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2023-07-31-accounts

Registered Charity Number: 309093

THE WELLINGTON COLLEGE ACCOUNTS AND REPORTS FOR THE YEAR ENDED 31 JULY 2023

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 (resigned 31 July 2023)[2][6] F A Kirk[4 6 7] V Rhodes[3 4 ] H Stevenson[2 ] J May[1 2 5 ] M Milliken-Smith[1 5 ] E McKendrick[3 4 ] J Garvey[2 ] Dr C Marr[3 5 ] Sir C Tickell[5 7] E M Judge[4 5 ] Lord K Billimoria (appointed 3 March 2023)

¹Nominations Committee 2 Business and Finance Committee 3 Education Committee 4 Pastoral & Safeguarding Committee 5 Public Benefit & Social Responsibility Committee 6 Eagle House Council – until December 2022 7 Eagle House Steering Committee – from January 2023

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THE WELLINGTON COLLEGE GOVERNOR’S REPORT FOR THE YEAR ENDED 31 JULY 2023

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

Key Management Personnel

The Master J E L Dahl Eagle House Headmaster E Venables (from 1 September 2023) J Jones (from 1 January 2023 until 31 August 2023) A P N Barnard (until 31 December 2022)

Group Finance and Operations Director, Bursar S J Crouch Second Master C Henderson Senior Master M J Oakman (until 31 July 2023) Deputy Academic B Evans Deputy Co-Curricular I Sutcliffe (until 31 July 2023) N Creed (from 1 September 2023) Director of the Bridge I Henderson Deputy Pastoral D Walker (until 31 July 2023) T Wayman (from 1 September 2023) Deputy Safeguarding D Lynch Director of Admissions E Venables (until 31 August 2023) P Mann (from 1 September 2023) Director of Strategic Advancement M S Lindo Director of EDI and Social Responsibility N Charlier 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 (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

The Governors of Wellington College present their annual report for the year ended 31 July 2023 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.

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 2023

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 are:

Various governors take on a leading role in linking to various areas of College activities including Finance. Virginia Rhodes is the designated Governor for Safeguarding in both Wellington College and Eagle House.

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 Wellington Governors. The Headmaster of Eagle House is charged with the day-to-day administration of Eagle House and reports to the Master of the College

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.

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. Following challenges in the two preceding years arising from the closure of the Club ,as a result of national lockdown measures, and the absence of external letting opportunities WCS is now on a recovery trajectory. WCS made trading income of £496k in the year, which was gift aided to the College’s Trust Funds ( 2022: trading income of £130k ).

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THE WELLINGTON COLLEGE GOVERNOR’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

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 2023 this amounted to £3,192k (2022: £3,566k).

The Wellington College Limited is a dormant company, formed to protect the name of the College. WCI Developments Limited (formerly Wellington College International (Russia) Limited) was formed to investigate international development opportunities. It did not trade in the year and is 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.

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:

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THE WELLINGTON COLLEGE GOVERNOR’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

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:

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.

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THE WELLINGTON COLLEGE GOVERNOR’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

  1. 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:

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

  3. 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.

  4. 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 31 pupils as of September 2023 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.

Educational Grants Scheme

The College has continued a scheme for schools and other educational institutions to apply for grants of up to £423,000 in 2022-23,

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:

Wellington College Learning Alliance

Wellington leads a partnership that brings 28 state schools into an active network of learning and sharing. The College co-ordinates a programme of events for students, ranging from academic extension to wellbeing and practical subjects such as applying to Oxbridge. Participating schools pay an annual fee of £250 to be part of the partnership, and in 2022-23 nearly 2,000 students took part in events. It also runs a programme of events and training for teachers and support staff in those schools.

The Wellington College Learning Alliance comprises of two separate support strands, namely, the Teaching Alliance and the Student Alliance.

The Teaching Alliance is our teacher-facing programme. We believe that to provide the very best education to all young people, we need to also ensure the same opportunities exist for teachers and support staff across our alliance schools. As a result of establishing meaningful relationships with colleagues across our alliance schools, impactful collaboration is developed. The Teaching Alliance provides a number of opportunities including a relevant and research-informed CPLD programme, a wide variety of subject specific support groups and conferences, and our Educational Specialist Leaders programme.

The Student Alliance is our student facing programme, provides students across our alliance schools with a wide variety of aspirational and developmental opportunities. These are often bespoke to cater best for the needs of the young people across our alliance of schools. The Student Alliance programme

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THE WELLINGTON COLLEGE GOVERNOR’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

of events is reviewed at the end of each academic year and our alliance schools are consulted to help us to decide what should be available via the programme during the next academic year.

As part of the Student Alliance, we also provide the Wheeler Programme . This has been running since 2016, and provides a select group of 24 students the opportunity to join a 5-year programme, designed to help each student become the best version of themselves. The programme meets each student where they are and aims to help these young people discover their ‘why’. 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.

Festival of Education

Every year Wellington College hosts the Festival of Education – the biggest professional learning event in secondary education in the UK, with over 5000 attendees. A significant number of free and discounted tickets are offered to state schools.

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. The Academy is part of the Wellington College Learning Alliance with access to the CPLD programme and inter-school support, as well as the Student alliance providing access to an array of student opportunities across Key Stages 3-5 including masterclasses, HE support and advice and the Wheeler Programme.

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. £46,000 was granted to 39 local state schools to fund 52 projects supporting 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.

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THE WELLINGTON COLLEGE GOVERNOR’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

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 1,097 (2022:1,090) pupils of whom approximately 79% were boarders and 21% were day pupils and 45% 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 354 ( 2022: 394) of whom 24 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 2022-23 is 1,100 pupils at Wellington College and 352 at Eagle House.

Specific achievements against the Charitable Objectives include:

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

Scholarships do not 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.

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THE WELLINGTON COLLEGE GOVERNOR’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

There are 386 holders of awards in the schools. Of these 234 received some degree of fee remission representing 6.0% of gross fees. Thirty pupils received full remission and a further ten received 85% or more in remission. External funding covered £9k of fee remission. Restricted funds paid £3,008k towards covering remissions and the balance was drawn from non-restricted funds.

Foundationers

Included within the remissions noted above, Foundation awards have been made to four pupils in 202223, totalling £92k. 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.

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 2023

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 £4,259,000 or 10.1% of net fee income (2022: £3,538,000 or 8.4%). Eagle House produced an operating cash surplus of £109,000 or 1.6% of net income (2022: £705,000 or 10.4%) The overall net incoming resources of the Consolidated Charity, including its trading companies, were a surplus of £1,723k (2022: surplus of £2,946k), which after net investment gain of £1.2m (2022: gain of £51k), gave a net increase in funds of £2,949 (2022: £2,997), in the year.

Following two loss making years as a result of the effects of Covid-19 restrictions on its operations WCS continued its return to profit with a surplus of £496k (2022: surplus of £130k.)

Wellington College International received the payments of franchise fees from Wellington schools in China and Thailand during 2022-23. A profit of £3,192k (2022: £3,566) was generated of which £3,192k was donated to College.

Designated Funds

The Charity currently holds £7,261,000 of designated funds. The largest element, £6,189,000, 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, £780,000, 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 7.7% 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 (2023: £20,915k), 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 2023

Reserves Policy continued

The current year has seen a significant investment in the fixed assets of the schools, reducing potential free reserves. However, the building programme was undertaken with a long-term loan, and therefore offsetting these borrowings, the trustees consider the available free reserves at 31 July 2023 to be £17,810k (2022: £15,196k) . 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 2023

ACCOUNTING AND REPORTING RESPONSIBILITIES

The Governors are responsible for preparing the Governors’ Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

The law applicable to charities in England requires the Governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and the group, and of the incoming resources and application of resources of the charity and group for that period. In preparing these financial statements, the Governors are required to:

The Governors are responsible for ensuring that adequate accounting records are maintained that are sufficient to show and explain the charity and the group’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and the group, and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and ensuring their proper application in accordance with charity law, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Having reviewed the funding facilities available to the charity together with the expected ongoing demand for places at the schools and the charity’s future projected cash flows, the Governors have a reasonable expectation that the charity has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Approved by the Board of Governors of Wellington College on 8[th] December 2023 and signed on its behalf by:

William Jackson Vice President and Chairman

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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 2023 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 15

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 16

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

Crowe U.K. LLP

Statutory Auditor Reading

Date: 12 December 2023

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 17

THE WELLINGTON COLLEGE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2023

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 income/(expense)
9
Total Income		 Unrestricted
Schools
Designated
Schools &
Designated
£’000
£’000
£’000
49,422
-
49,422
2,959
-
2,959
1,514
-
1,514
-
7,539
7,539
747
111
858
28
-
28
41
-
41
54,711
7,650
62,361		 Restricted
£’000
-
-
-
-
189
3,569
-
3,758		 Endowed
£’000
-
-
-
-
-
-
-
-		 Consolidated
Charity
2023
£’000
49,422
2,959
1,514
7,539
1,047
3,597
41
66,119		 Consolidated
Charity
2022
£’000
46,883
2,388
514
6,553
441
3,704
(9)
60,474

Page 18

THE WELLINGTON COLLEGE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2023

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/(EXPENDITURE)
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
57,799
454
58,253
-
3,619
3,619
522
-
522
1,208
47
1,255
59,529
4,120
63,649
(4,818)
3,530
(1,288)
346
86
432
5,533
(2,735)
2,798
1,061
881
1,942
76,197
6,380
82,577
77,258
7,261
84,519		 Restricted
£’000
613
-
-
67
680
3,078
575
(2,798)
855
20,390
21,245		 Endowed
£’000
-
-
-
67
67
(67)
219
-
152
21,149
21,301		 Consolidated
Charity
2023
£’000
58,866
3,619
522
1,389
64,396
1,723
1,226
-
2,949
124,116
127,065		 Consolidated
Charity
2022
£’000
52,909
2,466
500
1,653
57,528
2,946
51
-
2,997
121,119
124,116

All operations of the Consolidated Charity are continuing. Comparative year detail is shown in note 28. The notes on pages 23 to 49 form part of these accounts

Page 19

THE WELLINGTON COLLEGE BALANCE SHEETS

31 JULY 2023

Consolidated Charit Consolidated Charity Schools
2023 2022 2023 2023 2022
Notes £’000 £’000 £’000 £’000 £’000
FIXED ASSETS
Buildings and equipment 14 74,872 62,720 73,693 73,693 61,505
Investments 15 83,787 75,805 85,237 237 77,255
158,659 138,525 158,930 158,930 138,760
CURRENT ASSETS
Stocks 605 733 597 597 500
Debtors 16 1,117 2,206 17,408 17,408 3,906
Cash at bank and in hand 17,536 31,331 15,883 883 30,524
19,258 34,270 33,888 33,888 34,930
CREDITORS
Amounts due within one year 17 (18,779) (16,022) (33,680) (33,680) (16,917)
NET CURRENT ASSETS 479 18,248 208 208 18,013
TOTAL ASSETS LESS CURRENT LIABILITIES 159,138 156,773 159,138 159,138 156,773
CREDITORS:Amounts falling due in more than one year 18 (32,073) (32,657) (32,073) (32,073) (32,657)
TOTAL NET ASSETS 127,065 124,116 127,065 065 124,116
FUNDS
Endowment Funds 22 21,301 21,149 21,301 21,301 21,149
Restricted Funds 23 21,245 20,390 21,245 21,245 20,390
Unrestricted Funds-Designated 24a 7,261 6,380 7,261 7,261 6,380
Unrestricted Funds-Other 24b 77,258 76,197 77,258 258 76,197
TOTAL FUNDS 21 127,065 124,116 127,065 065 124,116

Approved and authorised to be issued by the Governors on 8[th] December 2023 and signed on their behalf by

W Jackson

The notes on pages 23 to 49 form part of these accounts

Page 20

THE WELLINGTON COLLEGE CONSOLIDATED CASH FLOWS FOR THE YEAR ENDED 31 JULY 2023

Cash flows from operating activities
Net movement in funds
Depreciation
(Profit)/Loss on sale of fixed assets
Investment income
Interest paid
Net gain on investments
Decrease in stock
Decrease/(Increase) in debtors
Increase in creditors
Increase/(Decrease) 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
(Decrease)/Increase in cash and cash equivalents in the year
Change in cash and cash equivalents due to exchange rate
movements
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
2023
£’000
2,949
2,683
(41)
(1,047)
1,129
(1,226)
128
1,089
2,647
164
8,475
(44,127)
40,862
(14,888)
(34)
(1,129)
1,047
(18,269)
(130)
(130)
(2,242)
25
1,709
(508)
(10,432)
(440)
31,899
21,027
17,536
3,491
21,027		 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

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 23 to 49 form part of these accounts .

Page 21

THE WELLINGTON COLLEGE CONSOLIDATED CASH FLOWS FOR THE YEAR ENDED 31 JULY 2023

Reconciliation of Net Debt

Cash at bank
Cash awaiting
investment
Total cash
Advance fees
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
2022
31,331
568
31,899
(2,806)
(30,000)
31,731
(1,719)
(2,794)
29,105		 Debt/
Finance
Leases
Repaid
-
-
-
-
-
130
130
130		 Investment
Value
Movements
-
-
-
-
(14,395)
-
(14,395)
(14,395)		 Cash
Flows
(13,795)
2,923
(10,872)
508
-
-
508
(10,364)		 Closing 31
July 2023
17,536
3,491
21,027
(2,298)
(30,000)
17,336
(1,589)
(16,551)
4,476

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.

The notes on pages 23 to 49 form part of these accounts .

Page 22

THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

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 £3,382 (2022: £ 2,997k ).

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 13.

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 23

THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

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 24

THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

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 25

THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

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 £3,000 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 26

THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

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 2023 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 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 27

THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

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		 2023
£’000
54,173
(4,751)
49,422		 2022
£’000
51,159
(4,276)
46,883
(b)
Total grants and awards paid for by Trust Funds consist of:
Scholarships, grants etc.
Individual awards		 850
2,158
3,008		 850
1,257
2,107

5. ANCILLARY TRADING INCOME

Entrance and registration fees
Income from school trips
Extras		 2023
£’000
849
846
1,264
2,959		 2022
£’000
758
216
1,414
2,388

Page 28

THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

6. NON ANCILLARY TRADING INCOME

Lettings
Easter courses
Other		 2023
£’000
1,052
152
310
1,514		 2022
£’000
313
143
58
514

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 donation
Profit/(loss) transferred to reserves		 2023
£’000
2,830
(2,189)
(137)
504
(8)
(496)
-		 2022
£’000
2,302
(2,038)
(128)
136
(6)
(130)
-

At 31 July 2023 the total assets of the subsidiary were £2,031k (2022: £2,003k), total liabilities £601k (2022: £573k) and shareholders’ funds £1,430k (2022: £1,430k).

The aggregate non charitable trading income and costs from the subsidiary included intra-group trading which are eliminated on consolidation, of £316k and £165k respectively (2022: £128k and £165k).

Page 29

THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

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
Cost of sales
Gross profit
Administration costs
VAT recovery
Transfers between funds
Operating and net profit
Corporation tax payable
Gift aid
Profit transferred to reserves		 2023
£’000
5,059
(24)
5,035
5,035
(1,409)
-
(434)
3,192
-
(3,192)
-		 2022
£’000
4,389
-
4,389
4,389
(994)
551
(380)
3,566
-
(3,566)
-

At 31 July 2023 the total assets of the subsidiary were £1,024k (2022: £1,769k), total liabilities £1,003k (2022: £1,749k) and shareholders’ funds £20k (2022: £20k).

The aggregate non-charitable trading costs of the subsidiary included intra-group trading which is eliminated on consolidation, of £434k (2022: £380k).

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 (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.

This company was formed to investigate international development opportunities in the respective territories named. It did not trade in the year.

Page 30

THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

8. INVESTMENT INCOME

2023
£’000
Investments
124
Bank interest received
923
1,047
9.
OTHER INCOME
2023
£’000
Profit/(Loss) on disposal of fixed assets
41
10.
ANALYSIS OF EXPENDITURE
Staff costs
Depreciation
Other
£’000
£’000
£’000
Charitable activities
Teaching costs
20,120
-
6,729
Welfare
2,828
-
5,082
Premises
1,704
2,131
10,502
Support costs
3,739
499
4,494
School’s operating costs
28,391
2,630
26,807
Grants, awards and prizes
-
-
1,038
Total Charitable Activities
28,391
2,630
27,845
Raising funds
Fundraising and publicity
391
-
131
Finance and other costs
-
-
1,389
TOTAL FOR SCHOOLS
28,782
2,630
29,365
Trading subsidiaries
1,768
53
1,798
TOTAL FOR CONSOLIDATED
CHARITY
30,550
2,683
31,163		 2023
£’000
124
923







2023
Total
£’000
26,849
7,910
14,337
8,732
57,828
1,038
58,866
522
1,389
60,777
3,619
64,396		 2022
£’000
255
186
1,047 441
2023
£’000		 2022
£’000
41 (9)
2022
Total
£’000
23,823
7,132
13,600
7,628
52,183
726
52,909
500
1,653
55,062
2,466
57,528

Included within support costs are governance costs of £144k (2022: £67k).

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

10 ANALYSIS OF EXPENDITURE (CONTINUED)

Prior year 2022
Staff costs Depreciation Other Total
£’000 £’000 £’000 £’000
Charitable activities
Teaching costs 18,228 - 5,595 23,823
Welfare 2,669 - 4,463 7,132
Premises 1,466 2,131 10,003 13,600
Support costs 3,137 411 4,080 7,628
School’s operating costs 25,500 2,542 24,141 52,183
Grants, awards and prizes -
- 726 726
Total Charitable Activities 25,500 2,542 24,867 52,909
Raising funds
Fundraising and publicity 387 - 113 500
Finance and other costs - - 1,653 1,653
TOTAL FOR SCHOOLS 25,887 2,542 26,633 55,062
Trading subsidiaries 1,492 48 926 2,466
TOTAL FOR CONSOLIDATED
CHARITY		 27,379 2,590 27,559 57,528
Analysis of Payroll Costs
Consolidated Charity Schools
2023 2022 2023 2022
£’000 £’000 £’000 £’000
Wages and salaries 24,377 21,835 22,743
20,471
Social Security insurance costs 2,570 2,292 2,498
2,223
Pension costs 3,603 3,252 3,541
3,194
30,550 27,379 28,782
25,888

The average number of employees in the year in the consolidated charity was 724 (2022: 720) of which 226 (2022: 226) 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, 4 Governors of the Consolidated Charity were reimbursed travel expenses totalling £1,102 (2022: 3 Governors were reimbursed £669).

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

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:

2023 2022
No. No.
£60,000 - £70,0000 38 25
£70,000 - £80,000 21 17
£80,000 - £90,000 7 7
£90,000 - £100,000 5 4
£100,000 - £110,000 3 1
£110,000 - £120,000 1 1
£120,000 - £130,000 1 2
£130,000 - £140,000 2 -
£140,000 - £150,000 1 -
£150,000 - £160,000 1 1
£260,000 - £270,000 - 1
£280,000 - £290,000 - 1
£300,000 - £310,000 1 -
£320,000 - £330,000 1 -

In connection with these higher paid employees, retirement benefits are accruing under defined contribution schemes for 19 employees (2022: 12) and under multi-employer defined benefit schemes for 63 employees (2022: 48). For the people accruing benefits under the defined contribution scheme the total employer contributions were £179,174 (2022: £90,176).

Key management personnel of the combined entity comprise those listed on page 2. They received aggregate remuneration, including employer pension contributions and employer NI contributions, of £2,384k (2022: £2,097k).

Termination payments made to staff came to £236k in 2023 (2022: £ nil).

11. TRANSFERS

The amount transferred between funds can be analysed as follows:

Rents and leases
WCEE/WCS
Transfers from Trusts
Management charges
Transfer of stock
Transfer of Donations
Total Consolidated Charity		 Unrestricted
General
Designated
£’000
£’000
(8)
8
2,080
(2,480)
3,108
-
434
(434)
(171)
171
90
-
5,533
(2,735)		 Restricted
£’000
-
400
(3,108)
-
-
(90)
(2,798)		 Endowed
£’000
-
-
-
-
-

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

12. NET INCOME/(EXPENDITURE)

2023 2022
This is stated after charging/(crediting) £’000 £’000
(Profit) / Loss on disposal of fixed assets (41) 9
Auditor’s remuneration:
For audit 71 64
For other services 22 10
Payments under operating leases
For plant and machinery 334 308
Amounts credited to advance fee contracts 25 30

Audit fees (inclusive of VAT) for the Schools audit were £49,950 (2022: £46,020).

13. FINANCING COSTS

Investment Managers charges
Bank charges
Interest on loan		 2023
£’000
280
85
1,024
1,389		 2022
£’000
533
1
1,119
1,653

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

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

14. TANGIBLE FIXED ASSETS

CONSOLIDATED CHARITY
Cost
01 August 2022
Additions
Disposals
31 July 2023
Depreciation
01 August 2022
Charge for the year
Disposals
31 July 2023
Net book value as at 31 July 2023
Net book values 31 July 2022		 Assets in the
course of
construction
£’000
2,293
13,679
-
15,972
-
-
-
-
15,972
2,293		 Freehold land
and buildings
£’000
85,216
139
(311)
85,044
27,628
2,133
(311)
29,450
55,594
57,588		 Furniture and
equipment
£’000
8,116
1,070
(1,659)
7,527
5,288
552
(1,606)
4,234
3,293
2,828		 Motor vehicles
£’000
601
-
(137)
464
590
(2)
(137)
451
13
11		 Total
£’000
96,226
14,888
(2,107)
109,007
33,506
2,683
(2,054)
34,135
74,872
62,720

At 31 July 2023 the net book value of furniture and equipment includes an amount of £1,809,000 in respect of assets held under finance leases ( 2022: £1,883,000 ). The depreciation charge for the year on these assets was £74,101 ( 2022: £74,101 ).

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

14. TANGIBLE FIXED ASSETS (CONTINUED)

SCHOOLS
Cost
01 August 2022
Additions
Disposals
31 July 2023
Depreciation
01 August 2022
Charge for the year
Disposals
31 July 2023
Net book value as at 31 July 2023
Net book values 31 July 2022		 Assets in the
course of
construction
£’000
2,293
13,679
-
15,972
-
-
-
-
15,972
2,293		 Freehold land
and buildings
£’000
83,601
139
(311)
83,429
27,189
2,101
(311)
28,979
54,450
56,412		 Furniture and
equipment
£’000
7,716
1051
(1,411)
7,356
4,928
531
(1,360)
4,099
3,257
2,788		 Motor vehicles
£’000
602
-
(137)
465
590
(2)
(137)
451
14
12		 Total
£’000
94,212
14,869
(1,859)
107,222
32,707
2,630
(1,808)
33,529
73,693
61,505

At 31 July 2023 the net book value of furniture and equipment includes an amount of £1,809,000 in respect of assets held under finance leases ( 2022: £1,883,000 ). The depreciation charge for the year on these assets was £74,101 ( 2022: £74,101 ).

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

15. INVESTMENTS

Investments at 1 August
Additions
Disposals
Revaluations
Investments at 31 July
Cash awaiting re-investment
Total Investments 31 July
Investments held by Investment managers
Investment in subsidiaries
Cash deposits		 Consolidated Charity
2023
2022
£’000
£’000
75,805
73,922
44,127
14,353
(40,862)
(13,089)
1,226
51
80,296
75,237
3,491
568
83,787
75,805
80,295
75,237
-
-
3,492
568
83,787
75,805		 Schools
2023
2022
£’000
£’000
77,255
75,372
44,127
14,353
(40,862)
(13,089)
1,226
51
81,746
76,687
3,491
568
85,237
77,255
80,295
75,237
1,450
1,450
3,492
568
85,237
77,255

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) 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
2023
2022
£’000
£’000
50,550
42,828
29,745
32,409
3,492
568
83,787
75,805		 Consolidated Charity and Schools
2023
2022
£’000
£’000
50,550
42,828
29,745
32,409
3,492
568
83,787
75,805
75,805

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

2023 2022
% %
State Street GBP Liquidity LNAV Fund 22.9% 0.0%
Partners Master Portfolio C 36.0% 50.8%
Partners Phoenix II 14.2% 14.2%
Partners Greyhawk Fund 8.1% 11.1%
Partners Harrier Fund 0.0% 6.5%
iShares Core MSCI World UCITS ETF 6.8% 3.9%

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

16. DEBTORS

Consolidated Charity Schools
2023 2022 2023 2022
£’000 £’000 £’000 £’000
Fees and trade debtors 423 1,110 308 225
Due from group entities - - 16,518 3,225
Other debtors 147 625 130 14
Prepayments 547 471 452 442
1,117 2,206 17,408 3,906

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
2023
2022
£’000
£’000
134
127
-
-
1,125
1,026
3,692
2,613
827
673
4,408
4,244
6,913
5,598
1,680
1,741
18,779
16,022		 Schools
2023
2022
£’000
£’000
134
127
15,263
1,496
1,125
1,026
3,635
2,413
827
673
4,408
4,244
6,608
5,197
1,680
1,741
33,680
16,917

A 40-year loan note for £30m was issued to Pricoa on February 11[th] 2019 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		 2023
£’000
30,000
-
-
30,000
-
30,000		 2022
£’000
30,000
-
-
30,000
-
30,000

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

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

Consolidated Charity Schools
2023 2022 2023 2022
£’000 £’000 £’000 £’000
Loan 30,000 30,000 30,000 30,000
Lease Creditor (note 20) 1,455 1,592 1,455 1,592
Advance fees (note 19) 618 1,065 618 1,065
32,073 32,657 32,073 32,657

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		 2023
£’000
-
357
261
618
1,680
2,298		 2022
£’000
-
351
714
1,065
1,741
2,806

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		 2023
£’000
2,806
1,709
25
4,540
(2,242)
2,298		 2022
£’000
3,089
2,241
30
5,360
(2,554)
2,806

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

20. LEASE CREDITORS

Net obligations are payable as follows:

Consolidated Charity Consolidated Charity Schools
2023 2022 2023 2022
£’000
£’000		 £’000 £’000
Within one year 134 127 134 127
In 2 to 5 years 607 581 603 603
In more than 5 years 848
1,011		 852 989
1,589
1,719		 1,589 1,719
. 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
 - 13,734 7,567 - 21,301
Restricted funds
 - 13,698 7,547 - 21,245
Unrestricted funds:
Other designated funds 1,180 4,500 1,289 - 6,969
Other (Schools) 73,692 50,084 (15,063) (31,455) 77,258
74,872 82,016 1,340 (31,455) 126,773
Advance fee (designated)
 - 1,771 (861) (618) 292
Consolidated Charity total 74,872 83,787 479 (32,073) 127,065
Prior Year
Fixed Assets
Investments		 Net current
Assets/
(Liabilities)		 Long term
Liabilities		 Total
£’000 £’000 £’000 £’000 £’000
Endowment funds
 - 12,643 8,506 - 21,149
Restricted funds
 - 12,188 8,200 - 20,390
Unrestricted funds:
Other designated funds 1,215 3,636 1,231 - 6,082
Other (Schools) 61,505 45,549 732 (31,592) 76,197
62,720 74,015 18,670 (31,592) 123,814
Advance fee (designated)
 - 1,790 427 (1,065) 298
Consolidated Charity total 62,720 75,805 18,248 (32,657) 124,116

21. ALLOCATION OF THE GROUP NET ASSETS

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

22. ENDOWMENT FUNDS

Current Year
Foundation Capital
Other Trusts:
Fisher Endowment
Scholarships, Bursaries
Prizes and other funds
Consolidated Charity Total
Prior Year
Foundation Capital
Other Trusts:
Fisher Endowment
Scholarships, Bursaries
Prizes and other funds
Consolidated Charity Total		 Balance at 1
August 2022
Income
Expenditure
Transfers and
Investment
Gains/(Loses)
Balance as at
31 July 2023
£’000
£’000
£’000
£’000
£’000
3,041
-
(8)
44
3,077
8,125
-
(31)
31
8,125
9,279
-
(24)
127
9,382
704
-
(4)
17
717
21,149
-
(67)
219
21,301
Balance at 1
August 2021
Income
Expenditure
Transfers and
Investment
Gains/(Loses)
Balance as at
31 July 2022
£’000
£’000
£’000
£’000
£’000
2,920
-
(27)
148
3,041
8,257
-
-
(132)
8,125
8,932
-
(78)
425
9,279
657
-
(11)
58
704
20,766
-
(116)
499
21,149

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 2023

23. RESTRICTED FUNDS

Current Year

Current Year
Foundation Endowment
Other CTF Trusts:
Scholarships and Bursaries
Finnis Trust
Prizes and other funds
Building Projects
Eagle House
Wellington College
Prince Albert Society
Fisher Endowment
Development
Consolidated Charity Total
Prior Year
Foundation Endowment
Other CTF Trusts:
Scholarships and Bursaries
Finnis Trust
Prizes and other funds
Building Projects
Prince Albert Society
Fisher Endowment
Development
Consolidated Charity Total		 Balance at
1 August
2022
Income
Expenditure
Transfers and
Investment
Gains/(Loses)
Balance as
at 31 July
2023
£’000
£’000
£’000
£’000
£’000
558
33
(2)
(60)
529
4,666
203
(13)
(1,657)
3,199
306
1
(3)
4
308
1,545
15
(301)
(78)
1,181
96
282
(33)
1
346
-
24
-
(24)
0
-
61
-
(61)
0
13,176
3,134
(328)
(360)
15,622
38
5
-
16
59
5
-
-
(4)
1
20,390
3,758
(680)
(2,223)
21,245
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
5,614
150
(1,379)
281
4,666
293
2
(1)
12
306
1,451
19
15
60
1,545
91
2
-
3
96
11,138
5
(876)
2,909
13,176
38
2
(1)
(1)
38
10
3,595
(1)
(3,599)
5
19,227
3,800
(2,326)
(311)
20,390

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 2023

24a. UNRESTRICTED FUNDS-DESIGNATED

Current Year
Advance fee income
Fisher Fund
Entry Bursary Fund
Schools total
Trading companies’ reserves
Consolidated Charity Total
Prior Year
Advance fee income
Fisher Fund
Entry Bursary Fund
Schools total
Trading companies’ reserves
Consolidated Charity Total		 Balance at
1 August
2022
Income
Expendit
ure
Transfers and
Investment
Gains/(Loses)
Balance as
at 31 July
2023
£’000
£’000
£’000
£’000
£’000
299
32
(30)
(9)
292
760
5
(3)
18
780
5,321
25
(450)
1,293
6,189
6,380
62
(483)
1,302
7,261
-
7,588
(3,637)
(3,951)
-
6,380
7,650
(4,120)
(2,649)
7,261
Balance at
1 August
2021
Income
Expenditure
Transfers and
Investment
Gains/(Loses)
Balance as
at 31 July
2022
£’000
£’000
£’000
£’000
£’000
472
4
(62)
(115)
299
895
59
(180)
(14)
760
4,095
30
(506)
1,702
5,321
5,462
93
(748)
1,573
6,380
-
6,562
(2,447)
(4,115)
-
5,462
6,655
(3,195)
(2,542)
6,380

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 2023

24b. UNRESTRICTED FUNDS – OTHER

Current Year

Current Year
Retained Income -
Consolidated Charity Total
Prior Year
Retained Income -
Consolidated Charity Total		 Balance at 1
August 2022
Income
Expenditure
Transfers and
Investment
Gains/(Loses)
Balance as at 31
July 2023
£’000
£’000
£’000
£’000
£’000
76,197
54,711
(59,529)
5,879
77,258
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

25 CONTRACTS AND COMMITMENTS

At 31 July 2023 there were capital commitments of £10,477,000 relating to the building of Woodland Quad (2022: £18,892,000) and £5,870,000 relating to the building of the new sixth form centre (2022: £nil).

At 31 July 2023 a number of major maintenance projects were in progress. The committed expenditure required to complete these projects was £938,000 (2022: £1,506,000).

At 31 July 2023 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
2023
2022
£’000
£’000
-
-
-
-
-
-
-
-		 Plant and
Machinery
2023
2022
£’000
£’000
240
180
351
292
-
-
591
472

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

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 £2,662,255 (2022: £2,468,553) and at the year-end £310,109 (2022 - £299,706) 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 2020 and the Valuation Report, which was published in October 2023.

Following the McCloud judgement, the remedy proposed that when benefits become payable, eligible members can select to receive them from either the reformed or legacy schemes for the period 1 April 2015 to 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the greater benefits, and in preparing the 2020 valuation have valued the ‘greater value’ benefits for groups of relevant members.

The valuation confirmed that the employer contribution rate for the TPS would increase from 23.6% to 28.6% from 1 April 2024. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 28.68%.

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 2023 were £695,991 (2022: £577,412) 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 £243,699 in the year (2022: £203,942) at the rate of 5% of gross salary.

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

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

27. FINANCIAL INSTRUMENTS

2023 2022
£’000 £’000
Consolidated Charity
Financial assets measured at amortised cost 21,599 33,633
Financial liabilities measured at amortised cost 41,772 44,175
Financial assets measured at fair value 80,296 75,237
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 923 186
Total income for financial assets held at fair value 124 255
Total interest expense for financial liabilities held at amortised cost (1,129) (1,119)
Schools 2022 2022
£’000 £’000
Financial assets measured at amortised cost 36,338 34,556
Financial liabilities measured at amortised cost 56,730 45,067
Financial assets measured at fair value 81,746 75,237
The Schools’ income expense gains and losses in respect of financial instruments are summarised
below:
Total income for financial assets held at amortised cost 876 175
Total income for financial assets held at fair value 124 255
Total interest expense for financial liabilities held at amortised cost (1,129) (1,119)

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 investments.

Financial liabilities measured at amortised cost comprise 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 2023

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
46,883
-
46,883
2,388
-
2,388
514
-
514
-
6,553
6,553
132
102
234
111
-
111
(9)
-
(9)
50,019
6,655
56,674		 Restricted
£’000
-
-
-
-
207
3,593
-
3,800		 Endowed
£’000
-
-
-
-
-
-
-
-
-
-
-		 Consolidated
Charity
2022
£’000
46,883
2,388
514
6,553
441
3,704
(9)
60,474

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

EXPENDITURE ON
Charitable activities
School operating costs and grant making
Raising funds
Non-charitable trading
Fundraising costs
Financing costs
Total expenditure
NET INCOME/EXPENDIURE) 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
50,077
617
50,694
-
2,466
2,466
500
-
500
1,314
112
1,426
51,891
3,195
55,086
(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
52,909
2,466
500
1,653
57,528
2,946
51
-
2,997
121,119
124,116

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THE WELLINGTON COLLEGE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2023

29. RELATED PARTY TRANSACTIONS

In the prior year one Governor, D Ritchie provided Financial training services totalling £1,500 to pupils. There were no such transactions in the current year.

As part of Wellington’s community outreach programme, a number of local schools receive grants from the College. One school, part of The Circle Trust – A local Multi Academy Schools group, was in receipt of one of these grants (£10k). Ginny Rhodes, a Governor of Wellington , is also the Executive Headteacher of The Circle Trust. The Trust was subject to the same stringent consideration process as all other applicants.

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

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