Registered number: 03834841 Charity number: 1080641 THE KING'S SCHOOL, GLOUCESTER (A company limited by guarantee) GOVERNORS. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 THE KING'S SCHOOL, GLOUCESTER (A company limited by guaranteel CONTENTS Page Reference and administrative details of the School, Its Governors and advlsers Governors. report Independent audltor's report on the financial statements Consolidated statement of financial activities 3-10 15 Consolidated balance sheet 16 School balance sheet 17 Consolidated statement of cash flows 18 Notes to the financial statements 19-45 THE KING'S SCHOOL, GLOUCESTER {A company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE SCHOOL, ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 JULY 2024 Governors The Reverend Canon N.M. Arthy (ex-officio) A. T. Brett (retired 21 November 20231 P. Dancey (retired 21 November 2023) M. Hurrell (retired 21 November 2023) K. Wyman M. Dunkley (retired 21 November 2023) S. Lewis M. Watson (retired 21 November 2023) S. Mendel V. Issac D. Innes-Turnill, Chair of Governors P. Gordon A. Mitchell R. S. Dhaliwal H. Jackson The Reverend Canon R. Lloyd (retired 5 June 2024) The Reverend Canon A. Zihni (ex-officio) The Reverend Canon C. Huxley-Jones (ex-officio) (appointed 14 January 20241 C. Thompson (appointed 21 November 2023) M. Green (appointed 21 November 2023) P. Smith (appointed 21 November 2023) R. Warner (appointed 21 November 2023) K. Bedwell (appointed 21 November 2023) And The Lord Bishop of Gloucester (Visitor) Company registered number 03834841 Charity registered number 1080641 Registered office Pitt Street Gloucester GL12BG Independent auditor Crowe U.K. LLP Fourth Floor St James House St James Square Cheltenham GL50 3PR Bankers Lloyds TSB Bank PIC Eastgate Street Gloucester GL11NU Page 1 THE KING'S SCHOOL, GLOUCESTER (A company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE SCHOOL, ITS GOVERNORS AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Solicitors Harrison Clark Rickerbys Ltd Ellenborough House Wellington Street Cheltenham GL50 1YD The Headmaster Mr D.C.AJ Morton, B.A., P.G.C.E. The Deputy Heads MrA. Smith, M.Ed., B.A., P.G.C.E. Cantab (Senior Deputy & Academic) Mrs M. Philips, B.A., P.G.C.E. (Pastoral} Mr J. Collins, B.A., (Hons), P.G.C.E. (Staffj The Head of Junior School Mrs A. Haas B. Prim. Ed. The Bursar and Company Secretary Mr L Griffiths MEng., CEng., FIMechE. Page 2 THE KING'S SCHOOL, GLOUCESTER (A company limited by guarantee) GOVERNORS. REPORT FOR THE YEAR ENDED 31 JULY 2024 The members of The King's School, Gloucester present their Annual Report for the year ended 31 July 2024 under the Chartties Act 2011 and the Companies Act 2006, thus including the Directors, Report and Strategic Report under the 2006 Act, together with audited financial statements for the year. DIRECTORS, REPORT Status and Administration The King's School, Gloucester was established by Henry Vlll by statute in 1541 following the dissolution of the monasteries. The School had originally been constituted as a charity (no. 311745) under a scheme framed by the Board of Education under the Endowed School Acts, 1869, 1873 and 1874. The scheme was approved by His Majesty King George V by way of Order of Council dated 30 July 1928. The School is a charity (no. 1080641) and was incorporated as a company limited by guarantee {no. 03834841) on 26 August 1999. The assets and liabilities of the old charity were transferred to the new charity on 1 September 2000. The Restricted Funds were transferred to a linked charity, King's School Prize and Scholarship Fund (charity no. 1080641-1) and are included within the School financial statements as a restricted fund. The Governors, who are also directors for the purposes of company law, who seNed during the year were.. The Reverend Canon N.M. Arthy (ex-officio) ' A. T. Brett (retired 21 November 2023) P. Dancey (retired 21 November 2023) M. Hurrell (retired 21 November 2023) K. Wyman # M. Dunkley (retired 21 November 2023) S. Lewis" ? M. Watson (retired 21 November 2023) S. Mendel * A V. Issac#A? D. Innes-Turnill (Chair of Governors) # - P. Gordon ' A. Mitchell # R. S. Dhaliwal # H. Jackson . The Reverend Canon R. Lloyd (retired 5 June 2024) The Reverend Canon A. Zihni (ex-officio) - The Reverend Canon C. Huxley-Jones (ex-officio) {appointed 14 January 2024) # C. Thompson (appointed 21 November 2023) - M. Green (appointed 21 November 2023) - P. Smith (appointed 21 November 2023) - R. Warner (appointed 21 November 2023) ' K. Bedwell (appointed 21 November 2023) ' . Member of Finance & General Purposes Committee # Member of the Strategic Marketing & Development Committee Member of the Nominations Committge Member of the EduGation & Compliance Committee ? Retired by n)tation and ￿-appoInted at Annual General Mggting Page 3 THE KING'S SCHOOL, GLOUCESTER (A company limited by guarantee) GOVERNORS, REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Structure. Governance and Management Govemin Document The School is governed by its Memorandum and Articles of Association, last amended on 20 November 2002. Govemin Bod The Governors, who are also required under the Articles to serve as members ofthe School, are elected at a full Governors meeting on the basis of nominations received. The Governing Body shall not be less than 12 and not more than 21 and is comprised of not more than 6 ex- officio Governors, who shall be the Dean of the Gloucester Cathedral and not more than 5 Residentiary Canons of the Cathedral. Such ex-officio Governor5 shall hold office by virtue of their respective offices. The balance of the Governing Body comprises of Governors, one-third of which retire at the School's Annual General Meeting. A retiring Governor is eligible to sland for re-election. anisational Mana ement The Governors meet as a Board at least three times a year to determine the general policy of the School and to review its overall management and control, for which they are responsible. There are four key sub-committees to the Governing Body, the first three of these committees as listed below meet at least three times a year, preceding the Board of Governors meetings, to report to the Governing Body- The Finance & General Purposes Committee scrutinises revenue, the budget. capital expenditure and monitors the estates development programme and general maintenance works. This Committee also supervise5 and finalises the financial statements and annual report for approval by the Goveming Body. The Strategic Marketing and Development Committee considers the overall marketing needs of the School to ensure that strategies are in place for pupil recruitment and retention. The Committee also considers proposals for capital development and monitors capital building projects. The Education and Compliance Committee considers matters relating to the School's academic, curricular and pastoral provision together with a monitoring and co-ordinating role relating to compliance with regulatory standards and other legislative requirements. The Nominations Committee considers the skills required within the Governing Body and actively seeks to recruit new Govemors to the School. The day to day running of the School is delegated to the Headmaster supported by the Senior Management Team. The Headmaster and Bursar attend all Governor meetings. Remuneration is set by the Board following an annual review by the Finance Committee to ensure that an appropriate salary scale is in place. This includes comparison and reference to any relevant benchmarking and salary Surveys available for the sector to ensure the School remains sensitive to the broader issues of pay and employment conditions elsewhere. The King's School aims to recruit high calibre staff to deliver a wide and varied curriculum to all our pupils. Delivery of the School's charitable objectives is dependent on our key management positions. Recnjitment and Trainin of Govemo Governors are appointed at a meeting of Members on the basis of nominations received from Governofs and the Head of The King's School, Gloucester, following agreed specifications concerning eligibility, personal competence, specialist skills and local availability. The process is Supervised by the Nominations Committee. New Governors are inducted in the workings of the School, and the Company as a registered charity, including Board Policy and Procedures by the Head and Bursar, who also organise regular strategic and trustee-training workshops for all Governors. Page 4 THE KING'S SCHOOL, GLOUCESTER {A company limited by guarantee) GOVERNORS, REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Grou stmcture and Relalionshi Serlo Enterprises Limited is a wholly owned non-charitable trading subsidiary of The King's School, Gloucester, whose activities are the organising and marketing of events at The King's School, Gloucester. King's School Gloucester Prize and Scholarship Fund is a linked charity of The King's School. Gloucester, whose objects are to further the education of pupils attending the School particularly (but not exclusively) by the provision of prizes and scholarships. The Reslricted Funds are included within the School financial statements as a restricted fund. The King's School, Gloucester is a Heads Conference (HMC) school,. HMC exists to serve and support its members, to represent their views and to exemplify excellence in education. It is also a member of the Choir Schools Association which is a group of schools attached to cathedrals, churches and college chapels around the country enabling choristers to have unlimited access to a first-class schooling and musical training. giving them an excellent start in life. The School is also a member of the Independent Association of Prep School (IAPS), a body which exists to represent leading prep schools in the UK and overseas and supports them in achieving excellence in education and care. Objectives, Aims and Activities Charitable Ob'ects The School's Objects, as set out in its Memorandum of Association, are the advancement of education of the public, within the meaning of English law. and are based on Church of England principles, to provide such pupils with spiritual, moral. mental and physical training. Within these Objects. the School also has to create and administer scholarships, exhibitions and bursaries. PubliG Benefit Aims and Intended Im act In meeting these Objects, the School's public benefit aim is to provide a first-class independent education, both through strong academic tuition, and through developing wider sporting, artistic and social skills in all its pupils. This is intended to provide an environment where each pupil can develop and fulfil his or her potential, thus help to build self-confidence and inculcate desire to contribute to the wider community. In furtherance of these aims the Governors, as charity governors, have Complied with the duty in s.17. of the Charities Act 2011 to have due regard to the Charity Commission's published general and relevant sub-sector guidance concerning the operation of the Public Benefrt requirement under the Act. Grant-makin This year, the value of scholarships and other awards to the School's pupils out of unrestricted funds totalled £1,622,215 (2023.- £1,554,442). The Governors, policy, in line with that of other Independent Schools, is to make these awards on the basis of the individual's educational potential. As a Choir School a further £256,766 (2023.- £205.302) wa5 awarded in scholarships by the Governors to support the education of the Choristers of Gloucester Cathedral. Further awards of £684,428 (2023.- £622, 717) in bursaries were made from unrestricted funds, where the aim is to relieve hardship or provide financial support for the pupil's education and future prospects. The availability of all such awards for fee-assistance, together with the terms and conditions of each kind of award, is advertised on our web51te at www.thekingsschool.co.uk. Page 5 THE KING'S SCHOOL, GLOUCESTER (A company limited by guarantee) GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 STATEMENT OF GOVERNORS, RESPONSIBILITIES The Governors (who are also directors of The King's School, Gloucester 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 charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group 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 judgements and estimates that are reasonable and prudent. 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 charitable company will continue in business. The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity's constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. So far as the Govemors are aware, there is no relevant audit information of which the Charty's auditors are unaware. The Governors have each taken all the steps that we ought to have taken as Governors to make ourselves aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information. Auditor In accordance with Section 385 of the Companies Act 2006, a resolution proposing the re-appointment of Crowe U.K. LLP as auditor to the school will be put to the annual general meeting. Page 6 THE KING'S SCHOOL, GLOUCESTER {A company limited by guarantee) GOVERNORS, REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 STRATEGIC REPORT Princi al Activit The School dales back to its foundation in 1541 by King Henry Vlll and was established over the decades as a boarding and day school for boys. Prior to September 1985, the School admitted junior girls up to the age of 11. With effect from September 1985, the Governors voted to admit girls throughout the entire range of 3 to 18 years on educational, social and financial grounds. Boarding has now been phased out and as such the School is now a co*ducational independent day school for pupils aged 3 to 18. Ob'ectives for the Year The focus this year, like the previous year, has been the continued delivery on the strategic plan as laid out by the Headmaster. The School, like all this sector. faced uncertainty due to the General Election and the new Government's policy of adding VAT to independent school fees. Given this likelihood, the school has made efficiency savings to prepare for such a change. Despite this context, we have managed to maintain our balance of academic excellence, outstanding pastoral care and a variety of co-curricular opportunities. The school has continued to invest in its facilities during the year, beginning works to generate a new maths department by renovating the basement in the main Senior School building. Outdoor play areas have been improved and the environmental properties of the Junior School building have been improved by adding insulation as part of a roof replacement scheme. Strate ies to achieve the earfs ob'8ctives The school's strategy is divided into seven main areas.. Pastoral= To maintain the school's reputation for delivering outstanding pastoral care, always focusing on the wellbeing of each individual pupil. Academic.. To strive for inspiration and excellence in teaching and learning, helping each pupil to achieve their full potential. Co-curricular.- To offer a broad range of co 1,446, 706 27 1,415,985 Cash and cash equivalents at the end of the year 27 2,973,944 1,415,985 The notes on page5 19 to 45 form part of these financial statements Page18 THE KING'S SCHOOL, GLOUCESTER (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 General information The School is a registered as a charity in England and Wales and a company limited by guarantee. It was incorporated on 26 August 1999 (company number.. 03834841) and registered as a charity on 9 May 2000 {charity number.. 1080641). The registered office and principal place of business is Pitt Street, Gloucestershire, GL12BG. Its principal activity is the provision of schooling. Accounting policies 2.1 Basis of preparation of financial statements The financial statements have been prepared under the historical cost convention, with the exception of investments which are held at market value. The financial statements have been prepared in accordance with the Charities SORP (FRS 102) Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the CharityAcr 2011. The King's School, Gloucester meets the definition of a public benefit entity under FRS 102. The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the School and its subsidiary undertaking. The result5 of the subsidiary are consolidated on a line by line basis. The School has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements. The School has taken advantage of the exemptions in FRS 102 from the requirements to present a School only Cash Flow Statement and certain disclosures about the charity's financial instruments. The principal accounting policies, which have been prepared on a consistent basis within that convention are set out below. 2.2 Going concern Having reviewed the funding facilities available to the School together with the expected ongoing demand for places and the School's future projected cash flows, the Governors have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future and consider that there are no material uncertainties over the School's financial viability. On this basis the Governors have considered it appropriate to prepare the financial slatements on a going concern basis. Page 19 THE KING'S SCHOOL, GLOUCESTER {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Accounting policies (continued) 2.3 Income Fees receivable and charges for services and use of premises are accounted for in the period in which the seNice is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the School, but include contributions received from restricted funds for Scholarships, Bursaries and other grants. Fees received for education to be provided in future years are carried foTward as advance fees on the Balance Sheet. Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. Donations are accounted for when the School has entitlement to the funds, any performance conditions attached to the ilem(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. Donations receivable for the general purposes of the School are credited to unrestricted funds or as a designated fund as allocated by the Governors. Donations for purposes restricted by the wishes of the donor are taken to restricted funds where these wishes are legally binding on the Governors. Donations required to be retained as capital in accordance with the donorfs wishes are accounted for as endowed expendable or permanent funds according to the nature of the restriction. Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Page 20 THE KING'S SCHOOL, GLOUCESTER {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Accounting policies {continued) 2.4 Expenditure Expenditure is included in the Statement of Financial Activities on an accruals basis. Overhead and other costs not directly attributable to particular functional activity categories are apportioned over the relevant categories on the basis of management estimates of the amount attributable to that activity in the year, either by reference to staff time or space occupied, as appropriate. The irrecoverable element of VAT is included with the item of expense to which it relates. Costs of raising funds includes all financing and fundraising costs. Charitable activity expenses are allocated to functional groups on a direct cost basis or apportioned on a staff time basis. Governance costs are included within support costs and comprise the costs of running the School, including strategic planning for its future development, also external audit. any legal advice for the Governors, and the costs of complying with constitutional and statutory requirements, such as the costs of Governor meetings and of preparing statutory financial statements Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs. 2.5 Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group- this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. 2.6 Taxation As a registered Charity the School is entitled to taxation exemptions on all ils income and gains, as long as they are properly applied for its charitable purpose. Page 21 THE KING'S SCHOOL, GLOUCESTER {A company limited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Accounting policies (continued) 2.7 Tangible fixed assets and depreciation Tangible fixed assets costing £500 or more are capilalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. Depreciation is provided on the following bases: Freehold property Leasehold property Motor vehicles Fixtures and fittings 2 0/0 Straight line 2 0/0 Straight line 200/0 Straight line 10-33 % straight line Freehold land is not depreciated. Assets under construction are not depreciated until available for use. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Con501idated statement of financial activities. 2.8 Investments Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as 'Gainsl(Losses) on investments, in the Consolidated statement of financial activities. Investments in subsidiaries are valued at cost less provision for impaimient. Investments held on deposit are investments that mature in more than three months from the date of acquisition. 2.9 Stocks Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Page 22 THE KING'S SCHOOL, GLOUCESTER (A company limlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Accounting policies {continued) 2.10 Financial instruments The School has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Debtors Short-term debtors are measured at transaction price, less any impairment. Cash and cash equivalents Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounls of cash with insignificant risk of change in value. Creditors Short term creditors are measured at the transaction price. 2.11 Operating leases Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term. 2.12 Pensions The Group operates a defined Contribution pension scheme for both non-teaching staff and teachers and the pension charge represents the amounts payable by the Group to the fund in respect of the year. 2.13 Deposits As the School does not have an unconditional right to retain individual deposits for at least 12 months after the Balance Sheet date, in line with FRS 102, the balance of deposits held at year-end has been included within current liabilities. 2.14 Redundancy payments Redundancy payments occur when absolutely necessary and are accounted for on an accruals basis when the commitment to terminate a post on the grounds of redundancy has been made. Page 23 THE ￿NG's SCHOOL, GLOUCESTER (A company Ilmited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Accounting policses (continued) 2.15 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Governors in furtherance of the general objectives of the Group and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The cost5 of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income, gains and losses are allocated to the appropriate fund. Critical accounting estimates and areas of judgement Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions= The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimale is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods. In the view of the Governors. 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. Income from donations Unrestricted Restricted funds funds 2024 2024 Total funds 2024 Total funds 2023 Donations 15,685 2,207 17,892 14,077 Total 2023 6, 763 7,314 14,077 Page 24 THE KING'S SCHOOL, GLOUCESTER (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 School fees 2024 2023 Fees receivable consist of: Gross Fees Less: Total bursaries, grants and allowances 14,659,720 13,321,238 (2,563.409) (2,382,461) Net Fee Income 12,096,311 10,938, 777 Fee income all relates to unrestricted funds during this and the prior year. Other educational income 2024 2023 Other educational income Insurance claims After school holiday and breakfast clubs Music income Tuition income Trip income Bus and transport income Fee extras income Summer ball 27,974 13,883 167,411 20,861 408,701 337,027 172.060 35,218 29,310 20,051 142.369 23.489 473,266 325,296 206,223 34,919 1,183,135 1,254,923 Other ancillary trading income all relates to unrestricted funds during this and the prior year. Page 25 THE KING'S SCHOOL, GLOUCESTER {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Other trading income Tradlng Income from subsidiaries Unrestricted funds 2024 Total funds 2024 Total funds 2023 Serlo Enterprises Limited income 99,472 99.472 96.658 Total 2023 96,658 96,658 Investment income Unrestricted funds 2024 Total funds 2024 Total funds 2023 Investment income Bank interest income 2,643 70,963 2,643 70,963 2, 634 10,868 Total 2024 73,606 73,606 13,502 Total 2023 13,502 13,502 Page 26 THE KING'S SCHOOL, GLOUCESTER (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Ancillary non-trading income Unrestricted funds 2024 Total funds 2024 Total funds 2023 Rent receivable Government grants Pupil registration fees Miscellaneous receipts Fee interest 2,600 2,979 16,095 1,038 23.555 2,600 2.979 16,095 1,038 23,555 5,887 14,052 1,101 10,555 Total 2024 46,267 46,267 31,595 Total 2023 31,595 31,595 10. Expenditure on raising funds Costs of raising voluntary income Unrestricted funds 2024 Total funds 2024 Total funds 2023 Fundraising costs 13,371 13,371 12,035 Total 2023 12.035 12,035 Page 27 THE KING'S SCHOOL, GLOUCESTER (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 10. Expenditure on raising funds (continued) Trading costs of subsldiaries Unrestricted funds 2024 Total funds 2024 Tolal funds 2023 other costs Staff costs 17,200 29,974 17,200 29,974 15,111 33,331 Total 2024 47,174 47,174 48,442 Total 2023 48,442 48,442 11. Finance costs Unrestricted funds 2024 Total funds 2024 Tolal funds 2023 Loan and bond interest Bank charges 86,924 5,093 86,924 5,093 106, 138 4, 147 Total 2024 92,017 92,017 110,285 Total 2023 tI0,285 110,285 Page 28 THE KING'S SCHOOL, GLOUCESTER (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 12. Analysis of expenditure on charitsble activities Summary by fund type Unrestricted Restricted funds funds 2024 2024 Total 2024 Total 2023 Teaching costs Welfare costs Support costs Catering Premises Grants, awards and prizes Governance costs 7,982,456 240,800 1,596,377 860,469 2,024,894 7,982,456 240,800 1,596,377 860,469 2.024.894 1,278 97,047 7,595, 110 186. 660 1,504, 675 833, 087 1, 736,224 7,206 92,873 1,278 97,047 Total 2024 12.802,043 1,278 12,803.321 11,955,835 Total 2023 11,948, 666 7, 169 11,955, 835 Summary by expenditure type Staff costs Depreciation Other costs 2024 2024 2024 Total 2024 Total 2023 Teaching Welfare Support costs Catering Premises Granls, awards and prizes Governance costs 6,216,203 240,800 973.264 1.766,253 7,982,456 240.800 1,596.377 860,469 2,024,894 1,278 97,047 7,595, 110 186,660 1, 504, 675 833. 087 1, 736, 224 7.206 92,873 623,113 860,469 996,147 1,278 97,047 546,268 482,479 Total 2024 7,976,535 482,479 4,344,307 12,803,321 11,955,835 Total 2023 7, 405, 809 452,810 4,097.216 11,955.835 Support costs include governance costs of £74,517 (2023.- £72,883) which relate to the audit fee and other professional fees. Page 29 THE KING'S SCHOOL, GLOUCESTER {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 13. Auditor's remuneration 2024 2023 Fees payable to the School's auditor forthe audit of the School's annual accounts 17,750 16,700 Fees payable to the School's auditor in respect of- All non-audit services not included above 4,500 14. Staff costs Group 2024 Group 2023 School 2024 School 2023 Wages and salaries Social security costs Contribution to defined contribution pension schemes 6,944,625 627,924 6, 488, 759 581,429 6,914,651 627,924 6,455,428 581,429 433,960 368,952 433,960 368, 952 8,006,509 7,439, 140 7,976,535 7,405,809 Temination payments of £64,831 (2023.. £8,000) were made during the year. The average number of persons employed by the School during the yearwas as follows.. Group 2024 No. Group 2023 Teaching and support staff 161 165 The average number of employees during the year calculated on average head count was 226 (2023." 213) Page 30 THE KING'S SCHOOL, GLOUCESTER {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 14. Staff costs (continued) The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was.. Group 2024 Group 2023 In the band £60,001- £70,000 In the band £70,001- £80,000 In the band £80,001- £90,000 In the band £120,001- £130.000 In the band £130,001- £140,000 Senior management team remuneration amounted to £795,524 (2023." £753,089). 15. Governors, remuneration and expenses During the year, no Governors received any remuneration or other benefits (2023 - £NIL). During the year ended 31 July 2024. no Governor expenses have been incurred (2023 - £NIL). Page 31 THE KING'S SCHOOL, GLOUCESTER {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 16. Tangible fixed assets Group and School Assets Freehold Leasehold under Fixtures property property construction and fittings Motor vehicles Total Cost or valuation At 1 August 2023 Additions Transfers be￿een classes 5,500,335 5,517,827 265,774 113,185 103,900 1.637,722 190.812 197,807 39,219 12,799,003 56,988 824,566 41,630 62,270 (103,900) At 31 July 2024 5,807,739 5,693,282 190.812 1,835,529 96,207 13,623,569 Depreciation At 1 August 2023 Charge for the year 1,486,379 1,570,297 147,766 125,394 992,585 192,643 18,104 4,067,365 16,676 482,479 At 31 July 2024 1,634,145 1,695,691 1.185.228 34,780 4,549,844 Net book value At 31 July 2024 4,173,594 3.997,591 190,812 650,301 61,427 9,073,725 At 31 July 2023 4, 013,956 3, 947,530 103,900 645, 137 21, 115 8, 731,638 Page 32 THE KING'S SCHOOL, GLOUCESTER (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 17. Fixed asset investments Listed investments Cash held on deposit Total Group Market valuation At 1 August 2023 Additions Revaluations 91,703 91,703 2,863.188 6,900 2,863.188 6.900 At 31 July 2024 98,603 2,863,188 2,961,791 Net book value At 31 July 2024 98,603 2,863,188 2,961,791 At 31 July 2023 91,703 91,703 Investments in subsidiary Listed companies investments Cash held on deposit Total School Cost or valuation At 1 August 2023 Additions Revaluations 91,703 91,706 2,863,188 6.900 2,863,188 6,900 At 31 July 2024 98,603 2,863,188 2,961,794 Net book value At 31 July 2024 98,603 2,863,188 2,961,794 At 31 July 2023 97,703 91,706 Page 33 THE KING'S SCHOOL, GLOUCESTER (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 17. Fixed asset investments (continued) Prlncipal subsidiaries The following was a subsidiary undertaking of the School.. Name Company number Registered offlce or principal Class of place of business shares Holding Serlo Enterprises Limited 02938904 Kings School, Pitt Street, Gloucester. Gloucestershire, GL1 2BG Ordinary The financial results ofthe subsidiary for the year were: Name Income Expenditure ProfiU(Loss) for the year Net assets Serlo Enterprises Limited 99,472 (47,174) 52,298 782 Serlo Enterprises Limited is a trading company selling services and goods relating to the School. It covenants its taxable profits to the School, this year an amount of £52,298 (2023.. £48,216). In 2024, the School charged £29,974 (2023.. £33,331) to Serlo Enterprises Limited for the provision of staff and administrative service5. The balance owed to the School at 31 July 2024 was £95,932 (2023.- £92. 770). 18. stocks Group 2024 Group 2023 School 2024 School 2023 Goods for resale 17,379 16,612 17,379 16,611 Page 34 THE KING'S SCHOOL, GLOUCESTER {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 19. Debtors Group 2024 Group 2023 School 2024 School 2023 Due within one year School fees and trade debtors Amounts owed by group undertakings Other debtors Prepayments and accrued income 583,418 403,645 558,480 95,932 39.338 379,238 374,837 92, 770 54,361 336,038 39,338 379,238 54.361 336, 038 1,001.994 794, 044 1,072,988 858,006 20. Creditors: Amounts falling due withln one year Group 2024 Group 2023 School 2024 School 2023 Bank loans Trade creditors Advance fee payments Refundable fee deposits Other taxation and social security Fees received in advance Pension costs 167,389 350,366 2,090,780 297,793 156,599 201,400 80,325 128,259 329,936 235,442 160, 989 396,896 278, 836 157, 188 338,922 80,383 29,332 370,591 167.389 350,366 2,090,780 297,793 156,599 201,400 80,325 128,259 329,594 235,442 160,989 396, 896 278,836 757, 188 338,922 80,383 29,331 362, 772 other creditors Accruals and deferred income 3,802,847 2, 048,579 3,802,505 2,040, 759 Page 35 THE KING'S SCHOOL, GLOUCESTER {A company limlted by guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 21. Creditors: Amounts falling due after more than one year Group 2024 Group 2023 School 2024 School 2023 Bond Bank loans Advance fee payments 1,319,300 729,865 4,033,438 1,519,300 1, 033, 526 872, 894 1,319,300 729,865 4,033,438 1,519,300 1, 033, 526 872, 894 6,082,603 3,425, 720 6,082,603 3,425, 720 The bank loan5 are secured by means of a first legal charge dated 26 October 2001 over the freehold and and buildings at the School playing fields, Archdeacon Meadow, St Oswalds Road, Gloucester. There is also a legal charge dated 26 October 2001 over the freehold land and buildings at Old Bishops's Palace, Pitt Street, Gloucester. The bank also have a third legal charge dated 30 April 2019 over the freehold property known as Mission Park Street, Gloucester. There is a fourth legal charge dated the 26 January 2021, which is a floating charge over all the property or undertaking of the company. The School issued through the intermediary of Allia Social Impact Investments Limited, a bond lotalling £1.319.300 (2023.. £1,519,000) paying a yield of 34 %. The bond is repayable on 27 February 2027. Included within the above are amounts falling due as follows.. Group 2024 Group 2023 School 2024 School 2023 Between one and two years Bank loans 141,920 220,328 141,920 220,328 Between two and five years Bond Bank loans 1,319,300 295,137 1,519,300 300,210 1.319,300 295,137 1,519,300 300,210 Over fjve years Bank loans 292,808 512,988 292,808 512,988 Page 36 THE KING'S SCHOOL. GLOUCESTER (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 22. Advance Fee Payments Parents may enter into a contract to pay the equivalent of at least two years, tuition fees in advance. The money may be returned subject to specific Conditions on the receipt of one term's notice. Assuming pupils will remain in the school, advance fees will be applied as follows.. 2024 2023 Within 1 year 2,090,780 396, 896 2,090,780 396, 896 Within 1 to 2 years Within 2 to 5 years Greater than 5 years 1,725,027 2,044,115 264,296 440, 188 345, 166 87,540 4,033,438 872,894 6,124,218 1,269, 790 The balance represents the accrued liability under the contracts. The movements during the year were= 2024 2023 Balance at 1 August 2023 New payments Amounts accrued to contracts a5 debt-financing costs 1,269,790 5,434,228 49,625 838,265 771.573 30,343 6,753,643 1,640. 181 Amounts refunded Amounts utilised in payment of fees (62,478) (6, 078) (566,947) (364,313) Balance at 31 July 2024 6,124,218 1,269, 790 Page 37 THE KING'S SCHOOL, GLOUCESTER (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 23. Statement of funds statement of funds - current year Balance at 1 August 2023 Gainsl Balance at (Losses) 31 July 2024 Income Expenditure Unrestricted funds General Funds Trading sub funds 5,557,996 13,415.004 (12,855,133) 779 99,472 {99,472) 6,900 6,124,767 779 5,558,775 13,514,476 (12,954,605) 6,900 6,125,546 Restricted funds The Prize Fund Bursary fund Sports fund Computer Science Equipment Annual Fund Art Scholars Fund Alumni Eleclronic Archive Art fund E-Readers Classroom Accessories Wardle House Garden Palace Garden Memorial Fund 3,363 278 80 725 1165) 3,923 278 100 20 41 41 335 6,026 688 5,200 270 226 335 6,256 808 (2301 (8321 712 5,200 270 226 51 {51) 750 750 16,908 2,207 (1,278) 17,837 Total of funds 5,575,683 13,516,683 (12,955,883) 6,900 6,143,383 Page 38 THE KING'S SCHOOL, GLOUCESTER {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 23. Statement of funds (continued) The Prize Fund is for the provision of prizes and scholarships for pupils at the School. Included within this fund is the linked charity, King's School Prize and Scholarship Fund. The Bursary Fund is for the provision of financial assistance for those pupils at the School, or due to start the School, whose families have fallen on difficult times or would otherwise be unable to afford the education at Ihe School. The Sports fund is from donations to improve Sports facilities around the School. The Computer Science Equipment fund is from donations towards computer science equipment. The Annual Fund is an annual fund raising activity for specific purposes. The Art Scholars fund is to help facilitate the cost of Art resources to allow students to be as creative as they desire, whilst also funding visits from inspiring artists at the School. The Alumni Electronic Archive fund is to be used for the electronic archiving of previous School yearbooks. The Art fund is from donations to be used to fund Fine Art classes, in memory of John Masters. The E-Readers fund is from donations with the purposes of providing electronic reading aids for classrooms. The Classroom Accessories fund is from donations to aid in the purchase of materials to enhance the learning experience at King's. The Wardle House Garden fund is from donations with the purpose of replenishing existing plants within the Wardle grounds. The Palace Garden Memorial Fund is from donations for the creation of a memorial garden within the boundary ofthe Old Palace. Page 39 THE KING'S SCHOOL, GLOUCESTER (A company limited by guarant88) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 23. Statement of funds (continued) Statement of funds - prior year Balance at l August 2022 Gains/ Balance af (Losses) 31 July 2023 Income Expenditure Unrestricted funds General Funds 5,337, 054 12,245, 560 (12.022, 770) 779 96, 658 (96, 658) (1,848) 5, 557,996 779 Trading sub funds 5,337,833 12,342,218 (12, 119,428) (1, 848) 5,558, 775 Restricted funds The Prize fund Bursary fund Sports fund Computer Science Equipment Annual Fund Art Scholars Fund Alumni Electronic Archive Art fund E-Readers Classroom Accessories Wardle House Garden 3,411 325 278 1, 080 (373) 3, 363 278 80 (1,000) 41 41 335 6,256 808 5,200 270 226 51 335 7,478 (1,222) (217) 1,025 5,200 270 187 176 4,271 (4,232) (125) 16,763 7,314 (7, 169) 16,908 Total of funds 5,354,596 12,349,532 (12, 126,597) (1, 848) 5, 575, 683 Page 40 THE KING'S SCHOOL, GLOUCESTER (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Summary of funds Summary of funds - current year Balance at 1 August 2023 Gainsl Balance at (Losses) 31 July 2024 Income Expenditure General funds Restricted funds 5,558,775 13,514,476 (12,954,605) 16,908 2,207 (1,278) 6,900 6,125,546 17,837 5,575,683 13,516,683 (12,955,883) 6,900 6,143,383 Summary of funds - prior year Balance al l Augusl 2022 Gains/ Balance at (Losses) 31 July 2023 Income Expenditure General funds Restricted funds 5,337,833 12,342,218 (12, 119,428) 16,763 7,314 (7, 169) (1, 848) 5,558, 775 16,908 5,354, 596 12,349, 532 (12, 126,597) (1,848) 5,575,683 Page 41 THE KING'S SCHOOL, GLOUCESTER (A company limited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 25. Analysis of net assets between funds Analysis of net assets between funds - current perlod Unrestricted Restricted funds funds 2024 2024 Total funds 2024 Tangible fixed assets Fixed asset investments Current assets Creditors due within one year Creditors due in more than one year 9,073,725 2,961,791 3.975,480 (3,802,847) (6,082,603) 9,073,725 2,961,791 3,993,317 (3,802,847) (6,082,603) 17,837 Total 6.125,546 17,837 6,143,383 Analysis of net assets between funds - prior period Unrestricled funds 2023 Restricted funds 2023 Total funds 2023 Tangible fixed assets Fixed asset investments Current assets Creditors due within one year Creditors due in more than one year 8, 731, 638 91,703 2,209, 733 (2,048, 579) (3,425, 720) 8, 731, 638 91,703 2,226,641 (2,048, 579) (3,425, 720) 16,908 Total 5,558, 775 16,908 5, 575, 683 Page 42 THE KING'S SCHOOL, GLOUCESTER (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 26. Reconciliation of net movement in funds to net cash flow from operating activities Group 2024 Gmup 2023 Net income for the period (as per Statement of Financial Activities) 567.700 221,087 Adjustments for: Depreciation charges (Gain)Iloss on investments Investment income and bank interest Financing costs Loss on disposal of fixed assets Increase in stocks Increase in debtors Decrease in creditors Increase in advance fees scheme creditor 482.479 (6,900) {73,606) 92,017 452,810 1,848 (13,502) 110,285 37,027 (767) (2,465) (207,950) (88. 630) (6,684) (282.394) 4,854,428 431,525 Net cash provided by operating activities 5,700,717 867,591 27. Analysis of cash and cash equivalents Group 2024 Group 2023 Cash in hand Cash held on short term deposit 1,323,944 1,650,000 1,415.985 Total cash and cash equivalents 2,973,944 1,415,985 Page 43 THE KING'S SCHOOL, GLOUCESTER (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 28. Analysis of changes in net debt Other non- cash changes At 1 August 2023 Cash flov At 31 July 2024 Cash at bank and in hand Debt due within 1 year Debt due after 1 year 1,415,985 (235,442) 12,552,826) 1,557,959 371,714 200,000 2,973,944 (167,389) (2,049,165) (303,661) 303.661 {1,372,283) 2.129,673 757,390 29. Cap5tal commitments Group 2024 Group 2023 School 2024 School 2023 Contracted for but not provided in these financial statements Capital projects 278,029 301,352 278,029 301,352 30. Operating lease commitments At 31 July 2024 the Group and the School had commitments to make future minimum lease payments under non-cancellable operating leases as follows.. Group 2024 Group 2023 School 2024 School 2023 Not later than 1 year Later than 1 year and not later than 5 years 89,963 207,470 95, 833 297,433 89,963 207,470 95, 833 297,433 297,433 393, 266 297,433 393, 266 Page 44 THE KING'S SCHOOL, GLOUCESTER IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 31. Related party transactions Some Governors have children currently at the school. The spouse of a governor received a salary of £16,721 (2023.- £18, 117) for their employment as a teacher by the school. During the financial year the School undertook the following transactions where a Governor, or a close relation to the Governor, is also listed as a Director of the company.. Debbie Innes-Turnhill, £400 for safeguarding and consultancy services. A number of governors are also trustees of the Chapter of Gloucester Cathedral and the School enters into a number of arms length transactions with the Cathedral. Bond options are still retained by Governors and Senior Management totalling a value of £37,500 {2023.- £521,300), generating interest payable of £1,125 (2023.. £5,963). Page 45