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2022-08-31-accounts

Charity number: 307935 Company registered number: 00852510

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

CONTENTS

Page
Reference and administrative details 1
Trustees’ report 2
Independent auditors’ report 9
Statement of financial activities 14
Balance sheet 15
Statement of cash flows 16
Notes to the financial statements 17

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 AUGUST 2022

Trustees Mr D. R. Walker, Chairman
Mr D. Eaton, Vice Chairman
Mrs L. Alexander
Mr J. Buckles
Mr W. Faure-Walker
Mrs G. Harrison
Mrs V. C. Larmour,
Mr M. Phelps (appointed 17 March 2022)
Mrs E. C. Pocock
Mrs S. Robertson
Mr C. J. C. Swainson
Company registered number 00852510
Charity registered number 307935
Registered office 38 Dry Hill Park Road
Tonbridge
Kent TN10 3BU
Independent auditors Lindeyer Francis Ferguson Limited
Chartered Accountants
Statutory Auditors
North House, 198 High Street
Tonbridge
Kent TN9 1BE
Bankers National Westminster Bank
130 High Street
Tonbridge
Kent TN9 1DE
Solicitors Warners Solicitors
Bank House
Bank Street
Tonbridge
Kent TN9 1BL
Headmistress Mrs K. Joiner NNEB BEd (Hons) QTS MEd

1

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

The Trustees present their report together with the audited financial statements of the School for the year from 1 September 2021 to 31 August 2022. The Trustees confirm that the Trustees' Report and financial statements of the School comply with the current statutory requirements, the requirements of the School's governing document and the provisions of the Statement of Recommended Practice (SORP), 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).

Since the School qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.

Constitution

The School is a charitable company limited by guarantee and was set up by a Memorandum of Association on 10 June 1965 as amended by Special Resolutions dated 29 July 1965, 3 June 2015 and 25 June 2020.

The primary object of the Trust, as stated in its Articles of Association, is ‘To advance education through the management and operation of Hilden Oaks Preparatory School and Nursery in Dry Hill Park Road, Tonbridge'.

Our Aims

2

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

Our Objectives

Our objectives are set annually to reflect the educational aims and ethos of the school.

In setting the objectives, the Trustees have considered the Charity Commission’s general guidance on public benefit and its supplementary guidance on advancing education and fee charging.

Our key objectives for the year 2021-22 were:

Our Achievements and Performance

The development project was completed on time and on budget without losing a single day’s learning. The building program has given us state of the art classroom facilities for every year group; a new and improved hall space; a soundproofed music teaching room for class teaching; an updated, enlarged and improved kitchen; a medical room; additional toilets; a staff common room; meeting rooms; and spaces for 1:1 and small group teaching. We also recommissioned the library and other spaces to improve the learning environment. As part of the programme some other minor upgrades were undertaken which could most efficiently be done with the contractors on site. This included the kitchen refurbishment.

The School took possession of the new facilities at Easter 2022 which were officially opened by the Mayor of Tonbridge at a Platinum Jubilee Party in June

The School instigated a new marketing program during the year, with an increased emphasis on social media and digital activity. As a result, the number of pupils in the school increased from 113 at the end of the 2021-22 academic year to 121 at the beginning of the 2022-23 year.

Our Year 6 pupils moved on to a wide range of secondary schools, which included Beechwood, Bethany, Hillview, The Judd School, Kent College, Merchiston (Scotland), Rochester Independent, Sevenoaks School, The Skinners School, Tonbridge Grammar School, Tunbridge Wells Boys’ Grammar, Walthamstow Hall and Weald of Kent. Five pupils were awarded scholarships.

The Early Years team implemented a newly revised curriculum which focused on Practitioners spending more quality time with the children, enhancing their learning through a holistic approach. The transition class was rebranded as Pre-School, focusing on embedding the core knowledge and skills needed for Reception class

3

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

Financial Review

The Trustees believe that the school has adequate resources to continue in operational existence for the foreseeable future. For this reason, we continue to adopt the going concern basis in preparing the financial statements.

The School’s principal source of income is fees, which are set at a level to recover operating costs and to provide for investment to support the operations of the school. The Trustees intend to maintain this policy, which ensures the financial viability of the school and is consistent with our aim of providing a first class, well-rounded education.

The financial statements for the year ended 31 August 2022 report a net deficit of £92,709 (2021: net surplus of £46,962). The Trust does not invest in any assets, or use its incoming resources, for any activities not directly related to or used by the school. The total net assets of the Trust amounted to £3,998,474 (2021: £4,091,183) including freehold property carried at a value of £4,474,866 (2021: £2,936,382)

The total free reserves of the Trust, being general funds less the net book value of fixed assets, amount to a deficit position of £674,505 (2021: surplus of £923,358). This decline is largely due to reserves being spent on the development program. In July 2020, the Trust took out a 20 year loan of £500,000 with NatWest to help with cash flow over the development period. The Trust will maintain a prudent level of cash reserves in the short term and intends to build the reserves in the longer term towards a target of 13 weeks or a full term’s expenditure.

The Finance Committee monitors the financial position of the Trust and the process of controls operated by the Bursar. The Trustees consider that the financial stability of the school is paramount to achieving its longer-term objectives and the present position continues to fulfil this requirement.

Access, Diversity and Public Benefit

We encourage applications from pupils with as diverse a range of backgrounds as possible. This enriches our community and is vital in preparing our pupils for today’s world. Bursaries are available to provide financial support to boys and girls who show academic promise but who would otherwise be unable to benefit from a Hilden Oaks education.

The Trust is an equal opportunity organisation and Trustees are committed to creating a working environment that is free from discrimination on the grounds of social background, culture, race, gender or physical ability.

The Trust recognises the difficulties faced by pupils with disabilities. We make reasonable adjustments to meet the needs of staff or pupils who are or become disabled. Specialist learning support is available and offers children one-to-one structured help if needed.

The School plans, over time, to increase the accessibility of provision for all pupils, staff and visitors to the School. In accordance with the Equality Act 2010, the School’s three-year accessibility plan details our strategy for accessibility for disabled pupils.

4

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

Public Benefit

It is a central aim of the School that Hilden Oaks ‘provides a benefit to the general public in accordance with our charitable status.’ A report is made annually to the full Trust detailing the activities undertaken throughout the year. The School takes special note of the guidance from the Charity Commission, which emphasises the benefit in ‘sharing facilities, expertise and perspectives with colleagues from local (state) schools’.

The School continues to develop its links with Leigh Primary School where our headmistress is on the governing body. We continue to explore opportunities for further cooperation between our two schools. This work advances our broader educational aims and we believe that the exchange of ideas is mutually beneficial.

Other activities undertaken by the school to complement the financial support it provides to selected pupils included sponsoring training for Early Years practitioners, attendance at Remembrance Day services, carol singing and visits to local retirement homes.

Financial bursaries and scholarships

During the year, the Trust supported 12 pupils (2021: 15) with financial assistance either in the form of means tested bursary awards or financial hardship assistance. Bursary awards are available to all who meet our general entry requirements and are made solely on the basis of parental means or to relieve hardship where a pupil’s education and future prospects would otherwise be at risk, for example in the case of job redundancy. In addition, the School awards sports and music scholarships based on individual merit and potential.

The amount allocated during the year to our bursaries and assistance programme, together with other financial support was £91,121 (2021: £97,492). This represents 5% (2021: 5%) of the school’s income.

Our Plans for the Future

Our current five-year strategic plan (2018-2023) will guide the further development of the school and will evolve in the light of current circumstances.

Following the completion of the development program, emphasis will be given to integrating the new facilities into the day-to-day operation of the school.

The school will review and upgrade its data handling and administration procedures and establish a fully integrated digital solution for recording, monitoring and analysing pastoral and safeguarding information.

The curriculum will continue to evolve to ensure that it is broad, balanced and inspiring and gives children the opportunity to achieve their full potential. This will include further strengthening the pupils’ ability to understand, direct and enhance their own learning power.

To enhance our public benefit, we will continue to work with our associated local state school, Leigh Primary, to develop the programme of mutual support activities for pupils and staff in both schools.

5

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

We will also maintain bursary funding to ensure that we continue to provide a Hilden Oaks education to as many children as possible.

Governance and Management

Trustees are elected at a full Trust meeting and are appointed for an unspecified period. Procedures are in place to identify and recruit suitable individuals to provide strength and balance to the Trust.

The chairman oversees the selection of new Trustees who receive a full induction and are encouraged to attend external training courses and seminars to help them fulfil their role.

Trustees give their time freely and no remuneration is payable but expenses incurred may be reimbursed.

Organisation structure and decision making

The Trustees determine general policy and provide overall management and control of the Trust.

The Trustees meet at least three times a year with the headmistress, deputy head and bursar attending the meetings. The Trust has three formal committees: Education; Finance and Premises; and Staffing and Remuneration. These committees, each chaired by a Trustee, meet once a term, and report to the full Trust. The Trustees are involved in all aspects of the school’s activities, receive presentations from staff and discuss current educational issues.

The Headmistress undertakes the key leadership role overseeing educational, pastoral and administrative functions. The day-to-day management of the school is delegated to the Headmistress and the Senior Leadership Team (SLT).

Risk Management and Policies

The Trustees assess the major risks to which the school is exposed on an annual basis. The risks are identified and assessed, and controls established. The assessment comprises a review of the external operating environment as well as specific areas including governance, management, human resources, health and safety, technology, curriculum, child protection and finance. The reviews enable the Trust to establish systems and procedures to mitigate risks and the Trustees are satisfied that such systems continue to operate satisfactorily.

Designated Trustees are appointed to take the lead in key areas; currently these are Safeguarding & Child Protection; Health & Safety; Special Educational Needs (SEN); Spiritual, Moral, Social & Cultural Education (SMSC), Mental Health & Wellbeing; and Early Years.

The Trust has policies, as required by law and best practice, to ensure good management of the school and to provide guidance for staff, parents, pupils and Trustees. These policies are reviewed on a regular basis to ensure they are compliant with current legislation and fit for purpose. Many of the key policies can be found on the school’s website.

6

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

The principal risks and uncertainties facing the school currently (identified by those flagged by the trust as ‘red’ on its risk register) are those relating to the school’s income and pupil numbers in the light of the current economic situation.

Risk management and sector financial pressures

The school budget is developed to ensure that we can continue to attract high quality teaching staff, who represent two-thirds of our expenditure. Fees are then set to cover remaining costs, taking into account likely pupil numbers, capital expenditure requirements and inflation, together with a suitable level of surplus. The Bursar maintains close control of costs and has made provision for the expected exceptional increases in utility and catering costs this year. The trustees are aware of other potential cost increases in the future, especially the removal of charity business rate relief and the possible imposition of VAT on school fees by a future Labour Government. The primary risk mitigation has been to optimise our marketing to attract new pupils, many of whom join the school from our Nursery which enjoys a pre-eminent local reputation and demand for places exceeds availability. The main school continues to operate at high capacity levels and offers good value for money in the local catchment area.

Trustees' responsibilities statement

The Trustees (who are also directors of The Hilden Oaks School Educational Trust Limited for the purposes of company law) are responsible for preparing the Trustees' annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

7

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' annual report is approved has confirmed that:

This report was approved by the Trustees on 24 November 2022 and signed on their behalf by:

………………………………………….

Mr D. R. Walker Chairman

………………………………………….

Mr W. Faure-Walker Chair of the Finance Committee

8

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF HILDEN OAK SCHOOL EDUCATIONAL TRUST LIMITED

Opinion

We have audited the financial statements of Hilden Oaks School Educational Trust Limited (the 'School') for the year ended 31 August 2022 comprising the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related Notes, 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 Auditors' 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 United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

9

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF HILDEN OAK SCHOOL EDUCATIONAL TRUST LIMITED

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 Auditors' 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

10

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF HILDEN OAK SCHOOL EDUCATIONAL TRUST LIMITED

Responsibilities of Trustees

As explained more fully in the Trustees' responsibilities statement, 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.

Auditors' responsibilities for the audit of the financial statements

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 Auditors' 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We obtained an understanding of the legal and regulatory framework applying to the charitable company, and the procedures that management adopt to ensure compliance, and have considered the extent to which non-compliance might have a material effect on the financial statements, and in particular we identified: the Companies Act 2006, the Charities Act 2011 and Charities SORP (FRS102).

We have also identified other laws and regulations that do not have a direct effect on the amounts or disclosures within the financial statements, but for which compliance is fundamental to the company’s operations and to avoid material penalties, including GDPR and data protection regulations, health and safety regulations concerning education establishments, food hygiene standards, safeguarding regulations concerning children in educational environments and compliance with the Independent Schools Inspectorate.

Having reviewed the laws and regulations applicable to the company, we designed and performed audit procedures to obtain sufficient appropriate audit evidence. Specifically, we:

11

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF HILDEN OAK SCHOOL EDUCATIONAL TRUST LIMITED

We assessed the susceptibility of the company’s financial statements to material misstatement due to fraud, and in doing so:

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 Auditors' report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

12

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF HILDEN OAK SCHOOL EDUCATIONAL TRUST LIMITED

………………………………………………. Amy Healey FCA CTA DChA (Senior statutory auditor)

for and on behalf of

Lindeyer Francis Ferguson Limited Statutory Auditors, Chartered Accountants North House, 198 High Street Tonbridge Kent TN9 1BE

Date: 16/12/2022

13

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2022

Note
Income from:
Grants and donations
Charitable activities
3
Bank interest
Total
Expenditure on:
Charitable activities
4
Total
Net (expenditure)/income and net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 2022
Total
funds
£
-
1,940,538
224
1,940,762
2,033,471
2,033,471
( 92,709)
4,091,183
3,998,474		 2021
Total
funds
£
30,131
1,907,507
222
1,937,860
1,890,898
1,890,898
46,962
4,044,221
4,091,183

There were no restricted funds in the current nor preceding period.

14

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

BALANCE SHEET

AS AT 31 AUGUST 2022

Note
Fixed assets
Tangible assets
7
Current assets
Stocks
Debtors
8
Cash at bank and in hand
Creditors:amounts falling due
within one year
9
Net current assets
Total assets less current liabilities
Creditors:amounts falling due
after more than one year
10
Total net assets
The funds of the charity:
Unrestricted funds		 2022
£
1,391
57,293
225,006
283,690
( 408,315)		 2022
£
4,672,979
( 124,625)
4,548,354
( 549,880)
3,998,474
3,998,474
3,998,474		 2021
£
2,932
391,180
1,489,646
1,883,758
( 888,250)		 2021
£
3,167,825
995,508
4,163,333
( 72,150)
4,091,183
4,091,183
4,091,183

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 24 November 2022 and are signed on its behalf by:

…..................................................... …..................................................... Mr D. R. Walker Mr W. Faure-Walker Chair Chair of the Finance Committee Company number: 00852510

15

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022

Note
Cash flows from operating activities:
Net cash (used in) / provided by operating activities
A
Cash flows from investing activities:
Bank interest received
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities:
Repayments of bank borrowings
Cash inflows from new borrowing
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
A. Reconciliation of net (expenditure)/income to net cash flow
from operating activities
Net (expenditure)/income and net movement in funds for the year
Depreciation charges
Bank interest
Decrease/(increase) in stocks
Decrease in debtors
(Decrease)/increase in creditors
Net cash (used in) / provided by operating activities
B. Analysis of changes in net debt
At start of year
Cash flows
Net debt at the end of the year		 2022
£
( 148,941)
224
( 1,608,961)
( 1,608,737)
( 6,962)
500,000
493,038
( 1,264,640)
1,489,646
225,006
( 92,709)
103,807
( 224)
1,541
333,887
( 495,243)
( 148,941)
Cash
£
1,489,646
( 1,264,640)
225,006		 2021
£
291,748
222
( 610,945)
( 610,723)
-
-
-
( 318,975)
1,808,621
1,489,646
46,962
94,255
( 222)
( 558)
26,924
124,387
291,748
Bank loans
£
-
( 493,038)
( 493,038)

16

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1 ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The School meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

There are no material uncertainties about the charity's ability to continue, and so the going concern basis of accounting has been adopted.

The financial statements are presented in pounds sterling and rounded to the nearest pound.

Income

All income is recognised once the School has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. School fees are therefore recognised in the term to which they relate. School fees receivable are shown net of bursaries.

Expenditure

Expenditure is recognised when a present legal or constructive obligation exists at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefits will be required to settle the obligation, and the amount can be estimated reliably.

The School has one charitable activity (the provision of educational services) to which direct and support costs are allocated. Staff costs are allocated between direct and support costs on the basis of the staff members' job roles.

Support costs are those functions that assist the work of the charity but do not directly relate to the charitable activities, and include governance costs.

Governance costs include all those associated with constitutional and statutory requirements including the preparation, and external audit, of the statutory accounts, and legal and professional fees.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

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HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1 ACCOUNTING POLICIES continued

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated realisable value of each asset over its expected useful life, as follows:

Freehold land Not depreciated
Freehold buildings 50 years on the straight line basis
Motor vehicles 4 years on the straight line basis
Fixtures and fittings Rates up to 10 years on the straight line basis
Computers and website Between 3 and 5 years on the straight line basis

New freehold building additions have been analysed based on their comprising components as follows:

Main fabric (including roof) 50 years on the straight line basis
Windows & external doors 25 years on the straight line basis
Mechanical and electrical 20 years on the straight line basis
Bathroom fittings 10 years on the straight line basis
Kitchen fittings 10 years on the straight line basis

Assets costing less than £1,000 are not capitalised but are recognised as expenditure in the Statement of Financial Activities in the year incurred.

Financial instruments

The School only has financial instruments of a kind that qualify as basic financial instruments. Short term basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Other financial instruments, including bank loans, are measured initially at the transaction value and subsequently at amortised cost using the effective interest method.

The charity has treated non-interest bearing parental deposits as concessionary loans based on the substance of the transactions. The charity has opted to value the deposits at transaction value less repayments made.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period to which the entitlement relates.

The School operates a defined contribution scheme for teachers and other staff and contributions are charged to the income and expenditure account as they are incurred.

Leasing

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

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HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2 STATUS

Hilden Oaks School Educational Trust Limited ('the School') is a company limited by guarantee and registered charity incorporated in England and Wales. The members of the School are the Trustees. In the event of the School being wound up, the liability in respect of the guarantee is limited to £1 per member of the School.

The address of the School's registered office and its place of business is 38 Dry Hill Park Road, Tonbridge, Kent, TN10 3BU.

3 INCOME FROM CHARITABLE ACTIVITIES

INCOME FROM CHARITABLE ACTIVITIES
School fees receivable
Other school income
Bursaries, scholarships and Covid-19 fee reductions		 2022
Total
£
2,025,117
14,593
( 99,172)
1,940,538		 2021
Total
£
2,031,362
5,612
( 129,467)
1,907,507

4 EXPENDITURE ON CHARITABLE ACTIVITIES

Staff costs
Food and housekeeping
IT expenses
Repairs and maintenance
Stationery, books and materials
Utilities
Other direct costs
Facilities hire
Minibus expenses
Teacher training
Bad and doubtful debts
Support costs allocated		 2022
Total
£
1,217,266
183,255
49,260
38,045
46,059
26,643
24,501
17,852
8,861
9,079
( 9,840)
422,490
2,033,471		 2021
Total
£
1,195,729
138,653
42,743
25,591
45,734
25,814
8,763
8,509
9,417
10,197
5,403
374,345
1,890,898

19

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

4 EXPENDITURE ON CHARITABLE ACTIVITIES continued

Support costs comprise:
Staff costs
Recruitment
Insurance
Health and safety
Printing, post and stationery
Other staff costs
Marketing
Rates
Subscriptions and membership fees
Telephone and communication
Other costs
Depreciation
Bank charges
Loan interest
Governance costs:
Auditors' remuneration
Auditors' non-audit fees
Legal and professional fees
5
NET (EXPENDITURE)/INCOME AND NET MOVEMENT IN FUNDS
Depreciation
Auditors' remuneration for audit services
Auditors' remuneration for non-audit services
Operating lease rentals
Net (expenditure)/income and net movement in funds is stated after
charging/(crediting):		 2022
Total
£
194,142
4,574
31,424
11,520
8,395
10,590
14,680
7,243
6,314
1,370
941
103,806
1,487
8,016
6,900
2,113
8,975
422,490
2022
£
103,806
6,900
2,113
4,392		 2021
Total
£
185,131
-
23,186
10,860
9,263
13,046
10,004
6,477
5,483
2,305
845
94,254
1,405
-
6,700
2,000
3,386
374,345
2021
£
94,254
6,700
2,000
4,392

20

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

6 STAFF COSTS

STAFF COSTS
Gross salaries
Employer's pension contributions
Employer's National Insurance contributions
Group life and protection insurance
Supply and freelance		 2022
£
1,189,179
97,898
107,855
12,370
4,106
1,411,408		 2021
£
1,149,897
103,619
102,033
12,486
12,825
1,380,860

There were 2 (2021: 2) employees with employment benefits (excluding employer pension contributions) of between £70,001 and £80,000 in the period.

At the balance sheet date pension contributions unpaid amounted to £12,163 (2021: £12,119).

The average number of employees on a headcount basis was:

Teaching staff
Domestic staff
Administrative staff		 2022
42
2
6
50		 2021
41
2
6
49

21

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

7 TANGIBLE FIXED ASSETS

Cost
At 1 September 2021
Additions
Additions - assets under
construction
At 31 August 2022
Depreciation
At 1 September 2021
Charged for the year
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021		 Freehold
property
£
3,126,920
1,568,006
16,479
4,711,405
190,538
46,001
236,539
4,474,866
2,936,382		 Motor
vehicles
£
17,919
-
-
17,919
17,919
-
17,919
-
-		 Fixtures
and
fittings
£
277,122
5,556
-
282,678
110,148
24,865
135,013
147,665
166,974		 £
190,046
18,920
-
208,966
125,577
32,941
158,518
50,448
64,469
Computer
equipment		 Total
£
3,612,007
1,592,482
16,479
5,220,968
444,182
103,807
547,989
4,672,979
3,167,825

Freehold property includes land at cost of £87,152 (2021: £87,152) which is not depreciated.

Freehold property additions include assets under construction of £16,479 (2021: £553,566) which are not depreciated.

The bank loan disclosed in notes 9 and 10 is secured against the freehold property.

8 DEBTORS

Trade debtors
Prepayments and accrued income
Other debtors		 2022
£
2,820
45,689
8,784
57,293		 2021
£
347,705
42,392
1,083
391,180

22

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

9 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loan
Trade creditors
Tax and social security
Parent deposits
Accruals and deferred income
Other creditors
The movement on deferred school fees is as follows:
At 1 September 2021
Released to income
Received in the year and deferred
At 31 August 2022
10 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Bank loan
Parent deposits		 2022
£
17,172
40,678
31,524
9,500
292,582
16,859
408,315
2022
£
593,072
( 593,072)
224,545
224,545
2022
£
475,866
74,014
549,880		 2021
£
-
26,910
27,186
9,000
808,632
16,522
888,250
2021
£
555,412
( 555,412)
593,072
593,072
2021
£
-
72,150
72,150

The bank loan is repayable over 20 years. The interest rate on the loan is fixed at 3.89%. The loan is secured by a first legal charge over the school property. Of the above bank loan balance, £397,027 is due in greater than five years.

23

HILDEN OAKS SCHOOL EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

11 FINANCIAL COMMITMENTS

At 31 August 2022 the charity was committed to future minimum lease payments under noncancellable operating leases as follows:

cancellable operating leases as follows:
2022 2021
£ £
Due within one year 4,392 4,392
Due in two to five years 366 4,758

12 RELATED PARTY TRANSACTIONS

The key management personnel are considered to be the Trustees and the members of the senior leadership team.

The Trustees volunteer in their roles and therefore there was no Trustees' remuneration, other benefits nor reimbursed expenses during the current or prior period.

The school offers discounted student fees for pupils of parents employed as teachers at The Tonbridge School. One trustee benefitted from this discount, which amounted to £3,450 (2021: One trustee - £3,233).

The total amount of employee benefits (including employer's pension contributions) received by key management personnel during the year was £302,117 (2021: £305,360).

13 CAPITAL COMMITMENTS

As at the Balance Sheet date, the charity is committed to no further development work at the School (2021: £1,373,575).

24