NEWELiS SCHOOL TRUST LIMITED (A Charitsble Compny Llmlted by Gu*r*ntee) COVERNORS. REPORT AND ACCOUNTS YEAR ENDED 31 JULY 2022 Company number. 932584 Chariry number. 307038 NEWELIS SCHOOL TRUST LIMITED GOVERNORS Mr G. Bush DL. Msc Mrs W. Challen Cert. Ed Mr. M.S. Colyer FCA (Resigned 22 February 2022) Mrs. E. Dobson MA, CIMA (Appointed 22 February 2022) Mr A. Ford BA (ApFK>inied 14 Jun¢ 2022) MT5. J. Hamblett-J¥hn MA MTS. S. Harri5 BEd Mr. G.R. Miller MBE FCBI (Dec￿ed 6 April 2022) Mrs. J. Riley MA Lady S. Soames MA (Oxon) Mr. R. Soni FCA Mr. M. Templeman (Cha1￿1n) HEADMASTER Mr R.C. Brown M.A. BURSAR AND CLERKTO THE GOVERNORS Ms. F. Thomson MA. FCCA REGISTERED OFFICE Brighion College Eastrrn iioad, Brighton East Sussex BN2 OAL AUDITORS Haysmacintyre LLP Chartered Accounwits 10 Queen Street Place London EC4R IAG BANKERS HSBC Bank PLC 38 - 42 South Street Haywards Heath West Sussex RH16 4LU Bank of Scotland PLC 6C￿ Gorgie Road EdinbuTgh EHII 3XP REGISTERED COMPANY NUMBER.. 932584 RECISTERED CHARITY NUMBER: 307038 NEWELLS SCHOOL TRUST LIMrrED GOVERNORS, REPORT YEAR ENDED31 JULY 2022 The Governorswesent theiramual Wand fin¥ncTral 5tat¢ments foTtheyearended 31 Juty 2022. Th¢ Gov¢rnors confirni that the financial statements comply with ￿￿r¢llt statutory requirements, those of the governing documents and the requirements of the Statement of Recommended Practic¢"Accounting and Reporting by Charities" 2 Edition. effective l January 2019. STRUCTURE, GOVERNANCE AND MANAGEMEKr Newells School Trust Limited is a tompany limited by guarantee and a registered charity and is governed by its Memorandum and Articles of Association. It operale5 a5 Handcross Park School. It h&% IOWI ownership of a 5ubsidiary'. Hand¢ross PaTk Comm¢r¢ial S¢rvic¢5 Limited which incorporates all the commercial traditig artivit1¢5 of the School and the net surplus is tr4n$ferred tt¥ the School annually by way of a gift aid donation. Gov¢rnors The preserti Governors of the School, who are also the charity Irustees and the directots of the Cornpany for Companies Act PUTPOS¢S, who served during the year and since as indica*d are.. Mr G. Bush DU MS¢ Mr5 W. Challen C¢rt. Ed Mr. M.S. Colyer FCA (Resigned 22 February 2022) MT5. E. Dob50n MA. CIMA (Appointed 22 Febrnary 2022) Mr A. Ford BA (Appointed 14 June 2022) Mr5. J. Hamblett-jahn MA Mr5. S. Harris BEd Mr. G.R. Miller MB& FCBI (Deceased 6 April 2022} Mrs. J. Riley MA Lady S. Soames MA (Oxon) Mr. R. Soni FCA Mr. M. Templeman (Chaimian) The Board of Governors meets at le￿ 3 times a yw is joinryj by the He￿lm￿Ster and Bursar. STATEMEIYT OF GOVERNORS. RESPONSIBILITIES The Governors are r¢sponsibl¢ for prewing the annual reFKJrt and the financial ststrments in accordance with applicable law and unl￿ King&)m Generdlly A¢¢¢pied A¢¢oun¢ing Practice. Company law r¢qUi￿$ th¢ GovernoT5 lo prepare fmanC1￿ statements for each fll)ancial year which give a t￿e and fair view of th¢ 5tat¢ of affairs of th¢ company and of the profrt or ioss of the compgny for th¥ p¢ri(xJ. In preparing those flljancial S¢at¢menW th¢ Governor5 are required to.. select yjitable acc￿￿ntIng p)licies and tha] appiy than consi4¢ntly. make judgements and estimate$ that are reasonable and prudenL' observe the method5 and Fyinciples in the CThariiies Ststement of Rec(x￿ Practice" prepare the fujancial staiunents on th¢ going ¢onc¢rn hsis unless it 15 LnapW￿ to presume the company will conttnue in business. The Governots are resp(￿sIbl¢ f(Y k¢¢ping xcounting recor& which disclose with reasonable 4¢¢UTa¢y at any time the f￿an£S81 position of the company and to enable them to ensure that the fmancial ststem¢nts comply with the Companies Act 2006. They are also rtsportsibl¢ for 5af¢guardingthe assets of the compmny and henc¢ for tsking r¢a50nabl¢ steps for the prevention and detection of fraud and other ￿regulaTIti¢S. So far as eath of the Gov¢rnor5 is aware at the time the reyt is apkYOVOJ.. there is no relevant audit infornwion of which the ￿mpanY'S audit￿$ are unaware; and the Governors have taken all 51¢ps they ought to have taken to make th￿selV¢S aware of any relevant audil inforniation and to establish thai the auditors are aware of that infonnation. NEWELLS SCHOOL TRUST LIMITED GOVERNORS. REPORT {eotttitsued) YEAR ENDED 31 JULY 2022 OrgaTr15*tion The day-to.day managemenl of the School is delegated io the H¢adm&51¢r, Bursar and the Senior Management Team.. H¢athn￿I¢r Mr. R. C. Browtt MA (Hons) Bursar and Company Secretary Ms. F. Thomson MA (H￿S). FCCA Senior Managemeni Team Mr. E. Johnson BA (Hons) QTS (Senior Deputy Head) Mr. R. Clark Bsc (Hon5) Mdip (Depury Head Academic) Mr. C. Cripps Msc (t)eputy Head Pastornl) Mr. J. Gayler Bsc (Hon5) (Head of Prc- Prep) (Resigned 31 December 2021) Mrs. P. Parry BA {QTS) (Head of Pre Prep) (AprA)inted l January 2022) MT. A. Davis BEd (Hons) (Head of BoardirtgXRe(iTed 31 August 2022) Ms. M Bliss BA (Hons) QTS (Head of Teachsng & Learning) (Appointed I September 2021) Remvneration is set by the Board with the policy objective of providing •ppropriat¢ in¢eniives io en¢ourage enhan¢¢d perforniar￿C and of rewarding fairly and responsibly individual contribulions to the School's $u¢¢ess. The appropriatenes$ and Tel¢v4n¢e of the rernw*r•tion N)li¢y is reviewed annually. including reference io benchmarks produc¢d for ihe sector to ensure that the S¢htx)I remains sensilive io the bTokn issues of py and empk)yment conditions elsewhere. The School aims io recruit. subjeu io experience. on a salary scale. providing scope for rewarding excellence. Delivery of (he School's charitable vision and purpose is primarily dependeni on our key managemeni personnel and 5tsff costs are the largest single element of our charitable expenditure. STRATECIC REPORT OWECTIVES AND ACTIVITILS The objectrves of th¢ School are to providc high quality education for boys and grls up to the age of 13 years within friendly, fulfilling and caring environmeni. for the public benefit and are specifically as follows.. To provide a wealth of fonvard thinking educational oppmvniiies for each individual member of the School To esiablish opporNnities for each child to reach iheir individual academic potential To teach and encourage kindness and mutual respect within the communiry and the wider world •To encourdge each child io communicate with confidence and provide them wilh opportunities to develop this confidence To encourage a love of learning and io stirnulate. stretch and challenge the pupils thr¢)ugh ex¢elleni i¢a¢hing To teach children w respeci one another and one anL*her's belonging5 To f05¢er a high level of go￿ behaviour and personal manners To encourage a harnionious working relationship be￿¢¢n pupi15 and stsff • To encourdge each individual io rnake the m05t of a]1 the opportunilies on offer at Hanthross ParK iK)ih in and oui of the ¢la5sroom To equip ¢a¢h ¢hild with 4 sound knowl¢dg¢ of the p￿1 and wisdom for the futttre To prewe each individual for the next 5tag¢ in th¢ir educ*ion and futyr¢ lives • To Tnaintain sound financial mana8ernent • To be a 5UFlPQrtive and caring employer Haftdcross Park School believe5 that above all. a happy child is a productive child artd we are pr￿d of being a very friendly. family orienthted School. The ¢ll￿1CUlUm is broad and varied in order ￿ give each child the opwrtunity to thrive. NEWELLS SCHOOL TRU￿ LIMITED GOVERNORS, REPORT (¢oDtinued) YEAR ENDED 31 JULY 2022 Handcross Park School is a full and w¢¢kly ixjtirding and day. cfreducatiot)al school for children aged between 2 and 13 years. providing them wirh high quality ¢du¢aiion enabling them to move on to a top indepEndenl Senior school for the next stage of their educatton. The School has continued to operate Preparntory. Pre.Preparatory and Nursery departmertts. PUBLIC BENEFIT The Governors have complied with th¢ duty in sertion 17 of the Ch8rities Act 2011 to have due regard to public benefit guidance published by the Ch8rity Commissi(￿. Addiiional op￿rn￿lI1eS for publi¢ benefit hY4ve been integrated inio the School development plan and successfully implemented rhroughoui the yegr. Spe¢ifi¢ examples are referenced throughout the rep)rt and include providing means tested bursaries io families who may otherwise be unable to pay the sch￿1 fees. The School w&8 pleased to be fjble to support families facing financial hardship following the pandernic and continues to actively support the Ioc81 Handcross village fwdbank. The School provides Mandarin teachingto the local primary school and allows them to utilise the schwl gr(m￿dS for theirsporting events and swimming lesson$. Use of FAellltles The School has coniinued 11$ commitment to contriljute to the community 4nd in nonnal tirne5 pernjits extensive use of the School's facilit1¢5 to b¢ mad¢ by outside 5POrt5 clubs and community ¢ntities su¢h as Scouts and the Samaritans, especially welcoming the local primary ￿hOD15 to U5¢ the Swimming pool and the villog¢'s junior football teams to use our grass pitches every week free of Charge. L￿￿1 residents from the community h#v¢ invited io enjoy the School Fireworks ¢veni and local teams utilisc the All Weather Pitch for foottrAII trnining. The S¢hool makes available atl its buildin￿ including the main house wh¢re the rwms are let out durit)g the weekends and holidays for wedding T•ions and other engagements. In the summer 2021, autumn 2021 half ￿nn. Eisier 2022 &)d summer 2022 holidays a national firn), Active Education Lt¢ used our facilities to provide both outdoor and indoor holiday a¢tivitie5to pupils of the School and children from e15ewher¢ in the local community. East Grinstead Hockey A¢adeTny have 8150 used the All Weather Pitch in the past year to wach local pupils and two wttkly swimming athies coxhed children in the school p￿1. A numb¢T of educational projects have been undertaken to shaT¢ best PT&tice with local schc4)Is from Ix)th the Swe and IndependeDt sector. There has ￿en shared educational ¢xp¢rience in particular around ICT with Google training seminars. Close links have been fom]ed wilh Handcross Prirnary School who have used the school pool for swimming les50n$, together with the pitches for their swjtts days. This Telationship will continue and ihe sharing r)f r¢sour¢¢s ¢n¢ouraged. ACHIEVEMENTS AND PERFORMANCE The School has continued to attrn¢t a Strong pupil base fTom a diverse range of bxk￿unlts. including International families from around the world The 5u¢ces5 of the Google Classroom remote learning platform during the Government lockdown due to the Coronavirys pandemic has continued to attracL pupils and th¢ Sch(boI is proud to lead as a Google Reference School. The School applie5 the latest technology. including ChrC*neI￿ks and otheT ICT tools, to enhance the lean)in8 experience of all our pupil5. The School's reputation r¢main5 very strong - locally. nationally and iniernationally. The School was delighted to be awarded the PREP SCH(K)L OF THE YEAR at the Independeni S¢hty)Is of th¢ Year Award5 2019 and we were awarded BEST PREP FOR INNOVATION (2020). BEST PREP FOR PASTORAL CARE (2021) and BEST PREP FOR BOARDING (2022) by The Week In(k&￿dent Schools Guide. Once again, the S¢hool appeaT5 in the Tatler SCh￿Is Guide 2023 ond the G(N)d Schoo]s Guide 2022ll023. NEWELLS SCHOOL TRusf LIMITED GOVERNORS, REPORT (continy¢d) YEAR ENDED 31 JULY 2022 The School successfully all regul*ions in the last ISI C(Nnpliance Inspeairn in June 2018. This was a compliance only inspection and as such ryrts only wh¢th¢r the school meets all its regul*ory stsndards including the Nation Minirnum Standards for Boordin& The S¢hiM)I w&4 deligh*d with the Ou￿ome. Academi¢ally, all our Year 8 leavers gatned places *their firMm the 1954 novel b). William Goldin" . the Loiier School produciion of rhe Inusical -Rock Bollom, and rhe Middle School production of the musical -star Warts . all of iihich %iere perfomied io full houses. I liere are currently 90 pupils participaiing in LAMDA Icssons w¢ross the school from y¢ar ? ro )iear 8 and last year sail 103 elaminaiions i%iih a ioir.(* pa￿ rdie. i¥iih 9?0 ti of ihose being disiinction5 aiid ih¢ remainints beinD merits. Last year also saiv a number oftheaire trips. a visiiing rheaire companj i10￿shOp foT )'ear 8 pupils and some upper sehool pupils had Ihe opportunii) to i¥ork i¥iih a professional acior. Pupils wforned a music concert in the surnm¢r ieTm whi¢h w&s wfomicd live to a full audience. Weekly drama and music showcases were shown lo Prep pupi15 during Friday morning tutor times. Around 45Y• of school pupils look peripatetic music ltss(ms. and of ihose 42 (2021'.28) pupils iLkik ABRSM music exams and 24 (2021.'13) took Trinity musir ¢x8m$ from grades I w 7, with a 98.5% pass rne. The Modem Foreign Languages depament coniinues to flourish and is gaining a reputation for ex¢¢ll¢n¢e. Hand¢ross Park is one of very few schools nationally 10 leach the wi three spoken language5 in the world- Spanish, Mandarin and of course English. Wilh French and Laiin also available, the pupilsyre being prepared for an in¢r¢asingly globalis¢d world. The Schwl benefrts from the generosity of Friends of Handcros5 Park S¢hool (the Parent Asso¢iaiion), whi¢h is independenily run. and whose continuing suppon we greatly appreciate. The Friends, main events were the very popular annual bonfire evening and the summer fayre. The Pre Prep pupils gr¢*ly enjoy¢d the Christmas Fayre in the autumn ierni which was organised by the Friends AssoCi￿10n and which raised funds for th¢ pUr¢h￿ of Pre Prep library bwks. During Ihe yvdr ihe Friend5 also wrchased a lawn mow¢T. wooden building bl(Kks, camern% for the an department and musical inslruments. The School Shop trades through the subsidiary company and continues io enable the parents ￿ purchase school unifomi al r¢ason3ble prir¢5. It h&s continued io expand ILS range of i*ms on sale during the year io sell the whole Tange of school uniform and an¢illary ¢quipm¢nl. Since the lockdown period sales have been fulfilled following individual filling appointments aAd email orders with onsite fillings reiurning from July 2021 onward5. The residential let over the summer holtday period did not take place due io Iniemational travel restriciions but is planned io resume in th¢ future. Other site facility lets such as the swimmin8 pool hire and faciliiy hire for holiday day camp5 resumed in th¢ summer 2021 once it was ¢onsidered safe to do so and current facility hire Temains strong. The School has undertaken exiensive repairs and development works, with continuing inv¢5tm¢nt in th¢ facilities and infrastruciure across ihe whole site. Within the year the School undertwk capital rmprovement works to clad the Humaniiies building and refurbish the classrth)ms which ha5 gTeaily enhanced the building and l¢arning environment for pupils. Projeci expenditure has included a new car parK refillbi5hmcnt of the nursery playground artd prep school play8roun4 chimney repairs and refurbishment of kitchen fxilitie5. NEWELLS SCHOOL TRUST LIMITED GOVERNORS. REPORT {¢ontlnu¢d) YEAR ENDED 31 JULY 2022 FINANCIAL REVIEW AND RESULTS FOR THE PERIOD The Governors regularly review ihe fmances, budgets and eth fltsw5 part of the effective stewardship of the School. The financial results of the School for the year ended 31 July 2022 Jre shown on page 12. and disc105e a swplus for th¢ period of £327,831 (2021.. surplus of £214,657) which i$ in lin¢ with Governors. expectstions. The curreni sutplus reflect5 the strong pupil number4 robusi reaction to finan¢ial un¢¢rtainty and tight cosl control including deferral of capital expenditure following strategic decisions which include: expensing signifKant impTovemeni works in mthJ¢Tni5ing operational spaces at both the Prep and the Pre- comrnithient to balance the nttds for excellent educatiOD with parent affordability. and the impact of offtting means ￿$[ed bursari¢s &s a demonstration of the Scho)1's regard to public benefii. Donations were received ¢0 the Developrnent and Bursary Funds thjring the year of £3.347 (2021: £56.343). There were no ¢omplaints in r¢laiion to fundraising ac1lviti￿.. There were addition5 to fixed assets of £286,621 during the year (2021.. £595.255): whi¢h Comprised of cladding and refurbishment ¢osts for th¢ previously leased Portakabin classrty)ms. The Governors are k¢en for the School io attract and retain the best *aching and key support sthlTand Salaries and other remuneration in order to achieve this. Tenns for the rnosi senior management consid¢r¢d by the Finance and tkvelopment Committee annually. The total amount of Temuneration. benefits and pen$ion$ paid to key managemenl was £267.870 (2021.. £254.367). Gov¢mor$ ar¢ 4)pointed ¢0 th¢ Board afkr careful consideration for the key skills and experi¢n¢¢ that they can offer to th¢ S¢hool. The ChaiTman in conjunction with the Headmasw at Brighton College and the Headmaster consider new appointments and new Governor undertake5 ￿11 SafeBuardin8 Trnining and a thorough induction proces5 including site visits and meelings with senior staff. Key Performance Indlc8tors The key performance indicators used by the management and Governws wh¢n ¢onsid¢ring the strategy for the school include: pupil demand,. academic and extra.curricular success against aniiciwed outcomes" forecast cash flow and facility headroom. and prioritised areas of spending. The School has prepared a number of scenarios that consider the school's cash p051tion, source5 of income and planned expenditure. This includes the impaci of the current political and econornic uncertainty. increases in energy costs and inflationary Pressures on operations. These scenarios consider ￿luted pupil nurnbeT5, delayed ftt paymenL reduced fees and potential bad debts as well as the tmp&t on Costs from the measure5 taken x) far. Sensiuvity around these assumptions has also been considered in our forecastin Having regard to the above. the trusiees believe that the s¢h(K)I has adequate re50UTces to coniinue its activities in the foreseeable future and have therefore consider¢d it 4ppropriate to adopt the going concern basis of accounting in preparing these financial statement* Bursgrk$ The School provided fingn¢ial as$is¢an¢e to paren1& who would noi otherwise have been abl¢ io send their children to the School, 4mouniing 10 £201.694 (2021: £247,563). During the Covid pandemic a hardship fund w8$ created from pmt donations of £10.304 whi¢h was fully utilis¢d within the prioryear to SUp￿rt families who w¢re 51Thiggling to pay the f¢¢s. Total f¢e reTni5sion including Sibling discounts and agency fees amounted to £447,478 (2021.. £496.712). It is the policy of the School that #ll new applicants for financial assistsnce are means-teste(L and that existing recipients submit an applira¢ion fonn ¢ath year for the Sch¢)ol to ascenain the level of support available for the ensuing year. The School welcom¢5 pupi15 from all backgrounds and provides fmancial assistsne¢ io gifted ¢hildren from poorer economic backgrounds ¢0 allow them acce5S to this excellent education. NEWELLS SCHOOL TRUST LIMITED GOVERNORS. REPORT (eontinued) YEAR ENDED 31 JULY 2022 Borrowings BO￿ow1n8$ consisted of a loan with HSBC for the purchase of 2 College C105e for staff accommodation in October 2020. This loan facility was for £279.375 repayable over l O years and secured on the property. Repayments are made monthly and the capital balance owed by the school ￿ 31 July 2022 was £235204 (2021 £260.354). as dis¢10sed in n￿¢ 9. This facility is provided at a rate of1.97V• over the Base rate. A loan with Brighton College for financing a refurb1shmentp￿ieCI in 2010 of £750,(KIO was repaid with the final instalment of £187.51K) during the year. The capitsl balance owed by the School &s ai 31 July 2022 amounted io £Nil (2021.. £187,500), as disclosed in notr 9. This facility was provided at a rate of 5% p.a. A back up overdraft facility of £250.(KK) is Provided by the School's bankers but was utilised in the year. Reserve5 Policy A¢ 31 July 2022. the lotal unrestricied funds of th¢ khool amounted to £3,787,848 (2021.. £3.383.948). Of this £52246 {2021.. £49.51]) has ￿en designated as a Bursary Fun(L with th¢ remainder b¢ing d¢signa¢ed &5 the Property Fund representing the funds inve￿ed in land and buildings. The ￿tal restricted Fee Support Funds amount to £21,370 (2021.. £97,439). FTee reserves. defined as total unrestricted funds having eliminared the nei book value of unre5tricred fixed assets, are 1£555,596)12020= (£494.701)). The charity does noi use free reserves io manage ihe business but focu5es on cash and the governors monitor ihis via management accounts and regular cash flow foTecasts prepared by the Bursar. At ihe year end, the 8ov¢rnors are satisfied thai giv¢n the Current pupil numbers and the budget forecasts, the OPErating cash flow and reserves held ar¢ appropriate and in lin¢ with the lon8¢r tenn slrntegy of th¢ School. In rccent years, significant expenditurc ha5 bcen Tr￿je to irnprove and moderni5c facilitie5 at thr School. This ha5 been rinanced from the General Fund and through appeals, loans and working capital. It is the School's policy to finance continued programme of investment in the schl￿1's facilities through a combination of dOn￿lonS, borrowings and operational svrpluses. The analysis of assds attributable io ihe Funds is shown in note 13 10 the accounis. These assets are sufficient to meet the School's obligations. The resetves policy is reviewed on an annual basi5 by the Governors. Freehold properties In the opirtion of the Governors. the value of the freehold land and t*rnianent buildings is subthntially more than th¢ book valu¢ but no useful purpose would be 5eTved by undertaking # revalu*i¢)n. Prln¢ipg1 Risk$ Ind Un¢¢rtsinties The Governors have assessed the major ri5k5 lo which the ¢harity is ¢xw)sed, in parti¢ular thos¢ r¢lat¢d io the op¢rations and finonces of the School, and art satisfied that pr(￿dureS and insurance are in place io mitigate exposure to known risks. The School has creaied a Tisk register which is reviewed annually by the Governors. liming likely risks and assigning a numeric quaniifier based on the likelih(KNJ after control and the impact of the risk. Plans io reduce ihe likelihood and then rnlli8ate the impaci are ideniified for each risk described and further athlons pui in place where required. Th¢ Covid 19 pandemic had a global financial impact and continues to create challen8e5 for the School. The School and its rnanagement team have continued to place the safety of our staff. pupils and wider community as it5 pardmount priority and theTefore continue w irnplemen( precauiionary measures that may be necessary to reduce the risk from ihe VITUS. Another high risk 15 that of economic recesston (both UK and Global) which could impact pupil nurnbers. The current cost of living crisis and high energy costs cause uncenainty. This is Mill￿ed by the promotion of the School a5 a premium place of learnin& adding valu¢ to the child￿￿,$ developlnent together with its ¢aring culture, locaiion and beautiful sile. Pupil numbers for both day and boarding place5 conlinue to remain heaithy in th¢ following a¢ad¢mic y¢ar 2022-23. NEWELLS SCHOOL TRUST LIMITED GOVERNORS, REPORT (¢ontinued) YEAR ENDED31 JULY 2022 PLANS FOR THE FirruRE Future pian5 for the developmeni of the school are exci11￿ A five-y¢or develo￿ent plan has been put in place whith include5 further significant investment in cl&%sroom4 Pr¢ Pr¢p m#rqu¢¢ replacement and anew Leaming Resource Centre. The replacement of the existing Terrapirt &)glish Clossroom5 with a 3-storey brick building will add valuable &ddi¢ional classroom space and will provide an imm¢rsiv¢, 360 d¢gre¢ interactive classroom. Further refurbishments of existing boarding areas are also planned together with the cre￿10n of #dditional dormitories, cornfortable common room space and new bathroom facilities. Additional investsneni in IT will be undertak¢n. maintaining and etthancin8 the first clas5 provision of technology available ai the School. Ther¢ is an ongoingmaintenance plan around the SI￿ includingupgrading fixed wiring and enhancing playground facilities. All of the improvements have been and u)n¢inue lo be facilithted by rnaintaining pupil numbers and fee income enabling gteater inveslment in facilities. pupil welfare and the high¢st quality teathing staff. The Governors intend io build on the successful relation5hip5 with local schools to ￿rther widen the ¢ontribution to the local community. This will include developing new link5 with the communiry for the use of the S¢hool grounds and facilities. A relationship with a local nursing home ha5 allowed pupils to develop social community links and future events for pupils to ¢n￿rtaIn elderly residents ar¢ plgmie& The ￿00] 15 a]50 wiud to be involved with the Handcross Panty food bank scheme and continues io support. The School is keen to furtherd¢velop the environmental green agenda and to encourage trx)th statTand pupils to do as much as possibl¢ to fos¢¢r gre¢n ¢r¢d¢ntia15 including the use of green energy. refutl)ish and build using only environmentally fri¢ndly building designs and to en¢(￿rage pupils as pan of their day io day activities to r¢use. ￿Ycle and respect the environment. A tree is plartt¢d within th¢ groun(L5 for every new pupil that joins the school as part of the popular 'Grow with M¢, poliry. Th¢ S¢hool h&$ cr¢a*d a new pupil led'Eco' Council who are striving with gupport to achieve the Ecov S¢hools fjr¢¢n Flag awa AUDITORS Haysm¥intyr¢ LLP hav¢ expressed their willingness ￿ coniinue in offi¢e &% auditors and a resolution proposing their r¢-appoin¢m¢nt will b¢ Submitt￿ at the Annual General Medin& The Governors. Rem incor[￿tIng a str￿eBic Repffj was approved by the Board of GovernoTS at its meeiing on IS November 2022 and signed on its behalf by: M. Templtman Chairman Handcross Park School. Handcry>ss W¢51 Sus5¢X RH176HF INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEWELLS SCHOOL TRUST LIMITED Oplnlon W¢ hav¢ audited the financial statements of Newells School Tn￿1 Limiied forthe year ended 31 July 2022 which comprise Ststemeni of Financial Aciivities. Ihe Charity Balance SheeL the Sthtemeni of Cash Flow5 and noles lo the financial siatement& including a summary of si8nificani attounting policies. Th¢ finan¢ial rel￿]￿g fram¢work that has been applied in their preparation is applicable law and United Kingdom Acwunting Standard& in¢luding Financial Reporting Standard 102 The FinancialReporiingSiondardapplicable in ihe UKand Reptsbl￿ oflreland (United Kingdom Gerterally Accepl¢d Accounting Practice). In our Opinio￿ the fmancial statem¢ttts'. give a tru¢ and fair Yi¢w of the stsie of the charitsble company's affairs as ￿ 31 July 2022 and of the charitable ¢ompony's net movement in funds. including ihe income and expendI￿re. for the year then ended.. hav¢ been prop¢rly prepared in accordance with United Kingdom Genttally Accepted Accounting Pra¢iice' and have been Prepared in accoTdance with the requirements of the CompaAi¢s A¢t 2(M)6. BASIS for opinion We conducted our audit in a￿ord￿¢¢ with Int¢mationa] Standards (m Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities underthose standards are fifftherdescrl￿d in the Audiiw's responsibilities for the audii of the financial Statements S¢¢tion of OUT report. We are independent of the chariiy in acwrdance with the ethical requiremenis that are r¢levant io our audii of the financial stsiements in the UK. including the FRC'S Ethical Stsndard, and we have fulfilled our other ¢thical resp)nsibilities in accordance with ihese requirements. We believe the audil evidence we hav¢ obtained is suffi¢ieni and appropriate to provide a basis for our opinion. Contlusions reljting to going In audiring the financial statement& we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the flnancial *Jt¢ments t5 appropriate. Based on the work we have PErfonncd, we have not idcntified any matrrial uncertainties relatin8 to events or conditions Ihat, individually or collectively, may cast signifKEnt doubt on the charitable company's abiljty fo coniinue as a going concem for a peric¥J of ai leasi twelve months from when ihe financial statements are authorised for issue. Our responsibilities and the responsibililies of ihe trusiees with reswl to going con¢em ar¢ d¢xribed in the rel¢v4nt sections of ihis report. Other information The trustees are responsibl¢ for the other infomaiion. The other infomiation comprises the inforniation included in the Governors, Report. Our opinion on the financial statements d(￿ not cover the other inforn)aiion an4 except io ihe exient othetWi5e explicitly staid in our reFK)rt, w¢ do not expT¢SS any fomi of assurance conclusion ihereon. In connection with our audit of the fiD8n¢ial wtements. 0urresry>ns￿l ility is to read the (xher infomiaiion and, in &)ing so, consider whetheT th¢ oth¢r infonnotion 1$ materially inconsistent with the financial stsiements or our knowledge obiained in th¢ auditor otherwise oPPt8rs to be materially misstated. If we identify such material inconsimencies orappareni rnaterial mi5Stotements, we are required to ddemlhne whether ihere is a maierial MISS￿leMent in the financial siatement5 or a material TniSStat¢m¢nt of th¢ other inforniaiiom. If. based on the WO￿ we have perfomied. we conclude that there is a material misstatement of this other inforniation. we aFe reguired io report fact. We hav¢ nothing to repon In this regard. Oplnlons on other matters prescribed by the Compnies Act 2006 In our opinion. based on the worf( undettsken in the course of th¢ audit: the infomiation given in the Governors. Repon (which includes the direciors, repon prepared forthe purpose5 of Company law) for the financial year for whsd) ihe financial sthiemenis are prepared is consistent with the financial sratements. and the directors. report included within the Governors. Report have been prepared accordance with applicable legal requirements. MatteTS on whi¢h wt *r¢ reqlllr¢d to ttport by exetptlon In th¢ light of the knowl¢dgc and undersiandinE of ihe charithble company and its environment obtsined in the course of th¢ audit, we have not identified m￿crIal missthtements in the Governors, Report (which incorporate5 the 5tral¢gic repjrt and th¢ (br¢rtors' report). INDEPENDEKf AUDITOR'S REPORT TO THE MEMBERS OF NEWELLS SCHOOL TRUST LIMITED {Cotttln#ed) We have nothing ¢0 r¢wJrt in respect of the following matters IA rel￿10n to whi¢h the Companies Act 20￿ requires u$ to report to you if. in our opinion- ad¢quat¢ accounting record5 have not been kept by the charitabl¢ wmpyny,. or the charitable company financial SWern¢nts ar¢ not in agreement with the accouniing re¢ords ond returns,. or certain disclosures of tru5te¢5' r¢mun¢Trlion Specified by law are noi made: or w¢ have not received all the infomiation and explanations we require for our audit. or the Irustees were not entitled io prepart the financial statements in accordance with the small ¢ompanie$' regime and thke advantage of the small comp4ni¢5' ¢xemption5 in preparingthe trusiees. rq)ort and from the requirement to prepare a strategic report. Re5ponsibilititJ of trustees for the flnAneiAI itstements As explained more fully in the trustees, responsibili11¢5 5tat¢ment (5etout on page 8). the mmees (who ore also the directors of the charitsble company forthe puryyoses of ¢omF4ny law) are responsible for ihe prepntion of th¢ fLnan¢ial ￿&tements and forbeing satisfied ihat they give a true and fair view. and for5uch internal control as the mistees deiem)in¢ i$ n¢¢essary to enable the preparation of fmancial statrments are free from rnaterial rnisstatemeni, whether due to fraud or error. In preparing the financial ststements. the trnstees are responsible for assessing the charitable company's ability to conlinue as a going concern, disclosin& as appli¢able. matters related to going concern and using the going wnc¢m basis of accouniing unless the tru*ees either in¢end to liquidate the charitable compony or ￿ ce&%e operalions. OT have no realistic alternative but to do so. Auditor's responsibilities for the 4udit ofthe fJDanclal stalemtnts Our objeciivcs ar¢ to obtain reasonable as5ufdnce a￿ut whether the financial ststvn¢nts &4 4 whole are free from material misstat¢rn¢nt. wh¢th¢rdu¢ to fraud or error, and to issue an auditor's reportthai includes OUT opinion. Reasonable assurance is a high l¢v¢l of JssurJn¢¢, but is not a guaTantee that an audir conduc*d in acc(Ydan¢¢ with ISAS (UK) will always detect a material misstatem¢nt wh¢n it ¢Xi5ts. Mi5Statements can arise from fraud or error and are considered material if, individually or in th¢ aggr¢gat¢, th¢y could reasonably be expected th influ¢n¢¢ the ¢¢onomi¢ decisions of users taken on the basi5 of ih¢s¢ financial statements. Irr¢gularit1¢5, including fraud. are instances of non•compliance with law$ #nd regulations. We design pmcedures in line with our responsibilities, outlined abov< to detect mateTial misstatements in resP￿t of iTregularities. including fraud. The exl¢rti to which our procedu￿5 are capable of deteding irregularitie4 irt¢luding fT#ud is detailed below.. B￿¢d on our understanding of the ¢tr￿lIable comparty th¢ ¢nvir(Kun¢nl in which it operaies. we identified that the principal risk5 of nonvcompliance with laws and r¢gul*ions such as Inde￿ident Schools Inspector*e regulations. safeguarding regulations, healih and safety r¢quir¢m¢nW GDPIL ernployThent law and Chariry Commission'$ general guidan¢¢, and we considered the extent to which non-complianre might hav¢ a material effect on the financial statements. We a150 considered those laws and re8ulations that hav¢ a direct impact on the preparation of the f￿anCial s¢aiemen¢s such as Companies Act 2006 and the Charities Act 2011 Jnd consider other fadors such as payroll Lax and VAT. We evaluated management's incentiV¢5 and ¢)pportunities for fraudulent manipulation of the fLnatt¢ial sthtem¢nts {including the risk of override of controls), and determined that the principal risks were ￿lated to revenu¢ r¢rognition, in particular in relation to voluntary and other incom¢ and management override of conuols. Audit pro¢¢dur¢s p¢rfoTmed by the engagement team included: InsFrtling correspondence with regulators and tax authorili¢5' Discussions with mana8emeni including wn5ideration of known or Suspected instances of non-¢omplian¢e with laws and regulation and frau￿. Evaluating management'5 controls designed ￿ prevent and d¢t¢¢t i￿egUl*r1IIes,. Identifying and testing journals. in particular journa] entri¢5 Wysted with unusual accouni combinationsor postings with unusual descriptions. Reviewing the incom¢ re¢o￿ltI0ft ar￿nd the year end to assess whether inwm¢ h&1 been recognised in the correct accounting p¢ri(xl' and 10 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEWELIS SCHOOL TRUST LIMITED (Continued) Because of the inherent limithtions of an audiL theTe is a risk that we will not detect all irregularities. including those leading io a m￿erial missiatemeni in ihe financi￿ sthtements or non-compliance with regul*ion. Thi5 risk increases the rnore that compliance wilh a law or regulation 15 rernoved from the events and transa¢tions refl¢¢ted in th¢ finan¢ial statements, as w¢ will be les$ likely io b¢com¢ awart of instan¢¢s of non-compliance. The risk is also greater regaTrling irregulari¢i¢s o¢¢urring due io fraud rnth¢r thon ¢rNK. &% fiaud involves inientional concealmenL forgery. collusio omission or misrepresentstion. A fijrther descripiion of our responsibilities for the audit of the financial staiements is I0￿ed on the Financial Reporting Council's website at.. www.frc.o .ukJauditorsr onsibilities. This description fonns pan of our audiior's report. Use ofour report This report is made solely lo the charitsble company's memiw as a body, in ac￿rdanCe with Chapter 3 of Part 16 of the Companies Aci 2006. Our audil work has been Undertaken $0 that we might stat¢ to the ¢haTitable company's m¢rnbers Ihose matt¢rs we ar¢ required io state io them in an Auditovs report and for no otherputpose. To the ￿lIest ex*nt perniitted by law. we do not accept or&s$ume r¢spnsibility to anyoneoiherthan the charitsble company and the charitable companys members, as a body. for our audit work. for this reporl or for the ophniotis we have fomied. Steven Harp¢r Isenior Statutory Auditor) For and on behalf of Hay5macintyre LLP, SNutory Auditor die.. 23 November 2022 10 Queen Streei Place London EC4R IAG NEWELLS SCHOOL TRUST LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING AN INCOME & EXPENDITURE ACCOUNT YEAR ENDED JI JULY 2022 Unr¢stri¢icd FuTrds General Deslgn*ted Restrithd Totsl 2022 Tot*1 2021 Notrs INCOME FROM: Charitable aetlvltks hool fees Extra5 and disbursements Registration fees Addilional Granis Voluntary In¢ome - Developm¢n¢ Fund income Fee support Fund5 General Dona¢ion Inwme Other trading activities . Other incorne Irtttreyt r¢ttivable 6,310.435 332.332 33.864 (250) 6,310.185 332.332 33.864 3,600 5.416,423 203.153 28,781 67,245 360 360 360 40.000 79.698 58,469 2.987 61.456 703 403 703 403 179 Tot41 1ft￿Me 6.739.806 6,742,903 5.835.839 EXPENDITURE ON: ChAritable Expendliure School operating costs - Teaching costs - Welfare costs Premises co$is - Support costs 2.800.383 572,905 1.428,693 1.588,349 1,987 2,802.370 572.905 1,429.443 1.588,349 2,603.712 477.930 1.201.884 1.306.181 750 6.390.330 2.737 6.393,067 5,589.707 R*i5ing Fund5 Other Expendilure Finance costs 360 360 21,645 2.856 28.619 21.645 Total Expenditure 6,411.975 3.097 6.415.072 5,621.182 NET INCOME 327.831 327,831 214.657 Trdll5fer between funds (327.831) 403.91N) (76.069) NET MOVEMENT IN FUNDS 403.9YKI (76.069) 327.831 214.657 Balance brought forward at l August 2021 3,383.948 97,439 3.481,387 3.266,730 Balance carried forward at 31 July 2022 3,787.848 21.370 3.809,218 3,481,387 The notes pages 17 to 26 forni part of th¢s¢ a¢￿unt￿ 12 NEWELiS SCHOOL TRUST LIMITED COMPANY NUMBER: 932584 BALANCE SHEET AS AT 31 JULY 2022 31 July 2022 31 July 2021 P4otes INVESTMENTS 100 100 TANGIBLE FIXED ASSETS 3.911.050 3.939.544 CURRENT ASSETS Debiors Cash at bank and in hand 333,649 2.000.117 273,400 1,714.957 2.333.766 1,988,357 CREDITORS- due within one y￿r (1,570.906) (1.552,202) NET CURRENT ASSETS 762.860 436.155 CREDITORS- dut after m¢)r¢ th*n o*t ye*r (864,792) (894,412) NET ASSETS 3.81)9,218 3.481.387 RESTRIcfED FUND io 21.370 97.439 UNRESTRICTED FUNDS - DeSIgna￿d - General Fund 3.787.848 3,383.948 12 TufAL FUNDS 13 3.809.218 3,481,387 Approved and authorised for i55u¢ by th¢ Board of Governors ai its meeting on 15 November 2022 and signed on its behalf by: M. Ternpleman E. Dobson The notes on p3g¢s 17 to 26 forni part of ihe5e accounts NEWELLS SCH(M)L TRU￿ LIMITED CASHFLOW STATEMENT AS AT 31 JULY 2022 Note 2022 2021 Net ¢•$h infl¢Jw from operntlng aetivltks 14 604.112 1.064.701 C•$h flow$ from Inve$tlng aetivitie4 Inter¢si r¢¢eiv¢d Pu￿1￿¢ of tangible fixed 85sets InY¢5ttn¢nl in Subsidiary IA)55 on disP05al of tangible f]xed &ssets 403 (286,621) 179 (595.255) Net cashflow from investlng aetivltks (286218) (595.076) Financing R¢paym¢nt of loans Int¢r¢st paid (25.150) (7.584) (208,453) (15.133) Net c85hflow from financin8 aettvities 132,734) (223.586) lTrcreaJe in cash 285,160 246.039 Cash and cash equivalent at the Eryinning of the period ,714.957 1.468,918 Cash and cash equivalent at the end of the puiod 2,(KJO.117 1.714.957 Re¢0￿<￿1111*0tt of net debt OiAW2021 Cashllows Non-cajhnoivs 31mn022 Cash at bank and in hand Loans due less than l year Loans due more than l year 1.714.957 (218.456) (229.397) 285.160 212.649 2,OtM),117 (27.938) (207.266) (22,131) 22.131 1.267.104 497.809 1.764,913 Th¢ noi¢s on pag¢$ 17 to 26 fonn part of these wiunts 14 NEWELLS SCHOOL TRusf LIMITED ACCOUiYTIJYG POLICIES YEAR ENDED 31 JULY 2022 The financial staiements hav¢be¢n Fryared in a¢¢cthce with the Financial Reponing Standard applicable in ihe UK and Republic of Ireland (FRS 102). the Companies Act 2¢YJ6 and the S￿lemen1 of Recomm¢nded Practi¢¢ applicable to charities preparing their a¢¢ount$ in ac¢ordan¢¢ with the Financial Re￿Ing Stsndard aFylicable in the UK and Republic of Ireland (FRS 102). The functtonal currency of ihe School is considered to be GBP because that is the ¢urren¢y of the primary economic environment in which the School operates. Ai the time of approval of the annual Rel￿, th¢r¢ ￿ economic PTessures wilh rising inflation and high energy ¢05ts Ihe long-terni impact on the charity, ITh wmmon with othff busirtesse4 is unknown. The Governor5 have reviewed the position carefully with a view to ¢nsurin8 the on8oin8 proyision of schooling for the pupils as well as ernployment of staff. The charity CUTTently holds significant cash balances supplemenied, if need be. by an overdraft facility. Demand for sch(M)I places at Handcross Park School remains stron& with historically high numbers enrolled for the academic year 2022123. Cons¢rvative cash flow modelling with sensitivity analysis indicates thai the cash reserves of the charity are adequate to m¢¢¢ th¢ charity's obligations as they fall due. Accordingly, the Governors believe the Schc￿l.s financial resources are 5uffiri¢n¢ to ensure the School will continue as a 80ing wncern for the foresttable futtlre, bein8 at leasi 12 months from the dale of approval of the fmancial stsiements and have therefore prepared the financial staiemenis on a goin8 concem basis. The School is a ￿b]I¢ B¢n¢fit Entity Re8iStered as a charity in England and Wales and acompany limited by guarantee. It was incorpordted on 23 May 1968 (company number (N)932584) and register￿ 85 a charity on 5 June 1969 (charity number 307038). As at 31 July 2022 the SchcM)I had one wholly Own￿ subsidiary, Handcross Park Commercial Services Limiied which traded during the year. Consolidation is Prepar￿ at a higher lev¢1 wiihin Brighton College and therefore the School doe5 not prepare consolidaied accounts. Critical Y4ecounting judgements key sour¢es of ¢stlm*tkni ￿nCertaIntY In the application of the accounting policies. Gowernors are required to make judgern¢nL e5timate5. and &ssumptions aboui the carying value of assets and liabilities ihat are nor readily appareni from other Sou￿¢5. The estima(es and underlying assumption$ ar¢ based on historical experience and ￿her factors ih* are considered to b¢ r¢kvani. Actual resulis may differ from thes¢ estimates. The esiimaies and underlying assumptions are T¢viewed M an ongoing basis. Revisions to accounting e5timat¢s are recognised in the period in which the eslimate 15 revised if th¢ revision affects only ihai period, or in the period of th¢ revision and future F*ri￿S if the revision affect￿ awr¢nt and ￿tt￿¢ periods. In the view of the Governor4 no assumptions concerning the estimation unc¢rtainty affecting assets or liabilities at ihe balance sheer dale are likely to result in a material odjusiment to their carying amounis in the next financial year. Basis of Accounting The ￿coUnts hav¢ tK¢D prepared und¢r the historical CO￿ conveniicffi. Income Fe¢s receivable and charges for services and use of the pr¢mises, le$$ any allowance4 scholarships, bursarie5 granted by the sch￿] againsi ihose fee5. bui including contributions re¢eived from r¢$tri¢ted ￿nds. are accounied for In the period in which Ihe setryice is providal. Investment income is accounied for on an a¢¢n￿lS b8sis. Renial income (including incentive5 r¢¢¢ived or pgid) for operating leases are recogni5ed in profit or 105s on a straighi line basis over the lease leTm. Voluntary incoming resources are a￿1)Un￿d for &s and when entiilement arise4 the amount can be reliably quaniified. 15 NEWELIS SCHOOL TRUST LIMITED ACCOUNTING POLICIES (¢ODtlnued) YEAR ENDED31 JULY 2022 Expendlturt Expenditure is xcounted foT on an accrnals basis. Certain el￿dIti￿e is direthly attributable to specific activitles and ha5 been included in those cost categories. Central ¢o$ts whith cannot be directly allocated are apportioned acr055 C05t categories on the b8sis of an eAimatr of th¢ PTOp￿rtiOn of time spent by staff on those activities. Employrnent benefit& including holiday pay. are reco￿1$¢￿ in the period in which they are earned. Tern)ination ben¢fits ar¢ rewi5ed in the period in which the deci$ion is ma(k and communicat&l io the relevant employee(5). Gov¢rnan¢e costs comprise the costs of running the ¢harity, including strategic planning for its fijture development. external audit, any legal advice for the School'$ Governors, and all the costs of complying with constitulional and stathtory requirements. such &s the costs of Bo¥rd and Committee meetings and of preparing Statll￿ry aceounts and satisfying public acCoUn￿lI1ty. Flxed a55ets and depreei*tloD Tangible fixed assets are capitalised at)d in¢luded * COSL in¢luding any incidentsl exrthses of a¢quisition. tkpreciation is provided on r￿ed ass¢ts to writ¢ off their over estimated useful lives ai the following rates.. Freehold buildir Site Facilities New building& fjxiures & fittings Motor vehicles - 2% on cost per annum - 5•h on cost per annum - on cost per amium - 21Yh on cost per annum Fund5 Unresiriete&. these are fimds which be used in accordance with the clwitable obj¢¢ts at the discretion of the trustees. Designaithl: thes¢ are funds sd aside by the iTU5tees out of unrestrictrd genernl fimds for specific pUrF￿SeS or projects. Ruiricied.. are funds that can only be used for particular restricied pur￿ within the objects of the charity. Penslon S¢heme$ The S¢h(KJl op¢rat¢s two pension Schemes. Contribuiions to the s¢h¢m¢s are charg¢dto the income and expenditure a¢¢ouni os they ar¢ incurred. Further details are giv￿ in no* 19. Unless leaching stsff elect to OPI OUL they join the Teachers Pension ￿￿erne admini5*red by the Teachers, P¢n5ion Agency. The Scheme is a multi employer pension xh¢me and it 15 not p)ssible lo identify the assets and liabilili¢s of th¢ Schem¢ which are attributhble to the Sch(h)l. In a¢¢ordm¢¢ with FRS 102 therefore. the Scheme is accounted for as a defmed Contributi￿ scheme. The School operates a defmed Contributiim p¢nsion scheme for teaching and non-traching personnel wher¢by the assets of the schemes are held s¢par*¢ly from those of the School in an indqjendently athnini5*r¢d fund. The School's contribution4 aj? thar8¢d in the peTi￿1 which the salaries to whith they r¢latr are payable. Operatlng I￿Se Retttsl$ Rentals paid in respe¢t 010$5ets held under opu*in8 leas¢s are ¢horg¢d ￿ the statement of financia] activities as they fall due. 16 NEWELLS SCHOOL TRUST LIMITED ACCOUNTING POLICIES (C04ti#U￿) •ttd NOTFS TO ACCOUNTS YEAR ENDED 31 JULY 2022 Financial ins¢rnmeMts Basic financial in5trumentsarr initiallyrecognised attr4TEsa¢tion v8lu¢ andsubsequ¢ntly amortised. Financial assets held at amortis¢d ¢051 comprise ¢8sh at bank and in hand, together with trade andoiher debtors. A specific provision is tnade for debts for which recovcrdbility 15 in doubt. Ca%h a( bank and in hand is defined as all cash held in insiani access bank accounts and used as working capithl. Financial liabiliiies held ￿ amortised cost comprise all crediiors exccpt social security and other taxes and provisions. The School has an ￿VanCe fees scheme whereby parenis and others may make advance payments which provide for a set contyibuiion ierni wwards the pupils. fee5. The capital portion ouistandin8 is recognised as a liability and the amounl of any discount Cry51allised in the year is included in the Statement of Financial Affl1viu￿. NOTES TO ACCOUN SCHOOL FEES 2022 2021 Gross fees receivable Less sibling discounw scholaTship5 and bursaries Les5 agency ¢ornmi55ion Add bursari¢s from restricted fun(Ls 6.757,663 (410,500) (37.228) 250 5,913,135 (476,912) (30,104) 10,304 Net lecs receivable 6.310.185 5.416.423 OPERATING EXPENDITURE 2022 2021 Charitable expendilure includes.. Auditor's remuneralion Operating Leases Depreciation 12.6 23.087 315.115 12,000 25,646 286.543 ANALYS15 OF TOTAL EXPENDITURE 2022 Totsl 2021 Total St*ff Costs Other ikpreeiatio Charltable Actlvltks Teaching ¢￿S Welfare Premises Support costs 2.447.820 71.523 397,689 1,086,287 354.550 501.382 716,639 502,062 2,801370 572.905 1,429.443 1,588.349 2,603,712 477,930 1,201,884 1,306,181 315.115 4,003,319 2,074,633 315.115 6J93,067 5,589,707 R*ising Funds Other expenditure Finance costs 360 21.645 360 21,645 2,856 28,619 4.003,319 2.096.638 315,115 6.415.072 3,621.182 Finan¢e ¢osts include interest payable on loans of £7.584 (2021: £15.133). One (2021.. One) Governor re1ml￿r5ed travel expenses of £71 (2021: £120). 17 NEWELIS SCHOOL TRUST LIMITED NOTES TO ACCOUNTS (cowtinued) YEAR ENDED31 JULY 2022 ANALYSIS OF TOTAL EXPENDITURE (eothtl#u¢d) 2021 Total 2020 Total Starrcosts Otber Deprecialion Charltable *ctivities Teaching costs Welfare Premises Suppiwt costs 2J59.7 71.483 339.995 916,091 244.C￿l6 406.447 575.346 390.090 2.603,712 477.930 .201.884 .306,181 2.566.477 460.891 1.111.958 IJ38.802 286.543 3.687275 1.615.889 286.543 5.589.707 5.478,128 Raiglng Fund5 Other expenditure Finance costs 2,856 28.619 2,856 28.619 279 36,473 3.687275 1.647J64 286.543 5.621.182 5.514,880 Sllpport Cost$ ¢OmPTi*: 2022 2021 Stsff costs IT costs Motor Vehicle cosis Marketing cosis Governance costs her Costs 1,086287 124,888 44,535 65.470 12.671 254,498 916,091 92.971 31.394 58,081 12.120 195.524 1.588.349 1,306.181 EMPLOYEE INFORMATION 2022 2021 Staff costs: Salari¢$ and wages Social 5e¢urtty costs Pension contributions 3,185.365 302.821 515.133 2.928.148 272,026 487.101 4.003.319 3.687.275 During the yeaT there were no wmination p4yments made (2021: £Nil). There w&s £Nil (2021.. £Nil) outstanding ai the year end. Remuneration of key managemeni peNIM¢l wa5 £267.870 (2021.. £254.367). 2022 2021 No. The average number of employees during the year was m&ae up as follows.. Teaching T¢a¢hing A55iStanis & Sportg coaches Administrntiv< Welfare and l¥emis¢s SupN)rt 46 37 43 39 43 128 126 18 NEWELLS SCHOOL TRUST LIMITED NOTES TO ACCOUNTS (continued) YEAR EJYDED31 JULY W22 EMPLOYEE INFORMATION ICWtl￿¥¢d) 2022 No. The numbeT of fvll-iime ¢quivaleni employtts during the year was mp•Je up as follows.. 2021 Teaching Teaching Assisthnts & Spons coache5 Administrative, Welfare and Premises Supw)rt 40 27 40 26 98 97 Th¢ numb¢T of high¢r paid employees was.. £70,0(K)- £80.(￿70 £80,01)0- £gYI.000 £110,000-£120,000 The number with reliremeni benefit5 xcruing in dtfined Contribution schemes was l (2021.. 1) and defined benefit scheme5 wa5 1 (2021.. 1). INVESTMENTS Investment i Jubsidiary cornpathy Cost Addiiions loo Net Book Valw¢ •t 31 Jyly 2022 100 The following was fl Subsidi￿ undertaking of the charitable company.. Country of incorporntion Class of share capltsl Prlnelple activity Holding Handcross P8Tk Comm¢T¢ial S¢rvic¢s Limited England & Wales Ordinary F￿11]tieS hire The sumrnary fiD4nrial perforw*DC¢ ofthe s￿bsIdI*ry 15: 2022 2021 Turnover Cost of 5ale$ and 4dministrdiive costs 215.929 (163.074) 186,289 (136,778) Nei Profil Amount Gift aided io ihe charity 52.855 (52,855) 49,511 (49,511) R¢iained in the subsidiary The assets and liabilities of the 5ub5idiary were: Fixed asseis Curreni assets Curreni liabilities 11641 100,246 (112.787) 15,666 81,583 (97,149) Total net assets 100 100 Capital and Reserves 100 19 NEWELLS SCHOOL TRUST LIMITED NOTES TO ACCOUNTS (¢opilnued) YEAR EI¥DED 31 JULY 2022 TANGIBLE FIXED ASSETS Furniture, rittings equipment and Computers Freehold land Motor and buildlngs VehS¢1 Tot¥1 COST At l August 2021 Additions 6,218.957 286.621 298.(B5 66.025 6.583.077 286.621 At 31 July 2022 6.505.578 298.095 66,025 6.869.698 DEPRECIATION AI l Augu￿ 2021 Charge for the year 2.429,155 286,112 162.(NM 23.327 52.374 5.676 2.643.533 313,115 Ai 31 July 2022 2.715.267 185J31 58.050 2.958,648 NET BOOK VALUE At31 July2021 3.789,802 136.091 13,651 3.939,544 At 31 July 2022 3.79)J I I 112,764 7,975 3.911,050 DEBTORS 2022 2021 Fees and extr&s in arrears ltttercornpany amounts due from Subsidiary undatsking her debtors and prepawien 102,700 69.129 161.820 51,443 71.322 150.635 333.649 273,400 CREDITORS: due within one year 2022 2021 Bank loans and tsv¢rdraft Trade creditors Amount Due to Brighton College Other creditors Accruals Composition Ftts paid in advance 27.938 245.269 35.363 777.256 357,438 127,642 30.957 273,167 205,090 672,355 311,030 59.603 1.570,906 1,552202 20 ]YEWELLS SCHOOL TRUST LIMITED NOTES TO ACCOUNTS (Continued) YEAR EIYDED31 JULY 2022 CREDITORS: . due after more than DDe ye*r 2022 2021 Bonk loans Amounts due after five y¢ars Amounts f￿ling due within five yeors L¢55 amount$ falling du¢ within one year 95.516 139,688 (27,938) 120,666 139,688 130.957) 207.266 229.397 Amounts due ts Brigh¢oH College Amounts falling due within five years Less amounts falling due within one year 35,363 (35.363) 205.090 (205,090) Coryosilion Fees Amounis falling due within five yeaT5 Less amounts falling due within on¢ y¢or 134.937 (127.642) 59.603 (59.603) 7.295 Pupil Dewsits 650.231 665.015 To￿1 creditors due after more than one year 864.792 894.412 Bomk Loa•J The bank loan with HSBC for the purchase of 2 Colkge clo￿ is secured by a charge on that freehold property, repayable over a ten year period to 20 October 2030. Composition Fees Parenis may enter inio a contract lo pay a lump slim towards the payment of ￿tUre School luition fee5. The money may be reiurned subject to specific conditions on the receipt of one temi's notice. On the basis pupils remain in th¢ S¢hool. advance fees will be applied against ￿lUTe fee5 as follows.. 2022 2021 Within one year Due betwttn one to years 127.642 7.295 59,603 134,937 59,603 Summary ol movements in liability: Balance ai l August 2021 New contracts Amounts used to pay f¢es 59,603 254,074 (178.740) Balance at 31 July 2022 134.937 21 NEWELLS SCHOOL TRUST LIMITED NOTES TO ACCOUNTS (¢ontlttu¢d) YEAR ENDED 31 JULY 2022 10. RESTR[￿ED FUNDS Dtvelopmeot Futtd Support Funds Total Balance at 31 July 2021 Income Release to the G¢nernl Fund.. Note 12 97.439 97.439 3.347 (79,416) 3.347 (3.347) (76.069) Balan¢¢ * 31 July 2022 21.370 21.370 Donation5 and other income relating to th¢ Genernl Sch(KJl appeals are added to rh¢ tkv¢lopm¢nt Fund. Transfers are made from the fimd io the Property Fund in so far as fund$ are available up to the level of monie$ that have been applied for capital expenditute. Donaiion5 that are to be used to support the children of familie5 who otherwise unable to pay the fees we held in the Fee Support funds until 4)pli¢d to id¢ntifi¢d pupil fee accounts. DESIGNA TED FUNDS Property Fund Bumry Fund Total Opening balance 31 July 2021 Utilised for bursaries in the y¢8r Transfer (ioyfrom General Fund- Note 12 Transfer from D¢v¢lopm¢n¢ Fund- Note 10 3J34.437 49,511 (49,511) 52.246 3,383.948 (49,511) 450,064 3,347 397.818 3.347 Clo$ing balance 31 July 2022 3.735.002 52.246 3.787,848 Th¢ 5ub5idiary gift aid donation and the nei lenings in¢om¢ for th¢ year 15 transferred to the Bursary Fund from the G¢n¢rdl Fund. in so far a5 funds are availabl< io b¢ used towords bursaries for the following year. Transf¢rs Jr¢ rnad¢ lo the Property Fund from the Development Fund and the General Fund, in so far &s funds are available, so tha¢ the balance on the fund will be equol to (or less than. where funds are not available) th¢ net book value of freehold land and bjildings less any long term outstanding which were received io financ¢ property expenditure. The Purpose of this policy is W r¢fl¢ct the fact that general and ap[￿1 funds hove been used to finance prop¢Tty improvements for School ￿$¢$. 12. GENERAL FUND 2022 2021 Opening balance 31 July 2021 Net income Transfer from restricted ffiJnd- Note 10 Transfer to Fund Net Iransfer to Bursary FuThl- Note I I 327.831 76,069 (351,654) (52.246) 174.297 73.520 (198,306) (49.511) C105ing balance 31 July 2tr22 Th¢ movement in the prior year individual fund% can b¢ found within the 2021 Financial Stat¢m¢nts. ]YEWELLS SCHOOL TRUST LIMITED NOTES TO ACCOUNTS {¢oMtinued) YEAR ENDED 31 JULY 2022 13. ANALYSIS OF NET ASSETS BETWEEN FUNDS 2022 Creditors dut afttr more th*m one ytar IMvutm¢nts Net eurrtmt & fixed 855ets 2022 Total Designated funds Restricted Funds 3.911.150 741.490 21.370 {864,792) 3.787,848 21,370 3.911,150 762.860 (864,792) 3,809.218 ANALYSIS OF NET ASSETS BETWEEN FUNDS 2021 Creditors due after more than one year lthvestmthts Net eurrent & fixed Assets 2021 Tot*1 Designated fijnds Restricted Funds 3,939.644 338,716 97,439 (894.412) 3.383,948 97.439 3.939.644 436.155 (894.412) 3,481.387 I& RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH INFLOW FROM OPERATING ACTIVITIES 2022 2021 Nei movement in funds tkprecialion Inter¢st receivable Int¢r¢sl payable (In¢reas¢Jldecre&se in debtors Increasel(decrease) in creditoys 327.831 315.115 (403) 7.584 (60.249) 14.234 214,657 286,543 (179) 15,133 17,783 530,764 Net cash inflow from operating activities 604,112 1.064,701 I& RELATED PARTY TRANSACTIONS Neitherihe Governors nor persons connected with them receiv¢dJny remunerntion or other ￿l￿ed paty transaction from the School. The School has obtained Governor5 indemnity insurdnce cover at a cost of £1 10 (2021: £101). Ai the balance sheei da* an amount of £35,363 (2021.. £205.090) owed to Brigh￿ College by ihe School. being ihe loan creditor of £Nil (2021.. £187,500) a5 disclosed kn note 9 and a Group Fund contribuiion of £35,363 (2021.. £17.590). During the year ended 31 July 2022 intercst w&% paid on the loan of £1.563 (2021.. £10,938) being the charge for 2022 (2021.. include5 charge for 2021). 16. FRIEIYDS OF HANDCROSS PARK The Friends donaied equipment and other fa¢iliti¢s during the pcriod amounting ￿ £2.487 (2021.. £2,856). 17. TAXATION Newe115 S¢h(KJl TTU5t Ltmiied is a chaTity and is entitled for the cuneni yearw the exemptions provided by Se¢tion 505 Income and CoryM)rdtion Taxes Ad 1988. 23 NEWELLS SCHOOL TRUST LIMITED NOTES TO ACCOUNTS (continued) YEAR ENDED 31 JULY 2022 i& PENSION SCHEME The S¢hool particiwes in the Teth, Pension Scheme (*he TPS") for its teaching stsff. The pension charge for th¢ year includes contributions payable io the TPS of £427,856 (2021: £408.620) and at the year-ertd £32283 (2021 . £31,01 l) was accrued in respect of Colltrilxrfions to this s¢heme. Th¢ TPS ss an unfunded multi-employer definoj benefiis p¢rtsion wherne govemed by The Teachers, Pensions Regulations 2010 (as amended) and The Teachers. P¢nsion S¢h¢m¢ Regulations 2014 (as amended). Member¥ ontribut¢ on a'pay a5 you go" basis with conthbutions frorn m¢mber5 and the employer being crediied to the Ex¢h¢qucr. Retirrment and other ￿nsiOn benefi1$ aff paid by public fund5 provided by Parliament. The employer contribution ratr is sd by the Se¢r¢tsry of S￿¢ following scheme valuations undertaken by the Gov¢rnrn¢nt Actuary's Departmeni. The most recent aciu4rial valuation of the TPS was prepared as at 31 Marth 2016 and the Valuation Report which was published in Ma￿￿ 2019, c(mfirnied that ihe employer Contribution rate for the TPS would increase from 16.4% to 23.6Y• from I S¢ptember 2019. Employers are also required to pay a scheme adrninisiration levy of 0.08% giving a tots] ¢mploy¢r contribution rate of 23.6Wo. The 31 March 2016 Valuation Report was prepared in a￿ordanCe with the benefits set out in the s¢heme regulations and under ihe aPpA￿Ch Sr￿lfied itt th¢ Dir¢clions. as they applied ai 5 March 2019. How¢ver. the as5UrnPtion5 were considered and sd by the Department for Education prior ￿ the ruling in the 'McCloudlSar8eant case.. This has required the court5 to consider cases regarding the implementation of the 2015 refornis to Public Service Pensions including the Teachers, Pensions. On 27 June 2019 the Supreme Court denied the government pernttS5ion to appeal the Court of Appeal's judgment that Iransitional provisions introduced to the refonned pension schemes in 2015 gave rise to unlawful age discrimination. The government 1$ respecting the Court'5 decision and said it will ¢ngag¢ fully with the Employment Tribunal as well as employer and member representstives to agytt how the di￿rimInatIOnS will be remedied. The government aTmouncwJ on 4 February 2022 it in*nds to ryo¢¢¢d with a defeTred choice underpin under which m¢mbeT5 will be able to choose either legacy or refomied ￿h¢rne benefits in respect of their service during the period betsve¢n l April 2015 and 31 March 2022 at the point th¢y bewme payable. The TPS is subject to a Cost cap mechanism which put in place to protrfi taxpayer5 against unforeseen chan8¢s in $¢h¢m¢ costs. The Chief Secretsry io the Tr￿Ury, having in 2018 announced that there would be a revi¢w of this ¢ost ¢4p mechanism. in January 2019 al￿oUnCed a pus¢ to the c05t cap mechanism following the Court of App¢al's ruling in the McClouWSar8eant case and until there is certainty about the value of pensions to employee$ from April 2015 onwards. The pause w&8 lifted in July 2020. and a consultation was launched on 24 June on proFM)5¢d change5 to the cost control Mechanism following a review by the Governmeni Acftlary. Following a public consultation. the Government have accepted three key proF￿al$ recommended by th¢ Gov¢rnm¢ni *tuary. and are aimin8 to implement ¢hgng¢s in time for the 2020 valuations. Th¢ 2016 r05t ¢(￿¢r01 valuations have since been crynple¢ed in January 2022, and the results indicatrd that ther¢ would b¢ no changes to benefits or Mem1￿ Contribution5 required. The results of the cost cap Yaluation are not used to 5¢¢ the employer contrtbution rnt¢, and HM Treasury has confirmed that any changes io the employer ontribution rate resulting from th¢ 2020 voluation5 will take effect in April 2024. Until the 202 valuation is Completed it is not Fwible to conclude on any fmaneial iM￿¢t or futUTe change5 to the contribution rates of the TPS. A¢¢ordingty. no provision for any additional past benefrt pert5ion costs is includ in these financial sw¢m¢nts. The School also make5 ¢ontributi¢)ns to arnoneypurchase scheme fornon-teaching stsff. The School's contributions for the period w¢r¢ £87277 {2021.. £78.481). 24 NEWELIS SCHOOL TRUST LIMITED NOTES TO ACCOUNTS (eontinued) YEAR EJYDED31 JULY 2022 19. OPERATIIYC LEASE COMMITMENTS Total minimum lease payments under operating lease5:. Total 2022 Total 2021 Less than one year B￿ween 2 - 5 years 29.815 58,323 23,260 55.685 88,138 78,945 20. ULTIMATE PARENT UNDERTAKI]YG The company is controlled by Brighton Colleg< a ¢haTity r¢gist¢Ted in England and Wales INO. 307061) and company limited by guardntee (No. 7663). The Gov¢rnor5 consider Brighion College io be the c(Anpany's uliirnate pareni undertaking. The smallest and largest group in which th¢ results of the company are Consolid￿ed is that headed by Brighton Colkge. The ststuiory accounts of Brighion College are available from the registered offi¢e of the company at Brighu)n College, E&st¢rn Roa¢ Brighton. BN2 OAL. 21. CAPITAL COMMITMENT Ai the year end 2021 the school had commenced WOTk$ ￿ refvrbish ihe modular cl&8sroom block. The building works were compleied in Seplernber 2021 by AW Spaces Lid for the cOntraC￿d price of £247.754. Thi5 wa5 capiralised in SeP￿Mber 2021 and £nil (2021.. £13.579) w&s r¢¢orded as work in progress ai ihe 2022 year end. 22. STATEMENT OF FINANCIAL ACTIVITIES FOR THE 2021 YEAR END Unrtstrkted Fu￿d$ Gen¢r•l De5lEna1￿ Restri¢ted Tot•1 2021 Notes IIYCOME FROM.. Ch4rltible actlvltles School fees Extras and dist￿r$ements Registration fee5 Additional GrJnts Voluntary ineom - Development Fund incThne Fee sUp￿rt Funds General Donaiion Income Other trading aetlvltles Lellings income Interest recelv*ble 5.426.727 203.153 28,781 67245 (10.304) 5,416,423 203,153 28,781 67,245 360 40,(XXI 15,983 360 40.0(KI 79.698 63.715 179 Toial Income 5.789.800 46,039 5,835.839 25 NEWELLS SCHOOL TRUST LIMITED NOTES TO ACCOUNTS (¢ontlnued) YEAR ENDED 31 JULY 2022 21 STATEMENT OF FINANCIAL A￿1VITIEs FOR THE 2021 YEAR END (Contlnued) C¢￿trnI Designated Restrleted 2021 Not EXPENDITURE ON: Charl¢able Expendlture School operdting costs - Teaching costs . Welfare costs - Premises costs - Support Costs 2.603,087 477,930 1.199,686 1.306,181 625 2.603.712 477.930 1.201.884 1.306.181 2.198 5.586,884 2.823 5.589.707 Ralslng Funds Other Expenditure Finance costs 2.856 2,856 28,619 28.619 Totsl Expenditure 5.615.503 5.679 5.621,182 NET INCOME 174297 40,3 214,657 Transfer benveen fun&8 (174297) 247.817 (73.520) NET MOVEMENT IN FUNDS 247.817 (33.160) 214.657 Balance brought forward a¢ l August 2021 3.136.131 130.599 3266.730 Balantt carrsed forward at 31 July2021 3.383.948 97,439 3,481.387 26