OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2022-07-31-accounts

Company No. 4908949 Registered in England Charity No. 1101358

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

SEVENOAKS SCHOOL ANNUAL REPORT AND FINANCIAL STATEMENTS

Contents Page
Governors, Directors, Charity Trustees, Officers and Advisers 1
Annual Report of the Governors 3

Strategic Report		 5

Statement of Accounting and Reporting Responsibilities		 14
Independent Auditor’s Report 15
Statement of Financial Activities, including Summary Income and Expenditure Account 18
Balance Sheet 19
Cashflow Statement 20
Statement of Accounting Policies 21
Notes to the Financial Statements 24

SEVENOAKS SCHOOL GOVERNORS, DIRECTORS, CHARITY TRUSTEES

YEAR ENDED 31 JULY 2022

GOVERNORS, DIRECTORS AND CHARITY TRUSTEES

The Governors of Sevenoaks School (“the School”) are the School’s charity trustees under charity law and the directors of the charitable company. The members of the Governing Body who served in office during the year and subsequently are detailed below.

----- Start of picture text -----
(1) (2) (3) (4)
A C Beckett MBA MA (Chair) • •
C P Gill MPhil BSc (Vice-Chairman) Mr Gill joined the Finance and • • •
Property Committee in the Summer
Term (June) 2022
K Allen BSc ACA * • •
R S M Best LLB • •
T A B Boulton MA • •
J G Davies LLB • •
E J Ecclestone LLB Dip LP * • •
G A Innes BSc ACA •
J F J London LLM • •
P Luxmoore BA •
M McInerney BSc ACMA • •
M S Merson MA ACA •
D M H Phillips BA ACA Mr Phillips retired at the end of the • •
Lent Term (April) 2022
Dr A Timms MA MPhil •
Prof D I Wilson FIChemE CEng CSci Prof Wilson retired at the end of the •
Summer Term (June) 2022
A P S Yuravlivker BSc ACA •
----- End of picture text -----

(1) Members of the Education Committee

(2) Members of the Finance & Property Committee

(3) Members of the Governance Committee

(4) Members of the Public Benefit Committee

During the year the activities of the Governing Body were carried out through four committees. The membership of these committees is shown above for each Governor. Under the School’s Memorandum and Articles, the following bodies each nominate a Governor:

Sevenoaks District Council Cllr J F J London
The Master and Fellows of Jesus College in the
University of Cambridge		 Prof D I Wilson – Prof Wilson retired at the end of the Summer
term 2022 leaving a vacancy in the office of Nominated Governor
The President and Fellows of St John’s
College in the University of Oxford		 Dr A Timms
The Trustees for the time being of the Will of
Charles Plumptre Johnson		 G A Innes

1

SEVENOAKS SCHOOL OFFICERS AND ADVISERS YEAR ENDED 31 JULY 2022

OFFICERS (currently and throughout the year)
J R Elzinga AB MSt FCCT Headmaster
Dr B McClure MA MPhil Clerk to the Governors and Bursar (Succeeded G T Jones on 1 September 2021)
Principal address and Sevenoaks School
Registered Office Sevenoaks
Kent TN13 1HU
Auditor Crowe U.K. LLP
55 Ludgate Hill
London
EC4M 7JW
Bankers National Westminster Bank plc
67 High Street
Sevenoaks
Kent
TN13 1LA
Solicitors Knocker & Foskett
The Red House
Sevenoaks
Kent
TN13 1JL
Insurance Brokers Aon Risk Services Ltd.
Somerset House
London Road
Redhill
Surrey
RH1 1LU
Chartered Surveyors Ibbett Mosely
125 High Street
Sevenoaks
Kent
TN13 1UT
Website www.sevenoaksschool.org

2

SEVENOAKS SCHOOL ANNUAL REPORT OF THE GOVERNORS YEAR ENDED 31 JULY 2022

The members of Sevenoaks School Governing Body present their Annual Report for the year ended 31 July 2022 under the Charities Act 2011, including the Directors’ and Strategic Reports, under the Companies Act 2006, together with the audited financial statements for the year.

REFERENCE AND ADMINISTRATIVE INFORMATION

Sevenoaks School (“the School”) was founded in 1432. It is constituted as a company limited by guarantee registered in England, No. 4908949, and is registered with the Charity Commission under Charity No. 1101358.

Details of the members of the Governing Body, together with the School’s officers and principal advisers, are given on pages 1 and 2.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The company is governed by its Memorandum and Articles of Association, last amended on 19 June 2014.

Governing Body

The Governing Body is self-appointing, and its members are appointed for five years. Members may be re-elected for a further five years. New members of the Governing Body are elected at the Annual General Meeting of the company on the recommendation of the Governing Body, who will have received proposals from the Governance Committee. In making these nominations, account is taken of eligibility, personal competence, specialist skills, diversity, and availability. The Governors have regard to the Charity Governance Code published in 2017, as updated in 2020, which sets out the principles and recommended practice for good governance within the sector.

Recruitment and Training of Governors

New Governors are inducted into the workings of the School, including Governing Body policy and procedures, by the Headmaster, Bursar, and as appropriate, other School staff. Training opportunities for Governors are identified, particularly in key areas such as safeguarding and health and safety. Additionally, some Governors also took advantage during the year of the opportunity to undertake training arranged by the Association of Governing Bodies of Independent Schools and by the Boarding Schools’ Association. The purpose of the training is to keep Governors informed and updated on current issues in the sector and regulatory requirements.

Organisational Management

The members of the Governing Body, as the charity trustees, are legally responsible for the overall management and control of the School. They meet three times a year. Additionally, there are four sub-committees which have delegated oversight of specific areas on behalf of the Governing Body:

From time to time, Governors meet with members of the management team outside the normal schedule to discuss strategy or other important issues. Governors may also sit on steering groups or working groups to examine particular issues, for example during 2021/22 this included participating in a Steering Group led by Sevenoaks School Foundation to oversee the construction of a New Girls’ Boarding House.

The day-to-day running of the School is delegated to the Headmaster and Bursar. They are supported by their Senior

3

SEVENOAKS SCHOOL ANNUAL REPORT OF THE GOVERNORS YEAR ENDED 31 JULY 2022

Management Teams and together this group are the key management personnel. The Headmaster and Bursar attend all meetings of the Governing Body and the Governing Body’s Committees.

Remuneration policy is set by the Governing Body with the objective of rewarding staff fairly and reasonably. Delivery of the School’s charitable vision and purpose is primarily dependent on the performance of the staff and staff costs are the largest single element of the School’s charitable expenditure. The appropriateness and relevance of the remuneration policy is reviewed annually having taken account of comparative pay data produced both by the Office for National Statistics and private sector bodies. During 2021/22, the Chair, Alison Beckett, held an advisory group to review and set the remuneration of the Headmaster and Bursar, consisting of the Chair, Vice Chair, Chair of the Finance and Property Committee and a member of the Governance Committee.

Structure and relationships

The School has a wholly owned non-charitable subsidiary, Sennocke Services Limited, whose annual profits are donated to the School under the Gift Aid Scheme. Consolidated financial statements have not been prepared due to the immateriality of Sennocke Services Limited, but the financial result for the period for Sennocke Services Limited is included at note 23. The trading activities of Sennocke Services Limited primarily comprise revenue from the letting of School facilities, when not in use by the School, to non-educational entities or individuals. This includes the letting of the Sennocke Sports Centre and The Space Performing Arts Centre. The School does not raise funds from the public.

The School also administers several special trusts, as detailed in Notes 19 to 21 to the financial statements.

Sevenoaks School Foundation (“the Foundation”) is an independent charity that was set up in 2004 and registered with the Charity Commission under Charity No. 307923. The Foundation, whose objects mirror those of the School, is the registered owner of the majority of the buildings that form the premises of Sevenoaks School. The aim of the Foundation is to provide support to the Governors of Sevenoaks School in providing a first-class education. The Trustees do so by leasing the buildings in which the School carries out its activities as detailed in Note 18 to the financial statements and by overseeing the work of the Foundation Office in raising the funds necessary to support both new building projects and a widening of access by the award of free and assisted places.

Employment Policy and Employee Engagement

The School is an equal opportunities employer. Having a diverse staff enhances the School community and the School warmly welcome applicants from all backgrounds. Full and fair consideration is given to job applications from all candidates regardless of any protected characteristics and due consideration is given to training and employment needs of all staff. The Governors and senior managers place considerable value on the involvement of the School’s employees in the activities of the School and continue to keep them informed on topics affecting them as employees, as well as on matters relating to the operation of the School. A Staff Common Room Committee is the main formal communication forum for teaching staff whilst for support staff there is the Support Staff Council. These bodies allow a two-way flow of information throughout the School and allow staff views to be sought on all types of issues. There are also regular all-staff meetings, through which employees are briefed and their views sought on a wide range of matters affecting the School.

Investment policy and objectives

The officers of the School are empowered by the Governors to manage the School’s financial resources by placing deposits with a term of up to 24 months in a limited number of named financial institutions, or by purchasing units in a limited number of named pooled charitable investment funds. The officers of the School are also empowered to comply with alternative investment strategies if required under the terms of a donation or legacy. There is an upper limit of £7,500,000 in the placement of deposits for each of the approved institutions. Resources invested in pooled charitable investment funds are held for the long term and are traded only if a fund’s performance is repeatedly below sector expectations. The investment strategy and policy are monitored by the Finance and Property Committee, as is investment performance, which is reported below, within the Strategic Report .

AIMS AND OBJECTS

Charitable Objects

The objects of the company are to advance education by the provision of a day and boarding school in or near Sevenoaks and by ancillary or incidental educational activities and other associated activities for the benefit of the community and, in selecting pupils to attend the school, preference shall be given to boys and girls who are, or who have a parent or parents, resident in the designated area. In this context, the designated area is defined as Sevenoaks and the immediately surrounding area. The Governors are mindful of the long-standing need to provide public benefit and of the requirements of the Charities Act 2011. In this connection the Governors have monitored closely the guidance on public benefit produced by the Charity Commission together with its supplemental guidance on fee-charging.

Aims and Intended Impact

Within the objects, it is the policy of the School to discover and develop to the full the academic and co-curricular potential

4

SEVENOAKS SCHOOL ANNUAL REPORT OF THE GOVERNORS YEAR ENDED 31 JULY 2022

of each pupil. The School also seeks to promote the physical and mental health and sense of social responsibility of every student. Within this context, pupils are encouraged to cultivate a strong sense of individual initiative with a sense of responsibility to the community in which they live, and to maintain a balance between self-respect and social concern. Similarly, the School aims to foster a healthy intellectual appetite while, at the same time, establishing the necessary ethical framework within which pupils can develop personally and professionally as citizens of the world. Sevenoaks School is a co-educational community for both day and boarding pupils. These aims are encapsulated in the term a Sevenoaks Education.

STRATEGIC REPORT

In March 2022 the Board of Governors approved the new School strategy, Sevenoaks 600 . As the School looks ahead to its 600th anniversary in 2032, Sevenoaks 600 will guide its evolution over the coming decade. The vision for Sevenoaks School in 2032 is to empower students from all backgrounds with the knowledge, understanding and confidence to flourish and make a difference, such that the School is recognised globally as exceptional, innovative and inclusive. The School is committed to being a community that is pioneering, inclusive, responsible and sustainable, and these principles will guide its decision-making as it works towards delivering its vision for the School’s future.

OBJECTIVES FOR THE YEAR

The Governors’ objectives for the academic year 2021/22 were:

1. Ensure the School’s stability

To continue to protect and preserve the stability of the School during and after the pandemic;

2. Strategic planning

To finalise the School’s new strategy to 2032, to include the future vision for a Sevenoaks education, increased opportunity through free and assisted places, reviewing and developing partnerships, and becoming carbon neutral.

To agree enabling campus and financial plans to ensure the successful delivery of the strategy, including the renewal of the School’s heritage campus for the future.

3. Good governance

To support and embed the new senior leadership team in the work and governance of the School.

To conduct a review of the Governing Body’s structure and effectiveness and implement the findings.

Strategies to Achieve the Year’s Objectives

In pursuing the School’s objectives, Governors have made use of established sub-committees, as well as participating in steering groups or working groups consisting of Governors and senior members of staff. Governors have also worked with the Trustees of Sevenoaks School Foundation. Where it has proved necessary, specialist advice has been sought. To assist in the delivery of physical facilities, professional advice has been taken from a range of consultants, as well as employing contractors.

Performance Against Objectives

1. To Ensure the School’s stability : Despite the challenges of the pandemic, the financial and operational stability of the School was maintained. Financial loss was not as significant as initially projected, the School was able to return to delivering education on campus and student numbers have remained strong. The new School strategy was agreed by the Board of Governors in the spring which provides a clear vision for the School. During academic year 2021/22 a new Senior Leadership Team was formed comprising a balance of longstanding and new staff, and the team have settled in well, receiving positive feedback across the School community. The School was found fully compliant in a recent ISI Regulatory Compliance Inspection undertaken in June 2022.

2. Strategic Planning : The new School strategy Sevenoaks 600 was finalised and approved by the Board in March 2022. Implementation and enabling plans are well progressed and reviewed regularly by Governors.

3. Good governance: An external appraisal of the Senior Leadership Team was carried out in June 2022 and was extremely positive, and the relationship between the Executive and Governors is constructive and supportive. A review of the Terms of Reference for governance committees took place in August to September 2022, and an external review of governance effectiveness took place in September 2022. A new format for the School’s Risk Framework was approved by the Board, designed to bring greater visibility of key risks and organised in a format to bring improved clarity.

5

SEVENOAKS SCHOOL ANNUAL REPORT OF THE GOVERNORS YEAR ENDED 31 JULY 2022

Promotion of the success of the organisation to benefit its members

The Governors confirm that in accordance with Section 172 (1) of the Companies Act they act in a way they consider would be most likely to achieve the charitable objects of the company. In making this assessment the Governors have considered the following:

a. The likely consequences of any decision in the long term

The long-term sustainability of the operating model is considered by the Governors as set out in the going concern section of the Governors’ Report. Specifically, the Governors consider both short- and longer-term financial projections and the key risks that could negatively impact the sustainability of Sevenoaks School. The Governors review management information, budgets, forecasts, cashflow projections and progress against the financial plan on a regular basis. Risk management is embedded at all levels across the company. The most significant risks are discussed at each Board meeting. See page 13 for further details.

b. The interests of the company's employees

In relation to employee engagement, the Governors receive regular reports from management on the perspectives of staff, and has maintained a focus on wellbeing, both as a matter of good practice and given the exceptional demands and challenges of the pandemic. The Board has received reports on the measures put in place to support staff, particularly during periods of remote working when the School campus was closed. The school received the Wellbeing Award for Schools (2021-2024) in recognition of its work towards ensuring every member of the School community is supported and can flourish. The award recognises good practice, whilst also highlighting important areas for improvement. A new Staff Wellbeing Policy was implemented in June 2022. The Policy was developed in consultation with staff and affirms the School’s commitment to encouraging, promoting and supporting the positive mental, physical and emotional wellbeing of all staff. The School launched the important provision of adult mental health first aiders in the Summer term and thirty-four staff are now trained mental first aiders.

The School has complied with the UK’s Equality Act 2010 Regulations 2017 which require the publication of information on the gender pay gap for UK employees annually. The School’s report is available on the Sevenoaks School website.

c. The need to foster the company's business relationships with suppliers, customers, and others

Sevenoaks School is committed to ensuring that its mission and values are reflected in its approach to buying goods and services and Sevenoaks School is transparent with information and prides itself on building mutually beneficial relationships.

d. The impact of the company's operations on the community and the environment

The company has completed the Energy Savings Opportunity Scheme (ESOS) reporting requirements and is now reporting under the Streamlined Energy and Carbon Reporting (SECR). Decarbonising the campus is a stated aim of the School’s new strategy, and work has begun to develop a roadmap towards becoming a carbon net zero community, to be overseen by a Sustainability Steering Group.

The School’s considerable contribution to the local community is set out in sections which follow and includes partnership work and support to local state funded schools. The School’s voluntary service ethos supports a wide range of contributions which are also described.

e. The desirability of the company maintaining a reputation for high standards of business conduct

Sevenoaks School seeks to promote and apply the highest standards of business conduct and adheres to all applicable laws and regulations relating to fraud, bribery, and corruption wherever it operates (including the UK Fraud Act 2006 and Bribery Act 2010 which applies to Sevenoaks School’s operations both in the UK and globally).

f. The need to act fairly as between members of the company .

The Governors have a conflicts of interest policy. All Governors are required to make an annual declaration of business interests and declare if there is any conflict of interest relating to any item on the agenda at each meeting.

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

Public Benefit

The imperative of delivering public benefit is woven throughout the School’s activities, and enshrined at the heart of the new Sevenoaks 600 strategy. The School is proactive in seeking to make a significant contribution for the benefit of its communities in accordance with its charitable objects and has taken careful consideration of the Charity Commission guidance in deciding what educational and ancillary activities the charity should undertake. In the following report, therefore, the School’s achievements and performance are reviewed through a lens of public benefit, including: advancing education; widening opportunity through offering free and assisted places; a distinctive student service programme; sharing resources and expertise through partnerships; and providing free or subsidised use of School facilities by other schools and community groups.

6

SEVENOAKS SCHOOL ANNUAL REPORT OF THE GOVERNORS YEAR ENDED 31 JULY 2022

Advancing education

Founded in 1432, Sevenoaks School enjoys the distinction of being one of the UK’s longest established schools. A tradition of innovation and excellence has seen Sevenoaks develop into a co-educational day and boarding school, its constituency extending both locally and internationally. The School offers a rigorous as well as a rounded education for pupils from the age of 11 to 18 and in particular has developed a worldwide reputation as a centre of excellence and as a flagship for the International Baccalaureate. An average of 1,167 students attended the School during 2021/22. The School actively seeks to maintain gender balance, achieving 48% female students and 52% male students. A third of the students (389) were boarders, comprising 174 female and 215 male students. In advancing education, the School relieves public funds of considerable expense.

The School continues its outstanding record of integrating academic achievement, pastoral care and co-curricular opportunity. Academic excellence is achieved by bright, motivated students, inspired by highly qualified and dedicated teachers in well-resourced classrooms. A professional team of specialist tutors, boarding house staff and year heads ensures that our pupils are happy and receive expert care and support, while the mutual respect shared by students and staff helps to generate an atmosphere of friendliness. The School’s campus offers a safe, attractive environment in which to learn and grow. State-of-the-art facilities, together with high level instruction, provide rich opportunities for pupils to participate in a wide variety of sports, the performing arts and many other activities.

Every pupil is encouraged to be curious, creative, critically aware, and to develop his or her passion and talent to the full. Life is fast-paced and dynamic, and expectations are high. At the same time, the School cultivates in its pupils the habit of reflecting on their learning and on the way they behave and perform. While distinctively forward-looking, the School continues to value its alumni, who return for regular matches, social events and anniversary dinners, and whose presence is strongly felt and recorded in the inclusive School publications.

The School’s international outlook promotes the principles of tolerance and open-mindedness. Regular assemblies, tutor group meetings and a programme of talks help to foster the social and emotional welfare of students, while a long tradition of service and local and international charity projects advances a core set of values across the student body. Ambitious but principled, confident and compassionate, Sevenoaks students are prepared for leadership in an ever more complex world.

All Sixth Form students pursue the International Baccalaureate Diploma, a programme the School has delivered for over 40 years. The Diploma represents, in the School’s view, the best preparation for university and for work in a world of global competition. Students leave Sevenoaks to study a wide range of courses at top universities in the UK, the US and elsewhere. They do so with an enlarged capacity for independent thought and intellectual risk-taking, a strong appetite for learning, and equipped with the skills and personal qualities necessary for a happy and successful life.

In terms of examination results, the School continues its outstanding record of academic achievement. In the Summer of 2022, examination results for both Year 11 and the Upper Sixth were determined via public examinations for the first time since 2019. Both year groups have had to cope with a lot of disruption to their studies, but they have shown great resilience and determination. In particular, for many of the Upper Sixth, this examination session was their first experience of public exams because of the cancellation of GCSEs/IGCSEs in 2020. In total, 227 students took the IB Diploma; all passed, and the School’s average score was 40.3, with the most common result being 43, with 185 students achieving 38 points or more. For Year 11, the School has bucked the trend seen national and globally of grades dropping following a year of predicted grades: 96% of all qualifications were graded A/A* or 9/8/7. This is even higher than the 93.8% figure from 2021, when grades were awarded by Teacher Assessed Grades. The percentage of 9s (for those subjects on a 9-1 scale) was 65%, also higher than 2021’s 57%, and much higher than figures from 2019 and earlier.

In terms of university entrance: the School’s Higher Education department supported successful applications by 236 students (including some Year 14 post-qualification applicants) going to universities in the UK, USA, Canada, Europe and elsewhere in 2022/23. The percentage of students progressing to their firm-choice university was 92%. The School’s most popular university destinations this year are: UCL (21 places), Edinburgh (14), King's College London (14), Bath (12) and Oxford (12). Of the UK entrants, 82% will take up a place at a Russell Group university, with the School ranked in the top two fully co-educational independent schools in the UK for Oxbridge offers. In a very challenging year, 18 students (14 2022 leavers and 4 2021 leavers) received offers for Medicine or Veterinary Medicine for entry in either 2022 or 2023. The School’s North American offers this year have also been impressive with 41 students taking up a place in the US or Canada, a significant number with scholarships. Despite the fierce competition, 51 students who applied to the US received an offer for at least one of the institutions they applied to. A further 9 students took up university places in Europe or another international destination. Overall, 21% (50/236 students) of Sevenoaks students are going on to study at top universities overseas. As always, the range of courses sought by our students is extremely broad, covering STEM subjects, Humanities, the Arts, Languages, and increasingly, mixed liberal arts and combined programmes.

Widening opportunity through financial assistance with fees

The School was established by William Sevenoke in 1432 as a free school to provide an education for young scholars regardless of their financial background, and the School is committed to respecting that heritage. Over the past 10 years the School has significantly increased the number of students receiving full or partial financial assistance from 17 to 57 in 2021/22 at a cost of £1,328,000. Funded by both the School and the Sevenoaks School Foundation, these students benefit from the outstanding educational opportunities offered by the School, and the whole community benefits from the greater diversity of backgrounds and perspectives. A priority objective within the Sevenoaks 600 strategy is to fundraise for an

7

SEVENOAKS SCHOOL ANNUAL REPORT OF THE GOVERNORS YEAR ENDED 31 JULY 2022

endowment that will provide financial assistance for students in perpetuity, with the ambitious long-term vision to move towards needs-blind admissions. As a first step, Governors approved a new Financial Assistance with Fees Policy in June, to provide greater clarity about the process and eligibility criteria for financial assistance, both for interested families and the decision-making panel.

Since 2016 the School has also partnered with the Royal National Children’s SpringBoard Foundation, the UK’s largest boarding school bursary charity. The aim is to match children to the right boarding schools to achieve life-transforming outcomes for students, and to provide for a ‘ripple effect’ whereby those students raise aspiration with their home communities. This education can provide young people with the opportunity to access a future not tied to where they started in life. Currently two Royal SpringBoard students are in the Sixth Form at Sevenoaks School supported by full boarding bursaries from the Sevenoaks School Foundation.

Student Service Programme

Service has for a long time been a key part of a Sevenoaks education. Through the Institute of Service and Partnerships (ISP), the School aims to create positive, inclusive and sustainable social change through educational innovation and collaboration. The key aims are:

  1. To support students in developing the knowledge, skills and insight needed to become informed and active local and global citizens.

  2. To work with partners in creating transformational educational opportunities in Kent and beyond.

  3. To act as an organisational role model for members of the School and wider community with regard to social and environmental impact.

  4. To work with others to advance practice in service and partnerships across the national and international education sectors.

The following examples provide a flavour of the many service activities undertaken during the course of the year:

Sharing resources and expertise through partnerships and other initiatives

The School’s strategic vision reinforces its commitment to share its educational expertise and other resources with schools and other partners, providing opportunities for children and teachers to take part in a shared programme of teaching and learning events and co-curricular activities. The following provides a summary of key partnership activities:

8

SEVENOAKS SCHOOL

ANNUAL REPORT OF THE GOVERNORS YEAR ENDED 31 JULY 2022

alongside a number of sports events such as water polo, aqua splash, triathlon, and netball events.

Links with other Charitable Bodies

The School has links with other charitable bodies, including Sevenoaks School Foundation (Registered Charity No. 307923), an independent charity whose objects mirror those of the School. In 2021/22, the Foundation made grants of £499,000 (2020/21: £601,000) to the School for bursaries and scholarships. A further £58,000 (2020/21: £43,000) was granted by the Foundation to fund residential trips and other extra-curricular activities for bursary award holders.

The School also has a long relationship with Sevenoaks Almshouses, an independent but neighbouring charity with a shared history, that provides affordable housing for people of retirement age. The School nominates two trustees and provides a range of support services.

Sustainability

Sustainability is a strategic pillar of the Sevenoaks 600 strategy, and the Sustainability Committee is developing three workstreams focused on ‘sustainable curriculum’, ‘sustainable community’, and ‘sustainable campus’ as follows:

Sustainable curriculum: The School is conducting a review of how sustainability is embedded within its curriculum and cocurriculum, and how students are supported to engage with sustainability as a defining challenge of their generation. The School is committed to empowering students to be sustainability leaders in their future work and lives.

Sustainable community: As a School, there is a responsibility to respond to and nurture the passion many young people have for environmental sustainability. The School has a well-established student EcoCommittee through which students develop projects to drive awareness about how individual behaviours can contribute to sustainability efforts. The School also has student-led groups and campaigns including EcoCommittee Green Team, Action for Biodiversity, Footprint Facts, Uocean, EduSTEM, Eco Ambassadors and Green Flag.

9

SEVENOAKS SCHOOL ANNUAL REPORT OF THE GOVERNORS YEAR ENDED 31 JULY 2022

Sustainable campus: The School is working with external specialists to conduct a campus audit to help understand how it can better measure and reduce its carbon emissions, as part of its commitment to becoming a carbon net zero community. The School is fortunate to be located on a fantastic and historic 100 acre campus, which provides an inspirational environment for studying and working, but requires constant investment to maintain and develop to meet the changing needs of the School community. Both remedial maintenance works and new development projects provide opportunities to make progress towards becoming an environmentally sustainable campus. The School is also looking at the role of technology and procurement processes as part of its commitment to sustainability.

Investment Performance

The School holds the majority of its restricted funds in long term investments, mainly in the form of pooled charitable investment funds, which yielded an average loss of 1.3% for the year ended 31 July 2022 (2021: average gain 17.2%). The dividend income was available to be applied to the purposes of the various funds. Governors anticipate future performance to be in line with their investment objective of preserving the capital value with a minimum level of risk.

Unrestricted funds are held in bank deposits for operational liquidity purposes and for short to medium term application to planned improvements to the School’s facilities, as well as for capital protection purposes. The Governors will review the investment strategy again over the coming year.

Over the coming year, the School will be working closely with the Sevenoaks School Foundation to develop a responsible investment policy, in anticipation of developing a permanent endowment to provide financial assistance for students.

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

Results

Net outgoing funds (before the actuarial gain on pensions and the loss on investments) for the year were £1,211,000 per the SOFA on page 18 (2021: £2,629,000) as shown in the School’s Statement of Financial Activities. This includes a £202,000 (2021: £21,000) surplus from Sennocke Services Limited which is included in the Statement of Financial Activities as an unrestricted donation, with the summary accounts for the entity being disclosed in Note 23 to the financial statements.

Reserves Level and Policy and Financial Viability

The reserves of Sevenoaks School are held in designated funds for fixed assets, buildings and bursaries. The designated fund for fixed assets covers the book value of fixed assets (£21,816,000). Each year reserves equivalent to 3% of gross fee income are transferred to the bursary reserve (£1,067,000) and the cost of bursaries granted (£1,328,000) is set against that fund. In addition, transfers from restricted funds for bursaries for fees and extras, which include grants received from Sevenoaks School Foundation, are allocated to the bursary reserve, to cover the cost to the School of making those additional awards. The balance on the bursary reserve was £1,137,000 at the end of July 2022 (2021: £939,000).

At 31 July 2022, after taking into account the pension-funding surplus of £0 (2021: deficit of £4,757,000), £5,657,000 (2021: -£135,000) was held in General Funds, which represented 8 weeks operating costs. The Governors’ intention is to hold up to one term’s operating costs in General Funds to provide an element of protection in an uncertain economic climate. Despite the current economic uncertainty, the Governors consider the level of reserves to be appropriate. The Governors will continue to keep the level of reserves under review.

Going Concern

The Governors continue to review the longer term impact of Covid-19 and the evolving global economic context on the School’s operations and finances. Taking into consideration actions taken to manage costs and to preserve cash, together with the ongoing demand for places, funding facilities available to the School, and future projected cash flows, the Governors have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future, and consider that there are no material uncertainties over the School’s financial viability. Accordingly, the Governors continue to adopt the going concern basis in preparing the financial statements.

10

SEVENOAKS SCHOOL ANNUAL REPORT OF THE GOVERNORS YEAR ENDED 31 JULY 2022

STREAMLINED ENERGY AND CARBON REPORTING (SECR)

The School’s greenhouse gas emissions for the financial year were equivalent to 1,798.69 tonnes of carbon dioxide which equates to 9,463,347 kilo-Watt-hours (kWh) of energy. The School has undertaken 6 energy efficiency actions (EEA) in this reporting year.

This information has been compiled in line with the 2019 HM Government Environmental Reporting Guidelines: including Streamlined Energy and Carbon Reporting (SECR). The 2022 UK Government GHG Conversion Factors for Company Reporting have been used to calculate emissions. Energy consumption data has been taken from invoices issued for the financial year and meter readings. Transport energy has been calculated from fuel consumption data in litres for Scope 1 emissions and miles travelled for Scope 3 emissions.

Table 1 shows the GHG emissions for the School in tonnes of carbon dioxide equivalent for the year:

----- Start of picture text -----
Emission 2021/22 Energy 2021/22 2020/1 2020/21
Source (kWh) Emissions Energy Emissions
(tC02e) (kWh) (tC02e)
Gas 6,040,619 1,102.66 6,597,580 1,208.41
Consumption
Scope Heating Oil 306,489 78.70 361,584 92.85
1 Owned 168,452 42.47 107,757 27.11
Transport
Sub Total 6,515,560 1,223.83 7,066,921 1,328.37
Scope Purchased 2,888,303 558.54 2,539,059 539.12
2 Electricity
Scope Business 59,484 16.32 73,485 20.61
3 Travel
Total Emissions 9,463,347 1,798.69 9,679,465 1,888.10
----- End of picture text -----

Table 2 shows the intensity ratios for the School:

Type 2021/22
kWh/Students		 2021/22
tC02e/Students		 2020/21
kWh/Students		 2020/21
tC02e/Students
Occupancy 8,109 1.54 8,344 1.63

During the year the following efficiency actions were taken:

Category Title Description
Lighting
LED upgrades
LED lights are being fitted as an ongoing project throughout the
School.
Smart meters
Controlling
energy usage
Introduction of smart meters in conjunction with energy providers
New boiler in
boarding house
Heating
Replacement of old boiler with new condensing boiler
Staff
accommodation
windows
Thermal
efficiency
improvements
Refurbishment of sash windows (phase 2)
Replacement
roof of theatre
Thermal
efficiency
improvements
Replacement roof with improved insulation
Construction of
a new boarding
house
Thermal
efficiency
improvements

Sustainable
heating
Building constructed to passive house standard

Use of air source heat pumps rather than traditional boilers

No fossil fuel (gas/oil) supply installed

11

SEVENOAKS SCHOOL ANNUAL REPORT OF THE GOVERNORS YEAR ENDED 31 JULY 2022

RISK MANAGEMENT

This year, the Board of Governors approved a new format for the School’s Risk Framework, designed to give the Board greater visibility of key risks and organised in a format to bring improved clarity and support meaningful discussion of risk. Under the new format risks are organised under the headings of operational risks, business model risks and external risks, all of which inform the assessment of five top level strategic risks. A summary report is considered termly by the Governance Committee, with the full Risk Framework tabled annually for review by the Governance Committee and subsequently the Board of Governors.

Strategic risks

The five top level strategic risks are: failure in quality of educational provision and experience; drop in high quality applications; failure to recruit, retain and develop world class staff; resources unable to accommodate change; and public perception of the School is negatively affected. At the end of 2021/22, the main strategic risk facing the School is that resources (financial, space, technology or staff) are unable to accommodate the need to change. To manage and mitigate this risk, Governors and the School’s executive leadership review the School’s financial position regularly, with focused reports scheduled on the campus, technology and staff. Whilst there are no material concerns over the School’s long term viability, given the volatility of the external economic and political context, Governors remain acutely aware of the need to manage resources responsibly and sustainably.

Operational risks

Operational risks encompass safety or safeguarding incidents, physical or digital security breaches, negative student or staff behaviour, or failure in educational provision or governance.

Safeguarding and health & safety: The School has comprehensive safeguarding and health & safety policies and procedures in place to mitigate risks of a safeguarding or health & safety incident or failure in pastoral care, always in line with national guidance Keeping Children Safe in Education (KCSIE) , the National Minimum Boarding Standards, and relevant Health & Safety legislation. The need for vigilance and immediate action, particularly where a child is considered at risk, is continually reinforced through communications and training, led by the Designated Safeguarding Lead and Health & Safety Manager. A secure central repository (CPOMS) is used for the reporting and recording of safeguarding concerns, and counselling provision has been increased to support mental health concerns. Concerns in respect of inappropriate online behaviour by students are dealt with through a programme of educational initiatives, including an online safety week, staff awareness training and information for parents. A new Online Safety Policy and Anti-cyberbullying Policy have been drafted which will be launched in Michaelmas Term 2022. All staff have been trained on Prevent (the legal requirement to have due regard to preventing people from being drawn into terrorism) and Prevent Duty Guidance has been reflected in the School’s safeguarding policy. All staff are required to undertake safeguarding and health & safety training as part of induction, reinforced by annual training, including a requirement to confirm in writing they have read the updated version of KCSIE. All pre-employment checks required from KCSIE are undertaken including DBS with barred list check. Staff are requested to confirm if there has been any change to their DBS status on an annual basis. The Health & Safety Board meets termly and reviews relevant policies, accident reporting, risk assessment processes, and any specific issues or concerns. Both Safeguarding and Health & Safety are reported to Governors on a termly basis, with additional updates if required.

Physical or digital security breaches: A Campus Security Working Group reviews campus-wide security risks and mitigating processes, including aspects such as vehicle movement, alarms, CCTV, visitor and contractor management. The School remains vigilant to cyber-attacks and employs a multi-layered approach to cyber defence. There are regular penetration tests and multi-factor authentication has been rolled out for all staff and students. There is regular up-skilling for staff and students on the importance of good cybersecurity practices. A comprehensive IT risk register has been developed.

Negative student or staff behaviour: Staff and student codes of conduct are in place and embedded within induction and admissions processes. The risk of student misconduct is mitigated through robust PSHE (personal, social, health and economic) education and close liaison with parents where there are concerns.

Failure in educational provision, infrastructure or governance: The spirit of the International Baccalaureate Diploma Programme (IBDP), with its breadth, balance, coherence and interdisciplinary approach, is at the heart of the School’s curricular and co-curricular provision. Appropriate teaching provision and quality are closely monitored, the Institute of Teaching and Learning (ITL) supports continued innovation, and staff benefit from ongoing CPD. Regulatory compliance is closely monitored, and an ISI Regulatory Compliance Inspection carried out in June 2022 concluded that the School met all of the required regulatory standards as set out in the Education (Independent School Standards) Regulations 2014, the National Minimum Standards for Boarding School 2015 and associated requirements, with no further action required. A rolling maintenance programme ensures the campus infrastructure is safely maintained. Governors meet regularly to monitor the School’s activities and undertake regular training. An external review of governance effectiveness took place in September 2022.

Business model risks

Business model risks relate to changes in key income flows and cost areas. The School derives the majority of its income from tuition fees, and staffing costs constitute by far the greatest proportion of expenditure.

Cost increases: At the end of 2021/22, the combined economic impact of Brexit, Covid and Russia’s invasion of Ukraine are having an effect on inflation, which not only puts pressure on the School’s operating budget but also affects parental

12

SEVENOAKS SCHOOL

ANNUAL REPORT OF THE GOVERNORS YEAR ENDED 31 JULY 2022

ability to pay tuition fees and drives up staff salary expectations. In terms of mitigating actions, the School has secured fixed price contracts where possible, processes are being adjusted to ensure enhanced budget monitoring, and the Finance and Property Committee regularly review the longer term financial plan to understand potential impacts should risks materialise, test assumptions and identify further potential mitigating actions should they be required.

Pension cost increases: A further business model risk relates to the anticipated increase in pension costs. The School maintains an active awareness of the increasing cost of both the Teachers’ Pension Scheme and the Local Government Pension Scheme, and these remain under the review of the Finance and Property Committee.

Change in government policy towards independent schools: There remains an ongoing risk of a change in governmental policy towards independent schools, which may result in the removal of business rate relief and other charitable tax benefits and the addition of VAT on school fees. The School has long sought to mitigate this risk through its significant contribution to public benefit and support for state-funded partner schools; however, Governors recognise that a national policy change is unlikely to take individual school circumstances into account and therefore financial modelling must be undertaken to make provision for this risk should it materialise.

External risks

External risks include regulatory, legal, political, economic or social events or changes beyond the School’s control, that have an adverse impact on the School’s ability to operate. Specific risks relevant at the close of 2021/22 include:

Student recruitment: The School benefits from being a diverse, international community but it does mean that the School may be exposed to the effects of global economic and political events impacting students and their families around the world. This includes the risk of a reduction in student recruitment from key international markets due to international tensions, war, pandemic, recession and an increase in border controls. In response to this, the School continues to diversify to new and growing markets whilst maintaining the Sevenoaks (and immediately surrounding areas) market and continuing to have a strong anchor in the local community. Where necessary measures from the pandemic can be deployed in the event of future travel restrictions, including online learning.

Staff recruitment: The combined impact of Brexit, the pandemic and an impending global recession creates a challenging market for staff recruitment. The School has a robust reputation, enviable working environment, generous benefits and supportive employment policies; however, support staff recruitment in particular, where the School must compete against many other sectors and the London market, will require continual attention to ensure key roles are filled with suitably experienced and skilled professionals.

Conclusion

In the opinion of the Governors, the School has established a robust Risk Framework and review system, with appropriate resources allocated to mitigating risks to an acceptable level.

13

SEVENOAKS SCHOOL ANNUAL REPORT OF THE GOVERNORS YEAR ENDED 31 JULY 2022

FUTURE PLANS

Governing Body Objectives 2022/23

1. Ensuring the School’s financial stability: Support the Executive in bringing the School back onto a positive financial trajectory (following planned deficits and the subsequent impact of Covid) and rebuild reserves over the mid-term.

2. Strategic planning: Support the Executive to advance Sevenoaks 600 into sensibly phased and affordable plans.

3. Good governance: Respond to recommendations from the AGBIS Governance Effectiveness Review carried out in September 2022.

ACCOUNTING AND REPORTING RESPONSIBILITIES

The members of the Governing Body (who are also Directors of Sevenoaks School for the purposes of company law and trustees of the Charity) are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Governing Body to prepare financial statements for each financial year. Under that law the Governing Body has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the Governing Body must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including income and expenditure, of the charity for that period. In preparing these financial statements, the members of the Governing Body are required to:

The members of the Governing Body are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, 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 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Relevant audit information

Insofar as each of the Directors, as members of the Governing Body, at the date of approval of this report are aware, there is no relevant audit information (information needed by the company’s auditor in connection with preparing the audit report) of which the company's auditor is unaware. Each member of the Governing Body has taken all the steps that he or she should have taken as a member of the Governing Body in order to make himself or herself aware of the relevant audit information and to establish that the company's auditor is aware of that information.

Approved by the Governing Body of Sevenoaks School on 5th December 2022, including, in their capacity as company directors, approving the Directors’ and Strategic Reports contained therein, and signed on its behalf by:

Alison Beckett Chair of Governing Body

14

Independent Auditor’s Report to Sevenoaks School

Opinion

We have audited the financial statements of Sevenoaks School (‘the charitable company’) for the year ended 31 July 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information contained within the annual report. 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

15

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 14, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and taxation legislation, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent School Standards) Regulations 2014, health and safety legislation and employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing and recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Finance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, Independent Schools Inspectorate, Ofsted and reading minutes of meetings of those charged with governance.

16

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Tina Allison

Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor

London

Date 21 April 2023

17

SEVENOAKS SCHOOL STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2022

----- Start of picture text -----
Unrestricted Restricted
Notes funds funds 2022 2021
£'000 £'000 £'000 £'000
Income from:
Charitable activities
School fees receivable 2 33,645 - 33,645 31,374
Ancillary trading income 3 2,277 - 2,277 1,892
Other trading activities
Charitable trading income 4 881 - 881 437
Investments
Investment income 5 - 31 31 30
Bank and other interest 6 48 - 48 39
Voluntary sources
Grants and donations 7 213 856 1,069 877
Other
Other income 1.4 - - - 265
Total incoming resources 37,064 887 37,951 34,914
Expenditure on:
Raising funds
Charitable trading costs 8 (1,059) - (1,059) (866)
Financing costs 9 (41) - (41) (42)
Total deductible costs (1,100) - (1,100) (908)
Charitable activities
Education and grant making 8 (37,571) (491) (38,062) (36,635)
Total expenditure (38,671) (491) (39,162) (37,543)
Net (outgoing)/incoming funds from
operations before transfers and investment
gains (1,607) 396 (1,211) (2,629)
(Losses)/gains on investments 12 - (13) (13) 150
Transfers between funds 21 476 (476) - -
Net loss (1,131) (93) (1,224) (2,479)
Pension scheme actuarial gains 22 5,132 - 5,132 1,931
Net movement in funds for the year 4,001 (93) 3,908 (548)
Fund balances brought forward 1 August 2021 24,609 1,555 26,164 26,712
Fund balances carried forward 31 July 2022 28,610 1,462 30,072 26,164
----- End of picture text -----

The notes on pages 21 to 40 form part of these financial statements.

18

SEVENOAKS SCHOOL BALANCE SHEET AS AT 31 JULY 2022

----- Start of picture text -----
Notes 2022 2021
£'000 £'000
FIXED ASSETS
Tangible fixed assets 11 21,816 23,805
Investments 12 1,012 1,025
22,828 24,830
CURRENT ASSETS
Debtors 13 1,656 1,527
Cash and deposits 22,037 19,293
23,693 20,820
CURRENT LIABILITIES
Creditors payable within one year 14 (14,425) (12,269)
NET CURRENT ASSETS 9,268 8,551
TOTAL ASSETS LESS CURRENT LIABILITIES 32,096 33,381
LONG TERM LIABILITIES
Creditors payable after more than one year 15 (2,024) (2,460)
Pension scheme funding surplus/(deficit) 22 0 (4,757)
NET ASSETS 21 30,072 26,164
REPRESENTED BY:
RESTRICTED FUNDS 21 1,462 1,555
UNRESTRICTED FUNDS 21
Designated funds
Fixed assets 21,816 23,805
Bursary reserve 1,137 939
22,953 24,744
Pension reserve 0 (4,757)
Other unrestricted funds 5,657 4,622
General funds 5,657 (135)
TOTAL FUNDS 30,072 26,164
----- End of picture text -----

These financial statements were approved by the Governing Body on 5 December 2022 and were signed on its behalf by:

Mrs Alison Beckett Chair of Governing Body

The notes on pages 21 to 40 form part of these financial statements.

19

SEVENOAKS SCHOOL CASH FLOW STATEMENT FOR THE YEAR ENDED 31 JULY 2022

----- Start of picture text -----
Note 2022 2021
£'000 £'000 £'000 £'000
Net cash inflow from operations
Net cash provided by operating activities (i) 4,191 260
Cash flows from investing activities
Payment for tangible fixed assets (980) (4,384)
Proceeds on sale of tangible fixed assets 26 35
Net return on defined benefit pension scheme (531) 2,329
Investment income and bank interest received 79 68
Net cash used in investing activities (1,406) (1,952)
Cash flows from financing activities:
Finance costs paid (41) (42)
Net cash used in financing activities (41) (42)
Change in cash/cash equivalents in the period 2,744 (1,734)
Cash/cash equivalents at the beginning of the
reporting period 19,293 21,027
Cash/cash equivalents at the end of the reporting
period (ii) 22,037 19,293
(i) Reconciliation of net income to net cash flow from operating activities
Net outgoing funds (1,211) (2,629)
Elimination of non-operating cashflows:
- Investment income (79) (68)
- Financing costs 41 42
Defined benefit pension scheme adjustments 906 (1,850)
Depreciation charge 2,898 2,949
Loss/(profit) on sale of assets 45 3
(Increase) in debtors (129) (404)
Increase in creditors 1,375 868
(Decrease)/Increase in fees in advance scheme
creditors (763) 239
Increase in parents' deposits 1,108 1,110
5,402 2,889
Net cash inflow/(outflow) from operations 4,191 260
(ii) Analysis of changes and cash equivalents
At 1 Aug At 31 Jul
2021 Cashflow 2022
£'000 £'000 £'000
Deposits 7,855 346 8,201
Cash at bank 11,438 2,398 13,836
19,293 2,744 22,037
----- End of picture text -----

The notes on pages 21 to 40 form part of these financial statements

20

SEVENOAKS SCHOOL STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 31 JULY 2022

1. ACCOUNTING POLICIES

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Companies Act 2006 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - effective 1 January 2015.

The functional currency of the School is considered to be GBP because that is the currency of the primary economic environment in which the School operates.

The accounts are drawn up on the historical cost basis of accounting, as modified by the revaluation of investments. The accounts present the statement of financial activities (SOFA), the balance sheet and the cash flow statement for the charity.

The School is a Public Benefit entity registered as a charity in England and Wales and a company limited by guarantee. It was incorporated on 23 September 2003 (company number: 4908949) and registered as a charity on 5 January 2004 (charity number: 1101358).

Going concern

Having reviewed the impact of Covid-19 on the School’s operations and finances, and taking into consideration the funding facilities available to the School together with the expected ongoing demand for places and the School’s future projected cash flows, the Governors have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future and consider that there are no material uncertainties over the School’s financial viability. 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 14.

Critical accounting judgements and key sources of estimation uncertainty

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

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

In the view of the governors, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the School’s financial statements.

1.1 Fees and similar income

Fees receivable and charges for services and use of the premises, less any allowances, scholarships or bursaries granted by the School against those fees, but including contributions from restricted funds, are accounted for in the period in which the service is provided.

1.2 Investment income

Investment income from dividends, bank balances and fixed interest securities is accounted for on an accruals basis.

1.3 Donations, legacies, grants and other voluntary incoming resources

Voluntary incoming resources are accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the School is considered probable.

21

SEVENOAKS SCHOOL STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 31 JULY 2022

1. ACCOUNTING POLICIES (Continued)

1.3 Donations, legacies, grants and other voluntary incoming resources (Continued)

Voluntary income for the School’s general purposes is accounted for as unrestricted and is credited to the General Fund. Where a donor 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 are valued at estimated open market value at the date of the gift, in the case of assets for retention or consumption, or at the value to the School in the case of donated services or facilities.

1.4 Other income

Included within Other Income are grants in respect of the Coronavirus Job Retention Scheme (CJRS) of £Nil (2021: £265,000). Grants received in respect of the CJRS have been accounted for using the performance model.

1.5 Expenditure

Expenditure is accrued as soon as a liability is considered probable. Expenditure attributable to more than one cost category in the SOFA is apportioned to them on the basis of the estimated amount attributable to each activity during the year by reference to the use made of the underlying assets. Irrecoverable VAT is included with the item of expenditure to which it relates.

Grants awarded are expended as soon as they become legal or operational commitments. Governance costs comprise the costs of complying with constitutional and statutory requirements.

1.6 Tangible fixed assets

Expenditure on the acquisition, construction or enhancement of land and buildings, vehicles, furniture, machinery, IT equipment and systems, and other equipment costing more than £5,000 is capitalised and carried in the balance sheet at historical cost. In certain circumstances, where the cost of an asset is not ascertainable, a reasonable estimate of the cost, if material, has been used.

Other expenditure on equipment incurred in the normal day-to-day running of the School is charged to the Statement of Financial Activities as incurred.

1.7 Depreciation

Depreciation is provided to write off the cost of all relevant tangible fixed assets less estimated residual value based on current market prices, in equal annual instalments over their expected useful economic lives:

School freehold and leasehold buildings, including major extensions - 50 years Improvements to freehold and leasehold buildings - 10 years Furniture, machinery and equipment - 4 years Motor vehicles - 4 years

IT equipment and systems - 3 years

1.8 Investments

Listed investments are valued at their market values as at the balance sheet date. Unrealised gains and losses arising on the revaluation of investments are credited or charged to the Statement of Financial Activities and are allocated to the appropriate Fund according to the “ownership” of the underlying assets.

1.9 Sennocke Services Limited

The principal activity of the School’s subsidiary company, Sennocke Services Limited, is to carry on the commercial trading business of Sevenoaks School. The activity and balance sheet is not currently at a level which is considered to be material and, therefore, the accounts of Sennocke Services Limited are not consolidated.

1.10 Fund accounting

The charitable trust funds of the School are accounted for as unrestricted or restricted income, in accordance with the terms of trust imposed by the donors.

22

SEVENOAKS SCHOOL STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 31 JULY 2022

1. ACCOUNTING POLICIES (Continued)

1.10 Fund accounting (Continued)

Unrestricted income belongs to the School’s corporate reserves, spendable at the discretion of the Governors either to further the School’s Objects or to benefit the School itself. Where the Governors decide to set aside any part of these funds to be used in future for some 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 to some specific purpose intended by the donor.

1.11 Pension costs

Retirement benefits to employees of the School and its subsidiary are provided through three pension schemes, two defined benefit on a career average revalued basis (CARE) schemes, and one defined contribution scheme. The pension costs charged in the Statement of Financial Activities are determined as follows:

(a) The Teachers’ Pension Scheme – This scheme is a multi-employer pension scheme. It is not possible to identify the School’s share of the underlying assets and liabilities of the Teachers’ Pension Scheme on a consistent and reasonable basis and therefore, as required by FRS102, the School accounts for the scheme as if it were a defined contribution scheme. The scheme changed from a defined benefit scheme to a CARE scheme in April 2015. The School’s contributions, which are in accordance with the recommendations of the Government Actuary, are charged in the period in which the salaries to which they relate are payable.

(b) The School also contributes to the Local Government Pension Scheme (LGPS) for support staff at rates determined by the scheme actuary. The LGPS transitioned from a defined benefit to a CARE scheme in April 2014, and is accounted for under FRS102. The surplus in the LGPS is not recognised as a defined benefit plan asset in the balance sheet as the School is unable to recover the surplus, either through reduced contributions in the future or through refunds from the plan. In prior years, the net defined benefit liability of the scheme was shown in the accounts as a designated fund entitled “Pension Reserve”, which was deducted from unrestricted funds in the balance sheet. The Governors note that the calculated notional deficit or surplus calculated under FRS102 can vary greatly from year to year depending on the assumptions made at the valuation date, but with normally little or no effect on short term cashflows.

(c) The School’s Group Personal Pension Plan – This is a defined contribution group personal pension plan for support staff with Aegon. Employers’ pension costs are charged in the period in which the salaries to which they relate are payable. Since 1 April 2010 all new support staff join the defined contribution Group Pension Plan, including those joining the scheme under auto-enrolment.

1.12 Operating leases

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

1.13 Financial instruments

Financial instruments are initially recognised at transaction value and subsequently measured at amortised cost with the exception of investments which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access and term deposit bank accounts. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions.

23

SEVENOAKS SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

2.
CHARITABLE ACTIVITIES - SCHOOL FEES RECEIVABLE
Fees receivable consist of:
School fees
Less: Scholarships, bursaries and other awards
Add back: Bursaries and other awards paid for by
restricted funds		 2022
£'000
35,578
(2,392)
33,186
459
33,645		 2021
£'000
33,236
(2,517)
30,719
655
31,374

Scholarships, bursaries and other awards were paid to 271 pupils (2021: 287). Within this, means tested bursaries totalling £1.35m were paid to 56 pupils (2021: £1.585m 74 pupils).

3. CHARITABLE ACTIVITIES - ANCILLARY TRADING INCOME

Extras
Registration fees
Fees in lieu of notice and forfeit deposits
Shop and other trading income
Transport from Sevenoaks Station		 1,668
367
134
78
30
2,277		 1,421
292
143
18
18
1,892

4. CHARITABLE TRADING INCOME

Income and costs incurred in providing educational courses and provision of staff accommodation.

5. INVESTMENT INCOME

Securities investment income
Equities
BANK AND OTHER INTEREST
Bank interest		 Unrestricted
£'000
0
0
Unrestricted
£'000
48
48		 Restricted
£'000
31
31
Restricted
£'000
0
0		 2022
£'000
31
31
Total
£'000
48
48		 2021
£'000
30
30
2021
£'000
39
39

6. BANK AND OTHER INTEREST

24

SEVENOAKS SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

7. GRANTS AND DONATIONS RECEIVABLE

Grants to the School for bursaries from:
- Sevenoaks School Foundation
Gift aided donation - Sennocke Services Ltd
Grants to the School for non bursaries from:
- Sevenoaks School Foundation
Sundry grants and donations		 Unrestricted
£'000
-
202
3
8
213		 Restricted
£'000
555
-
298
3
856		 2022
£'000
555
202
301
11
1,069		 2021
£'000
644
20
202
11
877

8. ANALYSIS OF EXPENDITURE

(a) Total expenditure
Note
Staff costs
(note 10)
£'000
Cost of generating funds
Charitable trading expenses
209
Financing costs
-
Total cost of generating funds
209
Charitable expenditure
Education and grant making
Teaching
14,370
Welfare
2,228
Premises repair and maintenance
1,318
Support costs and governance
3,684
Grants, awards and prizes (note 8(b))
-
Total charitable expenditure
21,600
Total expended
21,809
Comparative total expenditure
Note
Staff costs
(note 10)
£'000
Cost of generating funds
Charitable trading expenses
157
Financing costs
-
Total cost of generating funds
157
Charitable expenditure
Education and grant making
Teaching
14,144
Welfare
2,206
Premises repair and maintenance
1,207
Support costs and governance
3,694
Grants, awards and prizes (note 8(b))
-
Total charitable expenditure
21,251
Total expended
21,408		 £'000
195
-
195
301
56
2,253
94
-
2,704
2,899
£'000
152
-
152
355
52
2,238
153
-
2,798
2,950
Depreciation
(note 11)
Depreciation
(note 11)		 Other
£'000
655
41
696
1,927
2,287
7,368
1,685
491
13,758
14,454
Other
£'000
557
42
599
1,062
2,192
7,109
1,546
677
12,586
13,185		 Total
£'000
1,059
41
1,100
16,598
4,571
10,939
5,463
491
38,062
39,162
Total 2021
£'000
866
42
908
15,561
4,450
10,554
5,393
677
36,635
37,543		 Total
£'000
866
42
908
15,561
4,450
10,554
5,393
677
36,635
37,543

25

SEVENOAKS SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

2022
(b)
Grants, awards and prizes
£'000
From restricted funds:
Bursaries and other grants and awards
491
From Unrestricted funds:
Prizes and leaving awards
5		 2021
£'000
671
6
496 677
(c)
Governance included in support costs
Remuneration paid to auditor for audit services
28
Other governance costs
22		 32
19
50 51
9.
FINANCE AND OTHER COSTS
No travel expenses (2021: £Nil) were claimed by members of the Governing Body (2021: 0) .
In addition to the above audit remuneration, the auditor received fees for taxation compliance services
£3,474 (2021: £12,000).		 totalling
Fees in advance debt financing costs
STAFF COSTS
The aggregate payroll costs for the year were as follows:
Wages and salaries
Social security costs
Other pension		 41
41
17,193
1,763
2,853
21,809		 42
42
16,750
1,637
2,829
21,216

10. STAFF COSTS

None of the Governors received any remuneration or other benefits from Sevenoaks School or from any connected body.

26

SEVENOAKS SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

----- Start of picture text -----
2022 2021
10. STAFF COSTS (Continued)
Aggregate employee benefits of key management personnel 1,833 2,092
Number of higher paid employees in bands of:
£60,000 to £70,000 41 43
£70,001 to £80,000 20 26
£80,001 to £90,000 7 3
£90,001 to £100,000 5 3
£100,001 to £110,000 2 -
- -
£150,001 to £160,000
£160,001 to £170,000 - 1
£220,001 to £230,000 - 1
£270,001 to £280,000 1 -
The figures above include taxable benefits in kind and therefore do not reflect actual salaries.
The number of staff in the higher paid employee bands above with
retirement benefits accruing
- in defined contribution schemes was 12 8
of which the contributions amounted to £83,899 £57,686
- in defined benefit schemes was 64 68
The average number of employees during the year was as follows:
Teaching 168 167
Teaching support 28 32
Welfare 58 64
Premises 45 30
Support 77 83
Other activities 143 128
519 504
----- End of picture text -----*

During the year settlement agreement payments totalling £36,164 (2021: £Nil) were payable, all of which was paid after the year end.

27

SEVENOAKS SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

11. TANGIBLE FIXED ASSETS

Property &
Improvements
£'000
Cost
At 1 August 2021
33,019
Additions
683
Disposals
(333)
At 31 July 2022
33,369
Depreciation
At 1 August 2021
10,412
Depreciation
2,267
Disposals
(262)
At 31 July 2022
12,417
Net Book Value
At 31 July 2022
20,952
At 31 July 2021
22,607
12. SECURITIES INVESTMENTS
Investments
At 1 August 2021
(Decrease)/Increase in value of investments
At 31 July 2022
Investments comprise:
Alternative assets
Pooled charity investment funds
Holdings at the year end comprising more than 5% of the total are:
COIF income shares
M & G Charifund		 Vehicles &
equipment
£'000
6,970
297
(61)
7,206
5,772
631
(61)
6,342
864
1,198
2022
£'000
1,025
(13)
1,012
1,012
890
121		 Total
£'000
39,989
980
(394)
40,575
16,184
2,898
(323)
18,759
21,816
23,805
2021
£'000
875
150
1,025
1,025
901
124

28

SEVENOAKS SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

13. DEBTORS

Fees and extras
Trade debtors
Staff loans
Other debtors
Other prepayments and accrued income
Amounts due from subsidiary companies		 2022
2021
£'000
£'000
425
617
184
372
3
7
35
33
784
474
225
24
1,656
1,527
CREDITORS:Amounts falling due within one year
Deposits from parents
4,303
3,195
Fees received from parents in advance of term
3,774
4,547
Trade creditors
898
463
Taxation and social security
455
-
Payroll costs
1,624
1,268
Fees in advance scheme
1,874
2,201
Accruals and deferred income
1,297
395
Loan from the Johnson Trust
200
200
All debtors are due within one year, except for £Nil (2021: £5,000) of staff loans, which are due after more than one
year.
14,425
12,269
CREDITORS:Amounts falling due after more than one year
Fees in advance scheme		 2,024
2,460

14. CREDITORS: Amounts falling due within one year

15. CREDITORS: Amounts falling due after more than one year

16. FEES IN ADVANCE SCHEME

Parents may enter into a contract to pay the School in advance, fixed contributions towards the tuition fees for up to seven years. The money may be returned subject to specific conditions on the receipt of one term's notice. Assuming pupils will remain in the School, fees will be applied as follows:

After five years
Within two to five years
Within one to two years
Within one year		 45
912
1,067
2,024
1,874
3,898		 87
1,060
1,313
2,460
2,201
4,661

29

SEVENOAKS SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

16. FEES IN ADVANCE (Continued)

Summary of movements in liability
Balance at 1 August 2021
New contracts
Repayments
Amounts used to pay fees
Amounts accrued to contract as debt financing cost
Balance at 31 July 2022
17. FINANCIAL INSTRUMENTS
Financial assets measured at fair value
18. LEASES
Leasehold property leases which expire:
Payable within one year
Payable in the second to fifth year inclusive
Payable after five years
Other leases which expire:
Payable within one year
Payable in the second to fifth year inclusive
Payable after five years
Freehold property leases which expire:
Receivable within one year
Receivable in the second to fifth year inclusive
Receivable after five years
Financial assets held at fair value include assets held as investments.		 2022
£'000
1,012
3,808
14,563
9,654
28,025
54
34
-
88
22
-
-
22		 £'000
4,661
1,547
-
(2,351)
42
3,899
2021
£'000
1,025
3,862
14,562
13,923
32,347
51
62
-
113
22
-
-
22

30

SEVENOAKS SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

19. MAJOR FUNDS OF THE SCHOOL

a. RESTRICTED FUNDS

b. UNRESTRICTED AND DESIGNATED FUNDS

Unrestricted funds represent accumulated income from the School's activities and other sources that are available for the general purposes of the School. Designated funds represent unrestricted funds that have been set aside for specific purposes by decision of the Governing Body.

o General reserve

The general unrestricted funds of the School.

31

SEVENOAKS SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

19. MAJOR FUNDS OF THE SCHOOL (Continued)

b. UNRESTRICTED AND DESIGNATED FUNDS

o Fixed assets reserve

20. ANALYSIS OF NET ASSETS BETWEEN FUNDS

At 31 July 2022
Tangible fixed assets
Securities investments
Net current assets
At 31 July 2021
Tangible fixed assets
Securities investments
Net current assets
Long term liabilities		 Restricted
£'000
-
1,012
450
1,462
-
1,025
530
-
1,555		 Unrestricted
£'000
21,816
-
8,818
30,634
23,805
-
8,021
(7,217)
24,609		 Total
£'000
21,816
1,012
9,268
32,096
23,805
1,025
8,551
(7,217)
26,164

32

SEVENOAKS SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

21. SUMMARY OF MOVEMENTS ON MAJOR FUNDS

Unrestricted funds
General reserve
Pension reserve
Fixed assets reserve
Bursary reserve
Total unrestricted
Restricted funds
Bursary fund
SFU scholarship
Ligner scholarship
Plender scholarship
Johnson scholarship
Downton scholarship
Garrod scholarship
Forder bursary
General scholarship
Taylor prizes
Shooting fund
Consolidated prizes fund
Kirkwood fund
Consolidated travel funds
Friends of Sevenoaks
IDEA/IDEA Beta
Science Week
Outreach
ITL
Kent Academies Network
Science Equipment fund
DfE Sevenoaks Community
Fund
DfE Kent IBCP Network
Cross Partner Transition
Grant
STGSC Biology Pond
COVID-19 Appeal fund
Chiesman Trust
Music Legacy
Conservation mgmt plan
Higher Education fund
Boarding house costs
Total restricted
Total funds		 At 1 August
2021
£'000
4,622
(4,757)
23,805
939
24,609
-
65
222
139
238
77
74
60
25
32
105
113
20
93
16
1
2
4
-
-
17
(8)
3
-
50
83
124
-
-
-
-
1,555
26,164		 Incoming
resources
£'000
34,952
-
586
1,526
37,064
459
2
5
3
5
-
2
3
1
1
2
2
-
2
-
-
-
7
48
38
-
39
6
3
-
187
3
6
40
8
15
887
37,951		 Resources
expended
£'000
(34,393)
(375)
(2,575)
(1,328)
(38,671)
(459)
-
-
-
-
-
-
-
-
-
-
-
-
(2)
-
-
-
(5)
-
-
-
(13)
(9)
(3)
-
-
-
-
-
-
-
(491)
(39,162)		 Other
transfers
£'000
476
-
-
0
476
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(13)
(1)
(2)
(6)
(48)
(38)
(17)
-
-
-
(6)
(270)
(6)
(6)
(40)
(8)
(15)
(476)
-		 Gains/
(Losses)
£'000
-
5,132
-
-
5,132
-
(1)
(3)
(1)
(2)
-
-
(1)
-
-
(1)
(1)
-
(1)
-
-
-
-
-
-
-
-
-
-
-
-
(2)
-
-
-
-
(13)
5,119		 At 31 July
2022
£'000
5,657
-
21,816
1,137
28,610
-
66
224
141
241
77
76
62
26
33
106
114
20
92
3
-
-
-
-
-
-
18
-
-
44
-
119
-
-
-
-
1,462
30,072

£1,012,000 of restricted funds are held in securities (2021: £1,025,000), and the remaining £450,000 (2021: £530,000) is held in cash and deposits.

33

SEVENOAKS SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

21. SUMMARY OF MOVEMENTS ON MAJOR FUNDS (Continued)

The £476K transferred from restricted funds to unrestricted funds includes depreciation on capital equipment purchased using specific restricted funds and specific grants for the Institute of Teaching & Learning and the Kent Academies Network.

Comparative summary of movement on major funds

Unrestricted funds
General reserve
Pension reserve
Fixed assets reserve
Bursary reserve
Total unrestricted
Restricted funds
Bursary fund
SFU scholarship
Ligner scholarship
Plender scholarship
Johnson scholarship
Downton scholarship
Garrod scholarship
Forder bursary
General scholarship
Taylor prizes
Shooting fund
Consolidated prizes fund
Kirkwood fund
Consolidated travel funds
Friends of Sevenoaks
IDEA/IDEA Beta
Science Week
Outreach
ITL
Kent Academies Network
Science Equipment fund
DfE Sevenoaks Community
Fund
DfE Kent IBCP Network
STGSC Biology Pond
COVID-19 Appeal fund
Chiesman Trust
Total restricted
Total funds		 At 1 August
2020
£'000
8,359
(6,209)
22,408
870
25,428
-
58
192
121
208
77
64
50
20
27
99
99
18
80
18
1
2
4
-
-
39
-
-
-
-
107
1,284
26,712		 Incoming
resources
£'000
28,098
-
4,288
1,642
34,028
496
2
5
3
5
-
2
3
1
1
1
2
-
2
1
-
-
-
3
26
1
-
10
55
264
3
886
34,914		 Resources
expended
£'000
(31,929)
(479)
(2,891)
(1,573)
(36,872)
(496)
(4)
-
-
-
-
(2)
(4)
-
-
-
-
-
-
-
-
-
-
-
-
-
(8)
(7)
-
(150)
-
(671)
(37,543)		 Other
transfers
£'000
94
-
-
-
94
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(3)
-
-
-
(3)
(26)
(23)
-
-
(5)
(31)
(3)
(94)
0		 Gains/
(Losses)
£'000
-
1,931
-
-
1,931
-
9
25
15
25
0
10
11
4
4
5
12
2
11
-
-
-
-
-
-
-
-
-
-
-
17
150
2,081		 At 31 July
2021
£'000
4,622
(4,757)
23,805
939
24,609
-
65
222
139
238
77
74
60
25
32
105
113
20
93
16
1
2
4
-
-
17
(8)
3
50
83
124
1,555
26,164

34

SEVENOAKS SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

22. PENSION SCHEMES

Retirement benefits to employees of the School are provided through two defined benefit schemes and one defined contribution scheme, which are funded by the School’s and employees’ contributions.

Defined benefit schemes

Teachers' Pension Scheme

The School participates in the Teachers’ Pension Scheme (England and Wales) (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £2,164,589 (2021: £2,115,000) and at the year end £184,250 (2021: £175,000) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by the Teachers’ Pensions Regulations 2014. 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 by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions. On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following the public consultation, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations.

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.

Until the cost cap mechanism revision is completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

Local Government Pension Scheme

Sevenoaks School is an “admitted body” to the Kent County Council (KCC) Pension Fund (LGPS). The scheme was closed to new members with effect from 1 April 2010, though it remains open to existing members.

Contributions are made to the scheme in accordance with the recommendations of the scheme’s actuary and are charged to the Statement of Financial Activities. The current service contribution rate during the year was set in bands, linked to the level of full-time equivalent salary received, ranging from 5.5% to 12.5% payable by employees and a further 39.3% payable by the School. At 31 July 2022, £Nil was accrued in respect of pension contributions to this scheme ( 2021: £9,000 ).

35

SEVENOAKS SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

22. PENSION SCHEMES (Continued)

a. The amounts recognised in the balance sheet are as follows:
Present value of funded obligations
Fair value of scheme assets
Net asset/(liability)
b. Changes in the present value of the defined benefit obligation
Opening defined benefit obligation
Current service cost
Interest cost
Change in financial assumptions
Change in demographic assumptions
Experience (gain)/loss on defined benefit obligation
Estimated benefits paid net of transfers in
Contributions by scheme participants and other employers
Closing defined benefit obligation
c. Changes in the fair value of the scheme assets
Opening fair value of scheme assets
Interest on assets
Return on assets less interest
Other actuarial gains/(losses)
Administration expenses
Contributions by employer, including unfunded
Contributions by scheme participants and other employers
Benefits paid plus unfunded net of transfers in
Closing fair value of scheme assets
d. The amounts included within the Statement of Financial Activities
Service cost
Net interest on the defined liability
Administration expenses
Total amount charged within net incoming resources
Net actuarial (gains)/losses recognised in the year		 2022
£'000
(17,880)
17,880
0
24,933
679
379
(6,779)
(472)
53
(963)
50
17,880
20,176
308
(448)
-
(12)
304
50
(963)
19,415
679
71
12
762
(5,132)		 2021
£'000
(24,933)
20,176
(4,757)
23,744
906
306
1,103
(308)
(397)
(501)
80
24,933
17,535
228
2,419
-
(12)
427
80
(501)
20,176
906
78
12
996
1,931

The School expects to contribute £304,000 in 2022/23.

36

SEVENOAKS SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

22. PENSION SCHEMES (Continued)

----- Start of picture text -----
|||| |---|---|---| |2022|2021| |£'000|£'000| |e. Reconciliation of movements in Present Value of Plan Liabilities| |and Assets| |Net liability at beginning of year|4,757|6,209| |Movements in the year:| |Employer's current service cost|679|906| |Employer's contribution|(304)|(427)| |Expected net interest on plan assets|(70)|(77)| |Actual net interest less expected net interest on plan assets|601|(2,252)| |Changes in assumptions underlying the plan liabilities|(7,198)|398| |Net (asset)/ liability at the end of the year|(1,535)|4,757|

----- End of picture text -----

The net asset of £1,535 is not recognised as a defined benefit plan asset in the balance sheet, in accordance with FRS 102, as the School is unable to recover the surplus, either through reduced contributions in the future or through refunds from the plan.

f. The major categories of scheme assets as percentage of total assets

----- Start of picture text -----
|||| |---|---|---| |2022|2021| |%|%| |Equities|65%|65%| |Gilts|1%|1%| |Other bonds|13%|14%| |Property|12%|10%| |Cash|2%|3%| |Absolute return fund|7%|7%| |100%|100%| |The actual return on scheme assets is estimated to be (0.71%) in the| |year ended 31 July 2022.| |g. Principal actuarial assumptions at the balance sheet date| |Financial assumptions| |Discount rate|3.40%|1.55%| |Rate of increase in salaries|3.85%|3.80%| |Rate of increase in payment of pensions|2.85%|2.80%|

----- End of picture text -----

The significant increase in the discount rate from 1.55% to 3.40% has driven the change in plan liabilities.

Assumed life expectancy in years at age 65:

----- Start of picture text -----
|||| |---|---|---| |Non pensioners| |Females|24.9|25.1| |Males|22.3|22.9| |Pensioners| |Females|23.5|23.6| |Males|21.0|21.6|

----- End of picture text -----

37

SEVENOAKS SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

22. PENSION SCHEMES (Continued)

h. History of experience gains and losses

Defined benefit obligation
Plan assets
Surplus / (Deficit)
Experience adjusments on
plan liabilities		 2022
£'000
(17,880)
19,415
1,535

(53)		 2021
£'000
(24,933)
20,176
(4,757)
397		 2020
£'000
(23,744)
17,535
(6,209)
(778)		 2019
£'000
(20,500)
17,180
(3,320)
-		 2018
£'000
(18,780)
16,613
(2,167)
-		 2017
£'000
(19,066)
15,422
(3,644)
365

Defined contribution scheme

The Sevenoaks School Group Personal Pension Plan (GPP) started in April 2010. This is a money purchase group personal pension scheme managed by Aegon. Members of the contractually enrolled scheme pay a minimum of 4% of their pensionable salary with no maximum limit. The School matches each member’s contribution, up to a limit of 6%. Members of the GPP scheme receive a death-in-service benefit of 3 times salary.

There is a sub-section of the GPP scheme for auto-enrolment. Members of the auto-enrolled scheme currently pay 5% of their pensionable salary.

Members may contract to exchange salary for higher pension contribution. Employers’ contributions are charged in the Statement of Financial Activities in the period in which the salaries to which they relate are due. Employers’ contributions in the year amounted to £214,000 (2021: £178,000). At 31 July 2022 there were £Nil accrued pension contributions for this scheme (2021: £16,000).

38

SEVENOAKS SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

23. SUBSIDIARIES

The School owns all the issued share capital of a trading company Sennocke Services Limited, company number 1980362 incorporated in England, which carries out the commercial trading services of Sevenoaks School. The School receives any surpluses earned by the company as a gift-aided donation. The financial statements of the company for the year to 31 July 2022, which are not consolidated with the School financial statements, showed the following position:

PROFIT AND LOSS ACCOUNT
Turnover
Operating costs
Profit from continuing activities
Deposit interest received
Gift aided donation (Gross)
Profit after payment of covenant
Balance Brought forward
Balance carried forward
BALANCE SHEET
Tangible fixed assets
CURRENT ASSETS
Debtors
Cash at bank and in hand
CREDITORS:Amounts falling due within one year
Net current assets
TOTAL NET ASSETS
CAPITAL AND RESERVES
Called up share capital
Profit and loss account		 2022
£
437,669
(235,822)
201,847
-
201,847
(201,847)
-
15,000
15,000
-
32,459
221,201
253,660
(238,658)
15,002
15,002
2
15,000
15,002		 2021
£
113,078
(92,509)
20,569
-
20,569
(20,569)
-
15,000
15,000
-
174,552
26,678
201,230
(186,228)
15,002
15,002
2
15,000
15,002

No management charges were paid by Sennocke Services Limited to the School during the year (2021: £Nil). At 31 July 2022 a balance of £201,847 (2021: £20,569) was owed to the School.

24. RELATED PARTY TRANSACTIONS

Sevenoaks School is the educational sponsor of Knole Academy. The Headmaster and the Senior Deputy Head of Sevenoaks School are also Governors of Knole Academy.

The Trustees of the C P Johnson Will Trust made an interest free loan of £200,000 to Sevenoaks School in November 2015 for an initial period of five years. This was extended for a further year during the year ended 31 July 2021 and was repaid in November 2022. There was a balance outstanding of £200,000 at 31 July 2022 (2021: £200,000).

39

SEVENOAKS SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

25. STATEMENT OF FINANCIAL ACTIVITIES - COMPARATIVE FIGURES BY FUND TYPE

Income from:
Charitable activities
School fees receivable
Ancilliary trading income
Other trading activities
Charitable trading income
Investments
Investment income
Bank and other interest
Voluntary sources
Grants and donations
Other
Other income
Total incoming resources
Expenditure on:
Raising funds
Charitable trading costs
Financing costs
Total deductible costs
Charitable activities
Education and grant making
Total expenditure
Net (outgoing)/incoming funds from operations
before transfers and investment gains
Gains on investments
Transfers between funds
Net loss
Pension scheme actuarial gains
Net movement in funds for the year
Fund balances brought forward 1 August 2020
Fund balances carried forward 31 July 2021		 Unrestricted
funds
£'000
31,374
1,892
437
-
39
21
265
34,028
(866)
(42)
(908)
(35,964)
(36,872)
(2,844)
-
94
(2,750)
1,931
(819)
25,428
24,609		 Restricted
funds
£'000
-
-
-
30
-
856
-
886
-
-
-
(671)
(671)
215
150
(94)
271
-
271
1,284
1,555		 Total funds
£'000
31,374
1,892
437
-
30
39
877
265
34,914
(866)
(42)
(908)
(36,635)
(37,543)
(2,629)
150
-
(2,479)
1,931
(548)
26,712
26,164

40