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2023-08-31-accounts

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS

REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF

JOHN LYON

REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 AUGUST 2023

CHARITY NUMBER: 310033

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

CONTENTS

Page Governors 1 - 2 Corporation Information Report of the Governors 4 - 21 Statement of Governors’ Responsibilities 22 Report of the Independent Auditors 23 - 25 Consolidated Statement of Financial Activities 26 Balance Sheets 27 Consolidated Cash Flow Statement 28 - 30 Accounting Policies 31 - 35 Notes to the Financial Statements 36 – 70

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

GOVERNORS

Introduction

The Keepers and Governors of the Possessions Revenues and Goods of the Free Grammar School of John Lyon, within the town of Harrow-on-the- Hill was established by Royal Charter granted by Elizabeth I to John Lyon on 19 February 1572 and later incorporated by statute (referred to as the “ Corporation ”). The Corporation is a registered charity, number 310033.

The Corporation comprises of Harrow School (an independent boarding school for boys) and The John Lyon School (an independent co-educational day school) and has three wholly-owned subsidiary trading companies.

The Corporation controls the membership of The Harrow Development Trust, a separate fundraising charity (charity number 296097), raising funds for the development of facilities and bursaries at Harrow School. Appropriations from the Harrow Development Trust to Harrow School are made periodically. In accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities, the Harrow Development Trust is treated as a subsidiary charity of the Corporation and its Financial Statements are consolidated within the Corporation’s Financial Statements.

The Corporation is also the trustee of John Lyon’s Charity, a separate grant giving charity, benefitting children and young people who live in nine London Boroughs in North and West London. The John Lyon’s Charity registered charity number is 237725.

The entities are collectively known as “John Lyon’s Foundation” (named after the founder) and are governed by the members of the Corporation (referred to as the “ Foundation ”).

Consolidated Financial Statements

These Financial Statements of the Corporation comprise the activities of Harrow School and The John Lyon School, together with its charitable funds, its trading subsidiaries - Harrow School Enterprises Limited (“ HSEL ”), Harrow International Schools Limited (“ HISL ”) and Harrow Educational Investments Limited (“ HEIL ”) – and The Harrow Development Trust (“ HDT ”) and The John Lyon School Development Trust (“ JLSDT ”).

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GOVERNORS

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

Members and Officers

The current members or trustees (referred to as Governors) of the Corporation and those who served during the year ended 31 August 2023 and up to the date of this report are:

Nominated by:

Chairman Appointed 1 January 2023 D G P Eyton CBE MA FIOM[3] FIOD FRENG Retired 31 December 2022 J P Batting MA FFA Chairman, The John Lyon School Board of Governors G W J Goodfellow KC MA LLM Lord Chief Justice C G T Stonehill MA Retired 31 August 2023 J M P D Stroyan Mrs M S Brounger LLB A C Goswell BSc MRICS Deputy Chairman and Chairman, General Purposes Committee The Hon A Butler KC MA D J C Faber MA R T G Winter CBE BA FCA A D Hart LLB FRSA Retired 21 April 2023 Mrs C M Oulton MA PGCE Professor D J Payne MChem DPhil The Royal Society J P J Glover BA Sir J R Symonds CBE BA FCA Mrs H R Mould MA RGN Professor A D’Angour MA PhD ARCM M L Mrowiec MA Masters C Gallagher MA MSc Vice Admiral J P Kyd CBE BSc PGDip N J Enright MA MBA NPQH Dr S V Rawal PhD Appointed 1 September 2022 L J Halligan MPhil BSc Appointed 26 November 2022 Dr D A Taylor MBBS BSc MD FRCP Appointed 26 November 2022 M C Wallace BCom Appointed 16 March 2024 Mrs S A Huang MA MSc PGCE Appointed 25 November 2023 J C Seppala BA

Officers

Head Master, Harrow School W M A Land MA FLS FSB
Bursar, Harrow School J M Wood JP BA
Head, The John Lyon School R K Hardy PGCE MA MEd
Chief Operating Officer, The John Lyon School Cdr G R Mawdsley RN MA
Clerk to the Governors and General Counsel The Hon A C Millett MA
Chief Financial and Commercial Officer, John Lyon Foundation D H Curley MA MBA CPFA

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CORPORATION INFORMATION

Addresses

Harrow School

The John Lyon School

5 High Street Harrow-on-the-Hill Middlesex HA1 3HP

Middle Road Harrow-on-the-Hill Middlesex HA2 0HN

Advisers

Principal Bankers

Independent Auditors

Principal Solicitors

Principal Investment Advisers

National Westminster Bank plc Harrow Town Centre Branch 315 Station Road Harrow Middlesex HA1 2AD

PKF Littlejohn LLP Statutory Auditors 15 Westferry Circus Canary Wharf London E14 4HD

Cripps LLP 2nd Floor 80 Victoria Street London SW1E 5JL

Cambridge Associates Ltd 62 Buckingham Gate London SW1E 6AJ

Cazenove Capital Management 1 London Wall Place London EC2Y 5AU

Actuaries

Charity Number

XPS Pensions 11 Strand London WC2N 5HR

310033

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REPORT OF THE GOVERNORS Year ended 31 August 2023

CONSTITUTION

The Corporation’s constitution is contained in the original Elizabethan Charter (setting out its objects) and under governing statutes made pursuant to the Public Schools Act 1868 (as amended) and subsequent statutes made with the approval of His Majesty in Council, the latest of which was with the approval of Her Majesty in Council adopted by Governors on 8 June 2016.

Charitable Objects

The Charter is in Latin and a translation of the material parts of the objects are as follows:

“Whereas our beloved subject, John Lyon, of Preston, within the Parish of Harrow-on-the-Hill … hath purposed in his mind a certain Grammar School … to erect, found, and for ever to establish for the perpetual education teaching and instruction of Children and Youth of the said Parish … We therefore … do will, grant and ordain … that for ever hereafter there be and shall be one Grammar School in the Village of Harrowon-the-Hill … which shall be called the Free Grammar of John Lyon, for the bringing up, teaching and instruction of Children and Youth in Grammar, for all time hereafter coming …”

The recent 450th anniversary of Harrow School’s foundation and the upcoming 150th anniversary (in 2027) of the opening of The John Lyon School prompted the Governors to reflect on the activities of the Corporation and to conduct a thorough review of its operations as it shapes its future.

A key outcome of that review was that the Governors identified a need to update the Corporation’s historical objects using clearer and more modern form of language and restate them in the governing statutes. A public consultation was held in July 2023 and was followed in the current 2023/24 financial year with an application to the Court (approved by the Charity Commission) which was made on 9 November 2023.

The Corporation has established and administers bursaries, and acts as the trustee and manager of property, endowments, bequests and gifts given or established in pursuance of these objects.

The Governors remain mindful of the Corporation’s charitable obligations committing to provide public benefit and have given due consideration to the requirements of the Charities Act 2011 (as amended) and the guidance produced by the Charity Commission.

GOVERNANCE AND MANAGEMENT

Governance

The statutes provide for the governance of the Corporation, as follows:

The maximum number of Governors is restricted to twenty-five, of whom up to twenty-three are elected by the members of the Corporation. This group is expected to include a representative from each of Oxford and Cambridge Universities and the Royal Society, who are selected by the Governors. Two other Governors are nominated respectively by the Lord Chief Justice and the Head Master and the Masters of Harrow School. All Governors are elected for an initial term of five years and are eligible for re-election for a maximum of two further consecutive terms of up to five years. In exceptional circumstances a Governor can serve a further term of up to five years so long as no more than five Governors serve a fourth term at any one time.

The Governors are the governors of Harrow School and, within defined parameters, the governance of The John Lyon School is delegated by them to a separate Board of Governors, the members of which are appointed by the Governors.

The Governors, Officers and Advisers

The names of the current Governors and those who served during the year, and the Officers and Advisers to the Corporation are set out on pages 2 and 3.

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Governance (continued)

Recruitment and Training of Governors

The Foundation Selection Committee (see below) is responsible for considering nominations for future Governors, based on guidelines, which include a list of the skills and experience that should be represented by Governors.

The Clerk is responsible for the induction of new Governors who are briefed individually. Guidance and advice on effective trusteeship and updates with information about best practice are brought to the attention of Governors by the Clerk and other Officers.

Governance and Delegation to Committees

The Governors, meet as a board at least three times a year. They are ultimately responsible for the Foundation as a whole, ensuring that governance arrangements across all entities of the Foundation are appropriate and effective through the appointment of knowledgeable Governors, appropriate risk management processes and through effective delegation to committees, working groups and to those designated with responsibility for oversight or particular aspects of the business of the Foundation, as follows.

The Foundation

Foundation Selection Committee

To identify and recommend new Governors and advise on succession planning, appointing to committees, working groups and designating responsibility for oversight by individual Governors, as well as approving the appointments to The John Lyon School’s Board of Governors.

Chair - Mr D G P Eyton (Appointed 1 Jan 2023) Mr J P Batting (Retired 31 Dec 2022)

Foundation Risk Oversight and Opportunities Committee

To ensure the identification and effective management of risk and consideration of opportunities across the entities within the Foundation.

Chair - Vice Admiral J P Kyd

Foundation Investments Committee

To supervise and monitor the investment of financial assets.

Chair - Sir J R Symonds

Foundation Remuneration Committee

To consider the remuneration of the Officers and other senior employees of the Corporation (including those Governors who are Directors of and receive remuneration from HISL) and in conjunction with the trustees of the HDT, the remuneration of the Chief Executive of HDT. In doing so, the Committee draws on data produced by independent and anonymous benchmarking surveys of equivalent positions. Overall salary levels and increases for all other staff are approved annually by the Governors through the budgeting process, based on benchmarking surveys, market forces and assessments of the cost-of-living.

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Governance (continued)

The Corporation

Bond Issue Committee

To oversee the investment and use of the proceeds of two private placement bonds issued in 2019 and 2021.

Chair - Mr C G T Stonehill

Management of the Corporation

The Governors have delegated the day to day management of Harrow School to the Head Master and Bursar of Harrow School. The Governors have delegated the day to day management of The John Lyon School to the Head and Chief Operating Officer of The John Lyon School. The Governors have delegated aspects of the day to day management of the Corporation to the Chief Financial and Commercial Officer and the Clerk to the Governors and General Counsel. The Governors are advised on financial management, strategy, and risk management in relation to the Corporation and its subsidiaries by the Chief Financial and Commercial Officer of the John Lyon Foundation.

Harrow School

The principal Governor committees are:

Strategy and Education Committee

To consider strategic and educational matters.

Chair - The Hon A Butler (Appointed 1 Jan 2023) Mr D G P Eyton (To 31 Dec 2022)

General Purposes Committee

To consider important financial and operational matters and generally oversee the management and administration of the School’s affairs (which receives reports regarding the oversight of compliance with the School’s regulatory requirements, including Health and Safety).

Chair - The Hon A Butler (Appointed 1 Jan 2023) Mr D G P Eyton (To 31 Dec 2022)

Estates Committee

To oversee the development and maintenance of the School’s estate.

Chair - Mr A C Goswell

Compliance Committee

To oversee all aspects of legal and regulatory compliance, including Health and safety.

Chair - Vice Admiral J P Kyd (1 Sep 2022 – 26 May 2023) after which it ceased to be a Governor chaired committee (and was convened and chaired by a senior executive responsible for operations within the School) and Vice Admiral J P Kyd became responsible for oversight.

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Governance (continued)

Pupils’ Wellbeing and Conduct Committee

To oversee the pastoral care and safeguarding of pupils at the School (supplementing specific oversight of safeguarding.

Chair - Mr D J C Faber

There are other committees and oversight functions, as follows:

The John Lyon School

In its supervision of the School’s affairs, the School’s Board of Governors meets at least three times per year and is assisted in its governance of School affairs by several sub-committees that normally meet once per school term, namely the Finance and General Purposes Committee, the Estates Committee, the Education Committee, Quainton Hall Committee and the Strategy Committee. Each of these committees is chaired by a School Governor. The School’s investments are monitored by The Corporation’s Investments Committee. Other ad hoc committees are formed as necessary.

The Chairs of these Committees in the year were as follows:

Finance and General Purposes Committee - Mrs C E Southgate
Estates Committee - Mrs K Burnaby (Appointed 1 Sep 2023)
- Mr J H Graham (Retired 31 Aug 2023)
Education Committee - Mr N I Kendrick
Quainton Hall Committee - Mr N J D Enright
Strategy Committee - Mr L J Halligan (Appointed 1 Sep 2022)

Charitable Funds

In addition to the original endowment of the Founder, The Corporation has been the recipient of a considerable number of charitable donations established mainly for the benefit of Harrow School and its pupils, the financial activities of which are recorded in these consolidated Financial Statements. Some of the funds are separately registered with the Charity Commission as subsidiary charities but share The Corporation’s charitable number.

Note 21 to the Financial Statements sets out an analysis of the assets attributable to the various funds. Except for the investment properties, the tangible assets are held for use by Harrow School, The John Lyon School, HDT, HISL, HSEL and HEIL.

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Relationships and Connected Charities

The Corporation is the Trustee of John Lyon’s Charity (“the Charity”) which is regarded as a connected charity. It is separately registered, preparing Financial Statements annually to 31 March. The objects of the Charity are to apply its income for charitable purposes to benefit the inhabitants of certain London boroughs. The Charity seeks to promote the life-chances of children and young people through education. The Financial Statements of the Charity are not consolidated in these Financial Statements.

Other related organisations of particular importance to The Corporation, whose financial results are not consolidated in these Financial Statements, are:

Both Schools have strong links with local charities and schools, the details of which are provided later in this report.

Management of Risks and Uncertainties

The risks and uncertainties faced by the Corporation are actively managed and regularly reviewed by management who advise the Governors.

The Governors have examined the principal areas of the Schools’ operations and considered the major - both strategic and operational - risks confronting the Schools and their related entities. A comprehensive review of The Corporation’s risk governance and management processes was considered by the Governors during the year, resulting in a new Foundation Risk Management Policy and the establishment of an oversight committee (see above).

The Governors ensure that sufficient resources are available to ensure that the major risks considered to carry a high level of both impact and likelihood of occurrence have been mitigated to an acceptable level. The Risk Registers highlight a wide range of political, financial, health and safety, child protection, data protection, data and cyber security, reputational damage and liability risks.

The key controls used by both schools include:

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Management of Risks and Uncertainties (continued)

The Governors are satisfied that through the risk management processes established by the Corporation, all material risks are adequately managed, monitored, mitigated and reported.

Public Benefit and Community Engagement

Charities Act 2011 and Public Benefit

Under Section 17(5) of the Charities Act 2011, the Governors must have regard to any Charity Commission guidance when exercising any powers or duties to which such guidance is relevant. They are aware of the three relevant Charity Commission guidance notes “Charities and Public Benefit”, “The Advancement of Education for the Public Benefit” (as amended in December 2011) and “Public Benefit and Fee-Charging” and are aware of the withdrawal of the original edition of the latter pending an expected reissue. The Governors acknowledge the statutory requirement to report on The Corporation’s public benefit and they confirm that they have had regard to Charity Commission guidance on public benefit where relevant to matters to which the guidance relates.

Mission Statement and Public Benefit

The Corporation, together with its subsidiary companies, HDT, and John Lyon’s Charity comprise the John Lyon’s Foundation and share the following mission: “Improving the prospects of children and young people through educational opportunities.”

The provision of public benefit is a core part of the John Lyon’s Foundation mission, and the Corporation has the following aims to support public benefit;

To fulfil these aims the Corporation has the following primary objectives;

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There were four key areas where the Corporation met these objectives during the year:

1. Maintaining Full Schools and Academic Excellence

Harrow School

The School was full for the academic year 2022/23.

Over 40% of grades achieved at GCSE were at grade 9 level, with over 70% of grades at either grade 8 or grade 9. Excluding the pandemic years, the 9-A* percentage is the highest on record, and the 9-A rate is the highest since 2013.

At A Level, almost a third of boys achieved As, where excluding the pandemic years the percentage of AA ands A-B is the highest since 2013. Two boys achieved five or more A grades, and eleven boys gained four or more A*s. The School’s value-added outcomes at A Level were the strongest in the last decade.

The number of Harrovians achieving a place at a Russell Group University is at its highest since 2017. One boy gained a place at ETH Zurich, which is ranked ninth globally. Out of the fifteen boys offered Oxbridge places, twelve boys accepted and three boys opted for Ivy League Schools instead. Thirty boys in total gained places at US Universities, with a record fifteen Harrovians taking up places at six of the eight Ivy League Schools.

The John Lyon School

The senior school at The John Lyon School was full for the academic year 2022/23, and pupil numbers in the Nursery and Prep School continued to grow. The 2023 results continued to see strong performance at GCSE Level and, noting the absence of public examinations in 2020 and 2021, the grades are broadly in line with the results of 2019. Overall, the A-Level results continue to be good and the significant increase in the proportion of A* grades is pleasing.

2. Implementing the Corporation’s Scholarships and Bursaries Policy

Harrow School

In 2022/23 133 pupils (2021/22 – 143 pupils) benefited from bursaries amounting to £3,824,000, (2021/22 - £3,125,000). Of these awards, 35 attracted remission of at least 95% and a further 61 attracted remission of between 50% and 95%. These awards, based on merit and parental need, helped the School to maintain its educational and other standards and to ensure that financial assistance was given to those who required it. In addition, scholarships worth £453,000 (2021/22 - £448,000) were awarded to 190 boys (2021/22 - 188 boys). In achieving its objective to educate a full school of some 828 boys and based on the Government’s published cost per full-time pupil of £7,009 for 2022/23, the School saved the State, after taking account of boys from overseas, at least £4,658,000 during the year. In providing a single sex and boarding education, the School offered something which is not generally or widely available in the maintained sector .

The John Lyon School

In 2022/23 85 pupils (2021/22 – 85 pupils) benefited from bursaries amounting to £1,300,000 (2021/22 - £1,287,000). Of these awards, 51 attracted remissions of at least 75% and a further 8 remissions of between 50% and 74%. These awards, based on merit and parental need, helped the School to maintain its educational and other standards and to ensure that financial assistance was given to those who required it. In addition, scholarships worth £187,000 (2021/22 - £177,000) were awarded to 136 pupils (2021/22 – 102). In achieving its objective by educating pupils during the year, based on the Government’s published cost per full-time pupil of £7,009 for 2022/23, the School saved the State at least £5,803,000 during the financial year.

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REPORT OF THE GOVERNORS Year ended 31 August 2023

3. Encouraging local school pupils and others to access the Corporation’s resources and engaging in other activity for the public benefit

Harrow School

Shaftesbury Enterprise (SE) encompasses all of the School’s philanthropic, charitable, outreach and partnership work with a focus on improving the educational outcomes and life opportunities for young people in its neighbourhood, particularly those who face significant barriers to progress. In collaboration with its local partner schools and local authorities, Harrow School is committed to improving the educational attainment and life outcomes of vulnerable pupils, particularly those in care. Through collaborative projects run in partnership with trusted local organisations, the School remains determined to make a significant positive impact on the lives of hundreds of young people in our community and further afield.

The School’s purpose and long-term strategic investment remains focussed on improving the prospects of vulnerable children and young people in the Borough of Harrow, and further afield, enabling them to fulfil their potential. SE continues to carry out that purpose through transformative interventions ranging from targeted academic support as well as through the provision of diverse co-curricular opportunities with the aim of improving educational attainment, particularly in groups that are under-represented in higher education and professional careers.

SE’s vision is to enable young people in our community, irrespective of background, to thrive and achieve their full potential, find fulfilment, and progress to successful adult lives that allow them to contribute positively to society.

Harrow School and SE aim to fulfil this vision through the following objectives:

Improve educational attainment through:

Improve life outcomes through:

Widen access for those from a broad range of abilities and backgrounds through:

Almost £500,000 was distributed in 2022/23 to fund initiatives which have supported over 10,000 young people facing immensely challenging circumstances through a broad range of programmes.

Every Harrovian remains actively involved in SE initiatives through annual fundraising events and the volunteering and mentoring programme to help young people in the community who face significant levels of hardship. This past year, the Harrow community raised funds to support over 50 local charities to deliver vital programmes to support young people in the borough experiencing challenging times. In the past year alone, over 9,000 hours were invested by Harrow School boys and staff to support SE programmes.

Around 200 Harrovians volunteer for projects in the local community, ranging from supporting primary and secondary school children with their learning, to working on specific enrichment projects with groups facing significant barriers to progress. Harrovians volunteer more than 15,000 hours of their time over the academic year to act as co-ordinators, coaches, mentors, and contributors to the projects.

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3. Encouraging local school pupils and others to access the Corporation’s resources and engaging in other activity for the public benefit (continued)

A comprehensive overview of initiatives delivered through SE in the Borough of Harrow can be found in the Impact Report for 2022/23 which is available at Shaftesbury Enterprises Activities.

School Partnerships

Grange Primary School

Ten boys from Druries boarding house visited Grange Primary School weekly to mentor some of their top mathematicians. Every mentor was partnered with a student, and during each session they would tackle challenging questions and puzzles, while also revising old material and teaching them new material.

Boys in Moretons boarding house also welcomed students from Grange Primary School for an engaging one-to-one reading programme in the Vaughan Library. Thirteen boys from the Lower Sixth, Fifth Form and Remove volunteered, and they each partnered with the same primary school student for the duration of the project. This meant that boys put in a sustained effort to improve a particular student’s reading over the 12 sessions.

Feedback from Grange Farm pupils showed that the children made significant progress during their participation in the projects and their attainment levels improved significantly.

St Anselm's Primary School

Boys from Elmfield boarding house supported the children at St Anselm’s Primary School with reading. The children steadily became more confident, and it was heartening to see the children show increasing enthusiasm for reading to Harrovians each week.

Vaughan Primary School

As part of SE, a group of 25 boys from Newlands visited Vaughan Primary School, where they helped the pupils from Year 1 to Year 4 with phonics and reading.

Byron Court Primary School

Boys from Rendalls boarding house worked with the children from Byron Court Primary School, supporting literacy and numeracy sessions for Years 5 and 6.

Newton Farm Primary School

At Newton Farm, the Harrovians acted as teachers’ aides, helping in whatever capacity was needed, with a particular focus on reading. They worked with pupils in the Reception year and helped the children learn to break down words into individual sounds and then blend them into full phrases.

Weldon Park

West Acre boarding house boys volunteered at Weldon Park, where boys read to primary-school children every week and occasionally helped them with their multiplication tables. This project enabled Harrovians to play a part in filling some gaps in knowledge and helping the children meet their attainment targets.

Shaftesbury High School

Each week, students from Shaftesbury High School visited boys in The Head Master’s boarding house at Harrow to participate in indoor sports activities. Activities included five-a-side football, basketball and dodgeball. Working with children who have learning difficulties challenged Harrovians to take the initiative and to be good listeners and communicators.

Hillview Nursery

The Hillview Nursery project brought together teachers and students from various disciplines to support the youngest members of our community. Located in South Harrow, Hillview Nursery is the only maintained nursery in the borough. The school is a special haven where young children can explore and develop independently within an enabling environment. For the duration of the year’s SE programme, the children were taught eco-friendliness by Harrow School’s Sustainability Committee and responded brilliantly to the interactive lessons. To align with the ethos of environmentalism, they constructed plant beds in the nursery

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3. Encouraging local school pupils and others to access the Corporation’s resources and engaging in other activity for the public benefit (continued)

garden using reclaimed wood, repurposing residual material to allow the children to grow their own produce.

Woodlands School

As volunteers at Woodlands School, Harrovians engaged in various ways with students with a range of disabilities. Activities included physical therapy as well as mental stimulation, largely through art and music.

SUPPORT WITH SUBJECTS AND SPORTS

School of Hard Knocks rugby programme

School of Hard Knocks (SOHK) is a unique long-term intervention programme that uses weekly rugby coaching, classroom sessions and mentoring to improve attendance and behaviour at school, with the ultimate aim of helping at-risk children avoid permanent exclusion and complete mainstream education in schools. In the sixth year of our partnership with SOHK, Harrow hosted the largest SOHK festival yet with over 16 teams and 200 boys across Years 9, 10 and 11 from SOHK partnership schools. Three Harrow teams also took part with members of The XV refereeing as well as helping to run, coach and offer encouragement to all the boys.

Judo

This year saw the launch of SE Judo, an initiative aiming to give local primary school pupils the opportunity to try the martial art. Each week a different group of Year 5 pupils from Norbury School came to the Hill and received an introduction to the sport. The pupils left with a basic understanding of the sport and some of its key principles.

Eton Fives

Year 6 children from Vaughan and Roxeth Primary School came to Harrow School once a week to learn and enjoy the game of Eton fives. A group of ten Harrow boys devoted their time teaching the children about the sport.

Debating

‘ Knowing what to say is sense, when to say it is intelligence, how to say it is wisdom, why and how to say it is enlightenment’. Local school children joined with Harrovians to enhance their thinking, speaking and debating skills.

With these sessions, all came to understand with greater clarity that speaking ability, reasoning and debating are skills used every day, in a group or even alone.

Chemistry

The SE chemistry initiative saw Harrovians honing their communication and educational skills by inspiring young minds through fun, practical chemistry experiments. This proved to be an enriching experience for the young students and Harrovians alike.

The chemistry programme received high praise from the participating students. They found it to be “gratifying, interesting, enjoyable, fun, rewarding, engaging, insightful and inspiring”.

Simon Singh masterclasses

Professor Rama was asked how old he was. He replied, "If you divide my age by 2, 3, 4 or 6, there is always 1 left over, but if you divide it by 7, there is no remainder." How old is Professor Rama? With this question, Siew-Chiang Lim, Head of Maths at Harrow, kickstarted the newly established Online Problem Solving programme. This SE initiative is spearheaded by Mr Lim in collaboration with Dr Simon Singh (the renowned author) and Dr Junaid Mubeen (Countdown champion) from Parallel Circles.

In the programme, 52 Year 7 and 8 tutees from across the country joined a group of 16 Lower Sixth mathematicians to explore mathematical puzzles. The topics in each session ranged from number theory to geometry to coin puzzles. This allowed a better appreciation of the beauty and ingenuity of maths, which is often drowned out by the repetitive number-crunching of classroom exercises.

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3. Encouraging local school pupils and others to access the Corporation’s resources and engaging in other activity for the public benefit (continued)

Shaftesbury Enterprise art project

This was a successful partnership programme between Harrow School and Grange Primary School. It was run by the Harrow School Art teachers, with Harrow boys playing a role in helping and providing opportunities for younger children to explore their artistic ideas and skills. The project aimed to establish and develop creative opportunities for children in the local area and promote greater engagement with the arts.

Throughout the year, children from Grange Primary School worked with Harrow boys to create a range of artwork. Through this series of activities and assignments, children were able to express their creativity and develop their artistic skills.

COMMUNITY SUPPORT

Lumina Tutoring Programme

Lumina Tutoring Programme was launched during the first national Coronavirus lockdown as a spontaneous and ad-hoc response to the educational challenges faced by care-experienced young people when schools closed. The programme has evolved into an efficient and effective way to meet a real need for looked-after children, a group already at significant educational disadvantage and who are also likely to have been disproportionately impacted by the pandemic in additional ways. In the past year, we were able to support 50 children looked after through the Lumina Tutoring Programme.

Lumina Tutoring provides online, subject-specific, one-to-one tutorial sessions for children and young people who are looked after (CLA), also known as children in care, and to improve educational attainment for CLA. Lumina Tutoring involves a thriving collaboration of like-minded institutions focussed on improving the educational outcomes for CLA. It brings together inspirational teachers and mentors with diverse skills and backgrounds and from across the education sector, harnessing their expertise to help a group of young people facing significant disadvantages in thriving and moving on to successful careers in the future. In partnership with Virtual Schools, one-to-one online lessons, predominantly in English, Maths and Science, are being provided by teachers from partner schools on a weekly basis to support the educational progress of young people.

The Lumina platform is fully funded by Harrow School and provides comprehensive administrative support for participating schools. A comprehensive safeguarding structure is in place, as is training for teachers joining the Lumina Tutoring programme.

London's Community Kitchen

Boys in the Lower Sixth were able to volunteer at London’s Community Kitchen (LCK). Each week, three teams visited the LCK to assist in whatever capacity was needed to support LCK in their mission to serve the community, in particular to provide free food for vulnerable communities in London.

LCK’s principal ethos is ‘zero waste and zero hunger’. The LCK system creates a sustainable model that reduces the amount of food that would otherwise go to waste and serves it to over 10,000 Londoners who are battling with food insecurity. The mission that drives LCK is its belief that free or affordable food should be available to vulnerable communities across the world.

Three teams of Harrovians each volunteered at the centre. The volunteers helped make food bags to be distributed as a part of the LCK’s Help Harrow programme. This programme delivers groceries to schools, care homes and other people in need. Along with the bags are pamphlets with recipes for different dishes that can be made from the ingredients. Help Harrow serves to create a borough-wide, co-ordinated approach to help residents who are unable to access support, advice or food supplies.

Boys were also responsible for restocking the fresh and ambient produce for the food bags. The supplies for these bags come many different sources, including HelloFresh bags. At the centre, boys separated the

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3. Encouraging local school pupils and others to access the Corporation’s resources and engaging in other activity for the public benefit (continued)

contents of the donated bags into different tubs. The produce and ingredients are then used to make up the food bags that are distributed as a part of the Help Harrow and supply the LCK Free Surplus Food Market.

LCK acts as a sustainable model that supports people, as well as the environment. It was incredibly fulfilling for the Harrovians to be able to make meaningful, positive change.

FirmFoundation

Boys from The Park boarding house volunteered at FirmFoundation, a shelter that aims to provide food, hygiene facilities and social care for the homeless in Harrow. Two sets of boys travelled down to the shelter on Mondays and Fridays for their scheduled appointments between 2pm and 3pm. The boys could either help in the kitchen with preparing food or, on the other side of the counter, with serving it. By the end of the programme, many boys were staying for as long as they could before their afternoon lessons, and they found the experience as enjoyable as it was rewarding.

Food Insecurity

The School launched a joint response to the increasing need to support local families on whom increases in living costs and food insecurity are having a significant impact. Together with Young Harrow Foundation, Help Harrow, Harrow Council and DVS Foundation, Harrow School donated £30,000 towards a muchneeded package of support over the winter period.

A fund of £45,000 was set up by the partnership to help families identified by schools in the borough as particularly struggling. The fund was distributed in the form of vouchers worth £250 for up to three families per school. The vouchers were redeemed in many supermarkets and essential retailers and were designed to ease the cost of living.

In addition, SE launched a pilot programme with four local schools, Norbury Primary School, Roxeth Primary School, Grange Primary School and Harrow High School, each of which was provided with seed funding of £5,000 to set up an emergency fund to mitigate the impact of the increases in living costs on the most vulnerable families in their school community .

Music Partnerships

The Summer term saw the conclusion of our second year of music partnership work with local primary schools. Our music teachers worked with over 130 children between the ages of 7 and 11 in four primary schools: St Jérôme Church of England Bilingual School, St Anselm’s Catholic Primary School, Norbury School and Newton Farm Junior School. The continuing aim of the initiative is to provide open-access high-level choral sessions with primary school children and, through them, open-up musical and nonmusical opportunities.

In the Winter term, the SE choirs from Newton Farm and Norbury School put on their own St Mary’s Lunchtime Concert in which they sang repertoire from the Anglican choral and English folk traditions, including music by George Frideric Handel and contemporary composer Will Todd. A week later, the choirs of St Anselm’s and St Jérôme’s sang with the Harrow School Chapel Choir for the first Town Carols concert since 2019. St Anselm’s and St Jérôme’s also sang two pieces on their own: former Harrow School Director of Music Sir Percy Buck’s Christmas Dawn and Charles Wood’s Mater Ora Filium. It was wonderful to welcome parents and members of the local community to both these events, sharing our joint commitment and enjoyment at the culmination of youthful exuberance and artistic skill through song.

In a significant collaboration with boys from Harrow School, the choir from St Anselm’s joined us in Harrow School Chapel for a full sung Catholic Latin Mass in which they performed music by William Byrd. 2023 marked the 400th anniversary of William Byrd’s death and so it was fitting that we introduced so much of his repertoire to these children. It was also an extremely rare and wonderful sight to see so many primary school children singing challenging Renaissance polyphony with so much enthusiasm and commitment.

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REPORT OF THE GOVERNORS Year ended 31 August 2023

3. Encouraging local school pupils and others to access the Corporation’s resources and engaging in other activity for the public benefit (continued)

Harrow College

Since September 2022, ESOL (supporting English for speakers of other languages) students on the Young Foundation courses at Harrow College have benefited from weekly sports sessions at Harrow School. These sessions, delivered by a professional coach, used Harrow’s outdoor, and sometimes indoor sports facilities. In total 212 students have benefited from the sessions since September 2022.

Access to the coached sport sessions at Harrow School enabled ESOL students to develop their language skills and their cultural understanding and awareness of their new life in the UK while learning about sports. The sessions also played a key role in promoting the mental wellbeing of ESOL students.

Harrow Rifle Corps and Harrow High School

The Harrow Rifle Corps continues to maintain its successful partnership with Harrow High School and welcomes 25 Army cadets for weekly training sessions at the School. Training is overseen by Captain Robson and Major Davies and is delivered alongside Harrow boys, Harrow teachers and staff from Harrow High School.

Drama

The Jeremy Lemmon Project was established in 2019 with proceeds from the School’s gala performance of Twelfth Night at Shakespeare’s Globe Theatre, to support drama training, creative collaboration and access to higher education across state secondary schools in the London Borough of Harrow. Jeremy was an inspirational teacher and Director of Shakespeare at Harrow, staging a series of productions exploring shared light playing conditions, and bringing the work to life for generations of students. 2023 saw the fourth iteration of the project, with students from local secondary schools joining Harrow School pupils in this year’s company, working practically on Shakespeare with the mentoring of actors from the Globe. The project culminated in a sharing of speeches and scenes in the candlelit surroundings of the Sam Wanamaker Playhouse at the Globe.

Enrichment Club

In addition to one-to-one online tutoring support, Harrow School runs a weekly after-school enrichment programme for care-experienced young people and young carers. These sessions are held at Harrow School during term time. The first half of the enrichment session supports academic attainment, with young people participating in a carousel of activities across the School site for the remainder of the session. The broad range of activities spans everything from music recording to experimenting with pottery, honing debating skills, participating in various sports and attending dedicated career counselling sessions.

The John Lyon School

The John Lyon School channels its outreach and community work through Blackwell Enterprise. The Blackwell Enterprise ethos is to use the resources of the School, including its pupils, staff, facilities and resources to establish beneficial links with the community, both on a local level and within the wider world.

PARTNERSHIPS

Lumina Tutoring Programme

Staff at John Lyon are encouraged to partake in the Lumina Tutoring Programme, aimed at assisting looked after children with their studies. This has proved to be rewarding to both the children and the staff giving their time.

Gladstone Park Primary School

The School continued with its scientific workshop partnership with Gladstone Park Primary School. Pupils from Gladstone Park Primary School attended a series of workshops at John Lyon. John Lyon also offered the full range of sciences (Biology, Physics and Chemistry) to small groups of year 5 and 6 pupils.

The annual University Fair was run in February 2023, with representatives from several Russell Group

University Fair

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3. Encouraging local school pupils and others to access the Corporation’s resources and engaging in other activity for the public benefit (continued)

universities. Staff and pupils from eight local partnership schools were able to attend to benefit from the advice on offer.

CCF

The successful CCF partnership with Pinner High School continued with 30 pupils from Pinner High School joining the CCF at John Lyon each week.

Sharing of School facilities

The multi use games areas (MUGA) at Sudbury Fields is used by the Harrow Hockey Club.

The playing fields and pavilions at Sudbury Fields are used by the Old Lyonians Football Club, St George’s School, Harrow Borough Cricket, Brondesbury Cricket Club, and the Bowmen of Harrow.

The swimming pool at the Senior School was used by three local primary schools during the year and the pool at the Prep School was used by five community groups during the year.

The Prep School is also used by the local Scout group, a karate school and a weekend maths school. The football pitches and the MUGA at Sudbury Fields, and the Lyon building playground were used by charities working with the Harrow Food and Activity programme during the summer holidays.

During the year the Prep School was used by Crazy Camps to offer a holiday camp for local children aged between 4 to 12 during school holidays and half term breaks.

For the second year running the Alridha Foundation used the Senior School facilities for 10 days in August, free of charge. The Alridha Foundation provided academic as well as sports, art and health and well-being sessions for children aged between 9 to 19.

Community Service

Sixth form pupils are encouraged to volunteer on Friday afternoons. Pupils participated in:

The John Lyon School continues to support local and national charities through a variety of fundraising activities. During the year close to £12,000 was raised, of which £4,000 was given to the St Luke’s Hospice. The School carried out two food bank collections, for Hill View Children’s Centre in South Harrow, and hosted two very successful Community Film Nights. These gave local families an evening of entertainment, in a warm setting with refreshments.

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THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

REPORT OF THE GOVERNORS Year ended 31 August 2023

3. Encouraging local school pupils and others to access the Corporation’s resources and engaging in other activity for the public benefit (continued)

The Harrow Development Trust

In 2022/23 the Trustees of HDT continued to support a charitable fund for the purpose of providing relief to people and countries affected by the Tsunami disaster in Asia in 2004. In total, £694,000 has been appropriated for Tsunami relief since then.

4. Progressing the Corporation’s development plans

Harrow School

The new Science Centre is nearing completion and will bring benefits for all. It will provide 16 state-of-theart Biology and Chemistry laboratories and a 178-seat lecture theatre equipped with the latest audio-visual technology. Sustainability has been key to the project which includes a number of renewable energy sources together with a sustainable-energy centre supplying efficient utilities to other parts of the School.

The construction of the Science Centre has provided an ideal opportunity for pupils to visit the site, experience this real-life Science, Technology, Engineering or Maths (STEM) challenge and benefit from structural engineers explaining the technical challenges of building on the side of a hill, and the sustainability measures which are key to the project’s success.

The extension and refurbishment of the Shepherd Churchill Dining Hall is progressing. This project will remodel and extend the existing 1970s dining hall to provide improved dining and catering spaces, rationalising the internal layout and enhancing the building’s setting within its landscape.

The John Lyon School

At the Prep School works continued with enhancing the facilities, including:

Following the announcement of the rejection of the School’s planning appeal to construct a new Oldfield classroom block, at the Senior School the focus was on:

Conclusion

With these four areas of activity, the Governors assess that the Corporation has acted in accordance with the Charity Commission’s guidance on public benefit.

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THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

REPORT OF THE GOVERNORS Year ended 31 August 2023

FINANCIAL REVIEW AND PERFORMANCE

Overall Financial Performance

The Corporation’s net movement in funds for the year was an increase of £7,337,000 (2021/22 – decrease of £2,663,000). Net income before transfers and investment gains / losses was £8,051,000 (2021/22 - £5,097,000). The improved net income result reflects the additional income generated by the subsidiary entities.

Total income for The Corporation for the year was £84,011,000 (2021/22 - £74,159,000). Total expenditure increased to £75,960,000 (2021/22 - £69,062,000).

HISL’s surplus increased by £533,000 to £5,265,000 (2021/22 - £4,732,000). HSEL generated a profit of £480,000 (2021/22 – loss £42,000).

The appropriations from HDT for the benefit of the Corporation were £8,609,000 (2021/22 - £7,000,000).

Net assets on the Balance Sheet increased by £7,337,000 (2021/22 – decreased by £2,663,000) to £196,321,000. There were fixed asset additions of £30,025,000 which were largely funded out of unrestricted fixed asset investments and appropriations from HDT.

The Corporation increased cash by £2,101,000 (2021/22 – decreased by £19,995,000). Net debt at the yearend was £94,740,000 (2021/22 - £96,465,000) which is largely long-term debt in the form of two bonds totalling £90,000,000, repayable from 2059.

A detailed analysis of the financial performance of group entities is set out at note 5 i.

Harrow School

The School is full, and demand for places remains high. After depreciation and some non-recurring costs, but excluding awards, there was an operating deficit of £2,374,000 (2021/22 – deficit of £2,914,000). Cash generated before awards was £2,537,000 (2021/22 - £2,064,000).

The John Lyon School

The John Lyon’s School’s income, including the receipt of bursary funding from HISL, increased by £1,212,000 from £15,517,000 in 2021/22 to £16,729,000, a reflection of the rise in pupil numbers for the year to 838 pupils from 816 in 2021/22. The operating surplus before depreciation and disposal of assets was £2,045,000 (2021/22- £1,772,000), while the operating surplus after depreciation and disposal of assets of £433,000 (2021/22 - £534,000) was impacted by the write off of £588,000 of costs from the failed attempt to gain planning permission to build a new classroom block.

Investment Powers, Policy and Performance

The Foundation Investments Committee supervises and monitors the investment of financial assets, and the Bond Issue Committee oversees the investment and use of the proceeds of two private placement bonds issued in 2019 and 2021.

The Corporation seeks to produce the best financial return within an acceptable level of risk. The investment objective for its funds under management is to generate an investment return (after expenses) of inflation (CPI) plus 4% per annum over the long term for the financial investment portfolios. This is assumed to be broadly equivalent to Harrow School fee inflation plus 1% per annum (after expenses).

The Corporation invests for capital growth in the long term. The long-term is defined as a minimum of 10 years. It is recognised that the return objective may be difficult to achieve in every period but should be attainable over a 10-year or greater time period.

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THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

REPORT OF THE GOVERNORS Year ended 31 August 2023

Overall Financial Performance (continued)

The Corporation has a total return policy in place for most of its awards funds which allows the Corporation to draw up to 3.75% of a three-year rolling average of the fund value annually.

The Corporation is advised by Cambridge Associates Limited on how its two largest funds are invested, while the smaller funds are invested in the Cazenove Charity Multi Asset and Structural Growth funds. Overall, the funds returned approximately 3.9% over the year.

The Corporation’s Treasury deposits, together with 75% of the proceeds from the bonds, are held in shortterm, investment-grade, corporate bond portfolios managed by EFG Private Bank Limited to realise greater returns and reduce credit risk. The portfolio generated a yield of approximately 1.4% per annum net of costs.

RESERVES POLICY

Corporation Reserves Policy

As the Corporation is responsible for Harrow School and The John Lyon School, its reserves are held for the benefit of the schools.

The Corporation maintains reserves to ensure that it holds sufficient funds to meet its short-term financial obligations, while making appropriate provision for the essential long-term investment in the refurbishment and continued upgrading of the Corporation’s estate.

The Corporation’s consolidated reserves totalled £196,321,000 (2021/22 - £188,984,000) at the year end, and comprised the following:


and comprised the following:
2022/23
£		 2021/22
£
* Unrestricted funds 149,811,000
138,585,000
Restricted funds 4,101,000
7,221,000
Endowment funds 42,409,000
43,178,000
Total Reserves £196,321,000 188,984,000
*Unrestricted funds
Of which tangible fixed assets are:		 149,573,000
125,360,000

The unrestricted funds, net of designated funds and a £5,119,000 (2021/22 - £4,456,000) pension liability are primarily deployed in tangible fixed assets which are used for direct charitable activities. In line with many similar charities, and due to continuing and substantial investment in tangible fixed assets, the Corporation has negative free reserves as defined by the Charity Commission.

The Corporation has secured £90,000,000 of long-term funding by way of private placement bond issues which ensures that its short-term financial obligations can be met and that the key strategic elements of the principal estates projects can be delivered. The Governors believe that the present levels of reserves are sufficient to meet the Corporation’s essential obligations. Nevertheless, the Governors are focused on increasing the level of unrestricted reserves from the operating surpluses of subsidiary companies and fund raising, while in the medium term, benefitting from the returns from invested funds. Increasing the unrestricted reserves will assist the Corporation in fulfilling its primary objectives.

The Corporation keeps its reserves policy and level of reserves under regular review.

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REPORT OF THE GOVERNORS Year ended 31 August 2023

GOING CONCERN

The Governors have reviewed the reserves position carefully together with the financial forecasts and operating cashflows of the various entities. The Governors believe the Corporation’s financial reserves are sufficient to ensure that the Corporation will continue as a going concern for the foreseeable future, being at least twelve months from the date of approval of the financial statements.

FUNDRAISING ACTIVITIES

Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. Although we do not undertake fundraising from the general public, the legislation defines fundraising as “soliciting or otherwise procuring money or other property for charitable purposes”.

In relation to the above, it is confirmed that all solicitations are managed internally, without involvement of commercial participators or professional fund-raisers, or third parties. The day to day management of all income generation is delegated to the key management personnel, who are accountable to the Trustees.

No complaints have been received in relation to solicitations. Our terms of employment require staff to behave reasonably at all times; all major fundraising activities are approved at a senior level before they are undertaken and are conducted under procedures and protocols formulated and agreed by the Trustees. We therefore do not consider it necessary to design additional procedures to monitor such activities.

FUTURE PLANS

In pursuit of the Corporation’s longer term strategic educational and financial objectives, the main plans for 2023/24 include:

Harrow School

Embedding ‘Strategy 2030’ which has three key strands

The John Lyon School

Subsidiary Companies

Disclosure of Information to the Auditors

The Governors who held office at the date of approval of this Report confirm that, so far as they are individually aware, there is no relevant audit information of which The Corporation’s auditors are unaware; and each Governor has taken all the steps they might reasonably have taken as a Governor to make themselves aware of any relevant audit information and to establish that The Corporation’s auditors are aware of that information

Auditors

PKF Littlejohn LLP has expressed its willingness to continue in office

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THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

STATEMENT OF GOVERNORS’ RESPONSIBILITIES

The purpose of this statement is to distinguish the responsibilities of the Governors as a body for the Financial Statements from the responsibilities of the auditors as stated in their report.

The Charities Act 2011 requires the Governors to prepare Financial Statements for each financial year which give a true and fair view of the Corporation’s financial activities during the year and of its financial position at the end of the year.

In preparing the Financial Statements the Governors follow best practice and:

The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the Corporation’s transactions, disclose with reasonable accuracy at any time the financial position of the Corporation and enable them to ensure that the financial statements comply with applicable financial regulations and charity law. They are also responsible for safeguarding the Corporation’s assets, and hence for taking reasonable steps for the prevention and detection of error, fraud and other irregularities.

Approved by the Board of Governors and signed on its behalf by:

D G P Eyton

Chairman of the Governors

16 March 2024

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INDEPENDENT AUDITOR’S REPORT TO THE GOVERNORS OF THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

Opinion

We have audited the financial statements of The Corporation (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 31 August 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Corporation Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

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

Other information

The other information comprises the information included in the Report of the Governors, other than the financial statements and our auditor’s report thereon. The Governors are responsible for the other information contained within the Report of the Governors. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

23

INDEPENDENT AUDITOR’S REPORT TO THE GOVERNORS OF THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

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:

Responsibilities of the Governors

As explained more fully in the Governor’s responsibilities statement, the Governors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees 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 Governors are responsible for assessing The Corporation’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Governors either intend to liquidate The Corporation or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and the relevant regulations made or having effect thereunder.

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:

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INDEPENDENT AUDITOR’S REPORT TO THE GOVERNORS OF THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included, but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further 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 parent charity’s Governors, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the parent charity’s Governors 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 and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

PKF Littlejohn LLP Statutory Auditor

15 Westferry Circus Canary Wharf London E14 4HD

Date: 29 April 2024

PKF Littlejohn LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

25

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES Year ended 31 August 2023

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

Income Funds
Capital Funds
2022/23
Unrestricted
Restricted Expendable Permanent
Notes
Funds
Funds Endowment Endowment
Total
Income and endowments from:
£’000
£’000
£’000
£’000
£’000
Charitable activities
School fees receivable
1
53,509
-
-
- 53,509
Ancillary trading income
2i
5,587
-
-
-
5,587
Charitable grants received
2ii
660
965
-
-
1,625
Voluntary sources
Other charitable income
2iii
8,337
1,502
179
- 10,018
Tsunami income
-
-
-
-
-
Non ancillary trading income
2iv
10,284
-
-
- 10,284
Other incoming resources
3
(353)
88
-
-
(265)
Investments
Investment income
4
3,094
159
-
-
3,253
__
_
Total Income
81,118
2,714
179
- 84,011
Expenditure on:
Raising funds
Fundraising costs
1,435
109
-
-
1,544
Non ancillary trading expenses 2iv
4,318
-
-
-
4,318
Finance costs
7
3,285
-
-
-
3,285
Investment management costs
436
1
4
52
493
9,474
110
4
52
9,640
Charitable activities
Teaching costs
26,462
-
-
- 26,462
Welfare costs
7,929
-
-
-
7,929
Premises costs
15,335
-
-
- 15,335
Support costs
6,535
18
-
-
6,553
Grants, awards and prizes
5iii
-
5,199
-
-
5,199
Other charitable projects
-
3
-
-
3
Ancillary trading expenses
2i
4,839
-
-
-
4,839
61,100
5,220
-
- 66,320


__ _
Total Expenditure
70,574
5,330
4
52 75,960
______
_____
__ ___
Net Income/(Expenditure) before
Transfers and Investment
Gains/(Losses)
10,544
(2,616)
175
(52)
8,051
Transfers between funds
8
1,042
(487)
(105)
(450)
-
Gains on investment properties
11
-
-
-
-
-
Gains/(Losses) on investment assets 12
462
(17)
(118)
(219)
108
_


_
_
Net Income/(Expenditure)
12,048
(3,120)
(48)
(721)
8,159
Actuarial (loss)/gain on defined-
benefit pension scheme
20(c)
(822)
-
-
-
(822)


__

_
Net Movement in Funds
11,226
(3,120)
(48)
(721)
7,337
Balances at beginning of year
138,585
7,221
7,379
35,799 188,984
_
__
__
 ___
Balances at end of year
149,811
4,101
7,331
35,078 196,321



 2021/22
Total
£’000
49,977
3,285
992
9,100
16
8,265
120
2,404
__
74,159
_
1,370
3,400
3,549
687
__
9,006
_
24,321
7,164
14,636
6,946
4,336
13
2,640
_
60,056

69,062

5,097
-
316
(12,370)

(6,957)
4,294

(2,663)
191,647
____
188,984

The Corporation has no gains or losses that are not shown above and all activities are continuing.

The accounting policies and notes on pages 31 to 70 form part of these Financial Statements.

26

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

BALANCE SHEETS At 31 August 2023


SCHOOL OF JOHN LYON
Consolidated Corporation
Notes 2023 2022 2023 2022
Fixed Assets £’000 £’000 £’000 £’000
Tangible fixed assets 9 153,233 129,089 153,233 129,087
Intangible assets 10 84 97 84 97
Investment properties 11 1,588 2,048 1,588 2,048
Investments 12 157,699 174,234 157,004 173,382
______ ______ ______ ______
312,604 305,468 311,909 304,614
Current asset investments 34 34 34 34
Stocks 13 314 400 217 278
Debtors 14 6,973 6,607 6,348 6,501
Cash at bank and in hand 15 6,356 4,319 5,822 4,023
_____ _____ _____ ______
13,677 11,360 12,421 10,836
Creditors: amounts falling due
within one year 16 (26,633) (26,305) (25,470) (25,385)
Net Current (Liabilities) (12,956) (14,945) (13,049) (14,549)
_____ _____ _____ _____
Total Assets less Current 299,648 290,523 298,860 290,065
(Liabilities)
Creditors: amounts falling due
after more than one year 17 (98,208) (97,083) (98,208) (97,083)
______ ______ ______ ______
Net Assets before Pension 201,440 193,440 200,652 192,982
Pension Scheme Liabilities 20 (5,119) (4,456) (5,121) (4,456)
______ ______ ______ ______
Net Assets including Pension
Scheme Liabilities 196,321
______		 188,984
______		 195,531
______		 188,526
______
Represented by:
Capital funds
Permanent Endowment 35,078 35,799 35,078 35,799
Expendable Endowment 7,331 7,379 7,331 7,379
______ ______ ______ ______
42,409 43,178 42,409 43,178
Income Funds
Restricted 4,101 7,221 3,649 6,707
Unrestricted 149,811 138,585 149,473 138,641
______ ______ ______ ______
Total Funds 21 196,321
______		 188,984
______		 195,531
______		 188,526
______

Approved by the Governors and signed on their behalf by

D G P Eyton ) ) ) Governors 16 March 2024 ) R T G Winter )

The accounting policies and notes on pages 31 to 70 form part of these Financial Statements.

27

CONSOLIDATED CASH FLOW STATEMENT Year ended 31 August 2023

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

2022/23 2021/22
Note £’000 £’000 £’000
£’000
Net Cash Inflow from Operating Activities (i) 14,245 12,759
Cash flows from Investing Activities
Payments to acquire tangible fixed assets (30,025) (19,639)
Sale proceeds of tangible fixed assets 590 8
Payments to acquire investments (16,744) (63,125)
Sale proceeds of investments 36,386 30,847
(Decrease)/Increase in cash held in investments (2,996) 21,071
Listed investment income 453 267
Interest received 3,094 2,137
Interest paid (3,289) (3,549)
_____ _____
Net Cash (Outflow) from
Investing Activities (12,531) (31,983)
Cash flow from Financing Activities
Loans Received 1,500 -
Loan Repayment (1,107) (777)
Finance Lease Repayment (6) 6
_____ _____
Net Cash Inflow/(Outflow) from
Financing Activities 387 (771)
_____ _____
Increase/(Decrease) in cash
in the year 2,101
 (19,995)
Made up as follows: _____ _____
Decrease/(Increase) in bank overdraft – unrestricted funds 64 (9,500)
Increase/(Decrease) in other cash balances 2,037 (10,415)
_____ _____
Increase/(Decrease) in unrestricted fund and other cash 2,101 (19,915)
(Decrease)/Increase in advanced fees cash balance - (80)
_____ _____
(iii) 2,101 (19,995)
_____ _____
Reconciliation of Net Cash Flow to
Movement in Net Funds
Increase/(Decrease) in cash in the year 2,101 (19,995)
Cash inflow resulting from decrease
in net debt and lease financing (387) 771
Other non-cash movement 11 10
_____ _____
Change in funds resulting from cash flows and
Movement in net funds in the year 1,725 (19,214)
Net funds at 1 September 2022 (96,465) (77,251)
_____ _____
Net Funds at 31 August 2023 (iii) (94,740)
_____		 (96,465)
_____

The accounting policies and notes on pages 31 to 70 form part of these Financial Statements.

28

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

CONSOLIDATED CASH FLOW STATEMENT Year ended 31 August 2023

(i) Net Cash Inflow from Operating Activities

Net Cash Inflow from Operating Activities 2022/23 2021/22
£’000 £’000
Net incoming resources 8,159 (6,957)
Depreciation 5,744 5,545
Amortisation of goodwill 11 10
Decrease/(increase) in stocks 86 (93)
Increase in debtors (363) (734)
Increase/(decrease) in creditors 274 1,552
Increase in entry and part-fee deposits 856 127
Decrease/(Increase) in liability for unfunded pensions 5 -
FRS 102 credit before actuarial gains/losses 663 5
Decrease in provision for other pension benefit arrangements (827) (197)
Interest paid 3,289 3,549
Interest received (3,094) (2,137)
Investment income (453) (267)
Gain on investment properties - (316)
Gain on revaluation of investment assets (112) 12,370
Loss on disposal of fixed assets 7 302
_____ _____
14,245
_____		 12,759
____
Changes in Cash and Cash Equivalents
Analysis of balances Change
2022/23 2021/22 in year
£’000 £’000 £’000
Bank overdraft (see note 16) (9,436) (9,500) 64
Other cash balances (see note 15) 6,356 4,319 2,037
______ ______ _____
The Corporation’s operations (3,080) (5,181) 2,101
Other Loans (1,537) (1,562) 25
Advanced Fees Cash balance (see note 16) (400) - (400)
Finance Leases (1) (7) 6
_____ ______ _____
(5,018)
_____		 (6,750)
______		 1,732
_____

(ii) Changes in Cash and Cash Equivalents

29

CONSOLIDATED CASH FLOW STATEMENT Year ended 31 August 2023

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

(iii) Analysis of Net Funds

(iii)Analysis of Net Funds
Year ended 31 August 2023 As at Other As at
beginning of Cash Non-cash end of
year Flow changes year
£’000 £’000 £’000 £’000
Net cash balances (5,181) 2,101 - (3,080)
Other loans (1,562) 25 - (1,537)
Finance leases (7) 6 - (1)
Advanced Fees - (400) - (400)
Bond (89,715) (7) - (89,722)
_____ _____ _____ _____
Total (96,465) 1,725 - (94,740)
_____ _____ _____ _____
Year ended 31 August 2022 As at Other As at
beginning of Cash Non-cash end of
year Flow changes year
£’000 £’000 £’000 £’000
Net cash balances 14,814 (19,995) - (5,181)
Other loans (2,355) 793 - (1,562)
Finance leases (1) (6) - (7)
Bond (89,709) (6) - (89,715)
_____ _____ _____ _____
Total (77,251)
_____		 (19,214)
_____		 -
_____		 (96,465)
_____

30

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

ACCOUNTING POLICIES

a) Basis of preparation and consolidation

These Financial Statements represent the activities of The John Lyon School and Harrow School, together with its charitable funds (Corporation), consolidated with its trading subsidiaries - Harrow School Enterprises Limited (“HSEL”), Harrow International Schools Limited (“HISL”) Harrow Educational Investments Limited (“HEIL”) The Harrow Development Trust (“HDT”) and The John Lyon School Development Trust (“JLSDT”).

They are prepared in accordance with The Charities (Financial Statements and Reports) Regulations 2008, the Statement of Recommended Practice on Accounting and Reporting by Charities – the Charities’ SORP (FRS 102) - and in accordance with applicable United Kingdom Financial Reporting and Accounting Standards. The Financial Statements are drawn up on the historical cost basis of accounting, as modified by the revaluation of investment properties and other investments.

The Corporation constitutes a public benefit entity as defined by FRS 102.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has been withdrawn.

b) Preparation of Financial Statements on a going concern basis

Having reviewed the funding facilities available to the Corporation together with the expected ongoing demand for places and the Corporation’s future projected cash flows, the Governors have a reasonable expectation that the Corporation has adequate resources to continue its activities for at least 12 months from the date of approval of the Financial Statements and continue to adopt the going concern basis.

c) Statement of Financial Activities (SOFA)

The SOFA comprise the following:

Unrestricted Funds

nrestricted Funds
Harrow School - Fees, running costs, other income and direct charitable trading income
and expenditure.
The John Lyon School - Fees, running costs, other income and The John Lyon School
scholarship funds.
HSEL - Subsidiary company trading income and expenditure.
HISL - Subsidiary company trading income and expenditure.
HDT - Fundraising income less related costs.
JLSDT - Fundraising income less related costs.
Designated Funds - Unrestricted funds set aside by the Governors for future use (including
awards and capital projects).
Restricted Funds - Income derived from restricted and endowed assets and donations
made for restricted purposes (including capital projects, scholarships
and related expenditure).
Expendable - The J G Apcar Trust, the Bessborough Memorial Trust, the Harrow
Endowment Funds School Awards Fund and part of the Harrow Challenge Fund.

31

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

ACCOUNTING POLICIES

c) Statement of Financial Activities (SOFA) continued

The Harrow Challenge Fund comprises gifts and donations which are generally regarded as expendable endowment unless the donor specifically determines otherwise.

d) Income

All incoming resources are included in the SOFA when the Corporation is legally entitled to the income, after any performance conditions have been met, when the amount can be measured reliably and when it is probable that the income will be received.

Fees receivable, royalties, charges for services and use of premises are accounted for in the period in which the service is provided. Income and expenditure resulting from ancillary School activities not covered by fees, where the School acts as principal through bearing the risks, is recognised when the cost is incurred or the trip takes place.

Income from grants and donations is recognised on receipt, unless there are conditions attached to the donation that require a level of performance before entitlement can be obtained. In this case income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Corporation and it is probable that they will be fulfilled. The related Gift Aid on donations is accounted for when the related donation is received.

Legacy income is recognised when probate has been granted, there are sufficient assets in the estate to pay the legacy and that any conditions attached to the legacy are either in control of the charity or have already been met.

Donated assets are shown as a donation at market value upon receipt.

Income for the general purposes of the Corporation is credited to unrestricted funds. From time to time the Governors designate unrestricted funds for specific purposes. Donations and legacies subject to specific wishes of the donors are credited to relevant restricted funds or to endowed funds, if the amount is required to be held as permanent or expendable capital.

Gifts of funds for the purpose of providing for specific fixed assets are accounted for as restricted funds until expended. When expended, amounts equivalent to the relevant capital expenditure are transferred from the restricted funds to the unrestricted funds.

Investment income is earned through holding assets for investment purposes such as shares. It includes dividends, recognised when received and interest recognised on a receivable basis. Income from corporate bonds is accrued at the coupon rate.

e) Expenditure

All expenditure is accounted for on an accruals basis. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Expenditure is allocated to expense headings either on a direct cost basis or apportioned on appropriate bases. The cost of charitable activities includes all expenditure directly relating to the objects of the Corporation.

Support costs comprise administrative salaries and pension costs, office expenses, legal and professional fees and equipment rentals.

32

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

ACCOUNTING POLICIES

f) Investments

Investments are shown at their market values at the year end. Realised and unrealised gains and losses on the sale or revaluation of investments are accounted for in the appropriate fund in the SOFA.

g) Intangible Assets

Goodwill recognised represents the excess of the fair value and directly attributable costs of the purchase consideration over the fair values to the group’s interest in the identifiable net assets acquired.

Goodwill is amortised over its expected useful life which is estimated to be ten years. Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the SOFA. No reversals of impairment are recognised.

h) Tangible Fixed Assets

Expenditure on land and buildings which, in the opinion of the Governors, has not enhanced their longterm value is charged to the SOFA. Expenditure on improvements and development to land and buildings which, in the opinion of the Governors, has enhanced their long-term value is capitalised. Expenditure includes the original cost and associated costs directly attributable to bringing the asset to its working condition for its intended use (including materials and direct labour costs). Expenditure on plant, equipment (including IT equipment) and furniture which is in excess of £5,000 per item, or group of items, is capitalised.

In respect of certain land and buildings occupied or used by the schools and other artefacts owned by the schools, some of which were acquired many years ago, the original cost is not readily ascertainable. In the opinion of the Governors, the cost of obtaining a reasonable estimate of original cost or current value to the schools would outweigh significantly the benefit to be derived from doing so. Accordingly, such assets are not included on the balance sheet. In addition, prior to 1997, where funds were donated for fixed assets, the amounts of the donations were offset against the cost of the relevant fixed assets. The original cost of these assets and the amounts of the donations are not readily ascertainable and the amounts shown on the balance sheet are stated on a net basis.

i) Investment Properties

Properties, not used for direct charitable purposes of the School, are held as investment properties for the purpose of producing income for the Corporation. The investment properties are reviewed for impairment annually with a full revaluation every five years on the basis of market value as defined in the Appraisal and Valuation Standards as issued by the Royal Institute of Chartered Surveyors. The last valuation was undertaken as at 31 August 2022. Valuation gains and losses are shown on the SOFA. No depreciation is charged on investment properties.

j) Depreciation

Depreciation is provided on all tangible fixed assets, other than freehold land and investment properties, at rates calculated to write off the cost of each asset, less any estimated residual value, evenly over its expected useful life. The expected useful lives of the principal categories are:

Freehold Buildings - 50 to 60 years Minor capital projects - 15 to 20 years Astroturf sports pitches - 10 to 40 years Plant, equipment and furniture - 4 to 20 years IT equipment - 4 years

Freehold land is stated at cost.

Depreciation on buildings under construction commences when the asset is available for use.

33

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

ACCOUNTING POLICIES

k) Stock

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

l) Finance Leases

Equipment and motor vehicles, which are the subject of finance leases, are classified within the Financial Statements as tangible assets with equivalent liabilities at what would otherwise have been the cost of outright purchase. These assets are depreciated over their expected useful lives, which generally correspond to the primary rental period. The interest element of lease payments is charged to the SOFA.

m) Operating Leases

Rentals paid and payable under operating leases are charged to the SOFA.

n) Termination Benefits

Redundancy and termination costs are recognised when there is a legal or constructive obligation which can be measured reliably, and it is probable that a payment will be made.

o) Pensions and Post Retirement Benefit Schemes

Defined contribution scheme

The pension cost charged to the SOFA represents the contributions payable by the Corporation under the rules of the Harrow Corporation Pension Scheme.

Defined benefit schemes

The Corporation contributes to the Teachers’ Pension Scheme, which is a defined benefit scheme, at rates set by the Government Actuary and advised to the Governors. The scheme is a multi-employer pension scheme and it is not possible to identify the assets and liabilities of the scheme, which are attributable to the School. In accordance with FRS 102, the scheme is therefore accounted for as a defined contribution scheme. Contributions to the scheme are charged to the SOFA as they become payable in accordance with the rules of the scheme.

The Corporation also runs a defined benefit pension scheme for non-teaching staff that has been closed to new entrants and to further accruals. The funds of the scheme are administered by a separate Board of Trustees and are separate from the Corporation. An independent actuary completes a valuation every three years and based on the actuary’s recommendations annual contributions are paid to the scheme so as to secure the benefits set out in the rules.

The defined benefit pension scheme current service costs are charged to the SOFA within staff costs. The defined benefit scheme assets are measured at fair value at the balance sheet date. Scheme liabilities are measured on an actuarial basis at the balance sheet date using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term to the scheme liabilities. The resulting defined benefit asset or liability is presented separately after other net assets on the face of the balance sheet. The net interest on the asset or liability, measured using the discount rate, is credited within other interest. The scheme actuarial gains and losses are recognised immediately as other recognised gains and losses.

p) Taxation

As a registered charity the Corporation is generally exempt from Corporation Tax but not from Value Added Tax (VAT). Irrecoverable VAT is included with the cost of those items to which it relates.

The Corporation’s subsidiary trading companies, HSEL and HISL, are liable for overseas taxation and for Corporation Tax on taxable profits not paid to the Corporation as a Qualifying Donation under Gift Aid.

34

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

ACCOUNTING POLICIES

q) Financial Instruments

The Corporation only has financial assets and liabilities of a kind that qualify as basic financial instruments. They are initially recognised at transaction value and subsequently measured at their settlement value, as follows:

Cash - Cash held Debtors - Settlement amount after any discounts Creditors - Settlement amount after any trade discounts Loans and loan notes - Amortised cost

35

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

1. School Fees Receivable

1.School Fees Receivable
Gross fees excluding bursaries
Fee remissions and awards
unrestricted funds (note 5 iii)
2.Fundraising and Trading Activities
i.
Ancillary Trading Income		 The
Harrow
John Lyon
2022/23
2021/22
School
School
Total
Total
£’000
£’000
£’000
£’000
38,754
16,180
54,934
51,346
(266)
(1,159)
(1,425)
(1,369)
__



38,488
15,021
53,509
49,977



___
2022/23
2021/22
£’000
£’000		 The
Harrow
John Lyon
2022/23
2021/22
School
School
Total
Total
£’000
£’000
£’000
£’000
38,754
16,180
54,934
51,346
(266)
(1,159)
(1,425)
(1,369)
__



38,488
15,021
53,509
49,977



___
2022/23
2021/22
£’000
£’000		 The
Harrow
John Lyon
2022/23
2021/22
School
School
Total
Total
£’000
£’000
£’000
£’000
38,754
16,180
54,934
51,346
(266)
(1,159)
(1,425)
(1,369)
__



38,488
15,021
53,509
49,977



___
2022/23
2021/22
£’000
£’000		 The
Harrow
John Lyon
2022/23
2021/22
School
School
Total
Total
£’000
£’000
£’000
£’000
38,754
16,180
54,934
51,346
(266)
(1,159)
(1,425)
(1,369)
__



38,488
15,021
53,509
49,977



___
2022/23
2021/22
£’000
£’000
Registration fees and non-refundable fee deposits 380 339
Advanced Fees income/(expenditure) 1 -
Other income 367 306
Boys’ charges and school trips 4,839 2,640
_____ _____
Ancillary Trading Expenses
The Corporation
Boys charges and school trips
ii.Charitable Grants Received		 5,587
3,285
__
_
4,839
2,640

___
2022/23
2021/22
£’000
£’000
Grants Received from John Lyon’s Charity
Harrow School 1,091 438
The John Lyon School 534 554
_____ _____
1,625
______		 992
______

36

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

2. Fundraising and Trading Activities (continued)

iii. Voluntary Income Received

Fundraising proceeds represent funds received mainly through HDT for scholarships and bursaries and to assist in the funding of capital expenditure at Harrow School.

HDT incoming resources for the year amounted to £9,914,000 (2021/22 - £8,876,000), which included Tsunami income of £Nil (2021/22 - £16,000); outgoing resources totalled £10,027,000 (2021/22 - £8,323,000). Net (outgoing)/incoming resources for the year were (£113,000) (2021/22 - £477,000).

Fundraising proceeds in the SOFA comprise

Fundraising proceeds in the SOFA comprise
2022/23 2021/22
£’000 £’000
HDT 9,914 8,876
The John Lyon School 104 224
_____ _____
10,018 9,100
_____ _____
2022/23 2021/22
iv. Non Ancillary Trading Activities £’000 £’000
Non Ancillary Trading Income
Rental income to the Corporation 277 228
HSEL (less intra group sales of £56,000 (2021/22 - £53,000)) 3,028 1,849
HISL 6,979 6,188
_____ _____
10,284 8,265
_____ _____
Non Ancillary Trading Expenses
HSEL
Cost of sales 2,502 1,843
Administration expenses 102 101
HISL
Administration expenses 737 652
Overseas taxation 977 804
_____ _____
4,318
_____		 3,400
_____

37

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

2. Fundraising and Trading Activities (continued)

iv. Non Ancillary Trading Activities (continued)

The summarised trading results of the Corporation’s two subsidiaries, HSEL and HISL, are set out on the following pages. HEIL did not trade during the period.

HSEL

The principal activity of this Company is non-charitable trading for the Corporation. The Company pays all of its post-tax income to the Corporation as a Qualifying Donation under Gift Aid arrangements, subject to having distributable reserves. Its trading results, extracted from its audited Financial Statements, which are included in the Unrestricted Funds column in the SOFA, were:

2022/23 2021/22
£’000 £’000
Turnover 3,084 1,902
Cost of sales (2,502) (1,843)
_____ _____
Gross profit 582 59
Administration expenses (102) (101)
____ ____
Operating profit/(loss) 480 (42)
Qualifying Donation to The Corporation - -
____ ____
Profit/(loss) for the Financial year 480
____		 (42)
____

Amounts not reflected in trading income and trading expenses are included within the relevant unrestricted categories in the SOFA.

The net liabilities of the Company at the year end were £267,585 (2022 – net liabilities £747,293).

38

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

2. Fundraising and Trading Activities (continued)

HISL

The principal activity of the Company is to enter into licensing or other arrangements with those operating or managing overseas international schools bearing the Harrow name, to monitor their compliance with such agreements, and to receive royalties and fees arising from them. The Company pays all of its post-tax income to the Corporation as a Qualifying Donation under Gift Aid arrangements. Its trading results, extracted from its audited Financial Statements, which are included in the Unrestricted Funds column in the SOFA, were:

2022/23 2021/22
£’000 £’000
Turnover 6,979 6,188
Administration expenses (737) (652)
Overseas taxation (977) (804)
____ _____
Profit before taxation 5,265 4,732
Qualifying Donation to the Corporation (5,265) (4,732)
_____ _____
Profit for the Financial year -
_____		 -
_____

Amounts not reflected in trading income and trading expenses are included within the relevant unrestricted categories in the SOFA.

The net assets of the Company at the year ends were £1,000.

2022/23 2021/22
3. Other Incoming Resources £’000 £’000
Write off of capitalised costs (590) (302)
Other income 237 332
Subscription income 88 90
____ ____
(265)
____		 120
____

39

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

2022/23 2021/22
£’000 £’000
4. Investment Income
Income from restricted funds
Investment income - Scholarships and Bursaries 159 100
____ ____
159 100
____ ____
Income from unrestricted funds
Interest receivable 2,800 2,137
Investment income - Scholarships and Bursaries 294 167
____ ____
3,094 2,304
____ ____
Total investment income receivable 3,253
____		 2,404
____

40

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

5 i. Group Analysis for the year ending 31 August 2023

The
Harrow John Lyon 2022/23
School School HSEL HISL HDT JLSDT Total
£’000 £’000 £’000 £’000 £’000 £'000 £’000
Income
School fees receivable 38,488 15,021 - - - - 53,509
Ancillary Trading 4,635 952 - - - - 5,587
Other Charitable 1,091 534 - - - - 1,625
Voluntary - 104 - - 9,914 - 10,018
Non Ancillary Trading 166 55 3,084 6,979 - - 10,284
Other 146 (411) - - - - (265)
Investments 3,253 - - - - - 3,253
_____ _____ ____ ___ ____ _____ _____
Total Income 47,779 16,255 3,084 6,979 9,914 - 84,011
_____ _____ _____ _____ _____ _____ _____
Expenditure
Fundraising - 143 - - 1,401 - 1,544
Non Ancillary Trading - - 2,604 1,714 - - 4,318
Finance 3,066 219 - - - - 3,285
Investment management 489 3 - - 1 - 493
Teaching 17,827 8,635 - - - - 26,462
Welfare 7,102 827 - - - - 7,929
Premises 12,291 3,044 - - - - 15,335
Support 4,388 2,165 - - - - 6,553
Grants awards and prizes 4,666 533 - - - - 5,199
Other Charitable Projects - - - - 3 - 3
Ancillary trading 4,118 721 - - - - 4,839
_____ _____ _____ _____ _____ _____ _____
Total Expenditure 53,947 16,290 2,604 1,714 1,405 - 75,960
_____ _____ _____ _____ _____ _____ _____
Transfer to fund awards - - - - -
_____ _____ _____ _____ _____ _____ _____
Net Income (6,168) (35)
480		 5,265 8,509 - 8,051
Transfers, investment gains and losses
Transfers between entities 13,401 508 - (5,265) (8,609) (35) -
Gain/(Loss) on investment assets 193 (68)
-		 - (17) - 108
Actuarial loss on defined benefit pension (822) - - - - - (822)
_____ _____ _____ _____ _____ _____ _____
Total 12,772 440 - (5,265) (8,626) (35) (714)
_____ _____ _____ _____ _____ _____ _____
Balance at beginning of the year 171,400 17,130 (748) 1 1,166 35 188,984
_____ _____ ____ _____ ____ _____ _____
Balance at 31 August 2023 178,004 17,535 (268) 1 1,049 - 196,321
_____ _____ _____ _____ _____ _____ _____

41

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

5. i. Group Analysis for the year ended 31 August 2022

The
Harrow
John Lyon
School
School
£’000
£’000
Income
School fees receivable
36,061
13,916
Ancillary Trading
2,689
596
Other Charitable
438
554
Voluntary
92
224
Tsunami
-
-
Non Ancillary Trading
139
36
Other
312
(193)
Investments
2,404
-
_

Total Income
42,135
15,133

_
Expenditure
Fundraising
-
69
Non Ancillary Trading
-
-
Finance
3,148
401
Investment management
683
3
Teaching
16,293
8,028
Welfare
6,393
771
Premises
11,940
2,696
Support
4,956
1,990
Grants awards and prizes
3,732
604
Other Charitable projects
-
-
Ancillary trading
2,221
419


Total Expenditure
49,366
14,981
_


_
Net Income
(7,231)
152
Transfers, investment gains and losses
Transfers between entities
11,350
382
Gain on investment properties
316
-
Loss on investment assets
(12,334)
(27)
Actuarial gain on defined benefit pension 4,294
-


Total
3,626
355
_

Balance at beginning of the year
175,005
16,623
__
____
Balance at 31 August 2022
171,400
17,130

 HSEL
£’000
-
-
-
-
-
1,902
-
-
_
1,902

-
1,944
-
-
-
-
-
-
-
-
-
_
1,944


(42)
-
-

-
-
_
-

(706)
__
(748)
 HISL
£’000
-
-
-
-
-
6,188
-
-

6,188

-
1,456
-
-
-
-
-
-
-
-
-
_
1,456


4,732
(4,732)
-
-
-
_
(4,732)

1
_
1
 2021/22
HDT
JLSDT
Total
£’000
£’000
£’000
-
-
49,977
-
-
3,285
-
-
992
8,784
-
9,100
16
-
16
-
-
8,265
-
1
120
-
-
2,404
_
_
_
8,800
1
74,159


_
1,301
-
1,370
-
-
3,400
-
-
3,549
1
-
687
-
-
24,321
-
-
7,164
-
-
14,636
-
-
6,946
-
-
4,336
13
-
13
-
-
2,640


_
1,315
-
69,062


_


_
7,485
1
5,097
(7,000)
-
-
-
-
316
(9)
- (12,370)
-
-
4,294


_
(7,009)
-
(7,760)


_
690
34 191,647

__
_____
1,166
35 188,984

42

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

5. ii. Analysis of Total Resources Expended

2022/23
Staff costs Other Depreciation Total
£’000 £’000 £’000 £’000
Raising Funds
Fundraising costs 971 573 - 1,544
Trading expenses 2,067 2,249 2 4,318
Finance costs (see note 7) - 3,285 - 3,285
Investment management costs - 493 - 493
_____ ____ _____ _____
3,038 6,600 2 9,640
_____ ____ _____ _____
Charitable Expenditure
Teaching 22,917 3,545 - 26,462
Welfare 4,371 3,558 - 7,929
Premises 4,348 5,245 5,742 15,335
Support 4,339 2,214 - 6,553
Grants, awards and prizes - 5,199 - 5,199
Other charitable projects - 3 - 3
Ancillary trading expenses - 4,839 - 4,839
______ ______ _____ ______
35,975 24,603 5,742 66,320
______ ______ _____ ______
______ ______ _____ ______
Total Resources Expended 39,013 31,203 5,744 75,960
_____ _____ _____ _____
2021/22
Staff costs Other Depreciation Total
£’000 £’000 £’000 £’000
Raising Funds
Fundraising costs 885 485 - 1,370
Trading expenses 1,680 1,718 2 3,400
Finance costs (see note 7) - 3,549 - 3,549
Investment management costs - 687 - 687
_____ _____ ____ _____
2,565 6,439 2 9,006
_____ _____ ____ _____
Charitable Expenditure
Teaching 21,243 3,078 - 24,321
Welfare 4,022 3,142 - 7,164
Premises 3,908 5,185 5,543 14,636
Support 4,360 2,586 - 6,946
Grants, awards and prizes - 4,336 - 4,336
Other charitable projects - 13 - 13
Ancillary trading expenses - 2,640 - 2,640
______ ______ _____ ______
33,533 20,980 5,543 60,056
______ ______ _____ ______
______ ______ _____ ______
Total Resources Expended 36,098
_____		 27,419
_____		 5,545
_____		 69,062
_____

43

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

5. iii. Analysis of Grants, Awards and Prizes

iii.Analysis of Grants, Awards and Prizes
The
Harrow John Lyon 2022/23 2021/22
School School Total Total
£’000 £’000 £’000 £’000
Awards from unrestricted funds (see note 1):
Scholarships - 187 187 177
Means-tested bursaries - 766 766 726
Other awards 266 206 472 466
____ ____ _____ _____
266 1,159 1,425 1,369
____ ____ _____ _____
Awards from restricted funds:
Scholarships 453 - 453 448
Means-tested bursaries 3,824 534 4,358 3,686
Prizes and other awards 388 - 388 202
_____ ____ _____ _____
4,665 534 5,199 4,336
_____ ____ _____ _____
Total grants, awards and prizes 4,931
_____		 1,693
_____		 6,624
_____		 5,705
_____

6. Employees and Key Management

The
John
Harrow
Lyon
School School
£’000 £’000
Wages and salaries
21,605 7,846
Social security costs
2,215
842
Teachers’ Pension Scheme
2,183 1,053
Support Staff Pension Scheme
17
-
Harrow Corporation Pension Scheme
659
125
Death in service benefit
76
16
Unfunded pension costs
10
-
Transfer to Capital projects
(592)
-
_
26,173 9,882
 _
The
John
Harrow
Lyon
School School
£’000 £’000
Wages and salaries
20,329 7,257
Social security costs
2,106
758
Teachers’ Pension Scheme
2,048
953
Support Staff Pension Scheme
20
-
Harrow Corporation Pension Scheme
683
86
Death in service benefit
54
12
Unfunded pension costs
10
-
Transfer to Capital projects
(736)
-
24,514 9,066
 HSEL
£’000
1,332
121
-
-
81
3
-
-
_
1,537
HSEL
£’000
1,109
87
-
-
67
3
-
-
__
1,266
 HISL
£’000
434
52
-
-
43
2
-
-
_
531

HISL
£’000
361
43
-
-
8
3
-
-
__
415
 2022/23
HDT
Total
£’000
£’000
765
31,982
86
3,316
17
3,253
-
17
22
930
-
97
-
10
-
(592)
_

890
39,013

_
2021/22
HDT
Total
£’000
£’000
730
29,786
73
3,067
16
3,017
-
20
18
862
-
72
-
10
-
(736)


837
36,098

44

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

6. Employees and Key Management (continued)

mployees and Key Management (continued)
Average number of Employees during the Year 2022/23 2021/22
The Schools:
Teaching 212 204
Teaching support 78 79
Estates 107 109
Domestic 112 116
Bursary and other administration 75 71
HSEL 20 22
HDT 7 9
HISL 5 5
___ ___
616 615
___ ___

The Foundation Remuneration Committee considers the remuneration of the Officers and other senior employees of the Corporation.

The number of employees across the Group whose emoluments (gross pay plus benefits in kind), excluding employer’s pension contributions, exceeded £60,000 was:


employer’s pension contributions, exceeded £60,000
was:
2022/23 2021/22
£ 60,001 - £ 70,000 43 36
£ 70,001 - £ 80,000 33 25
£ 80,001 - £ 90,000 23 21
£ 90,001 - £100,000 13 10
£100,001 - £110,000 9 5
£110,001 - £120,000 3 4
£120,001 - £130,000 2 3
£130,001 - £140,000 2 -
£140,001 - £150,000 - 1
£220,001 - £230,000 - 1
£230,001 - £240,000 1 -
£240,001 - £250,000 1 2
£260,001 - £270,000 2 -
£290,001 - £300,000 - 1
£320,001 - £330,000 1 -
___ ___

Pension contributions to defined contribution schemes of £211,000 (2021/22 - £169,000) were made for 27 (2021/22 - 23) higher paid employees during the year. Contributions were made to defined benefit pension schemes for 100 (2021/22 - 86) higher paid employees during the year.

Total employee benefits payable (gross pay plus benefits in kind plus employer pension and national insurance contributions) to key management personnel were £3,535,000 (2021/22 - £3,202,000).

The redundancy and termination payments, net of recoveries from insurance, totalled £14,000 (2021/22 - £21,000).

45

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

7. Total Resources Expended 2022/23 2021/22
£’000 £’000
This is stated after charging/(crediting):
Auditors’ remuneration
For the audit of the Corporation 56 52
For the audit of other group entities 33 32
For tax compliance 35 14
For other services 5 10
For the audit of the defined benefit pension scheme 11 10
Depreciation (see note 9) 5,744 5,545
Amortisation (see note 10) 11 10
Operating lease rentals 150 132
Change in pension scheme liabilities excluding actuarial
(loss)/gain (see note 20 (i) c)) (159) (192)
____ ____
Interest and finance costs payable:
Overdrafts and bank loans repayable within 5 years not by instalments 139 285
Finance leases 1 1
____ ____
140 286
Bond interest payable 2,680 2,956
Other interest payable 270 157
____ ___
Total interest payable 3,090 3,399
Bank charges 16 12
Pension commitments – net finance costs (see note 20 (i) c)) 179 138
____ ___
Total finance costs 3,285
____		 3,549
___

46

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

8. Transfers between Funds

Expendable Permanent
Unrestricted Restricted Endowment Endowment
£’000 £’000 £’000 £’000
i. (194) 194 - -
ii. (809) 1,498 - (689)
iii. 3,546 (3,546) - -
iv (80) - - 80
v. - (54) (105) 159
vi (1,421) 1,421 - -
_____ _____ ____ _____
1,042
_____		 (487)
_____		 (105)
_____		 (450)
_____

An additional transfer may arise where the aggregate of the annual transfer, the net unrestricted income from endowed and designated funds and the income generated through donations and the Harrow International Schools’ transfer is insufficient to meet the expenditure committed to bursaries and scholarships.

47

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

9. Tangible Fixed Assets

Tangible Fixed Assets
Consolidated Corporation
Freehold Plant, Freehold Plant,
land and equipment land and equipment
buildings and furniture Total buildings and furniture Total
Cost £’000 £’000 £’000 £’000 £’000 £’000
At 1 September 2022 165,514 21,844 187,358 165,391 21,641 187,032
Additions 25,028 4,997 30,025 25,028 4,997 30,025
Disposals - (849) (849) - (849) (849)
Capital costs written off (588)
(230)		 (818) (588)
(230)		 (818)
T/f from investment properties
460		 - 460 460 - 460
______ _____ ______ ______ ______ ______
At 31 August 2023 190,414 25,762 216,176 190,291 25,559 215,850
______ _____ ______ ______ _____ ______
Depreciation
At 1 September 2022 44,718 13,551 58,269 44,587 13,358 57,945
Charge for the year 4,189 1,555 5,744 4,189 1,553 5,742
Released on disposals - (840) (840) - (840) (840)
Capital costs written off (230) (230) (230 (230)
_____ _____ _____ _____ _____ _____
At 31 August 2023 48,907 14,036 62,943 48,766 13,241 62,617
_____ _____ _____ _____ _____ _____
Net Book Value
At 31 August 2023 141,507 11,726 153,233 141,515 11,718 153,233
_____ _____ _____ _____ _____ _____
At 31 August 2022 120,796
_____		 8,293
_____		 129,089
_____		 120,804
_____		 8,283
_____		 129,087
_____

All tangible fixed assets represented above are held for use by the Corporation, HSEL or HDT.

48

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

10.Intangible Assets
Goodwill
- Consolidated and Corporation
Cost
At 1 September
Addition
At 31 August
Amortisation
At 1 September
Charge for the Year
At 31 August
Net Book Value
At 31 August 2023
At 31 August 2022		 2023
£’000
117
-
_
117

20
13
__
33
_
84
___
97
 2022
£’000
117
-
_
117

10
10
__
20
_
97
___
107

The goodwill relates to the Corporation’s purchase of the assets and trade of Quainton Hall School from Wallsingham College (Affiliated Schools) Limited on 6 November 2020. The goodwill is being amortised over ten years.

The Corporation acquired the assets of Quainton Hall School for £3,650,000 of which £1,350,000 was deferred to be paid over 5 years with the first payment on 6 November 2021. The balance due at the year end was £810,000. (2021/22 - £1,080,000).

The purchase price included £3,340,000 for the land and buildings, £193,000 for fixtures and fittings, and £117,000 for goodwill. The goodwill related to growth expectations, cost synergies and expected future profitability.

49

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

11.Investment Properties 2022/23
- Consolidated and Corporation £’000
Balance at beginning of year 2,048
Transfer to fixed assets (460)
_____
Balance at end of year 1,588
_____
At beginning At end
of year Movement of year
£’000 £’000 £’000
Attributed to:
Unrestricted 976 (460) 516
Endowed - Expendable endowment 77 - 77
- Permanent endowment 995 - 995
_____ _____ _____
2,048 (460) 1,588
_____ _____ _____

The investment properties are fully revalued every five years on the basis of market value as defined in the Appraisal and Valuation Standards as issued by the Royal Institute of Chartered Surveyors. The last full revaluation was undertaken at 31 August 2022 by Stimpsons Chartered Surveyors.

2021/22
£’000
Balance at beginning of year 1,732
Unrealised gain arising from revaluation 316
_____
Balance at end of year 2,048
_____
At beginning At end
of year Movement of year
£’000 £’000 £’000
Attributed to:
Unrestricted 879 97 976
Endowed - Expendable endowment 53 24 77
- Permanent endowment 800 195 995
_____ _____ _____
1,732 316 2,048
_____ _____ _____

50

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

12. Fixed Asset Investments

Fixed Asset Investments
Expendable Permanent
Unrestricted Restricted Endowed Endowed
Consolidated Funds Funds Funds Funds Total
£’000 £’000 £’000 £’000 £’000
Listed
Opening market value
excluding cash 132,168 1,044 6,146 29,839 169,197
Additions 14,787 44 - 1,913 16,744
Disposal proceeds (33,933) - (111)
(2,339)		 (36,383)
Realised gains/(losses) (3,122) (3)
(1)
40		 (3,086)
Unrealised gains/(losses) 3,584 (14)
(117)
(259)		 3,194
____ ____ _____ _____ ______
Market value at end
of year 113,484 1,071 5,917 29,194 149,666
Cash with investment managers at
beginning of year 4,009 (3)
-		 831 4,837
Movement in year 2,044 - 810 142 2,996
____ _____ _____ _____ ______
Cash with investment managers
at end of year 6,053 (3)
810		 973 7,833
____ _____ _____ _____ ______
Unlisted 200 - - - 200
At end of year 119,737 1,068 6,727 30,167 157,699
_____ _____ _____ _____ _____
At beginning of year 136,377 1,041 6,146 30,670 174,234
_____ _____ _____ _____ _____
Expendable Permanent
Unrestricted Restricted Endowed Endowed
Corporation Funds Funds Funds Funds Total
£’000 £’000 £’000 £’000 £’000
Listed
Opening market value
excluding cash 132,168 192 6,146 29,839 168,345
Additions 14,928 44 - 1,913 16,885
Disposal proceeds (33,933) - (111)
(2,339)		 (36,383)
Realised gains/(losses) (3,134) - (1)
40		 (3,095)
Unrealised gains/(losses) 3,598 (3)
(117)
(259)		 3,219
____ ____ _____ _____ _____
Market value at end
of year 113,627 233 5,917 29,194 148,971
____ ____ _____ _____ ______
Cash with investment managers at
beginning of year 4,009 (3)
-		 831 4,837
Movement in year 2,044 - 810 142 2,996
____ ____ ______ ______ ______
Cash with investment managers at
end of year 6,053 (3)
810		 973 7,833
Unlisted 200 - - - 200
At end of year 119,880 230 6,727 30,167 157,004
_____ _____ _____ _____ _____
At beginning of year 136,377
_____		 189
_____		 6,146
_____		 30,670 173,382
_
___

51

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

12. Fixed Asset Investments (continued)

At 31 August 2023, Unrestricted Fund investments comprise The John Lyon School Awards Fund, Corporation Bond and the Harrow School Designated Funds. Their cost was £123,237,000 (2021/22 - £142,763,000).

At 31 August 2023, Restricted Fund investments consisted of investments on the UK Stock Exchange with a cost of £662,000 (2021/22 - £1,072,000).

At 31 August 2023, Expendable Endowed Funds investments comprised of part of the Harrow Awards Fund, the J G Apcar Trust and part of the Harrow Challenge Fund. The cost of those investments was £6,512,000 (2021/22 - £5,527,000).

At 31 August 2023, the cost of investments, all of which are listed on the UK and other recognised Stock Exchanges, in the Permanent Endowment Funds were as follows:

2022/23
£’000
School and Lyon Foundation
2,562
Shepherd Churchill Bequest
4,905
Scholarship Funds comprising L C Wilson and Harrow Awards Fund
14,697
Harrow Challenge Fund
4,131
Foundation Awards
2,461
__
28,756
____		 2021/22
£’000
2,278
4,641
14,754
3,909
2,298
__
27,880
____

ii. Significant Holdings

At 31 August 2023 the following investments were considered material in the context of the investment portfolios:

At 31 August 2023 the following investments
investment portfolios:		 were considered material in the context of the
Consolidated Corporation
% %
Cazenove Charity Multi Asset Fund 17.8 17.5
Vanguard Total World Stock ETF USD 15.9 15.9
Cash 5.6 5.6
____ ____

iii. Application of the Power of Total Return

Under the total return policy adopted by the Governors, up to 4% of the value of the fund at the previous balance sheet date may be withdrawn in the following financial year.

52

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

12. Fixed Asset Investments (continued)

iii. Application of the Power of Total Return (continued)

With effect from 1 September 2014 the Governors elected to amend the policy and apply the order to the full value of the Harrow Awards Fund and the L C Wilson Bequest, having previously limited the order to 20% of the value at 1 April 2006 as referred to above. The amended policy also reduced the amount available to be applied in the following financial year to 3.75 % of the average of the total fund value on a rolling three year basis.

With effect from 1 September 2017 the Governors elected to apply the total return policy to distributions from the Foundation Awards Fund.

Movements in the Total Return Funds in the period:

Harrow L C Wilson Foundation Total
Awards Bequest
Awards
Funds Fund
£’000 £’000 £’000 £’000
Opening valuation at 1 September 2022 13,106 2,479 2,717 18,302
Changes in year
Investment return – income 160 - - 160
Investment Management Charge (12) (1)
(2)		 (15)
Investment return
– realised/unrealised gains and (losses) 117 (48)
(50)		 19
Cash withdrawn (496) (92)
(101)		 (689)
_____ _____ _____ _____
Net return for the year (231) (141)
(153)		 (525)
_____ _____ _____ _____
New Funds Received - - 109 109
New funds received in year - -
_____ _____ _____ _____
Closing Valuation at 31 August 2023 12,875 2,338 2,673 17,886
_____ ____ _____ ____
Statement of Unapplied Total Return
Opening valuation at 1 September 2022 5,382 1,027 365 6,774
Net return for the year (231) (141)
(153)		 (525)
_____ _____ _____ ____
Unapplied total return as at 31 August 2023 5,151 886 212 6,249
_____ ____ _____ ____
Harrow L C Wilson Foundation Total
Awards Bequest Awards
Fund Fund
£’000 £’000 £’000 £’000
Amount available for distribution
Investment valuation at 31 August 2021 13,941 2,594 2,825 19,360
Investment valuation at 31 August 2022 13,106 2,479 2,717 18,302
Investment valuation at 31 August 2023 12,875 2,338 2,673 17,886
_____ _____ _____ _____
Three year average 13,307 2,470 2,738 18,516
_____ _____ _____ _____
Amount available for distribution – 499 93 103 695
year ending 31 August 2024 _____ _____ _____ _____

53

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

12. Fixed Asset Investments (continued)

iv . Expendable Endowed Funds

With effect from 1 September 2017 the Governors elected to apply the total return policy to distributions from the Harrow Challenge Expendable Awards Fund.

Amount available for distribution

Amount available for distribution
Harrow Challenge
Expendable
Endowed Fund
£’000
Investment valuation at 31 August 2021 3,002
Investment valuation at 31 August 2022 2,771
Investment valuation at 31 August 2023 2,612
_____
Three year average 2,795
_____
Amount available for distribution - year ending 31 August 2024 105
_____

v . Designated Funds

The Governors have also elected to apply the total return policy, as set out in note 12iii, to the Harrow School Designated Awards fund.

Amount available for distribution

Amount available for distribution
Harrow School
Designated
Awards Fund
£’000
Investment valuation at 31 August 2021 22,482
Investment valuation at 31 August 2022 23,035
Investment valuation at 31 August 2023 24,232
_____
Three year average 23,250
_____
Amount available for distribution - year ending 31 August 2024 872
_____

vi. Overall Portfolio Structure

At 31 August 2023 the structure of the total portfolio was as follows:

Consolidated Corporation
% %
Gilts/UK Fixed interest 42.0 42.1
Global Funds 26.5 26.6
Charity multi asset funds 19.6 19.3
Cash 5.5 5.6
UK Equities 3.7 3.7
Hedge Funds 2.7 2.7
_____ _____
Total 100.0
_____		 100.0
_____

54

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS NOTES TO THE FINANCIAL REVENUES AND GOODS OF THE FREE GRAMMAR STATEMENTS SCHOOL OF JOHN LYON Year ended 31 August 2023

12. Fixed Asset Investments (continued)

vii. HSEL

The Corporation owns 100% of the issued ordinary share capital of HSEL, a company registered in England. The shares in the Company are included in unrestricted funds in the Financial Statements at a cost of £2.

viii. HISL

The Corporation owns 100% of the issued ordinary share capital of HISL, a company registered in England. The shares in HISL are included in unrestricted funds in the Financial Statements at a cost of £1.

ix. HEIL

The Corporation owns 100% of the issued ordinary share capital of HEIL, a company registered in England. The shares in HEIL are included in unrestricted funds in the Financial Statements at a cost of £1. The Company was incorporated on 2 July 2021 and has not traded since that date.

13.Stocks
Works Department
Other stocks
14.Debtors
Fees, recharges and extras
Amounts owed by HSEL
Amounts owed by HISL
Amounts owed by HDT
Income tax recoverable
Accrued interest on corporate bonds
Other debtors and prepayments		 Consolidated
2023
2022
£’000
£’000
58
78
256
322
_

314
400
_

Consolidated
2023
2022
£’000
£’000
548
691
-
-
-
-
-
-
43
134
990
1,208
5,392
4,574
_
___
6,973
6,607

 Corporation
2023
2022
£’000
£’000
58
78
159
200
_

217
278
_

Corporation
2023
2022
£’000
£’000
548
691
426
862
2,561
2,225
24
104
43
134
990
1,208
1,756
1,277
_
___
6,348
6,501

A deed of mortgage was created on 4 December 1999 by HSEL securing all monies due or to become due from the Company to The Corporation.

55

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

15. Cash at Bank and in Hand

Cash at Bank and in Hand
Unrestricted
Restricted		 Consolidated
2023
2022
£’000
£’000
6,318
4,282
38
37
_
_
6,356
4,319
__
______		 Corporation
2023
2022
£’000
£’000
5,784
3,986
38
37
_
_
5,822
4,023
__
______

16. Creditors: amounts falling due within one year

Creditors:amounts falling due within one year Consolidated Consolidated Corporation Corporation
2023 2022 2023 2022
£’000 £’000 £’000 £’000
Bank overdrafts 9,436 9,500 9,436 9,500
Fees received in advance * 5,834 5,543 5,834 5,543
Advanced Fees 400 - 400 -
Other taxes and social security 980 870 980 870
Amounts due to suppliers 1,262 2,198 1,061 2,034
Accruals 4,138 2,921 4,120 2,921
Other creditors 1,810 2,301 866 1,545
Development loans (see below) 206 331 206 331
Entry deposits 872 902 872 902
Part fee deposits 1,147 1,138 1,147 1,138
Retention 277 324 277 324
Finance Leases 1 7 1 7
Deferred consideration 270 270 270 270
_____ _____ _____ _____
26,633
_____		 26,305
_____		 25,470
_____		 25,385
_____

The bank overdraft is a short-term Lombard facility with EFG International. It is secured on the corporate bond investments held with EFG International.

*Fees received in advance represent fees paid by parents before 31 August ahead of the Autumn term in the given year.

17. Creditors: amounts falling due after more than one year

Creditors:amounts falling due after more t han one year han one year
Consolidated Corporation
2023 2022 2023 2022
£’000 £’000 £’000 £’000
Bond 89,722 89,715 89,722 89,715
Entry deposits 4,919 4,080 4,919 4,080
Part fee deposits 703 665 703 665
Development loans (see below) 824 1,698 824 1,698
Amounts owed to HDT - - 1,500 115
Other loans 1,500 115 - -
Deferred consideration 540 810 540 810
_____ _____ _____ _____
98,208
_____		 97,083
_____		 98,208
_____		 97,083
_____

56

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

Bond

The Corporation entered into a bond placement for £40 million with The Prudential Insurance Company of America that closed and funded on 11th February 2019, due for repayment on 11th August 2059. Interest at 3.3% per annum is computed on the basis of a 30/360-day year and payable semi-annually on 11th February and 11th August. The costs of issuing the bond are amortised over its remaining period and deducted from the principal sum raised.

A further bond placement for £50 million was entered into with The Prudential Insurance Company of America, Prudential Legacy Insurance Company of New Jersey, and Prudential Annuities Life Assurance Corporation. This bond issue closed and was funded on 18 June 2021 and is due for repayment on 20 June 2061. Interest at 2.7% per annum is computed on the basis of a 30/360-day year and payable semi-annually on 18th December and 18th June. The costs of issuing the bond are amortised over its remaining period and deducted from the principal sum raised.

Development Loans

On 1 August 2008 The Corporation entered into a 20 year unsecured term loan of £4.7m with Santander UK plc to finance redevelopment at The John Lyon School. Under the terms of this loan there were no capital repayments during the first three years. On 1 August 2008, £3.5m of the loan was drawn down and the applicable interest rate for this element fixed at 5.8% for the loan period, payable quarterly.

On 29 July 2011, the remaining £1.2m of the loan was drawn down. The applicable interest rate for this element was fixed at 4.37% for the loan period. On 9 May 2023 the balance of £0.37m on this element of the loan drawn down from Santander plc was repaid.

On 27 September 2011, The Corporation entered into a 17 year unsecured term loan of £0.8m with National Westminster Bank plc. Payments of capital and interest commenced on 30 April 2012 and interest was fixed at 4.95%for the loan period. On 3 May 2023 the balance of £0.3m on the loan with National Westminster Bank plc was repaid.

2023 2022
£’000 £’000
Amounts repayable within one year 206 331
Amounts repayable between two and five years 824 1,341
Amounts repayable after 5 years - 357
____ ____
1,030
____		 2,029
____

Other Loans

The loans granted to HDT are unsecured, interest free and repayable as follows:

2023 2022
£’000 £’000
Amounts repayable within one year - -
Amounts repayable between two and five years 1,500 115
Amounts repayable after 5 years - -
____ ____
1,500
____		 115
____

57

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

18. Operating Lease Commitments

- Consolidated and Corporation

As at 31 August 2023, the minimum total lease payments to which the Corporation is committed under non-cancellable operating leases (plant and equipment) are:

Expiring within one year
Expiring within two to five years
Expiring more than five years		 2023
£’000
107
334
-
_
441
__		 2022
£’000
94
56
-
_
150
__

19. Capital Commitments

- Consolidated and Corporation

At 31 August 2023 capital works contracted for amounted to £23,991,000 (2021/22 - £36,516,000). In addition, £Nil (2021/22 - £10,287,000) was authorised but not contracted.

2023 2022
£’000 £’000
Commitments within one year 15,027 31,594
Commitments over one year 8,964 4,922
_____ _____
23,991
_____		 36,516
_____

58

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

20. Pension Scheme Liabilities - Consolidated and Corporation

Pension scheme liabilities are summarised as follows:

Non-teaching staff defined benefit scheme
Other benefit arrangements
Total pension liability
Total increase/(decrease) in liability (see 20(i) c)		 2023
£’000
5,004
115
_
5,119

663
__		 2022
£’000
4,336
120
_
4,456

(4,486)
__

(i) Non-teaching staff - defined benefit scheme

A scheme for eligible non-teaching staff, who are all employed by the Corporation but work on the activities of either Harrow School, The John Lyon School, HSEL, HDT or the Harrow Association, provides benefits based on final pensionable pay. Salary and related costs, including pension costs, are allocated to the relevant schools or entities. The assets of the scheme are held separately from those of each entity, being invested with an insurance company (AXA Sun Life) and Cazenove Capital Management Limited. Contributions to the scheme are charged to the SOFA, the Trust and the Association, and the Profit and Loss account of HSEL so as to spread the cost of pensions over employees’ working lives. The scheme was closed to new entrants on 13 June 2003 and closed to future accrual on 30 April 2017.

Actuarial valuations are carried out triennially for funding purposes, using the attained age method, the most recently available being dated 31 August 2021. The main assumptions were a discount rate before and after retirement set by reference to the RiskFirst Gilt curve, RPI inflation set by reference to the RiskFirst RPI Gilt inflation curve, CPI inflation of RPI minus 0.8% and pension increase assumptions for revalued deferred pensions before retirement of CPI limited to 5% and pension increases in payment of 3% for pre- and post-88 GMP, 5% for pre-2001 and index-linked increase with RPI limited to 5% for post-2001. The demographic assumptions used the AC00 table for pre-retirement and 104% and 95% of the SP2A tables for males and females for post-retirement.

The actuarial valuation of the scheme as at 31 August 2021 revealed that the statutory funding objective was not met i.e. there were insufficient assets to cover the scheme’s technical provisions and there was a funding shortfall of £7,773,000. The Trustees have resolved to return the funding level to 100% by 2038. As a consequence, the Governors committed to extend the current annual deficit recovery programme agreed in the 2018 valuation by five years to 30 September 2038, with payments rising by 3% per annum from 2021/22 until September 2038.

The scheme contributions paid for the year were £394,000 (2021/22 - £382,000). The expected scheme contributions for the year ending 31 August 2024 are estimated at £406,000.

Financial Reporting Standard (FRS) 102 – Retirement Benefits

An annual actuarial valuation is carried out for the purpose of compliance with FRS 102 and was updated to 31 August 2023 by an independent qualified actuary. As required by FRS 102, the defined benefit liabilities have been measured using the attained age method. The assets and liabilities include the value of pensions in payment, the majority of which are secured with insured annuities.

59

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

20. Pension Scheme Liabilities (continued)

- Consolidated and Corporation

(i) Non-teaching staff - defined benefit scheme (continued)

The amounts recognised in the balance sheet are as follows:

2023 2022
£’000 £’000
Present value of obligations (17,973) (20,413)
Fair value of plan assets 12,969 16,077
______ ______
Scheme deficit (5,004) (4,336)
______ ______
a) Changes in the present value of the scheme obligations:
Opening defined benefit obligation 20,413 31,093
Interest cost 864 492
Actuarial (gain)loss/ (excluding assets) (2,644) (10,521)
Benefits paid (660) (651)
______ ______
Defined benefit obligations at the end
of the year 17,973 20,413
______ ______
b) Changes in the fair value of the scheme assets are as follows:
Opening fair value of scheme assets 16,077 22,276
Interest income on scheme assets 685 354
Return on assets excluding interest income (3,466) (6,227)
Employer contributions 394 382
Benefits paid (670) (661)
Scheme administration cost (51) (47)
______ ______
Fair value of scheme assets at the end
of the year 12,969 16,077
______ ______
c) The amounts included in the Statement of Financial Activities are as follows:
Interest income on scheme assets (685) (354)
Interest on pension liabilities 864 492
____ ___
Net finance cost (see note 7) 179 138
Current service cost 51 47
Contributions paid (394) (382)
____ ____
FRS 102 credit before actuarial gains/losses (164) (197)
Increase in other benefit arrangements 5 5
____ ____
Total debit/(credit) to SOFA (see note 7) (159) (192)
FRS 102 Actuarial losses/(gains) 822 (4,294)
_____ ____
Increase/(decrease) in liability 663
_____		 (4,486)
____

60

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS NOTES TO THE FINANCIAL REVENUES AND GOODS OF THE FREE GRAMMAR STATEMENTS SCHOOL OF JOHN LYON Year ended 31 August 2023

20. Pension Scheme Liabilities (continued)

d) The major categories of scheme assets as a percentage of total scheme assets are as follows:


follows:
2023 2022
% %
Fixed interest and liability driven investment 40 28
Cash and other 3 5
Equities and properties 19 28
Insured annuities 11 10
Diversified grants and funds 27
___		 29
___

The overall expected rate of return on the scheme assets is determined by reference to yields available on government bonds, corporate bonds, bank base rates and incorporating appropriate risk margins where appropriate.


margins where appropriate.
2023 2022
£’000 £’000
Actual return on the scheme assets in the year (5,291) (5,304)
___ ____
2023 2022
% %
Inflation assumption (RPI) 3.3 3.4
Inflation assumption (CPI) 2.7 2.8
Discount rate 5.3 4.3
Rate of increase in salaries 4.3 4.4
Future LPI pension increases 3.3 3.4
Assumed life expectations on retirement at age 65:
Retiring today – males 21.4 21.3
Retiring today – females 24.0 23.9
Retiring in 20 years – males 23.0 22.9
Retiring in 20 years – females 25.5 25.4
2023 2022 2021 2020 2019
£’000 £’000 £’000 £’000 £’000
Present value of obligations (17,973) (20,413) (31,093) (30,938) (31,418)
Fair value of plan assets 12,969 16,077 22,276 20,954 21,549
______ ______ ______ ______ ______
Scheme deficit (5,004) (4,366) (8,817) (9,984) (9,869)
_____ _____ _____ _____ _____
Experience adjustment on scheme assets 3,466 6,227 (1,582) 687 25
Percentage of scheme assets -26.7% -38.7% 7.1% 3.3% 0.1%
Experience adjustment on scheme liabilities (2,644) (10,521) 602 (506) 3,362
Percentage of scheme liabilities 14.7% 51.5% 1.9% 1.6% 10.7%
Cumulative scheme actuarial losses (5,574) (4,752) (9,046) (10,026) (9,845)

61

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

20. Pension Scheme Liabilities (continued)

- Consolidated and Corporation

(ii) Other benefit arrangements

Harrow School has other benefit arrangements comprising:

The value of the unfunded liability arising from these arrangements at 31 August 2023 was updated by an independent qualified actuary on an FRS102 basis. The movements on the provision required to meet the future liabilities arising under the arrangements are as follows:

2023 2022
£’000 £’000
Provision at beginning of year 120 125
Decrease in provision (5) (5)
_____ ____
Provision at end of year 115 120
_____ ____
After more than one year 115
____		 120
____

(iii) Teachers’ Pension Scheme

The School participates in the Teachers’ Pension Scheme (“the TPS”). The pension charge for the year includes contributions payable to the TPS of £3,339,000 (2021/22 - £3,020,000) and at the year-end £260,000 (2022 - £240,000) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate 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 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 March 2022. The actuaries have assumed that members are likely choose the option that provides them with the greater benefits, and 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%.

(iv) Other defined contribution schemes

A defined contribution scheme now known as the Harrow Corporation Pension Scheme for eligible employees across the Corporation. The amount recognised in the SOFA for the year was £969,000 (2021/22 - £866,000). The expected scheme contributions for the year ending 31 August 2024 are estimated at £1,235,000.

62

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

  1. Allocation of Consolidated Net Assets for the year ended 31 August 2023 The net assets at 31 August 2023 are held for the various funds as follows:
Tangible Tangible Net current
Long
Capital Funds fixed Investment assets/ term
assets properties Investments (liabilities) liabilities
Total
Permanent Endowment £’000
£’000		 £’000 £’000 £’000
£’000
General
School and Lyon Foundation
incl the Philathletic Trust* 3,421
10		 2,623 335 - 6,389
Harrow School Endowment Fund
-
985		 - - - 985
Shepherd Churchill Bequest* -
-		 5,203 (15) - 5,188
Butler Memorial Trust 21
-		 77 279 - 377
Awards
Harrow Awards Fund* -
-		 12,863 (107) - 12,756
L C Wilson Bequest -
-		 2,338 - - 2,338
Foundation Awards -
-		 2,687 - - 2,687
Harrow Challenge -
-		 4,376 (18) - 4,358
_____
____		 _____ _____ _____ ______
3,442
995		 30,167 474 - 35,078
_____
____		 _____ _____ _____ ______
Expendable Endowment
J G Apcar Trust* 302
77		 - 26 - 405
Harrow Challenge -
-		 2,612 22 - 2,634
Harrow Awards -
-		 4,115 177 - 4,292
_____
____		 _____ _____ _____ ______
302
77		 6,727 225 - 7,331
_____
____		 _____ _____ _____ ______
Total Capital Funds 3,744
1,072		 36,894 699 - 42,409
_____
_____		 _____ _____ _____ ______
Income Funds
Restricted
Harrow -
-		 - 3,915 - 3,915
JLS -
-		 233 166 - 399
Subsidiaries -
-		 835 452 (1,500) (213)
_____
____		 _____ _____ _____ ______
-
-		 1,068
4,533		 (1,500) 4,101
_____
____		 _____ _____ _____ ______
Unrestricted
Designated
Harrow Awards -
-		 24,232 (4,519) - 19,713
JLS -
-		 4,144 665 - 4,809
Masterplan -
-		 - - - -
Awards -
-		 - (182) - (182)
Other -
-		 - (116) - (116)
Bond -
-		 81,372 - (89,722)
(8,350)
General
Harrow 129,246
516		 9,989 (14,477) (5,253) 120,021
JLS 20,327
-		 - (1,153) (6,852) 12,322
Subsidiaries -
-		 - 1,594 - 1,594
______
_____		 _____ _____ _____ ______
149,573
516		 119,737 (18,188) (101,827) 149,811
______
_____		 _____ _____ _____ ______
______
_____		 _____ _____ _____ ______
Total Income Funds 149,573
516		 120,805 (13,655) (103,327) 153,912
______
_____		 _____ _____ _____ ______
TOTAL FUNDS 153,317
1,588		 157,699 (12,956) (103,327) 196,321
______
_____		 _____ _____ _____ ______
63

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

21. Allocation of Consolidated Net Assets for the year ended 31 August 2023

The movement in reserves for the various funds for the year ended 31 August 2023 are as follows:

Capital Funds Balance Income Expenditure Gains Transfers Balance
Brought and Carried
Forward Losses Forward
Permanent Endowment £’000 £’000 £’000 £’000 £’000
£’000
General
School and Lyon Foundation
incl the Philathletic Trust* 6,359 - (4) (46) 80 6,389
Harrow School Endowment Fund 985 - (29) 29 - 985
Shepherd Churchill Bequest* 5,293 - - (105) - 5,188
Butler Memorial Trust 377 - - - - 377
Awards
Harrow Awards Fund* 13,142 - (12) (37) (337) 12,756
L C Wilson Bequest 2,479 - (2) (47) (92)
2,338
Foundation Awards 2,717 - (2) 73 (101) 2,687
Harrow Challenge 4,447 - (3) (86) - 4,358
_____ ____ _____ _____ _____ ______
35,799 - (52) (219) (450) 35,078
_____ ____ _____ _____ _____ ______
Expendable Endowment
Harrow Challenge 2,793 - (2) (52) (105)
2,634
J P Apcar Trust 403 1 - 1 - 405
Other 4,183 178 (2) (67) - 4,292
_____ ____ _____ _____ _____ ______
7,379 179 (4) (118) (105)
7,331
_____ ____ _____ _____ _____ ______
Total Capital Funds 43,178 179 (56) (337) (555) 42,409
_____ ____ _____ _____ _____ _____
Income Funds
Restricted
Harrow 5,549 626 (4,658) 2,885 (487)
3,915
JLS 424 646
(668)		 (3) - 399
Subsidiaries 1,248 1,442
(4)		 (2,899) - (213)
_____ ____ _____ _____ _____ ______
7,221 2,714 (5,330) (17) (487)
4,101
_____ ____ _____ _____ _____ ______
Unrestricted
Designated
Harrow Awards 19,393 - - 320 - 19,713
JLS 4,194 36
(6)		 (64) 649 4,809
Masterplan (1,443) 60
(3,446)		 4,829 - -
Awards (182) - - 809 (809)
(182)
Other (116) - - - - (116)
Bond (9,382) - - 1,032 - (8,350)
General
Harrow 113,855 45,471
(45,783)		 (9,264) 15,742 120,021
JLS 12,546 15,573 (15,616) 468 (649) 12,322
Subsidiaries (280) 19,978 (5,723) 1,510 (13,891)
1,594
______ _____ _____ _____ _____ ______
138,585 81,118 (70,574) (360) 1,042 149,811
______ _____ _____ _____ _____ ______
______ _____ _____ _____ _____ ______
Total Income Funds 145,806 83,832 (75,904) (377) 555 153,912
______ ______ ______ ______ ______ ______
TOTAL FUNDS 188,984
______		 84,011
_____		 (75,960)
_____		 (714)
_____		 -
_____		 196,321
_____

64

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

21. Allocation of Consolidated Net Assets (continued)

*The Shepherd Churchill Bequest, the Butler Memorial Trust, the J G Apcar Trust, the Harrow Awards Fund and the Philathletic Trust are separate and legally distinct charities subject to a Uniting Direction issued by the Charities Commission under s96 (5) of the Charities Act 1993, dated 25 August 2004.

Assets forming the Philathletic Trust comprise land known as the Cricket Ground, the Bessborough Ground and part of Churchfields, combined with property from the Bessborough Memorial Trust. The original value of the bequest is not known and no current value is placed upon it. Assets of the Trust also included investments which were consolidated with the School & Lyon Foundation many years ago. It is not possible to identify the investments within that fund that form part of the Philathletic Trust.

Assets of the Butler Memorial Trust include the football fields following the amalgamation of the original Football Fields Trust and the Reverend Henry Montagu Butler DD Memorial Football Fields Trust under a 1988 Scheme. The original value of the land bequests is not known and no current value is placed upon the land. Income from investments that can still be identified as belonging to the Trust is deployed wholly in the maintenance of sports facilities in line with the original intention of the benefactors.

The transactions for the year to 31 August 2023 of the other charities referred to, included in the SOFA and Balance Sheet, are as follows:

Shepherd
Churchill
Bequest		 Shepherd
Churchill
Bequest		 Harrow
Awards
Fund		 Harrow
Awards
Fund		 Butler
Memorial
Trust		 Butler
Memorial
Trust		 J G Apcar
Trust
£’000 £’000 £’000 £’000
Investments
Additions - 1,804 - -
Disposals (5) (2,128) - -
Investment income
-
-		 - -
Realised gain - 43 - -

Unrealised (loss)/gains		 (103) 75 - 24

Net movement in cash held for
investment
2		 (25) - -
Investment properties
Rental income - - - (1)

In addition to the above Uniting Direction, the assets of the Harrow Land Trust comprise land currently occupied by the Farm and the Golf Course, the original value of which is not known and no current value is placed upon it.

65

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

  1. Allocation of Consolidated Net Assets for the year ended 31 August 2022 The net assets at 31 August 2022 were held for the various funds as follows:
Tangible Net current
Long
Capital Funds fixed Investment assets/ term
assets properties Investments (liabilities) liabilities
Total
Permanent Endowment £’000
£’000		 £’000 £’000 £’000
£’000
General
School and Lyon Foundation
including the Philathletic Trust* 3,501
10		 2,517 331 - 6,359
Harrow School Endowment Fund
-
985		 - - - 985
Shepherd Churchill Bequest*
-
-		 5,309 (16) - 5,293
Butler Memorial Trust 23
-		 77 277 - 377
Awards
Harrow Awards Fund* -
-		 13,106 36 - 13,142
L C Wilson Bequest -
-		 2,479 - - 2,479
Foundation Awards -
-		 2,717 - - 2,717
Harrow Challenge -
-		 4,465 (18) - 4,447
_____
____		 _____ _____ _____ ______
3,524
995		 30,670 610 - 35,799
_____
____		 _____ _____ _____ ______
Expendable Endowment
J G Apcar Trust* 302
77		 - 24 - 403
Harrow Challenge -
-		 2,770 23 - 2,793
Harrow Awards -
-		 3,376 807 - 4,183
_____
____		 _____ _____ _____ ______
302
77		 6,146 854 - 7,379
_____
____		 _____ _____ _____ ______
Total Capital Funds 3,826
1,072		 38,816 1,464 - 43,178
_____
____		 _____ _____ _____ ______
Income Funds
Restricted
Harrow -
-		 - 5,549 - 5,549
JLS -
-		 192 232 - 424
Subsidiaries -
-		 849 514 (115) 1,248
_____
____		 _____ _____ _____ ______
-
-		 1,041 6,295 (115) 7,221
_____
____		 _____ _____ _____ _____
Unrestricted
Designated
Harrow -
-		 23,035 (3,642) - 19,393
JLS -
-		 3,728 466 - 4,194
Masterplan -
-		 - (1,443) - (1,443)
Awards -
-		 - (182) - (182)
Other -
-		 - (116) - (116)
Bond -
-		 80,333 - (89,715) (9,382)
General
Harrow 104,252
976		 29,281 (16,943) (3,711) 113,855
JLS 21,106
-		 - (562) (7,998) 12,546
Subsidiaries 2
-		 - (282) - (280)
______
_____		 _____ _____ _____ ______
125,360
976		 136,377 (22,704) (101,424) 135,585
______
_____		 _____ _____ _____ ______
Total Income Funds 125,360
976		 137,418 (16,409) (101,539) 145,806
______
_____		 _____ _____ _____ ______
TOTAL FUNDS 129,186
2,048		 174,234 (14,945) (101,539) 188,984
______ _____ _____ _____ _____ ______

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THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

21. Allocation of Consolidated Net Asset for the year ended 31 August 2022

The movement in reserves for the various funds for the year ended 31 August 2022 are as follows:

Capital Funds Balance Income Expenditure Gains Transfers Balance
Brought and Carried
Forward Losses Forward
Permanent Endowment £’000 £’000 £’000 £’000 £’000
£’000
General
School and Lyon Foundation
incl the Philathletic Trust* 6,300 - (2) (19) 80 6,359
Harrow School Endowment Fund 790 - - 195 - 985
Shepherd Churchill Bequest* 5,340 - (4) (43) - 5,293
Butler Memorial Trust 359 - - 18 - 377
Awards
Harrow Awards Fund 14,009 - (45) (424) (398) 13,142
L C Wilson Bequest 2,594 - (2) (21) (92)
2,479
Foundation Awards 2,825 - (2) (21) (85)
2,717
Harrow Challenge 4,485 - (4) (34) - 4,447
_____ ____ _____ _____ _____ ______
36,702 - (59) (349) (495) 35,799
_____ ____ _____ _____ _____ ______
Expendable Endowment
Harrow Challenge 2,922 - (2) (23) (104)
2,793
J P Apcar Trust 380 - - 23 - 403
Other 3,377 807 (2) 1 - 4,183
_____ ____ _____ _____ _____ ______
6,679 807 (4) 1 (104)
7,379
_____ ____ _____ _____ _____ ______
Total Capital Funds 43,381 807 (63) (348) (599) 43,178
_____ ____ _____ _____ _____ _____
Income Funds
Restricted
Harrow 19,716 1,769 (3,962) (77) (11,897)
5,549
JLS 213 866
(658)		 3 - 424
Subsidiaries 1,045 152 (14) 65 - 1,248
_____ ____ _____ _____ _____ ______
20,974 2,787 (4,634) (9) (11,897)
7,221
_____ ____ _____ _____ _____ ______
Unrestricted
Designated
Harrow Awards 23,376 2,921 (54) (6,850) - 19,393
JLS 4,129 - (3) 68 - 4,194
Masterplan 1,343 140 (13,318) 10,392 - (1,443)
Awards 182 - - 362 (726)
(182)
Other 105 11 (1) (231) - (116)
Bond (12,959) - - 3,577 - (9,382)
General
Harrow 99,474 35,643 (29,385) (14,151) 24,954 113,855
JLS 12,313 14,960 (14,211) (516) - 12,546
Subsidiaries (671) 16,890 (4,713) (54) (11,732)
(280)
______ _____ _____ _____ _____ ______
127,292 70,565 (64,365) (7,403) 12,496 135,585
______ _____ _____ _____ _____ ______
Total Income Funds 148,266 73,352 (68,999) (7,412) 599 145,806
______ ______ ______ ______ ______ ______
TOTAL FUNDS 191,647 74,159 (69,062) (7,760) - 188,984
______ _____ _____ _____ _____ ______

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THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

21. Allocation of Consolidated Net Assets (continued)

The transactions for the year to 31 August 2022 of the other charities referred to, included in the SOFA and Balance Sheet, are as follows:

Shepherd
Churchill
Bequest		 Shepherd
Churchill
Bequest		 Harrow
Awards
Fund		 Butler
Memorial
Trust
J G Apcar
Trust		 Butler
Memorial
Trust
J G Apcar
Trust
£’000 £’000 £’000 £’000
Investments
Additions - 1,020 - -
Disposals (3) (1,592) - -
Investment income
-
-		 (1) -
Realised losses - 35
-		 -
Unrealised gains (43) (459) 18 24

Net movement in cash held for
investment
(1)
162		 -
-
Investment properties
Rental income - - - (1)

22. Indemnity insurance

Professional Indemnity and Governors’ Liability insurance is purchased by the Schools. The insurance is in respect of claims arising from any negligent act, error or omission committed in good faith and covers Proprietors, Principals, Trustees, Governors and Corporation staff.

The cost of the insurance amounted to £9,000 (2021/22 - £9,000).

23. Related party transactions

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THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

23. Related party transactions (continued)

Transactions with subsidiaries during the year, together with the outstanding balances at the year end are detailed below. The transactions include payments for the provision of staff and administrative services.

Related party transactions for the year ended 31 August 2023

Income/(Expenditure) Income/(Expenditure) Debtor/(Creditor) Balance
£’000 £’000 £’000 £’000
HSEL 317 (761) 426 -
HISL 5,265 (15) 2,561 -
HDT 9,109 (122) 24 (1,500)

Related party transactions for the year ended 31 August 2022

Income/(Expenditure) Income/(Expenditure) Debtor/(Creditor) Balance
£’000 £’000 £’000 £’000
HSEL 316 (338) 862 -
HISL 4,732 (55) 2,225 -
HDT 7,126 (89) 104 (115)

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NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2023

THE KEEPERS AND GOVERNORS OF THE POSSESSIONS REVENUES AND GOODS OF THE FREE GRAMMAR SCHOOL OF JOHN LYON

24. Statement of Financial Activities for the year ended 31 August 2022

Income Funds
Capital Funds
Capital Funds
Capital Funds		 Total
Unrestricted Restricted Expendable Permanent
Notes
 Funds Funds Endowment Endowment
Income and endowments from: £’000 £’000 £’000 £’000 £’000
Charitable activities
School fees receivable 1 49,977 -
-		 - 49,977
Ancillary trading income 2i 3,285 -
-		 - 3,285
Voluntary income - 992
-		 - 992
Voluntary sources
Other charitable income 2ii 6,704 1,589
807		 - 9,100
Tsunami income - 16
-		 - 16
Other trading activities
Non ancillary trading income 2iii 8,265 -
-		 - 8,265
Other incoming resources 3 30 90
-		 - 120
Investments
Investment income 4 2,304 100
-		 - 2,404
______ ______ ______ ______ ______
Total 70,565 2,787
807		 - 74,159
______ ______ ______ ______ ______
Expenditure on:
Raising funds
Fundraising costs 1,086 284
-		 - 1,370
Non ancillary trading expenses 2iv 3,400 -
-		 - 3,400
Finance costs 7 3,549 -
-		 - 3,549
Investment management costs 623 1
4		 59 687
______ ______ ______ ______ ______
8,658 285 4 59 9,006
______ ______ ______ ______ ______
Charitable activities
Teaching costs 24,321 - - - 24,321
Welfare costs 7,164 - - - 7,164
Premises costs 14,636 - - - 14,636
Support costs 6,946 - - - 6,946
Grants, awards and prizes 5iii - 4,336 - - 4,336
Other charitable projects - 13 - - 13
Ancillary trading expenses 5iii 2,640 - - - 2,640
______ ______ ______ ______ ______
55,707 4,349 - - 60,056
__ _ __ __ __
Total Expenditure 6-7 64,365 4,634 4 59 69,062
______ _____ ______ ______ ______
Net Income/(Expenditure) before
Transfers and Investment
Gains/(Losses) 6,200 (1,847) 803 (59) 5,097
Transfers between funds 8 12,495 (11,897) (104) (495) -
Gains on investment properties 11 97 - 24 195 316
(Losses)/gains on investment assets 12 (11,794) (9) (23) (544) (12,370)
_____ _____ ______ ____ _____
Net Income/(Expenditure) 6,999 (13,753) 700 (903) (6,957)
Actuarial (loss)/gain on defined-
benefit pension scheme 20 4,294 - - - 4,294
_____ _____ ______ ______ _____
Net Movement in Funds 11,293 (13,753) 700 (903) (2,663)
Balances at beginning of year 127,292 20,974 6,679 36,702 191,647
______ _____ ______ ______ ______
Balances at end of year 138,585 7,221 7,379 35,799 188,984
______ _____ ______ ______ ______

70