Annual Report & Accounts
for the year ended 31 August 2023
)40
Haileybury,
## Haileybury and Imperial Service College
## for the Year Ended 31 August 2023 Annual Report
||Pages|
|---|---|
|**Review of the Year**|2 – 6|
|**Council’s Report**|7 – 12|
|**Report of the Auditors**|13 – 15|
|**Consolidated Statement of Financial Activities**|16|
|**Consolidated Balance Sheet**|17|
|**Consolidated Cash Flow Statement**|18|
|**Statement of Accounting Policies**|19 – 23|
|**Notes to the Accounts**|24 – 39|
|**Governing Body**|40|
|**Advisers**|41|
## Haileybury and Imperial Service College
## Review of the Year Ended 31 August 2023
## **Introduction**
Measured in almost any way, the academic year 2022-23 was a very successful one for our pupils and the School as a whole. Perhaps the broadest indication of the strength of our collective performance came from the outcome of the whole school inspection. In October 2022, a team of inspectors from the Independent School Inspectorate (ISI) performed a no-notice inspection. The inspection team judged us “excellent” (the highest standard) in terms of the quality of education the School provides. This judgement encompasses academic, pastoral and co-curricular educational quality provision as well as the personal development of the pupils. We were all greatly buoyed by the inspectors’ written and oral feedback. A copy of the inspection report can be found here.
Our partnerships with various schools have continued to develop throughout the year; we greatly value our community of Haileybury schools for the opportunities for collaboration and the sharing of educational practice. We were delighted that Haileybury Turnford followed up their own inspection success last year with the award of a substantial government grant to rebuild the majority of their school.
Our flagship estates development project, SciTech, was close to completion by the end of the summer and pupils attended their first lessons in the new facility from the start of November 2023. This first project from our Estates Masterplan, use of which will be shared with Haileybury Turnford, emphasises our ambition for pupils to be intellectually curious as well as academically successful.
## **Public benefit**
Haileybury is committed to providing public benefit by widening access to education. As part of this commitment, the School sponsors a local Single Academy Trust, Haileybury Turnford (HT), and offers means-tested bursaries to our pupils. Haileybury has continued to provide significant financial and practical support to HT, including professional expertise in governance. Our Deputy Head (Pastoral), Dr Laura Pugsley, serves as HT’s Vice Chair of Governors and Chair of the Education Committee. Other senior colleagues, including the Master, also sit on HT's Governing Body and Education Committee.
We have implemented several initiatives for HT throughout the academic year, including Latin lessons at Haileybury for Year 7 and Year 9 HT pupils. Other projects included a Year 7 online maths and coding course, a maths and computer science coding day and participation in the Model United Nations conference. Haileybury has also provided support for Year 12 and Year 13 pupils in their UCAS and Oxbridge applications, and an increasing number of HT pupils have been offered places at Russell Group universities. HT pupils are members of the Haileybury Combined Cadet Force. We also offer operational assistance and advice, and our Grounds and Gardens staff help with maintenance of the site at HT.
## **Community activities and service**
Haileybury’s strong commitment to community action and charitable work continued this year with a breadth of volunteering opportunities and, notably, the inaugural Hearts and Wings Holiday. In collaboration with Green Frog Holidays, the School provided a week-long residential holiday for 21 children with disabilities, run by a team of volunteers made up of current and former pupils, staff and more experienced helpers. The holiday provided respite for families, an exciting and enjoyable experience for our guests, and a life-changing opportunity for the volunteers.
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## Haileybury and Imperial Service College
All three services in the Combined Cadet Force participated in the annual Ministry of Defence summer camps for the first time since the pandemic.
## **Safeguarding and wellbeing**
The safeguarding of pupils remains the School's foremost priority. The in-house counselling service has been a great asset again this year, and the School has continued to benefit from the NHS educational mental health practitioner service one day a week.
The ISI inspectors found the School’s safeguarding and pupil wellbeing policies and procedures to be compliant; the Wellbeing programme (PSHE/RSE) was also judged compliant. Additionally, the success of the Wellbeing Award for Schools (gained in May 2022) was reflected in the School’s nomination for, and commendation in, the TES Pupil Mental Health and Wellbeing Initiative Award 2023.
In September 2022, Dr Laura Pugsley was appointed Deputy Head (Pastoral) (a change from Deputy Head (Safeguarding and Wellbeing)), and charged with developing the pastoral strategy for the School. She has chaired a sub-committee of the Senior Leadership Team (SLT) and formulated a specific pastoral strategy, with an emphasis on developing the role of the tutor, and the design of a complementary professional development programme for all pastoral pathways. A significant part of safeguarding pupils is proactive intervention before issues become more serious; in September 2023 the School will launch the use of a new evidence-based wellbeing measurement tool called STEER tracking, as a means of providing tutors and House teams with insightful data and informed strategies to support pupils on an individualised basis.
## **Academic**
The School’s (I)GCSE results were excellent, with 55% of grades awarded at the highest level of 9/8 (A*) and 80% of grades at 9/8/7 (A*-A). Additionally, one fifth of all (I)GCSE pupils achieved straight 9/8 (A*) grades. Notably, the proportion of grades awarded at 9-7 or equivalent is 15% higher than in 2019 (the last ‘normal’ year for examination results before the Covid pandemic), while many competitors are only achieving 2019-level results. These outstanding academic outcomes are the highest in the School's history (pandemic years notwithstanding), demonstrating significant progression.
Haileybury pupils achieved an average score of 39 in the International Baccalaureate Diploma Programme, equivalent to A*AAA at A level. This average points score is the joint highest in the School's history and is particularly notable given the national average points score has decreased by nearly two points in recent years to 34.67.
A-level pupils were awarded the School's best grades, with 44% achieving A* or A and 78% achieving A*-B. As a result, 56% of all Sixth Form grades achieved this year were at A or A* level or equivalent, with 86% of all Sixth Form grades at A*-B. These impressive grades have enabled nearly 100% of pupils to enrol in pathways beyond school, with 90% enrolled in universities of their choice, including Oxford and Cambridge. The remaining pupils have either taken gap years or progressed into apprenticeships or the world of work.
The School's commitment to promoting dialogic learning through work with Oracy Cambridge has resulted in the publication of the first Journal of the Haileybury Institute for Educational Research. This journal has empowered teachers to define themselves as reflective, evidence-informed practitioners, and has changed the way initiatives are developed within the School. The School's focus on curriculum deliberation now centres on ensuring that new teaching spaces support learning for all pupils, whether through design thinking, innovation courses, or projects similar to StanX. The
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## Haileybury and Imperial Service College
School collaborated with MIT and NuVu innovation school in Cambridge, MA, in preparation for the opening of the new SciTech Centre.
## **Sport**
It has been a memorable year for sport both in terms of participation and opportunity as well as performance at the highest level. The girls' hockey 1st XI enjoyed a successful campaign culminating in the U18 National Cup Final. The girls’ football squad had success in the national football cup reaching the last 16 schools in the country. The girls' senior swimming squad defended their Hertfordshire County League crown for a third successive season over a series of highly competitive galas, before reaching the top 10 in the England Schools' Championships in November. Four of these pupils went on to win the National Medley Relay Crown at the London Olympic Aquatic Centre.
The boys' rugby 1st XV enjoyed a good season and reached the National Plate semi-final. Amongst the 19 rugby squads across the School, the U15A reached the last 16 in the national cup. On an individual level, one pupil was selected to play in South Africa for the England U18 team.
The U15A netball squad successfully took on the Saracens Mavericks Academy sides, with B teams successfully competing against opposition schools' A sides. The lacrosse U15 girls meanwhile successfully claimed the title in the national championship.
The boys' skiing squad reached the national final in October. Haileybury pupils won the U16 National Singles and Doubles Rackets Championships and the boys' golf team won the inaugural East of England Golf Championships. In National Schools’ Fencing, a Haileybury pupil won the girls' foil national schools' championships and was selected for the British World Cup squad.
Boys' football in the spring term offered opportunities for 24 squads across the School and the U16A triumphed in their league. The boys' U16 hockey team won the East round of the National Cup. In cricket, 40 teams played across both boys' and girls' programmes. The boys' and girls' U15 both reached the quarter final stages of their respective cups and the U17 girls likewise.
A memorable year in terms of both participation and top-end performance, the School has fielded 180 different teams over the year with over 1,100 fixtures across 16 different sports. In so doing, Haileybury has won five national titles, in addition to four national final appearances and 17 county or regional successes.
## **Music**
For the first time in recent history, over 40% of the pupil body studied a musical instrument in the academic year 2022-23. The success of the trial lessons scheme in the Lower School is now in evidence in the Senior School, where over 50% of Removes pupils study at least one instrument.
Numerous ensembles enjoyed a successful and high-profile year. In March, the Chamber Choir sang at a Memorial Service at Sandhurst for the Late Field Marshal Sir John Chapple (OH), and ended the academic year with a tour of Malaysia and Australia in July. In an historic first, the joint choirs of Haileybury and Haileybury Melbourne sang a recital in the Chapel at Melbourne. The Symphony Orchestra gave a performance of Dvořák's Symphony No. 8 at a Spring Concert dedicated to the memory of another notable Old Haileyburian, Michael Freegard. The Big Band, Concert Band and Contemporary Choir led the School's Jazz and Pop events, with a successful Charity Gala in aid of the new Hearts and Wings Holiday. Notable performances of other large works included John Rutter's Requiem and Poulenc's Gloria.
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## Haileybury and Imperial Service College
The School also introduced the Young Musician of the Year Competition in February, attracting over 200 participating pupils.
## **Drama and dance**
The Drama department had an outstanding year with the production of three shows of exceptional quality. A powerful interpretation of Macbeth was staged beneath a giant golden crown in the Ayckbourn Theatre, followed in February by a popular production of Les Miserables. In the Spring term Haileybury made its debut entry to the Coram Schools' Shakespeare Festival, with a production of Twelfth Night. In the Summer term, 74 Lower School pupils charmed audiences with their version of Matilda.
HTV film club produced their first creative short film 'Breaded Chicken Chateau', completely shot, written and performed by the pupils. The film will be submitted to festivals during the 2023-24 academic year. The annual Dance Show continues to be a popular favourite with pupils and staff.
LAMDA continues to flourish, with two successful showcase events and four rounds of examinations, many of which were passed at distinction level. The new LAMDA block and dance studio have provided improved facilities and LAMDA numbers currently stand at 165 pupils.
Noteworthy pupil achievements included a pupil being accepted into the prestigious National Youth Theatre and another’s appearance in Netflix's Matilda. Additionally, a script writing module for Middle School pupils, delivered by BBC scriptwriter Paul McKenna, received excellent feedback.
## **Art**
The Art School has maintained its provision of regular workshops to develop and refine pupil skills from Lower School 1 to Upper Sixth. The Art School increased the co-curricular offering last year and it has been pleasing to see more pupils attending the department outside of lesson time to consolidate their learning.
The new ceramics area has been a huge success; pupils across all year groups have made excellent use of the facilities and it has allowed the department to offer ceramics for staff also which has proved a popular wellbeing initiative.
The wider contextual understanding of pupils has been enhanced by trips to the William Kentridge exhibition at the Royal Academy of Arts, the Courtauld Gallery and the National Gallery.
The year has seen a return to physical exhibitions. The investment in purpose-built exhibition boards has allowed the exhibition spaces to be tailored for each exhibition, creating a new experience for each year group.
## **Combined Cadet Force (CCF)**
The appointment of a new and experienced Staff Sergeant Instructor in October 2022 made an instant impact. Numbers of recruits are high. The development of adventurous training (AT) was a focus, culminating in an AT Easter camp for Haileybury Turnford cadets and a summer AT week for the RAF Middles. The purchase of four canoes is an exciting addition for future expeditions and the acquisition of four Xboxes and linked screens have created a new ‘flight simulator’ suite to enhance training opportunities for the RAF cadets. A 'training in a built-up area' (TIBUA) installation was also built and used for the first time.
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## Haileybury and Imperial Service College
## **Duke of Edinburgh Scheme**
The Duke of Edinburgh's Award programme continues successfully and during the year had 258 pupils enrolled in the scheme across four year groups.
## **Sustainability and conservation**
The School has worked with consultants, Re-Energise, to devise its provisional Net Zero Strategy. The School continues to work on its decarbonisation, waste and water plans with the ambition of achieving net zero within 20 years, i.e. by 2043.
Pupil sustainability initiatives this year have included the receipt of 400 trees from the Woodland Trust and the award of Bronze and Silver Green School Awards. The pupils have participated enthusiastically again this year in the upkeep of the bee hives and apiary.
## **Haileybury estate**
Construction of the new SciTech centre continued throughout the year with completion in late October 2023. SciTech represents the School’s commitment to the very best academic facilities for pupils. In addition to new classrooms and laboratories, SciTech includes a research centre which is the formal base for the StanX partnership (with Stanford University), and areas for robotics and design. The facility links science, research and design technology by a cloistered quad, which is in sympathy with the brickwork of the Baker building and the two existing quad areas in the School.
A number of other projects were completed in 2023, including a new outdoor cricket net facility, refurbishment of the economics classrooms and a new parking area adjacent to Alban’s.
## **International schools**
Haileybury’s two partner schools in Kazakhstan continue to thrive with these schools achieving academic success and growing in pupil numbers. A new Haileybury school in Malta opened in September 2023. Haileybury Bhaluka in Bangladesh is scheduled to open in September 2024.
## **Conclusion**
There have been many highlights this year, not least the outstanding ISI inspection report, resounding success in our public examination results and the completion of our state-of-the-art SciTech project. We remain a school dedicated to service, and the education of the individual in the broadest possible sense, and these remain at the core of everything we do. At the end of the academic year 2023-’24, Martin Collier will retire as Master, after a distinguished career in education. Eugene du Toit has been appointed as his successor. The School looks forward with confidence as our pupils, and those of Haileybury Turnford, enjoy our new facilities and the enhanced opportunities these will bring.
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## Haileybury and Imperial Service College
## of the Year Ended 31 August 2023 Council’s Report
## **Objects and aims**
The objects of the Charity are to carry on and maintain the School, provided that Council may, without limitation, pursue these objects by carrying on one or more colleges or schools on one or more sites, and by making grants in support of one or more colleges or schools provided that any such college or school shall in their opinion be connected or associated with the School and further such other exclusively charitable objects in the opinion of Council associated with the School.
It is the aim of the School to ensure that every pupil maximises their academic potential. In addition, the School provides an exceptionally diverse co-curricular programme that aims to promote selfdiscipline, resilience, self-confidence, a desire to contribute to the local community, concern for others and to instil in pupils the importance of service. The School supports the pupils’ wellbeing through a clear pastoral framework and dedicated resources.
The future plans of the School are referred to throughout the Review of the Year and Council’s Report.
## **Structure**
Haileybury and Imperial Service College was established under a Royal Charter of Incorporation dated 30 August 1864, together with later Supplemental Charters, to run as a place of education. It is registered as a charity, number 310013.
The School has been in the process of seeking a new, updated, Supplemental Royal Charter. The Supplemental Charter was sealed on 7 September 2023 and changed the name of the charity to “Haileybury College”. As at the year-end however, the formal legal name of the charity was still Haileybury and Imperial Service College. Under the new Charter, the charity will continue to be known informally as “Haileybury”.
Haileybury Enterprises Limited (HEL) is a subsidiary wholly owned by Haileybury, which is responsible for the management of trading activities which are undertaken for the ultimate benefit of the School. The principal activities of the company are the running of an international English language school in holiday periods; residential and sports complex lettings; and the provision of educational consultancy services and brand licencing for the operation of international schools under the Haileybury name.
## **Governance**
Under the Charter which applied at the year-end, the School had a two-tier structure of governance comprising a full Board of Governors, who are the members of the Corporation, and an elected Council.
The members of Council were elected by the Governors. By the terms of the Charter, the affairs and property of the corporation were under the conduct, management and control of Council, whose members are the Charity Trustees within the meaning of section 97(1) Charities Act 2011, namely “the persons having the general control and management of the administration of a charity”. The members of Council are listed on page 40.
The members of the Council give very generously of their time and efforts to help guide the School. Their varied and relevant professional expertise is wide ranging.
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## Haileybury and Imperial Service College
The President is the Bishop of the St Albans Diocese, within which the School is situated. The Chairman of Governors and the Chairman of the Nominations and Governance Committee are elected by the Governors and hold office for a period of three years. The Treasurer is appointed by Council and is ex-officio Chairman of the Finance and General Purposes Committee. Candidates for election to Council are identified by the Nominations and Governance Committee set up for this purpose.
New members of Council are introduced to the workings of the School during an induction visit involving the Master, the Bursar (see below), the Chief Operating Officer and other senior staff relevant to their particular area of expertise. An induction training session is also provided to new members. Members of Council attend external and internal training courses and seminars on an ongoing basis.
## **Meetings and committees**
The Supplemental Charter in force at the year-end delegated oversight of the School to the members of Council, who in turn delegated the day-to-day management to the Master who is supported by the Senior Leadership Team. A Chief Operating Officer was appointed in May (with responsibility for the operational areas of the School) ahead of the departure of the Bursar at the end of the financial year and a forthcoming restructuring of the School’s finance function. Day-to-day matters concerning the administration of the charity were delegated to the Bursar during the year and Chief Operating Officer from September 2023. The Master and the Bursar/Chief Operating Officer were the key management personnel during the year in question.
The Board of Governors meets annually. Council meets four times a year in addition to attending an annual Strategy Day. Council has appointed a number of committees as set out below (all committees and Council meet additionally as required):
- Nominations and Governance Committee – meets termly
- Finance and General Purposes Committee – meets four times a year
- Education Committee – meets termly
- Safeguarding and Wellbeing Committee – meets termly
- Estate Committee – meets termly
- Investment Committee – meets twice a year
- Audit and Risk Committee – meets termly
- Development Committee – meets termly
- International Committee – meets termly
- HR and Remuneration Committee – meets termly
Membership of these committees is given on page 40. Other committees are formed by Council from time to time for specific purposes and disband on completion of their work.
In addition to the committees listed above the following Governors have special responsibilities:
- Rev Canon S Harvey - Safeguarding Lead Governor
- Dr A Drewett - Health and Safety Liaison Governor
- Mr G Ellison - Policies Liaison Governor
- Mr C Sherwood - Teaching Staff Liaison Governor
- Mr N Gilbert - Support Staff Liaison Governor
- Mr S Westley - Haileybury Turnford Liaison Governor
- Rev P Hunt - Equality, Diversity and Inclusion (EDI) Liaison Governor
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## Haileybury and Imperial Service College
- Ms T Pandya - EDI Liaison Governor
Remuneration for senior staff and any whole staff pay award is agreed by Council, with the objective of providing appropriate incentives to encourage enhanced performance and of rewarding fairly and responsibly individual contributions to the School’s success. Due regard is also given to the external market.
Advisers to the School are all specialists in the education and charity sector and give advice as required. The Advisers are set out on page 41.
## **Financial review of the year and future plans**
The Consolidated Statement of Financial Activities shows a net surplus from operations of £1.1m (2022 surplus £1.2m). After realised and unrealised losses on investments the net movement in funds for the year was a surplus of £0.8 (2022 deficit £1.0m). As a result, consolidated total funds increased to £62.3 (2022 £61.5m).
Haileybury takes its public benefit responsibilities seriously. In addition to the direct and indirect financial support provided to Haileybury Turnford, means-tested fees assistance for Haileybury pupils of £1.0m was provided (2022 £1.0m).
Demand for places remains high and fee income is correspondingly strong. The Governors’ strategy to increase income from other sources has led to a focus on developing the School’s commercial revenue streams, such as the establishment of a residential language school run in the holidays and managed in-house. There is also an aim to raise development funding income. The intention is to create more consistency in terms of income expectation.
Inflation has been a considerable challenge with food inflation running at nearly 20% and the cost of building supplies not far behind. Energy costs are obviously a major overhead for the School and costs have risen sharply by over 100%. Energy subsidies alleviated, to some extent, the significant extra cost of energy during the year although costs will increase in 2023/24 due to the withdrawal of this assistance. Though the School has reduced, and continues to reduce, its energy consumption, usage levels remain significant. As described above, the School has this year worked with an external consultancy to devise a detailed sustainability strategy to (amongst other things) reduce reliance of fossil fuels for both ethical and financial reasons.
Income from the trading subsidiary (Haileybury Enterprises Limited) now comes from two main sources – international partnerships and the new summer language school. Sundry lettings of sports and residential facilities makes up the balance, although this is expected to grow with the appointment of a Commercial Operations Director in 2024.
Partnership income comes mainly from our two partner schools in Kazakhstan as it has done for a number of years. A new school in Malta opened in September 2023 to be followed by Haileybury Bhaluka, Bangladesh (expected September 2024). The second year of the Haileybury run summer language school was a success with turnover increasing from £149k in 2022 to £900k in 2023 and set to increase further in 2023/24 with the addition of an Easter School and greater capacity in the summer.
During 2022/23 our capital investment focus was to progress the SciTech project (which opened to pupils in November 2023). In the face of the inflation challenge described above, the Governors’ decision to opt for design and build construction (and hence fixing the cost) rather than the “traditional” construction route (for which the School takes cost escalation risk) reduced the risk of significant cost overruns. See below for further details.
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## Haileybury and Imperial Service College
The Governors recognise the risk posed by the possible imposition of VAT on school fees and are planning accordingly. Cost control remains of paramount importance and the School strives to maximise the value obtained from all expenditure.
The principal funding source for the charity is fee income which amounted to £31.8m (2022 £29.3m).
## **Assets**
Excluding cash held within the investment portfolio, cash at bank at the year-end was £4.8m (2022: £8.0m) after purchase of capital additions of £15.1m (2022: £5.4m). Cash flow is actively managed and debt collection procedures are effective. As in all independent schools receiving fees three times a year, the year-end position represents the highest point in the cash cycle. The lowest point is approximately £5.5m lower than the year-end balance.
During the year the School invested £15.1m in fixed assets of which £13.4m was work-in-progress related to SciTech. Note 15 (pages 35-38) to the accounts shows the allocation of assets to the various funds.
As mentioned above, construction of the SciTech project began in July 2022 and completed in October 2023. The cost of the project shows as work-in-progress at the year-end. It is a £19.5m development to provide cutting edge science teaching and research facilities. The inclusion of research facilities at a school is prestigious, and will provide Haileybury pupils, and those of Haileybury Turnford, with unrivalled opportunities to study at a higher level. The building has run to budget and is financed by unrestricted cash reserves, a five-year Revolving Credit Facility (RCF) from Barclays and the Charity Commission approved use of a proportion of the School’s invested endowment (the School has permission from the Charity Commission to draw down £7.5m from the endowment, but has only drawn down £4.5m of this amount as at the year end).
The project to repair and refurbish the Chapel continued through the year and is likely to take another two years in order not to deprive pupils of the space during term-time.
In addition to the usual round of teaching space refurbishment, the School benefitted from six new cricket nets on Hailey Field (made possible by a generous donation from a parent).
## **Fundraising performance**
During the year the School was fortunate to receive voluntary funding of £0.4m (£1.0m in 2022). Unfortunately, the majority of the legacy making up the 2022 result related to a house in London that dropped in value over the intervening 11 months. Therefore a downward adjustment of £300k was made to the accrued legacy value, which impacted this year’s result.
The Development Director, reporting to the Master, leads on fundraising activity.
The Trustees recognise the importance of maintaining the highest standards of practice and care in relation to fundraising activities. The School keeps donors informed through regular updates with all fundraising activity carried out by school staff. The School does not actively solicit financial support from members of the general public.
## **Investment powers, policy and performance**
Investment powers are governed by the School’s Charter and individual trust deeds. Haileybury aims to balance the needs of current and future pupils for whom the endowed and restricted funds are
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## Haileybury and Imperial Service College
held. As a result, the majority of funds are invested to maximise total return (aggregate of income and capital growth). Income is drawn prudently according to an agreed formula that preserves capital whilst providing sufficient funds for current beneficiaries.
Investment income in 2023 was £0.3m (2022 £0.4m). Realised and unrealised investment losses amounted to £0.3m (2022: loss of £2.2m). The investments liquidated at the end of last year (£5.8m) and utilised during 2023 to fund the SciTech project drove a corresponding reduction in the gross income expected from the portfolio.
The performance of the investment managers is monitored by the Investment Committee with the appropriate indices being used as a benchmark. The performance of the funds over the period has been broadly in line with the relevant benchmark.
The Composition of Fees Scheme, which provides for the payment of fees in advance, is segregated from the other funds of the School. This fund is invested so that the maturation profile is in line with the related liability to provide schooling in future years; the analysis of future liabilities is shown in note 14 (page 34).
## **Reserves policy**
As at August 2023 the School held Unrestricted Funds of £45.7m (see note 15). Free unrestricted reserves (which exclude the value of fixed assets) are negative £10.9m. Negative free reserves are common in the accounts of independent schools where surpluses are used to invest in fixed assets. The Governors have reviewed the level of funds held and have concluded that they are appropriate to meet future plans.
The school holds endowed funds of £14.8m and restricted funds of £1.4m. Please refer to note 15 on pages 35-38 for further information regarding the various funds.
Having reviewed the funding options available to the School together with the expected ongoing demand for places and the School’s future projected cash-flows, Council has concluded that the School has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Accounting Policies on pages 19 to 23.
## **Principal risks and uncertainties**
Council is responsible for ensuring there are risk management processes identifying the major risks and ensure that, where possible, they are managed. Council delegates the detailed oversight of risk to the Audit and Risk Committee which, together with the senior leadership of the School, and the other committees, considers and grades risks for the likelihood of their occurrence and the possible impact should they occur. For the risks identified, the existing systems to mitigate those risks are scrutinised. In each case, the individuals responsible for implementing the procedures and for keeping them under review are identified with regular reports back to Council. For the major risks identified, Council has taken steps to ensure these risks are managed.
A reduction in pupil numbers is a principal risk faced by the School. This is actively managed by considering factors which may lead to a reduction in pupil numbers and taking remedial action where necessary. The success of recruitment despite the pandemic highlights the success of this strategy. The governors recognise the potential threat to demand for places from the possible imposition of VAT on school fees and is planning appropriately.
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## Haileybury and Imperial Service College
A risk for all schools to manage is the safeguarding of pupils. There are robust policies in place relating to child protection and there is a sub-committee of Council which has specific oversight of welfare and safeguarding.
Health and safety is also a significant area for risk management and the Head of Health and Safety reports to the Finance and General Purposes Committee on a regular basis. A member of Council takes a special interest in Health and Safety.
## **Accounting and reporting responsibilities**
Council is responsible for preparing Council’s Report and the Financial Statements in accordance with applicable law and regulations.
Charity law requires Council to prepare Financial Statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law.
Under charity law, Council must not approve the Financial Statements unless it is satisfied that they give a true and fair view of the state of affairs of the charity and of its net incoming resources for that period. In preparing these Financial Statements, Council is required to:
- Select suitable accounting policies and then apply them consistently.
- 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 statements.
- Prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the charity will continue to operate.
Council is responsible for keeping proper accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the Financial Statements comply with the Charities Act 2011.
Council is also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by Council on 13 February 2024 and signed on its behalf by:
M J Rayfield Chairman of Council
R P Munn Treasurer
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## Haileybury and Imperial Service College
## Report of the Auditors
## **Opinion**
We have audited the financial statements of Haileybury and Imperial Service College for the year ended 31 August 2023 which comprise the Consolidated Statement of Financial Activities, the Group and Charity Balance Sheets, the Consolidated Cash Flow Statement, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the group’s and of the parent charity’s affairs as at 31 August 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 requirements of the Charities Act 2011.
## **Basis for opinion**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Council with respect to going concern are described in the relevant sections of this report.
## **Other information**
The Council is responsible for the other information. The other information comprises the information included in the Council’s Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
13
## Haileybury and Imperial Service College
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charity, or returns adequate for our audit have not been received from branches not visited by us; or
- sufficient accounting records have not been kept; or
- the parent charity financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of Council for the financial statements**
As explained more fully in the Council’s responsibilities statement set out on page 12 **,** the Council members 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 Council Members determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Council members are responsible for assessing the group’s and the parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Council either intends to liquidate the group or the parent charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including 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 respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011 and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered other factors such as income tax, payroll tax and sales tax.
14
## Haileybury and Imperial Service College
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and concluded that the risk was low. Audit procedures performed by the engagement team included:
- Discussions with management including consideration of known or suspected instances of noncompliance with laws and regulation and fraud;
- Evaluating management’s controls designed to prevent and detect irregularities;
- Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
- Challenging assumptions and judgements made by management in their critical accounting estimates; and
-
- Review of minutes of meetings held in the year.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charity’s Council, 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 charity's Council those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s Council as a body for our audit work, for this report, or for the opinions we have formed.
Haysmacintyre LLP 10 Queen Street Place Statutory Auditors London Date: 27 February 2024 EC4R 1AG
Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
15
## Haileybury and Imperial Service College
## Consolidated Statement of Financial Activities
for the Year Ended 31 August 2023
|Notes
(pages
24-39)
**Income and Endowments from:**
**Charitable Activities**
School fees receivable
1
Ancillary trading income
2
**Other Trading Activities**
Non-ancillary trading income
3
**Investments**
Investment income
Bank and other interest
**Voluntary Sources**
Grants and donations
4
**Total Income**
**Expenditure on:**
**Raising Funds**
Non-ancillary trading
3
Financing costs
Investment management
Fundraising
**Total Cost of Raising Funds**
**Charitable Activities**
Education
**Total Expenditure**
5
**Net Income/(Expenditure) from**
**Operations before Transfers**
**and Investment Gains**
Gains/(Loss) on investments
10
**Net Income/(Expenditure)**
Transfers between funds
8
**Net Movement in Funds for the**
**Period**
Fund balances brought forward
at 1 September 2022
**Fund Balances Carried Forward**
**at 31 August 2023**
15|Unrestricted
Funds
£'000
29,239
581
1,885
12
-
160
31,877
666
115
1
189
971
30,089
31,060
817
36
853
5,062
5,915
40,228
46,143|Restricted
Funds
£'000
-
-
-
12
1
77
90
-
-
3
-
3
5
8
82
(21)
61
(214)
(153)
1,547
1,394|Endowed
Funds
£'000
-
-
-
306
-
-
306
-
-
92
-
92
3
95
211
(260)
(49)
(4,848)
(4,897)
19,730
14,833|**Total**
**2023**
£'000
**29,239**
**581**
**1,885**
**330**
**1**
**237**
**32,273**
**666**
**115**
**96**
**189**
**1,066**
**30,097**
**31,163**
**1,110**
**(245)**
865
-
865
**61,505**
**62,370 **|Total
2022
£'000
26,868
692
1,329
362
3
970|
|---|---|---|---|---|---|
||||||30,224
168
15
116
174|
||||||473
28,572|
||||||29,045|
||||||1,179
(2,225)|
||||||(1,046)
-|
||||||(1,046)|
||||||62,551|
||||||61,505|
All of the above income and expenditure relates to continuing activities.
16
## Haileybury and Imperial Service College
## Consolidated Balance Sheet
As at 31 August 2023
|Notes
(pages
24-39)
**FIXED ASSETS**
Tangible assets
9
Investments
10 & 14
**LONG-TERM ASSETS**
Debtors receivable after one year
11
**CURRENT ASSETS**
Stocks
Debtors
11
Cash and deposits
**CURRENT LIABILITIES**
Creditors payable within one year
12
**NET CURRENT ASSETS/(LIABILITIES)**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**LONG-TERM LIABILITIES**
Creditors payable after one year
13
**NET ASSETS**
**ENDOWED FUNDS**
15b
**RESTRICTED FUNDS**
15d
**UNRESTRICTED FUNDS**
15e
Designated funds
General funds
**TOTAL FUNDS**|**Consolidated**
**2023**
**£'000**
2022
£'000
**56,731**
43,394
**14,433**
20,605
**71,164**
63,999
**658**
682
**220**
165
**1,820**
2,784
**4,826**
7,994
**6,866**
10,943
**(14,789)**
(13,958)
**(7,923)**
(3,015)
**63,899**
61,666
**(1,529)**
(161)
**62,370 **
61,505
**14,833**
19,730
**1,394**
1,547
**399**
1,796
**45,744**
38,432
**62,370 **
61,505|**Charity**
**2023**
**£'000**
2022
£'000
**56,731**
43,394
**14,434**
20,606
**71,165**
64,000
**658**
682
**220**
165
**1,595**
2,589
**4,485**
7,763
**6,300**
10,517
**(14,949)**
(13,973)
**(8,649)**
(3,456)
**63,174**
61,226
**(1,529)**
(161)
**61,645**
61,065
**14,833**
19,730
**1,394**
1,547
**(326)**
1,356
**45,744**
38,432
**61,645**
61,065|**Charity**
**2023**
**£'000**
2022
£'000
**56,731**
43,394
**14,434**
20,606
**71,165**
64,000
**658**
682
**220**
165
**1,595**
2,589
**4,485**
7,763
**6,300**
10,517
**(14,949)**
(13,973)
**(8,649)**
(3,456)
**63,174**
61,226
**(1,529)**
(161)
**61,645**
61,065
**14,833**
19,730
**1,394**
1,547
**(326)**
1,356
**45,744**
38,432
**61,645**
61,065|
|---|---|---|---|
||||64,000
682
165
2,589
7,763|
||||10,517
(13,973)|
||||(3,456)|
||||61,226
(161)|
||||61,065|
||||19,730
1,547
1,356
38,432|
||||61,065|
**Approved by Council on 13 February 2024 and signed on its behalf by:**
**M J Rayfield Chairman of Council**
**R P Munn Treasurer**
17
## Haileybury and Imperial Service College
## Consolidated Cash Flow Statement
for the Year Ended 31 August 2023
|Notes
(pages
24-39)
**Net cash inflow from operations**
Net cash provided by operating activities
16
**Cash flows from investing activities:**
Payments for tangible fixed assets
9
Payments to acquire investments
10
Proceeds from sale of investments
10
Investment managers' fees
10
Investment income and bank interest
received
**Net cash used in investing activities**
**Cash flows from financing activities**
Finance costs paid
Finance lease rentals
**Net cash used in financing activities**
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the
beginning of period
Cash and cash equivalents at the end of
the reporting period
17|**2023**
**£'000**
**5,920**
**(15,135)**
**(19,034)**
**18,952**
**(96)**
**331 **
**(14,982)**
**(115)**
**-**
**(115)**
**(9,177)**
**14,171**
**4,994**|2022
£'000
2,138
(5,418)
(6,902)
12,298
(116)
365
227
(15)
-
(15)
2,350
11,821
14,171|2022
£'000
2,138
(5,418)
(6,902)
12,298
(116)
365
227
(15)
-
(15)
2,350
11,821
14,171|
|---|---|---|---|
||||(15)|
||||2,350
11,821
14,171|
18
## Haileybury and Imperial Service College
## Statement of Accounting Policies
for the Year Ended 31 August 2023
## **Principal accounting policies**
The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), The Charities Act 2011 and the 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 (FRS102) (2[nd] edition) - effective 1 January 2019.
The functional currency of the School is considered to be GBP because that is the currency of the primary economic environment in which the School operates.
## **Basis of consolidation**
The Charity figures in these Financial Statements include the accounts of the College Unrestricted Fund, Other Unrestricted Fund, Scholarships & Bursaries Funds, (including Haileybury Charitable Trust, HCT), Special Fund, Composition of Fees Scheme and the Imperial Service Endowment (ISE). Any interfund balances have been eliminated.
The consolidated Financial Statements incorporate the Financial Statements of the College and its trading subsidiary (HEL). Intra-group sales and profits are eliminated on consolidation.
Haileybury, acting by Council, are the Trustees of the ISE.
## **Going concern statement**
Having reviewed the funds available to the School together with the expected ongoing demand for places and the School's future projected cash flows, Council has reasonable expectation that the school has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the Financial Statements.
## **Key judgements and sources of estimation uncertainty**
In the application of accounting policies, Trustees are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods. In the view of the trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in material adjustment to their carrying amounts in the next financial year.
## **Incoming resources**
## **Tuition fees**
School fees receivable represent amounts receivable for educational services provided. Charges for services and use of premises are accounted for in the period in which the service is provided.
19
## Haileybury and Imperial Service College
## **Donations**
Donations received for the general purposes of the College are credited to Other Unrestricted Funds, to distinguish them from direct College income. Donations subject to specific wishes of the donors are carried to relevant Restricted Funds or to Endowed Funds where the amount is required to be held as permanent capital.
## **Trading income**
Ancillary and non-ancillary trading arising from the sale of goods or the provision of services is recognised in the period in which the goods are delivered or the service is provided.
## **Income from other sources**
Other income, including investment income, is recognised on a receivable basis.
## **Resources expended**
Expenditure is accounted for on an accruals basis. Certain expenditure not directly attributable to particular functional activity categories are apportioned on the basis of management estimates of the amount attributable to the activity in the year, by reference to staff time or usage. The irrecoverable element of VAT is included with the item of expense to which it relates.
Expenditure on raising funds includes the expenditure of the trading subsidiary Haileybury Enterprises and costs incurred in raising voluntary resources and finance costs.
Charitable Activities include costs related to teaching, welfare, premises, support, awards and prizes. All department costs which assist the primary objective of the college, being the provision of education, are included in the support category.
Governance costs comprise the costs of running the charity, including strategic planning for its future development, audit and any legal advice for the Governors, and all costs of complying with constitutional and statutory requirements.
## **Unrestricted Funds**
Unrestricted Funds are those funds which are freely available for use in accordance with any of the College’s objects. They also include funds in the Composition of Fees Scheme but these are segregated to ensure that future obligations can be met.
## **Designated Funds**
Designated Funds represent certain funds set aside from Unrestricted Funds by Council for specific purposes.
## **Restricted Funds**
Restricted funds are monies received on trust for use in furtherance of a specific purpose determine by the donor. Restricted Funds include restricted monies raised from fundraising efforts for specific projects and the Special Fund. The Special Fund is of subsequent creation and ancillary to the main purpose of the
20
## Haileybury and Imperial Service College
College, to provide for a variety of purposes such as improvement in the fabric of a specific area, new equipment or memorial prizes and travel awards.
Investment income arising from the College’s endowment funds, other than those funds which are accounted for under Total Return, is credited to restricted funds to be applied in furtherance of the purposes of the endowments.
## **Endowed Funds**
Endowed Funds principally represent the current valuation of the original capital of ISE which was adopted as a special trust of Haileybury on 31 July 2000 under the terms of its existing trust deed. Council, as trustees of ISE, have the income available to make grants in accordance with the existing Trust deed.
In addition, HCT represents funds permanently set aside to provide scholarships and bursaries.
Any investment gains or losses on these funds are applied to the original endowment.
## **Total return investment accounting (“total return”)**
A Charity Commission Order dated 21 October 2012 authorises the College to adopt a ‘total return’ basis for the investment of its permanent endowment. Under the Total Return Order, the College can invest its permanent endowments without regard to the capital/income distinctions of trust law and with discretion to apply any part of the accumulated total return on the investment as income for spending each year. The College has adopted Total Return for the HCT fund and the ISE endowment fund represented by three portfolios held by separate fund managers.
The original endowment was identified on adoption of Total Return and its real value is protected by means of indexation in relation to the Retail Prices Index on an annual basis. The remainder of the fund balance is recognised as unapplied total return. Council has determined that no more than 50% of the unapplied total return should be made available for application in any one year. Funds are transferred from the unapplied total return in furtherance of the College’s objects on a case by case basis, with all such transfers approved by Council.
## **College buildings and equipment**
## **Capitalisation and replacement**
The original College land and buildings are carried at original purchase cost together with subsequent improvements as the Council consider it is not appropriate to apply a modern value to such property. The College is responsible for keeping these properties in fit and useful condition and these costs are written off as incurred, except where the expenditure provides an enhancement of the economic benefits of the asset or where a separately depreciating component of a tangible asset is replaced or restored.
Nonmaterial items are written off as expenditure upon acquisition.
## **Depreciation**
Depreciation is applied to all of the College’s fixed assets apart from land, which is considered to have an indefinite useful life. Depreciation is provided at rates to write off the excess of cost over estimated residual amount over their estimated useful lives as follows:
21
## Haileybury and Imperial Service College
Freehold buildings 50 or 100 years Organ and piano (included in equipment and machinery) 50 years Fixtures and fittings 5 - 10 years Equipment and machinery 4 to 10 years Vehicles 4 or 5 years Educational equipment 5 years Electronic equipment 4 years IT and computers 3 - 5 years
An impairment review has been carried out on those assets with an estimated useful life of over 50 years and the Council is satisfied that having considered both realisable value and value in use their value has not been materially impaired.
The current threshold for the capitalisation of expenditure is £1,500.
## **Investments**
Financial investments are stated at fair value, which is the bid price at the balance sheet date.
The College’s investment in its subsidiary company is stated at cost.
## **Financial instruments**
Basic financial instruments are initially recognised at transaction value and subsequently measured as amortised with the exception of investments which are held at fair value.
Financial assets held at amortised cost comprise cash at bank and in hand together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital.
Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions, Assets and liabilities held in foreign currency are translated to GBP at the balance sheet date at an appropriate year end and exchange rate.
## **Composition of fees**
In preparation of these accounts the benefit to parents is assumed to accrue on a straight line basis evenly over the period between receipt of the capital sum and the payment of the final liability.
## **Pension schemes**
The College contributes to the Teachers’ Pension Scheme at rates set by the Scheme Actuary and advised to the College by the Scheme Administrator. The scheme is a multi-employer scheme and has been accounted for as a defined contribution scheme because the College’s share of the overall scheme assets and liabilities cannot be reliably determined.
The College also contributes to a money purchase pension scheme, administered by the Pensions Trust, for support staff at between 5% and 10% of annual basic pay depending on their role. The College also contributes to some personal pension schemes.
22
## Haileybury and Imperial Service College
## **Finance and operating leases**
Costs in respect of operating leases are charged on a straight line basis over the lease term. Benefits received and receivable as an incentive to sign operating lease are similarly spread on a straight line basis over the lease term.
Leasing agreements, which transfer to the College substantially all the benefits and risks of ownership of an asset, are treated as if the asset had been purchased outright. The assets are included in fixed assets and the capital element of the leasing commitments is shown as obligations under finance leases. The lease rentals are treated as consisting of capital and interest elements. The capital element is applied to reduce the outstanding obligations and the interest element is charged against profit in proportion to the reducing capital element outstanding. Assets held under finance leases are depreciated over their lease term to their expected residual values.
23
## Haileybury and Imperial Service College
## Notes to the Accounts
For the Year Ended 31 August 2023
## **1 Charitable Activities - School Fees Receivable**
|**School fees receivable comprised:**
School fees
Less total scholarships, bursaries and allowances
Add back: scholarships and bursaries paid for by designated funds
Add back: scholarships and bursaries paid for by restricted funds -
note 5(b)|**2023**
**£'000**
**31,760**
**(2,591)**
**29,169**
**44**
**26**
**29,239**|2022
£'000
29,350
(2,588)|
|---|---|---|
|||26,762
50
56|
|||26,868|
Scholarships, bursaries and other awards and allowances were awarded to 295 pupils (2022: 253). Within this means-tested bursaries totalling £993,015. were awarded to 56 pupils (2022: £1,055,679 to 59 pupils).
## **2 Ancillary Trading**
|Deposits retained
Pupil transport charges
Registration fees
Other
**3 Non-Ancillary Trading**
HEL trading income (Note 10a)
Property income
Sundry sales and recovered costs
Miscellaneous income
**Total non-ancillary trading income**
Expenditure of HEL (including gift aid) (note 10a)
Less: intra-group turnover, eliminated on consolidation
Less HEL expenditure included in other expenditure
**Non-ancillary trading expenditure**|**2023**
**£'000**
**92**
**269**
**129**
**91 **
**581**
**2023**
**£'000**
**1,567**
**18**
**289**
**11**
**1,885**
**2023**
**£'000**
**1,213**
**(392)**
**821**
**(155)**
**666**|2022
£'000
210
234
72
176|
|---|---|---|
|||692|
|||2022
£'000
820
50
448
11|
|||1,329|
|||2022
£'000
1,484
(1,093)|
|||391
(224)|
|||167|
24
## Haileybury and Imperial Service College
## **4 Grants and Donations**
|**4 Grants and Donations**|||
|---|---|---|
|Legacies
Other grants and donations
Withdrawal from investments under Total Return|**2023**
**£'000**
**(300)**
**390**
**147**
**237**|2022
£'000
650
76
244|
|||970|
## **5 Analysis of Expenditure**
## **(a) Expenditure on**
|**Raising funds**
Non-ancillary trading
Financing costs
Investment management
Fundraising
**Total costs of raising funds**
**Charitable activities**
**Education**
Teaching
Welfare
Premises repair and maintenance
Support costs and governance
Awards and prizes
**Total charitable activities**
**Total expenditure**
**Comparative figures**
**Raising funds**
Non-ancillary trading
Financing costs
Investment management
Fundraising
**Total costs of raising funds**
**Charitable activities**
**Education**
Teaching
Welfare
Premises repair and maintenance
Support costs and governance
Awards and prizes
**Total charitable activities**
**Total expenditure**|Staff
costs
£’000
308
-
-
176
484
11,582
839
2,528
2,580
-
17,529
18,013
Staff
costs
£’000
96
-
-
152
248
10,717
762
2,360
2,764
-
16,603
16,851|Other
costs
£’000
358
115
96
13
582
1,546
2,899
3,824
2,431
70
10,770
11,352
Other
costs
£’000
72
15
116
22
225
1,480
3,024
3,359
2,303
128
10,294
10,519|Depreciation
£’000
-
-
-
-
-
-
-
1,798
-
-
1,798
1,798
Depreciation
£’000
-
-
-
-
-
-
-
1,675
-
-
1,675
1,675|**2023**
**£’000**
**666**
**115**
**96**
**189**|
|---|---|---|---|---|
|||||**1,066**|
|||||**13,128**
**3,738**
**8,150**
**5,011**
**70 **|
|||||**30,097**|
|||||**31,163**|
|||||2022
£’000
**168**
**15**
**116**
**174**|
|||||**473**|
|||||**12,197**
**3,786**
**7,394**
**5,067**
**128**|
|||||**28,572 **|
|||||**29,045**|
25
## Haileybury and Imperial Service College
## **5 Analysis of Expenditure (continued)**
|**(b) Awards and prizes**
**2023**
**£'000**
**From restricted funds:**
Bursaries and scholarships
**26**
**From unrestricted/designated funds:**
Bursaries and scholarships
**40**
Prizes and leaving awards
**4**
Other awards
**-**
**70 **
**(c) Governance included in support costs**
Auditors' remuneration:
**2023**
**£'000**
For audit
**29**
Other services
**10**
**39**
Expenses were reimbursed to trustees, as follows:
**2023**
**No.**
**2023**
**£'000**
2022
No.
**Travel**
**11**
**5**
11|2022
£'000
56
50
13
9|
|---|---|
||128|
||2022
£'000
27
16|
||43|
||2022
£'000
4|
## **6 Employees’ Remuneration**
The total staff costs, charged as an expense in the income and expenditure account, are:
|Wages and salaries
Social security costs
Pension contributions
Other staff costs
Aggregate employee-benefits of key management personnel|**2023**
**£’000**
**13,972**
**1,527**
**2,162**
**17,661**
**353**
**18,014**
**£**
**590,376 **|2022
£’000
13,192
1,344
1,875|
|---|---|---|
|||16,411
440|
|||16,851|
|||£|
|||381,647|
The average number of employees in the period on a headcount was 436 (2022:432).
The average full-time equivalent (FTE) number of employees in the period was 336 (2022: 329) out of which the number of teaching employees (FTE) in the period was 129 (2022: 128).
## **Staff by area**
|Teaching
Welfare
Premises
Support
Total|**2023**
**237**
**30**
**102**
**67**
**436 **|2022|
|---|---|---|
|||235|
|||29|
|||106|
|||62|
|||432|
26
## Haileybury and Imperial Service College
## **6 Employees’ Remuneration (continued)**
The number of employees whose emoluments, as defined for taxation purposes (basic pay and benefits in kind), amounted to over £60,000 in the period was as follows:
|The number of employees whose emoluments, as defined for taxation purposes (basic pay and benefits in kind),
amounted to over £60,000 in the period was as follows:|The number of employees whose emoluments, as defined for taxation purposes (basic pay and benefits in kind),
amounted to over £60,000 in the period was as follows:|
|---|---|
|**2023**
**No.**
2022
No.||
|£60,001 - £70,000
**16**|16|
|£70,001 - £80,000
**7**|6|
|£80,001 - £90,000
**3**|2|
|£90,001 - £100,000
**2**|3|
|£100,001 - £110,000
**2**|2|
|£140,001 - £150,000
**1**|1|
|£150,001 - £160,000
**1**|-|
|£230,001 - £240,000
**1**|1|
Pension contributions in respect of employees whose emoluments amounted to more than £60,000 were paid as follows:
- £419,554 (2022: £398,090) to the Teacher's Pension Agency in respect of 24 employees (2022: 22 employees).
- • £10,634 (2022: £25,645) to personal pension schemes in respect of 1 employee (2022: 2 employees).
- £83,423 (2022: £39,963) to TPT Retirement Solutions, a company pension scheme, in respect of 8 employees (2022: 6 employees).
During the period there were redundancy or termination payments made which amounted to £8,410 (2022 £34,360). There were no amounts outstanding at the period end.
No trustees received remuneration during the year.
## **7 Pension Schemes**
## **(a) Teachers’ Defined Benefit Scheme**
The School participates in the Teachers' Pension Scheme ("the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £1.8m (2022: £1.7m).
The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers' Pensions Regulations 2010 (as amended) and The Teachers' Pension Scheme Regulations 2014 (as amended). Members contribute on a "pay as you go" basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary's Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2020 and the Valuation Report, which was published in October 2023.
Following the McCloud judgement, the remedy proposed that when benefits become payable, eligible members can select to receive them from either the reformed or legacy schemes for the period 1 April 2015 to 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the greater benefits, and in preparing the 2020 valuation have valued the 'greater value' benefits for groups of relevant members.
The valuation confirmed that the employer contribution rate for the TPS would increase from 23.6% to 28.6% from 1 April 2024. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 28.68%.
27
## Haileybury and Imperial Service College
## **7 Pension Schemes (continued)**
## **(b) The Pensions Trust's Growth Plan**
The School participates in the scheme, a multi-employer scheme which provides benefits to some 638 nonassociated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the School to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.
The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The scheme is classified as a 'last-man standing arrangement'. Therefore the School is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:
## **Deficit contributions**
From 1 April 2022 to 31 January 2025: £3,312,000 per annum (payable monthly)
Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.
Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:
## **Deficit contributions**
£11,243,000 per annum (payable monthly and increasing by 3% From 1 April 2019 to 30 September 2025: each on 1st April)
The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.
Where the scheme is in deficit and where the School has agreed to a deficit funding arrangement the School recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.
## **Present values of provision**
||31|August 2023|31 August 2022|31 August 2021|
|---|---|---|---|---|
|||(£s)|(£s)|(£s)|
|Present value of provision||28,887|48,707|232,966|
28
## Haileybury and Imperial Service College
## **7 Pension Schemes (continued)**
**Reconciliation of opening and closing provisions**
||**Period Ending**|**Period Ending**|
|---|---|---|
||31 August 2023|31 August 2022|
||(£s)|(£s)|
|Provision at start of period|48,707|232,966|
|Unwinding of the discount factor (interest expense)|1,664|1,319|
|Deficit contribution paid|(21,197)|(47,146)|
|Remeasurements - impact of any change in assumptions|(287)|(2,147)|
|Remeasurements - amendments to the contribution schedule|-|(136,285)|
|Provision at end of period|28,887|48,707|
## **Income and expenditure impact**
||**Period Ending**|**Period Ending**|**Period Ending**|**Period Ending**|
|---|---|---|---|---|
||31 August|2023|31 August|2022|
||(£s)||(£s)||
|Interest expense||1,664||1,319|
|Remeasurements – impact of any change in assumptions||(287)||(2,147)|
|Remeasurements – amendments to the contribution schedule||-|(136,285)||
|Contributions paid in respect of future service*||*||*|
|Costs recognised in income and expenditure account||*||*|
* includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes. To be completed by the School.
## **Assumptions**
||31 August 2023|31 August 2022|31 August 2021|
|---|---|---|---|
||% per annum|% per annum|% per annum|
|Rate of discount|6.04|4.46|0.63|
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
29
## Haileybury and Imperial Service College
## **7 Pension Schemes (continued)**
## **Additional information**
The following schedule details the deficit contributions agreed between the School and the scheme at each year end period:
## _**Deficit contributions schedule**_
|**Year**|**ending**|**31**|**August**
**(£s)**|**2023**|**31**|**August**
**(£s)**|**2022**|**31**|**August 2021**
**(£s)**|
|---|---|---|---|---|---|---|---|---|---|
|Year|1||21,197|||21,197|||66,502|
|Year|2||8,832|||21,197|||68,497|
|Year|3|||||8,832|||70,552|
|Year|4|||||-|||29,905|
|Year|5|||||-|||-|
|Year|6|||||-|||-|
The School must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises.
It is these contributions that have been used to derive the School's balance sheet liability.
## **8 Transfers**
|**8 Transfers**||||
|---|---|---|---|
|Charity Commission loan repayments
Amounts drawn from endowments to fund SciTech
ISE dividend income
ISE UTR
HCT dividend income
HCT UTR
Scholarship and bursary awards
Capital projects funded by donations SciTech
Capital projects funded by donations Other
Transfers from special funds to unrestricted funds
Reclassification of funds
Total transfer|**Unrestricted**
**Funds**
**£'000**
(173)
4,513
251
76
55
71
26
150
26
12
55
**5,062**|**Restricted**
**Funds**
**£'000**
-
-
-
-
-
-
(26)
(150)
(26)
(12)
-
**(214)**|**Endowed**
**Funds**
**£'000**
173
(4,513)
(251)
(76)
(55)
(71)
-
-
-
-
(55)|
||||**(4,848)**|
Loan repayments relate to loans drawn between 2000 and 2002 from Endowed Investments, with the approval of the Charity Commission, for the purpose of constructing two boarding houses, Colvin and Melvill, repayable over 50 years.
30
## Haileybury and Imperial Service College
## **9 Tangible Fixed Assets - Consolidated and Charity**
|**Consolidated**
**Cost**
At 1 September 2022
Additions
Disposals
At 31 August 2023
**Accumulated depreciation**
At 1 September 2022
Charge for period
Disposals
At 31 August 2023
**Net book value at 31 August 2023**
Net book value at 31 August 2022
**Charity**
**Cost**
At 1 September 2022
Additions
Disposals
At 31 August 2023
**Accumulated depreciation**
At 1 September 2022
Charge for period
Disposals
At 31 August 2023
**Net Book Value at 31 August 2023**
Net book value at 31 August 2022|Land and
buildings
£'000
46,078
14,230
-
60,308
(10,529)
(750)
-
(11,279)
49,029
35,549
£'000
46,078
14,230
-
60,308
(10,529)
(750)
-
(11,279)
49,029
35,549|Fixtures
and
fittings
£'000
6,561
59
-
6,620
(1,743)
(371)
-
(2,114)
4,506
4,818
£'000
6,561
59
-
6,620
(1,743)
(371)
-
(2,114)
4,506
4,818|Equipment
and
machinery
£'000
7,939
800
-
8,739
(5,089)
(610)
-
(5,699)
3,040
2,850
£'000
7,939
800
-
8,739
(5,089)
(610)
-
(5,699)
3,040
2,850|Vehicles
£'000
690
46
-
736
(513)
(67)
**-**
(580)
156
177
£'000
690
46
**-**
736
(513)
(67)
-
(580)
156
177|**Total**
**£'000**
**61,268**
**15,135**
**-**|
|---|---|---|---|---|---|
||||||**76,403**|
||||||**(17,874)**
**(1,798)**
**-**|
||||||**(19,672)**|
||||||**56,731 **|
||||||**43,394**|
||||||**£'000**
**61,268**
**15,135**
**-**|
||||||**76,403**|
||||||**(17,874)**
**(1,798)**
**-**|
||||||**(19,672)**|
||||||**56,731 **|
||||||**43,394**|
Fixed assets under construction included in land and buildings is £16,041,565 (2021/22: £3,096,850), in fixtures and fittings is £nil (2021/22: £166,253), and in equipment and machinery is £nil (2021/22: £52,557).
The current valuation of buildings for insurance purposes is £282,163,742 (2022: £282,163,742).
Included in land and buildings above is land of approx. 2 acres, in relation to which Haileybury has entered into a lessor agreement with Legends Tennis Academy. This agreement has a 65-year term of which 14.6 years have lapsed.
31
## Haileybury and Imperial Service College
|**10 Investments – Consolidated and Charity**|**10 Investments – Consolidated and Charity**|**2023**
**£'000**|**2023**
**£'000**|2022
£'000|
|---|---|---|---|---|
|**Group investments**|||||
|Balance at 1 September 2022||**20,605**||22,736|
|New money invested||**173**||-|
|
Payments to acquire investments (includes cash held by Fund
Managers – see “Investments comprise” below)||**(18,803)**||(11,750)|
|Proceeds from sale of investments||**18,952**||12,298|
|Reinvested income||**-**||24|
|Amounts extracted||**(6,153)**||(362)|
|Investment management fees||**(96)**||(116)|
|(Decrease)/increase in value of investments||**(245)**||(2,225)|
|**Group investments at 31 August 2023**||**14,433**||20,605|
|Investments in subsidiaries||1||1|
|**College investments at31 August 2023**
||**14,434**
||20,606|
||||||
|**Investments comprise**|||||
|Fixed interest
Equities
Alternative assets
Commercial property funds
Commodities
Infrastructure
Other
Cash
**Group investments**
Investment in subsidiaries
**College investments**||**1,905**
**11,559**
**401**
**177**
**-**
**-**
**223**
**168**
**14,433**
**1**
**14,434**||1,221
11,671
746
376
192
222
-
6,177|
|||||20,605
1|
|||||20,606|
The main investments and Fees in Advance Scheme investment deposits were managed for the College by Rathbones, Rothschild and Sarasins Investment Managers. The investments are actively managed and the performance is reviewed by the Investment Committee.
The investment management costs are charged to the endowed funds where they relate to the management of the endowed portfolio. The income arising from the endowed portfolio, other than the investments accounted for under Total Return, forms part of the restricted funds.
32
Haileybury and Imperial Service College
## **10a Summary of Activities of Haileybury Enterprises Limited**
Haileybury Enterprises Limited (Registered No. 2880179) is a company wholly owned by Haileybury, which continues to supply services to the College and to carry out residential lettings, sports complex lettings, international educational advice and consultancy, construction and property dealing. The results of HEL for the year and a summary of its balance sheet position are as follows:
|**Summary statement of financial activities**
Turnover
Cost of sales
Gross profit
Other operating income
Administrative expenses
**Operating profit**
Interest payable and similar charges
**Profit on ordinary activities before tax**
Tax on profit on ordinary activities
**Profit on ordinary activities after tax**
Amount donated by gift aid to Haileybury relating to prior year
Retained profit for the year after tax and gift aid
Retained profit brought forward at 1 September 2022
**Retained profit carried forward at 31 August 2023**
**Summary balance sheet**
Current assets
Current liabilities
**Nets assets of HEL at 31 August 2023 were**|**2023**
**£'000**
**1,567**
**(666)**
**901**
**-**
**(253)**
**648**
**(5)**
**643**
**643**
**(289)**
**354**
**372 **
**726**
**2023**
**£'000**
**893**
**(167)**
**726**|2022
£'000
820
(164)|
|---|---|---|
|||656
-
(338)|
|||318
(1)|
|||317
(4)|
|||313|
|||(977)|
|||(664)|
|||1,036|
|||372|
|||2022
£'000
426
(53)|
|||373|
## **11 Debtors**
|**11 Debtors**||||||
|---|---|---|---|---|---|
|School fees
Trade debtors
Sundry debtors
Amount due from Lambrook
Prepayments and accrued income
Due within one year
Amount due from Lambrook
Due after more than one year
Total debtors|**Consolidated**|||**Charity**||
||**2023**
**£'000**
**51**
**137**
**137**
**25**
**1,470 **
**1,820**
**658 **
**658 **
**2,478 **|2022
£'000
32
90
518
25
2,119
2,784
682
682
3,466||
**2023**
**£'000**
**51**
**-**
**57**
**25**
**1,462**
**1,595**
**658 **
**658 **
**2,253**|
2022
£'000|
||||||32
2
468
25
2,062|
||||||2,589|
||||||682|
||||||682|
|||||||
||||||3,271|
The amounts due to Haileybury represent interest free Charity Commission approved loans to Lambrook School. There is security with a charge over property at Lambrook. The repayment terms were 50 years of which there are 30 and 28 years left respectively.
33
## Haileybury and Imperial Service College
## **12 Creditors Payable Within One Year**
|**12 Creditors Payable Within One Year**||||||
|---|---|---|---|---|---|
|
Trade creditors
Amount due to Haileybury Enterprises Ltd
Finance lease liability
Fees paid in advance
Taxation and social security
Other creditors and accruals
Composition of fees due (note 14)
Pupil fee deposits held|**Consolidated**|||**Charity**||
||**2023**
**£’000**
**3,322**
**-**
**58**
**7,115**
**380**
**1,166**
**48**
**2,700**
**14,789**|2022
£’000
3,235
-
195
6,086
339
2,037
55
2,011
13,958||
**2023**
**£’000**
**3,252**
**327**
**58**
**7,115**
**380**
**1,069**
**48**
**2,700**
**14,949**|
2022
£’000|
||||||3,257
-
195
6,086
339
2,030
55
2,011|
||||||13,973|
## **13 Creditors Payable After One Year**
|**13 Creditors Payable After One Year**||||||
|---|---|---|---|---|---|
|Finance lease liability
Other creditors and accruals
Revolving credit facility
Composition of fees due (note 14)|**Consolidated**|||**Charity**||
||**2023**
**£'000**
**-**
**29**
**1,500**
**-**
**1,529**|2022
£'000
65
48
-
48
161||
**2023**
**£'000**
**-**
**29**
**1,500**
**-**
**1,529**|
2022
£'000|
||||||65
48
-
48|
||||||161|
Revolving credit facility refers to the amount due to Barclays Bank PLC under a five-year revolving credit facility agreement signed in November 2022.
## **14 Composition of Fees Scheme**
Parents may pay to the College up to seven years' fees in advance, which may be refunded subject to specific conditions on the receipt of one term's notice, assuming pupils remain in the College. Advance fees will be applied as follows:
|Within 2 to 5 years
Within 1 to 2 years
Within 1 year (see note 15 below)|**2023**
**£’000**
**-**
**-**
**-**
**48 **
**48 **|2022
£’000
48
**-**|
|---|---|---|
|||48
55|
|||103|
The balance represents the accrued liability under the contracts with parents. The capital movements during the year were:
|Balance at 1 September 2022
New contracts
Amounts accrued to contracts
Amounts utilised in payment of fees to the College
Balance at 31 August 2023|
|
|**Total**
**£’000**
103
-
-|
|---|---|---|---|
||
|
|103
(55)|
||||**48 **|
34
## Haileybury and Imperial Service College
## **15 Funds**
## **15a Allocation of the Group Net Assets**
|2023
Endowed funds (note 15b)
Restricted funds (note 15d)
Unrestricted funds (note 15e)
Designated funds
General funds
2022
Endowed funds
Restricted funds
Unrestricted funds
Designated funds
General funds|Fixed
assets
£'000
266
-
-
-
56,465
56,731
Fixed
assets
268
-
-
-
43,125
43,393|Investments
£'000
13,800
433
-
-
199
14,432
Investments
18,522
490
-
1,356
237
20,605|Net
current
assets
£’000
767
961
-
399
(9,391)
(7,264)
Net
current
assets
940
1,057
-
440
(4,769)
(2,332)|Long term
liabilities
£'000
-
-
**-**
**-**
(1,529)
(1,529)
Long term
liabilities
-
-
**-**
**-**
(161)
(161)|**Fund**
**Balances**
**£'000**|
|---|---|---|---|---|---|
|||||||
||||||**14,833**
**1,394**
**-**
**399**|
||||||**45,744**|
||||||**62,370 **|
||||||**Fund**
**Balances**
**19,730**
**1,547**
**-**
**1,796**
**38,432 **
**61,505**|
Note: General funds includes the Fees in Advance Scheme.
## **15b Endowed Funds – Consolidated and Charity**
|HCT – Total Return
HCT - Other
ISE – Total Return (note 15c)
ISE – Other
HCT
ISE
ISE total return transfer|Balance 1
September
2022
£’000
-
2,509
16,191
1,030
19,730
Balance 1
September
2021
£'000
2,814
11,410
7,372
21,596|Incoming
resources
£’000
55
-
251
-
306
Incoming
resources
£'000
50
78
(78)
50|Resources
expended
£’000
(13)
(2)
(79)
(0)
(94)
Resources
expended
£'000
(67)
(54)
(42)
(163)|Transfers &
investment
gains/(losses)
£’000
2,065
(2,227)
(4,692)
(255)
(5,109)
Transfers &
investment
gains/(losses)
£'000
(288)
4,757
(6,222)
(1,753)||**Balance**
**31 August**
**2023**
**£’000**
**2,107**
**280**
**11,671**
**775**
**14,833**
**Balance**
**31 August**
**2022**
**£'000**
**2,509**
**16,191**
**1,030 **|
|---|---|---|---|---|---|---|
||||||||
||||||||
|||||||**19,730 **|
HCT represents funds permanently invested to provide scholarships and bursaries. ISE funds are principally the current valuation of the original capital which was transferred to H&ISC on July 2000. All investment gains and losses on these funds are applied to the endowment.
35
## Haileybury and Imperial Service College
## **15 Funds (continued)**
## **15c Total Return accounting for investments**
The Governors have adopted a policy of total return accounting for the ISE No 1, ISE No 3 & HCT Funds. This permits part of the capital gain to be drawn as income to meet the needs of current beneficiaries while protecting the capital and so future calls on the funds. The annual increase of the protected sum is calculated with reference to the CPI and the total return from endowment is calculated by reference to the FTSE all share yield. In addition, any amount of return to be drawn from invested funds is limited to 50% of the amount above the protected increase.
|**Balance at 31 August 2022**
Recoupment of loan
Investment income
Investment gains/(losses)
Investment management costs
Net movement in the reporting period
Allocation to Trust for Investment (at CPI inflation)
SciTech capital drawdown
Transfer to income funds for application
**Balance at 31 August 2023**
**Balance at 31 August 2022**
HCT Fund balances on initial adoption of Total Return
Recoupment of loan
Investment income
Investment gains/(losses)
Investment management costs
Net movement in the reporting period
Allocation to Trust for Investment (at CPI inflation)
SciTech capital drawdown
Transfer to income funds for application
**Balance at 31 August 2023**|**ISE Funds**
**Trust for**
**Investment**
**£’000**
**14,230**
173
-
-
-
173
948
(4,513)
-
**10,838 **
**HCT Funds**
**Trust for**
**Investment**
**£’000**
**-**
**1,492**
-
-
-
-|**ISE Funds**
**Unapplied**
**Total Return**
**£’000**
**1,961**
-
251
(25)
(79)
147
(948)
-
(327)
**833**
**HCT Funds**
**Unapplied**
**Total Return**
**£’000**
**-**
**731**
-
55
(87)
(13)|**ISE Funds**
**Total**
**£’000**
**16,191**
**173**
**251**
**(25)**
**(79)**
**320**
**-**
**(4,513)**
**(327)**
**11,671 **
**HCT Funds**
**Total**
**£’000**
**-**
**2,223**
**-**
**55**
**(87)**
**(13)**|
|---|---|---|---|
||-
99
-
-
**1,591 **|(45)
(99)
-
(126)
**461**|(45)
**-**
**-**
**(126)**
**2,052 **|
36
## Haileybury and Imperial Service College
## **15 Funds (continued)**
|**Balance at 31 August 2022**
HCT Fund balances on initial adoption of Total Return
Recoupment of loan
Investment income
Investment gains/(losses)
Investment management costs
Net movement in the reporting period
Allocation to Trust for Investment (at CPI inflation)
SciTech capital drawdown
Transfer to income funds for application
**Balance at 31 August 2023**|**Total Funds**
**Trust for**
**Investment**
**£’000**
**14,230**
**1,492**
**173**
**-**
**-**
-|**Total Funds**
**Total Funds**
**Unapplied**
**Total Return**
**Total**
**£’000**
**£’000**
**1,961**
**16,191**
**731**
**2,223**
**-**
**173**
**306**
**306**
**(112)**
**(112)**
**(92)**
**(92)**|
|---|---|---|
||173
**1,047**
**(4,513)**
**-**
**12,429**|102
275
**(1,047)**
**-**
**-**
**(4,513)**
**(453)**
**(453)**
**1,294**
**13,723**|
Repayment refers to interest free Charity Commission approved loans.
The transfer to income funds for application represents £306k of investment income received in the year and £147k of previously accrued unapplied total return released by the Governors.
The Governors took the decision to apply Total Return accounting for the HCT investments with effect from 01 September 2022. The balances on initial adoption of Total Return accounting have been determined by reference to the original amounts on the inception of the fund, indexed for CPI inflation on the same basis as the ISE Funds.
## **15d Restricted Funds – Consolidated and Charity**
|Scholarships, bursaries
and allowances
HCT
ISE
Scholarships, bursaries
and allowances
HCT
ISE|Balance 1
September
2022
£'000
1,463
32
52
1,547
Balance 1
September
2021
£'000
1,260
(58)
51
1,253|Incoming
resources
£'000
89
-
1
90
Incoming
resources
£'000
675
33
252
960|Resources
expended
£'000
(8)
-
-
(8)
Resources
expended
£'000
(3)
-
-
(3)|Transfers &
investment
gains/(losses)
£'000
(150)
(32)
(53)
(235)
Transfers &
investment
gains/(losses)
£'000
(469)
57
(251)
(663)||**Balance 31**
**August**
**2023**
**£'000**
**1,394**
**-**
**-**|
|---|---|---|---|---|---|---|
|||||||**1,394**|
|||||||**Balance**
**31 August**
**2022**
**£'000**
1,463
32
52|
|||||||1,547|
Grants and allowances include restricted monies raised from development efforts for specific projects, and also represent the Special Fund, set aside to provide books for the library, memorial prizes and travel grants.
37
## Haileybury and Imperial Service College
## **15 Funds (continued)**
## **15e Unrestricted Funds – Consolidated and Charity**
|General fund
Designated funds
HEL
General fund
Designated funds
HEL|Balance 1
September
2022
38,432
38,432
1,356
440
1,796
Balance 1
September
2021
37,322
37,322
1,344
1,036
2,380|Incoming
resources
30,300
30,300
10
1,567
1,577
Incoming
resources
28,345
28,345
50
815
865|Resources
expended
(30,240)
(30,240)
-
(821)
(821)
Resources
expended
(28,482)
(28,482)
(7)
(386)
(393)|Transfers &
investment
gains/(losses)
7,252
7,252
(1,366)
(787)
(2,153)
Transfers &
investment
gains/(losses)
1,247
1,247
(31)
(1,025)
(1,056)|**Balance 31**
**August**
**2023**|
|---|---|---|---|---|---|
||||||**45,744**|
||||||**45,744**|
||||||**-**
**399**|
||||||**399**|
||||||**Balance 31**
**August**
**2022**
**38,432 **
**38,432 **
**1,356**
**440 **
**1,796 **|
Unrestricted funds are held in accordance with the Charter of the College allowing the capital and revenue to be used as deemed appropriate.
Designated Funds represent an amount set aside historically from Unrestricted Funds and separately invested to fund scholarships and bursaries. HEL represents the reserves of Haileybury Enterprises Ltd, the trading subsidiary of Haileybury to reflect the fact that profits in HEL are covenanted as donations to the Charity.
## **16 Reconciliation of Net Income to Net Cash Flow from Operating Activities**
|Net income/(expenditure) from operations
Investment income and interest received
Finance costs
Investment management charges
Depreciation charges
Decrease/ (increase) in stocks
Increase/(decrease) in RCF
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash inflow from operating activities|**2023**
**£'000**
**(331)**
**115**
**96**
**1,798**
**(55)**
**1,500**
**988**
**699**|**2023**
**£'000**
**1,110**
**4,810**
**5,920**|2022
£'000
(365)
15
116
1,675
(9)
-
(772)
299|2022
£'000|
|---|---|---|---|---|
|||||1,179
959|
|||||2,138|
38
## Haileybury and Imperial Service College
## **17 Analysis of Cash and Cash Equivalents**
|**17 Analysis of Cash and Cash Equivalents**|||
|---|---|---|
|Cash at bank
Cash held within investment portfolio|**2023**
**£’000**
**4,826**
**168**
**4,994**|2022
£’000
7,994
6,177|
|||14,171|
## **18 Analysis of Net Debt**
|Cash and cash equivalents
**Sub-total**
Finance lease
Revolving credit facility
**Net funds**|**At 1 Sept**
**2022**
**£’000**
14,171
**14,171**
(260)
-
**13,911**|**Cash**
**flows**
**£’000**
(9,177)
**(9,177)**
202
(1,500)
**(10,475)**|**Other**
**movements**
**£’000**
-
**-**
**-**|**At 31**
**August**
**2023**
**£’000**
**4,994**
**4,994**
(58)
(1,500)|
|---|---|---|---|---|
|||||**3,436 **|
## **19 Capital Commitments**
Capital commitments amounting to £3,649,000 (2022: £17,458,309) existed at 31 August 2023, representing contracts entered into but not yet complete.
## **20 Operating and Finance Leases**
At 31 August 2023 Haileybury has future minimum lease commitments under non-cancellable operating lease, as follows:
|**Hire of land and buildings**
Due within 1 year
Due within years 2 to 5|**2023**
**£’000**
**1**
**1**
**2**|2022
£’000
1
1|
|---|---|---|
|||2|
At 31 August 2023 there were obligations under finance leases included in creditors as follows:
|Due within 1 year
Due within years 2 to 5
Total|**2023**
**£’000**
**58**
**-**
**58 **|2022
£’000
195
65|
|---|---|---|
|||260|
## **21 Related Party Transactions**
In the period, the College charged £103,300 (2022: £116,604) to HEL for the provision of staff and the administrative services.
At 31 August 2023 the College owed HEL £327,222 (2022 HEL owed the College £66,823) on an intercompany loan. Apart from Governors’ reimbursed expenses disclosed in note 5, there were no other related party transactions in the period (2022: £nil).
39
## Haileybury and Imperial Service College
Governing Board for the Year Ended 31 August 2023
## **Non-Council Governors**
**Visitor** The Most Revd and Rt Hon The Lord Archbishop of Canterbury
**President** The Rt Revd The Bishop of St Albans
## **Trustees and Members of Council**
7 Mrs C F Avery MA (Oxon) PGCE NPQH 7 Mr A D Brown MA (Cantab) PGCE _(stood down June 2023)_ 6, 12, + Dr A Drewett JP BSc PhD 5, 6, 10, 14 Mr G A Ellison MA (Oxon) 13 Mr N D Gilbert BA 13, 14 Mrs J Gough OBE MA (Cantab) ACA 6, 10 Mrs H Grimberg LLB 11 The Revd Canon S Harvey MA (Oxon) PGCE NPQH 9, 11, 12 The Revd P Hunt BA MA MTh Mr R J G Madden MA (Cantab) ACA 4, 5, 6, 8, 10, 12 Mr R P Munn MA (Cantab) FRGS 11 Dr R Olowookere MRCGP 14 Mr T I Page-Ratcliff FNAEA 11 Ms T Pandya BSc 7 The Revd D Peters BA MA (Oxon) DipTh (Oxon) 9 Ms R Phelps KC BA (Oxon) BCL (Oxon) 12 Ms C Phillips BSc 1, 9, 10, 12, + Mr A J T Pilgrim BSc FCA 5, 6 Mr M Rayfield BSc ACA 6, 13 Dr N P V Richardson MA (Cantab) PhD, PGCE 7, 10, 12 Mr S C Roberts MA (Oxon) PGCE (Oxon) 2, 3, 10 Mr C N C Sherwood MA (Cantab) MBA MSc 8, Mr W D Walker-Arnott BA 7 Mr S A Westley MA (Oxon)
Mr R M Abel Smith Dr C B Challacombe MB BS MRCS LRCP
Lord Clement-Jones CBE Dr E S Cleobury MA PhD
Mrs M Evans BA
Mr M R B Gatenby MA FCA The Revd Dr A A Macintosh DD
5, 8, 12, +
Mr D F Macleod FCA
Sir Bruce MacPhail MA MBA FCA Mr C G Macpherson
Sir Clive Martin OBE TD DL
Mr I H McCorquodale MA _(deceased February 2023)_
General The Lord Ramsbotham GCB CBE _(deceased December 2022)_
Mr G C Smith MA DipEd
Mr G W Staple CB KC
The Revd A J Templeman MA DipTh The Revd The Hon P M Templeman MA BTh
Mr J D Thornton BSc MA CEng MICE MCIOB
Major General T P Toyne Sewell DL The Rt Hon Lord Trefgarne PC
Mr J C G Trower MA
Mr E I Walker-Arnott KC (Hon) LLM
**Master** Mr M A R Collier MA (Oxon)
## **Bursar and Clerk to the Governors** + Mr R M Schofield BA FCA
## **Denotes:**
- 1 Chairman of Council 2 Chairman of Nominations and Governance Committee 3 Deputy Chairman
- 4 Treasurer
- 5 Member of Audit and Risk Committee 6 Member of Finance and General Purposes Committee 7 Member of Education Committee 8 Member of Investment Committee and Trustee of Haileybury Charitable Trust
- 9 Member of Nominations and Governance Committee 10 Member of HR and Remuneration Committee
- 11 Member of Safeguarding and Wellbeing Committee 12 Member of the International Committee
- 13 Member of the Development Committee 14 Member of the Estate Committee
- + Director of Haileybury Enterprises Ltd
40
## Haileybury and Imperial Service College
Advisers for the Year Ended 31 August 2023
**Bankers** _Not for Profit & Education, Commercial & Private Banking, NatWest_ 2nd floor, Argyll House, 246 Regent Street, London, W1B 3PB _Education and Public Sector, Barclays_ Abacus House, Castle Park, Castle Hill, Cambridge, CB3 0AN **Investment Managers** _Rathbone Investment Management_ 8 Finsbury Circus, London EC2M 7AZ _Rothschild and Co_ New Court, St Swithin’s Lane, London EC4N 8AL _Sarasin & Partners LLP_ Juxon House, 100 St Paul’s Churchyard, London EC4M 8BU **Solicitors** _Bird and Bird LLP_ 12 New Fetter Lane, London EC4A 1JP _Fragomen LLP_ 1st Floor, 95 Gresham St, London EC2V 7NA _HCR Hewitsons_ 50 - 60 Station Rd, Cambridge CB1 2JH _Veale Wasbrough Vizards LLP_ Narrow Quay House, Narrow Quay, Bristol BS1 4QA _Kate Hollyer - BSA group_ 167-169 Great Portland Street, 5th Floor, London, W1W 5PF **Pension Advisers** _Lane Clark & Peacock_ 95 Wigmore Street London W1U 1DQ **Auditors** _Haysmacintyre LLP_ 10 Queen Street Place, London EC4R 1AG **Insurance Brokers** _Endsleigh Insurance_ Unit 21, Dean House Farm, Church Road, Newdigate, Surrey, RH5 5DL _Marsh_ 1 Tower Place West, Tower Place, London, EC3R 5BU
## **Bankers**
41