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2024-08-31-accounts

THE INDEPENDENT EDUCATIONAL

ASSOCIATION LIMITED

Company Number 01222329 Charity Number 270156

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

THE INDEPENDENT EDUCATIONAL ASSOCIATION LIMITED

CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended 31 August 2024

CONTENTS

CONTENTS
Page
Company Information 1
Report of the Trustees 2
Report of the Auditor 11
Consolidated Statement of Financial Activities 14
Consolidated Balance Sheet 15
Company Balance Sheet 16
Consolidated Statement of Cash Flow 17
Notes to the Consolidated Statement of Cash Flow 18
Notes to the Consolidated Financial Statements 19 - 44

The Independent Educational Association Limited

Company Information For the year ended 31 August 2024

REFERENCE AND ADMINISTRATIVE INFORMATION

The Independent Educational Association Limited ("the Association") was incorporated on the 8 August 1975 as a company limited by guarantee and not having a share capital, with registration number 1222329. On 8 December 1975 it was also registered as a charity under the Charities Act 1960 with the charity number 270156. The Charity’s principal address and registered office is at Earsby Street, London, W14 8SH. The Association has prepared consolidated financial statements to include the activities of St James Enterprises Limited, incorporated on 16 January 2018, as a subsidiary of the Association and The Most Honourable and Loyal Society of Ancient Britons (Welsh Girls’ School) now known as St. David’s School (St. David’s), and its trading subsidiary St David’s Enterprises Limited on the basis that the Association and St. David’s are being managed on a unified basis with common trustees.

Trustees and Directors

The trustees of the Association, known as Governors, are also the directors of the company for the purposes of company law, the Board being a self-appointing body. During the year and up to the date of approval of the financial statements they were:

Aatif Hassan Annabel Lubikowski Jeremy Sinclair (Chairman) Hugh Venables Jerome Webb (Retired 31 August 2024) Michael Harper (Resigned 5 December 2024) Helen de Mattos

Key Executives and Professional Advisers

The Head teachers and the Schools’ Addresses

Mr D Brazier St James Senior Boys’ School, Church Road, Ashford, TW15 3DZ (Retired 31 August 2024)

Ms E Bell St James Senior Girls’ School, Earsby Street, London, W14 8SH Mrs H Wyatt St James Preparatory School, Earsby Street, London W14 8SH

Chief Operating Officer & Company Secretary: Mr W Wyatt

Auditor Solicitors HaysMac LLP Veale Wasbrough Vizards 10 Queen St. Place Orchard Court LONDON Orchard Lane EC4R 1AG Bristol BS1 5WS

Principal Bankers Investment Advisers Lloyds Bank plc J. M. Finn & Co. 67 Old Brompton Road 4 Coleman Street London SW7 3JX London EC2R 5TA

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The Independent Educational Association Limited

Annual Report of the Trustees For the year ended 31 August 2024

The Board of Trustees present their annual report for the year ended 31 August 2024.

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Charitable Objects

The objects for which the Association is established (as set out in its Articles of Association) are to promote the advancement of education of children and young persons and in connection therewith to establish and conduct in any part of the world a school or schools to give instruction in all branches of education including the preparation of pupils to sit for public examinations whether academic, professional or otherwise.

Aims and Intended Impact

Within these Objects, the Association started the St James Independent Schools in January 1975 with the aim of providing a first-class independent education, through strong academic tuition, awareness of spiritual values and developing wider sporting, artistic and social skills in all pupils. This is intended to provide an environment where each pupil can begin to realise his or her own potential, thus helping to build self-confidence and self-esteem in preparation for a happy and fulfilling life contributing to the good of the wider community.

Objectives for the Year

The focus has been on the continued achievement and enhancement of academic standards throughout the schools while endeavouring to meet the individual requirements of the minority with special educational needs. Striking the right balance between these two objectives should ensure that all pupils have the opportunity of working to achieve their full potential. The Trustees wish to increase pupil numbers at each school so that there are full classes, with two form entry at the Prep and Senior Girls’ School and three form entry and the Senior Boys’ School.

Strategies to Achieve the Year’s Objectives

The local boards of governors are undertaking a complete review of the overall strategy. These include an on-going review and where necessary updating of the schools’ academic syllabuses, an exercise in which the staff are fully involved. Increased attention is also being given to staff training and development. We remain open to opportunities to extend the schools’ already great range of non-academic activities by promoting excellence in sports and openair pursuits as well as developing social skills. The schools have increased their marketing activity to better reach their target market.

Principal Activities of the Year

The Association provides education through the St James Schools: from the ages of 4 to 18 at Earsby Street for prep boys and girls and senior girls, and at Ashford for senior boys. The Association acts in an advisory capacity for a number of schools with common ethics and practices worldwide. The Association finished the year with 765 (2023: 789) pupils. From 1 September 2019 the Association expanded the provision of education through the new Nursery facilities at Earsby Street. At the year-end there were 30 pupils in the nursery department (2023:25).

Grant-making Policy

This year, the value of scholarships, grants and prizes made to pupils out of restricted funds was £55,320 (2023: £76,200). In addition, a further £873,053 (2023: £957,761) of bursaries and scholarships were funded from unrestricted reserves. All bursary awards are made on the basis of financial need, and all are means tested. Further fee remissions may be made where the policy is to relieve hardship and the pupil’s education and future prospects would be at risk without such support.

BUSINESS REVIEW

The Trustees present the consolidated financial results of IEAL incorporating the results of St David’s School and its trading subsidiary St David’s Enterprises Limited and those of St James Enterprises Limited, incorporated on 16 January 2018, as a trading subsidiary of the Association which began trading in September 2019.

This has been another rewarding year for the charities and the group. The Trustees, the majority of whom are common to both charities, are pleased with the group’s development and progress.

During the year we have maintained good academic achievements. Despite the decrease in average pupil numbers reported above, the nursery expanded, and St James is seeking to consolidate and grow its overall pupil numbers in future years.

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The Independent Educational Association Limited

Annual Report of the Trustees For the year ended 31 August 2024

BUSINESS REVIEW (Continued)

Together with competitive fee rates and sound financial management, we aim to produce an operating surplus year-on-year.

An ongoing review of debt management procedures continues to produce a significantly improved collection rate of current debt and a reduction in overdue balances. Subsidiary company results contributed a surplus of £58,271 to the overall results compared with £41,076 in the previous year.

In October 2020 the IEAL Pension Scheme transferred to Citrus Pension Plan, a non-for-profit master trust. The aim was to improve the professional management of the scheme and reduce management and administration costs. Contributions necessary to make up for the deficit in the Scheme were £466,000 for the year to 31 August 2024 but ended in January 2025. The last actuarial valuation for the IEAL Pension Scheme was on 31 March 2021.

The group will continue to seek to meet the AGBIS best practice target by generating a 10% cash surplus. This is essential for long term cash flow stability and building reserves to a level that ensures sustainable development of the schools.

Developments

Prep School

The opening of the new Community Café is an exciting project and we are already working towards a programme of activities that will be offered in the Café in the mornings and afternoons for current parents. These will be opened up to the public in the future. Ideas include art classes, a monthly book club, NCT talks on parenting, mini concerts for the elderly with morning coffee, charity fundraising cake sales and much more. We are also planning to have a ‘busking piano’ for the musically minded to play when they come into the courtyard. The parents appreciate having somewhere to do homework with their children after school when they wait for older siblings and it has already become a popular hub for parents to meet together.

The iPads are proving to be a valuable teaching and learning aid and the parents and pupils have embraced the new technology happily. The school now supports ‘Under One Sky’ which is a charity that cares for the homeless in London and the children have been enthusiastically donating warm winter clothes and sleeping bags to those less fortunate than themselves. Having a cause that is close to home and teaches the children how fortunate they are is appreciated by parents. For the third year in a row, the 11+ cohort have secured interviews at a number of highly-selective schools. This year, we have had pupils entered for the final round of interviews at schools including Emmanuel, St Paul’s Girls, NHEHS, City Girls’ and Latymer Upper. We await the results. Last year, the majority of girls chose to stay at St James but sadly the parents of the boys said they found the journey too far. Academic standards remain high and our excellent SENDCO is supporting the pupils who have specific needs well.

The ISI inspection at the end of January celebrates the effectiveness of governors and their oversight of the school. The report notes the ‘deeply rooted culture of respect towards others…. and the robust and effective safeguarding culture.’ All standards were met and the inspectors praised the pause and the fact that it supports pupils’ receptiveness to learning and their feeling of wellbeing. For the past year, the school has been working towards a nationally recognised Wellbeing Award and we hope to be accredited before the end of this academic year. The English Speaking Board Exams have been re-introduced for Year 6 this year by Mrs Cook and they have given the pupils the perfect preparation for their exams and beyond. All pupils were either awarded a Merit or a Distinction and some gained perfect marks for their talks. This all bodes well for the future and we feel confident that we can ride the storm that is affecting independent schools at this current time.

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The Independent Educational Association Limited

Annual Report of the Trustees For the year ended 31 August 2024

Senior Girls’ School

The Senior Girls' School ISI Inspection at the start of 2024 and our overwhelmingly positive report demonstrated the many strengths of the School. Careers and Futures provision, the inclusive nature of the school, our community and ethos as well as pupil progress were celebrated by the Inspection Team.

2024 leavers achieved outstanding A Level Results. Achieving above national and independent school averages. GCSE Results were above national averages with some departments achieving significantly above Independent School averages.

From the start of the academic year a significant focus was placed on returning music to the heart of the school, with weekly assemblies revitalised to always including singing, school bands created, a new orchestra and choir in place and increased musical collaboration with the Senior Boys' School. This collaboration continued with discussions and debates in addition to the existing lecture series for senior pupils from both schools.

To celebrate the importance of fresh and nutritious food and building on the success of the GCSE in Food Nutrition and Preparation, the Leiths Extended Certificate in Professional Cookery (an equivalent to an A Level) was introduced in September 2024.

Student leadership was reinvigorated with a revised process extending opportunities to pupils in Years 10 and 11. Ensuring pupil voice is incorporated into wider areas of decision making has also led to plans for social spaces for Year 11 pupils for September 2024.

Senior Boys’ School

Our new creative curriculum has been further established in Year 7 and 8 where students in the Summer term were formally and successfully assessed on their Harmony projects. Our launch of the iPads has had a significant impact on the day-to-day teaching which has enabled the students to take more ownership of their own learning. The school’s Combined Cadet Force (CCF) continues to go from strength to strength. Most notably this year the unit entered the Nijmegen Marches as part of the 5000 strong British Military Contingent. St James is the first ever school CCF to enter and was awarded not only the team medal but also the award of the Best Army Cadet Unit, further developing our excellent reputation within the London District Cadets. The Climbing club continues to thrive making good use of our new climbing wall. Once again, in the Summer of 2024 12 students took part in our biannual Alps trip. All the students were able to summit a 4000-metre mountain, a significant achievement. Our joint school musical hosted at the Senior Boys was once again a huge success which demonstrated our skilled Music and Drama department. And then once again we have had significant success in the sports field with winning the U13 ISA National Badminton and being the U15 Middlesex Cup Winners in Cricket.

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The Independent Educational Association Limited

Annual Report of the Trustees For the year ended 31 August 2024

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

Operational Performance of the Schools

The Senior Girls attained excellent exam results. 100% (2023: 100%) A level passes with 91% (2023: 93%) at A* to C the GCSE pass rate was 94% (2023: 96.8%) with 53% at 9 to 7 (2023: 58%) and 94% (2023: 96.8%) 9 to 4 grades.

The Senior Boys achieved 99% (2023: 95%) A-level passes with 79% (2023: 66%) at A* to C; The GCSE pass rate was 96% (2023: 99.8%) with 96% (2023: 92.6%) at 9 to 4 grades.

The Prep School was pleased with the Year 6 11+ results. Deadline to accept offers is 7 March. Of the 19 pupils, they received 51 offers, including 13 to the Senior Girls’ School and 7 boys to the Senior Boys’ School, 3 to Godolphin & Latymer, 3 Latymer, 3 to Kew House School, 2 Queen's College. 2 St Paul's Boys and 3 to Emanuel and FHSS 4.

Fundraising Performance

The fund-raising and development office works for all three schools. It co-ordinates the activities of:

The fund-raising department raised £43,390 (2023: £93,749) from regular activities during the year. The Development office is coordinating the activities of The Friends of St James and the Alumni in addition to fundraising for Bursary Funds.

FINANCIAL REVIEW AND RESULTS FOR YEAR

The Association’s net income for the year was £1,284,810 (2023:net expenditure £255,835). Net income before gains were £798,686 (2023: £807,829) a reduction year on year as inflationary pressures grew across the Association’s cost base. Net expenditure included the FRS102 pension liability movement for the year in respect of the IEAL Pension Scheme £209,000 gain (2023: £1,079,000 loss), the Independent Schools’ Pension Scheme deficit £6,605 (2023 £10,444 gain) and investment gains of £283,729 (2023: gains £4,892).

There was a 3.3% year on year increase in total gross fee income before bursaries and charging for activities and coaches £18,147,309 (2023: £17,580,032).

The Association had net current assets at 31 August 2024 of £3,804,568 (2023: £1,555,341). This includes fee deposit liabilities of £2,545,256 (2023: £2,892,127). These liabilities are disclosed as due within one year as pupils may leave at any time, but with a reasonable stable pupil roll currently, the probability of the liability becoming repayable in the short term is highly unlikely.

At the year-end fee debtors were £482,538 (2023: £350,064). The majority of parents paid on time and for those parents who are struggling, the schools have engaged fully and assisted them by agreeing payment plans, payment holidays or by providing mean-tested hardship funding.

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The Independent Educational Association Limited

Annual Report of the Trustees For the year ended 31 August 2024

Key Performance Indicators

We have to be aware of staff-pupil ratios and the proportion of fee income spent on salaries and salary-related expenses such as national insurance, pensions funding and training costs.

2024 2023
Employment costs compared to fee income 61% 62%
Pupils (Average number throughout the year) 765 794
Teaching staff (FTE) 95.9 99
Staff-Pupil ratio 1:8.0 1:8.0

PUPIL RETENTION

The school endeavours to keep its fees as low as possible. It also offers generous bursary assistance, and competitive fees.

GOING CONCERN

The Trustees have sought to minimise the ongoing financial pressures on the charity by prioritising key areas of risk, bad debt, cash flow and pupil retention. This, combined with the continued focus on reducing the cost base of each school support the Board’s view that the Association has adequate resources to continue its activities for the foreseeable future and therefore continue as a going concern. In summary, the revised financial budget and forecast for the three years 2024/25, 2025/26 and 2026/27, is cautious and prudent. We have openly visited challenging scenarios and have action plans in place should the need arise. We will be able to operate without selling any part of our extensive property portfolio and will be able to meet all our financial liabilities showing that we remain a going concern.

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The Independent Educational Association Limited

Annual Report of the Trustees For the year ended 31 August 2024

FUTURE PLANS

We are pleased with the quality of the young men and women coming out of our schools to play their part in society. We are delighted that many wish to educate their own children at a St James school and quite a number have come back to teach in the schools. We wish to grow so that more can share in what we have to offer.

The Board’s current plans include the following:

RISK MANAGEMENT

The Board of Trustees is responsible for identifying the key risks faced by the School and for ensuring these risks are managed. Each term the Board of Trustees identify and assess risks and implement controls to mitigate against these. The major risks include the removal of business rates relief, national insurance increase, the removal of the VAT exemption on independent school fees and reduction in pupil numbers; all primarily due to the recent political regime change. These are being managed by cutting costs wherever possible and streamlining the school’s functions. The school is investing in marketing to improve pupil retention and recruitment. Increased competition from other schools remains a risk. The school fees remain competitive. The trustees and governors continue to review the situation.

Risks are managed and monitored by the risk register which are grouped into the following categories:

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The Independent Educational Association Limited

Annual Report of the Trustees For the year ended 31 August 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT

Structure and Governing Document

The Association, as well as being a registered charity, is a company limited by guarantee. In the event of liquidation, the guarantors who are the members and governors of the company will be liable to contribute £1 each as set out in the governing document of the Association which is its Articles of Association adopted by the members of the Association on 27 November 2014. This guarantee totals £10.

Governing Bodies

The structure of the Charity consists of a governing body of Trustees for the St James Schools. To better support the schools, the Trustees are assisted by two Boards of Governors (one for each site) and the Heads and the Chief Operating Officer.

Trustees

Details of Trustees are given on page 1. The Trustees are also the Company Directors. The founder of the Association directed the Trustees to raise funds for launching schools, endowing them and otherwise providing for them. Individual schools should have their own managers appointed by the Trustees who are free to manage the schools subject only to their conforming to the aims of the Association and to any financial control necessary to preserve its funds. The Trustees delegate the administration and co-ordination of financial and operational matters of the Schools to the Chief Operating Officer.

Recruitment and Training of Governors

New Governors and Trustees are invited to serve by the trustees. New Governors are inducted into the workings of the Charity and its schools, including any Board Policy and Procedures. All Governors receive New Governors Training provided by Chief Operating Officer and regular Safeguarding training.

Organisational Management

The Trustees of the Charity, are legally responsible for the overall management and control of the St James Schools and associated activities including overall financial and operational control of the schools and meet at least once a term plus an annual “Away Day”. Development and educational performance of the schools are delegated to the Board of Governors, Olympia and Board of Governors, Ashford. The principal committees are the Safeguarding Committee, Education Committee and the Health & Safety Committee which meet each term.

The day-to-day running of the schools is delegated to the Chief Operating Officer and the respective Head Teachers (supported by their Senior Management Teams).

The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to comparisons with other independent schools to ensure that the Association remains sensitive to the broader issues of pay and employment conditions elsewhere.

Delivery of the Association’s charitable vision and purpose is primarily dependent on our key management personnel and staff costs are the largest single element of our charitable expenditure.

Relationships

The Association actively supports the attainment of the highest standards in the Independent Schools sector, partly through senior staff participating in the inspection of schools, and through promoting links and networking with other schools by attendance at Seminars and events. We also endeavour to widen public access to the schooling we can provide, the facilities and to awaken in our pupils an awareness of the social context of the all-round education they receive.

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The Independent Educational Association Limited

Annual Report of the Trustees For the year ended 31 August 2024 (continued)

Reserves Policy

Our policy is to accumulate sufficient reserves to acquire and maintain high quality premises for all our schools with scope for further development. Major property moves and developments have necessarily depleted our reserves. Our policy is to rebuild them by further improving our cost controls and generating the operating surpluses outlined above. At 31 August 2024 the Association had consolidated reserves of £29,221,244 (2023: £27,936,434) of which £2,439,922 (2023: £2,128,833) represents restricted funds and £27,348,621 (2023: £26,947,870) represents unrestricted funds. There are no Free Reserves which are comprised of undesignated and unrestricted funds net of fixed assets (2023 £Nil). As shown in Note 11 the ISPS Pension deficit reserve and the IEAL Pension reserve have been shown separately within unrestricted funds. There are no other designated funds as at 31 August 2024. Accounting for the Defined Benefit Pension liability in accordance with FRS102 has resulted in a negative Pension Reserve of £398,000 (2023: £964,000).

As a result of the Trustees having taken advice from the scheme actuary in respect of the funding of the negative Pension Reserve shown in the Balance Sheet the annual deficit contribution payment for the year ended 31 August 2024 was £459,000 (2023: £466,000). The ISPS pension reserve accounted for under FRS102 has resulted in a negative reserve of £169,699 (2023: £176,269). Under the current funding schedule, the annual deficit contribution payment for 2020 was agreed at approximately £23k, thereafter rising at 3% per annum until 2030. The amounts of restrictive and unrestrictive funds that can only be realised by the disposing of tangible fixed assets or programme related investments are shown in Note 12 Analysis of Net Assets between Funds.

Investment Powers & Policy

As its objective the Board aims to maximise the total investment return. The Association is not restricted as to its investment policy. The Trustees have instructed the Association’s Investment Advisors to invest in medium risk securities having regard to the differing requirements of the respective restricted or designated fund involved. The Board considers the performance of the investments in the year to be satisfactory.

PUBLIC BENEFIT

In setting the School’s objectives and planning its activities the Governors have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education. The Governors believe that the principal public benefit provided is in setting up and operating schools with the object of producing well rounded pupils with a comprehensive education aimed at developing the young men and women in our care physically, mentally, and spiritually, leaving them capable of entering fully and usefully into wider society. As a relatively recent foundation, the Association has not yet accumulated reserves sufficient to make significant numbers of free places available, as much of the funds given to it have been required to obtain and equip suitable buildings. During 2024 we continued to utilise the General Fund to support bursaries.

Bursary and other funding, Numbers assisted are 53 (2023: 57) at a total cost of £799,084 (2023: £839,850). Reasons for awards have included insufficient funds due to divorce, sudden loss of income, ill health, parent fatalities. All bursaries are means tested.

The Association has assisted in the foundation and development of a number of overseas schools, forming a worldwide family of schools, based on the same essential educational approach, offering guidance and teaching placements.

The senior schools have an active community service programme in which the pupils engage with the local community including state schools. At the very heart of the St James approach is the spirit of unity which naturally encourages the pupils to have regard to the needs of others, which necessarily includes those in less fortunate circumstances.

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The Independent Educational Association Limited

Annual Report of the Trustees For the year ended 31 August 2024 (continued)

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also directors of The Independent Educational Association Limited for the purposes of company law) are responsible for preparing the Annual Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITOR

On 18 November 2024 the charity’s auditor changed its name from haysmacintyre LLP to HaysMac LLP. HaysMac LLP was re- appointed as auditor to audit the financial statements for the year ended 31 August 2024.

This report, including the Strategic report, was approved by the Board of Governors of the Independent Educational Association Limited on 2 June 2025 and signed on its behalf by,

Jeremy Sinclair Chairman

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The Independent Educational Association Limited

Independent auditor’s report to the members of Independent Educational Association Limited

Opinion

We have audited the financial statements of Independent Educational Association Limited for the year ended 31 August 2024 which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Cash flows, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report of the Trustees. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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The Independent Educational Association Limited

Independent auditor’s report

to the members of Independent Educational Association Limited (continued)

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Annual Report of the Trustees (which incorporates the strategic report and the directors’ report).

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

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 10, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the regulatory requirements related to The Education (Independent Schools Standards) Regulations 2014. safeguarding regulations, health and safety requirements, GDPR, employment law and charity law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011, Statement of Recommended Practice (SORP 2019) and payroll taxes.

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The Independent Educational Association Limited

Independent auditor’s report

to the members of Independent Educational Association Limited (continued)

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in making accounting estimates and judgements. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Tracey Young (Senior Statutory Auditor) 10 Queen Street Place For and on behalf of HaysMac LLP, Statutory Auditor London EC4R 1AG Date: 4 June 2025

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The Independent Educational Association Limited Consolidated Statement of Financial Activities (Including Income and Expenditure Account) For the year ended 31 August 2024

Note
Income from:
Charitable activities
School fees
2
Other income
3
Other trading activities
Trading income
3
Other activities
3
Investments
Investment income
3
Voluntary sources
Donations and legacies
3
Other income
Sundry income
3
Total income
Expenditure on:
Raising funds
Fundraising costs
4
Investment management
4
Trading & lettings costs
4
Charitable activities
Schools and Grant making
4
Total expenditure
Net income before transfers and
investment gains
Gains/(losses) on investments
7
Net income before other
recognised gains and losses
Actuarial gain/(loss) – IEAL
13
Actuarial (loss)/gain – ISPS
13
Net movement in funds
Fund balances brought forward
Fund balances carried
forward
11		 Unrestricted
Funds
£
16,798,289
1,078,606
129,551
28,112
263,673
407,776
3,889
18,709,896
71,395
-
15,256
86,651
17,852,319
17,938,970
770,926
-
770,926
209,000
(6,605)
973,321
25,807,601
26,780,922		 Restricted
Funds
£
-
-
-
-
49,746
55,320
-
105,066
-
21,986
-
21,986
55,320
77,306
27,760
283,729
311,489
-
-
311,489
2,128,833
2,440,322		 Total Funds
2024
£
16,798,289
1,078,606
129,551
28,112
313,419
463,096
3,889
18,814,962
71,395
21,986
15,256
108,637
17,907,639
18,016,276
798,686
283,729
1,082,415
209,000
(6,605)
1,284,810
27,936,434
29,221,244		 Total Funds
2023
£
16,107,495
1,030,909
135,047
66,814
95,323
462,780
2,344
17,900,712
46,521
20,807
40,238
107,566
16,985,317
17,092,883
807,829
4,892
812,721
(1,079,000)
10,444
(255,835)
28,192,269
27,936,434

All amounts derive from continuing activities All gains or losses recognised in the year are included in the Statement of Financial Activities The notes on pages 19 to 44 form part of these financial statements

- 14 -

The Independent Educational Association Limited

Consolidated Balance Sheet as at 31 August 2024

Note
Fixed Assets
Tangible Assets
Freehold property
6
Motor vehicles
6
Laboratories and equipment
6
Investments
7
Current Assets
Stocks
8
Debtors
9
Cash at bank and in hand
Creditors: Amounts falling due
within one year
10(a)
Net Current Assets
Total Assets less Current
Liabilities
Long-term liabilities
Creditors payable after one year
ISPS Pension deficit liability
IEAL Defined Benefit Pension
liability
10(b)
13
13
Net Assets
The Funds of the Group:
Permanent Endowment
11
Restricted funds
11
Unrestricted funds
General reserve
11
ISPS Pension deficit reserve
11
IEAL Pension reserve
11
Total unrestricted funds
Total group funds
12		 2024
£
25,991,729
6,592
1,251,296
27,249,617
2,305,612
1,187
971,731
10,606,531
11,579,449
(7,774,881)
27,348,621
(169,699)
(398,000)		 2024
£
29,555,229
3,804,568
33,359,797
(3,570,854)
(169,699)
(398,000)
29,221,244
400
2,439,922
26,780,922
29,221,244		 2023
£
26,367,798
8,790
1,118,757
27,495,345
2,004,265
1,241
841,504
6,425,934
7,268,679
(5,713,338)
26,947,870
(176,269)
(964,000)		 2023
£
29,499,610
1,555,341
31,054,951
(1,978,248)
(176,269)
(964,000)
27,936,434
400
2,128,433
25,807,601
27,936,434

Approved by the Board and signed on its behalf on 2 June 2025

Jeremy Sinclair Chairman

Registered Company Number: 01222329 The notes on pages 19 to 44 form part of these financial statements

- 15 -

The Independent Educational Association Limited

Company Balance Sheet as at 31 August 2024

Note
Fixed Assets
Tangible Assets
Freehold property
6
Motor vehicles
6
Laboratories and equipment
6
Investments
7
Current Assets
Stocks
8
Debtors
9
Cash at bank and in hand
Creditors: Amounts falling due
within one year
10(a)
Net Current Assets
Total Assets less Current
Liabilities
Long-term liabilities
Creditors payable after one year
ISPS Pension deficit liability
IEAL Defined Benefit Pension
liability
10(b)
13
13
Net Assets
The Funds of the Charity:
Restricted funds
11
Unrestricted funds
General reserve
11
ISPS Pension deficit reserve
11
IEAL Pension reserve
11
Total unrestricted funds
Total charity funds
12		 2024
£
27,031,607
6,592
1,246,720
28,284,919
2,305,613
-
1,232,277
10,168,770
11,401,047
(7,776,402)
28,204,401
(169,699)
(398,000)		 2024
£
30,590,532
3,624,645
34,215,177
(3,570,854)
(169,699)
(398,000)
30,076,624
2,439,922
27,636,702
30,076,624		 2023
£
27,407,676
8,790
1,114,181
28,530,647
2,004,266
-
1,020,119
6,087,401
7,107,520
(5,729,376)
27,806,376
(176,269)
(964,000)		 2023
£
30,534,913
1,378,144
31,913,057
(1,978,248)
(176,269)
(964,000)
28,794,540
2,128,433
26,666,107
28,794,540

The surplus for the financial year dealt with in the financial statements of the parent company was £1,282,084 (2023: deficit £208,984).

Approved by the Board and signed on its behalf on 2 June 2025

Jeremy Sinclair Chairman

Registered Company Number: 01222329

The notes on pages 19 to 44 form part of these financial statements

- 16 -

The Independent Educational Association Limited

Consolidated Statement of Cash Flow For the year ended 31 August 2024

Cash flows from Operating
Activities (Note 1)
Net cash provided by operating
activities
Cash flows from investing
activities:
Interest received
Dividends received
Payments to acquire fixed assets
Payments to acquire investments
Receipts from sales of
investments
Net cash used in investing
activities
Cash flows from financing
activities:
Loan interest paid
Loans repaid
Net increase from new advance
fees less advance utilised (see
note 2)
Net cash used in financing
activities
Change in cash and cash
equivalents in the reporting period
Cash and cash equivalents at the
beginning of the period
Cash and cash equivalents at
the end of the reporting period
(Note 3)		 2024
£
263,673
49,746
(518,869)
(110,681)
93,063
(164,797)
(220,770)
4,538,089		 2024
£
251,143
(223,068)
4,152,522
4,180,597
6,425,934
10,606,531		 2023
£
55,116
40,207
(356,819)
(253,493)
230,669
(157,315)
(431,788)
-		 2023
£
1,231,461
(284,320)
(589,103)
358,038
6,067,896
6,425,934

- 17 -

The Independent Educational Association Limited

Notes to the Consolidated Statement of Cash Flow For the year ended 31 August 2024

1 Reconciliation of net income to net
cash flow from operating activities
Net income for the reporting period
Adjustments for:
Depreciation charges
Pension contributions less current service and interest
costs and other charges/(credits)
Decrease in stocks
Decrease in debtors
(Decrease)/increase in creditors (excluding fees in
advance scheme)
Interest received
Dividends received
Loan interest paid
Net cash provided by operating activities
2 Fees in advance scheme
New fees in advance money
3 Analysis of Cash and Cash Equivalents
Cash at bank and in hand
At 1
September
2023
4 Analysis of changes in net debt
£
Cash and cash equivalents
6,425,934
Borrowings:
Debts due within one year
(283,087)
Debts due after one year
(1,978,248)
Fees in Advance Scheme:
Amounts due within one year
-
Amounts due after one year
-
4,164,599		 Cashflows
£
4,180,597
220,770
-
(2,814,298)
(1,723,791)
(136,722)		 2024
£
798,686
764,597
(370,175)
54
(130,227)
(663,170)
(263,673)
(49,746)
164,797
251,143
2024
£
4,538,089
4,538,089
2024
£
10,606,531
Other
£
-
(131,185)
131,185
-
-
-		 2023
£
807,829
706,349
(422,899)
78
(408,549)
486,661
(55,116)
(40,207)
157,315
1,231,461
2023
£
-
-
2023
£
6,425,934
At 31
August
2024
£
10,606,531
(193,502)
(1,847,063)
(2,814,298)
(1,723,791)
4,027,877

- 18 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2024

1. Accounting Policies

Company information

The Independent Educational Association Limited ("the Association") was incorporated on the 8[th] August 1975 as a company limited by guarantee and not having a share capital, with registration number 1222329 and is considered a public benefit entity. On 8[th] December 1975 it was also registered as a charity under the Charities Act 1960 with the charity number 270156. The Charity’s principal address and registered office is at Earsby Street, London, W14 8SH. The Association has prepared consolidated financial statements to include the activities of The Most Honourable and Loyal Society of Ancient Britons (Welsh Girls’ School) now known as St. David’s School (St. David’s) and its trading subsidiary St David’s Enterprises Limited on the basis that the Association and St. David’s are being managed on a unified basis with common trustees. The consolidated financial statements also include the Association’s subsidiary, St James Enterprises Limited.

Basis of preparation and assessment of going concern

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) – effective 1 January 2019 – (Charities SORP (FRS102)) Second Edition.

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

The financial statements are drawn up on the historical cost basis of accounting, as modified by the inclusion of fixed asset investments at market value.

The charity has taken advantage of the exemption available to a qualifying entity in FRS 102 from the requirement to present a charity only Cash Flow Statement with the consolidated financial statements.

Having reviewed the funding facilities available to the Association together with the expected ongoing demand for places and the Association’s future projected cash flows, the Trustees have a reasonable expectation that the Association has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the Association’s financial viability. Accordingly, they also continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Trustees’ Responsibilities on page 10.

Basis of Consolidation

The financial statements present the consolidated statement of financial activities (SOFA), the consolidated statement of cash flow and the consolidated and Charity balance sheets comprising the consolidation of the Independent Educational Association Limited (“the school”), and its subsidiaries St David’s School (“St David’s”), St David’s School Enterprises Limited and St James Enterprises Limited. No separate SOFA has been presented for the School alone, as permitted by s408 of the Companies Act 2006. The results of the Charity are disclosed on the Company Balance sheet.

Critical accounting judgements and key sources of estimation uncertainty

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

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

- 19 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2024

1. Accounting Policies (continued)

In the view of the trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year other than those noted below:

The pension scheme liabilities shown on the balance sheet are based on the annual FRS102 actuarial update at 31 August 2024 in which the actuary used a variety of assumptions concerning the future pension scheme assets and liabilities. The assumptions used in determining the net cost /(income) for pensions include the discount rate.

Any changes in these assumptions, which are disclosed in Note 13, will impact the carrying amount of the pension liability. An actuarial valuation has been carried out as at 31 March 2021 and a roll forward approach has been used by the actuary to value the pensions liability at 31 August 2024.

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

Fee income

Fees receivable less any allowances, scholarships, bursaries and other grants made by the School against those fees, but including contributions received from restricted funds, are accounted for in the period in which the service is provided.

Other income

Income is accounted for in the year to which it relates. Rental income for operating leases on non-investment property is recognised as income on a straight-line basis over the lease term.

Investment income

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

Donations, grants and other income

Voluntary income 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 credited 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 incoming endowments are accounted for as permanent trust capital or expendable trust capital, according to whether the donor intends retention is to be permanent or not.

Legacy income

Pecuniary legacies are recognised when there is entitlement, which is deemed to be when probate has been granted, the legacy can be measured reliably, and there is probability of receipt. For residual legacies, entitlement is deemed to be the earlier of settled estate accounts and notification of a pending payment or actual payment being received.

Expenditure

Expenditure is accrued as soon as a liability is considered probable. Overhead and other costs not directly attributable to particular functional activity categories are apportioned over the relevant categories on the basis of management estimates of the amount attributable to that activity in the year by reference to site or the ratio of pupils in the individual schools. The irrecoverable element of VAT is included with the item of expense to which it relates.

Grants awarded are expensed as soon as they become legal or operational commitments. Governance costs comprise the costs of running the Charity, including strategic planning for its future development, also external audit, legal advice for the Association’s Trustees, and all costs of complying with constitutional and statutory requirements.

Intra-group sales and charges between the School and its subsidiaries are excluded from trading income and expenditure.

- 20 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2024

1. Accounting Policies (continued)

Tangible Fixed Assets

Items of equipment and furniture and fittings are capitalised if over £2,500 in cost and carried in the balance sheet at historic cost. Other expenditure on equipment incurred in the normal day-to-day running of the School is charged to the Statement of Financial Activities as incurred.

Depreciation

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

Freehold buildings and major improvements 1% - 2% on cost Computers 33 1/3% on cost Plant 10% on cost IT infrastructure 20% on cost Motor vehicles 25% on written down value Schools – other equipment and furniture and fittings 20% on written down value Laboratories 10% on written down value

Investments

The Association's listed investments are valued at market value at the balance sheet date. Gains and losses arising on the sale or 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.

Stock

Stock represents goods for resale and is valued at the lower of the cost and net realisable value.

Fund Accounting

The charitable trust funds of the Association and its subsidiaries are accounted for as unrestricted or restricted income, or as endowment capital, in accordance with the terms of trust imposed by the donors or any appeal to which they may have responded. Endowment funds are further sub-divided into permanent and expendable.

- 21 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2024 (continued)

1. Accounting Policies (continued)

Restricted Funds

Restricted funds are funds which have been raised for, and their use restricted to, a specific purpose, or donations or legacies subject to donor-imposed conditions against which relevant expenditure is charged. There is no capital retention obligation or power but only a trust law restriction.

Unrestricted Funds

Unrestricted funds consist of those funds which the Association may use in furtherance of its charitable objectives at the discretion of the Trustees. Where the Trustees decide to set aside any part of these funds to be used in future for some specific purpose, this is accounted for by the transfer to the appropriate designated fund.

Permanent endowment

Permanent endowment arises where a donor intends the gift to be retained permanently for use by the Association.

Taxation

The Association is a registered charity and, therefore, is not liable for income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

Pension Costs

Retirement benefits to employees of the Association are provided through a number of different schemes, two defined benefit schemes and a number of defined contribution schemes.

IEAL Pension Scheme

This is an occupational defined benefit scheme where the pension liabilities and assets are recorded in line with FRS 102 with a valuation undertaken by an independent actuary. The defined benefit pension scheme current service costs are charged to the Statement of Financial Activities within staff costs. The net interest on the defined net liability and the administration costs of the scheme are charged within support costs. Remeasurement effects, comprising actuarial gains and losses and the return on plan assets greater than the discount rate are recognised within other gains and losses.

The Independent Schools Pension Scheme (“ISPS” Scheme)

This scheme is a multi-employer pension scheme. It is not possible to identify the Association’s share of the underlying assets and liabilities of the ISPS scheme on a consistent and reasonable basis and therefore, as required by FRS102, the Association accounts for the scheme as if it were a defined contribution scheme. The Association’s contributions, which are in accordance with the recommendations of the actuary, are charged in the period in which the salaries to which they relate are payable. Where a deficit funding arrangement has been agreed by the Trustees of the Scheme, FRS102 requires a liability to be established based on the net present value of those funding obligations at the balance sheet date.

Defined contribution schemes

Employer’s pension costs are charged in the period in which the salaries to which they relate are payable.

Further details of the pension schemes can be found in note 13.

Financial 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, where fair value is measured by the quoted market price in an active market. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes, provisions and accruals and deferred income. Assets and liabilities held in foreign currency are translated to GBP at the balance sheet date at an appropriate year end exchange rate.

- 22 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2024 (continued)

2.
Charitable Activities - School Fees
School fees receivable consist of:
Gross fees
Less: Total bursaries, scholarships and allowances
Add back: Bursaries and other awards paid for by restricted funds
All amounts received were in respect of general funds.
3.
Other Income
Other income consist of:
Charitable activities – other income
Entrance and registration fees
Activities and coach income
Letting income of non-investment properties
All amounts received were in respect of general funds.
Other trading activities
Trading income
St James Enterprises Limited
Other activities
Fundraising income
All amounts received were in respect of general funds
Investment income
Dividend income
Bank deposit and short-term deposit interest
Amounts received in respect of restricted funds were £49,746 (2023:
£40,207) and general funds £263,673 (2023: £55,116).
Donations & legacies
General donations
Bursary donations
Legacies
Amounts received in respect of restricted funds were £55,320 (2023:
£76,200) and general funds £407,776 (2023: £386,580).
Other income
Sundry income
All amounts received in respect of restricted funds were £nil (2023:
£nil) and general funds £3,889 (2023; £2,344)		 2024
£
18,147,309
(1,404,340)
55,320
16,798,289
2024
£
45,697
939,111
93,798
1,078,606
129,551
28,112
157,663
49,746
263,673
313,419
15,818
80,440
366,838
463,096
3,889
3,889		 2023
£
17,580,032
(1,548,737)
76,200
16,107,495
2023
£
55,820
883,209
91,880
1,030,909
135,047
66,814
201,861
40,207
55,116
95,323
26,935
76,320
359,525
462,780
2,344
2,344

- 23 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2024 (continued)

4. Analysis of expenditure

(a) Total expenditure

Expenditure on raising
funds:
Fundraising
Investment management
Trading and lettings costs
Charitable activities
Teaching
Welfare
Premises
Support and governance
School’s operating costs
Grants, awards and prizes
Total expenditure
PRIOR YEAR
Expenditure on raising
funds:
Fundraising
Investment management
Trading and lettings costs
Charitable activities
Teaching
Welfare
Premises
Support and governance
School’s operating costs
Grants, awards and prizes
Total expenditure		 Staff costs
£
-
-
-
-
7,640,554
595,265
408,851
2,387,866
11,032,536
-
11,032,536
11,032,536
Staff costs
£
-
-
-
-
7,428,820
591,076
425,793
2,188,938
10,634,627
-
10,634,627
10,634,627		 Other costs
£
71,395
21,986
15,256
108,637
1,429,740
1,329,681
1,553,219
1,740,252
6,052,892
57,614
6,110,506
6,219,143
Other costs
£
46,521
20,807
40,238
107,566
1,330,492
1,081,087
1,873,750
1,281,848
5,567,177
77,164
5,644,341
5,751,907		 Depreciation
£
-
-
-
-
-
-
-
764,597
764,597
-
764,597
764,597
Depreciation
£
-
-
-
-
-
-
-
706,349
706,349
-
706,349
706,349		 Total 2024
£
71,395
21,986
15,256
108,637
9,070,294
1,924,946
1,962,070
4,892,715
17,850,025
57,614
17,907,639
18,016,276
Total 2023
£
46,521
20,807
40,238
107,566
8,759,312
1,672,163
2,299,543
4,177,135
16,908,153
77,164
16,985,317
17,092,883

- 24 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements

For the year ended 31 August 2024 (continued)

4. Analysis of expenditure (continued)

(b) Grants, awards and prizes
From Restricted Funds:
Bursaries and other grants and awards
(c) Governance expenditure included in support costs:
Auditor’s remuneration:
Audit services (including VAT) – current year
Other Fees – corporation tax		 2024
£
55,320
55,320
2024
£
54,825
2,780		 2023
£
76,200
76,200
2023
£
50,780
806
57,605 51,586

(d) Analysis of support and governance costs:

(d) Analysis of support and governance costs:
Staff costs
Depreciation
Information technology
FRS102 Pension finance and administration costs
Legal and professional
Advertising, marketing and publications
Finance and other
Interest Paid
Governance		 2024
£
2,387,866
764,597
270,154
101,224
499,940
105,620
540,912
164,797
57,605
4,892,715		 2023
£
2,188,938
706,349
193,563
53,561
272,319
218,686
334,818
157,315
51,586
4,177,135

- 25 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2024 (continued)

5. Staff costs

.
Staff costs
Total staff costs comprised:
Salaries
Social security costs
Pension fund costs –normal employer’s contributions
Temporary& agency staff
Catering staff costs		 2024
£
7,750,254
833,369
1,539,861
10,123,484
432,407
476,645
909,052
11,032,536		 2023
£
7,435,919
786,322
1,395,531
9,617,772
544,278
472,577
1,016,855
10,634,627

None of the Trustees received any remuneration or other benefits from the Association or a related entity. The key management of the Association are the trustees, the three head teachers and the chief operating officer as listed on page 1.

2024
£
The aggregate employee-benefits, including employers NI, of key
management personnel
726,805
The average number of employees during the year was
186
Number of employees receiving gross salaries in the range:
£60,001 to £70,000
10
£70,001 to £80,000
3
£80,001 to £90,000
-
£90,001 to £100,000
-
£100,001 to £110,000
1
£110,001 to £120,000
-
£120,001 to £130,000
1
£140,001 to £150,000
1
£150,001 to £160,000
1		 2023
£
663,460
188
8
-
-
-
1
2
1
-
-

The number accruing retirement benefits in: Defined Benefit Schemes was 4 (2023: 6)

Redundancy or termination payments in the year amounted to £67,671 (2023: £41,717). There was £1,321 (2023: £15,476) outstanding as at the year end.

- 26 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2024 (continued)

6. Fixed Assets

Group
Cost
At 1 September 2023
Additions in year
Disposals
At 31 August 2024
Depreciation
At 1 September 2023
Charge for the year
Disposals
At 31 August 2024
Net Book Value
At 31 August 2024
At 31 August 2023
Company
Cost
At 1 September 2023
Additions in year
Disposals
At 31 August 2024
Depreciation
At 1 September 2023
Charge for the year
Disposals
At 31 August 2024
Net Book Value
At 31 August 2024
At 31 August 2023		 Freehold
Property
&
Improvem
ents
£
31,213,394
-
-
31,213,394
4,845,596
376,069
-
5,221,665
25,991,729
26,367,798
Freehold
Property
&
Improvem
ents
£
31,218,317
-
-
31,218,317
3,810,641
376,069
-
4,186,710
27,031,607
27,407,676		 Motor
Vehicles
£
153,087
-
-
153,087
144,297
2,199
-
146,496
6,592
8,790
Motor
Vehicles
£
153,087
-
-
153,087
144,297
2,199
-
146,496
6,592
8,790		 Other
Equipment
£
4,921,425
518,869
-
5,440,294
3,802,668
386,329
-
4,188,997
1,251,296
1,118,757
Other
Equipment
£
4,808,263
518,869
-
5,327,132
3,694,082
386,329
-
4,080,411
1,246,720
1,114,181		 Total
£
36,287,906
518,869
-
36,806,775
8,792,561
764,597
-
9,557,158
27,249,617
27,495,345
Total
£
36,179,667
518,869
-
36,698,536
7,649,020
764,597
-
8,413,617
28,284,919
28,530,647

All tangible fixed assets are held for use on charitable activities.

IEAL holds a number of heritage assets relating to the history of the school, which includes pictures, sculptures and other artefacts. All these items have been donated to IEAL some time ago and so information on their cost or valuation is not available and cannot be obtained at a cost commensurate with the benefit to the users of the accounts and the charity.

- 27 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2024 (continued)

7. Investments

Group

Market value
At 1 September 2023
Additions at cost
Proceeds
Net gains
Market value
At 31 August 2024
Historical cost at 31 August 2024
Historical cost at 31 August 2023
Company
Investments (listed) held at market value (as for
Group above)
Investment in group undertaking		 2024
£
2,305,612
1
2,305,613		 Total
£
2,004,265
110,681
(93,063)
283,729
2,305,612
1,301,567
1,258,551
2023
£
2,004,265
1
2,004,266

The investment in group undertaking relates to St James Enterprises Limited which was incorporated on 16 January 2018. The company is owned 100% by the Association.

8.
Stocks
Sundry stocks
9.
Debtors
Fees outstanding less bad debt provision
Other debtors
Amounts due from subsidiary entities
Prepayments and accrued income		 Group
2024
2023
£
£
1,187
1,241
1,187
1,241
Group
2024
2023
£
£
482,538
350,064
50,620
149,636
-
-
438,573
341,804
971,731
841,504		 Company
2024
2023
£
£
-
-
-
-
Company
2024
2023
£
£
482,538
350,064
8,642
106,919
303,319
222,756
437,778
340,380
1,232,277
1,020,119		 Company
2024
2023
£
£
-
-
-
-
Company
2024
2023
£
£
482,538
350,064
8,642
106,919
303,319
222,756
437,778
340,380
1,232,277
1,020,119
1,020,119

- 28 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements

For the year ended 31 August 2024 (continued)

10(a). Creditors: Amounts falling due within one year

Trade creditors
Fees received from parents in
advance of term
Fees in advance scheme
Bank loan (See Note 10(b))
Fee deposits
Other creditors
Amounts due to subsidiary entities
Employee taxes and social security
costs
Accruals and deferred income
Deferred income
Brought forward
Released
Deferred in the year
Carried forward		 Group
2024
2023
£
£
427,273
613,129
809,973
770,135
2,814,298
-
193,502
283,087
2,545,256
2,892,127
457,113
439,439
-
-
200,220
205,283
327,246
510,138
7,774,881
5,713,338
Group
Group
2024
2024
Fees in
advance
Other deferred
income
770,135
137,698
(770,135)
(137,698)
809,973
111,908
809,973
111,908		 Company
2024
2023
£
£
425,410
612,028
809,973
770,135
2,814,298
-
193,502
283,087
2,545,256
2,892,127
456,013
442,197
28,190
32,270
200,220
205,283
303,540
492,249
7,776,402
5,729,376
Company
Company
2024
2024
Fees in
advance
Other deferred
income
770,135
137,698
(770,135)
(137,698)
809,973
111,908
809,973
111,908		 Company
2024
2023
£
£
425,410
612,028
809,973
770,135
2,814,298
-
193,502
283,087
2,545,256
2,892,127
456,013
442,197
28,190
32,270
200,220
205,283
303,540
492,249
7,776,402
5,729,376
Company
Company
2024
2024
Fees in
advance
Other deferred
income
770,135
137,698
(770,135)
(137,698)
809,973
111,908
809,973
111,908		 Company
2024
2023
£
£
425,410
612,028
809,973
770,135
2,814,298
-
193,502
283,087
2,545,256
2,892,127
456,013
442,197
28,190
32,270
200,220
205,283
303,540
492,249
7,776,402
5,729,376
Company
Company
2024
2024
Fees in
advance
Other deferred
income
770,135
137,698
(770,135)
(137,698)
809,973
111,908
809,973
111,908
5,729,376
Company
2024
Other deferred
income
137,698
(137,698)
111,908
111,908

Fees received from parents in advance of term in 2024 and 2023 represent payments against invoices raised in respect of subsequent terms where revenue will be recognised in the following financial year. Other deferred income relates to income received in respect of trips or events in the following financial year. Fee deposits are received in advance of a pupil commencing education at St James and are repayable upon completion of the pupil’s education which may be up to 14 years later. The liability is disclosed as due within one year as pupils may leave at any time, but with relatively stable pupil numbers, the probability of the liability becoming repayable in the short term is highly unlikely.

- 29 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2024 (continued)

10(b). Creditors: amounts falling due after more than one year

Fees in advance scheme
Bank loans
Fees in advance scheme analysis:
Within 1 year (See Note 10(a))
Between 1 – 2 years
Between 2 – 5 years
Summary of movements in liability
Balance at 1 September 2023
New contracts
Balance at 31 August 2024		 Group
2024
2023
£
£
1,723,791
-
1,847,063
1,978,248
3,570,854
1,978,248
2,814,298
-
1,232,408
-
491,383
-
4,538,089
-
-
-
4,538,089
-
4,538,089
-		 Company
2024
2023
£
£
1,723,791
-
1,847,063
1,978,248
3,570,854
1,978,248
2,814,298
-
1,232,408
-
491,383
-
4,538,089
-
-
-
4,538,089
-
4,538,089
-		 Company
2024
2023
£
£
1,723,791
-
1,847,063
1,978,248
3,570,854
1,978,248
2,814,298
-
1,232,408
-
491,383
-
4,538,089
-
-
-
4,538,089
-
4,538,089
-
1,978,248
-
-
-
-
-
-
-

Under the School’s Fees in advance scheme, contributors may enter into a contract to pay the school up to the equivalent of between two and five years’ tuition fees in advance. The liability is valued at the balance sheet date, but has been allocated assuming that students will remain in the school for the normal duration.

10(b). Creditors: amounts falling due after more than one year(continued)

Bank loans - maturity:
Payable within 1 year (See Note 10(a))
Payable between 1 – 2 years
Payable between 2 – 5 years
Payable after more than 5 years		 Group
2024
2023
£
£
193,502
283,087
208,891
240,000
728,068
720,000
910,104
1,018,248
2,040,565
2,261,335		 Company
2024
2023
£
£
193,502
283,087
208,891
240,000
728,068
720,000
910,104
1,018,248
2,040,565
2,261,335		 Company
2024
2023
£
£
193,502
283,087
208,891
240,000
728,068
720,000
910,104
1,018,248
2,040,565
2,261,335
2,261,335

At 31 August 2024 the Association had a secured liability of £2,040,565 (2023: £2,261,335). The liability is secured by a first legal charge over 41A North End Road, W14 8SZ. This amount comprises two loans: £1.2m repayable in equal instalments over 60 months commencing 31 October 2018; and £2.4m repayable in instalments over 60 months commencing 30 September 2022.

- 30 -

The Independent Educational Association Limited Notes to the Consolidated Financial Statements For the year ended 31 August 2024 (continued)

11 Analysis of Funds

The Association’s funds and the movements in the year are as follows:

Group
Restricted Funds
Permanent Endowment
Bursary
Founders scholarship
Valerie Cullen
John Lyons
D A Nott
Unrestricted Funds
General Fund
ISPS Pension deficit
provision
IEAL Pension reserve		 Balance
1
September
2023
£
400
1,020,674
76,128
239,457
-
792,174
2,128,833
26,947,870
(176,269)
(964,000)
27,936,434		 Income
£

-

16,263

3,063

5,738
55,320
24,682

105,066
18,709,896
-
-
18,814,962		 Expenditure
£
-
(9,757)
(1,072)
(2,406)
(55,320)
(8,751)
(77,306)
(17,827,468)
(9,502)
(102,000)
(18,016,276)		 Transfers
£

-

-

-

-

-
-

-

(481,677)
22,677
459,000
-		 Gains /
Losses
£

-

157,211

17,426

24,114

-
84,978

283,729

-
(6,605)
209,000

486,124		 Balance
31 August
2024
£

400

1,184,391

95,545

266,903

-
893,083

2,440,322

27,348,621
(169,699)
(398,000)

29,221,244

- 31 -

The Independent Educational Association Limited Notes to the Consolidated Financial Statements For the year ended 31 August 2024 (continued)

11 Analysis of Funds (continued)

Company
Restricted Funds
Bursary
Founders scholarship
Valerie Cullen
John Lyons
D A Nott
Unrestricted Funds
General Fund
ISPS Pension deficit
provision
IEAL Pension reserve		 Balance
1
September
2023
£
1,020,674
76,128
239,457
-
792,174
2,128,433
27,806,376
(176,269)
(964,000)		 Income
£

16,263

3,063

5,738

55,320
24,682

105,066
18,679,699
-

-
18,784,765		 Expenditure
£
(9,757)
(1,072)
(2,406)
(55,320)
(8,751)
(77,306)
(17,799,997)
(9,502)
(102,000)
(17,988,805)		 Transfers
£

-

-

-

-
-

-

(481,677)
22,677
459,000
-		 Gains /
Losses
£

157,211

17,426

24,114

-
84,978

283,729

-
(6,605)
209,000

486,124		 Balance
31 August
2024
£

1,184,391

95,545

266,903

-
893,083

2,439,922

28,204,401
(169,699)
(398,000)

30,076,624
28,794,540

The Bursary fund is for disbursement of bursaries. The Founders scholarship fund is for a pupil who would not otherwise be able to attend. The Valerie Cullen Music Prize is for a musically talented pupil in the Senior Boys School. The D A Nott fund is for a bursary for specified subjects up to a maximum of £10,000 per annum. The John Lyons grant is for the funding of bursaries.

- 32 -

The Independent Educational Association Limited Notes to the Consolidated Financial Statements For the year ended 31 August 2024 (continued)

11 Analysis of Funds (continued)

The Association’s funds and the movements in the year are as follows:

Group
Restricted Funds
Permanent
Endowment
Bursary
Founders
scholarship
Valerie Cullen
John Lyons
D A Nott
Unrestricted
Funds
General Fund
ISPS Pension deficit
provision
IEAL Pension
reserve
Company
Restricted Funds
Bursary
Founders
scholarship
Valerie Cullen
John Lyons
D A Nott
Unrestricted Funds
General Fund
ISPS Pension deficit
provision
IEAL Pension
reserve		 Balance
1 September
2022
£
400
971,147
68,376
245,235
-
819,383
2,104,541
26,582,340
(200,612)
(294,000)
28,192,269
Balance
1 September
2022
£
971,147
68,376
245,235
-
819,383
2,104,141

27,393,995
(200,612)
(294,000)
29,003,524		 Income
£
-
12,040
3,023
5,591
76,200
19,553
116,407
17,784,305
-
-
17,900,712
Income
£

12,040

3,023

5,591

76,200
19,553

116,407
17,776,618
-

-
17,893,025		 Expenditure
£
-
(8,937)
(954)
(2,351)
(76,200)
(8,565)
(97,007)
(16,930,724)
(8,152)
(57,000)
(17,092,883)
Expenditure
£
(8,937)
(954)
(2,351)
(76,200)
(8,565)
(97,007)
(16,876,186)
(8,152)
(57,000)
(17,038,345)		 Transfers
£
-
-
-
-
-
-
-
(488,051)
22,051
466,000
-

Transfers
£

-

-

-

-
-

-

(488,051)
22,051

466,000
-		 Gains /
Losses
£
-
46,424
5,683
(9,018)
-
(38,197)
4,892
-
10,444
(1,079,000)
(1,063,664)
Gains /
Losses
£

46,424

5,683

(9,018)

-
(38,197)

4,892

-
10,444

(1,079,000)
(1,063,664)



Balance
31 August
2023
£
400
1,020,674
76,128
239,457
-
792,174
2,128,833
26,947,870
(176,269)
(964,000)
27,936,434
Balance
31 August
2023
£

1,020,674

76,128

239,457

-
792,174










2,128,433

27,806,376
(176,269)

(964,000)
28,794,540

The Bursary fund is for disbursement of bursaries. The Founders scholarship fund is for a pupil who would not otherwise be able to attend. The Valerie Cullen Music Prize is for a musically talented pupil in the Senior Boys School. The D A Nott fund is for a bursary for specified subjects up to a maximum of £10,000 per annum. The John Lyons grant is for the funding of bursaries.

- 33 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2024 (continued)

12 Analysis of Net Assets between Funds

Group
Tangible
Fixed
Assets
Restricted Funds
£
Permanent Endowment
-
Bursary
-
Founders scholarship
-
Valerie Cullen Music Prize
-
D A Nott
-
-
General Fund
27,249,617
ISPS Pension deficit provision
-
IEAL Pension reserve
-
27,249,617
The group has no free reserves as at 31 August 2024.
Company
Tangible
Fixed
Assets
Restricted Funds
£
Bursary
-
Founders scholarship
-
Valerie Cullen Music Prize
-
D A Nott
-
-
General Fund
28,284,919
ISPS Pension deficit provision
-
IEAL Pension reserve
-
28,284,919		 Investments
£
-
1,046,690
111,632
244,139
903,151
2,305,612
-
-
-
2,305,612
Investments
£
1,046,690
111,632
244,139
903,151
2,305,612
1
-
-
2,305,613		 Other assets
and
liabilities
£
400
137,701
(16,087)
22,764
(10,068)
134,710
99,004
(169,699)
(398,000)
(333,985)
Other assets
and
liabilities
£
137,701
(16,087)
22,764
(10,068)
134,310
(80,519)
(169,699)
(398,000)
(513,908)		 Total
2024
£
400
1,184,391
95,545
266,903
893,083
2,440,322
27,348,621
(169,699)
(398,000)
29,221,244
Total
2024
£
1,184,391
95,545
266,903
893,083
2,439,922
28,204,401
(169,699)
(398,000)
30,076,624

The company has no free reserves as at 31 August 2024.

- 34 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2024 (continued)

12 Analysis of Net Assets between Funds

Group
Tangible
Fixed
Assets
Restricted Funds
£
Permanent Endowment
-
Bursary
-
Founders scholarship
-
Valerie Cullen Music Prize
-
D A Nott
-
-
General Fund
27,495,345
ISPS Pension deficit provision
-
IEAL Pension reserve
-
27,495,345
The group has no free reserves as at 31 August 2023.		 Investments
£
-
892,177
94,207
218,613
799,268
2,004,265
-
-
-
2,004,265		 Other assets
and
liabilities
£
400
128,497
(18,079)
20,844
(7,094)
124,568
(547,475)
(176,269)
(964,000)
(1,563,176)		 Total
2023
£
400
1,020,674
76,128
239,457
792,174
2,128,833
26,947,870
(176,269)
(964,000)
27,936,434
Company
Restricted Funds
Bursary
Founders scholarship
Valerie Cullen Music Prize
D A Nott
General Fund
ISPS Pension deficit provision
IEAL Pension reserve		 Tangible
Fixed
Assets
£
-
-
-
-
-
28,530,647
-
-
28,530,647		 Investments
£
892,177
94,207
218,613
799,268
2,004,265
1
-
-
2,004,266		 Other assets
and
liabilities
£
128,497
(18,079)
20,844
(7,094)
124,168
(724,272)
(176,269)
(964,000)
(1,740,373)		 Total
2023
£
1,020,674
76,128
239,457
792,174
2,128,433
27,806,376
(176,269)
(964,000)
28,794,540

The company has no free reserves as at 31 August 2023.

- 35 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2024 (continued)

13. Pension Schemes

IEAL Defined Benefit Scheme

The Association operates a pension scheme providing benefits based on final pensionable pay. With effect from 31 August 2017 the scheme was closed to all new members and to future accrual for teaching staff. The scheme continues to operate for a number of non-teaching staff.

The assets of the scheme are held separately from those of the Association, being invested with insurance companies. Contributions to the scheme are charged to the Statement of Financial Activities so as to spread the cost of pensions over employees' working lives with the Association. The contributions are determined by a qualified actuary on the basis of triennial valuations using the projected unit method. The most recent valuation was at 31 March 2021. The assumptions which have the most significant effect on the results of the valuation are those relating to the rate of return on investments, the rates of increase in salaries and pensions and the discount rate.

The results of the most recent triennial valuation as at 31 March 2021 showed that the market value of the scheme's assets was approximately £16,614,000 with the Scheme Specific Funding Requirement standing at 86% whereas at the previous valuation it was 87%.

As a result of the 2021 valuation from 1 April 2022 deficit payments of £33,333 are due monthly until 31 August 2028 and contribution payments of £3,895 are payable monthly to cover expenses. Employer contributions have increase to 27.2% of pensionable salaries.

The financial assumptions underlying the valuation as at 31 March 2021 were as follows:

Pre-retirement discount rate Market impliedgiltyield curveplus 2.75%pa
Post-retirement discount rate Market impliedgiltyield curveplus 0.25%pa
RPI inflation Market implied inflationgiltyield curve
CPI inflation Pre 2030: RPI curve less 0.8% p.a.
Post 2030: RPI curve less 0% p.a.
Rate of salaryincrease CPI curve with floor
Pension increases LPI Pension Increases curves derived from RPI,
adjusted for the impact of the cap and floor

The 2021 valuation was carried out using the mortality base tables Club VITA tables and for future improvements in longevity the CMI 2020 model with a long-term rate of improvement of 1.5% (tapering for ages above 85 to 0% to 110) and a smoothing parameter of Sk = 7.0 and A parameter of 0.2% for men and 0.6% for women.

Basis of calculation

The last full actuarial valuation upon which the FRS102 figures have been based was as at 31 March 2021.

- 36 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2024 (continued)

13. Pension Schemes (continued)

13.
Pension Schemes (continued)
Disclosed Expense
A – Disclosed Expense 2024 2023
£000’s £000’s
Current service cost 8 15
Net interest on net defined liability 38 4
Defined benefit cost recognised in Statement of Financial 46 19
Activities
Administration costs incurred in the period 56 38
Disclosed expense 102 57
B – Amounts recognised in Other Comprehensive Income
(OCI)
Actuarial gain/(loss) arising during period (311) 1,817
Return on plan assets 520 (2,896)
Remeasurement effects recognised in OCI 209 (1,079)
C – Total Defined Benefit Cost
Cost recognised in the Statement of Financial Activities 102 57
Remeasurement effects recognised in the OCI (209) 1,079
Defined benefit cost (107) 1,136
D – Assumptions Used to Determine Expense
Discount rate 4.95% 5.25%
Price inflation (RPI) 3.05% 3.20%
Price inflation (CPI) 2.60% 2.70%
Rate of salary increase 2.60% 2.70%
Pension increases for in-payment benefits (Pre 2012 accrual) 2.90% 3.10%
Pension increases for in-payment benefits (Post 2012 accrual) 2.70% 2.70%
Pension increases in deferment for deferred benefits pre 2009 2.60% 2.70%
Pension increases in deferment for deferred benefits post 2009 2.50% 2.50%
Life expectancies: Male Female
Average future expectancy for a pensioner aged 65 at 31/8/24 23.3 years 25.8 years
Average future life expectancy at age 65 for a non-pensioner 23.0 years 26.7 years
aged 50 at 31/8/24

Net Balance Sheet Position

Net Balance Sheet Position
2024 2023
£000’s £000’s
A – Development of Net Balance Sheet Position
Defined benefit obligation (DBO) (12,255) (12,056)
Fair value of assets(FVA) 11,857 11,092
Deficit in the plan (398) (964)
B – Reconciliation to Balance Sheet
Net defined benefit liability at end of prior period (964) (294)
Current service cost (8) (15)
Net interest on net defined benefit liability (38) (4)
Remeasurement effects recognised in OCI 209 (1,079)
Employer contributions 459 466
Administration costs incurred in the period (56) (38)
Net defined benefit liability at end of current period (398) (964)

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The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2024 (continued)

13. Pension Schemes (continued)

Additional Disclosure Information

Additional Disclosure Information
£000’s
A – Expected Future Administration Expenses for the period ending 31 August 2024
57
B – Expected Contributions for period ending 31 August 2024
Employer 5
Scheme participants -
C – Actual return on Scheme Assets during period ending 31 August 2024
Interest on assets 577
Asset gain during period 520
Actual return on assets 1,097
D – Scheme Asset Information
Allocation Percentage Allocation Percentage
31 August 2024 31 August 2023
Equities 10.90% 7.97%
Absolute bond return 3.18% 5.24%
Asset backed securities 25.77% 7.45%
Insurance linked securities 2.91% 3.65%
Synthetic credit 5.20% 7.38%
LDI 37.10% 32.80%
Cash and cash equivalents 10.23% 30.62%
Private lending/debt 1.86% 2.70%
Infrastructure 2.85% 2.19%
Total 100.00% 100%
Fair value of plan assets 11,857 11,092

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The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2024 (continued)

13. Pension Schemes (continued)

Changes in disclosed liabilities and assets

Changes in disclosed liabilities and assets
2024 2023
£000’s £000’s
A - Change in Actuarial Value of Liabilities
DBO at end of prior period 12,056 13,879
Current Service Cost 8 15
Interest cost on the DBO 615 577
Administrative Costs 56 38
Actuarial Loss 311 (1,817)
Benefits paid (791) (636)
DBO at current period end 12,255 12,056
B - Change in Scheme Assets
Fair value of assets at end of prior period 11,092 13,585
Interest income on plan assets 577 573
Return on plan assets greater than discount rate 520 (2,896)
Employer contributions 459 466
Benefits paid (791) (636)
Fair value of assets at current period end 11,857 11,092

IEAL Scottish Widows Stakeholder Scheme

With effect from 1 September 2010 the Association introduced a stakeholder pension scheme for non-teaching staff not eligible for participation in the IEAL Defined Benefit Scheme. The stakeholder scheme is a defined contribution scheme with funds managed by Scottish Widows. Employee contributions are a minimum of 5% and the employer’s contribution rate is 10%. At the balance sheet date there were 54 members of this scheme (2023: 51). During the year £157,408 (2023: £132,129) of contributions were payable by the employer. Contributions of £62,502 (2023: £nil) were owing to the scheme at the balance sheet date.

NEST stakeholder scheme

This scheme is for employees who are neither in the IEAL Pension Scheme or the IEAL Scottish Widows Stakeholder Scheme and who qualify for auto-enrolment into a Pension Scheme. The stakeholder scheme is a defined contribution scheme. The employee contribution rate during the year was 4% and the employer’s contribution rate was 3% throughout the period. At the balance sheet date there were 7 members of this scheme (2022: 9). During the year £4,850 (2023: £4,999) of contributions were payable by the employer. Contributions of £5,064 (2023: £nil) were owed to the scheme at the balance sheet date.

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The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2024 (continued)

13. Pension Schemes (continued)

Independent Schools’ Pension Scheme

For the period to the end of December 2014 St. David's School participated in The Independent Schools' Pension Scheme ('the Scheme'). Under a flexible apportionment arrangement, executed as a deed on 19 December 2014 and signed by the Trustee of The Pension Trust, St David’s School and IEAL, the liabilities of St David’s School to the Scheme with the exception of £1 were transferred to IEAL and St David’s School ceased to be an employer under the Scheme. From this date IEAL is the employer within the Scheme.

The association participates in the scheme, a multi-employer scheme which provides benefits to some 61 nonassociated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the association to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore, it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore, the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

As at the balance sheet date there was one active member of the Scheme employed by IEAL. During the accounting period IEAL paid a joint contribution rate of 30.5% (2023: 30.5%) comprising employer contributions of 21.0% (2023: 21.0%) and member contributions of 9.5% (2023: 9.5%).

A full actuarial valuation for the scheme was carried out with an effective date of 30 September 2020. This actuarial valuation was certified on 22 December 2021 and showed assets of £201.1m, liabilities of £256.3m and a deficit of £55.2m equivalent to a past service funding level of 80%. To eliminate this funding shortfall, the trustees and the participating employers have agreed that additional contributions will be paid, in combination from all employers, to the scheme as follows:

Deficit contributions

From 1 September 2022 to 30 April 2032

£2,687,000 per annum (payable monthly and increasing by 3% on each 1 September)

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £149.4m, liabilities of £187.6m and a deficit of £32.2m.

From 1 September 2019 to 30 April 2030

£2,387,357 per annum (payable monthly and increasing by 3% on each 1 September)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities.

The annual amount due by IEAL from 1 September 2022 to 31 August 2030 is £22,016 (increasing by 3% each on 1 September).

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The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2024 (continued)

13. Pension Schemes (continued)

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the school recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

Present values of provision – Group and company

Year Ended Year Ended
31 August 2024 31 August 2023
(£000s) (£000s)
Provision at start of period 176 201
Unwinding of the discount factor (interest expense) 10 8
Deficit contribution paid (23) (23)
Remeasurements - impact of any change in assumptions 7 (10)
Remeasurements - amendments to the contribution schedule - -
Provision at end of period 170 176

Statement of Financial Activities impact: - Group and company

Year Ended Year Ended
31 August 2024 31 August 2023
(£000s) (£000s)
Interest expense 10 8
Remeasurements – impact of any change in assumptions 7 (10)
Remeasurements – amendments to the contribution schedule - -
Contributions paid in respect of future service - -
Costs recognised in income and expenditure account 17 (2)

Assumptions

31 August 2024 31 August 2023
% per annum % per annum
Rate of
discount		 4.68 5.79

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions .

- 41 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2024 (continued)

13. Pension Schemes (continued)

Following a change in legislation in April 2005 there is a potential debt on the employer that could be levied by the Trustee of the Scheme. The debt is due in the event of the employer ceasing to participate in the Scheme or the Scheme winding up. The debt for the Scheme as a whole is calculated by comparing the liabilities for the Scheme (calculated on a buy-out basis i.e. the cost of securing benefits by purchasing annuity policies from an insurer, plus an allowance for expenses) with the assets of the Scheme. If the liabilities exceed assets there is a buy-out debt.

The leaving employer's share of the buy-out debt is the proportion of the Scheme's liability attributable to employment with the leaving employer compared to the total amount of the Scheme's liabilities (relating to employment with all the currently participating employers). The leaving employer's debt therefore includes a share of any 'orphan' liabilities in respect of previously participating employers. The amount of the debt therefore depends on many factors including total Scheme liabilities, Scheme investment performance, the liabilities in respect of current and former employees of the employer, financial conditions at the time of the cessation event and the insurance buy-out market. The amounts of debt can therefore be volatile over time.

IEAL has been notified by The Pensions Trust of the estimated employer debt that would have been payable if IEAL had withdrawn from The Independent School’s Pension Scheme as at 30 September 2023. As of this date the estimated employer debt for IEAL was £739,850. As IEAL currently has no plans to leave the scheme, this contingent liability has not been provided for in the accounts, and as the Actuary is unable to identify its share of the underlying assets and liabilities at 31 August 2024, the scheme has been accounted for as a defined contribution scheme as permitted by FRS102 and contributions are accounted for when due. Any agreed pension deficit funding payments are provided for on a discounted basis.

Amounts paid in respect of employer pension contributions during the year including the annual deficit contributions were £56,123(2023: £53,190). As at 31 August 2024 £12,110 (2023: £5,508) was owing to the scheme.

Teachers’ Pension 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 £1,345,875 (2023: £1,150,469) and at the year-end £179,157 (2023 - £151,412) 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 undertaken by the Government Actuary’s 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 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 has valued the ‘greater value’ benefits for groups of relevant members.

The employer contribution rate for the TPS is 28.6%, and employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 28.68%.

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The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2024 (continued)

14. Transactions with Trustees and Related Parties

No remuneration or expenses were paid to the trustees (2023: £Nil).

The aggregate employee-benefits of the key management personnel are shown in Note 5.

The Association and St David’s School along with its trading subsidiary, St David’s Enterprises Limited, are under common control. At the balance sheet date St David’s Enterprises Limited owed £84,257 (2023: £79,097) to the Association, and the Association owed £28,190 (2023: £37,310) to St David’s School. The balance sheet movement represents the total of net recharged expenses during the year between the Association and its subsidiary undertakings. St James Enterprises Limited, a subsidiary of the Association, was incorporated on 16 January. At the balance sheet date, the Association owed £Nil (2023: £1) to St James Enterprises Limited and St James Enterprises Limited owed £219,062 to the Association (2023: £143,661).

Certain Trustees have spouses or other relations who are employed at the school as teachers and as such receive salaries in accordance with the pay scale for all of the Association’s teachers. These Trustees do not vote at Trustee meetings on any matters relating to teachers’ remuneration. At 31 August 2024 there was 1 Trustee (2023: 1) with relations employed whose aggregate gross salaries for the year ending on that date were £6,010 (2023: £6,773). Certain Trustees also have children who are pupils at the school and pay fees in accordance with the normal fee rates for all pupils less any contractual discounts to which they are entitled.

15. Operating lease commitments

The amount charged as expenses in respect of operating leases was £Nil (2023: £Nil)

The Association had several short-term leases in respect of property let during the year. The future minimum lease rentals receivable in respect of the remaining lease period or notice period amount to £41,495 at 31 August 2024 (2023: £41,495)

16. Capital and other commitments

At 31 August 2024 the Association had building works contracted for, but not accrued, amounting to £Nil (2023: £ Nil) of which approximately £Nil (2023: £ Nil) related to capital commitments.

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The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2024 (continued)

17. Subsidiary Undertakings

Incorporated by Act of Parliament in 1846 in England

Registered charity number 312091

Trustees are common to those of the Independent Educational Association Limited

Former owner and manager of the property situated at Church Road, Ashford, Middlesex that is used by the Senior Boys’ School of the Independent Educational Association Limited. The property was transferred to the Independent Educational Association Limited on 24 November 2014 at which point its main activity was discontinued.

Aggregate assets - £148,737 (2023: £158,038)

Aggregate liabilities - £4,370 (2023: £Nil) Aggregate funds – £144,368 (2023: £158,038) Turnover for the year - - £Nil (2023: £Nil) Expenditure for the year - £13,670 (2023: £180)

Loss /Profit for the year – (£13,670) (2023: loss £180)

B. St David’s Enterprises Limited

Incorporated in England & Wales under company registration number 5154561

100% of the issued share capital is held by The Most Honourable and Loyal Society of Ancient Britons (Welsh Girls’ School) now known as St David’s School

Letting to the public and various sporting organisations the facilities located at St David’s School, Church Road, Ashford

The Senior Boys’ School of the Independent Educational Association Limited also occupy and utilise the facilities at Church Road, Ashford during school days and various times in the evenings and at weekends. Aggregate assets - £80,269 (2023: £62,855)

Aggregate liabilities - £113,005 (2023: £92,040)

Aggregate funds (£32,736) (2023: (£29,185) Turnover for the year - £Nil (2023: £Nil) Expenditure for the year - £3,551 (2023: £8,276) Loss for the year £3,551 (2023: £8,276)

C. St James Enterprises Limited

Incorporated on 16 January 2018 in England & Wales under company registration number 11153595 100% of the issued share capital is held by the Independent Educational Association Limited Aggregate assets - £303,453 (2023: £209,569) Aggregate liabilities - £235,161 (2023: £153,186) Aggregate funds - £68,292 (2023: £56,383) Turnover for the year - £129,551 (2023: £135,047) Expenditure for the year - £67,729 (2023: £85,134) Profit for the year (gift aided to parent) - £61,822 (2023: (£49,913))

The company assumed the handling of commercial events from St David’s Enterprises Limited on 1 April 2020

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