Company Registratlon Number: 06257502 {England & Wales) DHS EDUCATIONAL FOUNDATION LTD (formerly known as Durham High School for Girls) (A company limited by guarante6) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
DHS EDUCATIONAL FOUNDATION LTD IA company limited by guarantee) CONTENTS Page Reference and administrative details Trustees, report Statement of trustees. responsibilities 10 Independent auditors. report on the financial statements Statement of financial activities incorporating income and expenditure account Balance sheet 15 16 statement of cash flows 17 Notes to the financial statomonts 18-40
DHS EDUCATIONAL FOUNDATION LTD IA company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS Trustees H Mcmillan, Chairl K G Barker3 A D Beattie J C Eynon (appointed 7 March 2024) K T E Harrison1 Dr M A Hyder R J Gooding (appoirrted 7 March 2024) A J Hopper (appointed 7 March 2024) AMRyan Member of the Finance and General Purposes Committee Nominated Trustee by the Bishop of Durham Nominated Trustee by the Bishop of Jarrow Company registered number 06257502 DHS Educational Foundation Ltd (formerly known as Durham High School for Girls) Company name Princlpal and reglstered Farewell Hall office South Road Durham DH13TB Charity numbar 1119995 Chief executlve officer M Hill Key Executlves M Hill, Headmistress P Bryan. Director of Finance and Operations (Interim., appointed 1 September 2024, resigned 30 November 2024) J Hall, After School Care Manager L Middleton. Deputy Headmistress K Hall, EYFS Lead C Hopper, Head of Prep and Pre-Prep D Todd. Director of Finance and Operations (resigned 31 March 2024) J Guy. Director of Finance and Operations (Interirn,. appointed 1 December 2024) Independent auditors Clive Owen LLP Chartered Accountants and Statutory Auditors 140 Conisclrffe Road Darlington Co Durham DL3 7RT Bankers HSBC 1 Saddler Street Durham County Durham DH13NR Page 1
DHS EDUCATIONAL FOUNDATION LTD (A company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Solicitors HCR Legal LLP Ellenborough House Wellington Street Cheltenham GL50 1YD Investment advisors CCLA Investment Management Limited One Angel Lane London EC4R 3AB Insurance Brokers Marsh Education Practi Capital House 1- 5 Perrymount Road Haywards Heath West Sussex RH16 3SY Page 2
DHS EDUCATIONAL FOUNDATION LTD (A company limited by guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2024 The Trustees of DHS Educational Foundation Ltd. who are also the Directors of the Charitable Company for the purposes of the Companies Act 2006. present their annual report for the year ended 31 August 2024. The Trustees have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance wtth the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). Structure, governance and management a. Governing Document DHS Educational Foundation Ltd is a company limited by guarantee governed by its Memorandum and Articles of Association dated 23 May 2007, as amended by special resolutions dated 22 November 2012, 18 November 2021 and 17 November 2022, registered company number 06257502. It is a registered charity with the Charity Commission of England and Wales. charty number 1119995. The Trustees of DHS Educational Foundation Ltd are also the directors of the charitable company for the purposes of company law. Details of the Trustees who served during the year, and to the date these accounts are approved are included in the Reference and administrative details on page 1. b. Arrangements for settlng pay and remuneratlon of key management personnel The remuneration of key mansgement personnel is set by the Trustees through the Salaries Committee. The banded salary ranges employed are routinely benchmarked against those of other independent (and state) schools which allows the School to remain an attractNe employer. The bands are reviewed annually and generally an inflationary increase is applied. This is dependent upon the financial success of the School. Progression within the bands is based upon experience and responsibility for all levels of staff. c. Related partles and other connected charltles and oryanisations None of the Trustees receive remuneration or other benefit from their work with the School. Some Trustees have children or grandchIren attending the School. This does not affect their capabilty to make independent and fair decisions but. if there is a specific situation where there may be conflict, Trustees will declare their interest. d. Method of recruitment and appointment or election of Trustees The Governing Body consists of Co-opted Trustees and Nominated Trustees, all of whom are appointed for temis of three years and they can be re-elected for up to further term5. The Co-opted Trustees are cpted by the existing Trustees. Trustees are formally appointed at the Annual General Meeting (AGM) but may also be appointed by the Board 8t any time on a temporary basis until formal appointrnent at the next AGM. Procedures are in place to identify and recruit suitable individuals to provide strength and balance to the Board. Areas of expertise considered are education, finance, Child welfare, legal. marketing, further education and estates planning. Page 3
DHS EDUCATIONAL FOUNDATION LTD (A company limited by guaranteel TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Structure) governance and management (continued) e. Policies adopted for the Induction and training of Trustees New Trustee5 are made aware of their duties and responsibilities by the Chair and Senior Leadership team. All new Trustees spend time in School with senior staff and are provided with appropriate documentation. They are also given opportunities to attend courses run by The Association of Governing Bodie5 of Independent Schools (AGBIS) and other educational organisations. f. Organisational structure and decision making The Trustees determine the strategy and vision for the School and the day to day management is delegated to the Senior Leadership team. The Trustees have termly meetings and will meet more frequently if necessary. There are committees which meet in addition to full board meetings.. these are Finance and General Purposes, Audit and Compliance, Education, Buildings and Estates and Search & Nominations Committees. Trustees also attend meetings in regard to Health and Safety, Safeguarding and Salaries. Where a sub-committee is unable to meet, its business is added to full governor meeting agendas. Objectives and activities a. Objects and alms Charltable Objects The object of DHS Educational Foundation Ltd shall be the provision and conduct in or near the Cty of Durham of a day school, including nursery education faciliiies, for primarily girls, but boys may be admitted to the nursery and junior department. Aims and Intended Impact The aims of DHS Educational Foundation Ltd are: To create a friendly, caring community. based on Christian principles, where every individual is valued,. To develop the positive potential of every girl in all areas of her life-, and To encourage academic excellence and a life-long love of learning. Trustees believe the fulfilment of these aims will enable current and former pupils to contribute most effectively to the wider community. In the furtherance of these aims the Directors. as the charty Trustees, have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to the Charity Commission's published general and relevant sub- sector guidance concerning the operation of the Public Benefrt requirement under that Act. Page 4
DHS EDUCATIONAL FOUNDATION LTD (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Objectlves and activities (contlnued) b. Objoctlves, strategles and activities Objectives for the Year As set out in our previous staternents, our focus for the year has been a review of the curriculum working alongside RSAcademics, a renowned educstional consultancy. Thi8 brought about a refinement of the subject offer and a consequent reorganisation of staffing. All negotiations were handled carefully and compassionately to ensure the professional needs of 811 staff vRre properly catered for and the whole School community understood the need for change and were able to support the process. The rationalisation and cost control programme was agreed, ready for implementation for the academic year 2024125. In considering a strategy for the School, the Board undertook a thorough review of options for the future. The view considered several courses and concluded the long4erm interests of the School would be best serv6d by the fornation of a strategic partnership, Negotiations took place during the year with several potential partners which were narrowed down to a partner of choice. On 20 December 2024 the assets of the School together with Its rights of patents and trademarks were sold to Durham Education Limited. The operation of the School passed across to Durham Educ8tion on the same day. The residuary charity's future purpose 18 to support the provision of education. The trustees are committed to supporting the advancement of education at the Durham High School for Girls with the provision of grants for bursaries and other forms of support to its pupils and former pupils. These financial statements have been prepared to take account of the sale that took place after the balance sheet date and assets have been written down accordingly to reflect their net reali8able value at that point. The life of tha School continued wrth vibrancy throughout the period of change and the Trustees are indebted to the staff for their commitment and support throughout the period of transition. The whole School was delighted to receive the award of the Sunday Times Independent School of the Northeast award In December 2024, 8 fitting recognition of this unique and outstanding School. In the autumn of 2023 the School launched a strategy to improve its IT provlsion and during the year this Investment was recognised in many areas. The National Centre for Computing Education recognised the School for its efforts in encouraging girls to pursue Computer Science. 12 teams comprising 43 girls celebrated outstanding accomplishments in the GCHQ'S National Cyberfirst Girls, Competition. In senior school In particular work has been focussed on pupils, mental health and wellbeing with staff leads and pupil advocates giving support and guidance where needed. Working alongside the in house counsellor and using key external resources a core of support is available to all staff and pupils. Our excellent Safeguarding Provision has supported pupils and parents where needed. liaising with local authority bodles as and when required. Extra-curricular activity is in full swing. Sport and our PE department continue to punch above their weight, outperforming much larger schools in several areas, including competing locally and nationally. There are regular fixtures against local schools and in Tyne and We8r tournaments for Netb811, Football, Cricket, Rounders and Trampolining. Pupils are supported out of school where they are 8ble to compete on a national platform, such as having a gold medallist at the British Dry Slopes Championships and two girls attend the Glasshouse Centre for Advanced Training to participate in high-level instrumental training programmes. We have also run several trips with pupils enjoying residential visits and international trips. Prep school residential trips to Ford Castle, the Lakes and Paris have been 11 supported and provide a chance for pupils to experience life away from home while in a safe environment. In the Senior School there have been trips to Sri Lanka and Paris, together with the ever-popular ski trip, this time to Folgarida in Italy. Duke of Edinburgh expeditions in particular have been in full swing visiting the Yorkshire Dales, Lake District on expeditions for bronze, silver and gold awards. Page 5
DHS EDUCATIONAL FOUNDATION LTD (A company Ilmited by guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Objectives and actlvities (continued) These trips and events widen our educational offer and provide a richness of experience to support work in the classroom. They also serve to broaden pupils, experiences and skills to adapt and thrive once girls move beyond DHS Educational Foundation Ltd. c. Publlc benefit The School has 8lway8 made a priority of widening access through its comprehensive bursary scheme. The School continued its relationship with Gillas Lane School, Houghton le Spring, a primary school which has number of children from socially deprived backgrounds. Through the Schools Together campaign, the School has shared mental health resources with Gillas Lane. The School continued to provide money, resources and food to a variety of local and national charities throughout the year, including the St Cuthbert's Hospice. Feeding Families and the Durham Food Bank. Durham High Live, an outdoor concert in June, raised over £1600 for St Cuthbert's Hospice during this event. Pupi support&d Children In Need, Red Nose Day, Young Minds, DEC and Save the Children among others. In addition, a large proportion of Years 10 and 11 undertook charitable work as part of their Duka of Edinburgh Award Scheme and also managed to complete challenging expeditions to the Lake District, North Yorkshire Moors etc. d. Currlculum The School continues to be committed to its remit to offer a fully-rounded education that allows students to thrive and to reach the potential of which they are capable. The members of staff are committed to inculcate a lifelong love of learning, leading the students to be well educated members of the community in the fullest sense, knowing that well qualified does not necessarily mean well educated. The School emphasises the love of learning for its very self, not just for the quallficatlons at the end. Pre Prep I Prep wrap around care from 7.30am through to After School club continues to functlon well and with the help of Sixth Form pupils assisting the After School Care Manager gives a range of resources to keep the chlldren occupied and engaged. Years 1- 6 have access to Forest School as well as acce88 to our grounds, woods and outdoor classroom. Strateglc report a. Achievements and performance Results al A level continue to b8 excellent, with 1000/0 pass rates and overall results comparable to pre pandemic levels. Grades at A'.B of 839/0 comfortably exceeded national and most regional levels. Physlcg, Further Maths and all languages achieved 100 % A'_B grades. The majority of sixth fomi pupils achieved their first choice university offer and continue to be placed at renowned Universities. In the current year, almost half of Upper Sixth pupils are applying for stretch subject5 at university including law, medicine, dentistry as well as Oxbridge entrance. GCSE pass rate of 990/D With 68Q/o at grades 9-7, including over 24'h at grades 9, again higher than the comparative of 2023. Page 6
DHS EDUCATIONAL FOUNDATION LTD (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Strategic report (continued) Our programme of individual monitoring. mentoring and support for pupils. including specific support programmes and where required, meetings with parerrts. seek to allow each pupil to achieve of their best. Specific examination technique support and mentoring is also in pla to give the best chance of performing well on the day. The School is proud once again to have the best academic results for all schools in the County. b. Grant Mak5ng Policy In accordance with the Trustees. policy of widening access to the School. during 2023124 a total of £696.261 (2023: £609,086) was awarded in bursaries. prizes and scholarships to 161 pupils {2023: 141). The School's policy is to award scholarships on the basis of merit and bursaries on the grounds of financial hardship. The availability of all such awards for fee assistance, together with the terms and conditions for each kind of award. is advertised on the School's website at www.dhsfg.org.uk. as well as on application. c. Mental Health Provision The School is utterly committed to promoting active mental wellbeing as well as a commitment to assisting with any mental health concerns. In addition to the external agencies available to the school via Social Care and CAMHS, the School Counsellor and the three Mental Health Leads throughout the key stages continued in their roles and received extra training. The school counsellor continued to provide help to all members of stsff who sought assistance. In addition, staff continued to have access to Health Assured 24 helpline, plus, all staff had access to advice, health tips, and online and face to face counselling sessions, at no cost to the staff. Moreover. the students were involved in a variety of online mental health activities and a Mental Health Week was conducted in the Summer Term. A designated Mental Health Ambassador continued to work with the Sixth Form Prefect Team. d. Old Girls, Association ("OGA") Meetings continued throughout the year including a vibrant AGM. The School remains grateful to the Old Girls, Association for its support. e. Parents and Friends Association ("P and F") The P and F continued throughout the year and made many valuable donations to the School during the course of the year both in terms of time and financial resources. Particular assistance was provided for Elevate study skills sessions and electrical connection for the outdoor classroom, to allow heat and lighting to be added, making it more functional for all year round use. In addition, the presence of P and F members at events has been particularly welcome. Govemors are grateful for the continued support of both the OGA and P and F. Page 7
DHS EDUCATIONAL FOUNDATION LTD (A company Ilmlted by guarantee) TRugTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 strateglc report (contlnued) Flnanclal review a. Results for the year The Truste&s report a deficit for the year of £1.067.752 (2023: £1,047,208) which is as predicted, accounting for the increased costs of working due lo reduced numbers of pupils. The loss includes certain costs incurred in the review of curriculum and legal and professional costs incLJrred as part of the restructure. The decrease in funds before the write down of ftxed assets amounted to £1,067,752 (2023.. £1,047,208). As previously reported, on 20 December 2024 the assets of the School together with its rights of patents and trademarks were sold to Durham Education Limited. These financial statements have been prepared to take account of th& sale that took place after the balance sheet date and assets have been written down accordingly to reflect their net realisable value at that point before the sale. The total write-down was £5,670,363 which gave rise to an overall reduction in funds of £6,738,115. b. Golng concern Following the sale of the assets of the School and the transfer of its operation to Durham Education Limited the Trustees consider the charity to be a going concern. c. Reserves policy The notes to the financial statements dl8close the assets and liabilities of the School attributable to the various Funds by type, Unrestricted funds amount to £1.Om {2023'. £7.7m) of this, the freely available balance stands at £1.Om (2023 £0.1 m) as the majority of School assels were represented by property. The Trustees aim to form a new reservas policy, following the sale of the School which will be informed by the need to have funds to operate the charity for the medium term. d. Investrnent pollcy The Trustee5 aim to form a new investment policy, following the sale of the School which will be informed by the need to have funds to operate the charty for the medium term. e. Prlncipal risks and uncertalnt5es Given the significant change and reduction in risk. following the sale of the School, the Trustees aim to carry out a new complete risk assessment. Fundralslng The School does not have a Foundation Office and does not fundraise from members of the public. However there have been generous donations this year from the Parents and Friends and from the Old Gir15 Association. Page 8
DHS EDUCATIONAL FOUNDATION LTD (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Plans for future period5 The Trustees are committed to supporting the advancement of education at the DHS Educational Foundation Ltd with the provision of grants for bursaries and other forms of support to its pupils and former pupils. There is the intention to operate as co-educational from September 2025 for Pre-Prep and Prep. and our Senior Department from September 2026. Disclosure of information to auditors Insofar as the Trustees are aware.. there is no relevant audit information of which the charitable company's auditors are unaware. and that Trustees have taken all steps that they ought to have tsken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. The Trustees, report was approved by order of the Board of Trustees, as the company directors. on 7.,...?,C4-w......J•.r. ........ and signed on its behalf by: H Mcmillan (Trustee) Page 9
DHS EDUCATIONAL FOUNDATION LTD IA company limited by guarantee) STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2024 The Trustees (who are a150 the directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees, report and the financial statement5 in accordance with applicable Eaw and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under company law. the Trustees 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 its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consistently., observe the methods and principles of the Charities SORP (FRS102)', make judgements and accounting estimates that are reasonable and prudent., slate whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements., prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable companls transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by order of the members of the Board of Trustees and signed on its behalf by.. H Mcmillan (Trustee) Date: Page 10
DHS EDUCATIONAL FOUNDATION LTD (A company limlted by guarantee) INDEPENDENT AUDITORS, REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OF DHS EDUCATIONAL FOUNDATION LTD Opinion We have audited the financial statements of DHS Educational Foundation Ltd (the 'charitable cornpanrf) for the year ended 31 August 2024 which Comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law, 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) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP (FRS 102)), the Charities Act 2011 and the Companies Act 2006. In our opinion the financial statements: give a true and fair view of the state of the Charitable company's affairs as at 31 August 2024 and of tts incoming resources and application of resources, including its income and expenditure for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Charities SORP and Companies Act 2006. Basis for oplnlon We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the Charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 compantys ability to continue as a going concern for a period of at least iwelve months from when the f5nancial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees respect to going Goncern are described in the relevant sections of this report. Page 11
DHS EDUCATIONAL FOUNDATION LTD (A company Ilmited by guarantee) INDEPENDENT AUDITORS. REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OF DHS EDUCATIONAL FOUNDATION LTD (CONTINUED) Other infomiation The other information comprises the information included in the Annual report other than the financial statements and our Auditors, report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial ststements 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, Gonsider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in tho 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. Oplnlon on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Trustees, Report for the financial year for which the financial statements are prepared is consistenl with the financial statements. the Trustees, Report ha5 been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the Charitable company and its environment obtained in the course of the audit. we have not identtfied material misstatements in 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: adequate accounting records have not been kept. or retums adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of Trustees, remuneration specified by law are not made. or we have not received all the information and explanations we require for our audit. the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companie5, exemptions in preparing the Trustees, Report and from the requirement to prepare a Strategic Report. Responsibilities of trustees As explained more fully in the Statement of trustees, responsibilities, the Trustees (who are also the directors of the Charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misslatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Charitable companys abilty to continue as a going concern, disclosing. as applicable, matters related to going concern and using the going concern basis of 8¢¢ounting unless the Trustees either intend to liquidate the Charitable company or to cease operations, or have no realistic alternative but to do 80. Page 12
DHS EDUCATIONAL FOUNDATION LTD (A company limited by guarantse) INDEPENDENT AUDITORS, REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OF DHS EDUCATIONAL FOUNDATION LTD (CONTINUED) Auditors, responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assuran about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors, report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above. to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below- We undertake the following procedures to identify and respond to these risks of non-compliance: Understanding the key legal and regulatory frameworks that are applicable to the Charitable company. We communicated identified laws and regulations throughout the audit team and remained alert to any indications of noncompliance throughout the audit. We detemiined the most significant of these to be the regulations set out by the DfE and ISI. Other key laws and regulations included charity law. company law, safeguarding, Health & Safety, food hygiene regulations, GDPR and employment law. Enquiry of trustees and management as to policies and procedures to ensure compliance and any known instances of non-compliance. Review of board minutes and correspondence with regulators. Enquiry of trustees and management as to areas of the financial statements susceptible to fraud and how these risks are managed. Challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. These key areas of uncertainty are disclosed in the accounting policies. Identifying and testing unusual journal entries, with a particular focus on manual journal entries. Through these procedures. we did not become aware of actual or suspected non-compliance. We planned and performed our audit in accordance with auditing standards but owing to the inherent lirnitations of procedures required in these areas, there is an unavoidable risk that we may not have detected a material mi55tatement in the accounts. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. The risk of not detecling a material misstatement due to fraud is higher than the risk of not detecting one resulting from error. as fraud may involve concealment, collusion, forgery. misrepresentations. or 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. A further description of our responsibilities for the audit of the financial statements 15 located on the Financial Reporting Council's website at: www.frc.or .uklauditorsres onsibilities. This description forms part of our Auditors, report. Page 13
DHS EDUCATIONAL FOUNDATION LTD (A company Ilmlted by guarantee) INDEPENDENT AUDITORS, REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OF DHS EDUCATIONAL FOUNDATION LTD (CONTINUED Use of our report This report is made solely to the Charitable companvs members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable company's members those matters we are required to state to them in an Auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charitable company and its members. as a body. for our audit [k, for this report, or for the opinions we have formed. CFZ Christopher Bèaumont BA(Hons) BFP FCA DChA (Senior Statutory Audltor) for and on behalf of Clive Owen LLP Chartered Accountants and Statutory Auditors 140 Coniscliffe Road Darlington Co Durham DL3 7RT Date: f Page 14
DHS EDUCATIONAL FOUNDATION LTD (A company Ilmlted by guarantee) STATEMENT OF FINANCIAL ACTIVITIES {INCORPORATING INCOME AND EXPENDITURE ACCOUIU) FOR THE YEAR ENDED 31 AUGUST 2024 Unrestricted funds 2024 Total funds 2024 Total funds 2023 Note Income from: Donations and capital grants Investments Charitable activities other income 4,800 36,716 4.465,167 3.965 4,800 36.716 4,465.167 3.965 22.875 22,562 4,338.980 5.315 Total income 4,510,648 4,510,648 4,389,732 Expendlture on: Charitable activities 5,578,400 5,578,400 5.378,943 Total expendlture 5,578,400 5,578,400 5,378,943 Net expenditure before net losses on investments Net losses on investments (1.067.752) (1,067,752) (989,211) (57,99n Net movement in funds before other recognised galnsl{losses) (1,067,752> (1,067,752) (1,047,208) Other recognlsed galnsl(losses): Impairment losses on fixed assets (5,670,363) (5,870,363) Net movement In funds (6,738,115) (6,738,115) (1,047,208) Reconclllatlon of funds: Total funds brought forward Net movement in funds 7,749.776 7.749,776 8,796.984 {6,738,115) (6,738,115) (1.047,208) Total funds carrled forward 1.011.661 1,011,661 7,749.776 Page 15
DHS EDUCATIONAL FOUNDATION LTD IA company limited by guarantee) REGISTERED NUPJIBER: 06257502 BALANCE SHEET AS AT 31 AUGUST 2024 2024 2023 Note Fixed assets Tangible assets Investments 14 1,855,879 196,251 7,626,864 168.277 15 2,052.130 7.795,141 Current assets Debtors 16 17 295,100 372,570 475,000 180,491 Investments Cash at bank and in hand 649,410 944,510 1,028,061 Creditors: amounts falling due within one year 18 (1,496.750) (863,712) Net current (Ilabllltles) l assets (552,240) 164,349 Total assets less current liabilities 1,499,890 7,959,490 Creditors.. amounts falling due after more than one year 19 (488,229) (209,714) Total assets 1,011,661 7,749,776 Funds of the Charltable company Restricted funds Unrestricted income funds 20 Designated funds General fund5 20 20 167.634 844.027 2,838.588 4,911.188 Totsl unrestricted income funds 20 1.011,661 7,749,776 Total funds 1,011,661 7,749,776 The financial statements on pages 15 to 40 were approved by the Trustees, and authorised for issue on . and are signed on their behalf, by.. H Mcmillan (Chair) The notes on pages 18 to 40 fomi part of these financial statements. Page 16
DHS EDUCATIONAL FOUNDATION LTD (A company Ilmfted by guarantse) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2024 2024 2023 Note Cash flows from operating activities Net cash provided byl(used in) operating activities 22 52,981 (803.954) Cash flows from investing activities 24 446,542 742.081 Cash flows from financing activities 23 (30,604) (55,843) Change in cash and cash equivalents in the year 468,919 (117,716) Cash and cash equivalents at the beginning of the year 180,491 298,207 Cash and cash equivalents at the end of the year 25, 26 649,410 180,491 The notes on pages 18 to 40 form part of these financial statements Page 17
DHS EDUCATIONAL FOUNDATION LTD (A company Ilmited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies Durham High School for Girls is a private company limited by guarantee incorporated in England and Wales. The registered office and Trustees are as listed on page 1. A summary of the principal accounting policies adopted (which have been applied consistently, except where noted). judgements and key sources of estimation uncertainty. is set out below. 1.1 Basis of preparation of financial ststements The financial statements have been prepared in accordance with the Charities SORP (FRS 102) Accounting and Reporting by Charities= Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) and the Companies Act 2006. DHS Educational Foundation Ltd meets the definition of a public benefit entity under FRS 102. 1.2 Going concern The Trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the abilily of the Charitable company to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Charitable company has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Charttable comp8ny's abilty to continue as a going concern. They continue to adopt the going concern basis of accounting in preparing the financial statements. On 20 December 2024. the Charity transferred its business to Durham Education Limited, a company registered in England and Wales. The registered address is 24 King William Street, London, England, EC4R 9AT. Page 18
DHS EDUCATIONAL FOUNDATION LTD IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 AUGUST 2024 Accountlng policies {continued) 1.3 Income Fee income: Fees receivable are accounted for in the period in which the service is provided and are slated after deducting allowances. scholarships and other rernissions granted by the School. but include contributions received from Restricted Funds for schotarships and bursaries. other income: All other income is recognised once the Charitable company ha8 entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Discounts from fees are given as follows: staff Discount: A staff discount of 113 of fees to be available to all full time staff and pro-rata for part-time staff. Family Discount.. A famity discount of 114 is given on the fees of the eldest child from a household where there are three daughters attending the School. All incoming resources are recognised when the Charity has entitlement to the funds, the receipt is probable and the amount can be measured reliably. Donations Donations are recognised on a receivable basis (where there are no performance-related conditions) where the receipt is probable and the amount can be reliably measured. 1A Expendlture Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs. including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directty to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the assefs use. Charitable activities These are costs incurred on the Charitable companvs educational operations, including support costs and costs relating to the governance of the Charitable company apportioned to charitable activities. All resources expended are inclusive of irrecoverable VAT. Page 19
DHS EDUCATIONAL FOUNDATION LTD IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting poliGies {continued) .5 Grants and Bursaries Grants and bursaries from restricted funds are included as expenditure in the period for which the award is given. Bursaries and allowances from unrestricted funds towards School fees are treated as a reduction in those fees. Government grants - revenue based grants are credited to the Statement of Financial Activities when receivable. 1.6 Taxation The Charitable company is exempt from corporation tax on its charitable activities. From 1 January 2025, the income of the Charitable company is subject to VAT. 1.7 Tangible flxed assets Assets costing £300 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impaimient. Depreciation is provided on all tangible fixed assets other than freehold land and assets under construction, at rates calculated to write off the cost of eaoh asset on a straight-line basis over its expected useful life, as follows.. The estimated useful lives are as follows: Freehold Land Freehold Building Office Equipment Academic Equipment No depreciation 100 years 3-10years 3- 10 years A review for impairment of a fixed asset is carried out rf events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities. 1.8 Investments Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised. are combined and presented as 'Gainsl(Losses) on investments, in the Statement of Financial Activities. Current asset investments relate to fixed asset investments which at the BalanGe Sheet date had been agreed to be converted into cash. The valuation method is in line with the fixed asset invèstment policy. 1.9 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Page 20
DHS EDUCATIONAL FOUNDATION LTD IA company limlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accountlng policies (continued) 1.10 Cash at bank and in hand Cash at bank and in hand includes cash and short-temi highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 1.11 Liabilities Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amourrt of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charitable company anticipates it wll pay to settle the debt or the amount it has received as advanced payments for the goods or seniices it must provide. 1.12 Provisions Provisions are recognised when the Charitable company has an obligation at the reporting date as a result of a past event which it is probable will result in the transfer of economic benefits and the obligation can be estimated reliably. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material. the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar chsrges. 1.13 Financial instruments The Charitable company only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the Charitable company and their measurement bases are as follows: Financial assets trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost as detailed in note 16. Prepayments are not financial instrumenls. Cash at bank is classified as a basic financial instrument and is measured at face value. Financial liabilities trade creditors. accruals and other creditors are financial instruments, and are measured at amortised cost as delailed in notes 18 and 19. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument. 1.14 Finance leases and hire purchase Assets obtained under hire purchase ¢ontraGts and finance leases are capitalised as tangible fed assets. Assets acquired by finance lease are depreciated over the shorter of the lease temi and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where Substantial all of the benefits and risks of ownership are assumed by the Charitable company. Obligations under such agreements are included in creditors, net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the statement of financial activities so as to produce a constsnt periodic rate of charge on the net obligation outstanding in each period. Page 21
DHS EDUCATIONAL FOUNDATION LTD (A company Ilmited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies (continued) 1.15 Operating leases Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term. 1.16 Pensions Retirement benefits to teaching employees of the Charitable company are provided by the Teachers, Pension Scheme ( TPS"). This is a defined benefit scheme. The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees. working lives with the Charitable company in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The conlributions are determined by the Government Actuary on the basis of quadrennial valuations using a prospective unit credit method. TPS is an unfunded multi-employer scheme with no underlying assets to assign been employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which they relate. Academic st8ff are offered retirement benefits by joining the Durham High School Pension Scheme. a money purchase scheme, the provider of which is Clerical Medical and General Life Assurance Society. This scheme is also available to staff who are not eligble to join the Teachers, Pension Scheme. The rate of School contribution during the year was 10.50/0. The Charitable company exited from the Teachers, Pension Scheme on 31 August 2024. The Charitable company now operates a defined contribution pension scheme with Royal London Group for teaching Staff. 1.17 Fund accountlng Unrestricted income funds represent those resources which may be used towards meeting any of the charitable objects of the Charttable company at the discretion of the Trustees. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income, gains and105ses are allocated to the appropriate fund. Page 22
DHS EDUCATIONAL FOUNDATION LTD (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Critical accounting estimates and areas of judgernent Estimates and judgements are continually evaluated and are based on historical experience and other factors. including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions: Debtor provision There are Iwo provisions included within the financial statements. full provision and partial provision. The fu51 provision provides for 100% of balances that are not considered to be recoverable. The parlial provision provides for balances that are doubfful debts. The tolal bad debt provision within the financial statements is £100,160. Impairment - Post year end, assets were transferred to Durham Education Limited and as a result. there is an impairment loss of £5.670,363 to the Statement of Financial Activities (see note 14). Page 23
DHS EDUCATIONAL FOUNDATION LTD (A company limited by guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Income from donations and capital grants Unrestricted funds 2024 Total funds 2024 Total funds 2023 Donations 4,800 4,800 22,875 Total 2023 22,875 22,875 Income from charitable activities Unrestricted funds 2024 Total funds 2024 Total funds 2023 Tuition fees Grants, Award8 and Prizes Lunches Music and Performing Arts recharges Travel fund recharges 4,629,230 4,629,230 4,466,466 (696,261) {696,261) {609,086) 228,877 228,877 221,477 238,060 238,060 204,457 65,261 65,261 55,666 4,465.167 4,465,167 4,338.980 Total 2023 4,338,980 4,338,980 Investment income Unrestricted funds 2024 Total funds 2024 Tota funds 2023 Interest receivable Dividend income 1,098 21,464 36,716 36.716 36,716 36.716 22,562 Total 2023 22,562 22,562 Page 24
DHS EDUCATIONAL FOUNDATION LTD (A company Ilmited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Other incoming resources Unrestricted funds 2024 Totsl funds 2024 Total funds 2023 Registration fees 3,965 3.965 5.315 Total 2023 5,315 5,315 Expenditure Staff Costs 2024 other 2024 Total 2024 Total 2023 School's educational operations.. Direct costs Allocated support costs 2,865,731 937,231 1,143,044 632,394 4,008,775 1,569,625 3.947.626 1,431,317 3,802,962 1,775,438 5,578,400 5,378,943 Total 2023 3.863,043 1,515.900 5,378,943 Analysis of expendlture by activitles Actmties undertaken directly 2024 Support costs 2024 Total funds 2024 Total funds 2023 School's educational operations 4,008,775 1,569,625 5,578,400 5,378,943 Total 2023 3,947,626 1.431.317 5,378,943 Page 25
DHS EDUCATIONAL FOUNDATION LTD (A company Ilmited by guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Analysis of expenditure by activities (continued) Analysis of direct costs School's educational operations 2024 Total funds 2024 Total funds 2023 Staff costs Depreciation and amortisation Other costs 2,865,731 165,795 977,249 2,865,731 165,795 977,249 2,888,704 81,678 977.244 4,008,775 4,008,775 3,947,626 Total 2023 3,947,626 3,947,628 Analysis of support costs School's educational operations 2024 Total funds 2024 Total funds 2023 staff costs Finance costs Other administrative costs Professional fees 937,231 34,414 431,875 166,105 937,231 34,414 431,875 186,105 974.339 4,940 327,745 124.293 1,569,625 1,569,625 1,431,317 Total 2023 1,431.317 1,431,317 Net expenditure Net expenditure for the year includes- 2024 2023 Operating lease rentals Depreciation of tangible fixed assets 30,564 165.795 32,776 81.678 Page 26
DHS EDUCATIONAL FOUNDATION LTD IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 10. Auditors, remuneration 2024 2023 Fees payable to the Charitable company's auditor for the audit of the Charitable company's annual accounts Fees payable to the Charttable company's auditor in respect of: All non-audit seniices not included above 14.900 13.950 650 575 11. Staff a. Staff costs and employee benefits Staff costs during the year were as follows.. 2024 2023 Wages and salaries Social security costs Pension costs 2,961,346 280.227 561,389 3,015.573 314,739 532.731 3.802,962 3,863,043 During the year redundancy costs totalling £48,440 were incurred (2023.. £nil). b. Staff numbers The average number of persons employed by the Charitable company during the year was as follows: 2024 No. 2023 No. Teachers Administration Technicians Cleaning and Domestic Maintenance Mu51G Peris Teaching Support 48 12 53 16 14 13 110 106 Page 27
DHS EDUCATIONAL FOUNDATION LTD (A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 11. Staff (continued) c. Hlgher paid staff The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was.. 2024 2023 In the band £60,001- £70,000 In the band £70,001- £80,000 In the band £80,001- £90,000 In the band £100,001- £110,000 d. Key management personnel The key management personnel of the Charitable company comprise the Trustees and the senior management team as listed on page 1. The total amount of employee benefits (including employer pension contributions and employer national insurance contributions) received by key management personnel for their services to the Charitable company was £568,465 (2023 - £371,349). 12. Trustees, remuneration and expenses During the year, no Trustees received any remuneration or other benefits (2023 - £NIL). During the year ended 31 August 2024. expenses totalling £NIL were reimbursed or paid directly to Trustees (2023 - £NIL to Trustees). Page 28
DHS EDUCATIONAL FOUNDATION LTD (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 13. Intangible assets SOfare Licences Cost At 1 September 2023 35.708 At 31 August 2024 35,708 Amortlsatlon At 1 September 2023 35,708 At 31 August 2024 35,708 Net book value At 31 August 2024 At 31 August 2023 Page 29
DHS EDUCATIONAL FOUNDATION LTD (A company limtted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 14. Tangible fixed assets Furniture Comput- and Assets Freehold equip- equipme- Academic under propety ment nt equipment construct Totat Cost or valuatlon At 1 September 2023 Additions Disposals 7,727,699 281,123 177,877 878,275 40.237 14,954 (75.713) (46,711) {719,514) 9.064,974 65,174 1841,938) 9,983 At 31 August 2024 7,727,699 205,410 171.403 173,715 9,983 8,288,210 Depreclatlon and provlslons At 1 September 2023 Charge for the year On disposals Impairment 361,847 186,052 86,500 803,711 80,197 23,362 54,635 7,602 (75,713) (46,711) (719.514) 5,465.871 64,916 63,241 67,184 1,438,110 165,796 {841,938) 9,151 5,670,363 At 31 August 2024 5,907,915 198,617 157,665 158,983 9,151 6.432,331 Nat book value At 31 Augusl 2024 1,819.784 6,793 13,738 14,732 832 1,855,879 At 31 August 2023 7,365,852 95,071 91,377 74,564 7,626,864 Within tangible fixed assets are assets held under hire purchase with net book values of £2,970 (2023: £17,134). Page 30
DHS EDUCATIONAL FOUNDATION LTD IA company limited by guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 16. Fixed asset investments Listed investments Cost or valuation At 1 September 2023 Additions Disposals Revaluations 168.277 200.000 (200,000) 27,974 At 31 August 2024 196,251 Net book value At 31 August 2024 196,251 At 31 August 2023 168,277 Investments comprise Investment Fund Income Shares. The fair value of the investments has been arrived st on the basis of a valuation carried out at 31 August 2024 by CCL4 Investment Management Limited, who are not connected with the charity. 6. Debtors 2024 2023 Due within one year Trade debtors other debtors Prepayment5 and acGrued income 170,712 14,576 109,812 258.604 21,125 92,841 295,100 372.570 17. Current asset investments 2024 2023 Listed investments 475.000 Page 31
DHS EDUCATIONAL FOUNDATION LTD (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 18. Creditors: Amounts falling due within one year 2024 2023 Bank loans Trade creditors 53,234 150,034 59,935 9,825 1,092,970 130,752 53,234 146,369 71,936 6,854 420.057 165,262 Other taxation and social security Obligations under finance lease and hire purchase contracts Other creditors Accruals and deferred income 1,496,750 863.712 2024 2023 Deferred incom8 at 1 September 2023 Resources deferred during the year Amounts released from previous periods 14,326 83,667 (14,326) 2,935 14,326 (2,935) 83,6S7 14.326 Deferred income at the balance sheet date is in relation to monies received for school fees and courses for periods from 1 September 2024. Page 32
DHS EDUCATIONAL FOUNDATION LTD IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 19. Credltors: Amounts falllng due after more than one year 2024 2023 Bank108ns Net obligations under finance lease and hire purchase contracts other creditors 135,976 15,163 337,090 174,434 10,280 25,000 488,229 209,714 Included within the above are amounts falling due as follows: 2024 2023 Between one and two years Bank loans 53,234 53,234 Between two and five year8 Bank loans 82,742 121,200 The bank borrowings are sacured by means of a charge against the property. The bank loan is repayable by monthly in8t8lments and attract interest at 1.90A over HSBC'S sterling base rate. Hire purchase obligatlons are $o¢ured agalnst the asset8 to whlch they relate. Page 33
DHS EDUCATIONAL FOUNDATION LTD (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 20. Statement of funds Balan at 1 September 2023 Balance at 31 August 2024 Gain51 (Losses) Income Expenditure Designated funds Governors, discretionary fund Extra-ordinary repair fund Revaluation reserve - prop8ty Revaluation reserve - investments 75.385 92,249 2.052.677 75,385 92,249 (2.052,677) 618,277 (618,277) 2,838.588 (2,670,954) 167,634 General funds General fund 4.911,188 4.510,648 (2,907,446) {5,670,363) 844,027 Total Unrestrlcted funds 7,749,776 4.510,648 {5,578.400) 15,670,363) 1,011,661 The specific purposes for which the funds are to be applied are as follows.. The Governors, discretionary fund is to be used at the discretion of the Board for bursaries or other projects. The Extra-ordinary repair fund is a reserve to allocate funds to the repair of the School. The Revaluation reserve - property was formed by the revaluation of some of the Charity's Buildings. The Revaluation reserve - investments was formed by the revaluation of the investments held. The General fund represent those funds which are unrestricted and not designated for other purposes. During the prior year appropriate expenditure was allocated to restricted funds to reduce all balances to £Nil. Page 34
DHS EDUCATIONAL FOUNDATION LTD (A company limitèd by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 20. Statement of funds (continued) Comparative infarmation in respect of the preceding year is as follows: Balance at 1 August 2022 Balance at 31 August 2023 Transfers inlout Gainsl (Losses) Income Expenditure Designated funds Governors, discretionary fund Extra-ordinary repair fund Revaluation reserve- property Revaluation reseNe - investments 75,385 75.385 92.249 92,249 2,052,677 2,052,677 942,105 (265,831) (57,997) 618.277 3.182,416 (265,831) (57.997) 2,838.588 General funds General fund 5.585.622 4,389,732 (5,329.997) 265.831 4,911,188 Total Unrestricted funds 8,748,038 4,389,732 (5,329,997) (57.997) 7.749,776 Page 35
DHS EDUCATIONAL FOUNDATION LTD (A company limited by guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 20. Statement of funds (continued) Balance at 1 August 2022 Balance at 31 August 2023 Transfers inlout Gainsl (Losses) Income Expenditure Restrlcted funds Scholarship funds Travel account Charities account Partnerships - Science Sparks Duke of Edinburgh Award 5,127 28,243 (5,127) (28,243) 929 (929) 14,107 (14,107) 540 (540) 48,946 (48,946) Total fundg 8.796,984 4,389,732 <5,378,943) <57,997) 7,749,776 21. Analysls of not a$s•t$ batwe•n funds Analysis of net assets between funds - current perfod Unrestricted funds 2024 Total funds 2024 Tangible fixed assets Fixed asset investments Current assets Creditors due within one year Creditors due in more than one year 1,855,879 1,855,879 196,251 196,251 944,510 944,510 (1,496,750) (1,496,750) 1488,229) (488,229) Total 1,011,661 1,011,661 Page 36
DHS EDUCATIONAL FOUNDATION LTD (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 21. Analysis of net assets between funds (contlnued) Analysls of net assets between funds - prlor period Unrestricted funds 2023 Total funds 2023 Tangible fixed asset8 Fixed asset investments Current assets Creditors due within one year Creditor8 due in more than one year 7,626,864 7,626,864 168,277 168,277 1,028,061 1,028,061 (863,712) (863,712) (209.714) (209,714) Total 7,749,776 7,749,778 22. Reconciliation of net expenditure to net cash flow from operatlng actlvltles 2024 2023 Net expenditure for the period (as per Statement of fi'nancial activlties) (1,067,752> (1,047,208) Adjustments for: Depreciation Dividends Decrease in debtors Increase in creditors Fair value gains and losses on investments 165,798 (36,71e) 77,470 942,157 (27,974) 81,878 (22,562) 84,653 41,488 57,997 Net cash provlded byl{used In) operatlng activities 52,981 (803,954) Cash flows from financing activlties 2024 2023 Repayments of borrowing New finance leases (38,458) 7,854 (72,843) 17,000 Net cash used in financing actlvities (30,604) {55,843) Page 37
DHS EDUCATIONAL FOUNDATION LTD (A Company limlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 24. Cash flows from Investing actlvlties 2024 2023 Dividends, interest and rents from investments Purchase of tangible fixed assets Proceeds from the sale of investrnents 36,718 22.562 (65,174) {130,481) 475,000 850,000 Net cash provided by Investlng activities 446,542 742,081 26. Analysis of cash and cash equlvalents 2024 2023 Cash in hand 649,410 180,491 Total cash and cash equlvalents 649,410 180,491 26. Analysls of changés In net debt At1 September 2023 Cash flow8 Other non- cash At 31 August changes 2024 Cash at bank and in hand Debt due within 1 year Debt due after 1 year Finance leases Liquid investments 180,491 {53,234) (174,434) <17,134) 475,000 468.919 849,410 (53,234) (135,978) (24.988) 38.458 (7,854) (475,000) 410,689 499.523 (475,000) 435,212 Page 38
DHS EDUCATIOl+lAL FOUNDATION LTD (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 27. Pension commitments The charity operates a defined contribution pension scheme for all qualifying employees not in the Teachers Pension Scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The charge to profit or loss in respect of defined contribution scheme was £60,321 {2023 - £47.493). Teachers, Pension Scheme The Teachers, Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, govemed by the Teachers, Pension Scheme Regulations 2014. Membership is automatic for full-time teachers in schools. All teachers have the option to opt-out of the TPS following enrolment. The TPS is an unfunded scheme to which both the member and employer makes contributions. as percentage of salary - these contributions are credited to the Exchequer. Retirement 8nd other pension benefits are paid by public funds provided by Parliament. Valuation of the Teachers. Penslon Scheme The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuation8 and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to ensure scheme costs are recognised and managed appropriately and the review specifies the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department for Education on 27 October 2023, with the SCAPE rate, set by HMT, applying a notional investment retum based on 1.70/0 abov8 the rate of CPI. The key elements of the valuation outcome are: Employer contribution rates set at 28.680/0 of pensionable pay {including a 0.08 /¢ administration levy). This is an increase of 50h in employer contributions and the cost control. Tolal scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £262,000 million and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £222,200 million, giving a notional past service deficit of £39,800 million. The next valuation results is due to be implemented from 1 April 2028. The employer's pension costs paid to TPS in the year amounted to £501,068 (2023 £485.238), these being up to the point the Charity exited the scheme on 31 August 2024. A copy of the valuation report and supporting documentation is on the Teachers, Pension website. Under the definitions set out in FRS 102. the TPS is an unfunded multi employer pension scheme. The Charity has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The Charity has set out above the information available on the scheme. Page 39
DHS EDUCATIONAL FOUNDATION LTD (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 28. Operating lease commitments At 31 August 2024 the Charitable company had commitmerrts to make future minimum lease payments under non-cancellable operating leases as follows- 2024 2023 Not later than 1 year Later than 1 year and not later than 5 years 30,255 21,572 25.151 41.017 51,827 66,168 29. Related party transactlons No related parties took place in the period of account (2023- £nil). 30. Post balance sheet events On 20 December 2024, the Charty transferred its business to Durham Education Limited, a company registered in England and Wales. The registered address is 24 King William Street, London. England, EC4R 9AT. Page 40