted a Jazz Workshop by renowned Jazz artist Laura Gerde.

• The Junior, Middle and Senior School productions were: Treasure Island, Jekyll and Hyde Everyman.

• One student secured a place at the prestigious Mountview Drama School for their full 3 year BA acting course. In addition, a further student has gone on to study Theatre Tech at the Guildhall and another to study set and costume design.

Rowing

• One student was selected for the Great Junior Rowing Team and the World Championships, winning a Gold Medal and becoming our first female Junior World Champion.

• The girls’ quadruple scull raced at the Henley Royal Regatta.

• At the National Schools’ Regatta, four crews reached the A Finals and one recorded a silver medal.

• At British Junior Rowing Championships, six crews reached the A Finals with five winning silver medals, whilst one won a gold medal in the WJ18 1x.

• Four students were selected to race at the Inter-Regional Regatta for the Thames Region.

Hockey

• 1st XI Girls - Bronze Medal - Independent Schools’ Cup.

• 3rd Place Tier 1 England Hockey Competition - East Region

• 1st XI Girls Indoor - 2nd Place Surrey Finals

• U16 Girls Indoor - 3rd Place Surrey Finals

• U15 Girls - London Cup Winners

• U13 Girls - Quarter Finals of Independent Schools Cup. London Hockey Finalists - 3rd Place.

• U12A Girls - London Hockey Finalists

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KINGSTON GRAMMAR SCHOOL ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023

• U12B Girls - London Heats Winners and London Hockey Finalists

• One student was selected to be part of the Great Britain Elite Development Programme Squad.

• One student was selected for the England U18 Girls’ Training Squad.

• Two students were selected for the England U18 Boys’ Hockey Team, with one captaining the side. One boy was selected for the England U16 Hockey Team.

• Six students were part of the England Hockey Talent Academy.

Other sports

• U13 Girls were indoor cricket county champions, regional finalists and county champions, outdoor.

• U13 Boys were indoor cricket county finalists.

• Overall win percentage was 55.2% across all cricket. Which is the most successful co-ed cricket season in the school’s history.

• U13 Girls’ Tennis. Surrey Schools Champions, LTA Youth Schools (Div 2) County Champions

• U13 Boys’ Tennis, ISTA Championships S/Finalist, Surrey Schools Runner-up, LTA Youth Schools (Div 2) County Champions

• U15 Boys’ Tennis, Surrey Schools Finalists

• U12 Boys’ Tennis, LTA Youth Schools (Div 2) County Runner-up

• U14 Girls’ Tennis, Surrey Schools Festival (Tier 2) Semi-Finalist

• U15 Girls’ Football team were Semi-Finalists in their national competition.

• One student was selected for the Surry Junior Golf Team.

• One student represent Great Britain at the World Junior Canoeing Championships.

Other achievements

• The Combined Cadet Force RAF Section finished fourth overall in the national RAF Cadet competition, the Air Squadron Trophy.

• Additionally, the KGS CCF was one of just two contingents of the CCF in the UK to be invited to participate in the 2023 Remembrance Sunday Event at the Cenotaph.

FINANCIAL REVIEW

Results for the year

The School endeavours to ensure financial stability and continuing solvency year on year so that it can pursue its educational aims and objectives. The Consolidated income for the year was £19,219k (2022: £19,400k). Fee rates increased by 5.0%. 2022 income benefitted from a £1M donation to the endowment fund alongside other donations income. The income from KGS International was £340k (2022: £679k).

Group expenditure was £17,915k (2022: £16,810k) an increase of 6.6%. Staff costs increased by £1m, up 9.2% comprising additional appointments and cost–of-living and pay-spine increases and amounts to 67.7% (2022: 66.0%) of total expenditure.

The net operating surplus before investment gains was £1,304k including donations of £107k (2022: surplus: £2,590k, donations: £1,210k). The results for the year include an unrealised investment loss of £15k (2022: £68k loss).

The Group net operating surplus for the year totals £1,289k (2022: £2,522k) and, as a result, total funds have increased from £22,466k to £23,755k. Details of the Charity’s funds are given in note 15 to 17 in these Financial Statements.

During the year, capital expenditure was £345k (2022: £685k). At the balance sheet date, the Group’s borrowings with Barclays Bank totalled £5,718k (2022: £6,641k). Details of the Charity’s borrowings are given in note 12.

Through effective financial planning and sensible cost control measures, we have been able to end the year

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KINGSTON GRAMMAR SCHOOL ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023

with a reasonable surplus, all of which will be reinvested in the School. Student numbers remained strong.

KGS International Limited

In autumn 2021 the School, operating through its 100%-owned trading company KGS International Limited, signed a long-term agreement with the Mountain Education Group in China. This is working in an advisory capacity, supporting educational delivery with a new school based in Suzhou which opened in September 2022. These activities are overseen by the International Steering Group which reports into the Governing Body. The financial activities of KGS International Limited are consolidated into these financial statements, including note 8 to the accounts. The surpluses from this activity will support fees assistance at KGS.

Fundraising performance

The KGS Foundation has continued to make progress thanks to the many generous donations from the Old Kingstonians, parents, staff, governors, and friends of the School.

Overall, in our financial year to 31 July 2023, fundraising income of £107k was received, including £52k for the KGS Bursary Foundation, £1k for Prizegiving, £24k of royalty income for the RC Sherriff Fund, £22k for the College Bursary Fund and £8k of unrestricted donations.

The Governors would like to thank all donors for their generosity which is hugely appreciated and which will make a real difference in shaping the future of the School. In addition, Governors would like to thank the KGS Foundation Board, the ambassadors and KGS Friends representatives for their considerable efforts and commitment.

No professional fundraisers conducted any fundraising activities on behalf of the School during the year. The School is formally registered with the Fundraising Regulator demonstrating our commitment to 'good fundraising practices' and adheres to the Code of Fundraising Practice. There are no instances to report of the School failing to comply with fundraising standards or schemes for fundraising regulation.

Investment Policy & Performance

Details of the Charity’s investment policy are given in note 1 to these Financial Statements. The Charity retains permanent endowment investment securities and recorded an unrealised market value loss of £15k (2022 loss: £68k). The investments continue to be closely monitored by the Investment Committee to ensure they are able to meet their bursary funding requirements.

Total Return Accounting

The School adopted Total Return Accounting for the RD Finlay Bursary and KGS Bursary permanently endowed Funds from 29 June 2017 and 1 November 2017 respectively. The initial amounts of the trust for investments are represented by the donations of £2,000k in respect of the RD Findlay Bursary Fund received in June 2017, and £532k, received in November 2017 in respect of the KGS Bursary Fund. Since inception of each fund, further donations have been received for each fund: being £1,218k and £198k respectively.

Reserves policy

The Governors regularly review the level and nature of the School’s reserve funds.

The School continues to invest substantial sums into new and upgraded buildings and for the provision of educational equipment. There are no free reserves and the majority of funds are invested in the tangible fixed asset properties. The Governors continue to be satisfied that cash holdings and the opportunity to obtain external financial facilities provide an additional and adequate safety net, if it should be required.

Funds total for the Group is £23,755k at 31 July 2023 (2022: £22,466k) made up of £5,526k endowment capital, £552k restricted funds and £17,677k unrestricted funds which are all designated, mainly to the fixed asset fund.

Future Plans

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KINGSTON GRAMMAR SCHOOL ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023

The Governing Body continues to pursue the Charity’s general objectives as set out earlier. Whilst the impact of the pandemic is largely behind us and although we now face economic uncertainties, inflation pressures and parent affordability, the school can nevertheless face the future with some confidence supported by record number of students on roll as at November 2023. Governors intend to continue their current strategies of maintaining the School’s position in a competitive market by investing to provide high quality education for our students.

The School Strategic Plan 2022-25 has the following strategic objectives:

Curriculum & Learning

Plan and deliver exceptional teaching and learning within a curriculum and assessment framework which gives all students the skills and learning disposition to make continuous progress and achieve the currency they need to follow their chosen path beyond KGS.

Wellbeing & Care Education

Deliver an unrivalled level of pastoral care, alongside a wellbeing and education programme that will enable all KGS students to take responsibility for their personal development and, make well-informed life choices that help to promote a positive and respectful culture for all members of the school and wider community.

Opportunities & Activities

Develop the character of all students through the provision of a range of enriching and engaging opportunities in co-curricular and beyond.

Sixth Form

To prepare students to enter the world beyond school with the credentials to succeed, the confidence to adapt to a fast-changing world, and the leadership skills to create positive change.

Marketing & Admissions

Attract, admit, and retain the students who have the greatest potential to benefit from an education at KGS.

Staff Recruitment, Development & Retention

Recruit and retain the best teaching and support staff who are committed to the School vision and live by the core School values.

Finance & Estate Management

To maintain and grow income to provide optimum investment in the long-term future of the School and to ensure high quality facilities to deliver education to the highest standards.

The Governing Body and School’s management recognise the importance of strong cost control, seeking to contain cost increases as much as possible while ensuring that the School continues to deliver first class education and pastoral care and the requirement to meet student needs and parent requirements through major facility developments. In setting our future plans, which are financed primarily from fee income and from our reserves, Governors have tried to maintain an equitable balance ensuring our current students benefit whilst, at the same time, ensuring a sound infrastructure and financial base are preserved for the next generation of students in the same way as our current students benefit today from the investment made in the past.

GOING CONCERN

The Governors have assessed the School’s ability to continue as a going concern. The Governors have considered several factors when forming their conclusion as to whether the use of the going concern basis is appropriate when preparing these financial statements including the budget for 2023/24 and the projection for 2024/25 and a consideration of key risks.

The trustees therefore have a reasonable expectation that the school has adequate resources to continue in operational existence for the foreseeable future being at least twelve months from the date of approval of these financial statements and are not aware of any other material uncertainties which may adversely affect the organisation. Accordingly, the financial statements continue to be prepared on the going concern

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KINGSTON GRAMMAR SCHOOL ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023

basis.

RISK MANAGEMENT

The Governors annually consider the principal areas of the School’s operations and consider the major risks faced in each of these areas. Utilising a Risk Management matrix, the School Executive and appropriate Committees identify new risks and monitor control over existing risks throughout the year. A formal review of the risk management process is undertaken by the School Executive and the Audit & Risk Management Committee on an annual basis.

The Governors are satisfied that the major risks identified have been adequately mitigated where necessary, recognising that systems can only provide reasonable, but not absolute assurance that risks have been adequately managed.

The principal risks identified are:

Risk	Mitigation
Inflation and associated economic	F&GP overseeing the financial performance and forecasting
pressures
Effectiveness of the safeguarding policy	Appointment of Designated Safeguarding Lead; regular
including responsibilities of the “Prevent”	training of staff and governors; regular reporting to School
duty	Executive and Governors
Cyber-attack or hacking of data	Robust Acceptable Use Policy; regular backups; external
	testing; insurance backed disaster recovery plans
Change of VAT status on fees	Ongoing monitoring; impact assessment undertaken
Meeting the requirements of the Public	Ongoing monitoring and recording of public benefits
Benefit test	provided.
Parents experiencing financial difficulty	Availability of some hardship funding. Intention to grow
and unable to afford the fees	bursary funds

OUR COMMUNITY

The School and Governing Body greatly appreciate the important and valuable support given to the School in so many ways by the whole KGS Community, including all students, current and former parents, Old Kingstonians, and many other friends of the School. Above all, the Governing Body remains deeply grateful to the entire staff, both teaching and support, whose unstinting hard work and loyalty have enabled the School to achieve its major objectives reflected in the ISI report. We are grateful to all for their commitment, generous and continuing support, and their efforts.

This Annual Report, prepared under the Charities Act 2011 and the Companies Act 2006, was approved by the Governing Body of Kingston Grammar School on 12[th] December 2023, including in their capacity as company directors approving the Strategic Report contained therein, and is signed as authorised on its behalf by:

Robert O’Dowd Chair

Jatinder Harchowal Vice-Chair

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KINGSTON GRAMMAR SCHOOL INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 JULY 2023

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF KINGSTON GRAMMAR SCHOOL

Opinion

We have audited the financial statements of Kingston Grammar School (‘the charitable company’) and its subsidiary (‘the group’) for the year ended 31 July 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Balance Sheet, Consolidated Statement of Cash Flows 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group’s and charitable company’s affairs as at 31 July 2023 and of the group’s income 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 (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 group 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 trustee's 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 or the group'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 trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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KINGSTON GRAMMAR SCHOOL INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 JULY 2023

• the information given in the trustees’ report, which includes the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate and proper accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain 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.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 8, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations

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KINGSTON GRAMMAR SCHOOL INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 JULY 2023

we considered in this context were the Companies Act 2006, taxation legislation, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent School Standards) Regulations 2014, General Data Protection Regulation (GDPR) and Employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Audit & Risk Management Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, Independent Schools Inspectorate, Ofsted and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

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

Vincent Marke Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor – London Date: 20.12.2023

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KINGSTON GRAMMAR SCHOOL CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2023

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

Notes: Income and endowments from: Charitable activities - School fees receivable 2 - Other charitable income 3a Activities for raising funds: - Donations 3b - Ancillary trading 3c - Investment income 3d Other activities - Other income & Grants 3e Total income Expenditure on: Raising funds - Ancillary trading 5 - Financing 5 - Fundraising & Development 5 Charitable activities - Education and grant making 5, 15, 16 Total expenditure Net income before transfers and investment (losses) Net (losses) on investments 8 Transfers between funds 15, 18 Net income Fund balances brought forward at 1 August 2022 FUND BALANCES CARRIED FORWARD AT 31 JULY 2023	Unrestricted Funds £'000 17,489 698 8 512 272 22 19,001 - (470) (73) (543) (17,188) (17,731) 1,270 - 12 1,282 16,395 17,677	Restricted Funds £'000 - - 99 - 15 - 114 - - - - (70) (70) 44 - - 44 508 552	Endowed Funds £'000 - - - - 104 - 104 - - (20) (20) (94) (114) (10) (15) (12) (37) 5,563 5,526	2023 £'000 17,489 698 107 512 391 22 19,219 - (470) (93) (563) (17,352) (17,915) 1,304 (15) - 1,289 22,466 23,755	2022 £'000 16,661 635 1,210 804 84 6
					19,400
					- (623) (99)
					(722) (16,088)
					(16,810) 2,590 (68) -
					2,522 19,944
					22,466

All the Group operations represent continuing activities. There were no recognised gains or losses other than those shown above. A copy of the Statement of Financial Activities for the year ended 31 July 2022 is provided in note 25.

Page 20

KINGSTON GRAMMAR SCHOOL CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED 31 JULY 2023

CONSOLIDATED BALANCE SHEET

		2023	2023	2022
	Notes:	£'000	£'000	£'000
FIXED ASSETS
- Tangible fixed assets	7		18,526	19,463
- Investments	8		4,506	4,399
			23,032	23,862
CURRENT ASSETS
- Debtors	9	984		979
- Cash and short-term deposits		9,991		9,389
		10,975		10,368
CREDITORS: due within one year	10	(5,148)		(5,503)
NET CURRENT ASSETS			5,827	4,865
TOTAL ASSETS LESS CURRENT LIABILITIES			28,859	28,727
CREDITORS: due after one year	11		(5,104)	(6,261)
TOTAL NET ASSETS			23,755	22,466
THE FUNDS OF THE CHARITY
ENDOWED FUNDS	15		5,526	5,563
RESTRICTED FUNDS	16		552	508
UNRESTRICTED FUNDS	17
- Fixed assets fund		17,399		15,828
- Other designated funds		120		120
- KGSI		158		447
TOTAL UNRESTRICTED FUNDS			17,677	16,395
TOTAL CHARITY FUNDS			23,755	22,466

Approved and authorised for issue by the Governors on 12[th] December 2023 and signed on their behalf

by:

Robert O’Dowd Chair

Jatinder Harchowal Vice-Chair

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KINGSTON GRAMMAR SCHOOL BALANCE SHEET FOR THE YEAR ENDED 31 JULY 2023

KGS SCHOOL BALANCE SHEET

		2023	2023	2022
	Notes:	£'000	£'000	£'000
FIXED ASSETS
- Tangible fixed assets	7		18,526	19,463
- Investments	8		4,506	4,399
			23,032	23,862
CURRENT ASSETS
- Debtors	9	1,092		1,182
- Cash and short-term deposits		9,718		8,730
		10,810		9,912
CREDITORS: due within one year	10	(5,141)		(5,494)
NET CURRENT ASSETS			5,669	4,418
TOTAL ASSETS LESS CURRENT LIABILITIES			28,701	28,280
CREDITORS: due after one year	11		(5,104)	(6,261)
TOTAL NET ASSETS			23,597	22,019
THE FUNDS OF THE CHARITY
ENDOWED FUNDS	15		5,526	5,563
RESTRICTED FUNDS	16		552	508
UNRESTRICTED FUNDS	17
- Fixed assets fund		17,399		15,828
- Other designated funds		120		120
TOTAL UNRESTRICTED FUNDS			17,519	15,948
TOTAL CHARITY FUNDS			23,597	22,019

Approved and authorised for issue by the Governors on 12[th] December 2023 and signed on their behalf

by:

Robert O’Dowd Chair

Jatinder Harchowal Vice-Chair

Page 22

KINGSTON GRAMMAR SCHOOL CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2023

CONSOLIDATED STATEMENT OF CASH FLOWS

Cash flows from operating activities: Net income for the reporting period Elimination of non-operating cash flows: - Loss/(profit) on sale of tangible fixed assets - Interest charged on loans and overdraft - Investment income and bank interest received - Amounts accrued to fees in advance Unrealised losses on investments added back Depreciation charges added back (Increase) in Debtors (Decrease)/Increase in Creditors Increase/(Decrease) in Parent Deposits held (Decrease)/Increase in Fees in Advance Scheme Net cash provided by operating activities Cash flows from investing activities - Payments for tangible fixed assets - Disposal of tangible fixed assets - (Profit)/Loss on sale of tangible fixed assets - Fixed Asset Adjustment - Investment income and bank interest received - Purchase of investments and investment costs - Disposal of investments Net cash (used) in investing activities Cash flows from financing activities: - Interest paid on loans - Repayment of borrowings Net Cash (used)/generated in financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents as at 1 August 2022 Cash and cash equivalents as at 31 July 2023 ANALYSIS OF CASH AND CASH EQUIVALENTS Cash and cash equivalents Long-term deposits Total cash and cash equivalents	2023 £'000 1,289 79 470 (391) - 15 1,211 (5) (630) 378 (337) 2,079 (345) 77 (79) (6) 391 (122) - (84) (470) (923) (1,393) 602 9,389 9,991 9,991 - 9,991	2022 £'000 2,522
		(1) 623 (84) - 68 1,142 (10) 563 (148) 220
		4,895
		(685) - 1 - 84 (44) -
		(644)
		(623) (857)
		(1,480) 2,771 6,618
		9,389
		9,389 -
		9,389

Page 23

KINGSTON GRAMMAR SCHOOL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1 ACCOUNTING POLICIES

The Financial Statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Companies Act 2006 and the Statement of Recommended Practice applicable to charities preparing their account in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) – effective 1 January 2019.

The functional currency of the school is GBP because that is the currency of the primary economic environment in which the school operates.

The Financial Statements are drawn up on the historical cost accounting basis except investment assets that are carried at market value.

Kingston Grammar School Foundation was founded in 1561 and was registered by the Charity Commission for England and Wales under a scheme dated 14 September 1978 (Charity number 1078461). Under the Charity Commission Scheme made on 30 December 1999 the running of the School, together with all the Foundation’s unendowed assets and all its liabilities were transferred to the Kingston Grammar School as corporate and trust funds, while the permanently endowed School premises remained with the Foundation.

The school is a public benefit entity registered as a charity in England and Wales and a company limited by guarantee. It was incorporated on 31 December 1999 (Company number 3883748).

The activities of the school’s wholly owned subsidiary company, KGS International Limited, are immaterial to those of the school and consolidated accounts have, therefore, not been prepared.

1.1 Going Concern Having reviewed the funding facilities available to the School together with the expected ongoing demand for places and the Schools future projected cash flows, the Governors have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future. The Governors have reviewed the position carefully with a view to ensuring the ongoing provision of schooling for the pupils as well as employment of staff. The Governors believe the School’s financial resources are sufficient to ensure the School will continue as a going concern for the foreseeable future, being at least 12 months from the date the sign-off of these accounts.

1.2 Critical accounting judgements and key sources of estimation uncertainty In the application of the accounting policies, Trustees are required to make judgment, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 ongoing 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 revision and future periods if the revision affected current and future periods. In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

1.3 Fees and similar earned income

Fees receivable and charges for services and use of the premises, less any allowances, scholarships, fee assistance granted by the school against those fees, but including contributions from restricted funds are accounted for in the period in which the service is provided.

1.4 Investment Income Investment income from dividends, bank balances and fixed interest securities is accounted for on an accrual basis.

1.5 Donations, legacies, grants, and other voluntary income Voluntary income is accounted for as and when entitlement arises, the amount can be reliably quantified

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KINGSTON GRAMMAR SCHOOL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

and the economic benefit to the school is considered probable. Voluntary income for the school’s general purposes is accounted for as unrestricted and is credited to the General reserves. Where the donor or an appeal has imposed trust law restrictions, voluntary income is credited to the relevant restricted fund and incoming endowments are accounted for as permanent trust capital or expendable trust capital, according to whether the donor intends retention is to be permanent or not. Gifts in kind are valued at estimated open market value at the date of the gift, in the case of assets for retention or consumption, or at value to the school in the case of donated services or facilities.

1.6 Expenditure

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities. Expenditure attributable to more than one cost category in the SoFA is apportioned to them on the basis of the estimated amount attributable to each activity in the year, either by reference to staff time or the use made of the underlying assets, as appropriate. Irrecoverable VAT is included with the items of expenditure to which it relates.

Governance costs comprise of the costs of complying with constitutional and statutory requirements.

1.7 Tangible Fixed Assets

Expenditure on the acquisition, construction or enhancement of land and buildings costing more than £10k together with any individual or bulk purchases of vehicles, IT equipment, boats and boat club equipment, office, admin or teaching equipment costing over £1k, with a life expectancy of over two years, are capitalised and carried in the balance sheet at historical cost.

Depreciation is provided to write off the cost of all relevant tangible fixed assets less estimated residual value based on current market prices, in equal instalments over their expected useful economic lives typically as follows: -

Freehold buildings	2%
Artificial Pitch	10%
Boats and Boat Club equipment	15%
Motor vehicles	20%
Field equipment and tractors	20%
Computers, teaching, kitchen, cleaning, office equipment	20% - 33%
Plant, Fittings & Refurbishment	3% - 20%
Note: Each asset is assessed on acquisition for appropriate useful life

1.8 Investments

Listed investments are valued at market value as at the balance sheet date. Unrealised gains and losses arising on the revaluation of the investments are credited or charged to the Statement of Financial Activities and are allocated to the appropriate Fund accordingly to the ownership of the underlying assets.

1.9 Fund Accounting

The charitable trust funds of the school are accounted for as unrestricted and restricted income, or as endowment capital, in accordance with the terms of trust imposed by the donors or appeal to which they may have responded. Endowment funds are further sub-divided into permanent and expendable.

Unrestricted income belongs to the school’s reserves, spendable at the discretion of the governors either to further the school’s objectives or to benefit the school itself. Where the Governors decide to set aside any part of these funds to be used in the future for a specific purpose, this is accounted for by transfer to the appropriate designated fund.

Restricted income comprises gifts, legacies, and grants where there is no capital retention obligation or power but only a trust law restriction to some specific purpose intended by the donor.

Permanent endowed funds represent amounts donated to the School where the donor has specified that the capital is to be retained and only the income arising thereon may be spent. The income is treated as unrestricted income. The School has adopted total return accounting for two funds which results in all returns on the underlying investments whether dividends or gains being allocated to the fund and being

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KINGSTON GRAMMAR SCHOOL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

available for application by the Governors. The Governors will decide each year on the level of application of any unapplied total return which is recorded in the Statement of Financial Activities.

Expendable endowed funds represent capital expenditure on the School buildings on the permanently endowed land up to the date of the 1978 Scheme, subject to annual depreciation.

1.10 Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost with the exception of investments which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand, together with the trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant bank accounts and used as working capital. Financial liabilities held at amortised cost comprise of all creditors except social security and other taxes and provisions. Assets and liabilities held in foreign currency are translated to GBP at the balance sheet date at an appropriate year end exchange rate.

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KINGSTON GRAMMAR SCHOOL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

2. SCHOOL FEES The School's fee income comprised: Gross fees Less : Total fee assistance, grants, and scholarships Add back Bursaries paid for by RD Finlay Fund Add back Bursaries paid for by KGS Bursaries Fund Add back Fee Assistance paid for by KGS Fundraising Add back Fee Assistance paid for by College Bursary 3. OTHER INCOME a) Charitable activities - Registration - School meals (students) - Extras b) Resources from raising funds (donations) - Appeal fund donations for general purposes - Donations/royalties received for endowment - Donations/royalties received for specific purposes c) Activities for raising funds (ancillary trading) - Lettings - Rent from properties occupied by School staff - KGS International Income - Other trading income d) Investment income - Income from investment portfolio - Bank interest - Bank interest (Restricted Funds) - Endowed income e) Other Activities - Sundry Income - CJRS 4. NET INCOME IS STATED AFTER RECOGNISING Auditor's remuneration - Audit Auditor's remuneration - Tax Advice Loss/(Profit) on disposal of fixed assets Depreciation - Owned assets	2023 £'000 19,470 (2,144) 17,326 70 24 44 25 17,489 210 488 - 698 8 - 99 107 40 69 340 63 512 5 267 15 104 391 22 - 22 36 4 79 1,211	2022 £'000 18,455 (1,949)
		16,506 67 22 43 23
		16,661
		196 439 -
		635
		8 1,000 202
		1,210
		5 83 679 37
		804
		6 14 - 64
		84
		6 -
		6
		30 7 (1) 1,142

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KINGSTON GRAMMAR SCHOOL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

5. ANALYSIS OF TOTAL RESOURCES EXPENDED

2023 Charitable Activities - Teaching Costs - Education Support - Premises - Admin Support School Operating Costs - Loss on disposal of FA - Grant Awards Prizes Raising Funds - Ancillary Trading - Financing - Fund-Raising Total 2022 Charitable Activities - Teaching Costs - Education Support - Premises - Admin Support School Operating Costs - (Profit) on disposal of FA - Grant Awards Prizes Raising Funds - Financing - Fund-Raising Total	Staff Costs £'000 9,404 715 606 1,366 12,091 - - 12,091 - - 43 12,134 Staff Costs £'000 8,596 605 620 1,158 10,979 - - 10,979 - 51 11,030	Other £'000 982 967 765 1,247 3,961 79 10 4,050 - 470 50 4,570 Other £'000 855 908 1,013 1,170 3,946 (1) 22 3,967 623 48 4,638	Depreciation £'000 150 12 1,045 4 1,211 - - 1,211 - - - 1,211 Depreciation £'000 166 5 948 23 1,142 - - 1,142 - - 1,142	Total £'000 10,536 1,694 2,416 2,617
				17,263 79 10
				17,352 - 470 93
				17,915
				Total £'000 9,617 1,518 2,581 2,351
				16,067 (1) 22
				16,088 623 99
				16,810

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KINGSTON GRAMMAR SCHOOL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

6. STAFF COSTS Total staff costs comprise: - Wages and Salaries - Social Security costs - Pension contributions - Other Pay Related Costs The average number of employees (full time & part time) during the year - Teaching staff (Teachers, Sports Coaches, Technicians) - Educational Support staff (Nurse, Library, Admin) - Premises staff (Facilities Manager, Maintenance, Cleaning) - Admin Support staff (other secretarial & Support staff) Key Management Personnel Those holding a position within the school's Executive Aggregate employee-benefits of key management personnel Headcount of higher salary bandings £60,000 - £70,000 £70,000 - £80,000 £80,000 - £90,000 £90,000 - £100,000 £100,000 - £110,000 £110,000 - £120,000 £220,000 - £230,000 £270,000 - £280,000	2023 £'000 9,424 1,041 1,632 34 12,131 140 25 29 26 220 2023 £'000 1,577 26 10 5 1 2 1 0 1 46	2022 £'000 8,673 948 1,489 -
		11,110
		140 22 30 23
		215
		2022 £'000
		1,221
		30 5 3 0 3 0 1 0
		42

41 of the above employees are in a defined benefit scheme. 5 of the above employees are in a defined contribution pension scheme.

During the year there were 2 redundancy payments and NIL termination payments totalling £35.7k (2022: 1.9k).

Governors Governor Expenses for courses attended including travel	2023 £'000 2	2022 £'000
		14

No Governor received any remuneration during either the current or previous year.

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KINGSTON GRAMMAR SCHOOL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

7. TANGIBLE FIXED ASSETS (GROUP AND COMPANY)

Cost At 1 August 2022 Additions Disposals At 31 July 2023 Depreciation At 1 August 2022 Charge for the Year Disposals Adjustment At 31 July 2023 Net book value At 31 July 2023 At 1 August 2022	Freehold Land and Buildings £'000 23,871 5 - 23,876 7,763 293 (33) 8,023 15,853 16,108	Boat Club Equipment £'000 751 29 - 780 681 25 - 706 74 70	Equipment and Motor Vehicles £'000 7,437 311 (403) 7,345 4,152 893 (293) (6) 4,746 2,599 3,285	Total £'000 32,059 345 (403)
				32,001
				12,596 1,211 (326) (6)
				13,475
				18,526
				19,463

The School's tangible assets are all held for use by the School. The Governors are confident the market values of those assets currently in use are in excess of the value reflected in these Financial Statements.

Finance costs that are directly attributable to the construction of tangible fixed assets are capitalised as part of those assets.

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KINGSTON GRAMMAR SCHOOL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

8. INVESTMENTS Stocks and Shares At 1 August 2022 Additions at cost Disposals Management Fees () Net investment (losses) Market value at 31 July 2023*	2023 £'000 4,399 122 - - (15) 4,506	2022 £'000 4,423 44 - - (68)
		4,399

The Governors' investment powers are governed by the Company's Memorandum and Articles of Association.

Investments comprise: Equities Fixed Interest Property Other Cash and Near Cash Market value at 31 July 2023	2023 £'000 3,426 475 106 404 95 4,506	2022 £'000 3,847 493 59 - -
		4,399

All investments above are held by the charity KGS Limited.

The investments above include the School’s £100 investment in the share capital of each of Kingston Grammar School International Limited and KGS International Limited (note 21).

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KINGSTON GRAMMAR SCHOOL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

9. DEBTORS

9. DEBTORS Tuition fees from parents & trade debtors Prepayments and sundry debtors Recoverable income tax HM Loan (note 21) KGS International	Group 2023 2022 £'000 £'000 159 235 313 234 12 10 500 500 - - 984 979	Company 2023 2022 £'000 £'000 159 235 273 203 12 10 500 500 148 234 1,092 1,182
			1,182

All debtors are due within one year, except for £500k for HM Loan, which is due after more than one year.

10. CREDITORS: Due within one year:

10. CREDITORS: Due within one year: Bank Loans (see Note 12) Fees paid in advance Parental deposits Trade creditors PAYE/other taxation and social security Pensions creditor Sundry creditors and accruals Fees in advance scheme	Group 2023 2022 £'000 £'000 992 925 586 640 1,916 1,538 491 799 266 262 209 182 274 573 414 584 5,148 5,503	Company 2023 2022 £'000 £'000 992 925 586 640 1,916 1,538 487 799 266 262 209 182 271 564 414 584 5,141 5,494
			5,494

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KINGSTON GRAMMAR SCHOOL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

11. CREDITORS: Due after more than one year (Group and Company)

11. CREDITORS: Due after more than one year (Group and Company) From one to two years: - Bank loans (see Note 12) - Fees in advance scheme From two to five years: - Bank loans (see Note 12) - Fees in advance scheme More than five years - Bank loans (see Note 12) Total	2023 £'000 1,066 378 1,444 3,660 - 3,660 - - 5,104	2022 £'000 991 291
		1,282
		3,440 254
		3,694
		1,285
		1,285
		6,261

Fees in Advance scheme

Parents may enter into a contract to pay the school up to the equivalent of five years' tuition fees in advance. The money may be returned subject to specific conditions on receipt of one term's notice. Advance fees have been applied assuming students remain in the school. The balance represents the accrued liability under the contracts. Amounts received under the school's Advance Fee Scheme contracts for education not yet utilised to settle school fees are recorded as deferred income and allocated as current liabilities where the education will be provided within 12 months from the reporting date and as long-term liabilities where the education will be provided in subsequent years.

The movements during the year were:

At 1 August 2022 Funds received during the year 2022/23 Amounts utilised in payment of fees: - Prior year funds - Current year funds At 31 July 2023	2023 £'000 585 208	2023 £'000 1,129 456 (793) 792	2022 £'000 908 1,114 469 424
			(893)
			1,129

At 31 July 2023

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KINGSTON GRAMMAR SCHOOL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

12. LOANS (Group and Company) Due within five years by instalments: - within one year - from one to two years - from two to five years - more than five years	2023 £'000 992 1,066 3,660 - 5,718	2022 £'000 925 991 3,440 1,285
		6,641

In 2004 the Charity entered into long term arrangements to finance the development of the Queen Elizabeth II building. These arrangements provided a fixed loan totalling £12.4 million commencing in May 2010 and lasting 18 years. The loan covered £10.4 million of costs with the capitalisation of £2 million of interest arising between May 2004 and May 2010. Loan repayments commenced in November 2010. Interest is payable at a rate of 7.3%.

During the year ended 31 July 2023 the loan schedule provided for total payments of £1,253k against this loan (2022: £1,253k). At 31 July 2023 the balance on this loan was £5,168k (2022: £5,998k).

In June 2006 the Charity entered into an agreement to replace an existing variable loan facility, which was expiring in October 2010, with a fixed loan totalling £2.4 million, at a fixed interest rate of 6.61% and repayment over 18 years starting in November 2010. In October 2010 the Charity drew £1.4 million of this fixed loan, terminating £1.0 million of the facility at a break cost of £174k. For the year ended 31 July 2023 the loan schedule provided for total payments of £136k (2022: £136k). At 31 July 2023 the balance on this loan was £549k (2022: £644k).

All the loans are secured on certain freehold land and buildings of the School.

13. TAXATION

No taxation liability arises on the results for the year due to the charitable status of the School.

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KINGSTON GRAMMAR SCHOOL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

14. ALLOCATION OF NET ASSETS BETWEEN FUNDS

The net assets are held for the various funds as follows:

2023 Endowed Funds - Permanent endowment - Expendable endowment Restricted Funds Unrestricted Funds 2022 Endowed Funds - Permanent endowment - Expendable endowment Restricted Funds Unrestricted Funds	Fixed Assets £'000 - 141 - 18,385 18,526 Fixed Assets £'000 - 153 - 19,310 19,463	Investments £'000 4,506 - - - 4,506 Investments £'000 4,399 - - - 4,399	Net Current Assets / (Liabilities) £'000 879 - 552 4,396 5,827 Net Current Assets / (Liabilities) £'000 1,011 - 508 3,346 4,865	Long Term Liabilities £'000 - - - (5,104) (5,104) Long Term Liabilities £'000 - - - (6,261) (6,261)	Total £'000 5,385 141 552 17,677
					23,755
					Total £'000 5,410 153 508 16,395
					22,466

15. ENDOWED FUNDS

The School has three classes of Endowed Funds: the Permanent Endowment, the Expendable Endowment and the Permanent Bursary Endowment.

The Permanent Endowment was created under a Charity Commission Scheme of 14 September 1978, when the School became independent, and which has subsequently been amended by a Charity Commission Scheme of 30 December 1999 when the School was incorporated as a charitable company Limited by guarantee. The endowment comprises the endowed School land at £nil value and the invested proceeds of subsequent land disposals.

The Expendable Endowment represents capital expenditure on the School buildings on the permanently endowed land up to the date of the 1978 Scheme, subject to annual depreciation.

The Permanent Bursary Endowment is comprised of three permanent Bursary endowed funds. Of these funds, the Governors have resolved to apply a total return accounting policy to two of the funds: the RD Finlay Bursary Fund and the KGS Bursary Fund.

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KINGSTON GRAMMAR SCHOOL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

15. ENDOWED FUNDS

The movements on the Endowed Funds not accounted for under a total return policy during the year are as follows:

2023 Balance as at 1 August 2022 Investment gains Transfers At 31 July 2023	Permanent endowment £'000 720 4 - 724	Expendable endowment £'000 153 - (12) 141	Permanent Bursary Endowment £'000 592 (12) - 580	Total £'000 1,465 (8) (12)
				1,445

The movements on the Endowed Funds accounted for under a total return policy during the year are as follows:

2023 Gift component of the permanent endowment as at 1 August 2022 Unapplied total return as at 1 August 2022 Total balance as at 1 August 2022 Movements in year: - Gifts of endowment funds - Dividends and interest - Investment gains / (losses) - Investment costs Payment of bursaries & fee assistance At 31 July 2023	RD Finlay Bursary Fund Trust for Investment £'000 3,218 - 3,218 - - - - - 3,218	Trust for Application £'000 - 162 162 - 86 (6) (15) (70) 157	KGS Bursary Fund Trust for Investment £'000 730 - 730 - - - - - 730	Trust for Application £'000 - (12) (12) - 18 (1) (5) (24) (24)	Total £'000 3,948 150
					4,098 - 104 (7) (20) (94)
					4,081

Total of all Endowed Funds

At 31 July 2023

5,526

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KINGSTON GRAMMAR SCHOOL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

The comparative amounts for the movements on the Endowed Funds not accounted for under a total return policy are as follows:

2022 Balance as at 1 August 2021 Investment gains Transfers At 31 July 2022	Permanent endowment £'000 705 15 - 720	Expendable endowment £'000 165 - (12) 153	Permanent Bursary Endowment £'000 599 (7) - 592	Total £'000 1,469 8 (12)
				1,465

The comparative amounts for the movements on the Endowed Funds accounted for under a total return policy are as follows:

2022 Gift component of the permanent endowment as at 1 August 2021 Unapplied total return as at 1 August 2021 Total balance as at 1 August 2021 Movements in year: - Gifts of endowment funds - Dividends and interest - Investment gains - Investment costs Payment of bursaries & fee assistance At 31 July 2022	RD Finlay Bursary Fund Trust for Investment £'000 2,218 - 2,218 1,000 - - - - 3,218	Trust for Application £'000 - 259 259 - 49 (64) (15) (67) 162	KGS Bursary Fund Trust for Investment £'000 730 - 730 - - - - - 730	Trust for Application £'000 - 12 12 - 15 (12) (5) (22) (12)	Total £'000 2,948 271
					3,219 1,000 64 (76) (20) (89)
					4,098

Total of all Endowed Funds

At 31 July 2022

5,563

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KINGSTON GRAMMAR SCHOOL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

16. RESTRICTED FUNDS

The School maintains a number of Restricted Funds of which the principal funds are:

• the Prize Fund, used to finance in part the provision of prizes to the students of the School;

• the Sheriff Bequest Fund, used to finance in part the provision of capital expenditure principally in connection with rowing. Funds retained for future replacement of minibuses used by the rowing department and capital expenditure on rowing;

• the Appeal fund, which represents donations received and expended in connection with specified capital expenditure projects or to support bursaries; and

• the PSA and other School Societies Funds. These are used for the provision of specific equipment for use in the school.

The movements on the Restricted Funds during the year are as follows:

2023 Balance as at 1 August 2022 Income arising in year Expenditure Transfers At 31 July 2023	Prize & Other Fund Sherriff Bequest Fund Appeal Fund College Fund Total £'000 £'000 £'000 £'000 £'000 - 150 354 4 508 1 28 62 23 114 (1) - (44) (25) (70) - - - - -
	- 178 372 2 552

The comparative amounts for the movements on the Restricted Funds are as follows:

2022 Balance as at 1 August 2021 Income arising in year Expenditure Transfers At 31 July 2022	Prize & Other Fund Sherriff Bequest Fund Appeal Fund PSA/ School Fund Total £'000 £'000 £'000 £'000 £'000 - 117 257 - 374 2 33 140 27 202 (2) - (43) (23) (68) - - - - -
	- 150 354 4 508

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KINGSTON GRAMMAR SCHOOL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

17. UNRESTRICTED FUNDS

The School maintains three Unrestricted Funds being:

• the Fixed Assets Fund, which represents amounts expended on tangible fixed assets required for the operation of the School, less additions financed from bank loans or from the Permanent Endowment Fund (under a recoupment order) and assets transferred to the Permanent Endowment Fund. It also retains annual surpluses generated by the School.

• the Appeal 450 Campaign Fund, which represents cash carried forward from Appeal 450 Campaign. The Appeal 450 Campaign is designated towards the refurbishment of School premises; and

• the General Fund, within which the School is operated.

The movements on the Unrestricted Funds during the year are as follows:

2023 Balance as at 1 August 2022 Income arising in year Expenditure Transfers At 31 July 2023	Fixed Assets Fund Appeal 450 Fund KGSI Fund General Fund Total £'000 £'000 £'000 £'000 £'000 15,828 120 447 - 16,395 - - 340 18,661 19,001 - - (629) (17,102) (17,731) 1,571 - - (1,559) 12
	17,399 120 158 - 17,677

The movements on the Unrestricted Funds during the year are as follows:

2022 Balance as at 1 August 2021 Income arising in year Expenditure Transfers At 31 July 2022	Fixed Assets Fund Appeal 450 Fund KGSI Fund General Fund Total £'000 £'000 £'000 £'000 £'000 14,680 120 82 - 14,882 - - 679 17,455 18,134 - - (314) (16,319)(16,633) 1,148 - - (1,136) 12
	15,828 120 447 - 16,395

18. TRANSFERS

Transfers represent:

• A transfer of £1,559k from the general fund to the fixed assets fund represents the purchase of additional fixed assets plus annual surplus.

• A transfer of £12k representing the conversion of expendable endowment funds to unrestricted funds relating to the depreciation on the buildings held in the expendable endowment.

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KINGSTON GRAMMAR SCHOOL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

19. FUTURE CAPITAL EXPENDITURE

Capital expenditure contracted for in 2023 was very modest as the school is currently focused on its Estates strategy and associated projects.

Future capital expenditure Funding is planned from existing funds and donations.	2023 £'000 364	2022 £'000
		24

20. PENSION SCHEMES

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 £1,385k (2022: £1,250k) and at the yearend £nil (2022 - £nil) was accrued in respect of contributions to this scheme.

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

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

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

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

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

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KINGSTON GRAMMAR SCHOOL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

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

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

For other support staff the School also made contributions to various defined contribution pension schemes (Money Purchase) of £247k (2022: £239k) and at the year-end £nil (2022: £nil) was accrued in respect of contributions to these schemes.

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KINGSTON GRAMMAR SCHOOL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

22. INVESTMENT IN SUBSIDIARY

22. INVESTMENT IN SUBSIDIARY
KGS International Limited Kingston Grammar School International Limited Net book value at 31st July 2023	2022 £ 100 100 200	2021 £ 100 100
		200

The cost of the above investment totalled £200. The School's interest is as follows:

Company	Country of incorporation	Shares held Class	%
KGS International Limited	England and Wales	Ordinary	100
Kingston Grammar School International Limited England and Wales		Ordinary	100

The registered office of KGS International Limited (Company Number 12093612) is at the same address as the School. The principal activity of the subsidiary is to develop the Kingston Grammar School brand in overseas locations. The net assets of this company at 31[st] July 2023 were £158k (2022: £447k). The company’s profit and loss account for the year ended 31[st] July 2023 showed turnover of £340k (2022: £679k) and an operating loss of £289k (2022: profit of £365k). Gift aid relating to the year ended 31 July 2023 of £158k is scheduled to be paid post year end (2022: £447k).

The registered office of Kingston Grammar School International Limited (Company Number 11949288) is at the same address as the School. The company was dormant during the year.

KGS INTERNATIONAL LIMITED

Income Expenditure Net Profit Assets Liabilities Net Assets	2023 £'000 340 (629) (289) 313 (155) 158	2022 £'000 679 (314)
		365
		690 (243)
		447

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KINGSTON GRAMMAR SCHOOL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

23. RELATED PARTY TRANSACTIONS

In October 2015 the School entered into a loan agreement with the Head Master for an amount of £500k for the purchase a principal residence within a reasonable distance of the School in order to assist him in the efficient discharge of his duties. The amount is repayable within twelve months of cessation of employment with the School.

The School owns the full £100 share capital of Kingston Grammar School International Limited which is registered in England and Wales under company number 11949288. The company was registered on 16 April 2019 and is dormant during the year.

The School owns the full £100 share capital of KGS International Limited, also registered in England and Wales, with a company number of 12093612. The company was registered on 9 July 2019. The registered address for both companies is Kingston Grammar School, London Road, Kingston upon Thames, KT2 6PY.

24. POST BALANCE SHEET EVENTS

There are no post balance sheet events to report.

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KINGSTON GRAMMAR SCHOOL NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

25. PRIOR YEAR CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

Notes: Income and endowments from: Charitable activities - School fees receivable 2 - Other charitable income 3a Activities for raising funds: - Donations 3b - Ancillary trading 3c - Investment income 3d Other activities - Other income and Grants 3e Total income Expenditure on: Raising funds - Ancillary trading 5 - Financing 5 - Fundraising & Development 5 Charitable activities - Education and grant making 5, 15, 16 Total expenditure Net income before transfers and investment gains Net (losses)/gains on investments 8 Transfers between funds 15, 18 Net income Fund balances brought forward at 1 August 2021 FUND BALANCES CARRIED FORWARD AT 31 JULY 2022	Unrestricted Funds £'000 16,661 635 8 804 20 6 18,134 - (623) (79) (702) (15,931) (16,633) 1,501 - 12 1,513 14,882 16,395	Restricted Funds £'000 - - 202 - - - 202 - - - - (68) (68) 134 - - 134 374 508	Endowed Funds £'000 - - 1,000 - 64 - 1,064 - - (20) (20) (89) (109) 955 (68) (12) 875 4,688 5,563	2022 £'000 16,661 635 1,210 804 84 6 19,400 - (623) (99) (722) (16,088) (16,810) 2,590 (68) - 2,522 19,944 22,466	2021 £'000 15,418 499 - 208 187 64 249
					16,625
					(3) (600) (162)
					(765) (14,024)
					(14,789) 1,836 729 -
					2,565 17,379
					19,944

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