REGISTERED COMPANY NUMBER: 06611453 (England and Wales) REGISTERED CHARITY NUMBER: 1124463 REPORT OF THE GOVERNORS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 FOR NEWCASTLE-UNDER-LYME SCHOOL Deans Chartered Accountants Statutory Auditor Gibson House Hurricane Court Hurricane Close Stafford sn6 IGZ
NEWCASTLE-UNDER-LYME SCHOOL CONTENTS OF THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2024 Report of the Governors Report of the Independent Auditors Statement of Financial Activities Balance Sheet Cash Flow Statement Notes to the Financial Statements 2-13 14-18 19 20 21 22-34 Page I
NEWCASTLE-UNDER-LYME SCHOOL GOVERNORS, OFFICERS AND ADVISERS YEAR ENDED 31 AUGUST 2024 GOVERNORS, DIRECTORS AND CHARITY TRUSTEES The Governors of Newcastle-under-Lyme 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 as Covernors during the year and subsequently are detailed below. Ernployment and Compliance Committee Education Committee Business Comniittce Ms L Clews Mr D R Holland MA Mrs M Jones BSc(Hons), PGCE (to 26 Se tember 2024) Mr A J McGowan Mrs K A Miller BSC, ACA (Vice-chairl Mr G E Nevt LL.B Miss A J Steele BA(Honsl, PGCE (to 26 Se Mr D P Wallbank BA {Chair} tember 2024) During the year the activities of the Governing Body were carried out through three committees. The membership of these committees is shown above for each Governor. OFFICERS Miss N Crouch Clerk to the Governors OFFICERS (key management personnel currenlly Mr M Getty and throughout the year) Mr J Baines Mr I Bousfield Mr l DickseL Head Director of Finart and Operations Assistant Head- Pastoral and Co£urricular Deputy HL)ad- Acadernic Assistant Head -Teaching and Learning Director of Sixth Forni Deputy Head- Pastoral Head of Prcp School Dr K Mair Mr A Poole Mrs J SiTnnis Mrs K Thomson PRINCIPAL ADDRESS Mount Pleasant, Newcastle-under-Lyme, Staffordshire, ST5 IDB INVESTMENT MANAGERS Investec Wealth & Investment Ltd, 30 Gresham StreeL LondOEC2v 7QN AUDITORS Deans Chartered Accountants, Gibson House. Hurricane Court, Hurricane Close, Stafford, Staffordshire, ST16 IGZ BANKERS Natwest Bank PLC, 75 High Street, Newcastle-under-Lyme. ST5 IPP Page 2
NEWCASTLE-UNDER-LYME SCHOOL ANNUAL REPORT OF THE GOVERNORS YEAR ENDED 31 AUGUST 2024 The members of the Newcastle-under-Lyme School Goveming Body present their Annual Report for the year ended 31 August 2024 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 Newcastle-under-Lyme School is eonstituted as a company limited by guarantee registered in England, No. 06611453, and is registered with the Charity Commission under Charity No. 1124463, and came into being on 01 July 2008 taking over all assets and liabilities from the fornier charity Newcastle-under-Lyme Endowed Schools Fund Registered Charity No. 52891. The School educates boys and girls from ages 3 to 18 and consists of a nurseryi preparatory school, senior school and sixth form, covered by one Goveming Body. Details of the members of the Governing Body, together with the School's officers and principal advisors are given on page 2. ACHIEVEMENTS AND PERFORMANCE Despite challenging economic times Newcastle-under-Lyme School is extremely proud of its high level of academic attainment, as well as its co-curricular programme in whith most pupils participate, GCE "Advanced Level" performance 2024 Students at Newcastle-under-Lyme School were awarded another strong set of A Level results. 72¥0 of entries have been awarded A* to B grades. GCSE performance 2024 Students at Newcastle-under-Lyme School were also awarded a strong set of GCSE results this year with 58Yo grades 7 to 9 pass rate. Fundraising perfonnance. Grants and donations totalled £230 (2022-23: £235) Investment perforniance. At the end of the year the net value of the School's investments in securities totalled £2,690,057 (2022-23: £2,501,163), an increase of 4 %. The investment strategy aims for the portfolio to look to produce dividend income of £45k to £50K per annum. tn 2023-24 dividend income was £67,072 (2022-23: £59,362). Page 3
NEWCASTLE-UNDER-LYME SCHOOL ANNUAL REPORT OF THE GOVERNORS (CONTINUED) YEAR ENDED 31 AUGUST 2024 FINANCIAL REVIEW Results for the year The School's net movement in funds for the year amounted to £7,467 (2022-23: £472,981). The net incoming funds from operations for the year were negative £201,253 (2022-23: positive £554,308) as shown in the Statement of Financial Activities. Net incoming funds from operations for the prior year 2022-23 included further grant income toward construction of a new sports hall £421,348. Reserves Level and Policy and Financial ViabiIity The Sthool's reserves policy is to maintain sufficient unrestricted income reserves to enable it to meet its short terni financial obligations in the event of an unexpected revenue shortfall and to rely on the readily realisable securities investtnents as adequate cover for the Sthool's longer term capital expenditure commitments and any longer terni financ5al obligations. The Sdiool's total reserves of £18,705,852 (2022-23: £18,698,385) at the year-end included £3,116,685 (2022-23: £3,206,864) unspent restricted income, which does not affect the School's financial viability. Future Plan8 The School intends to continue improving the current estate. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing documents The School is governed by its Memorandum of Assoctation and Articles of Association last amended on 08 May 2019 which corrected a few minor points from the previous veTsion dated 05 December 2011. The Governors approved a revised Scheme of Management and Delegation on 08 May 2019, the main changes being the creation of three new Committees (Education Committee, Remuneration Committee and, Governance and Nominations Committee). Matters that had previously been delegated by the Governors to the previous post of Bursar, are now delegated directly to the Head. The Scheme of Delegation also created a new post of Director of Finance and Operationsl(Bursar) which was to be line managed by the Head rather than the Governors, a post whith was filled on 19 April 2021. Page 4
NEWCASTLE-UNDER-LYME SCHOOL ANNUAL REPORT OF THE GOVERNORS (CONTINUED) YEAR ENDED 31 AUGUST 2024 Goveming body The Governors are the company directors and charity trustees of the Charity, and have control of the Charity and its property and funds. The board shall comprise no fewer than eight and no more than twelve Governors and each Governor will hold a terni of office of five years. Recruitment and training of Governors Governors constantly review the balance of professional experience and strengths within the Governing Body, inviting new members to join to make up any perceived shortfalls. All prospective appointees are agreed by the Full Governing Body prior to appointment and on appointment undergo Induction Training which includes briefing by the Chair of Governors, Headmaster, Director of Finance and Operations (Bursar), and Clerk to the Governors. Additional training is provided where necessary as part of the Governing Body's continued professional development. Organisational management The members of the Governing Bodyi as the charity's trustees, are legally responsible for the overall management and control of the School. They meet at least four times a year. The work of implementing their policies is carried out by three Committees. The Education Committee acts in a monitoring role to review the agreed academic. curricular and pastoral provision in the School. The Business Committee oversees all financial aspects of the School The Employment and Compliance Committee acts in an advisory role reviewing all systems and methods of control including risk analysis and risk management, and ensuring compliance with health and safety requirements. In addition, the Scheme of Manasement and Delesation has created two further committees which meet as required. The Remuneration Committee which is responsible for overseeing the remuneration of the Head and Senior Management Team, and the Governance and Nominations Committee responsible for integrating and co-ordinating all aspects of corporate governance, legal and regulatory compliance and risk management to improve the quality of the School's governance arrangements for the purpose of enhancing overaEI performance, and to conduct a regular skills audit of the Governing Body, identifying current or potential future gaps, seeking suitable applicants to fill those gaps and coordinating the appointment process. Page 5
NEWCASTLE-UNDER-LYME SCHOOL ANNUAL REPORT OF THE GOVERNORS (CONTINUED) YEAR ENDED 31 AUGUST 2024 The Head has overall responsibility for the general management and running of the Sdiool and employment, discipline and dismissal of the staff subject always to the terms of the Scheme of Management and Delegation adopted by the Governors by a special resolution dated 08 May 2019. The remuneration of key management personnel is set by the Board, with the policy objective of providing appropriate incentives to encourage enhanced performance and of rewarding them fairly and responsibly for their individual contributions to the School's success. The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to comparisons with other independent schools to ensure that the School remains sensitive to the broader issues of pay and employment conditions elsewhere. Delivery of the School's charitable vision and purpose is primarily dependent on our key management personal and staff costs are the largest single element of our charitable expenditure. Group structure and relationships Castilian Enterprises Limited is a wholly owned non-charitable subsidiary of Newcastle-under-Lyme School which has remained dormant since incorporation on 10 November 2015. It is intended that Castilian Enterprises Limited will undertake future trading activities, and donate its annual profits to the School. Employment policy The School is an equal opportunities employer. Full and fair consideration is given to job applications from disabled persons and due consideration is given to their training and employment needs. Consultation with employees, or their representatives, has continued at all levels with the aim of taking the views of employees into account when decisions are made that are likely to affect their interests. Employees are made aware of the financial and economic perforniance of the School. Communication with employees continues through normal management channels in a variety of forms and whenever appropriate through exceptional channels to apprise staff of current issues. Investment policy and objective The Governors, investment strategy is for a portfolio made up of reserves that should be invested to grow at least in line with inflation. The portfolio is to target a balanced return over the medium to long term within a medium risk strategy. In order to achieve this, the portfolio is to be invested in real assets (equities and property) with bonds and alternatives to dampen down volatility. The portfolio will be invested directly in bonds and UK equities except for speaalist areas whilst all other asset classes will be invested via collectives. The investment strategy and policy is monitored by the Business Committee, as is investment performance, which is reported below, within the Strategic Report, and is due to be reviewed. Page 6
NEWCASTLE-UNDER-LYME SCHOOL ANNUAL REPORT OF THE GOVERNORS (CONTINUED) YEAR ENDED 31 AUGUST 2024 OBNECTS, AIMS, OBJECTIVES AND ACTIVITIES Charitable Objects The School's objects, as set out in the Memorandum of Association, are to advance education and training by the provision and conduct in or near Newcastle-under-Lyme of a School for boys andlor girls and other associated activities for the benefit of the community. In furtherance of these Objects for the public benefit the School has established and administers a programme of bursaries and other awards. The Board is very mindful of the long-standing need to provide public benefit and of the requirements of the Charities Act 2011. To this end the Board has monitored closely the guidance on public benefit produced by the Charity Commission tosether with supplemental guidance on fee charging. Our Mission: From its establishment in 1602, Newcastle Under Lyme School has acquired a reputation as one of the leading schools in the North of England. Today, our School's aims reflert our immense history, and the traditions and values that have been evident throushout this time. NULS aims to provide an excellent education to children in our region, embracing our communitys diversity and facilitating access to children from a wide range of economic backgrounds. More specificallyi we seek to... Our Aims: l. Provide an excellent education to enable our pupils to explore their own individual academÉ potential. 2. Create a vibrant and ridi extracurricular environment, so our pupils are challenged and motivated with new opportunities so they may explore their own unique range of broader talents and interests; 3. Develop in our pupils, the skills and qualities they require to successfully advance with their academic and professional careers beyond NULS; 4. Foster in our pupils, the values and sense of purpose that will enable them to be positive and successful contributors to their communities and broader society. 5. Provide an outstanding campus, facilities and resources, to enable our pupils and staff to have the opportunities to enjoy and provide a first class, holistic education," Our Values: Embodying our aims, our four key values we hope to develop in our pupils as they advance through School. Page 7
NEWCASTLE-UNDER-LYME SCHOOL ANNUAL REPORT OF THE GOVERNORS (CONTINUED) YEAR ENDED 31 AUGUST 2024 Aspiration- we want to encourage in our pupils an aspirational attitude in the broadest sense, where they are encouraged to explore their potential in academic and all-round terms. Endeavour- we wish to encourage in our pupils a sense of commitment and an appreciation that qualities such as resilience and determination are significant and rewarding assets both individually and collectively. Respect- we want our pupils to view themselves as a community, where respect for one another, and an appreciation of the wonder1 diversity in our community. is embedded within our school. We also want our pupils to respect those beyond our school, in our local community and the broader global environment. Kindness - we hope to encourage in our pupils an underpinning sense of kindness to one another and to all of those in our community, and to those beyond. We feel this quality is key to creating a happy school, where pupils feel they can thrive, individually and together. Principal artivity The School's principal activity, as specified in the Memorandum of Association, is to advance education and training, and, in this, the School has again had a successful year. The average number of pupils was: 2023-24 616 233 849 2022-23 2021-22 2020-21 2019-20 2018-19 597 579 579 551 566 237 221 208 221 239 834 800 787 T72 805 Senior School Pre arator School Total The encouraging recruitment trend has continued into 2024-25. Public Benefit Newcastle-under-Lyme School remains committed to the aim of providing public benefit in accordance with its founding principles. Charity law has recently introduced a requirement to demonstrate that public benefit for charitable purposes where it has hitherto been presumed in the absence of evidence to contrary. This calls in turn for more detailed disclosures concerning our aim. The Governing Body takes the view that bursaries awarded to those who would not otherwise be able to afford the School's fees are important as a measurable means of providing public benefit, but not to the exclusion of the much wider benefit that the School provides within the community. Those pupils who attend our School and who receive financial support contribute to the School community in many ways, and so the benefit is not purely to these pupils but to the whole School, and more often than not to the wider community as well. Page 8
NEWCASTLE-UNDER-LYME SCHOOL ANNUAL REPORT OF THE GOVERNORS ICONTINUED) YEAR ENDED 31 AUGUST 2024 This year the School awarded bursaries of £454,865 to 59 pupils (2022-23: £402,278 to 54 pupils) through a programme of means tested awards awarded on a sliding scale according to financial circumstances and short termly hardship awards. In addition to bursaries, the School has engaged in many other activities that provide benefit to the public with the School's objectives. PUBLIC BENEFIT Bringing pupils from state schooIs and our independent schools together. As a School, we value the opportunities our pupils have to work with, to interact with and to compete against pupils from other schools. Senior School Sport: Our Senior School Sports Department hosted a range of fixtures with local state schools as well as participating in local and regional competitions acTOSS a wide range of sports. Debating: We took part in a range of competitions in which our pupils competed against pupils from local schools. Our Prep School facilities were used by Hassell Street primary school for Cross Country training. Our classrooms are used by LAMDA (London Academy of Music and Dramatic Art) as an examination space for students in the local area. Sharing our expertise and perspectives: Our Headmaster was, until recently, a trustee of the Alpha academy chain. We have worked on various partnership activities with Alpha Academy including contributing to leadership and governance, and inputting time to the forniulation of new free school development within the Academy Trust. English is a project where we have liaised with their English team on curriculum and delivery to try to promote their top end perfonnance at GCSE and Value added. Our Headmaster is now a trustee at Creative Learning Partnership Trust, and assists the MAT voluntarily with matters from education strategy to HR and financial control, whilst other members of OUT Staff act as governors and trustees at local schools. Pre-med: Students from local state schools were invited to attend our free annual Pre Med event which brought together guest speakers in Mediane to speak to student5 who were interested in pursuing Medicine as a career. Examining: A number of staff work as examiners for GCSE and A-level workins with colleagues from all sectors and sharing their expertise. Page 9
NEWCASTLE-UNDER-LYME SCHOOL ANNUAL REPORT OF THE GOVERNORS ICONTINUED) YEAR ENDED 31 AUGUST 2024 Careers: Our Head of Careers developed links with a local secondary school multi academy trust to share best practice in organizing work experience visits, and also works extensively with local business and Keele University on the exchange of ideas and assistance. The school also provides employment to students at Keele University, as they seek financial assistance with their postgraduate study. Working with the wider community, community service and charity: Newcastle-under-Lyme School is a part of its local community. Our pupils and staff undertake a range of initiatives in support of our local community. Sport: We work closely with local sporting organisations: North Staffs Hockey, Newcastle Staffs Swimming Club and Newcastle Town Netball Club sharing facilities including our new sports hall as well as staff expertise. We operate NULS Swim School- which offers subsidised lessons so we can charge a cheaper rate compared to local providers. This is open to our pupils as well as external pupils. NULS Cricket Academy - Provides elite group and I to I coachins for those pupils striving to be selected for Staffordshire and First Class teams. This is open to our pupils as well as external pupils. Dominies Badminton Club use our facilities who provide junior and adult training sessions as well as entering local leagues, and local running clubs use our indoor spaces as well. Combined Cadet Force (CCF): We have strong links with the local community and local veterans through our CCF. This year the CCF staff team has expanded to include new staff from both within and outside the school. This has allowed the development of greater and deeper links with other local school and Air Training Corp (ATC) units, assisting with training activities and equipment sharing. We have remained closely linked to the local community, especially the Veterans Associations and the local Sea Cadet unit. We attend the Borough Remembrance parade and sent representatives to the ATC Sunday Service in Stoke. Our own Remembrance Parade brings the CCF and wider school together, alongside representatives of the local community. Charity: Throughout the year the Charity Committee ran events in support of AlderHay Children's Hospital where one of our Year 13 pupils has been treated throughout her life. We held three Non Uniform Days, Christmas, Easter and Summer Fairs. and a Valentine's Day sweet sale. We hosted 40 Senior Citizens from our local community and various care homes, at our annual Senior Citizens Christmas Party. Guests were treated to a deliaous Afternoon tea prepared by the Food and Nutrition department, and thoroughly enjoyed a game of Bingo before being entertained by musicians from our Jazz Band. Each guest was Ven a small gift by the pupils, who thoroughly enjoyed interacting with our guests. 15 Afternoon Tea boxes were delivered to our eEderly neighbours who were unable to join us on the day. Community Service: A number of Year 12 and 13 pupils engaged in a variety of activities throughout the year including supportins our own Prep School and Nursery, visiting residents in care homes, working in Charity shops, volunteering at the local hospital, assisting in local schools as well as supporting the 'Our Space, programme during the school holidays. The school also provided local elderly members of a local hospice with a tea party at Christmas as a community project. Page 10
NEWCASTLE-UNDER-LYME SCHOOL ANNUAL REPORT OF THE GOVERNORS (CONTINUED) YEAR ENDED 31 AUGUST2024 Our music rooms are used by a local Symphony Orchestra, and Pipe Band. The school musicians provide a free lunchtime concert for the local Penkhull Arts Festival in September, which includes an invitation to local primary schools, and local musicians and music groups use our spaces for rehearsals. The school also provides access to its wood (Ekka's Wood) to local outdoor groups and partners with the Scouts to provide excellent facilities for its young members to use at this Eocation for outdoor education in the community. Duke of Edinburgh (DofE): This year saw pupils completing awards at all levels, with a significant number of pupils achieving their Gold Awards. making NULS the largest ntre for DofE in Staffordshire. All pupils completing the DofE Awards undertake a volunteering section working at and with a diverse range of orsanisations. Some examples of the work completed includes.. volunteering at unifornied organisations such as Scouts and Guides, working with charitie5 such as the British Heart Foundation and Barnardos, supporting activities in our Prep School, and volunteering with environmental groups to support the local environment. We also had several pupils involved in citizen science projects online, such as the Zooniverse Citizen Science Scheme. Drama Props and Equipment: We have ongoing arrangements to share props and lighting equipment with a local church and a local school. A local theatre group loaned stasing equipment from us, this was limited this year. MFL: Pupils took part in a Business Language Champions event across the independent and state sector schools. PIUNCIPAL RISKS AND UNCERTAINTIES The Governors recognise that independent schools are currently facing a unique set of economic and political challenses. Inflation is affecting operational costs, and placing cost of living pressures on parents when considering fees. The imposition of VAT on fees has presented the single biggest economic shock to the sector in recent history and the school is pleased with how it has tried to absorb a significant amount of this increased cost burden without passing this on to parents. The school's management of its roll during this period and shock has been very encouraging with the school continuing to prove very popular however it is important to accept that the impact of the government's change to VAT will be felt in the sector for many years and the school must manage this challenge prudently. The Governing Body remains confident that fees are still the best value for money in the area when the school's academic results and all-round provision is considered School fees were increased by 8Yo from 01 September 2023 and the Governing Body remains confident that fees are still the best value for the area. The Covernor's continue to monitor the increasing cost of providing pensions through the Teacher's Pension Scheme, but remain committed to the Scheme for the time being. This will be reviewed annually to ensure that the Governors are confident that this is the best option for the School and its teaching staff. Page 11
NEWCASTLE-UNDER-LYME SCHOOL ANNUAL REPORT OF THE GOVERNORS (CONTINUED) YEAR ENDED 31 AUGUST 2024 The School campus comprises a number of older buildings, spread out across the site, some of which is covered by the local Conservation Area. Maintaining and developing an ageing estate remains challengin& and our long terni plan will be refreshed. As ever, Health and Safety is a significant area for risk management, risks ranging from fire and infrastructure to personal risks (most notably when away from the School on trips and visits). The level and breadth of activity at the School is impressive and we minimise the associated risks through thorough planning and risk assessment. Governor sub-committees examine specific areas of risk relating to their function and report on these to the Tnain Governing Body. The Governors regularly review the effectiveness of current plans and strategies for managing all identified major risks for the School. FUTURE PLANS The School's current Development Plan is subject to periodic revÉew by the Governors, and was updated following the appointment of the current Head. The primary future aims for the School are set out in the core elements of the Development Plan, and are: to provide value-added outcomes in excess of local independent schools by enriched, innovative learning, delivered by well led staff teams continued excellence in pastoral care continued excellence in our co-curricular programme to provide excellent communications, recruit as many pupils who would benefit from what we offer as possible, secure funds to support our bursary provision and develop linkage with former pupils and staff as a 'community for life, constructively link with our community to provide an efficiently run School with careful deployment of staffing and stewardship of resources with a focus on meeting the needs of both current and future pupils to provide collaborative and open leadership and effectiTrie management whilst recruitin& retaining and developing the best staff team to provide a lively, enrichin& nurturing Preparatory Sthool experience built on strong pastoral support, academic progress and developing activity experiences which encourage a life-long relationship with NULS to provide an aspirational, young adult, pre-university community which offers enriched opportunities which prepare for the world beyond School and which retains Year 11 and attracts and recruits students from other pre-16 provision. Page 12
NEWCASTLE-UNDER-LYME SCHOOL ANNUAL REPORT OF THE GOVERNORS (CONTINUED) YEAR ENDED 31 AUGUST 2024 STATEMENT OF ACCOUNTING AND REPORTING RESPONSIBILITIES The Governors (who are also the Directors of Newcastle-under-Lyme School for the purposes of company law) are responsible for preparing the Report of the Govemors and the financial statements in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Governors to PTepare financlal statements for each financial year which give a true and fair view of the state of affairs of the diaritable company and of the income resour5 and application of resources, including the income and expenditure, of the dwitable company for that period. In preparing those financial statements, the Governors are required to select suitable accounting policies and then apply them consistently observe the methods and principles in the Charity SORP 2019 {FR5102) make judgements and estimates that are reasonable and prudent state whether applicable 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 Governors are responsible for keeping proper accounting records which 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 regularities. STATEMENT AS TO DISCLOSE INFORMATION TO AUDITORS In so far as the Governors are aware". there is no relevant audit information of which the charitable cOmpanS auditors are unaware. and the Governors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that inforniation. AUDITORS The auditors, Deans, will be proposed for re-appointment at the forthcoming Annual General Meeting. Report of the Governors, incorporating a strategic report, approved by order of the Board of Governors, as the company directors, on 20 March 2025 and signed on the Board's behalf by: Mrs K A Miller Ichair of the Business Committee) Page 13
REPORT OF THE INDEPENDENT AUDITORS TO THE GOVERNORS AND MEMBERS OF NEWCASTLE-UNDER-LYME SCHOOL Independent Auditorfs Report to the Members of Newcastle-under-Lyme School Opinion We have audited the financial statements of Newcastle-under-Lyme School for the year ended 31 August 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the fÉnancial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their prepaTation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Finfinciai Reporting Standard applicable in the UK and Republic of Irel¢7nd (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the charitable CoMpanS affairs as at 31 August 2023, and of its incoming resources and application of resources, including its income and expenditure, for the period 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 Companies Act 2(M)6. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (tSAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibillties ft)r 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 audkt 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 cOmpanS ability to continue as a going concern for a period of at least twelve months from when the finanaal statements are authorised for issue. Our responsibilities and the Tesponsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Page 14
REPORT OF THE INDEPENDENT AUDITORS TO THE GOVERNORS AND MEMBERS OF NEWCASTLE-UNDER-LYME SCHOOL Other infonnation The governors are responsible for the other inforniation. The other information comprises the inforniation induded in the Annual Report of the Governors, other than the financial statements and our auditorfs report thereon. Our opinion on the financial statements does not cover the other infonnation and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financRal statements, our responsibility is to read the other information and, in doing so, consider whether the other infonnation is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially rnisstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a mateTial misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other informatlory we are required to report that fact. We have nothing to report in thi5 regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Annual Report of the Governors incorporating the strategic report and the directors, report for the financial year for which the financial statements are prepared is consistent with the financial statements; and the strategic report and the directors, report have 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 identified material misstatements in the strategic report and the directors, report. We have nothing to report in respect of the followins matters in relation to which the Companies Art 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been reiVed from branches not visited by us,. or the financial statements are not Rn agreement with the accounting records and returns; or certain disclosures of directors, remuneration specified by law are not made. or we have not received all the information and explanations we require for our audit. Page 15
REPORT OF THE INDEPENDENT AUDITORS TO THE GOVERNORS AND MEMBERS OF NEWCASTLE-UNDER-LYME SCHOOL Responsibilities of governors As explained more fully in the governors, responsibilities statement set out on page 14, the governors (who are also the directors of the dwitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the governors determine is necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error. In preparing the financial statements, the governors are responsible for assessing the charitable companf 5 ability to continue as a going COnrn, disclosin& as applicable, matters related to going concern and using the going conrn basis of accountins unless the governors either intend to liquidate the charitable company or to cease operations, or have no realistic aktemative but to do so. Auditorfs responsibilities for the audit of the financial statements Our objective5 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 auditof s report that include5 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. MÉsstatements can arise from fraud or error and are considered material if, individually or in the aggresate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, includin8 fraud and non-compliance with laws and regulations, was as follows: the engagement parther ensured that the engagement team collectively had the appropriate competen, Capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. we identified the laws and regulation5 applicable to the charitable company through discussions with governors and other management, and from our commercial knowledge and experience of the company'5 operating sector. we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charitable company, including the Companies Act 2006, the Charity Act 2011, taxation legislation data protection, anti-bribery, employment, environmental and health and safety legislation. we assessed the extent of compliance with the laws and regulations identified above through making enquiries of managernent and inspecting lesal corresponden. and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. Page 16
REPORT OF THE INDEPENDENT AUDrroRS TO THE GOVERNORS AND MEMBERS OF NEWCASTLE-UNDER-LYME SCHOOL We assessed the susceptibility of the charitable company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud. considering the internal controls in place to mitigate risk of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: performed analytical procedures to identify any unusual balances, variances or unexpected relationships; assessed whetheT judgements and assumptions made in determining the accountins estimates were indicative of potential bias. investigated the rationale behind significant or unusual transactions; and specifically tested the controls around banking payments. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: agreeing financial statement disclosures to underlying supporting documentation. reading the minutes of meetings of those charged with governance; enquiring of management as to actual and potential litigation claims; reviewing correspondence with HMRC and other relevant regulators. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non- compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate conalMent or collusion. 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.uklauditorsresponsibilities. This description forms part of our auditor's report. Page 17
REPORT OF THE INDEPENDENT AUDITORS TO THE GOVERNORS AND MEMBERS OF NEWCASTLE-UNDER-LYME SCHOOL Use of our report This report is made solely to the charitable company's members, as a bodyi 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 companirfs 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. Jeremy Hodgkiss (Senior Statutory Auditor) for and on behalf of Deans Chartered Accountants Statutory Auditor Gibson House Hurricane Court Hurricane Close Stafford ST16 IGZ Page 18
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2024 Note Unrestricted Restricted funds funds 2024 Total 2023 Total Income and endowments from.. Charitable activities School fees receivable Aneillary trading income 11,447,198 721,944 11,447,198 10,402,951 721,944 665,823 Other trading activities Non-ancillary trading income 90,157 90,157 70,578 Investsnents Voluntary incoming sources 150,869 5,006 150,869 5,006 104,678 445,228 Activities to generate funds 230 230 235 TotaI incomins resources 12,415,404 12,415,404 11,689,493 Expendlture oTh' Raising funds Financing costs Investment management 69,542 19,826 69,542 19,826 41,847 19,249 Total deductible costs 89,368 89,368 61,096 Charitable activities Education and grant making 12,437,110 90,179 12,527,289 11,074,089 Total expenditure 12,526,478 90,179 12,616,657 11,135,185 Net (outgoingllincoming funds from operation: before transfers and Investment gains (111,074) (90,179) (201,253) 554,308 Gain on investments 208,720 208,720 (81,327) Net movement in funds for the year Fund balances brought forward at I September 2023 97,646 (90,179) 7,467 472,981 15,491,521 3,206,864 18,698,385 18,225,404 Fund balances carried forward at 31 August 2024 15,589,167 3,116,685 18,705,852 18,698,385 The notes fonn part of these financial statements Page 19
NEWCASTLE-UNDER-LYME SCHOOL BALANCE SHEET AS AT 31 AUGUST 2024 Note 31 Aug 2024 31 Aug 2023 Total Total FIXED ASSETS Tangible assets Securities investments io li 14,068,422 2,649,914 16,718,336 13,664,554 2,479,690 16,144,244 CURRENT ASSETS Stock Debtors Securities investments - cash balances Cash and deposits 31,840 495,347 40,143 3,554,671 4,122,001 11,024 590,912 21,473 3,779,486 4,402,895 12 li CURRENT LIABILITIES Amounts falling due within one year 13 (1,512,165) (1,198,036) NET CURRENT ASSETS 2,609,836 3,204,859 TOTAL ASSETS LESS CURRENT LIABILrrIES 19,328,172 19,349,103 LONG TERM LIABILITIES Creditors payable after one year 14 (622,320) (650,718) NET ASSETS 18,705,852 18,698,385 REPRESENTED BY.. Unrestricted funds Restricted funds 15,589,167 3,116,685 18,71)5,852 15,491,521 3,206,864 18,698,385 16 These financial statements were approved by the Governing Body on 20 March 2025 and were Signed on its behalf by: Mrs K A Miller (Chair of the Business Committee) Page 20
NEWCASTLE-UNDER-LYME SCHOOL CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2024 2024 2023 Cash flows from operatin8 aetivities Net cash provided by operating activities 719,567 811,878 Cash flows from investing activities Dividends and interest from investments Bank interest Purchase of property, plant and equipment Sale of property, plant and equipment Investment management fees Net cash provided (used in) investing activities 67,072 83,797 11,090,204) 59,362 45,316 (462,090) 27,706 19,249 19,826 (919,509) (310,457) Cash flows from financins activitie8 Repayments of borrowing (24,873) (22,888) Net cash provided by (used in) financing activities (24,873) (22,888) Change in cash and cash equivalents 1224,815) 478,533 Cash in hand at 01 September 2023 3.779,486 3,300,953 Cash in hand at 31 August 2024 3,554,671 3,779,486 Reconaliation of net income to net cash flow from o erations Net incoming funds as per the Statement of Financial Activities Adjustments for: Depreciation charges Profit on disposal of property, plant and equipment Dividends and interest from investments Bank interest {Increase)Idecrease in stocks Decrease/{increase) in debtors Increaselldecrease) in Creditors (201,253) 554,308 686.336 548,660 (12,534) (59,362) (45,316) 6,692 {193,688) 13,118 (67,072) (83,797) (20,816) 95,565 310,604 920,820 719,567 257,570 811,878 Net cash provided by operating activities Anal sis of chan es in net debt AI ISep2023 Cashllow At 31Au82024 Cash and cash equivalents Borrowings Debts due within one year Debts due after one year Total 3,779,486 (20,530) (650,7171 3,108,239 The notes forni part of these financial statements Page 21 (224,815) <3,524) 28,397 (199,942 3,554,671 (24,054) (622,320) 2,908,297
NEWCASTLE-UNDER-LYME SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 I. ACCOUNTING POLICIES Newcastle-under-Lyme School is a charitable company limited by guarantee in the United Kingdom. In the event of the tharity being wound up, the liability in respect of the guarantee is limited to £10 per member 0£ the charity. The address of the registered office is given in the charity information on page 2 0£ these financial statements. The charity constitutes a public benefit entity as defined by FRS 102. The financkal statements have been prepared in accordance with 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 I January 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from l January 2015. The financial statements are prepared under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £. Having reviewed 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. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlines in the Statement of Accounting and Reporting Responsibilities on page 14 The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. 1.1 Fees and similar earned income Fees receivable and charges for services and use of the premises, less any allowances, scholarships, and bursaries granted by the School against those fees, are accounted for in the period in which the service is provided. 1.2 Investment income Investment income from divtdends, bank balances and fixed interest securities is accounted for on an accruals basis. 1.3 Donations, legacies, grants and other voluntary 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. Voluntary income for the School's general purposes is accounted for as unrestricted and is eredited to the General Reserve. Where the donor or an appeal has imposed trust law restrictions, voluntary income is credited to the relevant restricted fund and income endowments are accounted for as permanent trust capital or expendable trust capital, according to whether the donor intends retention to be permanent or not. Gifts in kind are valued at estimated open market value at the date of the sift, in cases of assets for retention or consumption, or at the value to the School in the case of donated services or facilities. Page 22
NEWCASTLE-UNDER-LYME SCHOOL NOTES TO THE FENANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 ACCOUNTING POLICIES (continued) 1.4 Expenditure Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer-terni liabilities. Expendtture attributable to more than one cost category in the Statement of Financial Activities is apportioned to them on the basis of the estimated amount attributable to each activity in the year, either by reference to staff time or the use made of the underlying assets, as appropriate. Irrecoverable VAT is included with the item of expenditure to which it relates. Governance costs comprise the costs of complying with constitutional and statutory requirement. 1.5 Tangible fixed assets Expenditure on the acquisition, construction or enhancement of land, vehicles, furniture, machinery and ICT infrastructure and other equipment are capitalised and carried on the balance sheet at historical cost Other expenditure on equipment incurred in the normal day-to-day running of the School 15 charsed to the Statement of Financial Activities as incurred. 1.6 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 as follows: School buildings, including major extensions Alterations on change of use and minor extensions Furniture, machinery and equipment Motor vehicles 20- 50 years 5 - 15 years 3 - 20 years 5 - 10 years 1.7 Investments Listed investments are valued at market value as at the balance sheet date. Unrealised gain5 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. 1.8 Stock Stock represents cateTing goods for resale and bulk purchases of paper stored by the supplier, and is valued at the lower of cost and net realisable value Page 23
NEWCASTLE-UNDER-LYME SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 ACCOUNTING POLICIES (continued) 1.9 Fund accounting The charitable trust funds of the School are accounted for as unrestricted or restricted income, or as endowment capital, in accordance with the terms of the trust imposed by the donors or any appeal to which they may have responded. Unrestricted income belongs to the School's corporate services, 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 their funds to be used in future for some specific purpose, this is accounted for by transfer to the appropriate designated fund. Restricted funds are represented by capital grants received by the School in previous periods and are being written off through the Statement of Financial Activities in line with the economic life of the asset funded by the grant. 1.10 Pension costs Retirement benefits to employees of the School are provided through a defined benefit pension scheme and a defined contribution pension scheme. The pension costs charged in the Statement of FinanciaE Artivities 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, accounts for the scheme as if it were a defined contribution scheme. The School's contributions, which are in accordance with the recommendations of the Government Actuaryi are charged in the period in which the salaries to which they relate are payable. b) The Newcastle-under-Lyme School Group Personal Pension Plan- This is a defined contribution group personal pension plan with Friends Life. Employef s pension costs are tharged in the period in which the salaries to which they relate are payable. Page 24
NEWCASTLPUNDER-LYME SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 2. SCHOOL FEES RECEIVABLE 2024 2023 Fees receivable consist of: School fees Less: total scholarships, bursaries and concessions 12,380,136 11,257,793 (932,938) (854,842) 11,447,198 10,402,951 3. ANCILLARYTRADING INCOME 2024 2023 Catering income Out of hours school care Sundry income 638,488 36,393 47,063 721,944 578,364 28,353 59,106 665,823 4. NON ANCILLARY TRADING INCOME 2024 2023 Rents and lettings 90,157 70,578 5. INVESTMENT INCOME 2024 2023 Investments Bank interest 67,072 83,797 150,869 59,362 45,316 104,678 6. VOLUNTARY INCOMING RESOURCES 2024 2023 Bequests and legacies Grant5 drawn in respect of new Sports Hall Other income, donation and grants Gifts in kind for the School's own use 5,000 11,250 421,348 12,630 5,006 445,228 7. ACTIVITIES TO GENERATE FUNDS 2024 2023 Fundraising proceeds Sundry donations raised 230 235 Page 25
NEWCASTLE-UNDER-LYME SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 8. ANALYSIS OF EXPENDITURE Staff costs (note 9) Depreciation (note 10) Other 2024 (a) Total Expenditure Cost of generating funds Financing costs Tnvestment management Total cost of generating funds 69,542 19,826 89,368 69,542 19,826 89,368 Charitable expenditure Education and grant making Teaching Welfare Premises repair and maintenance Support costs and governance TotaI charitable expenditure 7,599,566 20,000 344,156 579,011 8.542,733 151,011 769,019 8,519,596 1,090,182 1,110,182 166,081 1,092,644 1,601881 369,244 346,375 1,294,630 686,336 3,298,220 12,527289 TotaI expended 8,542,733 686,336 3,387,588 12,616,657 2023 Cost of generating funds Financing costs Investment management Total cost of generating funds 41,847 19,249 61,096 41,847 19,249 61,096 Charitable expenditure Education and grant making Teaching Welfare Premises repair and maintenance Support costs and governance Total charitable expenditure 6,687,980 197,899 335,194 518,414 7,739,487 111,695 781,112 7,580,787 611,465 809.364 67,722 1,045,295 1,448,211 369,243 348,070 1,235,727 548,660 2,785,942 11,074,089 TotaI expended 7,739,487 548,660 2,847,038 11,135.185 (b) Govemance included in support costs 2024 2023 Remuneration paid to auditor for audit servi5 Other governance costs 14,664 4,135 10,064 4,552 Page 26
NEWCASTLE-UNDER-LYME SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2024 9. STAFF COSTS 2024 2023 The aggregate payroll costs for the year were: Wages and salaries Benefits in kind Social security costs Other pension costs Redundancy/termination payments 6,406,325 5,848,494 266,763 300,082 641.512 577,455 1,228,133 1,009,253 4,203 8,541733 7,739,487 None of the Governors received any remuneration or other benefits from Newcastl&under-Lyme Sthool or from any CODnected body. Termination costs are charged in the period in which the termination is agreed. 2024 2023 Aggresate employee benefits of key management personnel £820,205 £820,205 Number of higher paid employees in bands of: £60,001 to £70,000 £70,001 to £80,000 £80,001 to £90,000 £140,001 to £150,000 The average number of the School's employees during the year, was Teaching staff Administration Support staff 90 14 61 165 91 14 80 18) Page 27
NEWCASTLE-UNDER-LYME SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 10. TANGIBLE FIXED ASSETS Educational Non- books, educational equipment equipment and furniture Freehold property Totals Cost or frozen valuation At 01 September 2023 Additions Reclassification Disposals At 31 August 2024 17,688,263 1,295,120 1,055,494 1,939,711 34,710 20,923,094 1,090,204 17,688,263 2,350,614 1,974,421 22,013,298 Depreciation At 01 September 2023 Charge for the year Eliminated on disposal At 31 Ausust 2024 5,001,699 369,244 986,933 166,081 1,269,908 151,011 7,258,540 686,336 5,370,943 1,153,014 1,420,919 7,944,876 Net Book Value At 31 August 2024 At 31 August 2023 12,317,320 12,686,564 1,197,600 308,187 553.502 669,803 14.068,422 13,664,554 The School has elected, in accordance with Section 35.10(d) of FRS102, to use the carrying value on 01 July 2014, the date of transition to FRS102, of any of the above freehold property previously carried at a valuation as their deemed cost. All tangible fixed assets are held for use on charitable purposes. Badminton Association of England has a legal charge on the existing Sports hall, included in freehold property for £120,000 as a condition of monies granted to the Sthool. Page 28
NEWCASTLE-UNDER-LYME SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 2024 2023 11. INVESTMENTS Market Value I September 2023 New money invested Reinvested income Amounts extracted Investment management fees Increase/(Decrease) in the value of investments Market Value 31 August 2024 2,501,163 2,601,739 (19,826) (19,249) 208,720 (81,327) 2,690,057 2,501.163 Investments held in the portfolio are as follows: Stocks and shares Cash 2,649,914 2,479,690 40,143 21,473 2,690,057 2,501,163 Securities investments are managed for the School by Investec Wealth and Management Limited. 12. DEBTORS.. AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Fees and extras Other debtors Other prepayments and accrued income 208,104 4J24 281919 495y7 274,914 1,029 314,969 590,912 13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Bank loans (note 15) Trade creditors Other creditors Accruals and deferred income 24,054 870,292 617,808 li I12,165 20,530 548,154 606,475 22,877 1,198,036 Although most fee deposits are only repaid at the end of a pupil's period at the school, to reflect the usual terms that fee deposits are repayable to parents on demand if a pupil leaves the school, the fee deposits within creditors is shown as falling due within one year. This reflects the requirements in FRS102 that liabilities where the school does not have an unconditional right to defer settlement for at least 12 months after the balance sheet date should be included in current liabilitie5. Page 29
NEWCASTLE-UNDER-LYME SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 14. CREDITORS: AMOUNTS FALLING DUE AFfER ONE YEAR 2024 2023 Bank loans (note 15) 622.320 650,718 15. BANK LOANS Loans repayable, included within creditors, are analysed as follows: 2024 2023 Bank loans repayable within one year Bank loans repayable between one to two years Bank loans repayable between two to five years Bank loans repayable after more than five years 24,054 26,551 57,512 538,257 646,374 20,530 22,082 77,433 551,202 671,247 The School has one bank loan) with National Westminster Bank PIC which is secured against the freehold property of the School. The loan is repayable over the period to 2039 with an interest rate of 2.06Yo above the bank base rate. 16. MOVEMENT IN FUNDS At 01 September 2023 Net movement in funds At 31 August 2024 Unrestricted funds General fund Restricted funds General TOTAL FUNDS 15,491,521 97,646 15,589,167 3,206,864 18,698,385 (90,179) 7,467 3,116,685 18,705,852 Net movement in fund5, included in the above are: Net movement in funds Incoming resources Resources Gains and expended losses Unrestricted funds General fund Restricted fund8 General TOTAL FUNDS 12,415,404 (12,526,478) 208,720 97,646 (90,179) (12,616,657) (90,179) 7,467 12,415,404 208,720 Page 30
NEWCASTLE-UNDER-LYME SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 17. ANALYSIS OF NET ASSETS BETWEEN FUNDS Restricted Unrestricted 2024 Tangible fixed assets Securities investments Net current assets Long term liabilities 3,116,685 10,951,737 2,649,914 2,609,836 (622,320) 15,589,167 14,068,422 2,649,914 2,609,836 (622,320) 18,705,852 3,116,685 Restricted Unrestricted 2023 Tangible fixed assets Securities investtnents Net current assets Long term liabilities 3,206,864 10,457,690 2,479,690 3,204,859 (650,718) 15,491,521 13,664,554 2,479,690 3,204,859 (650,718) 18,698,385 3,206,864 18. PENSION SCHEMES Retirement benefits to employees of the School are provided through a defined benefit scheme and a defined contribution scheme, which are funded by contributions by the School and employees. Defined benefit scheme: The School participates in the Teachers, Pension Scheme ("the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £1,136,746 (2022-23: £922,177) and at the year-end £140,603 (2022-23: £107,139) 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 2010 (as amended) and The Teachers, Pension Scheme Regulations 2014 (as amended). 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 undeTtaken by the Government Actuarls Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2020 and the Valuation Report was published in October 2023. Following the Mccloud judgement, the remedy proposed that when benefits become payable. eligible members can select to receive them from either the reformed or lesacy schemes for the period l April 2015 to 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the greater benefits, and in preparing the 2020 valuation has valued the'greater value, benefits for groups of relevant members. The employer contribution rate for the TFS is 28.6Q/,, and employers are also required to pay a scheme administration levy of 0.08 % giving a total employer contribution rate of 28.68 % . Page 31
NEWCASTLE-UNDER-LYME SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 18. PENSIONS SCHEMES (Continued) Defined contribution scheme: The Newcastle-under-Lyme Group Personal Pension Plan is a money purchase group personal pension scheme managed by Friends Life. Basic contributions are 5 10 for the employee and 5 % for the employer. The employerfs contributions are charged in the Statement of Financial Activities in the period in which the salaries to which they relate are due. The employer's contributions in the period amounted to £93,851 (2022-23: £89,096) and at the year-end £16,288 (2022-23: £14,162) was accrued in respect of contributions to this scheme. 19. CAPITAL COMMITMENTS There were no Capital Commitments to report. 20. OPERATING LEASE COMMITMENTS 2024 2023 Future minimum lease payments due at the end of the period were Within one year Between l and 5 years 41,512 89,581 131,093 21,923 59,923 81,846 Page 32
NEWCASTLE-UNDER-LYME SCHOOL NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 21. CONTINGENT LIABILITUES The School has entered into a Catering Services Agreement with Thomas Franks Limited, which took effect on 01 February 2023. The Caterer and the School have agreed that the Caterer will invest £190,000 toward the cost of certain works and the supply of TtaIn equipment at the School's premises. For the purpose of this agreement the investment is to be written down on a straight line basis over a five-year period from 01 February 2023. The Caterer shall retain ownership of all the assets purchased using this investment until the end of 31 January 2028 or earlier in the event of an early termination of the Catering Services Agreement, in which case the assets shall transfer to the School for consideration of £1. 22. RELATED PARTY DISCLOSURES There were no related party disclosures to report. 23. ULTIMATE CONTROLLING PARTY No one individual controls the charity. 24. SUBSIDIARIES The School owns all of the issued share capital of Castilian Enterprises Limited (company number 9866298), a company incorporated in England that has its registered Offi at Mount Pleasant, Newcastle-under-Lyme, Staffordshire, ST5 IDB. This Company has been dormant since incorporation on 10 November 2015 and is intended to carry out trading activities on behalf of the School in the future. Page 33
NEWCASTLE-UNDER-LYME SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 24. STATEMENT OF FINANCIAL ACTIVITIES- CompaTative figures by fund type Unrestricted Restricted funds funds 2023 Income and end0entS from: Charitable activities School fees receivable Ancillary trading income Other trading activities Non-ancillary trading income Investments Voluntary incoming sources Activities to generate funds Total incomin8 resources 10,402,951 665,823 10,402,951 665,823 70,578 104,678 23,880 235 11,268,145 70,578 104,678 445,228 235 421,348 11,689,493 421,348 Expenditure on.. RaisÉng funds Financing costs Investment management Total deductible costs Charitable activities Education and grant making 41,847 19,249 61,096 41,847 19,249 61,096 10,983,910 90,179 11,074,089 Total expenditure 11,045,006 90,179 11,135,185 Net incoming fund8 from operation: before transfers and investment gains 223,139 331,169 554.308 Loss on investments (81,327) (81,327) Net movement in funds for the year 141,812 331,169 472,981 Fund balances brought forward at I September 2022 15,349,709 2,875,695 18,225,404 Fund balances carried forward at 31 August 2023 15,491,521 3,206,864 18,698,385 Page 34