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2024-07-31-accounts

Registered Charity Number: 307923

TRUSTEES’ REPORT

AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

SEVENOAKS SCHOOL FOUNDATION TRUSTEES, OFFICERS AND ADVISERS

TRUSTEES

Derick Walker (Chair) Bukunola Alakija Marco Alvera Jin Yu Cheong Kenneth Cheung Tat-Seng Chiam Tim Child Nikki Lee David McEuen Brian Ong Pratap Shirke

OFFICERS

Clerk to the Foundation Dr Brigid McAhron MA MPhil PhD (name.change.from.McClure?.with.effect.from.7❷[th] .May.8689) Deputy Clerk Emma El-Alami LLB (hons) DipLP NP Executive Director of Advancement Michael Joyce B Ed Grad Dip Bus Director of Finance Lynne Wrigley FCCA REGISTERED ADDRESS Sevenoaks School Sevenoaks Kent TN13 1HU Telephone 01732 455133 Email clerk@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 Auditor 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

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SEVENOAKS SCHOOL FOUNDATION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 JULY 2024

The Trustees of Sevenoaks School Foundation present their annual report for the year ended 31 July 2024, 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 Deputy 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 (and subsequent update) which sets out the principles and recommended practice for good governance within the sector. Sevenoaks School Foundation keeps its governance arrangements under review with reference to the principles within the code.

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 and the Executive Director of Advancement attend meetings of the Trustees, as do the Headmaster of Sevenoaks School, the Director of Advancement, the Deputy 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

The Trustees manage and review risk through the Risk Framework, designed to give the Trustees greater visibility of key risks and organised in a format to bring improved clarity and support meaningful discussion of risk. Under the Framework risks are organised under the headings of operational risks, business model risks and external risks, all of which inform the assessment of three top level strategic risks. A summary report is considered by the Trustees at each Trustee meeting, with the full Risk Framework tabled annually for review.

Strategic risks

The three top level strategic risks are: failure in overall business model; ineffective investment; and failure to develop or maintain the School campus. At the end of 2023/24, the key risks facing the Foundation relate to staffing: recognising the difficulty in recruiting within the specialism of advancement and development; and therefore, ensuring there is sufficient resilience in the Foundation team. The changes in the independent education sector, specifically in relation to the imposition of VAT on School fees will bring additional financial pressure to families at Sevenoaks School and Trustees identify that this may be an area the Foundation will be required to support.

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SEVENOAKS SCHOOL FOUNDATION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 JULY 2024

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 free and assisted places. 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

The Trustee’s objectives during the reporting year were:

  1. To complete the New Girl’s Boarding House to the desired standard and revised timeline and achieve a successful handover.

  2. To progress plans for the renovation of Girls International House with completion in 2027 to coincide with 50th anniversary.

  3. To complete the Renew Phase of the Campus Development Plan and progress to longer term elements, including sustainability initiatives.

  4. To complete phase one resourcing of the Foundation Office to include staffing, IT and office facilities.

  5. To continue to develop the fundraising campaign to support the Sevenoaks 600 strateg y , including the Case for Support, database management, prospect pipeline and donor acceptance.

  6. Finalise the establishment and management of a permanent endowment fund.

Strategies to Achieve the Year’s Objectives

In pursuing the Foundation’s objectives, Trustees have participated in steering groups, working groups and the consultation forum with senior members of staff and Governors of the School. Where it has proved necessary, specialist advice has been sought. To assist in the delivery of physical facilities, professional advice has been taken from a range of consultants, as well as employing contractors.

Performance against Objectives

Objective 1: The completion of the New Girl’s Boarding House

The New Girls’ Boarding House (“New House”) opened its doors to students in the summer term 2024 increasing the School’s boarding population to 450, from Year 9 to the Upper Sixth. New House successfully combines spacious, modern boarding with traditional materials. New House has been built with a sustainable approach. Students and staff have been unanimous in their praise for the design and ambience of the building.

Objective 2: Planning for the renovation of Girls International House (GIH)

Good progress has been made this year. An architect for the refurbishment project has been appointed, a Steering Group has been established to oversee the project, made up of stakeholders from both the School and Trustees, and first stage plans for the project have been approved in principle. The Foundation Office are developing the funding strategy and associated timelines.

Objective 3: Complete the Renew Phase and progress to longer term elements including sustainability initiatives

The Renew Phase has now been closed and normalised into ongoing maintenance, including the development of a ten-year LongTerm Maintenance plan and routine service contracts. The new boarding house has been designed to Passivhaus principles using a fully electric approach, and a decarbonisation strategy for the campus as a whole has been developed. Given financial uncertainty, the current strategy is to use essential maintenance projects, particularly of the older, traditional buildings, as opportunities for decarbonisation progress. Nonetheless, good progress has been made in specific sustainability initiatives, including 620 solar panels on the roof of the Sennocke Sports Centre, installation of a heat retention cover on the swimming pool, rolling programme of LED lighting upgrades etc.

Objective 4: Foundation Office resourcing

Good progress has been made with some key roles being filled this year, including: the Director of Advancement; the Deputy Director of Advancement; the Data and Finance Officer; and the Regular Giving Manager. A few roles remain vacant and will be recruited to in the Lent Term.

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SEVENOAKS SCHOOL FOUNDATION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 JULY 2024

Objective 5: Sevenoaks 600 Fundraising Campaign

The Foundation Office have made good progress this year on the fundraising campaign: important insights have been gained from members of the School community to help inform the case for support; further work has progressed on the prospect pipeline and database and meaningful discussions have taken place with key donors. A new system for due diligence and donation approval has been established which further strengthens the Donation Acceptance Committee’s oversight of the process.

Objective 6: Finalise the establishment and management of a permanent endowment fund.

Good progress has been made towards establishing the governance framework for the endowment fund, this includes confirmation of the purpose, governance, legal structure, investment, distribution (thresholds and process), compliance and risk management. A Deed of Trust has been drafted and an Investment Policy shall be confirmed in the Michaelmas Term.

Charitable Impact

Trustees implement the charity’s objects by raising funds from supporters, rental income and, where necessary, borrowing to support the strategic objectives of Sevenoaks School. The Foundation supports the School in three main ways: leasing premises to the School for the provision of education; developing new facilities in consultation with School Governors; and granting funds to provide financial assistance to students who would otherwise be preventing from taking up a place at the School.

REVIEW OF ACTIVITIES

Activities during the year have revolved around the objectives for the year and on which we have reported above (Performance against Objectives). Significant achievements this year include:

Public Benefit

The imperative of delivering public benefit is woven throughout the Foundation’s activities. The Foundation supports the School in seeking to make a significant contribution for the benefit of its communities in accordance with its charitable objects and has taken careful consideration of the Charity Commission guidance in deciding what educational and ancillary activities the Foundation should support. The scope of the Foundation’s activities outlined above should therefore be seen through a lens of public benefit, including:

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

Results

Income received during the year was £4,101,458 (2023: £5,363,858). Of this, £505,425, 13%, came from donations (2023: £1,945,448, 36%), £3,375,374, 82%, from rental income (2023: £3,254,582, 61%) and £220,659, 5%, from investment income and other income (2023: £163,828, 3%). Total resources expended, including depreciation, amounted to £4,141,881 (2023: £3,790,258). After taking into account the unrealised gain on investments of £156,402 (2023: Loss £53,569), the net movement in funds for the financial year was £115,979 (2023: £1,520,031).

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SEVENOAKS SCHOOL FOUNDATION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 JULY 2024

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. The Foundation’s priority has been to use available funds to develop the campus and provide financial assistance to students, and accordingly, the Foundation has limited funds to invest. Those funds it does invest are currently managed in-house with a view to providing a reasonable income stream, albeit this has proved difficult in a low interest rate environment. As part of planning to deliver Sevenoaks 600 , in particular the goal of developing a permanent endowment, Trustees are in discussions with Governors about the most appropriate way to structure and invest such funds in future.

Reserves Level and Policy

At the Balance Sheet date, the Foundation held funds of £45,146,163, of which £38,159,324 were unrestricted funds. If the value of fixed assets, including work in progress, less outstanding loans, is taken from this figure, there are no free reserves. Although free reserves were negative at the year end, the Foundation’s immediately available cash balance of £3.3m exceeded the policy target.

The Foundation invested heavily in tangible fixed assets resulting in nil free reserves as at the year end. The Trustees have reviewed their forecast for the next five years and expect to see increasing free reserves during the year ended 31 July 2025. In the meantime, the Trustees are ensuring that they are managing cash appropriately.

Going Concern

The Trustees have reviewed the continued economic volatility and challenge 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.

FUTURE PLANS

The Trustees have set the following objectives for the financial year 2024/25:

  1. To continue to support the renovation of Girls International House, and in particular to establish a fundraising strategy, noting the renovation project will be the first major carbon neutral project taken forward by the Foundation.

  2. To continue with the next phase of resourcing of the Foundation Office to ensure the office is set up for success.

  3. To continue to develop the fundraising campaign strategy in support of Sevenoaks 600 .

  4. To finalise the establishment and management of a permanent endowment fund and develop the investment policy and procedure.

  5. Given 2024 marks the twentieth anniversary of the Foundation, to consider conducting a broad review of the governance of the Foundation to ensure it is fit for purpose.

FUNDRAISING RESPONSIBILITIES

The 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 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 Donation Acceptance Policy and process 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.

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.

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SEVENOAKS SCHOOL FOUNDATION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 JULY 2024

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 9 December 2024.

and signed on their behalf by

Derick Walker Chairman

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

Opinion

We have audited the financial statements of Sevenoaks School Foundation (‘the charity’) for the year ended 31 July 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the 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:

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 charity 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 trustee's 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 charity'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 contained within the annual report. 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 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 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 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees 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 charity’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 charity 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 151 of the Charities Act 2011 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

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

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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context for the UK operations were health and safety legislation and employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Finance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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

Date 19 May 2025

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

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SEVENOAKS SCHOOL FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2024

Unrestricted
funds
Notes
£
Income from:
Donations and legacies
Donations
1
2,700
Alumni activities
77,530
Charitable activities
Rental income
3,375,374
Investments
Investment income
79,834
Other
Other income
152
Total incoming resources
3,535,590
Expenditure on:
Raising funds
4
987,242
Charitable Activities:
Education and grant making
4
2,634,281
Total expenditure
4
3,621,523
Net (outgoing)/incoming funds from
operations before investment
gains/(losses)
(85,933)
Net Gains/(Losses) on
investments
6
-
Transfers between funds
(5,619)
Net movement in funds
(91,552)
Funds brought forward at 1 August
2023
38,250,876
Funds carried forward at 31 July
2024
38,159,324		 Restricted
Funds
£
400,796
-
-
63,143
-
463,939
-
520,358
520,358
(56,419)
19,782
5,619
(31,018)
4,088,192
4,057,174		 Endowed
Funds
£
101,929
-
-
-
-
101,929
-
-
-
101,929
136,620
-
238,549
2,691,116
2,929,665		 2024
2023
£
£
505,425
1,945,448
77,530
85,075
3,375,374
3,254,582
142,977
78,654
152
99
4,101,458
5,363,858
987,242
928,222
3,154,639
2,862,036
4,141,881
3,790,258
(40,423)
1,573,600
156,402
(53,569)
-
-
115,979
1,520,031
45,030,184
43,510,153
45,146,163
45,030,184

The information on pages 12 to 23 form part of these financial statements.

Page 9

SEVENOAKS SCHOOL FOUNDATION BALANCE SHEET AS AT 31 JULY 2024

2024 2023
Notes £ £
FIXED ASSETS:
Tangible fixed assets 5 64,527,855 63,392,638
Investments 6 2,092,257 1,935,855
66,620,112 65,328,493
CURRENT ASSETS
Debtors 7 259,745 371,073
Bank and short term deposits 3,349,664 4,654,581
3,609,409 5,025,654
LIABILITIES:
Creditors: Amounts falling due within one year 8 (1,912,704) (1,731,699)
NET CURRENT ASSETS 1,696,705 3,293,955
TOTAL ASSETS LESS CURRENT LIABILITIES 68,316,817 68,622,448
Creditors: Amounts falling due after more than one year
Loans 8 (23,170,654) (23,592,264)
TOTAL NET ASSETS 9 45,146,163 45,030,184
FUNDS
Endowed funds 12 2,929,665 2,691,116
Restricted funds 13 4,057,174 4,088,192
Unrestricted funds 38,159,324 38,250,876
45,146,163 45,030,184

Approved by the Trustees on 9 December 2024 and signed on their behalf by …................................................................ Jans aire Derick Walker Chairman

The information on pages 12 to 23 form part of these financial statements.

Page 10

SEVENOAKS SCHOOL FOUNDATION CASH FLOW STATEMENT AS AT 31 JULY 2024

Reconciliation of net income to net cash flow from operating activities
Net (outgoing)/incoming funds
Investment Income
Depreciation charges
Interest paid
Decrease/(Increase) in debtors
Increase 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
Investment Income
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 2023
(Decrease) in cash
Decrease in borrowing
Net funds at 31 July 2024
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 2024		 2024
£
(40,423)
(142,977)
1,685,223
231,223
111,328
167,857
2,012,231
2,012,231
(2,820,440)
142,977
(2,677,463)
(639,685)
(639,685)
(1,304,917)
4,654,581
3,349,664
(19,559,792)
(1,304,917)
408,462
(20,456,247)
3,349,664
(635,257)
(23,170,654)
(20,456,247)		 2023
£
1,573,600
(78,654)
1,392,349
153,755
(7,040)
391,485
3,425,495
3,425,495
(5,555,294)
78,654
(5,476,640)
(589,624)
(589,624)
(2,640,769)
7,295,350
4,654,581
(17,354,892)
(2,640,769)
435,869
(19,559,792)
4,654,581
(622,109)
(23,592,264)
(19,559,792)

The information on pages 12 to 23 form part of these financial statements.

Page 11

SEVENOAKS SCHOOL FOUNDATION STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 31 JULY 2024

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 2019.

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 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 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 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 recognised on receipt and carried to the relevant restricted fund, or to endowed funds where the amount is required to be held as capital.

Page 12

SEVENOAKS SCHOOL FOUNDATION STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 31 JULY 2024

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:

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

The Foundation's Group Personal Pension Plan is a defined contribution group personal pension plan with Aegon. Employers’ pension costs are charged in the period in which the salaries to which they relate are payable. Since 1 April 2010 all new staff join the defined contribution Group Pension Plan, including those joining the scheme under autoenrolment.

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:

Buildings - 50 years

Improvements and extensions - 10 years

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 13

SEVENOAKS SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

1.
DONATIONS
General fundraising
Endowed fund donations
Foundation capital
Restricted fund donations
Financially Assisted Places (Formerly Bursary Fund)
Bursary Fund (COVID-19 appeal)
McEuen Scholarship Fund
Science Centre
Boarding Houses
Institute of Teaching and Learning
Institute of Higher Education and Professional Insight
Learning Support Dept Fund
Kent Academies Network
OS Events USA
Squash Courts
Campus Sustainability Fund
Total Donations
2.
EXPENDITURE
Resources expended include:
Auditors' remuneration for audit (excluding VAT)
3.
STAFF COSTS AND RELATED PARTY TRANSACTIONS
The aggregate payroll costs for the year were as follows:
Wages and salaries
Social security costs
Pension contributions
The average number of full and part time employees during the year was
Aggregate employee benefits of key management personnel		 2024
£
2,700
101,929
324,987
285
-
-
-
17,000
-
-
12,500
7,803
26,221
12,000
400,796
505,425
8,500
431,694
55,961
46,121
533,776
No.
6
£
236,935		 2023
£
103,214
754,364
142,239
455
25,475
7,800
10,000
1,000
1,000
3,000
75,000
-
-
821,901
1,087,870
1,945,448
7,950
256,602
33,551
11,264
301,417
No.
4
£
169,495

During the year settlement agreement payments totalling £80,183 (2023: £Nil) were payable.

Page 14

SEVENOAKS SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

3. STAFF COSTS AND RELATED PARTY TRANSACTIONS (Continued)

The number of higher paid employees was as follows:

number of higher paid employees was as follows:
2024 2023
No. No.
£70,000 - £80,000 1 -
£150,001 - £160,000 - 1
£180,001 - £190,000 1 -

Pension contributions of £46,121 (2023: £11,264) relate to contributions to a defined contribution scheme.

The Trustees received no remuneration in respect of the current or preceding year. No trustee expenses (2023: £Nil) were incurred by any Trustees in the current year (2023: Nil).

4. ANALYSIS OF TOTAL RESOURCES EXPENDED

ANALYSIS OF TOTAL RESOURCES EXPENDED
2024
Education and grant making:
Premises
Support costs
Grants, awards and prizes
Cost of generating funds:
Fundraising costs
2023
Education and grant making:
Premises
Support costs
Grants, awards and prizes
Cost of generating funds:
Fundraising costs		 Staff costs
£
(Note 3)
-
-
-
-
533,776
533,776
Staff costs
£
-
-
-
-
301,417
301,417		 Other
£
27,212
921,788
520,416
1,469,416
453,466
1,922,882
Other
£
27,393
813,737
628,557
1,469,687
626,805
2,096,492		 Depreciation
£
(Note 5)
1,685,223
-
-
1,685,223
-
1,685,223
Depreciation
£
1,392,349
-
-
1,392,349
-
1,392,349		 Total
£
1,712,435
921,788
520,416
3,154,639
987,242
4,141,881
Total
£
1,419,742
813,737
628,557
2,862,036
928,222
3,790,258

Page 15

SEVENOAKS SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

5. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
Cost
At 1 August 2023
Additions
Disposals
At 31 July 2024
Depreciation
At 1 August 2023
Charge for the year
Eliminated on disposals
At 31 July 2024
Net Book Value
At 31 July 2024
At 31 July 2023		 Freehold
Property
£
80,844,855
2,415,350
-
83,260,205
17,452,217
1,654,939
-
19,107,156
64,153,049
63,392,638		 Fixtures &
Improvements
£
4,060,642
405,090
-
4,465,732
4,060,642
30,284
-
4,090,926
374,806
-		 Total
£
84,905,497
2,820,440
-
87,725,937
21,512,859
1,685,223
-
23,198,082
64,527,855
63,392,638

At the balance sheet date the Foundation had contracted commitments in respect of the construction of fixed assets of £Nil (2023: £3.01m).

6. INVESTMENTS

INVESTMENTS
Market value at 1 August 2023
Revaluation
Market value at 31 July 2024
Investments comprise:
Listed investments		 Restricted
£
51,096
19,782
70,878
70,878		 Endowed
£
1,884,759
136,620
2,021,379
2,021,379		 Total
£
1,935,855
156,402
2,092,257
2,092,257

Page 16

SEVENOAKS SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

7. DEBTORS
Sundry debtors
Prepayments and accrued income
8. CREDITORS:Amounts falling due within one year
Taxation and social security
Other creditors and accruals
Loans
CREDITORS:Amounts falling due after more than one year
Loans
Private placement
Which are repayable as follows:
1 - 2 years
2 - 5 years
After more than 5 years		 2024
£
58,312
201,433
259,745
53,044
1,224,403
635,257
1,912,704
3,170,654
20,000,000
23,170,654
634,809
1,904,426
20,631,419
23,170,654		 2023
£
238,828
132,245
371,073
-
1,109,590
622,109
1,731,699
3,592,264
20,000,000
23,592,264
622,109
1,866,326
21,103,829
23,592,264

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'S NET ASSETS

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

Endowment funds
Restricted funds
Unrestricted funds
Loans		 Fixed assets
£
-
-
60,721,944
60,721,944
3,805,911
64,527,855		 Investments
& deposits
£
2,031,321
60,936
-
2,092,257
-
2,092,257		 Net current
assets
£
898,344
3,996,238
(2,562,620)
2,331,962
(635,257)
1,696,705		 Long term
liabilities
£
-
-
(20,000,000)
(20,000,000)
(3,170,654)
(23,170,654)		 Total
£
2,929,665
4,057,174
38,159,324
45,146,163
-
45,146,163

Page 17

SEVENOAKS SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

9. ALLOCATION OF THE CHARITY'S NET ASSETS Continued

Comparative Allocation of the Charity Net Assets

Fixed
assets
£
Endowment funds
-
Restricted funds
-
Unrestricted funds
59,178,265
59,178,265
Loans
4,214,373
63,392,638
10. FINANCIAL INSTRUMENTS
Financial assets measured at fair value
11. 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		 Investments
& deposits
£
1,881,516
54,339
-
1,935,855
-
1,935,855		 Net current
assets
£
809,600
4,033,853
(927,389)
3,916,064
(622,109)
3,293,955		 Long term
liabilities
£
-
-
(20,000,000)
(20,000,000)
(3,592,264)
(23,592,264)
2024
£
2,092,257
36,104
141,927
195,494
373,525
3,672,482
13,220,843
10,611,178
27,504,503		 Total
£
2,691,116
4,088,192
38,250,876
45,030,184
-
45,030,184
2023
£
1,935,855
88,876
193,504
219,757
502,137
3,254,582
13,018,328
5,292,375
21,565,285

Page 18

SEVENOAKS SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

12. ENDOWED FUNDS

These funds are permanent:

Balance 1
Aug 2023
£
Foundation capital
506,169
Bursary Fund
31,913
Hands Bursary
940,433
McEuen Scholarship
308,853
Institute of Teaching and Learning
(Formerly Centre for Innovation)
180,321
Financially Assisted Places
723,427
2,691,116		 Incoming
resources
£
813
3,828
-
-
15,000
82,288
101,929		 Resources
expended
£
-
-
-
-
-
-
-		 Transfers/
Investment
Gains/
(Losses)
Balance 31
Jul 2024
£
£
37,678
544,660
-
35,741
23,946
964,379
-
308,853
74,996
270,317
-
805,715
136,620
2,929,665

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.

The Hands Bursary fund provides for means tested bursaries for pupils of Sevenoaks School.

The McEuen Scholarship provides an opportunity for a pupil, who otherwise would not be able to come, to take up a place at Sevenoaks School.

S k S h l

The Institute of Teaching and Learning (Formerly Centre for Innovation) is to fund an Institute for Teaching and Learning in Sevenoaks School.

Comparative Endowed Funds

Foundation capital
Bursary Fund
Hands Bursary
McEuen Scholarship
Centre for Innovation
Financially Assisted Places		 Balance 1
Aug 2022
£
514,498
1,913
967,473
322,858
180,321
-
1,987,063		 Incoming
resources
£
937
30,000
-
-
-
723,427
754,364		 Resources
expended
£
-
-
-
-
-
-
-		 Transfers/
Investment
Gains/
(Losses)
Balance 31
Jul 2023
£
£
(9,266)
506,169
-
31,913
(27,040)
940,433
(14,005)
308,853
-
180,321
-
723,427
(50,311)
2,691,116

Page 19

SEVENOAKS SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

13. RESTRICTED FUNDS

RESTRICTED FUNDS
Financially Assisted Places Fund
(Formerly Bursary Fund)
Bursaries (COVID-19 Appeal)
Hands Bursary Fund
McEuen Scholarship Fund
Beardmore Bursary Fund
Institute of Teaching and Learning
(Formerly Centre for Innovation)
STSF Centre Fund
Boarding House Fund
Co-curricular Fund
Making It Exhibition
Campaign for Sevenoaks School
Kent Academies Network
Campus Sustainability Fund
Learning Support Dept Fund
OS Events USA
Squash Courts		 Balance 1
Aug 2023
£
687,725
455
107,442
123,921
330,339
2,853
8,558
10,000
2,050
15,000
1,917,008
57,940
821,901
3,000
-
-
4,088,192		 Incoming
resources
£
324,987
285
38,837
19,230
-
22,076
-
-
-
-
-
12,500
12,000
-
7,803
26,221
463,939		 Resources
expended
£
(371,567)
-
(34,511)
(10,681)
(31,832)
(17,000)
-
(2,624)
-
-
-
(12,500)
-
-
(13,422)
(26,221)
(520,358)		 Transfers/
Investment
Gains/
(Losses)
£
596
-
1,223
2,727
-
13,184
2,052
-
-
-
-
-
-
-
5,619
-
25,401		 Balance 31
Jul 2024
£
641,741
740
112,991
135,197
298,507
21,113
10,610
7,376
2,050
15,000
1,917,008
57,940
833,901
3,000
-
-
4,057,174

All funds represent monies given for the specific purposes, as described.

The Financially Assisted Places Fund (formerly Bursary Fund) provides for means-tested bursaries for students at Sevenoaks School.

The Beardmore Bursary Fund is to be used for the benefit of a local primary school boy or girl whose financial circumstances are such that they would be unable to otherwise afford an education at Sevenoaks School.

The Campaign for Sevenoaks School Fund supports Sevenoaks School’s strategic priorities.

Page 20

SEVENOAKS SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

13. RESTRICTED FUNDS Continued

Comparative Restricted Funds

(Formerly Bursary Fund)
Bursaries (COVID-19 Appeal)
Hands Bursary Fund
McEuen Scholarship Fund
Beardmore Bursary Fund
(Formerly Centre for Innovation)
Institute of Higher Education and
Professional Insight
STSF Centre Fund
Boarding House Fund
Co-curricular Fund
Making It Exhibition
Campaign for Sevenoaks School
Kent Academies Network
Campus Sustainability Fund
Learning Support Dept Fund		 Balance 1
Aug 2022
£
1,052,677
-
99,996
95,874
348,153
-
-
-
-
2,050
15,000
1,917,008
43,711
-
-
3,574,469		 Incoming
resources
£
142,239
455
35,968
42,080
-
6,095
1,000
7,800
10,000
-
-
-
75,000
821,901
3,000
1,145,538		 Resources
expended
£
(507,389)
-
(28,221)
(13,362)
(17,814)
-
(1,000)
-
-
-
-
-
(60,771)
-
-
(628,557)		 Transfers/
Investment
Gains/
(Losses)
Balance 31
Jul 2023
£
£
198
687,725
-
455
(301)
107,442
(671)
123,921
-
330,339
(3,242)
2,853
-
-
758
8,558
-
10,000
-
2,050
-
15,000
-
1,917,008
-
57,940
-
821,901
-
3,000
(3,258)
4,088,192

Page 21

SEVENOAKS SCHOOL FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2024

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/(losses) on investments
Transfers between funds
Net movement in funds
Funds brought forward at 1 August 2022
Funds carried forward at 31 July 2023		 Unrestricted
Funds
£
103,214
85,075
3,254,582
20,986
-
99
3,463,956
928,222
2,233,479
3,161,701
302,255
-
-
302,255
37,948,621
38,250,876		 Restricted
Funds
£
1,087,870
-
-
57,668
-
-
1,145,538
-
628,557
628,557
516,981
(3,258)
-
513,723
3,574,469
4,088,192		 Endowed
Funds
Total Funds
£
£
754,364
1,945,448
-
85,075
-
3,254,582
-
78,654
-
-
-
99
754,364
5,363,858
-
928,222
-
2,862,036
-
3,790,258
754,364
1,573,600
(50,311)
(53,569)
-
-
704,053
1,520,031
1,987,063
43,510,153
2,691,116
45,030,184

15. RELATED PARTY TRANSACTIONS

Sevenoaks School Foundation has received £259,420 in donations from The Friends of Sevenoaks School (Hong Kong) Limited during the year ended 31 July 2024 (2023: £1,235,328).

The objects for which The Friends of Sevenoaks School (Hong Kong) Limited was established, are to provide for the advancement and the promotion of learning and education at Sevenoaks School.

Page 22

SEVENOAKS SCHOOL FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2024

15. RELATED PARTY TRANSACTIONS Continued

The Foundation received donations totalling £3,828 (2023: £555,038) in the year from 1 Trustee (2023:3 Trustees).

Page 23