Downe House Trust Annual report and financial statements for the year ended 31 August 2024 Registered Charity Number: 309091 Downe House Trust Annual report and financial statements for the year ended 31 August 2024 Contents Pages Trustee and advisors Report of the Trustee Independent auditors, report Statement of financial activilies Balance sheet 10 Notes to the financial statements Downe House Trust Trustee and advisors Trustee Downe House School was the sole Trustee (a company limited by guarantee) through the year and at the date the financial statements were approved. The Trustees, Governors and Directors of Downe House School on 2 December 2024 are.. Mr T Boucher Ms EJ Clarke Mrs VJ Richards (Exelby) Ms AF Hazlitt Mrs FM Holmes Mr NJD Woods Mr MK Ridley Mr JJ Smith Ms SK McNair Scott Ms CE Ross Mr WJF Landale (Appointed 20 June 20241 Mr ST Williams (Appointed 20 June 2024) BA, FCA MlnstF{Cert} MA BA Bcomm BA, MA, MRICS BA, Med, PGCE Headmistress of Downe House School Mrs E McKendrick BA Secretary of Downe House School Mr EFP Valletta Address Downe House School Downe House Hermitage Road Cold Ash Thatcham Berkshire RG18 9JJ Independent Auditors Solicitors Pricewaterhousecoopers LLP One Chambertain Square Birmingham B3 3AX Farrer & Co 66 Lincoln's Inn Fields London WC2A 3LH Bankers Lloyds Bank plc 5 Bridge Street Newbury Berkshire RG14 5BQ Downe House Trust Report of the Trustee for the year ended 31 August 2024 The Trustee presents the annual report and the audited financial statements for the year ended 31 August 2024. The infomation with respect to the Trustee and advisors set out on page 1 forms part of this report. The financial statements comply with the Statement of Recommended Practice "Accounting and Reporting by Charities {FRS 102)" (revised 2015). STRUCTURE, GOVERNANCE AND MANAGEMENT Status and Administration The Trust was established as Downe House School by Trust Deed on 1 January 1944. On 2 August 1993, the Charity Commission approved a scheme whereby the operating aclivities of the SGhool were transferred to Downe House School, a charitable company limited by guarantee. and the propety used by the School was retained by the Trust, which changed its name to the Cold Ash Trust on that date. During the year ended 31 August 2001 the Trustee resolved to change the name of the Trusl to Downe House Trust. The change of name was effected by the Charity Commission on 15 October 2001. Induction and training of Trustees All new Trustees of Downe House School undertake an induction prO￿sS the detailed content of which depends on the individual's knowledge of the School and professional experience. Trustees are encouraged to attend seminars arranged by AGBIS (Association of Governing Bodies of Independent Schools) and other such bodies. The Trustees, Organisational Structure and decision making The sole Truslee is Downe House School, a company limited by guarantee. The strategic direction of Ihe Trusl is set by the Trustees of Downe House School ("the Governing Body") who approve the plans and budgets presented by the Headmistress and management team. The day to day njnning of the Trust is delegated to the Headmistress and management team of Downe House School. The Trustees of Downe House School have a number of committees of which the most significant lo the Downe House Trust are: Finance and General Purposes Committee The members of this Committee meet at least four times a year to submit reports and recommendations to the Board of Trustees on the following matters.. To formulate business plans and annual budgets, in accordance with the School's aims and objectives, for consideralion by the Board of Trustees and to monitor their execution once approved. To recommend an annual programme of capital expenditure to the Board of Trustees. To recommend the level of fees for the forthcoming year to the Board of Trustees. To determine appropriate financial controls and procedures. To propose policy objectives to the Board of Trustees on.. Charging and fee remissions Salaries Bursaries Contracts Investments iv. Downe House Trust Report of the Trustee for the year ended 31 August 2024 (cont'd) Estates Sub-commlttee The members of this Sub-committee meet at least four times a year to submit reports and recommendations to the Board of Trustees andlor the Finance and General Purposes Committee on the following matters- The overall development of the School's buildings and properties. The planning, Oesign and management of current and future construction projects. The annual maintenance and improvement programme for the School's buildings, including Health and Safety issues. Any olher buildings or propety related matters referred to the Sub-committee by the Board of Governors or the Finance and General Purposes Committee. Related parties and connected organisations The Trust's relationship with Downe House School and Downe House Foundation is disclosed above. Risk Assessment In the light of the Corporate Governance guidance contained within the Statement of Recommended Practice "Accounting and Reporting by Charities (FRS 102)" {revised 2015) the Trustee has examined the major risks faced by the Trust. A system of controls has been put in place to monitor and mitigate, where possible, the major risks identified and their impact on the Trust. Risks are identified and assessed and controls are established Ihroughout the year. A formal review of the Trust's risk management process is undertaken on a termly basis. OBJECTIVES AND ACTIVITIES Object The object of the Downe House Trust is the provision and conduct at or near Cold Ash, near Newbury, of a day or day and boarding school for girls. Aims, objectives and strategy for the year The Trust provides. and intends to continue to provide, the 110 acre site and properties used by Downe House School. The other objective of the Trust for the year was to continue the Downe House Trust 21st Century Appeal. The Trust seeks to demonstrate the full Public Benefil that it provides, having regard to the general guidance on Public Benefit from the Charity Commission and where possible enhance that benefit. Further details are disclosed in the Annual report and financial statements of Downe House School. Downe House Trust Report of the Trustee for the year ended 31 August 2024 (cont'd) ACHIEVEMENTS AND PERFORMANCE Review The Trust continues to provide the properties used by Downe House School. The Downe House Trust 21st Century Appeal was launched in October 2001. The aim of the Appeal was to raise money for a number of capital projects. Following completion of the construction of the Sports Pavilion in April 2003, construction of the Performing Arts Centre was completed in August 2004. Construction of an all-weather pitch was commenced in June 2008 and was completed in November 2008. For details of the income received by the Appeal fund during the year and the year end fund balances see note 8. During the year the Appeal fund received donations of £22012023.. £220), in line with expectations. Major fundraising is now undertaken by the Downe House Foundation, charity number 1159259. The buildings strategy of the Trust is monitored by the Estates Sub-committee of Downe House School and the Finance and General Purposes Committee of Downe House School. The Trustees of Downe House School consider a wide range of factors that may affect the achievement of the Trust's objectives as part of their risk assessment procedures descfibed on page 3. Some of these factors such as economic conditions, the Charities Act 2011 and other legislation are outside the control of the Trust. Investment Performance Investment performance is reviewed regularly and investments have performed adequately in the year. The Trustee has revalued the investment assets at the year end to market value, increasing net assets by £Nil (2023- £Nil). FINANCIAL REVIEW Investment Powers and Pollcy The Trust has the powers to invest in its own name and to delegate these powers to professional investment managers. Investments are held to create income and capitsl growth pending utilisation on specific objects or to match liabilities as appropriate. Reserves pollcy The Tnjst's tangible assets are all held for use by the School. Investments are held to create income and capital growth pending utilisation on specific objects or to match liabilities as appropriate. As described in note 8 the Trust's unrestricted reseNes are fully represented by tangible fixed assets and associated liabilities. There are no free funds beyond the extent of these assets and commitments. The Trustee considers that the existing level of reserves is appropriate for the needs of the Trust. This policy is reviewed at least annually. Flnanclal results Full results are shown in the financial statements and notes thereto on pages 9 to 18. The net outgoing resources for the year were £2,435,00012023'. £2,163,000}. Golng Concem Downe House School, the Trustee, has a clear understanding of the strategy and business plan of Ihe Trust, including the Trust's projected funding requirements for at least the next 12 months. Downe House School will not seek the repayment of amounts advanced to the Trust by the School unless adequate alternative financing has been secured ky the Trust. Downe House Trust Report of the Trustee for the year ended 31 August 2024 (cont'd) PLANS FOR FUTURE PERIODS The Trust intends to provide the site and properties used by Downe House School. Trustee's Responsibilities Statement The Trustee is responsible for preparing the Trustee's Report and the financial statements in accordance with applicable law and regulations. The law applicable to charities in England and Wales reqUI￿S the Trustee to prepare financial stalements for each financial year. Under that law the Trustee has prepared the financial statements in accordance wilh United Kingdom Generally Accepted Accounting Practice {United Kingdom Accounting Standards and applicable law). Under that law the Trustee must not approve the financial statements unless they are satisfied that they give a true and fair view of the slate of the affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements. the Trustee is required to.. select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charities SORP. make judgments 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., and prepare the financial stalements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Trustee is responsible for keeping accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charily and enable it lo ensure that the financial slatements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provision of the trust deed. The Trustee is also responsible for safeguarding the assets of the charily and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. statement on disclosure of information to the auditors So far as the Trustee is aware, Ihere is no relevant audit infomiation of which the charity's auditors are unaware. The Trustee has taken all the steps {such as making enquiries of the auditors and any other steps required by the Trustee's duty to exercise due care, skill and diligence) that it ought to have taken in its duty as a Trustee in order to make it aware of any relevant audit information and to estsblish that the charity's auditors are aware of that information. Independent Audltors The auditors. Pricewaterhousecoopers LLP, have indicated their willingness to continue in office and a resolution concerning their appointment will be proposed at the Annual General Meeting. Signed on behalf of the Trustee, Downe House School oucher Trustee 2 December 2024 6 ## **Downe House Trust** # _**Independent auditors’ report to the trustee of Downe House Trust**_ ## **Report on the audit of the financial statements** ## **Opinion** In our opinion, Downe House Trust’s financial statements (the financial statements”): - give a true and fair view of the state of the charity’s affairs as at 31 August 2024 and of its incoming resources and application of resources, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law); and - have been prepared in accordance with the requirements of the Charities Act 2011 and Regulation 8 of The Charities (Accounts and Reports) Regulations 2008). We have audited the financial statements, included within the Annual Report and financial statements (the “Annual Report”), which comprise: the balance sheet as at 31 August 2024; the statement of financial activities for the year then ended, and the notes to the financial statements, which include a description of the significant accounting policies. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## _Independence_ We remained independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. ## **Conclusions relating to going concern** Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from the date on which the financial statements are authorised for issue. In auditing the financial statements, we have concluded that the trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate. However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the charity’s ability to continue as a going concern. Our responsibilities and the responsibilities of the trustee with respect to going concern are described in the relevant sections of this report. ## **Reporting on other information** The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The trustee is responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities. 7 ## **Downe House Trust** Based on our work undertaken in the course of the audit, the Charities Act 2011 requires us also to report certain opinions and matters as described below. ## _Report of the Trustee_ Under the Charities Act 2011 we are required to report to you if, in our opinion the information given in the Report of the Trustee is inconsistent in any material respect with the financial statements. We have no exceptions to report arising from this responsibility. ## **Responsibilities for the financial statements and the audit** ## _Responsibilities of the Trustee for the financial statements_ As explained more fully in the Trustee’s Responsibilities Statement, the trustee is responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The trustee is also responsible for such internal control as they 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 trustee is responsible for assessing the charity’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the trustee either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. ## _Auditors’ responsibilities for the audit of the financial statements_ We are eligible to act and have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. Based on our understanding of the charity/industry, we identified that the principal risks of non-compliance with laws and regulations related to health and safety laws and standards imposed by the Independent Schools Inspectorate, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Charities Act 2011 and relevant regulations made or having an effect thereunder, including The Charities (Accounts and Reports) Regulations 2008. We evaluated the incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) by the trustee and those responsible for, or involved in, the preparation of the financial statements, and determined that the principal risks were related to fraudulent transactions designed to overstate the financial performance and position of the charity. Audit procedures performed included: - Reviewing Board minutes and holding discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud; - Using computer based audit techniques to identify and test higher risk journals, in particular those having unusual account combinations; - Understanding the design and implementation of controls in relation to management override of control; - Challenging key judgements and estimates; and - Incorporating unpredictability into the nature, timing and/or extent of our testing. 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. A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report. 8 ## **Downe House Trust** ## _Use of this report_ This report, including the opinions, has been prepared for and only for the charity’s trustee as a body in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act (Part 4 of The Charities (Accounts and Reports) Regulations 2008) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. ## **Other required reporting** ## **Charities Act 2011 exception reporting** Under the Charities Act 2011 we are required to report to you if, in our opinion: - we have not received all the information and explanations we require for our audit; or - sufficient accounting records have not been kept by the charity; or - the financial statements are not in agreement with the accounting records. We have no exceptions to report arising from this responsibility. Mark Billingham (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Birmingham 2 December 2024 Downe House Trust Statement of financial activities for the year ended 31 August 2024 Unrestricted Restricted funds funds £'ooo £'ooo Totsl 2024 £'ooo Total 2023 £'ooo Note INCOMING RESOURCES Incomlng resources: Donations and Legacies Income from charitable activities Property Rental Total Income and Endowments 646 646 646 646 647 646 RESOURCES EXPENDED Expenditure on Charitable activities: Premises (982} (2,044} 152) 11,034) {1,007) (2,044) {1,780) {18) {4) Financing costs Other costs Govemance costs (4) {4) Total expendlture (3,030) 1521 13,082) {2,809) NET EXPENDrruRE (2,384} (511 (2,435) (2,163) Advance written off by Downe House School 15,000 15.000 NET MOVEMENT IN FUNDS 12,616 (51) 12,565 (2,1631 Total funds brought foNard (821} 529 (292) 1,871 Total funds carrled forward 11,795 478 12.273 {292) All amounts derive from continuing activities. All gains and losses recognised in the year are included in the statement of financial activities. There is no difference between the net incoming resources stated above and its historical cost equivalent. Downe House Trust 10 Balance Sheet as at 31 August 2024 2024 £'ooo 2023 £'ooo Note Fixed assets Tangible assets 27,252 27,091 27,252 27,091 Current Assets Debtors 12,379 12,379 Investments 11 10 Cash at bank and in hand 719 13,109 12,391 Creditors: amounts falling due within one year (26,222) (37,908) Net current liabilities (13,113) (25,517) Total assets less current liabilities 14,139 1,574 Creditors: amounts falling due after more than one year {1,866) (1,866) Net assets l(liabilities) 12,273 1292) Represented by: Restricted funds 478 529 Unrestricted funds 11,795 (821) 12,273 (292) The financial slalements on pages 9 to 18 were approved by the Trustee on 2 December 2024 and signed on behalf of the Trustee, Downe House School, by- T Boucher Trustee Downe House Trust Notes to the financial statements for the year ended 31 August 2024 Principal accounting policies The financial statements have been prepared in accordance with applicable Accounting Standards in the United Kingdom including Financial Reporting Standard 102 (FRS 102} and the Charities Act 2011. In preparing the financial statements the Trust has followed best practice as set out in the Statement of Recommended Practice -Accounting and Reporting by Charities (FRS 102)" (revised 2015). A summary of the more important accounting policies of the Trust. which have been applied consistently, is set out below. Basis of accounting The financial statements have been prepared on a going concern and accruals basis under the historical cost convention modified by the revaluation of investments. The functional and presentational currency is £ Sterting. The Trustee considers it appropriate to adopt the going concern basis and has not identified any material uncertainties in the period of at least 12 months from the date of approval of the financial statements. After making enquiries the Trustee has a reasonable expeclation that the Trust has adequate resources to continue in operation for the foreseeable fulure. A letter of support has been provided by Downe House School for the period of 12 months from the date of signing these financial statements. The exemption under $1.12 of FRS 102 has been taken not to disclose full details of the Company's financial instruments as these details are included within the consolidated financial statements of Downe House School. Fund accounting Unrestricted funds comprise SCGumulated surpluses and deficits on general funds. They are available for use at the discretion of the Truslee in furtherance of the general charitable objectives. Restricted funds are funds subject to specific conditions imposed by the donors. Property rental The Trust owns propety used by Downe House School for which it received rental payments of £646,000 (2023.. £646,000) for the year. Income is recognised on a receivable basis. Voluntary income All voluntary income comprises donations which are shown in the statement of financial activities under incoming resources and are accounted for on a receivable basis. Gains on disposal of fixed assets On disposal of tangible fixed assets, the profit or loss on disposal is accounted for as the difference be￿een the nel sale proceeds and Ihe net carrying amount of the tangible fixed asset. The profit or loss on disposal of tangible fixed assels is recognised in the Statement of Financial Activities for the year in which the disposal occurs. Expenditure All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay for expenditLtre. Overhead and other costs not directly altributable to particular functional categories are apportioned over the relevant categories on the basis of management estimates of the amount attributable to that activity in the year, by reference to the level of costs in Ihe functional categories. Govemance costs comprise the costs of running the Trust, including external audit, any legal advice for the Trustee and all the costs of complying with constitutional and statutory requirements such as the costs of Board and Committee meelings. Downe House Trust 12 Notes to the financial statements for the year ended 31 August 2024 (continued) Principal accounting policies (continued) Tanglble flxed assets and depreclatlon Freehold land and buildings held on trust are included at cost inCu￿ed prior to completion. Land is not depreciated. Buildings are depreciated at rates calculated to write off the cost less their estimated residual values on a straight line basis over the expecled useful economic life of each building. The range of annual rates used for this purpose is beiween 10 and 50 years. Assets with a cost below £1,000 are not capitalised. Other tangible fixed assets are slated at cost, less accumulated depreciation, at rates calculated lo write off the cost less residual value, of each asset over its expected useful life, as follows: Equipment and fumishings 12.5% straight line Recognition of liabilities Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events. Investments and Investment income Investments aro stated at market value. Any gain or loss on revaluation is included in the statement of financial activities. Investment income is accounted for in the period in which the Trust is entitled to receipt. Cash Flow Statement The Trust does not prepare a cash flow statement as its cash flows are included in the cash flow statemenl of Downe House School. Concessionary Loans Public benefit entity concessionary loans are loans made or received between public benefit entities at below the prevailing market rate of interest and are for the purposes of furthering the objectives of the public benefit entity. The loans are measured at the amount received or paid and are recognised in the Statement of Financial Position. Critical estimates or judgements Estimates and judgements are continually evaluated and are based on historical experience and other relevant factors including expectations of future events that are believed to be reasonable in the circumstances. The Trustee does not believe that criticaljudgements have been made that effect the financial statements. Downe House Trust 13 Notes to the financial statements for the year ended 31 August 2024 (continued) Financing costs 2024 £'ooo 2023 £'ooo Interest payable on loans and advances from parent undertaking 2,044 1,780 Governance costs 2024 £'ooo 2023 £'ooo Auditors, remuneration for audit services excludin VAT There were no employees (2023.. Nil). Tangible assets Freehold land & Equlpment & buildings furnishings £'ooo £'ooo Total £'ooo Cost 1 September 2023 Additions 39,582 1,193 40,775 114 39,696 1,193 31Au ust 2024 114 40,889 Accumulated depreciation 1 September 2023 Char e for the 12,491 114 12,605 ear 1,032 1,032 31Au ust 2024 13,523 114 13,637 Net book value 31Au ust 2024 27,252 27,252 31Au ust 2023 27,091 27,091 Included in freehold land and buildings is land at a cost of £92,473 (2023- £92,473) which is not depreciated. Downe House Trust 14 Notes to the financial statements for the year ended 31 August 2024 (continued) Investments Restricted Fund £'ooo Total £'ooo Market value 1 September 2023 Additions at cost 10 10 31Au ust 2024 11 Cash and short-term de osits 11 11 Historical cost 31 August 2024 31 August 2023 11 11 10 10 Downe House Trust 15 Notes to the financial statements for the year ended 31 August 2024 (continued) Creditors: amounts falling due within one year 2024 £'ooo 2023 £'ooo Advance from parent undertaking 26,143 37,905 other creditors and accruals 79 26,222 37,908 Interest is payable to the Trust's parent undertaking, on the amount due within one year at the rate of 1 % over bank base rate. Advances from the parent undertaking are unsecured and repayable on demand and are treated as concessionary loans. In order to strengthen Ihe balance sheel of the Downe House Trust, during the year £15,000,000 of the amount due from Downe House Trust was written off by Downe House School. Creditors: amounts falling due after more than one year 2024 £'ooo 2023 £'ooo Amounts owed to arent undertakin 1,866 1,866 Interest is payable to the Tnjst's parent undertaking, on loan adVan￿S due after more than one year in excess of£866,000 at the rate of 10/0 over bank base rate. No interest is paid on the remaining loan advances due after more than one year of £866,000. Advances from the parent undertaking are unsecured and are treated as GonGessionary loans. Funds 2024 Total funds £'ooo Restricted funds £'ooo Unrestricted funds £'ooo 1 September 2023 529 (821) (292) Incoming resources 15,646 15.647 Resources expended {52) {3,030) 13,082) 31 August 2024 478 11,795 12,273 Represented by: Tangible fixed assets 467 26.785 27,252 Investments Net current liabilities (13,1241 113,124) Long-term liabilities (1.866) 11,866) 31 August 2024 478 11,795 12,273 Downe House Trust 16 Notes to the financial statements for the year ended 31 August 2024 (continued) Funds (continued) 2023 Total funds £'ooo Restricted funds £'ooo Unrestricted funds £'ooo 1 September 2022 581 1.290 1,871 Incoming resources 646 646 Resources expended {52) (2,757) 12.809) 31 August 2023 529 {8211 {292} Represented by: Tangible fixed assets 519 26,572 27,091 Investments 10 10 Net current liabilities (25,527) (25,527) Long-term liabilities (1,8661 (1.866} 31 August 2023 529 {821) {292} The restricted fund is the Downe House Trust 21 st Century Appeal which was launched in Odober 2001. it represents donations made to the Trust to fund the construction of new facilities and the net book value of those facilities. Contingent liabilities The Trust has guaranteed the bank borrowings of its parent undertaking, sole Trustee and controlling paty, Downe House School, up to a maximum of £6,000,000 (2023 £2,500.000) and has given legal charge over each of the freehold properties of the Trust. At 31 August 2024 the amount of the bank borrowing subject to the guarantee was £nil (2023.. £2,000,000). 10 Taxation The Trust is a registered charity and as such tax exemption applies to the inGome arising from and expended on charitable activities and to its investment income and gains. Investment inGome is stated inclusive of tax credits. The Trust is regislered for VAT and, where applicable, expenditure is recorded net of recoverable VAT. 11 Trustee The Trustee receives no remuneration for its services or reimbursement of expenses. No other key management personnel are employed by thè Trust. Downe House Trust 17 Notes to the financial statements for the year ended 31 August 2024 (continued) 12 Related party transactions The Trust has taken advantage of the exemption available for wholly owned subsidiaries in FRS 102 s1.12 and not disclosed transactions with its parent undertaking. 13 Ultimate parent undertaking and controlling party Downe House School. a company limited by guarantee and registered in England and Wales, is the sole corporate Trustee and controlling paty of the Downe House Trust. The Trust is managed by the Trustees of the School. Group consolidated financial statements are drawn up by the School. Copies of the School's financial slatements can be obtained from the Company Secretary, The Bursary, Downe House School, Cold Ash, Thatcham, Berkshire, RG18 9JJ. Downe House Trust 18 Notes to the financial statements for the year ended 31 August 2024 (continued) 14 Comparative Statement of financial activities for the year ended 31 August 2023 Unrestricted Restricted funds funds £'ooo £'ooo Total 2023 £'ooo Total 2022 £'ooo Note INCOMING RESOURCES Incomlng resources: Donations and Legacies Income from charitable activities Property Renlal 646 646 646 Total Income and Endowments 646 646 646 RESOURCES EXPENDED Expenditure on Charitable activities: Premises {955) (52) (1,007) {968) Financing costs (1,780) {18) 14) (1,780) (18) (4) (574) Other costs Governance costs (3) Total expenditure (2,7571 (52) (2,809> 11,545) NET EXPENDITURE (2.111} 152) {2,163) {899) Total funds brought foNard 1,290 581 1,871 2.770 Total funds carried forward (821) 529 (292) 1,871