DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED (Limited by guaranttt) REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 Re8iStered Company Number.. 1947995 Registered Charity Nuinber-. 294670 DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2022 CONTENTS Page Governors, Report Independent Auditor's Report 8- 10 Consolidated Statement of Financial Activiti¢s Group and Charity Bala￿ce Sheet 12 Con501idated Statement of Cash Flow 13 Ststement of A¢counting Policies 14-15 Notes to the Financial Statemenis 16-22 DURSTOIY HOUSE SCHOOL EDUCATIONAL TRUST LIMITED GOVERNORS, REPORT YEAR ENDED31 AUGUST 2022 REFERENCE AND ADMINISTRATIVE INFORMATION GOVERNORS Mr J Allen {Resigned 31 MaTch 2022} Mr D Alexander {Re5igned 31 January 2022) Mr S A Arn)strong Mr P Carpelltier (Appointed 22 August 2022) Mr C Castelino {Re5igned 13 April 2022) Ms A Collier MrKSGirn Mr D G Henshall (C4FChairman until 25 March 2023) Mrs S-A Huang Ms J Honigsberger Miss H Kaur Mrs l Kurek-smith (appointed 6 February 2023) Mr K J Mahoney (Chairniftn) Dr R Maloney (Appointed I September 2021) Mr M Mudan (Appointed 22 August 2022) Mr B Purki55 (Appointcd I September 2021) KEY MANAGEMENT PERSONNEL HEADMASTER Mr K H G Entwisle BURSAR AND COMPANY SECRETARY Mrs J M Tw)rford REGtSTERED OFFICE 12 Castlebar Road London W5 2DR ARCHITECT ADP Architecture Ltd 150 Waterloo Road London SEI 8SB AUDITOR Haysmacintyre LLP 10 Queen Str¢et Place London EC4R IAG BANK The Coryoperative Bank 16-18 New Broadway London W5 2XL CHARTERED SURVEYOR Gernld Eve 7 Vere Street London WIM OJB INSURANCE BROKER Hettle Andrews & Associates Ltd 2 Brunswick Square Birniingham Bl 2LP SOLICITOR Blandy and Blondy l Friar Street Reading Berks RGI IDA DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED GOVERP40RS' REPORT (tontinued) YEAR ENDED 31 AUGUST 2022 The goven)or$, who are also the tnjstees and directors of the charitable company Durston House Sch￿[ Educational Trust Limited ("the T￿￿t,), present their report and the audited financial statem¢nts for the year ¢nded 31 Augusl 2022 and confirni that they comply with the requirements of the Charities Act 201 I, the Companies Act 2006. th¢ Memorandum and Articles of A580ciation and the Charities SORP- Second Edition (effective l JaRuary 2019). GOVERNING DOCUMENTS Durston House School Educational Trnst Limited was s¢t up under its Memorandum and Articles of Association dated 17 September 1985 as a company IiTnited by guaraTJlee, number 1947995 and also a charity with the Charity Cornmission, number 294670. The School. previously privately owned, was established in l 886. AIM The School'g Strdtegic aim, as a ¢haritsble indep¢ndent School operating for the publi¢ benefit, is th¢ attainment of th¢ highest a¢ademic levels with the benefit of a comprehensive extra-curricular programme. OBJEcfJvES The principal object of the S¢h(x)l is to promote and provide for the advancement of education for boys aged from 4 to 13 years. In the furtherance of this object the governors, as the charity trustees, have Complied with ihe duty in s.17 of th¢ Charities Aci 201 io have due regard w the Charity Commission's published general and relevant 5ub-sector guidance conceming th¢ operation of thc Public Benefit requirement under thai Act. Obje¢tive5 for the Year The principal objectives for the year w¢re- to secure one hundred peT cent success with regard to ye￿ 8 pupils, entry into senior schools and academi¢ ￿holarShIpS results in keeping with the school's academic expectations; to continue and, where possible, increase the provision of ineans-tested bursaries to facilitate wider ac¢¢ss to the provision of education at Durston House. to develop th¢ School's profile, with T¢gard to pllbli¢ benefit, in a manner that will encourage a ¥reater level of involvement in the local community; and to continue the development of plans io coinbine the three sections of the school on to the Carlton Road site. ETHOS, STRATEGY AND POLICIES Ethos Durston House is a preparatory school for boys, welcoming those from all ethnic, eultural and religious backgrounds. The School is proud of its diversity. It is a cojnmunity in which mutual respe¢t and understanding, fairness and opportunities lor all are promoted within the framework of its Christian foundation. Strategy The governors are responstble for setting stra*gy. The focu5 of iheir $tt8tegy is on the d¢velopment of the pupils, their continued high levels of academic and co-curricular achievem¢Rt and the broadening of &￿esS to th¢ ¢ducation the school provides. In taking this strategy forward the governors.. Ensure the ran¥e ofextra-eurricular activities available to pupils is stimulating and challenging- Invest in iechnology and the infrastructure of the school., and Develop methods for awarding bursaries to ensure wider access to pupi15 from all baCk￿Ounds. Durston House School is a charitable trltst which seeks to benefit the public through the pursuit of its stat¢d aims and welcomes pupils from all backgrounds. Fees are set at a level to ensure the financial viability of the school. Ae¢¢55 Poliey It is important that access to the edutation offered 15 not tEStri¢ied to those who can afford full fees. The governors believe pupils benefit from leaming within a diverse community. The governors will Make reasonable adjustrnents to meet the needs of staff or pupils who are or become disabled. DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED COVERNORS, REPORT {continued) YEAR ENDED 31 AUGUST 2022 Bursary poli¢y Durston House bursary awards are available to all who me¢t its general entry requirements and are rnade solely, and subject to th¢ enty requirements, on the basis of parental means or to relieve hardship where a pupil's educatioii and future prospects would otherwise be at risk. for example in the case of redwidancy. The bursary awards rang¢ from 50D/o to lOOO/ o re￿iSSion of fe¢s. Aui5tance for teachlng Staff As part of the ¢mpha5is on attra¢ting and retaining high calibre staff, the school offers a s￿/0 discount to staff ]nembetY who choose to educate their sons at Durston House. Community aeeess The governors See Durston House School as a part of a wider Community. Where th¢ School can asslst the community without detriment to advancing th¢ education of its pupils the governors are delighted to do so. A Register of Public B¢nefit Initiatives records appropriate ventures, including the provision of means tested bursaries, and the school's link5 Wjth the local community, including community use of the Sehool's playing fields. The Head of Complementary Currieulum acts as the Charities coordinator arranging various activities during the year, supported by parents and pupils, to raise funds for other organisations. The nominated charities for the year were firstly the Chain of Hope who treat children from developing and war-torn countiies with heart diseas¢ and Malaikl who provide access to education for girls. wat¢r and healthcare in the DeM￿rat]e Republic of Congo. ESTATES DEVELOPMENT The planning application for the development plans tg Combine the three sectitsns of tlie school on to the Carlton Road site was subtnitted to the local planning authority in January 2020 and granted approval. Subsequently, as required, it was submitted to the Greater London Authority, where in July 2020, it was refused. The governo￿ considered their options and agreed that the plans should be r¢vised and updated to address the points on which IÉ was refused. The updated planning application will be submitted in due course. The programTne of routine Maintenance to ensure high standards are maintaineAJ Across all school 5ltes continue(L STRUCTURE, GOVERNANCE AND MANAGEMENT GoverDanee The Annual General Meeting is held in March each year. The governors of the School. who are also directors of the Company, are appointed in aceoTdance with the Memorandum and Articles of Association. Responsibility for the overall management and organisation of the School rests with the governors, who meet at least on a termly basis. They are supported in catrying out their responsibilities by th¢ Education and Welfare, Eststes Development, Finance and Govemanc¢ Committee5. meeting t¢rmly. Membership of the five Committees during 2021-22 was as follows- Edll¢ation and Welfare-. B Purkiss (Chair), Ms A Collier and D Henshall; Estates Developtnent.. K J Mahoney (Chair), J Allen, C Casielino and R Malon¢y' Finance.. C Casrelino (Chair), Mr K S Girn. Ms J Honig5berger and K J Mahoney. Governance-. D G Henshall (Chair), Miss H Kaur and Ms A Collier. Operational M#n4gement The task of running the School on a day-to-day ba515 is delegated to the Headmaster and Bursar. The Headma5t¢r and the Bursar attend the governo￿, meetings and those of the Education and Welfare. Estates Developlnent. Finance and Governance Committees. The Headmaster 15 assisted by the Senior Management T¢am comprising the Bursar, the Deputy Head, the Director of Studies and Head of C0-Cu￿]CUlar who also attend meetings of the Education and Welfare Cornmittee, the Head of Studies Administration, th¢ Head of Junior School, the He2d of Pr¢-Prep. DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED GOVERNORS, REPORT (¢oDtiDued) YEAR ENDED 31 AUGUST 2022 Governor Re£rultmtNt, Induetion and Tr4ining The Governaiice Commrltee regularly reviews the mix of skills that 15 available to the Board. New govemors are aptx)inted by the Board until the date of the next Annual General Meeting at which th¢y are eligible for election for a period of three years. All new govemors receive an induction pack, which explains their role, the role of the Board, and details of Charity Commission and Companies House requirements. They are assigned a mentor, offered a tour of the School and given background information oo previolls Board decisions, Board papers, current financial position, inforniation aboui the School and tuture developtnents. Governors attend a range of courses 8imed at keeping them up to date with matters relevant to their roles. including Saf¢guarding training. These are provided by the Association of Governing Bodies of Independeni Sehools IAGBIS}. Haysinacint)Te LLP, the Trust's auditors, and iHasco. One governor spends a day in school each term shadowing a member of staff or department. Governorn, Interests None of the governors has a financial or beneficial interest in the trust. RemuD¢Talion of Key Man4gernent Personnel Remuneration policy forkey management personnel is set by the governor5. The appropriatenes5 and relevance of the remuneration policy. including refer¢nce to comparisons with other independeiit s¢hools is ¢onsidered, to ensur¢ that the Sch￿[ retnains sensitive to the broader issu¢5 of pay and ¢mployment conditions elsewhere. Delivery of the School's eharitable vision and purpose i5 primarily dependent on our key management personnel and staff costs are the largesi single element of our charitable expendilure. STRA TEGIC REPORT Achievements and Performanee- Durstorj House School Pupils At the beginning of the year ther¢ were 349 pupils on roll. During the course of the year eighi pupils left the School and five joined. we therefore ended the sehool year with 346 puptls. All 29 boys in Year 8 scored sufficiently well either in Common Entrance or through Year 6 defetTed eRty (or individual school entrance examinations) to gain placeg at their Chosen schoo15 at 13+. Sevenawards w¢reoffered;one John Collet Academic Scholarship and one Foundation Academic Scholarship to St Paul's School. An Academic Scholarship through election at Winchest¢r College, an Academic Scholarship to Gresham's School, an Art Scholarship to Hampton School and two Spons Scholarships to Hampton School. Year 8 pupils leaving in July 2022 gained entry to the ftsllowing schools.. eight to St Paul's School, six to Harnpton School, five to Merchant Taylor's School, three to The John Lyon School, two to St Benedi¢t's School one ¢ach to City of London, Shiplakc College, Winchester College, Gresham's School and St James. Boy's school. 17 pupils left at I l+, gainlng entry to the following schools.. twelve to St Benedict's School, one each to Whitgift School. Runnymede College. HarrLxlian Schi)ol, The Int¢mational School of Zurich, and Reed's School. Buriarles Two pupils w'er¢ 5UPPOrted by Durston House S¢hi)ol during the year, one with a IOOO/o bursary and one with a 350/0 bursary. Staff The siaff - full and part-time. teaching and support - number¢d 89 (77 fi]11-time equival¢nts). The Board of Governors wish to ¢xpress th¢ir thanks to the Headinaster and staff for their ¢ontributions and efforts during the year, especially with regard to the operational, safeguarding and H¢alth and Safety challenges faced. Pastoral Care Durston House is committ¢d to safeguarding and promoting the welfare of pupils and expects all staff and v0]L￿teerS to share this ¢ommitment. Parents are given regular infom]ation about their children's social and academic progress through parent evett￿ngs in addition to the traditional end of term and year reports. The School has 'vertical grouping, within the organisation of the four 'Houses' 'Vertieal Group, meetings at which younger and older pupi15 work together on a nutniYr of projects including workshops on anti-bullying. DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED GOVERNORS, REPORT (Continued) YEAR ENDED 31 AUCUST 2022 Co-eurricular activitles: Sport Sport continued to play a full part in the life of the School. Saturday and Sunday morning football and rugby tournaments at the Swyncombe Playing Field were well attended by visiting schoo15 and large numbers of parents. Athletic sports at the Perivale Stadium were a highlight of the summer terni. Boys are encouraged to participate in t¢am sports- notably football, rugby union, hockey and cricket- at a number of ability levels within their age groups. Music Many of the pupils leorn at least one musical instru￿ent and belong to various ensemble groups. Boys in Years 3-8 are invtted to perforni as solo artists or ensembl¢s at the Annual Music. The Junior School and Upper & Middle School choirs also perforni at this concert and the annual Carol S¢rvic¢. Drama All pupils have the opportunity to tske part in small scal¢ drama a¢tivities andlor major productions. End of tem h]￿lights were the Pre-Prep's 'Who took all the rollry, the Junior School's 'Peter Pan. and the Year S production of 'Charlie and the Chocolate Factory,. Trlps and Outings The extension of the curriculum beyond the classroom ¢ontinu¢d to featur¢ prominently in the school calendar. All pupils benefited from a large number of one4ay trips to places of edueational and cultural inter¢st. The Tripg Poliey includes funded residential trips for all pupils in YeaTS 4 to 8. Environmental Initiatives: Cutting the 'carbon footprint Th¢ School continue5 to take very seriously the irnportance of environmental sustainability in its day-to-day operations. This is d¢monstrated by n)any practical environmental 2nd re¢ycling prograJnm¢s to reduce emissions in the buildings and by educational initiatives. The school hopes that by setting a good example as an institution, it can help to influence the expectaiiotis and behaviour of its pupils as fvture citizens and leaders. HAryington School Following the opportunity presented, the School entered intg a Change of Control agreement with Harvington School in AprÈl 2022 in which Durston House became the sole in¢mber of Harvington Scho91. The Headmist￿S left tlie School at the end of the Spring Terni 2021. The Change of Control Agreement was entered Ento at the start of the Summer Temi 2021. Durston l.louse is providing financin& via a commercial loan, for Harvington School to cover its working capital requirements until the end of the academic y¢ar 2022-23, secured by way of a legal charge over the Company's freehold interest. N05. 20. 22 and 24 Castlebar Road, Ealing, London W5 2DS. Harvington School will close on 31 August 202i and the assets and liabilities will be transferred over to Durston House. The Harvington stsff and pupils will trdnsfer over and Dursion House will become a co-edu¢ational sch(M)l on I September 2023. Achievement and Performgoee- Harvington S¢hool The consolidated accounts refl¢ct Harvington School's SummerTerni's results, notthe full y¢ar. Mr G Entwisle. and Mrs J Tw)rford, the Headmaster and Bursar of Durston House School managed the tt￿Sition and smooth handover of the school. The School had 95 pupils on the roll. 30 pupEls were 5UPPOrted by staff, Sibling anwor hardship discounts, scholarships and competition bursaries. All 14 pupils in Year 6 gained place5 * their chosen sch￿[S. FinaDcial Review- Durston House School The ¥ovemors believe that io order for any successful school to maintain. upgrade and improve the facilities it offers there has to be a financial surplus for the required investment in future PrOj￿ts. Thercfore financial targets have been set to asgist in the budgeting process and in monitoring perfomiance. The present targets include.. a} su4)llls as a percentage of tuition fees of 80/0 b) cash flow as a percentage of tuition fees of15V/o c) teaching staff costs of not tnore than 55010 of tuition fees. DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMFfED COVERNORS, REPORT (contiThued) YEAR Ef4DED 31 AUGUST 2022 The results for the year show the following.. a) A deficlt for the year of £231.883 (2021.. Surplu5 £60,310), 4.40/0 (Trf tuition fees (2021.. l /0) b) Surplus from operations before depreciation of £171.110 {2021.. £459,688), 3.26i/bo of tuition fees {2021.. 90/0) c) Teaching staff costs of £3.025,353 (202 I.. £3,046,575), 57010 of tuition fees {2021.. 570/0) Th¢ year ended in defi¢it. The main factors behind this were.. a) A decrease in fees income of £40,506 as a result of lower pupil numbers b) An increase in overall staff costs of £26,136 c) An increase in expenditure on maintcnan¢e of £34,575 d) An increase in expenditure on legal and professional fees of £96,3 12 exploring the opportunity and carrytng out due diligence ID relation to the merger with Harvington sch￿[. Flmoncial Review- Haryington School Th¢ results for the Summer Temi show th¢ following a deficit for th¢ terni of £250,902 and a deficit from operations before depreciation of £235,6fA. Reserves Poliey The Group's unrestricted funds stood at £13 million at the year-end, most of which is deployed to ￿nd tangible fixed assets totaling £1 I million. At ihe year end. free reserves stood at£3 million. The need for day-to-day working c2Pital is met by careful management of short-temi ]￿qUid resources. Free reserves are monitored termly by reference to eash flow projections to year-end and for a further five years when Tllajor capital project5 are being considered. This has allowed the goveTnors to plan the investment of substantial sums in the development of the existing buildings in recent years. The polIcy LS therefore to Continue to bU￿Id reserves out of annual op¢racing surpluses. The School intends to continue the standard of educational services currently provid&l. Plans for future periods The governoTS' Strdtegy is to tnvest in high quality facilities for education. Plan5 to combine the three sections of the School on the Carlton Road site were presented to staff, parents and the public for consultation in O¢tober2018. submitted for planning pemiission, bul refused. The long t¢mi aim remains a new school on th¢ Castlebar Fields siie within five to seven years. Achieving a high standard of acadeinic results is a constant aim whilst maintaining the breadth and depth of the education provided. Future plans are fjnanced primarily from fe¢ income and frtsin reserv¢s. The governors maintain an equitsble balance ensuring current pllpils benefit whi15t, at the same time, ensuring a sound infrastmtture £￿d financial base are preserved for th¢ next generation of pupils, just a5 current pupils ben¢fit today from inv¢stment made the pasL Principal risks and uncertainties The govemors together with the Senior Management Team, have assessed and categorised the risks that the School is. (Trr may become, exposed to ensure that there are satisfactory systems established to mitigate those risks. They believe the principal risks facing the School are th¢ difficulties in attracting key siaff to a London school, the effect of managing comp15ance and the tu￿¢nt political climate. To mitigate these risk5 the School offers Competitive salaries and a generous benefits package, managJ¢s ompliance by having clear policies in pla¢e, monitors the political climate and consider5 Ihe impact any changes might hav¢ and takes advice frorn the se¢lor body. The assessment of risks and potential risks are detailed in the Riik Management Risk A55essment and reviewed ternily by the Committees. Mr D G Henshall has th¢ role of overseeing risk manag¢ment aTid reporting on it to the full board of governors. DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED GOVERNORS, REPORT (continued) YEAR ENDED 31 AUGUST 2022 STATEMEf4T OF GOVERNORS, RESPONSIBILrrIES The governors (who are also dir¢¢tors of Dllrston House School Educational Trust Limlled for the purptsses of company law) are r¢sponsibl¢ for preparing the Governors, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Pra¢tice). Company law requires the govemots to prep￿ financial statements for each financial year which give a true and fair view of the state of affairs of the group and the charitable company and of the incotning resources and application of resources, including the income 2nd expend%ture, ot the group for that period. In preparing these fitwicial stat¢menW the governors are required to.. Select suitable accounting policies and then apply them consistently. Observe the methods and principle5 in the Charities SORP. Make judgements and estimates that are reasonable 2nd prudent- State whether applicable UK Accounting standards have been followed, subject to any maierEal departures disclosed and explaiT)ed in the financial statements; Prepare the financial statements oil th¢ going concern basis unless it is inappropriat¢ to preS￿me that th¢ charitable company will coniinue in business Th¢ governors are responsible for keeping proper accounting records that dis¢lose with reasonable accuracy at any time of the finantial position of the group and the charitable Company and enable them to ensure that the fEnan¢ial statetn¢nts comply with the Companies Aei 2006. They are also responsible for safeguardI￿g the assets of the group and the charitable company at]d hence for taking reasonable steps for th¢ prevention and detection of fraud other irregularities. So far a8 each of the govemors i5 8ware at Èh¢ time the report is approved= There is no relevant audit inf0m￿tIon of which the company's auditor5 are unaware. and The governors have taken all steps that they oughtto have taken to make themselves aware of anyrelevant audit infom)ation and to establish that the audÉtors are aw&re of that infonnation. Approved by the Board of Governors at its meeting on 24 May 2023 and gigned on its behalf by.. Kevin Mahoney Chairman INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED Opinio We have audited the financial statements of Dur5ton Hou5c School Educational Trust Limited for the year ended 31 August 2022 which comprEsc the Consolidated Statement of Financial Activities, Consolidaled Bnd ChaTity Balance Sheets, Consolidated Statement of Cash Flows. and notes to the financial statements, including a summary of 5ignifi¢ant accounting poli¢i¢5. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdoin Accounting Standards, inelllding Financial Reporting Standard 102 The Finan¢ialRÉporiingSia4ddtclapplicable in the uKa￿dRepUblic oflrel(7P7d(United t(ingdom Generally Accepted Accouniing Pra¢ti¢e}. In our gpinion, the financial statements.. give a true and fair view of the state of the group's and of the parent Chatitable company's affairn as at 31 August 2022 and of the group's and parent charitable company'% net movement in funds, including the income and ¢xpenditure, for the yrar then ended. have been properly prepared in accordance with United Kingdom Generally Aecepted Accounting Practice: and have b¢¢n prepar¢d in accordance with the requirements of the Companies Act 2006. Basi$ for opinion We conducted our audit in accordance with Intemational Standards on Auditing (UK) IISAS (UK)) and applicable law. Our responsibilities under those stsndards are lurther describ¢d in the Auditor's responsibElities for the audit of the f￿ancial siatemenls section of our reports We are independent of the group in accordance with the ethical rcquirements that are relevant to our audit of the financial statejnents tn the UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance ivith these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis ftir our opinion. Conclusions rel#tillg to goirjg coneern In auditing the financial $tstemet)t5, we have concluded that the tNstees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perforn)ed, we have T￿t identified any material uncertainiies relating to event5 or conditions ihat, individually or collectively, may cast significant doubt on the group's ability to continue as a going Concern for a period of at least twelve months from when the financial stat¢ments ar¢ authorised for issue. Our responsibilities and the re5ponsibilitie$ of the trustees with respect to going concern are d¢s¢rib¢d in the rel¢vant sections of this report. Other information The trustees are responsible for the other inforniatlgn. The other inforn)ation comprises the infomation included in the Govemors, Report. Our opinion on the financial Statements does not cover the other infomation and, ¢xcept to the extei)t otherwise explicitly stated in our reporl we do n(>t express any forni of assurance conclL6sion thereon. In connection with our audit of the financial statements, our r¢sponsibility is to read the oih¢r infomiation and, in doing sg, ¢onsider whether the other inforniation is materially incon5iStent with the financial statements or our knowledge obtained in the audit or otherwise appears to be rnaterially nii5Stated. If we identify such material incon51Sten¢ies or appaTent mai¢rial missiatemen1s, we are required to de￿MIl￿e whether there Es a material misstatement in the financial statements or a material misstatement of the other inforn￿lI0n. If, based on die work we have perfarn)ed, we conclude that ther¢ is a material Tlli5Statement of thi5 other information, we are requir¢d to report that fact. We have nothing to report in this regard. Opinion5 011 other Inatte￿ prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the infornlation given in the Governors, Report (which includes the strategic report and the directors, report prepared for the purposes of company law} for the financial year for which the financial statements are prepar¢d is Consistent with the financial statements,. and the straiegic report and the directors. report ineluded within the Governors, Report been prepared in accordance with applicable lega] r¢quirements. Matters oll which we are required to report by exception In the I1￿]t of the knowledtse and und¢r5tanding gf the group and the parent Charitable Company and its environinent obtained in the Course of the audit, we have not id¢ntified material misstatements the Governors, Report (which in¢orporates the strategic report and the directors, report). INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED We have nothing to report in r¢speci of the following matters in relation to whi¢h the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept by the parent charitable company; or the parent charitable company financial stat¢ments are not in agreeTnent with the accounting records and retums., or certain disclosures of trustees, remuiieration specified by law are not made. or we have not received all the inforn)ation and explanations w¢ require for our audit: or the t￿￿tee$ were not entitled to prepar¢ the financial statements in accordance with the sma]I companies. regiTne and take advantage of the small companies, exemptions in prepariftg the tru5t¢es' repott and from the requirement to prepare a strategic report. Respollsibilltles of trustees for the financial statemeDts As explained more fully in the Statement of Govemors. Responsibilities set out on page 7, the trust¢es (who are also the directors of the charitable coinpany for the pury)oses of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a tru¢ and fair view, and for such internal control as the truste¢s determine is necessary to enabl¢ the preparation of financial statements that are fr¢e from materi21 misstst¢Tnent, 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 10 CQIltinue as a going concem, disclosin& as applicable, matters related to going concern and using the going cortcern basis of accounting unless the trustees either intend to liquidate the charitable company or to Cease operations. or have no realistic altemative but lo do so. Auditor's re5ponsibllities for the audit of the finaneial statements Our objective5 are to obtsin reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or c￿r. and to issu¢ an auditor's r¢port that includes our opinion. Reasonable assurdnce is a high level of assurance, but l5 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 Enaterial if, individually or in the aggregate, they collld reasonably be expected to intluence the economi¢ decisions of users taken on the basis of these financitl statemEnts. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined 8bove. to detect Inaterial misstatements in respect of irregularities, in¢luding ftaud. The extent to which our procedures are capable of detecting irreglllarities, including fraud is detailed below.. Based on our llnderstsnding of the group and the environment in which it operat¢s. we identified that the principal risks of non- compliance with laws and regulations related to'fhe Educational (Independent School Standards) Regulations 2014, safeguarding regulations, health and safety requirements, GDPR, employment law, and chartty 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 th¢ preparation of the finan¢ial statements such as the Companies Act 2006, the Charities Act 201 I, and payoll tsxes. We evaluated Inanagement"s opponunities for fraudulent Inanipulation of the financial statement5 (including the risk of override of ontro15), and drmant and has no assets or liabilities. It is therefore not included in the consolidation. The Governors, having rev2ewed th¢ ￿ndIng facilities available to the Schogl together with the expected ongoing demand for places and the School's future projected cash flows, found that there are no material uncertainties and therefore have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. The followin¥ accounting policies have been applied consistently in dealing with items which are consid¢red material in relation to the School's financial statements. Fees receivable and sirnil&r income Tuition fees are stated •fter deducting allowanc¢s for awards and other remissions. Other educational it)come comprise$ incotne from school outings, activities and other related income. These sources of income are included in the a￿OuntS when they become receivable and their value can be measured with reasonable ¢ertainty. Government grant income GovemTMent grant income represents the totsl aTnount claimed frotn HM Rev¢nue and Customs under the Cor(Trnavirus Job Retention Scheme {CJRS). Th¢ income is accounted for in the period in which the associated salary payments are made to furloughed staff. b) d) £xpeRditure Expenditure is accounted for on an accruals basis. Charitsble activity costs Comprises all expenditure directly related to the obje¢ts of the School including direct staff costs attributable to each activity. Support costs included within the charitable activity comprise the tosts of all resources Utilised to directly support the School's primary activities. Gov¢mance ¢osts are those costs incurred in connection with the govemance of the charity and its a58ets and are primarily assoctated with con5tituiion81 and statutory r¢quirements. Pensjon ¢OSts Durston House School E.du¢ational Trust Limited withdrew from the Teachers, Pension Scheme with effeet from 31 August 2021. FroJn I September 2021 pension5 for the teaching staff are provided thr(Trugh the Aviva APTIS Pension Scheme a def]ned contribution scheme whEch complies with the requirements for a stakeholder pension gcheme. Harvington School Edueational Twst Limited contributes to the Teachers. Pension Scheme. a defined benefit scheme, at rates set by the Scheme Actuary. The scheme is a tnulti-employer pension scheme and it j5 not possible (o identify the assets and liabilities of the scheme whEch are attrsbutable to the school. In acCorda￿Ce with FKS 102 the scheme Ès accounted for as a defin¢d Contribuuon scheme. All non-ieaching staff, wher¢required bypursuant legislation, are members of a def2ned contribution stheme which complies with the requiremejits for a stakeholder pension scheme. 14 DURSTOTrI HOUSE SCHOOL EDUCATIONAL TRUST LIMITED STATEMENT OF ACCOUNTING POLICIES (continued) YEAR ENDED31 AUGUST 2022 Fixed assets All items of a capital nature with a value of over £1,000 are capitalised. Depreciaiion is calculated so as to write otTthe cosi of tangible fixed assets on a Straight-line basis over the expe¢ted useful economic lives of the assets concerned. The principal rates used for thi5 purposes are.. rreehold land Fr¢¢hold bU￿IdingS Fr¢ehold iEnprovements Furniture and equipillent Motor vehicles Freehold land is noi depreciated. 20-331AO/ 2￿/ Freehold improvements iT)clude any capital expenditure relating to land and buildings which 15 b¢lieved not to hav¢ a useful economic life of 50 years. The freehold property of Harvington School Educational Trust Limited is included at fail value at the date of the merger less depreciation from this date. Finanei81 Iiistrurnents The School only h&$ financial assets and financial liabilities of a kind ihat qualify as basi¢ financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. h) Debtors Trdde and other debtors are recognised at the settlem¢nt amount due after any discounts offered. PrepaJTrents are valued at the amount prepaid net of ￿Y discounts due. Cash At bank and in hand Cash is represented by eash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than thr¢e months fyom the date of acquisition and that are readily conY¢rtible to k]iown amowits of cash with insignificant risk of change in value. j) Creditors and Provi5iOiI$ Creditors and provisions 3re recognised where the School has a present obligation resulting from a past event that will probably result in the transfer of fund5 to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditor5 and provisions ￿ nornially re¢ognised at their 5¢tt1ement amount after allowing for any discounts due. k) Fund aecounting Th¢ fund5 of the School are accounted for as unrestricted or restricted ineom¢, in accordance with the tern)s of trust imposed by th¢ donors or any apptal to which they may have responded. Umrestricted income belongs to th¢ School's ¢orporat¢ rcserves, spendable ai the diwretion of the govemors either to further the School's Obj￿tS or to benefit the School itself. Where the governor5 decide to set aside any part of these funds to be used in future for some specifsc purpose, this is accounted for by transfer to the appropriat¢ designateil fund. Deslgnated fi]nds are 2 particular form of llnrestricted funds consisting of amounts, which have been allocated or designated for specific purposes by th¢ governor5. The usc of designated funds remains at the discretion of governors. l) Critieal sources of estimation uneert8iThty and accounting judg¢ments In the application of the accounting policies, the govemors are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sourc¢5. The estimate5 and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these ¢stimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are T￿ogniS¢d in the per￿0d in which the estimate is r¢vised if the revisitsn affects only that period, or in th¢ peThod of the revision and future periods if the revision atTect¢d current and future per￿Ods. In the view of the governors, no assumptions concerning the future or estimaiion uncerrainty aff¢cting assets or liabilities ai the balance sheet date ar¢ likely to ￿sU1[ in a material adjustment to their Carrying amounts in the next financial year. 15 DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2022 I) TTansfeT of eontrol The assets and liabilities transfetTed from Harvington School Educational Trust Limited on 23 April 2022 have been reeognised at the governors. best estimate of their fair value on the date of transfer. CHARITABLE ACTIVITIES 2022 2021 Fees reeeivable eonsist or: School fees Less.. total bursaries. hardship awards and staff discounts 5,719,569 {105.804) 5.329,695 {5,6911 5,613,765 5,324,004 Other educational income After school care 40,581 251,415 18,000 10,400 3,100 6,164 23.062 7,864 16,000 7.100 2.700 Acceptance fees not returned Registration fees Test fees Sundry ineoEne 329,660 56,726 TOTAL EXPENDITURE 2022 Totsl Staff costs Depreciatio Other costs 2022 Charitsble activity School Operating Costs.. Teaching costs Premises and maintenance costs Support and governance costs 3,375.374 171,519 980,340 535,880 591,555 435.731 3,911,254 1,181,305 1,416,071 418231 4,527,233 418.231 1,563.166 6,508,630 2021 Total Staff costs DepretiAtion Other costs 2021 Charitsble activity School Operating Costs.. Teaching costs Premises and maintenance costs Support and governance costs 3,046,575 130,436 886,106 234250 421,814 398,310 3,280,825 951,628 1,284,416 399,378 4,063,117 399,378 1,054,374 5,516.869 DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL ST A TEMENTS (Continued) YEAR ENDED 31 AUGUST 2022 TOTAL EXPENDITURE (continued) 2022 2021 Governanee included IR SUPPOTt costs Remuneration paid tr) auditor for audit services 29.950 17,670 29,950 17.670 2022 2021 Total expenditure Includes the following Auditor5 remuneration for audit - Durston House Educational TTUSI Harvington School Educational Trust 17,450 12,500 410,110 17,670 Depreciation- owned fixed assets 399.378 GOVERNORS. REMUNERATION The governors re¢¢ived no r¢muneration during this or the previous year. One governor received reimbllrsement of travel expenses of £75 (2021.. £1,157). During the year the governors purchased indemniiy insurance costing £2,410 (2021- £2,009). EMPLOYEES 2022 Full time Equlvalents 2021 Full time Equivafft¢nts No. The average number of employees (full and part time) analysed by function was.. No. Teaching- full time - part time Prernises - fllll time Suppon full time - part time 49 49 46 17 23 15 22 12 97 85 89 77 Teaching staff numbers includes teachers and teaching assistants. 2022 2021 The costs incurred in reS￿ct of these employees were.. Wages and salaries Social Security costs Pension costs 3,601,663 380,053 545.517 3.198.944 336,449 527,724 4,527.233 4.063,117 Key managetn¢nt personnel remunerdtion for the period totalled £294,465 (2021.. £299,084) 17 DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FJNANCIAL STATEMENTS (Continued) YEAR ENDED 31 AUGUST 2022 EMPLOYEES {contlMued) The number of employees whose ¢molum¢nts exc¢¢ded £60,000 excluding pension contributions was.. 2022 2021 No. £60,001- £70,000 £70,001- £80.000 £80,001- £90,000 £140,001 £150,000 Defined beneftts pension Contributions for eTnployees whose eEnolument$ exceeded £60,000 were £ Nil {2021'. £89,298). D¢fined contribution pension contributions for seven employee$ whos¢ ¢molum¢nt exceeded £60,000 were £89,605 (2021.. £11,965). TANGIBLE FIXED ASSETS (GROUP) Freehokl land buildings Improvement to freebold pre￿IseS Furniture and equlpment Tot41 Cost At 31 August 2021 Additions Trallsferred in on consolidation 5,357,197 4,207.342 4,728 326,533 60,045 27,888 9,891,072 64,773 5.887,888 5,860,000 At 31 Augusi 2022 11,217,197 4.211070 414,466 15,843,733 Depreciation At 31 August 2021 Charge for the year 2,358,490 92,754 1,842,154 265,831 229,822 59.646 4,430.466 418,231 At 31 August 2022 2.451,244 2,107,985 289.468 4,848.697 Net Book Value At 31 August 2022 8.765,953 2,104,085 124.998 10.995.036 Ai 31 August 2021 2.998.707 2,365,188 96,711 5,460,606 Included in freehold land and buildings is land with a book value of £3.278.666 which is not depreciated. 18 DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (Continued) YEAR ENDED JI AUGUST 2022 TANCIBLE FIXED ASSETS (CHARJTY ONLY} Freehold IAnd and buildings Improvernent to freebold premises Furnitur¢ equipmet)t Total Cost At 31 August 2021 Additions 5,357,197 4,207,342 4,728 326,533 60,045 9,891,072 64,773 At 31 August 2022 5.357,197 4.212,070 386,578 9,955,845 Depreciation At 31 August 2021 Charge for the year 2,358,4￿) 77,516 1,842,154 265,831 229,822 59,646 4.430,466 402,993 At 31 Augttst 2022 2,436.006 2.107,985 289,468 4.833,459 Net Book Value At 31 August 2022 2,921,191 2,104,085 97,110 5,122,386 At 31 August 2021 2,998,707 2,365.188 96,711 5,460,606 INVESTMENT IN SUBSIDIARY The company has an investment in a sub5idiaTy undertaking which comprises a holding of 100 ordinary shares of £1 earh, being the whole of the issued share capital of Dursion House School Limited, a company registered in England. Th¢ subsidiary undertaklng has been dormant throughout the year and the preceding year and has no assets or liabilities. DEBTORS Group 2022 Charity 2022 2021 Fe¢ d¢btors Pupil disburseinents Other debtors Prepayments Accrued income Amounts owed from group entitl¢5 56,821 4,664 37,831 61.026 11.982 49,550 4,664 25,584 47,238 11,982 377,722 64.668 3,125 20.269 14.374 17,915 172,324 516,740 120,351 CREDITORS Group 2Tr22 Charity 2022 2021 Arnounts falling du¢ witbin one year Bank loans and overdrafts Acceptsnce f¢es Fees in advance Trade Creditors Other tawes and social Security Other creditors and ac¢rua15 37.035 61.900 620,077 256,424 398,667 344,987 34,800 609.747 116,168 82,152 221,666 36,000 656,826 10,100 85,931 269.000 1,719,0 1,064,533 1,057,857 Afftounts falling due in Jnore th4M one year Acceptsnce fees 738,850 612,400 625,600 19 DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (Continued} YEAR ENDED31 AUCUST 2022 ANALYSIS OF NET ASSETS BETWEEN FUNDS Group Totsl Funds 2022 Bursary Fund General Funds Fix¢d assets CU￿ent assets Creditors due within one y¢ar Creditors due after one year 10,995,036 4,411,423 (1,719,090) (738,850) 10,995,036 4,411,423 (1.719,090) {738,850) Net assets 12,948,519 12,948.519 Charity only Bursary Fund Cener#l Funds Fund$ 2022 Fixed assets Cutyent assets Creditors due within one year Creditors due after one year 5,122,386 4,702,029 (1.064,533) (612,400) 5,122.386 4,702.029 (1.064.533) (612.400) Net assets 8.147,482 8.147,482 2022 Bursary Fund {cumul*tive movem¢nts) Transfers from Referves Donations received Bursaries awarded 446,110 103.752 {549,862) Compar8tive informatlon Totsl Funds 2021 B￿r%￿ry Fund Getheral Funds Fixed assetg CutTent assets Creditors due wEthin one year Creditors due after one yvar 5,460,606 5,460,606 4.586,719 4,602,217 (1,057,857) (1,057,857) (625,600) 1625.600) 15,498 Net asseis 15.498 8,363,868 8,379,366 2021 Bursary Fund {cutnulatAve rnovemenls) Transfers from Reserves Donations received Bursarie5 awarded 446.110 103.752 (534,364) 15,498 The Bursary Fund repr¢s¢nts ae¢urnulated income and expenditure which has been designated for use in th¢ funding of pupil bursaries. Unrestricted funds represent accumulated income from the School's activities and other sources that are available for the general purpos¢s of the Sch4)01. 20 Ib) DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (Contlnued) YEAR ENDED 31 AUGUST 2022 10. LIABILITY OF THE MEMBERS The company is limited by guarantee. The maxirnum liability of eaeh member, in the event of the company winding up due tg insu￿1Cle￿t fi￿d$, is £1. The company had twelv¢ members as at 31 August 2022 all of whom were directors. RELATED PARTY TRANSACTIONS The￿ were no related paty transaelions during the year. 12. PENSION COMMrrMENTS Tea¢hiDg staff- Durston The school's contributions to the pension scheme for teaching staff in the year were £369,619 (2021.. £421,11 l). At the year-end £47,716 was accrued in respect of contributions to thi5 scheme. Teaching staff - Harvington Harviiigton School Edllcational Trnst Limited participates in the Teachers, Pension Scheme ("the TPS") for 115 t¢aching staff. The pen5i0n charge for the year includes contributions payable to the TPS of £50,269 and at the year-end £21,850 was accrued in respeci of contributions to this scheme. The TPS is an unfunded multi-employer defined benefits pension scheme governed byThe Teachers. Pensions Regulations 2010 {as amended) and The Teachers. Pension Schein¢ Regulations 2014 (as amended). Members Contribute on a'"pay as you go" basis with contributions from metllbers and the ¢mployer being credited to the Exchequer. Retirement and other pension benefits are paid by public ￿ndS provided by Parliament. The eniployer contribution rate is set by the Secretary of Stste following scheme valuation5 undertaken by the Government Actuary's Department. The most recent actuarial Wdluation of the TPS was prepared ￿ at 31 March 2016 and the Valuation Report, which was published in Marth 2019, confirmed that the employer contribution rate for th¢ TPS would increase from 16.40/0 to 23.60/0 from I September 2019. Employers ar¢ also required io pay a s¢heme administration levy of 0.080/0 giving a total einployer Contribution rate of 23.68/f•. The 31 March 2016 Valuation Report w&s prepared in accordance with the benefits Set out in the scheme regulations and under the approach specified in the Directions. as they applied at 5 March 2019. However, the assttmptions were considered and set by the Department for Educaiion prior io the rnling in the 'McCloudlSarg¢ant Ca5¢'. This case has required the courts to consider eases regarding the impl¢ment2tion of the 2015 reforms to Public Service Pensions including the Teachers, Pensions. On 27 Jun¢ 2019 the Suprem¢ Court denied rhe government perniission to appeal the Court of Appeal's judgment that transitional provisions introduced to the refornitd pension schemes in 2015 gave rise to unlawful age discrimination. The government is resp¢cting th¢ Court's decision and has said it will engage fully with the EmploiThent Tribun21 as well as employer and member represetttatives to agree how the discriminations will be remedied. The government announced on 4 February 2021 that it intends to proeeed with a defe￿ed choice underpin under which tnembers will be able to choose eith¢r legacy or refomied scheme benefits in respect of their service during the p¢riod between l April 2015 and 31 March 2022 at the point they become payable. The TPS is subject t(Tr a cost cap mechanism which was in place to protect taxpayers against unfores¢en Changes in scheme eost5. The Chief Secretary to the Treasury, having in 2018 announced that there would be a revÈew of this Cost cap meehanism, in lanuary 2019 announced a pause to the ¢ost cap mechanism following the Court of Appeal's ruling in the McCloudlSarg¢ant case and until there is c¢rtainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020. and a eon5ultation was launched on 24 June on proptssed ehanges to the cost control mechanism following a review by the Government Actuary. Following a publi¢ consultation, the Government have accepted three key proposals recotnmended by the Government Actuary, and ar¢ aiming to implement th¢s¢ change5 in time for the 2020 YaluatioTts. The 2016 cost ¢ontn)I valuations have since been completed in January 2022, and the results inditated that there Wollld be no changes to b¢nefits or member contributions required. The results of the cost cap valuation are not used to set th¢ employer contrsbution rate, and HM Treasury confimed that any changes 10 the employ¢r contribution rate resulting from the 2020 valuations will take effect in April 2024. 21 DURSTON HOUSE SCHOOL EDUCATIOIYAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (Contlnued) YEAR ENDED 31 AUGUST 2022 Until the 2020 valuation is completcd it is not P055ibl¢ to conclud¢ on any financial impact or future chantses to the contribution rates of the TPS. Accordingly, no provision for any additional past benefit penskon costs is included in these fjnancial statements. Non-teaehlng Staff Th¢ schools contributions 10 the pension scheTnes of non-teaching staff in the year were £126.778 (2021.. £106,613). At the y¢ar-end £15.261 was accmed in respect of contributions due. 13. MERGER WITH HARVINGTON SCHOOL EDUCA TIONAL TRUST LIMITED Durston House School Edue81ional Trust Limited be¢ameth¢ sole memb¢r of H&rvinuFton School Educational Trust Limited on 23 April 2022, and so Harvington School Educatlonal Trust Limited became a subsidiary of Dursion Hous¢ School Edu¢ational Trllst Limited from this date. The following table shows the fair value of the net assets of Harvington School Educational TTUSt Limited on 23 Apyil 2022, which bKame part of the group reseryes at this d2tr'. Tangible fixed assets Cash Other net liabilities 5,887.888 187,841 {1.023,791) Total net ass¢ts 5,051.938 22