Warwick Schools Foundation Enabling transformation through the power of education COMPANY NUMBER: 04252305 CHARITY NUMBER: 1088057 DIRECTORS, REPORT AND FINANCIAL STATEMENrs FOR THE YEAR ENDED 31 AUGUST 2023 kttoois Foup¢atiO Nl*ion Qtsao 'èlhiWICkCV34 SIP ni926 735400 w•rwKkpr•p.¢om t￿kIng$1•Y￿h¢01.co.¥k king5highw•ryiick.to.vk wan¥K¥sCI￿jmg -. b*4 No -'j52JDS DIRECTORS, RF.PORT AND FINAN'CL4L STATENI EINTS FOR THF. YEAR ENDED 31 AUGUS'I 2023 DIRECTORS, OFFICERS AND ADVISORS Governors, Directors and Charity Trustees The Governors of Warwick Independent Schools Foundation {"the Company , 'Ihè Foundation., "the Group "the Charity") are the Directors and members of the Company and trustees of the Charity and have all served in office throughout the financial year except where indicated. Those who have served during the year are shown below. The total number of elected Govemors comprises three nominated and 12 co-opted Governors. Nominations are subject lo approval by the Board. All Governors may serve up to three terms of four years. In addition, th& Lord-Lieulenanl of Warwickshire and the Mayor of Vvatwick have the right to be ex-officio Governors should they choose to lake up the position. The Foundation merged with The Kingsley School effective 10th March 2021, to bring il into the Warwick Independent School Foundation family of schools. Governors nominated by thefollouying bodies.. The Charity of Sir Thomas While, WapNick The King Henry Vlll Endowed Trust, Warwick University of WapNick Co-npted Governor.s.' Mrs M B Ashe Mrs S M Austin (Chairl Prof S A Barnes Ito 1 March 20231 Ms J L Broughton Mr C R Gibbons Ilo 31 August 2023) Mr5 M P Hicks (to 13 February 2024} Dr F Jaffri (from 9 December 20221 Mr T H Keyes (to 31 August 20231 Mr A F Keeling. QC Mr S J Jobbum Prof D Griffin Mr J D Loudon Mrs J Mackenzie-Lawrie (from 1 September 2022) Mr D B Rankin Mr J N Wallis Mrs R A Weeks Mrs A E Vvilson Mr C White (from 18 April 20231 The Lord-Lieutenant of Warwickshire Mayor of Warwick MrTBCox INOI taken upl Officers.. Foundation Principal Mr R Nicholson Foundation Bursar" Headmaster, Warwick School Headmaster, King s High School for Girls Headmaslerl Headmistress, The Kir)gsley School Headmistress, WanNick Preparatory School Headmaster, Warwick Junior School Mts V Espley MrJ S Barker Df S J Burley Mr J Mercer-Kelly Ilo 31 December 20231 Dr S Howling (from 1 January 2024) Mrs H Dodsworth Mr A Hymer (to 31 December 20221 Mr J Bond (from 1 January 20231 '{Company Secretary) Page 2 .STRATEGIC RF.PORT FOR THE YEAR ENDED 31 ALGUST 2023 Addresses PrineipalAddress and Regislered Office.. Warwick Independent sch.ools Foundation Mylon Road WARWICK CV34 6PP Schools King s High School Banbury Road WARWICK CV34 6YE Day. girls l I-f 8 Warwick Preparatory School Bridge Field Banbury Road WARWICK CV34 6PL Day, boys 3-7 girls 3-11 Warwick School Mylon Road WARWICK CV34 6PP Day, boys 11-18 Warwick Junior School Myton Road WARWICK CV34 6PP Day, boys 7-11 8oarding, boys 13-18 The Kingsley School Beauchamp Hall Beauchamp Ave LEAMINGTON SPA CV32 5RD Day, boys 3-7 girts 3-78 Advisers Bankers Lloyds Ban< PIC 12 Swan Street WARWICK CV34 48J HSBC 6th Fk)or 120 Edmund Street BIRMINGHAM B3 2QZ .SoliL?tors Veale Wasbrough Vizards Narrow Quay House Narrow Quay BRISTOL BS1 4QA Insurers Marsh Brokers Capital House 1-5 Perymount Road HAYWARDS HEATH West Sussex RH16 3SY Auditors Crowe U.K. LLP 4th Floor, Sl James House St James, Square CHELTENHAM GL50 3PR InL•e.stmentAdiij.sers Evelyn Partr,ers 14th Floor 103 Colmore Row BIRMINGHAM B3 3AG Page 3 STRATEGIC REPORT FOR THE YL4R ENDED 31 AUGUST 2023 The Directors of the Company present their annual report for the year ended 31 AugLtst 2023. together with the financial slaternents for the year, which have been prepared in accordance with Company Law and in compliance W￿t￿ the Charities SORP 2015. Ref8rence and Admlnlstrative Information The Company was incorporated on 13￿ July 2001 and is registered in England under Company Number 04252305. It is also a Charity. registered with the Charity Commission under Charity Number 1088057. and is the Corporate Trustee of the WaNick Schools Foundation Trust I'lhe Trust"). The Directors and Governors of Warwick Independent Schools Foundation and the executive officers are listed on page 2 and the principal addresses and professional advisers are listed on page 3. Strudure, Governance and Management Govemin Document In 1875, a scheme was approved by the Endowed Schools Commission for the amalgamation of certain educational charities in WaMick. under the name King's School Foundation. The Scheme provided for the re- establishment of the old King's School in new buildings, lo be called the Grammar School Ifor boys), a Middle School (for day boys lo the age of 151, and a school for girls. A number of local charities contributed the whole, or a portion, of their annual income. A Charity under the name Warwick Schools was registered with the Charity Commissioners for England and Wales Iregistralion number 5287751 and was regulated by Schemes signed on 23rd December 1981, 26tn November 1991, 13tn June 1995, and 16th September 1998. On 29th August 2001, this Charity changed its name to Warwick Schools Foundation Trust. Under the Charity Commission Scheme made on 29tn August 2001 all trust funds other than the Trust's permanent endowrnent of the Schools. land were transferred lo a new Charity known as WaNick Schools, as property ol the Company. and the Trust itself was made a subsidiary Charity of the Company as ils Corporate Trustee. On 11th March 2003 the Charity and the Company changed its name from Warwick Schools to Warwick Independent Schools Foundation. At that lime, the Company was governed by its Memorandum and Articles of Association dated 13, July 2001 and amended by special resolution on 28tn March 2012. By way of special resolution, updated Articles of Association were adopted by the Foundation on 30 June 2023, to incorporate all previous amendments and to ensure Gompliance with all current Companies and Charity Laws. Govemin Bod The Govemors listed on page 2 are appointed as Governors of the Foundation and have overall responsibility for the operation of two Schools, namely King's High School for Gids lincorporating Warwick Preparatory School, which has separate DfE regislrationl and Warwick School (incorporating Warwick Junior Schooll. From 10tD March 2021, a third School was added, namely The Kingsley School. Subsidiary Committees of Govemors have been established. one for each School, with Govemors spread evenly across the School Commiltees. Page 4 STRATEGIC REPORT FOR THE YEAR F.P¥DF.D 31 AUGUST There are also four tactical Committees. each comprTsing one-third of the Governors. In thi5 way, Governance is delivered lo the individual Schools within an overall Foundation framework. The benefits of the approach are robust, inclusive governance, with all Governors taking equal responsibility for the effective running of the Charity. The full Board of Governors plu5 one ex-officio Governor are also the Directors and Members of the Limited Company and Trustees of the Charity. They are responsible for the overall management and control of the Cornpany and meet three limes a year. The Foundation Principal Is the executive lead across the Foundation. He is supported by a Principal's Group comprising the School Heads and Foundation Bursar. In his capacity as Foundation Principal, he has ultimate responsibility for the management of the individual schools and subsidiary trading company. He reports directly to th8 Trustees. anisation81 Mana efnent School Committees are responsible for overseeing the educational business and financial management of each individual School within the broader stralegic outline provided by the Foundation Govemors. Any matters with implications for the Foundation andlor the other Schools are referred to the Education andlor Resources and Estates andlor Finance and Regulatory Committees as appropriate. School Committees are chaired by the Foundation Principal. The Safeguarding Committee is responsible for considering all matters pertaining to safeguarding and child protection, including historic cases, and also the safeguarding responsibilities as sel aut by the Charity Commission. It has the power to recommend any decisions as it feels are necessary to fulfil its responsibility. The Education Comrnitteg is responsible for considering all matters pertaining to the educational side of the Foundation's business and has the power to make any decisiolls as it feels are necessary to fuffil ils responsibilities. The Committee is also responsible for liaising with the Resources Committee and the Finance and Regulatory Committee in ensuring robust and collective governance is delivered. The Resources and Estates Committee is responsible for ensuring the effective delivery of the operalional and capital resources required for educaliDnal and business activities. including oversight of the central Estates and Operations functlDn. It has the power to make any decisions as il feels are necessary to fuwil ils responsibilities. The Committee is also responsible for liaising with the Finance and Regulatory Committee in ensuring that robust and collective governance is delivered. The principal purpose ofthe Finance and Rggulatory Committee is lo advise and provide recommendations to the full Board of Foundation Governors on finance and regulatory mallers. It has éelegaled powers to act on behalf of the Fc)undation Governors in financial matters should the need arise. It can also make any decisions necessary to ensure compliance wilh currenl regulation and legislation. .The Appointments Committee is responsible for discussing and recommending to the full Board of Foulldalion Governors the appoir7tmenl of Governors and the Foundation Principal. The Foundation Principal is responsible, with appropriate support and oversight from Governors, for appointing the Heads. the Foundation Bursar and such other employees as are deemed necessary or expedient from lime to time. The Appointments Committee meets termly and consists of the Chair and Vice-chair of the Foundation. Chairs of the four Slrate9ic Committees and other Governors. Page 5 STRATEGIC REPORT FOR THE yE4RE￿,DED 31 AUGUST 2023 Remuneration Remuneration is set by the Board, with the policy objective of providing appropriate incentives to encourage enhanced performance and of rewarding fairly and responsibly individual contributions lo the Foundation's SLJccess. The appropriateness and relevan￿ of the remuneration policy is reviewed annually. including references to comparisons with other independent schools to ensLJre that the Foundation remains sensitive lo the broader issues of pay and employment conditions elsewhere. Delivery of the Foundation's charitable vision and purpose is primarily dependent on our key management personnel and staff costs are the largest single element of our charitable expenditure. Em lo ment Polic The Foundation is an equal opportunities employer, which treats all prospective and existing staff without favour. The Foundation is fully committed to providing the opportunity for people with disabilities to be employed whenever suitable work is available and to be able to fulf￿1 their career potenlial. Consultation with employees, or their representatives, has continued al all levels with the aim of taking the views of employees into account when decisions are made which are likely lo affect their interests. Communication with employees continues through normal management channels in a variety of methods to inform staff of current issues. Grou Structure and Relationshi The Company has a wholly owned subsidiary, WapNick Schools Enterprises Limited IWSELI, which carries out a number of trading activities to generate funds for the schools. WSEL aims to relain a small surplus each year so as lo build up working capital, but thereafter any surplus rèmaining Is gift-aided back lo the main Charity. Governor Recruitment Induction and Trainin Nominated Governors are selected by their respective Nominating Bodies (see page 21 but musl then be approved by th8 Governing Body. Co-opted Govemors are selected having regard to the particular skills required on the Governing Body at the time of appointment. All Governors follow an induction programme on appointment including meetings with the Foundation Principal. School Heads, Foundation Bursar and relevant Chairs. All Governors are encouraged lo attend extemal training courses to complement internal training provided. As standard, all Governors re￿1ve annual Child Protection and Safeguarding training. Objects, Aims, Objectives and Actlvltles Charitabl8 Ob'ecls The Objects of the Charity are set out in the Articles of Association and are llo advance education by carrying on in or near Warwick day and boarding schools for boys and girls" Within these Objects, the Charity and the Trust have various permanent endowments and unendowed trust fLtnds held forspecial purposes in connection with the development of the Schools. facilities and for scholarships, bursaries, prizes, and other educational purposes. Page 6 STRATEGIC IiEPORT FOR TEIE YEAR ETr4 DED 31 AUGUST 2023 Str te l Achieve the Year's Ob'eclives and ort Lon Term Goals Warwick Independent Schools Foundation is a leading educational charity in the Midlands, providing educats'on lo over 2,800 pupils from ages 3 10 18. Our fundamental aim is lo enable each individual pupil to achieve personal fulfilment and success, and we seek lo develop intelligent. responsible, resilient and compassionate young people of character lo succeed in a changing world. Our vision is lo create a world-class educational eslablishmenl based in the heart of Warwick, able lo contribute lo our community and society. The long-term strategic aims and priorities remain in place, as follows, with our core valLJes driving our priortties.. StralegiG Aims.- To oversee and develop outstanding interdependent schools, each with ils own unique cha@cter and ethos, as part of one supportive community. To deliver the 'best of both worlds, in education through single-sex teaching and learning alongside appropriately ifFtegrated eXt￿-cuffIcuI8r activitigs and social development_ To provide an equal opportunity for all pupils to develop their full potential through outstarpding facilities and resources across the Foundation. To promote social and cultural diversity by f8cilifaling access lo t81entedpupils from all backgrounds through the pmvision of means-tested bursaries and scholarships. To create an environment in which inspirational education can develop and gmw. To fulure proof the Foundation educational model against future change through the developm8nt of a wortd class educational campus. CO￿ Values.. Inspirational teaching inside and outside the classroom. A caring environment in which everyone can feel saf&, nurtured and valued as an individual. Academic excellence logefh8r with breadth of opportunity. Clos8 links to parents, former pupils and the wider community. Traditional values of respect. tolerance and integrity. A forward-looking Foundation which 'seeks for higher things,. Core to successful delivery of these objectives is a number of overarching strategies. Strategic application of estates master planning is complemented by robust strategic financial planning In the form of a regularly updated ten-year plan. incorporating sound arrangements for bursary funding. Furthermore, Governors are ever mindful of the challenges of both providing the outstanding education offered and fee affordability, thereby ensuring acces5ibi5ity lo the Schools for the maximum possible number of pupils. A clear pricing strategy has been adopted lo achieve this delicate balance. This Is further aided by termly consideration of risks and opportunities. Last, but probably most importantly given the importance of staff to our organisational success, focussed HR strategies are being rolled out lo ensure the efnployment and development of firstx<2024 and signed on ils bèhalf by.. Approved ylh DIRECTOR SALLLI Aa i i (print namel DIRECTOR (print name) The notes on pages 32 to 55 forTn part of these accounts. Pa(Te 30 CONIPLNY N75￿1B&￿' 042j 305 cO￿'soLIDATED CASH FLOW STATE,NIEvr FOR THE I"EAR E.NDED 31 ALTGUST 2023 2023 2022 £'ooo £'ooo E'ooo CASH FLOWS FROM OPERATING ACTIVITIES 3,094 4.430 CASH FLOWS FROM INVESTING ACTIVITIES: Investment income & bank interesl Purchase of propety, plant and equipment Proceeds from sale of tangible fixed assets Change in fixed asset accrual Proceeds from sale of investment property Purchase of investments Proceeds from sale of inveslrnents Incfease in bank deposits NET CASH USED IN INVESTING ACTIVITIES 564 -2.230 477 -1,190 35 88 -2,155 2,055 -207 -448 526 -72 -616 -1,929 CASH FLOWS FROM FINANCING ACTIVITIES.. Other interest paid Loan repayments NET CASH USED IN FINANCING ACTIVITIES -559 -1,333 -615 -1,892 -675 CHANGE IN CASH & CASH EQUIVALENTS IN THE REPORTING PERIOD 23 -727 3,199 CASH & CASH EQUIVALENTS AT TblE BEGINNING OF THE REPORTING PERIOD 22 7.091 3.892 CASH IN HAND NOTICE DEPOSITS CASH & CASH EQUIVALENTS AT THE END OF THE REPORTING PERIOD 6,364 7,091 22 6,364 7,097 Note.. Charity Law requires separate administration of the cash flow of endowed and olher restricted funds of the Charity. This constraint has not adversely affected Group cash flows as slated above. The notes on page 53 form part of these accounts. Page 31 NOTES TO THE Accour(rs FOR THE YEAR ENDED 31 AUGUST 2023 Statement of Accounting Policies (a) Chari Slalus Warwick Independent Schools Foundation is a Charitable Company limited by guarantee (registered number 042523051, which is registered in England & Wales. Its Charity fegislration number is 1088057. The registered office and principal place of business is Warwick School, Myton Road, Warwick, CV34 6PP. Its principal activity is the provision of day and boarding schooling. O)) Basis of Accountin The financial slalemenls have been prepared under the historical cost convention with ihe exception of investments which are included at rviarkel value. The financial slalemenls have been prepared in accordari with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021, the Companies Act 2006 and the State￿ent of Recommended Practice ISORP 20151 applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021- effective 1 January 2019. The dale of transition lo FRS 102 was 1 September 2014. Watwick Independent Schools Foundation meets the definition of a public benefit entity under FRS 102. The functional currency of the Charity is considered lo be GBP because that is the currency of the primary economic environment in which the Charity operates. The accounts present the consolidated slalemenl of financial acts'vities ISOFAI and the Charity consolidated balance sheets comprising the consolidation of the Charity and the Company and ils wholly owned subsidiary, Warwick Schoo15 Enterprises Limited (Company no.. 036175921. The results of the subsidiary are consolidated on a line by line basis. The Charity became the Corporate TNslee of the Trust on 29 August 2001 and the accounts, therefore, include the Trust as a subsidiary Charity for the accounting period commencing I September 2001. Under the Charity Commission Scheme of 29 August 2001 all trust funds other than the Trust's permanent endowment of the Schools land were transferred lo the new Charity known as Warwick Independent SchooEs Foundation, as propety of the Company, and the Trust itself was made a subsidiary Charity of the Company as its Corporate Trustee. No separat8 SOFA has been presented for th9 Charity alon8 as pgrmittgd by section 408 of Ihg Companies Act 2006 and paragraph 397 of the SORP. The Charity has taken advantage of the exernplion available lo a qualifying entity in FRS 102 from the requirement to present a charity only Cash Flow Ststemenl with the consolidated financial slalemenls. (c) Goin Concern Having reviewed the funding facilities available to the Schools together with the expected ongoing demand lor places and the Schools future projected cash flows, the Governors have a reasonable expectation that the Schools have adequate resources lo continue ils activities for the foreseeable future and consider that there were no material uncertainties over the Charity's financial viability. Accordingly, they continue lo adopt the going concern basis in preparing the financial statements as outlined in the Statement of Directors, Responsibilitres on page 24. Page 32 NOTES TO THE Accouyfs FOR THE YLIR EN'DED 31 AUGUST 2023 (d) Basis of Consolidation The financial ststements consolidate the accounts of Warwick Independent Schools Foundation and ils subsidiary, Warwick Schools Enterprises kn'mited. The surplus for the year deaA with in the accounts of the Charity was £1.942,38812021122: £12,845,639). (e) Charitable Income and Donations Voluntary incoming resources Including legacies are accounted for as and when enliugment arises. the amount can be reliability quantified and the economic benefit lo the Charity is Considered probable. Charitable income and donations received lor the general purposes ol the Charity ar8 credited to "other unrestricted funds. lo distinguish them from direct school income. Grants given for specific purposes are Irealed as income in the year of receipt and are taken lo 'reslricled funds" Unspent reslricled income Is included under restriGled funds as it is fullycommitled. Income received from the charities of The King Henry Vll l Endowed Trust, Vvarwick and The Chanty of Sir Thorllas While, Warwick is accounted for on a receivable basis. Government grants are credited to the consolidated statement of financial activities as the related expenditure is incurred. Investment income is recognised when re￿1Vable. (fi Fees and Similar Income Fees receivable and charges lor services and use of premises are accounted lor in the year in which Ihe service is provided. Fees receivable include conlribulions received from Restricted Funds for Bursaries and Awards. Trading income is exclusive of Value Added Tax and trade discounts. (g) Resour￿5 Ex Resources expended are accounted for on an accruals basis. Certain expenditure Is apportioned lo cost categories based on the eslimaled amount attributable lo that activity in the year. Teaching, weKare and premises costs are derived from activities classified in cost departments that are directly for the pupils, benefit. Support costs consist of the administration costs of rLJnning the Schools, Marketing & Recruilmenl costs for the Schools and expenditure in relation lo school expeditions. Govemance costs cornprise the costs of rLJnning the CharTty (including strategic planning for its future development). external audit, legal advice lor the Governors and all cosls of complying with statutory requirements. Liabilities are recogniseol when they can be measured reliably and there is a legal 01 constructive obligation committing the Charity to the expenditure. ended Termination payments afe accounted for as soon as the Schools are aware of the obligations to rnake payments. eratin Leases Rentals payable are charged on a lime basis over the le8se temi, even rf the payments are not made on such a L>asis. Benefits received and receivable as an incentive lo sign an operating lease are similarty spread on a slraigh14ine basis over the lease le￿. Page 33 NOTES TO THE ACCOUNfs FOR THE YEAR EliDED 31 AUGUST 2023 (i) Pension Schemes The Schools participate in a multi-ernployer pension scheme. the Government's Teachers Pension Defined Bengfits Scheme ITPSI, for Ihe1r leaching staff. The pension liability is the responsibility of the Teachers, Pension Scheme. As a r95uII, il is not possibl8 to identify the assets and liabili11gs of the schem8 that are allributable to the Schools. Accordingly. under FRS 102 the scheme is accounted for as rf it were a d8ff ned contributions scheme. The Charity also participates in a MU￿￿mplOYer pension scheme. the Local Government Pension Scheme ILGPSI, for Ils non-leaching staff. which is administered by VVarwi¢kshire County Council. The Charity is able to Identify ils share of the underlying assets and liabilities in the scheme on a consistent and reasonable basis. Accordingly. the scheme is Irealed as a defined benefit scheme under FRS 102. The scheme is being accounted for under FRS 102, with the annually calculated notional surplus or deficit on the funding of the Scheme shown in the accounts as a designated ftjnd enlilled "Pensions Reserve. which is deducted from Unreslricled Funds in the balance sheet. The Charity aulo-enrols employees into the National Employment Savings Trust INESTI. an independenuy njn defined contribution scheme. The Kingsley School also conlribules lo defined contribution pension schemes for non-teaching staff. The assets of the schemes are held separately from those of the School in independently administered funds. Payments lo the scheme are chaiged as an expense as they fall due. Pension costs form part of stsff costs and are allocated directly across activib.es and between restricted and unrestricted fvjnds on the basis of lime spent. (i} School Buildin sandE ui ment Capitalisution and Replacement The original lancl and buildings endowed to the Schoo15 together with all subsequent additions recorded by the Trust were professionally re-valued as at 31 August 2001. On 1 September 2001, all land and buildings. other than the original endowed propety. were transferred lo the Charity. In these accounts these transfers are treated as being al cost to the Charity. The Charity is also responsible for keeping the original building in fil and useftjl condition and these costs are written off as incurred. Buildings improvements and extensions and furniture and equipment costing more than £5.000 individually are capitslised and carried in the balance sheet al historical cost. The fixed assets brought in from The Kingsley Schc>ol as a gift, were t)roughl in al fair value. Depreciation Depreciation is calculated on a straight-line basis to write off the cost, less estimated residual value of fixed assets. over their estimated useful economi¢ lives. These rates are currently as follows." Buildings Sports con5truckn.ons Furniture, flxtures & equipment Motor vehicles 20 - 50 years 20 - 25 years 3-10years 4 years No dep￿CIall0n is charged on freehold land or assets under the course of conslruclion. Depreciation is charged when asse15 become in use. Page.34 NOTES TO THE AccouKfs FOR THE ITAR ENDED 31 AUGUST 2023 (k} Investments Invèstments. which includo listed investments and investment propertses, are stsled at market value. Investment properties are valved every five years and revi9wed for impairmgnl annually. Unit trust investments are slated at mid-markel price. Realised gains and losses on investments. calculated as the drfference be￿een the sale proceeds and their mark81 value at the start of the year. or subsequent cost. are credited or charged lo the SOFA in the year of gain or loss. Unrealised gains and losses represents.ng the movement in market values during the year are credited or charged lo the SOFA in the year of gain or loss. O) Slock Stocks are valued al the lower ol cost and nel realisable value after making due allowance lor obsolete and slow-moving stocks. uid Resources The Charity includes fixed term deposits of less than one year as liquid resourcgs. (n) Debtors Trade and other debtors are reeognised at the settlement amount aftor any trade discount offered. (o) Creditors Cfedilors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised al their settlement amount after allowing for any trade discounts due. (p) Financial Instruments Basic financial Instruments are initially measured al Irans3clion value and subsequendy measured al amortised Cost with the exception of investments which are held at market value. Financial assets held al amortised cost comprise cash al bank and in hand, together with all debtors other than prepayments. A specific provision is made for any debts for which recoverability is in doubl. Financial liabilities held al amortised cost comprise all creditors except social security and other taxes and fees received in advan￿. Derivalives. including interest rate swaps, are not basic financial instrument5. Derivatives are initial recognised al fair value on the dale a derivab've conlraGI is entered into and are subsequently re-measured at Iheir fair value. Changes in the fair value of derivatives are recognised in the Slalemenl of Financial AGlivilies within finance costs. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, Can￿lled or expires. (q) Fund Accountin Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objects of the Charity. Unrestricted funds are identified as e1ther Designated Funds or General Funds. Oesignaled Funds represent funds that the Trustees have sel aside for defined purposes. Certain elements of the Designated Bursary Funds are subject to feslrictions set out in the Memorandum and Articles of Association. Pa8e 35 NOTES TO THE Accouyfs FOR THE YEAR ENDED 31 AUGUST 2023 (q) Fund Accountin continued Each Designated Fund is disclosed separately in the notes lo the financial slalemenls. There is a commitment lo use these monies in future years. as designated. General Funds represent accumulated surplusesldeficit5 to dale, after transfers lo Designated Funds. Restricted Funds are funds subject to specific restricts'ons imposed by the donors. The Endowment Funds are permanent endowment funds, i.e.. the donors have stsled that the funds are lo be held as capitsl. nificanl Accountin Estimates and Jud emenls The Charity makes estimates and assumptions Conceming the future. The eslimales and assumptions that have a significant risk ol causing a material adjustment lo the carrying amounts ol assets and liabilibes within the next financial year a￿ discussed below. The present value of the Local Govemrnent Pension Scheme defined benefit liability depends on a number of factors Ih21 are detefmined on an 8cluarial basis using a variety of assumptions. The assumptions used in determining the nel cost lincomel for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 20. will impact the carrying amount of the pension liability. Furthermore, 8 roll forward approach which projects resulls from the lalesl full actuarial valuation performed al 31 March 2016 has been used by the actuary in valuing the pensions liebility al 31 August 2023. Any differences b¢￿een the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability. Fees Receivable 20 £'oDo 43,748 -1.228 -2.520 40,000 20￿2 É'ooo 41,475 -1,136 -2,473 31,926 Fees Less Staff Fee Remission Less Scholarships and Bursarie5 Other Income 2023 £'ooo 20•2 £'ooo Charltable Actlvltles Other educational charitable activities.. Entrance and registration fees Music luilion fees Holiday Action and Swim School Other 70 913 551 1,754 3,288 66 878 425 1.615 3.044 Other ancillary activities.. Insurance income Excursions Grant Income 70 436 1,485 4,773 3.495 Ptge 36 NOTF.S TO THE Accouyfs FOR THE YL4R ENDED 31 AUGUST 2023 Income from Subsidiary's Trading Activities The Charity owns the whole of the £1 ordinary share c8Pltal of Warwick Schools Enterprises Lirnited. The principal activity of the Company is that of letting the school facilities and the operation of a school clothing shop. The trading results for the year, extracted from the audited accounts, are summarised below.. 2023 £'ooo 439 -610 -171 2022 £'ooo 3g9 -608 -209 Turnover Operating costs Loss frofn continuing activities Covenanted donation gross Balan￿ carried forward -171 -209 Warwick Schools Enterprises Limited norrnally makes a gift aid donation of any surplus earned lo ils parent. Warwick Independent Schools Foundation. This amounted to £Nil (2021122.. £Nill lo the Charity durTng the year. 2023 £'ooo 325 -1,279 -954 20>2 £'ooo 533 -1,376 -783 Assets Liabilities Net liabilities The net liabilities of Warwick Schools Enterprises Limited at 31 August 2023 amoLinled lo £954,248 12022.. £782,951). Investment Income 2023 Restrktted £'ooo LTnrestricted £'ooo 'I'otal £'ooo Tntal £'ooo UK Fixed Interest UK Eouities Propety Fund Bank Interest Investment property 26 309 26 309 11 103 115 564 23 287 10 72 145 477 103 115 564 V38e 37 NOTES TO THE Accouwfs FOR THE YL4R DED 31 AUGUST 2023 Expendituro *0&3 £'oov 2032 £'voo Charitable expendrtura includes- Auditors remuneration For audit For audit of subsidiaries For other services Operating Leases payable For Motor Vehicles For Property Other Loss on sale of fixed assets Depreciation Bank Loan interest payable 46 165 34 15 20 2,758 559 144 34 75 2,707 675 Total staff costs comprised: Wages and salari&s Social security costs Pension conlribulions Compensation for loss of offi 24,739 2.333 22.435 2.737 4.2TO 99 28,935 80 31,736 Aggregate employee benèfits of key rnanagement personnel 1,502 1,373 Page 3fl NOIES TO THE ACCOUYTS FOR THE YE￿ ETr*DED 31 AUGUST 2023 6. Expenditure (continued) During the year there were lerminalion payments made which amounted lo £80.126 12021122.. £99.4681. There was £46,94112021122.' Nil) outstanding al the year end. The average number of the Charity's amployges during the year calculated on an average headcounl basis was 92012021122. 8741. 2023 427 493 920 2022 426 448 874 Teaching Support Neither the Governors nor persons connected with them re¢eived any remuneration or other benefits from the Schoc>ls Dr any connected organisalion. other than one Governor whose son is in receipt of a Scholarship. Travelling and course expenses amounting lo £11,85412021122.' £4,7981 were reimbursed lo six Governors 12021122. 41. The number of higher paid employees was as follows. all of whom are accruing benefiis under Defined Benefit Pension Schemes lolalling £522,22912021122'. £418.8581. 2022 £60.000 - £70,000 £70.000 - £80,000 £80.000 - £90,000 £90.000 - £100,000 £100,000 - £110,000 £110,000 - £120,000 £120,000 - £130.000 £130,000- £140,000 £140,000 - £150.000 £150.000 £160,000 £180,000- £190,000 £190,000- £200,000 £200,000 - £209,999 14 15 Page 39 NOTES TO THE ACCOUNTS FOR THE YE4R ENDED 31 AUGUST 2023 Analysis of Total Resources Expended 2023 Other Depi*Liation £'ooo £'ooo Staff Costs £'ooo Total £'ooo Total £'ooo Costs of Generating Funds-. Other Activities Cost of Development Office Total for Charity Trading Costs of the Subsidiary Total for Group 35 66 101 294 395 11 46 283 329 526 855 23 257 217 217 182 399 280 528 808 50 61 Charitable Activities.. Teaching Welfare Premises Support Costs and Governance BanklPension Interest & Other Financing Prizes & Other Awards 24,258 2,113 ,2,240 2,786 3,292 1,694 3.128 3,861 27 27,550 3,807 8.115 6,647 27 25. 651 3,036 6. 896 5,117 -1,576 2,747 Sub-Total Total Resources expended Group Charity 31.397 31,796 31,614 12,007 12,402 12.108 2,747 2,808 2,758 46,151 47,006 46,480 39,127 39,935 39,407 Included in 8anklPension Inl8resl & Other Financing is £522,11512021122.- £2.473,2101 for the dgcre8se in fair value of the liability from the interest rate swap. Governance Costs included in support costs 202.8 £'ooo 2022 £'ooo 46 739 185 Auditors remuneration Liability insurance 126 180 Page 40 NOTES TO THE AccouKfs FOR THE YL4R ETr¥DED 31 AUGUST 2023 Tangible Fixed Assets Land & Tr'urnitllre. Buildings IotQT FehiclL Xssel.s IR Course of Construrtion £'oDo Total Equipment £'ooo £'ooo £'ooo £'ooo COST Al 1 September 2022 Additions Disposa15 Transfer Al 31 August 2023 71 30 99,166 2,219 -718 91.739 35 -36 7,156 1,254 200 41 15 7,784 -17 84 92,640 159 100.667 DEPRECIATION At 1 September 2022 Charge for year On Disposals Al 31 August 2023 17,505 1,919 4,944 820 413 5.151 175 19 41 153 22,624 2,758 54 24,728 19,424 NET BOOK VALUES Al 31 August 2023 Al 31 August 2022 73,216 74,234 2.633 2,212 84 71 75,939 76.542 25 Charity Total £'ooo Subsidiary Total £'ooo Group Tutal L'OOO COST Al 1 September 2022 Additions Disposals At 31 August 2023 99,166 2.219 -718 100,667 624 99.790 2,230 -718 101,302 635 DEPRECIATION Al 1 September 2022 Charge lor year On Disposa At 31 August 2023 22.624 2,758 54 24.728 421 50 23,045 2.808 -654 25,199 471 NET BOQKVALUES Al 31 August 2023 Al 31 August 2022 75,939 76,542 164 203 76.103 76, 745 Included in the net book value of land and buildings is £362,917 (2022.. £375,917) in respect of long leasehold buildings. The remainder Is freehold. Page41 NOTES TO THE ACCOUNTS FOR THE YEAR El*DED 31 AUGUST 2023 Investments Unrestricted Designated £'ooo Refjtricted Funds £'ooo T(rtal 2023 £'ooo Total 2022 £'ooo Group.. Balance al 1 September 2022 Additions Disposals at opening market valu Movements in cash deposils Rgv81ualion Ilossesl I gains Nel unrealised losses Balance al 31 August 2023 19,019 2.155 -2,055 207 -108 -399 18.819 23 19,042 2.155 -2.055 207 -108 -399 18.842 19.471 448 -526 72 479 -908 19.042 23 Securities Listed on the Stock Exchange Property Cash deposits 13,558 4,351 910 18.819 23 13.581 4.351 910 18.842 13,880 4.459 703 19,042 23 Listed Securities comprise= UK Fixed Intgrest UK Equities Property Fund S & W Investment Funds 911 11,828 595 224 13,558 911 11.851 595 224 13,581 589 12,719 793 379 13,880 23 23 Charity- as above Investment in subsidiary company {see note 41. Reconclllatlon of openlng and closlng Investments by class Seciirities Listed on Stock L¥change £'ooo Pr(Jperty Cash Deposit5 Total £'ooo £'ooo £'ooo Group: Balan￿ at 1 September 2022 Additions Disposals RevalLJalion Movement in cash deposits Nel unrealised losses Balance al 31 August 2023 13,880 2,155 -2,055 4,459 703 19.042 2.155 -2,055 -108 20[ -399 18.842 -108 207 -399 13,581 4,351 910 The Kingsby School investments were donated lo the group on the 10 March 2021 as part of the merger of The Kingsley School into the Foundation. The valuation on transfer of these investments lolalled £1,317.D69 at the 10 March 2021. These investments include two properties totalling £1,280.000 on valuation in March 2021 by Wareing and Company. The other investment properties held were valued as at the 31° August 2021 by Margetts Chartered Surveyors al £2.7m. The investment properties were reviewed as al 31 St August 2023 using a market price indicator resulting in a loss of £108k. All investments are held to provide a return. and all are held in the UK. Page 42 NOTES TO THE AccouNfs FOR THE ITAR ENDED 31 AUGUST 2023 io. Slocks Group 2023 £'oou Charity 2023 £'ooo 2022 £'oou 2022 £'ooo Goods for ￿sale and consumables Stocks recognised as an expense in the Statement of Financial Activities during the year were £252,413 {2022. £233,147). Debtors Group 2023 £'ooo Lharit) 2023 £'ooo 391 35 36 1,798 1,201 3,461 2022 £'ooo 373 226 75 7.633 2022 £'ooo School fees Trade debtors Other debtors Prepayments and accrued income Amount due from subsidiary undertaking 391 55 36 1,862 313 70 15 1,577 1,180 3.155 2,344 2,187 Creditors Group 2023 £'ooo Charity 2022 2029 £'ooo £'ooo Due within one year.. Fees received in advanGe and deposits Trade credilars Other creditors Taxation and social security Accruals and deferred income Bank loan 4,960 1,669 340 602 1.844 1,333 10,748 4.801 1, 137 408 560 1.403 1,333 9,642 4,960 1,655 276 602 1,844 1,333 10.670 4,801 1,082 327 560 1.403 1.333 9,506 Due after one year-. Bank loan Oerivative financial instruments 17.334 -1,954 15,380 18,667 -1,432 17,235 17,334 -1,954 15,380 18,667 -1,432 17,235 A 102n for £20m was taken out with HSBC lo support delivery of Project One Campus in August 2017. An interest rale swap arrangement was entered into lo pay a fixed rale 01301. 11.60/0 interest rale and 1.4Yo margin) over £20m of the oulslanding loan balance. The date of termination of the agreement is August 2027. The libor reference in the loan transferred lo Sonia with effect from Febnjary 2022. HSBC has security over the Shares held by the Foundation through a Mgmorandurn of Deposit made between both parties. dated 14 Seplernber 2017. Page 43 NOTES TO THE Accouprfs FOR THE YEAR ENDED 31 AUGUST 2023 2. Creditors (continued) The Bank Loan falls due as follows.. 2023 £'ooo 1,333 5,333 12,001 18,667 £'ooo 1,333 5,333 13,334 20.000 Within one year Between bNO and five years Over five years Deferred In¢omo- Group É'ooo 592 -592 895 895 Balance al 1 September 2022 Released in the year Deferred in current perio 8alanTr al 31 August 2023 Income has been deferred where cash has been received before the year end bul the event (mainly school Iripsl lakes place In the next f1nancial year. Financial Instruments- Group 2023 £'ooo 1.072 25,205 -26.571 1,954 1,660 2022 £'ooo 919 26, 133 -27. 157 1,432 7,327 Financial assets rneasured at amortised cosl Financial assels measured al fair value Financial liabilities measured al amortised cost Financial liabilities rneasured at fair value Net financial asselsllliabililieslmeasured at amortised cost 2023 2022 £'ooo Total investment Iossos for financial assets measured al fair value through income and expenditure Impairment Ilossesllgains Dn financial assets measured at amortised cost -527 -429 -167 93 Included in nel financial asselsllliabililiesl meaSU￿d 81 amortised cost are school fee debtors, lfftde debtors. other debtors and accrued income. Included in financial assets measured al fair value ar8 cash 81 bank and in hand and inveslmenls. Included in financial liabilities measured al amortised cost are bank loans, lees received in advance, fee deposits, trade creditors. othef creditors and accruaLs. Included in financial liabilities measured al fair value are derivative financial inslnJments linteresl fftle swaps). The group has entered into an interest rale swap lo receive interest al SONIA and pay Interest at a fixed 1.6Yo. The swap is based on a principal amount of £20m and matures in 2027 on the same dale as the loans. The fair value of the interest rale swap 15 -£1.953,83412022." 41.431,718}. Impairment of trade debtors during the year lotalled £544.78812022'. £505,442). Page 44 NOTES TO THE Accouyfs FOR THE YEAR EN'DED 31 AUGUST 2023 Net Assets of the Funds of the Charity The nel assets a￿ held for the various funds as lollows.. Fixed Investments Assets Net Current s'scts £'ooo Long Terrn Liabilities Pension sllrplus Total £'ooo £'ooo £'ooo £'oou Endowed funds Reslricled tunds Unreslricled funds Bursary lunds Other 2.f)05 703 23 2,708 3,120 3,097 18,116 18,116 60,819 84,763 -954 83,809 73,935 75,940 163 76,103 4,012 -915 -1,117 -2,032 -15,380 -15,380 6,276 6,276 Charity 18,842 Subsidiary ReseThes Group 18.842 -15,380 6.276 (a) Endowed Funds.. Movements in the Year Balance at 1 8cpt 2022 Income Expendi￿re Transfers & I1]￿estment Gains E'ooo Balance at 31.4ug 2023 £'ooo £'ooo £'ooo £'ooo Exhibitions & prizes fund 202 202 Legacy funds Fixed assets fund 501 501 2.032 -27 2.005 2,735 -27 2,708 Legacy. Exhibits'ons & Prizes - These Funds represent the capital value of amounts originally donated for the purpose of generating income tts be distributed as prizes. Fixed Assets The Endowed funds represent the value of land and buildings originally endowed to the Schools of the Charity. Page 45 NOTES TO THE Accouyfs FOR THE I￿AR ENDED 31 AUGUST 2023 Is. Net Assets of the Funds of the Charity {continued) (b) Restricted Funds.. Movements in the Year Balance at Inco￿e Expenditure 1 sept 4022 Investment Balance al Gainl 31 Aug 404.1 £'ooo E'ooo £'ooo £'aoo E'ooo Donations from Friends of Warwick School 15 10 Doralions from WPSA Dollations from KHAPS 47 47 Donations from Fnends of Kingsley Sundry 14 22 Machen Scholarships The Massie Scholarship 12 Donations for Sports Prol8cts 10 Donations lor WaDwick Food Technok)gy 80 -80 Donations lor Capital Building Project Borough Bursary Fund 123 35 158 1.415 1.115 -550 1.980 Warwick Scholarship Trust 31 31 Income from Legacy Funds & Prizes 825 99 839 2,440 1.402 -722 3.120 The Borougtt Bursary Fund relates lo the funds received from fv40 char￿table bodies, which are used primarily lo provide bursaries for pupils from the Old Borough of Warwick who would otherwise be unable lo attend the school, with the remainder used to support activilies for Warwick-based schools and other community aclivilies. The Machen Scholarships and The Massie Scholarship income relates lo donations from these linked charities ol The Kingsley School. Pase 46 NOTES TO THE AccouKfs FOR THE YLIR ENDED 31 AUGUST 2023 Net Assets of Ihe Funds of the Charity Icontinuedl (c) Unrestricted FLJnds Balance IneoTne Ewendiknre TTansfcTs ITivestEnent Balance at Gainl(Loss) 31.Iu8 i Sept 2022 £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo Designated Fund5 Bursary Fund Mary Hall Leg8cy Other Legacy Fixed Assets Repairs & Msint8nanc8 FLJnd 15.538 477 130 74.777 394 365 -1,074 827 -399 15,257 477 130 74,199 408 -578 24 -10 Unr•strlct8d Funds Free Reserves Charity Subsidiary Trading Funds -20,881 70,435 -783 69,652 1.937 3.841 1,432 76.862 44,948 45.337 439 45,776 45.497 46.581 -528 47,107 -165 -21.595 68.876 -954 67.922 1.829 6,276 1.954 77.981 -399 -399 -108 2,107 R8valuation Reserve Pension R8serv8 Surplus Derivative Reserve Group 328 522 46,257 45.776 1,600 Bursary Funds - These funds enable the Governors lo provide such number of free and assisted places in the Schools of the Charity as they shall determine, for the benefit of pupils who are in need of financial assistance. A number of unrestricted legacies were received during the year. There were transfers during the year from the Schools, free reserves into the Bursary Fund of £826,930. Governors have designated these funds lo be used for means-tesled Bursaries. Fixed Assets- These represent the nel book valLJe Dfthe unendowed assets available for use by the Charity. excluding assets funded out of Bursary Funds. The fixed asset transfer relates lo a donation from The School Playing Field. a linked charity of The Kingsley School. Repairs and Maintenance Fund - This fund is being accumulated from nel rental incoffle lo finance future repairs and maintènance. Net Assets of The Funds of the Charit asat37Au ust 2022 Fixed Investments Assets £'ooo Net Current Long Term Assets LTrabilities £'ooo £'ooo Pension Surplus £'ooo Total £'ooo 703 23 £'ooo 2.735 2.440 Endowed ftsnds Restricted ftsnds UnreslriGSed funds Butsary funds Other Charity Subsirliary Reserves Group 2.032 2.417 18.316 78.316 59,329 82.820 -783 82,037 74.570 76.542 203 76, 745 -1.187 63 -986 -356 -17.235 -17,235 3.841 3,841 19.042 19,042 -17,235 3,841 Pabe 47 NOTES TO THE ACCOUYTS FOR THE YEAR ENDED 31 AUGUST 2023 Is. Net Assets of the Funds of the Charity {continued} Endow&d Funds.. Movefflents in the Year475 t7131 Au ust 2022 BalanLY at I Sepi 2021 £'ooo 202 503 2,059 2. 762 Income Expenditure BalanLr ut 31 Aug 2022 £'ooo 202 501 2,032 2. 735 £'ooo £'ooo Exhibitions & pnzes fund Legacy fijnds FNxed assets fund -27 -27 Restricted Funds." Movem in th Ye8r8S8131 A 22 Ralancc at I Sept 2021 £'ooo Income F.xpenditurc ITIN'CStm¢nt ilalanee at aiiil(L055) 31 .4ug 2022 £'ooo £'ooo £'ooo £'ooo Donations from Friends of Warwick Sch¢￿1 Donations from WPSA Donations from KHAPS Sundry Machen Scholarships Thg Massi8 Scholarship Donations for Capital Building Project Borough Bursary Fund W8fwiGk SGholorship Trust Incoffle from Legacy Funds & Prizes 29 14 15 13 12 123 1.415 31 825 2,440 123 977 1.020 -522 893 1,997 -69 -6t2 1,056 Unr8slricl8d Funds as at 31 Au ust 2022 Balance at I Sept 2021 Incorning Resource$ Resources F.xpended Tran5fer5 InTr-e5tment Gain Balance 31 Aug 2022 £'ooo £'ooo £'uoo £'ooo £'ooo £'ooo 005Ignated Funds Bursary Furjd Mary Hall LEgacy Other Legacy Fixecl Assels Repai￿ & MaAntenanc8 fund 16,269 477 369 -983 790 -907 75,538 4T7 130 76.294 380 130 -1.517 74,777 394 22 unrestrfct￿ Funds Fw Rgsen/es Gharfty Subsidiary T@ding Funds -23.158 70.392 -573 47.507 47.898 399 -40.038 -41.J29 -528 808 -20.881 70,435 -783 69.652 1.937 3,84 1 1.432 81 -907 -81 69,819 1.458 -5,599 -1.041 42.397 41.557 -907 479 9.652 Revalualion Resen Pen510n Reserve Deficit -212 Deriv8tive Reserve 2,473 Group 64,637 42,297 -39,2g6 9,224 76,862 Page 48 NOTES TO THE AccouKfs FOR THE YL4R E￿WED 3 1 AUGUST 2023 Capital Commitments The￿ We￿ no capiial commitments for the year ended 31 August 202312022.. Nil) Operating Lease Commitments At 31 August 2023, the Group had the following future minimum lease payments under non-cancellabl8 operating leases. Group & Charity 2023 £'ooo 2022 £'ooo Operating leases which expire.. Within one year Within two to five years After five years 119 198 45 28 317 73 18. Taxatlon No corptsralion lax has been provided for in these accounts because Incorlle of the Charity is within the exemptions granted by Section 505 of the Income afjd Coiporation Taxes Act 1988. The Charity has borne VAT on ils expenditure where appropriate. The trading subsidiary provides for ¢orporalion tsx as applicable, nil Ihis year. 11 is also registered for VAT. Principal Subsidiarie5 Companv Trlame Prineipal Place of Business Percentage Share- holding Description Principal ActiTrryty WaNi¢k Schools Enterprises Limited IWSELI Myton Road, Warwick CV34 6PP 100.1 £1 Ordinary share Capital Letting of school (Registered number.. 03617592. incorpDratecl in England & Wales) The Charity is also the Corporate Trustee of the Warwick Schools Foundation Trust (Charity registration number.. 5287751. These financial slalements include the results of the above entibes. During the year the Charity charged £162,960 to WSEL for the provision ol staff and adminislralive services 12021122.. £132.6101. The balance owed lo the Gharity al 31 August 2023 was £1.201.171 12022.. £1,179,654). Inlercompany transactions of a management fee £73.830 12021122.. £68.8971. 8 licence fee £10,000 12021122.. £10,000) and interest on the inlercompany loan £852 12021122.. £1.0031 are eliminated on consolidation. Page 49 NOTES TO THE ACCOUTrtrs FOR THE YL4R ENDED 31 AUGUST 2023 20. Pension Schemes Teachers. Pension Scheme The Foundation participates in the Teachers. Pension Scheme I'lhe TPS'I for its leaching staff. The pension charge for the year includes contributions payable lo the TPS of £3.710.788 12021122." £3.420.1961 and al the year-end Ihore wefe no conlribulions12021122." no conlribulionsl accrued bul unpaid in respgct of this s¢heme. The TPS is an unfunded mutti-employer defined benefits pension scheme govemed by The Teachers. Pensions Regulations 2010 las amendedl and The Teachers. Pension Scheme ReguSations 2014 las amended). Members contribute on a pay as you go" basis with contributions from members and the employer being credited lo the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. The employer contribukn'on ole is sel by the Secretary of State following scheme valuations undertaken by the Government Actuary's Department. The most recent actuarial valuation of the TPS was prepared as al 31 March 2020 and the Valuation Report, which was published in October 2023. Following the Mccloud judgemenl, (he remedy proposed that when benefits become payable, eligible members can select lo re￿1ve them from either the reformed or legacy schemes for the peNod 1 April 2015 10 31 March 2022. The actuarie5 have assumed that member5 are likely to choose the option that provides them with the greater benefits, and in preparing the 2020 valuation have valued the greater value, benefits for group5 of relevant members. The valuation confirned that the employer contribution rate for the TPS woul(l increase from 23.60/0 to 28.6Yo from 1 April 2024. Employers are also requifed lo pay a scheme administrakn'on levy of 0.080fi giving a lolal 8mployer contribution rale of 28.680/0. Local Government Pension Scheme Non-teaching members of s18ff, joining befo￿ October 2013 are enlilled lo belong lo the Warwickshire County Council Pension Fund ILGPSI. a multi-employer defined benefit scheme operated within the Local Government Pension Scheme, to which contributions are made by both employees and the employer. The basis of contribution to the Scheme is calculaled according to the advice of the Scheme actuary. The cost ol providing such pensions is charged on a systematic basis over the average remaining service life of the members. The last full actuarial v8luab.on of the Scheme was carried out on the effective dale of 31 March 2010 when the ass91s of the Scheme were not deemed sufficient to cover ils accrued liabilities. The employers have according￿ amended their rate of contribution to the scheme in line with advice from the actuary. The valuation method adopted was the Projected Unil Actuarial Cost Method and il was assumed that, In relation lo security ol both accrued and prole¢led rights. the Scheme WOLJld continue. The method of Calculating the discount rale al 31 August 2018 is based on the Consumer Price Index IGPII. In accordance with FRS 102 the pension valuation has been updated by the qualified a¢luary, Hymans Robertson LLP. The scheme's assets and liabilitie5 relating lo Warwick Independent Schools Foundation were found to be as follows.. QOQ>2 £'ooo 23,408 -17,132 6,276 É'ooo 22, 786 -18, 945 3,847 Total market value of assets Present valkje of scheme liabilities Surplus in scheme Page JO NOTES TO THE Accouyfs FOR THE YEAR ENDED 31 AUGUST 2023 20. Pension Schemes Icontinuedl The main financial assum dale were as follows tions made b the actua at the be innin of the ear and al the balarn￿ sheet 2023 2022 Inflation Rale of in¢￿a$0 in salaries Rale of increase for pensions Discount rale for liabilities Life ex eclations on retirements a e65 2023 Years 2022 Male currently age 45 Fetnale Gurienlly age 45 Male curreatly age 65 Female currently age 65 22.5 25.8 21.2 24.2 22.7 25.9 24.1 Fair valug of assets and ex ected rale of return 31 Aug 2023 Fair Value Expeeted Rate ofAssets of Returii £'ooo 13,577 5,852 3,745 234 23,408 31 Aug 2022 Fair Value Expected Rate of Asset of Return £'ooo 73,672 6, 152 2,506 456 22,786 Equities Government bonds Propety CashlLiquidity Total The overall expected rale of return on the scheme assets is determined based on market expectations al the beginning of the year, lor investment relums over the entire life uf the related obligation. The assumption used is the average of the above assumptions appropriate to the individual asset classes weighted by the proportion of the assets in the particular asset class. 2023 £'ooo -205 £'ooo -998 The actual felurn on the scheme assets in the year Pa&e.%i NOTES TO THE Accouyfs FOR THE YEAR ENDED 31 AUGUST 2023 Pension Schemes (continued) Chan es in the fair value of Ihe scheme assets are as follows.. 2023 £'ooo 22,786 -244 966 2022 £'ooo 23,780 -1.390 392 Opening value of scheme assets Return on assets less interest Net inlerost incorne on plan assets Contributions by employer Contributions by employees Conlribulions in resp&cl of unfunded benefits 447 68 488 Benefits paid -617 23,408 -557 22, 786 Chan es in the resent value of the scheme liabilities are as follows.. 2023 £'ooo 18.945 288 2092 £'ooo 29.379 591 18 485 71 -17.042 -557 18,945 Opening liabilities Current service cost Past service cost Interest cost Contributions by employees Actuarial gainslllossesl Benefits paid 799 68 -2,351 -617 17.132 The cha e lo the Statement of Financial Activities over the financial ear com rised.. 2023 £'oao 2022 £'()00 Schools and grant making Current service cost Past service cost Interest income on plan assets Interest on pension scheme liabilities Total charge lo expenditure in the SOFA 288 591 18 -392 485 702 -966 799 121 The actuarial ains and losses shown in the Statement of Financial Activities com rised.. 2023 £'ooo -1,181 -953 147 4,094 2,107 2022 £'ooo -1,390 -46 94 10,994 9,652 Return on assets less interest Experience gains and losses on scheme liabilities Changes in demographic assumptions Changes in financial assumptions Total arnounl recognised in the SOFA Pase 52 NOTES TO THE AccouTrrrs FOR THE Y￿R EliDED 31 AUGUST 2023 20. Pension Schemes (continued) Employers. contributions lor the year to 31 August 2023 were £446.50212021122.. £457,980) including deficit payments. The contributions until 31 March 2023 were 19.501.. The best estimate of employer contributions for the coming year lo 31 August 2024 is £110,596. The scheme applies onty to members of staff employed by the Foundation before 31 October 2013 who signed up prior lo that dale. The scheme closed lo existing members on the 30 November 2023. The Kin sle School Pension Scheme Employer contributions for the year lo 31 August 2023 were £30.738 12021122.. £29.3301 for The Kingsley School defined contribution scheme. The scheme closed to existing members on the 30" NoveThber 2023. All other staff are aulo-enrollecl onlo the National Employment Savings Trust INESTI, an independently run defined conlributioll scheme Etnployers, contributions lo the NEST scheme lor the year lo 31 August 2023 were £400,94412021122.' £340,948). The NEST scheme closed lo members on the 30 November 2023 and all support staff were enrolled onlo the Aviva Pension Trust for Independent Schools IAPTISI from 1 December 2023. 21. Reconciliatlon of Cash Flows from Operating Activities 2023 £'ooo -335 -564 559 2,808 £'ooo 2, 989 -477 815 2,707 Nel income for the reporting period Interest receivable Interest paid Depreciation Decrease In stock Increase in debtors IDecreasel in creditor5 Losses Ilgains} on investments (Gains) on investmenl property Loss on tangible fixed assets Defined benefit pension scheme cost less contributions payable Delin8d benefit pension scheme finance cost Nel cash provided by operating activities -157 -698 -3,347 908 -479 399 108 20 161 -167 3,094 119 93 4, 430 22. Anatysls of changes in net debt Balance at I Sept 2022 £'ooo Cash flo￿$ Fair I'alue moi'ements £'ooo Balance at 31 ..lug 2023 £'oo 6,364 -18.667 1,954 -10,349 £'ooo Cash and cash equivalents Bank loan Derivative financial instruments 7,091 -20.000 1,432 -11,477 -727 1,333 522 522 606 Page j3 ## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023** ## **23. Related Party Transactions** Warwick Schools Enterprises Ltd is wholly owned by Warwick Independent Schools Foundation and has been incorporated in these accounts. Transactions with the subsidiary are disclosed in note 4. The Foundation purchased £Nil (2021/22: £148) of packaging from Kite Packaging Limited. Mrs M Ashe is a Governor and a director of this company. The Foundation purchased £500 (2021/22: Nil) of golf services from Julian Dodsworth Limited. Hellen Dodsworth is the Headmistress of Warwick Preparatory School and a director of this company. Three Trustees were also Trustees of two other organisations which had transactions with the Foundation. One Trustee of the Foundation trustees had significant control of the other organisation. The other two Trustees did not have significant control of the other organisation. The value in the current year was £848,121 (2021/22: £974,403) for the two organisations which were King Henry VIII Charity and Charity of Sir Thomas White, Warwick. The Charity received donations in the year from employees totalling £338 (2021/22: £867). Donations were also received from the families of one Governor totalling £1,200 (2021/22: £4,532). The Ministry of Defence provides some funding each year for the purposes of the Combined Cadet Force (CCF). A separate CCF bank account is held by the Charity which is consolidated within these financial statements. The CCF bank account balance at 31 August 2023 was £3,984 (2022: £9,132). Page 54 NOTES TO THE Accouf+rrs FOR THE ITAR ENDED 31 AUGUST 2023 CONSOI.IDATED STATEMENY OF FINANCLIL AcfivITIES - COMPARATtVE FIGURES BY FUND TITE Notes Unrestricted Fim(Ls Restrirted Endowed Funds Funds Total Fund$ 31.4ug Schools Other £'ooo £'oo £'ooo £'ooo £'ooo INCOME FROM.. Donation5 Charitable Activities.. School lees Other income other Trading Aclivili8s'. Trading turnover.. WSEL Investment Income Merger Donation Total Incoming Resources 1.056 1,056 37,926 3.495 37.926 3.495 399 399 477 477 47,898 399 1,056 43,353 EXPENOITURE ON.. Raising Funds". Cost of Developmenl Office Cost of Ir8ding activities.. WSEL Other activities Charitable Aclivilies.. Schools and grant-making Totsl Expended 25T 257 528 23 528 23 38,485 38,742 612 612 27 3g,127 39, 935 554 27 Nel Ilossesllgains on investments -428 -429 Net incomellexpenditurel 3,156 -583 443 -27 2,989 Transfers between funcls Pension Scheme actLJarial gain 16 -3.156 3.756 9,652 2t 9,652 NET MOVEMENT IN FUNDS 12.225 443 -27 12,641 BALANCE BROUGHT FORWARD at 1s1 September 2021 64,637 1.997 2. 762 69.396 FUND BALANCES at 315t August 2022 76,862 2.440 2. 735 82.03T Pa8e 35