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2023-08-31-accounts

GOVERNORS’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE)

Company Registration No. 00556463 Registered Charity No. 309086

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 KEY EXECUTIVES AND PROFESSIONAL ADVISORS FOR THE YEAR ENDED 31 AUGUST 2023

Key executives and Professional Advisors

HEADMISTRESS:

Mrs S Rollings

BURSAR:

Mrs R Frier

SENIOR LEADERSHIP TEAM:

Ms L Scott Deputy Head (Pastoral and Boarding) Mr D Mitchell Deputy Head (Academic) Miss W Reynolds Assistant Head (Co-curricular) Ms A Morgan Director of Marketing and Admissions Mr A Valner Assistant Head (Pastoral and Boarding) Miss C Wells Assistant Head (Operations)

Barclays Bank Plc

BANKERS: Barclays Bank Plc SOLICITORS: VWV Orchard Court Orchard Lane Bristol BS1 5WS AUDITORS: Moore Kingston Smith LLP 9 Appold Street London EC2A 2AP COMPANY SECRETARY: Mrs R Frier REGISTERED OFFICE: Heathfield School London Road Ascot Berkshire SL5 8BQ

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2023

The Governors present their annual report for the year ended 31 August 2023 under the Companies Act 2006, together with the audited accounts for the year, and confirms that the latter comply with the requirements of the Act, the memorandum and articles of association and the Charities SORP 2015.

REFERENCE AND ADMINISTRATIVE INFORMATION

The School was founded in 1899 and became a Charity in 1955 and is registered with the Charity Commission under Charity number 309086. The School is also a company limited by guarantee registered number 556463 (England and Wales). The Trustees of the charity are also Directors of the company and are referred to as Governors in this Report. The Governors are listed below and the executive officers, professional advisors and principal addresses of the Charity are listed on page 1.

Principal activities of the year

The School provides education in Ascot for girls from the ages of 11 to 18, and also runs a summer school and camp for local and overseas students.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association.

Governors

The members of the Governing Body are detailed below. The Governing Body is self-appointing. Each Governor is elected for three years and retiring Governors are able to stand for re-election. The number of serving Governors shall not be fewer than ten or exceed twenty.

Organisational Management

The School's Governors, who are also the Charity Trustees and the Company Directors, are legally responsible for the overall management and control of the School and meet at least three times a year. The work of implementing most of their policies is carried out by the members of the five following subcommittees: Finance, Buildings & Development, Educational, Pastoral and Compliance, Marketing, Admissions & Communications, Development and Nominations which meet at regular intervals during the year.

The day-to-day running of the school is delegated to the Headmistress, supported by the senior management team, together with the Bursar. The Headmistress and the Bursar attend meetings of the above committees.

At the date of approval of the financial statements the School Governors are as follows:

Name Position
Mr Tom Cross Brown(resigned 31 July2023) Chair of the Council,Chair N
Mr Alex Popplewell(appointed 17 April 2023) Chair of the Council,Chair N,F,Chair D
The Revd Canon Dr Philip Ursell (resigned 1 December 2022)
Mr Steve Melcher Chair of F,D
Miss Charlotte Faber Chair of MAC,N
Mrs SallyTulk-Hart MAC,EPC
Mrs Sarah Collister(appointed 29 June 2023) EPC
Mr GuyEgerton-Smith Chair BD,F
Hon Mrs Frances Stanley (resigned 6 July2024) D
Mr Robert Gregory N
Mrs Annabelle More O’Ferrall EPC
Mrs Suzie Cullen MAC

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 GOVERNORS’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2023

Name Position
Mrs Anne Lynch Chair EPC
Mrs PoppyHughes(appointed 12 March 2024) F
Mr TonyLeggett(appointed 12 March 2024) F
Mrs Karen Hurt(resigned1 November 2023)
LadyKatharine Colquhoun(appointed 26 June 2024) EPC

Key:

Buildings & Development Sub-committee = BD Marketing, Admissions & Communications Sub-committee = MAC Nominations Sub-committee = N

Education, Pastoral & Compliance Sub-committee = EPC Finance Sub-committee = F Development Sub-committee = D

Recruitment and Training of Governors

Potential Governors are identified by members of the Governing Body which seeks to achieve a balance of experience and background in secondary education, finance, business, law, facilities & property management, human resources management, marketing & PR and health & safety compliance. New candidates tour the School and meet the Headmistress and other existing Governors. They are proposed by the Nominations Committee. Once appointed, new Governors are inducted into the workings of the School including Board Policy and Procedures. Training is regularly offered to all Governors on various topics including child protection and safeguarding training. Governors are encouraged to attend external seminars and course to keep them informed and updated on current issued in the sector and regulatory requirements. This includes events run by AGBIS, ISC, ISBA and professional firms.

Key management personnel remuneration

The remuneration of key management personnel (being the Headmistress and Bursar) is set by the Governors, with the objective of providing appropriate incentives to encourage enhanced performance and of rewarding them fairly for their individual contributions to the success of the School. The appropriateness and relevance of the remuneration policy is reviewed annually including reference to benchmarking information to ensure that the School remains sensitive to the broader issues of pay and employment conditions elsewhere. Delivery of the School's charitable vision and purpose is primarily dependent on our key management personnel and staff costs are the largest single element of our expenditure.

The School is committed to ensuring equality of opportunity through the creation of an environment in which individuals are treated on the basis of their relevant merits and abilities. The School respects all its members and values the harmonious relationships between them. As a community we are committed to the active promotion of equality between all who live, study or work in the School. Provision is made for individuals with a particular disability and religious, dietary, language or cultural needs, as appropriate.

Consultation with employees at all levels ensures that the views of employees are taken into account when decisions are made that are likely to affect their interests. All staff are briefed at the beginning of each term with shorter briefing sessions held once a week. The Senior Leadership Team meet once a week to discuss strategic plans; there are regular Heads of Department and Heads of Year meetings where teaching and learning strategies are discussed, as well as weekly meetings with Boarding staff.

Chapel

The Chapel provides a place of peace and quiet reflection, where pupils’ spiritual development can begin. Our Chapel is the spiritual centre of the school and is often at the core of people's memories of the school when they leave, and the place they come back to first when they return to visit. Dedicated in 1904, the Chapel was

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2023

built in the Victorian Gothic style with collegiate seating. Chapel follows current Anglican practice, yet it is a place for all the school community regardless of faith or belief.

The Chaplain is a central figure in school life who leads Chapel services during the week, on Sundays and on special occasions. The Chaplain is available to all members of the school community and the school's extended community for pastoral care.

Related parties and other connected charities and organisations

The Heathfield Fellowship is a separate entity which continues to raise money to enable pupils to attend the school by way of bursarial support.

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Charitable Objects

The objects for which the Association is established are to advance education and training by:

These are set out in the School’s governing document – the Memorandum and Articles of Association of Heathfield School dated 18 October 1955 as amended March 2009.

The Governors confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the School’s aims and objectives and in planning future activities.

Public Benefit Activities

The Governors have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit. The School is committed to ensuring that it is meeting its main aim and its charitable objective. The School’s aims for the public benefit are:

The Governors are committed to widening access to the School and welcomes pupils from all backgrounds. Each pupil to whom support is offered must, in the opinion of the Headmistress, be likely to make sound academic progress following admission, possess the potential to develop the quality of her work and benefit from participation in the wider, extra-curricular activities on offer at the School. The availability of bursaries is publicised on the School's website. The Governors' policy is to award bursaries on a means tested basis only. The bursaries are available to provide financial support for up to 100% of the annual fees. During 2023 a total of £464,294 (2022: £441,808) was awarded in bursaries to 29 (2022: 24) pupils. Many more applications are received than the School can reasonably support.

The School works closely with a number of other partner charities that help identify pupils who could benefit substantively from the education and pastoral support that the School can provide. 6 pupils (2022: 9) receive significant contributions towards their fees from these external grant-making bodies which resulted in full

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2023

remission of their tuition fees.

The School actively supports the local community, charities and associations by making its facilities available at less than cost price or free to a variety of different clubs and organisations. This provision is inevitably limited by boarders use and the safeguarding restrictions of operating a small boarding school. The School has started to develop links with local maintained schools. Some specific examples of the School’s outreach programme are:

Heathfield pupils also participate in the Duke of Edinburgh’s Award scheme at Bronze, Silver and Gold level. Our pupils have contributed over 200 hours of volunteering during the year.

Our pupils also raised over £24,000 for local, national and international charities throughout the year through a variety of fundraising activities including charity concerts, a Christmas fair, cake sales, poppy sales for the British Legion and non-uniform days.

The swimming pool is host to many local communities and organisations. Schools including Kennel Lane, and Natures Nursery used the facility at various times throughout the year. In addition to these schools, there are a number of clubs that use the pool on a regular basis. These include, Scuba Trust, Bracknell and Wokingham Swimming Club and Windsor Swimming Club. Frogs and Friends Swimming School regularly run lessons at the pool as part of their ‘learn to swim’ programme which is offered to children in and around the local area.

The swimming pool is also used for training as well as tuition. NPLQ (National Pool Lifeguard Qualification) and Swimming Teacher courses are held at the pool and are open to members of the local community.

Fundraising performance

The School views fundraising as a very important source of additional income to enable fees to be kept as low as possible and to reduce reliance on single income streams. The trustees are fully aware of their individual responsibility and accountability to ensure that the School fundraises legally, responsibly and effectively. They are aware of the Charity Commission CC20 guidance and use this and the accompanying checklist to help them evaluate the School’s fundraising performance.

The Development Office continued to raise funds for the Sixth Form Centre capital project and other development projects. The total amount raised for 2023 was £188,686 (2022: £365,927).

The School did not engage with a professional fundraiser in the year and is not a member of the fundraising body.

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2023

The School has a published complaints procedure, available on its website. The number of complaints received during the year in respect of fundraising was none.

Aims and Intended Impact

Heathfield School aims to discover and develop every pupil’s unique talents to enable them to excel.

Heathfield aims to foster:

These values are engendered through four central pillars of Community, Pastoral Care and Boarding, Teaching and Co-Curricular

Objectives for the year

Strategies to achieve the year’s objectives

The strategies to achieve the year’s objectives have included:

Admissions

Day girls, first admitted in 2015-16, are now an established and vital part of the School population with numbers increasing steadily in line with our planned growth of the student roll. They are leading a full part in the life of the school alongside the School’s boarders and have every opportunity to take part in all the activities on offer at Heathfield.

Weekly boarders were admitted for the first time in September 2022 in response to parental demands and an “Introduction to Boarding” for day pupils in Forms 1 and 2 (Year 7 and 8), which allows them to board for the same 2 or 3 nights per week over a period of time, was introduced in the Summer term 2023. Part time boarding, which allows pupils to board for the same 1, 2 or 3 nights per week per term will be introduced in every year group in September 2024.

The Headmistress continues to host prep head visits, and the School hosts prep school curriculum and noncurriculum events at Heathfield, aimed at increasing prep schools’ awareness of what we offer and of our growing academic reputation.

Academic Strategy

During the year, we have continued to push forward with an over-arching strategy to improve our growing academic success at Heathfield, including more intensive individual monitoring of staff and pupils' performances in the classroom as well as monitoring girls' study time and their use of it more closely while providing complementary activities to enhance their learning, in the form of conferences and workshops at the school through to a greater variety of co- curricular activities.

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2023

Our Learning Support Department continues to provide expert help for girls who require additional support in one or several areas, ensuring that Heathfield's outstanding reputation for helping to fulfil the potential of each individual girl through our value added results is supported and enhanced at every level.

Monitoring current pupils

Our individual monitoring of pupils to highlight their academic strengths and weaknesses, and to give them extra guidance where appropriate, is paying dividends in enabling staff to identify early the areas where girls need extra help. Staff can input such vital details about a child’s performance into our monitoring and tracking system within the school’s intranet so that they share their observations with their colleagues and areas of concern quickly become spotted and therefore acted on.

Monitoring also means that our gifted and talented programme for the brightest pupils has become more defined within the school and has encouraged and nurtured academic development in the brightest girls.

Scholarship programme

Our scholarship programme has continued to grow in profile inside and outside the school. The scholarships attract the brightest pupils to Heathfield, thus helping to improve our academic reputation. Regular monitoring to ensure each girl’s potential is fulfilled also helps us to identify potential scholarship candidates from within the school who are able to compete for a scholarship at appropriate times.

Co-Curricular

Similarly, our co-curricular programme was developed to encourage and reflect an emphasis on academics. Making the programme increasingly Sixth Form-led has succeeded in its aim of giving the girls a greater sense of responsibility and helping them to develop leadership and team building qualities.

The initiatives held to highlight and praise the girls’ academic achievements such as special assemblies and the

High Flyer awards are popular with the girls and have a positive effect on the girls’ confidence as they take pride in their achievements.

STRATEGIC REPORT

The following sections of this report constitute the Strategic Report.

REVIEW OF ACHIEVEMENTS AND PEFORMANCE FOR THE YEAR

Academic Achievements

The size of Heathfield ensures every pupil is known individually and enables our dedicated and talented teaching team to engage and motive every pupil. Small class sizes and individual teaching boosts achievement, and our pupils benefit from a 4:1 teacher / pupil ratio. Personalised learning plans and performance monitoring help both staff and pupils to analyse progress.

Academic life of a school is not just the learning that takes place in a classroom but the breadth and depth of activities both in and out of the classroom. Heathfield is renowned for its strong and vibrant creative and dramatic tradition. We are an academically ambitious and rigorous school where we prepare our pupils for careers which have not yet been discovered. Therefore, it is vital that our curriculum is skill based as well as ensuring that every pupil has the relevant academic qualifications to progress onwards to their future goals.

Our 2023 GCSE examinations resulted in successes across a broad range of subjects, with over 40% of all grades awarded at 9-7 with over 60% of grades 9-6. On average, students scored well over 0.5 grades higher

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2023

in every subject when compared to their standardised Value Added Scores.

For our A Level students, after recent ‘lockdown’ years, students showed exceptional determination, resilience and adaptability as their results evidenced their unwavering focus and drive considering they missed out on taking practical GCSE examinations. Around 80% of A Level results were A* to B grades.

Students went on to attending Russell Group universities, leading Arts and Drama colleges and other overseas destinations. As with GCSEs, on average, students scored well over 0.5 grades higher in every subject when compared to their standardised Value Added Scores.

Extra Curriculum Activities:

Sport

Pupils were seventh overall in the ISGA Gymnastics competition and the same girls were second overall at the ISA competition.

In Lacrosse, the Senior team were winners of the Small Schools Invitational Tournament as well as quarter finalists in division 2 of the National Schools’ Lacrosse competition. The U13 team were winners of the Plate Division in the South West Rally. Four students were selected for the Lacrosse Regional Academy.

In Netball, the U15 team were fourth in the Ascot Schools Tournament and the U14 team came third.

In Swimming, at the Ascot Schools competition the school were champions for both the U12 and Senior teams. A Form I pupil won two gold and three silver medals at the Hatfield Level 2 British Qualifying Summer Meet.

In Athletics four students were selected to represent Bracknell at the Berkshire County Championships and one student represented Berkshire at National Championships.

A team of Form I and Form II pupils came third in the Plate Division at the GSA Girls Football Festival.

Music

23 girls passed ABRSM instrumental and singing examinations during the year, with a range of instruments. One LVI pupil received a merit in their Grade 8 piano exam, whilst a pupil in FII pupil received a distinction in her Grade 2 French Horn exam, a Form 4 pupil received a distinction in her Grade 4 Organ exam and two pupils received distinction in their Grade 4 and Grade 5 singing exams.

A number of students took part in the LVS Music Festival and were awarded with a total of 14 medals including five golds for cello, clarinet, harp, flute and classical vocal, with a pupil in Form IV also being awarded the Best Instrumentalist Cup and a pupil in LVI the Best Classical Vocalist Cup too.

LAMDA and Dance

Students took 52 LAMDA examinations between December 2022 and June 2023. 6 of these examinations were at the Higher Level – Grades 6-8 – for which the students also receive UCAS points. A pupil in UVI and another in Form IV achieved Distinction at Grade 8 Musical Theatre. The students achieved 112 UCAS points in total. All 52 LAMDA exam students achieved a Distinction or Merit.

In Dance, students have achieved 100% success in RAD Grade 5, 7 and 8 Ballet Examinations, for which they also achieved UCAS points. Girls also participated in Ballet, Street Dance, Dance GCSE, Tap Dance, Pointework, Acro, Pilates and Yoga classes during the year.

A number of students took part in the LVS Performing Arts Festival, a student in LVI was awarded a Silver Medal for Acting and four Form IV students won the Gold Medal for Quartet Dance Group for their street dance performance. The Dance Group also won the Cup for the Best Small Group in the Festival.

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 GOVERNORS’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2023

Equestrian Events at Heathfield

Heathfield remains very active, encouraging riders and polo players with lessons and coaching available three days a week.

Heathfield polo players took part with great enthusiasm at the SUPA schools' national tournaments at all age and abilities winning the Beginners Division at the Junior Championship and placing second, third and fourth in their divisions at Senior level. There are three polo coaching sessions each week, with levels for the complete beginner, improvers and advanced.

Riders attend the Berkshire riding centre on Wednesday and due to popularity, we now have an advanced group riding on Tuesdays at the Light Cavalry, Honorable Artillery Company, based in Windsor Great Park.

Heathfield has an average of 38 pupils attending polo and/or riding lessons. Classes available are for beginners (completely new to the activity) to advanced jumping classes.

Heathfield continues to attract competent show jumping, dressage and event riders with several pupils' horses at local livery yards to continue their training whilst boarding at school. Many pupils continue with their equestrian disciplines at high levels after their start at Heathfield.

Staff

The Governors wish to express their gratitude to the Headmistress, the Bursar and all other members of the Staff for their continued dedication to the interests of the pupils of Heathfield School.

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

The Governors consider that the School is on a sound financial footing, given the increasing pupil numbers year on year since 2018, and views the future with optimism, despite the challenges of the year due to the economic crisis. At the year end, the school held cash balances of £686,088 (2022: £1,251,222) and investments of £1,501,463 (2022: £1,493,260).

At 31 August 2023 the School had net assets of £12,536,847 (2022: £13,006,738), of which freehold property accounts for £12,741,210 (2022: £13,852,775). This is a vital area of focus for the School as the high quality facilities and living quarters are significant contributing factors in attracting new pupils.

During the year a net cash outflow of £565,134 (2022: outflow £917,402) occurred. Cash from operating activities was a net inflow of £94,360 (2022: inflow £2,575,252) in the year.

As a result of a historic claim in relation to St Mary’s Wantage School, the additional legal and professional costs of £546,222 were incurred and are included in note 3. Excluding these costs, the School made an operational surplus of £436,686 (2022: surplus £1,392,621) in the year, which after depreciation and gains on investments, resulted in a deficit £469,891 (2022: surplus £997,531).

As a registered Charity any surpluses are applied for the benefit of the School.

Reserves Policy

The Governors’ policy is to build up free reserves to meet demands for further expenditure out of annual operating surpluses to equip the School with the up-to-date facilities needed to improve and maintain the standard of educational services and sporting facilities. The Governors are of the opinion that the total reserves on the Income and Expenditure account of £12,536,847 (2022: £13,006,738) are sufficient to meet the school's obligations for the foreseeable future (see note 15 for note on reserves).

The Governors recognise the need to review the reserve levels of the school annually at the year-end as part of

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2023

its medium-term budget planning. The Governors' policy is to generate reserves to provide funds to continue to enhance the educational facilities and services of the School and to fund future projects, whilst maintaining a contingency in the region of £1,000,000. The Governors intend to review the Reserves Policy annually to ensure that this aim can be achieved.

Investment Policy

The Governors' policy is to invest in secure forms of investment that provide a reasonable level of income. The Finance Sub-committee keeps under review the investment risks and rewards.

Going concern accounting Policy

The Governors have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the School to continue as a going concern. The Governors have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the Governors have considered the cost of living pressures on parents and the recession on the School’s forecasts and projections. After making enquiries the Governors have concluded that the School has adequate resources to continue in operational existence for the foreseeable future.

As such the School expect to be able to meet its liabilities as they fall due in the period of at least 12 months from the date of approval of these accounts.

On this basis the Governors have concluded that the School is a going concern. The financial statements do not include any adjustments that would result from the School not being able to meet its liabilities as they fall due.

Future Plans

The construction of a Sixth Form Study and Wellbeing Centre was completed in September 2022. The School is continually improving its facilities with smaller refurbishment projects as well as considering options for future capital plans which may include an additional classroom block, new sports hall and fitness suite and/or staff accommodation.

The School is continuing to raise academic standards and to attract academically able pupils to the School.

PRINCIPAL RISKS AND UNCERTAINTIES

The Governing Body is responsible for the management of the risks faced by Heathfield. Detailed considerations of risk are assessed by senior staff for review by the relevant Sub-Committees and then centrally by the Governing Body. Risk is assessed in three categories; Strategic, Financial and Operational risk. Risks are identified, assessed and controls or mitigations established throughout the year. A formal review of the risk management process is undertaken on a rolling basis throughout each year.

The most significant risk to the charity, and indeed most independent schools, is a significant drop in pupil numbers, which would affect income. This is a matter that receives continuous attention. The risk is compounded by the government legislative changes to business rates relief and the addition of VAT to fees. Identified as significant risks with some mitigations available, this would increase operating costs and almost certainly lead to increased fees, raising the risk of reduced pupil numbers even higher.

The highest costs to Heathfield are staff and pastoral costs which are paid in arrears. Conversely, school fees are received termly in advance resulting in a surplus of working capital. Any cash flow risk which will arise from the commission of any building projects will be reduced by extensive forward planning by the Governors, coupled with significant cash balances held by Heathfield which can be utilised as required.

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2023

Credit risk is the risk of financial loss to Heathfield if a fee payer fails to meet their obligations. Heathfield minimises this risk by taking deposits from each student and monitoring amounts not received on a regular basis.

Health and Safety is always a significant area for risk management. The risks range from fire to personal risks (most notably when away from the School on trips and expeditions). The risks associated with all activities are minimised by thorough planning and risk assessment.

The global economic situation is now the most significant risk and a cause for concern. Increases in inflation, particularly energy and food, have increased the School's operating cost in the current period and will continue to increase over the near-term. The budget for the next financial period has identified these areas where possible. It is not yet clear whether, or to what degree pupils' parents will be affected but it should be noted that the pupil numbers for 2023-24 did not decrease. Regardless, controls have been put in place to mitigate this risk and its possible enduring nature. Governors have concluded that the Going Concern basis remains applicable.

Through the risk management processes established for the School, the Governors are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed. The charity's exposure to risk is reviewed consistently throughout the year.

The key controls used by the Charity include:

STATEMENT OF GOVERNORS' RESPONSBILITIES

The Governors, who are also the Trustees, are responsible for preparing a Governors' Report and 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 year which 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 the financial statements, the Trustees are required to:

The Governors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 GOVERNORS’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2023

irregularities.

So far as each of the Governors are aware at the time the report is approved:

BY ORDER OF THE BOARD

Mr Alex Popplewell Chair of the Governors

Date: 6 August 2024

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HEATHFIELD SCHOOL FOR THE YEAR ENDED 31 AUGUST 2023

Opinion

We have audited the financial statements of Heathfield School (‘the company’) for the year ended 31 August 2023 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 FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is 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.

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HEATHFIELD SCHOOL FOR THE YEAR ENDED 31 AUGUST 2023

Opinions 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 the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the trustees’ annual report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 2, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the audit of the financial statements

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

14

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HEATHFIELD SCHOOL FOR THE YEAR ENDED 31 AUGUST 2023

in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter

15

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HEATHFIELD SCHOOL FOR THE YEAR ENDED 31 AUGUST 2023

3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Shivani Kothari (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

9 Appold Street London EC2A 2AP

Date: 16 August 2024

16

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 STATEMENT OF FINANCIAL ACTIVITIES AND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2023

Notes
INCOME FROM:
Charitable activities
School fees
1a
Donations and grants
1b
Other trading activities
Rental income
1c
Investments
1d
Total income
EXPENDITURE ON:
Raising and managing
funds
2
Charitable activities
2
Total expenditure
Net (losses)/gains on
investments
9
NET (DEFICIT) / SURPLUS
Reconciliation of funds
Fund balances brought
forward at 1 September
15
Fund balances carried
forward at 31 August
15		 2023
Unrestricted
Funds
£
8,516,490
291,312
126,330
62,989
8,997,121
111,721
9,273,551
9,385,272
(81,326)
(469,477)
12,754,218
12,284,741		 2023
Restricted
Funds
£
-
-
-
12,683
12,683
-
-
-
(13,097)
(414)
252,520
252,106		 2023
Total
Funds
£
8,516,490
291,312
126,330
75,672
9,009,804
111,721
9,273,551
9,385,272
(94,423)
(469,891)
13,006,738
12,536,847		 2022
Total
Funds
£
8,471,755
622,297
97,190
55,100
9,246,342
72,710
8,166,301
8,239,011
(9,800)
997,531
12,009,207
13,006,738

All amounts derive from continuing activities.

All gains and losses recognised in the year are included in the Statement of Financial Activities.

17

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 BALANCE SHEET FOR THE YEAR ENDED 31 AUGUST 2023

Notes
FIXED ASSETS
Tangible assets
8
CURRENT ASSETS
Investments
9
Stocks
10
Debtors
11
Cash at bank and in hand
CREDITORS -Amounts falling
due within one year
12
NET CURRENT ASSETS
TOTAL ASSETS LESS
CURRENT LIABILITIES
Creditors
Amounts falling due after more
than one year
13
Provisions for liabilities and
charges
14
Net assets
FUNDS
Restricted funds
15
Unrestricted funds
Income and expenditure account
15
School Funds		 2023
£
1,501,463
34,645
432,396
686,088
2,654,592
(2,167,688)		 2023
£
13,170,121
486,905
13,657,025
(1,116,962)
(3,216)
12,536,847
252,106
12,284,741
12,536,847		 2022
£
593,260
23,186
534,913
1,251,222
2,402,581
(2,037,867)		 2022
£
13,852,774
364,714
14,217,488
(1,205,327)
(5,423)
13,006,738
252,520
12,754,218
13,006,738

Approved by the Board of Governors of Heathfield School on 6 August 2024 and signed on its behalf by

Mr Alex Popplewell - Governor

Mr Steve Melcher - Governor

18

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 AUGUST 2023

2023
Note
£
Net cash inflow from operating activities
(a)
94,360
Cashflows from investing activities
75,672
Interest paid
(46,636)
Purchase of investments
(102,626)
Investments received
-
Payments to acquire tangible fixed assets
(435,904)
Net cash outflow from investing activities
(509,494)
Cashflow from financing activities
Loan repayments
(150,000)
Decrease in cash and cash equivalents in the year
(565,134)
Cash and cash equivalents at beginning of the year
1,251,222
Cash and cash equivalents at end of the year
686,088
Reconciliation of net expenditure to net cash flow from operating activities
2023
£
(469,891)
Adjustments for:
Net losses on investments
94,423
Profit disposal of tangible fixed assets
-
Investment income
(75,672)
Interest paid
46,636
Depreciation charges
368,558
(Increase)/decrease in stock
(11,459)
Decrease in debtors
102,517
Increase in creditors
41,455
Decrease in provisions
(2,207)
Net cash inflow from operating activities
94,360
Net cash:
Balance at
31 August
2022
Cash
Movements
£
£
Cash at bank and in hand
1,251,222
(565,134)
Bank loan
(687,500)
150,000
Net cash
563,722
(415,134)
Investment income and interest received
(a) Net expenditure including endowments		 2022
£
2,575,252
27,581
(72,710)
-
(252,520)
(3,132,505)
(3,430,155)
(62,500)
(917,403)
2,168,625
1,251,222
2022
£
997,531
9,800
(267)
(27,581)
72,710
395,090
1,157
1,086,747
63,109
(23,044)
2,575,252
Balance at 31
August 2023
£
686,088
(537,500)
148,588

19

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

ACCOUNTING POLICIES

Heathfield School Limited is a charitable company, incorporated in England and Wales and limited by guarantee. The address of its principal place of business is given on page 1 and the nature of its operations are set out in the Governors’ Report.

A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below.

(a) Basis of preparation

These financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the revaluation of investments being measured at fair value through income and expenditure within the Statement of Financial Activities.

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charitable Company is a public benefit entity for the purposes of FRS 102 and therefore the Charity also prepared its financial statements in accordance with 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 (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound.

(b) Going concern

The Governors have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the School to continue as a going concern. The Governors have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the Governors have considered the School's forecasts and projections and have taken account of pressures on fee income. After making enquiries the Governors have concluded that there is a reasonable expectation that the School has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the governors continue to adopt the going concern basis for the preparation of the financial statements.

(c) Income

All income is recognised when the School has entitlement to the funds, the receipt is probable and the amount can be measured reliably.

Fees receivable

These represent fees charged to pupils with incidental fees and disbursements disclosed separately and are accounted for in the period in which the service is provided. Fees received in advance of education to be provided in future years are held as liabilities until either taken to income in the term when used or else refunded.

Donations

All monetary donations are included in full in the statement of financial activities when received, provided that there are no donorimposed restrictions as to the timing of the related expenditure, in which case recognition is deferred until the pre-condition has been met. Donations receivable for the general purpose of the Charity are credited to Unrestricted Funds. Donations for purposes restricted by the wishes of the donor are taken to Restricted Funds where these wishes are legally binding on Heathfield School’s Governors.

The value of donated services and gifts in kind provided to the School are recognised at their open market value in the period in which they are receivable as incoming resources, where the benefit to the School can be reliably measured. An equivalent amount is included as expenditure under the relevant heading in the Statement of Financial Activities, except where the gift in kind was a fixed asset in which case the amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the School's policies.

20

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

Grants receivable

Revenue grants, including government grants, are credited as incoming resources when they are receivable provided conditions for receipt have been complied with, unless they relate to a specified future period, in which case they are deferred.

Grants for the purchase of fixed assets are credited to restricted incoming resources when receivable and transferred to unrestricted funds up to the level of expenditure incurred. Depreciation on the fixed assets purchased with such grants is then charged against unrestricted funds.

(d) Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and is classified under the following activity headings:

· Costs of raising funds comprise the finance costs incurred by the School.

· Expenditure on charitable activities includes the costs of the academic and pastoral care provided to the pupils.

Governance costs, which comprise the regulatory costs of running the charity, have been allocated wholly to the charitable activities of the School. All expenditure is inclusive of irrecoverable VAT.

(e) Grant making policy

Bursaries from restricted funds are included as expenditure in the period for which the award is given. Bursaries and scholarships from unrestricted funds towards school fees at school are treated as a reduction in those fees.

(f) Tangible fixed assets

The School prepares a budget for capital expenditure at the start of each academic year which is approved by the Finance Committee.

Depreciation is provided on cost less residual value at the following rates in order to write off assets over their estimated useful lives

Freehold buildings - St Mary’s Theatre and STEM building 2% Freehold buildings - Access road 10% Freehold buildings - Other Not depreciated Freehold buildings - Swimming pool 3⅓% Equipment 10% - 20% Motor vehicles 20%

The Charity holds no inalienable or historic assets.

The policy for depreciating freehold buildings is to provide a charge of 2% on cost less residual value. However, no depreciation has been charged on the main school buildings as an annual impairement review is undertaken. This considers the maintenance programme to keep buildings in good repair, and an annual insurance review to identify any significant issues.

Assets costing more than £1,000 are capitalised and carried in the balance sheet at historical cost. Assets under the course of construction are not depreciated until they are complete and brought into use.

21

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

(g) Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in “net gains/(losses) on investments" in the SOFA.

(h) Stock

Stock is included at the lower of cost and net realisable value.

(i) Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid net of any trade discounts due.

(j) Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

(k) Creditors and provisions

Creditors and provisions are recognised where the School has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

(l) Financial Instruments

The School has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the School's balance sheet when the School becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. See notes 11, 12 and 13 for the debtor and creditor notes.

(m) Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

(n) Pension costs

Retirement benefits to employees of the School are provided by Royal London for teachers and the TPT Retirement Solutions Independent Schools’ Pension Scheme ('ISPS’) for non-teaching staff. Both schemes are a defined contribution

Contributions to the ISPS are expensed in the Statement of Financial Activities. See note 17 for details.

(o) Benefits in kind and gifts

Gifts donated to the school and any services provided by the Governors have been included in the financial statements.

22

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

(p) Operating leases

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

(q) Fund accounting

Unrestricted funds are donations and other incoming resources received or generated for expenditure on the general objectives of the charity.

Restricted funds are created when donations are made either for a particular area or purpose, the use of which is restricted. Expenditure is charged to the Statement of Financial Activities when incurred.

(r) Critical accounting estimates and areas of judgement

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Change in market value is an estimate. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on a regular basis. In the view of the Governors, no assumptions concerning the estimation uncertainty affecting assests and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying values.

1 ANALYSIS OF INCOME

(a) Charitable activities
Fees receivable
Less: bursaries, scholarships and discounts
Summer school income
Business Interruption insurance claim
Registration fees
Retained deposit and other income
Extras and disbursements		 2023
£
8,060,609
(635,180)
7,425,429
442,249
-
23,000
41,355
584,457
8,516,490		 2022
£
7,514,399
(578,795)
6,935,604
396,481
550,000
31,600
1,000
557,070
8,471,755

All bursaries, scholarships and discounts were made to individuals in accordance with the School’s grantmaking policy.

(b) Donations and grants
Donations received		 2023
2023
2023
Unrestricted
Restricted
Total
Funds
Funds
Funds
£
£
£
291,312
-
291,312		 2022
Total
Funds
£
622,297

£365,927 of donations and grants income in 2022 related to unrestricted funds.

23

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

(c)
Other trading activities
2023
2023
2023
Unrestricted
Restricted
Total
Funds
Funds
Funds
£
£
£
Rental income and hire of facilities
126,330
-
126,330
All income from other trading activities in 2022 related to unrestricted funds.
(d)
Investment income
2023
2023
2023
Unrestricted
Restricted
Total
Funds
Funds
Funds
£
£
£
Interest receivable
62,989
12,683
75,672
£44,378 of investment income in 2022 related to unrestricted funds.
2(a)
Analysis of expenditure
2023
Staff costs
Other
Depreciation
Charitable activities
£
£
£
Teaching
3,218,957
689,217
-
Premises
1,086,456
1,402,204
368,558
Support costs (note 2b)
1,120,845
1,387,314
-
Raising and Managing Funds (note 2c)
-
111,721
-
5,426,258
3,590,456
368,558
2022
Staff costs
Other
Depreciation
Charitable activities
£
£
£
Teaching
3,122,263
732,577
-
Premises
963,991
1,519,655
396,046
Support costs (note 2b)
942,612
474,585
-
Raising and Managing Funds (note 2c)
-
72,710
-
5,028,866
2,799,527
396,046
2(b)
Support costs
2023
£
Salaries and National Insurance
1,120,845
Printing, postage and stationery
17,544
Marketing and development
195,540
Computer costs
83,243
Bad debts & stock write off
34,371
Legal & Professional fees
71,422
Non-teachers' CPD
6,800
General expenses
384,520
Governance Costs (note 3)
593,874
2,508,159
2(c)
Raising and Managing Funds
Fundraising
65,085
Interest and charges
46,636
111,721		 2022
Total
Funds
£
97,190
2022
Total
Funds
£
55,100
Total
£
3,908,174
2,857,218
2,508,159
111,721
9,385,272
Total
£
3,854,840
2,879,692
1,417,197
72,710
8,224,439
2022
£
944,851
14,071
105,378
114,028
11,253
84,283
4,867
117,751
20,715
1,417,197
54,849
17,861
72,710

24

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

REGISTERED NUMBER: 00556463
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
3
Governance Costs
Legal & Professional fees
Audit fees
4
Operating Surplus
The operating surplus is stated after charging:
Depreciation and other amounts written off tangible assets
Operating lease charges
Auditor's remuneration - audit fee		 2023
£
569,307
24,567
593,874
Funds
2023
£
368,558
75,143
24,567		 2022
£
-
20,715
20,715
Funds
2022
£
395,090
24,994
20,715

The average monthly number of employees (including staff who are also trustees) during the year was:

Teaching staff
Administration and support
Employment costs
Wages and salaries
Social security costs
Employer's pension contributions
Temporary and agency staff costs
Other		 2023
No.
55
81
136
Total
2023
£
4,355,182
430,261
475,635
102,307
62,873
5,426,258		 2022
No.
52
77
129
Total
2022
£
4,128,615
414,815
451,474
2,239
33,961
5,031,105

Included in the above are termination payments of £23,882 for two individuals (2022: £33,961 three individuals).

Employees earning £60,000 per annum or more received remuneration in the following bands:

2023 2022
No. No.
£60,000 - £69,999 2 3
£70,000 - £79,999 - -
£80,000 - £89,999 1 2
£90,000 - £99,999 - -
£100,000 - £109,999 1 -

The employers pension contributions for the above employees was £40,102 (2022: £41,069).

25

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

6 Key Management Personnel

The charity considers that the key management personnel comprise the governors and the senior leadership team - who are the Headmistress, Deputy Head (Pastoral & Boarding), Assistant Head (Co-curricular), Deputy Head (Academic), Assistant Head (Sixth Form), Assistant Head (Teaching and Learning), Assistant Head (Operations), Bursar & Clerk to the Governors, and the Director of Marketing & Admissions. The total employee benefits including pension costs of the key management personnel of the school were £827,562 (2022: £824,489).

7 Taxation

The charitable company is exempt from corporation tax on its activities.

8 Tangible Fixed Assets

Cost
At 1 September 2022
Additions
Transfer to current assets
Disposals
At 31 August 2023
Depreciation
At 1 September 2022
Charge for the year
Eliminated on disposals
At 31 August 2023
Net Book Value
At 31 August 2023
At 31 August 2022		 Investment
properties
£
750,000
(750,000)
-
-
-
-
-
-
750,000		 Freehold
properties
£
15,058,591
114,914
-
-
15,173,505
2,165,851
266,444
-
2,432,295
12,741,210
12,892,740		 Equipment
£
3,316,050
320,990
-
-
3,637,040
3,106,015
102,114
-
3,208,129
428,911
210,034		 Total
£
19,124,641
435,904
(750,000)
-
18,810,545
5,271,866
368,558
-
5,640,424
13,170,121
13,852,774

The insured value of the Main School (including the Sixth Form Centre and STEM block), Sports Hall, Swimming Pool, St Mary’s Theatre and other buildings is £58,320,000.

All tangible fixed assets are used for direct charitable purposes. The school does not own or have the use of any inalienable or historic assets. No impairment of the freehold property was evident, which has been confirmed by the insurance valuation. The School has an outstanding Coronovirus Business Interruption Loan with Barclays. Security of the loan is held on three seperate residential properties held off the School site.

The School had capital commitments of £nil (2022: £nil) at 31 August 2023.

26

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

9
Investments
At 1 September
Additions
Disposals
Net gains/(losses)
At 31 August
Historical cost		 2023
2023
Investment
Property
Other
-
593,260
1,002,626
-
-
-
(102,626)
8,203
900,000
601,463
900,000
564,555		 2023
Total
£
593,260
1,002,626
-
(94,423)
1,501,463
1,464,555		 2022
Total
£
350,540
252,520
-
(9,800)
593,260
564,555

Of the other investments held £344,056 (2022: £340,740) relates to Fidelity Investments which is listed on the London Stock Exchange. The balance relates to M&G Charibond and Charifund acquired in 2022.

10
Stock
Household and consumable materials
11
Debtors
Tuition fees receivable
Bad debt provision
Other debtors
Prepayments and accrued income
12
Creditors: Amounts falling due within one year
Trade creditors
Loan
Tuition fees in advance (see below)
Other taxes and social security costs
Other creditors
Accruals and deferred income
Total tuition fees in advance brought forwards
Released in year
Received in year
Total tuition fees in advance carried forwards
Repayable in one year or less, or on demand
Repayable in one year or more (see note 13)		 2023
£
34,645
2023
£
196,253
(128,931)
2,057
363,017
432,396
2023
£
366,938
150,000
991,590
168,500
124,659
366,001
2,167,688
2023
£
1,311,827
(1,311,827)
991,590
991,590
991,590
-
991,590		 2022
£
23,186
2022
£
226,397
(70,115)
5,987
372,643
534,912
2022
£
259,631
150,000
1,311,827
102,576
141,511
72,322
2,037,867
2022
£
1,291,158
(1,291,158)
1,311,827
1,311,827
1,311,827
-
1,311,827

27

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

13 Creditors: Amounts falling due after more than one year
Creditors: Amounts falling due after more than one year
Loan
Fee deposits
Fees paid in advance		 2023
£
387,500
658,394
71,068
1,116,962		 2022
£
537,500
667,827
-
1,205,327

In 2021, the school obtained a loan from Barclays Bank plc under the Government's Coronavirus Business Interruption Loan scheme. Interest is payable at Bank of England base rate plus 3.35% from December 2021 and the loan is repayable by November 2026. The amount due in more than five years is £nil (2022: £nil). There is a charge outstanding over properties owned by the School in relation to these loans.

Fee deposits
Repayable in one year or less, or on demand
Repayable between one and two years
Repayable between two and five years
Repayable in five years or more
Total
Fees paid in advance
Repayable in one year or less, or on demand
Repayable between one and two years
Repayable between two and five years
Total
14
Provision for liabilities
Balance at 1 September
Released in year (see note 17)		 75,239
71,139
510,965
76,290
658,394
991,590
71,068
-
71,068
2023
£
5,423
(2,207)
3,216		 75,070
53,539
536,488
77,800
667,827
1,311,827
-
-
-
2022
£
28,467
(23,044)
5,423

28

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

15 Funds
Unrestricted Funds - General
Restricted Funds		 Balance at
31 August
2022
£
12,754,218
252,520		 Income
£
8,997,121
12,683		 Expenditure
£
(9,385,272)
-		 Gains &
Transfers
£
(81,326)
(13,097)		 Balance at
31 August
2023
£
12,284,741
252,106
13,006,738 9,009,804 (9,385,272) (94,423) 12,536,847

Restricted funds relate to St Mary's Wantage Bursary Fund which supports bursaries given to pupils at the School.

16 Analysis of net assets between funds

Analysis of net assets between funds
Tangible fixed assets
Current assets
Current liabilities
Creditors falling due after 1 year
Provisions for liabilities and charges		 Unrestricted
Funds
£
13,170,121
2,402,486
(2,167,688)
(1,116,962)
(3,216)		 Restricted
Funds
£
-
252,106
-
-
-		 2023
Total
Funds
£
13,170,121
2,654,592
(2,167,688)
(1,116,962)
(3,216)		 2022
Total
Funds
£
13,852,775
2,402,580
(2,037,867)
(1,205,327)
(5,423)
12,284,741 252,106 12,536,847 13,006,738

£12,754,218 of net assets in 2022 were represented by unrestricted funds.

29

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

17 Pension obligations

The School employees belong to two principal pension schemes: Royal London Scheme for teaching staff; and TPT Retirement Solutions Independent Schools’ Pension Scheme (ISPS) for non-teaching staff. Both are defined contribution schemes. In addition, a small number of employees belong to TPT Retirement Solutions Growth Plan (TPTGP) defined benefit scheme however this is closed to new members.

TPT Retirement Solutions

The scheme is subject to the funding legislation outlines in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension scheme in the UK.

The scheme is classified as a ‘last-man standing arrangement’. Therefore the company is potentially liable for other participating employers’ obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme of £3,312,000 per annum. This is payable monthly from 1 April 2022 to 31 January 2025 and increases by 3% each on 1st April.

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

Reconciliation of opening and closing provision:
Provision at start of period
Recognised in year
Unwinding of discount factor (interest expense)
Deficit contribution paid
Remeasurements - impact of change in assumptions
Remeasurements – amendments to the contribution schedule
Income and expenditure impact:
Interest expense
Recognised in year
Remeasurements - impact of change in assumptions
Remeasurements – amendments to the contribution schedule		 2023
£
5,423
-
185
(2,360)
(32)
-
~~3,216~~
185
-
(32)
-		 2022
£
28,467
-
162
(5,665)
(239)
(17,302)
~~5,423~~
162
-
(239)
(17,302)

All movements on the pension provision are recognised in the Statement of Financial Activities as staff costs.

30

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

17 Pension obligations continued

The assumed discount rate applied is 6.04% per annum (2022: 4.46%). This rate is the equivalent single discount rate which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

Royal London Scheme

The pension charge for the year includes contributions payable to Royal London of £359,667 (2022: £344,111) and at the year-end £46,168 (2022: £42,193) was accrued in respect of contributions to this scheme.

18 Indemnity insurance

During the year the company purchased insurance for the directors of the school against liabilities arising from negligence in relation to the company as permitted under section 233 of the Companies Act 2006 with the approval of the Charities Commission. £45,607 (2022: £36,996) was paid for an all risks combined liability insurance policy. Included in this was public liability insurance and professional indemnity insurance relating to the trustees.

19 Company limited by guarantee

As the company is limited by guarantee, in the event of winding up the members will be required to pay £1.

20 Related party transactions

None of the trustees received any remuneration or reimbursed expenses for their role as trustee during the current or previous year.

21 Controlling interest

The company is controlled by its Board of Governors.

22 Operating lease commitments

At 31 August 2023 the school had total commitments under non-cancellable operating leases falling due as set out below:

Due within:
Less than one year
Between one and five years		 2023
£
24,097
64,879
88,976		 2022
£
26,249
27,389
53,638

31