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2023-08-31-accounts

REGISTERED COMPANY NUMBER: 03687622 (England and Wales) REGISTERED CHARITY NUMBER: 1089055

REPORT OF THE TRUSTEES AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

FOR

THE GREGG SCHOOLS TRUST (A COMPANY LIMITED BY GUARANTEE)

Hopper Williams & Bell Limited Statutory Auditor Highland House Mayflower Close Chandler's Ford Eastleigh Hampshire SO53 4AR

THE GREGG SCHOOLS TRUST

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

Page
Reference and Administrative Details 1 to 2
Report of the Trustees 3 to 11
Statement of Trustees' Responsibilities 12
Report of the Independent Auditors 13 to 16
Statement of Financial Activities 17
Balance Sheet 18
Cash Flow Statement 19
Notes to the Cash Flow Statement 20
Notes to the Financial Statements 21 to 39

THE GREGG SCHOOLS TRUST

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 AUGUST 2023

TRUSTEES V J Davies
Ms J L Preston
Ms S H Sellers
Ms C A Pulman
J W Watts
Ms H Witt (resigned 31.3.2023)
Ms C Tipper (resigned 31.3.2023)
C Harvey (resigned 19.1.2023)
P Oxenham (resigned 28.2.2023)
N Price (appointed 12.10.2022) (resigned 1.9.2023)
L Jones (appointed 1.9.2023)
Ms L Nicholls (appointed 1.9.2023)
Ms A Hendon-John (appointed 1.9.2023)
I Galvin (appointed 1.9.2023)
COMPANY SECRETARY Ms C A Pulman
REGISTERED OFFICE Highland House
Mayflower Close
Chandler's Ford
Eastleigh
SO53 4AR
REGISTERED COMPANY 03687622 (England and Wales)
NUMBER
REGISTERED CHARITY 1089055
NUMBER
AUDITORS Hopper Williams & Bell Limited
Statutory Auditor
Highland House
Mayflower Close
Chandler's Ford
Eastleigh
Hampshire
SO53 4AR
BANKERS National Westminster Bank plc
3 Lower Northam Road
Hedge End
Southampton
Hampshire
SO30 4PA

Page 1

THE GREGG SCHOOLS TRUST

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 AUGUST 2023

SOLICITORS

Trethowans LLP Pavilion Botleigh Grange Business Park Hedge End Southampton Hampshire SO30 2AF

Page 2

THE GREGG SCHOOLS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

As set out in the Memorandum and Articles of Association, the Trust is established for the promotion and advancement of education and in particular the operating of a school or schools for such purpose. Its principal activity continued to be the provision of education for boys and girls at an independent primary and secondary school.

The Charity provides education for boys and girls aged 4-11 years at The Gregg Preparatory School and for boys and girls aged 11-16 years at The Gregg School.

The Trust's aim, as an educational charity, is to benefit the public by providing a first-class education independent of the State system. It also aims to provide a forward-looking disciplined environment where pupils are given the opportunity to achieve their full potential, as well as helping to build self-confidence and a desire to contribute to the community.

In setting our objectives and planning our activities, our Trustees have considered the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education and on fee-charging.

The Gregg Schools Trust is a charitable trust which seeks to benefit the public through the pursuit of its stated aims. Our fees are set at a level to ensure the financial viability of the schools and at a level that is consistent with our aims.

Our Schools welcome pupils from all backgrounds. An individual's gender, ethnicity, race, religion and in most cases, disability do not form part of our assessment processes.

Our Schools are committed to safeguarding and promoting the welfare of our pupils and expect all staff and volunteers to share this commitment.

The Trust's main objectives are:

The Trust's strategies for achieving its objectives are:

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THE GREGG SCHOOLS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

OBJECTIVES AND ACTIVITIES Significant activities

The Gregg School and The Preparatory School work very closely. The young pupils from the Preparatory School benefit from regular visits to the main school site, taking advantage of our facilities to enhance their learning across all areas of the curriculum, and Gregg School staff regularly visit the Preparatory School to share expertise. This close collaboration ensures a very smooth transition to our Senior School at the end of Year 6. This academic year has seen the establishment and enhancement of a Forest School facility in the woods of the extensive grounds of The Gregg School at Townhill Park. This gives both the Prep School and Gregg School children a valuable outside space to appreciate nature at its' best further cementing the links between the two schools - two schools and one business.

Principal funding sources and expenditure supporting the key objectives.

The principal source of funding continues to come from tuition fee generation, the total of which is determined by pupil numbers and the level of the advertised annual fees, as determined each year by the Trustees. The principal form of expenditure is levied on staff salaries. A large proportion of the remaining funds are expended on the maintenance and development of the schools' infrastructures and in the provision of teaching aids.

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THE GREGG SCHOOLS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

OBJECTIVES AND ACTIVITIES Public benefit

The Trustees have considered the Commission's guidance of Public Benefit and are satisfied that the current activities meet these objectives, as can be seen in the following activities:

The Gregg School is working on a "Working in Partnership Arrangement" with its neighbouring Townhill School, which will allow the use of the grounds, facilities and minibuses of The Gregg School.

The Gregg School hosts the Southampton Junior Schools Cross Country, it also offers science and food technology afternoons to various junior schools.

The Friends of Townhill Park House and Gardens are a team of dedicated volunteers who help maintain the stunning Grade II listed Gertrude Jekyll gardens. Regular Garden Open Days enable members of the public to enjoy our beautiful environment and discover the heritage behind Townhill Park House with no admission fee being charged.

The school were approached by the Townhill Park Residents Association to provide some decorative bunting for their celebratory 60th Year fete. A bunting club was set up where crafty students set to work busy making bunting at lunchtime to support this event. The Residents Association were very appreciative of our contribution.

Bursary and Scholarship Policy

The Trustees view our bursary and scholarship awards as important in helping to ensure children from families who would otherwise not be able to afford the fees to access the education we offer.

Our schools do not have endowments and fund awards from within our own financial activity. We must therefore be mindful of the balance between fee paying parents, many of whom make considerable personal sacrifices to fund their children's education, and those benefiting from the awards.

In accordance with our Bursary Policy, our bursary awards are available to all pupils and are made solely on the basis of parental means or to relieve hardship where a pupil's education and future prospects would otherwise be at risk. The awards normally range from 10% to 50% but additional support up to 100% would be considered in extreme or extraordinary circumstances.

Parents are required to complete a comprehensive application form (designed by The Bursars' Association) to provide full details of income and assets in order that each financial situation can be assessed by the Trustees. Further information can be found within the Schools' Bursary Policy.

Scholarships and bursaries are advertised on the Schools' websites, within advertisements and within prospectus information.

Scholarships are offered for academic excellence, or for Art, Music, and Sport, when pupils initially apply to enter the school in year 7.

Academic scholarship awards of up to 33% are dependent on Entrance Examination performance. Art, Music, and Sport scholarships are 20% with only one award made per subject.

Bursaries, Scholarships and Accessibility

Both Schools continue to offer means tested bursaries to widen the accessibility of our educational system. The Gregg School also offers part scholarships for academic excellence, music, art and sport. Both scholarships and bursaries are awarded from the Trust's own income and are therefore limited to affordability.

Means tested bursaries are available to all pupils and not dependent on performance in the Entrance Assessment provided that prospective students have reached the minimum pass level. The schools are nonselective; those pupils who do not pass The Gregg School Entrance Examination are interviewed by the head teacher to assess our ability to meet their needs within our Learning Support department.

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THE GREGG SCHOOLS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

OBJECTIVES AND ACTIVITIES

Bursary awards have fallen slightly over the last two years and are similar in value to scholarships.

This year 46 (2022 - 46) pupils were helped through means tested bursaries, representing 10.00% of all pupils (2022 - 9.90%) with a value of £218,514 (2021/22 - £189,898, 46 students) 3.48% of gross fee income (2021/22 3.23%). A further 61 pupils (13.26%) were assisted through scholarships with a value of £142,967 (2021/22 - 56 pupils; 12.00% value of £120,744), 2.28% of gross fee income (2021/22 - 2.10%). A further 83 pupils (2021/22 - 88 pupils) received a sibling discount of 10% or 15% representing 1.59% of gross fee income (2021/22 - 1.50%) and there were 12 pupils (2021/22 - 11 pupils) in receipt of staff discounts representing 1.16% of gross fee income (2021/22 - 0.60%).

Bursaries generally allow parents a reduction in fees of up to 50%. However, in extreme overall circumstances more has been offered. During 2022/23, 21 pupils benefitted from 50% assistance and 3 pupils benefit from between 50-100% assistance.

Public and Community Involvement

Our students embrace their local community through a wide range of charity work and volunteering activities throughout the school year, and we greatly value the support we receive from the local business and public service communities in providing speakers on a wide range of topics and issues.

We are committed to ensuring that students not only progress academically but also embrace values which enhance their spiritual, moral, cultural and social development. Our charity and community programme plays a significant role in delivering these aims, enabling students to gain a wider understanding of their place in society and inspiring them to develop a benevolent attitude to those less fortunate than themselves.

The school already has Green Flag status and we have recently traded in several items of old electrical equipment, including laptops, which has contributed towards a carbon forest project. For this we have been awarded an Environmental, Social and Governance certificate from Brighter Futures for our contribution.

On Sunday 13th November 2022 our Head Girl, Head Boy and Deputy Head Boy attended the West End Village War Memorial service to lay a poppy wreath on behalf of our school.

In October half-term, Year 11 History students (and some keen Year 9s) travelled to Ypres in Belgium for a three-day visit to World War One battlefield and memorial sites. We were very proud to watch our Head Boy and Head Girl lay a wreath on behalf of the school during the Last Post Ceremony.

Our Green Team, together with our Head Boy and Head Girl, planted native Silver Birch trees in honour of The Queen's Green Canopy planting initiative and Rowan trees to mark King Charles III Coronation. They will make lovely additions to the grounds for future generations.

In honour of King Charles III's devotion to English Parks and Gardens, about which he has written many books, we are inviting all of our students to grow their own flowers at home. Each student has been given a packet of seeds bearing the King's official commemorative emblem and we look forward to seeing photos of the flowers growing in gardens when they come up in the summer

Borneo Expedition - Students took part in the summer expedition to Borneo. The expedition was run by Outlook Expeditions, and allowed students to develop their leadership skills, experience new challenges and contribute to the local community. Previously the students had a practice weekend in the Peak District, so they knew some of the challenges they would be facing. Before the local community project, the group visited Kota Kinabula and Sepilok, where they saw orangutan and sun bears in their natural environment. They then travelled to the tip Borneo for their project, which was to help a 3.5 acre wildlife reserve, by building steps and making concrete bridges.

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THE GREGG SCHOOLS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

OBJECTIVES AND ACTIVITIES

Charity and Community Involvement Report 2022/23

The Gregg Schools have an enviable reputation for involvement in charitable projects and we have maintained this reputation, not only by continuing our calendar of well-established events but also by participation in new ventures, raising many thousands for a range of worthy causes. We regularly raise over £10,000 every year in support of local and national and international charities.

The Gregg Preparatory School

Charity and Community Involvement Report

The Gregg Prep school, although small in numbers also did their bit and held several fund-raising events in school during the year. These included:

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THE GREGG SCHOOLS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

OBJECTIVES AND ACTIVITIES

Volunteers

Other than salaried members of staff (Headteacher and Teacher), the schools' Trustees did not receive any payment for the work they carried out in the capacity for the charity in the year ending 31 August 2023.

New Trustees and other volunteers are recruited and inducted in accordance with Schools' policy and DBS clearance is obtained.

The Gregg School has three volunteers helping with its Duke of Edinburgh programme.

The Gregg School's formal Gertrude Jekyll gardens are tended to by The Friends of Townhill Park House Gardens, who are all non-paid volunteers.

Student numbers

The Gregg School

Student numbers in 2022/3 averaged 356 (2021/22- 352). The start numbers for 2023/4 are 329.

The Open Days are well supported as we continue to widen the links with a number of our feeder schools through invitations to Science and Technology workshops. This has been supported by presentations to parents at these schools, including the triennial Sherborn House open event.

A major factor in recruitment is the provision of transport to and from school, with a total of 24 minibus routes, up from 22 last year now having dispensed with coach travel. Continued student demand saw 90% of our students using these services daily, having a positive effect on the environment with only a small number of parents needing to use their own cars.

The Gregg Preparatory School

During 2022/23 the main school pupil numbers averaged at 100 (2021/22: 102). Numbers for the new school year 2023/4 are 90.

Members' liabilities

The charity has no share capital and is limited by guarantee. In the event of a winding up, each member of the company is liable to contribute an amount not exceeding £1. As at 31 August 2023 there were 6 members. (2022: 10 members). 4 new members have been recruited for the 2023 - 2024 academic year and will be effective from 1 September 2023, the next academic year.

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THE GREGG SCHOOLS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

ACHIEVEMENT AND PERFORMANCE Charitable activities

During the 2022-2023 year, The Gregg Schools Trust has been able to spend money on capital projects, commensurate with the expansion of the surplus/reserves.

Continued reorganisation of the Schools' governing body to provide more involvement and support to both Schools has progressed well, with one new Trustee appointed this year, with an additional four in the wings for next year who will bring finance/audit, risk, HR, SEND, governance, and project management experience to the Trust's skills base. We will look to increase the communication and education skills in the next year. In May 2023 an Administrator to the Trust was also recruited. Her appointment has already made a significant impact to the organisation of the Board and enhanced the liaison between the Board and the Schools.

NOTE:

In 2021/2022, the Trust took the decision that from September 2022, the Trustees will be known as Governors going forwards. The reason for this is to reflect the wider accountabilities and responsibilities, to be better understood in the educational environment and public domain and is the term used by AGBIS in their Governance manual. Therefore, any reference to Trustees or Governors in this report should be taken to mean the same person(s).

Fundraising activities

The charity adheres to charity sector guidelines and regulations including the Fundraising Code of Practice and would take appropriate action to remedy any shortcomings identified. The Charity's fundraising practices are ethical. We are committed to protecting privacy and only use personal data that we collect in line with applicable laws, including the General Data Protection Regulation (GDPR): data is not shared, sold, swapped or rented to third parties for marketing purposes; communication is only sent to those who want it in the method they have agreed to.

FINANCIAL REVIEW Financial position Financial performance key indicators

The annual accounts are a consolidation of both The Gregg and The Gregg Prep Schools. The Trust has a rolling 5-year financial plan, which includes Cash Flow and Profit and Loss predictions. These plans are reviewed and updated each year.

This year's accounts show a surplus of £111,121 after depreciation of £122,595 and after profit on sale of assets of £8,600 (2021/22: £314,382 surplus after £112,836 depreciation and profit on sale of assets of £7,352).

Fees for the school year, 2022/23 have been increased at both schools by 5.4%, The Gregg School to £4,853 per term and at The Gregg Prep School to £3,138 per term.

Tuition fee income generation amounted to £5,745,083 (2021/22: £5,448,749). Tuition fee income accounted for 90.90% of total income (2021/22: 90.73%) which was £6,326,220 (2021/22: £6,605,683).

To provide the education and support needed to achieve the key objectives of the Trust £4,324,575 (2021/22: £4,062,845) was paid in salaries (including Employers NI and Pension Contributions). This accounts for 75.27% of the fee income (2021/22: 74.56%) and 68.36% of total income (2021/22: 67.65%).

The combined schools' staff/pupil ratio was 7.73 (2021/22: 7.87), The Gregg School 7.38 (2021/22: 7.45) The Gregg Prep 9.16 (2021/22: 9.10).

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THE GREGG SCHOOLS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

FINANCIAL REVIEW

Reserves policy

The Trustees have reviewed the charity's need for reserves in line with the guidance issued by the Charity Commission in SORP (FRS102). The ideal level of free reserves is two thirds of the Schools' operating costs being £4,151,931 (2022: £3,794,201). Unrestricted funds at 31 August 2023 amounted to £2,405,154 (2022: £2,289,923) After excluding unrestricted fixed assets £5,212,814 (2022: £5,225,343) (Note 21) and adding back related bank loans, there are negative 'free' reserves of £845,697 (2022: £916,374). However, the charity has secured cash flow in the form of fees received in advance of £2,835,639 (2022: £3,337,313) (Note 7 and 8) to meet its operating costs as they arise.

The Trustees regularly review the finances, budgets and spend against budget together with a monthly cash flow analysis as part of the effective stewardship of the Schools.

In common with other Independent Schools, the Trustees have invested funds into school buildings in recent years and have a continuing programme of refurbishment, development and investment to maintain excellent teaching facilities for our pupils. Although the free reserves are at a negative balance, this illustrates the extent of the investment in our Schools, which is a common practice by Independent Schools which have to finance their own capital investment plans.

The Trustees recognise that the level of reserves fluctuates during periods of investment in the Schools and arrangements with our bank are in place to provide an adequate 'safety net' should it be required.

Valuation of land and buildings

The freehold land and buildings were professionally valued in December 2020 at £4,250,000. Land and buildings are recognised at historical cost less accumulated depreciation and so this valuation has not been reflected in these financial statements.

Financial effects of significant events

No major or significant borrowing has been taken within this financial year ending 31 August 2023. Long held parental loans have been repaid.

FUTURE PLANS

The Gregg Prep at Winn Road continues to be leased from the Sutton Brothers. With lease arrangements now up for renewal, the opportunity to explore alternatives and seek a long-term solution is being considered. This will ensure that we have made provision for the future of the school and its ability to feed the Gregg.

The two standalone classrooms near the HART building were ready on schedule and brought into service as a forest school and Humanities classroom in one case and an Art and DT classroom in the other.

The funding and construction of a new sports hall at The Gregg School remains the Trustees' significant goal when appropriate funds become available, although the long-term plans and solution for the Preparatory School site remains a top priority.

With a General Election expected in 2024, the Labour Party's proposed policies for Independent Schools has necessitated a deep and forensic deep dive into future plans. The major of these changes is the stated imposition of Value Added Tax (VAT) on school fees, which are currently exempt from VAT. Whilst the exact date of the next General Election is not yet known, the Trust are mindful that a Labour win at a May 2024 election could result in the implementation of their VAT policy as early as September 2024. The Trust continues to monitor the situation very closely and is taking proactive action to communicate with parents and guardians who are understandably anxious about any large increase to fees.

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THE GREGG SCHOOLS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The company is governed by its Memorandum and Articles of Association which were drawn up on 23 December 1998 and amended by Special Resolution(s) on 7 August 2001 and as amended by Special Resolution(s) on 21 February 2005 and as amended by Special Resolution(s) on 7 December 2018.

Organisational structure

The Trustees are responsible for all aspects of school: The educational and pastoral care provided by the Schools coupled with the financial and legal management of the Schools. If a vacancy arises the Trustees will ensure that all skills continue to be covered. The main skills required are educational knowledge, legal and accountancy.

The day-to-day management is delegated to the Head Teachers and the Bursar.

Induction and training of new trustees

Proposals to introduce new Trustees are discussed and agreed within Trust meetings. New Trustees are interviewed by two Trustees and performance, as with all Trustees, is reviewed annually by the Chair.

Training of new Trustees is undertaken by the Chair and Bursar, backed by appropriate professionally run external courses and full use of publications available from the Charity Commission and AGBIS.

The pay of key management personnel is set by the Trustees, in line with the charity governing policy.

AUDITORS

Hopper Williams & Bell Limited, was appointed under section 487(2) of the Companies Act 2006.

The auditors, Hopper Williams & Bell Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

14 Dec 2023

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

Joanna Preston

....................................................................

Ms J L Preston - Trustee

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THE GREGG SCHOOLS TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2023

The trustees (who are also the directors of The Gregg Schools Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

The Trustees (who are also the Directors of The Gregg Schools Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.

In preparing those financial statements, the Trustees are required to select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charity SORP; make judgements and estimates that are reasonable and prudent; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware: there is no relevant audit information of which the charitable company's auditors are unaware; and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE GREGG SCHOOLS TRUST

Opinion

We have audited the financial statements of The Gregg Schools Trust (the 'charitable company') for the year ended 31 August 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE GREGG SCHOOLS TRUST

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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

Responsibilities of trustees

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

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

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE GREGG SCHOOLS TRUST

Our responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities even though the audit has been properly planned and performed in accordance with the ISAs (UK). The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE GREGG SCHOOLS TRUST

Use of our report

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

Michaela Johns

Michaela Johns FCCA (Senior Statutory Auditor) for and on behalf of Hopper Williams & Bell Limited Statutory Auditor Highland House Mayflower Close Chandler's Ford Eastleigh Hampshire SO53 4AR 14 Dec 2023 Date: .............................................

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THE GREGG SCHOOLS TRUST

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2023

Notes
INCOME FROM
Donations and legacies
3
Charitable activities
5
School fees receivable
Additional school activities
Investment income
4
Other income
6
Total
EXPENDITURE ON
Charitable activities
7
School operating costs
Welfare costs
Transport costs
Premises
Total
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
-
5,745,083
568,823
10,745
8,600
6,333,251
4,931,310
377,820
298,441
610,449
6,218,020
115,231
2,289,923
2,405,154		 Restricted
fund
£
4,413
-
1,354
-
-
5,767
4,576
-
-
5,301
9,877
(4,110)
13,456
9,346		 2023
Total
funds
£
4,413
5,745,083
570,177
10,745
8,600
6,339,018
4,935,886
377,820
298,441
615,750
6,227,897
111,121
2,303,379
2,414,500		 2022
Total
funds
£
1,958
5,448,749
547,017
607
7,352
6,005,683
4,516,616
361,271
297,369
516,045
5,691,301
314,382
1,988,997
2,303,379

CONTINUING OPERATIONS

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

The notes form part of these financial statements

Page 17

THE GREGG SCHOOLS TRUST

BALANCE SHEET 31 AUGUST 2023

Notes
FIXED ASSETS
Tangible assets
14
CURRENT ASSETS
Stocks
15
Debtors
16
Cash at bank
CREDITORS
Amounts falling due within one year
17
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
18
NET ASSETS
FUNDS
22
Unrestricted funds
Restricted funds
TOTAL FUNDS		 2023
£
5,220,121
16,291
1,016,183
1,363,271
2,395,745
(3,317,277)
(921,532)
4,298,589
(1,884,089)
2,414,500
2,405,154
9,346
2,414,500		 2022
£
5,237,951
15,555
1,129,333
1,755,995
2,900,883
(3,817,609)
(916,726)
4,321,225
(2,017,846)
2,303,379
2,289,923
13,456
2,303,379

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: 14 Dec 2023

Joanna Preston

............................................. J L Preston - Trustee

The notes form part of these financial statements

Page 18

THE GREGG SCHOOLS TRUST

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash (used in)/provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
Bank loan repayments in year
Net cash used in financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2023
£
(155,814)
(67,134)
(222,948)
(104,765)
8,600
10,745
(85,420)
(84,356)
(84,356)
(392,724)
1,755,995
1,363,271		 2022
£
759,777
(62,082)
697,695
(46,326)
7,352
607
(38,367)
(83,204)
(83,204)
576,124
1,179,871
1,755,995

The notes form part of these financial statements

Page 19

THE GREGG SCHOOLS TRUST

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2023

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
2023 2022
£ £
Net income for the reporting period (as per the Statement of
Financial Activities) 111,121 314,382
Adjustments for:
Depreciation charges 122,595 112,836
Profit on disposal of fixed assets (8,600) (7,352)
Interest received (10,745) (607)
Interest paid 67,134 62,082
Increase in stocks (736) (292)
Decrease/(increase) in debtors 113,150 (46,743)
(Decrease)/increase in creditors (549,733) 325,471
Net cash (used in)/provided by operations (155,814) 759,777
2. ANALYSIS OF CHANGES IN NET DEBT
At 1.9.22 Cash flow At 31.8.23
£ £ £
Net cash
Cash at bank 1,755,995 (392,724) 1,363,271
1,755,995 (392,724) 1,363,271
Debt
Debts falling due within 1 year (144,845) 61,673 (83,172)
Debts falling due after 1 year (1,961,474) 82,683 (1,878,791)
(2,106,319) 144,356 (1,961,963)
Total (350,324) (248,368) (598,692)

The notes form part of these financial statements

Page 20

THE GREGG SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

1. ACCOUNTING POLICIES

Charity information

The Gregg Schools Trust (formerly The Gregg and St Winifred's School Trust) is a private company limited by guarantee incorporated in England and Wales. The registered office is Highland House, Mayflower Close, Chandler's Ford, Eastleigh, Hampshire, SO53 4AR.

Basis of preparing the financial statements

The financial statements have been prepared in accordance with the Trust's governing documents, the Companies Act 2006 and "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). The Trust is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional and presentational currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared un the historical cost convention. The principle accounting policies adopted are set out below.

Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. This confidence comes from steps the School has taken to strengthen ties between the two Schools alongside the genuine investment in marketing. The Trust also have a strong 5 year strategy supported by well resourced marketing and admissions plans. The forward momentum created by improved pass rates and a focus on Student Support all assist in this. Ambitious housing expansion plans released by Southampton City Council demonstrate a continuing increase in numbers within catchment as more land is developed - all positive news for student numbers.

Accordingly, the trustees have prepared the financial statements on this basis.

Charitable funds

Unrestricted funds are defined as income realised or generated for the objectives of the Charity without further specified purpose and which are available as general funds.

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure, which meets these criteria, will be identified to the fund.

Designated funds are funds set aside by the Trustees out of unrestricted general funds for specific future purposes or projects.

Fund transfers

Resources are transferred from Unrestricted Funds to Restricted Funds where expenditure meeting the criteria laid down by a donor of restricted income exceeds this income.

Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met or are fully within the control of the charity, there is sufficient certainty that receipt of the income is considered possible, and the amount can be measured reliably.

Fee income

Tuition fee income comprises gross termly fees less allowances and discounts made. This and all other income except certain donations, represent unrestricted funds.

continued...

Page 21

THE GREGG SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

1. ACCOUNTING POLICIES - continued

Income

Fees received in advance of education to be provided in future years under an Advance Fee Payments Scheme contract are held as creditors until either taken to income in the term when used or else refunded.

Tuition fees are recognised on a receivable basis. Amounts invoiced in advance are deferred and carried forward within creditors and accruals, whilst amounts due but not yet received in the year are shown within debtors and prepayments.

Deferred income - advance fees

Where income is received in advance of meeting any performance related conditions and there is not unconditional entitlement to the income, its recognition is deferred and included in creditors as deferred income until the performance conditions are met.

Donations and legacies

Funds from the appeals to raise finance for buildings and future capital projects are accounted for on a receivable basis.

Donations are accounted for on a receivable basis and are recorded in line with the stipulations attached to them by the donor.

All income was generated in the UK.

Expenditure

Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds comprise the costs of marketing to attract students to the School.

Expenditure on charitable activities includes the costs of teaching salaries, and other educational activities undertaken to further the purposes of the charity and their associated support costs.

Other expenditure represents those items not falling into any other heading.

Irrecoverable VAT is charges as a cost against the activity which expenditure was incurred.

Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activity. Support costs include the costs of office salaries, and governance costs which support the School in the provision of education. The bases on which support costs have been allocated are set out in note 8.

Borrowing costs

General and specific borrowing costs directly attributable to the acquisition and construction of freehold properties and added to the cost of those properties until such a time as the properties are ready for their intended use or sale.

Tangible fixed assets

Tangible fixed assets are measured at cost (or deemed cost for land and buildings held at valuation at the date of transition to FRS 102) less accumulated depreciation and any impairment. No lower limit is applied to individual items that are capitalised.

continued...

Page 22

THE GREGG SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

1. ACCOUNTING POLICIES - continued

Tangible fixed assets

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 1.43% & 10% straight line
Leasehold land and buildings Over the term of the lease
Plant and machinery 15% straight line
Fixtures, fittings and equipment 15% straight line
Motor vehicles 20% straight line or over the life of the lease

Freehold land and assets in the course of construction are not depreciated. Properties in the course of construction are carried at cost, less any identified impairment loss. Cost includes professional fees and other directly attributable costs that are necessary to bring the property to its operating condition. Depreciation commences when the properties are ready for their intended use.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

Specific borrowing costs directly attributable to the construction of freehold properties are added to the costs of these properties until such a time as the properties are ready for their intended use or sale.

Impairment of fixed assets

At each reporting end date, the Trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/(expenditure) for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks

Stock is valued at the lower of costs, being the purchase price, and net realisable value.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

continued...

Page 23

THE GREGG SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

1. ACCOUNTING POLICIES - continued

Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 and section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

Hire purchase and leasing commitments

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charges to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

Classification of leases

In categorising leases as finance leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the School.

Retirement benefits

The pension arrangements of the charity are defined contribution schemes where the assets of the scheme are held separately from those of the Trust in an independently administered fund. The pension cost charge represents contributions payable by the Trust to the funds during the year in accordance with FRS 102.

School deposits

School deposits are currently classified between long term and short term in the financial statements. These deposits are not refundable in the event that pupils leave the school on one term's notice and it is discretionary as to whether a refund will be made. Short term deposits reflect those pupils that will be leaving the school within one year, and the long term deposits reflect those pupils that will be leaving the school after 12 months from the balance sheet date.

Financial instruments

The Trust has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Trust's balance sheet when the Trust becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price include transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

continued...

Page 24

THE GREGG SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

1. ACCOUNTING POLICIES - continued

Impairment of financial assets

Financial assets, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Trust transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate interest. Financial liabilities classified as payable within one year are not amortised.

Liabilities are recognised within the financial statements in respect of all expenditure for which the entity has a measurable obligation, be it constructive or legal, at the balance sheet date. Any expenditure which is committed to, but not measurable at this time, is disclosed within the notes to the financial statements as a contingent liability.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Trust's contractual obligations expire or are discharged or cancelled.

2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

In the application of the Trust's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Page 25

continued...

THE GREGG SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

3. DONATIONS AND LEGACIES

Donations
4.
INVESTMENT INCOME
Deposit account interest
5.
INCOME FROM CHARITABLE ACTIVITIES
School
fees
receivable
£
School fees
6,279,018
Less: scholarships
(142,967)
Less: bursaries
(218,514)
Less: other discounts
(172,454)
Learning support
-
Coach fares
-
Canteen
-
Miscellaneous income
-
Hire of facilities
-
5,745,083
6.
OTHER INCOME
Other income
Net gain on disposal of tangible fixed assets		 Donations
4.
INVESTMENT INCOME
Deposit account interest
5.
INCOME FROM CHARITABLE ACTIVITIES
School
fees
receivable
£
School fees
6,279,018
Less: scholarships
(142,967)
Less: bursaries
(218,514)
Less: other discounts
(172,454)
Learning support
-
Coach fares
-
Canteen
-
Miscellaneous income
-
Hire of facilities
-
5,745,083
6.
OTHER INCOME
Other income
Net gain on disposal of tangible fixed assets		 Additional
school
activities
£
-
-
-
-
66,399
248,066
219,373
29,637
6,702
570,177		 2023
£
4,413
2023
£
10,745
2023
Total
activities
£
6,279,018
(142,967)
(218,514)
(172,454)
66,399
248,066
219,373
29,637
6,702
6,315,260		 2022
£
1,958
2022
£
607
2022
Total
activities
£
5,883,483
(120,744)
(189,898)
(124,092)
60,894
251,233
216,000
14,448
4,442
5,995,766
2023 2022
£ £
8,600 7,352

Page 26

continued...

THE GREGG SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

7. CHARITABLE ACTIVITIES COSTS

CHARITABLE ACTIVITIES COSTS
School operating costs
Welfare costs
Transport costs
Premises		 Direct
Costs
£
4,522,631
346,188
273,456
564,196
5,706,471		 Support
costs (see
note 8)
£
413,255
31,632
24,985
51,554
521,426		 Totals
£
4,935,886
377,820
298,441
615,750
6,227,897

8. SUPPORT COSTS

School operating costs
Welfare costs
Transport costs
Premises		 General
support
Governance
costs
costs
£
£
376,353
36,902
28,807
2,825
22,754
2,231
46,949
4,605
474,863
46,563		 Totals
£
413,255
31,632
24,985
51,554
521,426

The charity initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining support costs are apportioned on the basis of direct cost per activity as a percentage of total direct costs for charitable activities.

Support costs, included in the above, are as follows:

General support costs

Wages
Social security
Pensions
Telephone
Postage and stationery
Other costs		 School
operating
costs
£
188,913
17,928
13,202
17,655
6,009
132,646
376,353		 Welfare
costs
£
14,460
1,372
1,011
1,351
460
10,153
28,807		 Transport
costs
£
11,422
1,084
798
1,067
363
8,020
22,754

continued...

Page 27

THE GREGG SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

8. SUPPORT COSTS - continued

General support costs - continued

Wages
Social security
Pensions
Telephone
Postage and stationery
Other costs
Governance costs
Auditors' remuneration
Auditors' remuneration for non audit work
Legal and professional fees
Auditors' remuneration
Auditors' remuneration for non audit work
Legal and professional fees		 Premises
£
23,567
2,236
1,646
2,202
750
16,548
46,949
School
operating
costs
£
10,865
2,401
23,636
36,902
Premises
£
1,356
300
2,949
4,605		 2023
Total
activities
£
238,362
22,620
16,657
22,275
7,582
167,367
474,863
Welfare
costs
£
832
184
1,809
2,825
2023
Total
activities
£
13,710
3,030
29,823
46,563		 2022
Total
activities
£
232,346
21,600
16,234
22,447
10,146
131,799
434,572
Transport
costs
£
657
145
1,429
2,231
2022
Total
activities
£
8,415
1,862
22,834
33,111

continued...

Page 28

THE GREGG SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

9. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2023 2022
£ £
Auditors' remuneration 13,710 8,415
Auditors' remuneration for non audit work 3,030 1,862
Depreciation - owned assets 122,595 111,101
Depreciation - assets on hire purchase contracts and finance leases - 1,735
Surplus on disposal of fixed assets (8,600) (7,352)
Operating lease charges 267,844 206,949

10. TRUSTEES' REMUNERATION AND BENEFITS

A trustees received remuneration, including employer's pension contributions and benefits, for teaching and administrative services to the schools, as follows, in line with the charity governing document:

2023 2022
£ £
S Sellers 95,881 90,431
C Tipper - 337
95,881 90,768

Trustees' expenses

During the year 2 trustees were reimbursed travel expenses totalling £883 (2022: £551). 1 trustee attended a safeguarding course at a cost of £215 per person (2022: £195 per person). This cost was met directly by the Trust.

The school has paid for Trustee Indemnity Insurance for the year, the insurance premium is included within travellers school insurance policy.

11. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2023
£
3,738,758
324,542
261,275
4,324,575		 2022
£
3,510,223
307,369
245,253
4,062,845

The level of remuneration is set in accordance with the National Leadership pay scales. The highest paid employee is on level 27 (2022 - 27) out of 43 on this scale.

The average monthly head count and average monthly number of full time equivalent (FTE) employees during the year were as follows:

continued...

Page 29

THE GREGG SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

11. STAFF COSTS - continued

2023 2022
FTE FTE
Teaching 57.3 56.1
Teaching support 14.6 12.8
Grounds, maintenance and admin 18.8 18.3
Drivers and cleaners 12.9 13.4
103.6 100.6

The average monthly number of employees during the year was as follows:

Teaching
Teaching support
Grounds, maintenance and admin
Drivers and Cleaners		 2023
61
23
25
37
146		 2022
60
23
24
38
145

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

£60,001 - £70,000
£80,001 - £90,000		 2023
1
1
2		 2022
2
1
3

Contributions were made into Pension Schemes for the higher paid employees of £12,394 (2022 - £17,010).

12. EX GRATIA PAYMENTS

During the year termination payments totalling £nil (2022: £5,000) were made .

continued...

Page 30

THE GREGG SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

13.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
fund
fund
£
£
INCOME FROM
Donations and legacies
741
1,217
Charitable activities
School fees receivable
5,448,749
-
Additional school activities
547,017
-
Investment income
607
-
Other income
7,352
-
Total
6,004,466
1,217
EXPENDITURE ON
Charitable activities
School operating costs
4,508,690
7,926
Welfare costs
361,271
-
Transport costs
297,369
-
Premises
516,045
-
Total
5,683,375
7,926
NET INCOME/(EXPENDITURE)
321,091
(6,709)
RECONCILIATION OF FUNDS
Total funds brought forward
1,968,832
20,165
TOTAL FUNDS CARRIED FORWARD
2,289,923
13,456		 Total
funds
£
1,958
5,448,749
547,017
607
7,352
6,005,683
4,516,616
361,271
297,369
516,045
5,691,301
314,382
1,988,997
2,303,379

continued...

Page 31

THE GREGG SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

14. TANGIBLE FIXED ASSETS

COST
At 1 September 2022
Additions
Disposals
At 31 August 2023
DEPRECIATION
At 1 September 2022
Charge for year
Eliminated on disposal
At 31 August 2023
NET BOOK VALUE
At 31 August 2023
At 31 August 2022
COST
At 1 September 2022
Additions
Disposals
At 31 August 2023
DEPRECIATION
At 1 September 2022
Charge for year
Eliminated on disposal
At 31 August 2023
NET BOOK VALUE
At 31 August 2023
At 31 August 2022		 Freehold
land and
buildings
£
5,275,231
-
-
5,275,231
323,360
48,462
-
371,822
4,903,409
4,951,871
Fixtures,
fittings
and
equipment
£
1,013,414
90,583
-
1,103,997
891,538
51,728
-
943,266
160,731
121,876		 Leasehold
land and
buildings
£
271,205
-
-
271,205
153,287
4,330
-
157,617
113,588
117,918
Motor
vehicles
£
157,466
-
(27,095)
130,371
132,018
11,695
(27,095)
116,618
13,753
25,448		 Plant and
machinery
£
183,183
14,182
-
197,365
162,345
6,380
-
168,725
28,640
20,838
Totals
£
6,900,499
104,765
(27,095)
6,978,169
1,662,548
122,595
(27,095)
1,758,048
5,220,121
5,237,951

continued...

Page 32

THE GREGG SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

14. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts or finance leases are as follows:

COST
At 1 September 2022 and 31 August 2023
DEPRECIATION
At 1 September 2022 and 31 August 2023
NET BOOK VALUE
At 31 August 2023
At 31 August 2022		 Motor
vehicles
£
8,703
8,703
-
-

Land and buildings are held at deemed cost following the transition to FRS 102. At 31 August 2023, had the revalued assets been carried at historic cost less accumulated depreciation, their carrying amount would have been approximately £4,050,065 (2022 - £4,098,527).

15. STOCKS

Stocks
16.
DEBTORS
Amounts falling due within one year:
Trade debtors
VAT
Prepayments and accrued income
Amounts falling due after more than one year:
Other debtors
Aggregate amounts		 2023
£
16,291
2023
£
965,873
5,444
32,366
1,003,683
12,500
1,016,183		 2022
£
15,555
2022
£
1,048,435
6,190
62,208		 2022
£
15,555
1,116,833
12,500
1,129,333

continued...

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THE GREGG SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans and overdrafts (see note 19)
Other loans (see note 19)
Trade creditors
Social security and other taxes
Accruals and deferred income
Fees invoiced in advance
Fees received in advance		 2023
£
83,172
-
50,691
80,467
272,606
1,480,209
1,350,132
3,317,277		 2022
£
84,845
60,000
140,380
72,507
178,936
1,481,464
1,799,477
3,817,609

18. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans (see note 19)
Fees received in advance		 2023
£
1,878,791
5,298
1,884,089		 2022
£
1,961,474
56,372
2,017,846

19. LOANS

An analysis of the maturity of loans is given below:

Amounts falling due within one year on demand:
Bank loans
Other loans
Amounts falling between one and two years:
Bank loans - 1-2 years
Amounts falling due between two and five years:
Bank loans - 2-5 years
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more 5 yr by instalments
 2023
£
83,172
-
83,172
86,099
316,628
1,476,064		 2022
£
84,845
60,000
144,845
87,131
278,154
1,596,189

The trust took out a loan for £1,980,000 in February 2021 repayable over 20 years at an initial fixed rate of 2.9% for the first 84 months. The loan is secured by a second legal charge over The Gregg School and its associated assets.

In June 2021, a further loan for £200,000 was taken out, repaying the CBILS loan taken out in the previous year. The new loan is for 20 years with interest charged at a rate of 2.39% over the base rate. The loan also has a second legal charge over The Gregg School and its associated assets.

continued...

Page 34

THE GREGG SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

19. LOANS - continued

Other loans of £nil (2022 - £60,000) had been received from parents of ex-pupils. These loans did not have fixed repayment terms and were unsecured. Interest was payable on these loans at 3% over the base rate per annum. During the year, these loans were repaid in full.

20. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years		 2023
£
156,173
180,116
336,289		 2022
£
105,543
101,407
206,950

Leases of land and buildings are subject to periodic rental reviews.

21. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fixed assets
Current assets
Current liabilities
Long term liabilities
MOVEMENT IN FUNDS
Unrestricted funds
General fund
Restricted funds
Restricted fund
TOTAL FUNDS		 Unrestricted
fund
£
5,212,814
2,393,706
(3,317,277)
(1,884,089)
2,405,154		 Restricted
fund
£
7,307
2,039
-
-
9,346
At 1.9.22
£
2,289,923
13,456
2,303,379		 2023
Total
funds
£
5,220,121
2,395,745
(3,317,277)
(1,884,089)
2,414,500
Net
movement
in funds
£
115,231
(4,110)
111,121		 2022
Total
funds
£
5,237,951
2,900,883
(3,817,609)
(2,017,846)
2,303,379
At
31.8.23
£
2,405,154
9,346
2,414,500

22. MOVEMENT IN FUNDS

Page 35

continued...

THE GREGG SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

22. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Restricted fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
Restricted funds
Restricted fund
TOTAL FUNDS
Comparative net movement in funds, included in the above are a
Unrestricted funds
General fund
Restricted funds
Restricted fund
TOTAL FUNDS		 Incoming
resources
£
6,333,251
5,767
6,339,018
At 1.9.21
£
1,968,832
20,165
1,988,997
s follows:
Incoming
resources
£
6,004,466
1,217
6,005,683		 Resources
expended
£
(6,218,020)
(9,877)
(6,227,897)
Net
movement
in funds
£
321,091
(6,709)
314,382
Resources
expended
£
(5,683,375)
(7,926)
(5,691,301)		 Movement
in funds
£
115,231
(4,110)
111,121
At
31.8.22
£
2,289,923
13,456
2,303,379
Movement
in funds
£
321,091
(6,709)
314,382

Page 36

continued...

THE GREGG SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

22. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Restricted funds
Restricted fund
TOTAL FUNDS		 At 1.9.21
£
1,968,832
20,165
1,988,997		 Net
movement
in funds
£
436,322
(10,819)
425,503		 At
31.8.23
£
2,405,154
9,346
2,414,500

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Restricted fund
TOTAL FUNDS		 Incoming
Resources
resources
expended
£
£
12,337,717
(11,901,395)
6,984
(17,803)
12,344,701
(11,919,198)		 Movement
in funds
£
436,322
(10,819)
425,503

23. EMPLOYEE BENEFIT OBLIGATIONS

Defined contribution schemes

The Trust previously operated a defined contribution pension scheme and now pays employer contributions into a Group Personal Pension Fund. The assets of both schemes are held separately from those of the Trust in an independently administered fund.

The pension cost charge represents contributions payable by the Trust to the fund and amounted to £261,275 (2022 - £245,253). Contributions totalling £36,139 (2022 - £34,592) were outstanding at the year end and are included in accruals and other creditors.

continued...

Page 37

THE GREGG SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

24. CAPITAL COMMITMENTS

CAPITAL COMMITMENTS
2023 2022
£ £
Contracted but not provided for in the financial statements - 61,804

During the prior year the charity committed to fire alarm and playground works.

25. RELATED PARTY DISCLOSURES

Remuneration of key management personnel

The remuneration of key management personnel is as follows:

2023 2022
£ £
Aggregate compensation 170,611 180,938

See note 10 for information on trustees expenses.

During the year, payments of £2,279 (2022: £3,395) from pupil subscriptions were made to The Gregg School Parents Teachers & Friends Association - Charity Number 1088756, also known as FROGS (Friends of The Gregg School). The headteacher and trustee, Mrs S Sellers, is also a trustee of this charity. Receipts of £2,884 (2022: £2,044) were received back from this charity as donations in the year.

Balances due from this charity as at 31 August 2023 were £nil (2022: £269).

26. ULTIMATE CONTROLLING PARTY

The ultimate controlling parties are the Trustees as shown in the Trustees Report.

27. COMPANY STATUS

The Trust is a company limited by guarantee. In the event of the Trust being wound up, the members' liability is limited to £1 each. There are 10 members (2022 - 10).

28. RESTRICTED FUNDS

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at 1
September Balance at 31
2022 Income Expenditure August 2023
£ £ £ £
Library fund 8,232 - (3,094) 5,138
Sports facilities fund 1,526 - (500) 1,026
New Build fund 928 - (186) 742
Furniture Room 1 500 - (500) -
Wild Life Cameras 414 - (414) -
Table Tennis Tables 315 - (191) 124
HART Sound System 343 - (206) 137

continued...

Page 38

THE GREGG SCHOOLS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023

28. RESTRICTED FUNDS - continued

Pizza Oven 350 - (210) 140
Christmas Igloo 848 - - 848
Tree for grounds - 42 (42) -
Purbeck stone - 1,487 (1,487) -
Defib for TGS - 1,097 (1,097) -
Gear4music - 1,787 (1,787) -
FROGS honey - 1,354 (163) 1,191
13,456 5,767 (9,877) 9,346

The Library Fund represents a specific donation received for conversion of a school building into a library. Expenditure relates to depreciation being charged over the life of the asset.

The Sports Facilities Fund was set up to raise funds for improving the sports facilities the school is able to provide its pupils. Expenditure relates to depreciation being charged over the life of the asset.

The New Build Fund represents a donation received to help fund the cost of the new building. Expenditure relates to depreciation being charged over the life of the asset.

The Furniture Room 1 Fund represents a donation received to help fund the cost of kitting out Room 1. Expenditure relates to depreciation being charged over the life of the assets.

The Wild Life Cameras Funds represents a donation received to help fund the cost of purchasing cameras. Expenditure relates to depreciation being charged over the life of the assets.

The Table Tennis Tables Funds represent a donation received to fund and improve the sports facilities for the students at the school.

The HART Sound System funds represent a donation to help fund the cost of purchasing the sound system in the HART building.

The Pizza Oven represents a donation for the purchase and construction of a Pizza oven. The oven itself has been capitalised and therefore part of the expenditure represents depreciation charged over the life of the asset. The rest of the expenditure represents revenue expenditure on the project.

Christmas Igloo represents funds donated, but have not yet been expensed due to the pandemic.

During the year, funds were received for, a tree for the grounds, purbeck stone, gear4music and a defibrillator. These have all been spent in the year.

FROGS honey represents funds received from the making of honey. £1,000 of this is to be repaid to FROGS.

Page 39