KINGSWOOD 8ATH Kingswood School ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS for the 13 months ended 31 August 2023 Ch3rlty Registration Number.. 309148 Kingswood School CONTENTS Foreword by the Headmaster of Kingswood School & Principal of Kingswood Foundation Governors. Key Management Personnel and Advisers Governors, Report 7-16 Independent Auditor's Report to the Governing Body of Klngswood School 17-19 Consolidated Statement ol Financial Activities 20 Consolidated and School Balance Sheets 21 Consolidated Statement of Cash Flows 22 Note5 to the Financial Statèments 23-44 Kingswood School FOREWORD Annual Report of The Trustees of Klngswood School Foreword by the Headmaster of Kingswood School & Principal of Kingswood Foundation We have travelled a happy ènd productivejourney as a King5wood community over the past year, once again bowled over bv the many remarkable achievetnents of our students. who continue to make the m05t of a Kingswood educatioN in all its breadth and balance. Education transforms lives when young people are inspired both to develop their existing talents and respond to our prompting to try something new, discovering other interests and passions along the way. It is also true that the aim of education is a5 much about attion as it is about knowledge. and it is heartwarming to See how generou51y pupi15 and staff are moved to action, sharing these talents in the service of others. This was the year when the inspectors came calling at the Senior School. In forming their judgements, the team of six hlghly experienced educators Spent m05t of their time with our pupils, talking in small groups, scrutinising their work, ob5ervinÈ lessons, eetting out and about to observe clubs and activities. I think they really got under the skin of the schoo5 as they evaluated the achievements and personal development ol our pupils. In the final report. Kingswood achieved a resounding overall excellent grading, and l am proud of the team effort of governors, staff and pupils which contributed to this outcome. The Prep School are busy preparing for their own inspection visit and, although it will be under a new framework without overall judgements, l am confident that the visiting in5pector5 will find a thriving school. You will have read in last year's annual report for 2022 that our pupils managed to buck the national trend and achieve the school's best ever A Level and GCSE result5. That certainly put a spring in everyone's step as we made a start to the Autumn term last September. Fast forward to the summer of 2023 and our pupi15 have continued to perform with distinction. That 84% of all A Level exams were graded A'IA or B is testament to the fine attitude our Year 13 leavers brought to their Studies and the outstanding teaching and learning that happens each and every day in the classroom. The onwards destination picture was equally impressive with the overwhelming majority of those seeking a place at university successful with their firth ¢holce destination. At GCSE, over 40% of all Erades were an 8 or a 9. Our Prep School pupils likewise achieved highly," from Reception to Year 6, 94% of our children scored average or above in En8llsh compared to 77% nationally. 98Yo ol our children scored average or above in Maths across the school compared to 77% nationally. This acèdemlc excellence Is one important part of our mission to produce well-rounded young people who have both the academic qualifications and the personal qualitie5 to lead Kingswood School FOREWORD When Sessons are over, the other half of school life springs into action. I have certainSy enjoyed witnessing our pupils. growth in self-confidence as they have performed in choirs, orchestras 3nd musical @n5embles, not to mention the excellent school productions this year.. Little Shop of Horrors. Lord of the Flie5 and The Witches. The art and design exhibitions this year were stunnin& and featured a wide range of highly creative and professional work. Puplls have successfully competed at local. regional. nationa5 and international levels in a range of 5POrts and artivities. Every term there have been sports teams who have enjoyed unbeaten 5ea50n5, in a very competitive South West fixture circuit. l am so grateful to our hugely dedicated and generous staff who have enabled Kingswood to field multlple reams across all year groups each week. Our supr3l, was constituted under the provisions of the Methodist Independent Education Trust Deed 1903 and subsequent schemes of 19 August 1953 and 5 June 1974 as amended by the scheme sealed 27 March 1997 and 24 August 2001. It 15 a registered charity, number 309148. On 24 August 2001, the Governors of the School becarne a body Corporate called Kingswood School Trustee Limited, company number 04253059. With effect frorn that date, the company called Kingswood School Trustee Limited became the sole Eoverning trustee of the eharity. In July 2019, the Articles of Association were amended (after agreement by the Methodist Conferencel to permit an increase in the number of governors from 18 to 24. Group framework Kingswood School has three sub5idiaiies, Kingswood Enterprises knmited Ico. Reg. No. 02545441, Kingswood International Limiled Ico. Reg. No. 105197131 and Feren5 P05nett Limited (Co. Reg. No. 113765071 as well a5 a subordinate charity. King5wood School Development Fund (Charity Reg. No. 3102291. Kingswood Enterprises Limited is involved in commercial lettings, propertv management and the rental of minibus services for the benefit of the School. Kingswood International Limited is involved in deliverSng educational consultancy and currlculum materials overseas. Feren5 Posnett Limited is a dormant company that is involved in providing financing Services for Sehool project5. The charily, Kingswood School Development Fund, is held In suspended animation,. iti main objects are to fundraise and apply the annual income of the charity for such charitable purposes as the Governors shall determine. Organisational structure and decision-making The School governors, a5 the body corporate of the Charity, have a legal re5pon5ibility for the overall management of the School and its strategic direction. Governors benefit from presentations by staff, charity, and education experts as well 35 meetings with staff, students and parents. As described earlier, governors execute their responsibility through the 4 main Committees of the Board. Each Committee and the main Board meet termly. All Comrnittee Ch3irs are members of the Liaison & Governance Corntrittee and all governors are invited to the annual Strategy planning day. There are also 5ever315taff-led sub-CQrnmittee5 of which governors are members. The Headmaster of Kingswood School and Principal of the Kingswood Foundation is responsible to the Chalr of Governors for the management of the Foundation. He achieves this with the support of the Senior Deputy Head. Director of Finance & Operations, Headmaster of Kinsswood Prep School and members of the Foundation Leadership Team IFLTI and additionally by the Senior Management Teams at KPS and the Senior School. Recrultment and tralnirtg of Governors The appointment of governors is confirmed at meetings of the main Board on the recommendation of the Lialson & Governance Committee. Governance audits take place annually to ensure that a broad range of skills exist across Board members. New Eovernors are selected to augment these skills and under80 an internal induction process, arranged by the Clerk to the Governors. Ongoing training is arranged through AGBIS and other bodies within the Independent Schoo15 Council. The Chair of Governors attends an annual meeting organised by the Methodist Independent Schools Trust IMISTI. An annual "Away Day" is organised for Governor5 to meet collectively off site to discuss Strategic plan5, 8overnènce and education topics. Kingswood School GOVERNORS, REPORT For the 13 month period ended 31 August 2023 The remuneration of the Headmaster and Principal of the Foundation is set by the Governors. Other key management personnel Bre remunÈrated with the objective of providin8 appropriate incentives to encourage enhanced performance and rewarding them fairly and responsibly for their individual contributions to the Foundation'5 Success. AGBIS benchmark data 15 Used to guide the remuneration of key mana8ernent personnel. Employment Policy and Equallty Act Bein£ a committed equal opportunities employer, the School takes every possible step to ensure that employees are treated equally and fairly. Thè principle of equal opportunities, as defined by the Equality Act 2010, informs our employment policie5 and practice. The School ensure5 that consultation with employees or their representatives ha5 continued at all levels Wlth the aim of taking the views of employees into account when declsions are made that are likely to affect their interests. Communication with ernployèès continues through normal management channels in a variety of forrn5, including the Intranet, INSET and other extraordinary notice5 as required. For the sixth year, the School reported its Gender Pay data amd published the results On Its website. The School re-ernphasised its strategic commitment to reduce and to eventually eliminate the current gap and we are proactively working towards thi5. Object, alms and objectives Charitable oblect As set out in the School's Articles of Association.. The advancement of education and learning for chlldren. Aims, oblectlves and intended impact King5wood School alms to challenge its students to realise their academic potenri31.. however, the School measures a child's worth by more than examination results. It seeks to establish the development of character, talent, re5pon5ibility and independence a5 the important foundation for adult life. It provides students with the opportunities to develop these qualities and. through a ¢omprehenslve pastoral structure, aims to give them the Support they need as they mature. Kingswood aims to Eive children a sense of joy in their own achievement and that of other5, balanced by a strong sense of humility, modesty and teamwork. It endeavours to foster a love of learning, the ability to reason and make considered judgments, the courage to question 3ssumptions. a commitment to community, a willingness to lead and to serve, and an appreciation and understanding of others. The beneficiaries include.. young people whose education is funded through fee income. donations, bursaries and scholarships,. the local community which benefits from appropriate access to the School's facilities; a number of charities based in the UK and worldwide for whom funds are raised at the School; the Éeneral public are the ultimate beneficiaries of the School's high-quality educational system and the soci31 values that it generates. Kingswood School GOVERNORS, REPORT For the 13 month period ended 31 August 2023 Achievements and Performance The highlights of the School year appear In the Principal's foreword to this report and the governors are pleased with the excellent progress made by the Foundation Leadership Team in accordance with the Annual Development Plan. Our track record of excellent publlc exèm results attests to the irnportance that we attach to the academic achievement of our pupils, but our King5wood mi55ion and identity meèns that this must be part of the well-rounded development of each individual through a focus on nurturing their talents and guiding them towards a personally developed life philosophy underpinned bv kindness and compassion. The Governors are delighted that Kingswood continue5 to produce significant success in boys, and girls, sports. drama, mu51C, Outdoor education (including Ten Tors. the Duke of Edinburgh award scheme) and the many other extra- curricular activities on offer. Kingswood 15 a boarding and day school which provides education to girls and boys aged from 9 months to 18 years. The Garden now comprises of 100 childien, with numbers in the Prep School at 327 and 859 in the Senior School during the year. Entry to the Senior School is predominantly in Year 7, with a smaller intake at Year 9 and into the Lower 6 Form. Approximately one quarter of senior students board and the majority of day pupils live within 45 minute5 of the School. We are the largest independent school in Bath, having steadily erown our market share in recent years. We know that a key rea50n parents choose Kingswood for their children is because of our very strong focus on the importance of pastoral care as the cornerstone that underpins our broad and balaneed educational offering. The Governors and the Senior Management Team continue to balance fee affordability with the provision of high-quality education set against a backdrop of developing and maintaining existing infrastructure. They rnake use of regular survey data to deepen the School's understanding of it5 parent base and it continues to receive benchmark information from organisations such as the 1SC, HMC. 158A and Baine5 Cutler. The airn is to attract children from a diversity of backgrounds and to prepare students with the tools, skills, and personal qualities they need to lead meaningful lives in the workplace. in their communities and in their relationships with others. Following the extensive investment rnade at the Prep School with modern. state-of-the-art facilities and a purpose-built nurserv, we recently installed an all-weather play area. made possible on account of the generosity of our parent body. We have invested in areas of the school estate to address essential building compliance and to further enhance social area5 for our students and 5t8ff. These projects have included works in Beaconfield, a boarding house that has been out of action due to compliance issues., installation of a new Sixth Form socia1 provision, called the Associate Café and an upgrade to staff facilities in the Posnett Staff Hub. We continue to upgrade and expand the facilities in our Dixon Sixth form ￿ntre with the creation of some additional study spaces for our growlnE sixth form cohort. We have worked over the year with a firm of architects to develop a site development plan to help us optimise the use of existing stock of buildings and to guide our future capital development priorities. Our 275 fundrHTsing campaign is now live with the aim of raising £2.75rn in our 275 year, to SUPPOrt transformational bursaries into the sixth form, the refurbishment of the Dixon Centre into a space that will allow for expanded numbers and be a better pre- university. preemployment preparation for our sixth formeis, and Kin@swood Cookery school for which plannin@ application has been received. As at the end of August 2023 we had raised around £1.6m towards this total and will be prioritising further refurbishment work in thè Dixon centre in the forthcoming year. Flnancial Review and Yearly Results A summary of the financial results for the 13-rnonth period is set out in the consolidated statement of financial activities in the Financial Statements. The net movement in fund5 showed an overall decrease of £672,98112022'. increase of £1,080,977) before an unrealised1055 on investments of £11,11312022.' £14.5961. Income. The total fee income for the 13 months, after scholarships, bursaries and other remissions comprised £21,053,60912022'. £19.982,9661. Scholarships, bursarie5, and remi55ions totalled £2,443,21412022: £2,148,256) of Kingswood School GOVERNORS, REPORT For the 13 month period ended 31 August 2023 which £6,37212022.' £3,643) was funded t>y external grants. School fees rose by 5%. Ancillary income was £1.882.542 12022: £1,473,2041, which included donation income of f 537,08912022.. £398,161). Expenditure. Total expenditure wa5 £23,609,13212022.. £20,379,137). of which 67% is represented by Foundation stsff Costs. Group assets. The school's total net as5et5 Of £12,887,83212022'. £13,571.9261 at year-end included £1.167.47412022: £1,168.9761 endowment funds, £2,740,062 12022.. £2,222,963) restricted funds and £8.980.29612022.. EIO,179,9871 unrestricted funds. The net book value of fixed assets totalled £22,591,23012022.. £21,731,534). Net current liabilitie5 totalled £2.385.70112022.. £1,631,035) and long-term liabilities £7,900.00012022: £6,952,449). Loans. The School entered into a new banking relationship in the year and now ha5 one variable loan Ipreviou51y had one fixed interest rate term loan and two variable loans) and a further unsecured Charity Commission-a8reed loan from Endowment Funds to fund the development of the School's facllities of which the first repayment was made in the year. The fixed and variable loans are secured on specified tangible a55ets of the School. Repayment 15 proceedin8 on schedule. The movements in fixed asseis durine the period are set out in note 11 to the financial statements. The School spent £2.011.916 on capital expenditure during the period12022'. £1.181.7261. As an educational charity, the School has a tax exemption on its educational activities and its investment income. Investment policy. The long-term objective of the investment policy has been to at least maintain the value of the endowrnent funds (less the substantial withdrawal in lune 20181 in real terms li.e. to match inflation as me3sured by the Retail Price Index, the inerease in salaries, and other relevant indicators) and to take all further gains as income. Investments are governed by the Trust Deed. The School at present invests funds through the Central Finance Board of the Methodist Church, which reports annually to the Methodist Independent Schools Trust that it has reviewed Its policies and is rnaking the best investment on behalf ol all Methodist Schools. The investrnent portfolio follows ethical principles of investment. The Investment performance in the period was down about 2.4%. Resèrves pollcy. The Foundation's reserve5 policy is to maintain sufficient unrestricted income reserves to enable it to meet its shorr-term financial obligation5 in the event OF an unexpected revenue shortf311. Like many schoo15, the School ends the year with a net current liabilities figure. At year end the School has access to an available overdraft facility of £lm. The governors are satisfied that the School has sufficient financing available to meet its working capital and investment requirements. The Financial Staternent5 show the assets and liabilitie5 3ttributable to the various funds by type and summarises the year's movement5 in each fund. In common with m05t schools, the Charity operate5 Wlth negative 'lree re5erves', but the Governors are satisfied that external finance would provide an additional 'safety net, if it should be required. The Governors are satisfied that the current level of reserves are in line with policy, but wish to empha515e that a contingency or reserve fund is somethiN8 being actively considered in the Forward Plèn. Strategit Risk Management The Board of Governors is responsible for putting in place Strategies to rnitl8ate Major risk5 to the Foundation. The Board formally reviews the Risk Register annually and governors are represented on the termly meetings of committees and take ownership of their relevant sections of the register. Each Committee identifies, assesses, and ¢onsiders mitlgation and control mechanisms. The significant risk5, as identified by the committee and endorsed by the Board, comprise.. Safeguarding. Ensuring that appropriate identification, control and reporting mechanisms are in place to ensure that children are kept safe. The reputational damage of a failure in safeguarding would severely impact the Foundation,. for this reason it is the highest placed risk. The schL>ol has a robusr DSL structure across both the Prep and Senior schools. Financial. Retaining pupil numbers (boarders and day student51 to ensure that a predictabl@ and Stable financial plan can be constructed. A significant drop in pupils would severely impact the financial health of the Foundation. In addition, potential threats to income and expenditure in the indepÈniJènt sector are modelled by the Strategic Planning io Kingswood School GOVERNORS, REPORT For the 13 month period ended 31 August 2023 Committee. Whilst nymber5 are lookin@ very positive,. on the political horizon, the financial sustainability of independent schoo15 remains in the balance, should there be a change of Governrnent to one which does not support the ethos of private education. However. we remain positive in both our current admi55ions forecast5 and with a new Director of Finance and Operation5 in p05t, we will be remaln focussed on financial efficiencies, regardless of what the political outcome may be. Estate. Understanding the condltlon and maintaining existing infrastructure whilst creating an emergency contingencv fund to cater for unexpected building failures aeross the estate remains a priorlty. The 2020 Condition Sutvey ha5 produced a rich Set of data for consideration at the Finance & E5tate5 and at the main Board Committee 3nd continues to be used to inform current spend. Compliance issues remain a challen8in8 area, especially concernin8 a5be5tO5, legionella and Radon ga5. The Risk Management Committee regularly receive reports and take action where necessary. Reputational. Thè continued success of the School is dependent on continuin8 to attract applicants in sufficient numbers by maintaining the hi8he5t educational and pastoral standards. To mitigate this risk. the Foundation ensure5 pupils, success. achievements and welfare are closely monltored and reviewed. This has been exceptionally difficult during the pandemic and innovative means have been sought to mitigate ri5k5 to th@ School's reputation. The Black Lives Matter and Everyone's Invited movement5 have focussed attention on the School'5 Diversity and Inclusion policy,. this ha5 led to the appointment of a new post, the Foundation Diverslty and InclLSsion Champion. The Governors are of the opinion that appropriate rneasures have been put In place to mitiEate significant risks. Sub-committees, strategic planning, bLJdgeting, levels of authorisation, WTitten policies and audlts contribute to addresslng risk factors,. however. It is recognised that an absolute assurance cannot be provided. Future Plans The Board continues to map out the strategic directior? for the Foundation as laid out in the Foundation Strategic Plan 2022-2027. The Annual Development Plan 2022123 details the actions that were our agreed focus for the year. and against which our progress has been very good. Our plan Is centred around four strategic priorities.. Care for Each Individual. Educate for Life, Serve the Community and Live Sustainably. With our pupils at the heart of everythin8we do. these core priorities areourfocus as we pursue the goal of excellence in all aTeas of school life as one Kingswood Foundation. The plan is dynamic and subject to ongoing review and updating in the light of changing circumstances both within the school and in external factors which impact on the school. The political headwinds facing the independent schools, sector are a source of concern and we are engaged in a range of scenario planning about how we might mitigate the consequences of possible changes to the current tax arrangement5 of educational charities. It 15 important to continue to build on the academic and co-curricular success of the School. whilst seeking to broaden recruitrnent Isometimes with fee assistance) from a wlde-range of family backgrounds. The Foundation is enriched by overseas student5 and thls, together with a vibrant Sixth ForFll, is another major area of development. The Foundation must maintain the very healthv numbers of student5 in the Prep and Senior School, with targets set for our integrated marketing and admission5 team. The Board has emphasised the importance of reaching Out to its alumni, parent body and other parties to pursue common goals of friendship. mutual cooperation and the development of various projects. To this end, the Kingswood Community network has been established. Board members frequently attend seminar5 on a wide range of independent school topics as organised by AGBIS, IS8A and other bodies of ISC. The Chairman. Principal. Director of Finance and Operations and other key management personnel attend 8 Fange of events hosted by the Methodist Schoo15 Independent Trust IMISTI. The Board also embraces, celebrates and wishes to deepen the understanding of the School's 275 year heritage of Methodist education. More specifically, the Board is committed to a number of future plans.. li Kingswood School GOVERNORS, REPORT For the 13 month period ended 31 August 2023 To maintain a healthy number of students, c¢rca 1300, acrtsss the Foundation, enabling them (alongside all rnembers of staffl to thrive and to fulfil their potential. To continue to refine the academic offering through the delivery of regular education reviews. To consolidate our strong position now that the number of prirnary Iprepl and nursery chlldren has reached full complement. To malntaln the achievement of a modest annual recurring financial surplus and cash reserve in order to support continued investment in fee-assistance (particularly transformational bursaries) and facilities. To develop and review the Foundation Strategic Plan and the linked 5 year business plan. To model the financlal Impact of less favourable political. economic and charity strategies. Where appropriate, to develop partnership5 oversea5. To develop and deliver the Estates Master Plan. specially to address key compliance i55ues, along with remodelling teaching and learnin81boardin8150ciHI space5 to allow for turrent and future capacity. Public Benefit and Community Engagement The Board reco8nises fully its obligations under5ection 17 of the Charitie5 Act 2011 to operate a considerable benefit to the public. The Board has made significant provision to broaden the access to a Kingswood education. Fee Asslstance- broadening access to education An extensive bursary and scholarship programme enables students from a wide range of backgrounds wiihln our local community to benefit from the opportunities which a Kingswood education provides. The Foundation support5 431 pupils with financial assistance in the form of bursaries, scholarship5, MODIFCDO and staff discount schemes. The award of financial a5515tance is mèans-tested on an annual basis, ranginE from 5Yo to +lOO% (which include Support for travel to school, educational trips and uniforml. The third year of a partnership with Quadstar saw a total of three students supported on a transformational boardin8 bursarv, funding academic and boardln£ fees and additional support for academic enrichment and equipment. To widen access yet further. the School highlights potenti3150urces of external funding where approprlate and partners with Springboard to identify those Students who may benefit greatly from a Kingswood experience, with iwo current Springboard students. Where there is a sudden change in family circumstances, the School will consider financial assistance to allow a pupil to reach the next natural break in their education. In addition, the school is currently supporting two children whose education has been interrupted by conflict in Ukralne and Afghanistan. and has partnered with charitie5 in each country to identify these children. The School believe5 that nurturing talent is important and therefore a number of 8cadeFllic, sPOrtin& musical and dramatic scholarships are awarded. These range from IO% to 15%, with 2(K) children from a broad range of backgrounds benefitting. We also provide tan8ible sUPPOrt to the Armed Forces by offering fee concessions Of up to 20% of the basic boarding fee5 to member5 of Her Majesty'5 Armed Forces,. thi5 15 currently utili5ed by 58 boèrder5. As part of the 275, Anniversary Celebrations. the 275 Campaign is raising funds for further Transformational bursaries, either through single donations c>r through the expansion of the Ten for One scheme (whereby ten donors partner to support a studentl. 12 Kingswood School GOVERNORS, REPORT For the 13 month period ended 31 August 2023 Partnerlng wlth the malntained se¢tor The Board stron8ly believe5 that the School must continue to forge links with local maintained schoo15. To meet thi5 airn, the Headmaster has appointed a member of staff with the specific re5pon5ibility for eornmunity outreach. The activities that the School now undertakes builds on the sound foundation established over the last decade. The staff provide specialist classes and coaching in science, technology, and mathematlcs for local schools. They aSso serve on specialist academic and technical bodies, speak at conferences, design frameworks for development programme5 for teachers and Serve as teacher mentors. The School hosts external training providers and offers places to colleagues from partner schoo15 at subsidised rates or free of charge. The School has developed some long-established partnership projects as well as always seeking new opportunities to work with schools in the rnaintained sector. particularly locally. Examples of such activity include.. Promoting peer-mentoring acros5 the city of Bath by working with Mentoring Plus to train Year 12 5tudent5 at King5wood to become peer mentors. 25 students were trained at the School's expense and worked with Year 516 pupils in three local primary schools. St Andrew's, St Stephen's and Abbot Alphege. Payin8 for 8 Year 12 students from Oldfield School to receive training from Mentoring Plus to become mentors within their own setting. Invitln8 Students from local secondary Schools to attend events designed to support applications to read Medicine and Dent15try. Inviting student5 from local secondary schools to attend events to support appllcations to Oxford and Cambridge unlversities. Kingswood staff gave mock university interview5 to 7 students from local schools. Welcomin8 over 90 pupils from two maintained schools to two author talks free of charge. Kingswood also provided 50% of the transport to one of the events. Offering heavily discounted places on Youth Mental Health FirstAld Course to 3 colleagues from local maintained school5. Offering a local maintained school, Oldfield, a free subscription to'Teen Tips,. Hosting The Safe Cup'_ a football tournament for Year5 7-9 8irls in conjunrtion with Avon and Somerset Polite to raise awareness of gender inequality and hate crime. A number of local maintained schoo15 P3rticipèted. Sharlng of Sthool facllltles One of the highlights of the academic year is the hosting of the Model United Nations Conference. Schools nation-wide, independent and maintained, are welcomed to Kingswood for a series of lively and topical debate5. This year. the 33rd, invtslved over 300 5tudent5 from 25 schools representing 66 UN member states gathered for 2 days of debate on is5ue5 facing the global communitv. The School host5 sessions for 6 form pupils from local state schools who are planning to apply for Medicine. They take part in in interview practice and have the opportunity to rneet medical professionals who share their knowledge and expertise with the Students. 13 Kingswood School GOVERNORS, REPORT For the 13 month period ended 31 August 2023 We also host 3 number of music events and workshops that the publi¢ can attend and to whieh local schools are Invited. The School sponsors part of the Bath Literary Festival, welcoming authors to the School. as well as the annual Bath Music Festlval, with a live performance held for the public in central Bath. The Preparatory School 15 a spon50r of the Wild Westonbirt Festival at Westonbirt Arboretum. The School is extremely proud to open its door5 on Christmas Day to over 300 members of the public who live alone who are served a festive lunch by a local charlty. This is now the 15, year of our'open Chri5tma5'. The Board also wish to extend the use of the School'5 5port5 and retreation facilities across the local community providin8 either free or 5ub5ided hire. Extensive use is mède of the School's facilitie5 throughout the year by lo¢al groups and or8ani5ations, coordinated through the widespread activities of the Commercial Manager. Examples in recent years include.. Larkhall Youth Football club usin8 the Upper playing fields, both Astroturf and the sports hall once a week. Abbot Alphege ènd Weston All Saints Primary make extensive use of the swimming pool. Bath Breast Cancer Group use the Swimming pool on a minirnal donation for each 5es5ion once a week. Various other Bath sporting club5 use our sports facilities for regular or one-off training. tournament5 and events. Allowing the public in north Lansdown to r3rnble 3cr05S the Upper during Lockdown for exercise. Julian House uses the pavilion as one of their checkpoints Iwi¢e a year for their charity walks where we a1s0 provide complimentary tea and coffee for the walkers. Open Christmas use the Dining Hall each year on Christmas Day to provide a Christmas lunch to those le55 fortunate. Bath Canoe club use the pool once a week at no charge. in exchange for the school having use of their canoes. Hayesfield Girls School have used our swimming pool for training sessions Sovereign Tourism Eiven redU￿d charity rate for use of the theatre in Aprll 2023 Spotters hockey camps had free use of the pavilion whilst running training camps èt the upper Astrts. Furthèr examples of public benefit can be found at www.kin wood.bath.sch.uk about-us communit ernent. Fundralslng and oiher forms of charitable suppoit Charity fundraising is an integral part of the Culture and life of the School, either through the efforts of individual students or as part of the School'5 overall charity initiatives. At a more general level. staff and students regularly ralse funds through variou5 personal and group initiatives in aid ol a range of local, national, and international charitie5. We believe that thi5 focus on charity and community work not only benefits others but also develops a sense of social responsibility among the pupils which brings 5ong-term benefits. In keeping with our commitment to a holistic education and our outward-looking approach. we seèk to engage in a wide range ol activities within our local community which we hope will be of significant benefit to all those involved. We estimate that in excess of £30,000 is raised by the Foundation in support of charities in a normal year. In the past 13 months, notable charitable projects include: The Malawi Charitie5 project is a long-established fundraising initiative. In addition to longstanding relationships with two Schoc>ls and a health clinic, we have extended our partnership to Eagles Charity Ipromoted by the Methodist charity All We Can) and MBora a digital community project founded by an Old Kingswoodiarn. This year Kingswood has continued to support these charitie5 in Malawi, through initiatives such as the'malawi Market,; Year 10 and 11 Balls,. A Year9 Charity games niBht,' an external 8rid8e Day,. and the Malawi Jumble sale. Julian House and Genesis Trust are two prominent local charitie5 where the School raises significant funds through sponsored activities and other events. We also advertise their work and events in our School newsletter. Kingswood has had regular collections for the Bath Foodbank in recent years and the School continued to support this throughout 2022-3. The School published links to alternative ways of donating, lists of items which are currently in short supply, and reminders to corisider the Foodbank when parents and pupils were doing their shopping. This year there was a special Easter Egg appeal which wa5 well responded to. Chlldren's books have also been collected during the Autumn half terrn for fatnilies using the Food Bank 14 Kingswood School GOVERNORS, REPORT For the 13 month period ended 31 August 2023 Disaster Emergency Committee- through Mufti Days, an austerity lunch and Service collections, we raised money for the Disaster Emergency Committee appeals for Turkey. Syria and the Ukraine. Tutor groups and Houses fundraised for the following local, national and international organi5ation5 during the year.. Life Project, Bath; STEP UK., ALK P051tive,' Movetllber Men's Mental Health,. Rainbow Migration; the Environmental Justice Foundation,. Restart Africa., Save the Children,. Young Lives v Cancer,. Cancer Research UK,. African Promise.. Mind,. Generator5 for Ukraine.. Greenpeace,. Alzheimer's Society,. FIGO,. Rainbow Laces.. a house project in Mexico,. the Britlsh Red Cross,. Masiphumelele Rugby Club,. Bath Theatre's Wonderegg charlty,. Aerion for Children- Crlsis., MND; Bath cats and dogs home.. the Royal British Legion Poppy Appeal Students also supported charities by rneans other than fundraising.. Students wrote Chri5tm35 Cards for a BANES Bath projecr for those who wouldn't otherwise receive them. Care packages were put together for the Homeless Tutor groups took turn to host afternoon teas for local residents living alone Year 9 had a Food Poverty Awareness Day as part of the Methodist Global Student ChallenÈe led by Garrod Musto. It should be noted that the School only fundraises from known supportÈrs and does not appeal to the general public. Staff involved with fundraising follow best practice guidance and do not engage with third party fundraisers. No complalnts were received in the year relating to fundraising. Statement of Governors, Responsibilities The Governors are responsible for preparing the Governors, Annual Report and the financial statements in accordance with applieable law and United Kingdom Accounting Standard5 (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the Governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the School and group Bnd of the incoming resources and application of resources of the School and group for that period. In preparing these financial statements, the Governors are required to.. select suitable a¢countinÉ pollcies and then apply them consistentlv.. observe the methods and principles in the Charities SORP,. make judgments and estimates that are reasonable and prudent- state whether applicable accounting standards have been followed. subject to any material departures disclosed and explained in the financial statem&nt5,' and prepare the financial statements on the going concern basis vnles5 It is inappropriate to presume that the School will continue in bu5ine5S. The Governors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial p051tion of the School and group and enable them to ensure that the financial statements comply with the Charitie5 Act 2011. They are also responsible for 5afeguardin8 the a55ets of the Schotsl and group and herice for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Governors are re5pon5ible for the maintenance and integrity of the School and financial inforrnation included on the School's website. LeEislation in the United Kingdom governin8 the preparation and di55emination of financial statements may differ from legislation in other jurisdictions. 15 Kingswood School GOVERNORS, REPORT For the 13 month period ended 31 August 2023 Approved by the Board of Governors on ............................................................................. and 518ned on it5 behalf by.. Mr T Lindsay Chair of Governor5, on behalf of Kin85wood School Trustee Limited 16 Kingswood School INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF KINGSWOOD SCHOOL For the 13 month period ended 31 August 2023 Opinion We have audited the fin3ntial statements of Kingswood School for the 13 months ended 31 August 2023 whlch comprise the Consolidated Statement of Financial Activities, the Consolidated and School Balance Sheets, the Consolidated Statement of Cash Flow5 and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that ha5 been applied in their preparation is applicable law and United Kingdom Accounting Standard5, including Financia1 Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdorn Generally Aetèpted Accounting Practicel- In our opinion, the financial statements.. give a true and fair view of the state of the group's and of the parent charity's affairs as at 31 Au8USt 2023 and of the group's net movement in funds for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.. and have been prepared in accordance with the requirernents of the Charitie5 Act 2011. Basis for oplnlon We have been appointed as auditor undersection 144 of the Charities Act 2011 and report In accordance with the Act and relevant regulations made or havin8 effect theieunder. We conducted our audit in accordance with International Stalldards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statewent5 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 ev1dert￿ we have obtained is sufficient and appropriate to provide a basis lor our opinion. Concluslons relating to going concern In auditing the financial 5tatement5, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements 15 appropriate. Based on the WOTk we have performed, we have not identified any material uncertainties relating to events or conditions that. individually or collertively, may cast significant doubt on the group's ability to continue a5 a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responslbilitles and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other informatlon The trustees are responsible for the other information. The other information comprises the information included in the Governors, Report and Headmaster's Report. Our opinion on the financial statements does nor cover the other information and, except to the extent otherwise explicitly stated in our report, we do not expre55 any forrn of assurancÈ conclusion thereon. In connection with our audit of the financial statements, our responsibility 15 to read the other information and, in doing 50, consider whether the other informatlon is materially inconsistent with the financial statements or our knowSedge 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If. based on the work we have performed, we conclude that there 15 a material misstatement of this other information. we are required to report that fact. We have nothin8 to report in thi5 regard. Matters on which we are required to report by exception We have nothing to report in respect of the followin8 matters in relation to which the Charitie5 (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion= adequate accounting records have not been kept by the parent charity,. or sufficient accounting records have not been kept.. or the parent charity f1nancial statements are not in agreement with the accounting record5 and return5; or wè have not received all the information and explanations we require for our audit. 17 Kingswood School INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF KINGSWOOD SCHOOL For the 13 month period ended 31 August 2023 Responsibilltles of trustees for the financial staternents As explained more fully in the trustees, responsibilities Statement set out on page 16 the trustees are responsible for the preparation of the financial Statements and for being satisfied that they give a true and fair view. and for such internal control as the tru5tee5 determine is necessary to enable the preparation of financial statement5 that are free from material misstaternent, whether due to fiaud or error. In preparlne the financial statements, the trustees are responsible for 355e55ing thè group's and the parent charitys ability to continue a5 a going concern, disc105in& a5 applicable, matters related to going concern and using the going concern ba51$ Of accounting unle55 the trustees either intend to liquidate the group or the parent charity or to cease operations, or have no realistic alternative but to do 50. Auditor'5 responsibilitles 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 rnaterial misstatement. whether due to fraud or error. and to issue an auditor'5 report that includes our opinion. Reasonable 3ssurance is a high level of assurance. but is not a guarantee that an audlt conducted in accordance with ISAS IUKI will alway5 detect a material misstatement when it exists. Misstatement5 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 user5 taken on the basis of these financial statements. Irregularities. inclvdiN8 fraud. are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities. outlined above, to detect material misstatements in re5pert of irregu13ritie%, includin8 fraud. The extent to which our procedures are capable of detectin8 irregularitiès, Including fraud is detailed below: Based on our under5tandin8 of the group and the environment in which it operates, we Identified that the principal rlsks of non- ompliance with laws and re8ulation5 related to the independent school regulations, safeguarding regulations. health and safety requirements, GDPR, employment law and charity law and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and the Charities 50RP and consider other fattors such as payroll tax. We evaluated management's incentives and opportunitles for fraudulent manipulation of the financial statements (including the risk of override of contro151, and determined that the principal risks were related to the improper recognition of revenue and management bias in accounting e5timate5. Audit procedures performed by the engagement tearn included-. InspÈcting correspondence with regulators and tax authorities,. Discussion5 Wlth management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud., Evaluating management's controls de51gned to prevent and detect irregularities; IdentifyinB and testing journa15, in particular journal entries posted at the year end,. and Challenging assumptions and judgements made by management in their eritical accountlng estimates. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularitie5, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more thatcompliance with a law or regulation is removed from the events and tran5action5 reflected in the financia1 staternents. as we will be le55 likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further descriptlon of our responsibilities for the audlt of the financial Statements is located on ttie Financial Reporting Council's website at.. www.Irc.OTg.uk/auditorsresponsibilities. Thi5 description forms part of our auditor's report. Use of oui report This report is made solely to the charity'5 trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charlty's trustee5 those matters we are required to State to them in an Auditor'5 report and for no other purpose. To the fullest extent 18 Kingswood School INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF KINGSWOOD SCHOOL For the 13 month period ended 31 August 2023 permitted by law. we do not accept 01 assume responsibility to anyone other than ihe ¢hariWs trustees as a body for our audit work, for thi5 report, or for the opinions we have formed. Haysmacintyre LLP Statutory Auditors 10 Queen Street Place London EC4R IAG Date.. 18 January 2024 Haysmatintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 19 Kingswood School CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES For the 13 month period ended 31 August 2023 Unrestricted Restricted funds fund5 Period ended 31 Period ended 31 Period ended 31 Period ended 31 August 2023 August 2023 August 2023 August 2023 Endowed funds Total funds Total funds Note 2022 Income and endowments from: Charitable activities.. School fees Ancillary t¥adinE incorne 21,059,981 851,640 16,3721 21,053,609 19,982,966 851.640 813.992 21,911,621 16,3721 21.905,249 20,796,958 Other trading activities.. Fundiai5ing tr3din8 Other trading income Investment income Donation5 and grants Other Income 182,483 309,618 1,712 1,386 182,483 309,618 1,712 537.089 221,009 39,866 176 398,161 3,944 535,703 io Total Income 22.406.820 529,331 22,936,151 21.460.114 Expendlture: Raisin8 funds.. Fundraising trading Financing costs 515,094 575,285 515,094 575,285 239,038 306,780 1,090,379 1.090,379 545,818 Charitable activities.. Education and 8rant making 22,517,153 1,600 22,518,753 19,833,319 Total expendlture 23,607,532 1,6 23,609,132 20,379.137 Net lexpenditurel l income bèfore Investment galnslllosse51 11,200,712) 527,731 1672,9811 1,080,977 Gains / (Losses) on investments 12 1,021 110.6321 11.5021 111.1131 114,5961 Net lexpenditurel l income 11,199,691) 517,099 11,5021 1684,0941 1,066,381 Net movement In funds 11,199,691) 517,099 11,5021 1684.0941 1,066,381 Fund balances brought forward 24 10,179,987 2,222,963 1.168,976 13,571,926 12,505,545 Fund balances tarried forward 8,980,296 2.740.062 1.167.474 12.887.832 13,571,926 Note 24 comprises the consolidated SOFA for 2022. 20 Kingswood School CON50LIDATED AND SCHOOL BALANCE SHEETS as at 31 August 2023 Consolidatèd Asat31 Asat31 Asat31 August 2023 July 2022 August 2023 School A%3t31 July 2022 Notes Flxed assèts Intangible assets Tangible assets Investment assets Ilb 85,879 17,404 85.879 17,404 Ila 22.591,230 21,731,534 22,558.659 21.712.578 12 496,424 406.472 498.424 408,472 23.173.533 22,155,410 23,142,962 22,138.454 Current assets Stock Debtors Cash at bank and in hand 1,582 5,846,050 1,807,393 2,253 511,139 882,517 13 5,977.146 1,765,643 617,160 817,821 7,655,025 1,395,909 7.742,789 1,434,981 Credltors.. amounts falllng due within one year 14 110,040,726) 13.026,9441110,092,8591 13,051,971) 12.385.701) 11,631,035) 12,350.0701 11.616,9901 Total assets less current liabilities 20,787.832 20,524,375 20,792,892 20.521.464 Creditors.. amounts falling due after more than one year.. Bank loan 15 17,9LKI,0001 16.952,4491 17,900,CQOI 16.952.449) Net assets 12,887,832 13,571,926 12,892,892 13,569,015 Flnanced by.. Endowed funds Restricted fund5 Unrestricted funds 18a 1,167,474 1,168.976 18b 2.740,062 2,222,963 18c 8,980,296 10,179,987 1,167,474 1,168,976 2,740,062 2.222.963 8.985,356 10.177.076 Total funds 17 12.887.832 13.571,926 12,892,892 13.569.015 The notes on pa8e$ 23 to 44 form an integral part of these Financial Statements. Approved and authorised by the Governing Body on and signed on its behalf by.. Mr T Lindsav f Governors, on behalf of King5wood School Trustee Limited 21 Kingswood School CONSOLIDATED STATEMENT OF CASH FLOWS for the 13 month period ended 31 August 2023 Period ended 31 August 2023 2022 Notes Cash flow from opeTatln8 activlties: Cash generated by operations Interest paid 23 3,344,254 575 284 2,501,871 306 780 Net cash from operatlng actSvltles 2,768.970 1195,091 Cash flows from Investlng actlvltles: Dividends. interest and rents from investments Purthase of intangible a55et5 Purchase of tangible assets Investment gains/losses 150 1121,9251 12,011,916) 111,1131 46 126,1051 11.181,7261 114,5961 Net cash used by investing actlv5tles 12,144,804) 11,222,3811 Cash flow5 from financing activities: Repayments of loan5 Repayment of endowment loan Cash inflows from new loans 17.499.790) 199,5001 7 900 000 1362.6731 Net cash used by financlng activltles 300,710 1362.6731 Movement in cash 924,876 610,037 Cash and cash equivalents at the beginnlng of the reportlng perlod 882,517 272,480 Cash and cash equlvalents at the end of the reporting period 1,807,393 882,517 Analysls of cash and cash equlvalent5: Cash at bank and in hand 1,807,393 882,517 Charity law require5 Separate administration of the cash flows of endowed and other restricted funds of the School. This constraint does not adversely affect group cash flows as stated above. The note5 on pa8e5 23 to 44 form part of these Financial Statements. 22 Kingswood School NOTES TO THE FINANCIAL STATEMENTS for the 13 month period ended 31 August 2023 ACCOUNTING POLICIES Charlty information Killg5WQ()d School is a registered charity in England and Wales. The registered offi¢e is Kingswood School, Lansdown Road, Bath, BAI 5RG. Kingswood School meets the definition of a public benefit entity under section 34 of FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value, unless otherwise stated in the relevant accounting policy. The principal objectives of the charity are detailed in the Governors, report found on page 7 of these financial statements. The fillancial statements are prepared in sterling, which 15 the function31 currency of the ch8rity. Monetary amounts in these financial Statements are rounded to the nearest £. Basis of préparatlon 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 IFRS 1021 (effective l October 20191 Icharities SORP IFRS 10211 and the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. The accountin8 policie5 disclosed have been applied con515tently throughout the current and preceding year. The financi31 statements have been prepared to give a'true and fair, view and h3ve departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view,. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 issued on 16 July 2014 rather than the Accounting and Reporting by Charities.. Statement of Recornmended Practice effective frorn l April 2005 which has 5irice been withdrawn. Reduced disc105ures FRS 102 allows qualifying entities ￿rtain disclosure exemptions. The school has only taken advantage of the exemption% for the following disclosure requirements.. Section 1.12lbl "Statement of Cash Flows" notes and disclosyre5. Presentation of an entity only Statement of Cash Flow and related Going concern At the balance sheet date the group had net current liabilities of £2,385,70112022 net current liabilities £1,631,035) ènd therefore the Governor5 have considered whether it is appropriate to prepare financial statements on the 8oin8 concern basi5. These financial statements have been prepared on a going concern basis, which the Governors consider to be appropriate b3sed on the results for the 13 months ending 31 Au8USt 2023 and cash flow projection5 prepared for the period 31 August 2024 and beyond. The cash flow projections indicate that the Group will be able to meet Tts liabilitie5 a5 theyfall due and togetherwith current arran8ement5 Wlth the School's bankers indicate that the School will be able to operate within the facilities currentlv available. Furthermore, the School's bankers are satisfied that the School will meet its bank covenants going [on￿ard based on current forecasts. The Trustee5 have no rea50n to believe that the current overdraft facility will not be continued. This facility was agreed wlth the School's bank which is aware that the termly fee income re¢eipts lead to significant fluctuations in cash requirements and the flexibility of the overdraft represents cost effective borrowing. The Trustees have identified no material uncÈrt8inties and for these reasons they have coneluded that it 15 appropriate to use the going concern basis in the preparation of these account5. 23 Kingswood School NOTES TO THE FINANCIAL STATEMENTS for the 13 month period ended 31 August 2023 Basis ol consolldation The con501idated statement of financial a¢tivitles. balance sheet and statement of cash flows include the financial statements of Kingswood School, its subsidiaries, King5wood Enterprises Limited (Co. Reg. No. 02545441 and Kingswood International Limited Ico. Reg. No. 105197131 as well as its Subordinate charity, Kingswood School Development Fund (Charity Reg No. 3102291 made up to 31 August 2023. Kingswood Enterprises Limited is involved in commercial lettings, property management and the rental of minibus services for the benefit ol the School. Kingswood International Limited is involved in promoting the Kin85wood School way of education to overseas partners and developin8 education opportunities to overseas markets. Kin85wood School Development Fund's main objects are to fundraise and apply the annual income of the charity for such charitable purposes as thè Governors shall determine. The results of the subsidiaries are consolidated on a line-by-line basls, with all inter group sales and profit eliminated fully on ¢onsolidatlon. Fees and similar Income Fees receivable, charges for services and use of premises are accounted for in the period in which the servlce is provided. Fees receivable arestated after deducting allowances. scholarships and other remissions granted by the School, but include contributions received from restricted funds for scholarships. bursaries and other grants. Fees received for education to be provided in future years are carried forward a5 deferred income in the balance sheet. Donations and legaties Donations receivable for the general purposes of the School are credited to 'other unrestricted funds" to distinguish them from direct School income. Donations for purposes restricted by the wishes of the donor are taken to 're5tricted funds" where these wishes are legally binding on thè Governors. Donations required to be retained a5 Capltal in accordance with the donor's wishes are accounted for a5 endowments permanent or expendable according to the nature of the restriction. Legacie5 are recognised where there is entitlement, receipt is probable and the amount can be measured with Expenditure Expenditure is accounted for on an accruals ba515. The allocation of expenditure between direct charitable and costs of raising funds 15 a subjective split based upon the Bursar's best estimate of the resource5 input to these different parts of the School's operation5 Ill the year. The irrecoverable element of VAT is included with the item of expense to which it relates. Governan￿ cost5 comprise the costs of running the charity, including Strategic planning for it5 future development, also external audit, any legal advicefor the Governors and all cost5 of complyin8Wlth constitutional and statutory requirements, such as the costs of Board and Committee meetings and of preparing statutory Financial Statements and satisfying public accountability. Employeè Benefits The School contributes to the Teachers, Pension Defined Bènefits Scheme at rates set by the Scheme Actuary and advised to the Board by the Scheme Admini5tr8tor. The scheme is a multi-employer pension scheme and it 15 not possible to identify the assets and liabilities of the Scheme which are attributable to the School. In accordance with FRS 102 section 28 therefore, the scheme Is accounted for as a defined contrlbution scheme. The School also contributes to individual personal pension schemes for non-teaching staff. at 5% of annual basic pay, which Is treated as a defined contribution scheme. The costs of contributions to these funds are charged to the revenue account In the accounting period for which they are payable. Termination benefits are recognised immediately as an expense when the School is demonstrably committed to terminate the employment of an employee or to provide termination benefit5. Fixed a55et5 Expenditure on fixed assets is capitalised except for expenditure incurred on the replacement of assets of low value with a short life. Repair, renovation and replacement expenditure is written off as expenditure in the st3tÈment of financial activities. Normally items costing le55 than £1,000 are written off as an expense as acquired. 24 Kingswood School NOTES TO THE FINANCIAL STATEMENTS for the 13 month period ended 31 August 2023 The School's land and buildings are owned by The Methodist Independent Schoo15 Trust, but are included in these Financial Statements as substantially all of the risks and rewards of ownership are with the School. Land is not depreciated. Buildings are depreciated at rates calculated to write off the c05t le5S their estimated useful residual values on a straight line basis over the expected useful economic life of each building. The range of annual rates used for this purpose is between 20 and 50 years. Depreciation Is provided against all other assets, on a straight line basis at rates calculated to write them off over their useful life using the following rates.. Furniture and plant Motor vehitSe5 IT Equipment 10-50% 20% 33.3% Assets under the course of construction are not depreciated until they are brought into use. Intanglble fSxed assets Intangible assets are reco8nised at cost and are subsequently measured at cost less accumulated arnortlsation and accumulated impairment losses. Atnorti%ation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases.. Software Istraight line) 33.3% Impalrment of fixed assets At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the eKtent of the impairment loss lil any). Where it is not possible to e5tim3te the recoverable amount of an individual asset, the charity estimates the recoverable arnount of the cash-generating unit to which the asset belongs. Recoverable arnount is the higher of fair value less costs to Sell and value in use. In as5es5ing value in use. the estimated future cash flow5 arè discounted to their present value using a pre-tax discount rate that reflects current market assessments of the tirne value of money and the risks specific to the asset for which the estimates of future cash flow5 have not been adjusted. If the recoverable amount of an a55et lor cash-generating unit) 15 e5tirnated to be less than its carrying amount, the carrying amount of the asset lor cash-generating unit) is reduced to its recoverable amount. An Impairment loss is recognised immediately in the starement of financial actlvitles. Recognlsed imp3irment10sses are reversed if, and only if. the reasons for the impairrnent loss have ceased to apply. Where an impairment loss subsequently reverses, the carryin8 amount of the asset lor cash-generating unitl is increased to the revised estimate of it5 recoverable amount, but 50 that the increased carrying arnount does not exceed the carrying amount thèt would have been deterrnined had no impairment loss been recogni5ed for the a55et lor c3sh-gener3tiftg untrtl in prior years. A reversal of an impairment loss is recognised irnmedlately In the statement of financial activitie5. Investments and Investment income Investment income Is accounted for on a receivable basis and comprises dividend income and interest. In accordance with the SORP, investments are shown in the balance sheet at their market value. Gains and losses on investment assets Changes in the valuation of investments during the year are shown as gains or losses. Gains and losses arising from the disposal of assets are the difference between the sale pro¢eeds and the market value at the beginning of the year. Stocks stocks are valued at the lower of cost and net realisable value after due allowance for obsolete and slow moving 5tock5. 25 Kingswood School NOTES TO THE FINANCIAL STATEMENTS for the 13 month period ended 31 August 2023 Financial Instruments The charity has elecred to apply the provisions of Section 11 'Ba5ic Financial Instruments. and Section 12 '0ther Financial Instruments Issues, of FRS 102 to 311 of Its flnancial instruments. Financial instruments are recognised when the charity becomes pèrty to the contractual provision5 of the instrument. Financial assets and liabllitios are offset, with the net amounts presented in the financial slatements, when there is a legally enforceable right to set off the recogni5ed arnounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Baslcllnanclulassets Basic financlal assets, which include trade and other re￿ivableS and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at 3 marker raie of interest. Impairment offinonciulossets Financial assets. other than those held at fair value through profit or Ios5. are assessed for indicator5 of impairment at each reporting end date. Financial assets are irnpaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 11 an asset is impaired. the impairmenr loss is the difference between the carryin8 amount and the present value of the estimated cash flows discounted It the asset's original effective interest rate. The impairment loss is recognisèd in profit or Ios5. If there is a decrease in the impairment loss arislng from an event occurring after the impairrnent Wa5 recognised. the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carryin8 amount would have been, had the Impairment not previously been recognised. The impairrnent reversal is recognised in profit or loss. Derecognfftion offinonciul os5ets Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Group transfers the financial asset and substantially all the risks and Tewards of ownership to another entity, or if some significant risk5 and reward% of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. C1055rficotion oAJinunciulliobilities Financial liabilitie% and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the a55ets of the company after B¢islcfinanciol liubtilities Basic financial liabilities, in¢ludlnE trade and other payables, bank loans, and advance fee payments, are initially recogni5ed at transaction price unles5 the arrangement constitutes a financing transaction. where the debt Instrument is measured at the present value of the future payments discounted Ht a markel rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Derecognition offinanclol Ilobllltles Financial liabilities are dereco8nised when, and only when. the charity's contractual obligations are discharged, cancelled. or they expire. 26 Kingswood School NOTES TO THE FINANCIAL STATEMENTS for the 13 month period ended 31 August 2023 Equity instruments Financial instruments classified as equity iNstrum&nt5 are recorded at the fair value of the cash or other resource5 received or receivable. net of direct costs of issuing the equity instruments. They are subsequently measured at fair value using observable market inputs and outputs. Permanent endowment funds The School holds investmenrs donated under permanent endowment. Income arislng on the Permanent Endowment Fund investments is treated a5 restricted income of the School. Restricted funds Restricted funds are subject to spÈcific conditions by donors as to how they may be used. The purposes and use5 of the restricted fund5 are set out in the notes to the Financial Statements. Unrestricted funds The General Funds comprise the accumulated surplu5. A5 svch the Governor5 consider these funds to be Unre5tTlCted Funds within the definitions contained in the Charities Acts in that they are funds over which they have complete discretion as to their use. CRITICAL ACCOUNTING JUDGEMENTS AND EsfiMATES In the application of the charity's accountin8 policie5, The Trustee5 are required to make judgements, estimates and assumptions about the carrying arnount of a55ets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant, for example the useful economic life of fixed assets. Actual result5 may differ from these estimates. The estimates and underlyin8 assumptions are reviewed on an ongoing basis. Revisions to accounting estirnates are recognised in the period in which the estimate is revised where the revislon affects only that period, or in the period of revision and future period5 where the revision affects both current and future periods. SCHOOL FEES Period ended 31 August 2023 2022 The School's unrestricted fee incorne ¢omprised.. Gross fees Le55'. Total bursaries, grants and allowances 23,490.451 22.127,579 12,443,214> 12,148,256) 21,047.237 19.979,323 Add back.. Scholarships, Grant5 etc. paid for by restricted fund5 6,372 3.643 21,053,609 19,982,966 27 Kingswood School NOTES TO THE FINANCIAL STATEMENTS for the 13 month period ended 31 August 2023 INCOME FROM SUBSIDIARY'S TRADING AcnviTIES lal The School owns 100% of the 1,000 £1 ordinary share capital of Kingswood Enterprises Limited (Co. Reg No 025454421. which provides minibus servi￿5 to the School and obtains commercial lettings. Its trading result5 for the 13 month5. as extracted from the audited Financial Statement5, are summarised below.. Period ended 31 August 2023 2022 Turnover Cost of sales 265.107 1158,3341 299,888 1191,6441 Gr055 profit Administration 106,773 123,5111 108,244 116,5401 Operating profit 83.262 91,704 Donation to the School 189,6781 156,5421 Retained profit/llossl 16.4161 35,162 The net assets of Kingswood Enterprises Limited at year-end were £29,68812022'. £49,718). Gross assets at year-end were £166,031 12022.. £175,623). Gross liabilities were £136,343 12022.. £125,905). During the 13 month5 £89,678 12022.. £56,542) ha5 been accrued for gift-aid relating to the financial year 22-23. The gift-aid donation in the year was greater than the profit due to usin8 up reserves built up in previous years. Ibl The School owns 100% of the 1,000 £1 ordinary share capital of Kingswood 1nternational Llmited (Co. Reg No 105197131, which prornotes the Kingswood School way of education to overseas partners and developing education opportunities to overseas markets. Its trading re5uIt5 for the 13 monih5, as extracted from the Financial Statements, are summari5ed below". Period ended 31 August 2023 2022 Turncver Cost of sale5 1371 1331 Gros5 profit Administration 1371 11,5181 1331 12,2561 Operatln@ loss Donation to the School 11,5551 12.2891 Retained profit/llossl 11,5551 12.2891 The net liabilities of Kingswood International Limited at year-end werè £65,31812022.' £63,763). Gross asset5 at year-end were £212022.. £291. Gross liabilities were £65,32012022.. £63,792). Kingswood International is exerrpt from audit under section 479A of the Companies Act 2006 and therefore results of this entity are unèudited. 28 Kingswood School NOTES TO THE FINANCIAL STATEMENTS for the 13 month period ended 31 August 2023 Icl The Trustees of Kineswood Stho(>l Developrnent Fund are the same as the Governors of Kingswood School Trustees LirnitÈd and therefore Kin85wood school Development Fund is viewed as b@ing a Subordinate charity under the terms of the SORP IFR51021. The Kingswood School Development Fund wa5 dormant in the current and prior period5. ANCILLARYTRADING AND OTHER INCOME Period ended 31 Au8USt 2023 2022 Ancillarytrading income.. Entrance and re8lStration fee5 Special educational needs income Fees for extracurricular Courses School mea15 Fees in lieu of notice and forfeited deposits Miscellaneous income 54,750 57,328 29,450 686,516 20,725 2.871 50,396 72,920 35,727 630,445 24,504 851,640 813,992 Actlvltles for generating funds: Course5 and sub-lettings 309,618 39,866 All ancillary tradinE ineome and raising funds are unrestricted in the current and prlor year. DONATIONS AND GRANTS Unrestricted funds Restrieted funds Endowment funds Period ended 31 Period ended 31 Perlod ended 31 Period ended 31 August 2023 August 2023 August 2023 August 2023 Total Donaiions and Legacies Grants 1,386 535.703 537.089 1,386 535,703 537.089 Unrestricted funds Restrlcted funds Endowment fund5 2022 Total 2022 2022 2022 Donations and Legacies Grants 16.954 381.207 398,161 16,954 381.207 398,161 29 Kingswood School NOTE5 TO THE FINANCIAL STATEMENTS for the 13 month period ended 31 August 2023 NET INCOME FOR THE PERIOD Net income in the period is stated after.. Period ended 31 August 2023 2022 Charltable expendlture indudès: Depreciation for owned a55ets Amortisation of intangible assets Bank loan and overdraft interesr payable 1,152,221 53,450 454,013 962,633 8.701 191,462 Governance costs include in support costs: Auditor's remuneration.. for audit services for non-audit services (tax advice and accounts prep supportl 35,204 3,036 30,100 2,640 Total staff costs comprlsed.. Wages and Salaries Social security costs Pension contributions 12,673,984 11.178,001 1,274,094 1,116,103 1,958,592 1,686,773 15,906,670 13,980,877 The average number of full-time equivalent employees in the 13-month period was 31012022.. 3011 of which 13212022.. 1221 were teaching staff. The average headcount in the period wa5 468 12022.. 4391. During the period, termination payments were made to employee5 totalling £S,00012022.. E88,4621. Neither the governors nor persons connected with them received any remuneration or other benefits frorn the School or any connected organisation. except for the reimbursement of eKpen5e5 for travel, subsistence and training of the Governors for E5,46512022.. E3671. The number of higher paid employees was.. Period ended Year ended Year ended 31 August 2023 31 July 2023 31 July 2022 No. No. No. £60.000- £70,000 £70.001- £80.000 £80,001- £90,000 £90,001- £100,000 £ioo,ooi- £iio.000 £IIO,001- £120,000 £210,001- £220,000 £230,001- £240,000 £240.(K)1- £250.000 17 io io 34 20 18 Contributions to the Teachers, Pension Scheme were made for the benefit of 2812022.. 131 higher paid ernployees totalling £455,50512022.. £249,502). Contribution5 payable into the non-teaching staff personal pension schemes for 612022.. 51 higher paid employee5 amounted to £36,41312022.' £28,025). 30 Kingswood School NOTES TO THE FINANCIAL STATEMENTS for the 13 month period ended 31 August 2023 The 8ross salary of the highest paid staff member was in the £180,(K)0- £190,000 bracket. In line with previous years, the value in the table below includes the non-cash value of a residential emolument but in addition to this, in 22-23 the value also includes salary in Ileu of ernployer pension contributions. EXPENDITURE 1uNRESTRI￿EDj Total Arnortisation Period ènded Staff tosts Other costs & Depreciation 31 August 2023 Cost of charitable activities.. Teaching Welfare Premises Support costs of schooling 11,442,896 2,144,962 776.273 1,514,793 638,668 1,091,193 2.091.244 1,571,098 12,081,564 3,238.585 4.058.798 3,085,891 2.430 1,191,281 School's operating costs 15,878,924 5.392.203 1,193,711 22,464.838 Governance costs 52.315 52,315 Costs of raising fund5-. Fundraising trading- other Financing costs Tradins cost5 of KEL Tradin8 Costs of KIL 394,501 575,285 80.850 37 394,501 575,285 120,556 37 27,746 11,960 Total for Group 15,906,670 6,495,191 1.205,671 23,607,532 Arllortisation staff costs Other costs & Depreciation Total 2022 Cost of charitable activitie5: Teaching Welfare Premises Support Costs 01 schooling 9.921,118 1,908,897 660,884 1.460.897 690,127 1,110,935 1.756,052 1,315,873 10.611,245 3.019,832 3,383,215 2.776,770 966,279 School's operatlng costs 13,951,796 4,872,987 966,279 19,791,062 Governance costs 40,697 40,697 Costs of raising funds.. Fundraising trading- other Financing cost5 Trading costs of KEL Trading costs of KIL 83,846 306,780 118,82 969 83,846 306,780 154.223 969 29,081 6,318 Total for Group 13,980,877 5,424,103 972,597 20,377,577 31 Kingswood School NOTES TO THE FINANCIAL STATEMENTS for the 13 month period ended 31 August 2023 ANALYSIS OF SUPPORT COSTS Educational Oper3tion5 Admin Operations Governance Recruitment & Advertising Total Period ended 31 August 2023 Audit Services- Audit Fees Non audit fees Independent Schools Inspectlon GoveTnorf5 Expense5 Technology Costs Other Support Costs Support Staff Costs Legal & Professional Costs Staff training and expense5 Pupil Recruitment Staff Recruitment Other 35,204 3,036 8.610 5,465 35,204 3.036 8.610 5,465 347,465 441,765 1.647,700 242,823 57.981 310,299 37,858 347,465 323,616 1,625,409 242,823 57,981 93.604 22,291 24,545 310,299 37.858 115,895 2.635,152 52,315 334,844 3,138,206 Staff costs are apportioned based on those employees who are employed in the different activities of the school. Other support costs relate to general Offi￿ and sundry costs such as stationery and telephones. Governance costs relate to accountancy services, the independent school's inspection charge and Governor expenses provided to assist the Governors in the performance of their responslbillties. Educational Operations Admin Operations Governance Recruitrnent & Advertising Total 2022 Audit Services- Audit Fees Non audit fee Independent Schools Inspecrlon Governorfs Expenses Technology Costs Other Support Costs Support Staff Costs Legal & Professional Costs Staff training and expenses Pupil Recruitment Staff Recruitment Other 30,100 2,640 7,591 366 30,100 2.640 7,591 366 30.535 726,153 1,460,897 61.760 52,015 298,624 53,401 93,385 30.535 45,541 18,162 677,705 1,442.735 61.760 52,015 2,907 298,624 4.560 48,841 93,385 94,238 2,376,441 40,697 306.091 2,817.467 32 Kingswood School NOTES TO THE FINANCIAL STATEMENTS for the 13 month period ended 31 August 2023 io OTHER INCOME Period ended 31 August 2023 2022 oiher/Mi5cellaneous income 3,944 3,944 Ila TANGIBLE FIXED ASSErs GROUP AND SCHOOL Assets in ourse of construction Subsidiary pl8nt and equipmen Subsldiary motor vehicles FrÈehold property Motor Furniture and plant School total Group tot41 At l August 2022 Additions Disposals Transfers 29.758.907 1.677,147 197,382 125,115 11,213 7.526,615 297,981 37,608,019 1,986,341 71,626 87,448 37,767,093 25,575 2,011,916 189,378 1189,3781 At 31 August 2023 31,625,432 8,IX)4 136.328 7,824.596 39,594,360 71,626 113.023 39,779.009 DEPRECIA TION At l August 2022 Charge for 13 months Disposals 8,882,151 674,047 125.115 6.888,174 2.430 463,784 15,895,440 1,140,261 71.626 68,492 11,960 16,035,558 1,152,221 At 31 August 2023 9,556,198 127,545 7.351,958 17,035,701 71,626 80,452 17,L87,779 NSTBOOK VALUES At 31 August 2023 22.069.234 8￿04 8,783 472,638 22.558.659 32.571 22.591,230 At l August 2022 20,876,756 197.382 638.440 21,712,578 18,956 21,731,534 33 Kingswood School NOTES TO THE FINANCIAL STATEMENTS for the 13 months ended 31 Au8USt 2023 Ilb INTANGIBLE FIXED ASSETS GROUP AND SCHOOL Software Cost At l August 2022 Additions 190,436 121,925 At 31 August 2023 312,361 Amortisation At l AuÉust 2022 Chaoe 173.032 53.450 At 31 August 2023 226,482 Net book value At 31 August 2023 85,879 At 31 July 2022 17.404 Intangible Assets relate to purchasèd software technology. Arnortisation is included in the Statement of Financial Activities within Charitable activities. costs. 12 INVESTMENTS GROUP Endowed restricted Unrestritted RestrittedEndowment Cash Cash Total At I Au8U5t 2022 Accumulated Interest Additions Revaluations 9.916 184,258 44,282 129,695 38,321 406,472 1,565 1,565 99.500 111,1131 99,500 1.021 110.6321 11,5021 Balance at 31 August 2023 10,937 173,626 142,280 129,695 39,886 496,424 Historic c05t 1,777 65.495 88,530 121,286 31,326 308,414 34 Kingswood School NOTES TO THE FINANCIAL STATEMENTS for the 13 months ended 31 August 2023 SCHOOL Endowed restricted Unrestricted RestrictedEndowment Cash Cash Tot31 At l August 2022 Accumulated Interest Additions Revaluatlons 11,916 184,259 44,282 129,695 38.320 1,565 408,472 1,565 99.500 111,1131 99,500 1,021 110,6321 11,5021 Balance at 31 August 2023 12,937 173,627 142.280 129.695 39,885 498.424 Historic cost 2,777 65,495 88,530 121,286 31,326 309,414 The unrestrirted investment shown within the school note above includes the investment in two subsidiaries. This is a lOO% holding in the 1,000 £1 ordinary shares of Kingswood EntÈrprise5 Lirnited and Kingswood International Limited. both companie% incorporated in the United Kingdom. King5wood Enterprises Limited provides service5 in property management, ¢ommercial lettings ènd rninibus services. King5wood International Limited promotes the Kingswood School way of education to overseas partners and develops education opportunities to overseas markets. Restricted and endowed Investments are held in investment fund unit5 whose funds are invested in a wide variety of stocks and 5hare5. The cash deposits are held by the investment managers and interest accumulates monthlv. 13 DEBTORS Consolidated Asat Asat A5at Asal 31 August 2023 31 July 2022 31 August 2023 31 July 2022 School Due within one year.. School fees debtors School fees billed in advance Trade debtors Amounts owed by group undertakings Gift aid receivable from subsidiary Other debtor5 Prepayments and accrued income 99,799 5,363,392 9,932 318,648 99,799 5,363,392 318,648 12,968 63,802 89,678 91,414 269,061 62,472 56.542 85.666 93,832 91,414 281,513 85,691 93,832 5.846.050 511,139 5,977,146 617.160 35 Kingswood School NOTES TO THE FINANCIAL STATEMENTS for the 13 months ended 31 August 2023 14 CREDITORS.. amounts fallinE due within one year Consolidated Asat Asat Asat Asat 31 August 2023 31 July 2022 31 AUg￿$t 2023 31 July 2022 School Current in5talment5 due on bank loan Trade creditors Amounts owed to subsidiary companies Taxation and social security Pension costs Finance leases Other creditors Deposlts received in advance Accruals and deferred income Deferred income- Autumn term bills Advance fees 547,341 510,497 547,341 510,494 91,775 285.268 269,245 269.245 99,605 288,671 177,954 170.077 282,699 522,531 436,774 7,616,330 228,973 287,985 177,954 197,044 284,581 522.531 456.083 7,616,330 228,973 281,332 141,076 366,182 465,250 234,113 131,571 364,592 465,250 174,527 481,153 481,153 10,040,726 3,026.944 10,092,859 3,051,971 Deferred Income Analysis Asat 31 August 2023 Asat 31 July 2022 At l August 2022 Income received for future re5idenlial courses 29,930 8,494,440 14,878 15.052 Balance at 31 August 2023 8,524,370 29,930 2023 2022 Advance Fee Payments Amounts due within one year 228,973 481,153 228,973 481.153 The balance represents the accrued liability under the contracts. The movements during the period were- Asat 31 August 2023 Asat 311uly2022 Balance at l August 2022 Movement in the period 481,153 1252,1801 619,911 1138,7581 Balance at 31 August 2023 22B.973 481,153 36 Kingswood School NOTES TO THE FINANCIAL STATEMENTS for the 13 months ended 31 August 2023 15 CREDITORS: amounts fallinB due after more than one year Consolidated Asat Asat Asat Asat 31 August 2023 31 July 2022 31 August 2023 31 July 2022 School Bank loan 7,900,000 6,952,449 7,90CI,000 6,952,449 7,900,000 6,952,449 7,900,000 6.952,449 16 BORROWINGS Consolidated A5at Asat 31 Au8USt 2023 31 July 2022 School Asat 31 August 2023 Asat 31 July 2022 Bank loans 7,900,(X)o 7,499,790 7.900,0(X) 7,499,790 7,900,000 7.499.790 7,900.000 7.499,790 Payable within one year Payable after one year 547,341 6,952.449 547.341 6,952,449 7,900,000 7,900.000 7,900,000 7,499,790 7.900,000 7,499,790 The School and Group had the facility of three loans and an overdraft facility provided by Barclays Bank plc, under ¢OrnP051te overdraft arrangements with the Board of the Division of Finance of the Methodist Church covered by a legal charge on freehold property in Bath up until May 2023. In May 2023, the School and Group moved banking provider5 and now have the facility of one loan and an ovÈrdr3ft faeility provided by Natwest Bank. At 31 july 2001, there was a legal charge in favour of the Board of the Division of Finance of the Methodist Church, over property described in an indenture dated 19 July 1852 and an indenture of conveyance dated 31 December 1863. Propertv comprlsed In this charEe is to be iaken by the Bank as security for the loan and overdraft facility. The variable loan with Natwest has an interest Tate of 1.83%. 37 Kingswood School NOTES TO THE FINANCIAL STATEMENTS for the 13 months ended 31 Au8U5t 2023 17 NET ASSETSOF THE FUNDS OFTHE SCHOOLANDGROUP The Group's net assets belong to the various funds lineluding Advance Fees) as follows.. Net current Fixed Assetsl Assets Investments (Liabilities) Long term Fund balances Endowment funds Restricted funds Unrestricted funds 271,974 895,500 1,167,474 173,626 2,566,436 2,740.062 50,824 15,847.6371 17.900.000) 8,980,296 22,677,109 22,677,109 496,424 12,385,701) 17,900,000) 12,887,832 The School's net assets belong to the various funds (including Advanced Feesl Hs follows.. Net current Flxed A55et51 Long term Assets Investments (Liabilities) Fund balances Endowment funds Restricted funds Unrestricted funds 271,974 895,500 1,167.474 173,627 2,566,435 2.740,062 52,822 15,812.0041 17,900,000) 8,985,356 22,644,538 22,644,538 498,423 12,350.0691 17,9CM),0001 12,892,892 On 19 lune 2018, the School received the approval of the Charity Commlsslon to transfer £995.000 of the School'5 Endowment funds to offset the capital purchase of the new bulld ai KPS. TheAgreement madespecifie reference to interest and Capital payments.. Interest on the loan at the rate of 3%. to be reviewed annuallv. The Borrower shall repay the loan in ten equal instalment5 commencing on the fifth anniversary of thi5 Agreement and thereafter on each anniversary of this Agreement until 2033. The first repayment of £99,5CX) was made during the year. The Charity Commission also approved the use of a Subsidiary company, Ferens Posnett Limited (Reg. Co. No. 113765071 to reduce the conflict of interest between Kingswood School Trustee Limited and the Kingswood School endowed fund5. 38 Kingswood School NOTES TO THE FINANCIAL STATEMENTS for the 13 months ended 31 August 2023 Balance at l August 2021 Transfers and Amounts investment expended gains 31 July 2022 Income Restricted funds Bursary fund Other restricted funds Development 221,648 9,487 1,628,336 13,6431 112.5121 205,493 9,487 2,007.983 381.207 11,5601 School 1,859,471 377,564 11,5601 112,5121 2,222,963 Kingswood School Development Fund Group 1,859,471 377,564 11,5601 112,5121 2,222,963 Bursary fund This fund represerTrts monies 8iven to the School specifically to invest for the provision of bursaries and gifts to Support pupils. Othe¥ restrlcted funds These relate to 5ev@ral Small restricted funds which have been donated durinB the year and are expended In accordance with the donor's wishes. 18c UNRESTRicfEDFUNDS.' MOVEMENTS IN THE PERIOD Balance at l August 2022 Transfers and investrnent losses Balance at 31 August 2023 Income Expenditure Unrestrirted funds General reserve 9.877,076 22,141,713 123,334,454) 1,021 8,685,356 Des18nated fund5 Bursary fund 300,000 300,OCKJ School 10,177.076 22,141,713 123,334,454> 1.021 8,985,356 Kingswood Enterprises Ltd 67.673 265.107 1271,5231 61,257 KlnEswood International Ltd 164,7621 11.5551 166,3171 Group 10,179,987 22,406,820 123,607,5321 1,021 8.980,296 In the financial year 2012113 the 8overnors desi8nated £300,000 for future bursariès to be given against school fees. 40 Kingswood School NOTES TO THE FINANCIAL STATEMENTS for the 13 months ended 31 August 2023 Balance at l August 2021 Transfers and investment gains Balance at 31July 2022 Income Expenditure Unrestrlcted funds General re5eive 9,206,034 20,782,094 120,109,9931 11.0591 9.877.076 Designated funds Bursary fund 300.000 300.000 School 9,506,034 20,782,094 120,109,993) 11,0591 10,177,076 Kingswood Enterprise5 Ltd 32,512 299,888 1264,7271 67,673 Kingswood International Ltd 162.4741 12,2881 164,7621 Group 9,476,072 21,081,982 120,377,008) 11.0591 10,179,987 19 PENSION SCHEMES The School participates in the Teachèrs, Pension Scheme I'the TPS'I for its teaching staff. The pension charge for the 13 months include5 contribution5 payable to the TPS of £1,645,86712022'. EI,413.8771 of which £177.95412022.. £0) was accrued for at year end in respect of contribution5 to this scheme. The TPS 15 an unfunded multi-employer defined benefits pension scheme governed by The Teachers, Pensions Regulations 2010 las amendedl and The Teachers, Pension Scheme Regulations 2014 las amendedl. Members contribute on a "pay as vou go" basis with contributions from members and the employer beinÉ credited to the Exchequer. Retirement and other pension benefit5 are paid by public funds provided by Parliament. The employer contribution rate 15 Set by the Secretary of State following scheme valuations undertaken by the Governrnent Actuary's Department. The most recent actuèrial valuation of the TPS was prepared as at 31 March 2020 and the Valuation Report was published in October 2023. Following the Mccloud judgement, the remedy proposed that when benefit become payable, eligible members can select to receive them from either the reformed or legacy schernes for the period l April 2015 to 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the Breater benefits, and in preparing the 2020 valuation have valued the'greater value, benefits for groups of relevant rnernbers. The valuation confirmed that the employer contribution rate for the TPS would increase from 23.6% to 28.6% from I April 2024. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution of 28.68%. 41 Kingswood School NOTE5 TO THE FINANCIAL STATEMENTS for the 13 months ended 31 August 2023 20 RELATED PARTY TRANSACTIONS The key management personnel arè dèemèd to be the Trustees, the Senior and Prep Headmasters, the Director of Finance and Operations, 5 deputy heads, the Chaplain and 4 director5 as listed on Page S of the accounts. Their total remuneration ost5 including employerfs Nl and pension in the 13-month period were £l,557,78112022'. £1,332.3421. Ouring the period the school received gift aid income from Kingswood Enterprises Ltd of £89,67812022'. £56,542). The school charged Kingswood Enterprises Limited £80.72412022'. £77.0451 for Minibus drivin8 services, theatTe and admin charges and Catering services. It paid £82,62412022.. £78,879) to King5wood Enterprises Ltd in respect ol the supply of minibuse5 and other vehlcle. At the year-end £99,60512022- £91,775) was due to Kingswood Enterprises Ltd. At the year-end £63,80212022.. £62,472) was due to Kingsw()od School Ltd from Kingswood International Limited. There were nts other transactions between Kingswood School Ltd and Kin85wood International Ltd. 21 ULTIMATE PARENT UNDERTAKING The ultimate parent undertaking and controlling party is Klngswood School Trustee Limiled, of Lansdown Road. Bath BAI 5RG, a company incorporated in England and Wales. 22 NET DEBT RECONCILATION Brought forward Cash flow Carried forward Cash at bank and in hand 882,517 924.876 1,807.393 882,517 924,876 1.807,393 Finance leases Debt due in more than one year Debt due within one year 1141,0761 155,9681 1197,0441 16,952,4491 1947,5511 17.900,0001 1547.3411 547,341 16,758,349) 468,698 16.289,6511 42 Kingswood School NOTES TO THE FINANCIAL STATEMENTS for the 13 months ended 31 August 2023 23 RECONCILIATION OF GROUP NET INCOME TO NET CASH INFLOW FROM OPERATIONAL AcfiviTIES Period ended 31 August 2023 2022 Net income 1672,9811 1.080,977 Adjustments for.. Investment gains Interest received Net financing c05t5 Depreciation and amortisation 11,113 11,7121 575,285 1,205,671 14,596 11761 306.780 972,597 1,117,376 2,374,774 Ilncreasel/Decrease in stock Iincreasel/Decrea5e in debtors Increase/lDecreasel in creditors 670 2,457 15,334,911) 1116.8651 7.561,119 241,505 Net cash provided by operating activities 3,344,254 2.501.871 43 Kingswood School NOTES TO THE FINANCIAL STATEMENTS for the 13 months ended 31 August 2023 24 CONSOLIDATED STATEMENT OF FINANCIAL AcfiviTIES- 2022 Unrestricted funds 2022 Restricted funds 2022 Endowed funds 2022 Total fund5 Total funds Note5 2022 2021 Income and endowments from.. Charitable activities.. School fees Ancillary tradin8 income 19,986,609 813,992 13,6431 19,982,966 813,992 17,824,138 629,585 20,800,601 13,6431 20,796,958 18,453,723 Other trading activities.. Fundraising trading Other trading income Investment income Donations and grants Other Income 221,009 39,866 176 16,954 3,944 221,009 39,866 176 398,161 3,944 65,757 15,138 ioi 481,808 105,616 381,207 io Total Income 21,082,550 377,564 21,460,114 19,122,143 Expenditure.. Raising funds.. Fundraising trèding Financing costs 239,038 306.780 239,038 306.780 143,832 273,250 S45.818 545,818 417,082 Charitable activities.. Education and grant maklng 19.831,759 1,560 19,833,319 18,329,520 Total expenditure 20,377,577 1,560 20,379.137 18,746,602 Net intome I lexpenditurel before investment gainslllossesl 704,973 376,004 1,080,977 375,541 Galns I (Losses) on investments 12 11,0591 112.5121 11.0251 114.5961 24,957 Net Income I lexpenditurel 703,914 363,492 11.0251 1.066,381 400,498 Net movement in fund5 703,914 363,492 11,0251 1,066,381 400,498 Fund balances brought forward 24 9,476,073 1,859,471 1,170,001 12,505.545 12,105,047 Fund balances carried forward 10.179,987 2,222,963 1,168,976 13,571.926 12,505,545 44