PREP SCHOOLS TRUST PST Annual Report and Accounts for the year ended 31st August 2023 1111111 *ACIHRB4kl* 1f41212023 COMPANIES MOUSE #13 Registered Company N￿Thber. 961616 Reglstered Charlty Number: 309639 Prnp Schools Trpmt Repryt oftho Tntstses {In¢luding thè Strat•gk R•port) For the year ending 31st August 2023 Contents Legal and *rninistrative infomation Intrc¥JudK>n frcrfn Chair and Chief Execubve Oty'ectives aNJ aclivii Rwrt of TrLtstees {including Str*egr Rewt) Independent A￿1￿0￿$ Report to the mwnbers of Prep Sch)ol$ Trust 14 stst￿ent of Fina￿la1 Ac*'vities 15 Balance She 16 Cash Fhxt Stat￿ent 17 Notes to the ACc￿nts 18 Pa9E 2 of Xl Pr•p Sehools Tnmt R•port ofthe Trust￿ lincludlng the Strntegit R•po Forthe year endlng 31st August 2023 Prep Schools Trust Schools and their Heads Andrew Boyle BARFIELD PPEP SCHOOL Christine Cook Chandlings PREP. OXFORD George May COTHILL HOUSE Bennjamyn Smith Kitebrook PREPAFIATOA Y SCHOOL Mowden Hall Scknol Kate Martin P•Je 3 ofxl Prep Schools Twst Rèport ofth• Trusttss Ilneluding the Strdte9k R•port Forthtr ￿ar ending 315t August 2023 Legal and admlnlslratlve infomiation TfUStees.' Emma McKendrick F Burkitt ( Awinted 1" Sept 20231 TJGibs W A tknger { ResvJned 2P Sept 20231 JCPain The C(￿nIe$S d Dam W H Pitman J P SperK L M E NeKombe A J Derham EDBcthri ExKuti¥• Board Chief Executive.. Chief Operatin9 Off￿r.. Director of MarketJ"ng". Head of HR.. T BeardrrKYe-Gray K Sandhu J Fitzroy.Ezzy J Warwng Biographies of the Trustees and ExeeutJ¥e Board can be ￿n￿ on the Prep sch￿1$ Trust *ebsrte. Registered Offlce". 7 Cothill . Abingdon Ox OX136JN Cmipany Numb•r: 961616 Charity Numb•r. 309639 Professional advlso Auditor.. Wenn Ttywnsend Chartered Accountants and Stsliiw Awjitor o￿Ord Bankers.. Bardays Bank pk Oxtord Handelsbanken Oxford Soli¢itor5'. Stone King LLP P¥p4rJy) Pv•p S¢hty)l¥ Tru8t R4￿ o1th• Trustees {In¢l(¢dlng the Strategic Report} Forthe ending 31st August 2023 Introduction from the Chalr of Trwste tt is one year since I beeame Chair of Trustees. ft is wilhcwl dtyjbt an exciting time in the Trust's develcpment. The Trust invrted the Association of Goveming B￿￿leS of Independent Schools IAGBISI lo cont1uct a review of our syBtems of governar￿e at the end of 2022. We have been encouraged that an aulhonty such as AGBIS has judged that the Trust is well governed. There are nonetheless areas where we further improve and the Board of TNstees has welcomed the recommendatKJns of AGBIS in this regard. As a resuk we have formally constituted two sub committees of the Board. Nejninations and Govemance and Education, iaken steps to fill diversity and skills gaps on the Boafd and Init￿ed further suppryl on safeguarding matters for our 5ch(x)Is. All of our schods have teen inspected by teams from the Independent Schools Inspeclorate during the past year al￿ we have been delighted to have rec￿Ved the huhest ratings in all cases. As an educational charty. the pupiLs a￿ the I￿￿$ of all Ihal we do. l am grateful to the staff across cmjr schods are committed to the provision of the very best educalM)n. care and Opportunit￿ in line with the Tnjst's vahjes and ambilior and to all those at Tntsl offtt who Pfovhje invaluabk supp)rt to our schcds. I k)ok fO￿ard to working closety vthh Our Tntstees and slaff ￿ the year ahead. Emma M¢Kendrick Messa9e from the Chlef Executlve The Trust be proud of all that has been achwed over the past year. twite some headwiThJs. not least hjgh inflation, signrficant prcgress has been made in many areas. Our pupil numbers have remained steady and there has been an encouraging amount of interest in our schwls from pafents of young children who are slartiThJ their educabonal journey. The Ihreal of the ¥mposthon of VAT on school fees and the removal of other charrtable reliels lts)m large for the sector. Consh1erat￿ is being given on how best lo Mit￿ale the impacl of these deveh)pments on our schools We recenlty undert¢))k a Trusl-wde parent survey in order to find out parents. need$ and preferences. and also lo leam how the current econcffiK climate might te impacting our famil￿$. There is an increasin9 amunt of interest in Prep Schools Trust at a twne bthen many prep schc¥)I boards of governors are exwnining how best to ￿Ure their futures. We have been very pleased to conclude an agreement for Beeston Hall Schoof lo j¢in Prep Schools Trust in January 2024. The values of Prep Schcds Trust and B￿lon Hall are closely ali9ned and the inClus￿n of Beeston Hall Setthl L8 CMSiStent with strategy to grow Prep Schoob Trust. Further Signif￿nI achievements during the year include the Comp￿tion of the Bailey Sports Centre at Cothill House and a new dining hall and kitchen at Kiéebrcok Both of these f￿[I￿leS wll signrficantly enhancg the experience of pupils in these schcds. Further capital prciecls al Mowden Hall and Barf*ld are planned in the ar ahead. We are very grateful to donors vhKJ haNE contribuled to these pro1￿. We continue lo focus on our staff who delNer the Trust's mi8sb)n of proV￿1ng the best $du￿tion and Ca￿ for pupils. We wenlty conducted a staff survey in support of our strategic aim of being an employer of ch0￿e and this will help direct resources in the year ahead. We hosted our second Trust Conference, this lime at Kilebrook, and we￿￿￿ed speakets on topKal educalK￿al issues. A programme of staff leadetship training look place during the year and we launched a new employee assistan￿ Pr￿ramrne. The Trust is poised for further grth¥lh and ready to SUPPfAt sch￿)1$ with the challerrfjes fxe the whole of the independent schTrJ sector in the Per1￿j ahead. Tom 8eardmortrGray Ptye5rfXI Prep S¢hoots Tnwt Report ol the Tnjstees Ilncludlng the Strate9k Report) Forthe >*ar •nding 31stAugUSt 2023 About Objectives and activitles Our mission is to deliver oulstsnding preparatory edUCa￿on and pastoral care as a famity of schools, gNing our pupils the opportunity. skills and Ccrfff￿ence to P￿pare them for th￿"r fLrture. The Tnjsl provides support and expertt5e lo our schools in SUPE￿ of this mission. Our ethos is to Celebrate dividualrty and the freedom of chikdhcod. the best tradrtion5 of British primary educat*)n and deliver exceptional academic teachry and pastryal ￿[e as a family of sch¢)￿S. Exh school has rts tjwn unique personalty Ixrt all our Sch¢￿ share consistent values.. puttiThJ our pupils first.. performing to the highest standards" pooling our streWh$ lo collaborate and &h*ve Mo￿,. innov*ing by anticipats.ng change and adapbng to rt.. and looking beyond the sdK*Jl gates to serve the wider local commUn￿es. Most mFQrtantly. we prb)ritise deyelcfrfr￿nt of our pupi15 and we treat exh pupil as an indivAJual. Involvemenl with Ic¢al Prim￿ sCh(￿S Ihrough the provision CA teathing. shared f&ilities and speciali51 services is a further imFfjrt￿ aspect of the Trusfs pU￿1C benefrt. Structure. governance and management Prep sch￿1$ Trust currently operates fNe prep schools. Cothill House IAII boys boarding 8 to 13+1. Chandling5 IC¢>educat￿naI day nursery to 11+1. Kitebrook Preparatory IC04ducat￿naI day nursery to 8+ day and boarding 8 to 13+1. Mowden Hall School (CO￿￿cal￿)naI day nursery to 13+ c0-educ*￿nal boarding 8 to 13+1 and Bathdd Sehool ICtre(lucational day nursery to 111 during the year. Prep Schools Trust is yemed by a Board of Trustees {see page 4 fry details) who deleg8le rnana9emenl responsibility for our schods to the Chief Executive. The Board meets at least four times annually and is assisted by three sub commrttees, the Finarte Committee. the EdUCat￿an Committee and the Nominations Committee. Exh school has a Head Teacher responsible for day to day operatKin$. Regular mana9emenl meetings are Id be￿n the school's senior l&idership teams aTrJ stuff al trust off¢e. The B¢)ard of Trustees comprises experts in educatth and a range (rf Profess￿nal disciplines. Many of our Trustees have sent their 1>4vn children to Trust schLx)l$. CollectNely they have a breadth of expertise. experien￿ and knowledge. Trustees are apwinled in acc(Ydance ¥￿th the MemorarKlum and Artth 0fAssociath￿. principal roles of the Trustees are.. to set the Trust's strategy to monrtor perfc¥mance against key perf￿ance indicators lo ensure the Trust has policies that provhde adequate intemal ts)ntrd and mitigate risk to maintain the financial stabilty of the Trust Trustees. Inducllon and trainlng Trustees are briefed on their oblhjat￿ns under chwity and ccthpany Iw, the ￿ent of the Memorandum and Articles of ASK￿latKJn, the Cc¥Je of G¢)vernan￿, the deas*Jn making processes and the strategic plan. Trustees are encouraged to attend approprrate exlernal training events where these wll facilrtale the perfomance of their role. Eath schwl ha5 a Local Athi¥iyy Group. wtmch i% chal￿d by a Trustee. P•Je6rfJJ Report ol the Trustees (including the Strateglc R•port) Forth• ￿al •ndin9 31stAu9USt 2023 Strategle report The Trustees present their report and the audited financial statements of the charity for the year ended 31st August 2023. The Trustees have ad¢)pled the proVis￿nS of the Stslement of Recommended PractiGe ISORPI "Accounting aThJ ReportiThJ by Chanb"es" (FRS 102) in preparing the annual report and financial sL*ements ￿ the charity. The directors of the charitabb c(Knpany are ts Trustees for the purposes of charity law. The Trustees who have seNed during the year and since the year*nd are listed on page 4. The Board of Truslees sets the strategy for ts T￿￿t focuses on the pr¢)vtsion of an outstanding education for pupils in the Tnjsfs sch(y)is. The Trustees have had regard to the matets set out in seckn 17211) {a) to (fj of the Companies Acl 2CK16 when performing their duties under S172. Achievements and perfom)ance The Trusys performance can be measured by progress against its 6 strategic obj'ectives. Grow school fee Income School fee Ir￿￿￿e has fftcreased due lo pupl increase. The number of pupiL% during the year vas 1,053 {2022. 1,0391 Acqulre new Prep schools Prep Schools Trust announced on 30 Octobei 2023 that Beeslon Hall will join the Trust in early 2024. The Tiusl is considering fLErthef Optthunrties for further grthvth. Refine services provided by Tntst Olfice The Trust is continuousty reviewng the level of expertise and service provhled lo our schools by Trust Olfice. Trusl OffKe has refined or enhanced ils capability in various functions during the year. Invest In our estate Each of our schcols is through programmes del8nnmed by recent Condrt￿n suNeys. Dlversificatlon of Income FLKther lo fundraising successes at Ccrthill House Mty*len Hall. further fundraising canpaigns to support the develcyment of schcds Wlill be pLgnned in the fvtwe. B¢¢orne an empW¢r of choice in the sector Fc41owing a survey lo gain Ihe vws of staff xross the Trust. y￿U$ inTiiatives have been Thplemented. These include further development of Trust Leadership Forum aTrJ the kuneh of an Employee Assistance Programme. During the coming year W￿ a￿ Icoking al fvrther benefts could offer to all employees, for exarnp￿. a cycle to work stheme. We wll also be ensuriw staff have suitabk spaces for non*contaet ts"me. Flnanclal review Prep Schools Tnjst wl*d its Inc￿ne ￿1ved during the year to the of cperating schoo15 at Cothill House, Chandlings, Kitebrod(. Mth¥den Hall and Barf*ld. The results for the year are shown in the irKcffie arKI expendrture ace¢￿￿t crfi page 15. The Trust prod￿ed a su￿U$ for the year of £24k12022'. surplus of £1.322k). Payroil costs there 67% of income (2022: 67%). P•Je 7 l￿￿) Pr•p Schools Tnmt R•port ol the Trusteès {Includin9 the Strats9k R•port For the year ending 31st August 2023 Publlc benellt and s￿la1 responsibility The Trustees have compl￿￿ with their duty lo have due regard lo the guKlan¢e on publ￿ benefft published by the Charily Commis5*)n in exercising their ￿wers and duties. Educational The independent sector as a *thole prowdes eX￿llenCe in-challenging subjects.. INhile nationalty the number of ¢hikJren studying languages has detlined. the Trust continues to teach all chikjren mc*ac èndino 31st August 2023 Independenl Auditorfs Report to the members of Prep Schools Trust OpiTrlon We have audited the financial statements of Prep Trust (the charitable companYI for the year ended 31st August 2023 whth comprise the Statement of FIna￿ra7 Activrt*s, the Balance Sheet. the Cash Flow Statement. and notes to the financL81 statwnenls. including a summary of signrficant accounting Folicies. The financial reporting framework that has been appl￿ in their preparation is applicable law and Unrted KIngd￿n Accounting Standards, including Financial Reporting Standard 102 Thg Financial Repothig Standard applrable in the UK and Republic Lrf IrEland (United Kingdom Generally Accepted Accounting PraclKel. In our opinion the finarKo1 stslements". give a true and fair view of the slate of tr* charilable ¢cAnpan¥s affairs as at 31st August 2022, and of its ieoming re5c￿r¢e$ and appli¢atk)n of resources. including its irKcYne aThJ expenditure, for the year then ended., have been properly prepared in aeccKtsrtt with United Kingthxn Generally Accept&J A￿untIng Practi¢e', and have been prepare(l in accordance wilh the requirem* of the Companies Aet 2006. Basis for opinion We conducted our aLhYit in xcordance ￿1h International Standards Cffb Auditing (UK) IISAS IUK}l aThJ appltcable law. Our resp)nsibilitres uThJer those standards are further described in the Auditor's responsibilities f￿ the audrt of the financial statements Sect￿ of our reFQrt. We are independent of the charitable company in accordance the elhical requirement$ that are relevant lo our audit of the financial stslemenls in the UK. including Ihe FRC'S Eth￿1 Standard. and we have fulfilled our other ethical responsibilities in &COfdarKe with these requirements. We believe that the audil evidence we have obtained is sufficient and appropriate to prowde a basis for our opini(￿. Conclusions relating to going concern In auditing the financial 5talement5. we have concluded that the trustees. use of ￿ going COn￿M basis of accr￿ntIng in the preparation of the financol statements is appfopnate. Based on the worf( Ferfixmed, have not identrf*d any material uncertaint*s relating lo events or ondrf(ions that, individually or colWively, may cast sunrficant doubt on the charitable companls ability to onlinue a5 a going ￿ncern for a perK*J of at kast ￿e1Ve months from WI￿ the financsal statements are authonsed for issue. Our responsibilrties the responsibilitw of the trustees wth respect to goin9 ccfflcem are described in the re18vanl of this repcvi. Other infornialion The truslees are rnsponsibb for the ot￿r lnf￿Mat￿￿. The other inforrnat￿ eomprise5 the infom8lK)n included in the Injstees. annual repcKt, ot￿r than Ihe financk41 st*emenls and our audrtorfs report thereon. Our winion on the financial slalements does not coNtr the olher infomi*ion and, except to the extent otherwise eXPl￿111Y stsled in (yjr ￿pOrt. we do not express any form of assurarKe conclusion thereon. In cennection wrth our audit of the financHI stalernenls. OUT respons&)ilrty 15 to read the ot￿r infomation and, in doing 50. consider whether the other informalh)n is materialty inconsislenl with the financial statements iy our krwledge ¢)btained in audrt or otherwise appears to be matenally misstated. If we identify such material inconsistencies or app3￿nI malerol misstatemenls. ￿ are required to determine vthether there is a material misstatement in the financial slalements or a material misstatement of Ihe other Information. If. based on the work we have performed, V•e conclude that there is a material misstatement of this other inf0mlal￿n, we are required to report that fael. We have Th￿hIng lo report in this regard. Py12dJ) Prep S¢hool• Tr￿1 Report olthe Trustees Ilneluding the StrategSc Report) Forth• y•ar•nding 31st August 2023 Independent Auditorfs Report to the mWn￿r$ of Prep Schools Trust Icontinuedl Oplnlons on olher matters prescribed by the Companies Act 2006 In our opinion, based ￿ the undertaken in the course of the aud￿. the infomiation given in the tru5tees' report lincorpor81ing the strategtc rewt and the directors. reporti for the financial year for whieh the financial sL*ements a￿ prepared consistent with the financial statements,. and the strategic report and the directors. rewrt have been prepared in accordance wilh applicable legal requirements. Matters on whlch we are required to report by exception Sn the light of our knovAedge aTrJ undgrslanding of the Charrtab￿ company and its enMrorunent obtained in the course of the audrt. we ha¥e not ldentrf￿d matenal misstslements in the strategic report and the directors. rep)rL We have nothing to report in respect of the folh)wvig matters in relatk)n lo the Companies A£t 2006 requires u5 to report to you if, ￿ our opin￿. Jequate ￿CountIng rec￿dS have not been kept. or retums ￿equate our audit have not been received from branches not Msrted by us.. or the financial statements are in agfeernent with the accounting records and returns," or certsin disclosu￿$ of direct￿$, remuneratw $￿Ified by law are not made: or we have not receNed all the informatKm and eXplanatK￿$ ¥￿ require fry our audbt. Responsibilities of tNstees As explained mcKe fully in the trustees, responsibilities ststemenl sel ¢)ul on page 8, the trustees (who a also the directors of the Charitab￿ company the purposes ￿ company kw) are responsible for the preparation ol the financial ststemenls and for beirtg $al￿fied that they give a true and fair view, and for such intemal control as the Iruslees determine is necessary lo enab￿ the preparation of financial statements that are free frC￿ malenal missL*ement, ￿￿ether due lo fraud or error. In preparing the finanekql sL*emenls. the trustees are respons*)be for assessing the tharitabk cA￿pan￿8 abilrty lo continue as a going concern. di5cthing, a5 applio3ble, matters related lo going co￿ern and using the going concern basis of xccyJnting un￿5 the trustees either intend to IK4yidate the charitab18 ￿MpanY or to cease operalh)ns, ¢y have no realists"c attemative but to do so. Auditorfs r•spoThsibiliti•s for th• audit of the financial statements Our t*'ectives are to obtain reasonab￿ assurance about whether the financial stslements as a vthole are free from material misstatement. whether due to ftaud or error, and to issue an audi(ols report that includes our opinion. Reasonable assurance is a high levd of assurance, tyjt L% not a guarantee that an audit conducted in accordance with ISAS IUK) will always detect a malerial mL8slatemenl when il exists. Misstatements can arise from fraud or error and are considered material rf, indivtdually or in the aggregate. they could reasonably be expected to infiuerKe the d￿Ls￿n$ d users taken on the basis of these financial slatemenls. Irregularittes, including fraud, are Instan￿ of non-ecffipharte with laws and regulations. We design procedures in line wth our responsibi1rt￿, outlined above. to detect material misstatements in respect of irregularrties. in¢ludirvJ fraud. The speofic pr￿edUreS for this enga3￿1 and the extent lo Ithich these are capable of detecting irregularrties, including fraud is detailed bekjw.. Enquiry of management, those eliarged wth goNemance the entitls sOl￿rtOrS aiound actual and potent￿1 litigation and claims.. Enquiry of enlily staff in accounting and HR fvncl*?ns tQ Klentfy any instances of rLJn-complonce with laws and regulations." Reviewng minutes of meetings of those charged tmth go¥emance: Reviwng financial slalement disclosures and testing to suppryling dcurnenLition to assess compliance wlh applicable la￿ts and regulaIK)￿. p4?13￿ Pr•p khools Tn*t R•port of the Tr￿te*S Ilncluding the Strategic Report) Forth• y•ar èndiny 31st AUg￿t 2023 Independent Audltorfs Report to the members of Prnp Schools Trust {¢ontinued Perf¢)rning audit vKJrk over the risk of management override of controls, ineluding testing of journal entries aNJ other adjustmerts for appropriateness. evaluating the business rationale of STgnifunt transactions C￿sIde the r￿rnal eoutse of busines$ and reviemng aeccAJnting estwnates for bias. Perfonning deL?￿ed audit work over the risk of timrng tssues within the rewgnition of both fee and non- fee income and the override of Controls in this area by managerr*nt, in particular wrth regards lo fee concessions awarded. This included full reconcl1￿l0nS of fee inccthe rwnised compared lo student numbefs and fee rates. as well as detailed subslantive testing of eoncessions awarded on fees, and non- fee irKome arising in the peivj. Because of the inherent Iwnitalions of an audit. there is a risk that wll deted al irregularities, including th¢)se leading lo a material misslalement in the financial stalements or nonthcc¥npliance wrth regulation. This risk increases the more that ecmpliance with a or wulation removed from the events and Iransaclions reflected in the fina￿la1 statements. as we will be less likety to become aware of instances of non- compliance. The risk is also greater regarding irregularrties occurring due lo fraud rather than error, as fraud involves intent￿nal concealment. forgery. ￿lIUs￿n. omission or mi5represenlalion. A further de￿ript￿n cl our responwbilitie5 t1￿ audrt of the financial statements is kcated on the Financial Reporting Council's website at.. w¥*w.frc.org.uklauditorsresp￿sIb1lIt￿s. Thi5 descripton fomis part of our auditorfs rep￿. Use of our report This report is made soldy to the charitats￿ c(ryan￿$ m￿bers. as a boJy. in &ctrdance with Chapter 3 of Part 18 of the Companies Act 20[￿. Our audit VI￿rk has been undertaken so that we might stsle lo the charitable company's members trh)se mattets we afe required lo slate lo them in an audrtorfs report and for no other purpose. To the fullest extent pemitted by law. we do r￿1 accept or assume respon5ibilty to anyone other than the charrtabk c47rnpany and the charita1￿ cc*npanls members as a b¢*Jy. for our audit work, for this report, or for the opinKJn5 we have formed. Andrew Rodzynski FC {Senior Ststutory Auditor) For and on behalf of Wenn Towr6end. Chartored Ac¢ountsnts. Statutory Auditor Oxford 5th December 2023 P4?14￿*) th• y•ar•rth#JlstAI1￿1o2j 2ty22Talil To Fe9$ 19.181 19.4•1 10.luz 18.482 lio 351 351 251 Tthl*rt•m• 21XJ6 20.901 20.yji EAp1nd￿r•G11'. knd5 24 71 21.107 21.1 19.040 19.091 19 32 Totsl•xpthidth 21.178 21.ln 19.179 24 1522 39.415 Jl.S$9 .439 35.415 PW15￿ Company numbgr. 961616 Prep Schools Trust Balance Sheet 31st August 2023 2023 2022 Note Fixed assets Tangible assets IrNestrnerrts 35.668 12 35.668 Current assets Stock Deblors Cash at bank and in hand 13 14 115 597 104 332 4.464 3.696 4,900 Creditors.. Amounts faling ¢Jue within one year 15 (8,189) {4.401) Net cunent assets {4.4931 499 Total assets less current assets 36.353 36,167 Creditors: Amounts falling due after one year 16 1914} {752) Net assets 35,439 35,415 Funds Unrestrlcted funds Revalual¢on reserve Inwme and expenditure aeeount Designated fund 19 19 19 15.433 16.096 15,526 16,532 30 31,559 32,088 Restricted fvnds Restricted donations 19 3.880 3,327 35.439 35,415 The financial sLit￿nentS were approved and aulhLYwl by the 8oard on 5th December 2023. Signed on bèhalf of th• Board E E A McKendrick Trustee The notes on pages 21 to 32 fomi part of these financlal statements. Prep Schools Trust Cash Flow Statement for the year ended 31st Au9USt 2023 Reconciliation of net income to net cash inlltyw from owratlng xtivities: 2023 2022 Net ineome for Interest payable Impalnnenvdepr￿l4h￿ oftsngible fixed a55ets (Gain)￿OsS on disposal of tarKJOle fixed assets (IncreasellDecrease in stocks (Increase)IDecrease in detrkn5 Iln¢reaseYDe¢rease in acw8d s* of pr InC￿aSe in C￿￿or$ New fees in ￿var￿e Fees in advance applied in year Fees in advance refunded in ye Fee comp)si(ion disctsjnt {Lossesl arisirKJ frcm changes in fwjn exc*ange rates 24 45 475 141 1111 (2861 43 517 1221 1571 5,877 611 55 (1731 1161 1.239 285 (741 Cash flow from operatlng actlvltles 1,717 8.188 Cash flow from investing activities PayTnents to wuire tangib￿ fixed assets Receipts from sak 0ftsngIb￿ [￿ed assets Arnc4Jnts rttei¥ed from sak 0ftsn9￿￿ ftx&J 8ssets 15.653) (2,122) 19) Nat Cash flow from Invastlng xtivltles {5.648 12,1311 Cash flow from financlng athilies: Receipts from issue of new long term loans Interest paid (49) 142} Net cash flow from financing activities (2,451) 1421 Incrnase In cash and cash equNalents (1.480) 6.015 Cash and cash equivalents at 1st September 2022 {1.5511 Cash and cash equival￿tS at 31st August 2023 4,464 Cash and cash equlvalents conslst ot. Cash at bank and in hand Overdrdfts- 4.464 Cash and cash •quiv•lents at 31st August 2023 4,464 Pw174YXI Prep Sch¢)ols Trust Notes to the Accounts for the year ended 31st August 2023 Summary of significant accounting polici•s General infom)atlon and basis of preparntion Prep S¢hod$ Trust is a Charrtab￿ company limited by guarantee in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per rn￿ber of the chanty. The address ot the registered office is gNen in the charrty irrfO￿atIOn on page 1 of these financial statements. The nature of Ihe charrty s Operat￿nS arKI principal activthes are inciuded in the Trustees. Report. The chanty ¢onstitutes a Publ￿ t* enlrty as defined by FRS 102. The financial s¢alements have been prepared in accordance wth.. Accounting and Rwbng by Charities: Stalemert of Recommended Pr&tice applicab￿ to charities preparing their &counts in a¢cordarKe with the Financial Reporting Standard applicable in the UK and Republ¢ of Irelarnl issued in October 2019: The Financkql ReFrfXting Standard applicab￿ in the United Kingd¢yn arwj Republic of Ireland IFRS 1021.. The Ch¥ities Ad 2011.. The Companies Att 2¢)J6'. and UK Gener￿lY Accepted Acc(MJnlirth3 Pr? The financpl statements are prepared on a goiT¥J concern basis under the historical cost eonventTOn, moxlif*d to include certain rtems at fair v*ue_ The financpl $tstements are prepared in sterfing wh￿h is the funct*)nal currency of the ch¥ty and rounded to the nearest £000. The signfficant accounting pOl￿S appl*d in the preparation of these financial stalemenls are set out bebw. These pol￿e8 have been consislentty appl*d to all Yea￿ presented unless otherwise stated. The Trust Idenbfies each school as representing a separate geographical aiea of operations. As $u¢h, in the event of the dosure of a school, this i% considered lo be a discontinued operation. Ashd¢)wn House c105ed during the prior year. The ineome and expeTh4rture directty attributable to this site is disdosed as di￿ontInUed cyerath)ns on the f&e of the SOFA in accordance wth the requirements of sectton S of FRS 102. Funds Unrestricted fvnds are avaiL4ble for use al the discretion of the Trustees in furtherance of the general objectives of the charity and vknich have not been dewgnated for othei purposes. Designated funds comprise un￿Stricted funds that have been set a$ide by the Trustees for Part￿Ular purposes. The aim and use of each desonated fund is set out in the notes to the financial stalemenls. Restricted lunds are funds wtiieh are to be used in aecordtrte with specifK restrictions Knposed by dor￿r5 or which have been raised by the charty for partieulaf purposes. The cost of raising and administering suth funds is charged agoinsl the fund. The awn and use of each reslrKted fund is sel out in the notes lo the financk41 statements. Incorne re￿gnitIon All incoming resources are induded in the SLitement of Finartial Activrtes {SoFAI when the Charity is legally enliUed to the income after any performance condrtKJns have been met, the amount can be measurgd relK4bly arnl it is probable Ihal the 1￿c￿ne will be r￿1ved. For donations to be recen inpaimwit *e recOgn￿d in expendrture. Loans and borrowings Loans and b)rrowings a￿ rec(yJns&J al the Iransth p￿e inchJJir#J transaction costs. Subsequently. they are measured at arnO￿.$ed cost using the effeth interest rate methtsj. less inpaimient. If an arrangemwl Consti￿ a finance transxlK*n rt L% measured at present ￿alUe. Impairnient Assets not measured at fair vakne are rev￿W&j for any irKl1cat￿n that the asset may be impaired at each balance sheet dale. If such irKI￿t￿￿ exisls. the recoverabk amount of the asset. or the asset's cash 9enerating unit, is estimated and Compa￿ to the carrying amount. Where the carrying amount exceeds rts recoverable *nount. an impaimient loss is re￿gnIsed in profrt or10sS. Leases Rentals payable and receivab￿ under operating leases are charged to the SOFA on a straight line basis over the period of the kne. Foreign currency Foreign ¢urren¢y Iranwti￿s are inrtialty reccgnised by applying to the foretqn currency amount the spot exchange rale beknn the fUn¢t￿nal currency aTrJ the forewn eurrency at the date of the Iransaction. Monetsry assets aThJ Itabilities den￿inated in a foreign ￿Tre￿ at the balartt sh*t dale are transl*ed using the ck)sing rate. Employee benefits When employees have sery￿e to the charty. shy14wm ern￿oyee benefits to whth the empknyees a￿ enIrt￿d *e recg)gnis&Y at the undiscounted expeclgd to be pa>J in exchange fc¢ that seNice. The charty operates a defined contn"butN)n plan for the beneft of ts empk)yees. Conlit•ulJons are expensed as they b￿￿ne payable. Tax The ¢harty is an exempl charty wrthin the meaning crf Schedu￿ 3 of the Ch8rit*s Act 2011 and is consvjered to pass the tests set QLrt in Paragraph 1 schedu￿ 6 FIna￿e Act 2010 and therefore it meets the definrth)n of a charitable UK tsx purFw)ses. Going ¢oncem The financial statements have been prepared on a g(xng coneem basis as the trustees beI￿ve that no material uncertainties exist. The trustees have conshlered the level of funds and the expected vel of inC￿e and expenditure for 12 monlhs frcrfn aLrthorising these financ￿1 ststements. The budgeted income ar￿1 expenditu￿ Is Suff￿nI with the level of reserves for the charrty to be able to continue as a going coneem. Group accounts The Charty does prewe w accounts as ts sthidiary entilies are deemed immaterial to the group. 20dX) Prep Schools Tntst Notss to the Accounts I￿ntinUed1 forthe year ended 31st August 20ZJ School fees 2023 £'ooo 2022 £'ooo 20.6C (1.125) 19,394 1912> Discourts and wards 19,481 18,482 None ofthe irKcYre wa5 attr1)u￿le to restr￿thj frJrth in erther peri¢￿1. Other educational Income 2023 2022 £'ooo Must luiknon aThl aSs￿l8t￿l irKAyne Extra turtion Occasional bcording aKI sLYnM￿ k* Other income 52 204 318 236 57 157 242 810 Ncne of *y)ve ¥icome vrds attrtjutable to restricted funds ￿ eitlv peri(¥J. Anclllary Income 2023 rooo 2022 £'ooo Oiher ineijme 351 251 351 251 N￿e ofthe above inc(YnevM alrbulable to restrKtsd furvJs in either peri¢>J. Donations and grants 2023 2022 £'ooo Donations 590 Dc￿a￿"OnS include £587k (2￿. £963k) attrbutable lo reslrthd funds. Page 21 Prep Schools Trust Notes lo the Accounts I￿ntinued) for the year ended 31st Augusl 2023 Charltsble activltles Staff Costs Other 2023 Total 2022 Total £'ooo Teaching WeKare Premises Support costs ofeducattc 10.533 1,059 620 1.938 1,420 1,831 2.771 970 11,953 2,890 3.391 2.￿8 10.896 2,538 3,108 2,539 14.150 21.142 19,081 £34k12022.. £12k) of the above expendiiure was atlrknul*le to restrKted fvTrJs. The major ccffiF￿￿nts of SUPF*Nt costs irKI￿le'.. 2023 2022 £'ooo Administralive staff costs PO$￿Je, ststionery, telephone adminislratbve costs Advert￿ing fu staff and Pr￿OI￿)n Bad debts Legal and Pr￿essic￿01 fees R￿ruitment fees Bank ¢harges G¢)vem8nee costs {see n 1.625 236 188 13) 368 297 195 In 389 67 61 2,539 Governance costs 2023 Total £'ooo 2022 Totsl £'ooo Costs £'ooo £'ooo Staff Audit 32 23 25 25 25 61 Pa9e 22 OIXI Prep Schools Trust Notes to the Acc¢wnts Icontlnued) for the year ended 31st Aug4L812023 2023 £'ooo 2022 £'ooo Wage5 and ￿ar*S ial securty costs Pensio 11,909 1.038 1.203 10,856 975 1.119 14.150 12,950 2023 FTE 2023 Number 2022 FTE 2022 Number Average number empbyed including TA￿te•s. Trustees Teachers Household Ar the year ended 31st August 2023 11. Tangible Ilxed assots Fixturns. Fittings & Equipmenl Freehold Assets under Land & the course of Buildings construction £'ooo Vehicles comp￿er$ Total rooo £'ooo 1st September 2022 Addrtions Disposals Realkt* 162 312 1.848 37,OC 1.889 5,653 41.217 5.6S3 121 12) 15 1151 31st August 2023 160 312 1.e63 37.OC6 7,527 46.868 Depreciation and impaimients 1st September 2022 125 Depreciation Di¥osals 255 23 1,149 92 4.020 353 5.549 475 121 {2) 31st August 2023 278 1.241 4.373 6.022 Net book value 31st August 2￿23 622 32,633 7,527 40.846 31st Au9USt 2022 37 57 699 32.986 1,889 35.668 The Trustees elected. in accrxdarKe with SeclK)n 35.101d) of FRS 102, to use the carrying value on 1 September 2014. the date of transition to FRS 102. of any of the above fieehold laTrJ and buildings previously carried al a valuats'on. as their deemed cost arKI is the companys poI￿Y not lo revalue fixed assets. The surplus ol a premous revalUat￿n over cost had been credrted lo a revalualw reserve which now stsnds at £15.4m (Note 19). The (¥KJinal purchase k)rtt (hist￿￿ cost} is £14.4m. Tangible fixed assets wilh a net value of £7.321k (2022: £1,173k) have been pbjged as $￿urity for liat4lrties of the charity. No propert￿5 were sold by the Trust during the yew. Page 25 ￿ 30 Prep Sch¢)ols Tn Notes to the Accounts {continued} for the year ended 315t August 2023 11 Fixed asset Invvstments Unllsled Inv￿tments Cost 1st September 2022 100 31st August 2023 1LKI Provlslon agalnst dImIn￿10Th of value 1st September 2022 1(N) 31st August 2023 1ts) Net book values At 31st August 2023 At 31st August 2022 The Trust 101yA ofthe albtted share captsl of the foJkAving undertaking.. Profrt for year Country of rogistration Class of share upitsl Nature of buslness Caprtal and reserves at 2023 PST Enterprises knmtted EngLqnd and Wa Ordinary Evenls 124,317 124.217 13. Stoc 2023 rooo 2022 £'(x)o Stc¢k- consumab￿5 115 104 P•J* 26 ofXI Prep Schools Tntsl Notes to the Accounts {contlnuedl for the year ended 31st August 2023 14. Debtors 2023 £'ooo 2022 £'ooo Trade debto Other debtc*s Prepayments *KI aeerwl income 113 130 478 196 597 332 15. Creditors: aM(￿nIS falling due within (ffje year 2023 2022 £'ooo Bank loan Trade creditors Other laxatKJn and Sfxial secunty Other creditors Accruals and deferred income 2.500 3,287 266 592 3,251 259 421 470 8.189 4,401 Trade creditots include £2.260k {2022: £2.521k) in respect of fees recaved in advance for Autumn 2023 lem. and £45k12022." £53kl for acadwx years 202Y24 onwards. The bank b)an is sttured- see note 17 for delails. 16. Creditors: aM￿ntS faling due after one year 2023 2022 £'ooo (Xher credrtors 914 752 914 752 Other credrtors include £153k 12022: £30k} for fees receNed in tharKe for academ￿ years 2022r23 onwards urKler the fees in a￿Var￿ scheme. 17. Bank ovfjrdratl loan facility and I￿n8 The bank ban of £2.5m has an interest rate of 1.65% Ihe Base R*e The Trust's bank bgrr(Mings are sttured by a debentwe arml fixed charge over sorne of rts freehdd and Lqnd. Pai* 27 Prep khools Tntst Notes to the Accounts {continued for the year ended 31st August 2023 18. Deferred Income under the fees In advance scheme Durry the year, fees amounbng to £285k (2022.. £55kl were received in adwance for pupils for future years. Fees ￿leaSed to income amounted lo £74k {2022". £173k) and £nil 12022.. £16kl were refunded to parents. Fee cunposition discounts of £4k (2022." -£1kl were charged to expendbture. All amounts o￿n9 at 31st August 2023 are shown as Ih8biht*s in ncles 15 arwj 16. 19. Funds Income and expenditure £'ooo donations fund £'ooo Designated Revaluation fund reseNe Total £'ooo £'ooo Al 1st Seplernber 2021 Surplus1(def￿1lI for the year Transfers beh¥e funds 2.376 15.619 16.068 34.093 951 371 1.322 (93) 93 At 31N August and 19t September 2022 Surplusllder￿t) for the year Transfers betsveen funds 3.327 15.526 16.532 35,415 553 {529} 24 (931 93 At 31* August 2023 3,880 15,433 16,096 35,439 The restricted donations fund balance carried ftsry￿rd Ir￿ude$ monies rarsed for a sports hall at Cothill £3.617k wh￿h achieved practical completion on 2r￿ September 202312022.. £3.294kl. P•￿28￿￿1 Pyep Schools Tntst Notes to the A¢Munts lcontinued) for the year ended 31st Augu$¢ 2023 20. Analysls of n•t assets between funds Restsi¢ted donations fund tl¢slgnated R￿alUatIon lund reseNe Incom• arbd expenditure Total 2022 £'ooo Fund balances at 314 August 2023 are represenletj by". Tangible fixed assets Nel current a5setsl(liabililEs) Long terffl liabilities 3.617 263 15.433 21,796 40,846 14,786) {4.493} {914} (9141 At 311t August 2023 15.433 16,0* 35.439 Incomo and expendlture £'ooo donalions fund £'ooo Deslgnated Revaluati¢)n fund reserve T¢)tal 2021 £'ooo Fund balances at 31Sg August 2022 are represented by.. Tangible fixed assets Net current assetsllliabililiesl Long lefm liabilities 1.847 1.480 15.526 18.295 35.668 11.CK)91 499 {752> (7521 At 31x1 August 2022 3,327 15,$26 16,532 35,415 21. Related party transactions Mr T Beardmore-Gray, Ch￿f Executive. is a Dirertor of the As50ciatton of Governing Bodies of Independent Schools. During the year to 31st August 2023, ￿yMentS made to the Association of Governing Bodies of Independent Schools amounied to £10,46412022- £6351. There was nothing outstanding at the year end 12022.. £6351. P4e29dYJ Prep Schools Trust Notes lo the Accounts l¢ontinuedl for the year endod 31$1 Augvst 2023 22. Leases Total future minim￿￿ ￿se payments under nOn-￿cellab1e operaling kases are as follows.. Expiring.. 2023 £'ooo 2022 £'ooo Within one year Wthin I¥￿ and fNe year5 73 131 195 294 204 23. Fulure capital con￿lIments 2023 £'ooo 2022 £'ooo Expendrtwe aulhorised and contrxted 3,876 24. Events after the end of the Peii¢)d An agreement that Beeston Hall School is to join Prep Schoo15 Trust by way of charitable merger was announced on 30 October 2023. Beeston Hall School is a co*ducational independent day and irf)arding preparatory school in Norfolk, England. This aBreement after the year end doe5 not impact the carrying value of assets or liabilities reflected on the balance sheet or require recognition of new asset5 or liabilit￿s. Completion for this merger is due to tske pla￿ in earty 2024.