THE KING'S SCHOOL WORCESTER ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31JULY 2023 THE KING'S SCHOOL WORCESTER ANNUAL REPORT AND FINANCIAL STATEMEKrs YEAR ENDED 31 JULY 2023 Contents Page Governors, Officers and Advisers Annual Report of the Governors Strateglc Report li Statement of Accountin8 ènd Reporting Responsibilities 21 Independent Auditorf5 Report 23 Consolldated Statement of Flnanclal Actlvltles 27 Consolidated Summary Income and Expenditure Account 28 Consolldated and school Balance Sheets 29 Consolldated Cashflow Statement 30 Notes to the Flnancial Statements 31 THE KING'S SCHOOL WORCESTER GOVERNORS, OFFICERS AND ADVISERS YEAR ENDED 31 JULY 2023 GOVERNORS, DIREcfoRS AND CHARITY TRUSTEES The Governors of the KIn￿5 School Woicester I'the Schoofi are the khool's charity trustees under charity law and the dlrectors of the charitable company. The member5 of the Governing Body who served in offKe as Governors durlng the year and subsequently are detailed below- 141 151 171 181 191 P Preston Ichairl The Very Rev'd P G Atkinson G W Ballard T Brock Retired 25 August 2023 Appointed 3 November 2023 Resigned 30 lune 2023 Retired 24 March 2023 Retlred 30 June 2023 K Brunt DBDale D L Green J W R Gouldln8 S E Hlncks C Hoddlnott Resigned 30 June 2023 Appointed I September 2022 Resigned 30 June 2023 Retlred 30 June 2023 Appolnted 3 November 2023 Appolnted I September 2023 J H Jarvis A Mathur W Milne-Bennett C Plke A A Plunkett Appolnled I September 2022 Appolnted 24 November 2022 Re51gned l October 2023 Appolnted 3 November 2023 Appointed 17 November 2023 Appolnted 17 October 2023 R Prestldge J Rlaz E Robson Dr. J Salkeld Prof. M Stringer R Tomlinson A Underwood P Walker S Williams Appolnted 6 October 2023 During the year the actlvltles of the Governlng Body were carrled out throu8h the maln board and the above commbttees. The membershlp of these ¢ommlttee515 Shown above for each Governor. 111 Finance and General Purposes Committee 121 Educatlon Commottee 131 Representative on School Health and Safety Committee 141 Safeguarding Governors 151 Nomlnatlons and Governance Commlttee 161 EYFS Governor 171 Prep School Governors 181 Compliance Committee 191 EID Governor Parent of pupil at the School THE KING'S SCHOOL WORCESTER GOVERNORS, OFFICERS AND ADVISER5 (Continued) YEAR ENDED 31 JULY 2023 OFFICERS G E Doodes Headmaster- Foundatlon R Achapman J Phillips TButt Head- Klng'5 St Alban's Prep School Head- Kin8's Hawford Prep School IResigned 31 Au8USt 20221 Head- Kln8'5 Hawford Prep School IAppointed l November 20221 Dlrector of Finance and Business Development Acting Clerk to Governors116 January- 18 April 20231 Dlrector of OpeTatlon5 IResl8ned IS January 20231 Clerk to the Governor5 (Resigned IS January 20231 Dlrector of Operatlons IAppolnted l April 20231 Clerk to Governors (Appolnted 19 Aprll 20231 G M Mason S Holden A Wlnter E Lsydenham Princlpal addre$$ and Reglstered Olfice 5 College Green. Worcester, WRI 2LL Audltor Crowe U.K. LLP, 4th Floor St James House, St Jame5 Square, GL50 3PR nkgrs Lloyds Plc, 4 The Cross, Worcester, WRI 3PY Sollcltors Harrlson Clark Rlckerbys Ltd. Welllngton Street Cheltenharn, GLSO IYD Parkinson WrS8ht LLP, St Nicholès Street Worcester, WRI IUN Surveyors Gwllllam Darby Carr, 7 Severn Street, Worcester, WRI 2ND Charity number 1098236 Company Number 04776324 Website www.ksw.org.uk THE KING'S SCHOOL WORCESTER ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023 The members of The Klng's School Worcester Governing Body present their Annual Report for the year ended 31 July 2023 under the Charities Art 2011 including the Directors, Report and Strateglc Report and the Companies Act 2006, together with the audited financial Statements for the year. REFERENCE AND ADMINISTRATIVE INFORMATION The Kln¢s School Worcester 1.the Schoofl wasfounded In 1541.11 Is con5tbtuted as a company limited by guarantee Te8iStered in England. No. 04776324, and is re8istered with the Charity Commission under Charity No.1098236. The Charlty Commlssloners for England and Wales have Issued a unlting direction in respect of the School and the unincorporated precursor charf(v that went by the same name (having the registered name of Worcester Cathedral Grammar School, charlty number 5275361 whereby 5Sngle entlty flnanclal statements may be prepared. The School operates one senior school and two prep schools known as Kin8's St Alban's and Kin(s Hawford. Therels one Governln8 Body for all three Schools. Deta115 of the members of the Governing Body* together with the School's officers and prlncipal advlsers, are gbven on paBe$ 3 and 4. sTrucfuRE, GOVERNANCE AND MANAGEMENT Governln8 docufflent$ The School 15 governed by bts Memorandum of Assoclatlon and Artlcles of Ass¢xlatbon and by the Scheme of the Charity Commlssloners dated 22 May 2003, as amended on 4 Juty 2003, 3 July 2009, 30 November 2018 and 19 March 2021. Governln8 Bodv Under the Charlty Comrnls51on Scheme the Board of Governors shall not exceed elghteen members comprlslng one ex-offlclo, elght nomlnatfve and nlne co-opted Governors. Of the nomlnatlve Governors seven are nomlnated by the Dean and Chapter of Worcester Cathedral and one by the Blshop of Worcester. Nomlnatlve Governors serve for a term of four years. Co-opted Governors are appolnted for a term of four years by resolutlon of the Governors. Retlrlng Governors may be re. appointed. Recrultment and tralnln8 ol Governors The School's eletted Governor5 are appolnted at 3 meetlng of the Board of Governors on the basls of nomlnatlons recelved from the three nomlnatlng bodles specffled wlthln the Charlty Cornrn1551on Scheme. All nominations (including co-optatSve appointments) are made having regard to the Board's requirements concernlng ell8ibl1￿• personal competence, speclallst skllls, and avablabllltv. New Governors are Inducted Into the workln8s of the School. Including governing body policy and procedures, throu8h vlslts to the School and the provlslon of a comprehensove briefing pack and bv personal contact with other Governors, the Headmaster, the Dlrector of Finance and Business Development and the Director of Operation5. All Governors are offered the opportunlty to attend relevant tralnlng semlnars and receive briefings on current Issues in the sector and ￿su1at0ry requlrements. Or8anlsatlonal manaiemenl The Governors, as the charity trustees, are legally responsible for the overall management and control of the School. They meet at least three times a year and on other occasion5 a5 requlred. The work of ImplementinE their policies is facilitated by four sub-committees= THE KING'S SCHOOL WORCESTER ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023 the Flnance and General Purposes Commlttee IF&GPI has specific re5ponslbllOty for financial matters including the review of budgets and finalising the audited financial statements and annual report for approval by the Board. the Education Commrttee considers strateglc academlc issues. the Nominations and Govemance Committee con51ders the recrultment and retlrement of Governors, terms of reference and committee member5hlp. the Compllance Committee provldes oversight of all elements of compliance and rlsk. Thefe a￿ no other standing committees of Governors but the membership of the School's Heblth and Safety Committee 15 chaired by a Governor and there are nomlnateil governors who have specific responslbllrty for Ilalslng wlth the prep schoobs. eafW years and chlld protection. In addition, there Ss Governor representatlon on various ad hoc school management committees as may be required from tlme to time. The day to day runnln8 of the schoolsls delegated to the Headmaster supported by the Dlrector of Flnance and Buslness Development, the Director of Operatlons, member5 of the Foundatlon Leadershlp Team and the three Senior Leadershlp Teams. Together th15 group represent the key mana8ement personnel. All meetlngs of the full Board of Governors, the F&GP and Compllan Commlltees are attended by the Headmaster and the Dlrector of Flnance and 8uslness Development and the Director of Operatlons. The pay and remuneration of the key management personnel are determlned by Governor5. The Senlor Oeputy attends all meetlngs of the full Board of Governors and of the F&GP and Educatlon Committees. The Prep School Head5 attend all meetlngs of the full Board of Governors and of the Compliance, Education and F&GP Commlttees. Group Strurture and Relationshlps The School has two relaled non-charitable subsldlary companles, Kln8's School Worcester Actfvltles Llmlted (Company No.. 014721451 and KSW Enterprlse5 LlmSted (Company No., 071413481. A mlnlmum of one half of the number of 5ervlng dlrectors on the Board of each subsldlary are also members of the Board of Governors. Klng's School Worcester Actlvllles Llmited Is a company Ilm6ted by guarantee and does not have a share capltal. As such the Ilablllty of each member of the company Is limlted to an amount not exceedlng £1. Thls company Is the enterprlse through whlch commerclal activltles. Includlng the hlre of general school facllltles, take place. KSW Enterprlses Llmited15 a company Ilmlted by shares and its issued share capbtal of £1 is Whol￿ owned by the charlty. Thls cornpany admlnisters the comrnunity lettings of the Astroturf constructed by the school on the slte of Bishop Perowne Church of England College. Employment Poll¢y The School Is an Equal Opportunltles Employer. Full and falr conslderation is given to all job applicatlons and due conslderatSon is given to trainin8 and employment need5. COnsu￿ation wlth employee5, OT their representative5, is undertaken at all leve15 wlth the aim of taking the vlews of employee5 into account when declslons are made that are Ilkely to affect their interests. The Governors reco8nlse the lrnportance of good communication5 Wlth all employees and involve employees wfthln the School'5 Strategic planning procedures. In addition to communlcation through normal management and departmental channels employees are kept well informed of the performance, financial position and objectives of the school through personal brieflngS1 regular meetings. e-mail and presentation5 throughout the year. THE KING'5 SCHOOL WORCESTER ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023 Promotlon of the su¢¢ess of the organisation to benefrt its members The Governor5 confirm that in accordance with Section 172111 of the Companies Act they act in 3 way they ConS￿er mosl likely to achleve the purposes of the Company. In making thls assessment. the Governors conslder the relevant attions of the Board as described throughout the report. Takin8 the areas required for disclosure in turn.. The Ilkely con5equence5 of any declslon In the loni term The long-term sustainablllty of the School 15 detailed in ihe Strateglc Report. Specffically, the Governors conslder both operatlng results and financlal prolectlons and the key rlsks that could negatively Impact the sustalnablllty of the School. The Finance and General Purposes Commlttee and the full board revlew mana8ement Informatlon, budgets, forecasts, cashflow PfoJeLtlons and progress agalnst budget on a regular basls. Rlsk Management and the level of reserves are also distU55ed further In the report. b. The Interests ofthe comp•nVs employee5 In relatlon to employee engagement, weekly br5efln8s keep staff Informed of school wlde matters of Interest. The Governors receNe re8ular reports from management on the wellbeing of the employees and speak dIrett￿ to staff durlng visits to the school. During the year a Stiff and Governor Forum has been set up whlch provldes staff representatlve5 wlth the opportunlty to meet wbth the Chalr and Vlce Chalr of Governors. c. The need to fost•r the Comp¥n￿$ buslness relatlonshlps wllh yrents, suppllers, Ind others. In relation to key stakeholder engagement. the Governors worked closely wlth management to communicate wlth parents, staff and pupi15. Parents receive weekly news update from the Foundatlon vla emall. In accordance wlth flnanclal procedures and standard payment terms, suppller payment is due wlthln 30 days after the School recefves the Involce from the suppller. d. The Impart of the compan￿$ operatlons on the communlty and the en¥lronm•nt The Governors continue to review how the activities of the School Impact on the local communlty and the envlronment. There Is a revlew of Greenhouse gas em1551ons later In thls report In compllance wlth the Streamllned Energy and Carbon Reportlng ISECRI Report. An example of thls is the School transport network whlch has contlnued to expand year on vear. As at September 2023 we now tTan5POrt 150 pupi15 to and from sch¢)ol In mlnlbuses or coaches reduclng the need for household cars to enter the clty The d•51rablllty olthe company malnt4lnln8 a reputatlon for hlih stanthrd5 of buslness conduct The School takes a zer￿tO1erance approach towards fraud, bribery and corruption. It Is ¢ommTtted to complyin8 With all appllcable laws and regulation5 relating to fraud, brlbery and corruption. The need to act f•lrly as between members of the company The Governois understand the Charity Commi55ion requirements and acknowledge the need to avoid and manage potential conflicts of interest. The Company is limited by guarantee so does not have share capital with the result that issues relating to DSrector shareholders or relations between majorlty and minority shareholder5 do not apply. THE KING'S SCHOOL WORCESTER ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023 OBJECTS. AIMS. OBJECTIVES AND AcfiviTIES Charltable Objects The School's Objects and prlnclpal actlvltles, as set out in the Memrandum of Association, are to advance education and trainin& including physical trainin& by the provision and conduct, in or near Worcester, of day andlor boarding schools for boys and glrls with the provlsion of accommodatlon and educational facilities for the Choristers of the Cathedral Church of Worcester and by anclllary or Incidental educatlonal aCt￿ltIeS and other a55oclated activities for the benefit of the community. In pursulng Its charhable objects, the School's mSssSon Ss to help young people reach thelr potentlal at school in preparation for leadlng eonfldent, fulfllled and unselfish Ilves as adults. In furtherante of these Objects for the publlc beneflt the School, whlch operates three schools lone senlor and two prep) known collectlvely as The King's School Worcester, has established and admlnlslers bursariesi grants, awards and other benefactions, and acts a5 the trustee and manager of property, endowments, bequests and glfts 8lven or estab115hed in pursuance of these Objects. The Governln8 Body Is mlndful of the lon8.Standlng need to provide publlc benefft and of the requirements of the Charltles Act 2011. In connectlon with this the Board has monitored closely the guidance on public benefit produced by the Charlty Commisslon together wlth Its supplemental guidance on fee-charglnR. Alms The school's alms for the publlc benefbt are: to provlde a flr5t-class Independent educatlon wlthln an ethos of splrltual awareness and tolerance that Is wldely accesslble. irrespectlve of family financlal clrcumstances,. and to establlsh the khool as a communlty In whlch there are stron8 and actlve partner5hlps between parents and the three schools, and between the local communlty and the three schools. Prlmary objectlves The primary oblectlves of the School to fulftl these alms are.. to malntaln the a5plratlon to hlgh standard5 In academlc performance and extra-currlcular ctlvitles whllst preservlng a healthy balante between the two. to wlden acces5 to the educatlon provlded by the school thTOU8h the provlslon of flnanclal 5UPPOrt for children whose parents are unable to afford the full fees and through a range of projects and activities with the local communlty, Includlng "out of hours" access to the schools, faclllties In order that they are put to good educational use when not otherwSse needed. to provide a stimulatin8 learning environment In whlch puplls can develop thelr academlc potential to the full. to provlde appropriate teachln8 resources and accommodatlon throughout 311 three school5. to provi(Je a happy and secure pastoral envlronment which promotes and develops independent learning* SUPPOrt5 pupi15 in the achievement of their individual potential and fosters a sense of communlty mutual respect and good cltlzenshlp. to provide an effective management structure and the admlnlstratlve and10815tic framework necessary to meet the needs of staff and pupils alike. THE KING'S SCHOOL WORCESTER ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023 The alms and objectives set for the School's sub5idiarie5 are to facilitate the achievement of the School's alms and oblectlves a5 above. Strategies to achleve the prlmary objectlves A key strategy towards the achievement of the prlmary oblectlvesls the annual revlew and update of the School'5 Development Plan and its approval by the Governing Body. An important part of the revlew process Is an assessment of performance durin8 the year against the tarBets set for the perlod, wlth the results of thai assessment belng used to Inform prop05ed targets and artk>n plans for the future. The Development Plan embodies the operatlonal alms and fLrture plans of the School Isummarlsed on page 191 and, once approved by Governors, becomes a tool for use by the key management personnel to Inform operatlonal plannlnB and decislon maklng. The Governin8 Body also keeps under revlew the faclllties avallable to puplls and staff on all three 51te5 and the extent to which additional or improved resources may facllltate the achlevement of the development plan tar8ets. Prlnclpal artlvlty The School's prlnclpal actfvity, a5 Specified In the Memorandum of Assoclatlon, 15 the advancement of educatlon and In this the School has again had a successful year. The School Roll averaged 1,22512022., 1,2381 puplls acros5 all year group5 from Receptlon upwards wlth an addbtlonal 109 puplls12022.' 1221 In Klndergarten on a full or part tlme basls. The khool continues to malntaln the hl8h standards and ethos for whlch The Kln8'5 School Worcester has become known. Publlc beneflt The Kln8'5 School Worcester remalns committed to the alm of provldlng publlc benefit. In 5ettlng the School'5 oblectlves and plannlng Its actlvltles the Governors, as charlty trustees, have glven careful consideratlon to the Charlty Comm1551on's general guidance on publlc beneflt requlrements (under the Charriie5 Act 20111 and In partlcular to it5 supplementary publlc benefit guidance on advancing educatlon and on fee-charging. Whilst the alms of the School Include malntalnlng and enhanclng the academlc success of Its puplls, the khool welcome5 puplls from all bickBrounds and Itls imwrtant that access to the educatlon offered Is not restrlcted to those who can afford the fees. The Governors belleve that puplls beneflt from learning within a diverse community and estab115hed the School's Bursary Scheme land related Developrnent Office fundraisln8 functionl. In 2017 the Foundation launched 3 carnpal8n to raise addltSonal funds for bursarles. The Governors, pollcy is to award 8rants and bursaries on the basis of educatlonal ablllty and parental means Isubject to any restrictions imposed by any donor of the funds) to enable puplls to loln the School. or to ensure contlnurty of education Of this would othepwlse be at risk due to unforeseen hardship or temJx)rary difflcultv. The pupils who attend the School and who recelve financial support contribute to the whole school community In a variety of ways, conferring benefrt upon the whole instit￿10￿ and, in some cases, to the wider community. Flnancial sUPPOrt Is provlded not onty through bursarles but also through the provision of scholar5hlps, grants, and fee concessions. Thls year the School provided financial support totallin8 £2.Im to 496 pupi1512022.. £2.Im to 523 pupils). Within this, mean tested awards ranging from IO% to 100% remlsslon totalllng £0.6m were made to 61 pupils12022: £0.63m to 77 THE KING'S SCHOOL WORCESTER ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023 pup1151, wlth fvrther Bronts to a5SiSt with the ￿5t of extra.currlcular actNlties, equipment and school trips. Of this total nurnber, 16 pupils benefitted from lo￿ remission of fees, with a further 18 receiving awards equivalent to at least 75% fee Temi55ion. Included In these fEures are 5 full bursaries granted to Ukralnlan puplls In the summer term of 22. The Governors take the vlew that the provision of bursarlesls important but not to the exclusion of the much wlder benefit that the School provides to the communlty. The School engages in many other activltles that provide wider public beneflt. Durlng the year the School's facllltles were used to support local schools provldin8 access to 5wlmmlng and sports hall facilities, they are also made available to local charities and community groups. The School has a number of well-e5t3bli5hed partnershlps wlth local maintained senlor and primary schools. Activities Include Inter school qulzies al pflmary level for local schools, maths challenges. workshops In muslc, sports events engagln8 local prlmary schools and drama workshops. The School provldes public access to tultural and educational events, activitbes and productlons durin8 the year this has included a 5erles of mental health workshops. Puplls wlthln all three schools are encouraged to develop an awareness of the soclal context of the educatlon they recelve at the School and en8a8e In lund ralslng actSvltles on behalf of a wlde range of local, natlonal and International charlties. Thls has been partlcularly pertlnent glven the cost-of- livlng cr1515. The khool Is a member of the Rlvers Teachlng Alllance 5harlng best practlces and has taken Students from Gloucester and Worcester Unlversities, amongst others, on Inltlal teacher trainlng courses or PGCE. io THE KING'5 SCHOOL WORCESTER ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023 STRATEGIC REPORT ACHIEVEMENTS AND PERFORMANCE Senior School review of achievements and performance for the year Fundraisin8 performance The Foundation Development fundraising initiative is a long-term proBramme, which is the responsibiif(y of the Alumnl and Buslness Development Office IABDOI. The ABDO fundralses for the benefit of the School through The King's School Worcester Development Trust. wlth approprlate costs borne by the Trust. Th15 arrangement offers greater assurance to donors about the custody of their 81fts and aims to encourage a broader cross-section of the constituent members of the wider school communlty to engage wlth fund ra151ng actbvltle5. The School has a long.term bursary fundralsln8 strate8Y, the alm of which Is to fulfll the orl8lnal objectivè set by our founder, Henry Vlll, of supportlng 40 free places at the School. Invertment poll¢y, objectlves and performance The inve5tment5 Current￿ held by the charity are not materlal. They are, for the most part, Invested through CCLA ManaBement Llmbted In elther COIF charlty funds or CBF Church of England Fund5. and no formal Investment performance revlew Is consldered necessary. FINANCIAL REVIEW Results for the year This academic year has seen a return to more normal tlmes, wbth almost all of our co-eurricul8r events able to run throughout the year and a second year of publlc exams In thelr conventlonal form. However, the year has not been wlthout Its challenges. Wlth the current cost of Ilvlng crlsls, our parents have seen increasing pressure on the affordabllbty of fees,. facln8 dsln8 costs from Increaslng Interest rate5 and food and fuel cost5, the Foundation kept close control of resources over the year and, as a result, has reported a surplus of £250,0￿. Considerlng all these factor5, the Governors are pleased wlth ihls result In what has been another challenglng year. The net incoming resources of the group for the year from operatlons were £251,00012022'. Incomlng resources £177,000). The net Increase In funds forthe year was £250,00012022: Increase £173,OCQI. The net Incomln8 resources forthe year from operations of £250,000 are better than wa5 expected for the year, and thls reflects the cautious nature that the Foundation ha5 taken to controllin8 Costs dLbrln8 the year. The ￿taIned resources are at a level where the School has been able to take action lo fInan￿ the future development of the School's facllities and educational programme. During the year, the School announced its Development Plans for the Sixth Form Centre, as the Sixth Form IYear5 12 and 131 continues to be a key target market- the enhanced Sixth Form facilitles stt alongside a chanBe In the curriculum offered at this age by the School. The Governors made the decision during the year to repay some loans earfy, as well as enterlng Into a base-rate cap on some other loans. The School is cautious In temis of acting against these plan5 while the future impact of the cost of Ilvlng crlsls remains uncertaln. li THE KING'S SCHOOL WORCESTER ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023 ACHIEVEMENTSAND PERFORMANCE Reserves Level and Pollcy The School's Reservès Policy Is to malntaln sufflclent unrestricted Income reserves to enable it to meet its short-term financial obligations In the event of an unexpected revenue shortfall and to rely upon Its reglisable general purposes fixed assets as adequate cover for the School's longer-term flnancial obligations, IncludinB the aciuarlalty calculated but transient funding deficit of £0.62m on the School'5 deflned beneflt staff pension scheme that under FRS102 Is accrued as a Ilabilitv. The School'5 unrestrlcted reseNes a￿ deployed as funds for part of the School's prem15e5 and equlpment and at the year end free ￿selVeS represented a balance of £3.4m 12022.. £4.7ml. The Governors consider that free reserves In the order of £4.2m, or approximately three Inonths, expendlture, would be desirable to cover the risk5 ond uncertalniles of operatlng as an Independent educatlonal establlshment. However, the Governors have actlvely agreed to a reduction In the free reserves In order to repay borrowings which cash balances allow In order to reduce the interest burden on the Sthool. The long-temi pollcy objective 15 therefare to bulld up reseryes out of annual operatlng surplu5e5, supplemented by Foundatlon Development fundralslng, untll that level Is reached, subjed to the prlor demands of further capltal expenditure to equlp the School with the up-to4ate facilltles needed to malntaln the standard of educatlonal service5 currently provlded. The School's tan8lble flxed asset5 are all held for use by the School as dlsclosed In Note 10 to the flnanclal statements. Glven the speciallst nature of the School's land and buildlngs, Governors are unable to comment on the market value of such propertles and whether thls Is materlally dbfferent from that shown in the flnanclal statements. Revlew of achlevements and performanc• for the year Publlc Exams contlnued as usual thls year. The On￿ adaptatlons were formulae sheets In some sublects at GCSE. The alm of Government was to return the dlstrlbullon of Brades to the levels of 2019. At Klng's thls was largely the case for GCSE, althou8h a greater percentage of pupils achleved all 10 GCSES at top grades than In 2019. At A-level, results were higher than in 2019, with a very 5tron8 pass rate at A*.C. Post-18 places were secured easily, wtth the vast malorhy of students achievin8 thelr first.cholce univelsity and fewer than 10 achievin8 nelther thelr first or Second choice. GCSE.. 63% of our pupils achieved Grade 9-7 and 94% achieved Grades 9 to 4. 34 puplls130% of the cohortl were awardeil Grades 9 to 7 in all their subjects, wfth two pupils achieving Grade 95 in 115ubject5. 49 pupSls144% of the cohort) were awarded Grades 9 to 7 in 8 subjects or more. A Level: 46% A*IA, 77% A'B, 93% A-C. 9 studenis received 3 A'grades. 34 students128%1 received A. or A grades in all their subjects. 12 THE KING'5 SCHOOL WORCESTER ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 JULY 2023 Parents, Evenings continue to take place online through a dedicated platform. A survey conducted at the end of the year confirmed that 75% of parent5 would prefer to keep onllne parents, evenlngs. All teachlng took place in person, although those pupils with long-term health issues preventing them from attending school were able to access lessons through Microsoft Teams. Our puplls have once agaln been able to beneflt from the wealth of cossessed the required complitsnce wlth these lows ond regulat￿n5 as part of our oudit procedure5 on the reloredfinanclol statement Items. In oddltlon. we con51deredprov151ons of other laws ond requlatlons that do not have a dlrect effert on theAinoncit715tatement5 buf compllance with which mlght beAundumental to the chority'5 ond the roup's oblllty to operote or to ovold o moterlol penalty. We olso consldered the opportunlties ond Incentlves thot moy exlst wlthAn the chorltoble compony ond the group forlrnud. The law5 and regulotions we consldered in thls contextfvr the UKoperations were The Educotion flndependent sch1￿1 Stondordsj Regulotions 2014. Generol Dota Protection Regulotion (GDPRJ, Heolth and Sofety leqlslotlon. ond Employment leolslurion. Audltlng stondords limlt the requlred oudlt procedures to Identify nonnce wlth these lows ond regulotions to enquiry oAgovernors ond other management and inspectlon oAregulJtory ond legultorrespondence, if any. We identlfled the qreotest rlsk of moterlol Impact on thefinanclolstotementsfrom Irregulorltles, Includlnqfroud. to be with the completeness ond uccurocy of non-fve Income, ond the overrlde of controls by munogement. Our uudit procedures to respond to these risks included enqulrles OA monogement, the Dirertorof Flnonce and 8ts51ne55 Development and the Flnance & Generul Purposes Commlttee obout thelr own Identlficatlon ond ossessment of the rlsk5 of Irreq(JlcJrltles. sumple testlng on the postlng ofiournals, revlewlnq accountlnq estlmatesfor blase5, de51gnlng oudlt procedures over non-Aee income, reviewing regulatory correspondence wlth the Charlty Commlsslon, Independent Schoo15 In5pectorore, Ofstedond reoding mlnute5 of meeting5 of those charged with governance. Owlng to the Inherent Ilrnltatlon5 of an audlt. there Is on unovoldoble rlsk that we moy nothuve detectedsome materiol misstotement5 In thefinonclol Statements, even though we hove properly plunned and performed ouroudit in accordance with auditing stondards. For example. thefvrther removed non-complionce wlth lows ond regulotions firreguloritiesj 15from the events und transaCt10115 reflected in thefinanciol stotements, the less Ilkely the Inherently Ilmited procedure5 required by t7uditing stt7ndard5 would identify it. In addition, os with any audit, there remoined o h￿herrisk of non.detection olirre9ulurities, os these may involve collusion, forgery, Intentionol omi55ions, misrepresentGtions, or the overrlde of Internol contm15. We are not respon51ble fvr preventing non-complinnce t7nd cannot be expected to detert non-complionce with oll lows and regulotion5. 25 ## **THE KING'S SCHOOL WORCESTER INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KING'S SCHOOL WORCESTER** _**A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council's website at: www.fc.orq.uk/auditorsresponsibilities. This description forms part of our auditor's report.**_ ## _**Use of our report**_ _**This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.**_ ## _**Guy Biggin**_ _**Senior Statutory Auditor**_ _**For and on behalf of**_ _**Crowe U.K. LLP Statutory Auditor Carrick House Lypiatt Road Cheltenham GL502QJ**_ _**Date: 13 December 2023**_ 26 THE KING'S SCHOOL WORCESTER CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2023 Unrestrlcted Restricted Endowed Funds Funds Funds £'ooo £'O(M) £'wo 2023 Totsl £'ooo zozz Total Note Income and endovmients frorn: Charltable actfvltles School fees receivable Ancillary tradlng Income 17,658 1.668 17.658 16,828 Other tradln8 actl¥ltles Non-anclllary tradlng Income Other actlvltles 239 21 239 21 192 42 In¥estment5 Interest and investment income 143 146 16 Volunt•ry sources Grants and donatbons Total Incomlng resourc Expendlture on., 71 245 316 3CQ 18,186 19,800 247 20,IY18 Ralslni fufids Non-ancillary tradlng Flnanclng Costs Fundralslng and development 227 152 134 227 152 134 183 62 129 Total Charltable artlvltles Education and grant mikln8 Pension scheme re-measurement of the estimate of past service costs Tot•1 expendltur• Net incomlng funds from operatlons before transfers & Investment Balns IL0s5esl on investments Net $urplu$ Transfers between funds Net movement In fund5 for the year Fund balances brought forward at l August 2022 Fund bilances ￿rrI￿ fonmard at 31 July 2023 513 513 374 19,105 246 19.3SI 17,478 23 1671 19,551 167) 19,797 157 18,009 246 249 251 177 li 14) 173 250 (i) 250 22 250 250 173 23,332 361 23,751 23.578 22 23.582 360 59 24ml 23,751 The notes on pa8es 31 to 56 form part of these flnanclal statements. 27 THE KING'S SCHOOL WORCESTER CONSOLIDATED SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2023 2023 2022 Unrestrirted and Restrlrted Funds Unrestricted ond Restrlcted Funds Totsl Total E'L￿0 INCOME FROM: Charltable artlvltles School fees 17.658 1,668 16,828 Anclllary trading Other Ir•dlng actl¥ltleJ Fundralslng tradlng Other income 239 192 21 42 Investments Dlvldends, bank Jnd other interest Voluntary sources Grants and donatlon5 146 16 -Unrestrlcted 71 -Restrlcted 245 TotBI Income 20,048 18.186 Expendlture on: R•lsln8 funds Tradlng costs Flnancln8 C0515 Development costs Ch•rlt*bl¢ *¢t￿￿1*% Educatlon and grant-maklng Pension scheme re-measurement 183 152 62 134 129 19,351 1671 17,478 157 Totsl ejtpendlture 19,797 18,009 Net funds before Investment gains and inter- fund transfers Net Investment Ilossesl for the year 251 177 f4J Net Income forthe year 250 173 The above Summary Income and Expenditu￿ Account ￿preSentS the total unrestrlcted and restrlcted Income and expenditure as shown in the wnsolidated Statement of Financlal Activlties on pa8e 26 and Its presentatlon Is requlred under the Companies Act 2006. The notes on pages 31 to 56 form part ol these flnanclal statement& 28 THE KING'S SCHOOL WORCESTER CONSOLIDATED AND SCHOOL BALANCE SHEETS AS AT 31 JULY 2023 Company Re8lstered 04776324 No: Consolldated Scho 2023 £'ooo 2022 2023 £'ooo 2022 Not•s FIXEDASSETS Tangible assets Securities Investments io li 22,270 303 21,740 304 22,270 303 21,740 304 22,573 22,044 22,573 22.044 CURRENT ASSErs Stock Debtors Cash and depos￿$ 12 608 6.408 7,017 606 7,175 7,782 618 6,374 6,993 775 6.959 7.735 CURRENT UA8ILITIES Creditors payable wlthln one year 13 {3￿63> (2,5511 13,0441 12.523) NET CURRENT ASSETS 3,954 5,231 3,949 5,212 TOTAL ASSETS LESS CURRENT LIABILITIES LONG TERM UABILITIES Creditor5 payable after one year Penslon Scheme fundlng deficlt 26,527 27,275 26,522 27,256 14 23 11,9041 16221 f2, 782) 1742) 11.9041 16221 f2, 7821 (742) ASSErs 24,001 23,751 23,996 23,732 REPRESENTED BY: ENOOWED FUNDS 22 59 58 59 58 RESTRICTED FUNDS 22 361 361 UNRESTRICTED FUNDS General reseNe 22 23,582 23.332 23,577 23,313 24ml 23.751 23,996 23,732 The net movement In funds for the School In the year Is a surplus of £264,fMXI12022: £165,OCK)I. These financlal statements were approved by the Governlng Bo the Oecember 2023 were slgned o Its behalf bv P Presti Chalr of Governors GWBal Chalr of the Hn•n¢e and G¢ner¥l Purpose5 Commlttee The notes on pages 31 to 56 forni part of these flnanclal statements. 29 THE KING'S SCHOOL WORCESTER CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 JULY 2023 2023 2022 Note r(MX) £'ooo f¢Th £'C4 Net cash Infiow from operatlons Net cash provlded by operatlng actlvltle5 25 L707 1,335 Cash from Inve5tlns Ktlvltles.. Payments for tanglble flxed assets Proceeds on sale of fixed assets Investment income and bank interest recebved Net cash lus•d Inl Inv•stln8 actlvltl•i 11,4891 (283) 146 16 11,343) (2671 Cash Ilryws from flnanclng actlvliles: Loan advances Inet of repayments) Loan repayments Penslon deflclt payments Flnance costs pald 171 {10971 1761 11291 (729) {69J (56J Net cash lujedl by flnancln8 •Ctl¥ltl•s Change In cash Jnd cash equlv•lents In the iepNtlni perkxl 11,131) 18541 17671 214 C*th and cash *qulv*l•nts at l Au8USt 20ZZ 7.175 6.961 Cath and cash equlv•lents at 31 July 2023 25 7.175 The notes on pages 31 to 56 form part of these nn•nclal statements. 30 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 I. ACCOUNTING POLICIES Charlty information The School 55 a Publlc Benefit Entity registered as a charity in England and Wales and a company limlted by guarantee. It Was Incorporated on 23 May 2C(13 Icompany number.. 047763241 and reglstered as a charity (with charity number: 10982361, the registered office address bein8 5 College G￿en, Worcester, WRI 2LL. 8asls of accountln8 The financial statements have been prepared In accordance wlth the Flnanclal Reportlng Standard applicable in the UK and Republi¢ of Ireland IFRS1021, the Companies Act 2006 and the Statement of Recommended Practlce applicable to charltles preparin8their flnanclal statements in accordance with the FSnanci81 Reportlng Standard appllcable In the UK and Republlc of Ireland IFRS 1021. The functlonal currency of the school 15 consldered to be GBP because that is the currency of the Pfimary economlc environmenl in which the School operate5. The fininclal 5tatement5 are drawn up on the hlstorlcal cost basls of accountlng, as modlfled by the revaluation of investments. The financial statements present the consolidated statement of financial actlvltbes ISOFAI, the consolidated cash flow statement and the con501idated and Charrty balance sheets comprlslng the ¢on5011datlon of the School and Its wholly owned subsldlaries Kln8's School Worcester Artlvltle5 Llmlted and KSW Enterprlses Llmited. The net movement In funds for the year of the group wa5 a surplus of £250,0(X) for the year ended 31 July 202312022.. surplus E173,IXIOI, No separate Statement of Flnanclal Actlvltles ha5 been presented for the School alone, as permltted by Sectlon 408 of the Companles Act 2C￿6. The net results of the School are dlsclosed wlthln the 8alance Sheet. The School has taken advantage of the exemptlon avallable to a quallfylng entlty In FRS 102 from the fequlremeni to present a School only Cash Flow Statement wlth the consolldated flnanclal statements. Goln8 concern Havlrtg revlewed the fundln8 facllltle5 avallable to the School together wlth the expected ongolng demand for places and the School's future projected cash flows, the Governors have a reasonable expectatlon that the School has adequate resources to contlnue fts activltle5 for the foreseeable futurei partlcularly In reference to the statement under Rlsk Management a5 Set out In the Governors, report. The Governors consider that there were no materlal uncertalntles over the School's financlal viability. Accordingly, they also wntlnue to adopt the 8oin8 concern basls in preparing the flnancial statements as outllned In the Statement of Accountlng and Reportlng Responslbllltles on page 21. Crltlcal accovntlng lud8ements and key sources of estlmatlon uncertalnty In the application of the accountlng pollcles, Trustees are requlred to make judgements, estlm3tes, and a55urnption5 about the carrying value of assets and Ilabillties that are not readity apparent from other sources. The esllmates and underlyln8 assumptions are based on hlstorical experience and other fèttors that are considered to be relevant. Actual results may differ from these estimate5. The estimate5 and underlying assumptions a￿ reviewed on an ongolng basls. Revislons to accounting estlmates are 31 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 recognised in the period in which the estimate is revised rf the Tev15ion affect5 only that period, or In the perlod of the revislon and future periods If the revlsion affected current and future periods. In the vlew of the trustees, no assumptions concerning the future or estimation uncertainty affectlng assets or liabilities at the balance sheet date are likely to result in a materlal adjustment to their carrylng amounts In the next tlnanclal year. The folbwln8 accountlng pollcles have been applled Consistent￿ In deallng wlth items which are considered material in relation to the SchooY5 financial 5tatement5. 1.1 Fee5 and slmllar earned Income Fees rece6vable and charges for servlces and use of the premlses. less any allowance5, scholirshlps, bursarles granted by the School aBainst those fee5, but includinB contributions recewed from restricted funds, are accounted for in the period in whlch the servlce Is provbded. 1.2 Investment Income Investment Income from dlvldends, bank balances and flxed Interest securltles Is accounted for on an accruals basis. Income from investment properties 1$ accounted for In the perlod to whlch the ￿ntaI income relates. 1.3 Non-anclllary tradln8 Income Income comprlses the value of sales lexcludlng VAT and slmllar taxes and trade dlscountsl of 8oods and servlces made by the School's trading subsldlarles in the normal course of bu51ne55. 1.4 Don•tlons, Iqacles• Brants And other Voluntary Incomln8 resources Voluntary Incomln8 resources are accounted for as and when entltlement arlses, the amount can be reliably quantifled and the economlc benefrt to the School is considered probable. Voluntary Income forthe School'5 8eneial purposes bs accounted for as unrestrlcted and Is credlted to Ihe General Reserve. Where the donor or an appeal has Imposed trust law restrlcllons, voluntary Income Is credlted to the relevant restrlcted fund and Incomlng endowments are accounted for as permanent trust capltal or expendable trust capital, accordln8 to whether the donor intends retentlon to be permanent or not. Glfts In klnd are valued at estlmated open market value at the date of gfft. In the case of assets for retentlon or consumption, or at the value to the School In the case of donated 5ervlces or facilltles. 1.5 Expendltur• Expendfture b5 accrued as soon as a Ilabllity Is consldered probable, dlscounted to present value for lon8er-ierm liabilitles. Expendlture attrlbutable to more than one cost category in the SOFA 15 apportioned to them on the basS5 of the estimated amount attributable to each activity in the year. elther by refe￿nce to staff tlme or the use made of the underlylng assets. as approprlate. Irrecoverable VAT Is Included wlth the Item of expendlture to whlch It relates. Grants awarded are expensed as soon as they become legal or operatlonal commltment5. Governance costs comprise the c05t5 of complyin8 Wlth constitutional and statutory requirements. Intra-group sales and charEes between the School and Its subsldlarles are excluded from consolidated trading income and expendlture. Redundancy and termination costs only occur where ab501utely nece55ary and a￿ accounted for on an accruals basis when the commitment to terminate a post on the grounds of redundancy or termlnate an employee's contract has been made. 32 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 1023 1.6 Tan8lble flxed assets Bubldlngs erected before 1947 are not included in these financial statement5. Therels no expendlture incurred in the Improvement of these prOpert￿S capitalised in the financial statements as all amounts of expendhure were of a revenue nature. Fixtures, fittings, equlpment purchased for dlrect use wtth puplls lacademlc and extra- curricular) and ICT equipment costs are written off as an expense as acquired. Expenditure on the acquisltion of land, construction of new buildings, motor vehicles and other non ICT assets intended to be used for more than two years are capitalised on acqulsition and depreclated over thelr estlmated usefvl Ilfe. I equipment U5Èd to support the School's sy51ems infrastructure Is capitallsed on acquisitions and depreclated overthelr estimated useful Ilfe. Other expendlture on equipment Incurred In the normal day-to-day runnlng of the School and tts SLtbsidiarles Is charged to the Statement of Financial Actlvities as Incurred. 1.7 Depreclatlon Depreciation is provided on all tanglble flxed a55et5 on a 51ral8ht-Ilne ba515 at rates calculated to wrlte off the c05t of the assets over it5 estimated useful life a5 follow5., Freehold and long leasehold buildings over 40 years lor the lease term If shorter) Freehold and leasehold buildlngs repalrs and refurblshment- over 5 to 10 years FSxlures, flttln85 and equlpment over 3 to 10 years Motor vehlcles - over 5 years ICT Equlpment over 5 to 10 years lor lease term15 shorter) Assets In the course of constructlon - not depreclated 1.8 Investments Investment a55et5 are carried ot thelr market value as at the balance Sheet date. Unreallsed Balns and 10s5es arlslng on the revaluatlon of Snvestment5 are credlted or charged to the Statement of Flnanclal Activltles and are alkncated to the appropflate Fund accordln8 to the "owner5hlp" of the underlylnB assets. 1.9 Stock Stock Is carrled at the lower of cost and nel reallsable value, 1.10 Fund *¢countlni The charrfiable trust fund5 of the School and it5 subsldlarles are accounted for as unrestrlcted or restrlcted Income, or as endowment tapltal, In accordance wRh the terms of trust Imposed by the donors Of any appeal to which they may have responded. Unrestrlcted Income belong5 to the School'5 Corporate re5erve5, spendable at the discretion of the Governors ebther to further the School's Objects or to beneflt the School itself. Where the Governors declde to set a51de any part of these funds to be used In future for some specific purpose, thls Is accounted for by transfer to the appropriate designated fund. The endowed funds comprf5e a number of Individual trust funds establlshed by speclfk donors, the capltal of whlch may not be expended. Reslrlrted income comprise5 gffts, legacies, and grants where there is no capital retention obligation or power but only a trust law restrictlon to some spe¢ifi¢ purpose intended by the donor. 33 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 1.11 Penslon costs Retirement beneffts to employees of the School are provided through two pensbon schemes, one deflned beneflt and one defined contribution. The pension costs charged In the Statement of Financlal Activltles are determined as follows- lal The Teachers, Pension Scheme- Thls scheme is an unfunded multi-employer defined beneflt penslon %heme. It Is not possible to identify the School's share of the underlying assets and Ilabllities of the Teichers, Pension Scheme on a conslstent and reasonable basis and therefore, as required by FR5102, accounts for the scheme as if it were a defined contribution scheme. The School's contrlbution5, whlch a￿ in accordance with the recommendatlons of the Government Actuary, are charged In the perlod In whkh the salarles to whlch they relate are payable. Ibl The Kin8's School Worcester Personal Penslon Plan Thls Is a deflned contrlbution group personal penslon plan wlth The Pensions Trust. Employer's pensions costs are charged In the perlod In whlch the salarles to whlch they relate are payable. Icl The Support Staff Penslon Scheme adminlstered by The Penslons Trust. Thlsls an occupatlonal deflned benefft scheme. The Independent Schools, Penslon Scheme IISPENI Is a multl- employer scheme. As such It Is not posslble In the normal course of events to Identify the share of the underlyln8 assets belonging to the indlvldual partlclpatlng employers, and attordlngly, In accordance wlth sectlon 28 of FRS 102 It Is accounted for as a deflned contrlbutlons scheme w￿h contrlbutlons belng recorded as they become payable. A Ilabllity15 recognlsed on the balance sheet however equal to the P￿Sent value of contributions payable under the agreement to fund a deficit. The present value is calculated usin8 the discount rate of 5.70%12022.. 3.24%). The unwlndlng of the dlscount rate Is recognlsed as a flnance cost, 1.12 Oper•tln8 le•se> Renlals under operating lease5 are charged on a stral8ht-Ilne basls over the lease term, even if the payment5 are not made on such a basls. Benefits received and recelvable as an Incentlve to slgn an operatlng lease are 51mSlarfy spread on a stral8ht-Ilne basls over the lease term. 1.13 Flnance leases Leases are classlfied a5 finance leases when the terms of the lease transfer substantially all the risks and rewards of ownership of the leased asset to the Company. Assets held underfinance leases are recognlsed Inltlally at the falrvalue of the leased asset or. If lower. the present value of the minlmum lease payment5 at the inception of the lease. The corre5pondln liability is Included In the balance sheet a5 obligations under finance lease5 Within creditors. Lease payments are apportloned between finance char8es and reductlon of the lease Ilabllity using the effectlve Interest method to achieve a constant rate of Interest on the remalnln8 balance of the Ilablllty. 1.13 Ananclal Instnlments Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost wlth the exceptlon of investments which are held at falr value. Flnanclal assets held ai amortised cost comprise cash at bank and in hand, tO8ether wlth trade and other debtors and accrued Income. A speclfic provision is made for debts for which recoverability is in doubt. Cash at bank and in hand 15 defined as all cash held in instant access bank accounts and used a5 workin8 Capital. Financial liabilitie5 held at amortiseil cost comprlse all creditors except fees in advance, 34 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 social security and other taxes and provisions. Assets and liabilities held in forei8n currency are translated to G8P at the balance sheet date at an appropriate year end exchange rate. 1.14 DerlvatNe flnanclal In5trurnents Derivative financial instruments are initially recognised at fair value on the date the derivatlve contract15 entered into and are Subsequent￿ remeasured at their fair value. The School has a base rate cap contract In place to cap the exposure to Interest rate movements. The movement in the falr value of the derivatNe instrument is recorded wlth financlng costs. Hedge ac¢ountin8 has not been applied. 2. CHARITABLE AcllviTIE5- FEES RECEIVEABLE 2023 2022 Fees recelvable conslst of: School fees Less.. total butsariesi 8rants, scholarships and allowances 19,616 (2,225) 17,391 222 45 18,788 {2,200J 16,588 183 57 Add back: 8ur5arle5 and other awards pald for by restrlcted funds Add back; Fee remlsslon under salary sacrlfice scheme 17.658 16,828 Scholarshlps, bur5arle5 and other remlsslon awards were pald to 496 puplls12022'. 5181. Wlthin thls means tested bursarles totalllng £629,758 were pabd 10 61 pupi1512022: £625,306 to 77 pup1151. 3. CHARITABLE AcfiviTIES-ANCILLARY TRADING INCOME 2023 2022 Puplls, extras charges Aeglstratlon fees Break servlce Holiday clubs Trainlng Income Commission, events, and other Income Letting of property Profit on sale of fixed assets 1,441 15 16 13 28 182 145 li 21 1.668 808 35 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 4. OTHER TRADING ACTIVITIES 2023 2022 £'ooo Non4n¢lllarylradlnB IrKom• King'5 School Worcester Activltles Ltd KSW Enterprb5es Ltd 230 179 13 239 192 2023 £'ooo 2022 Oth•r Ktl¥ltl¢s Late payment admln15tratlon charges Renewable energy and other Income 20 41 zi 42 5. BANK INTEREST AND INVESTMENT INCOME Unrestrl¢ted Rertrlrted Endowed £'ooo 2023 2022 Investment Incaffl•: Egultles Bank Interest 140 140 io 6. GRANTS AND DONATIONS RECEIVABLE Unrestrlrted Restrlcted Endowed £'ooo £'ooo 2023 2022 Recelved from KIn￿5 School Worcester Development Trust for.. Bursarles Other donatlons Homes lor Ukralne 222 23 222 183 117 21 50 71 245 316 300 36 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 7. ANALYSIS OF EXPENDITURE •) Expendlture Staff costs Depreen Inote 91 (note 101 Other Totsl 2023 Total 2022 Costs o18eneratln8 lunds Trading Costs Cost of other actlvltles Flnanclng costs (note 81 Foundation Developfflent COStS 227 227 183 152 43 152 134 62 129 91 Tot•1 Msts of 8ener•tln8 fund5 91 422 513 374 Charltable expendlture Educotloft ond gmnt moklnl Teaching Weware Premlses Support costs and governance Grants, awards and prlzes Inote 7bl 9,876 576 634 1,364 38 2,833 463 1,859 541 246 12,747 11,208 916 3,409 1,905 246 3,181 1.821 300 Tot•1 ¢h•rlt•ble expendlture 12,450 959 5,942 19,351 17,478 Total expended 12,541 959 6,364 19,864 17,852 bl Grants •w•rds •nd prlz•s 2023 2022 From A*￿tItted Fufidi: Bursarles 222 183 Other grants and awards 24 117 240 300 cl Governance Included In support costs.. 2023 2022 rooo 18 Remuneration paid to auditor for audit services Reimbursement of personal expenses to Governors costs 20 travel 21 18 37 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENT5 FOR THE YEAR ENDED 31 JULY 2023 Travel expense5 were claimed by I member12022- 11 of the Goveming body. No Governor Tecerved any remuneratlon during the year ended 31 July 2023 12022: nil) and no retirement benefit5 are accrulng. In addition to the above audlt remuneratlon the financlal statements include amourits payable to the auditor in respect of taxation and Teacher5, Penslon compliance seThlces and athl¢e totalllng £1,140 12022= £1.1101. FINANCE AND OTHER COSTS 2023 £'ooo 2022 Fees in advance financin8 C05t Loan flnanclnB Cost Impalrment losse5 charged to flnancial a5set5 Derivative flnancial instruments 8alns/losses Penslon Scheme financlng cost li 105 31 {181 23 72 (19J 152 62 38 THE KING'S SCHOOL WORCESTER NOTE5 TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 9. STAFF cosrs The aB8regate payroll costs for the year were as follow5.. Restoted 2022 2023 Wages and salaries social Security costs Pension cost 9.369 8,954 887 1,583 1,643 11,916 11,424 Staff non-salary beneflts Contract caterlng and aBency staff costs Apprenticeshlp levv Fee Remission under Salary Sacrifice Scheme and benefits 75 473 J2 45 43 431 30 57 12,541 11,985 ABgregate employee benefits of key mina8ement per50nnel.. 922 865 2023 2022 Number of hlgher pald employee5 In bands of.. £60,CQO to £70,000 £70,(X)I to £80,O £80,(Kll to £90,000 £130,001 to £140.OJO 2023 2022 The number of staff wlth retlrement benefits accruin8'. In Oefined Contrlbutlon schemes was of which the contributions amounted to 138 £208.140 130 £176,448 In Defined Benefit 5cheme5 Was 146 150 The average number of staff employed during the year was 35212022.. 3481. The avera8e number of full-time equivalent Staff during the year wa5.. 2023 2022 Teachlng Domestlc Premises Administratlon FundraisinB 195.3 191.5 24.8 36.4 25.1 34.9 262.9 257.5 During the year redundanry and teTmination payments lor otherwise relating to compromise agreements) were due of £nil12022- £20.8941. The amounts outstanding at the year end were £nil 12022.. £4,(NJ)i. 39 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 10. TANGIBLE FIXED ASSETS Long Assets in Fixtures, leasehold course of fittings & Motor property construttion equlp't Vehlcles £'ooo £'ooo Group and School Freehold Propertv £'ooo Total £'ooo Cost Al l August 2022 Addltlons Disposals Transfers 33,691 77 3,811 25 1,179 1.070 199 13781 274 245 34 38.842 1,489 13781 12741 At 31 Juby 2023 33,768 3,811 930 1,165 279 39.953 Depreclatlon At I Au8USt 2022 Charge for year Dlsposals 12,215 865 3,734 1,000 50 13781 153 35 17,102 959 13781 At 31 July 2023 13,080 3.743 672 188 17,683 book v*lu* At l August 2022 21.476 77 25 70 92 21.740 At 31 Juty 2023 20,688 68 930 493 91 22,270 The School has 8 number of long-held hlstorlc assets, whkh are used In the Course of the School's educational activities in accordance wlth the Charlty Commlssloners Approved Scheme lunder which transfer of a malor Interest In such property by the School would requSre the consent of the charlty Commission). These comprise listed bubldlngs on the school slte tO8ether wlth manuscrlpts and other artefacts wlthln the school archive. Glven the age, nature and restrlcted use of the buildln85 and the unlque nature of other archbve Items, rellable hlstorlcal cost Informatlon Is not avallable for these assets and could not be obtained except at disproportlonate expense. However, in the opinion of the Governor5 Ihe depreciated hlstorkal cost of these assets would now be Immaterial. Capftal Commltments Group and School 2023 2022 Future capltsl expendlture Authorised and contracted for but not yet completed 274 265 Capltal Commltments The School has been 8fanted an optlon to purchase the freehold Interest of one of Its leasehold properties, exercisable at a future date and has securlty of tenure until that date. In respect of the same propertyi the school has Eranted the lessor, land successors In tltlel, an optbon to require the School to purchase the freehold interest on the death of the lessor or rf the lease is forfeited. In the event that either option is exercised the purchase price of the freehold Interest will be based upon a valuation of the property on the date of the exercise of the optlon. THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 Tangible fixed assets include two propertles wlth a net book value of £5.4m12022: E5.5ml whlch are charged as 5ecurf¢V for a proportion of the School's bank loans. Tangible fixed assets include assets with a net book value of £171k which are secured under finance leases. 11. INVESTMENTS Group and School Unrestrlcted Restricted É'ooo Endowed £'ooo Total £'ooo Equlty Snvestment5 At l August 2022 Unreallsed losses In year At 31 July 2023 164 104 36 304 165 102 36 303 All Investments are Ilsted on the UK stock exchaTb8e and are held by the School. Subsldlary undertakln y virtue of common control Klng'5 School Worcester Activlties Limlted (Company No.. 014721451, company Ilmlted by 8uarantee and re8lstered in England and Wales, 15 recognised as a wholly owned subsldlary undertaklng ofthe School. KSW Enterprlses Llmlted Icompany No.. 071413481 Ss a company registered In England with an Issue share capital of £1, which Is wholty owned by the School. The results of ihe5e 5ubsldlarles are reported In note 24 to the flnanclal statements, 12. DEBTORS Group Sthool 2023 £'ooo 2022 2023 2022 Fees and extras recelvable Trade debtor5 Due from subsidlary companles Derivatlve flnanclal Instruments Sundry debtors Prepayment5 and accrued Income 109 22 159 109 159 3Z 172 34 17 426 17 426 80 364 fA16 618 775 All debtors are due within one year. 41 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENT5 FOR THE YEAR ENDED 31 JULY 2023 13. CREtIlTORS: •mounts falllng due ¥*ithin one year Group School 2022 £'ooo 2023 £.￿0 2022 2023 Bank loan Inote 151 Flnance lease creditor Inote 161 Trade creditors Reglstratlon deposltS Taxation and soclal security Due to subsidiary companie5 Other credltor5 Fees In advance scheme (note 171 Accruals and deferred income 498 39 667 230 235 498 39 663 230 235 568 492 221 223 475 221 223 321 2Z6 295 173 579 318 226 835 293 173 570 3,057 2,551 2.523 14. CREDITORS.. amounts l•lllna due after mor• th•n pne y¢4r Group School 202J £'ooo 2022 2023 2022 Bank loan (note 151 Flnance lease credltor (note 161 Fees In advance 5cherne (note 171 1,701 132 71 2,728 1,701 132 71 2.728 54 2.782 2,782 15. BANK LOANS Group and School 2023 2022 £'ooo The bank loans I￿ repayable by Instalment5,' Due after more than 5 years Due within 2- 5 year5 Due after more than one year Due within l year 210 1.491 1,701 498 628 2.100 2,728 568 2,199 3,296 The bank loans are secured by way of a fixed charge dated 4 September 2¢J)9 over two of the company's freehold propertie5 Ithe site known as King's Hawford and the new pre-preparatory sch¢)ol located at Mlll Street Worcesterl. The loans. which are repayable over a period of up to 20 years from 42 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 Juty 2009, 13 years from June 2014 and IS years from january 2016, are Main￿ variable rate borrowings at interest rates ran8ing from 1.20% to 1.31% above Bank of England base rate. The CBIL loan Is a flxed rate loan at 1.96% repayable over 5 years from August 2021. In November 2022 one loan has been repaid early in agreement wf(h the bank, this has had a positive irnpact on the future interest rate costs of the School with no impact on the assoclated covenants. In addition. a base rale cap has been put In place coverlng £806,727 of the bank loans capplng Interest at 3.7.%, see note 18. 10. FINANCE LEA5E5 The future mlnlmum lease payments are as follows: Group and School 2023 2022 £'ooo Not later than one year Later than one year and not later than flve years 49 147 196 1251 Future flnance charges Net obll8atlons under flnance leases 171 The flnance leases are for IT equlpment whlch Is beln8 acqulred under a flnance lease over a perlod of 4 years. The a55ets are ￿co￿nIsed as tanglble flxed assets. 17. FEES IN ADVANCE SCHEME Parents may enter Into a contract to pay to the School tultlon fee5 In advance. The money may be turned subject to speclflc condbtlon5 on the recelpt of one term's notlce. Assumlng puplls wlll remaln In the School advance fees wlll be applled as follows.. Group •nd khool 2023 2022 rooo £'ooo Wlthln 2 - 5 years Within 1-2 year5 After more than one year 54 71 54 Wlthln l year 226 173 297 227 43 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 Summary of movements in liability 8alance at l August 2022 New contracts Amounts accrued to contracts as debt flnanclng cost Amounts used to pay fees 227 691 li 16321 Balance at 31 July 2023 18. FINANCIAL INSTRUMENTS Group •nd School 2023 2022 FSnanclal assets measured at falr value a03 304 Flnanclal assets held at falr value Include assets held as Investments, Impalrrnent losse5 charged to flnanclal assets measured at amort15ed cost in the year amounted to £31,0(K)12022.' £nlll. The School has entered Into a base rate cap contract to mbtbgate the rlsk of rlsln8 exchan8e rates. At the 31 2023 the School had the followln8 Outstandlng contracts.. Group and khool 2023 2022 £'oJo Wlthln I year 34 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 19. OPERATING LEASES Commltments The total remaining operating lease commitment in respect of the unexpired period of current operatlnB leases Is as follows: 2023 2022 Group and khool Land and bulldings Lond ond bulldlngs Other Total £'ooo Other Total On leases Within I year Between 1-2 years Between 2-5 years After 5 year5 16 124 104 310 1,041 115 li 126 114 319 1,146 103 310 1,042 310 1,146 1,563 17 1,679 26 1.705 Charye for the ye*r The amounts payable under operatlng leases and charged as expendlture durlng the year are as follow5.. Group •nd Stht>oI 2023 £'ooo 2022 1•15e$ In respect of: Land and bulldln8S Plant and equlpment 114 29 109 143 117 20. FUNDS OF THE SCHOOL The School's funds are analysed under the followln8 headlngs. •> Endow•d Fund5 The endowed fund comprlse5 an Indlvldual trust Sel up by an individual donor to support Specif 5cholarshlps. A dlstlngulshlng feature of the speclal trust Is the donorfs express requlrement or impllclt Intention that the funds shall not be spent Immedlatew but should be retalned. The trust is not pooled for Investment and Is credtred w￿h the relevant Investment Income and bears Its own expenses. The Dean Forre5t Fund to support a scholarship, wrth preference for former chorlslers Intentling to take HO￿ Orders or who are sons of clerBY. 45 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 b) Restrlcted Funds Over a number of year5, the School has received donation5 where the donors have placed restrictions on the uses to whlch the gifts may be put. The Fund5 thus restricted under charity law, and whlch are partly invested in separate investment securities and partly in the School's pooled deposlts, are: The Canon Catley Scholarshlp to provlde buT5arles to puplls. and Bursary Fund The Specific Small School Prolects Fund to provide resources for specific named projects and puplls. The Annual Fund donatlons wllclted from parents of puplls each year to be expended In the short term upon a range of addltlonal pupll resources. The Reeves Math5 Prlze Fund to award priies for excellence in mathematlcs. The Astroturf Fund to provide re50urce5 for the future resurfaclng of the pltch. The M Steven5 Fund to provlde bursarles In respect of the cost of trlps and extracurrlcular activlties. The Foundatk)n Development Fund5 represent donations recelved from external donors throuBh the charlly The Kln8'5 School Worcester Development Trust charlty where the sums received are for specSflc purposes but where there15 no requlrement to preserve capltal. Expendlture direct￿ flnanced by such donation515 shown under restricted funds. The Foundatlon Development Bursary Fund to provlde bursary support to puplls The Keyes Bulldlng to provlde a contrlbutlon to the total caphal cost Iclrca £9ml of the new bulldlng The Foundatlon Development Sundry Special funds represent funds received to support a number of small projects the balances on each Indlvidual fund beln8 below £lO.CQO Foundatlon Development Sundry Speclal funds At 31 July 2023 these were.. School Flag Fund Cricket Pavllion Fund Annuil Fund Reeves Maihs Prize Fund M Stevens Fund 320 1,369 7,057 1.000 6,794 16,540 Donations received through the Foundatlon Oevelopment Offlce lor the general beneflt of the 5ch¢)ol without any restriction are accumulated within unreslricted funds. Althou8h expenses may be apportioned acros5 all the individual funds arising as a resutt of the fund- raising activltSes of the Foundation Development Office this policy has not been adopted In order that 46 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 the financial statements give a clear indicatlon of the total value of donations made to specific prolects. ¢1 Unrestrlcted Funds Unrestrlctetl funds represent accumulated Income from the School's actfvltles and other sour￿$ and are avallable for the general purposes of the School. 21. ANALYSIS OF NET ASSETS BETWEEN FUNDS 2023 Unrestrlcted £'(K)o 22,270 165 3,675 12,5261 Restrirted Endowed £, 000 Total Tanglble fixed assets Investments- securltles Net current a55ets Long term liabllltles 22,270 303 3,954 2,S26 102 256 36 23 23,784 358 59 24,001 Unrestrlcted £'ooo 21,740 164 4,952 13,5241 Restrlcted £'ryJo 2022 Endowed £, coo Total £,￿0 21,740 Tan8lble fixed assets Investments- securltles Net current assets Lon8 term Ilabllitles 104 257 36 22 5,231 {3,524) 23,332 361 58 23,751 47 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 22. GROUP SUMMARY OF MOVEMENT ON FUNOS al Year to 31 July 2023 Atl August Incomin8 2022 resources £'ooo £'ooo Transfers Unrealised betwee 8ains funds Illo$sesl £'ooo £'ooo At31 July 2023 Resources expended Unrestrlctsd funds General reserve Trading sub5idlary reserve5 23,313 19,561 119,3241 26 23J77 19 239 2271 1261 23,332 19,800 119,5511 23.582 Restrlrted funds Canon Catley fund Astroturf fund Specific Small School Prolects fund Foundatlon Development re5trlrt•d lund5 Bursary fund sundry Speclfic funds 168 99 99 23 1241 222 12221 io io 361 247 12461 Pemi•nent Endowed lunds Dean Forre5t 58 59 59 Totsl Funds 23,751 20,048 119,7971 Z4.001 48 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 22. GROUP SUMMARY OF MOVEMENT ON MAIOR FUNDS bl Year to 31 July 2022 Atl Au8USt Incomin8 2021 resources £'ooo £'ooo Transfer5 Unrealised between 8alns funds Illossesl £'ooo £'ooo At31 July 2022 £'ooo Resouices expended £,￿0 Unrestrlcted funds General reserve Trading subsidiary reseNes 23.149 17,690 117,5261 23,313 io 192 11831 19 23,159 17,882 117,7091 23332 Restrlcted lunds Canon Catley fund Astroturf fund Specsfic Small School Projects fund Foundtstlon Developnent trlrtedlunds Bursary fund Sundry Speclflc funds 131 168 99 99 117 11171 80 io 183 11831 io 361 303 13001 131 361 Perm*n•nt Endow•d lunds Dean Forre5t 58 58 58 58 Totsl Funds 23,578 18,186 18,0091 141 23,751 23. PENSION SCHEMES Retlrement benefits to employees of the School are provlded throu8h two defined benefit schemes and one deflned contrlbutlon 5cherne, whlch a￿ funded by the Schoof5 and employee5, contrlbutions. DEFINED BENEFIT SCHEMES Teacher< Penslon Scheme The Sch¢)ol participate5 in the Teachers, Pension Scherne 1.the TPS") for its teaching staff. The pension char8e for the year includes contributions payable to the TPS of £1,427,25012022.' £1.935,6771 and at the year end £nll12022 £nlll was accrued in respect of contributions to this scheme. The TPS is an unfunded multi-employer deflned benefit5 penslon scherne governed by The Teachers, Pensions Regulations 2010 las amendedl and The Teachers, Penslon Scheme Regulatlons 2014 las 49 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 amended). Members contribute on a.pay a5 you go" basis with contributlons from member5 and the employer beSn8 credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parlbarnent. The employer contributlon rate Is set by the se¢￿tary of State following scheme valuations undertaken by the Government Actuarf5 Department. The most recent actuarial valuatlon of the TPS was prepared a5 at 31 March 2020 and the Valuatlon Report. which wa5 published in ottober 2023. Followlng the Mccloud jud8ement, the remedy proposed that when benefits become payable, ellglble members can select to receive them frorn eitherthe reformed or le8acy schemes for the period l April 2015 to 31 March 2022. The actuaries have assumed that members are Ilkely to choose the option that provides them with the 8reater benefits, and In preparlng the 2020 valuatlon have valued the 'grealer value. beneflts for groups of relevant members. The valuation Confirmed ihat the empl¢)yer contributlon rate for the TPS would increase from 23.6% to 28.6% from l Aprll 2024. Employers are also requlred to pay a scheme admlnlstratlon levy of 0.08% glvlng a total employer contribution rate of 28.68%. Independent School's Penslw khem• Deflned 8enellt Untll Aprll 2020 the School operated a deflned benefft scheme for support staff, through 115 participatlon In the Independent School's Penslon Scheme admlnlstered bythe Pen51ons Trust IISPENI. ISPEN. The scheme. a multi-employer scheme whlch provldes benefits to some 61 non-a550clated employers. The scheme Is a deflned beneflt scheme In the UK. It is not posslble for the School to obtaln sufficient informatlon to enable ￿ to account for the scheme as a defined benefft scheme. Therefore, It accounts for the scheme as a deflned contrSbutlon scheme. The scheme was closed to new members of staff wlth effect from 31 March 2017 and was closed to future benefit accrual for all members wlth effect from Aprll 2020. The s¢heme15 sublectto the fundlng le8lslatlon outllned In the Penslon let 2004 whlch came Into force on 30 December 2￿5. This together with documents 15sued by the Pensions Regulator and Technlcal Actuarlal Standard5 155ued by the Flnanclal Reportlng Councll, set out the framework for fundlng defined benefit occupatlonal pension schemes In the Unlted Klngdom. The Scheme Is classlfled as a "last man standlng" arran8ement. Therefore, the School Is potential liable for other partlcSpatln8 employers, obligations if those employers are unable to meet their share of the scheme deftcrt followlng wlthdfawal from the scheme. Participatin8 employers are legally required to meet thEIT share of the scheme deficlt on an annulty purchase basls on wlthdrawal from the scheme. With effect from l April 2015 the School operated onty one benefr( structure a career average revaluated earnlng5 ICAREI structure with a 1180, accrual rate. Contrlbutions have been made to the scheme in accordance wlth the recommendatlons of the scheme's Actuary. The pension charge for the year includes contrlbutlons payableto the ISPEN of £nll12022.' £nlll. At the balance Sheet date there were no12022'. nill active members of the Scheme employed by the School. In addition, the School paid contributions totalllng £76,32012022: £66,923) in respect of the past service deficit. A full actuarlal valuation for the scheme wa5 carried out with an effectNe date of 30 September 2020. This actuarlal valuation was certified on 22 December 20213nd showed assets of £201.Im, liabilities 50 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 of £256.3m and a deficlt of £55.2m. To eliminate this funding shortfall, the trustees and the participating employers have agreed that additional contribution5 will be paid, in combination from all employers, to the scheme as follows.. Deficit contributions From I September 2022 to 30 June 2032 £2,687,00 per annum Ipayable monthly and Increaslng by 3% on each I September) Note that the scheme'5 previou5 valuation was carried out with an effectlve date of 30 September 2017. Thls valu3tlon showed assets of £149.4m, liabilities of £187.6m and a deflclt of £38.2m. To ellminate thi5 funding shortfall. the Trustee h35 asked the participatlng employers to pay additional contributlons to the scheme as follows.. Deficit contributions From I September 2019 to 31 August 2030 £2,387,357 per annum (payable monthly and IncreaslnB by 3% on each I September) The recovery plan contrlbutlons are allocated to each partlclpatlng employer In Ilne wfth thev estlmated share of the scheme Ilabllltles. Where the scheme Is In deftclt and where the employer hès agreed to a deflclt fundln8 arrangement the employer recogn15es a Ilabillty for thi5 obligation. The amount recognised is the net present value of the deflcit contrlbutions payable under the agreement that relate5 to the deficlt. The presenl value Is calculated usln8 the dlscount rate detalled In thls note. The unwlndlng of the dlscount rate Is reco8nised as a finance cost, 51 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 Present Value of Provlsion for School's deficit funding obligatlons.. 31 July 2023 31 July 2022 31 July 2021 Present value of provbsion 622 742 Reconclliation of opening and c105ing provisions Group and khool 2023 £'(X)D 742 23 1761 1671 2022 Provision at start of period Unwinding of dSscount factor Ilnlerest expense) DeflcSt contrlbutlon pald Remeasurements. Impact of any chan8e in assumption5 ReMeaSu￿ ments- amendments to the ￿ntrIbUtIOn schedule 169) (84) 241 Provlslon at end of perlod 622 742 Income and expendlture Impact 2023 2022 Interest expense Remeasurements- Impacl of any change In assumptlons Remeasurements- amendments to the contrlbutlon schedule 23 1671 184) 241 163 Assumptlons Y•*r to 31 July 2023 Yeor to 31 July 2022 Year to 31 July 2021 Rate of d15count % per annum 3,24 1.04 The dlscount rates shown above arethe equlvalent sln8le dlscount rates whlch. when used to dlscount the future recovery plan contributions due, would 8lve the same ￿suItS a5 UsSn8 a full A4 corporate bond yleld curve to dlscount the same recovery plan contrlbutlons. Defined contrSbutSon KhemÈ The School operates a defined contrlbution penslon scheme in connectlon wlth its auto*nrolmefit obligations. The assets of the scheme are held separatety from those of the School In a fund Independentty admlnlstered by The Penslon5 Trust. The pension cost charge Includes contrlbutions payable by the khool to the fund amounting to £208,14012022'. £176,448). As at the balance sheet date theie were £nll12022.. £nlll contrlbutlons outStandln8 payable to the pen51on fund. 24. SUBSIDIARIES AND BASIS OF CONSOUDATION The School has two connected tradin8 companies, King's School Worcester ActlvbtSes LIM￿ed reglstered number 01472145 la company limited by guarantee) and KSW Enterprlses Limited reglstered nurnber 07141348 la company limlted by shares. of which all of the Issued share caprial is owne(I by the School). The results of both are consolidated with those of the school and in the case of 52 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 King's School WOr￿Ster Activities Limited are included within the unrestritted funds shown in the flnancial statements and in restricted fund5 in the case of K5W Enterprlses Llmlted. King's School Worcester Activities Limited IKSWA Ltd), a company limited by guarantee, carries out various trading activitles on behalf of the School and accounts for includin8 vending machlne sales, the lettings to third parties of School facilrties other than the school AstroTurf pltch and sundry other non.charltable trading items. The letting of the AstroTurf pitch is administered and accounted for by KSW Entefprlses Llmlted IKSW Ent Ltd). For over ten years the school has had a long-term fundralslng Inltlatlve to create a Foundatlon Development fund. Donatlons to thls fund are made to The Klng's School Worcester Development Trust. (formerly The Kln8's School Development Trust) which then makes grants to the khool. This Trust Ss a Separate reg15tered charlty whlch Is not controlled by the School and Its ￿sUltS are not Included within the consolidated financS3l statements but It Is re¢ognlsed as a related party (see note 261. Tradlng re5uIt5 extracted from the financlal statements of the trading subsldlarles are shown below: KSWA Ltd £'ooo KSW Ent Ltd £,￿0 Total 2023 KSWA Ltd KSW Ent Ltd Totol 2022 £'coo 192 1155) 129) Turnover Cost of sales 230 12111 191 239 {2111 1161 12 179 (155) 151 19 13 Adminlstratlve c05tS Operatlns proflt Gfft ald donatlon 171 f24J (iij 1261 Retalned proflt 1161 1141 19 (iii Net assets 19 1141 35 (16 19 Balance owed by the School at 31 July 191 1241 1331 1150) (22) {1721 The tradlng companles make gift ald donatlons of all taxable profits to the School wbth the result that both tradlng subsldlary companies have a nll annual corporation tax liability. The Kin¢s School Worcester, as a reglstered charty, has no Ilabillty to UK corporatSon tax In respect of Its Income and 8ains properly applled for fts charltable purposes. 53 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 25. RECONCILIATION OF NEf INCOME TO CASH FLOW FROM OPERATING AcnviTIE5 2013 2022 £'ooo £'ooo Net Income resources 150 173 Ellminatlon of non-opeTatln8 cash flows: Losses on Investments Investment income 1146) 129 (16) Flnance cost5 56 Deflned beneflt penslon scheme finance cost 23 Deflned benefit penslon scheme re.measurement 1671 157 Depreclatlon charge 959 933 Prof￿ on sale of flxed assets Decrease In stock 16 Ilncreasel in debtors iii) Increa5ellDecre3sel In credltors lexcludln8 fees In advance scheme and deposltsl Ilncreaselloecrease In fee5 In advance scheme credltors 638 (13) 1701 41 (Decrease) In parents. deposits (li) 1,457 1.162 Net ¢ash Inllow 1,335 Analys15 of cash and cash equlvalents 2023 2022 Cash Bank 7.173 7,175 54 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 26. RELATED PARTY TRANSACTIONS As 5t3ted in note I to the financlal statements, the School has two connected trading companies, Kin8's School Worcester Activities Limited and KSW Enterprises Llmited. A set off agreement exists between The KSng's School Worcester and Klng's School Worcester Activltles Llmfted wlth Lloyds Bank plc for Interest purposes only. The gift aid transaction5 between the School and these companles together with details of the year end balances are reported in note 24 to the financial statements. In the course of fts Ordlnary actlvltles the school conducted buslnes5 wlth the Dean and Chapter of Worcestercathedral includingthelr related Enterprise company in respect of rent, events and stafflng, all negotiated at arm's length on normal commercial terms, totalllng £112,64312022'. £217,479) and totalllng £98,72612022: £92,735) In respect of choral scholarship5. The School Governors include a partner In Flsher German LLP, who administer Worcester Cathedral's property lets to the School. The value of rental services provlded to the School during the year, all of whlch were negotlated at arm's length and 5upplled on normal commerclal ierm5, amounted to £107,71212022.. £153.3171. The balance due to Flsher German LLP at the year end was £nil12022.' The Dean Is an ex offlclo member of the school'5 Governing body, and six of the school's nomlnatlve Governors are appolnled by the Dean ind Chapter of Worcester Cathedral. The balance due from the Oean and Chapter of Worcester Cathedral and it5 tradlng entlties at the year end was £nil12022'. £nlll. The Dean Is also a Dlrector of the Wofce5ter Llteracy Festlval Llmited the School spent £nll on advertlslng wlth them In the yeor12022.' £1501. The balance due to Worcester L¢teracy Festlval Llmlted at the year end was £nll12022'. £nlll. The khool Governors include a dlrectoi of the Worcestershire Crickel Board Llmited who have supported the School wlth their cricket academy during the year the School spent £2,51012022: £1,740). The balance due to Worcestershire Cricket Board Limited at the year end was £nll12022'. The School Governors Include a Trustee of The Rlvers CofE Multl Academy Trust. Durin8 the year the School engaged thelr servlces and spent £nll12022-. £851- The balance due to The Rlvers CofE Multl Academy Trust at the year end was £nil12022.. Énlll. A number of school Governors are trustee5 of The Klng'5 School Worcesier Development Trust, a separate re8iStered charity lsee note 241. In the course of it5 ordinary activitie5 the 5chopl conducted buslness wlth the Klng's School Worcester Development Trust in respect of events and fundTaisln8 activitle5. The school recefved from the Trust £20912022.. £1,326) in respect of events income and expenses due to the School on nomial commercial terms and grant fundln81 totallinB £221,87412022: £183.È1481 for the year was due to the School at the year end. Durlng the year the school received net donations of £4,08312022.. £4,972) on behalf of the Trust and the net balance due to the School by the Trust at the year end was £nll12022: £59,235). In addition at the yeaf end the School held cash balances as agent for The Development Trust amounting to £512022- £51. The School Governors Includes a parent of the School. in addition three members of key management personnel are also parents during the year they were charged School fees on commercial terms and no balances were outstandlng at the year end. 55 THE KING'S SCHOOL WORCESTER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 27. CONSOLIDATEDSTATEMENTOF FINANaALACTIVITIES-COMPARATIVE FIGURES BY FUNDTYPE Year to 31 luly 2022 Unrestrlcted Restrlcled Endowed Funds Funds Funds 2022 Total 2021 Total Notes £'OOO £'o £'OOO E'OOO Income and endowmenlsfrom: Ch•rltable art￿[11¢5 School fees receivable Anclllary tradln8 Income 16.828 808 I6￿28 15.717 397 Other tradlng actlvllles Non-anclllary trading income Other activities 192 42 192 82 71 In¥?stments Interest and Investment Income 12 16 Volunt*ry ￿Urt•S Grants and donations Total Incomlni resource¥ Expendliure on: 300 303 300 18,186 315 16,591 I7￿82 Ralslni funds Non-anclllary tradlng Financln8 Costs Fundralslng and development Total 183 62 129 183 62 129 51 130 374 374 271 Ch•rltsble Ktl¥ltles Educatlon and 8rant maklng Pension scheme re-measurement of the estlmate of pa51 servlee costs Tot•1 expendlture Net lout8oln8lllncomlng funds from operatlons before transfers and investment 6alns Galn5 on Investrnents Net Income Transfer5 between fund5 14et rnovement In funds for ihe year Fund balances brought forward at I August 2021 Fund balances urrlod forw•rd * 31 July 2022 17.178 3Crt) 17.478 16,397 23 157 17,709 157 f6J 18,009 16, 662 300 173 177 {71) li 31 173 173 f27J 22 173 173 127) 23,159 361 58 23.578 23,605 22 23J32 361 23.751 23,578 56