Financial Statements Durlston Court School Trust Limited
© Saffery
,
Charity no. 307325 Company no. 1091930
Durlston Court School Trust Limited Financial statements for the year ended 31 August 2024
Index to the financial statements
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|Report of|the Governors|3-7|
|Report of|the|independent|auditor|8-11|
|Principal|accounting|policies|12-14|
|Statement|of financial|activities|(including|income and|expenditure|account)|15|
|Balance|sheet|16|
|Cash|flow statement|17|
|Notes to|the|financial|statements|18-25|
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Durtston Court School Trust Limited
3
Financial statements for the year ended 31 August 2024
Report of the Governors
The Governors are pleased to present their report together with the audited financial statements for the year ended 31 August 2024.
Reference and administrative details of the Charity, its Trustees and Advisors
Durlston Court School Trust Limited (The Charity’) was registered with the Charity Commission in 1973 under charity number 307325. The Charity was incorporated under company number 1091930 on 23 January 1973.
Registered office
Durlston School, Becton Lane, Barton-on-Sea, New Milton, Hampshire, BH25 7AQ.
Governors
The Governors who have served during the period, to the date of this report were as follows: Mr C C Ashfield (Chairman) Mr M G Cooke (Resigned 28" August 2024) Mr P Etheridge Mr P Hardy (appointed 21%* November 2023) Mrs N James Mr C G Lewis (Deputy Chairman) Mrs L Otten Mr R Porter (Resigned 25" June 2024) Mr R Wilsher
Senior officers Mr R P May (Headmaster) Mr B Bates (Bursar)
Company Secretary Mr B Bates
Bankers
Barclays Bank plc, Barclays House, Ocean Way, Southampton, S014 2ZP
Auditors
Saffery LLP, Midland House, 2 Poole Road, Bournemouth, Dorset, BH2 5QY
Solicitors
Clarke Willmott LLP, Burlington House, Botleigh Grange Business Park, Hedge End, Southampton, $030 2AF
Website
www.durlstonschool.co.uk
Durlston Court School Trust Limited
4
Financial statements for the year ended 31 August 2024
Structure, Governance and Management
The Charity’s Governing Document is its Memorandum and Articles of Association, dated 23 January 1973 (and last amended 7 November 2006). It is a company limited by guarantee, having no share capital, and its members undertake to contribute an amount not exceeding £1 each in the event of the Charity being wound up. The Governors are the Charity’s trustees and directors and are also collectively referred to in this report as the Governing Body. The number of Governors must not be less than seven or more than thirty. New Governors are appointed by the Governing Body, after careful consideration of eligibility, skills and experience. Suitable candidates may be identified through internal recommendation or external search. New Governors become familiar with the constitution and operation of the Charity through a structured range of induction initiatives. The Charity is a member of AGBIS which provides access to training opportunities for Governors.
The Governors are responsible for the overall management of the Charity which includes determining strategy, establishing key policies, setting aims and objectives, agreeing budgets and longer term plans, reviewing actual performance against objectives and ensuring compliance with relevant statutes and regulations. The Governing Body meets at least three times each year and is supported by four Committees, each of which is chaired by a Governor, covering Finance & General Purposes, Education, Marketing and Risk Management.
The day-to-day management and related decisions, within the policies and parameters determined by the Governors, are delegated to the Headmaster and Bursar who attend the meetings of the Governors and the Committees.
Objectives and Activities
The principal objects for which the Charity was established, as set out in its Governing Document, are to promote and provide for the advancement of education, through the operation of a school or schools.
The principal activity of the Charity is the operation of Durlston Court School, an independent, co-educational preparatory school. Pupils are aged between two and sixteen years.
The principal aim of the school is to provide a happy, secure environment where pupils benefit from an education of the highest quality, to prepare pupils academically, culturally and morally to enable them to progress confidently to the next stage of their education.
The main objectives for the year ended 31 August 2024 related to the quality of the education provided, the award of scholarships and means-tested bursaries, the Charity’s involvement with the local community and the Charity’s financial position.
In June 2022, the school announced that we would be extending our educational provision to include GCSE. The gradual expansion of the school took place from September 2023 when we welcomed our first Year 9 cohort. The first GCSE examinations will take place in the summer term of 2026. We have received an extremely positive response from both existing and prospective parents and this further reinforces our charitable aims to provide an outstanding quality of education to the local community. The school has budgeted for the expansion plans over the medium term and looks forward to welcoming our first Year 10 group in September 2024.
The Governors seek to achieve these objectives primarily through effective leadership, a clear commitment to the highest standards of education, service, and financial control.
Durlston Court School Trust Limited
5
Financial statements for the year ended 31 August 2024
Strategic Report
Achievements and Performance
During the year under review the Charity achieved its main objectives through effective leadership, a clear commitment to high standards, and strong fiscal control. An inspection by the Independent Schools Inspectorate (ISI), which took place in May 2017 rated the school's provision as ‘Excellent’ in all areas. A further compliance inspection by the ISI was completed in November 2021, in which the school passed all areas successfully. In order to proceed with the plan to extend our provision to GCSE, the IS! conducted a Material Change inspection in July 2023. The school passed all areas successfully, allowing our intake numbers to increase to 453 along with being able to teach up to GCSE. An inspection by the ISt took place during September 2024 under the new ISI Framework and the school successfully met the standards in all areas of the inspection.
Academic standards
Durlston pupils continue to achieve great academic and educational success, A number of our Year 8 pupils joined the first Year 9 at Durlston, many achieving scholarships as they entered Year 9. Other Year 6 and Year 8 leavers secured places at a number of prestigious senior schools throughout the country, including: Canford, Winchester College, Clayesmore, King Edward VI, Talbot Heath as well as international and other local schools. A large number of different scholarships were awarded to Durlston pupils at these schools, including: academic, musical and sporting awards, all testament to the superb all-round education and the extraordinarily high standard of teaching and opportunities the pupils enjoy at Durlston.
Improvements to the site and facilities
The school continues to invest in preparing the school facilities to accommodate our GCSE expansion plans, alongside a rigorous maintenance programme. During the year work has been completed on the creation of a new Science laboratory, History classroom, IT suite alongside refurbishment of the Art Studio and various classrooms. Repairs continue to be undertaken in line with the ongoing Maintenance Programme. The school further added to our Chromebook stock, providing all pupils in Year 4 to 8 with their own school device. Total capital expenditure in the year amounted to £104,252.
Pupil numbers
Pupil numbers at year end are 264 (2023: 260) and were in line with objectives.
Bursaries and scholarships
Scholarships were awarded in recognition of academic, sporting, art, drama or musical excellence. Meanstested bursaries are awarded in appropriate circumstances. The Charity was able to offer full financial assistance to Ukrainian refugees to enable their children to benefit from our education provision. During the year, all eligible requests for means-tested bursarial assistance were met by the Charity.
Involvement with the local community
The School has continued to become involved with the local community. This has covered a number of different areas. We have supported events such as the town Remembrance Parade and Remembrance Service; we have raised funds for, and offered practical support to, local charitable organisations such as the Christchurch Support Kabin and Lymington Food Bank; our minibuses are loaned out to other schools and youth organisations in the area so that these groups can offer more flexibility in their provision; we have laid on extra performances of our plays and concerts for local elderly residents; we have been carol singing round local care homes. In addition, extending access to the Durlston Holiday Activities to all the local community has meant that we are supporting the childcare needs of working parents in the area, not just the parental body of Durlston School. We have supported a school in Uganda through a number of school events, and have done this through a partnership with a local Milford charity. Bursaries enable access to the school's education for local children as well as those further afield. We have also hosted sporting festivals for other local state and independent schools.
Durlston Court School Trust Limited
6
Financial statements for the year ended 31 August 2024
Financial objectives
Net outgoing resources of £64,244 (2023: £199,120) for the year were in line with expectations, resulting in a net current asset position of £304,502 (2023: net current liability £155,630).
Financial Review
The financial results for the year are presented in the Statement of Financial Activities on page 15.
Net resources have been applied to financing the Capital Development and Maintenance Programme and mortgage repayments. Net school fees amounting to £3,323,403 represented 90.3% of total income, and the operating costs of the school of £3,549,548 represented 95% of total expenditure.
Reserves Policy
The Governing Body has a long standing policy to build sufficient reserves to enable the ongoing activities of the School to be maintained. The general aim is to ensure an adequate surplus is achieved each year. At year end the school had unrestricted funds of £2,069,931 (2023: £2,134,175). The level of reserves is reviewed by the Governors annually. The free reserves after excluding fixed assets and related liabilities are negative £396,699 (2023: negative £209,742).
In December 2004 the freehold ofthe[estate,][previously][ leased][by][ the][Charity,][was][acquired.][The][original][cost] of the purchase is held at historic value within the assets of the Charity. The associated financing costs and the need for investment in previously rented buildings and grounds, continues to impact on the Charity's ability to build reserves in the short term. However, in the long term the Governors believe that substantial benefits will continue to accrue to the Charity from owning the site.
Remuneration Policy
The key management personnel of[the][ school][are][ the][Senior][Leadership][ Team,][consisting][of][ the][Headmaster,] Deputy Head Pastoral, Deputy Head Academic, Head of Pre-Prep, Head of Senior School and Bursar. The remuneration of the Head and Bursar are set by the Remuneration Committee consisting of the Chair and Vice Chair of Governors.
Plans for Future Periods
Further to the announcement that the School will be expanding the education provision to include GCSE, this will now become the key strategic objective for the period to August 2026, at which time the first GCSE examinations will have taken place.
The key elements of the Charity’s strategy include the planning and development relating to the provision of new educational facilities for approximately 120 additional pupils. The school will engage with architects and builders to prepare a plan for the delivery of 6 additional classrooms.
The school will also maintain our focus on the continued provision of a high standard of all-round education for all our pupils, financial security and the maximisation of the public benefit provided by the Charity.
Principal Risks and Uncertainties
The role of the Risk Management Committee is to identify, assess and prioritise the major risks to which the Charity is exposed, and to ensure that these are appropriately managed. Risk Management information is reviewed at each meeting of the Governing Body, with risks being assessed based on how likely a risk is to occur, and the impact on the school if it were to occur. The major risks identified being the economic climate uncertainty, changes to the regulatory, legislative and inspection regime including the proposed introduction of VAT to school fees from 1% January 2025. To mitigate these risks, among other actions, the Governors regularly monitor the budget and forecasting along with an effective marketing plan, seek external legal and regulatory advice, and ensure appropriate risk assessments are in place.
Public Benefit Statement
In considering its future strategy, aims and objectives, the Governors have given due regard to the Charity Commission’s guidance on Public Benefit in accordance with Section 4 of the Charities Act 2011.
Durlston Court School Trust Limited
7
Financial statements for the year ended 31 August 2024
Statement of Governors' responsibilities for the financial statements
The Governors (who are also directors of Durlston Court School Trust Limited for the purposes of company law) are responsible for preparing the Report of the Governors and the financial statements in accordance with applicable law and regulations.
Company law requires the Governors to prepare financial statements for each financial year. Under that law the Governors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), Under company law the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view ofthe state of affairs of the charitable company and ofthe incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Governors are required to:
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° select suitable accounting policies and then apply them consistently; e observe the methods and principles in the Charities SORP; ° make judgments and accounting estimates that are reasonable and prudent; ° state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006, They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Governors confirm that:
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e so far as each Governor is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and
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e — the Governors have taken all the steps that they ought to have taken as Governors in order to make themselves aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.
The Governors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Auditors
Saffery LLP, who were appointed in 2013, have expressed their willingness to continue in office and will be deemed reappointed for the next financial year in accordance with section 487(2) of the Companies Act 2006, unless the company receives notice under section 488(1) of the Companies Act 2006,
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ON BEHALF OF THE GOV. BODY, ALSO APPROVING THE STRATEGIC REPORT IN THEIR CAPACITY AS
DIRECTORS
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C C Ashfield - Chair of Governors
315 January 20 =
PS
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8
Independent auditor's’ report to the members of Durlston Court School Trust Limited
Opinion
We have audited the financial statements of Durlston Court School Trust Limited for the year ended 31 August 2024 which comprise a statement of financial activities, balance sheet, cash flow statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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e give a true and fair view of the charitable company’s state of affairs as at 31 August 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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e have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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e have been prepared in accordance with the Companies Act 2006.
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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of[the][financial][statements][is][appropriate.] Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 trustees with respect to going concern are described in the relevant sections of[this][report.]
Other information
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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 course of 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement ofthis other information we are required to report that fact.
We have nothing to report in this regard.
9
Independent auditor's; 5 report to the members of Durlston Court School Trust Limited
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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e the information given in the Trustees’ Annual Report which includes the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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e the Trustees’ Annual Report which includes the Directors’ Report has been prepared in accordance with applicable legal requirements.
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 Trustees’ Annual Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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e adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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e the financial statements are not in agreement with the accounting records and returns; or e certain disclosures of trustees’ remuneration specified by law are not made; or
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wehave not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Trustees’ Responsibilities Statement set out on page 7, the trustees (who are also 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 staternents that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees 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 to do so.
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.
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 econamic 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
10
Independent auditor's' 1 report to the members of Durlston Court School Trust Limited
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charitable company by discussions with trustees and updating our understanding of the sector in which the charitable company operates.
Laws and regulations of direct significance in the context of the charitable company include The Companies Act 2006, and guidance issued by the Charity Commission for England and Wales.
Further, the charity is subject to other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, through significant fine, litigation or restrictions on the charity's operations. We identified the most significant laws and regulations to be those monitored by the Independent Schools Inspectorate.
Audit response to risks identified:
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council's website at: www,[frc.org.uk/auditorsresponsibilities.][This][description][forms][part][of][ our][auditor's][report.]
6 February 2025
Durlston Court School Trust Limited
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Financial statements for the year ended 31 August 2024
Principal accounting policies
Basis of preparation
The accounts have been prepared under the Companies Act 2006 and in accordance with the Charities Statement of Recommended Practice (“SORP (FRS102)") and Financial Reporting Standard 102. The accounts are drawn up on the historical cost basis of accounting. The School is a Public Benefit Entity as defined by FRS102.
Having reviewed the funding facilities available to the School together with the expected ongoing demand for places and the School's future projected cash flows, the Governors have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the School's financial statements.
1.1 Fees and similar earned income
Fees receivable and charges for services and use ofthe 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 service is provided.
1.2 Investment income
Investment income from bank balances and savings accounts are accounted for on an accruals basis.
1.3 Donations and other voluntary incoming resources
Voluntary incoming resources are accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the School is considered probable. Voluntary income for the School's general purposes is accounted for as unrestricted and is credited to the General Reserve.
1.4 Expenditure
Expenditure is accrued as soon asa liability is considered probable, discounted to present value for longerterm liabilities. Expenditure attributable to more than one cost category in the SoFA is apportioned to them on the basis of the estimated amount attributable to each activity in the year, either by reference to staff time or the use made of the underlying assets, as appropriate. Irrecoverable VAT is included with the item of expenditure to which it relates.
Governance costs comprise the costs of complying with constitutional and statutory requirements.
1.5 Tangible fixed assets
Expenditure on the acquisition, construction or enhancement of land and buildings costing more than £5,000 together with vehicles, furniture, machinery, ICT infrastructure and other equipment costing more than £250 are capitalised and carried in the balance sheet at historical cost. ICT equipment costs are written off as incurred. In certain circumstances, where the original costs of assets are not ascertainable, a reasonable estimate of[the][cost,][if][ material,][has][been][used.][Other][ expenditure][on][equipment][incurred][in][ the][normal][day-] to-day running of the School is charged to the Statement of Financial Activities as incurred.
Durlston Court School Trust Limited
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Financial statements for the year ended 31 August 2024
1.6 Depreciation
Depreciation is provided to write off the cost of[all][relevant tangible][fixed][assets][less][estimated][residual][value] based on current market prices, in equal annual instalments over their expected useful economic lives as follows:
School buildings, including major extensions 40 - 50 years
Alterations on change of use and minor extensions 10 - 25 years
Furniture, machinery and equipment 5 years Motor vehicles 5 years
Computer equipment 5 years
No depreciation is provided on freehold land. Periodic impairment reviews are carried out.
1.7 Stocks
Stocks are valued at the lower of cost and net realisable value.
1.8 Fund accounting
The charitable trust funds of the School are accounted for as unrestricted or restricted income, or as endowment capital, in accordance with the terms oftrust imposed by the donors or any appeal to which they may have responded. Endowment funds are further subdivided into permanent and expendable.
Unrestricted income belongs to the School's corporate reserves, spendable at the discretion of the Governors either to further the School's Objects or to benefit the School itself. Where the Governors decide to set aside any part of these funds to be used in future for some specific purpose, this is accounted for by transfer to the appropriate designated fund.
Restricted income comprises gifts, legacies and grants where there is no capital retention obligation or power but only a trust law restriction to some specific purpose intended by the donor.
1.9 Pension costs
Retirement benefits to employees of the School are provided through three pension schemes, one defined benefit and two defined contribution. The pension costs charged in the Statement of Financial Activities are determined as follows:
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(a) Royal London Pension - This scheme is the nominated pension schemes for teachers employed by the school. Employer's pension costs are charged in the period in which the salaries to which they relate are payable.
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(b) The Peoples Pension - Employer's pensions costs are charged in the period in which the salaries to which they relate are payable.
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(c) Pensions Trust Scheme - The costs relating to this scheme are outlined in note 17
1.10 Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Durlston Court School Trust Limited
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Financial statements for the year ended 31 August 2024
1.11 Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
1.12 Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
The school operates a Fees in Advance scheme whereby parents pay a lump sum towards future fees payable, in return ofa discount. The discount rate is set by the Finance Committee on a periodic basis.
1.13 Financial instruments
The trust only has financial assets and financial liabilities ofa kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
1.14 Critical estimates and judgements and key sources of estimation uncertainty
In the application ofthe charity's accounting policies, the trustees are required to make judgement, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision effects both current and future periods.
There are no critical estimates, judgements or key sources of estimation uncertainty in 2024 or 2023.
1.15 Termination costs
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate employment of an employee or to provide termination benefits.
Duriston Court School Trust Limited
15
Financial statements for the year ended 31 August 2024
Statement of financial activities (including income and expenditure account)
| Unrestricted Funds | Unrestricted Funds | ||
|---|---|---|---|
| Note | 2024 | 2023 | |
| £ | £ | ||
| Incoming resources | |||
| Incoming resourcesfrom charitable activities | 1 | 3,632,795 | 2,987,111 |
| Incoming resourcesfrom generated funds: | |||
| Voluntary income | 2 | 22,203 | 1,503 |
| Investment income | 3 | 13,972 | 6,398 |
| Other incoming resources | 12,569 | 63,962 | |
| Total incoming resources | 3,681,539 | 3,058,974 | |
| Resources expended | |||
| Costs ofgenerating funds | 151,937 | 148,251 | |
| Charitable activities | 3,561,752 | 3,072,771 | |
| Other resources expended | 4 | 32,094 | 37,082 |
| Total resources expended | 5 | 3,745,783 | 3,258,104 |
| Net (Expenditure) | (64,244) | (199,130) | |
| Actuarial Gain on Defined Benefit Pension Schemes | - | 10 | |
| Movements in funds | (64,244) | (199,120) | |
| Totalfunds broughtforward at 1 September 2023 | 2,134,175 | 2,333,295 | |
| Totalfundscarriedforwardat31August2024 | 2,069,931 | 2,134,175 |
All amounts derive from continuing activities.
The accompanying accounting policies and notes form part of these financial statements.
Durlston Court School Trust Limited
16
Financial statements for the year ended 31 August 2024
Balance sheet
| Companynumber 1091930 | Companynumber 1091930 | Note | 2024 | 2024 | 2023 | 2023 |
|---|---|---|---|---|---|---|
| £& | £ | £ | £ | |||
| Fixed assets | ||||||
| Tangible assets | 8 | 3,196,561 | 3,190,103 | |||
| Current assets | ||||||
| Stocks | 9 | 3,399 | 3,470 | |||
| Debtors | 10 | 253,626 | 154,873 | |||
| Cash at bankand in hand | 1,236,751 | 294,572 | ||||
| 1,493,776 | 452,915 | |||||
| Liabilities | ||||||
| Creditors: amounts falling | due | |||||
| within oneyear | 11&13 | (1,189,274) | (608,545) | |||
| Net current assets / (liabilities) | 304,502 | (155,630) | ||||
| Total assets less current | liabilities | 3,501,063 | 3,034,473 | |||
| Creditors: amounts falling | due after | |||||
| morethan oneyear | 12&13 | (1,431,132) | (898,365) | |||
| Provision for Pension | 18 | - | (1,933) | |||
| Net assets | 2,069,931 | 2,134,175 | ||||
| Total charity funds: | ||||||
| Unrestricted incomefunds | 2,069,931 | 2,134,175 | ||||
| The financial statements were approved bytheGovernors on 31* | January 2025 | |||||
| MrCC Ashfield | Chairman of Governors | |||||
| ZEA MrCGLewis ChairmanofFinanceand |
‘ GeneralPurposesCommittee |
The accompanying accounting policies and notes form part of these financial statements.
Durlston Court School Trust Limited Financial statements for the year ended 31 August 2024
17
Cash flow statement
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|||||||||||
|---|---|---|---|---|---|---|---|---|---|
|Note|2024|2024|2023|2023|
|£|£|£|£|
|Net|cash|inflow|/|(outflow)|from|
|operating activities|19|1,182,779|198,047|
|Returns|on|investments|and|servicing|
|of finance|
|Interest|received|13,972|6,398|
|Interest|paid|(34,065)|(39,658)|
|(20,093)|(33,260)|
|Cash|used|in|investing|activities|
|Payments to|acquire|tangible|fixed|assets|(104,252)|(59,305)|
|Proceeds|from|sale|of|property,|plant|or|-|-|
|equipment|
|Cash|used|in|financing|activities|
|Bank|loan|repayments|(116,255)|(110,335)|
|Increase|/|(Decrease)|in|cash|in|year|20|942,179|(4,853)|
|Cash|at|the|beginning|of|the|reporting|
|period|294,572|299,425|
|Cash|at|the|end|of the|reporting|period|1,236,751|294,572|
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The accompanying accounting policies and notes form part of these financial statements.
Duriston Court School Trust Limited
18
Financial statements for the year ended 31 August 2024
1
Notes to the financial statements
Incoming resources from charitable activities
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| School fees and associated income: | |||
| Fees receivable | 4,142,175 | 3,540,589 | |
| Less: Bursaries, scholarships and other discounts | (818,772) | (738,309) | |
| Netfees receivable | 3,323,403 | 2,802,280 | |
| Disbursements | 172,663 | 129,953 | |
| Extra tuition | 132,079 | 50,328 | |
| Entrance fees | 4,650 | 4,550 | |
| 3,632,795 | 2,987,111 | ||
| 2 | Voluntary income | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Donations | 22,203 | 1,503 | |
| 3 | Investment income | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Bankdeposit interest | 13,972 | 6,398 | |
| 4 | Other resources expended | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Interest payable on bank loan see also note 12 | 34,027 | 39,528 | |
| Actuarialgains on PensionTrustscheme | (1,971) | (2,576) | |
| Other interest costs | 38 | 130 | |
| 32,094 | 37,082 |
Durlston Court School Trust Limited
19
Financial statements for the year ended 31 August 2024
5
Analysis of total resources expended
| 2024 | |||||
|---|---|---|---|---|---|
| Staff costs | Other | Depreciation | Total | ||
| £ | £ | £ | £ | ||
| Costs ofgenerating funds | |||||
| Advertising and publicity | 89,644 | 62,293 | - | 151,937 | |
| Charitable activities | |||||
| School operating costs: | |||||
| Teachingand support costs | 2,225,389 | 192,171 | - | 2,417,560 | |
| Cateringand support costs | 231,546 | 106,080 | = | 337,626 | |
| Premises | 101,819 | 313,428 | 78,085 | 493,332 | |
| Support and administration | 179,867 | 101,024 | 19,709 | 300,600 | |
| Governance costs | - | 12,634 | - | 12,634 | |
| 2,738,621 | 725,337 | 97,794 | 3,561,752 | ||
| Other resources expended | |||||
| Interest payable on bank loan | - | 34,027 | - | 34,027 | |
| Other gains and losses | - | (1,971) | - | (1,971) | |
| Other interest costs | a | 38 | = | 38 | |
| - | 32,094 | - | 32,094 | ||
| 2,828,265 | 819,724 | 97,794 | 3,745,783 | ||
| Total resources expended include: | |||||
| 2024 | 2023 | ||||
| £ | £ | ||||
| Auditors' remuneration for audit services excluding VAT | 10,900 | 8,900 | |||
| (Decrease) / Increase in Stock | (71) | 688 | |||
| Operating lease rentals | 4,100 | 3,600 | |||
| Professionalindemnityinsurance | premiumexcluding(PT | 775 | 652 |
Total resources expended include:
Durlston Court School Trust Limited
20
Financial statements for the year ended 31 August 2024
5
Analysis of total resources expended continued
Comparison Figures from 2023 are as follows:
| 2023 | ||||
|---|---|---|---|---|
| Staff costs | Other | Depreciation | Total | |
| £ | £ | £ | £ | |
| Costs ofgeneratingfunds | ||||
| Advertising and publicity | 74,607 | 73,644 | - | 148,251 |
| Charitable activities | ||||
| School operating costs: | ||||
| Teachingand support costs | 1,864,144 | 144,233 | * | 2,008,377 |
| Catering and support costs | 210,144 | 97,621 | - | 307,765 |
| Premises Supportand administration |
81,632 168,912 |
260,509 127,621 |
78,226 28,556 |
420,367 325,089 |
| Governance costs | . | 11,173 | - | 11,173 |
| 2,324,832 | 641,157 | 106,782 | 3,072,771 | |
| Other resources expended | ||||
| Interest payable on bank loan | = | 39,528 | - | 39,528 |
| Othergains and losses | - | (2,576) | - | (2,576) |
| Other interest costs | - | 130 | - | 130 |
| > | 37,082 | - | 37,082 | |
| 2,399,439 | 751,883 | 106,782 | 3,258,104 |
6
Employees
Staff costs during the year were as follows:
| Staff costscosts during the year wereyear werewere as follows: | ||
|---|---|---|
| 2024 | 2023 | |
| £ | £ | |
| Wages and salaries | 2,393,509 | 2,033,131 |
| Social securitycosts | 186,216 | 160,920 |
| Otherpension costs (note 17) | 248,541 | 205,388 |
| Other staffcosts | - | - |
| 2,828,266 | 2,399,439 |
The average number of employees of the Charity during the year was 107 (2023: 94). The average number of full time equivalent employees was 64 (2023: 61)
One employee's emoluments were within the range £80,000 - £90,000 (2023: one employee within the range £80,000-£90,000). The total of key management personnel compensation was £400,984 (2023: £380,078).
Contributions were made to a defined contribution pension scheme in respect of the highest paid employee.
Two employees received termination payments totalling £21,691 (2023: nil).
Durlston Court School Trust Limited
21
Financial statements for the year ended 31 August 2024
7
8
Transactions with governors and other related parties
No Governors received remuneration in the year, directly or indirectly from the Charity. The total number of governors who incurred expenses was nil (2023: nil). Related party transactions during the year was nil (2023: nil).
Tangible fixed assets
| Freehold | Freehold | Fixtures, | |||||
|---|---|---|---|---|---|---|---|
| land | and | Motor | _ | fittingsand | Computer | ||
| buildings | vehicles | equipment | equipment | Total | |||
| £ | £ | £ | £ | £ | |||
| Cost | |||||||
| At 1 September 2023 | 4,680,815 | 80,921 | 489,536 | 304,166 | 5,555,438 | ||
| Additions | 81,434 | = | 16,115 | 6,703 | 104,252 | ||
| Disposals | ; | - | - | . | > | ||
| At31 August2024 | 4,762,249 | 80,921 | 505,651 | 310,869 | 5,659,690 | ||
| Depreciation | |||||||
| At 1 September2023 | 1,557,102 | 77,806 | 450,058 | 280,369 | 2,365,335 | ||
| Provided intheyear | 78,085 | 1,700 | 8,240 | 9,769 | 97,794 | ||
| Disposals | - | - | - | - | - | ||
| At31 August2024 | 1,635,187 | 79,506 | 458,298 | 290,138 | 2,463,129 | ||
| Net book amount | |||||||
| At31 August2024 | 3,127,062 | 1,415 | 47,353 | 20,731 | 3,196,561 | ||
| Net book amount | |||||||
| At31 August2023 | 3,123,713 | 3,115 | 39,478 | 23,797 | 3,190,103 | ||
| Stocks | |||||||
| 2024 | 2024 | ||||||
| £ | £ | ||||||
| Catering provisionsand heating fuel | 3,399 | 3,470 | |||||
| Debtors | |||||||
| 2024 | 2023 | ||||||
| £ | £ | ||||||
| Trade debtors | 110,050 | 44,373 | |||||
| Other debtors | 62,000 | 33,645 | |||||
| Prepayments and accrued income | 81,576 | 76,855 | |||||
| 253,626 | 154,873 |
9
10
Durlston Court School Trust Limited
22
Financial statements for the year ended 31 August 2024
11
12
13
Creditors: amounts falling due within one year
| 2024 | 2023 | |
|---|---|---|
| fi | £ | |
| Bank loans | 134,894 | 116,253 |
| Trade creditors | 101,776 | 53,734 |
| Social securityand other taxes | 40,326 | 35,991 |
| Other creditors | 14 | 47,846 |
| Accruals and deferred income | 279,370 | 283,328 |
| 556,380 | 537,152 | |
| Creditors: amounts falling due after more than one year | ||
| 2024 | 2023 | |
| £ | £ | |
| Between one and two years | 140,000 | 134,894 |
| Between two and fiveyears | 420,000 | 420,000 |
| Afterfiveyears | 35,037 | 175,039 |
| 595,037 | 729,933 |
Creditors: amounts falling due after more than one year comprises a bank loan secured over the freehold property which is repayable by December 2029. The original fixed rate agreement for this loan expired in December 2015, and then subsequently in December 2024, which was replaced by a new fixed rate agreement which expires in December 2029..
Creditors: fees in advance
The school operates a Fees in Advance scheme, allowing parents to pay a lump sum to be used towards future school fees.
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Within oneyear | 632,894 | 71,393 |
| Between one and twoyears | 426,808 | 88,671 |
| Between two and fiveyears | 293,440 | 79,761 |
| Afterfive years | 115,847 | - |
| 1,468,989 | 239,825 |
Liability of members
The Charity does not have any share capital. The members, consisting of the Governors who are also directors, undertake to contribute an amount not exceeding £1 each in the event of the Charity being wound up. The Charity has insurance to cover both Professional Indemnity and Governors’ Liability. The cover is limited to £2,000,000 (2023: £2,000,000).
14
Durlston Court School Trust Limited
23
Financial statements for the year ended 31 August 2024
15
16
17
Leasing commitments
At 31 August 2024, the charity had aggregate total commitments under non-cancellable operating leases as
| set out below: | ||
|---|---|---|
| 2024 | 2023 | |
| £ | £ | |
| Within oneyear | 4,208 | 3,600 |
| Between two and five years | 17,936 | 1,800 |
| Afterfive years | 2,075 | - |
| 24,219 | 5,400 |
Capital commitments
There were no capital commitments at 31 August 2024 or 31 August 2023.
Contingent liabilities
There were no contingent liabilities at 31 August 2024 or 31 August 2023.
18
Pensions
Teachers Pensions
Pension contributions for teachers are paid to Royal London as part ofa Defined Contribution Scheme. The amount paid into the scheme for the year was £340,629 (2023: £271,166).
Other Pension Schemes
Pension contributions are also paid to contributory and non-contributory pension schemes for the benefit of non-teaching staff. Non-teaching staff may contribute to one of two money purchase pension schemes. The assets of these schemes are held separately from those of the school in independently administered funds.
The company participates in a multi-employer scheme which provides benefits to some 82 nonassociated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore, it accounts for the scheme as a defined contribution scheme.
The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The scheme is classified as a 'last-man standing arrangement’. Therefore, the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
A full actuarial valuation for the scheme was carried out at with an effective date of 30 September 2020. This actuarial valuation was certified on 21 December 2021 and showed assets of £153.3m, liabilities of £160m and a deficit of £6.7m. To eliminate this funding shortfall, the Trustee and the participating employers have agreed that additional contributions will be paid, in combination from all employers, to the scheme as follows:
Durlston Court School Trust Limited
24
Financial statements for the year ended 31 August 2024
Deficit contributions ior From 1 April 2022 to 31 May 2024: £1,473,969 per annum (payable monthly and increasing by 3% each year on 1* April)
Some employers have agreed concessions (both past and present) with the Trustee and have contributions up to 28 February 2034.
Note that the scheme's previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £120.0m, liabilities of £145.9m and a deficit of £25.9m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:
Deficit contributions
. From 11 AprilApril 2019 to 300 September 2026 : (payable monthly and .increasing: by£1,404,638 3%, each’ onper 1st annum April)F 5eeess ———— From 1 April 2019 to 30 September 2027: £136,701 per annum (payable monthly and increasing by 3% each on 1st April) sss
The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities.
:
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||||||||||
|---|---|---|---|---|---|---|---|---|
|Present|values|of|Provision|
|2024|2023|2022|
|£|£|£|
|Present value|of provision|-|1,933|4,379|
|Reconciliation|of opening|and|closing|provisions|
|2024|2023|
|£|£|
|Provision|at start|of|period|1,933|4,379|
|Unwinding|of the|discount|factor|(interest|expense)|38|130|
|Deficit|contribution|paid|(1,971)|(2,566)|
|Remeasurements|-|impact|of any|change|in|assumptions|-|(10)|
|Remeasurements|-|amendments|to|the|contribution|schedule|-|-|
|Provision|at|end|of|period|-|1,933|
|Income|and|expenditure|impact|
|Interest|expense|38|130|
|Remeasurements|-|impact|of any|change|in|assumptions|-|(10)|
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Durlston Court School Trust Limited
25
19
Financial statements for the year ended 31 August 2024
Assumptions
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|||||||||
|---|---|---|---|---|---|---|---|
|2024|2023|2022|
|%|per|annum|%|per annum|%|per|annum|
|Rate|of discount|477|5.96|4.35|
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The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
The school is a member of The Peoples Pension scheme as the auto-enrolment pension scheme for the benefit of all non-teaching staff.
All pension contribution costs are recognised in the statement of financial activities as they become paya ble. Amounts owing to pension schemes as at the year-end amounted to nil (2023: £42,829).
Reconciliation of net incoming resources to net cash inflow from operating activities
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|||||||||||
|---|---|---|---|---|---|---|---|---|---|
|2024|2023|
|£|£|
|Net (Outgoing)|resources|(64,244)|(199,120)|
|Net|interest|paid|20,093|33,260|
|Depreciation|97,794|106,782|
|Decrease|/|(Increase)|in|stock|71|(698)|
|(Increase)|in|debtors|(98,753)|(60,182)|
|Increase|in|creditors|4,113,496|320,451|
|(Decrease)|in|provision|for|pension|(1,933)|(2,446)|
|Net|cash|inflow|/|(outflow)|from|operating|activities|1,182,779|198,047|
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Analysis of changes in net debt
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|||||||||
|---|---|---|---|---|---|---|---|
|At|At|
|1|Sep|2023|Cash|flow|31|Aug|2024|
|£|E|£|
|Cash|at|bank and|in|hand|294,572|942,179|1,236,751|
|Bank|loan|(846,184)|116,253|(729,931)|
|(551,612)|1,058,432|506,820|
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20