Roglstered number: 00133676 Charity number: 309115 THE ABBEY SCHOOL. READING (A Company Limited by Guarantee) ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023
THE ABBEY SCHOOL. READING (A Company Llmlted by Guarantee) CONTENTS Page Referoncg and Admlnlstratlv8 Detolls of the Company Chairman's Statemenl Governors. Report Ind•pendent Audltors. Rèport Consolldated Statement of Flnanclal Actlvltles 4-14 15-18 19 Consolidated and charlty balance sheets Company Balance Sheet Consolldated Statemènt of Cash Flows 20-21 22-23 24 Notos forming part of th8 finanGial ststements 25-47
THE ABBEY SCHOOL. READING (A Company Limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY FOR THE YEAR ENDED 31 AUGUST 2023 GovgTnors Mrs E A Harrison BA (Hons) MBA JP1.2.3,4,5,6.8 Mr5 J Butler FCA1,3 Ms S Burgess BA MA (resigned 4 D8cember 2023) Mrs S Colebrook Bsc PGCE2,9 Mr S Dimmick LLB3,4,6.7 Mr M Emmanuel1,46 Ms R Field BA2,6 Ms J Jolly8,10 Dr H Kemp BM Bch Msc PhD FRCA6 Mr A Peach5,6 Mr J Sheehan {resigned 5 December 2022) Mr C Singer Bsc FIA1,4,6 Mrs E West LLB2,9 Member of the Finance and General Purposes Committee 2 Member of the Education Committee 3 Member of the Governance Committee Member of the Estates working group 5 Member of the Engagement and Development working grou 6 Member of the Futures working group 7 Lead Govemor for Risk. Audit. and Compllance 8 Lead Govemor for Human Resources Lead Govemor for Child Protection to Lead Govemor for Health & Safety Nominge mombors of the Council The Bishop of Oxford Vacan At the Annual General Meeting held on 5 December 2022 the resignation of Mr J Sheehan was recogrsised. At the Annual General Meeting held on 4 December 2023 the following Govemors were re-appointed for a further temi of office.. Mrs E A Harrison Mrs J Butler Mrs S Colebrook Mr S Dimmick The Governors are also Direclors of the Company and Trustoes of the Charity. Page 1
THE ABBEY SCHOOL, READING IA Company Limited by Guarantgel OFFICERS Tho Executlve Hoad Mr Will le Fleming BA, MA (Cambridge) Hoad of Junlor S¢hool Mrs Nisha Kaura Bsc (Surrey), PGCE. MEd {Buckingham) Mrs Nadine Doble BSG (Cardiff), ACMA Head of Flnan¢o and Resourc0$ ADDRESSES Senior School 17 Kendrick Road Reading RG1 5DZ Junior School (Years &61 30 Christchurch Road Reading RG2 7AR Junlor School (Years 1 and 21 12 Christchurch Gardens Reading RG2 7AH Junior School (Nursery and Reception) 2 Vicarage Road Reading RG2 7AJ Company rggistered numbgr 00133676 Charity roglstered numbar 309115 Reglstered offi¢0 17 Kendrick Road Reading Berkshire RG15DZ Independent auditors James Cowper Kreston Audit Reading Bridge House George Street Reading RG18LS Bankers HSBC UK Bank plc 26 Broad Street Reading RG12BU Soli¢itors Blandy & Blandv LLP 1 Friar Street Reading RG1 1DA Investsnent advlsers Charles Stanley & Company Ltd 55 Bishopsgate London ECIN 3AS InsuranGe brokers Marsh Brokers Ltd School Division Capital House 1-5 Perrymount Road Haywards Heath, Wesl Sussex RH16 3SY Page 2
THE ABBEY SCHOOL, READING (A Company Llmlted by Guarantee) REPORT OF THE CHAIR OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023 This full report contains the story, in nLEmbers and in words. of our successful year at the Abbey School. The overall tsle is one of remarkable collective achievements and within the big picture sit some extraordinary students who have made their journey through the school and are rsow moving onwards to the destination of their choice a university course. an apprenticeship, or a year of work and travel. As well as supporting their academic development so that students have the r8sults that support their ambition, we watch wlh delight as our students grow the confidence and the insight to map out the next stsge of their journey. Our 2023 leavers coped brilliantly with a year spent in rather splendid temporary classrooms and communal spaces. Their trjlerance and their ideas have infomied the new design of the new Sixth Fom Centre which opened in September to the delight of all. At the Abbey our outstanding extemal examination results are important but they only tell a part of the whole story. The range of sporting, creative, musical, dramatic and many other thought-provoking and fun experiences at the school is extraordinary. Our ARCH project this year has gone from strength to strength. bringing together Abbey students and students from many other schools in the surrounding area, lo discuss issues, to work together and lo leam about contemporary challenges in our communities. Fmm the very beginning of Iheir journey al the Abbey, whether in Litue Knellies, our Nursery, or at an enty point in the Junior School, or in Upper 3 in the Senior School, or in Ihe Sixth Form, our students are encouraged to think broadly and deeply, beyond conventional boundaries. And like the crew of the Starship Enterprise. they do indeed boldly go and they do indeed find out new worlds. None of this would be possible without the wonderful learns of people who make up our terrific tsaching and administrative staff body. Each year we bid farewell to a srnall number of staff, as they choose to move on in their work and their lives., and this year we reluctantly made a small number of staff reductions to ensur8 we had the right people, in the right numbers and in the right pLaS to continue our growth as a school. We thank all those who left in the year for their contribution. We have been able lo recruit the new staff we need so we can be confident that we have the excellence and expertise our students need to learn and to shine. I wish I had the words lo communicate the positive atmosphere of lrfe at the Abbey. Whether inside our buildings or at an Abbey event elsewhere, there is a palpable sense of commitment and excitement. perhaps for a trip, a eoncert, an expedition or lust the next lesson. l am a very frequent visitor to the school and it is always a delight to do $0. The school is very fortunale in the remarkable individuals who make up our goveming body. Just as our staff bring their best selves to school week after week. our govemors come to all our meetings and events with their different experience, expertise and insight to ensure that the sdiool continues to be well govemed. We govemors remain profoundly impressed by, and very confident in. the senior leadership team at the Abbey. As Head of the whole h0o1 Will le Fleming brings wisdom. imaglnation and care to all he does- in the Junior School Nisha Kaura leads the school wth Ihoughfful integtity and delight.. Nadine Doble looks, with professional skill and insight, after our finances, our estate, our HR, our IT, our administration activities and our major Gontracts and partnerships which ensure students and staff enjoy great food. and a warm and wel¢oming environment, indoors and outdoors. Our teams of Deputy and Assistant Heads, Heads of Year and subject lÉadgrs chgrish all our gtL¢dsnts as individuals. We are fortunate ind88d-, fortunats to work alongside such great wlleagues, and fortunate to work alongside our wonderful students. It's all about them. Liz Harrison Chair of Govemors The Abbey School Date.. Ig A.,L Z924 Page 3
THE ABBEY SCHOOL, READING IA Company Llmitèd by Guarantee} GOVERNORS. REPORT FOR THE YEAR ENDED 31 AUGUST 2023 The Governors of The Abbey School, Reading present their annual report for the year ended 31 August 2023 under the Companies Art 2006 and the Charities Act 2011, together with the audited accounts for the year. and confirm that the laller wmply with the requlrements of the Act. the Trust Deed and the Charities Statement of Recomm8nded Practi (SORPI. REFERENCE AND ADMINISTRATIVE INFORMATION The Abbey Sthool, Readlng Is 2 Company Limited by Guarantee and was reglstered on 31 January 1914. The Company registration number is 00133676. It 1$ also a Charity. registration number 309115. The Governors, Offi¢ers, Key Addresses and Advisers are set out on Pages 2 and 3. The company has a wholly owned subsidiary, Abbey Commerclal Enterprises Limited. the School's trading arm. The school is an active member of tho Headmasters and Headmistresses Conference IHMC), the Girts, Schools Association, the Independent Association of Prep Schools IIAPS), the Association of the Goveming Bodies of Independent Schools and the Independent Schotsls. Bursars Association. STRUCTURE, GOVERNANCE AND MANAGEMENT Govemlng DoGument The School is governed by ils Memorandum and Articles of Association, dated 4 December 2006 as amended by special resolution dated 7 December 2015. Governlng Body The Governors are all Directors of the company and appoint new Govemors either lo fill a ¢8SU81 vacancy or by way of additions to the board. The total number of Governors shall be not less than twelve and not more than twenty-four. Of these, as far as is practicable, one Govemor shall be the nominee of The Bishop of Oxford, one an alumna of the school, and one a parent of a ¢hlld at the school. The nomlnee posllions are ratifi'ed at a full Gov8mors' meeting. Each Govemor, other than the nominees, is elected for ft)ur years and retiring Govemors can stand for re*le¢lion for one further term al the next Annual General Meeting, and at the Govemors discretion when in the interests of the school, this may be further extended. Those who held office during the year ar8 listed on Page 2. Organlsatlonal management Tlie mernbers of the Governlng Body are iegaiiy responsible for ihe overaii management and control of the School. The Governing Body meets al least three limes a year. Much of the preparation for these meolings Is undertaken by the Finance and General Purposes Committee IF&GP Committee} which meets before each Governors, meetlng. The Chairman of the F&GP Committee is Mrs J Buller. The othor principal committees ar8-. Education Comrnittee chaired by Mrs S Colebrook. Governance Committee chalred by Mr S Dimmick In addition to these commillees there are working groups on Futures. Estates, and Engagement and Development and Governors support the school by taking the lead on Risk. Audit and Compliance {'RAC'I. Child Protection and Safeguarding, Human Resourcas and Health & Safety. Committee members and Lead Govemors are listed on Page 2. Page 4
THE ABBEY SCHOOL, READING IA Company Limited by Guarantee) GOVERNORS. REPORT {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 The day to day running of the School is delegated lo the Head who is assisted in this by other members of the Whole School Leadership Committee. which comprises the Junior School, Senior School and Business Leadership Teams. The Head. Junior School Head and Head of Finance and Resources are the steering group for the Whole School Leadership Committee and attend meetings of the Goveming Body. They are also represented, along with other senior staff. on the Committees. Recrultment and Tralnlng of Governors The Governance Committee considers potential new Govemors for ellglblllty, competence, specialist skills and availability. New Govemors are given an induction into the worklngs of the School. inctuding its policies and procedures, and are given a tailored induction pack. Training and bespoke Courses are regularly offered to all Govemors. Corporats Govomance The Governing Body is mindful of the principles and recommended practice set out in the Charity Governance Code for larger charities. and believes that it applies, much evidenced in this annual report, the specrfied principles of organisational purpose, leadership, integrity. decision making, risk and control, board effectiveness, diversity, openness and accountability. As part of an overall approach to managing potential conflicts of interest The Abbey has a Govemor conflict of interest policy and at the start of each Govemor meeting everyone in attendance is required to dedare any interest that may be in conflict with an agenda or ded¥ioD item. Senior members of staff responsible for decision maklng, Including the appolntment of stsff or contractors. are correspondingly required lo sign an annual dedaration regarding potential conflicts of interest. Rlsk Management The Goveming Body is responsible for ensuring that the risks faced by the Charity are properly assessed. It is aware of the importance of protecting the business as far as possible from operational and reputatlonal damage, as w811 as from the risks of unpredictable crisis and disaster. Risks are examined each year when updating the Risk Register and in the process of strategic planning. The generi¢ key controls used by the School to manage risk include- Annual review of the Risk Register, in detail by the lead Governor on Risk Audit and Complian¢e. and reviewed by Council Formal agendas and minutes to support decisions on all Committee and Goveming Body activities Tormg of Roforoncg for all Comrnitt••s Comprehensive strategic planning, budgeting and management accounting Established organisational and govemanc8 Structure and lines of reporting Formal written policies Vetting procedures as required by law for the protection of vulnerable people Clear hierarchical authorisation and approval18vels The above structure ft)rmalises the risk management processes established for the Charity. Through these processes, the Govemors identify the major risks to which the Charity is exposed and review the systems and prOdureS established to manage them. Nevertheless, it Is recognised that such systems can provide only reasonable but not absolute assurance that major risks have been adequately addressed and can be managed. Page S
THE ABBEY SCHOOL, READING IA Company Llmlted by Guaranteel GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 Pay poll¢y ft>r senlor staff The pay of senior staff is reviewed annually. and includes comparisons with other independent schools. Being located in the South East. where there are significant costs in relation to housing. The Abbey ke8ps abreasl of pay and employment conditions elsewhere. Volunteers There is no shortage of volunteer support throughout the School, from parents assisting in reading Glasses in the Junior School, In the library and on school trips lo running the second-h8nd clolh8s shop. Former pupils, Gov8rnors and other interested adults have also given freely of their time. All tsf this is very much valued by the School. Govemors take this opportunity to say how muth they appreciate the continuing and valuable support of volunteers lo the School. OBJECTIVES AND AIMS Charlt8blo Objectlves The objects of the School are set out in the Memorandum of Association. The main object is summarised as the mnning of a School lo provide a gen8ral education whiGh includes relSgious instruction in the doctrines and duties of the Churth of England. Tha school educates some 1,000 gids at no cost to the stale, The Charfty's Alms As an education81 charity for girfs aged 3-18, The Abbey School exists to provide an outslandlng. challenging and fulfilling education for girts that equips them lo live with confidence, purpose and joy. Working in partnership with families. the Sehool supports each individual sludenl lo expand thoir horizons. discover their passions and fulfil their potential. The School offers academic excellence, extra-curricular opportunity and pastoral assurance within an environment prioritising kindness and fellowship. The School's obledlve over 130 years ol leadership, innovation and reform has been to provide a liberal, pradical and general education: Llberal in thought, tolerancg, and generoslty. Practical in preparing sludenls lo face a changing world on their own terms, excited by opportunity. resolute towards uncertainty and committed to leadership and service. Gènoral in the remarkable breadth and range of experience and encouragement to Darticipale. Key Oblectlves The School's 8trategy sets out seven key objectives in three areas.. sludent experience, community and future development. These objectives span the academic and all-round education of students; pastoral carg-, the 81rength and diversity of the community,. connections with the wider W0d. an outward4ooking perspective and innovative approach., and the highest stsndards in the maintenance of the School's estates, finance and compliance. All the objecUve5 seek lo bring about the charity's overall aim as specified above. A particular focus within the seven key objectives is on partnerships, access lo education via bursary support, and involvament in philanthropic and community initiatives to ensure the broadest possible public benefit both locally and further afield. Moa8urement of Objectlves In furtherance of these objectives the Govgmors, e$ charity Iruslees. have complied with their duty in section 17151 of the Charities Act 2011 to have due regard lo the Charity Commission's published general guidance concerning the operation of the public b&nefit requirem9nl under that A¢t. Page 6
THE ABBEY SCHOOL. READING {A Company Llmlted by Guarantee) GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 Strategic R8port The Head and the Whole School Leadership Committee continue to lead the School and to follow the three-year strategic plan across all areas of the School's operations laid out in 2021. The School has reviewed its use of space and has in place a plan, still capable of being refined, for all of its diverse sites. This plan seeks lo ensure their most effective use as well as the best possible contribution lo Ihe local area and community. It also tskes into account key environmentsl priorities. Recent projecls have induded a major exiension and development of the Junior School site and the sympathetic renovation of one of the School's signature spaces, Knell House. home to nursery arkd Reception. In the year just ended the substanlial development of a new Sixth Fomi Centre has been successfully completed. Also part of the strategic plan, the School continuously looks to raise bursary funds to ensure that girls can continue in the luture to enjoy an Abbey education whalever their financial ¢irwmstanc8S. ACHIEVEMENTS AND PERFORMANCE Summary The Abbey is one of the country's foremost independent gitls, schools from 3-18. The Sch¢Jol at present educates around 1,000 gids in a lively, wbrant leaming environment. It has identffied six qualibes that help to define an Abbey education.. Outstanding outcomes as a by-product of a leaming environment full of excitement. fijn. discovery and scholarship Extraordinary opportunities across an array of activities to allow students to develop leadership and find thelr passlons City edgo, down-tOThaarth attitud$s and a roadiness to take on the worfd Innovation and global outlook, with a curriculum includin9 the International Baccalaureate's PYP and DP. a focus on ideas and passion, a celebration of diversity, and a growing partnership programme connecting students acro$s our local community and across the wodd Exceptional individual attention and care from truly remarkab18 Staff Joy at the heart of everyttiing we do Underlying this is the focus on each indiwdual student and celebrating and cherishing them for what they offer. The School supports each student to be motivated by the joy of what they do and th8 SUPPOrt of staff and peers to achieve more than they would have imagined possible. In the Sixth Fom the School offers principal pathways.. the A Level programme and the Intemalional 8accalaureate Diploma Programme. Results in both and in GCSES were again outstanding. At GCSE 84Yo of results were at 9-7 IA"_Al. In A Levels almost 601lJo of results were at A"_A. In the IB Diploma the average Student score was 38 points from a maximum of 45 points. These results were secured in the context of a national fall in top grades following the recalibration of grading levels after the disruption of the pandemie. They were aehieved by students who had bome the brunt of that disruptlon durfng their courses and are a testament to their s[lIence 2nd to the support of their teachers. All-round education and personal development share equal importance with academic success. The School offers eight principal streams of practical and creative activty.. music, art. drama. sport. textile design, food and nutrition, outdoor education and a wide range of dub activities. All of these areas feature signifieanl student leadership and the opportunity to leam skills that will help all students contribute to their communities. In addition. thriving Duke of Edinburgh, Abbey Award and Creativity, Activity and Selvice (CAS} programmes prepare students both for service and leadership in the wider wot1d. I these areas allow for individual excellents. Abbey students routinely ad)ieve the highest levels in music examination and perfomiance, play sport represeritatively for Counties and nationalty, and win awards for creative and research work. However, of equal importan* is the opportunity they provide for participation for all. Page 7
THE ABBEY SCHOOL, READING (A Company Llmltgd by Guarantee) GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 Entire cohorts participate in voluntary programmes and charity work and learn lo collaborate and contribute. The school's core purpos8 IS to develop confidence, purpose and joy in students and this places personal development at the hoart of the education it offers. Students actively campaign in areas such as diversity, the environment. gender relations and eqLJ81ity. The desire lo make a difference, the knowledge and skills to do 50 effectively. and the resilience and confidence to see things through are key elements in the leading educational experience the School provides. Bonefi¢larles of the SGhool's charltable work - partnershlps wlth local schools and the communlty This year saw Ihe launch of a major new initiative lo support and develop our community work.. the ARCH programme. ARCH is a hub bringing together individuals and organisations across Reading lo offer opportuni118s and leaming experiences to young people and lo young women in particular. ARCH 8V8nls includo a range of atttivities to develop 8spiralion and self-discovery. Even in its initial phas& ARCH has brought together 30 organisations and schools. Over 200 volunteer hours have b8en dongted from business, community organisations and individual experts. Over 1,000 students have allended talks and events covering career areas from engineering to poetry- 2.500 people viewed ARCH exhibitions. and 30,000 people viewed a student and Reading community collaboration al the Saatchi Gall8ry in London. One of the major events In the ARCH programme was the Reading Festival of Sport at The Abbey. This has become part of the Council's Reading Children's Festival, with over 100 primary children from 20 schools learning to play a new sport. Another was the Social Enterprise project, where teams of students from independent and maintained schools c8m& together lo develop ideas to improve their local communities, in collaboratlon with the Henley Business School. ARCH will conllnue to transform our community engagement, identifying areas of shared mutual benefit to develop the Ilfe chances of a wide range of young people across Reading. As we have previously noted, vnder both the Inlemational Baccalaureate course which includes a 'Creativity, Activity and Service, Gomponenl, and The Duke of Edinburgh's Award Scheme which Includes a volunleering strand - 6 months of volunteering for Silver and 12 months for Gold our students have ample opportunity to support local schools and the local community. Once again, beneficiaries have included the Royal Berkshire Hospital and Macmillan Cancer Support amongst others. Other beneflclarl8$ of the School's charitsblft work . charlty donatlons and othor Input students and staff al the Abbey school remain keen to be involved in supporting outside charities and other organisallons. Certain members of staff a¢1 as Governors at other schools. In addition to much valued volunteer contributions. we collected and made donations of alrnost £10,000 to range of charities chosen by Students, which included Brass for Africa, Britain's East and South East Asian Network, Macmillan, Sophie's Legacy, Royal Berkshire Hospital Babies, Anthony Nolan, Royal Commonwealth Soclety for the Blind, Jeans for Genes, and Children Intemational. Community Use of facllltles The Abbey School supports ils charftable objects wllhin the community by making its facilities available for public benefit. We share our facilities. including the halls, the all-wealhor 5POrts pitches. the gymnasium and the indoor Swimming pool with local schools and communlly groups. Amongst the beneficiaries during the year were: Swim England Synchro Assessments Reading University Water Polo Team Reading University Hockey Club GB Paralympic Rowing Team - capsize drills Reading Wildcats Lacrosse Club Reading Bowling Club Parenthesis Choir Page 8
THE ABBEY SCHOOL. READING {A Company Limited by Guarantee) GOVERNORS. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 Wesl Forest Sinfonia School of the Arts Reading School RABBLE Theatre Reading Prayer Group The Rock Choir Reading St Andrews Scotlish Dancing Reading Tango Club Dants wtth Sonia Brown Reading Male Voice Choir Royal Berkshire Hospital Paediatric Diabeles Team No. 5 Charity Parking for marshals of Reading Half Mar81hon Enfrrgy and Cart>on Roporting 31 August 2023 31 August 2022 Energy consumption in Kwh Associated emissions in tonnes CO?e Intensity ratio - tonnes 3,373,835 648.88 0.65 3,697,577 687.56 0.67 Measures laken to irnprove energy efficiency include= a sharp focus on energy efficiency applied to the new sixth fom) centre development. the construction project itself. and its ongoing operation. This uses specifically designed measurement and controls of temperature, air flow, and air quality which with applied technology. including solar panels mounted on the roof. limit the requirement for power the continuing upgrade of the Building Management Syst8m to control in other parts of the site heating plant and equipment leading to reduced energy consumption the continuation of LED lighting installation and associated motion Sensors to Gut off usage when appropriate the leasing of vehicles selected for their energy efficiency We have followed the 2019 HM Govemment Environmenlal Reporting Guidelines. We have also used the GHG Reportsng Protocol - Corporale Standard and have used the 2022 UK Govemment's Conversion Factors for Company Reporting. The chosen intensity measurement ratio is total gross emissions in metric lonnes C02e per pupil. the ommended ratio for the sector. Engagement wfth employees The School is committed to regular and transparent sharing of information wsth all staff and to providing opportunities for collaborative consultation. Regular online and in-person briefings and meetings are held and Infom)ation Is also wldely disseminated via email and via collaborative discussion tools such as Jamboards. The School intranet contains news, policies, and other infomiation, accessible to all staff. Important updates affecting employees are often shared in advance to allow for feedback and improvement before final decision5 are confirmed. Following extensive consultation and discussion the School launched a new pay and benefits System to ensure that remuneration and rewards remain Competitive and supportive for all colleague5. With regard lo disability the school's active policy is lo promote equal opportunities and oppose discrimination on the grounds of disability. Page 9
THE ABBEY SCHOOL. READING IA Company Limited by Guarantee) GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 Engagement wlth Suppllers, the parent body. and othor buslness relatlonships We recognise the need to maintain and foster good relationships with our suppliers, the parent body, and others. and we monitor closely our dialogues with all of them. Our key business managers have all been in post for a number of years and have developed strong and positive relatlonships with those with whom we deal. Payments due to us are by and large collected efficiently and. whèn necessary. with sensitivity, and we pay staff and suppliers promplly and accurately, with supporting information always provided for clarity. On matters of schooling we engage positively with our pupils and their parents through a variety of activities and communications. Many of Ihese processes are 0-Way.. we listen carefully lo the voices of our highly articulate pupils and the valued feedback and opinions of their parents. The Abbey Parents. Society ITAPSI continues to go from strength to strength to improve our sense of a shared community still further. Prornotlng the $uGGgss of the school The Gov8rnors and the School's executives seek succ@ssful outcomes from all of the aGtivities they pursue. In delerminlng the most appropriale way of achiewng the desired sUIts, their decisions lake account of the inlerosls of. and the imp8¢t on, the pupils, the parent body, staff, suppliers, the environment, Ihe local community, and all others likely to be affected. We strive continually not only to maintain bul glso lo enhance our hard-won reputallon for integrity and high standards of both conduct and achievement. Financlal A¥sistanco The School has a poll¢y on financial assistance. including bursaries of up to 100Yo, and thls Is advert15ed on its website, and al open days. The Bursary Fund was established over 30 years ago with the specific aim of generating funds in order to offer places to pupils who would olheNSse not have access lo education at the school. The value of the fund is £1 million and will be maintained al this figure. Academie scholarships worth 1 Oyo of luilion fees are offered Iwhlch can be supplemented wllh a means-lesled Bursary). Specialist scholarships are also offered, supporting excellence in art, drama. rnusi¢ and sport.. Parents who cannot afford to pay the fees in full or in part can apply for a means-lesled Abbey School Financial Bursary. The Abbey School Scholarship and Bursary policy allows up to a total of 6'/D of IhB current level of annual gross fee Incomo for these awards. All awards are tenable subject lo sallsfaclory attendance. Gonducl and progress. Temporary financial asslstan¢e may be available lo parents who find themselves with short term financial difficulties. This is means-tesled and offered at the discretion of the Head. Wid8r access to Schooling was achieved in 202212023 with a total of £294,00012021122 £301.0001 awarded in scholarships. qranls, prizes and other awards. Some 45 hardship ca>88 rpegivad finAnrial *iJDpnrt amoLinting to £560,0001202112022 £556,000) towards fees. equivalent to 28 full senior fee places. 350/0 of the pupils of the Senlor School (2021122 - 35.10) received some fomi of financial assistance with their fees. This figure does not include staff discounts. other pupil beneflts The Childcare Vouchers Scheme is available, as is a 5Yo third slbllng discount. In¢ome from Investments Income from Investments is reinvesled, while operating surplus 15 used lo maintain the s¢holarship and bursary funds. including temporary financial assistance. The investment fund is available lo support the bursary fund wh8n required. Page 10
THE ABBEY SCHOOL, READING IA Company Limited by Guarantee} GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 FINANCIAL REVIEW Financial Results The consolidaled Stalement of Financial Activities on page 19 shows the Net Movement in Funds for 2023 as a defictt of £391,775 (2022.. a surplus of £546,3131- Broadly speaking, this represents the shortfall in income from termly fees and related activities. supplemented by donations. fundraising. and other income, to meet the assodated costs. The School had a deficit for the year of £413,660 12022- a surplus of £479.744). The surplus befofe depre¢iation and interest is 6.2Yo (2022- a surplus of 9.9%). The Balance Sheet on page 22 shows Net Current Liabilities of £7.363,593 12022: £1.185.432)- To fund its ongoing programme of planned capital investment the School had in place al the balance sheet date bank loans of £4.6m, of which £3.2m was repayable within one year. After the year end exlended bank loan repayment teryns were agreed, and the amount repayable within one year was reduced to £320,000 (see also note 30 Post Balance Sheet Events}. In the opinion of the Govemors the markel value of the land and buildings of the School is not less than th8 book value in the accounts. Investment policy and perfomiance The overall investment objectlves of the School are to create sufficient funds through income and capital in order to enable the School to cary OLrt its purposes consistently. year by year, and with due and proper ¢onsideraÉion for future needs. They include the maintenance of and, rf possible, enhancement of the value of the invested funds while they are retained. The School's investment perfomiance is measured wulady against a benchmark, currendy named the MSCI PIMFA Private Investor Balanced Index. For this year our total retum of -3.9% was poorer than the Index, which was +1.80/0. The School's investments are managed by Charfes Stanley and Company Limited under the supeNision of Governors. At 31 August 2023 investments, of which the majority were UK listed equities, had a market value of £1,570,829 12022.- £1,634,839), of which £1,000,000 represented designated fvnds. Their market value at 31 August 2023 contributed to a net investment loss of £88,58312022: £129,6261- The Govemors are authorised by the Memorandum of Association to invest monies not immgdiatgly r8quirgd for the School's purposes in investments. securitses or propety as may be thought fit Reserves Policy The Govemors, policy is to build up funds out of annu21 operating surpluses, subject to the prior demands of further capitsl expenditu. to equip the School with the up-trtrdate facilities needed to maintsin the stsndard of educational services currently provided. The Govemors aim to maintain general reseNes equivalent to at lea$1 3 months of operating expenditure for Ihe school. Excluding the designated Bursary Reserve of £1 m, general reserves at 31 August 2023 were £15.5m which represents nine months of unrestricted operating expendilure, and provides additional financial flexibility at a time of signtficant capital investment. These reserves ensure the school can fulfil and complete ils charitable obligations and commltments. Notes 22 and 23 show the allocatlon of the reserves between those designated for speGffic purposes and those available for the day to day requirements of the School. Pag811
THE ABBEY SCHOOL, READING IA Company Limlted by Guarantge> GOVERNORS. REPORT {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 GOING CONCERN The Governors review the School'g financial perfomance and plans al each Council meeting (usually 4 per year) along with our principal financial risks. In March, and again in June and September, they were satisfied that the School had sufficient resources lo continue operating for the foreseeable future, and the 8c¢ounls for the year ended 31 August 2023 have been prepared In Ihe knOedge that the School is a financially vlable organisatlon. World events, 8conomic clrcumstances, and the potential impact these could have on the school are regularly assessed by the Governors. Finance and General Purposes Committee. most recently in March 2024 when our ongoing forecasts and projections to ensure that the School remains financially viable were reviewed. With regard lo the next accounting period, the year ending 31 August 2024, the most significant matters likely lo affect the School's net assets are student numbers and the costs associated with utilities and borrowings. All of Ihese we monitor closely and continued effort goes in to supporting student numbers at a lime of economic uncertainty 8nd managing costs closely. The School has a strong 8$5el base and generates a posltive cash flow from ils operations, and the Governors will continue to monitor and r8view financial and operating plans wilh the School's executive team to mainlain robust financial fooling as we move forward. We are of the opinion that th8 charity will Continue lo have sufFicient resources lo meet ils liabilities as they fall due and as such we remain satisfied that The Abbey School Gan continue operating for the foreseeable futur8 and our aGGounls have beon prepared in the knowledge that the School is 8 financtally viable organisation. PROPERTY ASSESSMENT An ongoing review of the school properties is undertaken by the Head of Finance and Resources, with the Head of Estates. The sites are well maintalned with a continuous planned prevenlativ8 maintenance prograrnme and capital investment in major and minor projects. Site improvements and estates related compliance inspections and activity are included in the monthly management report to Council. Any property ISSU8s ar8 raised lo the Board of Governors, through the link Governor for Estates. During the year it was confirmed that none of the school siles contained RAAC (Reinforced Autoclaved Aerated Concrete} in their construction method. An estates contingency is included in the annual budgets to address any unanticipated property issues. Th8 assessment of the properties al the year end is that there are no impalrments to report. RISKS AND UNCERTAINTIES An unexpected fall in pupil numbers would represent a significant risk to the School, causing a failure to meet financial outcomes on which future inveslment and other expendSlure decisions are based. Nevertheless, our rogular review of current and projected pupil numbers provides a check that our budoet8 for future years are as realistic as possible including, for example, provision for the potential impact of the imposilon of VAT on fees and its effects on both pupil numbers and op8ralional finance. Any significant reduction in numbers would prompt immediate VIeW action. The future economi¢ impact of UK politics and worfd events is difficult to forecast. Economic uncertginly is also naturally a significant factor for parents considering education in the Independent School Sector. and th8 Goveming Body, with guidance from the lead Governor for Risk. Audit and Compliance, will continue to monitor this clo$ely. Health and Safety, nol least the potential thal pos8d by a p08sible SurgenCe of Covid-19. also repr8s8nt significant areas for risk managemonl. Physical rlsks range from fire and olher damage lo infra$lnJcture to personal risks Imost notably when away from the campus on trips and expeditions). There Is a regular risk audit. and conts'nuily plans are in place to ensure the school continues lo function effectively in the event of a malor incident such as fire or floo(l. Pago 12
THE ABBEY SCHOOL. READING {A Company Limitgd by Guarant•el GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 FUTURE OBJECTIVES The Govemors and the Whole School Leadership Committee once Again look forward positively to the challenges that lie ahead. and remain committed to keeping The Abbey at the forefront of education. Together the leadership of the School continues to work through the Strategic Plan, running unkn"12024. This plan defines seven goals ranging across the student experience, our community, and the future. Experience Academic education. We seek to provid8 exce116nce and curriculum breadth, valuing and celebrating each individual's personal best endeavour and prioritising curiosty and the love of learning. We aim to ensure outstanding results supporting access to competitive outcomes and encourage ambition, range and individuality In the next stage of our students, education. All-round education. We seek the widest r8nge of activities and greatest opportunity for student leadership in the co-curriculum, stretching the most able and encouraging the participation of all. Pastoral carg. W8 seek to help students build resilience and positive mental health, understanding how to look after themselvas and others, and to provide the right support quIcY when it is needed based on knowlng and valuing each student as indNiduals. Community People. We seek to develop and ¢91gbrate the experience of leaming and working at The Abbey to ensure continued strong numbgrs of diverse and talented applications from staff and students, supported by 8 far- reaching bursary programme. We recognlse that our strength as a school is founded on the generous and whole-hearted commitment of remarkab18 Students and Staff. Connections. We seek to promote an inclusive sense of common purpose and belonging across our own community of students, staff. families and alumnae and lo make connections both locally and globally. We encourdge ffleaningful participation in philanthropic and wider community initiatives lo bring mutual benefit and enrichment to as wide an audience as possible. Future OUard-lOokIng perspeGtive and innovation. We seek to foster an intemational outlook that champions diversity and encourages engagement with the wodd. We look to play an active part in the wider educational arena and commit to a culture of open self*valualion driving innovation and improvement. Eststes. finance and Compliance. We seek to mainlain and develop our estsl8, our finances and our bursary programme sustainably. with confidence and good sense and to ensure financial good health based on appreciation for the support and commitment of our families. We look to meet and exceed compliance standards in all areas of our operations STATEMENT OF RESPONSIBILITIES OF COUNCIL The Govemors (who are also direclors of The Abbey School for the purposes of company law and trustees for the purpose of charity law} are responsible for preparing the Govemors, Annual Report {incorporaling the Strategic Report) and the financial statements in accordance with applicable law and United lQngdom Generally Ac(xpted Accounting Practice (United Kingdom Accounting Standards}. Company Igw requires the Governors to prepare financial statements for each financial year. Under company law the Govemors must not approve the financial ststements unless they are satisfied that they give 2 true and fair view of the state of 8ffairs of the charitable company and the group and of the incoming $OurceS and Page 13
THE ABBEY SCHOOL, READING {A Company Llmit¢d by Guarantee) GOVERNORS. REPORT {CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2023 application of resources, including the income and expenditure. of the charitable group for that period. In preparing thes8 financial statements, the Govemors are r8quired lo: select suitable accounting policies and then apply them consistently.. observe the mothods and principles in the Charities SORP., make judgerTrenls and estimate5 that are reasonable and prudent: state whether applicable UK accounting standards have been followed, subject to any mal8rial departures disclosed and explained in the financial statements; and prepare the financial statements on the going concem basis unless it is inappropriate to prosume that the ch8ritable company wlll continue in business. The Govemors are responsible for keeping adequate accounllng records that are sufficlent to show and explaln Ihe charitable company's transactlons, disclose with reasonable accuracy al any time the financial positlon of the charitable company and enable them to ensure that the finanaal stalewents comply with the Companies A 2006 and the provisions of the charity's conslilution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the pr8vention and dete¢tion of fraud and other Irregularities. PROVISION OF INFORMATION TO AUDrroR Each of the persons who are Governors at the time when this Governors R8POrt is approved ha5 confirmed Ihal.. so far as that Governor is aware, there is no rg18vant audit information of which thg School's auditor are unawarfj., and that Govemor has tsken all steps that ought lo hav9 been taken as a Gov&rnor in order lo be aware of any relevanl audit informauon needed by the School's auditors in connectlon wSlh preparing their report and to establish that the School's auditors are aware of that infomialion. AUDITOR In accordanco with Sectlon 485 of the Companies Act 2006, a resolution proposing the re-appoinlment of James Cowper Kreston as auditors to the company will be put to a Special General Meeting. Thls Annual Report, prepared under the Charitles Act 2011 and the Companies Act 2006, was approved by th8 Goveming Body of The Abbey School at a Special General Meeting on 18 March 2024, including in their capacity as company directors approving the Strategic Report conlained therein, and is signed as authorised on ils behalf. Approved by order of the members of the board of Governors and signed on their behatf by: Mrs E A Harrlson (Chair of Governors) Dale.. 18N L go24 Page 14
THE ABBEY SCHOOL. READING IA Company Limited by Guarantee} INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE ABBEY SCHOOL, READING Opinion We have audited the financlal statements of The Abbey School. Reading (the 'parent charitsble company,) and its subsidiaries (the 'group'l for the year ended 31 August 2023 which comprise the Consolidated Statement of Finanual Activities. the Consolidated Balance Sheet, the Company Balance Sheet. the Consolidated Ststement of Cash Flows and the related notes, including a summary of significant accounting policies. The ffinancial 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 ststements: give a true and fair view of the slate of Ihe Group's and of the parent charitable companys affairs as al 31 August 2023 and of the Group's incoming resources and application of resources. induding its income and expenditure for the year then ended., have been properly prepaied in accordance with United Kingdom Generally Accepted Accounllng Practice- and have been prepared in accordance with the requirements of the Companies Act 2006. Basi$ ft>r opinion We conducted our audlt in accordance with Intemation81 Standards on Auditing (UK} IISAS (UK)) and applitable law. Our responsibilÉties under those stsndards are further described in the Auditors. 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 ststements in the United Kingdom, including the Financial Reporknng Council'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 8LtffienI and appropriale to provide a basis for our opinion. Concluslons relatlng to golng concem In auditing the financial statements, we have concluded that the Govemors, use of the going roncem basis of accounting in the preparation of the financial stalements is appropriate. Bas8d on the work we have perfomied, we have not identffied any matsrial uncertainties relating lo events or conditi-ons that, individually or collectively, may cast significant doubt on the Group's or the parent charitable companys abilty 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 Govemors with respect to going concem are described in the relevant sedions of this pOrL Page 15
THE A88EY SCHOOL, READING IA Company Limlted by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE ABBEY SCHOOL. READING (CONTINUED) Other Information The other information comprises the information Included in the Annu81 Report other than the financial statements and our Auditors, Report thereon. The Governors 8re responsible for the other infom)ation contained within the Annual R&port. Our opinion on the financial slatetnenls does not cover the other informallon and, expt lo the extent otherwise 8xpliciUy stsled in our r8POrt. we do not express any form of assurance Conclusion thereon. Our responsibility is to read the other infom)ation and, in doing so, consider whether the other infomiation is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or othenmse appears to be malerially mlsgtaled. If we identify such material inconsistencios or apparent material misslalements, we arg required to determine whether this gives rise lo 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. Oplnlon on othgr matters pre$¢ribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit- the information given In Iho Gov8mors' ReF)Ort including the Stralegl¢ R8port for the financial year for whlch the financial statements are prepared is consistent with the financial statements. Ihe Govemors. Report and tho Strategic Report have been prepared in accordance with applicable legal r8quirem8nts. Matter5 on whl¢h we are requlred to rfrport by exception In the lighl of our knowledge and understanding of tho charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Govemors, Report Including the strategic Report. We have nothing to report in respect of the following matters in relallon lo which Companies Act 2006 requires us lo report to you if, in our opinion.. the parent charitable company has not kept adequate and sufficient accounting records. or returns adequate ft)r our audit h8ve not been received from branches not visited by us- or the parent Gharitable company financlal statements are not in agreemenl with the accounting records and returns.. or cèrtain di*elD8LJfAs t)f fi()vp.rnDrs r8mungr8tion $p•eifiad by law ar• not m8d9- or w@ have not reIved all the information and explanations we Trquire for our audlt. Responslbiltties of trustea$ As explalned more fully in the Govemors, Responsibilities Slalemenl, the Govemors (who are also the directors of Ihe charitable company for the purposes of company lawl are responsible for the preparation of the finan¢lal statements and for being satisfied that they give a true and fair view, and for such internal control 8$ the Governors detem)ine is necessary to enable the preparation of financial stalen7enls Ihal are free from material misstatement, whelher due lo fraud or error. In preparlng the financial statements, the Governors are responsible for assessing the Group's and the parent charitable compgny's ability to continue as a going concern. disclosing, as applieable, mallers related to going concern and using the going concem basis of accounting unless the Governors eilhor intend to liquidal8 the Group or the parent charitable company or to cease operations, or have no reallstic alternative but lo do so. Page 16
THE ABBEY SCHOOL, READING (A Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE ABBEY SCHOOL. READING (CONTINUED) Audltors. responsSbllltles for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the finanaal stalements as a whole are free from material misstalemenl. whether due to fraud or error, and lo issue an Auditors, Report that indudes our opin50n. Reasonable assurance is a high level ol assurance, bul is not a gEJarantee that an audit GonduGted in accordan with ISAS (UK) w¢ll always detect a material rnisstalement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they o)uld reasonably be expected to influence economic decisions of users taken on the basis of these financial statements. Because of the inherent limitations of an aLsdit. there is a risk that we will not delect all irregularities, including those leading to a material misslaternent in the financial statements or nonOmplian¢e wilh regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflerted in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due lo fraud ralher than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. The specific procedures for this engagement that we designed and performed tr) detect material misstatements in respect of irregularities. including fraud. were as follows.. Enquiry of management and those tharged with governance around actual and potential litigalion and claims. Enquiry of management and those charged with govemance to Identify any material instances of non- compliance with laws and regulations. Reviewing financial statement disclosures and testing lo supportlng documentation to assess compliance with applicable laws and regulations: Performing audit work to address th8 risk of irragularities duo to management OV8rride of controls. including testing of journal entries and other adjuslmonls for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporttng Council's website at: www.frc.o .uklauditorsres nsibilitses. This description fomis part of our Auditors, Report. Page 17
THE ABBEY SCHOOL. READING (A Company Llmlted by Guarantae) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE AB8EY SCHOOL, READING (CONTINUED) Use of our 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 wgrk has been undertaken so that we might slate to the chartlable company's memb8r3 those matters we are required to stale lo them In an Auditors, Report and for no other purpose. To the fvllesl extent permitted by law, we do not accept or assume responsibility lo anyone other than the charitable company and 11$ mernbers, as a body, for our audit work, for this report. or for the opinions we have fomied. Darren O'connor BS¢ {Honsl FCCA ACA (Senlor Ststutory Audltor) for and on behalf of James Cowper Kreston Audit Reading Bridge House Ggorge Street Reading RG1 8LS Dale.. 25 March 2024 Page 18
THE ABBEY SCHOOL. READING (A Company Lirnited by Guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2023 Restricted Unrestrictsd funds funds 2023 2023 Totsl funds 2023 Totsl funds 2022 Note Income from: Donations and legacies.. Donation Charitsble activities.. S¢hool fees Ancillary income Other trading activities: Tradlng income Non-ancillary income Investments 10,660 35,277 45,937 128,356 18.315.834 1,532,908 18.315,834 1,532,908 17,577,861 1,189,835 145,237 43,579 41,325 145,237 43,579 41,325 123,044 42.006 36,398 Total incom• 10,660 20,114,160 20,124,820 19,097.500 Expendiknre on: Raising funds Charitable activibes 48,916 20,364,691 48,916 20,379,096 43,749 18,377,812 14,405 Totsl gxponditur9 14.405 20.413.607 20.428.012 18,421,561 Net lexpenditurellincome before net losses on Investments Net Ilossesllgains on investments (3,7451 1299.4471 {88,583} (303,192) 188,583) 675.939 {129,626) Net (expenditurellincome Transfers behveen funds (3,7451 1,410 1388,030) {1.410) (391,TT5} 546,313 21 Net movement In funds (2,3351 1389,4401 (391,775) 546,313 Reconclllatlon of funds: Total fvnds brought forward Net movement in funds 44,206 {2,335} 17,013,555 1389.440) 17,057,761 (391.775) 16,511,448 546,313 Totsl fvnds &irried forward 41,871 16.624.115 16.665.986 17,057,761 The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 25 to 47 fom part of these finanaal statements. Page 19
THE A88EY SCHOOL, READING IA Company Limitgd by Guarant•g) REGISTERED NUMBER: 00133676 CONSOLIDATEO BALANCE SHEET AS AT 31 AUGUST 2023 2023 2022 Notè Fixed ass8ts Tangible assets Investments 14 23.891,550 1,570,829 18.163.792 1,634,839 25.462.379 19,798.631 Current assets Debtr)rs Cash at bank and in hand 16 569,391 638,845 516,860 848,669 1,208,236 1.365,529 Creditors.. amounts falling due within one year 17 {8,571,8291 {2,550,9611 Net curront liabllltles {7,363,593) 11,185.432) Total assets less ¢urrent liabllltlas 18.098,786 18,613.199 Creditors.. amounts falllng due after more than one year 18 11,432,800) {1,555,4381 Total net assets 16.665,986 17,057,761 Charfty funds Restricted funds.. Restricted funds 21 41,871 44,206 Total restricted funds Unrestricted funds 21 41,871 44.206 Designated ndS General funds 21 21 1.084,330 15.539,785 1.080.000 15,933,555 Total unrtstricted funds 21 16,624,115 17,013,555 Total funds 16.665.986 17,057,761 The Govemors acknowledge thèir responsibilitles for complying with the requir8ment5 of the Act with respect lo accounting records and preparation of financial statements. Page 20
THE ABBEY SCHOOL. READING IA Company Lirnited by Guarantee) REGISTERED NUMBER: 00133676 CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2023 The financial statements were approved and authorised for issue by the Gov8mors and signed on Iheir behalf by: Mrs E A Harrison BA (Honsj MBA JP (Chair of Trustees) Dale= Mrs J Butler FCA The notes on pages 25 to 47 form part of these financial ststements. Page 21
THE ABBEY SCHOOL, READING IA Company Llmited by Guaranteè) REGISTERED NUMBER: 00133676 COMPANY BALANCE SHEET AS AT 31 AUGUST 2023 2023 2022 Notg Flx#d assets Tangible assets Investments 14 23.891.550 1.570,831 18,163,792 1,634.841 25,462,381 19,798.633 Current a$$ots Debtors Cash at bank and in hand 16 570,780 506,758 532,804 728.622 1.077,538 1.261.426 Credltors-. amounts falling due wthin one year 17 18,561,918) 12,545.760) Net CUrt liabilltles {7.484.3801 11,284.334) Total assets18ss Gurrent Ilabllltl•s 17,978.001 18,514.299 Creditors.. amounts falling due after more than one year 18 (1,432,800) (1.555.438) Total n¢t as$ots 16.545,201 16,958,861 Charltyfunds Reslrlcled funds: Restricted funds 21 41,871 44,206 Total restricted funds Unrestricted funds 21 41,871 44,206 Designated fvnds General fundg 21 21 1.084,330 15.419.000 1.080.000 15,834,655 Total unrestricted funds 21 16,503,330 16.914.655 Total fund$ 16.545.201 16,958,861 The Company's net movement in funds for the year was £1413,6601 {2022- £479,744). The Governors acknowledge their responsibllltles for complying with the requirement$ of the Act with respect to accounting records and preparation of financial statements. Page 22
THE ABBEY SCHOOL. READING (A Company Limited by Guarantee} REGISTERED NUMBER: 00133676 COMPANY BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2023 The financial statements were approved and authorised for issue by the Govemors and signed on their behalf by- Mrs E A Harrison BA jHons} MBA JP (Chair of Trustees} Date: •ff The notes on pages 25 to 47 foim part of these financial 5tstements. Mrs J Butlar FCA Page 23
THE ABBEY SCHOOL, READING (A Company Llmlted by Guarantge) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023 2023 2022 Cash flows from opernting actlvlties Net cash used In operating activities 3.183,675 1,849.328 Cash flows frorn investlng aGtivitles Divid8nds and interest on investment portfolio Purchase of tangible fixed 85sets Purchase of invegtments Receipts from sale of investmgnls 41,325 36.398 17,593.525) 1835,447} {355.355) 1251,6531 320.529 208,733 Ngt Cash used In Invgstlng actlvltiè$ {7.587,026) {841,969} Cash flows from flnanclng activities Receipt of new bank loan Repayments of borrowing Inter881 paid 3,000.000 (122.6381 1170,9291 136,7451 156.0431 Net cash provided byl(used inl financlng activities 2.840,617 1226.9721 Change In cash and cash equlvalents in Iho year Cash and cash equivalents al the beginning of the year 11,$62,7341 848,669 780.387 68.282 Cash and ¢a$h equlvalents at the ond of the year 1714,0651 848,669 The notes on pages 25 to 47 form part of these financial statements Page 24
THE ABBEY SCHOOL. READING IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 General Infomiatlon The Abbey School. Reading is a charitable company limited by guarantee {registefed number 00133676 arsd tharity number 3091151, incorporated in England and Wales under the Companies Act 2006 and the Charities Act 2011. The address of the re9lStered office is given within the Gov8mors. Officers and Advisors section on page 1 and 2. Accounting pollcies 2.1 Basls of preparation of financial statements The financial statements have been prepared in accordance with the Charities SORP (FRS 1021- Accounling and Reporting by Charities: Stslement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in Ihe UK and Republic of Ireland IFRS 1021 (effective 1 January 20191, the Financial Reportin9 Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. The Abbey School, Reading meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at histr)rical cost or transaction value unless otherwise stated in the relevant accounting policy. The Consolidated Statement of Financial Activities (SOFA) and Consolid8Éed Balance Sheet consolidate the financial statements of the Company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. The Company has taken 8dvant8ge of the exemption allowed under section 408 of the Companies Act 2006 and has not presented Ils own Statement of Fin8ndal Actlvitles in these flnancial statements. 2.2 Basis of consolidation Th8 group accounts consolidate the accounts of The Abbey School. Reading and ils subsidiary undertakin9, Abbey Commercial Enterprises Limited on 2 line by line basis. The accounts are made up to 31 August 2023. No separate statement of financial activities or income and expenditure has been presented for the charitable company alone as pemiitted by the Companies Act 2006 and the. 2015 Charities SORP. The results of the subsidiary undertaking for the year are disclosed in note 15 of the accounts. FRS102 allows qualifying entitie t¥_art8in diselnsiira 8xAmptinn Th8 rhArity. nnly, t2k*n advantsge of the exemptions for the following disclosure requirement.. Section 7 'Statement of Cash Flows" and related notes and disclosures- and from the financial instruments disclosures, required under FRS 102 par2 11.40 to 11.48A and para 12.26 to 12.29, as the information is provided in the Group finanGial disclosures. presentation of an entity only Statement of Cash Flow Page 25
THE ABBEY SCHOOL. READING IA Company Limlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Accounting policles (continuod} 2.3 Golng conGem The Govemors note that al the balance sheet dale the group had net cUrnt liabilities of £7.363,593 {2022.. £1.185,432}. This significant Increase over the previous year 15 related lo Ihe School's development of its new Sixth Form Centre 8nd 15 further discussed in notes 17 and 18 which deal with creditors and, in note 30, post balance sheet events. The Governors have considered the yearfs net movement in funds, the prolected gross operating surplus and cash flow projections for future years. These indicate that within, and wSlhout exceeding, the arrangements estsblished with their bankers the school will be able to meet ils liabilities as they fall due. 2.4 Incomlng resour¢g8 All incomlng resources are included in the statement of financial acllvSlles when the charitable company is legally entitled to the income and the amount can be quantrfied with reasonable a¢Guracy. 2.5 Fees and slmllar income Fees receivable, charges for $eNices and use of premises ar8 accounted for in th8 period in whlch the service is provided. Fees receivable are stated after deducting allowances. scholarships and other remissions granted by the school. Means tested bursaries which provide financial assistance lo parents, are treated as expenditure from the designated fund within the stal8ment of financial activities. Fees received for education to be provided in future years are carried fonNard as advan fee scheme payments and fees received in advance in the balance sheet. These fees are leaSed lo the statement of financial activities over the period in which the school provides the services in future years. 2.6 Donations Donatlons received for the general purposes of the School are credlled lo unrestricted funds. Donatlons subject to specifie wishes of the donors ar8 credited lo the relevant restricted fund. 2.7 Resources expended R¥¥vurLe¥ Expended are accounted for on an accrual basis. Resources expanded are allocated lo specific activities wilhout the need for apportionment. The irrecoverable elemenl of VAT is included within the rtem of expense lo which it relates. Expenditure in resP8Ct of the other support costs of the School includes ¢rUItment costs and general office costs including governance costs. 2.8 Scholarships and bursarios Scholarships and bursaries, along with temporary financial assistance are charged to the slatemenl of flnancial activities in the year in which they are granted. Page 26
THE ABBEY SCHOOL, READING (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Accountlng pollcles Icontinuod) 2.9 Tangible fixèd ass8ts and d8preclatlon Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tsngible fixed assets are measured at cost less accumulated deprecAation and any accumulated impairment losses. Al Gosts incurred to bring a tsngible fixed asset inlo its intended working condition should be included in the measurement of cost. Depreciation is provided on all tangible fixed assets except land which is considered to be of negligible value, and is charged so as to allocate the cost of tangible fixed assets le55 their restdual Value over their estimated useful lives. using the straight-line method. Depreciation is provided on the following basis.. Freehold building Freehold improvements Motor vehicles Other equipment Computer equiprnent 2Yo per annum on cost 10% per annum on cost 250A par annum on cost 10Yo per annum on cost 33% per annum on cost Item5 Costing less than £5.000 are written off as an expense as acqvired. 2.10 Investments Fixed asset investments are a fomi of financial instrument and are inltially recognised at their transaction cost and subsequenuy measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which cas8 it is measured al cost less impaim)ent. Investmenl gains and losses, whether realised or unrealised, are combined and presented as 'GainsllLosses) on investments, in the Consolidated Statement of Financial Activi.@5. Investments in subsidiaries are valued at cost less provision for impaimient. 2.11 Debtors Trade and other debtors are recognised al the settlement amount. Prepayments are valued at the amount prepaid. 2.12 Cash al bank and in hand Cash at bank aiid in liand iiiGludes Ga•h éii(J short-term highly l*quid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 2.13 Llabllltles and provlslons Liabililies are recognised when there is an obligation at the Batance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement. and the amount of the setuemenl can be estimated reliably. Liabilities are recognised at the amount that the Company anticipates it wll pay to settle the debt or the amount it has received as advanced payments for the goods or seNices it must provide. Provisions are measured at the best estimate of the amounts required to settle the obllgatlon. Page 27
THE ABBEY SCHOOL. READING (A Company Limited by Guarantèe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Accounting policles {continu9dl 2.14 Financlal Instrum9nts The Group only has financial assets and financial liabilities of a kind that qualty as basie financial inslrumenls. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 2.15 Operatlng leases Rentals paid under operating leases are charged lo the Consolidated Statement of Financial Activities on a straighl-line basis over the lease term. 2.16 Pènsions The charitable company left the Teachers, Pension Scheme on 31 August 2020. The charitable company contributes into separate defined contribution schemes for teaching 8nd on-teaching staff for which the contributions are charged in the statement of financial activities In the year in whlch they are payable. 2.17 Advan¢e feg scheme Amounts received under the school's former Advance Fee Scheme contracts for education not yet utilised to settle school fees were recorded as current liabilities wh@re the education will be provided 12 months from the reporting date and as long-term liabilities where the education was to be provided in subsequent years. 2.18 Parents, d6po8lt$ The Governors have reviewed the contract terms under which pupil fee deposits are held by the school. Although under normal cirCumstanS thes8 will be repaid over future years when the pupils complete their education at the school, pupils can leave at eadler date5. The sch¢)ol does not therefore have an unconditional right lo relain the individual deposits for al least 12 months after the balance sheet dale and. in line with the requirements in FRS 102, the balance of the deposits held at 31 August 2023 have been included within current 1Sabililies. The prior year pupil fee deposits balance has been similarty represented. 2.19 Fund accountlng General funds are unrestricted funds which are available for use al the discretion of the Governors In furtheran of the gerieral objectives of the Group and which have not been designated for other purposes. Designated funds comprise unreslricted funds that have been set aside by the Governors for parttcular purposes. Details of Ihese reserves. as applicable to Ihe charity. are sel out in noto 21. Reslrict8d fund$ are funds where speciflc condllions imposed by the donor would restrict the use of unspent funds or where the terms of the app8al restrict the use of the funds. Investment income, gain5 and losses are allocated to the appropriate fund. Page 28
THE ABBEY SCHOOL. READING {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Crltlcal accounting estimates and areas of Judgement Estimales and judgements are continually evaluated and are based on historical experien¢e and other faclors, including expectations of future events that are believed to be reasonable under the circumstances. Critica5 accounting estimates and assumptions= The Company makes estlmates and assumptions concerning the future. The resutting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of Gausing a material adjustment to the carrying arnoLtnts of assets and liabilities within the next financial year are discussed below. Significanl estimates induded within the financial statement5 indude provtsion for fee debtors, which require a judgement by management regarding Ihe likelihood of recovery. Mana9ement review and assess fee debtors on an individual basis and provide for fee debtors as appropriate. DepCiatiOn Is another key estimate in the accounts which requires management judgement over the useful life ot the assets. The policy has been set out in the notes above. Page 29
THE ABBEY SCHOOL, READING IA Company Llmit8d by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 School fees Unrestrlcted funds 2023 Total funds 2023 Total funds 2022 S¢hool fees receivablo conslst . Gross fees Less.. Scholarships and other awards Less.. Other discounts 18,819,319 18,819,319 18.039.356 {997,5731 {997.573} {1,000,1311 165,8531 165,8531 {17,1311 Net fe0$ recelvable 17.755,893 17,755.893 17,022.094 Add: Bursaries paid out of designated lunds {means-tested} 559,941 559.941 555,767 Total 2023 18.315.834 18,315.834 17,577.861 Total 2022 17,577,881 17.577.861 Page 30
THE ABBEY SCHOOL READING (A Company Llmited by Guaranlee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Income from donations Restricted Unrestricted funds funds 2023 2023 Total fun(ts 2023 Total funds 2022 Donations 10.660 35,277 45,937 128,35 Total 2022 13.126 115.230 128.356 Non ancillary income Unrestrided funds 2023 Total funds 2023 Total funds 2022 Propety rent818 43,579 43,579 42,006 Total 2023 43,579 43.579 42,006 Total 2022 42,006 42,006 Income from Investments Unrestrided funds 2023 Totsl funds 2023 Totsl fijnds 2022 UK listed investments 41.325 41.325 36,398 Total 2022 36,398 36,398 Income from investments was designated in the current and previous financial year. Page 31
THE ABBEY SCHOOL, READING IA Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Anclllary Incoma Unrgstrlcted funds 2023 Total funds 2023 Total funds 2022 After school care Trlps income F88s for extra-curricular courses and examinations Fees in lieu of nolice Registration fees Misc8llaneou8 income 61,195 683,316 593.111 21,105 36.466 137,715 61,195 683,316 593,111 21.105 36,466 13T,715 46,035 489,560 507,287 17,940 38,465 90.548 Total 2023 1,532,908 1,532,908 1,189.835 Total 2022 1,189,835 1,189,835 Expenditure on Gharltsble actlvltl¢$ Total funds 2023 Total funds 2022 Staff costs 2023 Other Dopreclatlon 2023 2023 Charitable actlvltles Teaching costs Welfare costs Premises Costs Support costs Trip costs and other travel 9,183,930 93,390 1,030,870 1,834,161 576,170 1,441,180 1,951,434 1.201.105 819.566 559.94'1 44.018 229.662 209,195 9,969,295 1.534,550 4133,595 3,038.469 819.566 559,941 44,018 229,662 9,547,308 1,371,877 3,609,982 2,669,989 492,158 1,151,291 3.203 Gr&iits, aw<iids pri£E Governance costs Finance costs Movement in bad debt provision 19,329 100.850 50.000 so,000 10,552 12.142,351 6,873.056 1,363,689 20,379,096 18,377,812 Total 2022 11,530,592 5.545,202 1.302.018 18,377,812 Total expenditur8 on charitable activities was £20.379,096 12022.. £18.377,812) of this £6,245 (2022: £7,126) was restricted, £559,941 12022.. £555,767) was designated and £19,812,910 12022: £17,814.9191 was unrestricted. Page 32
THE ABBEY SCHOOL. READING (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 10. Expenditure on raising funds Unrestricted funds 2023 Total funds 2023 Totsl funds 2022 Portfolio management costs Non-ancillary costs Trading expenses 16,752 26.710 5,454 16,752 26.710 5.454 18.190 20,413 5,146 48,916 48,916 43,749 Total expenditure on raising funds was £48,91612022.. £43,749) of this £16,752 {2022.. £18,190} related to designated funds and £32,164 (2022= £25,559} related to unrestricted fvnds. 11. Auditors. romunoration Fees payable to the Company's auditor and its associates audit fees - other services 17,000 3.400 17,000 3,400 12. Staff Costs Group 2023 Group 2022 Company 2023 Company 2022 Wages and salaries Social security cosls Pension ntributionS Other non-payroll staff costs 9,915,920 953,927 1,107,979 164,525 9,502,567 919.769 1,021.859 86,397 9.915,920 953,927 1,107,979 164,525 9,502,567 919.769 1.021.859 86,397 12.142,351 11.530.592 12,142.351 11.530.592 Page 33
THE A88EY SCHOOL. READING IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 12. Staff costs {continugdl The average number of persons employed by the Company during the year was as follow5.. Group 2023 No. Group 2022 No. Teaching Welfare Premises Support 224 30 21 226 29 22 43 318 321 Aggregate employee costs of the key management personnel of the school, including salary, benefits, pension Contributions and r¢ational insurance in the year lotslled £397,74812022'. £408,006). The govemors received £Nil mUnaratIOn or other benefit for the year {2022: £Nill. The employerfs Ilability insurance of the Gharilable company Includes indèmnty insurance for the governors. The Split been part tlme and full time staff was as follows.. Full tlme 2023 Full time 2022 No. Part tlme 2023 No. Part tirne 2022 No. Teaching Welfare Premises Support 117 119 107 107 22 23 15 27 15 29 16 15 166 170 152 151 Page 34
THE ABBEY SCHOOL. READING IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 12. Slaff costs {continued} The number of employees whose employee benefits (exduding employer pension costs} ex¢eeded £60,000 was.. Group 2023 No. Group 2022 No. In the band £60.001- £70.000 In the band £70.001- £80.000 In the band £80.001- £90,000 In the band £90,001- £100,000 In the band £100,001- £110,000 In the band £150,000- £160,000 In the band £160.000- £170,000 10 The total employer contributions in the year towards pension scheme contributions for Ihe above 18 12022: 11 } staff members were £160.63212022: £78,766). During the year, severance pay was awarded to 10 employees with payments for compensation and pay in lieu of notice lotalling £82.614 (2022= 2 employees, £7.105). All of this had been paid by the reporting dale12022- Ai1}. 13. Taxation The charitsble wmpany is a registered charity, and as such is entitled to tsx exemptions on income and gains, properly applied for its charitable purposes. Page 35
THE ABBEY SCHOOL. READING IA Company Llmlted by Guarante61 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 14. Tangyble fixed assgts Group and Company Fraèhold property and Improvements Assèts Motor Furnrture under vèhiclgs and fittings constructlon Total Cost or valuatlon At 1 September 2022 Additions 28.356,457 66,473 23,338 4.552.769 428.490 336,682 33.269,246 6.596,485 7,091,448 At 31 August 2023 28,422,930 23,338 4.981,259 6,933,167 40,360,694 Depreclatlon Al 1 September 2022 Charge for the year 11,222,471 1,033,269 22.238 1,099 3.860,745 329,322 15,105,454 1.363,690 Al 31 August 2023 12,255,740 23,337 4.190.067 16,469.144 N¢t book value At 31 August 2023 16,167.190 791,192 6.933,167 23.891,550 At 31 August 2022 17,133,986 1,100 692,024 336,682 18,163,792 15. Flxed asset Investmen1$ Group 2023 Group 2022 Company 2023 Company 2022 Listod inva¥lments18ee bolowl Investments in subsidiary companles (see below) 1.570.829 1,634,839 1,670.829 1,634,839 1,570,829 1,634,839 1.570,831 1.634.841 Subsldlary undertaklng: The Abbey School owns 1000/0 of the ordinary share capital of Abbey Commercial Enterprises Limited (company number 06334617)- This company was incorporated England and Wales and was established to carry out the non-9ducational activities associated wllh the School. Trading results extracted from its audited financial statements are shown below.. Page 36
THE ABBEY SCHOOL, READING (A Company Llmited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 2023 2022 Tumover Administration expenses Management Charge from the Abbey School 145.237 {5,454} 119,000} 123.044 15,146) {19.0001 Net profit 120,783 98,898 Net assets 120.787 98.902 All activities have been consolidated on a line by line basis in the SOFA. Any taxable net profit is gifted tc) the charity- The tr)tsl expenses indude a management charge paid by Abbey Commercial Enterprises of £19,000 {2022.. £19,000), which is eliminated on consolidation. At the year end the balance outstanding was a debtor in The Abbey School of£19,00012022.' £19,000). Listed Investments 2023 2022 At 1 September Additions Disposals Unrealised {lossygain on revaluation for the year At 31 August 1,634,839 1,707,957 325.405 251.653 (320,529) 1208,7331 188.583) (129,6261 1.551,132 1.621.251 Cash held by investment manager Total at 31 August 19.699 1,570,831 13,588 1.634,839 Historical cost of investments 1.434,601 1,322,953 Page 37
THE ABBEY SCHOOL, READING {A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 16. Debtors Group 2023 Group 2022 Company 2023 Company 2022 Trade debtors Amounts due from own subsldiary Other debtors Prepayments 105,128 49,997 87.517 19,000 2,378 461,885 46,941 19,000 39,392 427,471 2.378 461,885 39.392 427,471 569.391 516.860 570.780 532.804 Amounts due from owned subsidiary are interest froe and repayable on demand. Pag8 38
THE ABBEY SCHOO¥ READING (A Company Limited by Guaranlee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 17. Creditors- Arnounts falling due within one year Group 2023 Group 2022 Company 2023 Cornpany 2022 Bank overdrdfts Bank loans Trade creditors Deposits held Other tsxalion and social security costs Advance fee seheme payments Other creditors Accruals 1,352,910 3.200.000 1.123.721 581,255 251,207 1,352,910 3.200.000 1,123,721 581.255 246.696 200,000 396.240 683.155 250,243 16,530 458,595 110,153 456,045 200,000 396,240 663,155 248,442 16.530 458.595 106,753 456.045 366,476 1.026.768 669,492 366,476 1,021,368 669.492 Fees received in advance 8,571,829 2,550,961 8.561.918 2.545.760 The bank overdrall wth HSBC. is secured by legal charges over freehold properties. Fees received in advance relates to fe8s for the next academic year which some parents pay in advance. Deposits held relate to acceptance deposits which are considered as owed within one yeor given that only one terms nolice is required lo be given by pupils. During the year the Sdiool undertook and completed on schedule for the start of the AutLEmn tem in September 2023 its development of a new Sixth Fomi Centre {8t 31 August 2023 'Assets under conslruclion, £6.9m as in note 14 above)- Finan for the project was provided by HSBC in the form of a loan facility of which £3m had been drawn down at the balance sheet date. Conlractor payments in excess of this sum were also made from the School's business account in accordance with its overdraft facility as refefred lo above. Some further £1.35m of contractor costs are included in creditors I£0.5m) and accruals {£0.85m). The development has therefore signifi¢anUy increased not only the School's fixed asset base but also, largely in step, its outstanding liabilities. At the balance sheet date the outstanding £3m loan was repayable withln 12 months but slnce then the loan has been converted to a multi-year loan of which less Ihatj £120,000 is repayable before 31 Au9USt 2024. (See also note 30, Post balan sheet ¢veiits.I Page 39
THE ABBEY SCHOOL, READING (A Company Limlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 18. Credltors: Amounts falllng dug aft9r more than one yoar Group 2023 Group 2022 Company 2023 Company 2022 Bank loans 1,432,800 1,555,438 1.432.800 1,555,438 The loan Is paYable a8 follows.. Within 2 to S year¥ Bank loans 800.000 800,000 800.000 800,000 More than 5 years Bank loans 632.800 755,438 632.800 755.438 Bank loans with HSBC are secured by a charge over the School's property. 19. Advanco foe 5Gh9rn9 Group and School Parents historically have deposiled a lurnp sum with the School as an advanc8 on future fo8s. This option is no longer available lo parents. Each arrangement is in respect of an agreed amount lo be ¢dited against future fee bills for an agreed number of terms. The unused balance of the advance is repayable on request. It is intended that the advance fees will be applied as follows 2023 2022 Wllhln 1 year 16,530 16,530 The figures for advanced fee payments are included withln the balance shegt for school fees paid in advance (notes 18 and 191- The balance r8pr88ents the accrued liability under these arrangements. Movements during the year are.. 2023 2022 Balance al 1 September 2022 Amounts utilised in the paymant of fees 16,530 116,5301 33.060 (16.5301 Balance at 31 August 2023 16.530 Page 40
THE ABBEY SCHOOL. READING IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 20. Flnanclal instruments Group 2023 Group 2022 Company 2023 Company 2022 Flnanclal assets Financial assets measured at fair value 1.570.831 1,634,839 1.570.831 1,634,841 Induded vAthin financi81 instruments held at fair value is investments. Page 41
THE ABBEY SCHOOL, READING IA Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 21. Stalgment of funds Statement of funds- Gurrgnt year Balancg at 1 Septgmber 2022 Balance at Galnsl 31 August (Losses) 2023 Transfers Inlout Income Expendlture Unrastrlctod funds Designated funds Designated - The Bursary Fund Designated donation 1,000,000 41.325 (576,6931 623.951 {88.5831 1,000,000 80,000 4,330 84,330 1,080.000 45,655 1576.693) 623,951 (88,583) 1.084.330 General funds General unrestricted 15,933,555 20.068,505 119,836,914) (625,3611 15,539,785 Total Unrestrlct9d funds 17.013.555 20,114,160 120.413,0071 {1,410) 188,5831 16,624,115 Rostricted funds Restricted Fund 44.206 10.660 {14,405) 1.410 41,871 Total of flind$ 17.057.761 20.124.820 {20.428.012) 188.S831 16.685.986 Income from The Bursary Fund is used to offer flnancial assistance to individual puplls when necessary. The Govemors have d8cided lo make an annual transfer from the unrestricted funds so that a balance of £1 million remains earmarked for use on bursaries within this fund. Restricted funds are those reiVed for sp9cific purposes including donations received for bltilding appeals. various leaching departments and fixed assets. Once tho restriction has been fUilled than a transfer from restrictod lo unrestricted fvnds is made. Page 42
THE ABBEY SCHOOL, READING (A Company Llmlted by Guaranto9) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 21. Statgment of fund$ (continued) Siatsment of funds - prior yoar Balance at 1 September 2021 Balance at 31 August 2022 Transfers inlout Gainsl (Losses) Income Expenditure Unrestrlcted funds Designated funds Designated - The Bursary Fund Designated donation 1.000,000 36.398 1573,632) 666,860 (129,6261 1.000.000 80,000 80.000 1,000,000 116.398 (573.632) 666,860 {129,6261 1.080.000 General funds General unrestricted 15.473,242 18.967.976 (17.840.803) {666,8601 15,933,555 Total Unrestricted funds 16,473,242 19.084.374 {18.414.435} (129.626) 17.013.555 Rgstricted funds Resthcted Fund 38,206 13,126 17,126) 44,206 Total of funds 16,511,448 19,097,500 (18,421.561 } 1129,626) 17,057,761 Page 43
THE ABBEY SCHOOL. READING {A Company Limited by Guarante8) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 22. Analysls of net a¥sets bgtW99n funds Analysis of net assets b8twegn funds - curront year Restrlcted Unrestrlctgd funds funds 2023 2023 Total funds 2023 Tangible fixed assets Fixed asset Investments cufnt assets Creditors due wolhln one year Creditors due in more than one year 23,891,550 23.891,550 1,570,829 1.570,829 1,166,365 1.208,238 18,571,829) 18.571.829) 11,432.800) 11,432,800) 41.871 Totsl 41,871 16.624.115 16.665,986 Analysis ol ngt assets between fund5 - prior ygar Re$lriGted Unrestricled funds funds 2022 2022 Total funds 2022 Tangible fixed assets Fixed asset investments Currenl assets Credilors due within one year Creditors due In more than one year 18,163,792 18,163,792 1,634,839 1,634,839 1,321.323 1,365,529 (2,550,961 } 12,550,961) 11,555,438} 11,555,438) 44,206 Total 44.206 17,013.555 17,057,761 Page 44
THE ABBEY SCHOOL. READING (A Company Limited by Guarant98) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 23. Recon¢iliation of Det movement in funds to net cash flow from operatlng actlvllles Group 2023 Group 2022 Net incomelexpenditure for the year las per Statement of Financial Activities) {391.775) 546,313 Adjustments for: Depreciation {Losses)Igains on investments Dividends and Inte$t Interest payable Ilncreasey decrease in debtors Increase in creditors IDecrease}lincrease of cash at investment manager 1.363.690 1,302,018 88.583 129.626 (41,325) (36,398) 36,745 56,043 {52,531} {141,521) 2,174,177 17,612 6,111 (24.365) Net cash provided by operating actlvltles 3,183.675 1.849.328 24. Analysis of Gash and cash equivalents Group 2023 Group 2022 Bank balances induded in cash at bank and in hand Bank overdraft 638,845 11,352,910) 848,669 Totsl cash and cash equtvalents {714.0651 848,669 25. Analysls of net debt At1 September 2022 Cash flows At31 August 2023 Cash balances 848,669 1209,8241 638,845 (1,352.910) (1,352,910} (200,000) (3,000,QQOI {3,200,000} {1,555,438) 122,638 11,432,800) Overdraft Bank loan5 due in under one year Bank loans due in more than one year (906,7691 {4,440.096) 15,346,865) Page 45
THE ABBEY SCHOOL. READING {A Company Llmited by Guarantog) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 26. Capltal commitments Company 2023 Company 2022 At 31 August 2023 the School had the followlng capltal ¢ommltrnents: Contracts for future capital expenditure not provided in the financial statements 300.000 27. Penslon Commitmgnts a) Teachers, Pension Scheme The school withdrew from the Teachers, Pension fTPS'I Scheme at 31 August 2020. b} Other schemes The Company makes contributions for teaching and non-leaching staff. £1.107,979 12022.. £1.021,859) was payable for the year. Contributions lotslling £143,61912022'. £143,945) were unpaid al the year end and are induded within creditors. 28. Operating lease commltmènts At 31 August 2023 the Group and the Company had commitments to make future mlnimum 19ase payments under non-cancellable operating leases as follows.. Company 2023 Company 2022 Due within one y8ar Due belween two and fivo years 8.798 35.153 8.798 8.798 43.951 Related party transa¢tlon$ Transactions wlth Govgrnors Owing to the nature of the school's operations and tho composition of its govemlng body being drawn from local public and private sector organisations. il is inevitable that transactions will take place with organisalions with which a Governor may have an interest. All transactlons Involving thesg organizations are in accordanee with the school's normal procedures. Mr M Emmanuel is a director at French Horn Hotel Limited. During th8 year, the School was invoiced £Nil (2022.. £666} by French Hom Hotel Llmhed for a function in the year. Page 46
THE ABBEY SCHOOU READING IA Company Lirnited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 30. Post balance shoet ovents After the year end the group negotiated with its bankers HSBC the conversion of a 12 month loan facility, under which at the balance sheet date il had borrowed £3m, into a temi loan. As referred to in Note 17 Creditors.. Amounts falling due within one year, above. only a rninor part of the £3m is now therefore repayable within one year, part is repayable within 2 to 5 years, and the majority is repayable in more than 5 years. Page 47