**FINTON HOUSE EDUCATIONAL TRUST GOVERNORS’ REPORT AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023** 

**COMPANY REGISTERED NUMBER: 02119682 REGISTERED CHARITY NUMBER: 296588** 



Finton House Educational Trust | Year Ended 31 July 2023 

## **Table of Contents** 

|1|2022-2023 Overview of School performance ............................................................................................................ 2|
|---|---|
|2|Educational highlights ................................................................................................................................................ 2|
|3|Our Charity ................................................................................................................................................................. 4|
|4|Public Benefit & Partnerships .................................................................................................................................... 6|
|5|Operational & Financial Review ................................................................................................................................. 7|
|6|Governance ................................................................................................................................................................ 9|
|7|Reference & Administrative Details ......................................................................................................................... 10|
|8|Statement of Governors’ Responsibilities ................................................................................................................ 12|
|9|Independent auditor’s report to the members of Finton House Educational Trust ................................................ 13|
|10|Statement of Financial Activities.............................................................................................................................. 16|
|11|Balance Sheet as at 31 July 2023             ................................................................................................................... 17|
|12|Cashflow Statement for the year ended 31 July 2023 ............................................................................................. 18|
|13|Notes to the Financial Statements ........................................................................................................................... 19|



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Finton House Educational Trust | Year Ended 31 July 2023 

## **1 2022-2023 Overview of School performance** 

## **1.1 Pupil Numbers, fees and market conditions** 

Finton House provides day school education in London SW17 to boys and girls from the ages of 4 to 11. It is a charity, founded in 1987 on the principles that there should be no academic selection for entry into Reception and that all the children, including those with special educational needs, should enjoy a completely inclusive, nurturing environment. The impact and success of a Finton education is evident in the number of children waiting for a place to join in Reception or for an occasional vacancy in all Year groups, and the remarkable success of pupils being awarded places and scholarships into a wide range of selective independent senior schools. 

The Financial Review below demonstrates that the School is in a sound financial position with a full pupil roll, waiting lists for occasional places in most Year groups and generating a modest surplus for the 2022-23 academic year. The fees remain very competitive with other similar independent schools in the area, and represent good value for money. The school enjoys an enviable reputation in the local area. This stability is critical as the School predicts that inflation, changing demographics, and a potential change in government, will create financial headwinds that will need to be carefully navigated over the next few years. 

Recognising these challenges, the School has been working to ensure the provision and facilities are second to none, and to widen its catchment area.  A School bus route began in September 2023 and has brought some families to the School who would otherwise have looked closer to home. If this is successful, other routes may be introduced. 

The School’s financial stability is threatened by the risk of a change in Government. The Labour Party has been clear in its proposals to remove business rates relief and impose VAT on private school fees. These risks are set out in more detail below. 

## **2 Educational highlights** 

## **2.1 Leadership** 

In May 2023, the school underwent a ‘Focused Compliance and Educational Quality Inspection’ from the Independent Schools’ Inspectorate and the outcome was ‘Excellent’ for the two areas of judgement: ‘Pupils’ academic and other achievements’ and ‘Pupils’ personal development’. The strength of governance and leadership was noted and the School was judged to be compliant against the Independent School Standards Regulations (ISSRs). 

The School has continued to develop its use of technology, enhancing the teaching and learning where appropriate. It is about to trial one-to-one devices for the older pupils to maximise ease of access when required, including at home. Developments have also continued in areas such as equality, diversity, inclusion, wellbeing and development. 

## **2.2 Senior School Places** 

The 2023 Year 6 leavers of 33 children made 123 applications to 37 senior schools. They received a total of 91 offers with every child receiving at least one. They were also awarded 16 scholarships, 5 academic and 11 for sport. These very pleasing results are testament to the commitment and dedication of the teachers, the bespoke preparation that goes on prior to their exams and the foundations that were built in the preceding years. 

## **2.3 Outdoor Learning** 

We have continued to embed this into the curriculum, particularly in the lower years and are continuing to build on opportunities to involve KS2 as well. We have also enjoyed housing an incubator from Tom’s Farm and hatching some rare breed chicks. This included the installation of a ’hatch-cam’ so the children could watch from home or from their classroom. 

During Summer 2023, Year 6 pupils went on a five-day residential in France, Year 5 spent five days in North Wales, Year 4 at the Cumulus Outdoor Centre in Dorset and Year 3 stayed at PGL centre Windmill Hill for their residential trips. 

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Finton House Educational Trust | Year Ended 31 July 2023 

Our next Outdoor Learning Day is planned for March 2024. 

## **2.4 Wellbeing** 

The wellbeing of the pupils and staff has remained a priority once again this year. The Mental Health Support Group, comprising staff from each area of school life, oversees the wellbeing of pupils and staff with a range of existing and new initiatives. Our annual Pupil Attitudes to Self and School (PASS) Survey is conducted in the autumn term with a second survey of any children whose scores were a concern. If these children’s scores remain concerning, additional support is put into place through social groups, one to one sessions or counselling with one of our two school counsellors. We continue to offer mentor groups for pupils in year 5 and 6, Mindfulness lessons for Reception, Year 4 and Year 6 children and Mindfulness drop-in sessions open to all pupils. In the summer term, with the support of staff, pupils and parents, we transformed a disused strip of land on Trinity Fields into The Secret Garden. Pupils use this space to play, plant, learn and for periods of peace and quiet reflection. 

For our staff, we conduct regular wellbeing surveys which inform our decision making and the results and action points are fed back to staff. We offer a number of staff social events such as the annual staff quiz, a staff choir, weekly pilates classes and an annual staff rounders and cricket match. 

## **2.5 More Able Pupils** 

We aim to ensure that boys and girls of all abilities, including the most able, are nurtured and challenged to make excellent academic and personal progress. All children are encouraged to express their opinions, strive for excellence and think ‘out of the box’. 

We use a range of strategies to identify more able pupils and plan for their needs. A child is identified as being more able when they achieve, or are believed to be capable of achieving, high levels of attainment across the curriculum, or in particular skills or aspects of subjects.  When a child is identified they are included on our More Able Register which is shared with all staff. This list is regularly updated and officially reviewed by all teachers twice a year (October and March). This is overseen by the Academic Team. 

A child may be added to the More Able Register based on teacher judgement and discussions with other staff, performance in school exams, CATs tests and other standardised assessments, as well as following observation or reports from previous schools, specialist teachers, and peripatetic teachers either in school or out. We currently have 59 children on our More Able Register, some in more than one subject area/category. 

Teachers plan carefully to provide children with opportunities to show what they know, understand and can do through the use of differentiation, open-ended questions, enrichment activities, opportunities for individual progression in their work, educational visits, inter-school events, and national events and competitions.   There are a number of music ensembles, creative writing, languages, swimming and art clubs which are by invitation only and well-attended. 

The children have experienced a range of events and competitions in the last year which have provided excellent opportunities for them to nurture and demonstrate their ability. These include: 

- National Literacy Champions Quiz – winners of regional heat Primary School Prize 

- Primary Maths Challenge – 2 Silver and 3 bronze certificates 

- 4 children published as part of Young Writers, Poetry Stars 

- IAPS swimming finalists 

- 24 children chosen in the RCA annual Art competition 

## **2.6 Special Educational Needs (SEN)** 

As well as having a large number of children on our More Able register, the school is proud of its broad intake, which includes some children with SEN. According to the government figures for 2022-23, 15.3% of UK school children had SEN (2.3% Educational Health Care Plan (“EHCP”) and 13% SEN support).  At Finton 17.4% of children had SEN (0.9% EHCP and 16.5% SEN support). 

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Some of these children may not have gained a place in a mainstream setting, but where we believe we can provide for a child with our generous staff ratio and expertise on-site such as an occupational therapist and speech and language therapist, we will do so. This approach was one of the founding principles of the school. 

In accordance with the 2010 Equality Act, the School operates a fully integrated admissions policy.  Children of all abilities are offered places, including those with known special needs. Children with special needs are assessed before a place is confirmed to ensure the School can reasonably meet their needs. Generally, the School welcomes children whose needs can be met with additional support in the classroom and who do not require significant levels of separate teaching. These needs have included Down's Syndrome, hearing impairment, Autism, ADHD, speech and language difficulties, and educational developmental delay. Children with special educational needs are supported by the Special Educational Needs Coordinator, a team of Special Needs Assistants and in-house therapists. In addition, those mainstream children, who, once in the School are found to have additional learning needs, are supported by the Special Educational Needs Coordinator and, if appropriate, by specialist support. The School is able to provide one-to-one tuition for children with literacy and/or numeracy difficulties, including those with dyslexia, dyspraxia or dyscalculia, as well as specialist support for children with speech and language difficulties or occupational therapy needs. The additional cost of such extra staffing support over and above parent and Local Authority contributions, through EHCPs, is borne by the School and by the Special Needs Appeal Fund. 

## **2.7 Music** 

Approximately 70% of pupils above Year 3 learn a musical instrument, while similar musical experiences such as the Y1 Violin group are offered to our younger students. The School has a strong Wind & Brass Band, a Choir and a Violin Ensemble, which perform in concerts within the School as well as the local community. All Upper School pupils perform in a concert each year, while younger students perform for their annual musical. Every class has two music lessons on their timetable, one focusing on singing and basic musicianship, while the other focuses on learning various and diverse musical instruments (recorder, ukulele, keyboard and djembe drumming), music theory and composition. In addition, we have a company, MTech, offering a music composition club after school, which has proved very popular. 

## **2.8 Drama** 

All children had a weekly drama lesson and Year 5 and 6 also had Dance for one term.  All children have taken part in a variety of drama performances over the course of the year: Year 2 and Year 6 all performed in their major play production at Trinity Chapel and the Streatham Space Project respectively. Other Year groups have performed in Class plays and assemblies and some in dance workshops. Every child recited a poem to their class and parents during Poetry Week and many children play musical instruments in assemblies, perform readings or make speeches. After school, there is an Act Drama & LAMDA Club for any children in Year 3 – 6 who wish to pursue this area further. 

## **2.9 Sport** 

There are four full time members of staff teaching PE with support from many other members of staff who are qualified coaches in various sports. All pupils have the opportunity to develop individual and team skills through coaching and fixtures with other schools in football, rugby, cricket, netball, hockey and swimming. We also teach athletics, gymnastics and dance as part of our PE curriculum. There are after school clubs that offer additional sports such as karate, cheerleading and dodgeball. The scheme of work for sport has been adapted to include more co-ed teaching of cricket and the introduction of a fitness programme to track the improvement in fitness of the children. 

## **2.10 Art** 

Art is taught to every class in the school by a specialist teacher and teaching assistant, both of whom are artists.  There are a variety of art clubs after school and a lunch time club.  Scholarship sessions are offered for those older pupils assembling an art portfolio for scholarship entry to senior schools. 

## **3 Our Charity** 

Finton House was founded in 1987 as a charitable trust with two principles in mind. Firstly, that children joining Reception should not have to face the pressures of a competitive entry system. Secondly that of providing an inclusive 

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environment, where all children, including those with specific needs, have the same opportunities. These principles underpin the educational experience at Finton House. 

The school motto "Open Hearts and Guiding Hands" sums up the warm and caring relationships that we aim to promote in order to provide the best education. 

Our objects are: 

The objects of the School (the “Objects”) are for the public benefit to establish and maintain in London or elsewhere any school or schools to further the education of boys and girls including those with special educational needs. 

At Finton House: 

1. Everyone feels safe, happy and valued in a community that promotes lifelong health and wellbeing. 

2. Children of all abilities, including the most able and those with special educational needs, are nurtured and challenged to make excellent personal and academic progress. 

3. The education is broad, inclusive and inspiring, enhanced by technology as well as making use of the outdoors. 

4. Children are prepared for the next stage of their education in a positive and stimulating environment. 

5. Children discover their own strengths and passions in order to flourish in a rapidly changing world. 

These aims are achieved through: 

Developing a culture of responsible, caring and happy people - We protect and enhance the wellbeing of the entire Finton community and beyond, by: 

- Embedding the Finton Goals of self-belief, kindness, respect, communication, curiosity, resilience and doing the right thing. 

- Continuing to enhance our inclusive provision. 

- Promoting and embedding diversity across the school. 

- Encouraging and modelling behaviours that help protect and sustain the local and global environment. 

Creating a dynamic and diverse learning environment - We offer exciting opportunities for learning by: 

- Developing use of the latest technology, to enhance teaching and learning and foster creativity. 

- Ensuring that the physical environment is designed and maintained to the highest standard. 

- Providing access to a range of external facilities and, when and where possible, be involved in their development. 

Providing a broad, inclusive and inspiring education - We develop the education we provide by: 

- Challenging all pupils to ensure maximum personal and academic progress. 

- Providing an exciting, relevant and broad curriculum. 

- Offering a varied and stimulating extra-curricular programme. 

- Preparing pupils to succeed in a rapidly changing world, whilst nurturing their well-being 

Ensuring the longevity of Finton House - As a non-profit making charitable trust, we ensure Finton House remains a first–choice school by: 

- Investing in staffing, facilities and resources. 

- Controlling our costs to ensure good value for money. 

- Seeking alternative sources of income to help mitigate fee increases. 

- Ensuring the local community benefits from our charitable aims. 

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## **4 Public Benefit & Partnerships** 

## **4.1 Development Strategy** 

The School is committed to its founding principle of inclusivity and has a dedicated Annual Fund which underwrites its charitable initiatives. Donations to the Annual Fund can be regular (by making the ‘1987’ Pledge, which involves committing to regular donations of either £19.87, £198.70 or £1,987.00) or can be one-off donations. 

The school holds several events a year in support of its bursaries and partnerships, including: 

- The termly second-hand uniform sale, where parents donate old uniform to be sold and all proceeds donated to the Sally Walker Bursary Fund 

- The annual Parent Quiz where all profits go to the Annual Fund 

- The annual school fete (‘Finton Fest’) where all profits go to the Annual Fund. 

## **4.2 Sally Walker Bursary** 

Our means-tested bursaries are central to helping ensure that the education offered by Finton House can be accessed by children from families who would otherwise be unable to afford the fees. When assessing means, all family income, assets and liabilities are reviewed. 

Bursaries in 2022/23 amounted to £159k and benefitted 8 students (2021/22 £138k and 7 students). The School continues to promote the bursary fund across the local area to increase awareness and participation. 

We have also taken steps to form relationships with other organisations to create channels for recruiting potential bursary recipients. This year, we awarded bursary places to two pupils with a high level of sporting ability through such a relationship. In 2022/23, the School supported a refugee pupil from Ukraine with bursary funding. 

## **4.3 Partnerships** 

The School is keen to ensure that the education offered is not restricted to those who can afford fees. The School's belief is that pupils benefit from learning within a diverse community which includes children with special needs.  This integration is central to the ethos and philosophy of the School. 

The provision of fee assistance through the bursary scheme, combined with the School's special needs programme and outreach programmes, helps contribute to a widening of access to the education offered and the facilities enjoyed by our pupils. 

The School continued to support Trinity Fields Trust (Charity no.1060813) which uses the income from us to enable other young people under the age of 25 in the local Wandsworth and Lambeth communities to use these playing fields. Our 50-year partnership with the Fields is underway. This partnership includes the School paying a 1.4 multiplier on its use expressly to provide Trinity Fields Trust the funds to support youth sport in the community. In the year 2022/23, the School supported several sporting initiatives involving multiple state primary schools in conjunction with Trinity Fields, such as the Trinity Shield cricketing afternoon. 

The School has, with the support of Trinity Fields, created ‘The Secret Garden’ as a wellbeing outdoor resource for use by the school and other community groups. The project was funded entirely through parent donations to the Annual Fund. In 2022/23 The Secret Garden was used by local nurseries, access was given to Trinity Road Chapel parishioners and community groups via a gate which was installed, and it was used weekly by the organisation Share. 

In addition, the School has engaged in partnerships as follows: 

- Tom’s Farm – a partnership based on outdoor learning. Finton House has paid for their new petting shed which will be used by a wide range of local schools. 

- Wandsworth Foodbank – appeal for the Harvest Festival. 

- Little Village – a local charity which provides local families in need with much-needed baby and toddler care items. 

The Governors have regard to the Charity Commission’s guidance on public benefit in setting its aims and objectives for the School. This includes: 

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Finton House Educational Trust | Year Ended 31 July 2023 

- The creation of an Assistant Head role responsible for forming and nurturing partnerships. 

- The inclusion of partnership activity within the assessment system for employees, having to demonstrate partnership working as part of the criteria for pay progression. 

- The creation of an advisory Development Board to aid in the fundraising for partnerships, which will help unlock barriers to entry. 

## **5 Operational & Financial Review** 

## **5.1 Estates** 

The School continues to upgrade and enhance its Estate and facilities. The School aims to maintain investment in infrastructure and ensure that facilities are fit-for-purpose and meet all legislative and regulatory requirements. The Board has allocated funds to renovate and refresh classrooms in a multi-year program that started in Summer 2022 and is due to complete in Summer 2025. A key focus of this investment maximises the positive impact that well-designed facilities can have on teaching in the classroom. The School has also completed projects to lay a new floor in the Hall and Gym, upgrade changing room facilities at Trinity Fields and ensure that the Wandle Road external wall is safe and looks great for years to come. 

## **5.2 Human Resources** 

2022-23 saw low staff turnover and a healthy focus on continuous professional development. HR policies, new pay structures and employment practices introduced in previous years were embedded in the staff population which give the School a stable structure and mitigate HR risks through good practice and effective procedures 

The School maintains a focus on employee welfare and wellbeing. The staff Equality, Diversity and Inclusion; Culture; and Mental Health groups are all integral to school life and are a source of various employee-led initiatives to support all staff. 

## **5.3 Information Technology** 

The School has a good IT infrastructure with effective cyber security measures, network resources and interactive whiteboards in all areas. We have allocated funds to ensure that we can be an exemplar school for the effective use of IT in the classroom. The school continues to upgrade and invest in IT infrastructure to enable teaching and learning, facilitate good working practices and protect the school’s data and other information resources. 

## **5.4 Financial Performance** 

The School’s financial performance in the year ending 31 July 2023 was in line with expectations. Despite the cost-ofliving crisis in the wider economy following BREXIT and COVID, student numbers have been strong with the Reception year close to capacity and the rest of the school ahead of expectations. The school has also seen the impact of higher inflation in manpower, utilities and food costs. 

The School’s net income returned an overall surplus of £603,674 (2022: £279,030 restated) before the effects of investments. Our investments returned a net gain of £6,923 (2022: £39,336). 

School Investments (including the Sally Walker Bursary & Special Needs Fund) stood at £1,656,585 (2022: £1,590,880) at the year-end after gains and losses on investments, donations and reinvested investment income. 

## **5.4.1 Financial Policies** 

Financial Policy & Procedure is delegated to the Finance & General Purposes Committee. The School has developed an overarching ‘Financial Policies & Procedures Manual’ which brings together all school policies and procedures relating to financial control. This document is reviewed annually and approved by the Chair of the Finance & General Purposes Committee and the Bursar. 

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## **5.4.2 Investments & Reserves** 

The School has full powers of investment over its surplus funds and the funds of the Special Needs Appeal and Sally Walker Bursary funds which are managed by a professional fund manager. Short term surplus cash balances are placed in high interest bank deposit accounts. 

The School’s Investment & Reserves Policy is contained with the Financial Policies & Procedures Manual. 

The School takes a longer-term view on investments seeking to grow the capital balance and manage risk, and expects them to fluctuate over time. The current financial year saw small returns on our investments. 

The School maintains free reserves in order to meet its charitable obligations in the eventuality of an unexpected shortfall in revenue. The Charity Commission defines free reserves as unrestricted funds available to spend on the general purposes of the School and therefore, excludes those designated for other specific purposes and those already utilised in purchasing tangible assets. 

The reserves of the School are represented by the funds as shown in note 13.17. The year-end reserves position was £8.682m (2022: £8.079m restated) of which £6.992m (2022: £6.513m restated) was held in unrestricted funds. The majority of these unrestricted funds relate to the accounting value of the School’s freehold property £5.410m (£5.452m) 

The Governors believe that the level of resources freely available for its general purpose should be sufficient to secure the future of the School in line with development plans. The Governors have determined that the appropriate level of free (liquid) resources should be one term’s expenditure, i.e. approximately £2.0 million. 

## **5.4.3 Risk Management** 

The School maintains an active risk register, reviewed termly by the Finance & General Purposes Committee. Material areas of concern are highlighted below. 

## **VAT on school fees and other political influences** 

A change of Government is considered likely and Labour has expressly stated that they will introduce VAT on private school fees. This may be complicated to implement, but if it was to be enacted it would have a significant impact on the School in higher school fees, partially offset by recoverable VAT on non-staff operating expenses. Research from the Independent Schools Bursars Association (ISBA) suggested that up to 8% of independent school parents may withdraw pupils as a direct consequence of the imposition. This equates to a drop of around 27 pupils, equivalent to £510k in fees per year. 

Labour is also expected to remove business rate relief from Charities and the School is factoring this into its forecast models. 

We are also concerned about the possible loss of charity status and the imposition of corporation tax. This would be particularly concerning as it would impact the School’s ability to deliver the broader social and development agenda, both through our partnership schemes with local charities and our bursary places. 

## **Cost-of-living** 

Parents will clearly be affected by the cost-of-living crisis or other factors that could make schools fees not affordable. It is reported by the ISBA that in previous recessions there was commonly an 18-month lag before there was any noticeable decline in pupil numbers. Inflation also impacts our staff body with a resultant upward pressure on salaries and increased competition for the best staff. The School is attentive to the impact of fee increases on parents and strives to remain competitive with staff salaries. 

## **Changing Demographics** 

Birth rates have been dropping consistently in Wandsworth, and London as a whole, for over ten years. In Wandsworth the birth rate is now 76% of the figure from 2011. This will already be having an impact on the size of the School’s market and Finton has done well to maintain pupil numbers in this context through its ongoing efforts to be school of choice in the local area as well as initiatives such as increasing its catchment area through the new school bus route. The full impact of the reduction in the birth rate are still to be experienced, and the School remains mindful of this risk. 

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## **Cyber Security** 

The school takes the risk of data breaches, phishing attacks, ransomware and other security or information technology failures very seriously. Mitigation strategies adopted include ensuring that systems are secure, backed up, passwords are used and changed regularly, acceptable use policies are reviewed and signed by children, staff and parents. The School also provides IT, fraud and safeguarding training where needed and consults on the matter proactively with advisers and insurers. 

## **Safeguarding, Health & Safety and Compliance** 

The welfare and wellbeing of the School’s students and staff is of critical importance. Significant work is undertaken to ensure compliance with applicable Health & Safety, Employment, Charities Commission guidelines and other legislation. Efforts in this area include staff awareness and training and the use of external consultants to perform periodic audits. 

## **Competition and the quality of Teaching & Learning** 

The School is alert to the potential threat of competition from neighbouring schools or the impact on student numbers of a decline in academic standards. Local schools are monitored closely to ensure that the offering to parents is competitive in terms of teaching & learning, entrance policies, academic results, special needs provision, clubs, sports, music, trips, after-school provision and fee levels. The quality of teaching & learning in the classroom is strengthened through recruitment practices, professional development, mentoring and training programmes for staff. The performance appraisal cycle is used by the Head and Senior Leadership Team to continually monitor and improve teaching & learning. 

## **5.4.4 Going Concern** 

The Finance & General Purposes Committee reviews the School’s cash flow forecast on an annual basis with regards to the charity remaining a going concern. This was formally completed in February 2024, with the governors concluding the School remains a going concern. The School has created financial models projecting our income and expenditure over the next 10 years and applied several stress scenarios revolving around drops in pupil numbers and any potential changes in key drivers. 

## **6 Governance** 

The Governors, who are also directors for the purposes of the Companies Act 2006 and trustees for the purposes of the Charities Act 2011, present their report with the financial statements of the School for the year ended 31 July 2023. The financial statements have been prepared in accordance with the Statement of Recommended Practice for charities (SORP 2015) (second Edition, effective 1 January 2019); Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006. The Report of the Governors includes a Strategic Report for the purposes of the Companies Act 2006. 

## **6.1 Governing Document** 

The School is controlled by its governing document, the Memorandum and Articles of Association, and is constituted as a company limited by guarantee, as defined by the Companies Act 2006. 

## **6.2 Governing Body** 

The Charity's governing body is the Board of Governors ("the Board"), the members of which are listed in these accounts. 

## **6.3 Organisational Structure** 

The Governors, as the Charity Trustees and Directors, are legally responsible for the overall management and control of the School and meet at least three times a year.  In addition, the Finance & General Purposes Sub-Committee meet at 

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least every term to review the School's finances in general and to approve and monitor budgets, the audited accounts and the annual report prior to presentation to the Board. 

There are also further sub-groups as follows: 

- Formal Committees (meeting termly) 

   - Finance & General Purposes 

   - Education 

   - Safeguarding & Wellbeing 

   - Marketing & Development 

   - Nominations 

- Additional Committees meet if and when required, such as an audit committee. 

   - It is the responsibility of the Senior Leadership Team of the School to implement the policies of the Board. The day-to-day running of the School is delegated to the Head supported by the Bursar. The Head and Bursar attend all meetings of the Board. 

The School is an active member of IAPS for the promotion and maintenance of preparatory school standards, and is inspected regularly by the Independent Schools Inspectorate, an affiliated body of Ofsted. 

The pay of key personnel is set by the Governing Body, reviewed annually. The School participates in the annual Baines Cutler Financial Benchmarking Survey for staff and commissions a custom report to benchmark key personnel salaries against local comparators as required. 

## **6.4 Recruitment & Appointment of New Governors** 

The Charity's elected Governors are appointed by the Board of Governors on the basis of nominations received from the Nominations Committee who conduct a process of interviews and selection to ensure the person meets the Board's requirements concerning eligibility, personal competence, specialist skills and availability. New Governors are inducted into the workings of the School, including Board Policy and Procedures by the Head and Bursar. 

At least one parent Governor is normally appointed to sit on the Board at any one time. 

## **7 Reference & Administrative Details** 

|**Registered Company Number**|02119682|
|---|---|
|**Registered Charity Number**|296588|
|**Registered Office**|Finton House School<br>171 Trinity Road<br>London SW17 7HL|



## **Governors (as at July 2023)** 

|**Name**|**Date of Election**|**Role/Committee**|
|---|---|---|
|Andrew Cattle|Elected 2022<br>Retires 2026|Finance and General Purposes|
|Annabel Tuckey|Elected 2019<br>Retires 2027|Education|
|Annie Thackray|Elected 2023<br>Retires 2027|Education|
|Ben Freeman|Elected 2016|Head|
|Clare King|Elected 2015<br>Retires 2024|Education<br>SEN|
|Daniel Skirton|Elected 2023<br>Retires 2027|Education|



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|Harriet Turnbull|Elected 2022<br>Retires 2026|Safeguarding and Wellbeing|
|---|---|---|
|Julian Walker|Elected 2022<br>Retires 2026|Finance and General Purposes<br>Development<br>Health & Safety|
|Katherine Stuart|Elected 2018<br>Retired 2023|Legal|
|Liz Buckley|Elected 2018<br>Retires 2026|Chair|
|Lucy Myres|Elected 2022<br>Retires 2026|Finance and General Purposes|
|Matthew Falconer|Elected 2022<br>Retires 2026|Finance and General Purposes|
|Myles Pink|Elected 2014<br>Retired 2023|Finance and General Purposes<br>Nominations|
|Natalie Trumper|Elected 2022<br>Retires 2026|Safeguarding and Wellbeing|
|Nathalie Hart|Elected 2019<br>Retired 2023|Safeguarding and Wellbeing|
|Nick Addyman|Elected 2017<br>Retires 2024|Vice-Chair<br>Finance and General Purposes<br>Development|
|Paul Mehta|Elected 2022<br>Retires 2026|Finance and General Purposes|
|Sally Hobbs|Elected 2015<br>Retired 2023|Education<br>Nominations|
|Saroop Purewal|Elected 2022<br>Retires 2026|Safeguarding and Wellbeing|



## **Head** 

Ben Freeman 

## **Company Secretary & Bursar** 

Gareth Atkinson - appointed August 2022, resigned March 2023 Mustafa Davies - appointed on interim contract from April 2023 to February 2024 Nicholas Karelis - appointed January 2024 

## **Auditors** 

Haysmacintyre LLP, 10 Queen Street Place, London, EC4R 1AG 

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## **8 Statement of Governors’ Responsibilities** 

The Governors (who are also the directors of Finton House Educational Trust for the purposes of company law and Trustees for the purposes of charity law) are responsible for preparing the Report of the Governors and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". 

Company law requires the Governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the School and of the incoming resources and application of resources, including the income and expenditure, of the School for that period.  In preparing those financial statements, the Governors are required to 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charity SORP; 

- make judgements and estimates that are reasonable and prudent; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the School will continue in business. 

The Governors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the School and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

In so far as the Governors are aware: 

- there is no relevant audit information of which the School's auditors are unaware; and 

- the Governors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. 

Report of the Governors, incorporating a strategic report, approved by order of the Board of Governors, as the company directors, on and signed on the board's behalf by: 

|Name|Name|Role|Role|
|---|---|---|---|
|L Buckley||Chair of Governors||
|Signed||Date||
|||29/04/2024||



12 



Finton House Educational Trust | Year Ended 31 July 2023 

## **9 Independent auditor’s report to the members of Finton House Educational Trust** 

## **9.1 Opinion** 

We have audited the financial statements of Finton House Educational Trust for the year ended 31 July 2023 which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement, 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: 

- give a true and fair view of the state of the charitable company’s affairs as at 31 July 2023 and of the charitable company’s net movement in funds, including the income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **9.2 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 charitable company 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. 

## **9.3 Conclusions relating to going concern** 

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’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 governors with respect to going concern are described in the relevant sections of this report. 

## **9.4 Other information** 

The governors are responsible for the other information. The other information comprises the information included in the Report of the Governors. 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. 

13 



Finton House Educational Trust | Year Ended 31 July 2023 

## **9.5 Opinions on other matters prescribed by the Companies Act 2006** 

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

- the information given in the Report of the Governors (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 prepared is consistent with the financial statements; and 

- the strategic report and the directors’ report included within the Report of the Governors have been prepared in accordance with applicable legal requirements. 

## **9.6 Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Governors (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: 

- adequate accounting records have not been kept by the charitable company; or 

- the charitable company financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of governors’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit. 

## **9.7 Responsibilities of trustees for the financial statements** 

As explained more fully in the governors’ responsibilities statement set out on page 12, the governors (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 governors are responsible for assessing the 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 charitable company or to cease operations, or have no realistic alternative but to do so. 

## **9.8 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 charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the independent school regulations, safeguarding regulations, health and safety requirements, 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 Charities Act 2011 and Companies Act 2006 and consider other factors such as payroll tax. 

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 

14 



Finton House Educational Trust | Year Ended 31 July 2023 

inappropriate journal entries and management bias in making accounting estimates. Audit procedures performed by the engagement team included: 

- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; 

- Evaluating management’s controls designed to prevent and detect irregularities; 

- Identifying and testing journals, in particular journal entries posted at the year-end; and 

- Challenging assumptions and judgements made by management in their accounting estimates 

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. 

## **9.9 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. 


Lee Stokes (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditors Date: 29 April 2024 

10 Queen Street Place London, EC4R 1AG 

15 



Finton House Educational Trust | Year Ended 31 July 2023 

## **10 Statement of Financial Activities** 

## **(Incorporating Income & Expenditure Account) for the year ended 31 July 2023** 

|Notes<br>**INCOME FROM**<br>Grants and donations<br>13.2<br>Charitable activities<br>13.3<br>Sundry other income<br>Investment income<br>Total<br>**EXPENDITURE ON**<br>Raising funds<br>13.4<br>Charitable activities<br>13.5<br>Total<br>**NET INCOME BEFORE GAINS ON**<br>**INVESTMENTS**<br>Net gains on investments<br>13.12<br>**NET INCOME BEFORE TRANSFERS**<br>Transfers between funds<br>13.17<br>**NET MOVEMENT IN FUNDS**<br>**RECONCILIATION OF FUNDS**<br>Total funds brought forward<br>(restated)<br>**TOTAL FUNDS CARRIED**<br>**FORWARD**|**Unrestricted**<br>**Funds**<br>**£**<br>138,230<br>6,542,374<br>19,277<br>74,040<br>6,773,921<br>22,031<br>6,272,565<br>6,294,596<br>479,325<br>-<br>479,325<br>-<br>479,325<br>6,512,848<br>6,992,173|**Restricted**<br>**Funds**<br>**£**<br>245,452<br>-<br>-<br>37,349<br>282,801<br>5,952<br>159,423<br>165,375<br>117,426<br>6,923<br>124,349<br>-<br>124,349<br>1,566,397<br>1,690,746|**2023**<br>**Total funds**<br>**£**<br>383,682<br>6,542,374<br>19,277<br>111,389<br>7,056,722<br>27,983<br>6,431,988<br>6,459,971<br>596,751<br>6,923<br>603,674<br>-<br>603,674<br>8,079,245<br>8,682,919|**Restated**<br>**2022**<br>**Total funds**<br>**£**<br>130,866<br>6,079,585<br>11,683<br>31,882|
|---|---|---|---|---|
|||||6,254,016|
|||||30,397<br>5,983,925|
|||||6,014,322|
|||||239,694<br>39,336|
|||||279,030<br>-|
|||||279,030|
|||||7,800,215|
|||||8,079,245|



## **CONTINUING OPERATIONS** 

All income and expenditure arose from continuing activities. 

The notes on pages 19 to 30 form part of these financial statements. 

16 



Finton House Educational Trust | Year Ended 31 July 2023 

## **11 Balance Sheet as at 31 July 2023** 

## **Company number: 02119682** 

|Notes<br>**FIXED ASSETS**<br>Tangible Assets<br>13.11<br>Investments<br>13.12<br>**CURRENT ASSETS**<br>Debtors<br>13.13<br>Cash at Bank<br>**CREDITORS**<br>Amounts falling due within one<br>year<br>13.14<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**<br>**CREDITORS**<br>13.15<br>Amounts falling due after more<br>than one year<br>**NET ASSETS**<br>**FUNDS**<br>13.17<br>**Unrestricted funds:**<br>General fund<br>Building fund<br>**Restricted funds**:<br>Sally Walker Bursary<br>Special Needs Appeal<br>**TOTAL FUNDS**|**2023**<br>**£**<br>252,698<br>2,909,234<br>3,161,932<br>(933,412)<br>1,582,452<br>5,409,721<br>1,532,481<br>158,265|**2023**<br>**£**<br>5,657,911<br>1,656,585<br>7,314,496<br>2,228,520<br>9,543,016<br>(860,097)<br>8,682,919<br>6,992,173<br>1,690,746<br>8,682,919|**Restated**<br>**2022**<br>**£**<br>245,915<br>2,183,011<br>2,428,926<br>(891,565)<br>1,061,251<br>5,451,597<br>1,413,396<br>153,001|**Restated**<br>**2022**<br>**£**<br>5,714,556<br>1,590,880|
|---|---|---|---|---|
|||||7,305,436<br>1,537,361|
|||||8,842,797<br>(763,552)|
|||||8,079,245|
|||||6,512,848<br>1,566,397|
|||||8,079,245|



The financial statements were approved by the Board of Governors on                              2024 and were signed on its behalf by: 

|Name|Name|Role|Role|
|---|---|---|---|
|L Buckley||Chair of Governors||
|Signed||Date||
|||29/04/2024||



17 



Finton House Educational Trust | Year Ended 31 July 2023 

## **12 Cashflow Statement for the year ended 31 July 2023** 

|Note<br>**Cash flows from operating activities:**<br>Cash generated from operations<br>A<br>**Cash flows from investing activities:**<br>Purchase of tangible fixed assets<br>Purchase of investments<br>Proceeds from disposal of investments<br>Investment income<br>Net cash provided by (used in) investing activities<br>**Change in cash and cash equivalents in the reporting period**<br>Cash and cash equivalents at the beginning of the reporting period<br>**Cash and cash equivalents at the end of the reporting period**<br>B|2023<br>£<br>963,209<br>(289,593)<br>(362,018)<br>303,236<br>111,389<br>(236,986)<br>726,223<br>2,183,011<br>2,909,234|Restated<br>2022<br>£<br>733,007<br>(136,268)<br>(218,151)<br>288,872<br>31,882|
|---|---|---|
|||(33,665)|
|||699,342<br>1,483,669|
|||2,183,011|



The accompanying notes on the following pages form an integral part of these financial statements. 

## **A: RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES** 

|**Net income for the reporting period (as per the statement of**<br>**financial activities)**<br>Adjustments for:<br>Depreciation charge<br>Gains on investments<br>Investment income<br>(Increase)/decrease in debtors<br>Increase in creditors<br>Net cash provided by operating activities|2023<br>£<br>603,674<br>346,238<br>(6,923)<br>(111,389)<br>(6,783)<br>138,392<br>963,209|2022<br>£<br>279,030<br>344,144<br>(39,336)<br>(31,882)<br>76,122<br>104,929|
|---|---|---|
|||733,007|



## **B: ANALYSIS OF CASH AND CASH EQUIVALENTS AT THE END OF THE REPORTING PERIOD** 

|Cash at bank and in hand<br>Cash held by investment managers<br>Total cash and equivalents|2023<br>£<br>2,901,034<br>8,200<br>2,909,234|2022<br>£<br>2,113,767<br>69,244|
|---|---|---|
|||2,183,011|



18 



Finton House Educational Trust | Year Ended 31 July 2023 

## **13 Notes to the Financial Statements** 

## **13.1 Accounting Policies** 

## **13.1.1 General information and basis of preparing the financial statements** 

Finton House Education Trust is a Charitable Company limited by guarantee (without share capital) in the United Kingdom. The address of the registered office and principal place of business is given in the charity information in section 7. The nature of the charity’s operations and principal activities is the day schooling for children of both sexes between the ages of 4 and 11. 

The financial statements of the School, which is a public benefit entity under FRS 102, have been prepared in accordance with the Statement of Recommended Practice for charities (SORP 2015) (second Edition, effective 1 January 2019); Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value. 

## **13.1.2 Going Concern** 

The financial statements have been prepared on the going concern basis as the Governors believe that no material uncertainties exist. The Governors have considered the level of funds held and the expected level of income and expenditure for twelve months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the school to be able to continue as a going concern. 

## **13.1.3 Income** 

All income is recognised in the Statement of Financial Activities once the School has entitlement to the funds, it is probable that the income will be received, and the amount can be measured reliably. Income is deferred when the fees or donations are received in advance of the academic year or event to which they relate. 

## **Donations and other voluntary income** 

Donations for purposes restricted by the wishes of the donor are taken to Restricted Funds.  Where the donor or an appeal has imposed trust law restrictions, voluntary income is credited to the relevant restricted fund. 

Donations receivable for the general purposes of the School are credited to Unrestricted Funds.  Voluntary income is 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 it’s credited to the General Reserve. 

## **School fees and similar earned income** 

Fees receivable and charges for services and use of the premises, less any allowances, scholarships, bursaries granted by the School against those fees, but including contributions received from restricted funds are accounted for in the period in which the services are provided. 

## **Investment income** 

Investment income including income from dividends is accounted for on an accruals basis. 

## **13.1.4 Expenditure** 

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the School to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. 

Supplies of games equipment, books, stationary and sundry materials are written off when the expenditure is incurred. 

19 



Finton House Educational Trust | Year Ended 31 July 2023 

Governance costs, included within support costs, comprise the costs of external audit and legal and professional expenses in order to comply with constitutional and statutory requirements, and school inspection costs. 

Grants awarded are expensed as soon as they become legal or operational commitments. 

## **13.1.5 Taxation** 

The School, as a registered Charity, is exempt from corporation tax on its charitable activities. 

## **13.1.6 Fund accounting** 

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Governors. 

Restricted funds can only be used for particular restricted purposes within the objects of the School. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. 

Designated funds can be set aside by the Governors out of unrestricted general funds for specific future purposes or projects. 

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. 

## **13.1.7 Tangible fixed assets** 

All fixed assets are initially recorded at cost. 

Depreciation is provided on all tangible fixed assets retained for use by the School, other than freehold land, at rates calculated to spread each asset’s cost less estimated residual value based on current market prices, evenly over its expected useful economic life, which for each class of asset is assessed as averaging: 

|Category|Depreciation Period|
|---|---|
|Buildings(Major)|40 Years|
|Buildings(Minor)|20 Years|
|Fixtures,Fittings & Equipment(Major)|10 Years|
|Fixtures,Fittings & Equipment(Minor)|5 Years|
|Information Technology (Equipment)|3 Years|
|Information Technology (Infrastructure)|7 Years|



Items costing less than £1,000 are written off to expense as acquired. 

## **13.1.8 Debtors and creditors** 

Short term debtors and creditors are measured at transaction price, less any impairment. Long term creditors are measured at their settlement amount due. 

## **13.1.9 Investments** 

Investments are valued at their market value at year end. Any gains or losses or investments throughout the year are recorded in the SOFA. 

## **13.1.10 Operating leases** 

Rentals payable under operating leases are charged on a straight-line basis over the lease term. 

## **13.1.11 Pension schemes** 

The School contributes to a defined contribution pension scheme for all staff (teaching and non-teaching staff). 

20 



Finton House Educational Trust | Year Ended 31 July 2023 

## **13.1.12 Judgements and key sources of estimation uncertainty** 

Accounting estimate and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The School makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. 

## **13.1.13 Useful economic lives of tangible assets:** 

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See section 13.11 for the carrying amount of the property, plant and equipment, and section 13.1.7 ‘tangible fixed assets’ for the useful economic lives for each class of assets. 

## **13.2 Income from Grants and Donations** 

|Donations and forfeited deposits<br>Government grants|**2023**<br>**£**<br>383,682<br>-<br>**383,682**|**Restated**<br>**2022**<br>**£**<br>127,400<br>3,466|
|---|---|---|
|||**130,866**|



## **13.3 Income from Charitable Activities** 

|Gross fees<br>Staff discounts & Bursaries<br>Registration fees<br>Other fees incl. school clubs<br>Total Fees<br>Add Back Fees for Bursary Students funded by Restricted Funds|**2023**<br>**£**<br>6,171,334<br>(265,960)<br>23,140<br>454,437<br>6,382,951<br>159,423<br>**6,542,374**|**Restated**<br>**2022**<br>**£**<br>5,738,375<br>(210,961)<br>22,450<br>391,228|
|---|---|---|
|||5,941,092<br>138,493|
|||**6,079,585**|



## **13.4 Raising Funds** 

|Fundraising and publicity<br>Finance and other costs|**2023**<br>**£**<br>22,031<br>5,952<br>**27,983**|**2022**<br>**£**<br>27,298<br>3,099|
|---|---|---|
|||**30,397**|



21 



Finton House Educational Trust | Year Ended 31 July 2023 

## **13.5 Analysis of Total Expenditure** 

|**Charitable expenditure - 2023**<br>Teaching Costs<br>Welfare<br>Premises<br>Support Costs – see 13.6<br>**Charitable expenditure – 2022**<br>Teaching Costs<br>Welfare<br>Premises<br>Support Costs – see 13.6|**Staff Costs**<br>**£**<br>3,493,316<br>31,708<br>-<br>545,705<br>**4,070,729**<br>**Staff Costs**<br>**£**<br>3,208,509<br>47,822<br>-<br>555,838<br>**3,812,169**|**Depreciation**<br>**£**<br>-<br>-<br>346,238<br>-<br>**346,238**<br>**Depreciation**<br>**£**<br>-<br>-<br>344,144<br>-<br>**344,144**|**Other**<br>**£**<br>244,657<br>410,650<br>357,446<br>1,002,268<br>**2,015,021**<br>**Other**<br>**£**<br>198,484<br>363,847<br>297,469<br>967,812<br>**1,827,612**|**Total 2023**<br>**£**<br>3,737,973<br>442,358<br>703,684<br>1,547,973|
|---|---|---|---|---|
|||||**6,431,988**|
|||||**Total 2022**<br>**£**<br>3,406,993<br>411,669<br>641,613<br>1,523,650|
|||||**5,983,925**|



## **13.6 Support Costs** 

|Salaries, Pensions & Social Security<br>Transport<br>Information Technology<br>Sundry Extras<br>Governance Costs<br>**Governance costs**<br>Auditors’ remuneration<br>Auditors remuneration for non-audit work<br>Legal and professional fees|**2023**<br>**£**<br>545,705<br>60,864<br>16,219<br>752,795<br>172,390<br>1,547,973<br>17,280<br>3,120<br>151,990<br>172,390|**2022**<br>**£**<br>555,838<br>51,068<br>5,999<br>694,717<br>216,028|
|---|---|---|
|||1,523,650|
|||12,000<br>3,500<br>200,528|
|||216,028|



22 



Finton House Educational Trust | Year Ended 31 July 2023 

## **13.7 Net Income** 

|Net income is stated after charging/(crediting):<br>Auditors’ remuneration – for audit<br>Auditors’ remuneration for non-audit work<br>Depreciation – owned assets<br>Operating lease rentals|**2023**<br>**2022**<br>**£**<br>**£**<br>17,280<br>12,000<br>3,120<br>3,500<br>346,238<br>344,144<br>55,493<br>33,474|
|---|---|



## **13.8 Governors’ Remuneration & Benefits** 

No Governor received remuneration during this year (2022: none). No Governor received reimbursement of expenses during the year (2022: none). 

## **13.9 Staff Costs** 

|Salaries & wages<br>Social security costs<br>Pensions<br>Life and health insurance<br>Other staff costs<br>**The average number of employees in the year was:**<br>Teachers<br>Teaching Assistants<br>Administration Staff|**2023**<br>**£**<br>3,144,900<br>335,635<br>418,117<br>4,878<br>167,199<br>4,070,729<br>**2023**<br>36<br>29<br>16<br>81|**2022**<br>**£**<br>2,969,138<br>298,729<br>396,691<br>3,847<br>143,764|
|---|---|---|
|||3,812,169|
|||**2022**<br>38<br>29<br>11|
|||78|



Employee time has been allocated to direct and support costs allocated on a percentage basis over all the costs. 

The number of employees whose emoluments exceeded £60,000 were: 

||**2023**|**2022**|
|---|---|---|
|£60,001 - £70,000|1|1|
|£70,001 - £80,000|2|-|
|£80,001 - £90,000|-|-|
|£90,001 - £100,000|-|1|
|£100,001 - £110,000|-|-|
|£110,001 - £120,000|1|1|



The key management personnel comprise the Head, Deputy Head Academic, Deputy Head Pastoral and the Bursar. The aggregate benefits of key management personnel amounted to £415,142 (2022: £391,339). 

23 



Finton House Educational Trust | Year Ended 31 July 2023 

## **13.10 Comparatives for the Statement of Financial Activities** 

|Notes<br>**INCOME FROM**<br>Grants and donations<br>13.2<br>Charitable activities<br>13.3<br>Sundry other income<br>Investment income<br>Total<br>**EXPENDITURE ON**<br>Raising funds<br>13.4<br>**Charitable activities**<br>School operating costs<br>13.5<br>**Total**<br>**NET INCOME BEFORE GAINS ON**<br>**INVESTMENTS**<br>Net gains on investments<br>13.12<br>**NET INCOME BEFORE TRANSFERS**<br>Transfers between funds<br>13.17<br>**NET INCOME**<br>**RECONCILIATION OF FUNDS**<br>Total funds brought forward<br>(Restated)<br>**TOTAL FUNDS CARRIED**<br>**FORWARD**|**Restated**<br>**Unrestricted**<br>**Restated**<br>**Restricted**<br>**Restated**<br>**2022**<br>**Funds**<br>**Funds**<br>**Total funds**<br>**£**<br>**£**<br>**£**<br>114,866<br>16,000<br>130,866<br>6,079,585<br>-<br>6,079,585<br>11,683<br>-<br>11,683<br>3,115<br>28,767<br>31,882|
|---|---|
||6,209,249<br>44,767<br>6,254,016|
||27,298<br>3,099<br>30,397<br>5,845,432<br>138,493<br>5,983,925|
||5,872,730<br>141,592<br>6,014,322|
||336,519<br>(96,825)<br>239,694<br>-<br>39,336<br>39,336|
||336,519<br>(57,489)<br>279,030<br>-<br>-<br>-|
||336,519<br> (57,489)<br>279,030|
||6,176,329<br>1,623,886<br>7,800,215|
||6,512,848<br>1,566,397<br>8,079,245|



24 



Finton House Educational Trust | Year Ended 31 July 2023 

## **13.11 Tangible Fixed Assets** 

|COST<br>At 1 August 2022<br>Additions<br>**At 31 July 2023**<br>DEPRECIATON<br>At 1 August 2022<br>Charge for year<br>**At 31 July 2023**<br>**NET BOOK VALUE**<br>**At 31 July 2023**<br>At 31 July 2022|**Freehold &**<br>**Fixtures**<br>**Information**<br>**Buildings**<br>**& Equip**<br>**Technology**<br>**Totals**<br>**£**<br>**£**<br>**£**<br>**£**<br>8,433,672<br>134,445<br>1,089,875<br>9,657,992<br>192,800<br>92,121<br>4,672<br>289,593|
|---|---|
||8,626,472<br>226,566<br>1,094,547<br>9,947,585|
||2,982,075<br>23,943<br>937,418<br>3,943,436<br>234,676<br>23,956<br>87,606<br>346,238|
||3,216,751<br>47,899<br>1,025,024<br>4,289,674|
||5,409,721<br>178,667<br>69,523<br>5,657,911|
||5,451,597<br>110,502<br>152,457<br>5,714,556|



## **13.12 Fixed Asset Investments** 

|**MARKET VALUE**<br>Listed investments at 1 August 2022<br>Additions<br>Disposals<br>Net gains/(losses) on investments<br>Listed investments at 31 July 2023<br>Cash balances held at fund manager:<br>**Total**<br>Cost of listed portfolio|**2023**<br>**£**<br>1,590,880<br>362,018<br>(303,236)<br>6,923<br>1,656,585<br>8,200<br>1,664,785<br>1,357,242|**2022**<br>**£**<br>1,622,267<br>218,150<br>(288,873)<br>39,336|
|---|---|---|
|||1,590,880<br>69,244|
|||1,660,124|
||||
|||1,289,029|



## **13.13 Debtors: Amounts Falling Due Within One Year** 

|Fee debtors<br>Other debtors|**2023**<br>**£**<br>65,225<br>187,473<br>252,698|**Restated**<br>**2022**<br>**£**<br>85,492<br>160,423|
|---|---|---|
|||245,915|



25 



Finton House Educational Trust | Year Ended 31 July 2023 

## **13.14 Creditors: Amounts Falling Due Within One Year** 

|Trade creditors<br>Social security and other taxes<br>Other creditors<br>Deposits and fees receive in advance<br>Accrued expenses and deferred income|**2023**<br>**£**<br>185,423<br>127,987<br>96,863<br>239,221<br>283,918<br>933,412|**Restated**<br>**2022**<br>**£**<br>155,075<br>102,434<br>242,141<br>322,521<br>69,394|
|---|---|---|
|||891,565|



## **13.15 Creditors: Amounts Falling Due After More Than One Year** 

|Deposits|**2023**<br>**£**<br>860,097<br>860,097|**Restated**<br>**2022**<br>**£**<br>763,552|
|---|---|---|
|||763,552|



## **13.16 Operating Lease Commitments** 

|Amounts falling due:<br>Within one year<br>Between one and five years|**2023**<br>**£**<br>24,374<br>22,908<br>47,282|**2022**<br>**£**<br>25,374<br>47,282|
|---|---|---|
|||72,656|



## **13.17 Movement in Funds – Current Year** 

|**Unrestricted funds**<br>General fund<br>Building fund<br>**Restricted funds**<br>Sally Walker Bursary Fund<br>Special Needs Appeal Fund<br>**Total Funds**|**Net**<br>**Transfers**<br>**At 1/8/22**<br>**Movement in**<br>**Between**<br>**(restated)**<br>**Funds**<br>**Funds**<br>**At 31/7/23**<br>**£**<br>**£**<br>**£**<br>**£**<br>1,061,251<br>714,001<br>(192,800)<br>1,582,452<br>5,451,597<br>(234,676)<br>192,800<br>5,409,721|
|---|---|
||6,512,848<br>479,325<br>-<br>6,992,173<br>1,413,396<br>119,085<br>-<br>1,532,481<br>153,001<br>5,264<br>-<br>158,265|
||1,566,397<br>124,349<br>-<br>1,690,746|
||8,079,245<br>603,674<br>-<br>8,682,919|



The building fund was created to hold the net book value of the School’s freehold properly separately to other unrestricted funds. 

26 



Finton House Educational Trust | Year Ended 31 July 2023 

Net movement in funds, included in the table on the previous page are as follows: 

|**Unrestricted funds**<br>General fund<br>Building fund<br>**Restricted funds**<br>Sally Walker Bursary Fund<br>Special Needs Appeal Fund<br>**Total Funds**|**Gains and**<br>**Movement in**<br>**Income**<br>**Expenditure**<br>**Losses**<br>**Funds**<br>**£**<br>**£**<br>**£**<br>**£**<br>6,773,921<br>(6,059,920)<br>-<br>714,001<br>-<br>(234,676)<br>-<br>(234,676)|
|---|---|
||6,773,921<br>(6,294,596)<br>-<br>479,325<br>279,511<br>(164,740)<br>4,314<br>119,085<br>3,290<br> (635)<br>2,609<br>5,264|
||282,801<br>(165,375)<br>6,923<br>124,349|
||7,056,722<br>(6,459,971)<br>6,923<br>603,674|



The Special Needs Appeal Fund was established with the objective to raise funds to help cover the staffing costs of the School Special Needs Department. 

For the Sally Walker Bursary Fund, donations of £279,511 (2022: £44,767) from various donors were received. Bursaries totalling £159,423 (2022: £138,493) were partly financed from the income received from this Fund. 

The School Building Fund represents designated fund retained to finance School freehold property. The balance of corporate reserves represents free reserves to cover normal fluctuations in working capital and further investment in school facilities. 

## **13.18 Movement in Funds – Prior Year (Restated)** 

|**Unrestricted funds**<br>General fund<br>Building fund<br>**Restricted funds**<br>Sally Walker Bursary Fund<br>Special Needs Appeal Fund<br>**Total Funds**|**Net**<br>**Transfers**<br>**Movement in**<br>**Between**<br>**At 1/8/21**<br>**(Restated)**<br>**Funds**<br>**(Restated)**<br>**Funds**<br>**(Restated)**<br>**At 31/7/22**<br>**(Restated)**<br>**£**<br>**£**<br>**£**<br>**£**<br>549,302<br>564,759<br>(52,810)<br>1,061,251<br>5,627,027<br>(228,240)<br>52,810<br>5,451,597|
|---|---|
||6,176,329<br>336,519<br>-<br>6,512,848<br>1,474,730<br>(61,334)<br>-<br>1,413,396<br>149,156<br>3,845<br>-<br>153,001|
||1,623,886<br>(57,489)<br>-<br>1,566,397|
||7,800,215<br>279,030<br>-<br>8,079,245|



27 



Finton House Educational Trust | Year Ended 31 July 2023 

Net movement in funds, included in the table on the previous page are as follows: 

|**Unrestricted funds**<br>General fund<br>Building fund<br>**Restricted funds**<br>Sally Walker Bursary Fund<br>Special Needs Appeal Fund|**Gains and**<br>**Movement in**<br>**Income**<br>**(Restated)**<br>**Expenditure**<br>**(Restated)**<br>**Losses**<br>**(Restated)**<br>**Funds**<br>**(Restated)**<br>**£**<br>**£**<br>**£**<br>**£**<br>6,209,249<br>(5,644,490)<br>-<br>564,759<br>-<br>(228,240)<br>-<br>(228,240)|
|---|---|
||6,209,249<br>(5,872,730)<br>-<br>336,519<br>44,767<br>(141,240)<br>35,139<br>(61,334)<br>-<br>(352)<br>4,197<br>3,845|
|**Total Funds**|44,767<br>(141,592)<br>39,336<br>(57,489)|
||6,254,016<br>(6,014,322)<br>39,336<br>279,030|



## **13.19 Net Assets by Fund** 

|Tangible fixed assets<br>Investments<br>Current assets<br>Current liabilities<br>Non-current liabilities<br>**TOTAL FUNDS**<br>Tangible fixed assets<br>Investments<br>Current assets<br>Current liabilities<br>Non-current liabilities<br>**TOTAL FUNDS**||**Unrestricted**<br>**Restricted**<br>**2023**<br>**Funds**<br>**Funds**<br>**Total funds**<br>**£**<br>**£**<br>**£**<br>5,657,911<br>-<br>5,657,911<br>-<br>1,656,585<br>1,656,585<br>3,127,771<br>34,161<br>3,161,932<br>(933,412)<br>-<br>(933,412)<br>(860,097)<br>-<br>(860,097)|
|---|---|---|
|||6,992,173<br>1,690,746<br>8,682,919|
|||**Unrestricted**<br>**Restricted**<br>**2022**<br>**Funds**<br>**(Restated)**<br>**Funds**<br>**(Restated)**<br>**Total funds**<br>**(Restated)**<br>**£**<br>**£**<br>**£**<br>5,714,556<br>-<br>5,714,556<br>-<br>1,590,880<br>1,590,880<br>2,453,409<br>(24,483)<br>2,428,926<br>(891,565)<br>-<br>(891,565)<br>(763,552)<br>-<br>(763,552)|
|||6,512,848<br>1,566,397<br>8,079,245|



## **13.20 Contingent Liabilities & Capital Commitments** 

The School is the guarantor of the Head Lease of the fields, that is between the field’s owner (‘The Trustees of Sir Walter St John’s Educational Charity’) and operator/tenant (‘Trinity Fields Trust’), that is a typical guarantee over a commercial lease. The effect of the guarantee is that Finton agrees to pay the rent of £75,000/year (incl. VAT) and various other costs if unpaid by the tenant. The agreement is from August 2017 to 2067 (50 years) with an RPI-linked rent review from August 2037. 

The school did not have any capital commitments at year end (2022: Nil). 

28 



Finton House Educational Trust | Year Ended 31 July 2023 

## **13.21 Related Third Party Disclosures** 

The Governors donated a cumulative amount of £6,000 (2022: £6,000) in the year. There were no other related party transactions for the year ended 31 July 2023 (2022: none). 

## **13.22 Pension Schemes** 

## **13.22.1 Teachers’ Pension Scheme** 

After consulting with staff, the school joined Aviva APTIS in September 2021 so no contributions were made in the current year to the teachers’ pension scheme, prior year contributions were £37,259. 

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 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%. 

The 31 March 2016 Valuation Report was 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 assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions. 

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2022 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable. 

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2021, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following a public consultation, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2021 valuations. 

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation. 

Until the cost cap mechanism revision is completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements. 

29 



Finton House Educational Trust | Year Ended 31 July 2023 

## **13.22.2 Defined Contribution Scheme** 

The School operates a defined contribution pension scheme with Aptis (for teachers), Standard Life and Scottish Widows, the assets for which are held separately from those of the school in an independently administered fund. Net contributions payable by the school amounted to £380,879 (2022: £365,250). Contributions by the employer are 7.5% (Standard Life and Scottish Widows), and 18% (Aptis). All contributions due were paid in the year. All eligible staff are automatically enrolled into this scheme when joining the School. 

## **13.23 Liability of Members** 

The school is a company limited by guarantee and the liability of members is limited to £1 in the event of a winding up. 

## **13.24     Prior year adjustments** 

## **Note 1:** 

A detailed reconciliation of fee debtors for the current year identified a number of material misstatements in relation to previously disclosed balances. As a result, the previously disclosed 2022 debtors balances have been reduced by £68,886 and creditors due within one year have been increased by £225,750. The pupil records maintained in our billing system were correct but had not been properly reflected in the financial statements. The net impact of these adjustments is to reduce the General Fund by £294,636. The detailed impacts are set out in the table on the next page. 

## **Note 2:** 

A detailed reconciliation of restricted incomes, expenses and reserves identified that the amount of funds designated as restricted had been overstated. This arose primarily due to a failure to allocate bursary expenses incurred by the School to the Sally Walker Bursary and Special Needs Account Restricted Reserve. They were instead being reflected in the General Fund account balance at year end. As a result, the General Fund was understated by £668,467 as at 31 July 2022 and Restricted Funds were over-stated by the same amount (allocated between the Sally Walker Bursary reserve £638,557 and Special Need Appeal reserve £29,910).  This reallocation does not impact net funds and is included in the table on the next page. 

## **13.24     Prior year adjustments (Continued)** 

**As previously stated Restated 2022 Note 1 Note 2 2022 £ £ £ £** 5,714,556 5,714,556 

**FIXED ASSETS** 

30 



Finton House Educational Trust | Year Ended 31 July 2023 

|Tangible Assets<br>Investments<br>**CURRENT ASSETS**<br>Debtors<br>Cash at Bank<br>**CREDITORS**<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**<br>**CREDITORS**<br>Amounts falling due after more than one<br>year<br>**NET ASSETS**<br>**FUNDS**<br>**Unrestricted funds:**<br>General fund<br>Building fund<br>**Restricted funds**:<br>Sally Walker Bursary<br>Special Needs Appeal<br>**TOTAL FUNDS**|1,590,880<br>7,305,436<br>314,801<br>(68,886)<br>2,183,011<br>2,497,812<br> (665,815)<br>(225,750)<br>1,831,997<br>9,137,433<br>(763,552)<br>8,373,881<br>687,420<br>(294,636)<br>668,467<br>5,451,597<br>6,139,017<br>2,051,953<br>(638,557)<br>182,911<br>(29,910)<br>2,234,864<br>8,373,881|1,590,880|
|---|---|---|
|||7,305,436<br>245,915<br>2,183,011|
|||2,428,926<br> (891,565)|
|||1,537,361<br>8,842,797<br>(763,552)<br>8,079,245|
|||<br>1,061,251<br>5,451,597|
|||6,512,848<br>1,413,396<br>153,001|
|||1,566,397<br>8,079,245|



31