Company Registration No. 00859223 (England and Wales) Charity Registration No. 307852 (England and Wales)
## **WELLESLEY HOUSE AND ST PETER'S COURT**
## **EDUCATIONAL TRUST LIMITED**
## **REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED**
**30 SEPTEMBER 2022**
**WELLESLEY HOUSE AND ST PETER'S COURT EDUCATIONAL TRUST LIMITED**
## **CONTENTS**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2022**
|**CONTENTS**|**Page**|
|---|---|
|Directors and company information|2|
|Governors' report|3 - 7|
|Independent examiners' report|8|
|Statement of financial activities|9|
|Balance sheet|10|
|Notes to the financial statements|11 - 19|
**WELLESLEY HOUSE AND ST PETER'S COURT EDUCATIONAL TRUST LIMITED**
**DIRECTORS AND COMPANY INFORMATION**
**FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **DIRECTORS AND COMPANY INFORMATION**
**Directors (Governors of the Trust)** P J Woodhouse (Chairman) Mrs K Fenwick J M W Sale D Royds J Jackson A Land K Morgan C Evans (resigned 12th May 2022) **Secretary and registered office** Mrs B A Parsons Wellesley House & St Peter's Court Educational Trust ltd c/o 6 Knightrider Street Sandwich, England Kent CT13 9EW **Company registration number** 00859223 **Charity registration number** 307852 **Independent Examiners** Levicks Chartered Accountants 61 London Road Maidstone Kent ME16 8TX **Solicitors** Boys & Maughan Solicitors 11-13 Hawley Street Margate Kent CT9 1PZ **Bankers** Handelsbanken PLC Station Road E Canterbury Kent CT1 2BJ
Page 2
**WELLESLEY HOUSE AND ST PETER'S COURT EDUCATIONAL TRUST LIMITED**
## **GOVERNORS' REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2022**
The Governors, who are also Directors of the charity for the purposes of the Companies Act and Trustees for the purposes of the Charities Act, submit their annual report and the independently reviewed financial statements for the year ended 30 September 2022. This incorporated a change in the period end date in 2021 to correspond with the date of acquisition by Alpha Schools (Holdings) Limited.
The financial statements comply with the Companies Act 2006, Charities Act 2011, the Memorandum and Articles of Association and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK (FRS 102) (Second edition).
## **ADMINISTRATIVE INFORMATION**
The company is an Educational Trust and as such is a recognised charity, which was registered on 9 August 1966. The company is limited by guarantee and does not have a share capital.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The charity is governed by its Memorandum and Articles of Association last amended in June 2015.
## **Governors**
The Board of Governors constitutes the Directors of the company. The list of Governors who held office at the date of this report is shown on page 2.
The Articles of Association provide that there shall be no less than 5 and (unless otherwise determined by Ordinary Resolution) shall not be subject to a maximum.
At the Annual General Meeting one third of the Governors shall retire from office by rotation. The governors to retire in each year are those who have been longest in office since their last election or appointment. A retiring Governor is then eligible for re-election.
## **Restructure of the Business**
Following an extensive search to identify a suitable partner to ensure optimal continuity of education of the pupils in accordance with its charitible objecive, the trustees entered into an arrangment with Haddon Dene a subsidiary of Alpha Schools (Holdings) Limited.
Under the terms of the Asset Purchase Agreement (APA), Alpha Schools (Holdings) Limited is the operator of the school and is the tenant of the estate, which remains in the ownership oif the charity. Completion of the transaction was on 30 September 2021.
## **Governance**
The Governors are responsible for the overall management and control of Wellesley House & St Peter's Court Educational Trust Limited and propose to meet annually unless the Chariman requests further meetings if required.
The Trustees (who are also Directors of the charity for the purposes of company law) are responsible for preparing the Trustees' Report and the Financial Statements in accordance with applicable law and United
Page 3
**WELLESLEY HOUSE AND ST PETER'S COURT EDUCATIONAL TRUST LIMITED**
## **GOVERNORS' REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2022**
Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). From 1 October 2021 the day to day running of the charity was delegated to Mrs Barbara Parsons who also acts as Company Secretary and maintains frequent contact with the Chair.
All non-regular financial transactions over £1,000 are approved by at least one Director. There are no full time employees.
The company's Memorandum of Association dated 4 May 1928 (altered by Special Resolution on 25 September 1951) empowers it to invest and deal with the monies of the company not immediately required, as it thinks fit.
New Governors are appointed by existing Governors and care is taken to ensure that all necessary skills and experience are represented.
Each new Director is provided with an induction pack and is expected to attend one of the regularly available training courses for new charity Trustees.
## **Objectives and Activities**
The company's principal charitable objective is to maintain a school at Wellesley House in Broadstairs at which girls and boys are educated and to award bursaries to pupils who could not otherwise afford to attend an independent school.
As from 1st October 2021, the charity leases the premises to Alpha Schools (Holdings) Limited which now operates Wellesley House School.
The Governors' principlal objective is to ensure that the estate at Wellesley House continues to educate children. Under the terms of the APA the school operated by Alpha Schools (Holdings) Limited will continue to educate children. The Governors are committed to ensure that the buildings are maintained safely and to a high standard and in line with the demands of a leading independent school.
## **Principle activities of the year**
The principal activity of the charitable company during the year was to maintain and carry on Wellesley House School as an Educational Trust.
## **Scholarships and Bursaries**
The Governors view bursaries and scholarships as important and believe that pupils benefit from interacting and learning with a diverse range of people. As such, it is important that access to the education and facilities is not restricted only to those who can afford the fees.
Wellesley House & St Peter's Court Educational Trust Limited does not benefit from endowment funding and historically has a small amount of investments, which do not generate significant incoming funds. In reviewing bursary requests, the charity must therefore ensure a balance between fee paying parents, many of whom make considerable personal sacrifices to fund their child's education and those benefiting from awards.
## **REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR**
## **Operational Performance of the School**
The school continues to achieve high educational standards, to provide a wide range of sporting and cultural activity and to fulfil a wider role in the community.
Page 4
**WELLESLEY HOUSE AND ST PETER'S COURT EDUCATIONAL TRUST LIMITED**
**GOVERNORS' REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **Pupil numbers**
Pupil numbers continue to be consistent although boarding numbers remain low. Day pupil numbers continue to grow with these increased by the merger with Haddon Dene School on 1 September 2022.
## **Academic Achievements**
The School's main achievements during the year have been:
The school achieved 100% success rate in their Common Entrance exams and headed to a range of top independent schools in the UK, including The King’s School, Canterbury, Sevenoaks, Harrow, St Leonard’s, Fife, St Lawrence College and St Edmund’s Canterbury.
Furthermore, as a result of the range of opportunities available at Wellesley and the skill and passion of the teaching and support staff, the pupils achieved scholarships to Sevenoaks (academic), King’s Canterbury (the Gower scholarship for sport, drama scholarship), St Lawrence College (sport and art) demonstrating the value added success of our pupils at our academically non-selective school.
100% of pupils in year 4 and above represented the school in some sort of competitive sporting fixture and a number of pupils entered national art competitions. A significant percentage of pupils took music lessons in a range of instruments, delivered by a talented and qualified peripatetic music department. The choir performed in the local community and a number of Year 7 pupils had their own poetry published in a national publication called “Empowered 2022, the Freedom of Words”. Our school community supported a number of local and national charities, including the poppy appeal at Remembrance, SuperDaisy (supporting children’s cancer treatment) and a local food bank in Margate as part of our Harvest Festival.
In the Michaelmas term of 2021, it was agreed that Wellesley House would merge with Haddon Dene, another local prep school in Broadstairs and become part of the Alpha Schools group - operating under new governance. Throughout the academic year, the schools began the transition process of the schools coming together on the existing Wellesley campus. Pupils and staff from both schools enjoyed transition days and shared educational experiences together and parents were invited to a range of coffee mornings and planned tours of the school site. The new school “Wellesley Haddon Dene” would operate as one under the umbrella of Alpha Schools in September 2022.
## **Provision of Education**
The School prides itself in languages (and in particular classics), art, music and sciences which are of a higher standard than State Schools, benefiting pupils when they move to higher education.
## **Public Benefit**
The Governors have given careful consideration to the Charity Commission's general guidance on Public Benefit and propose to continue, as they have in the past, to award bursaries to pupils who could not otherwise afford an independent edcuation.
## **Estates**
The Governors have entered into an arrangment with a firm of professional surveyors whose remit as to evaluate the priority areas of the buildings and estate for investment by the tenant and to ensure that the spending commitment by Alpha Schools (Holdings) Limited is met over the period of the lease. Since the acquisition, the professional surveyors have agreed with the tenant a schedule of completed works that are considered to be appropriate investment that will enhance the condition of the buildings and improve the tenant's ability to recruit pupils, which is important to the charity. The tenent is committed to futher enhancement of the main buildings.
Page 5
**WELLESLEY HOUSE AND ST PETER'S COURT EDUCATIONAL TRUST LIMITED**
**GOVERNORS' REPORT**
**FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **FINANCIAL REVIEW AND RESULTS FOR THE YEAR**
## **Financial Review**
Total income for the year was £ 152,443 (2021: £1,879,940). Total expenditure in the year was £117,910 (2021: £2,772,054 which included an exceptional loss on disposal of the assets of the school in connection with the sale to Alpha Schools (Holdings) Limited of £227,477).
The overall net movement in funds is a profit of £34,533 (2021: deficit £892,114).
As at 30 September 2022 the Charity held unrestricted reserves of £4,762,481 (2021: £4,727,948).
## **Reserves Policy**
The Governors' reserve policy is to maintain a sufficent level of reserves to ensure that the Charity's continuing activities can be maintained. The Directors consider the current level of reserves held to be sufficient.
The reserves balances are reviewed each year to ensure they are sufficient to meet the operating costs for two months. The Governors believe the level of reserves is prudent and necessary. Should the reserves fall significantly below the target level, the Trust will aim to restore the reserves as soon as possible.
## **Principal Risks and Uncertainties**
The Board of Governors are repsonsible for the management of risks faced by Wellesley House & St Peter's Court Educational Trust Limited and puts in place measures for their mitigation as part of an annual process. Governors consider that failure by the tenant to perform their obligations under the APA and lease is the key uncertainty for the charity. Governors have confirmed that the tenant has purchased suitable insurance.
The charity has certain time limited obligations to the purchaser of the school operations under the terms of the APA and has a contingency plan in place to meet potential liabilities.
The Governors recognise that a point of contact is required at Wellesley where to day-to-day management is delegated and this represents a single point of failure risk. The governors will work with Alpha Schools to ensure suitable arrangements are in place quickly should the contact with the Headmaster be terminated.
## **Going Concern**
The charity reported a profit in the year of £34,533 (2021: deficit £892,114) and has net current liabilities on unrestricted funds of £10,153 (2021: net current liabilities on unrestricted funds of £1,456,810). The Governors believe that actions already taken and future actions planned safeguard the charity's financial viability and will prove successful.
The Governors have consolidated borrowing on more favourable terms and considers its relationship with the bank to be strong going forward. Future rental income will exceed the loan repayments, with rental income being received a quarter in advance from Alpha Schools (Holdings) Limited. Planning permission has been granted for an unutilised piece of land to the front of the School and the governors are in the process to selling to a local property developer.
Page 6
**WELLESLEY HOUSE AND ST PETER'S COURT EDUCATIONAL TRUST LIMITED**
## **GOVERNORS' REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2022**
Taking into account all aspects of the positon described above the Governors believe that the School has, and will have, adequate resources to continue in operation for the foreseeable future with the operations of the school under Alpha School (Holdings) Ltd management. For this reason, they continue to adopt the going concern basis of accounting in preparing the financial statements.
## **Looking Forward**
The Govenors anticipate that they will work to meet the charitiable objectives of the company in the same manner for the foreseeable future. The Governors will supervise the school's maintenance by maintaining contact with Alpha Schools (Holdings) Limited and by regularly visiting the school on agreed dates. Governors will consider applications for bursarial assistance on a case by case basis from persons associated with the charity having submitted a means tested application. The Governors' decision to provide bursarial support will follow an advertised policy.
## **Trustees' Responsibilities**
The Trustees (who are also Directors of the charity for the purposes of company law) are responsible for preparing the Trustee's Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitible company and the incoming resources and application of resources, including the income anf expenditure, of the charitiable company for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in Charities SORP (FRS 102);
- make judgements and 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;
- prepare the financial statements on the going concern basis unless it is inapproporiate to presume that the charity will continue in business.
The Trustees, who are the governors of the charity are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.
## **Small Companies Provision**
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 applicable to companies entitled to the small companies exemption.
This report was approved by order of the board.
B Parsons Secretary 12th June 2023
Page 7
## **WELLESLEY HOUSE AND ST PETER'S COURT EDUCATIONAL TRUST LIMITED**
## **INDEPENDENT EXAMINERS REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2022**
I report to the charity trustees on my examination of the accounts of the company for the year ended 30 September 2022, which are set out on pages 9 to 19.
## **Responsibilities and basis of report**
As the charity’s trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (the ‘2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
(1) accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
(2) the accounts do not accord with those accounting records; or
(3) the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination; or
(4) the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## **J A Griggs FCA**
## **Levicks Chartered Accountants & Business Advisers**
61 London Road Maidstone Kent ME16 8TX
16 June 2023
Page 8
## **WELLESLEY HOUSE AND ST PETER'S COURT EDUCATIONAL TRUST LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2022**
|**Notes**
**INCOME FROM**
**Donations and legacies**
Grants and donations receivable
**2**
**Charitable activities**
Rental income
**1**
Fees receivable
**1**
Registration fees and extra-curricular income
Grants and donations
**2**
**Investments**
**3a**
**Other income**
**3b**
**Total income**
**EXPENDITURE ON**
**Raising funds**
**4,7**
**Charitable activities**
Premises
**7**
Insurance
**7**
Loan interest
**4,7**
Loan arrangement fee
**7**
Bank charges
**7**
Audit & professional fees
**7**
Administration costs
**7**
General expenses
**7**
Depreciaton
**7,8**
Teaching costs
**7**
Welfare
**7**
Support costs
**7**
Exceptional loss on disposal of trade and assets
**7**
**Total expenditure**
**5,7**
**Net movement in funds**
Balances brought forward at 1 October 2021
Balances carried forward at 30 September 2022|**Unrestricted**
**Restricted**
**Total**
**Total**
**Year**
**13 month**
**Period**
**funds**
**funds**
**2022**
**2021**
**£**
**£**
**£**
**£**
**0**
**0**
**0**
60,965
**152,288**
**0 152,288**
0
**0**
**0**
**0** 1,482,609
**0**
**0**
**0** 138,726
**100**
**0**
**100**
71,347
**55**
**0 55**5,600
**0**
**0**
**0** 120,693|
|---|---|
||**152,443**
**0 152,443**1,879,940|
||**-**
**0**
**-**53,958
**9,016**
**0 9,016**251,091
**16,845**
**0 16,845**
-
**48,277**
**0 48,277**
-
**4,500**
**0 4,500**
-
**1,876**
**0 1,876**
-
**26,460**
**0 26,460**
-
**3,000**
**0 3,000**
-
**848**
**0 848**
-
**7,088**
**0 7,088**
-
**-**
**0**
**0** 1,214,885
**-**
**0**
**0** 266,957
**-**
**0**
**0** 757,686
**-**
**0**
**0** 227,477|
||**117,910**
**- 117,910**2,772,054|
|||
||**34,533**
**-**
**34,533**
(892,114)|
||**4,727,948**
**11,819**
**4,739,767**
5,631,881|
||**4,762,481**
**11,819**
**4,774,300**
4,739,767|
The statement of financial activities includes all gains and losses recognised in the year. The notes on pages 11 to 19 form part of these financial statements.
Page 9
## **WELLESLEY HOUSE AND ST PETER'S COURT EDUCATIONAL TRUST LIMITED**
## **BALANCE SHEET**
## **AS AT 30 SEPTEMBER 2022**
**----- Start of picture text -----**
13 month Period
Note 30 September 2022 30 September 2021
£ £ £ £
Fixed assets
Tangible assets 8 6,240,483 6,222,692
Current assets
Debtors : falling due within 10
one year 5,000 89,383
Debtors : falling due after 10
one year 13,500
Cash at bank and in hand 310,326 138,615
328,826 227,998
Creditors : amounts falling 11 (327,160) (1,672,989)
due within one year
Net current (liabilities)/ 1,666 (1,444,991)
assets
Total assets less current
liabililites 6,242,149 4,777,701
Creditors: amounts falling
due after one year
Bank loan 11 (1,467,849) (37,934)
Net assets 4,774,300 4,739,767
Total funds
Restricted 11,819 11,819
Unrestricted 4,762,481 4,727,948
12,13 4,774,300 4,739,767
**----- End of picture text -----**
The notes on pages 11 to 19 form part of these financial statements.
For the year ending 30 September 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. Directors' responsibilities:
- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
Approved by the Board on 10th June 2023
## **Philip Woodhouse**
## **Company number 859223**
Page 10
**WELLESLEY HOUSE AND ST PETERS COURT EDUCATIONAL TRUST LIMITED**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **_____________________________________________________________________________________________**
## **A Basis of accounting**
The accounts have been prepared in accordance with the Companies Act 2006 and the ‘Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)(Second Edition) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011. The financial statements are prepared on the historical cost basis.
The accounts are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.
The Charity constitutes a public benefit entity as defined by FRS 102.
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the School's financial statements.
These accounts cover a 12 month period to 30 September 2022. The decision was taken to extend the end of the reporting period with the date of sale of the school in 2021. The accounts for 2021 cover a 13 month period. The comparatives are therefore not directly comparable.
## **B Going Concern**
The School reported a net movement in funds of £34,533 and has net current liabilities on unrestricted funds of £10,153 as at 30 September 2022.
The Governors agreed in 2021 that in the best interests of the charity, that the school be sold to Alpha Schools (Holdings) Limited. This transaction completed on 30th September 2021. The land and buildings are retained by the charity and are leased for 30 years to Alpha Schools. Following the repayment of the creditor owing to Alpha Schools, the future rental income will be received quarterly in advance and will exceed quarterly loan repayments.
Taking into account all aspects of the position of the Charity, the Governors have a reasonable expectation that the Charity has and will have adequate resources to continue in operation for the foreseeable future. For this reason, they continue to adopt the going concern basis of accounting in preparing the financial statements.
## **C Income**
Rental income receivable and similar earned income are credited to the Statement of Financial Activities (SOFA) in the year for which they are due. Deferred income represents amounts received for future periods and is released to the SOFA in future periods when the service is provided.
Donations are accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the Trust is considered probable.
Gifts of assets and services are recognised at the time of receipt at their value to the charity when the benefit is reasonable, measurable and quantifiable.
## **D Expenditure**
Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities. Grants awarded are recognised when there is a legal or constructive obligation to pay for expenditure. All costs have been directly attributed to one of the functional categories of resources expended in the Statement of Financial Activities. The Trust is not registered for VAT and accordingly expenditure is shown gross of VAT.
Governance costs comprise the cost of running the Charity, including strategic planning for its future development, external audit, and all the costs of complying with constitutional and statutory requirements, such as the cost of Directors and committee meetings and preparing statutory accounts.
Page 11
**WELLESLEY HOUSE AND ST PETERS COURT EDUCATIONAL TRUST LIMITED**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **_____________________________________________________________________________________________**
## **E Tangible fixed assets**
Tangible fixed assets are stated at cost less depreciation. Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Freehold land Nil
Freehold buildings
over 50 years on cost
## **F Assets held for sale**
Any property that is actively marketed for sale is included in current assets. Assets are held at the best estimate of the sales price less costs to sell.
## **G 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.
## **H 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.
## **I Creditors**
Creditors are recognised where the Trust 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 are normally recognised at their settlement amount after allowing for any trade discounts due.
## **J Fund Accounting - unrestricted funds**
Funds held by the charity are either: Unrestricted general funds
These are funds which can be used in accordance with the charitable objects at the discretion of the Governors. Unrestricted designated funds
These are unrestricted general funds set aside by the Governors for a specific purpose.
## **K Fund Accounting - restricted funds**
Restricted funds arise when the donor specifies how their donation should be spent or by the terms of an appeal. Further detail can be seen in Note 12.
## **L Taxation**
The School is a registered charity and its income is not liable to taxation as it is applied to wholly charitable purposes.
## **M Financial instruments**
The Charity only has financial assets and financial liabilities of a 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. The Charity has selected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.
## **N Critical accounting judgements and key sources of estimation uncertainty**
The preparation of the financial statements in accordance with FRS 102 requires the trustees to make estimates and assumptions concerning the future. The estimates and assumptions that could have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include accruals, depreciation, freehold building residual values and revenue recognition. The accounting in these areas of the accounts requires management to use judgement.
In relation to accruals this is a best estimate of costs that will be incurred based on contractual requirements.
For depreciation these estimates are driven by the useful economic life of the associated assets.
Page 12
**WELLESLEY HOUSE AND ST PETERS COURT EDUCATIONAL TRUST LIMITED**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2022**
|**_________________________________________________________**
**1 Income receivable**
Fees receivable consist of:
Rental Income
Gross fees
Less: Bursaries
Add back: Bursaries paid for by specific funds
**2 Grants and donations**
Donations
Government grants - coronavirus job retention scheme
**3a Investment income**
Rents
Interest receivable
**3b Other income**
Insurance claim
Gain on disposal of property
**4 Cost of raising funds**
Marketing
Interest payable|**________________________**
**12 months**
**30 September**
**2022**
**£**
**152,288**
**0**
**0**
**152,288**
**-**
**152,288**
**2022**
**£**
**100**
**0**
**100**
**12 months**
**30 September**
**2022**
**£**
**0**
**55**
**55**
**2022**
**£**
**0**
**0**
**0**
**2022**
**£**
**0**
**48,277**
**48,277**|**____________**
**13 months**
**30 September**
**2021**
**£**
0
1,802,904
(363,698)
1,439,206
43,403
1,482,609
**2021**
**£**
60,965
71,347
132,312
**13 months**
**30 September**
**2021**
**£**
5,594
6
5,600
**2021**
**£**
100,000
20,693
120,693
**2021**
**£**
30,365
23,594
53,959|
|---|---|---|
Page 13
**WELLESLEY HOUSE AND ST PETERS COURT EDUCATIONAL TRUST LIMITED**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2022**
|**_________________________________________________________________________________**
**5 Total expenditure**
**2022**
**£**
Total expenditure includes:
Auditors' remuneration for audit services
**17,220**
Auditors' remuneration for other services
**1,200**
Independent examiners fees
**1,260**
Operating lease payments
**0**
Depreciation
**7,088**
**6 Employees**
**2022**
**£**
Staff costs during the year:
Wages and salaries
**0**
Social security costs
**0**
Other pension costs
**0**
**0**
The average number of employees in the year:
**Number**
Teaching staff
**0**
Non teaching staff
**0**
**0**
The number of staff whose emoluments plus taxable benefits exceeded £60,000 were as follows:
£80,000 - £90,000
**0**
**2022**
**£**
Pensions paid on behalf of this employee in the year totalled:
**0**
**2022**
**£**
Aggregate emoluments of key management
**0**
personnel|**____________**
**2021**
**£**
10,900
775
0
5,482
104,317
**2021**
**£**
1,388,432
118,217
205,525
1,712,174
**Number**
28
35
63
1
**2021**
**£**
20,984
**2021**
**£**
173,624|
|---|---|
No Director received any remuneration during the year (2021: nil). During the year £nil was reimbursed to Directors for expenses (2021: nil).
Page 14
**WELLESLEY HOUSE AND ST PETERS COURT EDUCATIONAL TRUST LIMITED**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **_____________________________________________________________________________________________**
|**Analysis of expenditure**
Raising funds
Teaching costs
Welfare
Premises
Support costs of schooling
Other costs
Exceptional costs on disposal|**12 months**
**13 months**
**30 September 30 September**
**Staff**
**Other**
**Total**
**Total**
**costs**
**costs**
**Depreciation**
**2022**
**2021**
**£**
**£**
**£**
**£**
**£**
**-**
**48,277**
**-**
**48,277**
53,958
**0**
**0**
**0**
**0**
1,214,884
**0**
**0**
**-**
**0**
265,957
**0**
**25,861**
**7,088**
**32,949**
251,091
**0**
**0**
**0**
**0**
757,685
**0**
**36,684**
**36,684**
0
**0**
**0**
227,477
**0**
**110,822**
**7,088**
**117,910**
2,771,052|
|---|---|
## **7 Analysis of expenditure**
## **7 Analysis of expenditure (2021)**
|Raising funds
Teaching costs
Welfare
Premises
Support costs of schooling
Exceptional costs of disposal|Staff
Other
Total
costs
costs
Depreciation
2021
£
£
£
£
-
53,958
-
53,958
1,092,276
119,753
2,855
1,214,884
198,604
67,353
-
265,957
100,061
70,172
80,857
251,091
259,289
477,790
20,605
757,685
227,477
227,477
1,650,230
1,016,503
104,317
2,771,052|
|---|---|
## **8 Tangible fixed assets**
|**Tangible fixed assets**
**Cost or valuation**
1 October 2021
Additions
**30 September 2022**
**Depreciation**
1 October 2021
Charge for the period
**30 September 2022**
**Net book value**
30 September 2022
30 September 2021|**Freehold**
**land &**
**buildings**
**£**
**6,514,544**
**24,879**
**6,539,423**
**291,852**
**7,088**
**298,940**
**6,240,483**
6,222,692|
|---|---|
Page 15
**WELLESLEY HOUSE AND ST PETERS COURT EDUCATIONAL TRUST LIMITED**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2022**
|**_________________________________________________________**
**9 Current asset investments**
Brought forward
Disposals
Carry forward
**10 Debtors**
Due within one year:
Trade debtors
Prepayments and accrued income
Loan arrangment fee
Falling due after one year:
Loan arrangment fee
**11 Creditors falling due within one year**
Amounts falling due within one year:
Amount owing to Alpha Schools
Fees received in advance
Bank loan
Other creditors and accruals
**Creditors falling due over one year**
Bank loans
Bank loans are analysed as follows:
Over five years
Within two to five years
Within one to two years
Within one year|**________________________**
**2022**
**£**
**0**
**0**
**0**
**2022**
**£**
**0**
**500**
**4,500**
**5,000**
**13,500**
**2022**
**£**
**178,724**
**-**
**44,997**
**103,439**
**327,160**
**2022**
**£**
**1,467,849**
**1,467,849**
**2022**
**£**
**1,289,953**
**131,576**
**46,320**
**44,997**
**1,512,846**|**____________**
**2021**
**£**
425,000
(425,000)
0
**2021**
**£**
88,888
495
0
89,383
**0**
**2021**
**£**
493,194
0
970,494
209,301
1,672,989
**2021**
**£**
37,934
37,934
**2021**
**£**
0
28,126
9,808
970,494
1,008,428|
|---|---|---|
The amount owing to Alpha Schools consists of the apportionment sale balance of £136,783 plus further post sale transactions.
Page 16
**WELLESLEY HOUSE AND ST PETERS COURT EDUCATIONAL TRUST LIMITED**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **_____________________________________________________________________________________________**
During 2021 the Charity refinanced with Handelsbanken PLC
The loan is fixed for 5 years at an interest rate of 3.67% per annum, comprising the core fixed rate of 1.37%. plus a margin at 2.3%.
The total outstanding at year end was £1,475,015 (2021: £425,682).
During 2020 the Charity secured further loan funding in the form of a Bounce Back Loan of £50,000. The fixed interest rate is 2.5% and the loan is repayable in instalments. The total outstanding at year end was £37,831 (2021: £47,500).
The loans are secured by fixed and floating charges over the freehold land and buildings and assets of the school.
## **12 Funds**
|Restricted
Bursary Appeal Fund
Unrestricted Funds
General
Total unrestricted funds
Total funds|**At**
**Income**
**Expenditure**
**At**
**1 October**
**30 September**
**2021**
**2022**
**£**
**£**
**£**
**£**
**11,819**
**-**
**11,819**
**11,819**
**-**
**0**
**11,819**
**4,727,948**
**152,443**
**(117,910)**
**4,762,481**
**4,727,948**
**152,443**
**(117,910)**
**4,762,481**
**4,739,767**
**152,443**
**(117,910)**
**4,774,300**|
|---|---|
Previous designations regarding bursaries and improvements to the buildings have been superceded following the transfer to Alpha Schools. Therefore all unrestricted reserves of the charity are held at the Trustees' discretion.
The Bursary Appeal Fund account is for funds received from past parents as donations so the charity can offer financial assistance with the award of a bursary.
|Restricted
Bursary Appeal Fund
Unrestricted Funds
General
Designated Funds
Bursary Appeal Fund
Swire
Bursary Fund -Swire
Foundation (Capital Fund)-Small assets
Total unrestricted funds
**Total funds**|**At**
**Income**
**Expenditure**
**Transfers/**
**At**
**1 September**
**Valuations**
**30 September**
**2020**
**2021**
**£**
**£**
**£**
**£**
**£**
11,819.00
43,403
(43,403)
-
11,819
11,819
43,403
(43,403)
-
11,819
5,498,060
1,834,871
(2,725,737)
120,754
4,727,948
9,203
1,666
-
(10,869)
0
57,826
-
(2,914)
(54,912)
0
54,973
-
-
(54,973)
0
0
0
0
0
0
5,620,062
1,836,537
(2,728,651)
0
4,727,948
5,631,881
1,879,940
(2,772,054)
0
4,739,767|
|---|---|
Page 17
**WELLESLEY HOUSE AND ST PETERS COURT EDUCATIONAL TRUST LIMITED**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2022**
**_____________________________________________________________________________________________**
## **13 Analysis of net assets between funds**
|Tangible fixed assets
Current (liabilities)/assets
Long term liabilities
**Analysis of net assets between funds (2021)**
Tangible fixed assets
Current (liabilities)/assets
Long term liabilities|**Unrestricted**
**Restricted**
**Total**
**Total**
**2022**
**2022**
**2022**
**2021**
**£**
**£**
**£**
**£**
**6,240,483**
**-**
**6,240,483**
6,222,692
**(10,153)**
**11,819**
**1,666**
(1,444,991)
**(1,467,849)**
**-**
**(1,467,849)**
(37,934)
**4,762,481**
**11,819**
**4,774,300**
4,739,767
Unrestricted
Restricted
Total
2021
2021
2021
£
£
£
6,222,692
-
6,222,692
(1,456,810)
11,819
(1,444,991)
(37,934)
-
(37,934)
4,727,948
11,819.00
4,739,767|
|---|---|
## **14 Related Parties**
There were no related party transactions in the year (2021: none) .
## **15 Investment in subsidiary**
The charity is the sole shareholder in Wellesley House School Enterprises Limited, a trading company incorporated in April 1994. The company has not traded to date and is a dormant company.
## **16 Reorganisation of the business**
On 30 September 2021 Wellesley House and St Peter Court completed on the sale of the assets of the business to Haddon Dene, a subsidiary of Alpha Schools (Holdings) Ltd. This was announced to the staff, parents, pupils and other stakeholders in October 2021. The transaction completed on 30 Septemer 2021. At that date the trade and assets were transferred in return for an annual lease premium. A number of properties, associated loans and cash balances have been retained and may be used to generate income in the future.
As at 30 September 2022 £178,724 (2021 £493,195) was owing to Alpha Schools.
Wellesley House and St Peter Court will continue to exist as a charitable company limited by guarantee.
Page 18
**WELLESLEY HOUSE AND ST PETERS COURT EDUCATIONAL TRUST LIMITED**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2022**
## **_____________________________________________________________________________________________**
|**17 Comparative information**
**INCOME FROM**
**Donations and legacies**
Grants and donations receivable
**Charitable Activities**
Fees receivable
Registration fees and extra-curricular
income
Government grants - coronavirus job
retention
**Investments**
**Other**
**Total income**
**EXPENDITURE ON**
**Raising funds**
**Charitable Activities**
**_Provision of education_**
Teaching costs
Welfare
Premises
Support costs of schooling
Exceptional loss on disposal of trade
and assets
**Total expenditure**
Net gains on investments
**Net income**
Gain on revaluation of assets
**Net movement in funds**
Funds brought forward at 1
September 2020
Funds carried forward at 30
September 2021|**Unrestricted**
**funds**
**£**
**17,562**
**1,482,609**
**138,726**
**71,347**
**5,600**
**120,693**
**1,836,537**
**53,958**
**1,214,885**
**223,554**
**251,091**
**757,686**
**227,477**
**2,728,651**
**-**
**(892,114)**
**-**
**(892,114)**
**5,620,062**
**4,727,948**|**Restricted**
**funds**
**£**
**43,403**
**-**
**-**
**-**
**-**
**-**
**43,403**
**-**
**-**
**43,403**
**-**
**-**
**43,403**
**-**
**-**
**-**
**-**
**11,819**
**11,819**|**Total**
**2021**
**£**
**60,965**
**1,482,609**
**138,726**
**71,347**
**5,600**
**120,693**
**1,879,940**
**53,958**
**1,214,885**
**266,957**
**251,091**
**757,686**
**227,477**
**2,772,054**
**-**
**(892,114)**
**-**
**(892,114)**
**5,631,881**
**4,739,767**|
|---|---|---|---|
Page 19