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2023-06-30-accounts

Company Registration No. 04787097 (England and Wales) Registered Charity No. 1097977

Tonbridge School

ANNUAL REPORT Year ended 30 June 2023

Tonbridge School

CONTENTS Page
Directors’ and Governors’ report
 1-30
Independent Auditors’ report to the Members of Tonbridge School
 31-34
Consolidated statement of financial activities
 35-36
Consolidated summary income & expenditure account
 37
Balance sheets
 38
Consolidated cash flow statement
 39
Notes to the financial statements
 40-75

Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

Legal and Administrative Information

Governors

GM Rochussen (Chairman) RJ Elliott (resigned 31 August 2022) TM Attenborough CJ Ashton (appointed 1 September 2023) SA Bishop DP Devitt MF Dobbs ME Fry (appointed 16 November 2022) Professor HF Gaunt SA Hall HJ Hamilton-Turner Dr T Hands (appointed 1 February 2024)

S Huang (resigned 31 August 2023) JG Leahy JI Naismith (resigned 31 August 2023) Dr N Perry (appointed 1 September 2023) Dr FVN Rangarajan JRT Rogers (appointed 1 September 2023) Dr MS Spurr Dr JE Stirrup (resigned 16 November 2022) JWG Thompson (resigned 31 August 2022) J Thorne KM Wheadon GP White

Clerk to the Governors: Major General A Kennett

Senior Team (Tonbridge)

Headmaster: Bursar:

JE Priory SM Meikle (appointed 6 November 2023) AC Moore (resigned 24 August 2023)

Second Master: Deputy Head Academic: Deputy Head Co-Curricular: Deputy Head Pastoral:

JR Bleakley MJ Weatheritt JA Fisher CJC Swainson

Director of Admissions & Marketing:

HM McLintock (appointed 1 September 2023) Mr R Burnett (resigned 31 August 2023)

Director of Tonbridge Society:

AP Ballard (appointed 31 October 2022) AR Whittall (resigned 31 October 2022)

Senior Team (The New Beacon)

Head: S Brownsdon (appointed 1 April 2023) MR Piercy (resigned 31 March 2023) Director of Finance and Operations: P Young (appointed 17 April 2023) LA Butterworth (resigned 26 August 2022) Interim Dir. of Finance and Operations: M Scragg (appointed 29 August 2022 and resigned 16 April 2023)

Registered Office

Tonbridge School Tonbridge, Kent TN9 1JP

Company number 04787097

Charity number 1097977

Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT Legal and Administrative Information

Bankers Tonbridge School HSBC plc 100 High Street Tonbridge Kent TN9 1AN

The New Beacon

National Westminster Bank Plc 135 Bishopsgate London EC2M 3UR

Solicitors Farrer & Co 66 Lincoln’s Inn Fields London WC2A 3LH

Auditor

Saffery LLP 71 Queen Victoria Street London EC4V 4BE

Investment Managers

HSBC Private Bank (UK) Ltd. 78 St James’s Street London SW1A 1JB

Insurance Brokers Marsh Limited (Education Practice) Capital House 1-5 Perrymount Road Haywards Heath West Sussex RH16 3SY

Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

The Governors, who are also the Charity Trustees and the Directors for the purposes of company law, present their annual report and financial statements for the year ended 30 June 2023. The Governors have adopted the provisions of the Statement of Recommended Practice (SORP) Accounting and Reporting by Charities 2015 (FRS102) in preparing the annual report and financial statements of the Charity.

REFERENCE AND ADMINISTRATIVE INFORMATION

Sir Andrew Judde, Skinner, a citizen of London and Lord Mayor, built and endowed “The Free Grammar School of Sir Andrew Judde”, commonly known as Tonbridge School. In 1553 he obtained a grant by Letters Patent or Charter constituting himself sole governor during his lifetime and directing that, after his death, the Master, Wardens and Commonality of the Skinners’ Company were to be the Governors. In 1558, by his will, he bequeathed to the Master and Wardens property in the City of London and at St. Pancras for the maintenance of the School and for other purposes, under the administration of the Sir Andrew Judd Foundation.

In 2002 the decision was taken to transfer the business of Tonbridge School from the Sir Andrew Judd Foundation into a separate charitable company limited by guarantee, under the control of its own Governors. This company, with the name “Tonbridge School”, was incorporated on 4 June 2003: the transfer took place on 30 June 2003. The Governors, senior managers, professional advisers and the principal address of the Charity are listed at the front of this report.

Merger with the New Beacon Preparatory School

On the 31 August 2021, the merger between Tonbridge School and The New Beacon Preparatory School, formerly The New Beacon Educational Trust Limited (Charity Number: 307925), in Sevenoaks, Kent, was completed. Tonbridge School has taken on all the assets and liabilities of the preparatory school, with the two Governing Bodies of the respective school’s working closely to align the schools in terms of overall strategy, combining respective experience and expertise to provide an educational pathway for boys aged from 3 to 18 years.

Following the merger, each school retained its own teaching and support staff, its own leadership and management team, and its own uniform, site and separate identity. The organisation and management of the respective senior and preparatory schools are as noted below under Organisation and Management.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The School is a charitable company limited by guarantee. It is governed by its Memorandum and Articles of Association as amended on 6 May 2021 and is registered with the Charity Commissioners under Charity Number 1097977.

Governing Body

The Charity’s Articles of Association require that the Governors shall consist of no fewer than eleven and no more than nineteen individuals, of whom the majority including the Chairman shall be Nominative Governors.

Recruitment and Training of Governors

Nominative Governors (Skinners’ Governors) are appointed by and are members of the Worshipful Company of Skinners. Co-optative Governors (Non-Skinners’ Governors) are appointed by the Governing Body following recommendation by the Nominations Committee. All Governors hold office for a term of four years but may be reappointed following the expiration of each term. As part of the selection process, due consideration is given to the individual’s personal knowledge and the experience they would bring to the Governing Body. New Governors are inducted into the workings of the Charity via an induction programme organised by the Clerk to the Governors, Headmaster and Bursar. During the year, the Governors received a number of presentations relating to strategic issues affecting the School.

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

Organisational Management

The Governors, as Trustees of the Charity, are legally responsible for the overall management and control of the School. They meet four times per year, and have appointed: a Finance and General Purposes Committee, which meets three times a year, to monitor the development and financial management of the School; a Joint Pay and Conditions Committee (JPCC), which meets twice a year, and makes recommendations to the Governors relating to the terms and conditions of employment for all staff with the exception of the Headmaster, Bursar and Second Master; a Pastoral Committee, which meets three times a year, responsible for Health & Safety, pastoral matters and safeguarding issues; an Education Committee which meets three times a year and oversees public examination results, university outcomes, co-curricular matters, ISI criteria, teaching staff appointments, and curricular matters. The Headmaster and Senior Team members sit as members of each of these sub-committees, along with other members of staff as required. In addition, the Group benefits from The Tonbridge School Foundation Committee, which meets three times a year to oversee the effective operation of The Tonbridge School Foundation in fulfilling its charitable object according to applicable law and regulation; and the Tonbridge Society Committee, which meets twice a year, and is responsible for governing the School’s management of all matters relating to the stewardship of Old Tonbridgians and parents, and for examining the impact on these groups of the School’s fundraising strategy. As Senior Officers, the Headmaster, Bursar, and the Director of the Tonbridge Society attend both Committee meetings. The Governors determine the general policy of the School. The day-to-day management of the School is delegated to the School’s Senior Team, as the key management personnel, comprising the Headmaster, Bursar, Second Master, Deputy Head Academic, Deputy Head Co-Curricular, Deputy Head Pastoral, Director of Admissions and Marketing, and the Director of the Tonbridge Society. The Headmaster has overall responsibility for the appointment and supervision of all staff but delegates this function to the Bursar for all non-academic staff.

The remuneration of the Senior Team is set by the Governors, either directly or via the JPCC, with the policy objective of rewarding them fairly and responsibly for their individual contributions to the Charity’s success.

The appropriateness and relevance of remuneration is reviewed annually with reference to other independent schools and market conditions generally, to ensure that the Charity can not only meet its objectives of recruiting, retaining, and developing the best and most committed teaching and support staff, but also use its resources responsibly.

Following the merger with The New Beacon, three additional committees were established: The New Beacon Governing Body, as a sub-committee of the Tonbridge School Governing Body, a Pastoral and Education Committee, and a Finance and General Purposes Committee, to provide oversight in these areas and consider issues specific to the New Beacon Preparatory School. The day-to-day management of The New Beacon is delegated to the Head and the Director of Finance and Operations, as the key management personnel, who are supported by their Senior Management Team. Both the Head and Director of Finance and Operations attend the New Beacon Governing Body and Finance and General Purposes Committees, together with the Bursar or Finance Director of Tonbridge School. The Head attends all meetings of the Pastoral and Education Committee and also those of the Tonbridge School Governing Body.

The remuneration of The New Beacon Head is set by the Chairman of the New Beacon Governing Body through power delegated to him by the Tonbridge School Governing Body, with the policy objective of providing an appropriate incentive to encourage enhanced performance and of rewarding him or her fairly and responsibly for his or her individual contribution to the Charity’s successes. The remuneration of The New Beacon Director of Finance and Operations is set by the Head of TNB in consultation with the Tonbridge School Bursar. The remuneration of other staff at TNB is set by the TNB Board in consultation with the Tonbridge School Bursar.

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

Group Structure and Relationships

Business Relationships

The Group’s external suppliers, customers, and fundraising community (incorporating current and former pupils and parents; Sports Centre members; facility hirers and partners in both our educational and commercial activities) are crucial to the delivery of the School’s charitable aims and the operation of its trading subsidiary. Both parents and pupils are provided with terms and conditions ahead of joining the School, setting out each party’s rights and obligations. Similar terms and conditions are provided for all other customers and members of the School Community. The Charity works closely with its suppliers to maintain a reputation for high standards of business conduct and an expectation for the business relationship. Further details are provided on the Charity’s interaction with specific related and connected parties as noted below.

Related parties

Tonbridge School has a wholly owned subsidiary, Tonbridge Services Limited, whose results are consolidated into these financial statements. The subsidiary’s principal activity continues to be the retailing of School-related clothes and ancillary goods, together with the letting out of certain School facilities. The Company’s taxable profit for the year before gift aid was £801,461; further information is at Note 5.1 to the financial statements. Paragraph 3(u) of the Company’s Memorandum and Articles of Association was updated on 28 June 2019 to allow the Company to make charitable donations to a member of the Company that is a charity in accordance with an updated Article 21, which restricts the distribution of profits, save for a charitable donation under the Gift Aid Scheme in specified circumstances.

Tonbridge School also acts as sole Trustee to the Tonbridge School Foundation (TSF), Charity Number 1099162, which becomes a subsidiary by nature of this relationship; its results are consolidated into these financial statements. TSF’s principal activity is the advancement of education by the provision of grants, services and other resources (including support by any charitable means) to Tonbridge School. Its day-to-day operations are coordinated through the Tonbridge Society team and the Tonbridge Society Committee, with representatives from each of its constituent bodies, including members of Tonbridge School’s Governing Body; members of the School’s Senior Team and the Chairmen of both the Tonbridge School Parents’ Art Society and Old Tonbridgian Society represented on the Committee.

At its November 2020 Governing Body meeting, Tonbridge School (as sole Trustee) approved the establishment of The Tonbridge School Foundation Committee, a sub-committee to oversee the effective operation of the TSF in fulfilling its charitable objects according to applicable law and regulation. Its duties include the review and recommendation for approval by the Trustee of the TSF Annual Accounts and Report of the Trustee. The Committee’s membership comprises the Chairman of the Tonbridge Society Committee, providing a direct link with the umbrella organisation, and at least two independent members with suitable charitable experience appointed by the School’s Governing Body . The Headmaster, Bursar and Director of the Tonbridge Society also attend Committee meetings. The independent members are also members of the Tonbridge Society Committee. Further information on the TSF is provided at Note 5.2 to the financial statements.

Connected parties

The School maintains a close relationship with the Worshipful Company of Skinners which appoints the majority of its Governors, and which acts as Corporate Trustee to the Sir Andrew Judd Foundation, a charity with whom it has a similar relationship.

The Charity also works closely with St Augustine’s Chapel Charity which holds and manages the Chapel of St Augustine located within the grounds of the School. Moreover, it benefits from the generosity of a thriving network of Old Tonbridgians. The Old Tonbridgian Society is an association of former pupils of the School, which offers ex-pupils the opportunity to maintain friendships, continue interests and remain in contact. We greatly appreciate and acknowledge the support provided by former pupils and parents of both Tonbridge School and The New Beacon.

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

Connected parties - continued

Tonbridge School is a sponsor of The Marsh Academy, a non-selective secondary school located in New Romney, Kent. The Headmaster and Deputy Head Co-curricular act as Governors to the Academy. Further information on our Partnership activities can be found on page 20.

Other relationships

Tonbridge School actively supports the attainment of the highest standards in the Independent Schools sector, partly through networking with other major schools and partly through peer group studies for performance and quality evaluation. We also strive to optimise the use of our academic, cultural and sporting facilities by others, and aim to encourage in our pupils an awareness of both the local and wider community.

A summary of transactions with all related and connected parties whose results are not consolidated is at Note 29 to the financial statements.

Employment of the disabled

Tonbridge School is committed to securing equality of opportunity through the creation of an environment in which individuals are treated on the sole basis of their relevant merits and abilities. All members of the staff and Governors share this commitment. The School regards as unacceptable attitudes held by a person or group towards an individual with a physical disability which are offensive, discriminatory, or hostile towards the individual.

Tonbridge School’s policy is to recruit disabled workers for those vacancies that they are able to fill, providing all necessary assistance with initial training and on-going career development to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled to enable them to perform work identified as appropriate to their aptitudes and abilities.

Employee involvement

Tonbridge School’s policy is to consult and discuss with employees, through staff representative bodies and regular meetings, matters likely to affect employees’ interests. Information on matters of concern to employees are given through bulletins, reports and presentations which seek to achieve a common awareness on the part of the employees of the financial and economic factors affecting the School’s performance. The School’s academic staff, collectively referred to as the “Common Room”, hold regular meetings and presentations throughout the year, including meetings of the Pay and Conditions Committee (PCC) that includes representatives of various teaching staff constituents, the Headmaster, the Second Master and the Bursar. As well as receiving regular presentations, the nonacademic support staff are represented by the Support Staff Council, which acts as a forum for the exchange of ideas and information between the School’s management and support staff. It meets twice a year and is made up of members elected from all departments, together with the Bursar, Second Master and Director of Human Resources. Furthermore, as noted under Organisational Management above, the Joint Pay and Conditions Committee (JPCC) meets twice a year and makes recommendations to the Governors relating to the terms and conditions of employment for all staff except for the Headmaster, Bursar and Second Master. The School has a Voluntary Information and Consultation Agreement in place covering all School staff.

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

Environment

The Charity aims to minimise its impact on the environment and is committed to complying with all relevant environmental legislation. It plans its activities and operations to minimise waste, and to optimise energy saving opportunities in the accommodation and building refurbishments undertaken each year. The default methods adopted during planned refurbishments include but are not limited to energy efficient boiler upgrades; a rolling programme of LED and sensor lighting; roof and loft insulation; sensitive window glazing to reduce heat loss; plant room upgrades with temperature control; thermostatic heating controls, and water reducing restrictors to showers and toilets. This approach not only conserves energy but creates a harmonious, safe, and balanced environment for pupils and staff to work within.

The comparative energy and carbon data for the year, as compiled by the Charity’s Energy Consultant, is as noted below.

Streamlined Energy and Carbon Reporting (SECR) data for the period 1 July 2022 to 30 June 2023

UK energy use and associated greenhouse gas emissions

Annual energy usage and associated annual greenhouse gas (“GHG”) emissions are reported pursuant to the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (“the 2018 Regulations”) that came into force on 1 April 2019.

Organisational boundary

In accordance with the 2018 Regulations, the energy use and associated greenhouse gas emissions are for those assets owned or operated within the UK only as defined by the operational control boundary. This includes the Charity’s main senior school and the preparatory school which is controlled during the reporting period along with company vehicles and personal vehicles used for business mileage (“grey fleet”).

Reporting period

The annual reporting period is 1 July to 30 June each year and the energy and carbon emissions are aligned to this reporting period.

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

Environment – continued

Quantification and reporting methodology

The 2019 UK Government Environmental Reporting Guidelines and the GHG Protocol Corporate Accounting and Reporting Standard (revised edition) were followed. The 2023 UK Government GHG Conversion Factors for Company Reporting were used in emission calculations. The report has been reviewed independently by Briar Consulting Engineers Limited. The electricity and gas consumption were compiled from invoice records or estimated using the prorata estimation technique where unavailable. Grey fleet data was estimated using monthly averages. An average pence per litre was used to convert cost to litres for company owned vehicles. Mileage records were used to calculate emissions associated with grey fleet. Generally gross calorific values were used except for grey fleet mileage energy calculations as per Government GHG Conversion Factors.

The associated emissions are divided into mandatory and voluntary emissions according to the 2018 Regulations, then further divided into the direct combustion of fuels and the operation of facilities (scope 1), indirect emissions from purchased electricity (scope 2), and further indirect emissions that occur because of the Charity’s activities but occur from sources not owned or controlled by the organisation (scope 3).

Intensity ratio

The primary intensity ratio is total gross emissions in metric tonnes CO2e (mandatory emissions) per total pupil, which is the recommended ratio for the sector for consistency and comparability. This metric relates to UK operations only to align with the energy and emission reporting boundary and is also considered the most relevant to the Charity’s energy consuming activities and provides a good comparison of performance over time and across different organisations and sectors.

Energy efficiency action during current financial year

The School continues to adopt environmental strategies where applicable to a range of varied projects including:

Hill Side (Boarding House): Work undertaken has culminated in transforming the look and feel of this boarding facility to include the refurbishment of the heating and water infrastructure; boys’ bedrooms and latterly bathrooms, toilets, and common room spaces. The House has been insulated to reduce energy loss; LED, sensor lighting and thermostatic radiator valves (TRVs) have been installed, with TRVs being self-regulating, and designed to maintain a constant temperature in a room. Double glazed window refurbishments have contributed to reducing heat loss and energy leakage.

Smythe House (Day House ): A full house refurbishment which included double glazed windows, mitigating heat loss and energy leakage, with the full insulation of the upper floor roof sections and sixth form common room areas contributing to a reduced U-value, the U- Value being the rate of transfer of heat through a structure. LED and sensor lighting was installed throughout the House.

Judde House (Boarding House): The remodelling of the heating and water infrastructure in readiness for a major refurbishment at a future date. Phase 1 included the removal of loft water tanks and the installation of new water calorifiers in the plant room.

Private Accommodation refurbishments : included the installation of LED lighting, improved insulation, and replacement windows and Academic Projects: included the final phase of the refurbishment of Maths and Foreign Language classrooms, incorporating improved LED lighting, secondary glazing and radiator upgrades and improvements, all contributing to reducing energy loss; and the Cawthorn refurbishment, providing an integrated heat pump within the air handling unit to support energy efficient heating and the installation of secondary glazing, LED lighting throughout and a leak detection water monitoring system.

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

Environment – continued

Solar developments: the Charity is exploring an outsourcing opportunity to install solar panels on the roof space at the Tonbridge School Centre (TSC) , which will provide approximately 30% of the energy required for the TSC building improving the School’s environmental impact and working towards a future Net Zero strategy.

The New Beacon Primary School prioritises energy efficiency through regular maintenance of boilers and prompt repairs to optimise their efficiency. Their significant initiative involved the construction of a nursery with solar panels and a sedum roof. The installed PV panels, totalling 4.1KWp across ten panels, contribute to an annual CO2 offset of 966, demonstrating their commitment to sustainable energy practices.

OBJECTS AIMS, OBJECTIVES AND ACTIVITIES

Charitable Objects

The objects of the School (as amended on 6 May 2021) are the advancement of education: by the provision and conduct of a school in or near Tonbridge for boys as boarders and, if the Governors think fit, as day boys; by the provision and conduct or support of other schools; and by ancillary or incidental educational activities and other associated activities for the benefit of the community.

Aims and Intended Impact

Within these Objects, Tonbridge School aims to provide an excellent and broad education not only to boys between the ages of 13 and 18 at Tonbridge to ensure that each boy fulfils his potential and is able make a significant contribution in his chosen field(s) and in the adult world, but also to boys at The New Beacon preparatory school (and girls in Nursery).

School Ethos, Strategy and Policies

Tonbridge School aims to provide a caring and enlightened environment in which the talents of each individual flourish. We encourage boys to be creative, tolerant and to strive for academic, sporting and cultural excellence. Respect for tradition and openness to innovation are equally valued. A well-established House system at the heart of the School fosters a strong sense of belonging. Tonbridge seeks to celebrate its distinctive mixture of boarders and day boys; this helps to create a unique broadening and deepening of opportunity. We want boys to enjoy their time here, but also to be made aware of their social and moral responsibilities. Tonbridgians should enter the adult world with the knowledge and self-belief to fulfil their own potential and, in many cases, to become leaders in their chosen field. Equally, we hope to foster a life-long empathy for the needs and views of others: in the words of the great novelist and Old Tonbridgian, E.M. Forster: ‘Only Connect’.

Our strategy is focused on providing an unsurpassed education of excellence and breadth by:

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

Delivering the Charity’s strategy is dependent on the processes and policies it has in six key areas:

  1. Recruiting, retaining and developing the best and most committed teaching and support staff.

  2. Maintaining and upgrading its Schools’ facilities and equipment.

  3. Continuing to operate, fund and promote our extensive bursary (now referred to as ‘Foundation Awards’) and scholarships programmes

  4. Deepening partnerships and relationships between Tonbridge School and The New Beacon, following the merger, and also between The Marsh Academy, other local schools and the local community.

  5. Raising additional funds for development, and managing the Charity’s cash-flows and investments effectively;

  6. Marketing its Schools to prospective parents and admitting boys to the Schools, including girls to The New Beacon Nursery.

STRATEGIC REPORT

The Strategic Report for the purposes of the Companies Act 2006 comprises the sections below titled “Principal Activities and Objectives for the Year, Review of Achievements and Performance, Future Plans and Risk Management”.

Section 172 Statement

The Governors have undertaken their duties with regard to section 172 of the Companies Act 2006, recognising their obligation to act in the way in which they consider, in good faith, would most likely promote the success of the Charity for the benefit of its pupils and the wider School Community. Section 172 considerations are embedded in the decision-making process at Governor level and throughout the organisation. The Strategic Report detailed below identifies how, in the opinion of the Governors, the Charity has met its strategic objectives for the year under review and engaged with elements of the local and wider School Community in meeting its charitable aims and objects.

Principal Activities and Objectives for the Year

The principal activity of Tonbridge School is the provision of education in Tonbridge to boys aged 13-18, as well as supporting The New Beacon in the development of its pupils. The Charity’s continued success has ensured that the demand for places remains strong at both schools, with current indicators suggesting that Tonbridge School will

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

Principal Activities and Objectives for the Year – continued

continue to operate at full capacity for the foreseeable future, and that pupil numbers at both The New Beacon Preparatory School and its Nursery facility reflect continued growth.

The Charity’s objectives are set to meet its educational aims for boys at the School (recognising that education encompasses academic, co-curricular, pastoral, and social elements), and to provide educational and other benefits to the wider community.

In setting our objectives, and planning our activities, the Governors consider the Charity Commission’s general guidance on public benefit and its supplementary guidance on advancing education.

This year, the Charity has continued to maintain or improve performance across eleven priority and policy areas identified in its strategy. Its achievements in each area are detailed in the following section.

  1. Academic: maintaining high academic standards for entry, developing the curriculum, focusing on excellent teaching and learning across all subjects, and benchmarking academic standards against public examinations and independent value-added criteria.

  2. Co-curricular: offering a broad co-curricular programme and encouraging all boys of all abilities to participate in it as widely as possible.

  3. Pastoral: maintaining high pastoral standards, providing appropriate support structures for boys, and having robust child protection, anti-bullying and health and safety policies and cultures.

  4. Community Engagement: encouraging boys and staff to participate in (and opening the School’s facilities for) a wide range of activities and events of benefit to individuals in need, the local community, and the environment.

  5. Staff: maintaining teaching staff expertise through their continued professional development and appraisal, combined with the recruitment of suitably qualified staff.

  6. Facilities: investing in academic, sporting, pastoral and other educational facilities.

  7. Foundation Awards: maintaining our extensive Foundation Awards (i.e. means-tested bursary) programme which aims to enable any bright and talented boy to access a Tonbridge education regardless of his background not only by ensuring we attract the most academically able and talented boys to the School, but also by developing the diversity and richness of the academic, pastoral, and co-curricular environment for all boys, and to maintain or raise the level of achievement for all.

  8. Partnerships: developing our partnership with the Marsh Academy, continuing and expanding relationships with local State primary and prep schools, and using the School’s facilities for the benefit of the local community, including running holiday courses for younger children during holiday periods.

  9. Fundraising and Financial Management: raising funds for Foundation Awards and development projects, managing cash and costs effectively, and securing additional income from the School’s facilities when they are not in use.

  10. Marketing and Admissions: communicating what the School has to offer via our website, via targeted advertising, through primary and prep schools, and through a number of events held both at and outside the School, with a renewed focus on the ‘only-connect’ branding.

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

Principal Activities and Objectives for the Year – continued

  1. The New Beacon: supporting and developing the staff and pupils at the New Beacon School following the successful merger of the two entities on 31 August 2021. The Schools’ Governing bodies and Senior Teams continue to work closely to align the schools in terms of overall strategy, combining respective experience and expertise to provide an educational pathway for boys aged from 3 to 18 years, with girls in the Nursery.

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

At the start of the Michaelmas Term 2022, there were 795 boys in Tonbridge School, comprising 454 boarders and 341 day boys. The Governors of the School, as Trustees of the Charity, were satisfied with the performance and achievements across all of the Charity’s priority and policy areas.

1. Academic

The School recorded outstanding exam results in academic year 2022/23:

96 boys achieved nothing lower than A/A grades at A-level, with 29 boys making the ‘clean sweep’ of an A in all their subjects while a Tonbridge student received the top score in the country from examination board OCR for its A-level Mathematics B (MEI) qualification: he was the top performer from approximately 6,500 candidates.

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

1. Academic – continued

Boys achieved many notable individual and team academic successes in 2022/23, some of which are summarised as follows:

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

1. Academic – continued

2. Co-Curricular

The School offers a wide range of co-curricular activities with competitive sports, clubs and societies, musical and dramatic groups, and the popular Combined Cadet Force. Wide participation in co-curricular activities is encouraged at both House and School levels.

Achievements and successes included the following:

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT For the year ended 30 June 2023

2. Co-Curricular – continued

School’s former Composer-in-Residence, Hywel Davies. The School’s Symphony Orchestra performed Mahler’s Symphony No.4 in its entirety.

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

2. Co-Curricular – continued

3. Pastoral

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

3. Pastoral – continued

4. Community Engagement

We ensure that our students and staff are meaningfully connected to the wider world, developing a strong sense of belonging to, and serving, their communities; that our students become well-rounded individuals who are grounded and outward looking, and who will leave the school expecting to make a positive contribution to their global and local communities; that our community benefits from the School’s facilities and expertise; that our students understand their impact on our environment, and seek ways to make this less negative; and that the diversity of our student population is increased for the benefit of all.

The school has strong partnerships with a range of local

organisations including ten local primary schools, secondary schools, special schools and charitable organisations with whom it works throughout the school year. These organisations share our on-site facilities, and many welcome our boys to their sites, where they learn through working with others. The below list highlights some key initiatives:

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

4. Community Engagement - continued

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

4. Community Engagement - continued

School Community Fundraising, September 2022 to August

2023 : The School community supports a range of charity partners throughout the year. The whole school raised more than £113,000 for local and international charities, with events such as Pink Day supporting Breast Cancer Kent, as well as oneoff campaigns and sponsored events. Individual Houses also ran a number of challenges. Below is a summary of highlights:

Giving Day 2023: The School’s third Giving Day took place on 28 - 29 June 2023. The aim was to bring the Tonbridge School community together to raise as much money as possible for widening access but, equally importantly, to continue to raise awareness, amongst our internal and external audiences, about why Foundation Awards matter.

The day highlighted the strong links with local Primary Schools. The school site was filled with over 700 visiting children who enjoyed over 28 different sport, artistic and academic activities, from rocketry to dance, maggot racing to performance poetry. The Novi were responsible for hosting the children, ensuring they reached their activities on time and encouraging everyone to ‘have a go’ and try something new. The activities themselves were run by the Lower Sixth. Tonbridge boys rose to the challenges of these roles, resulting in a fantastic day. This year the day culminated in all our guests enjoying a performance from the school symphony orchestra in Chapel before a falconry display on the Head.

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

4. Community Engagement - continued

An additional, key element of Giving Day is our twelve off-site projects, one for each House, involving all Second and Third Years and which give back to the local community. Many projects were in local primary schools, and ranged from creating gardens, ponds and raised beds, running sports festivals and helping to create costumes and sets for a school production. Other projects included working with local charities who support young adults with additional needs, and including making a sensory room, building a ‘stepless slide’, hosting a music festival and a family fun day. These projects strengthen links within our community and enable the boys to understand that their time and effort is of value to others.

5. Staff and employee engagement

Our staff are fundamental to the operation of the Charity, and the Group’s employment policies seek to respect the individual and enhance career opportunities regardless of age, gender, religion, or race. The Charity recognises its obligations towards disabled persons and considers applications for employment made by such persons (Employment of the disabled: page 4), and engagement with the Group’s staff body is principally promoted through the three representative bodies, the Pay and Conditions Committee representing the “Common Room”, the Support Staff Council, and the Joint Pay and Conditions Committee (Employee involvement: page 4).

The School continued to implement and monitor its policies and processes aimed at recruiting, retaining, and developing the best and most committed teaching and support staff, and successfully recruited 9 new full-time and part-time teachers for the 2022/23 academic year, including replacing teachers due to retire or move on to other (often senior) roles in other schools and organisations. Important policies and processes at the School included:

The contribution of the School’s staff to the success of the School was assessed as part of a Regulatory Compliance and Educational Quality Inspection in November 2021. One Key Finding in the Inspection Report was that due to the efforts and capabilities of staff across the School, “the school meets the standards in the schedule to the Education (Independent School Standards) Regulations 2014, the National Minimum Standards for Boarding Schools 2015 and associated requirements and no further action is required as a result of this inspection”. In addition, given the expertise and commitment of teaching and other staff, further Key Findings were that “the quality of the pupils’ academic and other achievements is excellent” and that “the quality of the pupils’ personal development is excellent”.

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

6. Facilities

To achieve the School’s aims, its facilities need to provide the best possible learning environment for the boys and teaching facilities for the staff, support excellent pastoral care, and make the School feel welcoming, safe and easy to get around. The School’s facilities are on an extensive campus close to the centre of Tonbridge and include many important historic and impressive buildings, 11 of which are Grade II listed. The estate includes academic buildings, 7 boarding houses and 5 day houses, a large and well-equipped Sports Centre, over 150 acres of grounds and over 90 units of owned and rented residential accommodation of various types.

The programme of Masterplan and Major Projects developments increased during the year as the School progressed with significant boarding and day house refurbishments, and the conversion of the former Cawthorn Lecture Theatre in to a staff Common Room, to facilitate the provision of additional classrooms within the vacated space.

The School spent approximately £6,900k on the maintenance, improvement, and development of its facilities in 2022/23, including:

In addition, the School spent approximately £1,100k on IT improvement, maintenance, development, and support to enable better teaching, effective administration and improved communication. The School maintained an effective process to identify and prioritise facilities repairs, improvements, and developments, and continued to deliver its planned preventative maintenance programme.

7. Foundation Awards (previously called Bursaries and Scholarships)

Tonbridge School continued to provide a wide range of Foundation Awards, scholarships, and means-tested bursaries to enable any bright and talented boy to access a Tonbridge education regardless of his background, help ensure we attract the most academically able and talented boys to the School, develop the diversity and richness of the academic, pastoral, and co-curricular environment for all boys, and to maintain or raise the level of achievement for all. A total of approximately £3,220k (9.6% of gross tuition fees) was provided for bursaries, scholarships, assisted places and other subsidies and discounts to both current and future pupils of Tonbridge. Of this, £3,131k was provided to boys in the School, being £2,155k (66.9%) to boys with Foundation Awards (whose parents were means-tested), with £349k (10.8%) provided to other boys who won academic and other scholarships, £627k (19.5%) provided in other awards (including sibling discounts and staff remission), and £89k (2.8%) to boys at preparatory schools as part of the School’s support of Junior Foundation Awards and Choristers.

Most Foundation Awards (means-tested awards) were made to boys successful in entry examinations in the year preceding entry, and all awards were made following a detailed financial assessment that considered parental income, disposable income and assets. A small number of Foundation Awards were made to boys already at the School whose parents were facing unexpected financial difficulties (Hardship awards). In addition, to make the School more accessible to boys in state primary schools, the School’s Junior Foundation Award programme continued to give

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

7. Foundation Awards (previously called Bursaries and Scholarships) - continued

pupils the opportunity to apply in Year 6 (their final year in primary school) for entry in Year 9, making allowances for the educational background of applicants, and awarding means-tested funding for successful applicants for their time at Tonbridge, as well as for Years 7 and 8 at another school. In 2022/23, 66 boys at the School received a total of £2,155k in means-tested ‘Foundation Award’ funding, 6.5% of Gross Fee Income.

Of the 66 boys at the School, 25 boys received 100% funding, 42 boys over 70% funding, and the average boy receiving means-tested support received 75% of funding towards fees. Parents receiving means-tested support were, once again, asked to provide an update of their financial circumstances annually.

Despite the demands placed on the School’s finances, the Governors of the School as Trustees of the Charity remained committed to the extensive ‘Foundation Award’ (i.e. bursary) programme which aims to: enable any bright and talented boy

to access a Tonbridge education regardless of his background; help ensure we attract the most academically able and talented boys to the School; develop the diversity and richness of the academic, pastoral, and co-curricular environment for all boys; and to maintain or raise the level of achievement for all. The School’s Foundation Award programme continued to be promoted widely: on the School’s internet site, in local schools and feeder prep schools, and in relevant publications, and has resulted in an increase in the number of boys benefiting from Foundation Awards from 46 in 2019/20 to 66 in 2022/23.

8. Partnerships

The School’s partnerships programme had three main components: developing our partnership with The Marsh Academy, continuing and expanding relationships with local schools, and using the School’s facilities for the benefit of the local community.

Tonbridge School has been one of the sponsors of The Marsh Academy since June 2006. The Marsh Academy is in the heart of the Romney Marshes and is the only secondary school in the area. Whilst the two schools may be very different places they share the same overall goal, which is to develop their pupils to the best of their potential. Features of the partnership included providing:

Tonbridge School continued to work closely with other schools, offering staff time and expertise and facilities to provide educational benefits to children outside the School. In addition to the Community Engagement benefits described above, in 2022/23 the School provided:

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

8. Partnerships – continued

The School continued to share its facilities with the local community. In addition to the activities described above, in 2022/23 the School provided:

9. Fundraising and Financial Management

The Statement of Financial Activities is at page 35. An analysis of movements on the various funds is included at Note 20 to the financial statements.

The Charity’s principal fundraising activity is carried out by its subsidiary The Tonbridge School Foundation (TSF) with the support of the School’s Tonbridge Society. The TSF’s Corporate Trustee (Tonbridge School) takes its responsibilities under the Charities (Protection and Social Investment) Act 2016 seriously and has considered the implications on the TSF’s activities. The TSF does not actively raise funds or solicit donations directly from the general public, with support being sought from a network of current and former parents; Old Tonbridgians and friends of the wider School community, established over a period of time. It does not work directly with commercial sponsors or fundraisers in relation to its fundraising, and no complaints were received during the year in respect of this activity.

During the year, TSF continued to focus its activities in the following areas:, through the operations of the Tonbridge Society:

Engagement

Enrichment

Enhancement

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

9. Fundraising and Financial Management - continued

TSF’s main activity has been to create more opportunities for students and those in our community to benefit from the School’s outstanding facilities, expertise, and education. During the year, the Charity carried out the following projects and activities:

Engagement

Enrichment

Enhancement

TSF Fundraising Income and Expenditure (£)
2018/19
2019/20
2020/21
2021/22
2022/23		 Total
TSF Total Income / Total Incoming Resources
573,204
535,568
1,335,509
1,028,317
1,306,313
Estimated Fundraising Expenditure
277,175
260,402
225,361
303,394
282,675		 4,778,911
1,349,007
Total Income Received % Expenditure
207%
206%
593%
339%
462%		 354%

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

The Governors are satisfied with the Group’s Net Movement in Funds for the year of £2,263k, (£12,407k in 2021/22, recognising the one-off effect of the merger with The New Beacon which accounts for £10,080k of the Net Movement in Funds for the year), and the Decrease in Cash for the Year of £1,927k (2021/22: Increase in Cash of £1,446k of which £3,193k reflected the one-off effect of the merger with The New Beacon). The Governors are continuing in their strategy of deploying all Net Income towards the School’s charitable objects – primarily the advancement of education.

The parents of boys at both Tonbridge School and The New Beacon have the assurance that all income, as a Charity, must be applied for educational purposes. As an educational Charity, the Schools receive tax exemption on their educational activities and investment income and are also entitled to an 80% reduction on business rates on the property occupied for charitable purposes. The financial benefits the Charity receives from these tax exemptions are all applied for educational purposes and help it maintain the bursary and partnership programmes described above.

10. Marketing and Admissions

The School has two main intakes: at the age of 13 (Year 9) normally with places for up to 150 boys, and at the age of 16 (Year 12) with up to an additional 20 places available; the School can also take up to 5 boarding boys at the beginning of Year 10. The School has an examination-based entry system, with clear standards for entry; details of the admission processes and examination are posted on the School’s website. While the School only admits boys and is academically selective (to ensure that potential pupils can cope with the pace of learning and benefit fully from the education the School provides), a boy’s economic status, ethnicity, race, religion or disability do not form part of the School’s selection process. A dedicated small team of Admissions staff led by the Director

of Admissions and Marketing, maintains strong contact with parents and current schools though the admissions process to ensure it works as smoothly as possible for all concerned.

The School started the new academic year, in Michaelmas Term 2023, with 806 boys, comprising 460 boarders and 346 day boys, with termly fees set at £16,648 for boarders and £12,490 for day boys, reflecting a 6.85% increase over the Summer 2023 termly fee. In setting the fee increase for 2023/24 the Governors have been mindful of the high cost, for current and prospective parents, of the education provided for their boys, and the rising cost of living.

Overall, the Governors of the School as Trustees of the Charity were satisfied that the achievements detailed above clearly demonstrate that the School is advancing education, providing benefits to the community, and aiming to enable any bright and talented boy to access a Tonbridge education regardless of his background.

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

11. The New Beacon

This year saw the retirement of Mike Piercy as Headmaster after fifteen years of outstanding service to the School. His retirement was marked by a series of farewell events celebrating his time at The New Beacon attended by current and former pupils, parents, staff and governors.

Following her appointment as Head-Elect, Sarah Brownsdon, formerly Deputy Head and Acting Headmaster of Dulwich Prep London, had the opportunity for an extended handover during the Lent Term, during which she was able to meet parents, staff and boys and to visit local senior schools. Sarah officially began her tenure as Head in the Summer Term.

The Independent Schools Inspectorate (ISI) conducted a Regulatory Compliance Inspection in May 2023 which identified some areas in which action was required to ensure that all relevant standards were being met. The School implemented a thorough action plan and was assessed in November to be successfully meeting all standards. The Department for Education has confirmed two material changes for the School to admit pupils from the age of 3 and to accept girls into its Early Years Provision in the Nursery. This positive outcome has resulted in the School being able to admit girls to the Nursery from January 2024 and pupils from the age of 3, which will place The New Beacon in a strong position in the local market. With current numbers standing at 312 from September to December 2023 moving to 330 from May 2024, the ability to recruit girls into the nursery is an exciting development.

The construction phase of the new nursery facility continued during the year, with the new facility opening on 9 January 2024 providing a beautiful, purpose-built setting in which to establish the 3+ offering, with the aim of emphasising an outstanding teacher-led, play based education combined with outdoor forest school learning opportunities. Nursery pupils will benefit from specialist teaching in PE, swimming and music.

At the other end of the School, pupils continue to progress on to a range of top senior schools, winning not only academic scholarships but also awards in music, sport, drama and art. The weekly flexi-boarding provision continues to provide a further support mechanism for many families as well as a taste of boarding for those boys moving onto full boarding in year 9. Transporting boys to School and extending the range of the bus routes has been a target to attract pupils from further afield. The New Beacon bus stop at Tonbridge School has been a welcome addition to the route, visibly reinforcing the link between the two schools.

Work progressed on widening the co-curricular offering to deliver opportunities for all boys, whatever their interests, to get involved beyond the classroom before, after and during the school day. This has been incorporated into the base fee from September 2023 and has been met with a very positive response from parents and boys. This is in addition to the enhanced before and after school provision which has resulted in higher numbers of boys joining school from 7.30am for breakfast and staying until 6.30pm for dinner. A highlight of the year was the whole school festivities for the King’s Coronation, including an opportunity for the boys to record one of the Anthems commissioned by the King and conducted by its composer.

The New Beacon continued with its established bursary programme, offering means tested financial assistance through bursaries and hardship funding. Bursaries are available to support the admission of boys from the age of seven, providing access to children from families who would otherwise not be able to afford an independent school education. Hardship funding is available to those families who find themselves in altered financial circumstances and is normally offered for a maximum of one year, being reviewed on a termly basis. The School continues to support the Junior Foundation Scholarship programme with Tonbridge School providing joint funding for pupils in Year 7 and 8 at The New Beacon, before moving on to Tonbridge for their senior school years. Under this programme funding is available for up to 110% of tuition fees. Fee remission totalled £217k for the year under review, including £166k in means tested financial assistance and £51k in other awards, including staff remission. Governors continue to investigate ways of providing support to families and increase this figure over the coming years.

Marketing, Finance and HR are areas where The New Beacon is benefiting from the expertise and experience at Tonbridge School along with the co-curricular offering, where Tonbridge pupils have been supporting younger boys with sailing and squash. Subject-specific initiatives in Science and PSHCE have been enjoyed and will hopefully continue across the broader curriculum.

24

Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

RESERVES POLICY

Note 19 to the financial statements show the assets and liabilities attributable to the various funds.

Unrestricted funds, defined as funds available for use which exclude fixed assets and long-term creditors, amount to £13,543k, being the net of the balances attributable to the Tonbridge School General Fund, The New Beacon General Fund, and The TSF General Fund, with the remaining unrestricted funds designated for the Fees in Advance Scheme, Tonbridge Services Limited and the provision for deficit pension contributions and the fair value of the interest rate swap, which are accrued as liabilities under FRS102.

The School has formulated a strategic development programme identifying development activities for the short to medium term. The Governors’ reserves policy is to maintain unrestricted funds at a level to allow sufficient liquidity for normal operations and to support the development activity. The Governors regularly review the level of reserves, which are targeted at a minimum of 5.0% of net fee income plus a substantial allowance to accommodate the cyclical nature of the Charity’s fee income, the staged redemption of fundraised income and to support the School’s Masterplan cash flow. The current level of reserves held meets the target set by the Governors.

GOING CONCERN

The Governors prepare a detailed long-term plan having regard to the School's financial and physical resources, so that at all times the School retains the strength and flexibility to respond to contingencies and to longer term needs that may not be currently foreseen. The Governors consider that the School and the Group have adequate resources and flexibility for the foreseeable future and consequently the adoption of the going concern basis is appropriate in preparing the financial statements.

FUND ACCOUNTING

The funds under the Governors’ control are categorised as detailed in Note 1.12 and comprise:

Unrestricted funds:

Designated funds:

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Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

Restricted funds:

26

Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT For the year ended 30 June 2023

Restricted funds - continued

Endowed funds:

INVESTMENT POLICY AND OBJECTIVES

The Charity’s investment powers are governed by its Memorandum and Articles of Association, which permits the Charity to deposit and to invest funds in any manner after obtaining expert financial advice. The Governors are permitted to delegate investment management under specified conditions. The Governors’ investment policy is to ensure that surplus funds are deposited to maximise returns whilst managing risk conservatively and ensuring capital preservation where appropriate, and to match the return on the invested Fees in Advance Scheme to the maturation profile of the related liability to provide School fees in future years.

HSBC Global Asset Management (UK) Limited was appointed as Investment Manager in June 2012. Whilst the Group’s assets continue to be managed by HSBC Global Assets Management (UK) Limited the operational day to day relationship rests with the HSBC Private Bank Charities Team. Investment strategies have been identified and approved to meet the Group’s investment objectives. The investment strategy and policy are monitored by the Finance and General Purposes Committee, as is investment performance. The Group’s portfolio is invested in balanced and growth and income funds. Trustees are satisfied with the portfolio return and performance for the year under review given the on-going impact of other world events on investment holdings globally.

27

Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

PRINCIPAL RISKS AND UNCERTAINTIES

The Governors are mindful of the economic climate and consider the affordability of fees by parents across the independent sector to be a principal risk faced by the Charity and the Group. The level of fee increase is subject to rigorous review as part of the annual budget setting process to ensure that this is set at an appropriate level to support the ongoing operations and development of the School, without placing an unacceptable burden on current and prospective parents. The prevailing global economic and political climate remain on-going risks during the current financial year, together with Safeguarding, which is always a significant area for risk management within a School environment and is subject to stringent management. The full portfolio of risks monitored by the Governors covers the following areas:

Risk Management

The Governors have examined the major risks to which the Charity is exposed and have developed systems to monitor and control these risks to mitigate any impact they may have on the School’s future. A formal review of the Charity’s risk management process is undertaken annually. The key controls used by the Charity include:

It is recognised that no system can give an absolute assurance against major risks.

28

Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

FUTURE PLANS

In the current financial year, the School will review its strategic priorities and, under the leadership of James Priory, the Headmaster, will aim to maintain or improve performance across all eleven priority and policy areas identified in the School’s strategy:

ACOUNTING AND REPORTING RESPONSIBILITIES

Statement of Governors’ responsibilities – Charitable Company

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

Company law requires the Governors 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 the Group and of the incoming resources and application of resources, including the income and expenditure, of the Group for that period. In preparing these financial statements, the Governors are required to:

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

In so far as the Governors are aware:

29

Tonbridge School

DIRECTORS’ AND GOVERNORS’ REPORT

For the year ended 30 June 2023

Auditor

A resolution proposing that Saffery LLP be re-appointed as Auditor of the Charity will be put to the Annual General Meeting.

The Directors’ and Governors’ Report, which includes the Strategic Report on pages 8 to 30, was approved by the Governors on 21 February 2024 and signed on their behalf by:

MF Dobbs Trustee – Tonbridge School

30

Tonbridge School

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

For the year ended 30 June 2023

Opinion

We have audited the financial statements of Tonbridge School (the ‘Parent Charitable Company’) and its subsidiaries (the ‘Group’) for the year ended 30 June 2023 which comprise the Consolidated Statement of Financial Activities, Consolidated Summary Income and Expenditure Account, Balance Sheets, Consolidated Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group and the Parent 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 Governors’ 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 group or the parent 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 Governors with respect to going concern are described in the relevant sections of this report.

Other information

The Governors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditor’s Report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of 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.

31

Tonbridge School

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

For the year ended 30 June 2023

Other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the Parent Charitable Company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ and Governors’ Report.

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

Responsibilities of Governors

As explained more fully in the Statement of Governors’ Responsibilities set out on page 29, the Governors (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 Governors determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Governors are responsible for assessing the Group and Parent 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 Governors either intend to liquidate the Group or the Parent Charitable Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

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

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. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

32

Tonbridge School

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

For the year ended 30 June 2023

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the Group and Parent Charitable Company’s financial statements to material misstatement and how fraud might occur, including through discussions with the Governors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the Group and Parent Charitable Company by discussions with Governors and updating our understanding of the sectors in which the Group and Parent Charitable Company operate.

Laws and regulations of direct significance in the context of the Group and Parent Charitable Company include The Companies Act 2006 and guidance issued by the Charity Commission for England and Wales.

Further the Group is subject to other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, through significant fine, litigation or restrictions on the Group’s operations. We identified the most significant laws and regulations to be the Independent School Standards as found in the Education and Skills Act 2008 and guidance issued by the Department for Education.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the Parent Charitable Company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the Parent Charitable Company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify noncompliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor’s Report.

Use of our report

This report is made solely to the Parent 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 Parent Charitable Company’s Members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Parent Charitable Company and the Parent Charitable Company’s Members as a body, for our audit work, for this report, or for the opinions we have formed.

33

Tonbridge School

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

For the year ended 30 June 2023

Cara Turtington Senior Statutory Auditor For and on behalf of Saffery LLP

Chartered Accountants Statutory Auditors

71 Queen Victoria Street London EC4V 4BE

Date: 14 March 2024

Saffery LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

34

Tonbridge School

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

For the year ended 30 June 2023

Note
INCOME
Income from charitable activities
School fees receivable
3
Other income
4
Other trading activities
Trading income
5
Other commercial income
5
Investments
Investment income
6
Bank and other interest
7
Donations and legacies
Grants and donations
8
Total income
EXPENDITURE
Costs of raising funds
9
Trading expenditure
Other income-generating activities
Financing costs
10
Investment management
Fundraising and development
Charitable activities
Education and grant making
9
Total expenditure
Net income before transfers
and investment gains/(losses)
Realised investment gains/(losses)
Unrealised investment gains/(losses)
Net income for the year
Actuarial gains/(losses) on
pension scheme
Transfers between funds
20
NET MOVEMENT IN FUNDS		 Unrestricted
Funds
£
36,156,496
1,551,353
2,882,434
4,579
0
106,704
1,624,810		 Restricted
Funds
£
0
0
0
0
120,592
6,852
968,894		 Endowed
Funds
£
0
0
0
0
0
0
0		 2023
2022
Total
Total
£
£
36,156,496
34,864,563
1,551,353
1,539,976
2,882,434
2,383,338
4,579
4,583
120,592
73,752
113,556
7,898
2,593,704
11,203,310
43,422,714
50,077,420
1,063,625
921,443
344,441
276,428
(297,063)
(368,554)
32,713
30,397
628,166
674,209
1,771,882
1,533,923
39,637,597
36,233,460
41,409,479
37,767,383
2,013,235
12,310,037
(7,278)
41,548
59,376
(248,614)
2,065,333
12,102,971
198,051
304,253
2,263,384
12,407,224
0
0
2,263,384
12,407,224
42,326,376 1,096,338 0
1,063,625
344,441
(297,063)
0
628,166		 0
0
0
27,449
0		 0
0
0
5,264
0
1,739,169
39,633,197		 27,449
4,400		 5,264
0
41,372,366 31,849 5,264
954,010
0
0		 1,064,489
(7,883)
41,107		 (5,264)
605
18,269
954,010
198,051		 1,097,713
0		 13,610
0
1,152,061
389,240		 1,097,713
(389,240)		 13,610
0
1,541,301 708,473 13,610

35

Tonbridge School

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

For the year ended 30 June 2023

NET MOVEMENT IN FUNDS
(brought forward)
Fund balances brought forward at
1 July 2022
Fund balances carried forward at
30 June 2023		 Unrestricted
Funds
£
1,541,301
40,333,177		 Restricted
Funds
£
708,473
4,720,271		 Endowed
Funds
£
13,610
504,320		 2023
2022
Total
Total
£
£
2,263,384
12,407,224
45,557,768
33,150,544
47,821,152
45,557,768
41,874,478 5,428,744 517,930

The notes on pages 40 to 75 form part of these financial statements.

36

Tonbridge School

CONSOLIDATED SUMMARY INCOME AND EXPENDITURE ACCOUNT

For the year ended 30 June 2023

Gross income
Total expenditure
Realised investment gains/(losses)
Unrealised investment gains/(losses)
Net income for Companies Act purposes		 2023
2022
£
£
43,422,714
50,077,420
(41,404,215)
(37,763,381)
(7,883)
36,280
41,107
(217,745)
2,051,723
12,132,574

This information has been derived from the Statement of Financial Activities on pages 35 to 36.

The notes on pages 40 to 75 form part of these financial statements.

37

Tonbridge School

BALANCE SHEETS

As at 30 June 2023

Company Registration Number 04787097
Note
FIXED ASSETS
Tangible assets
12
Investments
13
Investments in subsidiary
14
CURRENTS ASSETS
Stock
15
Debtors
16
Cash and deposits
CURRENT LIABILITIES
Creditors payable within one year
17
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
LONG-TERM LIABILITIES
Creditors payable after one year
17
NET ASSETS BEFORE PROVISIONS
Defined Benefit Pension Scheme Liability
NET ASSETS
REPRESENTED BY:
Endowed Funds
19
Restricted Funds
19
Unrestricted Funds
19
TOTAL FUNDS		 Group
2023
£
45,034,166
7,239,820
0		 Group
2022
£
44,630,174
5,702,513
0		 School
School
2023
2022
£
£
45,026,447
44,619,881
4,408,878
3,578,623
355,000
355,000
49,790,325
48,553,504
50,729
53,531
4,218,702
2,819,750
14,377,460
16,787,950
18,646,891
19,661,231
(6,937,473)
(7,198,754)
11,709,418
12,462,477
61,499,743
61,015,981
(16,837,942)
(17,330,575)
44,661,801
43,685,406
(1,914,355)
(2,272,963)
42,747,446
41,412,443
0
0
2,680,285
2,683,482
40,067,161
38,728,961
42,747,446
41,412,443
52,273,986
292,046
3,318,060
17,903,007		 50,332,687
276,389
2,215,867
19,830,807
21,513,113 22,323,063
(7,213,650) (7,494,444)
14,299,463 14,828,619
66,573,449 65,161,306
(16,837,942) (17,330,575)
49,735,507
(1,914,355)		 47,830,731
(2,272,963)
47,821,152 45,557,768
517,930
5,428,744
41,874,478		 504,320
4,720,271
40,333,177
47,821,152 45,557,768

The notes on pages 40 to 75 form part of these financial statements.

No separate charity only Statement of Financial Activities has been prepared by the Charity as permitted by section 408 of the Companies Act 2006. The Charity’s total income for the year was £41,552,027 (2022: £48,548,867) and the net income / (expenditure) for the year was £1,335,003 (2022: £11,878,480).

The financial statements on pages 35 to 75 were approved by the board on the 21 February 2024 and were signed on its behalf by:

MF Dobbs Trustee - Tonbridge School

38

Tonbridge School

CONSOLIDATED CASH FLOW STATEMENT For the year ended 30 June 2023

Group
Note
NET CASHFLOW FROM OPERATING ACTIVITIES
21
Cash transferred on merger with The New Beacon
8
CASHFLOWS FROM INVESTING ACTIVITIES
Investment income
Interest received
Capital expenditure and financial investment
Purchase of tangible fixed assets
12
Purchase of investments
13
Sale of investments
Net cash used in investment activities
Financing
Increase in bank borrowing & other loans
23
Decrease in finance lease agreements
23
Capital element of loan repayment
23
Net cash used in financing activities
(DECREASE) / INCREASE IN CASH IN THE YEAR
22
CASH AND CASH EQUIVALENTS AT THE START OF THE YEAR
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash in hand
Notice deposits (less than 3 months)		 2023
2022
£
£
3,166,035
2,895,669
0
3,192,813
120,592
73,752
94,114
6,076
214,706
79,828
(2,335,661)
(453,069)
(4,556,244)
(4,197,756)
3,071,035
4,042,609
(3,606,164)
(528,388)
138,343
2,700,000
(222,198)
(174,127)
(1,403,816)
(3,447,047)
(1,487,671)
(921,174)
(1,927,800)
4,638,920
19,830,807
15,191,887
17,903,007
19,830,807
13,896,728
19,117,141
4,006,279
713,666
17,903,007
19,830,807

The notes on pages 40 to 75 form part of these financial statements.

39

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

1. Accounting policies

Having reviewed the funding facilities available to the Charity together with the expected ongoing demand for places and the Charity's future projected cash flows, the Governors have a reasonable expectation that the Charity has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Accounting and Reporting Responsibilities on page 29.

The accounts present the Consolidated Statement of Financial Activities (SOFA), the Consolidated Cash Flow Statement and the Consolidated and Charity Balance Sheets, comprising the consolidation of the School with its wholly owned subsidiaries Tonbridge Services Limited and Tonbridge School Foundation.

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

Grants awarded are expensed as soon as they become a legal or operational commitment. Governance costs comprise the costs of complying with constitutional and statutory requirements. Intra-group sales and charges between the Charity and its subsidiaries are excluded from trading income and expenditure.

40

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

School buildings: 2% to 6.67% p. a. Furniture & equipment: 20% to 33.3% p. a. Motor vehicles: 20% to 33.3% p. a.

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

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

Permanent endowment arises where a donor intends the gift to be retained permanently for use by the Charity.

Endowment funds are accounted for similarly, except that all capital can be converted into income for spending either at the Governors' own discretion or else upon the happening of some event contemplated by the donor

41

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

Financial assets are recognised in the Charity's statement of financial position when the Charity becomes party to the contractual provisions of the instrument.

Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.

42

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

1.15 Financial instruments (continued)

Classification of financial assets

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period.

The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Classification of financial liabilities

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate

43

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2023

Classification of financial liabilities (continued)

that exactly discounts estimated future cash payments through the expected life of the financial liability to the net carrying amount on initial recognition.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Charity after deducting all of its liabilities.

In the application of the Charity's accounting policies, the Governors 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 assumptions are based on historical experience and other factors that are 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.

Critical judgements in applying the Charity's accounting policies

There are no critical accounting judgements in 2023 or 2022.

Critical accounting estimates and assumptions

Defined benefit pension schemes: The Charity has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including life expectancy, asset valuations and discount rate on corporate bonds. Management estimates these factors in determining the net pension liability in the Balance Sheet. The assumptions reflect the historical experience and current trends. The valuation is particularly sensitive to the impact of the discount rate on the schemes' liabilities. See Notes 26 and 27 for the disclosures relating to the defined benefit schemes.

3 Charitable Activities – Fees Receivable

School fees receivable consist of:
Tonbridge School
Gross tuition fees
Less: total bursaries, scholarships and other subsidies and discounts
The New Beacon
Gross tuition and nursery fees
Less: total bursaries, scholarships and other subsidies and discounts		 2023
2022
£
£
33,363,369
32,160,066
(2,574,081)
(2,362,616)
30,789,288
29,797,450
5,584,200
5,190,854
(216,992)
(123,741)
5,367,208
5,067,113
36,156,496
34,864,563

44

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

4 Charitable Activities – Other income

Music fees
Admissions fees
Registration and deposits forfeited
Term-time courses and Sports Academies fees
Commissions, rentals and other income		 2023
2022
£
£
301,636
291,898
409,171
521,553
167,750
154,000
452,780
415,067
220,016
157,458
1,551,353
1,539,976

5 Trading Income

Tonbridge Services Limited
Other income generating activities
Other income		 2023
2022
£
£
2,882,434
2,383,338
2023
2022
£
£
4,579
4,583

5.1 Tonbridge Services Limited

The School owns the whole of the ordinary share capital, consisting of 335,000 ordinary shares of £1 each, of Tonbridge Services Limited, which carries out the commercial activities of the School. The subsidiary donates its taxable profits to the School each year by gift aid. Its trading results for the year, as extracted from the audited financial statements, are summarised below. The registered office of this entry is the same as for the School.

Tonbridge Services Limited
Turnover
Cost of Sales
Gross profit
Distribution and Administration
Operating profit
Interest receivable
Profit on ordinary activities
Gift aid to parent company		 2023
2022
£
£
3,007,430
2,487,726
(1,791,397)
(1,612,334)
1,216,033
875,392
(414,572)
(345,609)
801,461
529,783
0
0
801,461
529,783
(801,461)
(529,783)
Nil
Nil

Turnover includes £124,996 (2022: £104,388) in relation to goods supplied to the School.

Cost of Sales and Distribution and Administration includes £1,142,344 (2022: £1,036,500) in relation to purchases from the School.

Audit fees of £10,200 (2022: £7,437) are included in Distribution and Administration.

Details of the subsidiary's balance sheet are given in Note 19.

45

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

5 Trading Income

5.2 The Tonbridge School Foundation

The School acts as sole trustee to Tonbridge School Foundation (TSF), Charity Number 1099162, which is a subsidiary by nature of this relationship. TSF’s principal activity is the advancement of education by the provision of grants, services and other resources (including support by any charitable means) to Tonbridge School. Its results for the year, as extracted from the audited financial statements, are summarised below. The registered office of this entity is the same as for the School.

Income
Donations
Bank interest
Investment income
Total income
Expenditure
Cost of raising funds
Fundraising for voluntary resources
Charitable activities
Grant making
Total expenditure
Net income/(expenditure) before investment gains
Realised & unrealised investment (losses) / gains
Net income		 2023
2022
£
£
1,235,805
1,002,248
9,757
1,657
60,751
24,412
1,306,313
1,028,317
17,655
54,411
17,655
54,411
405,980
384,273
423,635
438,684
882,678
589,633
45,703
(60,899)
928,381
528,734

Charitable expenditure includes £394,400 (2022: £372,813) in respect of grants and scholarship funding payable to Tonbridge School.

Details of the subsidiary's balance sheet are given in Note 19.

6 Investment Income

Group
Equities
Fixed interest		 2023
2022
£
£
34,318
32,295
86,274
41,457
120,592
73,752

All investment income is attributable to Restricted Funds for both the current and previous financial year.

46

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

7 Bank and other interest

Bank and other interest
Year ended 30 June 2022

Grants and donations receivable
Group
Unrestricted
£
Interest received
106,704
Group
Unrestricted
£
Interest received
6,883
Group
Unrestricted
£
Donations from the
1,973,119
Sir Andrew Judd Foundation
Allocated to Bursary Funding
(625,000)
1,348,119
Donation on Merger with
0
The New Beacon School
Development & other donations
273,691
Local & Central Government Funding
3,000
1,624,810		 Unrestricted
£
106,704		 Restricted
£
6,852		 Endowed
£
0		 Total
Total
2023
2022
£
£
113,556
7,898
2022
£
7,898
Total
Total
2023
2022
£
£
1,973,119
1,622,816
(625,000)
(625,000)
1,348,119
997,816
0
9,159,038
1,242,585
1,025,456
3,000
21,000
2,593,704
11,203,310
Unrestricted
£
6,883		 Restricted
£
1,015		 Endowed
£
0
Restricted
£
0		 Endowed
£
0
1,348,119
0
273,691
3,000		 0
0
968,894
0		 0
0
0
0
1,624,810 968,894 0

Year ended 30 June 2022

8 Grants and donations receivable

8.1 Charitable acquisition donation – The New Beacon Educational Trust Limited

At 31 August 2021 the whole of the assets and liabilities of The New Beacon Educational Trust Limited were transferred to Tonbridge School Limited. From that date the New Beacon School was operated as a division of Tonbridge School. A summary of the assets and liabilities that transferred to Tonbridge School as a charitable acquisition donation are as noted below.

Fixed assets (Note 12)
Cash at bank and on deposit (Cash Flow Statement, page 39 )
Other current assets
Current liabilities
Long term liabilities
Defined benefit pension liability		 Total
2022
£
9,513,803
3,192,813
144,789
(919,599)
(2,693,693)
(79,075)
9,159,038

47

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2023

8 Grants and donations receivable - continued

Year ended 30 June 2022

Group
Donations from the
Sir Andrew Judd Foundation
Allocated to Bursary Funding
Donation on Merger with
The New Beacon School
Development & other donations
Local & Central Government Funding		 Unrestricted
£
1,622,816
(625,000)		 Restricted
£
0		 Endowed
2022
£
£
0
1,622,816
(625,000)
0
997,816
0
9,159,038
0
1,025,456
0
21,000
0
11,203,310
997,816
9,159,038
152,363
21,000		 0
0
873,093
0
10,330,217 873,093

48

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

9 Analysis of total expenditure

Analysis of total expenditure
Total Total
Group Direct Costs Indirect Costs 2023 2022
£ £ £ £
Cost of generating funds:
Trading expenditure 1,063,625 0 1,063,625 921,443
Other income generating activities 299,169 45,272 344,441 276,428
Financing costs (note 10) (297,063) 0 (297,063) (368,554)
Investment management (from Restricted Funds) 32,713 0 32,713 30,397
Fundraising and development (2022: £38,800 from 528,480 99,686 628,166 674,209
Restricted Funds)
Total costs of generating funds 1,626,924 144,958 1,771,882 1,533,923
Charitable expenditure:
Teaching 19,303,953 1,362,270 20,666,223 19,141,783
Term-time courses and Sports Academies 431,750 52,767 484,517 504,905
Communications and Admissions 556,844 24,025 580,869 477,167
Welfare 5,171,135 455,045 5,626,180 5,306,019
Premises 10,502,873 1,414,739 11,917,612 10,453,186
Governance 11,580 346,216 357,796 341,150
Grant and awards 4,400 0 4,400 9,250
Total charitable expenditure 35,982,535 3,655,062 39,637,597 36,233,460
Total expenditure 37,609,459 3,800,020 41,409,479 37,767,383
Unless stated otherwise, all expenditure is met from Unrestricted Funds.
Year ended 30 June 2022
Total
Group **Direct Costs ** Indirect Costs 2022
£ £ £
Cost of generating funds:
Trading expenditure 921,443 0 921,443
Other income generating activities 234,107 42,321 276,428
Financing costs (note 10) (368,554) 0 (368,554)
Investment management (from Restricted Funds) 30,397 0 30,397
Fundraising and development (£38,800 from Restricted Funds) 580,669 93,540 674,209
Total costs of generating funds 1,398,062 135,861 1,533,923
Charitable expenditure:
Teaching 17,721,710 1,420,073 19,141,783
Term-time courses and Sports Academies 459,330 45,575 504,905
Communications and Admissions 454,186 22,981 477,167
Welfare 4,686,231 619,788 5,306,019
Premises 9,515,997 937,189 10,453,186
Governance 11,460 329,690 341,150
Grant and awards 9,250 0 9,250
Total charitable expenditure 32,858,164 3,375,296 36,233,460
Total expenditure 34,256,226 3,511,157 37,767,383

Unless stated otherwise, all expenditure is met from Unrestricted Funds. Year ended 30 June 2022

Unless stated otherwise, all expenditure is met from Unrestricted Funds.

49

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

9.1
Grants and awards
9.2
Audit fees included in governance costs
9.3
Finance costs included in charitable expenditure
10.
Finance and other costs
Prizes and leaving awards
Remuneration paid to auditor for audit services
For other services
Bank loan interest and finance charges paid
Group
Financial swap interest liability movement
Defined benefit salary scheme interest charge		 2023
£
4,400		 2022
£
9,250
£
63,397
12,232
£
60,344
5,560
65,904 75,629
2023
£
1,040,951		 2022
£
393,504
2022
£
(392,093)
23,539
(297,063) (368,554)

50

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

11.
Staff costs
The Governors received no remuneration during the year (2022: £ Nil).
No expenses or travel costs were reimbursed to Governors during the year (2022: £ Nil).
Group
Total staff costs comprise:
Wages and Salaries
Social Security costs
Pension contributions
Defined benefit pension scheme amendments to contributions schedule
Other costs
Aggregate employee benefits of key management personnel
The number of employees whose emoluments exceeded £60,000 were:
£60,001 to £70,000
£70,001 to £80,000
£80,001 to £90,000
£90,001 to £100,000
£100,001 to £110,000
£130,001 To £140,000
£150,001 To £160,000
£160,001 to £170,000
£180,001 to £190,000
£230,001 to £240,000
£280,001 to £290,000		 2023
£
20,207,493
2,027,599
2,543,829
0
244,808		 2022
£
18,556,984
1,827,580
2,502,387
574,628
197,816
25,023,729 23,659,395

2023
£
1,398,218		 2022
£
1,362,922
2023
Number
27
24
13
7
1
0
1
0
1
0
1		 2022
Number
24
24
13
3
1
1
0
1
0
1
0

Contributions were made to the Teachers’ Pension Scheme (defined benefit) and the Independent Schools’ Pension Scheme (defined benefit and defined contribution structures) for 75 (2022: 68) higher paid employees. The total amount paid on behalf of these employees was £1,163,264 (2022: £1,127,853).

51

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

11. Staff costs (Continued)

Group

The average number of employees in the year was:
Cost of generating funds
Welfare
Teaching
Term-time courses & Sports Academies
Classroom support
Premises
Management and administration		 2023
2022
Number
Number
30
30
239
230
180
174
26
26
173
161
93
92
30
28
771
741

52

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

12. Tangible Fixed Assets

Group
Cost
At 1 July 2022
Additions
Transfers
Disposals
At 30 June 2023
Depreciation
At 1 July 2022
Charge for the year
Disposals
At 30 June 2023
Net book value
At 30 June 2023
At 30 June 2022
Tangible fixed assets
School
Cost
At 1 July 2022
Additions
Transfers
Disposals
At 30 June 2023
Depreciation
At 1 July 2022
Charge for the year
Disposals
At 30 June 2023
Net book value
At 30 June 2023
At 30 June 2022		 School Land
& Buildings
£
10,269,534
0
0
0		 Leasehold
Improvements
£
45,724,103
0
0
0		 Vehicles
& Equipment
£
3,464,336
357,646
0
(567,603)		 Assets in
Construction
£
128,682
1,978,015
0
0		 Total
£
59,586,655
2,335,661
0
(567,603)
10,269,534 45,724,103 3,254,379 2,106,697 61,354,713
565,261
205,390
0		 11,853,189
1,219,439
0		 2,538,031
506,840
(567,603)		 0
0
0		 14,956,481
1,931,669
(567,603)
770,651 13,072,628 2,477,268 0 16,320,547
9,498,883 32,651,475 777,111 2,106,697 45,034,166
9,704,273 33,870,914 926,305 128,682 44,630,174
School Land
& Buildings
£
10,269,534
0
0
0		 Leasehold
Improvements
£
45,724,103
0
0
0		 Vehicles
& Equipment
£
3,318,437
357,646
0
(567,603)		 Assets in
Construction
£
128,682
1,978,015
0
0		 Total
£
59,440,756
2,335,661
0
(567,603)
10,269,534 45,724,103 3,108,480 2,106,697 61,208,814
565,261
205,390
0		 11,853,189
1,219,439
0		 2,402,425
504,266
(567,603)		 0
0
0		 14,820,875
1,929,095
(567,603)
770,651 13,072,628 2,339,088 0 16,182,367
9,498,883 32,651,475 769,392 2,106,697 45,026,447
9,704,273 33,870,914 916,012 128,682 44,619,881

53

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

12. Tangible Fixed Assets (continued)

Leasehold Improvements for both the Group and School includes staff accommodation, sports astro pitches and The Tonbridge Centre for Sports and Media units. These assets are built on land owned by the connected undertaking, the Sir Andrew Judd Foundation, which leases the land to the School on a 20-year lease which expired in 2023. The School and the Sir Andrew Judd Foundation have agreed terms for a lease extension for the period to 2091, and it is anticipated that this will be signed in due course. The School’s depreciation policy is to depreciate assets over their estimated useful economic life rather than the length of the lease.

All fixed assets are used for charitable purposes.

Assets held under finance lease/HP agreements (for both Group and School)

Cost
Accumulated depreciation
Net book value at 30 June 2023		 2023
2022
£
£
433,908
817,272
(241,052)
(553,583)
192,856
263,689

54

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

13.
Fixed assets investments
Group
Market value 1 July 2022
Acquisitions at cost
Disposals at opening book value
Increase in value of investments
Market value at 30 June 2023
Invested in:
UK fixed interest
Overseas fixed interest
UK equities
Overseas equities
Alternate investment property
Alternate investment unclassified
Cash deposits
Market value at 30 June 2023
Historical cost 30 June 2023
School
Market value 1 July 2022
Acquisitions at cost
Disposals at opening book value
Increase in value of investments
Market value at 30 June 2023
Invested in:
UK fixed interest
Overseas fixed interest
UK equities
Overseas equities
Alternate investment property
Alternate investment unclassified
Cash deposits
Market value at 30 June 2023
Historical cost 30 June 2023		 2023
Unrestricted
£
909,136
1,476,514
(650,772)
0		 2023
2023
2023
Restricted
Endowed
Total
£
£
£
4,289,057
504,320
5,702,513
2,666,319
413,411
4,556,244
(2,009,471)
(418,070)
(3,078,313)
41,107
18,269
59,376
4,987,012
517,930
7,239,820
£
£
£
495,887
19,168
515,055
1,041,894
122,838
1,164,732
1,615,404
224,006
1,839,410
710,157
103,947
814,104
284,452
47,971
332,423
199,243
0
199,243
639,975
0
2,374,853
4,987,012
517,930
7,239,820
4,900,066
501,760
7,136,704
2023
2023
2023
Unrestricted
Restricted
Total
£
£
£
909,136
2,669,487
3,578,623
1,476,514
1,338,692
2,815,206
(650,772)
(1,349,316)
(2,000,088)
0
15,137
15,137
1,734,878
2,674,000
4,408,878
£
£
£
0
433,968
433,968
0
645,101
645,101
0
891,810
891,810
0
374,383
374,383
0
129,495
129,495
0
199,243
199,243
1,734,878
0
1,734,878
1,734,878
2,674,000
4,408,878
1,734,878
2,639,289
4,374,167
1,734,878
£
0
0
0
0
0
0
1,734,878
1,734,878
1,734,878

55

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

14. Investment in subsidiaries – School

14.
Investment in subsidiaries – School		 14.
Investment in subsidiaries – School		 14.
Investment in subsidiaries – School
The School acquired 355,000 ordinary shares of £1 on the 30 of June 2003
15.
Stock
16.
Debtors
Investment in Tonbridge Services Limited at cost
Group
Group
2023
2022
£
£
Stock of goods for resale
241,317
222,858
Other
50,729
53,531
292,046
276,389
Group
Group
2023
2022
£
£
Trade debtors
1,806,946
1,174,757
Other debtors
143,273
81,878
Fair value of interest rate swap
587,687
354,419
Prepayments & accrued income
780,154
604,813
Amounts due from subsidiary undertakings
0
0
3,318,060
2,215,867		 2023
2022
£
£
355,000
355,000
School
School
School
2023
2022
£
£
0
0
50,729
53,531
50,729
53,531
School
School
2023
2022
£
£
1,915,393
1,180,256
129,376
74,983
587,687
354,419
456,804
370,508
1,129,442
839,584
4,218,702
2,819,750
School
2023
£
0
50,729		 School
2022
£
0
53,531
292,046 276,389 50,729 53,531
Group
2023
£
1,806,946
143,273
587,687
780,154
0		 Group
2022
£
1,174,757
81,878
354,419
604,813
0		 School
2023
£
1,915,393
129,376
587,687
456,804
1,129,442		 School
2022
£
1,180,256
74,983
354,419
370,508
839,584
3,318,060 2,215,867 4,218,702 2,819,750

56

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

17. Creditors

Amounts payable within one year:

Bank loans & overdrafts
Deposits from parents
Trade creditors
Taxation and social security
Other creditors
Sir Andrew Judd Foundation (Development Loan)
Obligations under finance leases
Fees in Advance Scheme
Accruals and deferred income		 Group
Group
School
School
2023
2022
2023
2022
£
£
£
£
1,216,884
1,421,625
1,216,884
1,421,625
51,480
235,650
51,480
235,650
2,036,272
2,222,642
2,018,859
2,187,805
647,210
610,029
645,700
587,433
819,284
809,160
801,790
785,544
500,000
0
500,000
0
97,104
181,313
97,104
181,313
578,291
650,242
578,291
650,242
1,267,125
1,363,783
1,027,365
1,149,142
7,213,650
7,494,444
6,937,473
7,198,754

Amounts payable after one year:

Bank loans & overdrafts
Deposits from parents
Fair value of interest rate swap
Sir Andrew Judd Foundation (Development Loan)
Obligations under finance leases
Fees in Advance Scheme		 Group &
School
2023
£
6,836,207
1,267,181
0
7,500,000
78,130
1,156,424		 Group &
School
2022
£
8,035,282
959,316
0
8,000,000
77,776
258,201
16,837,942 17,330,575

During the year, the School maintained loan funding against existing loan facilities as follows:

57

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

17. Creditors (continued)

Bank loan liabilities are repayable as follows:

After five years
Within two to five years
Within one year		 Group &
School
2023
£
0
6,836,207
1,216,884		 Group &
School
2022
£
1,088,015
6,947,267
1,421,625
8,053,091 9,456,907

All obligations under finance leases will be repaid within five years.

In February 2016 the School converted a credit facility with HSBC Bank Plc into an unsecured term loan. The total loan advanced was £3,750,000 at an interest rate of 1.95% above HSBC's published base rate. The total balance outstanding as at the year-end was £352,895.

In February 2021 the School converted a credit facility with HSBC Bank Plc into an unsecured loan. The total loan advanced was £3,000,000 at an interest rate of 1.95% above HSBC's published base rate. The total balance outstanding as at the year-end was £1,160,843.

During the year the School maintained a loan facility with HSBC Bank Plc for £4,000,000 at an interest rate of 1.95% above HSBC's published base rate. The total balance outstanding at the year-end was £4,000,000.

During the year the School maintained a loan facility with HSBC Bank Plc for £2,700,000 at an interest rate of 1.95% above HSBC’s published base rate. The balance outstanding at the year-end was £2,539,353.

18. Fees in advance scheme

Parents may enter into a contract to pay the School in advance for fixed contributions towards School fees for up to five years. The money advanced is invested in UK government securities and deposits maturing in the relevant academic years.

A charge is made against the income generated on these securities and bank deposits in the Statement of Financial Activities, reflecting the element of investment income that is chargeable against fees payable in-year. The scheme’s liability to meet future fees payable, net of investment income due for future periods, is recorded in the Balance Sheet under “Creditors”.

At appropriate intervals the assets and liabilities of the scheme are compared. If there is a sufficient surplus in the scheme, the Governors may transfer part of such surplus from the scheme into general funds.

The money may be returned, subject to specific conditions, on the receipt of notice. Assuming pupils will remain in the School, fees in advance will be applied as follows:

After five years
Within two to five years
Within one year		 Group &
School
2023
£
162,044
1,101,130
578,291		 Group &
School
2022
£
0
258,201
650,242
1,841,465 908,443

58

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

19 Allocation of net assets to funds – Group

Unrestricted:
School General Fund
TS Pension & Swap Liability Fund
The New Beacon General Fund
TNB Pension Liability Fund
Fees in Advance
Tonbridge Services Ltd
TSF General Fund
Restricted:
TSF Master plan Fund
TSF General Scholarship Fund
TSF Ton. School Centre Fund
TSF Barry Orchard Fund
TSF Ferox Hall Fund
TSF Hillside Fund
TSF Manor House Fund
TSF Park House Fund
TSF Parkside Fund
TSF School House Fund
TSF Welldon House Fund
TSF Smythe House Fund
TSF Tree Fund
TSF Media Centre Fund
TSF Rackets Court Fund
TSF Cricket Fund
TSF Hockey Fund
TSF Steinway Fund
TSF New Beacon Fund
TSF Billington Fund
General Prize Funds
General Sch. & Bursary Fund
Community Services Group
Computer Aided Design
Sir T Smythe's Edu. Found.
Henry Fisher's Edu. Found.
Bertha Morton Bequest
Endowed:
TSF Gen. Sch. Fund
TSF Barry Orchard Sch. Fund
TSF Hill Side Sch. Fund
Total		 Fixed Assets
£
35,627,209
0
9,399,238
0
0
7,719
0		 Investments
£
0
0
0
0
1,734,878
0
0		 Other Net
Assets/
(Liabilities)
£
10,786,508
587,687
974,894
0
(290,956)
18,115
1,781,483		 Long Term
(Liabilities/
Provisions)
£
(15,417,582)
(1,914,355)
(263,936)
0
(1,156,424)
0
0		 2023
Total
£
30,996,135
(1,326,668)
10,110,196
0
287,498
25,834
1,781,483
45,034,166 1,734,878 13,857,731 (18,752,297) 41,874,478
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0		 0
1,734,908
0
0
0
195,210
0
99,506
0
0
0
0
0
0
0
0
0
0
6,257
277,131
67,878
1,911,789
51,384
0
205,939
61,455
375,555		 31,285
302,709
1,223
0
0
23,327
5,271
16,361
0
0
0
0
4
15,219
653
29,749
4,139
175
0
5,332
2,432
2,309
62
705
249
74
454		 0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0		 31,285
2,037,617
1,223
0
0
218,537
5,271
115,867
0
0
0
0
4
15,219
653
29,749
4,139
175
6,257
282,463
70,310
1,914,098
51,446
705
206,188
61,529
376,009
0 4,987,012 441,732 0 5,428,744
0
0
0		 190,570
192,359
135,001		 0
0
0		 0
0
0		 190,570
192,359
135,001
0 517,930 0 0 517,930
45,034,166 7,239,820 14,299,463 (18,752,297) 47,821,152

59

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

19 Allocation of net assets to funds – continued

Included within endowed funds is a revaluation reserve with a balance of £16,170 (2022: £Nil) and within restricted funds a revaluation reserve with a balance of £86,946 (2022: £Nil). All reserves relate to the revaluation of investments.

School
Unrestricted:
School General Fund
TS Pension & Swap Liability Fund
The New Beacon General Fund
TNB Pension Liability Fund
Fees in Advance
Restricted:
General Prize Funds
General Sch. & Bursary Fund
Community Services Group
Computer Aided Design
Sir T Smythe's Edu. Found.
Henry Fisher's Edu. Found.
Bertha Morton Bequest
Total		 Fixed Assets
£
35,627,209
0
9,399,238
0
0		 Investments
£
355,000
0
0
0
1,734,878		 Other Net
Assets/
(Liabilities)
£
10,431,508
587,687
974,894
0
(290,956)		 Long Term
(Liabilities/
Provisions)
£
(15,417,582)
(1,914,355)
(263,936)
0
(1,156,424)		 2023
Total
£
30,996,135
(1,326,668)
10,110,196
0
287,498
45,026,447 2,089,878 11,703,133 (18,752,297) 40,067,161
0
0
0
0
0
0
0		 67,878
1,911,789
51,384
0
205,939
61,455
375,555		 2,432
2,309
62
705
249
74
454		 0
0
0
0
0
0
0		 70,310
1,914,098
51,446
705
206,188
61,529
376,009
0 2,674,000 6,285 0 2,680,285
45,026,447 4,763,878 11,709,418 (18,752,297) 42,747,446

Included within restricted funds a revaluation reserve with a balance of £34,711 (2022: £Nil). All reserves relate to the revaluation of investments.

60

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

19 Allocation of net assets to funds - continued

Group as at 30 June 2022
Unrestricted:
School General Fund
TS Pension & Swap Liability Fund
Development Fund
The New Beacon General Fund
TNB Pension Liability Fund
Fees in Advance
Tonbridge Services Ltd
TSF General Fund
Restricted:
TSF Master plan Fund
TSF General Scholarship Fund
TSF Ton. School Centre Fund
TSF Barry Orchard Fund
TSF Ferox Hall Fund
TSF Hillside Fund
TSF Manor House Fund
TSF Park House Fund
TSF Parkside Fund
TSF School House Fund
TSF Welldon House Fund
TSF Smythe House Fund
TSF Tree Fund
TSF Media Centre Fund
TSF Rackets Court Fund
TSF Cricket Fund
TSF Hockey Fund
TSF Steinway Fund
TSF Billington Fund
General Prize Funds
General Sch. & Bursary Fund
Community Services Group
Computer Aided Design
Sir T Smythe's Edu. Found.
Henry Fisher's Edu. Found.
Bertha Morton Bequest
Endowed:
TSF Gen. Sch. Fund
TSF Barry Orchard Sch. Fund
TSF Hill Side Sch. Fund
Total		 Fixed Assets
£
35,433,548
0
0
9,186,333
0
0
10,293
0		 Investments
£
0
0
0
0
0
909,136
0
0		 Other Net
Assets/
(Liabilities)
£
11,685,452
354,419
0
1,162,426
0
(398,815)
15,541
1,578,382		 Long Term
(Liabilities/
Provisions)
£
(16,866,874)
(2,209,764)
0
(205,500)
(63,199)
(258,201)
0
0		 2022
Total
£
30,252,126
(1,855,345)
0
10,143,259
(63,199)
252,120
25,834
1,578,382
44,630,174 909,136 14,397,405 (19,603,538) 40,333,177
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0		 0
1,052,649
0
0
0
189,336
1,502
105,621
0
0
0
0
0
0
0
0
0
0
270,462
67,927
1,917,570
50,312
0
201,638
60,171
371,869		 25,384
278,413
977
77
2
22,404
11,225
22,450
0
0
0
1,250
4
15,188
627
29,688
4,176
175
5,179
338
9,547
250
705
1,004
300
1,851		 0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0		 25,384
1,331,062
977
77
2
211,740
12,727
128,071
0
0
0
1,250
4
15,188
627
29,688
4,176
175
275,641
68,265
1,927,117
50,562
705
202,642
60,471
373,720
0 4,289,057 431,214 0 4,720,271
0
0
0		 185,563
187,304
131,453		 0
0
0		 0
0
0		 185,563
187,304
131,453
0 504,320 0 0 504,320
44,630,174 5,702,513 14,828,619 (19,603,538) 45,557,768

61

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

19 Allocation of net assets to funds - continued

School as at 30 June 2022
Unrestricted:
School General Fund
TS Pension & Swap Liability Fund
Development Fund
The New Beacon General Fund
TNB Pension Liability Fund
Fees in Advance
Restricted:
General Prize Funds
General Sch. & Bursary Fund
Community Services Group
Computer Aided Design
Sir T Smythe's Edu. Found.
Henry Fisher's Edu. Found.
Bertha Morton Bequest
Total		 Fixed Assets
Investments
Other Net
Long Term
2022
Assets/
(Liabilities/
Total
(Liabilities)
Provisions)
£
£
£
£
£
35,433,548
355,000
11,330,452
(16,866,874)
30,252,126
0
0
354,419
(2,209,764)
(1,855,345)
0
0
0
0
0
9,186,333
0
1,162,426
(205,500)
10,143,259
0
0
0
(63,199)
(63,199)
0
909,136
(398,815)
(258,201)
252,120
44,619,881
1,264,136
12,448,482
(19,603,538)
38,728,961
0
67,927
338
0
68,265
0
1,917,570
9,547
0
1,927,117
0
50,312
250
0
50,562
0
0
705
0
705
0
201,638
1,004
0
202,642
0
60,171
300
0
60,471
0
371,869
1,851
0
373,720
0
2,669,487
13,995
0
2,683,482
44,619,881
3,933,623
12,462,477
(19,603,538)
41,412,443

As at the 30 June 2022 year end, The Governors supported the decision to consolidate the Development Fund with that of the Tonbridge School General Fund. The Development Fund was originally designated to accommodate historic development initiatives at the School. Having completed the anticipated programme of activity to date, it was considered that the management of income and expenditure streams associated with future projects, and the ongoing financing of historic projects, would be more effectively managed as part of the School’s General Fund.

62

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

20 Analysis of movement in funds - Group

Unrestricted:
School General Fund
TS Pension & Swap Liability Fund
The New Beacon General Fund
TNB Pension Liability Fund
Fees in Advance
Tonbridge Services Ltd
The TSF General Fund
Restricted:
TSF Master Plan Fund
TSF General Scholarship Fund
TSF Ton. School Centre Fund
TSF Barry Orchard Fund
TSF Ferox Hall Fund
TSF Hill Side Fund
TSF Manor House Fund
TSF Park House Fund
TSF Parkside Fund
TSF School House Fund
TSF Welldon House Fund
TSF Smythe House Fund
TSF Tree Fund
TSF Media Centre Fund
TSF Rackets Court Fund
TSF Cricket Fund
TSF Hockey Fund
TSF Steinway Fund
TSF New Beacon Fund
TSF Billington Fund
General Prize Funds
General Sch. & Bursary Fund
Community Services Group
Computer Aided Design
Sir T Smythe's Edu. Found.
Henry Fisher's Edu. Found.
Bertha Morton Bequest
Endowed:
TSF General Sch. Fund
TSF Barry Orchard Sch. Fund
TSF Hill Side Sch. Fund
Total		 At
Income
Expenditure
Transfers
Balance
1 July 2022
Investment
30 June 2023
Gains/(Losses)
£
£
£
£
£
30,252,126
33,623,344
(35,083,959)
2,204,624
30,996,135
(1,855,345)
0
297,063
231,614
(1,326,668)
10,143,259
5,512,050
(5,505,176)
(39,937)
10,110,196
(63,199)
0
0
63,199
0
252,120
35,562
(184)
0
287,498
25,834
2,882,434
(1,063,625)
(1,818,809)
25,834
1,578,382
272,986
(16,485)
(53,400)
1,781,483
40,333,177
42,326,376
(41,372,366)
587,291
41,874,478
25,384
5,901
0
0
31,285
1,331,062
956,361
(4,865)
(244,941)
2,037,617
977
246
0
0
1,223
77
10,659
0
(10,736)
0
2
4,079
0
(4,081)
0
211,740
25,067
(875)
(17,395)
218,537
12,727
2,814
(8)
(10,262)
5,271
128,071
7,107
(488)
(18,823)
115,867
0
1,050
0
(1,050)
0
0
1,501
0
(1,501)
0
0
2,613
0
(2,613)
0
1,250
1,253
0
(2,503)
0
4
0
0
0
4
15,188
31
0
0
15,219
627
26
0
0
653
29,688
61
0
0
29,749
4,176
(37)
0
0
4,139
175
0
0
0
175
0
6,257
0
0
6,257
275,641
8,338
(1,250)
(266)
282,463
68,265
4,040
(658)
(1,337)
70,310
1,927,117
43,467
(14,340)
(42,146)
1,914,098
50,562
1,140
(376)
120
51,446
705
0
0
0
705
202,642
4,571
(1,508)
483
206,188
60,471
1,364
(450)
144
61,529
373,720
8,429
(7,031)
891
376,009
4,720,271
1,096,338
(31,849)
(356,016)
5,428,744
185,563
0
(1,937)
6,944
190,570
187,304
0
(1,955)
7,010
192,359
131,453
0
(1,372)
4,920
135,001
504,320
0
(5,264)
18,874
517,930
45,557,768
43,422,714
(41,409,479)
250,149
47,821,152

Transfers between funds represent grants and donations towards the scholarships, bursaries, prizes and major capital projects of the School, without restriction, and adjustments to reflect the confirmation of donors’ wishes.

63

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

20 Analysis of movement in funds - continued

School
Unrestricted:
School General Fund
TS Pension & Swap Liability Fund
The New Beacon General Fund
TNB Pension Liability Fund
Fees in Advance
Restricted:
General Prize Funds
General Sch. & Bursary Fund
Community Services Group
Computer Aided Design
Sir T Smythe's Edu. Found.
Henry Fisher's Edu. Found
Bertha Morton Bequest
Total		 At
1 July 2022
£
30,252,126
(1,855,345)
10,143,259
(63,199)
252,120		 Income
£
35,829,463
0
5,623,991
0
35,562		 Expenditure
Transfers
Balance
Investment
30 June 2023
Gains/(Losses)
£
£
£
(35,188,810)
103,356
30,996,135
297,063
231,614
(1,326,668)
(5,505,176)
(151,878)
10,110,196
0
63,199
0
(184)
0
287,498
(40,397,107)
246,291
40,067,161
(658)
(1,337)
70,310
(14,340)
(42,146)
1,914,098
(376)
120
51,446
0
0
705
(1,508)
483
206,188
(450)
144
61,529
(7,031)
891
376,009
(24,363)
(41,845)
2,680,285
(40,421,470)
204,446
42,747,446
38,728,961 41,489,016 (40,397,107)
68,265
1,927,117
50,562
705
202,642
60,471
373,720		 4,040
43,467
1,140
0
4,571
1,364
8,429		 (658)
(14,340)
(376)
0
(1,508)
(450)
(7,031)
2,683,482 63,011 (24,363)
41,412,443 41,552,027 (40,421,470)

Transfers between funds represent grants and donations towards the scholarships, bursaries, and prizes of the School, without restriction.

64

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2023

20 Analysis of movement in funds - continued

Group as at 30 June 2022
Unrestricted:
School General Fund
TS Pension & Swap Liability Fund
Development Fund
The New Beacon General Fund
TNB Pension Liability Fund
Fees in Advance
Tonbridge Services Ltd
The TSF General Fund
Restricted:
TSF Master Plan Fund
TSF General Scholarship Fund
TSF Ton. School Centre Fund
TSF Barry Orchard Fund
TSF Ferox Hall Fund
TSF Hill Side Fund
TSF Manor House Fund
TSF Park House Fund
TSF Parkside Fund
TSF School House Fund
TSF Welldon House Fund
TSF Smythe House Fund
TSF Tree Fund
TSF Media Centre Fund
TSF Rackets Court Fund
TSF Cricket Fund
TSF Hockey Fund
TSF Steinway Fund
TSF Billington Fund
General Prize Funds
General Sch. & Bursary Fund
Community Services Group
Computer Aided Design
Sir T Smythe's Edu. Found.
Henry Fisher's Edu. Found.
Bertha Morton Bequest
Endowed:
TSF General Sch. Fund
TSF Barry Orchard Sch. Fund
TSF Hill Side Sch. Fund
Total		 At
Income
Expenditure
Transfers
Balance
1 July 2021
Investment
30 June 2022
Gains/(Losses)
£
£
£
£
£
17,348,186
30,725,279
(29,536,059)
11,714,720
30,252,126
(2,200,643)
0
(206,262)
551,560
(1,855,345)
11,276,652
1,541,785
(2,696,810)
(10,121,627)
0
0
14,345,946
(4,306,717)
104,030
10,143,259
0
0
188
(63,387)
(63,199)
252,988
3,415
(4,283)
0
252,120
25,834
2,383,338
(921,443)
(1,461,895)
25,834
1,510,948
129,797
(17,550)
(44,813)
1,578,382
28,213,965
49,129,560
(37,688,936)
678,588
40,333,177
18,152
7,232
0
0
25,384
771,069
818,894
(41,473)
(217,428)
1,331,062
733
244
0
0
977
11,922
8,618
0
(20,463)
77
15,099
5,386
(64)
(20,419)
2
235,603
23,256
(903)
(46,216)
211,740
30,603
4,110
(131)
(21,855)
12,727
133,768
15,847
(566)
(20,978)
128,071
0
1,050
0
(1,050)
0
0
345
0
(345)
0
0
1,595
0
(1,595)
0
0
1,250
0
0
1,250
4
0
0
0
4
15,182
6
0
0
15,188
627
0
0
0
627
29,676
12
0
0
29,688
4,174
2
0
0
4,176
175
0
0
0
175
279,099
10,673
(1,182)
(12,949)
275,641
72,764
1,257
(532)
(5,224)
68,265
2,056,712
35,531
(15,033)
(150,093)
1,927,117
52,735
911
(385)
(2,699)
50,562
705
0
0
0
705
211,353
3,651
(1,545)
(10,817)
202,642
63,069
1,090
(461)
(3,227)
60,471
399,432
6,900
(12,170)
(20,442)
373,720
4,402,656
947,860
(74,445)
(555,800)
4,720,271
196,456
0
(1,473)
(9,420)
185,563
198,298
0
(1,486)
(9,508)
187,304
139,169
0
(1,043)
(6,673)
131,453
533,923
0
(4,002)
(25,601)
504,320
33,150,544
50,077,420
(37,767,383)
97,187
45,557,768

Transfers between funds represent grants and donations towards the scholarships, bursaries, prizes and major capital projects of the School, without restriction, and adjustments to reflect the confirmation of donors’ wishes.

65

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2023

20 Analysis of movement in funds - continued

School as at 30 June 2022
Unrestricted:
School General Fund
TS Pension & Swap Liability Fund
Development Fund
The New Beacon General Fund
TNB Pension Liability Fund
Fees in Advance
Restricted:
General Prize Funds
General Sch. & Bursary Fund
Community Services Group
Computer Aided Design
Sir T Smythe's Edu. Found.
Henry Fisher's Edu. Found
Bertha Morton Bequest
Total		 At
Income
Expenditure
Transfers
Balance
1 July 2021
Investment
30 June 2022
Gains/(Losses)
£
£
£
£
£
17,348,186
32,582,294
(29,615,627)
9,937,273
30,252,126
(2,200,643)
0
(206,262)
551,560
(1,855,345)
11,276,652
1,541,785
(2,701,636)
(10,116,801)
0
0
14,408,033
(4,306,717)
41,943
10,143,259
0
0
188
(63,387)
(63,199)
252,988
3,415
(4,283)
0
252,120
26,677,183
48,535,527
(36,834,337)
350,588
38,728,961
72,764
1,257
(532)
(5,224)
68,265
2,056,712
35,531
(15,033)
(150,093)
1,927,117
52,735
911
(385)
(2,699)
50,562
705
0
0
0
705
211,353
3,651
(1,545)
(10,817)
202,642
63,069
1,090
(461)
(3,227)
60,471
399,432
6,900
(12,170)
(20,442)
373,720
2,856,770
49,340
(30,126)
(192,502)
2,683,482
29,533,953
48,584,867
(36,864,463)
158,086
41,412,443

Transfers between funds represent grants and donations towards the scholarships, bursaries, and prizes of the School, without restriction.

66

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

21 Reconciliation of income to net cash inflow from operating activities

Net income including actuarial losses on pension scheme
Investment income received
Bank interest received
Realised gains on investments
Unrealised (gains) / losses on investments
Donated fixed assets on merger (Note 8)
Deprecation of tangible fixed assets
Loss on disposal of fixed assets
Movement on pension liability
(Increase) / decrease in stocks
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net cash inflow from operating activities		 2023
£
2,263,384
(120,592)
(113,556)
7,278
(59,376)
0
1,931,669
0
(358,608)
(15,657)
(1,082,751)
714,244		 2022
£
12,407,224
(73,752)
(7,898)
(41,548)
248,614
(9,159,038)
2,071,190
34,246
57,992
14,473
(693,534)
(1,962,300)
3,166,035 2,895,669
22
Analysis of changes in net funds
Cash in hand and at bank
Bank loans due within one year
Other loans due within one year
Finance lease obligations due within one year
Bank loans due after one year
Other loans due after one year
Finance lease obligations due after one year
Total		 At
1 July 2022
£
19,830,807		 Cash flows
£
(1,927,800)		 Other
changes
£
0		 Balance
30 June 2023
£
17,903,007
19,830,807
(1,421,625)
0
(181,313)
(8,035,282)
(8,000,000)
(77,776)		 (1,927,800)
1,403,816
0
83,855
0
0
0		 0
(1,199,075)
(500,000)
354
1,199,075
500,000
(354)		 17,903,007
(1,216,884)
(500,000)
(97,104)
(6,836,207)
(7,500,000)
(78,130)
2,114,811 (440,129) 0 1,674,682

67

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

22 Analysis of changes in net funds – continued

Group as at 30 June 2022

Group as at 30 June 2022
23
Reconciliation of net cash flow movement to change in net debt
At
Cash flows
Other
1 July 2021
changes
£
£
£
Cash in hand and at bank
15,191,887
4,638,920
0
15,191,887
4,638,920
0
Bank loans due within one year
(1,346,992)
1,343,905
(1,418,538)
Other loans due within one year
(2,000,000)
2,000,000
0
Finance lease obligations due within one year
(225,860)
174,127
(129,580)
Bank loans due after one year
(6,856,962)
(2,596,858)
1,418,538
Other loans due after one year
(8,000,000)
0
0
Finance lease obligations due after one year
(207,356)
0
129,580
Total
(3,445,283)
5,560,094
0
2023
2023
2022
£
£
£
Cash flow
(1,927,800)
4,638,920
Increase in bank borrowing
0
(2,700,000)
New finance lease agreements
(138,343)
(61,955)
Capital element of loan repayment
1,403,816
3,447,047
Capital element of finance lease repayment
222,198
236,082
Changes in net cash / (debt)
(440,129)
Net cash / (debt) at 1 July 2022
2,114,811
Net cash at 30 June 2023
1,674,682		 At
1 July 2021
£
15,191,887		 Cash flows
£
4,638,920		 Other
changes
£
0		 Balance
30 June 2022
£
19,830,807
15,191,887
(1,346,992)
(2,000,000)
(225,860)
(6,856,962)
(8,000,000)
(207,356)		 4,638,920
1,343,905
2,000,000
174,127
(2,596,858)
0
0		 0
(1,418,538)
0
(129,580)
1,418,538
0
129,580		 19,830,807
(1,421,625)
0
(181,313)
(8,035,282)
(8,000,000)
(77,776)
(3,445,283) 5,560,094 0 2,114,811
2022
£
5,560,094
(3,445,283)
2,114,811

24 Capital commitments

Capital expenditure that has been contracted for but not provided £3,835,000 (2022: £15,800).

68

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

25
Financial instruments
Listed investments
at amortised cost
Other debtors
Financial liabilities at fair value
or loss
Interest rate swaps (see note 28)
Pension scheme provision (see note 27)
Bank loans
Finance leases and hire purchase contracts
Trade creditors
Deposits from parents
Fees in advance scheme
Other creditors
Financial liabilities at amortised costs
Financial assets at fair value through profit or
Financial assets that are debt instruments		 Group
Group
School
School
2023
2022
2023
2022
£
£
£
£
7,239,820
5,702,513
4,408,878
3,578,623
2,730,373
1,861,448
3,631,015
2,465,331
587,687
354,419
587,687
354,419
(1,914,355)
(2,272,963)
(1,914,355)
(2,272,963)
(8,053,091)
(9,456,907)
(8,053,091)
(9,456,907)
(175,234)
(259,089)
(175,234)
(259,089)
(2,036,272)
(2,222,642)
(2,018,859)
(2,187,805)
(1,318,661)
(1,194,966)
(1,318,661)
(1,194,966)
(1,734,715)
(908,443)
(1,734,715)
(908,443)
(10,733,619)
(10,782,972)
(10,474,855)
(10,522,119)

26 Pension costs

26.1 Auto enrolment

The Group staging date for the implementation of Auto Enrolment was 1 January 2014. Many of the Group's employees were already members of approved pension schemes as at that date and continue to participate in these schemes going forward. As at the staging date, a default Auto Enrolment scheme was introduced by the Group, administered by The Pensions Trust, to facilitate compliance with the Auto Enrolment provisions. Details of this and of all pension schemes in operation for the year under review are as noted below.

26.2 The Teachers’ Pension Scheme

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The TPS is statutory contributory, multi-employer defined benefit pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014. Membership is automatic for full-time teachers and, from 1 January 2007, automatic for teachers in part-time employment following appointment or a change of contract, although they can opt out. Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set following scheme valuations undertaken by the Government Actuary Department. The 2020 valuation has now been published and the employer contributions are due to rise by 5% to 28.68% from 1st April 2024 A copy of the valuation report and supporting documentation is on the Teachers' Pension website: https://www.teacherspensions.co.uk/members/faqs/valuation.aspx ~~. T~~ he pension charge for the year includes contributions payable to the TPS of £1,812k.

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The Schools have accounted for their contributions to the scheme as if it were a defined contribution scheme.

69

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

26 Pension costs - continued

26.3 Group Pension Scheme (Standard Life)

This scheme was open to all works, grounds, catering and other support staff after three months’ service, but was closed to new members following the implementation of Auto Enrolment on 1 January 2014. Existing members as at that date were able to remain within the scheme. It was a non-contributory defined contributions scheme for the period to 31 March 2019, with an employer contribution rate of 6%. An employee contribution rate of 1% was introduced with effect from 1 April 2019, when employer contributions also increased to 7% as part of the staged increments under the Auto Enrolment regime.

26.4 The Independent School’s Pension Scheme (ISPS)

This scheme came into being in 1997 when several Independent Schools with individual pension schemes with the Pension Trust combined to form the ISPS.

Several benefit structures are offered by the Scheme, including one based on final salary at 1/80 of reckonable service with membership available by contract to eligible administrative staff. During the year ended 30 June 2023, contribution rates for both the staff and the School were set at 11.4% respectively for the period to 31 August 2022, with the employee contribution rate increasing to 25.2% from 1 September 2022.

In September 2013 the Group introduced a "CARE 1/120" benefit structure, available by contract to eligible administrative staff, offering benefits based on career average earnings at 1/120 of reckonable service which was offered in conjunction with a "top up" defined contribution benefit structure. During the year ended 30 June 2023, contribution rates for both staff and the employer were set at 8.4% and 6.9% respectively for the period to 31 August 2022, with the employee contribution rate increasing to 17.2% from 1 September 2022. Contributions to the "top up" defined contributions benefit structure remained matched at 1.5% for both the employee and employer during the year.

To help employers comply with Auto Enrolment legislation the ISPS offered a new defined contribution benefit scheme as of 1 January 2014, with the Group adopting this as its default Auto Enrolment scheme for support staff. Contribution rates for both the employer and staff vary across the Group workforce.

As approved multi-employer schemes, it is not possible to identify the School’s share of the assets and liabilities to either the Teachers’ Pension Scheme or to the ISPS. The last formal valuation of the ISPS was performed as at 30 September 2020 by a professionally qualified actuary using the Projected Unit Method. The market value of the Scheme’s assets at the valuation date was £201.1m. The valuation revealed a shortfall of assets compared with the value of liabilities of £55.2m, up from £17.0m 2017.

During the year, the School paid deficit contributions totalling £238,000 and Scheme expenses of £25,000.

As part of the Scheme’s recovery plan, and based on the 2020 actuarial valuation, deficit funding contributions became payable at the rate of £239,000 p.a. from 1st September 2022, increasing by 3% p.a. thereafter until a review of progress at the next valuation in 2023.

Scheme expenses become payable at the rate of £26,000 p.a. from 1 September 2023. In addition, the Group is liable for deficit contributions on the Growth Plan Scheme for a period of 12 years, commencing 1 April 2013, with contributions payable at the rate of £1,863 p.a. from 1 April 2023.

Contributions to all pension schemes are charged to the SOFA as they become payable.

70

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

27. Valuation of defined benefit pension liabilities under FRS102

27.1 Independent Schools’ Pension Scheme (ISPS)

The Company participates in the ISPS, a multi-employer scheme which provides benefits to non-associated employers (61 for the defined benefit and 638 for the Growth Plan benefit structures respectively). The scheme is a defined benefit schemes in the UK. It is not possible for the Charity to obtain sufficient information to enable it to account for the scheme as defined benefit scheme. Therefore, it accounts for the scheme as defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore, the Charity is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out with an effective date of 30 September 2020. This actuarial valuation was certified on 22 December 2021 and showed assets of £201.1m, liabilities of £256.3m and a deficit of £55.2m. To eliminate this funding shortfall, the trustees and the participating employers have agreed that additional contributions will be paid, in combination from all employers, to the scheme as follows:

Deficit contributions

£2,687,000 per annum From 1 September 2022 to 30 June 2032: (payable monthly and increasing by 3% on each 1st September)

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £149.4m, liabilities of £187.6m and a deficit of £38.2m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

£2,387,357 per annum From 1 September 2019 to 30 April 2030: (payable monthly and increasing by 3% on each 1st September)

The recovery plan contributions are allocated to each participating employer in line with its estimated share of the scheme liabilities.

Where the scheme is in deficit and where the Charity has agreed to a deficit funding arrangement the Charity recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the Discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

71

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

27.1 Independent Schools’ Pension Scheme (ISPS) - continued

Present value of provision
Reconciliation of opening and closing provision
Provision at start of period
Transfer of The New Beacon liability on Merger
Unwinding of the discount factor (interest expense)
Deficit contribution paid
Remeasurements - impact of any change in assumptions
Remeasurements - amendments to the contribution schedule
Provision at end of period
Impact on Income & Expenditure
Interest expense
Remeasurements – impact of any change in assumptions
Remeasurements – amendments to the contribution schedule
Assumptions
Rate of discount		 30 June 2023
30 June 2022
£1,912,000
£2,269,000
30 June 2023
30 June 2022
£
£
2,269,000
2,111,000
0
79,000
79,000
23,000
(238,000)
(230,000)
(198,000)
(304,000)
0
590,000
1,912,000
2,269,000
30 June 2023
30 June 2022
£
£
79,000
23,000
(198,000)
(304,000)
0
590,000
(119,000)
309,000
30 June 2023
30 June 2022
% p.a.
% p.a.
6.10
3.71

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

27.2 The Pensions Trust Growth Plan

A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2022 to 31 January 2025: £3,312,000 per annum (payable monthly)

Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

£11,243,000 per annum From 1 April 2019 to 30 September 2025: (payable monthly and increasing by 3% each on 1st April)

The recovery plan contributions are allocated to each participating employer in line with its estimated share of the Series 1 and Series 2 scheme liabilities. Where the scheme is in deficit and where the company has agreed to a deficit

72

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

27.2 The Pensions Trust Growth Plan - continued

funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

Present value of provision
Reconciliation of opening and closing provision
Provision at start of period
Unwinding of the discount factor (interest expense)
Deficit contribution paid
Remeasurements - impact of any change in assumptions
Remeasurements - amendments to the contribution schedule
Provision at end of period
Impact on Income & Expenditure
Interest expense
Remeasurements – impact of any change in assumptions
Remeasurements – amendments to the contribution schedule
Assumptions
Rate of discount		 30 June 2023
£2,447
30 June 2023
£
4,009
108
(1,619)
(51)
0		 30 June 2022
£4,009
30 June 2022
£
25,019
132
(5,459)
(142)
(15,541)
2,447 4,009
30 June 2023
£
108
(51)
0		 30 June 2022
£
132
(142)
(15,541)
57 (15,551)
30 June 2023
% p.a.
6.40		 30 June 2022
% p.a.
3.45

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

28. Interest rate swap

In July 2017 the Charity entered an interest rate swap arrangement with HSBC in relation to a further £6.01m loan finance. The swap runs until 29 November 2024 and fixes the interest rate on the facility at 0.8775% p.a.

In July 2019 the Charity entered an interest rate swap arrangement with HSBC in relation to a further £4.00m loan finance. The swap runs until 28 April 2028 and fixes the interest rate on the facility at 0.6580% p.a.

The net present value of the interest payable under the swap arrangements is recognised as a debtor due within one year in the Group and School's financial statements, as detailed at note 16. The movement on the liability is charged to the SOFA as a financing cost (see Note 16).

29. Related & connected parties

29.1. Tonbridge Services Limited

Details of the School’s transactions with its subsidiary, Tonbridge Services Limited (“TSL”), are disclosed in Note 5.1 to the financial statements. Tonbridge School was owed £1,124,489 by TSL as at the balance sheet date.

73

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

29.2. The Tonbridge School Foundation

Details of the School’s transactions with its subsidiary, The Tonbridge School Foundation, are disclosed in Note 5.2 to the financial statements. Tonbridge School was owed £4,800 by The Tonbridge School Foundation as at the balance sheet date.

29.3. Sir Andrew Judd Foundation

Donations include £1,343,119 from the Sir Andrew Judd Foundation towards the general running costs of the School and a further £625,000 to support the School's Foundation Awards. The Sir Andrew Judd Foundation also owns and leases to the School, free of charge, the main School buildings, surrounding grounds and several staff accommodation units located in and around the School’s site. Tonbridge School was owed £Nil by the Sir Andrew Judd Foundation as at the balance sheet date.

29.4. St. Augustine’s Chapel Charity

Tonbridge School owed £Nil to St Augustine’s Chapel Charity as at the balance sheet date.

29.5. Transactions with Directors/Trustees

Donations were received in the year from three Trustees of Tonbridge School totalling £26,060 (2022: £5,819).

30. Taxation

Tonbridge School is a registered Charity, and its income is not liable to direct taxation on its charitable activities.

74

Tonbridge School

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30 June 2023

31. Consolidated Statement of Financial Activities for the Year Ended 30 June 2022

INCOME
Income from charitable activities
School fees receivable
Other income
Other trading activities
Trading income
Other commercial income
Investments
Investment income
Bank and other interest
Donations and legacies
Grants and donations
Total income
EXPENDITURE
Cost of raising funds
Trading expenditure
Other income-generating activities
Financing costs
Investment management
Fundraising and development
Charitable activities
Education and grant making
Total expenditure
Net incoming funds from operations
before transfers and investment gains
Realised investment gains
Unrealised investment gains
Net income for the year
Actuarial gains on
pension scheme
Transfers between funds
NET MOVEMENT IN FUNDS		 Unrestricted
Funds
£
34,864,563
1,539,976
2,383,338
4,583
0
6,883
10,330,217		 Restricted
Funds
£
0
0
0
0
73,752
1,015
873,093		 Endowed
2022
Funds
Total
£
£
0
34,864,563
0
1,539,976
0
2,383,338
0
4,583
0
73,752
0
7,898
0
11,203,310
0
50,077,420
0
921,443
0
276,428
0
(368,554)
4,002
30,397
0
674,209
4,002
1,533,923
0
36,233,460
4,002
37,767,383
(4,002)
12,310,037
5,268
41,548
(30,869)
(248,614)
(29,603)
12,102,971
0
304,253
(29,603)
12,407,224
0
0
(29,603)
12,407,224
49,129,560 947,860
921,443
276,428
(368,554)
0
635,409		 0
0
0
26,395
38,800
1,464,726
36,224,210		 65,195
9,250
37,688,936 74,445
11,440,624
0
0		 873,415
36,280
(217,745)
11,440,624
304,253		 691,950
0
11,744,877
374,335		 691,950
(374,335)
12,119,212 317,615

75