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2022-07-31-accounts

Registered Charity Number: 309093

THE WELLINGTON COLLEGE ACCOUNTS AND REPORTS FOR THE YEAR ENDED 31 JULY 2022

THE WELLINGTON COLLEGE GOVERNORS, OFFICERS AND ADVISERS

PRESIDENT

H.R.H. THE DUKE OF KENT KG, GCMG, GCVO, ADC

PATRON

The Lord Archbishop of Canterbury

GOVERNORS AND CHARITY TRUSTEES

The Wellington College Governors are the charity trustees of The Wellington College (“The Charity”). They all served in office throughout the year except where indicated. The list includes any subsequent changes prior to the date of signing these financial statements. No Governor receives any remuneration or benefit from the charity.

W Jackson[1 2 6] Vice-President and Chairman

ex officio: The Duke of Wellington OBE, DL[1 ]

The Rt .Hon the Lord Strathclyde CH, PC R Dennis CBE[1 ] D Ritchie[2][6] F A Kirk[4 6] V Rhodes[3 4 ] G Galceran Ball (Retired December 2021) H Stevenson[2 ] J May[1 2 5 ] M Milliken-Smith[1 5 ] E McKendrick[3 4 ] J Garvey (Appointed October 2021)[2 ] Dr C Marr (Appointed October 2021)[3 ] Sir C Tickell (Appointed October 2021)[ 5] E M Judge (Appointed March 2022)[4]

¹Nominations Committee 2 Business and Finance Committee 3 Education Committee 4 Pastoral & Safeguarding Committee 5 Public Benefit & Social Responsibility Committee 6 Eagle House Council

In addition to those marked above, the Eagle House Council is composed of A Brown, B Evans, C Henderson, A Hill, M Rickards, S Robinson, K Vleck and J Dahl.

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THE WELLINGTON COLLEGE

GOVERNORS, OFFICERS AND ADVISERS (CONTINUED)

The day to day running of the schools is delegated to the Master, the Headmaster, Bursars and Senior Management Teams.


Management Teams.
Key Management Personnel
The Master J E L Dahl
Eagle House Headmaster A P N Barnard
Group Finance and Operations Director,
Bursar S J Crouch
Second Master C Henderson
Senior Master M J Oakman
Deputy Academic B Evans
Deputy Co-Curricular I Sutcliffe
Deputy Partnerships I Henderson
Deputy Pastoral D Walker
Deputy Performance and Development K E Granville-Chapman
Deputy Safeguarding D Lynch
Director of Admissions E Venables
Director of Development M S Lindo
Addresses Wellington College Eagle House School
Duke’s Ride Sandhurst
Crowthorne Berkshire
Berkshire GU47 8PH
RG45 7PU
Websites www.wellingtoncollege.org.uk
www.eaglehouseschool.com
Bankers Barclays Bank plc
2 Churchill Place
Canary Wharf
London
E14 5RB
Solicitors Farrer and Co LLP
66 Lincoln’s Inn Fields
London
WC2A 3LH
Auditor Crowe UK LLP
Aquis House
49-51 Blagrave St
Reading
Berks
RG1 1PL
Investment Advisers Partners Capital
5, Young Street
London
W8 5EH

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THE WELLINGTON COLLEGE GOVERNOR’S REPORT FOR THE YEAR ENDED 31 JULY 2022

The Governors of Wellington College present their annual report for the year ended 31 July 2022 under the Charities Act 2011, together with the audited accounts for the year.

The following definitions have been adopted in these accounts:

Consolidated Charity: TWC and its trading subsidiaries Schools: the school operations of TWC and the College Trusts relating to them

REFERENCE AND ADMINISTRATIVE INFORMATION

Wellington College is an independent co-educational boarding and day school providing education to boys and girls between the ages of 13 and 18 and, through Eagle House School, for children between the ages of 3 and 13 years. It was founded by a Royal Charter dated 13 December 1853 as a memorial to the 1[st] Duke of Wellington and is registered with the Charity Commission under charity number 309093.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The 1853 Charter was followed by four supplementary Charters. On 27 January 2006 the College was granted a new Royal Charter consolidating these previous Charters. On 12 March 2008 a further amendment to the Charter was granted which permits the advancement of education internationally as well as nationally and the support, provision or assistance in the provision of other educational establishments or initiatives. On 11 May 2011 a further amendment to the Charter was granted removing the age restriction for Governors. On June 17 2014 an amendment to the Charter was approved which appoints the Duke of Wellington as an ex-officio Governor of the College.

Governing Bodies

The 2006 Charter vests the government and control of the charity in the Governing Body whose members are elected by that Body subject to the approval of the Sovereign. Members may serve up to two consecutive terms of five years. The Governing Body has delegated the running of Eagle House to a separate Council chaired by Martin Rickards

Recruitment and Training of Governors

A Nominations Committee meets as necessary to plan the future membership of the Governing Body in the light of likely retirements and the need for a range of skills and experience. It identifies suitable candidates and recommends them for consideration by Governors who decide on names to be submitted for Royal consent. When this has been given, candidates are then formally elected by the Governors.

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THE WELLINGTON COLLEGE GOVERNOR’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

Recruitment and Training of Governors (continued)

New members of the Governing Body receive, shortly after appointment, a full induction at Wellington College appropriate to their particular professional qualification or area of expertise. They are also encouraged to attend one of the seminars for new Governors offered by the Association of Governing Bodies for Independent Schools (AGBIS). All Governors are given the opportunity to attend externally provided seminars and courses on the role and responsibilities of Governors and Trustees. They are encouraged to visit the College and Eagle House on a regular basis, with visits to departments and Houses.

Organisational Management

The Governors of Wellington College meet at least three times a year. The work of preparing and implementing most of their policies is carried out by various Committees, who meet before meetings of the full Wellington College Board and at any other time as required.

The principal committees, apart from the Eagle House Council, are:

Various governors take on a leading role in linking to various areas of College activities such as Health & Safety & Finance. Felicity Kirk is the designated Governor for Child Protection for Wellington College and Karena Vleck performs this role for Eagle House School.

The Eagle House Council meets at least three times a year. The work of preparing and implementing most of their policies is carried out by its Finance Committee and its Academic Committee, both of which meet two weeks before each meeting of the full Eagle House Council, under the chairmanship of Martin Rickards. Eagle House Council has also introduced a Pastoral & Safeguarding Committee.

The Governors appoint the Master of the College who is charged with its entire administration with the assistance of the Bursar/COO, who is also appointed by the Governors, and his Senior Management Team. The Bursar/COO is charged with the administration of the Charity. The Master and Bursar attend all meetings of the Governing Board and most committee meetings. A separate Clerk to the Governors also attends meetings. The remuneration of the Master and the Bursar/COO is set by the Governors on appointment, and reviewed annually as a result of the outcomes of the performance appraisal system. The remuneration of other key management personnel is set as part of the annual budgeting process and takes into account the performance of each person against their appraisal targets.

The selection of the Headmaster of Eagle House School is made by the Eagle House Council with the appointment ratified by Wellington Governors. The Headmaster of Eagle House is charged with the day-to-day administration of Eagle House with the help of the Bursar of Eagle House who is also appointed by the Eagle House Council.

The two trading subsidiaries of the charity, Wellington College Services Ltd (formerly Wellington College Enterprises Limited) and Wellington College Educational Enterprises Ltd (Wellington College International Limited) each have their own board of directors. The directors of the companies include Governors and members of the senior management team of the Charity and the activities of the companies are reported to the Business and Finance Committee at each of its meetings.

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THE WELLINGTON COLLEGE GOVERNOR’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

Group Structure and Relationships

The Charity has a wholly owned non-charitable subsidiary, Wellington College Services Ltd (WCS) (formerly Wellington College Enterprises Limited until its name change on 1 November 2022), whose business activities include construction and the provision of leisure and retail services. Profits are gift aided to the College’s Trust Funds specifically to fund bursary awards. The closure of the Club ,as a result of national lockdown measures, and the absence of external letting opportunities has continued to impact WCS though it is now on a recovery trajectory. WCS made trading income of £129k in the year, which was gift aided to the College’s Trust Funds ( 2021: a trading loss of £581k ). Consequently the college did not need to subsidise the activities of WCS as was the case in 2021 and 2020.

The Charity has a wholly owned non-charitable subsidiary, Wellington College Educational Enterprises Ltd (formerly known as Wellington College International Limited until its name change on 1 November 2022) which operates in the furtherance of the College’s developments overseas. Profits are gift aided to the College’s Trust Funds. In 2022 this amounted to £3,567k (2021: £ 2,369k ).

The Wellington College Limited is a dormant company, formed to protect the name of the College. Wellington College International (India) Limited and WCI Developments Limited (formerly Wellington College International (Russia) Limited) were formed to investigate international development opportunities in the respective territories named. They did not trade in the year and are dormant.

Trust Funds

The College operates three trust funds which provide scholarships and bursaries to the College and a fourth which invests any proceeds from advanced fee payments. The investment of these funds was managed by Partners Capital and the performance of the funds is overseen by the Investment Committee.

The Fisher Fund incorporates the Heritage Fund and the Fisher Endowment which were instituted in 1992 and 1978 respectively. In 2020 the Governors resolved to combine these two funds in order to provide more flexible options for their use. The rules which were set up by the Governors in 1992 to manage the Heritage Fund were rescinded and the combined Fisher Fund is used primarily for remission support.

The Combined Trust Funds consist of a number of individual trust and prize funds set up by individual donors for scholarships, prizes and bursaries and also include the Foundation Capital which represents the original endowment to provide education to children of deceased commissioned service officers under the terms of the Royal Charter of 1853, as subsequently amended in 1855, 1952, 1960, 2006, 2008, 2011 and 2014. This fund is also used to invest money raised for College Development projects which is not immediately required for expenditure.

The Prince Albert Foundation has been set up to receive donations directed at the provision of life changing bursaries for pupils who would not otherwise be able to attend the College.

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THE WELLINGTON COLLEGE GOVERNOR’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

Risk Management

The Governors of Wellington College are responsible for the management of risks faced by the Charity. Detailed consideration of risk is delegated to each committee, who are assisted by the Bursars and the Senior Management Teams. Risks are identified, assessed and controls established throughout the year. A formal review of the Charity’s risk management processes is undertaken on an annual basis.

There are three principal areas of risk which have been defined as having the potential to affect the operations of the charity.

These threats are individually reviewed and linked to specific policies and actions which may mitigate the risks arising from them. The action plans are also reviewed to ensure that action is being taken.

The key controls used by the Charity include:

Through the risk management processes established for the schools, the Wellington College Governors are satisfied that the major risks identified have been mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Charitable Object and aims

The Object for which the College is established and incorporated, is the advancement of education (whether nationally or internationally) for the public benefit by:

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THE WELLINGTON COLLEGE GOVERNOR’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

Public Benefit – Aims and Intended Impact

In meeting this Object, Wellington College aims to provide a world class education, both through strong academic tuition and through holistic education, so as to develop every pupil to his or her greatest potential. This builds self reliance and inculcates a desire for and understanding of Service, thereby benefiting the wider community

In the furtherance of these aims, the Governors of Wellington College, as the charity trustees, have complied with the duty in 17(5) of the Charities Act 2011 to have due regard to the Charity Commission’s published general and relevant sub-sector guidance concerning the operation of the Public Benefit requirement under that Act.

In order to ensure that the benefits of the charity may be spread as widely as possible, the College makes awards of scholarships and bursaries from the College trust funds as described above. It also makes significant awards from its unrestricted income. The details of this are set out in the section on grant making policy below.

Charitable Objectives

Wellington College has a strong focus on its charitable objectives. These activities and Wellington’s future plans in this area are based on the following principles:

  1. The school is committed to broadening its intake to include children of families who could not otherwise afford an independent education through an enhanced bursaries programme and to exploring alternatives to bursaries where appropriate, including its sponsorship of the Wellington College Teaching Alliance and independent state school partnership activities.

  2. The school will always strive to maximise the value it obtains when deploying its charitable funds and assets.

  3. Wellington recognises that an essential component in facilitating fund raising is that the school itself must offer the highest standard of education. It is this excellence that is a key factor in attracting donors. This requires that the school is:

  4. a) run on a sound long term financial basis

  5. b) able to compete with other similar schools including being able to attract the most talented pupils in order to maintain its all round excellence

  6. c) able to attract and retain talented staff.

Initiatives in Support of the Charitable Objectives and Public Benefit

The College runs several initiatives in support of its charitable objects and public benefit. These include:

Prince Albert Foundation

A fully funded bursary scheme for pupils from backgrounds with limited financial means and educational opportunities. The scheme has 23 pupils as of September 2022 and the plan is to increase this as swiftly as possible, including students at 13+ and lower sixth.

The scheme’s purpose is to provide transformative opportunities pupils to who would otherwise face significant challenges in realising their potential, rather than to bring those who have already exhibited outstanding talents in individual areas to the College.

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THE WELLINGTON COLLEGE GOVERNOR’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

Initiatives in Support of the Charitable Objectives and Public Benefit: continued

Educational Grants Scheme

The College has continued a scheme for schools and other educational institutions to apply for grants of up to £400,000 in 2021-22,

An important aspect of the scheme is that the recipient schools have the freedom to decide how they will spend the money. Over the reporting period the following grants were made

Independent State School Partnership

Wellington leads an Independent-State School Partnership that brings fifteen state schools into an active network of learning and sharing. The College coordinates a programme of events for pupils, focusing on niche academic extension areas and practical subjects such as applying to Oxbridge. Usually, participating schools contribute towards the running costs of events but with these moved online, no charge was made this year. The online format facilitated participation, with three times as many pupils accessing the events as in previous years.

Wheeler Programme

This is an extracurricular programme run by the College to help annual cohorts of 20 state-school pupils to benefit from additional academic and enrichment opportunities, at no charge. The Wheeler participants receive their education at their usual school and attend the College regularly over five years, including for residential events in the school holidays. Programmes include the development of soft skills and higher education and careers planning.

Academies

In April 2020, the Wellington College Academy Trust was merged into the Royal Wootton Bassett Academy Trust. Wellington College remains committed to ongoing financial and collaborative support of The Wellington Academy. This will extend to Oxbridge advice; internships and work experience placements; Wellington College Teaching Alliance, Wheeler Programme and ISSP access and funding; Festival of Education tickets for all teaching staff; Coachbright; Leadership and Coaching Training; SLE deployments; Leadership Training for students.

Teaching School Partnership

In 2021, following reorganisation by the DFE, the Wellington College Teaching School became the Wellington College Teaching Alliance and is now fully funded by the College. It runs a range of relevant, professional development and coaching activities for teachers and school staff, which are offered at a significant discount for State schools.

In the last Academic Year, 12 courses were run which were accessed by 131 colleagues of which 55 came from the maintained sector. The WCTA also co-ordinated a Sport England programme which aimed to improve the uptake of sport and physical activity in the 9 State schools that participated.

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THE WELLINGTON COLLEGE GOVERNOR’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

Initiatives in Support of the Charitable Objectives and Public Benefit: continued

Wellington College Arts Fund

The Wellington College Arts Fund raises money through staging music and dramatic performances on the College site, and charging a small fee for seat reservations as well as other fundraising events. £30,000 was raised in this year and grants were made to 21 local state schools to support their teaching of the arts.

Other initiatives

Wellington College continues to value the role of the Crowthorne Trust within the local community. The Crowthorne Trust provides educational grants to young people living in the locality of Crowthorne, to help them to pursue some project, usually overseas, that they would not otherwise be able to do. The trustees of this charity are predominantly employees of Wellington College and its meetings are held at the College.

A programme of meetings with Bracknell Forest Council and councillors representing local wards continues and has continued to explore ways in which the College can engage yet more actively with its local community.

Both the College and Eagle House continue to provide extensive facilities and assistance within their local communities The College also provides secure parking for minibuses which belong to a number of local charities. External access to the historic archives of the College for general academic research is being developed.

Through the Wellington Walkers Club the College is able to provide access to large parts of the estate and we were pleased to provide guided tours of the College & grounds as fundraising opportunities for a number of local charities.

Principal activities of the year

The Charity’s main activity has been to provide education to boys and girls from the ages of 3 to 18 in its two schools, Eagle House School and Wellington College. It also runs educational conferences and courses, and through its subsidiary, Wellington College Services Ltd, runs a Health & Fitness Club and associated activities, which are open to members of the public. Wellington College Education Enterprises Ltd manages the development of overseas schools under license arrangements.

This year, Wellington College averaged 1,090 (2021:1,093) pupils of whom approximately 79% were boarders and 21% were day pupils and 44% were girls. The continued high number of visitors attending Visitors’ Mornings, together with the level of registrations and interest in the school, provide confidence that the school will continue to operate at high numbers for the foreseeable future.

At Eagle House School the number of pupils through the year averaged 394 ( 2021: 384) of whom 26 were boarders and 43% were girls.

Both schools welcome children from all backgrounds, regardless of race, creed or religion. Criteria for admissions can be obtained direct from the schools or their websites.

Achievements in the Year

The total number of pupils at the College remains high: admission into academic year 2021/22 is 1,100 pupils at Wellington College and 386 at Eagle House.

Specific achievements against the Charitable Objectives include:

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THE WELLINGTON COLLEGE GOVERNOR’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

Grant-making policy

The availability of all awards for fee-assistance is found on our website at www.wellingtoncollege.org.uk.

Economic uncertainty has continued to affect a number of parents this year. We have continued an instalment scheme which allows parents to spread the termly fees over a number of instalments.

Fee Remission

Remissions

New scholarships no longer automatically carry fee remission, but give access to means tested bursaries. The progress of pupils receiving scholarships is reviewed at least annually to ensure that their progress is in line with their abilities.

A feature of remissions in 2020-21 and 2021-22 was the continuation of hardship awards to parents whose ability to pay fees had been hit by the economic effects of Covid 19. Over this period the College received donations of about £0.65m to provide financial assistance in this way. These funds have been deployed to help parents in the years 2019-20, 2020-21 and 2021-22.

There are 357 holders of awards in the schools. Of these 167 received some degree of fee remission representing 6.0% of gross fees. Nineteen pupils received full remission and a further fourteen received 85% or more in remission. External funding covered £36k of fee remission. Remissions relating to the effect of Covid-19 on parental finances were made to thirteen pupils. Restricted funds paid £2,108k towards covering remissions and the balance of £972k was drawn from non-restricted funds.

Foundationers

Included within the remissions noted above, Foundation awards have been made to four pupils in 202122, totalling £87k. The eligibility criteria for a Foundation award can be found on the College website.

Volunteers

A number of parents manage and operate a Charity Shop in the centre of the College during normal school term times which generates funds during the year for distribution to various charities chosen by the pupils. Old Wellingtonians have continued to support the College and current pupils with fundraising and careers advice. The Eagle House Parents’ Association has continued to provide social and fundraising support for school projects.

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THE WELLINGTON COLLEGE GOVERNOR’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

Governance

The school’s charitable policy is reviewed on a regular basis in order to ensure that it is compliant with any changes in legislation or guidance from the Charity Commission and that the available charitable resources are being used to best effect in meeting the College’s charitable objectives.

Modern Slavery and Human Trafficking

A statement of the College’s policy in this matter and the actions that it is undertaking to ensure that it complies with the Modern Slavery Act has been prepared and is available on the College website at www.wellingtoncollege.org.uk

Fundraising Policy

Wellington College has registered with the Fundraising Regulator. The Community Office ensures that the College complies with the Fundraising Preference Service (FPS), which became law in 2018. In addition, the Community Office ensures that it complies with the 1998 Data Protection Act (DPA).

All fundraising activities for the College are carried out by Community Office staff with assistance from the parents and pupils in the running of specific fundraising events. The College does not use professional fundraisers or have any commercial participators. All fundraising activities are managed by the Head of the Wellington Community, with overall oversight by the members of the governing body.

No complaints relating to fundraising activities have been received during this financial period.

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THE WELLINGTON COLLEGE GOVERNOR’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

The Governors intend that each of the school operating units within the Consolidated Charity, namely Wellington College and Eagle House School, should, if possible, aim to generate a cash surplus from all operational activities (including annual capex and contributions from Trusts to bursaries but excluding major projects) of at least 7% of net fee income. This currently gives a target for Wellington College of c £2.8m cash generation and £470,000 for Eagle House.

In the reporting year the College entity generated a total operating cash surplus (net incoming resources plus depreciation) of £3,538,000 or 8.4% of net fee income (2021: £4,065,000 or 10.6%). Eagle House produced an operating cash surplus of £705,000 or 10.4% of net income (2021: £762,000 or 12.5%). The overall net incoming resources of the Consolidated Charity, including its trading companies, were a surplus of £2,946k (2021: deficit of £961k), which after net investment gain of £51k (2021: gain of £12,272), gave a net increase in funds of £2,997k (2021: £11,311k), in the year.

In the prior year the financial results of the school operations were adversely affected by the move of the schools to online provision for part of the Lent term, the discount given to parents and the additional virus security measure that were in place for the whole year. The schools were able to operate normally for the entirety of the year under audit.

Following two loss making years as a result of the effects of Covid-19 restrictions on its operations WCS returned to profit with a surplus of £129k (2021: loss of £581k.)

Wellington College International received the payments of franchise fees from Wellington schools in China and Thailand during 2022. A profit of £3,567k (2021: £2,369k) was generated in 2022 of which £3,567k was donated to College.

Designated Funds

The Charity currently holds £6,380,000 of designated funds. The largest element, £5,321,000, is the accumulated profits of Wellington College Services and Wellington College Educational Enterprises which have been gifted to the College and the profits are designated for the support of the bursary and other College programmes. The non endowed portion of the Fisher Fund, which can be used for the permanent enhancement of the College or for bursaries, £760,000, is also held under this heading, as are the net asset value of the trading subsidiaries and the accumulated profit of the Advance Fee fund.

Investment Performance against Objectives

The Governors’ investment powers are governed by the Trust Deed, which permits the Charity’s funds to be invested in any authorised investment. The Governors’ policy, in the case of the Combined Trust Funds and Fisher Fund, is to maximise the total return with due respect for the risk; and of the Advanced Fees Scheme to match the return required in order to fund to maturity the profile of the related liability. In the year the Trusts distributed 4.2% of the average value of their assets over the last three years, after allowing for specific approved distributions.

Reserves Policy

Ideally the Consolidated Charity needs free reserves to enable it to meet its charitable obligations in the eventuality of an unexpected revenue shortfall. Free reserves are defined by the Charity Commission as unrestricted funds available to spend on the general purposes of the Charity and, therefore, exclude those restricted or designated for particular purposes and those already utilised in purchasing tangible fixed assets. The Governors believe that the level of reserves or facilities freely available in the Consolidated Charity (including its trading subsidiaries) for its general purpose should be up to the equivalent of one term’s operating costs (2022: £18,404k), subject to the continuing needs of the schools to develop and maintain their buildings and facilities at an appropriate level.

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THE WELLINGTON COLLEGE GOVERNOR’S REPORT FOR THE YEAR ENDED 31 JULY 2022

Reserves Policy continued

The consolidated free reserves position at 31 July 2022 was £15,196k (2021: £ 14,503k ). This policy is reviewed annually by the Governors.

FUTURE PLANS

The College’s Development Plan for the period 2020-2024, under its 15[th] Master, James Dahl, includes the following themes:

Specific targets for the coming year include:

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THE WELLINGTON COLLEGE GOVERNOR'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 ACCOUNTING AND REPORTING RESPONSIBILITIES The Govemors are responsible for preparing the Governors, Report and the financial 5ts1emenls in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Slandardsl. The law applicable lo charities in England requires the Govemors lo prepare financial ststsrnenls for each financial year which give a true and lair view of the state of affairs of the charity and the group, and of the incoming resources and application of resources ol the charity and group for that period. In preparing these financial slalemenls, the Govemors are required to.. select suitable accounting policies and then apply them consislBnlly'. make judgrnenls and accounting estimates that arg reasonable and prudent.. observe the methods and principles in the charities SORP., slate whether applicable accounting stsndards have been followed, subject to any material d8partur8s disclosed and explained in the financial statements.. prepare the financial statements on the going concern basis unless it is inappropriate 10 presume that the charitable company will continue lo operate. The Governors are responsible for ensuring that adequate accounting records are maintsined that are sufficient to show and explain the charity and the group's tr8nsactions and disclose with reasonable accuracy al any bme the financial position of the charity and the group. and enable them to ensure that the financial slalements comply with lh& Charities Act 2011, the Charities (Accounts and Reports) Regulations 2(K)8 and the provisigns of the charity's conslitulion. They are also responsible for safeguarding the assets olthe charity and the group and ensuring their proper application in accordance wlth charity law, and hence for laklng reasonable steps for the pr&vention and delectlon of fraud and other irregularities. Having reviewed the funding facilities available lo the charity together with the expected ongolng dgmand for places at the schools and the charity's future projected ¢ash flows, the Governors have a reasonable expectation that the charity has adequate resources to continue its activities for the foreseeable future. Accordingly, they conty'nue lo adopt the going concern basis in preparing the financial slalements. Approved by the Board of Govemors of Wellinglon College on .g.1.Iil.!OA.2 and signed on its behalf by.. Wllllam JaGk$on Vlce Prg$ldont and Cha5rman Page 14

Crowe U.K. LLP

Chartered Accountants Member of Crowe Global Aquis House 49-51 Blagrave Street Reading Berkshire RG1 1PL, UK Tel +44 (0)118 959 7222 Fax +44 (0)118 958 4640 www.crowe.co.uk

INDEPENDENT AUDITOR’S REPORT TO THE GOVERNORS OF THE WELLINGTON COLLEGE

Opinion

We have audited the financial statements of the Wellington College for the year ended 31 July 2022 which comprise the Consolidated Statement of Financial Activities, the Balance Sheets (comprising Combined, Consolidated Charity and Schools), the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Crowe U.K. LLP is a limited liability partnership registered in England and Wales with registered number OC307043. The registered office is at 55 Ludgate Hill, London EC4M 7JW. A list of the LLP’s members is available at the registered office. Authorised and regulated by the Financial Conduct Authority. All insolvency practitioners in the firm are licensed in the UK by the Insolvency Practitioners Association. Crowe U.K. LLP is a member of Crowe Global, a Swiss verein. Each member firm of Crowe Global is a separate and independent legal entity. Crowe U.K. LLP and its affiliates are not responsible or liable for any acts or omissions of Crowe Global or any other member of Crowe Global.

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INDEPENDENT AUDITOR’S REPORT TO THE GOVERNORS OF THE WELLINGTON COLLEGE (CONTINUED)

Other information

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

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves ~~.~~ If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require 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 14, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the 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 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.

Page 16

INDEPENDENT AUDITOR’S REPORT TO THE GOVERNORS OF THE WELLINGTON COLLEGE (CONTINUED)

Auditor’s responsibilities for the audit of the financial statements (continued)

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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

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

We obtained an understanding of the legal and regulatory frameworks within which the charity and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act, the Companies Act 2006 (for the subsidiaries), taxation legislation, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity and the group for fraud. The laws and regulations we considered in this context were The Education (Independent School Standards) Regulations 2014, Safeguarding, GDPR and Health and Safety regulations.

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

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

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

Page 17

INDEPENDENT AUDITOR’S REPORT TO THE GOVERNORS OF THE WELLINGTON COLLEGE (CONTINUED)

Crowe U.K. LLP

Statutory Auditor Reading

Date: 12 December 2022

Crowe UK LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Page 18

THE WELLINGTON COLLEGE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2022

Notes
INCOME AND ENDOWMENTS
FROM
Charitable activities
School fees receivable
4(a)
Ancillary trading income
5
Other trading activities
Non-ancillary trading
6
Non-charitable trading
7
Investments
Investment income
8
Voluntary Sources
Donations and capital grants
Other (expense)
9
Total Income		 Unrestricted
Schools
Designated
Schools &
Designated
£’000
£’000
£’000
48,990
-
48,990
2,388
-
2,388
514
-
514
-
6,553
6,553
132
102
234
111
-
111
(9)
-
(9)
52,126
6,655
58,781		 Restricted
£’000
-
-
-
-
207
3,593
-
3,800		 Endowed
£’000
-
-
-
-
-
-
-
-
-
-
-		 Consolidated
Charity
2022
£’000
48,990
2,388
514
6,553
441
3,704
(9)
62,581		 Consolidated
Charity
2021
£’000
44,031
965
16
4,896
723
2,553
(41)
53,143

Page 19

THE WELLINGTON COLLEGE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2022

EXPENDITURE ON
Charitable activities
School operating costs and grant
making
10
Raising funds
Non-charitable trading
7
Fundraising costs
Financing costs
13
Total expenditure
10
NET INCOME BEFORE GAINS
Investment (losses)/gains
Transfers between funds
11
NET INCOME/(EXPENDITURE)
12
Total funds brought forward
TOTAL FUNDS CARRIED
FORWARD		 Unrestricted
Schools
Designated
Schools &
Designated
£’000
£’000
£’000
52,184
617
52,801
-
2,466
2,466
500
-
500
1,314
112
1,426
53,998
3,195
57,193
(1,872)
3,460
1,588
(41)
58
17
2,446
(2,600)
(154)
533
918
1,451
75,664
5,462
81,126
76,197
6,380
82,577		 Restricted
£’000
2,215
-
-
111
2,326
1,474
(465)
154
1,163
19,227
20,390		 Endowed
£’000
-
-
-
116
116
(116)
499
-
383
20,766
21,149		 Consolidated
Charity
2022
£’000
55,016
2,466
500
1,653
59,635
2,946
51
-
2,997
121,119
124,116		 Consolidated
Charity
2021
£’000
49,050
2,798
20
2,236
54,104
(961)
12,272
-
11,311
109,808
121,119

All operations of the Consolidated Charity are continuing. Comparative year detail is shown in note 28. The notes on pages 24 to 50 form part of these accounts

Page 20

THE WELLINGTON COLLEGE BALANCE SHEETS 31 JULY 2022 Conso11dat￿ Charlty 2022 £'ooo sc1K￿l$ 21Y21 2022 £'ooo 2021 £'ooo Notes FIXED ASSETS Buildings and equipment 14 15 62,720 75,805 138,525 61,S05 77.255 138,760 61.737 76.315 138.052 74.865 137.850 CURRENT ASSETS 783 1.013 29.816 31.612 16 2.206 31,331 4270 3.906 30,524 34.930 3.228 29228 CaBh al bank and In hand CREDITORS Arnwnts thwthin Or￿ year 17 116,0221 {15,4721 116.9171 117,OS81 NET CURRENT ASSETS 18248 16.140 18.013 15.938 TOTAL ASSETS LESS CURRENT UA8IUTIES 150.7n 153.99) 156,773 153.99) CREDITORS- Amounts falliNJ dL* in rnore Ihan on8 y8ar 18 132,6571 132.8711 132.65n 132.8711 TOTAL ASSErs 124.116 121.119 124.116 121,119 FUNDS En(k)¥￿ent F￿d5 Resthcttd Funds Unrestncie(l Funds.Oe5wJnatsd Unrèstricted Funds4)ther TOTAL FUNOS 21.149 20.3 6.380 76,197 124.116 20.766 19.227 5,462 75,664 21.149 20.390 6,380 76,197 124.116 20.766 19,227 5.462 75.664 121.119 23 24b 21 9.1.! IIZQ.12and ApPrO￿d aufv)ri8ed to be i88ued by the Gover￿r5 on ... sigmd ￿ their behall by W Jackson J Garvey The notes on pag8s 24 to 50 fom) part of the$& accounts Page 21

THE WELLINGTON COLLEGE CONSOLIDATED CASH FLOWS FOR THE YEAR ENDED 31 JULY 2022

Cash flows from operating activities
Net movement in funds
Depreciation
Loss on sale of fixed assets
Investment income
Interest paid
Net gain on investments
Decrease/(Increase) in stock
(Increase) in debtors
(Decrease) in creditors
Increase in final term deposits
Cash provided by operating activities
Cash flows from investing activities
Payments to acquire fixed asset investments
Proceeds from the sale of fixed asset investments
Payments to acquire tangible fixed assets
Proceeds from the sale of tangible fixed assets
Interest paid
Investment income
Cash (used in) investing activities
Cash flows from financing activities
Capital element of finance lease repayments
Cash (used in) financing activities
Advance Fee Scheme
Amounts utilised and repaid
Interest credited to advance fees
Receipts from new contracts
Cash (used in) advance fees
Increase in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Analysis of cash and cash equivalents
Cash at bank and in hand
Cash awaiting investment		 Consolidated Charity
2022
£’000
2,997
2,590
9
(441)
1,653
(51)
50
(1,193)
872
(136)
6,350
(14,353)
13,089
(2,371)
37
(1,653)
441
(4,810)
(117)
(117)
(2,554)
30
2,241
(283)
1,140
30,759
31,899
31,331
568
31,899		 Consolidated Charity
2021
£’000
11,311
2,591
41
(723)
2,236
(12,272)
(87)
(536)
1,732
127
4,420
(5,713)
6,756
(3,129)
6
(2,236)
723
(3,593)
(115)
(115)
(2,400)
39
2,181
(180)
532
30,227
30,759
29,816
943
30,759

Charity law requires separate administration of the cash flows of endowed and other restricted funds of the Charity. This constraint has not adversely affected group cash flows as stated above.

The notes on pages 24 to 50 form part of these accounts .

Page 22

THE WELLINGTON COLLEGE CONSOLIDATED CASH FLOWS FOR THE YEAR ENDED 31 JULY 2022

Reconciliation of Net Debt

Cash at bank
Cash awaiting
investment
Total cash
Advance fees
Borrowings due
within one year
Borrowings due in
more than one
year
Less investments
held specifically for
repayment of debt
Finance Leases
Total Debt
Net (Debt)/Cash		 Opening 1
August
2021
29,816
943
30,759
(3,089)
-
(30,000)
32,608
(1,836)
(2,317)
28,442		 Debt/
Finance
Leases
Repaid
-
-
-
-
-
-
117
117
117		 Investment
Value
Movements
-
-
-
-
-
(881)
-
(881)
(881)		 Cash
Flows
1,515
(375)
1,140
283
-
-
-
283
1,423		 Closing 31
July 2022
31,331
568
31,899
(2,806)
-
(30,000)
31,731
(1,719)
(2,794)
29,105

The Borrowings due in more than one year are the College loan notes due for repayment in 2059. The proceeds of the loan note are currently invested to provide funds for the ultimate redemption of the loan. This investment fund is controlled separately by the Governors.

Page 23

THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

1. CHARITY INFORMATION

The object of the College is the advancement of education (whether nationally or internationally) for the public benefit. The College meets this object through its primary aim of providing the College and by supporting, providing or assisting in the provision of other educational establishments or initiatives. The unincorporated charity incorporated under a Royal Charter dated 13th December 1853 (charity number 309093), is domiciled in the UK. The address of the registered office is Wellington College, Crowthorne, Berks RG45 7PU.

2. ACCOUNTING POLICIES

a) Basis of preparation

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

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

No separate SOFA or Income and Expenditure Account have been presented for the College alone as permitted by the Charities SORP (FRS 102).

The surplus of the Charity for the year (excluding Wellington College Services Ltd and Wellington College Educational Enterprises Ltd) was £2,997k (2021: £ 11,334k ).

Having reviewed the funding facilities available to the Consolidated Charity together with the expected ongoing demand for places and the schools’ projected cash flows, the Governors have a reasonable expectation that the Consolidated Charity has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to operate the going concern basis in preparing the financial statements as outlined in the Statement of Accounting and Reporting Responsibilities on page 14.

b) Basis of consolidation

The following definitions have been adopted in these accounts:

Consolidated Charity: TWC and its trading subsidiaries Schools: the school operations of TWC and the College Trusts relating to them

The accounts of the Charity (Schools) comprise:

i) The Wellington College ii) Its Funds

a) Advance Fees b) The Combined Trust Funds c) The Fisher Fund d) The Prince Albert Foundation iii) Eagle House

The results of the subsidiary trading companies are presented in the consolidated SOFA by disclosing the income and expenditure derived from their non-charitable trading activities separately from those of the Charity. A summary profit and loss account for the subsidiaries is

Page 24

THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

included in note 7. The companies’ assets and liabilities are included in the balance sheet on a line-by-line basis, in accordance with the SORP.

c) Fees receivable and similar income

Fees receivable, charges for services and use of premises are accounted for in the year in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions allowed by the College, but include contributions received from designated or restricted funds for scholarships, bursaries and other grants.

d) Donations

Donations receivable for the general purposes of the Charity are credited to “other unrestricted funds”, to distinguish them from direct school income. Donations for purposes restricted by the wishes of the donor are taken to “restricted funds” where these wishes are legally binding on the Governors. Donations required to be retained as capital in accordance with the donor’s wishes are accounted for as “endowments” – permanent or expendable according to the nature of the restriction.

e) Expenditure

Expenditure is accounted for on an accruals basis. Overheads and other costs not directly attributable to particular functional activity categories are apportioned over the relevant categories on the basis of management estimates of the amount attributable to that activity in the year, either by reference to staff time or space occupied, as appropriate. The irrecoverable element of VAT is included with the item of expense to which it relates.

Construction and repair costs, supplied to the College by its subsidiary, are capitalised or expensed and eliminated from consolidated trading income and expenditure.

Page 25

THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

Governance costs comprise the costs of running the charity, including strategic planning for its future development, also internal and external audit, any legal advice for the Governors, and all the costs of complying with constitutional and statutory requirements, such as the costs of Board and Committee meetings and of preparing statutory accounts and satisfying public accountability.

f) Fund accounting

Unrestricted Funds

Unrestricted funds relate to the School’s general operational funds.

Unrestricted Funds – Designated

Designated unrestricted funds relate to funds which have been set aside for particular future expenditure.

Restricted Funds

Restricted funds are those which must be applied in accordance with the purpose specified by the donor. Expenditure relating to these purposes is charged directly to the fund.

Endowment Funds

Endowment funds consist of investments. The purpose to which that investment may be applied is restricted in accordance with the terms of the endowment trust.

g) Pension schemes

The Charity contributes to the Teachers’ Pension Defined Benefits Scheme (TPS) at rates set by the Scheme Actuary and advised to the Board by the Scheme Administrator. The scheme is a multi employer pension scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the school. In accordance with FRS 102 therefore, the scheme is accounted for as a defined contribution scheme. The Charity also contributes to a defined contribution scheme for its non-teaching staff at 11% of annual basic pay. Wellington College, Eagle House and Wellington College Services all operate an auto-enrolment defined contribution scheme with a contribution rate of 5% (from April 2020) for staff who do not wish to join the main non-teaching staff scheme. Contributions to all schemes are charged in the SOFA as they become due in accordance with the rules of the schemes.

Page 26

THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

h) Buildings and equipment

Capitalisation and replacement

The original College land and buildings are all listed properties and are carried at original cost. The Governors do not consider it appropriate to have these revalued.

Expenditure incurred in keeping the properties in a fit and useful condition is written off in the year it is incurred unless the subsequent expenditure provides an enhancement of economic benefits in excess of the previously assessed standard of performance, in which case it is capitalised. Items costing less than £1,000 are written off as an expense as acquired.

Depreciation

The original College buildings are not depreciated as the amounts involved would not be material. Freehold land and building work in progress are also not depreciated. Depreciation on other tangible fixed assets is provided at rates calculated to write off the excess of cost or valuation over estimated residual value over their estimated useful economic lives as follows:

Buildings, improvements and extensions 2% - 10% per annum on cost
Leasehold buildings, and improvements 2% - 10% per annum on cost
Furniture and equipment 10% - 33% per annum on cost
Computer equipment 25% - 33% per annum on cost
Motor vehicles 25% per annum on cost

i) Investments

Listed investments are carried at their mid-market value at the balance sheet date without the deduction of estimated future selling costs. Fair value for investments, such as private equity funds which have no readily identifiable market value are valued at the net asset value estimated by the investment managers. Investment in the subsidiary undertakings is carried at cost.

Investment gains and losses are recognised in the Statement of Financial Activities in the period in which they arise and are applied to the individual funds based on the opening capital balances of each fund.

j) Stock

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

Page 27

THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

k) Leased assets

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet and are depreciated over their useful economic lives. The interest element of these leases is charged to the statement of financial activities account over the lease period. The capital element of the future payments is treated as a liability. Operating leases are accounted for on an accruals basis throughout the life of the lease.

l) Advance Fee Scheme Payments

Amounts received under the College’s Advance Fee Scheme contracts for education not yet utilised to settle school fees are recorded as deferred income and allocated as current liabilities where the education will be provided within 12 months from the reporting date and as longterm liabilities where the education will be provided in subsequent years .

m) Parents’ Deposits

The Governors have reviewed the contract terms under which Pupil fee deposits are held by the School. Although under normal circumstances these will be repaid over future years when the pupils complete their education at the school, pupils can leave at earlier dates. The School does not therefore have an unconditional right to retain the individual deposits for at least 12 months after the balance sheet date and, in line with the requirements in FRS 102, the balance of the deposits held at 31 July 2022 have been included within current liabilities. The prior year Pupil fee deposits balance has been similarly represented.

n) Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

o) Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

p) Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

q) Financial Instruments

The College only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. The basic financial instruments are held at amortised cost and at fair value depending upon their respective nature. See Note 27 for further information.

Page 28

THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

3. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the charity’s accounting policies, which are described in note 2, Trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects the current and future periods.

The trustees consider that there are no material judgements in applying accounting policies or key sources of estimation uncertainty.

4. SCHOOL FEES RECEIVABLE

(a)
Fees receivable consist of:
Gross fees
Less: Total bursaries, grants and allowances
Add back scholarships, grants etc. paid for by Trust Funds
(b)
Total grants and awards paid for by Trust Funds consist of:
Scholarships, grants etc.
Individual awards		 2022
£’000
51,159
(4,276)
46,883
2,107
48,990
850
1,257
2,107		 2021
£’000
46,124
(4,029)
42,095
1,936
44,031
850
1,086
1,936

5. ANCILLARY TRADING INCOME

Entrance and registration fees
Income from school trips
Extras		 2022
£’000
758
216
1,414
2,388		 2021
£’000
679
286
-
965

Page 29

THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

6. NON ANCILLARY TRADING INCOME

.
NON ANCILLARY TRADING INCOME
Lettings
Easter courses
Other		 2022
£’000
313
143
58
514		 2021
£’000
(47)
-
63
16

7. NON – CHARITABLE TRADING:

a) Wellington College Services Ltd

The College owns the entire share capital of Wellington College Services Ltd (formerly Wellington College Enterprises until its name change on 1 November 2022) (a company incorporated in England and Wales, company number 01259773), which provides leisure and construction services. It pays its taxable profits under Gift Aid to the College.

Turnover
Administration costs
Transfers between funds
Operating and net profit
Corporation tax payable
(Gift aid)/College support
Profit/(loss) transferred to reserves		 2022
£’000
2,302
(2,038)
(128)
136
(6)
(130)
-		 2021
£’000
1,169
(1,608)
(122)
(561)
(20)
581
-

At 31 July 2022 the total assets of the subsidiary were £2,003k (2021: £1,851k), total liabilities £573k (2021: £421k) and shareholders’ funds £1,430k (2021: £1,430k).

The aggregate non charitable trading income and costs from the subsidiary included intra-group trading which are eliminated on consolidation, of £128k and £165k respectively (2021: £164k and £122k).

Page 30

THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

7. NON – CHARITABLE TRADING: (CONTINUED)

b) Wellington College Educational Enterprises Ltd

The College owns the entire share capital of Wellington College Educational Enterprises Ltd (formerly Wellington College International Limited until its name change on 1 November 2022), (a company incorporated in England and Wales, company number 06578707) which manages the setting up of Wellington schools abroad. It pays its taxable profits under Gift Aid to the College.

Turnover
Bank interest received
Gross profit
Administration costs
VAT recovery
Transfers between funds
Operating and net profit
Corporation tax payable
Gift aid
Profit transferred to reserves		 2022
£’000
4,389
-
4,389
4,389
(994)
551
(380)
3,566
-
(3,566)
-		 2021
£’000
3,891
1
3,892
3,892
(1,147)
(364)
2,381
(12)
(2,369)
-

At 31 July 2022 the total assets of the subsidiary were £1,769 (2021: £591k), total liabilities £1,749k (2021: £571k) and shareholders’ funds £20k (2021: £20k).

The aggregate non-charitable trading costs of the subsidiary included intra-group trading which is eliminated on consolidation, of £380k (2021: £364k).

c) Dormant Companies

The Wellington College Limited (a company incorporated in England and Wales) The company was formed to protect the name of the College. The company did not trade in the year.

Wellington College International (India) Limited (a company incorporated in England and Wales) Wellington College International (Russia) Limited (a company incorporated in England and Wales). The name of this company was changed to WCI Developments Limited on 4[th] August 2022.

These companies were formed to investigate international development opportunities in the respective territories named. They did not trade in the year.

Page 31

THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

8. INVESTMENT INCOME

8.
INVESTMENT INCOME
2022
£’000
Listed investments
255
Bank interest received
186
441
9.
OTHER INCOME
2022
£’000
(Loss) on disposal of fixed assets
(9)
10.
ANALYSIS OF EXPENDITURE
Staff costs
Depreciation
Other
£’000
£’000
£’000
Charitable activities
Teaching costs
18,228
-
5,595
Welfare
2,669
-
4,463
Premises
1,466
2,131
10,003
Support costs
3,137
411
4,080
School’s operating costs
25,500
2,542
24,141
Grants, awards and prizes
-
-
2,833
Total Charitable Activities
25,500
2,542
26,974
Raising funds
Fundraising and publicity
387
-
113
Finance and other costs
-
-
1,653
TOTAL FOR SCHOOLS
25,887
2,542
28,740
Trading subsidiaries
1,492
48
926
TOTAL FOR CONSOLIDATED
CHARITY
27,379
2,590
29,666		 2022
£’000
255
186







2022
Total
£’000
23,823
7,132
13,600
7,628
52,183
2,833
55,016
500
1,653
57,169
2,466
59,635		 2021
£’000
625
98
441 723
2022
£’000		 2021
£’000
(9) (41)
2021
Total
£’000
20,489
7,186
12,517
6,616
46,808
2,242
49,050
20
2,236
51,306
2,798
54,104

Included within support costs are governance costs of £67k (2021: £61k).

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

10 ANALYSIS OF EXPENDITURE (CONTINUED)

Prior year
Charitable activities
Teaching costs
Welfare
Premises
Support costs
School’s operating costs
Grants, awards and prizes
Total Charitable Activities
Raising funds
Fundraising and publicity
Finance and other costs
TOTAL FOR SCHOOLS
Trading subsidiaries
TOTAL FOR CONSOLIDATED
CHARITY
Analysis of Payroll Costs
Wages and salaries
Social Security insurance costs
Pension costs		 2021
Staff costs
Depreciation
Other
Total
£’000
£’000
£’000
£’000
16,928
-
3,561
20,489
2,742
-
4,444
7,186
1,458
442
10,617
12,517
3,150
2,101
1,365
6,616
24,278
2,543
19,987
46,808
-
-
2,242
2,242
24,278
2,543
22,229
49,050
-
-
20
20
-
-
2,236
2,236
24,278
2,543
24,485
51,306
1,245
48
1,505
2,798
25,523
2,591
25,990
54,104
Consolidated Charity
Schools
2022
2021
2022
2021
£’000
£’000
£’000
£’000
21,835
20,432
20,471
20,432
2,292
2,072
2,223
2,072
3,252
3,019
3,194
3,019
27,379
25,523
25,888
25,523		 2021
Staff costs
Depreciation
Other
Total
£’000
£’000
£’000
£’000
16,928
-
3,561
20,489
2,742
-
4,444
7,186
1,458
442
10,617
12,517
3,150
2,101
1,365
6,616
24,278
2,543
19,987
46,808
-
-
2,242
2,242
24,278
2,543
22,229
49,050
-
-
20
20
-
-
2,236
2,236
24,278
2,543
24,485
51,306
1,245
48
1,505
2,798
25,523
2,591
25,990
54,104
Consolidated Charity
Schools
2022
2021
2022
2021
£’000
£’000
£’000
£’000
21,835
20,432
20,471
20,432
2,292
2,072
2,223
2,072
3,252
3,019
3,194
3,019
27,379
25,523
25,888
25,523		 2021
Staff costs
Depreciation
Other
Total
£’000
£’000
£’000
£’000
16,928
-
3,561
20,489
2,742
-
4,444
7,186
1,458
442
10,617
12,517
3,150
2,101
1,365
6,616
24,278
2,543
19,987
46,808
-
-
2,242
2,242
24,278
2,543
22,229
49,050
-
-
20
20
-
-
2,236
2,236
24,278
2,543
24,485
51,306
1,245
48
1,505
2,798
25,523
2,591
25,990
54,104
Consolidated Charity
Schools
2022
2021
2022
2021
£’000
£’000
£’000
£’000
21,835
20,432
20,471
20,432
2,292
2,072
2,223
2,072
3,252
3,019
3,194
3,019
27,379
25,523
25,888
25,523
Consolidated Charity
2022
2021
£’000
£’000
21,835
20,432
2,292
2,072
3,252
3,019
27,379
25,523
25,888
25,523

The average number of employees in the year in the consolidated charity was 720 (2021: 664) of which 226 (2021: 212) were teaching staff.

Neither the Governors of the Consolidated Charity nor persons connected with them received any remuneration or other benefits from the Consolidated Charity or any connected organisation. During the year, 3 Governors of the Consolidated Charity were reimbursed travel expenses totalling £669 (2021: 1 Governors were reimbursed £101).

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

10 ANALYSIS OF EXPENDITURE (CONTINUED)

The number of employees of the consolidated charity whose emoluments, excluding employer pension contributions, but including cash in lieu of pension, exceeded £60,000 was:

2022 2021
No. No.
£60,000 - £70,0000 25 32
£70,000 - £80,000 17 17
£80,000 - £90,000 7 6
£90,000 - £100,000 4 4
£100,000 - £110,000 1 -
£110,000 - £120,000 1 2
£120,000 - £130,000 2 1
£150,000 - £160,000 1 -
£200,000 - £210,000 - 1
£260,000 - £270,000 1 1
£280,000 - £290,000 1 -

In connection with these higher paid employees, retirement benefits are accruing under defined contribution schemes for 12 employees (2021: 13) and under multi-employer defined benefit schemes for 48 employees (2021: 50). For the people accruing benefits under the defined contribution scheme the total employer contributions were £90,176 (2021: £91,034).

Key management personnel of the combined entity received aggregate remuneration, including employer pension contributions, of £1,885k (2021: £1,985k).

Termination payments made to staff came to £ nil in 2022 (2021 £ nil).

11. TRANSFERS

The amount transferred between funds can be analysed as follows:

Rents and leases
WCEE/WCS
Management charges
Transfer of Donations
Total Consolidated Charity		 Unrestricted
General
Designated
£’000
£’000
20
(20)
1,800
(1,800)
380
(380)
246
(400)
2,446
(2,600)		 Restricted
£’000
-
-
-
154
154		 Endowed
£’000
-
-
-
-
-

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

12. NET INCOME/(EXPENDITURE)

.
NET INCOME/(EXPENDITURE)
2022 2021
This is stated after charging/(crediting) £’000 £’000
Loss on disposal of fixed assets 9 41
Auditor’s remuneration:
For audit 64 57
For other services 10 9
Payments under operating leases
For plant and machinery 308 397
Amounts credited to advance fee contracts 30 39

Audit fees (inclusive of VAT) for the Schools audit were £46,020 (2021: £40,380).

13. FINANCING COSTS

Investment Managers charges
Bank charges
Interest		 2022
£’000
533
1
1,119
1,653		 2021
£’000
1,094
12
1,130
2,236

In February 2019 the College issued a £30m loan note to Pricoa which is repayable in 2059. The interest rate is 3.3%.

A change to the method of charging for investment services was agreed with Partners Capital in 2021 which allows for the disclosure of all charges made within the investments. These charges had previously been reflected in the net asset value. The figure for 2021 includes £157k of charges which relate to 2020. This information was not available at the completion of the accounts for 2020.

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

14. TANGIBLE FIXED ASSETS

CONSOLIDATED CHARITY
Cost
01 August 2021
Additions
Disposals
31 July 2022
Depreciation
01 August 2021
Charge for the year
Disposals
Net book value as at 31 July 2022
Net book values 31 July 2021		 Assets in the
course of
construction
£’000
683
1,610
-
2,293
-
-
-
-
2,293
683		 Freehold land
and buildings
£’000
84,984
200
32
85,216
25,516
2,131
(19)
27,628
57,588
59,468		 Furniture and
equipment
£’000
7,837
561
(282)
8,116
5,037
436
(185)
5,288
2,828
2,800		 Motor vehicles
£’000
617
-
(16)
601
583
23
(16)
590
11
34		 Total
£’000
94,121
2,371
(266)
96,226
31,136
2,590
(220)
33,506
62,720
62,985

At 31 July 2022 the net book value of furniture and equipment includes an amount of £1,883,000 in respect of assets held under finance leases ( 2021: £1,957,000 ). The depreciation charge for the year on these assets was £74,101 ( 2021:£74,101 ).

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

14. TANGIBLE FIXED ASSETS (CONTINUED)

SCHOOLS
Cost
01 August 2021
Additions
Disposals
31 July 2022
Depreciation
01 August 2021
Charge for the year
Disposals
Net book value as at 31 July 2022
Net book values 31 July 2021		 Assets in the
course of
construction
£’000
683
1,610
-
2,293
-
-
-
-
2,293
683		 Freehold land
and buildings
£’000
83,369
200
32
83,601
25,108
2,100
(19)
27,189
56,412
58,261		 Furniture and
equipment
£’000
7,453
545
(282)
7,716
4,695
419
(186)
4,928
2,788
2,758		 Motor vehicles
£’000
618
-
(16)
602
583
23
(16)
590
12
35		 Total
£’000
92,123
2,355
(266)
94,212
30,386
2,542
(221)
32,707
61,505
61,737

At 31 July 2022 the net book value of furniture and equipment includes an amount of £1,883,000 in respect of assets held under finance leases ( 2021: £1,957,000 ). The depreciation charge for the year on these assets was £74,101 ( 2021:£74,101 ).

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

15. INVESTMENTS

5. INVESTMENTS
Investments at 1 August
Additions
Disposals
Revaluations
Investments at 31 July
Cash awaiting re-investment
Total Investments 31 July
Listed on the Stock Exchange
Investment in subsidiaries
Cash deposits		 Consolidated Charity
2022
2021
£’000
£’000
73,922
62,693
14,353
5,713
(13,089)
(6,756)
51
12,272
75,237
73,922
568
943
75,805
74,865
75,237
73,922
-
-
568
943
75,805
74,865		 Schools
2022
2021
£’000
£’000
75,372
64,143
14,353
5,713
(13,089)
(6,756)
51
12,272
76,687
75,372
568
943
77,255
76,315
75,237
73,922
1,450
1,450
568
943
77,255
76,315

The Charity carries investments at cost of £1,430,000 in Wellington College Services Ltd, £20,000 in Wellington College Educational Enterprises Ltd, £1 in Wellington College International (Russia) Limited (Renamed WCI Developments Limited as of 4 August 2022), £1 in Wellington College International (India) Limited and £1 in The Wellington College Limited all of which represent 100% of the issued share capital.

UK
Overseas
Cash-UK
Investments at 31 July		 Consolidated Charity and Schools
2022
2021
£’000
£’000
42,828
49,107
32,409
24,815
568
943
75,805
74,865		 Consolidated Charity and Schools
2022
2021
£’000
£’000
42,828
49,107
32,409
24,815
568
943
75,805
74,865
74,865

Investments which comprise more than 5% of total market value of investments:

2022 2021
% %
Partners Master Portfolio C 50.8% 51.7%
Partners Phoenix II 14.2% 7.1%
Partners Greyhawk Fund 11.1% 12.0%
Partners Harrier Fund 6.5% 6.2%

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

16. DEBTORS

6.
DEBTORS
Fees and trade debtors
Due from group entities
Other debtors
Prepayments		 Consolidated Charity
2022
2021
£’000
£’000
1,110
331
-
-
625
196
471
486
2,206
1,013		 Schools
2022
2021
£’000
£’000
225
124
3,225
2,461
14
184
442
459
3,906
3,228

17. CREDITORS: Amounts falling due within one year

Lease creditors (see note 20)
Due to Group entities
Fees received in advance
Trade creditors
Taxation and social security
Entrance fees
Other creditors and accruals
Advance fees (see note 19)		 Consolidated Charity
2022
2021
£’000
£’000
127
121
-
-
1,026
1,115
2,613
2,006
673
626
4,244
4,380
5,598
5,291
1,741
1,933
16,022
15,472		 Schools
2022
2021
£’000
£’000
127
121
1,496
2,216
1,026
1,115
2,413
1,858
673
572
4,244
4,380
5,197
4,863
1,741
1,933
16,917
17,058

A 40 year loan note for £30m was issued to Pricoa on February 11[th] 2020 at a rate of 3.3% for repayment in February 2059.

The maturity of the loans included within creditors is summarised below for Consolidated Charity and Schools.

Non current
After 5 years
Within 2 to 5 years
Within 1 to 2 years
Current
Within 1 year
Total		 2022
£’000
30,000
-
-
30,000
-
30,000		 2021
£’000
30,000
-
-
30,000
-
30,000

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

18. CREDITORS: Amounts falling due after more than one year

8.
CREDITORS:Amounts falling du		 e after more than one year
Bank loan
Lease Creditor (note 20)
Advance fees (note 19)		 Consolidated Charity
2022
2021
£’000
£’000
30,000
30,000
1,592
1,715
1,065
1,156
32,657
32,871		 Schools
2022
2021
£’000
£’000
30,000
30,000
1,592
1,715
1,065
1,156
32,657
32,871

19. DEFERRED INCOME-ADVANCE FEE PAYMENTS

Parents may enter into a contract to pay tuition fees in advance. The money may be returned subject to specific conditions on the receipt of one term’s notice. Assuming pupils remain at the College, advance fees will be applied as follows:

Non current
After 5 years
Within 2 to 5 years
Within 1 to 2 years
Current
Within 1 year		 2022
£’000
-
351
714
1,065
1,741
2,806		 2021
£’000
-
463
693
1,156
1,933
3,089

The balance of the fund represents the accrued liability under the contracts. The movements during the year were:

Balance at 1 August
New contracts
Amounts accrued to contracts
Amounts utilised in payment of fees:
Balance at 31 July		 2022
£’000
3,089
2,241
30
5,360
(2,554)
2,806		 2021
£’000
3,269
2,181
39
5,489
(2,400)
3,089

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

20. LEASE CREDITORS

Net obligations are payable as follows:

Consolidated Charity Consolidated Charity Schools
2022 2021 2022 2021
£’000 £’000 £’000 £’000
Within one year 127 121 127 121
In 2 to 5 years 581 549 603 549
In more than 5 years 1,011 1,166 989 1,166
1,719 1,836 1,719 1,836
. ALLOCATION OF THE GROUP NET ASSETS
The net assets are held for the various funds and advance fees as follows:
Current Year
Fixed Assets		 Investments Net current
Assets/
(Liabilities)		 Long term
Liabilities		 Total
£’000 £’000 £’000 £’000 £’000
Endowment funds
 - (9,028)
30,177		 - 21,149
Restricted funds
 - (8,704)
29,094		 - 20,390
Unrestricted funds:
Other designated funds 1,215 124,273
(416,617)		 - (291,129)
Other (Schools) 61,505 (32,526)
78,810		 (31,592) 76,197
62,720 74,015
(278,536)		 (31,592) (173,393)
Advance fee (designated)
 - 1,790
296,784		 (1,065) 297,509
Consolidated Charity total 62,720 75,805
18,248		 (32,657) 124,116
Prior Year
Fixed Assets		 Investments Net current
Assets/
(Liabilities)		 Long term
Liabilities		 Total
£’000 £’000 £’000 £’000 £’000
Endowment funds - 18,149
2,617		 - 20,766
Restricted funds - 16,816
2,411		 - 19,227
Unrestricted funds:
Other designated funds 1,248 3,470
272		 - 4,990
Other (Schools) 61,737 34,491
11,151		 (31,715) 75,664
62,985 72,926
16,451		 (31,715) 120,647
Advance fee (designated) - 1,939
(311)		 (1,156) 472
Consolidated Charity total 62,985 74,865
16,140		 (32,871) 121,119

21. ALLOCATION OF THE GROUP NET ASSETS

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

22. ENDOWMENT FUNDS

2. ENDOWMENT FUNDS
Current Year
Balance at 1
August 2021		 Income Expenditure Transfers and
Investment
Gains/(Loses)		 Balance as at
31 July 2022
£’000 £’000 £’000 £’000 £’000
Foundation Capital 2,920 - (27) 148 3,041
Other Trusts:
Fisher Endowment 8,257 - - (132) 8,125
Scholarships, Bursaries 8,932 - (78) 425 9,279
Prizes and other funds 657 - (11) 58 704
Consolidated Charity Total 20,766 - (116) 499 21,149
Prior Year
Balance at 1
August 2020		 Income Expenditure Transfers and
Investment
Gains/(Loses)		 Balance as at
31 July 2021
£’000 £’000 £’000 £’000 £’000
Foundation Capital 2,511 - (41) 450 2,920
Other Trusts:
Fisher Endowment 7,279 - (117) 1,095 8,257
Scholarships, Bursaries 7,749 - (9) 1,192 8,932
Prizes and other funds 499 - - 158 657
Consolidated Charity Total 18,038 - (167) 2,895 20,766

The Foundation Capital represents the original endowment to provide education to children of deceased commissioned service officers under the terms of the Royal Charter of 1853, as subsequently amended.

The Fisher incorporates the Heritage Fund. The rules which were set up by the Governors in 1992 for the Heritage Fund were rescinded and the combined fund will be used primarily for remission support.

The other special trusts consist of a number of individual trust and prize funds set up by individual donors for scholarships, prizes and bursaries.

The Foundation and other special trusts are pooled for investment, are allocated their proportion of investment income and gains and losses and bear their own expenses.

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

23. RESTRICTED FUNDS

Current Year
Foundation Endowment
Other Trusts:
Finnis Trust
Fisher Endowment
Scholarships and Bursaries
Prince Albert Society
Prizes and other funds
Development
Building Projects
Consolidated Charity Total
Prior Year
Foundation Endowment
Other Trusts:
Finnis Trust
Fisher Endowment
Scholarships and Bursaries
Prince Albert Society
Prizes and other funds
Development
Building Projects
Consolidated Charity Total		 Balance at
1 August
2021
Income
Expenditure
Transfers and
Investment
Gains/(Loses)
Balance as
at 31 July
2022
£’000
£’000
£’000
£’000
£’000
592
25
(83)
24
558
293
2
(1)
12
306
38
2
(1)
(1)
38
5,614
150
(1,379)
281
4,666
11,138
5
(876)
2,909
13,176
1,451
19
15
60
1,545
10
3,595
(1)
(3,599)
5
91
2
-
3
96
19,227
3,800
(2,326)
(311)
20,390
Balance at
1 August
2020
Income
Expenditure
Transfers and
Investment
Gains/(Loses)
Balance as
at 31 July
2021
£’000
£’000
£’000
£’000
£’000
322
38
(77)
309
592
250
3
-
40
293
32
6
(4)
4
38
5,476
171
(1,086)
1,053
5,614
8,705
-
(432)
2,865
11,138
1,294
31
(216)
342
1,451
2
2,482
(2)
(2,472)
10
77
1
-
13
91
16,158
2,732
(1,817)
2,154
19,227

These include the income reserves on each of the Endowed Capital funds plus other scholarship and bursary funds.

The Prince Albert Foundation receives donations directed at the provision of life changing bursaries for pupils who would not otherwise be able to attend the College.

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

24a. UNRESTRICTED FUNDS-DESIGNATED

Current Year
Balance at Transfers and Balance as
1 August Income Expenditure Investment at 31 July
2021 Gains/(Loses) 2022
£’000 £’000 £’000 £’000 £’000
Advance fee income 472 4 (62) (115) 299
Fisher Fund 895 59 (180) (14) 760
Entry Bursary Fund 4,095 30 (506) 1,702 5,321
Schools total 5,462 93 (748) 1,573 6,380
Trading companies’ reserves - 6,562 (2,447) (4,115) -
Consolidated Charity Total 5,462 6,655 (3,195) (2,542) 6,380
Prior Year
Balance at Transfers and Balance as
1 August Income Expenditure Investment at 31 July
2020 Gains/(Loses) 2021
£’000 £’000 £’000 £’000 £’000
Advance fee income 123 57 (70) 362 472
Fisher Fund 881 157 (260) 117 895
Entry Bursary Fund 3,467 46 (604) 1,186 4,095
Schools total 4,471 260 (934) 1,665 5,462
Trading companies’ reserves - 4,896 (2,798) (2,098) -
Consolidated Charity Total 4,471 5,156 (3,732) (433) 5,462

Designated funds include the non-endowed portion of the Fisher/Heritage Fund; and the reserves of the Advance Fee Fund, Wellington College Services Ltd and Wellington College Educational Enterprises Ltd.

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

24b. UNRESTRICTED FUNDS – OTHER

Current Year
Retained Income -
Consolidated Charity Total
Prior Year
Retained Income -
Consolidated Charity Total		 Balance at 1
August 2021
Income
Expenditure
Transfers and
Investment
Gains/(Loses)
Balance as at 31
July 2022
£’000
£’000
£’000
£’000
£’000
75,664
52,126
(53,998)
2,405
76,197
Balance at 1
August 2020
Income
Expenditure
Transfers and
Investment
Gains/(Loses)
Balance as at 31
July 2021
£’000
£’000
£’000
£’000
£’000
71,141
45,255
(48,388)
7,656
75,664

25 CONTRACTS AND COMMITMENTS

At 31 July 2022 there were capital commitments of £18,892,000 relating to the building of Woodland Quad (2021: £ nil).

At 31 July 2022 a number of major maintenance projects were in progress. The committed expenditure required to complete these projects was £1,506,000 (2021: £359,000).

At 31 July 2022 the Consolidated Charity had future minimum lease payments under non-cancellable operating leases as follows:

Expiring:
In less than one year
Between two and five years
Between five and ten years		 Land and
Buildings
2022
2021
£’000
£’000
-
-
-
-
-
-
-
-		 Plant and
Machinery
2022
2021
£’000
£’000
180
245
292
339
-
-
472
584

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

26. PENSION COSTS

Consolidated Charity

a) Teachers’ Pension Defined Benefits Scheme

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes employer contributions payable to the TPS of £2,468,553 (2021: £ 2,292,721 ) and at the year-end £299,706 (2021 - £ 278,211 ) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following a public consultation, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations.

The 2016 cost control valuations have since been completed in January 2022, and the results indicated that there would be no changes to benefits or member contributions required. The results of the cost cap valuation are not used to set the employer contribution rate, and HM Treasury has confirmed that any changes to the employer contribution rate resulting from the 2020 valuations will take effect in April 2024.

Until the 2020 valuation is completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

26. PENSION COSTS (continued)

b) Non teaching staff Defined Contribution Scheme

The school also runs a defined contribution scheme for its non-teaching staff. The school’s contributions to the scheme during the year ended 31 July 2022 were £577,412 (2021: £524,624) at the rate of 11% of gross salary.

Wellington College, Eagle House and Wellington College Services all operate an auto-enrolment defined contribution scheme for staff who do not wish to join the main non-teaching staff scheme. Contributions to this scheme were £203,942 in the year (2021: £201,489) at the rate of 5% of gross salary.

Total outstanding contributions for non-teaching schemes at the year end were £nil (2021: nil).

27. FINANCIAL INSTRUMENTS

. FINANCIAL INSTRUMENTS
Consolidated Charity
Financial assets measured at amortised cost
Financial liabilities measured at amortised cost
Financial assets measured at fair value
The Consolidated Charity’s’ income expense gains and losses in respect of financial instruments are
summarised below:
Total income for financial assets held at amortised cost
Total income for financial assets held at fair value
Total interest expense for financial liabilities held at amortised cost
Schools
Financial assets measured at amortised cost
Financial liabilities measured at amortised cost
Financial assets measured at fair value
The Schools’ income expense gains and losses in respect of financial instruments are summarised
below:
Total income for financial assets held at amortised cost
Total income for financial assets held at fair value
Total interest expense for financial liabilities held at amortised cost		 2022
2021
£’000
£’000
33,633
31,286
44,175
43,515
75,237
73,922
186
94
255
723
(1,119)
(1,130)
2022
2021
£’000
£’000
34,556
32,842
45,067
45,153
75,237
73,922
175
93
255
723
(1,119)
(1,130)

Financial assets measured at amortised cost comprise fee and trade debtors, amounts owed by group undertakings, other debtors and cash and cash equivalents less prepayments and VAT debtors,

Financial assets measured at fair value comprise listed investments.

Financial liabilities measured at amortised cost comprise bank loans, amounts owed to group companies, net obligations under finance leases and hire purchase contracts, trade creditors, other creditors and accruals less deferred income.

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

28. STATEMENT OF FINANCIAL ACTIVITIES: COMPARATIVE YEAR DETAIL

INCOME AND ENDOWMENTS FROM
Charitable activities
School fees receivable
Ancillary trading income
Other trading activities
Non-ancillary trading
Non-charitable trading
Investments
Investment income
Voluntary Sources
Donations and capital grants
Other Income/(expense)
Total Income		 Unrestricted
Schools
Designated
Schools &
Designated
£’000
£’000
44,031
-
44,031
965
-
965
16
-
16
-
4,896
4,896
214
260
474
70
-
70
(41)
-
(41)
45,255
5,156
50,411		 Restricted
£’000
-
-
-
-
249
2,483
-
2,732		 Endowed
£’000
-
-
-
-
-
-
-
-		 Consolidated
Charity
2021
£’000
44,031
965
16
4,896
723
2,553
(41)
53,143

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

EXPENDITURE ON
Charitable activities
School operating costs and grant making
Raising funds
Non-charitable trading
Fundraising costs
Financing costs
Total expenditure
NET INCOME BEFORE GAINS
Investment (losses)/gains
Transfers between funds
NET INCOME/(EXPENDITURE)
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Schools
Designated
Schools &
Designated
£’000
£’000
46,811
700
47,511
-
2,798
2,798
20
-
20
1,557
234
1,791
48,388
3,732
52,120
(3,133)
1,424
(1,709)
5,118
1,097
6,215
2,538
(1,530)
1,008
4,523
991
5,514
71,141
4,471
75,612
75,664
5,462
81,126		 Restricted
£’000
1,539
-
-
278
1,817
915
3,162
(1,008)
3,069
16,158
19,227		 Endowed
£’000
-
-
-
167
167
(167)
2,895
-
2,728
18,038
20,766		 Consolidated
Charity
2022
£’000
49,050
2,798
20
2,236
54,104
(961)
12,272
-
11,311
109,808
121,119

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022

29. RELATED PARTY TRANSACTIONS

During the year one Governor, D Ritchie provided Financial training services totalling £1,500 to pupils (2021: £400 of Financial training services).

There were no other related party transactions in current or prior year.

Page 50