Charily Registration No. 1137204 Company Registration No. RC 000830 {England and Wales} THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD GOVERNORS. REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 JULY 2024 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD LEGAL AND ADMINISTRATIVE INFORMATION Chalf of Governors Mr A T Higginson BSC (Hons) Head of Foundation Mr J Slack Bsc {Hons), MA (Ed) Director of Finance Mrs A Cohen LLB {Hons} Charlty number 1137204 Company number RC 000830 Auditors Crowe U.K. LLP 3rd Floor, St George's House 56 Peler Street, Manchester M2 3NQ 8ank•r8 National Westminster Bank plc 2 Chestergale Macclesfield SK11 6BA Solicltors DAC Beachcrofl LLP 3 Hardman Street Manchester M3 3HF THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD CONTENTS Page Governors, officers and organisation Governors, report 2-11 Statement of Governors, responsibilities 12 Independent auditors, report 13-15 Statement of financial activities 16 Balance sheet Cash flow statement 18-19 Notes lo the accounts 20-35 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502. RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD GOVERNORS, OFFICERS AND ORGANISATION The Governing Body comprises co-opted governors who are elected by the Governing Body following recommendations by the Nominations Committee of the Governing Body and governors appointed by outside bodies as indicated below. They have all served in office throughout the year and subsequently, except where indicated. They were the Trustees of the charily known as The King's School in Macclesfield during Ihe year. The Chair and Vice Chair are ex officio members of all the committees of the Governing Body. Mr Higginson was elected Chair on 3 December 2021 and Ms J White was elected Vice Chair on 2 December 2022. Co-opted Governors Term of office - five years, renewable for a maximum of Iwo further terms of five years. Mr S Barriskell Bsc, MBA Finance & General Purposes. Remuneration, Audit Mrs S Byrne Bsc External Relations Prof N Hanley BSC, MB ChB, PhD, FRCP Mrs V Davidson MBChB, MRCGP, DFSRH Ms L Grainger MA, FCPFA Mr H Grant MA Education, External Relations Education Education, Nominations Finance & General Purpose5, Audit External Relations Mr S Murrells Dr C Doherty B. Pharm, PhD, MBA Mr J Hinds BA Msc Education ' Nominations Finance & General Purposes (retired 3 July 2024) Education, Nominations External Relalions, Finance & General Purposes Ms J White Bsc CBE Mr J Watkins BA (Oxon> Nominated by the University of Manchesler Mr l Bradley Bsc Education Nominated by the Lord Lieutenant of Cheshire Mr A T Higginson Bsc Chair Audit . Remuneralion. Nominations. External Relations, Finance & General Purposes, Education Nominaled by the Lord Bishop of Chester Mr M Strutt BA External Relations ' Finance & General Purposes Nominated by the Cheshire East Council Cllr C O'Leary Education (appointed 4 December 2023) Chair of the Committee All nominated governors have terms of five years {or such lesser period as the nominating body may declare at the time of nomination), renewable for a maximum of two further lerms. THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD GOVERNORS REPORT Officers The principal officers of the School during the year were: Mr J Slack - Head of Foundation Mr J M Spencer Pickup - Director of Finance & Clerk to Ihe Governors (retired after 20 years, service on 31 August 2024) The Governing Body has appointed Ms Anna Cohen as Director of Finance & Operations from 1 September 2024 The day to day running of the Foundation is delegated to the key management personnel that comprises the Head of Foundation, Director of Finance & Operations, Deputy Head (Academic), Deputy Head (Operations), Director of External Relations, Principal of the Infant and Junior Division, Principal of Senior School, Principal of Sixth Form and Assistant Head (Staff). Organlsatlon In September 2020, the School completed its move to the new campus where it operates a co-educational day school for pupils aged 3 years lo 18 years. The registered office of the charity changed to The King's School in Macclesfield, Alderley Road, Prestbury, Macclesfield SK10 4SP. GOVERNORS, REPORT The Governors present their Annual Report for the year ended 31 July 2024 under the Charities Act 2011 together with the audited financial statements under the Companies Act 2006. The accounts have been prepared in accordance with the accounting policies set out in Note 1 to the accounts and comply with the School's governing document, the Companies Act 2006 and the Statement of Recommended Practice, Charities (FRS102). Reference and admlnlstratlvé Informatlon The Foundation was originally created under a body corporate by Ihe Charter of King Edward Vl in 1552. The Governors, officers and principal address of the Foundation are listed above. Structure, governance and management Governing document The Charity is constituted as a Royal Charter Company called "The Foundation of Sir John Percyvale in Macclesfield of 1502. re-founded by King Edward Vl in 1552" under the new supplemental charler that received Royal Assent on 11 February 2009 and is registered with the Charity Commission under Charity number 1137204. Organisational management The Governors are responsible for the overall managemenl and control of the Charity and meet al least Ihree times per year. The work of implementing the educational policies of Ihe Charity is carried out by members of the Education Committee, who meet three times per year. The Finance & General Purposes Committee is responsible for overseeing the day-lo-day management of the Charity and monitoring strategic risks. 11 meets al least six limes per yearwilh the Head of Foundation, Director of Finance & Operations and Director of Exlernal Relations. There are the following additional committees of the Governing Body that meet as required during the year. The committees have specific terms of reference and make appropriale recommendations to the Governing Body.. THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD GOVERNORS REPORT Nominations Considers nominations to the Governing Body and oversees the induction and training of Governors. External Relatlons Oversees the External Relations function and monitors the School's public benefit and bursary policy. Remuneration Considers remuneration and annual pay awards for all staff. Audlt Oversees the preparation and completion of the audited financial statements and annual report for approval by the Governing Body. Recruitment and Governor Tralning Governors are appointed at a meeting of the full Governing Body on the basis of nominalions received from the Nominations suboommittee that vels applications to ensure they meel eligibility, competence, specialist skills and knowledge of the local community requiremenls for any vacant positions on the Governing Body. New governors are inducted into the workings of the Charity, including Board policy and procedures by the Head of foundation and Direclor of Finance & Operations. This induction is overseen by the Chair of Governors. The Director of Finance also arranges trustee-training workshops for governors covering specific issues. Group Structures and Relatlonships The Charity has one subsidiary trading company known as King's School Macclesfield Limited Ihal was registered on 1 March 2022 with registration number 13947262. It5 financi81 results are included in these accounts and the assets are shown within unreslricted funds. The King's School Macclesfield Development Trust is a subsidiary charity with number 504131 and its financial results are included in these accounts and the assets are shown within restricted funds. The operation of the school shop and school catering are both outsourced. Risk Management The Governing Body is responsible for the management of the risks faced by the Charity. Detailed considerations of high-level risks and their mitigations are delegaled lo the Finance & General Purposes Committee, the Head of Foundation and Director of Finance. The School's Senior Management Team and the Health & Safety Committee consider day to day risks and ways to mitigate them. The key controls used by the Charity include: Fomial agendas for all Committee and Governing Body activity.. Detailed terms of reference for all Committees. Preparalion and updating of Ihe five year Development Plan. annual Budget and termly Management Accounts. Established organisalional structure and lines of reporting through the Principals in each division. Formal written policies,. Appropriate levels of insurance protection., Approved authorisation levels,. Velting procedures as required by child protection legislation, and Regular review of health and safety issues. Through the risk management process overseen by Ihe Governing Body, the Governors are satisfied that the major risks identified have been adequately mitigated, where possible. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed. THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD GOVERNORS REPORT Major risks The School updated its high-level risk assessment in June 2024. There are a number of new medium term financial risks that the Governing Body have asked the School's leadership team to assess and ways that the risk can be mitigated. These risks include.. a) The increase in employers, contribution rate to the Teachers, Pension Scheme from 23.680/0 of pensionable pay to 28.68 /0 effective from April 2024. b) The loss of mandatory business rates relief in England in April 2025. c) The loss of the current exemption from VAT for the provision of education from 1 January 2025. The School is concerned that a number of parents may not be able to afford the additional bLJrden of VAT on school fees. The School has commissioned a survey of parents by an independent company that will keep the individual data anonymous to inform the Governing Body of likely loss of pupils so the School's leadership team can assess ways to mitigate any future loss of pupils. Key managamont personnel remuneratlon pollcy The Charity has a Remuneration Committee. which meets annually. The Head of Foundation is In attendance for the meeting (leaving for the discussion regarding the Head's pay) No members of the key management personnel are members of the committee. The Head of Foundation makes recommendalions for changes lo salaries of key management personnel. This 15 to ensure such salaries reflect experience and delivery of individual targels. The Remuneration Committee reviews all salary changes including those for the key management personnel against independenl benchmarking surveys, where available. The Remuneration Committee then sels the pay for all staff. Investment pollcy and objectlves The Board aims to maximise the total investment return within the objectives of maintaining Income whilst preserving the real value of endowed investments. The school's investments have continued to be managed in conformity with this policy and the Supplemental Charter. 08JECTS Charltable objects The Charity's Objects, as set out in the Supplemental Charter dated 11 February 2009, are the advancement of education by way of maintaining a day school in Macclesfield. The Governors have powers to provide total or partial exemption from any fees payable to pupils who are in need of financial assistance. In addition, the Foundation has to maintain a number of restricted trust funds held for scholarships, bursaries, prizes and other educational purposes. THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD GOVERNORS REPORT AIMS. OBJECTIVES AND ACTIVITIES Ethos and values The King's School in Macclesfield is proud of its history and ambilious for its future. Learning and personal development are at the heart of its community. The School seeks to equip young people with the character and skills necessary to meet the challenges of a changing world. The School believes that education is not just about what happens in the classroom. The School seeks to produce courageous and responsible citizens who contribute to society through leadership and service. Prlnclpal actlvltles of the year The Charity continued to offer Pre-school, Infant, Junior and Sixth Form education for boys and girls between the ages of 3 to 18 on the new campus thal opened In September 2020. In the year ended 31 July 2024, the average pupil population of the Foundation was.. 2021-2022 2022-2023 2023-2024 Infants & Junior Division 380 398 426 Senior Division 670 677 719 Sixth Form division 222 220 183 1,272 1,295 1,328 In September 2024, the pupil population was 1,335. Publlc benefit and grant maklng pollcy The governors confirm that they have had due regard to the Charity Commission guidance on public benefit. Bursarles Governors, bursaries and Quincentenary bursaries are awarded lo pupils of parenls with limited financial means in accordance with the Foundation's Bursary Policy. All new bursary awards are subject to an external review of family income. At the recommendation of Ihe Head of Foundation, bolh bursary and scholarship awards can be removed if a pupil's behaviour or effort do not meet the standards expected. During the year, 54 pupils benefitted from bursary support totalling £626,330. In total, 30 of these pupils received bursary support worth more than 80 % of total fees.. 22 of these pupils received support up to 95 /0 of full fees and 8 pupils received support of more than 95 % of lotal fees. In addition, the Charity made 156 scholarship awards based on academic, sporting or musical merit which are not means tested worth £222,557. Charitable work King's raised £45,000 for a range of local, national and international charities and good causes, Pupils chose to support East Cheshire Hospice, Francis House Hospice, Visyon, Macmillan Cancer Research, BBC Children in Need, CRY (Cardiac Risk in the Young), Destiny Garden School, Comic Relief Red Nose Day. Christies Hospital, Royal British Legion, Movember, NSPCC, Shelter and Water Aid. Community access programme We continue to rnaximise the opportunities afforded by the new School campus (opened 2020), using the high quality facilities as a springboard to fosler a greater number of partnerships with local organisations, clubs and schools. We continue to host major events including Ihe Cheshire Hockey Club County Championships and both the Macclesfield Primary Schools Girls, Cricket Tournament and the Macclesfield Netball Tournament, as well a5 swimming and rugby festivals. THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD GOVERNORS REPORT Our Community Outreach programme seeks lo widen access to the School's facilities for local organisations, sports clubs, charities and societies. Our facilities are provided either free of charge or at heavily subsidised rates. A total of 60 organisations use our facilities for either a single event or a series of lettings, including Cheshire Fire and Rescue, CORAM Child Adoptions, Starr in the Community (inclusive circus for children with learning needs), Cheshire Cricket, a range of local sports clubs. local schools and charilies. Throughout the year, the School's Sports Centre is used fortnightly, as an activity and meeting space for Disability Positive. The Outreach Scheme seeks to benefil local children in a range of primary schools in our vicinity. Ulilising King's specialist staff to deliver the outreach activities, pupils from local primary and secondary schools have attended King's to experience sessions in the school's outdoor areas and Sports Centre. A range of different types of sessions have been offered, including Bushcraft Sessions, Forest School lessons, Cricket and netball sessions, Orienteering and Swimming. One of our School Governors, Prof Neil Hanley, who is Professor of Medicine at the University of Manchester, delivered Saturday morning workshops to 12 aspiring medical students at King's as well as local schools Tytherington and Fallibroome Academy. The sessions are designed to prepare Sixth Form students for the challenging UCAS process, online tests, and university inlerviews. This year. we established a partnership with The Rossendale Trust, a charity which supports adults with learning and physical disabilities. The school provided its first 'Work Taste, placement for an adult with learning needs, supported by his carer. He has been working in Ihe main school kitchen and will continue his weekly visit for the following academic year. Plans are underway to welcome a second resident next year. For the second year, the School has worked with The David Lewis Centre, which supports individuals with learning disabilities, epilepsy and autism. Throughout the year, a group of young adults from the centre have visited King's, where they are supported by the school's Grounds team in various work opportunities around the school grounds. Since moving to our new campus, we have operated 8 Lions Summer Camp for children aged 810 14 years old, for 7 weeks of the summer holidays. These are open to all children in the area. Over the last three summers, more than 2,500 sessions have been attended. Throughout the year, several local Scouts, Cubs, Brownies and Guides groups have used our ouldoor facilities for meeting and outdoor learning including bushcraft skills. In September. we held our second Sixlh Form Leadership Conference for pupils from around 15 other local and stale sector schools. Speakers included the Chair of JD Sports, the HR Director for Manchester United FC and other leaders of industry. Community service 300 pupils participated in Bronze, Silver and Gold Duke of Edinburgh awards. This represents around 8,000 hours of volunteering, 8,000 hours of new skill acquisition, 12,000 hours of physical activity, and 600 nights spent under canvas. Volunteering is an essential part of a DofE award programme, and it has a huge impact on young people as well as those charities and groups benefitting from Iheir lime and energy. 25 Sixth Form pupils participated in Ihe Community Sports Leaders Award Scheme, acting as coaches for local schools who visit King's. The Award allows Sixth Form students to develop important leadership and life skills such as effective communication, organisation, teamworking whilst learning to run activities for younger people. Local Schools attending this year include Bollinbrook Primary, Mottram St Andrew, Ivy Bank Primary and Broken Cross Primary School. THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD GOVERNORS REPORT Teacher Training King's is heavily involved with a programme of support for Early Career Teachers {ECTs). We work alongside IsTip (Independent Schools Teacher Induction Panel) to ensure high-quality mentoring of new teachers during their first year in the profession. Over the last five years, we have supported 7 ECTS via an induction course, weekly meetings wilh trained Mentors, twilight sessions and partnering with experienced staff. We are the IsTip Regional Training Centre for the North West and, in the last five years, more than 100 new teachers have attended our IsTip Regional ECT Conferences offering workshops, speakers and in-house presentations. Sport King's sports facilities are let to community groups on 7 days a week on weekday evenings and both Saturday and Sunday. Our Sports Centre and external facilities benefit a wide range of sports clubs that require high- quality, local provision. Around 60 sports club5 and 1,000 community members regularly use our facilities including.. Cheshire Cricket Club, Macclesfield Cricket Club, Alderley Edge and Macclesfield Hockey Clubs, Macclesfield Trampoline Club, Wilmslow Basketball Club, Satellites Swimming Club, and many, many more. Cricket sessions have been delivered to pupils from local schools including Broken Cross Primary, Mottram Primary, Bollinbrook and Ivy Bank. Swimming sessions have also been popular, using our pool when it is not in use by our own pupils during the summer term and holiday period. We also hosted the annual Bollinglon Primary Schools Swimming Festival, involving 10 local primary schools. King's hosted a significant number of major sporting tournaments, competitions and festivals, across a wide range of sports. The Myles Marshall Rugby Sevens Festival saw 64 teams participate, with around 700 children aged 11 15. The U18s Senior Rugby Festival is hosted annually in early September and around 450 players from all over the country participated. 12 King's staff act as coaches or professional helpers at local sports clubs. These include Cheshire Athletics Association, Prestbury Squash Club, Macclesfield Rugby Club, Macclesfield Cricket Club, Alderley Edge Hockey Club, Macclesfield Netball Club, Prestbury Tennis Club and the East Midland Orienteering Squad. Supportlng Creatlve & Perfomilng Arts The Northern Chamber Orchestra {NCO) held 10 Saturday night concerts at King's, with each regularly attracting audiences of up lo 400 people. The partnership with the Northern Chamber Orchestra is now in its second year, with plans in place to continue for a third year in 2025126. Throughout the year, King's musicians provide regular lunchtime recitals at St Michael's Church in the centre of Macclesfield. Known as 'Music at Mikes,, this series of fundraising concerts is open to the PLJblic and generates funds for the East Cheshire Hospice. Overall, Senior pupils hosted 15 public concerts locally and nationally, including a fundraising concert for The Priory Church in Cartmel and a concert at Chester Cathedral. In addition, our Infant & Junior Division pupils put on seven public concerts and participated in the Alderley Edge Music Festival. All pupils have the opportunity to take part in Drama productions, which are open to the public. In February 2024, the Senior Division performed 'Guys & Dolls,. Our Infant & Junior Division pul on four dramatic performances Including a Year 4 performance, a Year 6 musical 'Oliverl' a Christmas nativity and a Summer play. In addition, services and celebrations take place at harvest and Easter. THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD GOVERNORS REPORT Supporting STEM I Science Each year, we provide Science Workshops for local primary schools. They are run by our Science teachers and our A-Level students. We ran 23 workshops for 10 schools. Marton & District Primary School, Bollinbrook School, Altrincham Prep School, Marlborough Primary, Rainow School, Yorston Lodge, Prestbury Primary. All Saints (Leekl, Park Royal Community Primary and Broken Cross Primary. In total, around 960 local primary school children experienced workshops delivered by King's A-Level science students. We hosted the Macclesfield Primary Maths Challenge in the summer term, with 9 local schools competing. A total of 40 pupils from Year 5 competed in the team challenge, developing their problem-solving and communications skills. Envlronmental Impact Sustalnabillty Over the summer, King's has covered its main building, music block and infant and junior with 1,500 square metres of solar panels. This is in addition to the 800 square metres of solar units inslalled last year on ils Sports Centre. The savings are estimated to be some £150K p.a. with the school set to generate 500 megawatt hours of power, around half of ils needs, and send 15 megawatt hours back to the National Grid as green energy for use by ils neighbours. It will reduce the carbon footprint of the school by around 30 per cent. 11 all means King's will have recouped its capital spend in around five years and can then look forward to continuing savings. The solar power arrays will also power the aeration systems lo boost wildlife in the school's range of on-site ponds therefore enhancing King's outdoor learning programmes. King's Physics GCSE students have already been using the new solar system in project work, learning the science behind the energy conversion systems and are fully involved in recording and analysing data collection. Since moving to our new campus in September 2020, we have planted more than 2,000 new trees including establishing a large 'heritage variety, orchard. The orchard is also the location of our apiary, which has eight beehives. The hives are used as a teaching resource, with our younger pupils studying Ihe importance of bees and their role in pollination and biodiversity. We also planted 600 square metres of spring bulbs on our campus, which will flower each year and help pollinators including bees and insects. Behind the Sports Centre is now a wetland wildlife area and biodiversity leaching area. Pupils have instslled plants that naturally filter the water and it is known that frogs and newts have already colonised this area. An elderftower hedgerow has been planted and fruiting greengage, damson, apple and pear trees have been added. STRATEGIC REPORT ACHIEVEMENTS AND PERFORMANCE Academlc The School's academic results in August 2024 continued the school's long-standing repulation as one of the best independent schools in Cheshire and in the UK. King's A Level and GCSE students celebrated outstsnding results this summer. A Level studenls bucked the national trend to earn record results. For the first year since 2019, nationwide results showed a small decline, but at King's it was yet another bumper year. A stunning 49 % of all grades were at A"IA, with 81 % of grades at A. B. A fabulous five students achieved three A's, while more than a third of students achieved an A. in one subject or more. King's GCSE results were also very impressive. King's pupils achieved 59 % of all grades at 9 - 7 (A"IA) and 800/0 of grades at 9-6 (A"_Bl. THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD GOVERNORS REPORT For our leaving Sixlh Form students, 62 % joined Russell Group universities and an impressive 92 % achieved their first choice of university. One student will join Oxford this year. A further 6 students joined highly competitive degree-apprenticeship schemes. Independent School of the Year Awards King's has reached the finals of the Independent School of the Year Awards, shortlisted in the 'Sporting Achievement, category It is the third consecutive year that King's has made the shortlisting and the second time making it to the finals, previously having been nominated in the categories of'Pupil Wellbeing, and 'Educational Innovation, from over 2,000 schools nationwide. During 2024, King's has claimed nalional litles in several differenl sports.. pupils were crowned national champions in U14 rugby-, achieved fourth in the country at U14 Nelball., had four team golds at the national trampoline finals,. won the Preliminary 12 dressage final at the equestrian leam championships and were national U15 finalists in cricket last year. However, central lo our award submission was not just the level of our success at an elite level, but also the breadth and inclusivity of our participation including sailing, swimming, table tennis and other sports for our wheelchair users. Extra-curricular actlvltles About one third of all pupils learn at least one musical instrument. Many of the ensembles, groups and choirs continue to operate with large levels of participation, and a full calendar of concerts, shows, recitals and music competitions has been held this year. Pupils continued to participate in winter and summer sports, enjoying a wide range of options. Participation levels are very high.. for example, across Years 7 - 10, 790/0 of pupils have represented King's this academic school year. In fact, the school offers over 20 different sports and vows lo support and help develop any pupil's individual passion. Sports on offer include football, hockey, netball, athletics, rugby, rounders, tennis, trampolining, cricket rounders, athletics, tennis, swimming, sailing and table lennis. The major team sports have representative teams (A, B and C) for most age groups and the results reflect the hard work and enthusiasm of the pupils and staff. The School offers pupils the opportunity to participate in chess, equestrian squad, golf, cheerleading, kayaking, caving, coasteering, climbing, skiing, squash and yachting. FINANCIAL REVIEW Results for the year The general fee increase during the year and an increase of 33 pupils in the school and ensured total incoming resources increased to £18.9 million (2023: £17.2 million before the major legacy worth £1.2 million recognised in the year). Total resources expended were £18.1 million (2023.. £16.8 million). Net incoming resources from operations were £800,000 (2023.. £400,000 excluding the major legacy). Net assets increased to £49.2 million (2023: £48.3 million). Investment performance against objectives The Charity's investment performance for the restricted and endowment funds continue to be monitored against the FTSE All Share Total Return Index. The Index achieved a total return of +170/0 over the year. The COIF Income Fund that is invested more internationally provided a total return of 10.4 % whilst the UK focussed M & G Charifurid was up +15 %. The Charity with its holdings predominately in the COIF Income Fund achieved an overall investment return of +11.7 % againsl the Index return of +170/0. THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD GOVERNORS REPORT Free reserves policy and flnanclal viability The Governors consider that the target for free reserves should be three months, operating costs {excluding depreciation) of approximately £3.5 million. This is a medium-tenn objective that will be achievable, subject to further cash requirements for further capital expenditure. The calculation of free reserves at 31 July 2024 below has been impacied by the decision to make a £3.2m (2023 £5.0 million) early repayment of the long term bank facilities from the School's cash balances as the school was paying substantially more on its long term debt interest costs Ihan it was receiving from interest on its deposits. If the School had only paid the contracted £644,444 {2023 £800,000) of debt repayments in the year, the free reserves would have been £4.5million. It is expected that surpluses from operations over the coming years will see the free reserves increase lo meet the medium-lerm objective above. £'ooo £'ooo Unrestricted funds at year end 48,111 Less fixed assets per accounts Add back Long term Bank borrowings to fund the new campus (59,325) 7,556 (51,769) Free reserves at year end (3,658) FUTURE PLANS In 2022, the Governing Body published the five-year Stfategic Plan to 2027. The strategic intent to make a difference to each and every pupil in the school. This is supported by six strategic priorities to create a holistic approach to education that is true to our ethos, values and aims: 1. Academic aspiration supported by strong levels of teaching and learning 2. Emphasis on holistic education and skills development 3. Strong pasloral care 4. Prominent and appreciated position within the local community 5. Stability (financial and otherwise) 6. Making the most of the new campus and developing the physical environment. Through this process, the School has identrfied projects that are aligned with these strategic priorities and will come forwards as capital is provided to fund them whilst maintaining the school's financial stability. During the previous year, the Governing Body prioritised the refinancing of the School's existing long term debt facility that was due to expire in 2026. As set out in the notes, the School entered inlo a 15 year Term Facility of £10.0 million with Natwest Bank plc (the "Bank" ) on 28 November 2023 and used the funds to repay the £9.8 million outstanding lo A18 under the previous facility agreement. The Term Facility is secured against the freehold sites for main school campus. At the same time, the School entered in to a 5 year Revolving Credit Facility I'RCF") with the Bank for £5.0 million. The funds under the RCF will be drawn down as the school requires them for further construction projects and working capital requirements. Any balance remaining on the RCF at the end of its 5 year term will be added to the Term Facility. 10 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD GOVERNORS REPORT Subsequent events The School has appointed advisors to support through the transilion to becoming VAT registered from January 2025 following Ihe government announcement that VAT would be applied to independent school fees during the 24125 financial year. Statement of disclosure to auditors On behalf of the Governing Body. the Audit Committee has confirmed that there is no information of which Ihey are aware which is relevant to the audit, bul of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information. On behalf of the Board of Governors Mr A T Higgin Chair of the Governing Body Dated: 21 March 2025 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD STATEMENT OF GOVERNORS, RESPONSIBILITY The Governors are responsible for preparing the Governors, Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice {United Kingdom Accounting Standards). The law applicable to charities in England and Wales requires the Governors to prepare financial statements for each financial year which give a true and fair view of the stale of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Governors are required lo.. select suitable accounting policies and then apply them consistently,. observe the methods and principles In the Charities SORP., make judgments and estimates that are reasonable and prudent,. slate whether applicable accounling standards have been followed, subject to any material departures disclosed and explained in the financial statements,. and prepare Ihe financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The Governors are responsible for keeping adequate accounting records that are sufficient lo show and explain the charity's transactions, disclose with reasonable accuracy al any time the financial position of the charity and enable them lo ensure that the financial statements comply with the Charities Act 2011, the Charities {Accounts and Reports) Regulations 2008 and the provisions of the charity's constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 12 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS Opinion We have audited the financial statements of The Foundation of Sir John Percyvale in Macclesfield of 1502, Re- founded by King Edward Vl in 1552 known as The King's School in Macclesfield {the"charity"I, and its subsidiary (together, the'group } for the year ended 31 July 2024, which comprise the Consolidated Slatement of Financial Activities, the Consolidated and School Balance Sheets, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial stalements.. give a true and fair view of the state of the group's and the charity's affairs as at 31 July 2024 and of the group's 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 Act 2011. Basls for opinion We conducted our audit in accordance with Internalional Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements thal are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to golng concern In auditing the financial statements, we have Concluded Ihat the governors, use of the going concern basis of accounting in Ihe preparation of the financial statements is appropriate. Based on the work we have performed, we have not idenlified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's or the charity's ability to continue as a going concern for a period of at least twelve months from when Ihe financial statemenls are authorised for issue. Our responsibilities and the responsibilities of the governors with respect to going concern are described in the relevant sections of this report. Other Information The governors are responsible for the other information contained within the annual report. The other information comprises the informalion included in the annual report, other Ihan the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express anyform of assurance conclusion thereon. Our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge oblained in the audit or otherwise appears to be materially misstaled. If we identify such material inconsistencies or apparent material misstalements, we are required to determine whether this gives rise to a material misstatement in the financial stalements themselves. If, based on Ihe 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. 13 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation to which the Charities {Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion.. the information given in the financial statements is inconsistent in any material respect with the trustees, report" or sufficient accounting records have not been kept by the parent charity,. or the financial statements are not in agreement with the accounting records and returns,. or we have noi received all the information and explanations we require for our audit Responslbllltles of the governors As explained more fully in the statement of governors, responsibilities set out on page 12, the governors 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 offinancial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the governors are responsible for assessing the group's and the parent charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the governors either intend to liquidate the charity or to cease operations, or have no realistic alternative bul to do so. Auditor's responslbllities for the audlt of the flnancial statements We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always delect 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. Irregularilies, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misslalement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate lo provide a basis for our opinion. Details of the extent lo which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below. We oblained an understanding of the legal and regulatoryframeworks within which the group operates, focusing on those laws and regulations that have a direct effect on Ihe determination of material amounts and disclosures in the financial statemenls. The laws and regulations we considered in this context were the Charities Act 2011. and taxation legislation together wilh the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity's ability to operate or to avoid a material penalty. We also considered the opportunities and incenlives that may exist within the charily for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent School Standards) Regulations 2014, Employment legislation and Health & Safety. Auditing standards limit the required audit procedures to identify non-complian￿ with these laws and regulations to enquiry of the Governors and other management and inspection of regulatory and legal correspondence. if any. 14 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of other income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence wilh the Charity Commission, Independent Schools Inspectorate, reading minutes of meetings of those charged with governance, verifying the causes for year-on- year movements in the various income streams, inspecting the supporting documentation for a sample of voluntary income to ensure that this is recognised in line with the terms or restrictions applied lo donations, and ensuring that a full year has been recognised for each income stream by vouching either the total income or a sample of transactions to supporting documentation. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misslatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and Iransactions reflected in the financial slatements, the less likely the inherenlly limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-deteclion of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non- compliance and cannot be expected to detect non-compliance with all laws and regulations. A further description of our responsibilities for the audit of the financial statements is located on the Financlal Reporting Council's website at.. www.frc.or .uklauditorsres onsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the charity's governors, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity's governors those matters we are required to state to them in an auditor's reportand for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's governors as a body, for our audit work, for this report, or for the opinions we have formed. Crowe U.K. LLP Statutory Auditor The Lexicon Mount Street Manchester M2 5NT 2nd April 2025 15 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating the Consolidated Income and Expenditure Account) FOR THE YEAR ENDED 31 JUL Y 2024 Unrestricled Restricted Endowment Funds Funds Funds £'ooo £'ooo £'ooo Total 2024 £'ooo Total 2023 £'ooo Notes Income and endowments from: Donations and legacies Investment income Activities for generating funds Kings's School Macclesfield 39 38 41 77 212 307 120 236 241 307 Charitable actlvltles: School fees Ancillary trading income Other incoming resources 17,719 592 17,719 592 11 16,083 530 15 11 Tolal Incomlng resources 18,828 90 18,918 17,225 Expenditure on: Raising funds King's School Macclesfield Costs of fundraising Ancillary trading costs Financing costs 147 147 205 838 784 1,775 838 784 1,775 779 1,258 2,248 Charltable actlvltles Education and grant making 47 16,310 14,543 Total resources expended 47 16,791 Net Incomlng resources from operations before transfers and investment gains 790 43 833 434 Gainsl{Loss) on investment assets Gain on disposal of land and buildings Transfer be￿een funds 18 38 56 {21) Net movement In funds 790 61 38 889 413 Fund balances al 1 August 2023 47,321 552 503 48,376 47.963 Fund balances at 31 July 2024 48,111 613 541 49,265 48.376 16 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD CONSOLIDATED AND SCHOOL BALANCE SHEET ASAT31 JULY2024 Consolidated School 2024 £'ooo 2023 £'ooo £'ooo 2024 £'ooo 2023 £'ooo Notes £'ooo £'ooo £'ooo Fixed assets Tangible assets Investments 10 59,325 766 60,773 710 59,325 776 60,773 720 60,091 61,483 60,101 61,493 Current assets Assets held for resale Oeblors Cash at bank and in hand 845 786 845 786 12 143 180 119 169 8,708 7,469 8,536 7,433 Creditors: amounts falllng due within one year: Net current (Ilabilities)la8sets 803 974 Total assets less current liabilities 59,288 60,315 59,127 60,279 Cradltors: amounts falling due after more than one year 14 Net assets Endowment funds 18 541 503 541 503 Restrlcted funds 19 613 552 613 552 Unrestrlcted funds 20 The accounts were approved and authorised for issue by the Board on 21 March 2025 Mr A T Higginso Governor Ms J White Governor THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 JUL Y 2024 2024 2023 £'ooo Notes £'ooo £'ooo £'ooo Net cash (outflow)linflow from operating actlvltles 5,796 5,954 Cash flows from invesling activities Financing costs Investment income Interest received Net proceeds from sale of fixed assets Net proceeds from sale of investment Payments to acquire tangible fixed assets {784) 41 171 (1,2581 31 205 15 321 163 Net cash froml(used) In Investing actlvltles (735) (1,328) Cash flows from flnancing actlvltles Loan repayments (3,844) (5,8001 Net cash (used In)Ifrom flnanclng activltles Change In cash and cash equivalents in the year 1,217 (1,174) Cash and cash equlvalents at the beginning of the year Cash and cash equivalents at the end of the year {1) Reconciliation of net Income to cash flow from operatlng activities 2024 £'ooo 832 (41) 784 (171) 1,611 (212} 2023 £'ooo 432 (31) 1,258 (205) 1,656 674 Net incoming resources Investment income Financing costs Interest received Depreciation of tangible fixed assets Decreasel{increase) in debtors IDecrease)lincrease in creditors Net cash (outflowyinflow from operations {ii) Analysis of cash and cash equivalenls 2024 £'ooo 2023 £'ooo Cash al bank 18 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 JUL Y 2024 Reconciliation of net debt 1 August 2023 £'ooo 31 July 2024 £'ooo Cashflow £'ooo Cash in hand and al bank Bank loan due in less than one year Bank loan due in greater than one year 6,503 (8001 1,217 161 7,720 (639) 19 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y 2024 Accounting policies Basls of pr•paration The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Charities Act 2011 and the Statement of Recommended Practice applicable to charilies 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 functional currency of the School is considered to be GBP because that is the currency of the primary economic environment in which the School operates. The School is a Public Benefit Entity registered as a charity in England and Wales and a Royal Charter Company. It was incorporated on 25 April 1552 (company number.. RC 000830) and re-registered as charity on 30 July 2010 (charity number: 1137204). The School continues to attract pupils and Is full in many year groups. Strong pupil numbers is enabling the School to generate operational cash surpluses sufficient to cover debt service costs and to build up reserves for future investment. The Governors therefore are confident that the School has sufficient resources lo continue on a going concern basis. Basls of Consolidation The group financial statements consolidate the financial statements of Ihe School and its subsidiary undertaking King's School Macclesfield Limiled {company number.. 13947262). All Inter group transactions and profits are eliminated fully on consolidation. The School has taken advantage of the exemplion available to a qualifying entity in FRS 102 from the requirement to present a charily only cash flow statement with the consolidated financial statements. Incomlng resources Fee income and dining hall income is recognised in the Slatement of Financial Activities on Ihe accruals basis. Fees received in advance of education to be provided in future years are held until either taken to income in the term when used or else refunded. Donations received for the general purposes of the Charily are credited to Unrestricted Funds. Donations for purposes restricted by the wishes of the donor are taken to Restricted Funds where these wishes are legally binding on the Governors. Donations and legacies are accounted for as and when enlitlement arises, the amounl can be reliably quantified and the economic benefit to the School is considered probable. Inveslmenl income is credited to the Statement of Financial Aclivities on a receivable basis. The income from the investment of the endowment funds forms the restricted funds of the school and is spent in accordance with Ihe scheme. Resources 6xp•nded Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities. The cost headings comprise expenditure, including staff costs and depreciation. directly attributable to the activity. Where costs cannot be directly attributed they have been allocated to activities on a fair and reasonable basis. Support costs comprise all services including an appropriate proportion of general overheads specifically identrfied as wholly or mainly incurred in support of the direct charitable expenditure. The irrecoverable VAT element is included with the item of expense to which it relates. 20 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y 2024 Accounting pollcies (continued) Tangible fixed assets and depreciation Tangible assets are stated al cost (or deemed cost for land and buildings held at valuation at the date of transition to FRS 102) less accumulated depreciation. Individual purchase of fixed assets costing less than £1,000 are not capitalised but charged as expenditure in Ihe year. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.. Buildings Fixtures, fittings, plant & equipment Computers Motor vehicles over 20 or 50 years on a straight line basis. over 3 to 5 years on a slraight line basis. over 3 years on a straight-line basis. over 5 years on a straight line basis. Investments Investments are staled at market value less any provision for permanent diminution in value. Market value is taken to be the middle market price ruling al the balance sheet date. Gains and losses on investment assets realised and unrealised are taken to the Statement of Financial Activities. Stock Stocks are stated al Ihe lower of cost and net realisable value. Cost is determined on a "first in, first out basis. Net realisable value is determined on the basis of estimated value or expected selling price less further costs to be incurred to disposal. Penslons The School participates in a mulli-employer defined benefits pension scheme, the Teachers, Pension Scheme (England and Wales) ("the Scheme"), for its leaching staff at rates set by the scheme actuary and advised to the Board by the Scheme Administrator. The pension liability is the responsibility of the Scheme. As a result it is not possible to identify the assets and liabilities of the scheme that are atlribulable to Ihe school. Accordingly, under FRS 102 the scheme is accounted for as rf it were defined contribution scheme. Accumulated funds General funds are available for use at the discrelion of the Governing Body in furtherance of the general objectives of the School. Endowment funds are capilal funds where there is no power to convert the capital into income and which therefore represent the permanent capital of the School. Changes in the market values of the investments and other assets held within these funds are debited or credited to the capital of those funds and the movements, purposes and uses of Ihese funds are sel out in the notes to the accounts. Where applicable the income arising from these endowmenl funds has been included in general funds or restricted funds as appropriate. Restricted funds are funds subject to speGific restrictive conditions imposed by the donors or by the purpose of the appeal. These reslricted funds also include the Income Funds of the various permanent endowments where Ihe income is earmarked for specific purposes. The purpose and use of the restricted funds is set out in the notes to the accounts. All income and expenditure is shown in the Statement of Financial Activities. 21 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y 2024 Accounting policles (contlnued) 1.10 Operating Leases Rentals applicable to operating leases where substantially all of the risks and rewards of ownership remain with the lessor are charged lo the Statement of Financial Activities on a straight line over the term of the lease. 1.11 Flnanclal instruments Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost with the exception of investments which are held at fair value. Financial assets held ai amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash al bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions. Derivatives. including interest rale swaps, are not basic financlal inslruments. Derivatives are initially recognised al fair value on the date a derivative contract is entered inlo and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in the Statement of Financial Activities, unless they are included in a hedging arrangement. 1.12 Crltlcal accountlng Judgements and key sources of estlmatlon uncertalnty In the application of the accounting policies, Trustees are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assufflptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods. In the view of the Governors, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely lo result in a material adjustment lo their carrying amounts in the next financial year. Investment and endowment Incom• Unrestricted RestrScted funds funds £'ooo £'ooo Total 2024 £'ooo Total 2023 £'ooo Donations and legacies Income shares in COIF Interest receivable 39 38 27 14 77 27 185 120 27 209 171 210 79 289 356 22 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y 2024 Charitable activities - fees receivable Total 2024 £'ooo Total 2023 £'ooo School fees The school's fee income comprised.. Gross fees Le5s'. Total bursaries, grants and allowances 19,480 1,801 17,775 1,742 17,679 16,033 Add: Bursaries and scholarships paid for by Restricted Funds 40 50 School fees 16,083 Bursaries and scholarships paid for by Restricted Fund: Governors, bursaries and scholarships 40 50 40 50 During the year 54 pupils benefited from bursary support totalling £626,330 (2023.. 61 pupils received £640,274). Of this amount £12,000 was provided by restricted and permanent capital funds (2023.. £21,600). 19 of these pupils also receive scholarship support (2023: 26). In addition, Governors, scholarships (not means le5ted) and music scholarships were given to 122 and 34 pupils, at a cost of £185,889 and £36,668 respectively (2023: 129 and 40 pupils, at a cost of £184,543 and £39,788 respectively). 23 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y 2024 Income from Subsidiary Trading ActivltSes The School has a 100 /0 interest in its trading subsidiary King's School Macclesfield Limited. King's School Macclesfield Limited's principal activity continues to be that of promoting commercial activities which use the School's assets to generate income from lettings and other activities. Its trading results for the year, as extracted from the audited financial statements, are summarised below.. 2024 £'ooo 307 2023 £'ooo 241 Turnover Cost of sales {146) {120) Gross profiV(loss) 161 121 Administration expenses 11) (85) Operating profitl{loss 159 36 Interest receivable ProfiV(loss) for the year 160 36 Gift aid payment to The King's School Macclesfield (36) Shareholders, Funds 170 46 Anclllary tradlng Income 2024 £'ooo 2023 £'ooo Dining Hall 592 530 592 530 Other Incoming resources Unrestrlcted Restrlcted funds funds £'ooo £'ooo 11 Total 2024 £'ooo 11 Tolal 2023 £'ooo 14 Fundraising events Letlings income 11 15 24 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y 2024 Analysls of expenditure Staff costs £'ooo Other costs £'ooo Grant funding £'ooo Total 2024 £'ooo Total 2023 £'ooo Depreciation £'ooo Costs of generating funds King's School Macclesfield Fundraising Ancillary trading costs Financing costs 144 147 205 838 784 838 784 779 1,258 Total cost of generating funds 144 1,631 1,775 2,248 Charltable expenditure Education and grant maklng Teaching Welfare Premises Support costs (note a) 8,924 55 624 1,193 236 1,440 993 41 10,158 291 3,648 2,213 9,332 249 3,537 1,425 1,584 27 Total charltable expendlture 10,796 3,862 41 16,310 14,543 Total expended 1,611 41 18,085 16,791 Included within finance costs is £749,477 (2023.. £987,570) of interest on bank loans and overdrafts, and £nil interest on retention. During the year, the provision against doublful fee debtors was decreased by £617 {2023.' £35,481). a) Governance costs Included In support costs 2024 £'ooo 30 121 2023 £'ooo 31 77 Accountancy charges Other governance costs 151 108 Governance costs includes payments to the auditors of £29,760 (2023.- £30,680) for audit fees. 25 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y 2024 Governors Eight Governors (2023.. Ten) who held office for at least part of the year had children enrolled at the school during the year. The children attend the school on the same terms as Ihe other pupils. None of the Governors (or any persons connected with them) received any remuneration or other benefits from the School or from any connected body during this year or the previous year, except as set out in note 24.. Related parties. No governors were reimbursed expenses during this year (2023.. none). Staff costs The average number of employees during the year Number 2024 Number 2023 Teaching Welfare Premises Support 114 112 34 110 34 104 260 252 The full time equivalent number of employees during the year was 217 (2023: 209). The school shop and catering operation of the school are outsourced. The aggregate payroll costs for the year were as follows.. 2024 £'ooo 2023 £'ooo Wages and salaries Social security costs Other pension costs Apprenticeship Levy 8,829 827 1,609 27 8,137 752 1,346 23 11,292 10,258 2024 £'ooo 2023 £'ooo Aggregale employee benefits of key management personnel 1.083 1,015 26 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y 2024 Staff costs (continued) 2024 2023 Number of higher paid employees in bands of.. £60,00110 £70,000 £70,001 to £80,000 £80,001 to £90,000 £90,001 to £100,000 £170.001 to £180,000 Of the employees whose ernoluments exceed £60,000, 8 {2023.'6) have retirement benefits accruing under defined benefit pension schemes and 1 (2023.. 1) has benefits accruing under defined contribution schemes for which the contributions amounted to £68,710 {2023: £40,978). During the year there were redundancy or termination payments which amounted to £4.192 (2023: £nil>. All staff costs are met from unrestricted funds. 10. Tangible Flxed Assets - Consolldated and School Flxtures, flttings, Land & plant & Bulldings equipment £'ooo £'ooo Motor vehicles £'ooo Computers £'ooo Total £'ooo Cost (or deemed cost) At 1 August 2023 Additions Disposals 64,213 589 565 1,247 52 66 716 46 68 439 42 45 66,615 729 744 At 31 July 2024 64,237 694 436 Depreclatlon At 1 August 2023 On disposals Charge for the year 4,046 837 {66) 175 587 (681 95 373 (45) 27 5,843 (179> 1,611 1,314 At 31 July 2024 946 614 355 Net book value At 31 July 2024 287 80 81 59.325 At 31 July 2023 60.167 410 130 66 60,773 The land and buildings were held at a valuation until transition to FRS102 when the value of the land and buildings was taken as deemed cost. 27 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y 2024 Flxad asset investment Consolidated £'ooo School £'ooo Cost or valuation.. Market value at 1 August 2023 Additions Disposals Change in value in the year 710 720 56 56 Market value at 31 July 2024 766 776 The investment assets held at the end of the year are.. £'ooo £'ooo Income shares in COIF Charifund Units Trading subsidiary Ground Rents 542 223 542 223 10 766 776 £'ooo £'ooo Historical cost.. At 31 July 2024 100 110 Al 31 July 2023 100 110 The above historical cost value is made up of £1.000 of unrestricted fund inveslments, £75,000 of restricted fund investments, £24,000 of endowment fund investments and £10,000 in shares in the trading company. On 1 March 2022, a new subsidiary, King's School Macclesfield Limited, was incorporated. During the year ended 31 July 2024, trading was undertaken by this subsidiary. 12. Debtors Consolidated School 2024 £'ooo 2023 £'ooo 2024 £'ooo 2023 £'ooo Fees Other debtors Prepayments and accrued income 76 57 10 68 102 10 76 32 10 68 91 10 143 180 118 169 All debtors are due within one year. Within fee debtors are gross fees in respect of Summer 2024 and earlier terms of £117,471 (2023.. £110,530). A provision of £41,652 (2023.. £42,269) against this amount has been provided for in respect of doubtful debts. 28 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y 2024 Creditors: amounts falling due wlthln one year: Consolidated School 2024 £'ooo 2023 £'ooo 2024 £'ooo 2023 £'ooo Bank loan Trade creditors Intercompany creditors Taxes and social security costs Other creditors Accruals Deferred income 639 114 800 299 639 113 800 299 196 882 980 6,700 196 895 862 5,585 196 882 980 6,700 196 895 862 5.585 9,511 Creditors: amounts falllng due after more than one year 8,637 8,647 14. Consolldated 2024 2023 £'ooo £'ooo School 2024 £'ooo 2023 £'ooo Bank loan Other creditors Deferred income 6,726 10,600 6,726 10.600 3,297 1,340 3,297 1,340 10,023 11,940 10,023 11,940 During the year, the School repaid £200,000 of contracted repayments and an additional £1.2 million repayments under the facility agreement with AIB Group (UK) Limited (AIB), reducing the balance outstanding to £10 million. On 28 November 2023, the School entered into a 15 year Term Facility of £10 million wilh Nalwest Bank plc (the "Bank") to repay the AIB facility in full. The security that AIB held over certain land and buildings was transferred to the Bank. At the same time, the School entered inlo a 5 year Revolving Credit Facility ('RCF"} for £5 million with the Bank. The funds will be drawn down as the school requires them for future construction projects and working capital requirements. Any balance remaining on the RCF at the end of 5 years will be added lo the Term Facility. During the year, Ihe School repaid a further £444,444 of contracted repayments and an addilional £2 million repayment for the 15 year Term Facility of £10 million with Natwest Bank plc (the "Bank"). reducing the balance outstanding to £7.6 million. 2024 £'ooo 2023 £'ooo Loan maturity analysis Debt due in one year or less In more than one year but nol rnore than two years In more than two years but nol rnore than five years In more than five years 639 636 1,928 4,162 800 800 9,800 7,365 11,400 Included in liabililies falling due within one year 639 800 6,726 10,600 29 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y 2024 Fees recelved In advance - School 2024 £'ooo 2023 £'ooo Deferred income is included within.. Creditors due within one year Creditors due after more Ihan one year 6,700 3,297 5,585 1,340 9,998 6,925 Total deferred income al 1 August 2023 Amounts received in year Amounts credited to statement of financial activities 6,925 9,998 6,925 4,738 6,925 4,738 Total deferred income at 31 July 2024 9,998 6,925 Parents may enter into an agreement lo pay the school up to the equivalent of two year's tuition fees in advance. The money may be returned subject to specific conditions on the receipt of one term's notice. Assuming pupils will remain in Ihe school, advance fees will be applied as follows: 2024 £'ooo 2023 £'ooo Within one year Wilhin one to five years 6,700 5,585 1,340 9,998 6,925 16. Flnanclal Instruments- Consolldated 2024 £'ooo 2023 £'ooo Financial assets measured at amortised cost la) 7,828 6,662 Financial assets measured at fair value (b) Financial liabilities measured at amortised cost (c) 776 720 995 1,194 Net financial (liabilities)lassets measured at amortised cost 6,833 5,468 {2) Financial assets include cash, trade and fee debtors, other deblors and accrued income {b) Financial assets held al fair value include assets held as investments {c) Financial liabilities include deposits, trade creditors, and other creditors 30 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y 2024 17. Pension and other post-retirement benefit commitments The School participates in the Teachers, Pension Scheme {"the TPS'I for its teaching Staff. The pension charge for the year includes contributions payable to the TPS of £1,361,070 {2023.' £1,190,112) and at the year-end £nil (2023 - £ nil) 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 las 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. Retiremenl and other pension benefils are paid by public funds provided by Parliament. The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary's Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2020 and the Valualion Report, which was published in October 2023. Following the Mccloud judgement, Ihe remedy proposed that when benefits become payable, eligible members can select to receive them from either Ihe reformed or legacy schemes for the period 1 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 have valued the 'greater value, benefits for groups of relevant members. The valuation confirmed that the employer contribulion rate for the TPS would increase from 23.60/0 to 28.60/0 from 1 April 2024. Employers are also required lo pay a scheme administration levy of 0.080/0 giving a total employer contribution rate of 28.68 %. The school also contributes lo individual personal pension schemes at rate5 of between 4 % and 14.10/0 of pensionable pay. These are defined contribution schemes. The cost for the year represents the school's contributions to these schemes of £245,750 (2023: £155,230>. At the year-end £nil was accrued in respect of these schemes. 18. Endowment funds- Consolidated and School On 6th April 2009, the Charity Commission for England & Wales granted a scheme {'the scheme,) to effect a uniting direction of the subsidiary charities and to create two new subsidiary charilies to be known as The King's School in Macclesfield Horsfield Bursary Fund ('Horsfield Bursary Fund'l and the King's School in Macclesfield Brocklehurst Scholarship Fund ('Brocklehurst Scholarship Fund,). The income from the inveslment of the endowment funds form5 the restricted funds of the school and is spent in accordance with the scheme. Movement in funds Balance a11 Balance August Incomlng Resources Investments at 31 July 2023 resources expended gainsllosses 2024 £'ooo £'ooo £'ooo £'ooo £'ooo Permanent endowments Horsfield Bursary Fund Brocklehurst Scholarship Fund 392 111 30 422 119 503 38 541 31 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y 2024 19. Restricted funds- Consolldated and School The restricted funds of the school comprise the following unexpended income derived from the permanent endowed assets of the school held on Irusts to be applied for specific purposes. On 1 st April 2011 the associated charity known as The King's School Development Trust was brought into the restricted funds of the school following a merger of the two charities. During the year, the Governors reviewed the level of unexpended income held and approved the expenditure of part of this amount by donating £41,000 (2023.. £51,000) to the main School charity to provide bursaries, scholarships and prizes to pupils at the School. At the year end, unexpended income was £612,000 (2023.. £552,000). Movement In funds Balance a11 August 2023 Balance at31 July 2024 £'ooo Incoming Resources Investments resources eXP6nded galnsllosses Transfers £'ooo £'ooo £'ooo £'ooo £'ooo Horsfield Bursary Fund Brocklehursl Scholarship & Other Prize Funds Quincentenary Bursary Fund Bursary & Scholarship Fund 11 22 23 342 63 {19) 389 188 12 114) 15 201 552 90 47 18 613 20. Unrestrlcted funds Balance at1 August Incomlng Resources 2023 resources expended Galn on sale of Transfers assets Balance at31 July 2024 £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo Unrestricted funds - School 47,285 18,521 (17,891) 36 47.950 Unrestricted funds- trading company 36 307 (147) {36) 160 Consolidated unrestricted funds 47,321 18,828 (18,038) 48,111 32 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y 2024 21. Analysis of net assets between funds - Consolidated Unrestricted funds Restricted Endowment funds Funds Total 2024 £'ooo £'ooo £'ooo £'ooo Fund balances as at 31 July 2024 are represenled by: Tangible fixed assets Investments Current assets Creditors.. amounts falling due within one year Creditors: amounts falling due after one year 59,325 59,325 766 8,708 (9,511) 224 389 541 8,319 (9,511) (10,023) (10,023) 48,111 613 541 49,265 Unrestrlcted funds Restrictod Endowment funds Funds Total 2023 £'ooo £'ooo £'ooo £'ooo Fund balances as at 31 July 2023 are represented by.. Tangible fixed assets Investments Current assets Creditors.. amounts falling due within one year Creditors.. amounts falling due after more than one year 60,773 60,773 710 7,470 (9,901) 205 347 504 7,123 (9,901) {10,676) {10.676) 552 504 48,375 22. Capltal commitments - Consolidated and School At 31 July 2024 the School had no capital commitments12023'. £nil). 23. Operatlng lease commltments - Consolidated and School The School had operating lease commitmenls at the year end Operating leases which expire: 2024 £'ooo 2023 £'ooo Within one year Within two to five years More than five years 32 32 41 44 Lease payments recognised as expense in year 33 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y 2024 24. Related partles On 7 December 2018, Mr J Hinds was elected as a Governor. Mr Hinds is a regional director in the Manchester office of Savills plc. Savills plc are one of the advisors appointed by the School to assist on the 2020 project. This appointment took place before Mr Hinds joined the Governing Body. During the year the School has paid Savills plc a total of £23,098 (2023.. £12,600) {inc VATJ in respect of ils services to the School. There were no other related party transactions. 34 THE FOUNDATION OF SIR JOHN PERCYVALE IN MACCLESFIELD OF 1502, RE-FOUNDED BY KING EDWARD VI IN 1552 KNOWN AS THE KING'S SCHOOL IN MACCLESFIELD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y 2024 25. Statement of Flnancial Activities- Comparative figures by fund - type Unrestricted Restricted Endowment Funds Funds Funds £'ooo £'ooo £'ooo Tolal 2023 £'ooo Notes Income and endowments from: Donations and legacies Investment income Activities for generating funds Kings's School Macclestield 81 205 241 39 31 120 236 241 Charitable acllvlties: School fees Ancillary trading income Other incomlng resources 16.083 530 16,083 530 15 14 Total Incoming resources 17,141 84 17,225 Expendlture on: Ralslng funds King's School Macclesfield Costs of fundraising Ancillary trading costs Financing costs 779 779 1,258 2,043 2,043 Charitable activities Education and grant making 14,692 56 14,748 Tolal resources oxpended 50 16,791 Not incomlng resources from operations before transfers and Investmenl galn8 28 434 Gainsl(LossesJ on Investment assets Gain on disposal of land and buildings Transfer be￿een funds (11) (10) (21) 14 14 Net movement in funds 420 {10) 413 Fund balances at 1 August 2022 46,901 549 513 47,963 Fund balances at 31 July 2023 47,321 552 503 48,376 35