Taunton School Educational Charity Annual Report and Financlal Statements Year Ended 31 August 2024 Company registration number: 04005803 Charity registration number. 1081420 Ml *AOZIS66kl* 3110312025 COMPANIES HOUSE A12 #176 Taunton School Educational Charity Contents Reference and Admlnistrative Detalls 1 to2 GoverrK)rs' Report 3to18 Independent Auditors, Report 19to24 Consolidated Statement of Financial Activities 25 Consolidated Balance Sheet 26 Balance Sheet 27 Consolidated Statement of Cash Flows 28 Notes lo the Financial Statements 29to57 Taunton School Educational Charity Reference and Administrative Details Chairman: Mr H Keeling (resigned 14 November 2023) Mr M Anderson (appointed 14 November 2023) Govemor: Mrs S Adam (appointed 22 April 2024) Mr R Aldrich Mr C Butters Mrs D Close Mr P Cooper Brigadier (retired) M Hallas (resigned 27 June 2024) Mr D Hebditch Dr l Kelharn Mr R Kennedy, Treasurer Reverend N Manges Rear Admlral l Moncrieff Mr M Pike Mrs S Shayler (appolnted 9 March 2024) Mrs E Waymouth {resigned 27 June 2024) Mrs S Wheeler, Deputy Cha5r Mr J Whiteley Chief Executive Officer: Mr J Johnson Other Officers: Mrs S Reynolds, Chiaf Operating Officer Mrs S Reynolds, Clerk to the Governors Mr E Bumett, Taunton Preparatory School Head Ms R Lewis, Taunton PrfrPrep and Nursery Head Mr A Hallworth, Taunton School International Prlnclpal Charity Reglstratlon Numbor 1081420 Company Reglstratlon Number 04005803 The ¢h8rity18 Incorporaled In England and Wales. Page 1 Taunton School Educational Charity Reference and Administrative Details Reglstered Office Taunlon School Staplegrove Road Taunton Somerset TA2 6AD PKF Francis Clark Independent Auditor Ground Floor 90 Victoria Street Bristol BS16DP Veale Wasbrough Vizards Narrow Quay House Narrow Quay Bristol BS14QA HSBC Bank PIC 17 North Street Taunton Somerset TA11NA Audltor Sollcltors Bankers Page 2 Taunton School Educational Charity Governors, Report The Board of Govemors (the 'Board'). who are Directors and Trustees of Taunton School Educational Charity (the 'ChariW), present Iheir annual report for the year ended 31 August 2024. It is in the format prescribed by the Charities Act 2011 and the Companies Act 2006. Constltutlon and Objects Taunton School (the 'School') was founded in 1847. It is constituted as a company lirnited by guarantee registered in England as per the d8tsils at page 3, It is governed by ils Mernorandum of Association and Articles of Association reviewed and arnended 11 March 2016 with a further small update in December 2020 to allow for online meetings. The objects of the Charity are 'to promote and provide for the advancement of education by the provision of a school or such other means as the Govemors shall from time to time determine., In carrying out these objects, the Charity upholds the founding principles of the School which are rooted In the Christian faith. It recognises the particular emphasis of its 'Free Church. foundation on the importance of personal responsibility In the quest for falth, and In respect of religious tradltions. Significantly, in furthering these Objects for the publlc benefit, the Charity provides Taunton School organisation in 5 completely co4ducational parts: the Senior School (known 8s Taunton School). Prep School, Pre-Prep and Nursery. Taunton School Intematlonal and Taunton School Inlemational Middle School. This spans an age range from Infants to 18. The School adminlsters asslsled places (bursarles). grants, awards and other bonefactions such as scholarships and acts as the trustee and manager of propety, endowments. bequests and gifts given or established in pursuance of its objecls. Structure, Governance and managem•nt The Articles of Association sets the maximum number on the Board at 17, of which one is appointed by the Churches Advlsory Panel. The remaining governors are appointed by an ordinary resolution of Ihe Members. passed at an AGM of the Charlty. Henry Keellng seNod as Chalr of th8 8oard untll 14 November 2023, when Mark Anderson was appointed Chair. The Govemors are the company directors and Irustees of the Charity, and those who have been In office for all or part of the year are listed below: Chairman: Mr H Keellng {resigned 14 November 2023) Mr M Anderson (appolnted 14 November 2023) Chlef Executive Officer: Mr J Johnson Pag8 3 Taunton School Educational Charity Governors, Report Govemor: Mrs S Adam (appointed 22 April 2024) Mr R Aldrich Mr C Butters Mrs D Close Mr P Coop8r Brigadier (￿tIred) M Hallas (resigned 27 June 2024) Mr D Hebdltch Dr l Kelham Mr R Kennedy, Treasurer Reverend N Manges Rear Admiral l Moncrieff Mr M Pike Mrs S Shayler (appointed 9 March 2024) Mrs E Waymouth (resigned 27 June 2024) Mrs S Wheeler, Deputy Chair Mr J Whiteley Other Officers: Mrs S Reynolds. Chlef Operating Officer S Reynolds, Clerk to Ihe Governors Mr E Bumett, Taunton Preparatory School Head Ms R Lewls, Taunton PrfrPrep and Nursery Head Mr A Hallworth, Taunlon School International Principal Membershlp Th8 charlty has an unlimited number of mernbers. Mernbers are former govemors and pupSls of the School, over the age of 18. Page 4 Taunton School Educational Charity Governors, Report Governor R•crultment & Tralnlng Board vacancies are considered by the Nominations Panel, which then makes recommendations to the full Board. All prospeclive candidates are considered in light of the skillslexperience balance required at the time which will include eligibility, diversity, personal cornpetence. specialist skills and local availability. New Govemors are appointed for a temi of 3 years and, subject to periodic performance review, may be re*lected for a further 4 terms. All Govemors will be formally appointed by the Members at the AGM. New Governors, Induction into the workings of the School includes the policies and procedures of the Board through briefings by the Chairman, Head and Clerk and through comprehensive documentation that is kept updated on the Governors, secure online portal. They also attend specialist extemal courses on such matters as the role and responsibilities of Charity Trustees and receive the updated Charity Governance Code as part of their induclion pack. Governors have access to continuous professional development run by organisations such as the Association of Governing Bodies of Independent Schools (AGBIS) to stay abreast of current Issues and regulations in the Independent Sector. All Governors are subject to DBS checks and regular associated 'Safeguarding' training. A nominated Governor has responsibility for the Safeguarding Lead on the Board. Organlsational management As the Charity Trustees and Dlrectors, Board members, are legally responslble for Ihe over811 management and control of the School and promotion of its long temi success, The Board meets al least 3 times a year. The work of implementing its policies and specific key elements is overseen by sU￿rOups, rnost of which meet at least termly and report into the Full Board as follows: . Finance Committee People Committee • Compliance Committee • Educational Advisory Panel Marketing and Admissions Panel . Churches Advlsory Panel • Estates and Infrastructure Panel • Foundation Panel Nominations Panel Other specialist working groups are set up as and when required. Day-10-day runnlng of the Schools Is delegated to the Executive Leadership Team. which is a group drawn from key management personnel. The CEO, COO and Heads attend all of the meetings of the Board and most of the meetings of the sub￿rOupS abov6. Remuneratlon policy is set by the Board, with a policy objective of encouraging enhanced perfomiance and of rewarding falrly and responsibly individual contribution5 to the School's success. Paga 5 Taunton School Educational Charity Governors, Report Group Structure The School has 2 wholly owned non. The language of school Inspection reports now avoids single word judgernents such as 'excellent' or 'good' and instead makes a series of evidence-based statements to describe the school's provision. Taunton School's report. encompassing TS, TSI and TSIMS, is very complimentary about several key areas of the education we provide: the academic progress our students make and our ambition for thern,. the personalised and tailored curriculum for Sixth Form students. the mutual respect evident between students and their celebration of cultural diversity within our global community; the development of close bonds belween students who feel valued and that they belong; our strong emphasis on skills for leadership and independent living, ensuring the right mindset for life. It is really encouraging to see such positive commentary on each of our four key strategic pillars highlighted in bold. We are delighted to have been praised in particular for the extraordinary breadlh of opportunity provided for all. Inspectors highlighted our leading clxurricular programme as a 'slgnlficant strength,. This is the highest accolade available to schools under the new inspection regime and we undersland that only a small percentage of schools will be awarded a 'slgnlficant strength,. We are delighled to hav8 exlernal validation for what we know to be true of Taunton School, where, in the words of the report, we 'show a deep understanding of how to unearth th8 potential of each child., In short, we enable children to find their version of 'exceptional', Taunton School's Prep and PrfrPrep report, which encompasses all the year groups from Year 1 through to Year 8, Is very complimentary. The headline Judgements are that pupils benefit from our 'dynamic and caring community rich with opportunity both inslde and outslde the classroom,. In this community puplls are able lo find their exceptional by embraclng the opportunltle8 available and thay flourish as a result., The Inspectors focused on the 'slSmulaling' leaming envlronmenl where the dassroom experience 'Insplres pupils, because of 'teachers' in4epth subject knowledge., Puplls are Yocused and motivaled, by teachers who have ambitSon for them. Outside the classroorn pupils speak 'enthusiasticalll about the 'exlensive' c¢xurricular opportunities which enable them to 'flourish.' They become 'rounded individuals for the future, developing the right mindset for life. Staff 'priorltlse' the puplls, emotlonal wellbeing which Is underplnned by the 'vlgllanc8 of pastoral leaders. who 'actively prornote respect and Indusion.. Such an environment means that pupils are 'happy.' demonstrating a sense of belonging. in part because they are 'confident Iheir volces will be heard., By recognising the 'importance of embracing ihe view of others, th8 inspectors praised how our pupils leam to 'become responsible and caring citizens, speaking 'respectfully about Ihose from differenl races and genders to themselves.. Even at an earfy age they are aware of th8 importance of our global cornmunity. Boarding received special mention with the parent survey being particularly posilive. The pupils spoke very warmly about the homely atmosphere in Thone with experiences that were 'rlch and nurturlng, with particular focu5 on the leadership opportunities they enjoyed. The inspectors also highllghted the enthusiasm the pupils have for the wide range of weekend aclivities. Our Nursery setting was also inspected during the second week of terni. There were again many compliments. recognising the hard work and dedication of the staff. The Nursery was jud9ed to be good in all areas, with *aluable links, between home and Nursery, as well as the 'positive relationships, beiween staff and children being recognised as strengths. Page 14 Taunton School Educational Charity Governors, Report Even at this young age. there was a positive comrnentary on each of our four key strategic pillars. The inspectors focused on the curriculum noting. 'staff are effective at supporting children to take risks and Investigate during their play, and recognised the ambition they have for all children in designing curriculum 'with the intention that each child. including those who have SEND, is able to gain the knowledge and understanding they need to succeed., There was also recognition of the fabulous 'rich experiences. offered by our specialist teachers and that children are 'well prepared for future leaming.. Children were notably encouraged to develop 8 mindsel for life through 8 'stirnulating curriculum, and opportunities to 'play c￿operatIve1y, using the skills of 'invesligation, curiosity and critical thinking,, enabling children to 'be active leamers and to have positive attitudes to their leaming, while also learning to 'respect each other's ideas, communicate together and establish fair rules for play.. Inspectors observed a 'strong cufture of shared responsibility, for safeguarding practices within the Nursery, noting 'leaders give the utmost priority to safeguarding ensuring children are kept safe., Staff ensure that children feel 'emotionally secure, by 'valuing their opinions, and as a result 'children consistently demonstrate that they feel extremely safe and happy.. This environment fosters a sense of belonging, because key persons 'know their children extremely well, and enable children to achieve 'a sense of pride and confidence., Even at an early age, all are aware of the importance of our global community. with staff and children seen to 'welcome the diverse cultures evident in Nursery.. Throughout the Nursery. staff provide opportunities for children to deepen their understanding of other cultures as they 'celebrate festivals from different countries., We are delighted that the ISI team recognised what a special community we are part ol. It is reassuring that even in a challenging economic climale for all fee-paying parents, that we really do add value both In and out of the classroorn. Group Flnanc•s The prlncipal fundlng sources for the Charity are school fees and Incorne generated by many other educational and nOn￿UcatIOnal activities. The latter are carried out by the Chadtys Irading company, Taunton School Enterprises Ltd {TSE) which, as described above. passes all its profits to the School. The year's expenditure has continued to support the Charity's key objectives by operating the School and investing In Its development. The Group's finances remain strong with total incornlng resources of £31.5rn (2023: £29.2m): net incomlng resources of £1.Om. (2023: £1.6m); and total resep4es of £21.8m (2023: £20.8m) after maklng capital additions of £4.1m (2023: £1.4m). The Charity continued to invest significaniiy in the site. with Ihe majority of expenditure on 8 new multl use games area. fvio new astro turf pltches, slgnlficant Investment In the outdoor and Indoor areas of our Nursery and Pre-prep and We have prepared a number of scenarios that consider our cash position, sources of income and planned expenditu￿. These scenarios consider reduced pupil numbers. delayed fee pa￿ent. reduced fees and potential bad debts as well as impact on costs from the measures laken so far. Sensitivity around these assumptions has also been considered in our forecasting. Results of this cash flow and sensitivity analysis Indicaie that the cash resen48s of the Charity are adequate to meet the Charity's obligations as they fall due. Correspondingly. the twstees consider it approprlate to adopt the going concem basis of accounting in preparing the financial statements. Page 15 Taunton School Educational Charity Governors, Report Investment pollcles, objectlves and performance The Investment Panel advises on the investments and monitors the performance of funds on behalf of the School. the Foundation and the Evans-Lombe Fund. At the year end the total funds invested were £2m (2023.. £5.1 m). The Investment Panel reports to the Board of Governors and the Trustees of the Evans-Lombe Fund. having taken appropriate and professional advice. The Board and Trustees have set a target of 5¥0 income and fund growth to sustain the value of the capital. The School also holds some restricted funds in recognised charitable investment funds with CCLA and some on deposit awaiting investment. The Board is satisfied with the retum on these funds in the prevailing financial cllmate, Reserves level and pollcy The Board has examined the financlal risks and challenges faced by the Charity closely over Ihe short and medium term. The Charity has invested its reserves in the provision of the educational facilities to meet its objectives and consequently, like many well-established independent schools. has negative free reserves. The Board 15 satisfied that the financial plans and forecasts give them comfort that the Charity is able to meet all its foreseeable commitments. The School's total reserrfes of £21.8m at the period end include £2.1m endowment capital, £3.6m of unspent restricted income and £16.2rn unresiricted incorne. SECR Energy use and Carbon Emlsslons Dlsclosure Taunton School Educational Char5ty disclose our energy use and greenhouse gas emlsslons Ihal Taunton School are responsible for in line with the requirements of the Companies Act 2006 (Strategic and Directors, Reports) Regulations 2013 and latest 2018 regulations. Ener us• Cath Emlsslons tC02e kwh 202>24 Cuwwent L899,518 Z987.752 202>24 Curnent 2D￿-20 Ba5ellne 676 917 Chanqe IB•s•llne- Currenl Elertrld Gw5 Bu55nessTfavel- Grey Fleet Tr•ns ort Fuels G¢ossAnnug1 Totsl 1,8fjL819 3.273.430 393 450 923 364 io 42% 40% 547 599 66,781 866,201 5nO.252 16 207 L163 1,030,610 6.185.885 246 117 IA96 80% -32% Intenslty Metslc (No ol Pu Total TC02elpu 11$ 1166 1166 0.73 70 A.26 1156 .32% qvall GfeenTaTlff L899.518 1.861819 Net Annu•l Tot•1 5mO.252 . 6.185WS 770 049 ffjoi IA96 Table 1.. Primary Statement for the Financial Year 8nding 31st August 2024. 393 386 L708 .55% Page 16 Taunton School Educational Charity Governors, Report Baseline Year This is the fourth year of GHG reporting. 2020 12021 was the baseline year which fell during the Cov1￿19 pandemic and as such comparisons to this and future years may be skewed. Targets Carbon targets have not been developed for the current reporting period but are currently in d8veloprnent. Intensity Measurement The intensity rnetric chosen is average pupil numbers as at the 31 August 2024. This metric was chosen as the organisation's carbon emlssions are closely Ilnked to pupil activity. Carbon Offset Taunton School now have qualifying carbon offsets during this financial period and procure qualifying green or renewable lariffs for the supply of electricity or gas. FUTURE PLANS The School's strategy Is to maintaln a strong financlal poslllon by deliverfng clear evldence of a consistently first-class education matched with demonstrably outstanding pastoral support. To do this, It is building a healthy recruitmenl pipeline. controlling costs. increasing cornmercial incorne and using the facilitles for the public benefit year on year. This generates sufficient resources to Invest In the School's infrastructure, supporting the slrategy of building on existing resources and foundations and making every penny count direcuy towards the School's purpose and its non-selective basis. Accordingly. the priorities for resource allocation agreed by the Board are based on Improvlng and enhancing the existing infrastructure estate and the objectives are to: be an outstanding School of cholce by evldence of Sts edu¢ation81 and pastoral experience for all pupils: continue a strong financial performance to fully resource the operation of the School and its development and continuance of long term success; • Increase and plough back Investment Sn maintenance and new facilities over the next three years; always be compllant with legislatlon and best practlce wherever it May be identified to provide a safe. happy and purposeful education; • invest in staff training and development to attract and relain the best staff. The School is reviewing its needs and opportunilies to continue to develop its estate to maximisa advantage. As the strategy Is reviewed, more projects will be considered by the Board in due course. Statement of trustees. r•sponslbllltles The trustees (who are also the directors of Taunton School Educational Charity for the purposes of company law) are responsible for preparing the trust8es' report and the financial statements in accordance with applicable law and Unlted Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland.. Company law requires the trustees to prepare financial statements for each financial year. Under company law the Irustees 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 parent charitable company and the group and of the incoming resources and application of resources, including its Income and expenditure, of the charitable group for that period. In preparing these financial statements. the trustees are required lo: Page 17 Taunton School Educational Charity Governors, Report select suitsble accounting policies and apply them consistently; obserrfe the methods and principles In the Charities SORP; make judgemenls and estimates that are reasonable and prudent; state whether applicable accounling standards, comprising FRS 102 have been followed. subjecl to any material departures disclosed and explained in the financial statements. and prepare the financial statemenis on the golng concern basis unless it Is inapproprlate to presume that the parent charitable company will continue in business. The trustees are responsible for keeping proper accounting records that can disclose with reasonab18 accuracy at any time the financial position of the parent charitable company and the group and enable them to ensure that the financial statements comply wilh the Companies Act 2006. They are also responsible for safeguarding the assets of the parent charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the corporate and financial infonmation included on the charitable companvs website. Legislation goveming the preparation and dissemination of financlal statements may differ from legislation in other jurisdictions. The annual report was approved by the trustees of the charity on behalf by, 0410212025 and signèd on Its Mr R Kennedy Treasurer Page 18 Taunton School Educational Charity Independent Auditor's Report to the Governors of Taunton School Educational Charity Oplnlon We have audited the financial statements of Taunton School Educational Charity (the 'charitable parent companv) and its subsidiaries (the 'group') for the year ended 31 August 2024. which comprise the Consolidated Statement of Financial Activilies, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows and Notes to the Financial Ststements. including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, and applicable law (United Kingdom Generally Accepted Accounting Practice). In our oplnion the financial statements: give a true and fair view of the state of the group's and parent charity's affairs as at 31 August 2024 and of its incoming resources and application of resources. including its 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 8ccord8nce with the requlrements of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance wlth Intemalional Standards on Audltlng (UK} (ISAS {UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of Ihe financial statements section of our report. We are indèpendent of the group In accordance with the ethical requirements that are relevant to our audit of the financlal statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethieAI 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. Conclu8lon8 relatlng to golng concern In auditing the financial statements, we have concluded that the Govemors use of the going concem basls of accountlng In the preparallon of the financlal statements Is appropriat8. Based on the work we have performed, we have not identified any material uncertalnties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a golng concem for a perlod of at leasi twelve months from when the orhglnal finandal statements were authorised for issue. Our responsibililies and the responsibilitles of the Governors with respect to going concem are described Sn the relevant sections of this report. Other Informatlon The Governors are responsible for the other Infonnation. The other Infom)8tlon cornprlses the infomiation induded 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 infomlation and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance condusion thereon. Page 19 Taunton School Educational Charity Independent Auditorfs Report to the Governors of Taunton School Educational Charity In connection with our audit of the financial statements. 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 audil or othepNise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material mlsstatement In the financial statements or a material misslalement of the other inforrnation. 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. Oplnlon on other matter Prescrib￿ by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audlt: the infomiation given In the and Governors. Report for thè financial year for which the financial statements are prepared is conslstent with the financlal statements; and the and Governors. Report have been prepared in aC￿rdance with applicable legal requirements. Matters on whlch we are requlred to report by axc•ptlon In the light of our knowledge and understanding of the group and the parent charitable company and Sts environment obtained in the course of the audit, we have not identified material misststements in the and the Governors, Report. We have nothing to report in respecl of the following rnatters where the Cornpanies Acl 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audlt have not been recelved from branche3 not vlsited by us; or the parent charitable company finanual statements are not in agreement with the accounting records and retums; or certain disclosures of Govemors remuneration specified by law are not made; or we have not received all the Inforrnation and explanatlons we requlre for our audit. Responslbllltles of Governors As expla5ned more fully in the Statement of trustees, responsibilities (set out on page 10). the trustees are responsible for the preparation of the financial statements and for being satisfied Ihat they give a true and fair view, and for such Intemal control as the twstees determine is necessary to enable the preparation of financial statements that are free frorn materi81 misstatement, whelher due to fraud or error. In preparing the financial statements, the Govemors are responsible for assessing the charity's ability to continue as a going concem. dlsclosing, as applicable, matters related to going concem and using the going concem basis of accounkn'ng unless the Govemors either intend lo liquidate the charity or lo cease operations, or have no realistic altemative but to do so. Page 20 Taunton School Educational Charity Independent Auditor's Report to the Governors of Taunton School Educational Charity Audltor responslbllltles for the audlt of the flnanclal 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 misstatemenl 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 economlc decisions of us8r8 taken on the basls of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures In line with our responsibilities. oullined above, to detect material misstatements in respect of irregularities. including fraud. The extent to which our procedur8s are capable of detecting Irregularities. including fraud is detailed below: Page 21 Taunton School Educational Charity Independent Auditorfs Report to the Governors of Taunton School Educational Charity As part of our audit planning, through discussions wilh management, we obtained an understanding of the legal and regulatory framework that is applicable to the group and the sector in which it operates to identify the key laws and regulations affecting the group. We considered those laws and regulations that have a direct impact on the preparation of the financial statements, including. but not limited to the Companies Act 2006, FRS 102 (effective 1 January 2019) (Charities SORP), the Charits'es Act 2011 and relevant tax compliance regulations in the UK. 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 may be fundamental to the charivs ability to operate or to avoid a material penalty. We identified the following areas as those most likely to have such an effect.. Employment Law, Data Protection, Health and Safety Legislation and the Independent Schools Inspectorate. We discussed wlth management how the compliance with these laws and regulations Is rnonltored and we discussed the policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the entity complies wilh laws and regulations and deals with reporting any issues as they arise. As part of our planning procedures, we assessed the rlsk of any non-compliance with laws and regulations on the group's ability to continue trading and the risk of material mi5Stat8ment to the accounts. Based on this understanding vfft designed our audit proceduras to Identify non•¢ompliance with such laws and regulatlons. Our procedures involved the following- - Discussions and enquiries with management of compliance wth laws and regulations. Review of board minutes and significant legal costs incurred In the year; and Addressing the risk of management override of intemal controls. Including testing of journals and evaluating whether there was evidence of bias by the Governors that represented a risk of material mi5Statement due to fraud. As part of our enquiries, we discussed with management whether there have been any known instances, allegations or suspicions of fraud. of whlch there were none. There are inherent limitations in the aud￿ procedures described above and the further removed non-compllance with laws and regulations Is from the events and transactions reflected In the financlal statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example. forgery or intentional misrepresentatlons, or through collusion. Because of the Inherent limltations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material rnisstatement in the financial statements. The risk of not detecting a material rnisstatement due to fraud is higher than the risk of not detecting one resultlng from error. as fraud may involve deliberate ornissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations thai ara not closely related to events and transactlons reflected in the financial statements. A further description of our responsibilltles Ss available on the Financial Reporting Council's website at: vwM.frc.org.uKlauditorsresponsibilities. This description fomis part of our audito¢s report. Page 22 Taunton School Educational Charity Independent Auditor's Report to the Governors of Taunton School Educational Charity As part of an audit in accordance with ISAS (UK), we exercise professional Judgement and maintain professional scepticism throughout the audit. We also- Identify and assess the risks of material misstatement of the financial statements. whether due to fraud or error. design and perform audit procedures responsive to Ihose risks. and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher th8n for one resulting from an error, as fraud may involve collusion. forgery, intentional omissions, misrepresentations, or the override of intemal control,. Obtain an understanding of intemal control relevant to the audit in order lo design audit procedures that are appropriate In the circumstances. but not for the purpose of expresslng and oplnlon on the effectiveness of the group's internal control: Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Govemors; • Conclude on the appropriateness of the Governors, use of the golng concem basis of accounting and. based on the audit evidence obtalned, whether a material uncertainty exlsts related to events or conditions that may cast significant doubt on the group's or the parent charitable companws ability to continue as a going concern. If we conclude Ihat a material uncertainty exists. we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, Is such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concem; Evaluale Ihe overall presentation, structure and content of the financial statements, including the disclosures, and whether the financlal statements represent Ihe underlying transactlons and events in a manner that achieves fair preseniation; Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express and opinion on the financial ststernents. We are responsible for the direclion, supervision and performance of the group audlt. We remain solely responslble for our audit opinion; and . We communicate wlth those charged with govemance regarding, among Other matters, the planned scope and timing of the audit and significant audil findings, including any significant deficiencies in intemal control that we Identify during the audit. Us• ol our roport This report is made solely to the charitable companls Govemors. In accordance wrth Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to Ihe charitable companys Govemors 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 8ssume responsibility to anyone other than the chariiable company and the charitable companls Governors as a body, for our audit work, for this ￿port, or for the opinions we have formed. Pag8 23 Taunton School Educational Charity Independent Auditor's Report to the Governors of Taunton School Educational Charity Ikr Ffaffio Duncan Leslie (Senior Statutory Auditor) PKF Francis Clark, Statutory Auditor Ground Floor 90 Victoria Street Bristol BS16DP 2710312025 Page 24 Taunton School Educational Charity Consolidated Statement of Financial Activities Year Ended 31 August 2024 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrestrlcted R•strlct•d Endowment funds funds funds £000 £000 £000 Totsl 2024 £000 Total 2023 £000 Note Income and Endowmonts from: Oonalions and legacies Charitable actlvltles School fees Other educational income Other ancillary trading income Olher tradlng activities Investment income 1,143 1,143 441 26,901 26,901 25,706 2,000 2,000 1.776 1,293 1,293 75 1,158 105 75 Tolal income 31,342 75 31,417 29,190 Expendlture on: Ralslng funds Trading expenses Financlng costs Charltablo actlvltles Education and grant making Total expendlture Gainsllosses on Investment assels (738) (160) {738) {160) (586) (146) 10 28,534 998 29.618 26,839 {29,431) (998) (86) (30,515) (27,571) 143 19 Net Incomel(expendltUfe) Transfers belween funds 1.911 (998) 132 1.045 1,600 365 104 Net movement In funds 2,172 (1,363) 236 1,045 1,600 Reconclllation of fvnds Total funds brought foDNard 14.035 4,943 1,815 20,793 19,194 Total funds carried forward 21 16,207 3.580 2,051 21.838 20.793 All of the group's a¢tivitles derive from continuing operations during the above two periods. The funds breakdown for 2023 and 2024 shown in note 21. The notes on pages 29 to 57 form an Integral part of ihese financial statements. Page 25 Taunton School Educational Charity Consolidated Balance Sheet 31 August 2024 2024 £000 2023 £000 Not• Fixéd assets Tangible assets Investments 13 29.146 2,020 31.165 26.212 5.066 31.278 Currnnt assets Stocks Debtors Cash at bank and in hand 15 16 207 1.568 6,080 199 1,037 2.723 7.855 3.959 Credltors: Amounts falllng due wlthln one year Net current Ilabllltl•s 17 11,108 10.361 3,253 6,403 Total assets less current Ilabllltleg 27,912 24,875 Credltors: Amounts falllng duo after moro than one year 18 Net ass•ls 6,074 4,082 21,838 20,793 Fund$ of tho group: Endowrnent funds Restricted funds Unrestricted funds 2,051 3,580 16.207 1,815 4,943 14.035 21 Total funds 21 21,838 20.793 The financial statem8nts on pages 25 to 57 were approved by the trustees, and aulhorlsed for Issue 0410212025 on............,..,.... and signed on their behalfby: Mr R Kennedy Treasurer The notes on pages 29 to 57 forni an integral part of these financial slatements. Page 26 Taunton School Educational Charity Balance Sheet 31 August 2024 2024 £000 2023 £000 Note Flxed assots Tangible assets Investments 13 28,868 2,020 30,888 26.200 5,066 31,266 Current assets Stocks Debtors Cash at bank and In hand 15 16 195 1.740 5.569 188 1,008 2,700 3.896 7,504 Credltors: Amounts falllng due wlthin one year Net current Ilabllltl•s 17 10.712 10,264 3,208 6,368 Total assets less current Ilabllltles 27.679 24,897 Credltorn: Amounts falllng due aftor morn than one year 18 6,074 4.082 Net assets 21,605 20.815 Funds of Ihe charlty: Endowmenl funds 2,051 2,008 Restrlct•d Income fund8 Restricted funds 3,580 4,772 Unrestrlcted Income funds Unrestricted funds 15,974 14.036 Total funds 21 21,605 20,815 The financlal statements on pages 25 to 57 were approved by the trustees, and authorised for issue on 0410212025 and signed on their behalf by: Mr R Kennedy Treasurer The noles on pages 29 to 57 forni an integral part of these financial ststements. Page 27 Taunton School Educational Charity Consolidated Statement of Cash Flows Year Ended 31 August 2024 2024 £000 2023 £000 Note Cash flows from operatlng actlvitles Net income 1,045 1,600 Adjustments to Cash flows from non•¢ash items Depreciation Investment income Interest payable Loss on Investment 1,146 (132) 160 1.119 (39) 146 19 2,218 2,845 Worklng capltal adJu8im•nts Increase in stocks 15 Increase In debtors 16 Increase in creditors 17 Increasel(decrease) in fees in advance and parent's deposits 18 Net cash flows from operating activitles Cash flow$ from Investlng actlvltles Dividends, interests and rents from investments Purchase of tangible fixed assets Sale of tangible fixed assets Purchase of investments Sale of investments (8) {531) 131 (31) (70) 131 103 4,393 2,772 132 (4,079) 39 (1,587) 197 (423) 490 13 (267) 3,457 Net cash flows from Investlng actlvltles 757 1,284 Cash flows from financlng actlvltles Interest payable and slmilar charges Repayment of loans and borrowings Cash Inflows from new borrowing Not cash flows from financing activltles Net Sncrease in cash and cash equivalents Cash and cash equivalents at 1 September (160) (119) {146) (20) 608 17 279 442 3,357 1.930 2,723 793 Cash and cash equivalents at 31 August 6,080 2,723 All of the cash flows are derived from continuing operations during the above two periods. The noles on pages 29 to 57 form an Integral part of these flnanclal stalements. Page 28 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 1 Charlty status Taunton School Educational Charity (the 'School') was incorporated in England and Wales as a company limited by guarantee, (registered no. 04005803) on 1 June 2000 and has no share capital. The School is also ￿gIStered with the Charity Commission {registered no. 1081420). The address of its registered and principal office is: Taunton School Staplegrove Road Taunton Somerset TA2 6AD 2 Accountlng policles Summary of slgnlfiGant J¢¢ountlng pollcles and k•y accountlng •stlmat•8 The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless othenNise stated. Statement of compllance The financlal statemenls have been prepared In accordance wlth 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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in Ihe UK and Republic of Ireland (FRS 102) and the Companles Acl 2006. Ba818 of proparatlon Taunton School Educational Charity meels the definition of a public benefit entlty under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwiso stated in the relevant accounting policy notes, Basls of consolidation Th8 consolidated financial statements consolidate the financial statements of the charfty and its subsidiary undertakings drawn up to 31 August 2024. The results of the subsidiary are consolidated on a line by line basis. Page 29 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 A subsidiary is an entity controlled by the charity. Control is achieved where the charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The results of subsidiarles acqulred or disposed of du￿ng the year are included in the statement of financial activities from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary. adjustments are made to the financial statements of subsldiarles to bring their accounting policies Into line with those used by the group. The purchase method of accounting Is used lo account for buslness combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange. plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, Any excess of the cost of the business combination over the acquirerfs interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill. Inter-company transactions. balances and unrealised gains on transactions beiween the charity and its subsidiaries. which are related parties, are eliminated in full. Intra4Jroup losses are also eliminated bul may indicate an impairment that requi￿5 recognition In the consolidated financial ststernents. Ac￿unting policies of subsidiaries have been ch8nged where necessary to ensure consistency with the policies adopted by the group. Non•controlling Interests In the net assets of consolidated subsidiaries are Identified separately from the group's equity therein. Non4ontrolling interests consist of the amount of those interests at the date of the original business combination and Ihe non-controlling shareholderfs share of changes In equity since Ihe date of the combinatlon. Total comprehensive income is attributed to non-conlrolling interests even rf this results in the non-controlling Interasts havlng a deficlt balan￿. The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented Its own Statement of Flnanclal Actlvitles in Ihesa flnanclal statements. Golng concern The trustees consider thal there are no mater5al uncertainties about the group's ability to continue as 8 going concern nor any significani areas of uncert8lnty that affect the carrylng value of assets held by the group. Page 30 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 Income and endowmenls All income is recognised once the Company has entitlernent to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Fees receivable 8nd charges for sepiices and use of the premlses, less any allowances, scholarships, bursaries granted by the Charity against those fees, but including contributions received from restricted funds, are accounted for in the period in which the service is provided. Investment income from dividends. bank balances and fixed interest securities Is accounted for on an accruals basis. Voluntary incorning resources are accounted for as and when entitlement arises. the amount can be reliably quantified and the economic benefit to the Charity is considered probable. Voluntary income for the Charity's general purposes is accounted for as unrestricted. Where the donor or an appeal has Imposed trusl law reslrictions, voluntary income is credited to the relevant restricted fund and Incoming endowments are accounted for as pemanent trust capital or expendable trust capital, accordlng to whether the donor intends retention is to be pemlanent or not. Income tax recoverable in relation to investment income is recognised at Ihe time the investment income Is receivable. Expendltur• Expenditurels recognlsed once there Is a leg81 or constructive obligatlon to transfer economic benefit to a third paty, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of dlrect costs and shared Costs, Includlng support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to Ihat activity. Shared costs which contribute to rn0￿ than one activity and support costs which are not attributable to a slngle activity are apportioned beiween those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent. and depreciation charges allocated on the portion of Ihe asset's use. Expenditure on raising funds Sncludes all expenditure Incurred by the Group lo ralse funds for its charitable purposes and Sncludes costs of all fundraising activilies events and non-charitsble trading. Expendlture on charitable actlvltles Is Incurred on dlrectly undertaklng the actlvltles whlch further the Group's objectives, as well as any associated support costs. All expenditure Is Incluslve of irrecoverable VAT. Support CO8tg Support costs include central functSons and have been allocated to activity cost categories on a basis consistent with the use of resources, for example. allocating propety costs by floor areas. or per capits, staff costs by the time spent and other costs by their usage. Page 31 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 Taxatlon The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Seckn'on 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exdusively to charitable purposes. Tangible fixed assets The Chariivs Land and Buildlngs are vested in Taunton School Trust. a restricted fund. Tangible fixed assets are stated at historical cost and subsequently depreciated to their estimated net realisable value over their useful lives. Even so, the School operates a formal programme of maintenance that includes routine building work written off in the Statement of Financial Activities in the period concerned. Land is not deprecialed. Major Ilems of expendllure on buildings and assets over £1,000 are caplta15sed. To the extent that refurbishment work is consldered to improve and thus add a commensurate value to the building, Such refurbishment costs are also capitalised and depreciated as appropriate. D•pr•¢latlon and amortlsatlon Depreciation is provided on tsngible fixed assets so as to write off the cost or valuation. less any estimated residual value, over their expected usoful economic life as follows: As80t class Land and buildings Equipment Motor vehicles Assets under construction Deprnclatlon method and rnt• 5-50 years 3-25 years S years Not depreciated Bu8lne88 comblnallon8 Business combinatlons are accounted for under the purchase rnethod. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the group. All intra-group transactions, balances, income and expenses are elirninated on consolidation. In accordance with Section 35 of FRS 102. Section 19 of FRS 102 ha5 not been applled in these financial statements in respect of buslness comblnatlons effected prior to the date of transition. Flxed asset Investments Fixed Asset Investrnents are stated at rnarket value. Income from Fixed Asset Investments and the related tax credit are recognised in the Statement of Financial Activities in the period to which they relate. Where the market value of investments dlffers from the historic cost, the difference is recognised as an unrealised gainlloss in the Statement of FSnancial Activities. Where the investment has been sold, this is recognised as a realised gainlloss. The investment In the subsidiary is held at cost. Page 32 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 Stock Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using tha first-in, first-out (FIFO). Trade debtors Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised Inltlally at the transaction prlce. They are subsequently measured at amortised cost using the effective interest method, less provision for impairrnent. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the ortginal tems of the receivables. Cash and cash equlvalents Cash and cash equivalenls comprise cash on hand and call deposits, and olher short-term highly Ilquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. Llabllltlès and provlslon$ Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event. it is probable that a transfer of economic benefit will be requlred In settlernent, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Company anticipates 11 will pay to settle the debt or Ihe amount It has received as advanced payments for Ihe goods or services it musl provide. Provisions are measured at the best estimate of the arnounts required to settle the obliga￿on. Where Ihe effect of Ihe time value of money is rnaterial, the provision is based on the present value of those amounts, discounled at the pre-tax discount rate thal reflects the risks specific to the liability. The unwinding of the discount is recognised In the Consolidaled statement of financial activities as a finance cost. Page 33 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 Forelgn exchange Transactions in foreign currencies are recorded at Ihe rate of exchange at the date of the transaction. Monetary assets and liabilities denominated In foreign currencies at the balance sheet date ar8 reported at the rates of exchange prevailing at that dale. The results of overseas operations are translated at the average rates of exchange during the period and their balance sheets at the rates ruling at Ihe balance sheet date. Exchange differences arising on translation of the opening net assets and results of overseas operations are reported in other comprehensive income and accumulated in equity (attributed to non-controlling interests as appropriate). Other exchange differences a￿ ￿cOgnised in the Ststement of Financlal Activities In the period in whlch they arise except for., 1) exchange dlfferences on trans8Ctlons entered Into to hedge certaln foreign currency rlsks {see above); 2} exchange differences arislng on gains or losses on non-monetary items whlch are recognised In other comprehensive income. and 3) in the case of Ihe consolidated financial statements. exchange differences on monatary items receivable from or payable to a foreign operation for which settlernent is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), whlch ara recognised in other comprehensive income and reported under equity. Fund structure General funds are unrestricted funds whlch are available for use at the dlscretion of the Governors in furtherance of the general objectives of the Group and which have not been designated for other purposes. Restricted funds and Endowed funds are funds whlch are to b8 used in accordance with speclfic restrictions imposed by donors or which have been ralsed by the Group for particular purposes. The costs of raising and administering such funds ar8 charged against the specific fund. The aim and use of each restricted fund Is set out In the notes to the financial statements. Investmant income, galns and losses are allocated io the approprfate fund. Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose. Page 34 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 Operating and finance leases Operatlng leases Rentals paid under operating leases are charged to the Consolidated ststement of financial activities on a straight-line basis over the lease term. Flnanc• leases Assets held under finance leases and the related lease obligation are included at the fair value of the leased assets at the inception of the lease. Depreciation on leased assets is calculated to write off this amount on a straight line basis over the shorter lease term and the useful life of the asset. Rentals payable are apportioned betwe8n the finance charge and a reductlon of the outstanding obligation for future amounts payable so that the charge for each accounting period is a constant per￿ntage of the remaining balan￿ of Ihe capital sum outstanding. Pensions and other post r•tlrement obllgatlons The Teachers, Pension Scheme is a multi-employer pension scheme. It is not possible to identify the School's share of the underlyrng assets and liabilities of the Teachers, Pension Scheme on a consistent and reasonable basis and therefore, as required by FRS102, accounts for the scheme as if it were a defined contribution scheme. The School's contributions, which are in accordance with the recommendations of the Govemment Actuary, are charged in the period in which the salaries to which they relat6 are payable. The charity contributes lo the Pensions Trust Growth Plan for certain of its employees. This is in most respects a rnoney purchase arrangement, but does not indude certain guaranteed benefit elements. The Plan Is a multi-employer scheme as it is nol possible in the normal course of 8v8nis to identify the share of underlying assets belonging to the Individual participating employers and accordingly, in accordance with FRS 102, Is accounted for as a defined contribution scheme with contributions being recorded as they become payabl8. Th8 Taunton School Final Salary Penslon Scheme is a defined benefit scheme. The defined benefit pension scheme Current seryice costs are charged to the Statement of Financial Activities within staff costs. The expected return on the scheme assets less ihe scheme interest costs are credited within other interest. The scheme actuarial gains and losses are recognised immediately as other recognised gains and losses. The defined benefit scheme assets are measured at fair value at the Balance Sheet date. The scheme liabilities are measured on an actuarial basis at the Balance Sheet date using Ihe projected unSt method and discounted at a rate equivalent to th8 current rate of return on a high quality corporate bond of equivalent term to the scheme liabilities. The resulting defined benefit asset or liability is presented separately after other net assets on the face of the Balance Sheet. The School operates a defined contribution pension scheme, for teaching staff, managed by The Royal London, as an altemative to Teachers. Pension Scheme. The employerfs contribution is either 80/0 or 16.489A. Page 35 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 Financial instruments Classlllcation Financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the instrument. Financial liabilities and equity Instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. Recognltlon and measurement Basic financial instruments are initially recognlsed at transaction value and subsequently measured at amortised 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 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 access bank accounts and used as working capital. Financial liabilities held at amortlsed cost comprise all creditors except social security and other taxes and provisions. Asseis and liabilities held in foreign currency are translated to GBP at the balance sheet date at an appropriat8 year end exchange rate. Slgnlflcant estimale and Judgem•nts Preparation of the financial statements requires management to make slgnlficant judgements and estimates. The Items In the financial statements where these judgements and estimates have been made indude: Usefvl economic lives of tangible fixed assets The annual amortisation and depreciation charges for the tangible 8SS8tS are sensitive to changes in the estimated useful economic lives and ￿sidUal values of the assets. The useful economic lives and residual values are amended when necessary to reflecl current estSmates. based on technological advancement, future inveslments, economic utilisation and the physical condition of the assets. See notes 13 for the carrying amount of the tsnglble assets. Impaim7ent of debtors The School makes an estimatè of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credil rating of the debtor, the ageing profile of debtors and historical experfence. See Note 16 for the nel carrying amount of the debtors and associated impairment provision. 3 Income from donatlons and legacies Unre$trlcted funds £000 143 1,000 Total 2024 £000 143 1,000 1,143 Total 2023 £000 441 Donatlons Legacies 1,143 441 Page 36 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 4 Income from School fees Total 2024 £000 33,063 (6.161) Total 2023 £000 31,451 (5.835) The School's fee Income comprised: Gross fees Less: Total bursaries. grants and allowances Add back: Scholarships, grants and bursaries from restrlcted and endowed funds 90 26,901 . 25,706 In 2024 and 2023. of the total Income from School fees all were unrestricted. S Income from other educatlonal charltable actlvllles Total 2024 £000 60 646 1,294 Total 2023 £000 59 561 1,157 1,776 Entrance and reglstration fees Olher charges to pupils Courses and sub-lettings 2,000 In 2024 and 2023, of the tot81 Income from other educallonal charitable a￿1vitieS recelvable all were unrestricted. 6 Income from other anclllary tradlng actlvltlos Total 2024 £000 Total 2023 £000 Other Income In 2024 and 2023, of the total income from other ancillary trading aclivitles all were unrestricted. Pag8 37 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 7 Income from other tradlng actlvltle8 Income from non ancillary trading activitles Unre8trlcted funds £000 342 451 251 248 Total 2024 £000 342 451 251 248 Total 2023 £000 276 451 320 111 Taunton School Enterprises Limited School shop Swim school Fees in lieu 1.293 1,293 1.158 8 Investment Incom• Total 2024 £000 75 Toial 2023 £000 105 Endowment £000 75 Interest recelved 9 Expendltur• on ralslng fund8 a) NOn￿ncIlIary tradlng •xp•n80• UnrestrScted funds £000 723 15 Total 2024 £000 723 15 Total 2023 £000 584 Trading expenses Trading expenses - deprecSatSon 738 738 586 b) Investment management costs Unrestrfcted funds £000 160 Total 2024 £000 160 Total 2023 £000 146 Loan Interest payable 160 160 146 Page 38 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 10 Expenditure on charitable actlvlties Summary by fund type Unrestrictod Restricted Endowment funds funds funds £000 £000 £000 14,125 4,737 2,887 Total 2024 £000 14,125 5,735 2,887 Total 2023 £000 13,287 5,378 2.706 Teaching Premises Weffare Support costs of schooling and governance costs Granls and awards 6,785 6,871 5,377 90 28.534 998 86 29,618 26.839 Summary by expendltur• type Other costs £000 852 2,877 1.158 Staff costs Depreclatlon £000 £000 13.273 1.724 1.729 2024 £000 14,125 5,735 2,887 2023 £000 13,287 5,378 2,706 Teaching Premises Welfare Support costs of schooling and govemance costs Grants and awards 1,135 2,333 4,537 6,871 5,377 90 Total for 2024 19,059 1,135 9,424 29,618 26.839 Governance Included In support costs 2024 2023 £000 £000 Staff costs 333 218 Govemors liability insurance Auditorfs remuneration Auditorfs remuneration - non audit services 32 31 16 Office costs 377 269 Pag8 39 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 11 Governors, remuneratlon and oxpenses During the year. no Govemors received any remuneration or other benefits {2023: £Nil). During the year ended 31 August 2024, expenses totalling £0.8k were reimbursed or paid directly to Govemors for expenditure such as travel and subsistence for all of the trustees (2023: £14.5k). 12 Staff costs The aggregate payroll costs were 8s follows: Group 2024 £000 Group 2023 £000 Staff costs durlng th• year wore: Wages and salaries Social securlty costs Pension costs 15.672 1,405 1,982 14,525 1,332 1.832 19,059 17,689 The average number of persons employed by the group during the year was as follows: Group 2024 Group 2023 No 354 274 Teaching staff Support staff 366 295 661 628 During the year, the group made redundancy andlor termlnation payments which totalled £NII (2023 - £73,400). The number of employees whose emoluments fell wlthin the following bands was: 2024 No 2023 No £60,001- £70.000 £70,001- £80,000 £80,001- £90.000 £90,001- £100,000 £110.001- £120.000 £120,001- £130.000 £140,001- £150,000 £160,001- £170,000 Page 40 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 The total employee benefits of the key management personnel of the group were £617,400 (2023 - £725,400). Page 41 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 13 Tanglble fixed assets Group Land and buildings £000 Motor Assets under vehlcles Construction £000 £000 Equlpment £000 Total £000 Cost At 1 September 2023 Additlons Transfers 32,782 247 317 3,929 236 361 592 3.543 678 37,303 4,079 At 31 August 2024 33,345 4.526 3,457 41.382 Depreclatlon At 1 September 2023 Charge for the year Transfers 7,856 3,234 11,090 870 268 1.146 At 31 August 2024 8.735 3,495 12,236 Net book value At 31 August 2024 24,611 1,031 47 3.457 29,146 At 31 August 2023 24,925 695 592 26,212 Page 42 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 Charfty Land and buildings £000 Assets under Equlpment Construction £000 £000 Total £000 Cost At 1 September 2023 Addilions Transfers 32,770 45 317 3.655 212 592 3,543 678 37.017 3,799 At 31 August 2024 Depreclatlon At 1 September 2023 Charge for the year Transfers 33,132 4,228 3,457 40,817 7,845 870 2.973 261 10.818 1,131 At 31 August 2024 Net book valu• 8,723 3.226 11.949 Al 31 August 2024 Al 31 August 2023 24,409 1,002 3,457 28.868 24,925 682 592 26,200 14 Flxed asset Invastments Group Other flxed assot Inve8tment8 £000 Total £000 C08t or Valuatlon At 1 September 2023 Revaluation Additions Disposals Withdraws 5,066 143 267 (272) 3.185 5,066 143 267 {272) 3,185 At 31 August 2024 Net book value 2,020 2,020 At 31 August 2024 At 31 August 2023 2,020 2,020 5.066 5.066 Pag8 43 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 Charlty Shares In group undertakings and participatlng Interests Subsldiary undertaklngs Total Cost At 1 September 2023 At 31 August 2024 Nel book value 100 100 100 100 At 31 August 2024 Al 31 August 2023 11)0 100 11JO 100 Page 44 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 Other Invesiments Llsled Investments £000 Total £000 Cost or Valuation At 1 September 2023 Revaluation Additions Disposals Withdraws 5,066 143 267 (272) 3,185 5,066 143 267 {272) 3,185 At 31 August 2024 2,020 2,020 Net book value At 31 August 2024 2,020 2,020 At 31 August 2023 Analysls of fixed asset Investments 5,066 5,066 2024 2023 £000 £000 Quoted investments at market value Cash at brokers 1,912 108 4,966 100 2,020 5.066 Hlstorlcal cost of quoted Investments was £1,767k. Detalls of undertaklngs Oetalls of the Investments in which the charity holds 20% or more of the nomlnal value of any class of share capital are as foll0v￿. Poge 45 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 Country of Incorporatlon Proportion of voting rlghts and shares h•ld 2024 2023 Prlncipal actlvlty Undertaklng Holding Subsidiary undertakings To support the School's charitable aims through letting of its facilities when not required for educational purposes Taunton School Enterprises Limited (company no. 02846335) Taunton School. Staplegrove Road, Taunlon, TA2 6AD England and Wales £1 Ordinary 100% 100V. Taunton School Trustees Limited (company no. 06706952) Taunton School, Staplegrove Road. Taunton. TA2 6AD The financial results of the subsldiarles for the year were: Incorn• Exp•ndltur• £000 £000 England and Wales 1000A 100% Dormant company £1 Ordinary ProflU{Loss) £000 Net assets £000 Taunton School Enterprlses Llmlted Taunton School Trustees Limited 1,428 1,287 141 Taunton School Enterprises Limited was formed to support the School's charitable alms through letting of its facilities when not required for educational purposes. It donates its annual taxable profits lo the School by Gift Ald - £nil (2023 - £82k). Included In the tumover of Taunton School Enlerprlses Llmited is £795k (2023: £772k) of Intercompany sales to Taunton School. A management fee of £3k (2023: £3k) was paid to Taunton School. At the year end, £314.8k {2023: £50.7k) was owed by the subsidiary. Page 46 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 15 Stock Group 2023 £000 95 Charity 2023 £000 95 2024 £000 103 2024 £000 103 Consurnable materials School shop and materials for sale 104 104 92 93 207 199 195 188 16 Debtors Group 2023 £000 418 Charlty 2023 £000 415 79 2024 £000 584 2024 £000 510 314 Trade and other debtors Due from group undertakings Prepayrnents and accrued incorne VAT recoverable Fee debtors 428 68 488 331 45 242 428 272 488 242 1,568 1,037 1.740 1,008 Page 47 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 17 Credltors: amounts falllng due withln on• year Group 2023 £000 65 661 Charlty 2023 £000 65 601 2024 £000 40 1,121 2024 £000 40 1,083 Bank loans Trade creditors Other taxation and social security Pension scherne creditor Other creditors and accruals Fee deposits use Advance fee scheme Fees ￿CeIved in advance of lenn 377 299 1,016 1,092 1,338 378 281 1,364 1,079 524 377 299 658 1,092 1.338 378 281 1,326 1,079 524 5,824 6,010 5,824 10,712 6.010 11,108 10,361 10,264 18 Credltors: amounts lalllng due after one year Group 2023 £000 1,137 2,289 656 Charity 2023 £000 1.137 2.289 656 2024 £000 1,127 3,366 1,581 6,074 2024 £000 1,127 3,366 1.581 Bank loans Fee deposits Advance fee scheme 4,082 6,074 4.082 Included wlthin the above are arnounts falling due as follows: Between two and fivo yoars Bank loans 190 1.050 190 1,050 Over fiv• yearn Bank loans 937 87 937 87 The School has three bank loans with HSBC plc. The loans are secured by a legal Charge over the School's properties Greenway Road and The Grange. Page 48 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 19 Advanc• fees Parents may pay to the School tuition fees in advance. Assurning pupils remain in the advance fee scheme, payments will be applied to offset fees as follows: 2024 2023 £ooD £000 Within one year Within one to two years Within two lo five years Over five years 1,338 787 524 286 747 370 47 2,919 1.180 2024 2023 £000 1,180 2,360 (535) (110) 24 £000 Balance al 1 September 2023 New contracls Amounts utilised in payment fees C8plt81 repald Discounts applied Balance at 31 August 2024 1,277 490 (594) (14) 21 2,919 1,180 20 Flnanclal Instruments Group 2024 Group 2023 Company 2024 Company 2023 Flnanclal assets £000 £000 4.966 £000 1,945 £000 4,966 Flnanci81 assets measured at falr value 1,945 Flnanci81 assets measured at falr value Includes assets held as investrnents less cash held. Page 49 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 21 Funds Group Balance at Balance at 31 August 2024 £000 S•ptember 2023 £000 Incomlng Resources resources expended £000 £000 Transfers £000 Unrestrlct•d funds General Funds - 811 funds 14,035 31,342 (29,431) 261 16,207 Reslrfctod fvnds Taunton School Foundation Parental Funds Taunton School Trust- Land & Buildings Haynes Fund lan Evans-Lombe Scholarshlp Fund Gerrard Memorial Bursary Taunton School Scholarship and Bursary Fund Other Restricted Funds 1,508 105 113 (105) 1,620 1,960 101 1,960 (101) 104 998 (104) (998) 113 55 (113) 55 Total restrlcted funds 4.943 365 3.580 Endowment funds lan Evans-Lornbe SChola￿hIP Fund 1,815 1,815 20,793 132 104 2,051 2.051 132 104 Total funds 31,474 30,429 21,838 Page 50 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 Balance at Balance at Gainsl 31 August (losses) 2023 £000 £000 September 2022 £000 Incoming Resources rosources expended £000 £000 Unrestrlcted funds General Funds- all funds 12.895 28,643 (27.571) 68 14,035 Restricted fvnds Taunton School Foundation Parental Funds Taunton School Trust- Land & 8uildlngs Haynes Fund lan Evans-Lombe Scholarship Fund Gerrard Memorlal Bursary Tavnton School Scholarship and Bursary Fund Other Rastrlcted Funds 1,027 105 481 1,508 105 1,960 101 1,960 101 38 998 104 998 113 55 113 55 Total restrlcted funds 4,397 547 4,943 Endowmenl funds lan Evans-Lornbe Scholarship Fund 1,902 87 1,815 1,815 1,902 87 Total funds 19,194 29,190 20,793 27.571 19 Page 51 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 The specific purposes for which the funds are to be applied are as follows: Endowment funds: The lan Evans-Lombe Scholarship Fund forms part of the Foundation Funds. The gift was made by the Trustees of Mr Evans-Lombe with the objective to advance the education of children who could not otheroiise afford the School's education by providing for scholarshlps to be awarded to two pupils starting in the Lower Sixth each year. Restricted funds: Taunton School Foundation (TSF) - The trust is administered by a Foundation Board, who work with the Govemors to promote and provide for the development of the educational facilities and activities of the School. Taunton School Trust - The fund represents the land and property and restricted funds held by Taunton School Trust on incorporats'on.. Page 52 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 22 Analysis of net assets betwe&n funds Group Unrestrlcted funds General £000 25,594 2.020 5,775 {11,108) 6.074 Endowment funds Expendable £000 2,051 Total funds at 31 August 2024 £000 29,145 2.020 7.855 (11,108) 6,074 Restricted funds £000 1.500 Tangible fixed assets Fixed asset investrnents Current assets Current liabilities Creditors over 1 year Total net assets 2,080 16,207 3,580 2,051 21,838 Unrestricted funds Restrlcted Endowment funds Total funds at 31 August 2023 £000 26.212 5,066 3,959 (10,361) 4,082 £000 22,399 5.066 1,014 (10,361) 4,082 £000 1,998 £000 1,815 Tangible fixed assets Fixed asset investrnents Current assets Current liabllities Creditors over 1 year Total net assets 2,945 14,035 4.943 20,793 23 Analysls of net funds Group At1 September 2023 £000 2,723 (65) 1,137 Flnanclng At 31 August cash flows 2024 £000 £000 3,357 6,080 25 (40) 10 1,127 4,913 Cash at bank and in hand Debt due within one year Debt due after more than one year Net debt 1,521 3.392 Page 53 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 Other non cash At 31 August changes 2023 £000 £000 2,723 (65) September 2022 £000 793 (20) Financing cash flows £000 1,930 20 Cash at bank and in hand Debt due within one year Oebt due after more than one year (65) 595 608 65 1,137 Net debt 179 1,342 1,521 24 Penslon and othor s¢hemes Deflned beneflt penslon schemes Teachers. Penslon Scheme The School participates in the Teachers, Penslon Scheme ('Ihe TPS") for Its teachlng staff. The pension charge for the year includes contributions payable to the TPS of £1,626.705 (2023: £1,190,961) and at the year-end £126.542 (2023: £147.400) was accrued in respect of contributions to this scheme. The TPS Is an unfunded mullkemployer defined benefits penslon scheme govemed by The Teachers, Pensions Regulations 2010 (as amended) and The Teachers, Pensiorb 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 Padiament. The employer contribution rate Is set by the Secretary of State following scheme valuations undertaken by the Govemment Actuar¢s Department. The most recent actuari81 valuation of the TPS was prep8r8d as at 31 March 2020 and the Valuation Report, which was published in October 2023. Followlng the Mccloud Judgernent, Ihe remedy proposed that when benefits become payable, ellglble rnernbe￿ can select lo receive thern from either the reformed or legacy schemes for Ihe period 1 April 2015 to 31 March 2022, The actuaries have assumed that members are likely lo choose the option that provides them with the greaier benefits, and in preparlng the 2020 valuatlon have valued the 'greater value, benefits for groups of relevant mernbers. The valualion confirrned that the employer c<)ntribution rate for the TPS would increase from 23.60h to 28.6°A from 1 April 2024. Employers are also required to pay a schemg administration levy of 0.089 givlng a total employer contrlbution rate of 28.68%. The Group oper81es a defined benefii pension scheme. Support staff The School operates a defined benefit pension scheme for its support staff, The Taunton School Final Salary Scheme, which Is managed on its behalf by JLT. The scheme is funded and Is contracted into the state scheme. The scheme closed to new entrants on 1 October 2001. The last formal valuation of the scheme was performed in 2021 and showed an actuarial deficit so a recovery plan has been put in place, subject to review at future funding assessments. The position at the end of 2024 is set out below. Page 54 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 The amounts recognised in the Consolidated Ststement of Financial Activities are as follows.. 2023 2024 £000 £000 Actual retum less expected retum on assets Experience losses on the liabilities Change in assumptions Unrecognised surplus Total amount recognised in the Consolidated Statement of Financlal Activities {1.311) (46) (1,186) 514 257 547 {1.100) (125) Reconclllatlon of $chemo assets and Ilabllltles to assets and Ilabllltles recognlsed The amounts recognised in the statement of financial position are as follows: 2024 £000 4,789 4,738 2023 £000 5,133 4,860 Fair value of scheme assets Present value of defined bonefit obligation Defined benefit pension scheme surplus 51 273 Deflned beneflt obllgatlon Changes in Ihe defined benefit obligation are as ft)Ilows: 2024 £000 (4,860) (251) {46) 419 Present value at start of year Interest cost Actuarial ga5ns and losses Benefits paid Present value at end of year 4,738 Falr value of scheme assets Changes in the fair valu6 of schemg assets are as follows: 2024 £000 5,133 286 (1,311) 1,100 419 Fair value at start of year Interest income Retum on assets less interest income Employer contributions Benefits paid Fair value at end of year 4,789 Page 55 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 Analysis of assets The major categories of scheme assets are as follows: 2024 £000 51 4,738 2023 £000 73 5.060 Cash Bonds 4,789 5,133 Prlncipal actuarlal assumptlons The principal actuarlal assumptions at the statement of financial posltion date are as follows: 2024 2023 Discount rale Future pension increas8s Inflation 5.00 2.90 3.00 5.40 3.00 3.10 Post retlrement mortallty a3sumptlon3 2024 Years 26.00 27.00 28,00 30.00 2023 Years 26.40 28.40 28.00 30.00 Current UK pensioners at retirement ag8 - male Current UK pensloner8 at retirement age - female Future UK pensioners at retirement age - male Future UK ponsioners at retlrement age - female The School also operates a d6flned contributlon penslon scheme managed by The Royal London, which non-teaching staff are eligible to join. The assets of the scheme are held separately from the School. The employer's contributions matche5 that of the employee wlthin the region of 5-12.5%. The cost for the year represents the School's contribution to the Scheme of £355.295 (2023: £310,276). The School operates a defined conlrlbutlon penslon scheme, for leaching staff, managed by The Royal London, as an altemative to Teachers, Pension Scheme. The employers contribution 5s either 30kn. 8Q/o or 16.480/0. As al 31 August 2024 Ihere were 50 members and the cost for the year represents the School's contribution to the scheme of £294.194 (2023: £293.493). Page 56 Taunton School Educational Charity Notes to the Financial Statements Year Ended 31 August 2024 25 Obligations under leases Operatlng lease commltments At 31 August 2024 the Group and the Charity had commltments to make future minimum lease payments under non-cancellable operating leases are as follows: Group 2023 £000 261 540 221 Charlty 2023 £000 11 15 2024 £000 294 772 300 2024 £000 Within one year Between one and five years After five years 1,366 1,022 12 25 The following lease paym8nts have been recognlsed as an expense in the Statement of Flnanclal Activities: £247k (2023: £277k). 26 Related party transactlons Two (2023 - two) Governors pay for children at the School. School fees incuffed by the Govemors are paid on a commercial arms, length basis. Govemors, rernuneration and expenses are disclosed in note 11 and key managernenl personnel remuneration is disclosed in note 12. Transaclions wlth T8unton School Enterprlses are disclosed In noto 14. A lotal of £1,003,776 (2023 - £nS1) was donated to Taunton School Educational Charity by current or fom)er twstees. There are no other related party transactSons lo note. Page 57