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2020-07-31-accounts

Registered Charity Number: 307923

SEVENOAKS SCHOOL FOUNDATION

TRUSTEES’ REPORT

AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

SEVENOAKS SCHOOL FOUNDATION

TRUSTEES, OFFICERS AND ADVISERS

TRUSTEES

Robert Sackville-West MA MSc (Chairman) Jin Yu Cheong MA (appointed 5 December 2019) Prof Kenneth Cheung MBBS MD FRCS FHKCOS FHKAM (Orth) (appointed 5 December 2019) Tat-Seng Chiam BA MA MBA (appointed 5 December 2019) Tim Child BA Dr Nikki Lee BA MBBS (appointed 5 December 2019) David McEuen Melissa Murdoch Julian Patrick (resigned 5 December 2019) Pratap Shirke MBA (appointed 5 December 2019) David Williams MA (resigned 2 July 2020) Derick Walker MA OFFICERS Clerk to the Foundation Gail Jones BA ACA Assistant Clerk Ian Pocock ACIS Executive Director of Advancement Michael Joyce B Ed Grad Dip Bus Director of Finance Phillip Watkins MBA FCCA REGISTERED ADDRESS Sevenoaks School Sevenoaks Kent TN13 1HU Telephone 01732 467704 Email gtj@sevenoaksschool.org ADVISERS Bankers National Westminster Bank plc 67 High Street Sevenoaks Kent TN13 1LA Solicitors Thomson Snell & Passmore 3 Lonsdale Gardens Tunbridge Wells Kent TN1 1NX Auditors Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW Insurance Brokers Aon Risk Services Ltd. Somerset House London Road Redhill Surrey RH1 1LU Chartered Surveyors Howard Sharp & Partners 79 Great Peter Street Westminster London SW1P 2EZ

Page 1

SEVENOAKS SCHOOL FOUNDATION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 JULY 2020

The Trustees of Sevenoaks School Foundation present their annual report for the year ended 31 July 2020, together with the audited accounts for the year. The accounts have been prepared in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities” revised 2015 (The Charities SORP), as well as with applicable accounting standards and statutory requirements.

REFERENCE AND ADMINISTRATIVE INFORMATION

A Scheme for Sevenoaks School Foundation (307923) was approved by the Charity Commission on 26 January 2004. It is a distinct charity from Sevenoaks School and has independent Trustees. The Trustees are listed on page one, as are particulars of the executive officers, registered address and the Charity’s professional advisers.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Foundation is governed by the Scheme of 26 January 2004.

Recruitment and Training of Trustees

Trustees are appointed by the Governors of Sevenoaks School, a Company Limited by Guarantee (4908949) and a registered charity (1101358). In making these appointments, account is taken of eligibility, personal competence, specialist skills and availability. Induction is conducted by the Clerk and Assistant Clerk to the Foundation and training on governance and other relevant matters is made available to the Trustees. The purpose of the training is to keep Trustees informed and updated on current issues in the sector and regulatory requirements. The Trustees are aware of the Charity Governance Code published in 2017 which sets out the principles and recommended practice for good governance within the sector. Sevenoaks School Foundation is reviewing its current governance arrangements against the principles within the code and will address any issues raised where required in 2020/21.

Organisational Management

The Trustees are responsible for the overall management and control of Sevenoaks School Foundation and meet on at least two occasions during the year. The Clerk to the Foundation, the Executive Director of Advancement and the Director of Development attend meetings of the Trustees, as do the Head of Sevenoaks School, the Assistant Clerk and the Director of Finance, and together this group are the key management personnel. When required, the Trustees set up Steering Groups to oversee major projects.

Remuneration policy is set by the Trustees with the objective of rewarding staff, including key management personnel, fairly and reasonably. The appropriateness and relevance of the remuneration policy is reviewed annually having taken account of comparative pay data.

Risk Management

A formal review of the charity’s risk management processes is undertaken on an annual basis with the aim of reviewing the major risks to the Foundation. The key controls used by the charity include: formal agendas and briefing papers for committee meetings; strategic and business planning; budgeting and management accounting; clear authorisation and approval levels; and vetting procedures as required by law for the protection of children. The Trustees have reviewed the principal areas of the Foundation’s operations and considered the major risks faced in each area. We believe the principal risks are a failure to raise sufficient funds to carry out the plans of the Foundation and potential cost overruns on capital projects. In the opinion of the Trustees, the Foundation has established robust financial controls and business planning systems which should allow risks to be mitigated to an acceptable level. In March 2020 the World Health Organisation declared Covid-19 a global pandemic. The impact of Covid-19 on the Foundation has been factored into the risk assessments and mitigating actions have been taken. The principal mitigating factor was been a decision to delay the construction of the new girls boarding house to preserve cash until the future can be more clearly assessed.

Page 2

SEVENOAKS SCHOOL FOUNDATION REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 JULY 2020

OBJECTS, AIMS AND ACTIVITIES Objects

The objects of the charity are the advancement of education by the provision of a day and boarding school in or near Sevenoaks and by ancillary or incidental educational activities and other associated activities for the benefit of the community and, in selecting pupils to attend the School, preference shall be given to boys and girls who are or who have a parent or parents resident in the designated area. In this context the designated area is defined as Sevenoaks and the immediately surrounding area.

Aims and Intended Impact

The aim of the Foundation is to provide support to the Governors of Sevenoaks School in providing a first-class education. The Trustees do so by leasing the buildings in which the School carries out its activities and by overseeing the work of the Foundation Office in raising the funds necessary to support both new building projects and a widening of access by the award of bursaries. By looking to the future, we believe that Sevenoaks will maintain its position as a leading independent school with a worldwide reputation.

Objectives for the Year

Our objectives during the reporting year were:

Strategies to Achieve the Year’s Objectives

In taking forward our objectives for the year, we have adopted various strategies:

The appeal raised £60,292 in support of these priorities in June and July 2020.

Performance against Objectives

Page 3

SEVENOAKS SCHOOL FOUNDATION REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 JULY 2020

Grant-making Policy

Trustees implement the charity’s objects by raising funds from supporters and, where necessary, borrowing to support Sevenoaks School. The Foundation supports the School in three main ways; firstly, by leasing premises to the School for the provision of education, secondly by providing new facilities in line with the School’s masterplan, and when funds allow. Finally, and equally importantly, Trustees also provide funds to help widen access to Sevenoaks School. This may be in the form of bursaries or the provision of financial support for other school access and partnership programmes.

Page 4

SEVENOAKS SCHOOL FOUNDATION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 JULY 2020

REVIEW OF ACTIVITIES

Activities during the year have revolved around the objectives for the year and on which we have reported in detail above (Performance against Objectives). Whilst some activities have inevitably been affected by the Covid-19 pandemic, there have been a number of significant achievements this year. These include, but are not limited to,

Public Benefit

The Foundation seeks to provide benefit to the public and has paid due regard to the Charity Commission guidance in deciding what activities the charity should undertake. The facilities that the Foundation owns and leases to Sevenoaks School are used to educate the pupils of Sevenoaks School. They are also used to support partnership programmes and outreach activities aimed at the pupils of local maintained schools, as well as the local community more generally. We support and encourage Sevenoaks School to use the facilities for these purposes.

Trustees are committed to widening access to a Sevenoaks School education through the provision of full bursaries for academically talented students from low income families. Significant progress has been made in raising funds to widen access through bursaries. The future aim of Trustees is to match the free places funded directly by Sevenoaks School each year, doubling bursary provision. Funds raised for bursaries during the Campaign for Sevenoaks School now total of £3,126,203. The Trustees also continue to provide grants that allow bursary holders at Sevenoaks School to participate in co-curricular trips and activities, which they would otherwise be unable to afford. During the year the Foundation contributed £424,497 towards the fees of seventeen pupils, fourteen of which were for full day fees. Additionally, £46,517 was contributed to ‘extras’, both for these pupils and for holders of bursaries awarded directly by Sevenoaks School. These awards range from termly allowances that permit those students from low income families to participate in the full scope of co-curricular activities offered by the School. Additionally, funding is provided to cover the cost of GCSE exam charges as well trips related to university and course selection

FINANCIAL REVIEW AND RESULTS FOR THE YEAR Results

Income received during the year was £5,481,896. Of this, £2,075,784 (38%) came from donations, £3,228,214 (59%) from rental income and £177,898 (3%) from investment income, bank interest and other income. Total resources expended, including depreciation, amounted to £3,524,233. After taking into account the unrealised loss on investments (£135,319), the net movement in funds for the financial year was £1,822,344 (2019: £1,970,335).

Investment Powers, Policy and Performance

The Clerk and the Director of Finance are empowered by Trustees to deposit short term monies with institutions holding the highest short-term ratings or in pooled funds for charities, not exceeding £1.5m with any one bank, building society or investment house. The Foundation’s priority is to use the funds available to support bursaries and other access programmes as well as new building projects. Accordingly, the Foundation has limited funds to invest which it manages in-house with a view to providing a reasonable income stream, albeit this has proved difficult in a low interest rate environment.

Reserves Level and Policy

At the Balance Sheet date, the Foundation held funds of £40,759,530, of which £33,523,854 were unrestricted funds. If the value of fixed assets, including work in progress, less outstanding loans is taken from this figure, there are free reserves of £1,698,907, and it is the policy of the Foundation Trustees to apply these funds for the development of Sevenoaks School. Despite the COVID-19 pandemic, the Trustees consider the level of reserves to be appropriate. The Trustees will continue to keep the level of reserves under review.

Going Concern

The Trustees have reviewed the impact of Covid-19 on the Foundation’s operations and finances. Taking into consideration the projected cash flows and the funding facilities available to the Foundation, the Trustees have a reasonable expectation that the Foundation has adequate resources to continue its activities for the foreseeable future and consider that there are no material uncertainties over the Foundation’s financial viability. Accordingly, Trustees continue to adopt the going concern basis in preparing the financial statements.

Page 5

SEVENOAKS SCHOOL FOUNDATION REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 JULY 2020

FUTURE PLANS

The Trustees have set the following objectives for the financial year 2020/21:

Work on the above objectives may be subject to review depending on urgent operational priorities resulting from the Covid-19 outbreak.

FUNDRAISING RESPONSIBILITIES

The Sevenoaks School Foundation Trustees are aware of their responsibilities and obligations as outlined in Charity fundraising: a guide to trustee duties (CC20). Sevenoaks School Foundation is registered with the Fundraising Regulator (U.K.), the independent regulator of charitable fundraising. Being registered with the Fundraising Regulator means the charity is committed to its Fundraising Promise which outlines the charity’s commitment to donors and the public. The standards for fundraising are set out by the Fundraising Regulator (U.K.) Code of Fundraising Practice. As members of the Institute of Fundraising (U.K), the Institute of Development Professionals in Education and the Council for Advancement and Support of Education the Sevenoaks School Foundation subscribes to their respective guidance on all matters relating to ethical fundraising and in particular Fundraising Regulator (U.K.) Code of Fundraising Practice, including consideration of vulnerable individuals. The Sevenoaks School Foundation has also established its own Sevenoaks School Foundation Gift Acceptance Policy to guide and oversee staff and volunteers.

The Foundation has not, to-date, had any occasion where it has knowingly failed to comply with the Fundraising Regulator (U.K.) Code of Fundraising Practice or the Sevenoaks School Foundation Gift Acceptance Policy. Neither the charity, nor any person acting on its behalf for the purposes of fundraising, have received any complaints about fundraising activity.

The Clerk to Trustees and Director of Finance closely monitor the fundraising activities of the Sevenoaks School Foundation Office.

Page 6

SEVENOAKS SCHOOL FOUNDATION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 JULY 2020

ACCOUNTING AND REPORTING RESPONSIBILITIES

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.

Charity law requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law.

Under charity law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of its net incoming resources for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Trustees on 6 May 2021 and signed on their behalf by

Robert Sackville-West Chairman

Page 7

Independent Auditor’s Report to the Trustees of Sevenoaks School Foundation

Opinion

We have audited the financial statements of Sevenoaks School Foundation for the year ended 31 July 2020 which comprise The Statement of Financial Activities, The Balance Sheet, The Cash Flow Statements and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Page 8

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 7, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the 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 but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Crowe U.K. LLP

Statutory Auditor London

28 May 2021

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Page 9

SEVENOAKS SCHOOL FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 JULY 2020

Notes
Income from:
Donations and legacies
1
Donations
Alumni activities
Charitable activities
Rental income
Investments
Investment income
Bank and other interest
Other
Other income
Total incoming resources
Expenditure on:
Raising funds
4
Charitable Activities:
Education and grant making
4
Total expenditure
4
Net incoming funds from operations
before investment gains
Net (losses)/gains on investments
Transfers between funds
Net movement in funds
Funds brought forward at 1 August 2019
Funds carried forward at 31 July 2020
Unrestricted
Funds
£
52,137
65,363
3,228,214
13,546
4
44,440
3,403,704
865,363
2,175,164
3,040,527
363,177
-
89,046
452,223
33,071,631
33,523,854
Restricted
Funds
£
1,988,647
-
-
54,545
-
-
2,043,192
-
483,706
483,706
1,559,486
(6,182)
(89,046)
1,464,258
4,075,311
5,539,569
Endowed
Funds
£
35,000
-
-
-
-
-
35,000
-
-
-
35,000
(129,137)
-
(94,137)
1,790,244
1,696,107
2020
£
2,075,784
65,363
3,228,214
68,091
4
44,440
5,481,896
865,363
2,658,870
3,524,233
1,957,663
(135,319)
-
1,822,344
38,937,186
40,759,530
2019
£
2,382,814
75,845
2,771,040
68,736
11,964
15,830
5,326,229
866,052
2,582,092
3,448,144
1,878,085
92,250
-
1,970,335
36,966,851
38,937,186

The information on pages 13 to 23 form part of these financial statements.

Page 10

SEVENOAKS SCHOOL FOUNDATION

BALANCE SHEET

AS AT 31 JULY 2020

Notes
FIXED ASSETS:
Tangible fixed assets
5
Investments
6
CURRENT ASSETS:
Debtors
7
Bank and short term deposits
LIABILITIES:
Creditors: Amounts falling due within one year
8
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
Creditors: Amounts falling due after more than one year
Loans
8
TOTAL NET ASSETS
9
FUNDS
ENDOWED FUNDS
12
RESTRICTED FUNDS
13
UNRESTRICTED FUNDS
2020
£
57,429,665
1,706,191
59,135,856
103,772
8,155,892
8,259,664
(1,543,772)
6,715,892
65,851,748
(25,092,218)
40,759,530
1,696,107
5,539,569
33,523,854
40,759,530
2019
£
57,626,660
1,841,509
59,468,169
1,606,615
5,036,009
6,642,624
(1,621,523)
5,021,101
64,489,270
(25,552,084)
38,937,186
1,790,244
4,075,311
33,071,631
38,937,186

Approved by the Trustees on 6 May 2021 and signed on their behalf by

Robert Sackville-West Chairman

The information on pages 13 to 23 form part of these financial statements.

Page 11

SEVENOAKS SCHOOL FOUNDATION

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 JULY 2020

Reconciliation of net income to net cash flow from operating activities
Net incoming funds
Depreciation charges
Decrease/(Increase) in debtors
(Decrease) in creditors
Net cash provided by operating activities
CASH FLOW STATEMENT
Cash flows from operating activities
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Loan repayments
Net cash used in financing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
Reconciliation of net cash flow to movement on net funds
Net funds at 1 August 2019
Increase/(Decrease) in cash
Decrease in borrowing
Net funds at 31 July 2020
Net debt
Bank and short term deposits
Bank Loan due within one year
Bank Loan due after more than one year
Net funds at 31 July 2020
2020
£
1,957,663
1,392,239
1,502,844
(25,119)
4,827,627
4,827,627
(1,195,244)
2019
£
1,878,085
1,184,731
(663,488)
(53,635)
2,345,693
2,345,693
(9,760,264)
(1,195,244)
(512,500)
(512,500)
(3,119,883)
5,036,009
8,155,892
(21,028,575)
3,119,883
459,866
(17,448,826)
8,155,892
(512,500)
(25,092,218)
(17,448,826)
(9,760,264)
(512,500)
(512,500)
(7,927,071)
12,963,080
5,036,009
(13,614,004)
(7,927,071)
512,500
(21,028,575)
5,036,009
(512,500)
(25,552,084)
(21,028,575)

The information on pages 13 to 23 form part of these financial statements.

Page 12

SEVENOAKS SCHOOL FOUNDATION

STATEMENT OF ACCOUNTING POLICIES (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2020

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - effective 1 January 2015.

The functional currency of the Foundation is considered to be GBP because that is the currency of the primary economic environment in which the Foundation operates.

The accounts are drawn up on the historical cost basis of accounting, as modified by the revaluation of investments.

The accounts present the statement of financial activities (SOFA), the balance sheet and the cash flow statement for the charity.

The Foundation is a Public Benefit Entity registered as a charity in England and Wales. It was registered as a charity on 26 January 2004 (charity number: 307923). On 11 October 2017 an incorporated charity, The Friends of Sevenoaks School (Hong Kong) Limited, was set up. This is a subsidiary company of Sevenoaks School Foundation, but has not been consolidated in these accounts as it is in a set up phase and the income is not yet material.

The financial statements of the Foundation are prepared in accordance with the (Accounts and Reports) Regulations 2005 and the Statement of Recommended Practice "Accounting and Reporting by Charities" issued in 2005 and with applicable accounting standards. They are drawn up on the historical cost accounting basis except that investments held as fixed assets are carried at market value.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the previous Statement of Recommended Practice: Accounting and Reporting by Charities which was effective from 1 April 2005 but which has since been withdrawn.

The Trustees have reviewed the impact of Covid-19 on the Foundation’s operations and finances. Taking into consideration the projected cash flows and funding facilities available to the Foundation, the Trustees have a reasonable expectation that the Foundation has adequate resources to continue its activities for the foreseeable future and consider that there are no material uncertainties over the Foundation’s financial viability. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the accounting policies, Trustees are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods.

In the view of the trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the School’s financial statements.

Rental and other income

Charges for services and use of premises are accounted for in the period in which the service is provided.

Donations

Donations received for the general purposes of the Foundation are credited to unrestricted funds. Donations subject to specific wishes of the donors are carried to the relevant restricted fund, or to endowed funds where the amount is required to be held as capital.

Expenditure

Expenditure is allocated to expense headings either on a direct cost basis or apportioned according to time spent. The irrecoverable element of VAT is included with the item of expense to which it relates.

Categories of expenditure included under the heading Education and grant making in the Statement of Financial Activities comprise the following:

Page 13

SEVENOAKS SCHOOL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

Premises

Premises costs associated with buildings owned by the Foundation and which are leased to Sevenoaks School. The costs comprise depreciation, insurance and rent. Repairs and maintenance costs are carried by Sevenoaks School under the terms of the lease agreement.

Support costs

Costs incurred in supporting the running of the activities of the Foundation and not categorised elsewhere under charitable expenditure. Included in this category are governance costs, comprising the costs of complying with constitutional and statutory requirements, and finance costs relating to interest on bank loans to finance construction.

Fundraising Costs

Costs of the Foundation Office relating to fundraising: although the costs of fundraising are set against unrestricted funds, these resources are also employed in raising restricted funds.

Operating leases

Rentals payable are charged on a time basis over the term of the lease.

Pension schemes

For employees who joined the Foundation before March 2010, the Foundation contributed to the Local Government Pensions Scheme, which is a defined benefit scheme, under the administration of Sevenoaks School. The Trustees are satisfied that any asset or liability relating to the scheme would not be material to the Foundation’s Financial Statements.

With effect from 1 April 2010, new employees are only permitted to join a defined contribution Group Pension Plan. At the end of July 2016 there were 5 members of the Group Pension Plan.

Fixed assets

Capitalisation

Assets are capitalised only when their cost exceeds £5,000. Any purchases under this value are expensed immediately through the Statement of Financial Activities.

Depreciation

Freehold land and building work in progress are not depreciated. Depreciation of other assets is provided at rates to write off the excess of cost over estimated residual amount over their estimated useful lives as follows:

Years Buildings 50 Improvements and extensions 10

Financial Instruments

Financial instruments are initially recognised at transaction value and subsequently measured at amortised cost with the exception of investments which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access and term deposit bank accounts. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions.

Investments

Listed investments are valued at their market values as at the balance sheet date. Unrealised gains and losses arising on the revaluation of investments are credited or charged to the Statement of Financial Activities and are allocated to the appropriate Fund according to the “ownership” of the underlying assets.

Page 14

SEVENOAKS SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

1. DONATIONS

2020
£
General Fundraising
52,137
Endowed Fund Donations
Foundation Capital
35,000
Restricted Fund donations:
Bursary Fund
283,648
Bursary Fund (COVID-19 Appeal)
60,292
Science Centre
1,129,397
Institute of Teaching & Learning
1,000
Centre for Innovation
50
Institute of Higher Education and Professional Insight
4,000
Outreach
-
Kent Academies Network
-
Campaign for Sevenoaks School
510,260
1,988,647
Total Donations
2,075,784
2.
EXPENDITURE
Resources expended include:
2020
£
Auditors' remuneration for audit
11,140
3. STAFF COSTS AND RELATED PARTY TRANSACTIONS
The aggregate payroll costs for the year were as follows:
2020
£
Wages and salaries
416,658
Social security costs
45,964
Pension contributions
26,526
489,148
The average number of full and part-time employees in the period was 8 (2019: 6).
Aggregate employee-benefits of key management personnel
223,826
2019
£
40,041
50
351,348
-
1,855,570
-
-
-
-
52,384
83,421
2,342,723
2,382,814
2019
£
6,900
2019
£
330,982
34,490
24,128
389,600
171,292

Page 15

SEVENOAKS SCHOOL FOUNDATION SCHEDULE OF INVESTMENTS AND FUNDS

FOR THE YEAR ENDED 31 JULY 2020

The number of higher paid employees was:

2020 2019
No. No.
£120,000 - £130,000 1 -
£130,000 - £140,000 - 1

Pension contributions of £26,525 ( 2019: £24,128 ) relate to contributions to a defined contribution scheme.

The Trustees received no remuneration in respect of the current or preceding year. Trustee expenses of £6,181 ( 2019: Nil ) were incurred by 3 Trustees in the current year ( 2019: Nil ).

4. ANALYSIS OF TOTAL RESOURCES EXPENDED

2020
Education and grant making:
Premises
Support costs
Grants, awards and prizes
Cost of generating funds:
Fundraising costs
2019
Education and grant making:
Premises
Support costs
Grants, awards and prizes
Cost of generating funds:
Fundraising costs
Staff costs
£
-
-
-
-
489,349
489,349
Staff costs
£
-
-
-
-
416,598
416,598
Other
£
22,424
760,501
483,706
1,266,631
376,014
1,642,645
Other
£
20,656
701,278
675,427
1,397,361
449,454
1,846,815
Depreciation
£
1,392,239
-
-
1,392,239
-
1,392,239
Depreciation
£
1,184,731
-
-
1,184,731
-
1,184,731
Total
£
1,414,663
760,501
483,706
2,658,870
865,363
3,524,233
Total
£
1,205,387
701,278
675,427
2,582,092
866,052
3,448,144

Page 16

SEVENOAKS SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

5. TANGIBLE FIXED ASSETS

Cost
1 August 2019
Additions
Disposals
As at 31 July 2020
Depreciation
As at 1 August 2019
Charge for year
Disposals
As at 31 July 2020
Net book value
31 July 2020
31 July 2019
6.
INVESTMENTS
Market value at 1 August 2019
Revaluations
Market value at 31 July 2020
Investments comprise:
Listed Investments
Freehold
Fixtures and
Property
Improvements
£
£
69,588,943
4,060,642
1,195,244
-
-
-
70,784,187
4,060,642
11,962,283
4,060,642
1,392,239
-
-
-
13,354,522
4,060,642
57,429,665
-
57,626,660
-
Restricted
Endowed
£
£
55,028
1,786,481
(6,181)
(129,137)
48,847
1,657,344
Restricted
Endowed
£
£
48,847
1,657,344
Total
£
73,649,585
1,195,244
-
74,844,829
16,022,925
1,392,239
-
17,415,164
57,429,665
57,626,660
Total
£
1,841,509
135,318
1,706,191
Total
£
1,706,191

Included in freehold property is £0.8m ( 2019: £10.0m ) of assets which were under construction at 31 July 2020 and which have not been depreciated

At the balance sheet date the Foundation had no contracted commitments in respect of the construction of fixed assets ( 2019: Nil )

Page 17

SEVENOAKS SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

7. DEBTORS

Sundry debtors
Prepayments and accrued income
2020
£
18,415
85,357
103,772
2019
£
381,610
1,225,005
1,606,615
8.
CREDITORS:due within one year
Other creditors and accruals
Loans
CREDITORS:due after more than one year
Loans
Private placement
1-2 Years
2-5 Years
After More Than 5 Years
2020
£
1,031,272
512,500
1,543,772
2020
£
5,092,218
20,000,000
25,092,218
512,500
1,537,500
23,042,218
2019
£
1,109,023
512,500
1,621,523
2019
£
5,552,084
20,000,000
25,552,084
512,500
1,537,500
23,502,084

The loan is repayable over a period of 20 years from June 2011. The loan is secured by a charge over certain freehold properties of the Foundation.

The private placement is of 3.18% senior notes due 31 August 2041.

9. ALLOCATION OF THE CHARITY NET ASSETS

The net assets are held for the various funds as follows:

Endowment funds
Restricted funds
Unrestricted funds
Loans
Fixed
Assets
£
-
-
51,824,947
51,824,947
5,604,718
57,429,665
Investments
& Deposits
£
1,657,344
48,847
-
1,706,191
-
1,706,191
Net Current
Assets
£
38,763
5,490,722
1,698,907
7,228,392
(512,500)
6,715,892
Long Term
Liabilities
£
-
-
(20,000,000)
(20,000,000)
(5,092,218)
(25,092,218)
Total
£
1,696,107
5,539,569
33,523,854
40,759,530
-
40,759,530

Page 18

SEVENOAKS SCHOOL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

Comparative Allocation of the Charity Net Assets

Endowment funds
Restricted funds
Unrestricted funds
Loans
Fixed
Assets
£
-
-
51,562,076
51,562,076
6,064,584
57,626,660
Investments
& Deposits
£
1,786,481
55,028
-
1,841,509
-
1,841,509
Net Current
Assets
£
3,763
4,020,283
1,509,555
Long Term
Liabilities
£
-
-
(20,000,000)
(20,000,000)
(5,552,084)
(25,552,084)
Total
£
1,790,244
4,075,311
33,071,631
5,533,601
(512,500)
38,937,186
-
5,021,101 38,937,186

10. FINANCIAL INSTRUMENTS

Financial assets measured at fair value
LEASES
Leasehold property leases which expire:
Payable within one year
Payable in the second to fifth year inclusive
Payable after five years
Freehold property leases which expire:
Receivable within one year
Receivable in the second to fifth year inclusive
Receivable after five years
2020
£’000
22,388
89,552
223,880





2020
2019
£’000
£’000
1,706,191
1,841,509
2019
£’000
22,388
89,552
246,268
358,208
3,228,215
13,018,328
18,310,703
34,557,246
335,820
3,254,582
13,018,328
15,056,121
31,329,031

11. LEASES

Page 19

SEVENOAKS SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

12. ENDOWED FUNDS

These funds are permanent

Foundation Capital
Bursary Fund
Hands Bursary
McEuen Scholarship
Centre for Innovation
Balance
31 July
2019
£
444,595
1,913
894,722
294,096
154,918
1,790,244
Incoming
Resources
£
-
-
-
35,000
-
35,000
Resources
Expended
£
-
-
-
-
-
-
Transfers/
Investment
Gains/(Losses)
£
1,167
-
(66,491)
(64,221)
408
(129,137)
Balance
31 July
2020
£
445,762
1,913
828,231
264,875
155,326
1,696,107

The Foundation Capital represented the original endowment. Since 2014 one of the several aims of the current campaign is to raise further funds for the permanent endowment in order to help secure the financial independence of Sevenoaks School.

Comparative Endowed Funds

omparative Endowed Funds
Foundation Capital
Bursary Fund
Hands Bursary
McEuen Scholarship
Centre for Innovation
Balance
31 July
2018
£
405,700
1,913
850,826
300,960
141,326
1,700,725
Incoming
Resources
£
50
-
-
-
-
50
Resources
Expended
£
-
-
-
-
-
-
Transfers/
Investment
Gains/(Losses)
£
38,845
-
43,896
(6,864)
13,592
89,469
Balance
31 July
2019
£
444,595
1,913
894,722
294,096
154,918
1,790,244

Page 20

SEVENOAKS SCHOOL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

13. RESTRICTED FUNDS

RESTRICTED FUNDS
Bursary Fund
Bursaries (COVID-19 Appeal)
Hands Bursary Fund
McEuen Scholarship Fund
Beardmore Bursary Fund
Centre for Innovation
Institute of Higher Education and
Professional Insight
STSF Centre Fund
Boarding House Fund
Co-curricular Gift Fund
Scholarships Fund
Music at Sevenoaks Legacy
Outreach
Making It Exhibition
Masterplan Building Fund
Campaign for Sevenoaks School
Institute of Teaching and Learning
Kent Academies Network
Balance
31 July
2019
£
1,611,740
-
71,447
51,538
421,350
33,410
-
1,517,308
14,988
2,050
100
6,056
8,576
15,000
125
196,944
92,984
31,695
4,075,311
Incoming
Resources
£
283,648
60,292
33,994
15,813
0
4,789
4,000
1,129,397
-
-
-
-
-
-
-
510,260
1,000
-
2,043,193
Resources
Transfers/
Expended
Investment
Gains/(Losses)
£
£
(407,812)
(1,418)
-
-
(24,291)
38
(12,477)
84
(24,291)
-
-
-
-
-
89,046
(93,932)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(93,036)
-
(10,845)
-
(483,706)
(95,228)
Balance
31 July
2020
£
1,486,158
60,292
81,188
54,958
397,059
38,199
4,000
2,641,819
14,988
2,050
100
6,056
8,576
15,000
125
707,204
948
20,850
5,539,569

All funds represent monies given for the specific purposes, as described. The Bursary Fund provides bursaries for students at Sevenoaks School.

Page 21

SEVENOAKS SCHOOL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

Comparative Restricted Funds

parative Restricted Funds
Bursary Fund
Hands Bursary Fund
McEuen Scholarship Fund
Beardmore Bursary Fund
Centre for Innovation
Sports Centre Fund
Performing Arts Centre Fund
STSF Centre Fund
School “Flat” Project Fund
Boarding House Fund
Co-curricular Gift Fund
Scholarships Fund
Music at Sevenoaks Legacy
Outreach
Making It Exhibition
Masterplan Building Fund
Campaign for Sevenoaks School
Institute of Teaching and Learning
Kent Academies Network
Balance
31 July
2018
£
1,573,223
59,711
44,748
447,705
28,763
28,551
220
5,942,508
2,500
14,988
2,050
100
6,056
58,576
15,000
125
113,523
172,276
-
8,507,623
Incoming
Resources
£
351,348
33,831
15,978
-
4,647
-
-
1,856,570
-
-
-
-
-
-
-
-
83,421
-
52,384
2,398,179
Resources
Transfers/
Expended
Investment
Gains/(Losses)
£
£
(312,546)
(285)
(23,355)
1,260
(11,997)
2,809
(23,355)
-
-
-
-
(28,551)
-
(220)
(154,193)
(6,127,577)
-
(2,500)
-
-
-
-
-
-
-
-
-
(50,000)
-
-
-
-
-
-
(79,292)
-
(70,689)
50,000
(675,427)
(6,155,064)
Balance
31 July
2019
£
1,611,740
71,447
51,538
421,350
33,410
-
-
1,517,308
-
14,988
2,050
100
6,056
8,576
15,000
125
196,944
92,984
31,695
4,075,311

Page 22

SEVENOAKS SCHOOL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

14. STATEMENT OF FINANCIAL ACTIVITIES – COMPARATIVE FIGURES BY FUND-TYPE

Income from:
Donations and legacies
Donations
Alumni activities
Charitable activities
Rental income
Investments
Investment income
Bank and other interest
Other
Other income
Total incoming resources
Expenditure on:
Raising funds
Charitable Activities:
Education and grant making
Total expenditure
Net incoming funds from operations
before investment gains
Net gains on investments
Transfers between funds
Net movement in funds
Funds brought forward at 1 August 2018
Funds carried forward at 31 July 2019
Unrestricted
Funds
£
40,061
75,845
2,771,040
13,280
11,964
15,830
2,928,000
866,052
1,906,665
2,772,717
155,283
-
6,157,845
6,313,128
26,758,503
33,071,631
Restricted
Funds
£
2,342,723
-
-
55,456
-
-
2,398,179
-
675,427
675,427
1,722,752
2,781
(6,147,845)
(4,432,312)
8,507,623
4,075,311
Endowed
Funds
£
50
-
-
-
-
-
50
-
-
-
50
89,469
-
89,519
1,700,725
1,790,244
Total
Funds
£
2,382,814
75,845
2,771,040
68,736
11,964
15,830
5,326,229
866,052
2,582,092
3,448,144
1,878,085
92,250
-
1,970,335
36,966,851
38,937,186

15. RELATED PARTY TRANSACTIONS

During the period since incorporation Sevenoaks School Foundation has made a loan of £4,688.40 to The Friends of Sevenoaks School (Hong Kong) Limited. This balance remained outstanding at 31 July 2020 but was repaid in September 2020. Sevenoaks School Foundation has received £630,603 in donations from The Friends of Sevenoaks School (Hong Kong) Limited during the year ended 31 July 2020.

Sevenoaks School Foundation Trustees donated £39,700 to Sevenoaks School Foundation during the year ended 31 July 2020 ( 2019: £7,500 ).

Page 23