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2023-08-31-accounts

REGISTERED COMPANY NUMBER: 0260104 REGISTERED CHARITY NUMBER: 309096

PANGBOURNE COLLEGE LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

PANGBOURNE COLLEGE LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

CONTENTS
Page
Legal and Administrative Information 1 – 2
Governors’ Report 3 – 9
Statement of Governors’ Responsibilities 10
Independent Auditors’ Report 11 – 14
Consolidated Statement of Financial Activities 15
Balance Sheets 16
Consolidated Statement of Cash Flow 17
Notes to the Financial Statements 18 – 33

PANGBOURNE COLLEGE LIMITED LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 AUGUST 2023

The Pangbourne College Governors, being also the directors of the charitable company, present their annual report together with the financial statements of the charitable company for the year ended 31 August 2023 and confirm that they comply with the requirements of the Charities Act 2011 and the Companies Act 2006, thus including the Directors’ Report and Strategic Report under the 2006 Act, together with the audited financial statements for the year.

DIRECTORS’ REPORT

STATUS AND ADMINISTRATION

Pangbourne College Limited is a charitable company having share capital, incorporated on 4 November 1931 and registered as a charity on 20 February 1963.

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

DIRECTORS AND THEIR INTERESTS

The directors of the charitable company who served during the year, unless otherwise stated, were as follows:-

Mr R Batra[(1)] Rev M Bodeker[(1)] Rev A Bond[(1,2)] Mrs T Brooks[(3)] Mrs C Butterworth[(1)] Mrs E Cleugh[(2)] (appointed 8/12/22) Mr P Derham[(3)] (resigned 30/08/2023) Mr D Devitt[(3)] Miss T Duhalde[(1)] Mr R Llewellyn[(3)] Mr D Mullins[(1)] Mr P Roberts MBE[(1,2)] Mrs S Rossiter[(3,4)] Mrs P Shryane[(1)]

(1) Members of the Finance & General Purposes Committee

(2) Members of the Property & Sustainability Committee

(3) Members of the Education & Welfare Committee

(4) Members of the Health & Safety Committee

The directors are also the charity trustees and governors of Pangbourne College.

OFFICERS

Head Mr T J C Garnier Senior Deputy Mrs S Greenwood Deputy Head (Academic) Mr M Seccombe Deputy Head (Pastoral) Mr R Bancroft Deputy Head (Co-Curricular) Mr R Follett Bursar and Company Secretary Mr J N Walne

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PANGBOURNE COLLEGE LIMITED LEGAL AND ADMINISTRATIVE INFORMATION (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

REGISTERED OFFICE AND PRINCIPAL ADDRESS

Pangbourne College Pangbourne Berkshire RG8 8LA ADVISERS Bankers National Westminster Bank Plc Corporate Business Centre Abbey Gardens 4 Abbey Street Reading Berkshire RG1 3BA Auditors Crowe U.K. LLP Aquis House 49-51 Blagrave Street Reading Berkshire RG1 1PL Insurance Brokers Marsh Merlin House Commerce Park Brunel Road Theale Reading RG7 4BY

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PANGBOURNE COLLEGE LIMITED ANNUAL REPORT OF THE COLLEGE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023

CONSTITUTION AND OBJECTS

Pangbourne College (“the College”) was founded in 1917, originally as the Nautical College, Pangbourne, under which name it operated until 1969. It is constituted as a company limited by guarantee registered in England, No. 0260104, and is registered with the Charity Commission under Charity No. 309096. The College is governed by its Memorandum of Association and Articles of Association most recently revised on 20 March 2007.

The College’s Objects and principal activity, as set out by the Memorandum of Association, is to advance education for the public benefit, including (but not limited to) the provision and maintenance at the premises known as Pangbourne College, Pangbourne, Berkshire or elsewhere of a boarding and/or day school or schools for the education of children or young persons of either sex or both sexes.

In furtherance of these Objects, the College seeks to provide subsidised education via bursaries for deserving students whose parents could not otherwise afford the cost of educational fees. Within these objects, the charitable company also has to maintain its heritage endowment, the College, with its Grade 2 listed buildings and The Falklands Islands Memorial Chapel, a national memorial site.

AIMS, OBJECTIVES AND ACTIVITIES

Aims

Within these objects, Pangbourne College’s aim is to provide a first class independent education, both through strong academic tuition and through developing wider sporting, artistic and social skills in all its pupils. Additionally, there is an emphasis on values and leadership, and at various stages during their time at the school all pupils participate in the Duke of Edinburgh’s Award Scheme, the Combined Cadet Force and are given training in leadership skills. The intention is to provide an environment where each pupil can develop and fulfil his or her potential, thus to help build self-confidence and inculcate a desire to contribute to the wider community.

The Board is mindful of the long-standing need to provide public benefit and of the requirements of the Charities Act 2011. In this connection the Board has monitored closely the guidance on public benefit produced by the Charity Commission together with its supplemental guidance on fee-charging.

Principal activities

Pangbourne College’s principal activity is the maintenance of an independent boarding and day school for boys and girls aged from 11 to 18. This year (2022-2023) Pangbourne College averaged 464 (2022: 457) pupils.

GOVERNANCE AND MANAGEMENT

Board of Governors

The College Governors, executive officers and principal address of the charitable company are as listed on page 1 and 2. Particulars of the charitable company’s professional advisers are given on page 2.

Recruitment and training of Governors

The Board of Governors is self-appointing. New members of the Board are elected on the basis of their professional qualities, experience, personal competence and local availability.

New Governors are inducted into the workings of the charitable company and its school, including Board Policy and Procedures. Governor and Trustee training is offered to all new members and is provided by a number of professional sources such as AGBIS. Governors are appointed initially for a five year term of office. At the expiry of this period Governors can offer themselves for re-election to the Board

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PANGBOURNE COLLEGE LIMITED ANNUAL REPORT OF THE COLLEGE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Organisational management and remuneration

The Pangbourne College Governors, as the trustees of the charity and directors of the company are legally responsible for the overall management and control of Pangbourne College, and meet as a Board three times a year. The work of governance and financial supervision is carried out by members of the Finance and General Purposes Committee (F&GP), who meet before each meeting of the College Governing Board and on extra occasions when necessary such as to approve the budgets and finalise the audited accounts and annual report for approval by the Board. The F&GP works under the chairmanship of a member of the College Governors. The other principal permanent committees are the Property & Sustainability Committee, the Education & Welfare Committee and the Health & Safety Committee, each being chaired by a Board member and meet on a termly basis and more often should the need arise. Other committees are formed on an ad hoc basis for specific purposes such as an Appeal. Members of all Board committees are listed on page 1.

The day to day management of the school is delegated to the College’s Headmaster supported by the Senior Management Team. At 31 August 2023 these were:

Mr J N Walne - Bursar

Mr R Bancroft - Senior Deputy Head and Deputy Head Pastoral Mrs S Greenwood - Deputy Head Character & Routines Mr M Seccombe - Deputy Head Academic Mr R Follett - Deputy Head Co-Curricular

The Head, Senior Deputy Head,Deputy Head Academic and the Bursar attend meetings of the various committees.

The Head, Senior Management Team and Governors together form the College’s Key Management Personnel.

The Board of Governors are responsible for setting the pay and remuneration of the College’s key management personnel. When considering remuneration, the Board aims to recruit and retain talented people, sustain the high-performance culture within the College and recognise the contributions of the personnel. The underlying principle when setting pay is that the amount paid should reflect the market for comparable jobs in comparable organisations, the performance of the organisation and the skills and contribution of the individual. Independent remuneration reviews are commissioned from time to time for the Head and Bursar, the most recent completed in July 2015 by Affinity Independent Schools Consultancy LLP.

Group structure and relationships

The charitable company has a wholly owned non-charitable subsidiary, Pangbourne College Enterprises Limited, whose activities and trading performance are discussed below.

Pangbourne College actively supports the attainment of the highest standards in the Independent Schools sector as its Head is a member of The Headmasters’ and Headmistress’ Conference. We also cooperate with many local organisations in our ongoing endeavours to widen public access to the schooling we can provide, to optimise the use of our cultural and sporting facilities and to awaken in our pupils an awareness of the social context of the all-round education they receive at the College.

The College also benefits from the generosity of a thriving network of Old Pangbournians whose close support we greatly appreciate and gladly acknowledge.

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PANGBOURNE COLLEGE LIMITED ANNUAL REPORT OF THE COLLEGE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

AUDITORS

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

In accordance with Section 485 of the Companies Act 2006, a resolution proposing the re-appointment of Crowe U.K. LLP as auditors to the company will be put to the Annual General Meeting

STRATEGIC REPORT

MISSION STATEMENT

Our mission is to be a caring community of learners in which pupils from all backgrounds can flourish.

We enable pupils to succeed academically and to develop character through commitment to a curriculum that provides challenge and adventure. We equip our pupils with the values, knowledge, skills and confidence needed to grasp opportunities and make a positive difference to the world. We seek to increase the diversity and quality of our pupil body through the provision of transformational bursaries.

STRATEGIES TO ACHIEVE THE PRIMARY OBJECTIVES

A development plan covering the period 2018-2023 was published in September 2018. The plan sets out what will be done to move towards fulfilment of the College’s vision to become the best small coeducational boarding and day school in the UK. Over these five years the College’s goals were to:

During 2022/23 the Board of Governors and senior staff started work on creating a new development plan for the next 10 years, which will be finalised and published during 2023/24.

ACHIEVEMENTS AND PERFORMANCE

Review of achievements and performance for the year

In 2023, the grade boundaries were brought back in line with those of 2019 and, as widely experienced, this had an impact on the grades achieved by our pupils.

The results of the outgoing Upper Sixth (Year 13) meant that more than two thirds secured their first choice university course. Students have gone on to courses which are suitable for them, ranging from highly specialised, vocational courses to more traditional academic degrees at top-end institutions such as Durham, Exeter, Nottingham and Manchester. At A Level, 16% of grades were A-A and 76% of grades were A-C. At BTEC, 57% were either Distinction* or Distinction grades and 93% secured a Merit or higher.

At GCSE, 31% of grades were 9-7 and the overall pass rate remained the same as the previous year at 93.5%.

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PANGBOURNE COLLEGE LIMITED ANNUAL REPORT OF THE COLLEGE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

ACHIEVEMENTS AND PERFORMANCE (continued)

The Governors remain resolute that the College will continue to select pupils on character and aptitude for an education at Pangbourne College, rather than purely on academic ability. These results demonstrate the Headmaster’s intent to increase the College's academic rigour. Given the broad range of academic abilities within the School, these were extremely pleasing results.

In terms of outdoor pursuits, 16 Gold, 27 Silver and 58 Bronze Duke of Edinburgh’s Awards were completed by Pangbourne pupils. The Combined Cadet Force at Pangbourne College had 240 Cadets split between three sections, Army, Royal Navy and Royal Marines. The Royal Navy offering has been front and centre in terms of focus during the year. Staff have achieved the following qualifications: X2 Powerboat Level 2, X2 BCA Foundation Safety Rescue, X2 BCA Paddlesports Instructors, X1 RYA Level 1&2 Dinghy/Sailing, and X1 Exercise Coordinating Officer. The College came second place at the annual Summer Camp at Longmoor, taking the largest number of cadets for the week-long event. There are multiple trips planned for the coming year, including an Adventurous Training Camp in Capel Curig and static line parachuting. An external grant has been approved for a converted container to be sited at Burghfield Sailing Club to contain all of the Kayaking and Sailing equipment.

A number of significant improvements were made to the College’s facilities during the year. Improvements continued to the roads on campus, the Mess Hall was refurbished, windows were replaced in several buildings, the area outside the new cafe was landscaped, and work has begun to refurbish one of the Boarding Houses (Port Jackson), including new ablutions and redecorated rooms and corridors.

Grant making policy

Pangbourne College Governors’ policy, in line with that of other independent schools, is to make awards on the basis of an individual’s educational potential. Awards and bursaries (not including untested allowances for staff) totalling £1,279,260 ( 2022: £1,323,019) (9.3% of gross fees receivable) were made from unrestricted funds where the policy is towards academic excellence and also to relieve hardship where the pupil’s education and future prospects would otherwise be at risk.

Public benefit

The Trustees continued to take seriously the requirement to have regard to the published guidance on public benefit as per s.17 (5) of the Charities Act.

The College awards a substantial number of bursaries (means-tested) and scholarships (based on merit) each year. The policies in respect of these are available on the College’s website. In the last year, the College provided means-tested support for pupils whose parents could not afford the fees worth £965,315 (2022: £932,908), or 7.0% of gross fee income. Eight (2022: 6) pupils received support worth at least 100% of fees, including 2 via HMC Projects to students from Central and Eastern Europe, and 2 via the Royal National Children’s Springboard Foundation. Additionally, £212,402 (2022: £229,652) was given in discounts to children of parents serving in the Armed Forces. Some of these families also received CEA funding from the Ministry of Defence worth a further £300,780 (2022: £258,951).

Beyond the considerable public benefit of providing a high-quality education (known as the Pangbourne Experience) to the pupils of the College, which equips them with good academic qualifications and a sense of responsibility and service to others, the College also provided wider benefits to children and young people who are not pupils.

A number of local state schools, prep schools and youth organisations receive support from the College and our employees. Local school children attend events run by the College such as the annual Piano Festival, orchestral fun days, DT challenge days, hockey tournaments and outdoor learning classes.

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PANGBOURNE COLLEGE LIMITED ANNUAL REPORT OF THE COLLEGE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

ACHIEVEMENTS AND PERFORMANCE (continued)

The following programmes were achieved during the year:

The College donated £2,500 to support projects at Nabugabo Community Learning Centre in Uganda, and £3,028 in total to nine local projects that applied for grants from the Community Fund.

The College maintains and acts as steward to the Falkland Islands Memorial Chapel, the national war memorial for those killed in the Falklands War. Normal wear and tear is funded and carried out by the College. Major repairs and refurbishment, while being funded by the Chapel Trust, are planned and organised by the College’s Estate’s Bursar and his staff.

Volunteers

Old Pangbournians helped generously with activities such as the Careers Fair. The Pangbourne Parents’ Association also organised a number of events in support of the College. The Trustees would like to take this opportunity to say how much their continuing and valuable support for the charity’s work is appreciated.

FINANCIAL REVIEW

Results for the Year

The Governors of the College report a pre-depreciation surplus of £939k (2022: £1,164k).

The College achieves its liquidity objectives by the careful management of working capital and regular forecasting of short and long term cash requirements. The College’s cost base predominantly comprises staff costs and therefore the impact of commodity price risk is modest although there is exposure to increases in utility and related building operational costs. The College’s exposure to credit risk is mitigated by fees being due at the beginning of each term.

Interest rate risk exposure is managed by the consideration of fixing interest rates on a proportion of the loan portfolio within parameters that are agreed and regularly reviewed by the Finance and General Purposes Committee.

Reserves Policy

The College’s policy is to seek to generate a surplus of income over expenditure that enables the College to continue its programme of refurbishment and development whilst securing the long-term viability of the College.

At the balance sheet date unrestricted funds stood at £13,607,559 (2022: £ 13,059,664 ) . After deducting the carrying value of tangible fixed assets held for the charity’s own use, adjusted for borrowing there were free reserves of £2,020,940 ( 2022: 1,693,761 ) (as defined by the Charity Commissioners). As part of the Development Plan currently in progress, the College is producing a Master Plan for the campus which will determine the priorities for future capital projects.

The Governors policy is to require cash of £2.5m to be ring-fenced in a separate bank account and outside of cash available for the day to day working capital. This cash reserve is sufficient to cover three month’s running costs or two years' worth of bank loan repayments.

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PANGBOURNE COLLEGE LIMITED ANNUAL REPORT OF THE COLLEGE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

FINANCIAL REVIEW (continued)

Fundraising

All fundraising is aimed at providing a high quality educational experience for the boys and girls who are pupils at the College, and making the experience available to more young people. Our wider community includes current and former pupils, parents, staff and friends of the College.

Our good relationship with our community is critical to the success of our charity, and we believe in establishing positive long-term relationships based on trust, goodwill and our shared interests. Any fundraising approaches are therefore personal and targeted, focused only on existing members of the College community.

We do not use third parties to help with our fundraising, nor do we participate in public mass mailings, door to door fundraising, or telephone campaigns. All data shared with us is protected in compliance with the GDPR, and we never share personal information with third parties for the purposes of marketing. All literature and emails sent to our community members has clear messaging about who and how to contact us if they wish to change how we communicate with them.

Pangbourne College is registered with the Fundraising Regulator, and we follow the regulator’s Code of Practice. This sets out the standards that members are expected to follow when raising money, including taking all reasonable steps to protect vulnerable people from persistent approaches, unreasonable intrusion or undue pressure.

The fundraising team at Pangbourne College consists of the newly appointed Head of Development and Alumni Relations Officer. Other senior leaders within the College, including the Head, Bursar and Governors, play a role in raising and managing funds. Occasionally other alumni and parents act as fundraising volunteers, in which case they are trained, monitored and sign a data protection and confidentiality agreement.

During the year, our charity received no complaints requiring action by the Fundraising Regulator.

FUTURE PLANS

Mr Thomas Garnier has announced his intention to stand down as Head after 19 years of loyal service to the College. From a strong field, the Governors have appointed Mr Oliver Knight, currently Head of the Ark Academy Acton, to take over as the new Head for the start of the 2024/25 academic year.

The Governors and staff remain fully committed to ensuring that academic standards are the highest possible, whilst being comfortable with maintaining a broadly unselective admissions policy. The latter is best described as ‘discerning’, in that a place will not be offered unless all parties are confident that the College can meet the individual pupil’s needs.

RISK MANAGEMENT

Pangbourne College Board of Governors is responsible for the management of the risks faced by the College. Detailed considerations of risk are delegated to the Finance and General Purposes Committee, who are assisted by the Senior Management Team. Risks are identified, assessed and controls are established throughout the year. A formal review of the charitable company’s risk management processes is undertaken on an annual basis. The College has started to conduct an in depth review of the risk register and how it is used in order to produce a more rigorous risk management process.

The key controls used by the charitable company include:-

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PANGBOURNE COLLEGE LIMITED ANNUAL REPORT OF THE COLLEGE GOVERNORS (CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 RISK MANAGEMENT Icontinuedl Through the risk management processes established the College, PangtK)urne College Governors are satisfied that the major risks identified have been adequately miligaled where necessary. It Is recognised that systems can only provide reasonable bul not absolute assurance that major risks have been adequately managed. Principal risks and uncertainties The Goveming Body is satisfied that for all major rlsks Identified for the group appropriate controls have been put in place and malnlained to miligale Ihose risks adequately. It is recognised that syslerlls can provide only reasonable. bul not absolute assurance that major risks have been managed. The principal risks and uncertainlies are assessed as.. Educaliorb Decline in aCadern￿ or co-curricular results and reputation. This risk is miligaled through effective monitoring of standards of teaching, coaching and pastoral care and by managing entry standards Ihrough admissions policy and process. Failure to adapt edu¢alion to meet requlremenls of our parents & pupils (current & future). The College is conducting a study lo identify strategic priorities (size, shape {boardinglday mix, class sizes), core curriculum, facility requiremenlsl to ensure an appropriate surplus Can be achieved and lo infomi creation of sile maslerplan. Finanual Risk Imposllion of VAT on fees and loss of buslness rates relief. The principal concern is a lack of operational income. Amongst others, the College is intending lo increase applications through effective marketing, increase conversion rates of enquiry lo application to acceptance, improve pupil retention and reduce the level of discounts. Similarly the College is l(K>king lo control costs wllh clearly defined slraleglc priorflles. Poor or delerioraling facilities. The College will commission the produolion of a masterplan lo identify best use of sile lo meet requirements and prioritise developmenl Failure lo comply with regulalionslbreach slalulory requirement. The principal risk is a (xjrrenl or historic safeguarding failure leading to a loss of repulalion. This risk is managed by a balanced approach of controls and training. A culture of safeguarding is embedded throughout the College and detailed safeguarding and child protection FX)IicAes are in place. There is regular training and the College has the required and trained designated safeguarding lead. An annual review of safeguarding is undertaken by the Board. Thls Annual Report, prepared under the Charilles Act 2011 and the Companies Act 2006, was approved by the Governing Body of Pangl￿urne College Limited on l JT tCLC-Mfy&IL to L including in their capacity as company directors approving the Strategic Report contained therein, and is signed as a￿hor￿sed on its behalf by.. Patrick Roberts Governor Page 9

PANGBOURNE COLLEGE LIMITED STATEMENT OF GOVERNORS’ RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2023

Statement of Governors’ responsibilities

The Governors (who are also directors of Pangbourne College Limited for the purposes of company law) are responsible for preparing the Annual Report of the College Governors (incorporating the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the Governors to prepare financial statements for each financial year. Under company law the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Governors are required to:

The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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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 AUDITORS' REPORT TO THE MEMBERS OF PANGBOURNE COLLEGE LIMITED

We have audited the Group and Parent company financial statements of Pangbourne College Limited for the year ended 31 August 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 Governor'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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PANGBOURNE COLLEGE LIMITED (CONTINUED)

Other information

The Governors 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit

Matters on which we are required to report by exception

In light of the knowledge and understanding of the Group and Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Governors’ Annual Report.

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

Responsibilities of the Governors

As explained more fully in the Governors’ Responsibilities Statement set out on page 10, the Governors 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 Governors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PANGBOURNE COLLEGE LIMITED (CONTINUED)

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in 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 group and charitable company 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 Companies Act 2006, taxation legislation, together with the Charities SORP (FRS 102) and the Charities Act. 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 group and charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the group and charitable company for fraud. The laws and regulations we considered in this context were The Education (Independent School Standards) Regulations 2014, Safeguarding, Health and Safety, GDPR and Food standards. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Governors 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 the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance and General Purposes Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, 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.

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PANGBOURNE COLLEGE LIMITED (CONTINUED)

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 non-compliance 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 noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of report

This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charitable Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Janette Joyce Senior Statutory Auditor

For and on behalf of Crowe U.K. LLP Statutory Auditor Aquis House 49-51 Blagrave Street Reading RG1 1PL

5 December 2023

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PANGBOURNE COLLEGE LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2023

Notes
INCOME AND ENDOWMENTS FROM:
Income from Charitable Activities
School fees receivable
5
Ancillary trading income
6
Other Trading Activities
Trading income
4
Rents and lettings
Donations and grants
Other Income
Total income
EXPENDITURE ON:
Expenditure on Charitable Activities
Teaching costs
Welfare costs
Premises costs
Support costs
Expenditure on Raising Funds
Trading expenditure
4
Financecosts
Total expenditure
7
Net income
8
Balances brought forward
At 31 August 2022
Balances carried forward
At 31 August 2023		 Unrestricted
Funds
12,233,447
492,961
282,511
124,908
3,255
125,000
13,262,082
6,012,146
1,976,550
2,419,499
1,912,758
12,320,953
211,586
181,648
12,714,187
547,895
13,059,664
13,607,559		 Restricted
Funds
-
-
-
-
5,290
-
5,290
-
-
-
4,450
4,450
-
-
4,450
840
208,854
209,694		 Total
2023
£
12,233,447
492,961
282,511
124,908
8,545
125,000
13,267,372
6,012,146
1,976,550
2,419,499
1,917,208
12,325,403
211,586
181,648
12,718,637
548,735
13,268,518
13,817,253		 Total
2022
£
11,350,594
529,246
255,364
140,224
142,407
-
12,417,835
5,672,361
1,799,403
1,836,865
1,923,979
11,232,608
219,318
217,090
11,669,016
748,819
12,519,699
13,268,518

All activities are continuing.

All gains and losses recognised in the year are included in the statement of financial activities.

The notes on pages 18 to 33 form part of these financial statements

Page 15

PANGBOURNE COLLEGE LIMITED CONSOLIDATED BALANCE SHEET 31 AUGUST 2023 COMPANY NUMBER 0260104 College Group 2023 2022 2023 2022 Notes FIXED ASs￿s Tangible fixed assets 10 13 189 456 13 178835 13 189456 13 178835 CURRENT ASSETS Stock Debtors Cash al bank and in hand 13,741 539,843 4 541623 219,317 218.672 5 159 957 188,534 289,074 4 664 180 460,389 5024 919 5.485,308 5.095.207 5,597,946 5, 141.788 CREDITORS.. Amounts falllng due within one year 12 3 334 4911 3371 3 084 559 NET CURRENT ASSETS 2 150 817 2 048 362 2 217609 2 057 229 TOTAL ASSETS LESS CURRENT LIABILITIES 15,340.273 15.227,197 15,407,065 15.236,064 CREDITORS.. Amounts falling due after more than one year Pension Scheme Deficit 13 {1,577,9231 (1,949,357) 11,577.9231 (1,949,357J 18 NET ASSETS CAPITAL AND RESERVES Share capital Reslri¢led funds General funds 17 22 2,500 209,694 13 540 767 2,5(10 208,854 05 797 2,500 209,694 13 607559 2,500 208,854 13 059 664 SHAREHOLDERS. FUNDS 23 The surplus for the financlal year de811 wllhin the financial statements of the parent charily was £490,810 (2022.. £721,278). Authorised and Approved for issue by the Board on i ZOLS and signed on Iheir behalf by- P Roberts Govtsrnor The notes on p¥ges 18 10 33 form part of these financial statements Page 16

PANGBOURNE COLLEGE LIMITED

CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2023

Cash flows from operating activities
Net movement in funds
Depreciation
Decrease in debtors
Increase/(decrease) in creditors
(Increase) in stocks
(Profit)/loss on disposal of fixed assets
(Decrease) in pension liability
Interest paid
Cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Cash (used in) investing activities
Cash flows from financing activities
Decrease in borrowing
Interest paid
Cash (used in) financing activities
Cash flows from advance fee scheme
Advance fees received net of fees returned
Discounts allocated
Advance fees utilised
Cash (used in)/provided by advance fees
Change in cash and cash equivalents in the year
24
Cash and cash equivalents at the beginning of the year
Total cash and cash equivalents at the end of the year
Cash at bank and in hand		 2023
£
548,735
389,541
70,402
329,464
(30,783)
-
(6,300)
80,173
1,381,232
(400,162)
(400,162)
(210,095)
(80,173)
(290,268)
9,730
6,083
(210,838)
(195,025)
495,777
4,664,180
5,159,957
5,159,957		 2022
£
748,819
415,007
34,848
(133,580)
(7,891)
52,498
(74,531)
28,500
1,063,670
(147,204)
(147,204)
(222,397)
(28,500)
(250,897)
483,115
4,841
(244,495)
243,461
909,030
3,755,150
4,664,180
4,664,180

The notes on pages 18 to 33 form part of these financial statements

Page 17

PANGBOURNE COLLEGE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

1. COMPANY INFORMATION

Pangbourne College’s principal activity is the maintenance of an independent boarding and day school for boys and girls aged from 11 to 18. The incorporated charity (registered number 0260104 and charity number 309096), is incorporated and domiciled in the UK. The address of the registered office is Pangbourne College, Pangbourne, Berkshire, RG8 8LA.

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) and the Companies Act 2006.

Pangbourne 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).

b)

Going concern

Demand for school places remains strong, with our highest ever numbers enrolled for the academic year 2022/23 and numbers for 2023/24 expected to be even higher again. The charity currently holds significant cash balances with no significant commitments to capital projects. Conservative cash flow modelling with sensitivity analysis indicates that the cash reserves of the charity are adequate to meet the charity’s obligations as they fall due. Accordingly, the Governors believe the School’s financial resources are sufficient to ensure the School will continue as a going concern for the foreseeable future, being at least 12 months from the date of approval of the financial statements and have therefore prepared the financial statements on a going concern basis.

c) Consolidation

The consolidated financial statements incorporate the financial statements of Pangbourne College Enterprises Limited, the charitable company’s trading subsidiary. No separate statement of financial activities is present for the College as permitted by Section 408 of the Companies Act 2006. The net incoming resources of the College (excluding Enterprises) were £490,810 (2022: £721,278) .

d) Fund Accounting

Restricted funds are to be used for specified purposes laid down by the donor. Expenditure for those purposes is charged to the fund.

General funds (retained income) are unrestricted funds that are available for use at the discretion of the Governors in furtherance of the general objectives of the charitable company and have not been designated for other purposes.

Designated funds are funds set aside by the Governors out of unrestricted general funds for specific future purposes or projects.

e) Incoming Resources

All incoming resources are included in the Statement of Financial Activities when the charitable company is legally entitled to the income, the amount can be quantified with reasonable accuracy and the economic benefit to the college is considered probable.

Page 18

PANGBOURNE COLLEGE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

2. ACCOUNTING POLICIES (continued)

f) Fees

Fee income represents the invoiced amount of College fees receivable after deducting allowances, scholarships and other remissions granted by the College. Adjustments have been made to defer invoiced fees relating to the Autumn term, which commences in the next financial period to ensure that no income relating to the next financial year is included in these financial statements. Any payments received relating to this term have been treated as fees in advance under creditors.

g)

Donations and legacies

Donations and legacies received for the general purposes of the College are credited to ‘unrestricted funds’. Donations subject to specific wishes of the donors are carried to relevant restricted funds. Income from legacies is accrued where a pecuniary legacy is notified by the year end and where a residuary legacy has entitlement, the amount can be reliably quantified (usually via estate accounts) and it is considered probable it will be received.

h) Advanced fees

Amounts received under the College’s Advanced Fees 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 long-term liabilities where the education will be provided in subsequent years.

i) Expenditure

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities.

Expenditure is summarised under functional headings on a direct cost basis. The irrecoverable amount of VAT is included with the item of expense to which it relates.

j)

Stocks

Stocks are valued at the lower of cost and net realisable value.

k)

Tangible Fixed Assets

College buildings are recorded at their historical cost to the College. Depreciation is provided on all tangible assets, except freehold land in order to write-off their cost less residual value over their estimated useful lives at the following annual rates:-

l) Pension Schemes

Full-time and part-time teaching staff employed under a contract of service are eligible to contribute to the Teachers’ Pension Scheme (TPS). The TPS, a statutory, contributory, defined benefit scheme is administered by Capita Teachers’ Pensions on behalf of the Department for Education and skills. The College was in this scheme until 31 December 2021 when it transferred to a group personal pension plan with Royal London Mutual Insurance Society Limited See note 18 for more information.

Costs include normal and supplementary contributions. The regular cost is the normal contribution, expressed as a percentage of salary of a teacher newly entering service, which would defray the cost of benefits payable in respect of that service. Variations from the regular pension cost are met by a supplementary contribution. This occurs if, as a result of the actuarial investigation, it is found that the accumulated liabilities for benefits to past and present teachers are not fully covered by normal contributions to be paid in future and by the fund built up from past contributions. The normal and supplementary contributions are charged to the statement of financial activities.

Page 19

PANGBOURNE COLLEGE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

2. ACCOUNTING POLICIES (continued)

The College contributed until 30 September 2013 to the Pensions Trust Growth Plan Pension Scheme for certain of its employees. This was in most respects a money purchase arrangement, but did include certain guaranteed benefit elements. The Plan was a multi-employer scheme. It is not possible in the normal course of events to identify the share of the underlying assets belonging to the individual participating employers and accordingly, in accordance with FRS102, is accounted for as a defined contribution scheme with contributions being recorded as they become payable. The School makes deficit contribution payments to the Scheme and, in accordance with FRS 102 these payments have been measured at fair value and included as a liability on the balance sheet.

The College also operates a defined contribution auto enrolment arrangement and a defined contribution enhanced pension scheme for non-teaching staff.

Pension costs charged in the SOFA represent contributions payable by the College in that year.

m) 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.

n) 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

o) 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.

p) 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 August have been included within current liabilities.

q) Lease commitments

Lease commitments are charged to the Statement of Financial Activities on a straight-line basis over the period of the lease.

r) Financial instruments

Basic financial instruments include debtors and creditors. Debtors and creditors are initially recognised at transaction value and subsequently measured at amortised cost. Note 21 provides more information on financial instruments where future cash flows are anticipated, with financial assets referring to fixed asset investments and debtor balances excluding prepayments, and financial liabilities referring to all creditor balances excluding deferred income and taxation and social security.

Page 20

PANGBOURNE COLLEGE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

3. Significant judgements and estimates

In the application of the charity’s accounting policies, which are described in note 2, Governors 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 Governors consider that there are no material judgements in applying accounting policies or key sources of estimation uncertainty.

4. TRADING INCOME AND EXPENDITURE

Pangbourne College Enterprises Limited is a 100% subsidiary of Pangbourne College Limited (Company Number: 01582185). Its registered office is as per Note 1. The company was established to carry out the non educational activities associated with the College. The trading results extracted from its audited accounts were:-

Turnover
Cost of sales
Gross profit/(loss)
Administrative expenses
Operating profit/(loss)
Interest payable and similar charges
Profit/(Loss) on activities before taxation
Taxation
Profit/(Loss) after tax
Retained earnings at the beginning of the year
Profit/(Loss) for the financial year
Gift aid donation payment for prior year
Retained earnings at the end of the year		 2023
£
282,511
(189,511)
93,000
(32,540)
60,460
(2,535)
57,925
-
57,925
8,869
57,925
-
66,794		 2022
£
255,364
(208,554)
45,271
(16,934)
29,876
(2,330)
27,546
-
27,546
(18,677)
27,546
-
8,869

The aggregate amount of share capital and reserves of Pangbourne College Enterprises Limited at 31 August 2023 was £66,797 ( 2022 £8,872).

Administrative expenses include a management charge paid to the College of £13,000 ( 2022: £8,500) which is eliminated on consolidation, and the donation under Gift Aid of £Nil ( 2022: £nil) is to the College and is also eliminated on consolidation.

Page 21

PANGBOURNE COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

5. FEES RECEIVABLE

Fees receivable consist of:
Gross fees (including advance fees utilised of £210,838
(2022: £244,495)
Less total bursaries, grants and allowances		 2023
£
13,714,051
(1,480,604)
12,233,447		 2022
£
12,877,776
(1,527,182)
11,350,594

6. ANCILLARY TRADING INCOME

Insurance commission
Registration fees
Special learning
Fees in lieu
Exams
Music
Trips
Bus income
Miscellaneous		 2023
£
1,055
23,515
124,709
21,393
6,343
67,678
117,084
124,973
6,211
492,961		 2022
£
2,982
40,523
93,015
73,148
58,291
89,748
78,621
92,918
-
529,246

7.

ANALYSIS OF TOTAL RESOURCES EXPENDED

Charitable activities
Teaching costs
Welfare costs
Premises costs
Support costs
Cost of generating funds
Trading expenditure
Finance costs
Total		 Staff
Costs
£
5,109,447
665,109
343,061
872,201
6,989,818
71,278
-
71,278
7,061,096		 Other
£
682,232
1,238,961
2,038,865
985,986
4,946,044
140,308
181,648
321,956
5,268,000		 Depre-
ciation
£
220,467
72,480
37,573
59,021
389,541
-
-
-
389,541		 Total
2023
£
6,012,146
1,976,550
2,419,499
1,917,208
12,325,403
211,586
181,648
393,234
12,718,637		 Total
2022
£
5,672,361
1,799,403
1,836,865
1,923,979
11,232,608
219,318
217,090
436,408
11,669,016

Included within support costs are governance costs of £28,802 (2022: £34,199) . Governance costs comprise the cost of running the charity including external audits, Governors’ legal advice and constitutional and statutory compliance costs.

Page 22

PANGBOURNE COLLEGE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

7. ANALYSIS OF TOTAL RESOURCES EXPENDED (continued)

2022 Comparative figures

Staff
Costs
Other
£
£
Charitable activities
Teaching costs
4,820,248
625,855
Welfare costs
646,049
1,080,571
Premises costs
350,011
1,445,247
Support costs
878,173
971,447
6,694,481
4,123,120
Cost of generating funds
Trading expenditure
64,269
155,049
Finance costs
-
217,090
64,269
372,139
Total
6,758,750
4,495,259
8.
NET INCOME
This is stated after charging:
Depreciation
Auditors’ remuneration – (Parent)
Auditors’ remuneration – (Subsidiary)
Auditors’ remuneration – non audit services
Operating lease rentals
9.
STAFF COSTS
Salaries and wages
Social security costs
Pension costs		 Depre-
ciation
£
226,258
72,783
41,607
74,359
415,007
-
-
-
415,007		 Total
2022
£
5,672,361
1,799,403
1,836,865
1,923,979
11,232,608
219,318
217,090
436,408
11,669,016
2023
£
389,541
18,930
2,965
2,730
190,549
2023
£
5,349,420
532,874
1,178,802
7,061,096		 Total
2021
£
5,173,761
1,472,099
1,311,630
1,692,736
9,650,226
184,484
102,122
286,606
9,936,832
2022
£
415,007
16,750
2,625
2,905
185,983
2022
£
5,204,658
521,473
1,032,619
6,758,750

The average number of employees during the year (including Pangbourne College Enterprises Limited) were:

Teaching
Premises
Support and welfare		 2023
No.
73
8
49
130		 2022
No.
73
8
51
132

Page 23

PANGBOURNE COLLEGE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

9. STAFF COSTS (continued)

The number of employees whose emoluments (excluding pension contributions) exceeded £60,000 during the year were as follows:

£60,001 - £70,000
£90,001 - £100,000
£100,001 - £110,000
£160,001 - £170,000		 2023
£
1
1
-
1		 2022
£
1
-
1
1

The number of higher paid employees who accrued benefits under a defined benefit pension scheme were as follows:

2 2

The Governors received no remuneration or other benefits for the year. 3 governors ( 2022: 2 ) were reimbursed travelling expenses of £1,734 ( 2022: £1,752). £6,907 ( 2022: £1,255) was spent on Governor meetings. Insurance costs also include trustee indemnity insurance.

The key management personnel of the college are the Governors and the Officers as identified in the Legal and Administrative Information on page 1. In the year ended 31 August 2023 they received aggregate remuneration (including employers’ national insurance and pension contributions) of £791,084 ( 2022: £769,516 ).

During the year ex-gratia payments totalling £15,112 (2022: £19,039) were made.

10. TANGIBLE ASSETS

Charitable company and group

COST
At 1 September 2022
Additions
Disposals
At 31 August 2023
DEPRECIATION
At 1 Sept 2022
Charge for the year
Disposals
At 31 August 2023
NET BOOK VALUE
At 31 August 2023
At 31 August 2022		 Freehold
property
£
18,953,440
400,162
-
19,353,602
5,847,522
371,819
-
6,219,341
£13,134,261
£13,105,918		 Furniture
&
equipment
£
2,466,177
-
-
2,466,177
2,393,260
17,722
-
2,410,982
£
55,195
£
72,917		 Motor
vehicles
£
46,717
-
-
46,717
46,717
-
-
46,717
£
-
£
-		 Boats
£
378,250
-
-
378,250
378,250
-
-
378,250
£
-
£
-		 Total
£
21,844,584
400,162
-
22,244,746
8,665,749
389,541
-
9,055,290
£13,189,456
£13,178,835

Included within freehold property is the historic cost of land not depreciated of £16,937 ( 2022: £16,937).

Page 24

PANGBOURNE COLLEGE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

10. TANGIBLE ASSETS (continued)

The Governors consider the market value of freehold property to be substantially more than the net book value should the assets be sold for any use other than for educational purposes. This is due to the increase in values of the property market generally.

11. DEBTORS

College
2023
2022
£
£
Trade debtors
209,933
209,919
Pangbourne College
Enterprises Limited
245,417
251,344
Other debtors
5,039
77,816
Prepayments and accrued
income
-
764
460,389
539,843
REDITORS: Amounts falling due within one year
College
2023
2022
£
£
Bank loan (see note 14)
198,960
212,909
Trade creditors
622,558
600,591
Taxation and social security
188,576
157,677
Other creditors
200,086
93,705
Acceptance deposits
787,119
784,740
Fees in advance
812,812
828,468
Accruals
348,181
172,819
3,158,292
2,850,909
Deferred income- Advanced
fees (see note 15)
176,199
195,936
3,334,491
3,046,845		 Group
2023
2022
£
£
213,633
209,919
-
-
5,039
78,391
-
764
218,672
289,074
Group
2023
2022
£
£
198,960
212,909
656,450
630,414
190,325
157,677
200,086
93,705
787,119
784,740
812,812
828,468
358,386
180,710
3,204,138
2,888,623
176,199
195,936
3,380,337
3,084,559		 Group
2023
2022
£
£
213,633
209,919
-
-
5,039
78,391
-
764
218,672
289,074
Group
2023
2022
£
£
198,960
212,909
656,450
630,414
190,325
157,677
200,086
93,705
787,119
784,740
812,812
828,468
358,386
180,710
3,204,138
2,888,623
176,199
195,936
3,380,337
3,084,559
2,888,623
195,936
3,084,559

12. CREDITORS : Amounts falling due within one year

The bank borrowing is secured by a fixed legal charge over the property of the charity and a floating charge over the other assets.

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

Bank loan (see note 14)
Deferred income- Advanced
fees (see note 15)		 College
2023
2022
£
£
1,403,877
1,600,023
174,046
349,334
1,577,923
1,949,357		 Group
2023
2022
£
£
1,403,877
1,600,023
174,046
349,334
1,577,923
1,949,357		 Group
2023
2022
£
£
1,403,877
1,600,023
174,046
349,334
1,577,923
1,949,357
1,949,357

Page 25

PANGBOURNE COLLEGE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

14. BANK LOAN

The bank loan is repayable as follows:

Within one year
Between one and two years
Between two and five years
Over five years		 2023
£
198,960
210,621
716,220
477,036
1,602,837		 2022
£
212,909
218,822
693,627
687,574
1,812,932

The loan was first drawn down in September 2006 and is repayable in monthly instalments over 20 years starting in February 2010.

The interest rate applied to the loan is equivalent to 1% per annum above the bank base rate.

15. ADVANCE FEES

Amounts may be paid to the college up to the equivalent of 7 years’ tuition fees in advance. The money may be returned subject to specific conditions stated within the scheme literature. Assuming pupils will remain at the college advance fees will be applied:-

Within 1 year
Within 1-2 years
Within 2-5 years		 2023
£
176,199
55,120
118,926
350,245		 2022
£
195,936
146,502
202,832
545,270

The balance represents the accrued liability under the contracts. The movements during the year are detailed as follows:-

At 1 September 2022
Increase
Advance fees received net of fees returned
Discounts allocated
Decrease
Advance fees utilised
At 31 August 2023		 2023
£
545,270
9,730
6,083
15,813
(210,838)
350,245		 2022
£
301,809
483,115
4,841
487,956
(244,495)
545,270

Page 26

PANGBOURNE COLLEGE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

16. CAPITAL COMMITMENTS

There were no capital commitment at the year end 2023: £Nil ( 2022: £Nil).

Other commitments include a minibus that was ordered before the year end with a total commitment of £94,876 ( 2022: £Nil).

17. SHARE CAPITAL

Authorised, Issued and fully paid up
50,000 shares of 5p each		 2023
£
2,500		 2022
£
2,500

18. PENSIONS

Teaching staff

The College left the TPS Scheme on 31 December 2021 and all teaching staff joined a group personal pension plan with the Royal London Mutual Insurance Society Limited on this date. The default rate for new members is 8% for employees and 17.1% for employers. Employee rates can be as low as 5% and as high as 100%. Employer rates can be reduced to a minimum of 8%, with the difference taken as additional salary.

The pension charge for the year includes employer contributions payable to Royal London Mutual Insurance Society Limited of £830,289 ( 2022: £528,174 ) and at the year-end £78,178 ( 2022: £384) was accrued in respect of contributions to this scheme. There are no deficit contributions for this Scheme.

Up until the 31 December 2021 the College participated in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £Nil ( 2022: £262,607 ) and at the year-end £Nil ( 2022 - £nil ) 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%.

Page 27

PANGBOURNE COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

18. PENSIONS (continued)

Non-teaching staff

Until 30[th] September 2013, all non-teaching staff could participate in a multi-employer defined benefits pension scheme, the Pensions Trust Growth Plan Pension Scheme (“the Scheme”). The Scheme closed to new contributions on 30[th] September 2013, and from that date onwards, non-teaching staff were offered membership of a defined contribution scheme, the Pension Trust Growth Plan Series 4 (“the Enhanced Scheme”).”

Contributions paid into the Plan up to and including September 2001 were converted to defined amounts of pension payable from normal retirement dates. From October 2001 contributions were invested in personal funds which have a capital guarantee and which are converted to pension on retirement, either within the Plan or by the purchase of an annuity.

The Trustee commissions an actuarial valuation of the Plan every three years. The purpose of the actuarial valuation is to determine the funding position of the Plan by comparing the assets with the past service liabilities as at the valuation date. Asset values are calculated by reference to market levels. Accrued past service liabilities are valued by discounting expected future benefits payments using a discount rate calculated by reference to the expected future investment returns.

The rules of the Plan give the Trustee the power to require employers to pay additional contributions in order to ensure that the statutory funding objective under the Pensions Act 2004 is met. The statutory funding objective is that a pension scheme should have sufficient assets to meet its past service liabilities, known as Technical Provisions. If the actuarial valuation reveals a deficit, the Trustee will agree a recovery plan to eliminate the deficit over a specified period of time either by way of additional contributions from employers, investment returns or a combination of these.

A full actuarial valuation of the scheme was carried out at 30 September 2020. The market value of the Plan’s assets at the valuation date was £800.3 million and the Plan’s Technical Provisions (i.e. past service liabilities) were £831.9 million. The valuation therefore revealed a shortfall of assets compared with the value of liabilities of £31.6 million. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional deficit contributions of £3.3m per annum from 1 April 2022 to 30 September 2025, payable monthly. The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Scheme Liabilities. In accordance with FRS102 a liability representing the present value of future commitments relating to the deficit funding is recognised in the accounts. During the year the College paid deficit contributions of £6,779 (2022: £21,508) , which reduced the pension scheme deficit liability recognised in the accounts. The present value at 31 August 2023 of future commitments relating to the deficit contributions has been calculated as £9,389 (2022: £15,689) . The unwinding of the discount factor, and the impact of changes to assumptions and amendments to contributions has resulted in a £1,193 credit to the SOFA and has been included in pension costs for the year.

Pangbourne College Limited has been advised by the Plan Trustee that, in the event that it was to withdraw its membership of the Plan, it had an estimated contingent liability of £106,502 at 30 September 2022. This debt will not crystallise while Pangbourne College Limited continues to have one or more active members in the scheme.

The amount of the above potential debt depends on many factors including total Plan liabilities, Plan investment performance, the liabilities in respect of current and former employees of Pangbourne College Limited, financial conditions at the time of the cessation event and the insurance buy-out market. The amounts of the debt can therefore be volatile over time.

Page 28

PANGBOURNE COLLEGE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

18. PENSIONS (Continued)

The College operates a defined contribution auto enrolment scheme (“the AE Scheme”) with Pensions Trust. The employer contribution rate is 10% (2022: 10%) and the employee contribution rate is 3%. Employers’ contributions totalling £54,148 (2022: £53,753) were payable to this fund during the year. Contributions totalling £ 8,897 (2022: £573) were unpaid at the year end and are included in creditors.

In addition, the College offers all non-teaching staff the opportunity to join an Enhanced Scheme with the Pensions Trust, which has an employer contribution rate of 15% (2022: 15%) and an employee contribution rate of 5%. Contributions payable by the company in the year were £288,779 (2022: £241,108) . Contributions totalling £23,955 (2022: £30) were unpaid at the year end and are included in creditors.

19. COMMITMENTS UNDER OPERATING LEASES

At 31 August 2023 the College had future minimum lease payments under non-cancellable operating leases as follows:-

Equipment and machinery
Amounts due in less than a year
Amounts due in the second to fifth year		 2023
£
91,727
195,553
287,280		 2022
£
112,358
236,873
349,231

20. RELATED PARTY TRANSACTIONS

During the year the school instructed Thrings Solicitors, of which Rev A Bond, a Governor, is a consultant, for legal work. Total fees charged in the year were £4,197 (2022: £14,342) . At the balance sheet date the amount of £nil (2022: £3,930) was outstanding.

During last year the school also instructed Brockhurst and Marlston House, of which Ms Rossiter, a Governor, is a teacher, to provide lifeguard training. Total fees charged in the year were £nil (2022: £720) . At the balance sheet date the amount of £nil (2022: £nil) was outstanding.

Close members of the Key Management Personnel's family (noted on page 1) are paid a total salary of £183,581 (2022: £178,117). The wife of one of the Governor’s also has her salary included within this total. All close relatives who are, or have been, employed by the School have a standard contract of employment and their salaries are determined as part of a full staff salary review which is approved by the Governors.

Page 29

PANGBOURNE COLLEGE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

21. FINANCIAL INSTRUMENTS

Financial instruments held at amortised cost are trade debtors, other debtors, intercompany debtors, cash at bank, trade creditors, bank loans, acceptance deposits, other creditors and accruals.

GROUP
Financial assets measured at amortised cost
Financial liabilities measured at amortised cost
COLLEGE
Financial assets measured at amortised cost
Financial liabilities measured at amortised cost		 2023
£
5,378,629
3,604,878
5,485,308
3,560,781		 2022
£
4,952,490
3,502,501
5,080,702
3,464,787

The income, expense, gains and losses in respect of financial instruments are summarised below:

GROUP AND COLLEGE
Total interest expense for financial liabilities held at amortised cost		 2023
£
80,173		 2022
£
28,500

22 . RESTRICTED FUNDS- COLLEGE & GROUP

The funds of the charity include restricted funds comprising the following unexpended balances of donations held for specific purposes:

2023
Boat House fund
Other restricted funds
Centenary Appeal		 Balance at
1
September
2022
£
149,112
22,515
37,227
208,854		 Incoming
resources
£
30
-
5,260
5,290		 Resources
expended
£
-
-
(4,450)
(4,450)		 Balance at
31 August
2023
£
149,142
22,515
38,037
209,694

Restricted funds relate to income given in support of the Boat House refurbishment and its facilities, and for the Centenary Appeal. The Centenary Appeal donations will be used to support organisations, community work and educational projects that benefit young people in the Reading areas. Centenary charity funds will also support the Nabugabo partnership project in Uganda.

2022
Boat House fund
Other restricted funds
Centenary Appeal		 Balance at
1
September
2021
£
135,282
3,899
42,227
181,408		 Incoming
resources
£
13,830
121,458
-
135,288		 Resources
expended
£
-
(102,842)
(5,000)
(107,842)		 Balance at
31 August
2022
£
149,112
22,515
37,227
208,854

Page 30

PANGBOURNE COLLEGE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

23 ANALYSIS OF NET ASSETS BETWEEN FUNDS

GROUP – 2023
Tangible fixed assets
Net current assets
Long Term liabilities (including
pension scheme deficit)
GROUP – 2022
Tangible fixed assets
Net current assets
Long Term liabilities (including
pension scheme deficit)		 Unrestricted
funds
£
13,189,456
2,007,915
(1,587,312)
13,610,059
Unrestricted
funds
£
13,178,835
1,848,375
(1,965,046)
13,062,164		 Restricted
funds
£
-
209,694
-
209,694
Restricted
funds
£
-
208,854
-
208,854		 Total
£
13,189,456
2,217,609
(1,587,312)
13,819,753
Total
£
13,178,835
2,057,229
(1,965,046)

13,271,018

ANALYSIS OF NET ASSETS BETWEEN FUNDS

COLLEGE - 2023
Tangible fixed assets
Net current assets
Long Term liabilities (including
pension scheme deficit)
COLLEGE - 2022
Tangible fixed assets
Net current assets
Long Term liabilities (including
pension scheme deficit)		 Unrestricted
funds
£
13,189,456
1,941,123
(1,587,312)
13,543,267
Unrestricted
funds
£
13,178,835
1,839,508
(1,965,046)
13,053,297		 Restricted
funds
£
-
209,694
-
209,694
Restricted
funds
£
-
208,854
-
208,854		 Total
£
13,189,456
2,150,817
(1,587,312)
13,752,961
Total
£
13,178,835
2,048,362
(1,965,046)
13,262,151

Page 31

PANGBOURNE COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

24 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

Increase in cash in the year
Fees on account
Loan repayments
Change in net funds
Net debt at 1 August
NET FUNDS AT 31 AUGUST
ALYSIS OF CHANGE IN NET FUNDS
Cash at bank and in hand
Fees on account
Loans		 2023
£
495,777
195,025
210,095
900,897
2,305,978
£ 3,206,875
Net funds as
at 1
September
2022
Cash
Change
£
£
4,664,180
495,777
(545,270)
195,025
(1,812,932)
210,095
£ 2,305,978
£
900,897		 2023
£
495,777
195,025
210,095
900,897
2,305,978
£ 3,206,875
Net funds as
at 1
September
2022
Cash
Change
£
£
4,664,180
495,777
(545,270)
195,025
(1,812,932)
210,095
£ 2,305,978
£
900,897		 2022
£
909,030
(243,461)
222,397
887,966
1,418,012
2,305,978
Net funds as
at 31 August
2023
£
5,159,957
(350,245)
(1,602,837)
£ 3,206,875
£
£
900,897

ANALYSIS OF CHANGE IN NET FUNDS

Page 32

PANGBOURNE COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

25 2022 COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM:
Income from Charitable Activities
School fees receivable
Ancillary trading income
Other Trading Activities
Trading income
Rents and lettings
Donations and grants
Other
Coronavirus Job Retention Scheme
government grant
Total income
EXPENDITURE ON:
Expenditure on Charitable Activities
Teaching costs
Welfare costs
Premises costs
Support costs
Expenditure on Raising Funds
Trading expenditure
Finance costs
Total expenditure
Net income
Balances brought forward
At 31 August 2021
Balances carried forward
At 31 August 2022		 Unrestricted
Funds
11,350,594
529,246
255,364
140,224
7,119
-
12,282,547
5,672,361
1,799,403
1,735,365
1,917,637
11,124,766
219,318
217,090
11,561,174
721,373
12,338,291
13,059,664		 Restricted
Funds
-
-
-
-
135,288
-
135,288
-
-
101,500
6,342
107,842
-
-
107,842
27,446
181,408
208,854		 Total
2022
£
11,350,594
529,246
255,364
140,224
142,407
-
12,417,835
5,672,361
1,799,403
1,836,865
1,923,979
11,232,608
219,318
217,090
11,669,016
748,819
12,519,699
13,268,518

Page 33