PAPPLEWICK EDUCATIONAL TRUST LIMITED (BY GUARANTEE) FINANCIAL STATEMENTS 31ST AUGUST 2024 Registered Company Number: 00826017 Registered Charity Number: 309087
PAPPLEWICK EDUCATIONAL TRUST LIMrrED (BY GUARANTEE) FINANCIAL STATEMENTS 31ST AUGUST 2024 Contents Page Notice of Annual General Meeting Report of the Council of Management Report of the auditor Statement of financial activities Balance sheet Cash flow statement Notes to the financial statements 10 11-20
PAPPLEWICK EDUCATIONAL TRUST LIMrrED (BY GUARANTEE) NOTICE OF MEETING NOTICE IS HEREBY GIVEN that the fifty-ninth Annual General Meeting of the company will be held at Papplewick School, Windsor Road, Ascot, Berkshire SL5 7LH at 11.00am on the twelfth day of March 2025 for the following purposes: To receive and consider the financial statements for the year ended 31st August 2024, together with the reports of the Council of Management and the auditors thereon. To re*lect three members to the Council of Management. To re-appoint Jacob Cavenagh & Skeet as auditors and to authorise the Council of Management to fix their remuneration. To transact any other business which, under the company's Articles of Association, may be transacted at an Ordinary General Meeting. Dated this twenty-seventh day of November 2024 S G Burrows Secretary Papplewick School Windsor Road Ascot Berkshire SL5 7LH A member entitled to attend and vote at this meeting may appoint a proxy to attend and vote for him or herself. and such proxy need not be a member of the company. Such notice of appointment of proxy must be lodged at the registered office not later than 48 hours before the meeting. Page 1
PAPPLEWICK EDUCATIONAL TRUST LIMrrED (BY GUARANTEE) REPORT OF THE COUNCIL OF MANAGEMENT TO THE MEMBERS The Council of Management hereby presents its Annual Report and Strategic Reportfor the year ended 31 Augusl 2024 under the Charities Act 2011. together with audited financial statements for the year, and confimis that the latter comply with the requirements of the Act, the Charities Stalemenl of Recommended Praclice (Charities SORP (FRS 102)) and the Financial Reporting Standard 102 IFRS 102). The Annual Report serves the purpose of both a Trustees, Report and a Directors, Report under company law. REFERENCE AND ADMINISTRATIVE INFORMATION Papplewick Educational Trust Limited was formed in 1964 as a company limited by guarantee. It is a charity, with the registered number 309087. Governors The Governors of the School are also the charity's trustees. The Govemors who served during the year were: Council of Management A A M Try LL (Chair) JPCFrosl A L Lawson (appointed 30 April 2024) TGFLord A R McGregor Revd Dr B G McNair Scott Mrs S L Rollings S D Walker Secretary S G Burrows Professlonal advlsers and key personnel The Headmaster Mr T W Bunbury 8A Universty College Durham, PGCE The Bursar Mr S G Burrows FCA Principal and Papplewick School registered office Windsor Road address Ascot Berkshire SL5 7LH Solicitors Narrow Quay House Narrow Quay Bristol BS14QA Auditor Jacob Cavenagh & Skeet 5 Robin Hood Lane Sutton Surrey SM12SW Bankers Lloyds Bank plc 10 High Street Bracknell Berkshire RG12 1 BT The key management personnel are the members of the Council of Management, the Headmaster and the Bursar. STRUCTURE, GOVERNANCE AND MANAGEMENT The charity's objects. powers and constitution are all set out in its Memorandum and Articles of Association which are dated 4th November 1964. Recrultment and tralning of Govemors The Charity's elected Governors are appointed at the termly meeting of the Council of Management based on a recommendation from the Chairman of Govemors having taken into account eligibilty, personal competence, specialist skills and local availability of the individual concerned. In accordance with new regulations, the training policy in place for Governors is kept under rolling review. Organisatlon The Council of Management determines the general policy of the school. The day lo day management of the school is delegated to the Headmaster and the Bursar. The directors of the company are the charity's trustees and they form the Council of Management of the school. The Council of Management comprises a minimum of 5 and a maximum of 15 Governors. At the AGM each year, one third of the Council of Management retires from office. The remuneration of the key management personnel is set by the Council of Management at their Summer Term meeting each year. Page 2
PAPPLEWICK EDUCATIONAL TRUST LIMrrED (BY GUARANTEE) REPORT OF THE COUNCIL OF MANAGEMENT TO THE MEMBERS (continued) Council Members The current Council of Management is as shown at the beginning of this pOrt. Mr Lawson, Mr Frost and Mr Walker retire by rotalion and, being eligible, offer themsefves for reelection. Statement of Trustees. Responsibilities The trustees (who are also directors of Papplewick Educational Trust Limited for the purposes of company law) are responsible for preparing the Trustees. 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 that 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 charitsble company for that period. In preparing these financial statements, the trustees are required to= select suitsble accounting policies and apply them consistently. observe the methods and principles in the Charities SORP. make judgements and estimates that are reasonable and prudent" state whether applicable UK Accounting Standards have been followed. subject to any material departures disclosed and explained in the financial statements- prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charitable company will continue its operations. The trustees are responsible for keeping proper accounting records which 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 Ihe Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention of fraud and other iegUlaties. OBJECTIVES AND AIMS The charity's aim is the provision of education for boarding and day students within an environment where each pupil can achieve his potential. Reserves policy The Council of Management has established a general reserve policy to afford some protection to Ihe school and its charitsble programme and to provide time to adjust to changing financial circumstances. The policy is to continue building up reserves by means of annual operating surpluses and judicious management, supplemented by appeals from time to time. The Council of Management has continued to keep the need for overdraft facillties under review to ensure that, in the absence of free reserves. they remain adequate to o)ver the school's working capital requirements. Investment policy The School holds cash assets to fund operational or capital expenditure within a foreseeable timeframe. As such, capital volatility must be minimised and cash assets must therefore be hekfj in cash or near cash investments denominated in sterling. Disclosure of information to auditors To Ihe knowledge and belief of the Council of Management, Ihere is no relevant information that the company's auditors are not aware of. The Council of Management has taken all steps necessary to ensure it is aware of any relevant information. and to establish that the company's auditors are aware of any such information. Auditors A resolution to re-appoint Jacob Cavenagh & Skeet will be put to the members at the Annual General Meeting. Page 3
PAPPLEWICK EDUCATIONAL TRUST LIMrrED (BY GUARANTEE) REPORT OF THE COUNCIL OF MANAGEMENT TO THE MEMBERS {continued) STRATEGIC REPORT Objectives for the year This year the focus continued to be on the education and academic perforniance of students as well as on maintaining the involvement of pupils in Èxtra-curricular activities. The school made general improvements to all the facilities available to the students. Attention was given to maintaining the expertise of teaching staff, as well as to succession planning and staff development. Strategies to achieve the year's objectives These included developments to the curriculum. the ongoing provision of pastoral care to all students and efforts to maintain good relationships with parents. Ail staff at the school work very hard to ensure that pupils develop Iheir academic, sporting, artistic, musical and social skills. This helps students to fulfil their potential, thereby building self- confidence and inculcating a desire to help the wider community. Our bursaries and scholarship programme continues to make awards available to deserving students, and there has been a further development of links with other schools including the granting of wider access to our facilities. Achievements and Perfonnance The School continues lo strengthen its financial resources in order to meet the economic challenges that may lie ahead. The trustees have complied with their duty in Section 4 of the Charilies Act 2006 to have due regard to the public benefit guidance published by the Charity Commission. The charity is pleased to have provided the education for around 220 pupils per term this year. Demand for the school continues to be strong and the school has been successful in maintaining its high academic performance. In terms of its wider responsibilities, the school's charitable programme has included in the recent past: providing means tested bursaries of £188.659 or 2.70/0 of gross fees during the course of the academic year., the provision of its swimming facilities lo a local primary school when requested. periodic visits by the pupils to a local day care centre for the elderfy. and singing by the choir at local events on other occasions: encouraging links wilh local state schools through sports fixtures and other activities. the provision of educational resources on its website with open access to all. a pen pal programme raising money for disadvantsged children in Nigeria- holding an annual sponsored walk for pupils. their parents and friends to raise money for charity; supporting other charities through weekly collections in chapel and other fund raising events,. donating musical instruments, text books, surplus school clothing and other equipment to deserving local and international causes. Fundraising The school's operating income is supplemented by donations from parents and former pupils. The school does not employ a professional ndraiser and does not engage in unreasonably intrusive or persistent fundraising activities. No complaints have been received about the schcM)I's fundraising practices Financial Review Detsils of the school's net income of £828.754 (2023: net income of £568.071) are shown in the Statement of Financial Activities. The school had total funds of £11,441,461 {2023- £10,612,707) at the end of the reporting period of which £85,068 {2023= £95,917) are restricted and not available for the general purposes of the school. Most of the general funds of £11,356,393 {2023: £10,516,790) support fixed assets and could only be realised by the disposal of those fixed assets. The fixed assets all facilitate the school's charitsble actNlties, and the level of reserves is consistent with the school's reserves tx)licy. Page 4
PAPPLEWICK EDUCATIONAL TRUST LIMITED (BY GUARANTEE) REPORT OF THE COUNCIL OF MANAGEMENT TO THE MEMBERS (continued) Principal risks and uncertainties The Council of Management is responsible for the management of risk within the school. Detailed consideration of all risk is delegated to the Headmaster, the Bursar, the Senior Management Team and the Health & Safety Committee. Risks are identified, assessed and controls established throughout the year. A formal review of the school's risk management processes is undertaken on a periodic basis. The main risks that the Governors have identified and the plans to manage those risks are.. Reputation.. The school's success is built on ils reputation for the education and well-being of our pupils. We manage this risk through safeguarding policies, staff recruilmenl policies, pastoral support for both pupils and staff and active identification and resolution of health and safety related issues. Our ability to continue is reliant on pupil fees and the ability to pay bills as they fall due. This risk is managed by rnarketing activity, having a reputation for academic excellence, and active cash-flow management and cost control. This risk is being given particular focus at the current time as we assess what the impact of the introduction of VAT on school fees will have on the School. Curriculum: Academic exllenCe requifes the most able teachers with state of the art facilities delivering the curriculum to able sludents. We manage this risk by combining attractive salaries, on-going investment in our estate and an approach to enrolment that works with supportive parents whose children have an appetite for learning and a bursary scheme that recognises pupil achievement and aptitude. The political environment in the UK is changeable, and sometimes can become hostile towards the Indèpendent Schools sector. The Council of Management remain conscious of this at all times, and the School ensures that through its actions it continues to justify its charitable status. In order to protect itself from any potential negative financlal impact caused by the political environment, the School targets ever stronger financial resources. Through these risk management processes the Council of Management is satisfied that the major risks identified have been adequately mitigated where necessary in order to rninimise any impact they may have on the school in the future. It is recognised that systems only provide reasonable but not absolute assurance thal major risks have been adequately managed. Finance: Political Plans for the Future The future plans of the school include: maintaining the school roll at around existing levels., mainlaining the current high standards of academic achievernent., maintaining the current high levels of pastoral support for the students; continuing to balance academic achievement with a curriculum allowing full scope for the development of sporting, artistlc, rnUSlC31 and social skills. continuing to offer means-tested bursaries in order lo widen access to Ihe school; continuing to byild links with other schools, organisations and the local community continuing to develop the school's buildings and facilities. The Report of the Council of Management and the Strategic Report were signed on behalf of Ihe Council. Registered office Papplewick School Windsor Road Ascot Berkshire SL5 7LH AAMTryLL Chair of Govemors Dated this enty-SeVenth day of November 2D24 Page 5
REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF PAPPLEWICK EDUCATIONAL TRUST LIMrrED (BY GUARANTEE) Opinion We have audited the financial statements of Papplewick Educational Trust Limited Ilhe 'charity'} for the year ended 31 August 2024, which comprise the Statement of Financial Activities, the Balance Sheet. the Statement of Cash Flows and the notes lo the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Stsndard 102 The Financial Repothng Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practsce). In our opinion the financial statements- give a true and fair view of the state of the charitsble company's affairs as at 31 August 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounling Practice; and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with Inlemalional Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those stsndards are further described in the Auditorfs 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 govemors, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, we have not identified any material UnrtaIntieS relating lo events or conditions that, individually or collectively, may cast significant doubt on the Charity's ability to continue as a going concern for a period of al least 12 months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the govemors wtth respect to going concem are described in the relevant seclions of this report. Other information The other information comprises the information included in the annual rert, induding the govemors, report, other than the financial statements and our auditorfs report thereon. The govemors are reswnsible 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 othefwise explicilly slated in our report. we do not express any fomi of assurance conclusion thereon. Our responsibility is to read the other infonnation and, in doing so, consider whether the other infomialion is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstsled. If we identify such material inconsistencies or apparent material misstatemenls, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other infomation, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of our audit= the infomiation given in the Trustees. Report. which includes the directors, report and the strategic report prepared for the purposes of company law, for the financial year for which the financial slatements are prepared is consistent with the financial slatements- and the strategic report and the director5. report included within the Trustees. Report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit. we have not identified material misstatements in the directors. report included with the governors. report. Page 6
REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF PAPPLEWICK EDUCATIONAL TRUST LIMITED (BY GUARANTEE) 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.. adequate accounting records have not been kept, or retums adequate for our audit have not been received from branches not visited by us- or the financial statements are not in agreement with the accounting records and retums., or certain disclosures of govemors. remuneration specified by law are not made: or we have not received all the infomation and explanations we require for our audit Responsibilities of governors As explained more fully in Ihe govemors, responsibilities statement set out on page 3, the governors, (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 intemal control as the governors. determine is necessary to enable the preparation of financial statements that are free from material misstslement, whether due to fraud or error. In preparing the financial slatements, the govemors. are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concem and using the going concem basis of accounting unless the governors, either intend to liquidate the company or to cease operalions, or have no realistic altemative 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 misslalement, whether due to fraud or error, and to issue an auditorfs report Ihat indudes our opinion. Reasonable assurance is a high level of assurance. bul is nol 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 tsken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, iluding fraud is detailed below. Based on our understanding of the charity. we identified that the principal risks of non-compliance with laws and regulations related to employment and financial reporting legislation and we considered the extent to which non-complian might have a malerial effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial ststements such as the Companies Act 2006 and Charities Act 2011. We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management, considering the inlemal controls in place and discussion amongsl the engagement team. We determined that the principal risks were related to management bias in accounting estimatès, management override of controls and presentation of separately disdosed items. In response to the risks identified we design procedures which included, but were not limited to.. challenging significant accounting estimates, identifying and testing journal entries. reviewing governors, meeting minutes and agreeing financial 5tstement disdosures to underlying supporting documentation. There are inherent limitations in the audit procedures dèscribed aVe. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberats concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at- http.'Ilwww.frc.org.uklauditorsresponsibilities. This description forms part of our auditofs report. Use of our report This report is made solely to the charitable companys members. as a bo(ly, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and regulations made under thal Acl. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required lo stste lo Ihem in an auditors, report and for no other purpose. To the fullest ext nt permitted by law, we do not accepi or assume responsibility to anyone other than the charitable company and its membe as body, for our dit work, for this report, or for the opinions we have fomied. Mlrlam Hickson FCA (Senior Statutory Auditor) For and on behalf of Jacob Cavenagh & Skeet Statutory Auditor Chartered Accountsnts Z 7 November 2024 5 Robin Hood Lane Sutton. Surrey, SM12SW Page 7
PAPPLEWICK EDUCATIONAL TRUST LIMrrED {BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31ST AUGUST 2024 Unrestricted Restricted Total Unrestricted Restricted Total Funds Funds 2024 Funds Funds 2023 Note INCOME FROM Charitable activities: School fees Other educational income 3 6.323,463 10,300 6.323.463 5,932,411 10.300 17,079 5,932,411 11,079 Other trading activities 5,481 5.481 Investments Interest from UK bank accounts 165,033 165,033 85, 873 85, 873 Donations 145,094 25.700 170,794 73, 191 26,170 99,361 Other income Sundry income 114485 114485 Total income 6 763 856 25 700 6 789 556 6 199 046 26 170 6 225 216 EXPENDITURE ON: Charitable activities: School and grant making 5 924 253 36 549 5 960 802 5 629 174 27 971 5 657 145 Total expenditure 5 5924253 36 549 5 960 802 5 629 174 27 971 5 657 145 Net income for the year 15, 16 839,603 (10.849) 828.754 569.872 (1,801) 568,077 Transfers Net movement in funds 839.603 (10.849) 828.754 569.872 (1.801) 568.071 Reconciliation of funds Funds balanS brought forward 10 516 790 95 917 10 612 707 9 946 918 97 718 10 044 636 Funds balances carried forward 11 There were no discontinued or acquired activities during the year. Page 8
PAPPLEWICK EDUCATIONAL TRUST LIMITED (BY GUARANTEE) BALANCE SHEET AS AT 31ST AUGUST 2024 2024 2023 Note Fixed assets Tangible assets 8,182,111 8,370.723 Current assets Debtors Investments Cash at bank and in hand 1,499,131 10 4,750,690 838 085 7,087,906 1,219,503 3,703,235 993 209 5,915,947 Creditors.. amounts falling due within one year 12 3 165565 3 250 569 Net current assets 3 922 341 2 665 378 Total assets less current liabilities 12,104,452 11,036,101 Creditors.. Amounts falling due after more than one year 13 ( 554,991) ( 275,394) Provisions for Ilabilitles 14 108 000) 148 000) Net assets Funds Unrestricted funds Restricted funds Total funds 15 16 11,356,393 10,516,790 The financial statements were approved on 27 November 2024 and signed by: MrAAMTryLL Chair of Governors Company Number: 00826017 Page 9
PAPPLEWICK EDUCATIONAL TRUST LIMrrED (BY GUARANTEE) CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST AUGUST 2024 2024 2023 Cash provided from operating activities {see below) 478,338 667,770 Cash flows from investing activities Interest received Increase in cash on deposit Payments to acquire tangible fixed assets 165.033 (1,047.455) 236 585) 85,873 (1,184,579) (653 398) Cash used In investing activities {1,119,007) (1.752,104) Cash flows from financing activities {Decreaselincrease in Fees in Advance 547,890 {Decrease)lincrease in Confirmations of Entry 62 345) Cash (used in)Iprovlded for financing activities Net cash {outtlow)linflow {155,124) (1,138,617) Cash and cash equlvalents brought forward 993 209 2 131826 Cash and cash equivalents carrled forward Cash flows from operating activlties 2024 2023 Net income Interest received shown in investing activits'es Depreciation (Increase) in debtors (Decrease)Ilncrease in creditors (Decrease)Ilncrease in provisions Cash provided from operating actlvltles 828,754 (165,033) 425,197 (279,628) (290,952) ( 40 000) 568,071 (85,873) 381,341 (190,900) (9,119) Page 10
PAPPLEWICK EDUCATIONAL TRUST LIMITED (BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2024 ACCOUNTING POLICIES The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows: Accounting convention The financial statements have been prepared under the Companies Act 2006 and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102). The financial statements are drawn up on the historical cost basis of accounting. There are no material uncertainties about the charity's ability to continue in operation. Papplewick Educational Trust Limited meets the definition of a public benefit entity under FRS 102. The accounts are presented in sterling rounded to the nearest pound. Depreciation Depreciation is provided on all tangible fixed assets on a straight line basis, at rates calculated to write off the cost less estimated residual value of the asset over its expected useful Srfe as follows: Leasehold propety over 50 years Furniture and equipment 15 % straight line Computers 33 113 % straight line Motor vehicles 20 % straight line Leasing Payments in respect of operating lease agreements (being agreements not giving rights approximating to ownership) have been charged to expenditure on a straight line basis. Fees receivable, extras chargeable and interest receivable These are all accounted for on a receivable basis. Donations Donations and gift aid donations are accounted forwhen received. Income tax recoverable is accounted for on a receivable basis. Advance fees scheme The school on occasion offers parents the opportunity to pay up to five years tuition fees in advance in accordance with a written contract. The amount received does not accrue interest. Raising funds This comprises all expenditure related to obtaining and maintaining funding of the charity. including school fees receivable. Page 11
PAPPLEWICK EDUCATIONAL TRUST LIMITED (BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 ST AUGUST 2024 (continued) ACCOUNTING POLICIES (continued) Charitable expenditure This comprises all expenditure directly related to the objects of the charity. Expenditure is accounted for on an accruals basis. Governance costs This comprises all the expenditure of running the charity. including strategic planning for future development, also external audit, any legal advi for the Govemors. and all the costs of complying with constitutional and statutory requirements. Pension costs The company participates in a multi-employer defined benefit pension scheme, the Teachers, Superannuation Scheme, the assets of which are held separately from those of the company in a fund independently administered by the Teachers, Pensions Scheme. The company also contributes to money purchase personal pension plans held by individual employees. Contributions are charged to the statement of financial activities for the period in which they are payable to the scheme. Investments Current asset investments represent cash on deposit held for investment purposes rather than to meet short-term cash commitments as they fall due. Debtors Fee debtors and other debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid. Cash at bank Cash at bank includes cash and short term highly liquid investments with a maturity of twelve months or less from the date of opening of the deposit. Creditors and provisions Creditors and provisions are recognised where the charity has a present obligation arising 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 recognised at their settlement amount. Financial instruments The charity only has financial assets and liabiltties of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured using amortised cost on the effective interest rate method. NET INCOME 2024 2023 This is stated after charging: Depreciation Auditors, remuneration: Audit fees Non-audit fees 425,197 381.341 8,160 7.500 Page 12
PAPPLEWICK EDUCATIONAL TRUST LIMITED (BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2024 (continued) SCHOOL FEES 2024 2023 The School fee income comprised Gross fees Less- Total bursaries and scholarships 7,051,849 6,571,685 731 866) ( 643 110) 6.319,983 5.928.575 Income from music tuition OTHER INCOME 2024 2023 Other educational and charitable Entrance and registration fees Courses and sub lettings 9,500 800 10,179 900 EXPENDITURE Total 2024 Total 2023 Staff costs Other costs Dep'n Charltable activities Teaching costs Welfare Premises 2,747,898 165,159 280,494 286,899 731,667 549,108 3,034,797 2,877,338 896,826 769,710 829,602 909,276 Support costs of schooling: Salaries and pensions Depreciation Printing, postage and stationery Bad debts Professional fees Motor and travel Insurance Other support costs Governance costs Total support costs 398,591 398,591 425,197 425,197 17,289 4,782 72,396 37,777 25,045 160,587 385,660 381,341 23,323 2,779 60,867 37,153 22,933 139,415 17,289 4,782 72,396 37,777 25,045 160,587 410,717 327,114 425,197 1,163,028 1,072,850 Grants, awards and prizes (see below) Total charitable expenditure Grants, awards and prizes were all awarded to individuals. Page 13
PAPPLEWICK EDUCATIONAL TRUST LIMrrED (BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE Y&4R ENDED 31 ST AUGUST 2024 (continued) STAFF COSTS 2024 2023 Salaries and wages Social security costs Employers contribution to defined contribution pension schemes Employers contribution to multi-employer defined benefit scheme 2,751,020 299,467 72.337 2,660,206 277,288 58,730 419035 The average number of employees during the year was made up as follows.. 2024 2023 Teaching staff General. office and domestic 37 41 36 39 The number of employees whose emoluments amounted to over £60,000 in the year was as follows: 2024 No. 2023 No. £60,000 - £70,000 £70,000 - £80,000 £80,000 - £90,000 £100,000- £110,000 £120,000- £130,000 £130,000- £140,000 £140,000- £150,000 Of the above employees, eight are currently accruing benefits under a defined benefit pension scheme and one under a money purchase pension scheme. No remuneration was paid to any member of the Council of Management during the year. The employee benefits of the key management personnel were £358.072 (2023: £340,939). 2 (2023: 3) govemors claimed for travelling expenses during the year totalling £75 (2023: £377). TAXATION The company is registered wtth the Charity Commissioners as an educational charity (registered number 309087) and is exempt from taxation in accordance with Part 10 of the Income Tax Act 2007. Page 14
PAPPLEWICK EDUCATIONAL TRUST LIMrrED (BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 ST AUGUST 2024 (continued) TANGIBLE FIXED ASSETS Furniture Long Work and equip- Motor leasehold in Computers ment vehicles property Progress Total Cost At 1 st September 2023 Additions Disposalsrrransfers At 31 st August 2024 340,776 1,034,539 121,346 10,504,739 233,468 12,234,868 42,130 40,654 104,463 49,338 236,585 130632 152 174 (282 806) 382 906 1205 825 121346 10 761376 12471453 Depreciation At 1st September 2023 Released on disposal Provided for the year At 31st August 2024 293,097 581,611 93,014 2,896.423 3,864,145 51256 146 755 10 842 344353 728366 103856 3112767 425 197 4 289 342 Net book value At 31st August 2024 At 31st August 2023 The School extended the leasehold from the Crown on tts premises back up to a period of 99 years with effect from 9 December 2011. The cost of the extension was £1,800.000. DEBTORS 2024 2023 Fees and extras receivable Prepayments Other debtors 1,378,032 120,950 149 1,114.332 80,872 10 INVESTMENTS 2024 2023 General school funds on deposit Page 15
PAPPLEWICK EDUCATIONAL TRUST LIMITED (BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2024 (continued) 11 CASH AT BANK AND IN HAND 2024 2023 General School Funds Papplewick Bursary Fund Papplewick Development Fund 830,605 4,975 940,539 12 CREDITORS: Amounts falling due within one year 2024 2023 Fees billed in advance Advance fees scheme Trade creditors Other creditors Taxation and social security Accruals 2,131,667 272.977 248,374 341.765 66,979 103 803 2,043,733 295,845 620,789 66,233 223 969 13 CREDITORS.. Amounts falling due after more than one year 2024 2023 Confirmations of entry Advance Fees Scheme 280,078 274913 275,394 14 PROVISIONS FOR LIABILITIES AND CHARGES Building & Grounds Expenses Legal Fees Total At 1st September 2023 Provisions provided in the year Provisions utilised in the year At 31st August 2024 22,500 32,500 22 500) 125,500 10,000 (60 000) 148,000 42,500 182 500) The provision for Legal Fees covers the estimated costs that probably will be incurred in the future, in respect of existing legal matters. The provision for Building and Grounds Expenses covers the estimated cost of nesSary work or expenditure which will probably be required in the future, arising from past events. Page 16
PAPPLEWICK EDUCATIONAL TRUST LIMrrED (BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 ST AUGUST 2024 (continued) 15 UNRESTRICTED FUNDS- 2023 Other General Funds General Total Income Expenditure Net incomel(expenditure) Transfers Balance brought forward Balance carried forward 73,191 6,125,855 6,199,046 73 209) 5 555 965) (5 629 174) 18) 569,890 569,872 (37,500) 37,500 183 681 9 763 237 9 946 918 UNRESTRICTED FUNDS. 2024 Other General Funds General Total Income Expenditure Net income Transfers Balance brought forward Balance carried forward 145,094 6.618,762 6,763,856 98 082) (5 826 171) (5 924 253) 47,012 792.591 839,603 146 163 10 370 627 10 516 790 Other General Funds comprise funds set aside by the Governors to fund specific projects in different areas of the school. 16 RESTRICTED FUNDS - 2023 Papplewick Daphne Development Watson Fund Fund Prlze and Tour Funds Total Income Expenditure Net incomel(expendlture) Transfers Balance brought forward Balance carried forward 50 26,120 26,170 2 575) (25 216) (27 971) { 2,525) 904 (1,801) ( 180) RESTRICTED FUNDS- 2024 Papplewick Daphne Development Watson Fund Fund Prize and Tour Funds Total Income Expenditure Net incomel(expenditure) Transfers Balance brought forward Balance carried forward 100 25,600 25,700 36 549) (5,020) (5,664) (10,849) ( 165) Page 17
PAPPLEWICK EDUCATIONAL TRUST LIMITED (BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 ST AUGUST 2024 (continued) 16 RESTRICTED FUNDS (continued) The Papplewick Development Fund has been estsblished in order to facilitate the raising of funds for future improvements to the school's premises and for bursary awards. The Daphne Watson Fund has been created by a donation with the purpose of assisting pupils with the cost of their music tuition whilst at the school. Prize and Tour Funds are accumulated in order to provide annual prizes for achievement in specified areas of the school and to contribute to the cost of sporting and cultural tours. 17 ANALYSIS OF NET ASSETS BETWEEN FUNDS- 2023 Cash and Bank Other assets and liabilities Tangible fixed assets Investments Total Unrestricted funds Restricted funds 8,370,723 3,703,235 897,292 (2,454,460) 10,516,790 ANALYSIS OF NET ASSETS BETWEEN FUNDS- 2024 Cash and Bank Other assets and Tangible fixed assets Investments Total Unrestricted funds Restricted funds 8,182,111 4,750,690 753,017 {2,329,425) 11,356,393 18 CONSTITUTION OF THE COMPANY The company is incorporated in England & Wales and is limited by guarantee with its registered offi at Papplewick School, Windsor Road, Ascot, Berkshire SL5 7LH. Each member is under covenant to contribute a sum not exceeding £1 in rtain circumstances as set out in clause 6 of the Memorandum of Association. The number of members is eight (2023: seven). Page 18
PAPPLEWICK EDUCATIONAL TRUST LIMITED (BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 ST AUGUST 2024 {continued) 19 COMMITMENTS UNDER OPERATING LEASES The total future minimum payments under non-cancellable operating leases are as follows.. 2024 2023 Within one year Between two and five years 38.464 38,477 Operating lease payments recognised as an expense this year were £38.464 (2023.. £38,477). 20 RELATED PARTY TRANSACTIONS A Governor, T G F Lord, is also a director of the Berkshire Riding Cenlre Limited and £4,386 was paid to this company by the school for riding lessons for boys during the year (2023: £5,814). 21 CAPITAL COMMITMENTS There were outstanding capital commitments at the year end totalling £nil (2023: £nil). 22 PENSION COMMITMENTS Introduction The School participates in the Teachers, Pension Scheme (England and Wales) ('the TPS"), for its teaching staff. This is a multi-employer defined benefits pension scheme and it is not possible or appropriate to consistently identify the liabilities of the TPS which are attributable to the School. The School accounts for this scheme as if it were a defined contribution scheme. The pension charge for the year includes contributions payable to the TPS of £481,444 (2023.. £419,035). The Teachers, Pension Scheme (TPS or scheme) is a statutory, unfunded, defined benefit occupational scheme, governed by the Teachers, Pensions Regulations 2010 (as amended), and the Teachers, Pension Scheme Regulations 2014 (as amended). These regulations apply to teachers in schools and other educational establishments, including academies, in England and Wales that are maintained by local authorities. In addition, teachers in many independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher education may be eligible for membership. Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS. The teachers. pension budgeting and valuatlon account Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and Public Service Pensions Act (2013) and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and Page 19
PAPPLEWICK EDUCATIONAL TRUST LIMrrED (BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2024 (continued) 22 PENSION COMMITMENTS (continued) members contribute on a 'pay as you go 'basis - contributions from members, along with those made by employers. are credited to the Exchequer under arrangements governed by the above Acts. The Teachers, Pensions Regulations 2010 require an annual account. the Teachers, Pension Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pension increases). From 1 April 2001, the Account has been credited with a real rate of return. which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return. Valuation of the teachers. pension scheme The latest valuation of the Teachers. Pension Scheme took place in line with directions issued by HM Treasury and using membership data as at 31 March 2016. As a result of this valuation TPS employers paid an increased contribution rate of 23.68'/0 from 1 September 2019 (this includes the administration levy of 0.8 /0). The timing of the implementation was to align its introduction with employers, budget planning cycles. Until that time. employers had paid a rate of 16.480/0. Scheme changes The arrangements for a reformed Teachers, Pension Scheme. in line with the recommendations made by Lord Hutton, in particular the introduction of a Career Average Revalued Earnings (CARE) scheme, were implemented from 1 April 2015. In December 2018. the Court of Appeal held that transitional protection provisions contained in the reformed judicial and firefighter pension schemes. introduced as part of public service pension reforms in 2015, gave rise to direct age discrimination and were therefore unlawful. The Supreme Court, in a decision made in June 2019, rejected the Govemment's application for permission to appeal the Court of Appeal's ruling. The case will now be referred to an Employment Tribunal for a decision regarding the remedy that will need to be offered to those members of the two schemes who were the subject of the age discrimination. HM Treasury are clear that the ruling has implications for the other public service schemes, including the Teachers, Pension Scheme. Those implications have been considered in the latest scheme valuation. which has been based on April 2020 data. This scheme valuation has determined that the employer contribution rate should increase by 50/0 from 23.680/0 to 28.680/0. This new rate is effective from April 2024. The School also participated in six defined contribution pension schemes for certain members of staff (2023: six members). The assets of these schemes are held separately from those of the School in independently administered funds. The School contributes between 8.0 % 28.680/0 of pensionable salary. The pension cost relating to these schemes for the year was £61,386 {2023: £50,955). The School also makes contributions to a NEST defined contribution scheme for other non-teaching staff. The assets of these are held separately to Ihose of the School in independently administered funds. The pension cost relating to these schemes for the year was £10,951 (2023: £7.775). Page 20