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2024-08-31-accounts

Annual Report and Consolidated Financial Statements For the year ended 31 August 2024

Charity number 310033

The Keepers and Governors of the Possessions, Revenues and Goods of The Free Grammar School of John Lyon

Comprising Harrow School (harrowschool.org.uk) and John Lyon School (johnlyon.org)

Part of John Lyon’s Foundation

Design inspiration: tradition and innovation

The central panes of the John Lyon window in the Alex Fitch Room at Harrow School show John Lyon receiving the Royal Charter to found Harrow School from Queen Elizabeth I. The window’s traditional pattern has inspired the contemporary design of this annual report.

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Contents

The Corporation

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 is referred to as “the Corporation”. The Corporation comprises Harrow School and John Lyon School – educating 1,600 pupils in the UK – as well as two wholly owned trading subsidiaries and a fundraising trust that generate income to support our charitable work (together with the Corporation known as “the Group”).

The Corporation is a registered UK charity, number 310033.

1 About us 6
1.1
John Lyon’s Foundation		 6
1.2
The Corporation and Group		 7
1.3
Foundation Governors (trustees)		 8
1.4
Year at a glance		 9
2 Foundation Governors’ (trustees’) foreword 10
3
4		 Our charitable objects
Our strategy		 12
14
4.1
Strategic objectives and pillars
4.2
How we manage risks and uncertainties		 14
16
5 Meeting our objectives 18
5.1
Promoting educational excellence and enrichment		 20
5.2
Providing fee assistance that transforms lives		 24
5.3
Engaging with our community		 27
6 Our Group activities
6.1
Harrow International Schools Limited		 28
28
7 6.2
Harrow School Enterprises Limited
6.3
Harrow Development Trust
Corporate information
7.1
Governance		 32
33
34
34
7.2
Addresses and advisers		 36
8 Financial performance, policies and plans 37
9 Independent auditor's report 41
10 Financial statements 44
10.1
Consolidated statement of financial activities		 44
10.2
Balance sheet		 45
10.3
Consolidated cash flow statement		 46
10.4
Accounting policies		 49
10.5
Notes to financial statements		 53
Appendix 1 – Glossary of terms 90
Appendix 2 – Contact information 91

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1 About us

1.1 John Lyon’s Foundation

John Lyon, a farmland owner from north-west London, was granted a Royal Charter from Queen Elizabeth I in 1572 to develop a school for boys in Harrow on the Hill and to provide an endowment to maintain the two roads from Harrow on the Hill to Marble Arch.

1.2 The Corporation and Group

The Corporation comprises:

Harrow School

Today, John Lyon’s Foundation sustains its founder’s legacy by working to transform the lives of children and young people through education .

An independent, full-boarding senior school for boys, which prepares pupils with diverse backgrounds and abilities for a life of learning, leadership, service and personal fulfilment.

John Lyon School

An independent, co-educational, all-through day school, with academic excellence and opportunity at its heart.

FOUNDATION GOVERNORS

The Corporation

Charity number 310033 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.

Charity Number 237725

A separate charity from the Corporation that gives grants to promote, through education, the life-chances of children and young people who live in nine north-west London boroughs.

The Corporation and its charitable activities are supported by two wholly owned trading subsidiaries and a fundraising trust. Together with the Corporation, these entities comprise the Group. es

Harrow International Schools Limited

HISL – company number 07103979 HISL sub-licenses the Harrow brand to schools around the world and oversees their performance.

www.jlc.london

JOHN LYON SCHOOL

TRADING FUNDRAISING SUBSIDIARIES TRUST Harrow Harrow Harrow International School Development Schools Enterprises Trust Limited Limited (HDT) (HISL) (HSEL) PTT]

This annual report for the financial and academic year 2023/24 consolidates the financial and operating activities of the Corporation and the Group.

The Corporation is sole trustee of John Lyon's Charity but does not consolidate the latter in to the Corporation and Group.

Harrow School Enterprises Limited

HSEL – company number 01617359 HSEL manages the Corporation’s facilities commercially.

Harrow Development Trust

HDT – charity number 296097 HDT raises funds from donors and benefactors.

The Group

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1 About us

1.3 Foundation Governors (trustees) and officers

Current and those who served during the year ended 31 August 2024

Foundation Governors (trustees)

D G P Eyton CBE MA FIOM FIOD FRENG Chair C G T Stonehill MA

H R Mould MA RGN Professor A D’Angour MA PhD ARCM M L Mrowiec MA C Gallagher MA MSc Vice Admiral J P Kyd CBE BSc PGDip N J Enright MA MBA NPQH Dr S V Rawal PhD

G W J Goodfellow KC MA LLM

M S Brounger LLB Ret. 31 August 2024 A C Goswell BSc MRICS The Hon A Butler KC MA Deputy Chair D J C Faber MA R T G Winter CBE BA FCA A D Hart LLB FRSA Professor D J Payne MChem DPhil J P J Glover BA Sir J R Symonds CBE BA FCA

L J Halligan MPhil BSc Dr D A Taylor MBBS BSc MD FRCP M C Wallace BCom

J C Seppala BA Appt. 25 November 2023 S A Huang MA MSc PGCE Appt. 21 June 2024

Officers

Corporation and Group

Harrow School

John Lyon School

Head Master W M A Land MA FLS FSB

Head R K Hardy PGCE MA MEd

Chief Financial Clerk to the Governors & General Counsel & Commercial Officer, John Lyon’s Foundation The Hon A C Millet MA D H Curley MA MBA CPFA

Bursar Bursar J M Wood JP BA N Slater BSocSc ACA ChMC Appt. 3 June 2024

Chief Operating Officer Cdr G R Mawdsley RN MA Left 31 August 2024

The Group entities

Harrow International Schools Limited

Harrow School Enterprises Limited

Harrow Development Trust

Chair M L Mrowiec MA

Chair A D Hart LLB FRSA

Chair J P J Glover BA

1.4 Year at a glance

Over

Continued educational excellence

£6m

in bursaries

Over 1,600 pupils

to 220+ pupils and

with strong examination results and university outcomes, plus co-curricular success.

£0.75m

in scholarships to 300+ pupils

More than

Internationally: 12 licensed schools 7,800+ pupils

22,000

children benefiting from community partnership programmes

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Total Group income
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Net Group income

2023/24 2022/23 £88m £84m

2023/24 £17m

2022/23 £8m

Cashflow from Group operating activities

Increase in Group cash in the year

2023/24 2022/23 £19m £14m

2023/24 2022/23 £4m £2m

Income to the Corporation from Group entities

Harrow International Harrow School Harrow Schools Limited Enterprises Limited Development Trust -4 IonSOx’ 2023/24 2023/24 2023/24 £5.5m £0.3m £7.3m

Source: Consolidated Statement of Financial Activities 2023/24, see page 44

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THE CORPORATION ANNUAL REPORT

2 Foundation Governors’ (trustees’) foreword

The Foundation Governors, as trustees of the Corporation, are pleased to present this annual report. 2023/24 was another highly successful year for the Corporation, educationally and for our delivery of public benefit.

Harrow School and John Lyon School celebrated exceptional achievements across the board – through their continued educational excellence, impactful charitable initiatives and significant progress on strategic plans.

The key to this success has been a commitment to fostering strong relationships between our dedicated staff, engaged pupils, supportive parents, John Lyon's Charity (of which the Corporation is sole trustee), valuable external partners and the wider community. We create an environment in which academic and pastoral care flourish, charitable endeavours thrive, and more pupils than ever before benefit from life-changing bursaries and scholarships.

Harrow School’s A level pupils achieved impressive results, with a high proportion of top grades, gaining places at leading universities: a quarter of applicants secured places at the world’s top 20*. GCSE results were equally strong, with a record number of high grades.

John Lyon School also saw excellent A level results, with strong performances in key subjects such as Mathematics and pupils securing places on competitive courses at prestigious universities. GCSE pupils performed well too, with a significant percentage achieving top grades in multiple subjects and a high overall pass rate.

Pupils at both schools continued to achieve high standards in a wide range of co-curricular activities. Harrow School’s 1st XV rugby team maintained their winning streak, taking home the Daily Mail Cup for the second year in a row, while John Lyon School hosted its third TEDx event, which reached 165,000 views online. Enrichment remains a key component of the holistic education we provide, and across the schools

there is a buzz of activity around sport, arts and culture, as well as leadership and service.

John Lyon’s vision of educational opportunity continues through the bursaries and scholarships that the Corporation schools provide. In the last five years, Harrow School and John Lyon School have awarded a combined total of more than £26 million in bursaries and scholarships. In the financial and academic year 2023/24 alone, the schools awarded over £6 million in bursaries to more than 220 pupils, and over £0.75 million in scholarships.

John Lyon’s Foundation is committed to community engagement and partnerships. Shaftesbury Enterprise, Harrow School’s charitable and partnership programme, and Blackwell Enterprise, John Lyon School’s equivalent, are examples of this commitment in action. The Corporation works closely with John Lyon’s Charity on this priority.

In addition to the Corporation, this annual report also refers to the activities of the Group.

Between them, Harrow International Schools Limited’s (HISL) partners educate over 7,800 pupils and employ over 2,000 staff members. In July 2024, HISL expanded its reach by agreeing with a new partner, Taaleem Holdings plc, to establish Harrow International Schools in the Gulf Cooperation Council countries.

Lastly, thanks to generous contributions, Harrow Development Trust (HDT) supported the strategic goals and projects set out by the Corporation. In 2023/24, HDT’s fundraising efforts also helped to provide bursary-assisted places at Harrow School. The independent schools sector now faces

a challenging financial environment. Despite these headwinds, the Corporation is in a robust financial position in terms of its resources and its operating performance, thanks to the hard work and dedication of staff and the Foundation Governors, and to our partnerships.

The Corporation will continue to deliver on our charitable aims and objects, providing public benefit through the outstanding education offered by our schools, transformational bursaries and scholarships, and constructive engagement with our community and partners. We wish to extend our gratitude to our

pupils and their families, to our staff and to our partners for their ongoing support and contribution. Together, we will continue to build on our successes, providing exceptional educational opportunities for children and young people in the borough of Harrow, across our wider community and around the world, for many years to come.

Foundation Governors

*[According to QS rankings https://www.topuniversities.com/world-university-rankings]

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3 Our charitable objects

The Corporation’s charitable objects are set out in the Royal Charter of 1572:

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, and one Schoolmaster and Usher, within the Village of Harrow-on-the-Hill, in the said County of Middlesex, of new to erect, found and for ever to establish for the perpetual education teaching and instruction of Children and Youth of the said Parish; and Two Scholars within our University of Oxford, liberally to endow and maintain, and other common ways, as well between Edgware and London as in other places, at his own very great charge, intends to repair and mend, and other endowments and works of piety, to the very great comfort and encouragement of the Scholars within the said parish applying themselves to learning, thereby giving a very good example to all others to imitate the like hereafter, and also to the common profit of all our subjects.

We therefore… of our special grace, and also of our certain knowledge and mere motion do will, grant and ordain… that for ever hereafter there shall be one Grammar School in the Village of Harrow-on-the-Hill… which shall be called the Free Grammar School of John Lyon, for the bringing up, teaching and instruction of Children and Youth in Grammar, for all time hereafter coming. ” Translation from the original Latin.

As Foundation Governors, we oversee the Corporation and Group’s delivery of our charitable objects and ensure that we are consistently providing benefit to our communities, both within the Corporation’s schools and beyond.

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RIGHT
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Made in 1572, this wax seal was originally attached to the base of the Royal Charter.

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4 Our strategy

4.1 Strategic objectives and pillars

As a Corporation and a Group, we have three strategic objectives:

Promoting educational excellence and enrichment

Providing fee Engaging assistance with our that transforms community lives

Enabling pupils needing fee assistance to benefit from an education at Harrow School or John Lyon School.

Providing an education that produces school leavers who are empowered and ready for life.

Developing partnerships that improve educational outcomes and opportunities for more young people, particularly those who face significant barriers to progress.

As we work to achieve these objectives, we continually seek to enhance our approach – ensuring that what we do remains impactful, inclusive and aligned with our charitable objects.

Harrow International Schools Limited (HISL)

HISL partners with established education operators overseas to facilitate their delivery of a world-class education under the Harrow name.

STRATEGIC PILLARS

Optimise: Connect: Enhance : Explore : Support the HarrowEnhance collaboration Extend the prestige of Identify and evaluate branded schools to among the Harrow the Harrow brand. opportunities to achieve excellence and Family of Schools. increase and diversify maximum revenues. income sources.

Harrow School

For over 450 years, Harrow School has sought to prepare boys with diverse backgrounds and interests for a life of public service, learning, leadership and personal fulfilment.

STRATEGIC PILLARS

Scholarship: Opportunity: Character: People: Operations: Encouraging Ensuring pupils Maturing the Admitting pupils Providing intellectual curiosity, become their individual, enabling who will thrive environments, independent better selves by pupils to uncover and contribute, infrastructure and thought and developing their the talents, skills and and recruiting and functions that effective learning potential. values to be nurturing staff who make us leaders in habits. of good influence. facilitate excellence. our field.

John Lyon School

John Lyon School encourages every child to develop individual character, happiness and growth – equipping them with the tools to succeed in their chosen futures, making a positive impact on the world.

STRATEGIC PILLARS

Character: Learning: Global Outlook: Community: Providing a nurturing coPupils and staff working Enabling meaningful Through the work of educational environment together to flourish experiences where Blackwell Enterprise, for pupils to be happy, academically and develop pupils and staff supporting our staff and curious, independent, a love of learning. collaborate across pupils in engaging with life-long learners who all aspects of the our community. embrace challenge and curriculum. opportunity.

Harrow School Enterprises Limited (HSEL)

HSEL delivers high-quality events and holiday courses, and manages the Corporation schools’ sports facilities, tours and lettings.

STRATEGIC PILLARS

Education: Events: Sports: Locations: Summer camps Weddings, corporate Facilities for use by For film, television and and other learning away days, dinners the community as well other entertainment and programmes . and parties . as international and photography projects. national teams.

Harrow Development Trust (HDT)

HDT helps to secure the future of Harrow School through fundraising, with support from the School community and working closely with Foundation Governors, the Head Master and the Harrow Association (Harrow’s alumni organisation).

STRATEGIC PILLARS

Heritage:

Bursaries:

Buildings: Bursaries: Heritage: Supporting high-priority Widening access to a Preserving the Corporation’s capital projects. Harrow education. historical estate.

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4 Our strategy

4.2 How we manage risks and uncertainties

The Foundation Governors

review the risk context for the Corporation and Group at each Foundation Governors Meeting and at the termly Audit and Risk Committee (known before 31 August 2024 as the Foundation Risk Oversight and Opportunities Committee).

Key Risks

Changes in the geopolitical landscape: the Corporation and Group have partners in diverse international markets and receive income from outside the UK. Changes in the geopolitical landscape may present risks to this income.

Financial pressures in the UK independent school sector:

the Corporation and Group is active in the UK independent school sector through its operation of Harrow School and John Lyon School. The sector’s financial context has changed in recent years with increasing costs and the introduction of VAT on school fees from 1 January 2025.

Cybercrime: as with many organisations, the Corporation and Group rely on technology, and their operations may be subject to cybercrime and related risks.

Through a structured approach to risk management, our Foundation Governors and Officers actively identify, oversee and mitigate these risks, along with several others that can vary in nature and level across the Corporation and Group.

The Chief Financial and Commercial Officer provides assurance to the Foundation Governors on our risk management processes and on the overall risk level.

We will continue to identify, oversee and mitigate all relevant risks and, as a priority, ensure that the Corporation has the processes and resources in place to ensure the safeguarding, health and safety, and wellbeing of our pupils, staff and community.

Actively identifying, overseeing and mitigating risks through a structured approach.

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5 Meeting our objectives

Public benefit

With a focus on our charitable objects, the Corporation delivered public benefit in 2023/24 through our education activities, our community engagement and our partnerships.

As Foundation Governors, we confirm that we have complied with Section 17(5) of the Charities Act 2011, both in our statutory requirement to report on our public benefit, and in having due regard to the public benefit guidance published by the Charity Commission where relevant to matters to which the guidance relates.

Key highlights

Continued focus on high-quality education at Harrow School and John Lyon School with strong A level and GCSE performances.

Over

John Lyon School hosted the VEX Robotics

£6m

in bursaries

season opener and qualified for the regional finals.

to 220+ pupils and

£0.75m in scholarships to 330+ pupils.

More than 22,000 children benefited from community and partnership programmes.

Close to

£0.5 million and resources in funding

Harrow International Schools Limited

Harrow School Enterprises Limited

forged a new partnership

maintained its financial contribution to the Corporation.

with Taaleem Holdings plc to establish Harrow International Schools in the Gulf Cooperation Council countries.

In an unbeaten season,

Harrow School’s 1st XV rugby team won

Over

hours 86,000 of volunteering by pupils and staff, and community use of Corporation facilities.

the National Under-18 Continental Tyres Schools Cup final at Twickenham and the Daily Mail Trophy for a second year.

John Lyon School hosted a third TEDx event

that attracted

Harrow Development Trust

over 165,000 online views.

continued to support the Corporation’s strategic objectives through fundraising activity.

provided for community activities, excluding volunteering hours.

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ANNUAL REPORT 2023/24

5 Meeting our objectives

5.1 Promoting educational excellence and enrichment

Harrow School

As Foundation Governors, we seek to ensure that Harrow School and John Lyon School provide an education that produces school leavers who are empowered and ready for life. This commitment is central to how we govern and oversee the Corporation’s activities.

Pupils also enjoyed many successes in academic competitions and Olympiads.

Harrow School’s outgoing Upper Sixth achieved outstanding A level results in the summer of 2024.

Sporting highlights included the cricket First XI's victory over Eton at Lord's and the rugby 1st XV winning the Under-18 Continental Tyres Schools Cup at Twickenham and retaining the Daily Mail Trophy for a second consecutive year. Harrow was also the joint winner of the Brian Howes Sabre Trophy at the Public Schools Fencing Championships.

Almost a third of all grades were A, with over two thirds either A or A. Over 90% of all of the grades were A–B. Twenty-six pupils gained three or more As and 80 pupils gained three or more A*–A grades.

The excellent examination results and university outcomes achieved by our pupils, combined with our pastoral programmes, demonstrate the ongoing effectiveness of our educational strategies.

These strong A level results translated into a positive set of university outcomes, with Harrovians taking up places at six of the eight Ivy League schools in the USA, and 47 pupils accepting places at universities ranked in the world’s top 20 including Princeton, Columbia and Edinburgh.

Music, art and drama thrived, with numerous productions in the School’s Ryan Theatre, a performance at Shakespeare's Globe Theatre, art exhibitions in the Pasmore Gallery, and over 100 musical performances. These achievements, and many others, reflect the Harrow School values of courage, honour, humility and fellowship, strengthening the School’s close-knit community.

At GCSE, over 40 % of results were grade 9, with two-thirds graded 9 or 8. The 9–7 grade percentage was the highest on record since 2013. Sixteen pupils gained ten or more grade 9s, and 24 gained nine or more grade 9s.

Harrow School’s values - courage, honour, humility and fellowship - strengthen the School’s close-knit community.

New developments on the Harrow School estate in 2023/24 included the opening on Speech Day of Harrow’s new Biology and Chemistry Schools, with stateof-the-art teaching laboratories, a dedicated research laboratory and a 180-seat lecture theatre.

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5 Meeting our objectives

5.1 Promoting educational excellence and enrichment

John Lyon School

graded 7 or higher in six or more subjects. High marks were common, with a fifth of all grades at grade 9, and nearly half graded 9 or 8.

At John Lyon School, 12% of all A level grades awarded in the summer of 2024 were A. A significant number of pupils achieved at least two A–A grades. Nearly four fifths of all grades fell within the A*–C range.

Nearly two-thirds of all grades were a 9, 8 or 7, and 92% of all grades were a pass at grade 5 or above.

Year 13 leavers went on to read competitive university courses such as Medicine, Chemistry, Mathematics, Engineering, Computing and Data Science at universities including the University of Oxford, the University of Cambridge, University College London, Imperial College London, University of York, University of Nottingham, University of Southampton, University of Bath, and the London School of Economics and Political Science.

During 2023/24, pupils at John Lyon School excelled in sports, music, art and STEAM. Prep and Senior pupils performed in multiple concerts and productions, with the winter production of The Addams Family – The Musical Comedy receiving rave reviews.

and the London School of Economics John Lyon School also hosted its and Political Science. third TEDx event on campus, with the recorded videos receiving over John Lyon School pupils also 165,000 views online, as well as celebrated strong GCSE results, with a the VEX Robotics season opener, at third of all pupils achieving grade 8 or which John Lyon secured qualification 9 in at least six subjects, and over half for the regional finals.

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5 Meeting our objectives

5.2 Providing fee assistance that transforms lives

Enabling pupils needing fee assistance to benefit from an education at Harrow School or John Lyon School is an important part of our strategy to meet our charitable objects and to deliver public benefit.

The Foundation Governors maintained the significant commitment to fee assistance in 2023/24, with Harrow School and John Lyon School providing in excess of £6m in bursaries to more than 220 pupils, and over £0.75m in scholarships to over 330 pupils.

Working together in partnership across the Foundation, our mission is to:

“ Transform the lives of children and young people through education.”

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We aim to help children and young people maximise their potential, broaden their horizons, and improve their quality of life.

5 Meeting our objectives

5.3 Engaging with our community

Shaftesbury Enterprise

As Foundation Governors, we are committed to delivering public benefit by developing community partnerships that improve educational outcomes and opportunities for more young people, particularly those who face significant barriers to progress.

Shaftesbury Enterprise delivers Harrow School’s charitable and partnership work in the areas of academia, culture, sport, community, and conservation and sustainability. Through Shaftesbury Enterprise, pupils and staff engage purposefully with local and national organisations to improve educational outcomes and opportunities for young people, particularly those who face significant barriers to progress. This work is undertaken in collaboration with partner schools, local authorities and charities in order to deliver significant benefit in the London Borough of Harrow and beyond.

Blackwell Enterprise

Through our work with Shaftesbury Enterprise (Harrow School’s charitable and partnership programme), Blackwell Enterprise (John Lyon School’s equivalent), John Lyon’s Charity, other charities, schools and local councils, we aim to help children and young people maximise their potential, broaden their horizons, and improve their quality of life.

Blackwell Enterprise encompasses much of John Lyon School’s charitable and partnership work. Through these philanthropic initiatives, we are focused on enriching and enhancing the lives of our local communities. Blackwell Enterprise provides opportunities to help those who need it most through charitable works, community service and the sharing of three well-equipped campuses in Harrow on the Hill, central Harrow and Sudbury. The work extends to directly supporting young people who use our school facilities and receive visits from staff and pupils, senior citizens we visit in care homes, and our charities and partners.

Combined 2023/24 statistics ~~ee~~

Over More than @ hours : 86,000 22,000 of volunteering by pupils and children benefited. staff, and community use of Corporation facilities.

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6 Our Group activities

The Corporation and its charitable activities are supported by two wholly owned trading subsidiaries (HISL and HSEL) and a fundraising trust (HDT). Together with the Corporation, these entities comprise the Group.

6.1 Harrow International Schools Limited

HISL partners with established education operators overseas to facilitate their delivery of a world-class education under the Harrow name.

In 2023/24, HISL appointed a Chief Education Officer to oversee the development and delivery of the Harrow Standards, which outline expectations of Harrow-branded schools in their localised delivery of a Harrow education.

Other activities included induction and shadowing days for new Harrow-branded school staff at Harrow School, and conferences on higher education and boarding. Pastoral and boarding practices also received specialist support.

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Map Key
O 1 Harrow School 5 3
3 2 John Lyon School 14 og
AISL Harrow Schools 11
13 1 6
3 Appi, Japan 2
4 Bangkok 16 10 12
LONDON
5 Beijing 9
6 Chongqing 15 13 4 8
am: . G0
7
7 Haikou
8 Hengqin
9 Hong Kong
9 oO "DO “940
10 Nanning
11 Shanghai
12 Shenzhen Qianhai (x2)
Amity Harrow Schools
13 Bengaluru
O 14 New York (planned)
Taaleem Harrow Schools
@ 15 Abu Dhabi (planned)
@ 16 Dubai (planned)
4 9 11
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6 Our Group activities

6.1 Harrow International Schools Limited

Educating over 7,700 students

2,000+ members of staff

AISL Harrow Schools

Asia International School Limited (AISL) is HISL's founding partner, with 11 schools in East and Southeast Asia.

Highlights from their summer 2024 examination results include 56% of GCSE examinations at Harrow International School Hong Kong achieving grade 9 and 91% securing grades 7–9; and four AISL Harrow Schools achieving the highest outcomes in China for first cohorts undertaking GCSE examinations.

From the four long-established AISL Harrow Schools with Year 13 leavers in 2023/24, more than 20 students moved on to Imperial College London, with a similar number to Oxford University, Cambridge University and Ivy League universities, plus MIT (Massachusetts Institute of Technology), Stanford University and Caltech (California Institute of Technology).

In addition during the 2023/24 period, BSO – British Schools Overseas, the UK Government’s inspection scheme for British international schools – judged Harrow International School Shanghai as outstanding in nearly all areas.

Amity Harrow Schools

HISL’s second partner – Amity Education Group, India’s leading not-for-profit international education foundation – opened Harrow International School Bengaluru in a distinctive new campus in August 2023.

In its first year of opening, the school made two student visits to Harrow School and John Lyon School: one as part of a football tour of the UK and another for the annual Harrow Family of Schools Fifth Form Conference.

Taaleem Harrow Schools

In June 2024, HISL signed an agreement with its third partner, Taaleem Holdings plc, to establish Harrow International Schools in the Gulf Cooperation Council countries.

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6 Our Group activities

6.2 Harrow School Enterprises Limited

HSEL delivers high-quality events and holiday courses, and manages the Corporation’s sports facilities, tours and lettings. HSEL had a successful 2023/24, generating a net profit to support the Corporation’s strategic objectives.

In addition to welcoming international students to its summer programmes, including offering free places to refugees, HSEL expanded its global reach through the delivery of online English language courses. The iconic Harrow School estate also served as a backdrop for major film and TV productions, attracting prominent actors and athletes. HSEL further solidified its community engagement by hosting media events and providing training facilities for a major NFL (National Football League) team.

6.3 Harrow Development Trust

HDT helps to secure the future of Harrow School through fundraising, with support from the School community and working closely with Governors, the Head Master and the Harrow Association (Harrow’s alumni organisation).

Generous donations from a wide range of supporters in 2023/24 helped to fund bursaries, and contributed to the School’s non-fee income. HDT also supported building for the future through capital projects such as the new Biology and Chemistry Schools, the ongoing upgrade of the Shepherd Churchill Dining Hall, and the restoration of the historic Speech Room.

HDT’s fundraising efforts involved events, communications and partnerships with the Harrow Association and other volunteers, along with promoting legacy giving. These activities supported various bursary schemes, enabling a significant number of bursary-assisted places. Funding also supported partnerships with local charities through initiatives like fundraising runs and gala performances, and the launch of a sustainability programme to engage the Harrow School community in environmental protection.

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7 Corporate information

for the period 1 September 2023–31 August 2024

7.1 Governance

The Corporation’s constitution comprises the objects contained in the original Elizabethan Charter and separate “statutes” promulgated pursuant to the Public School’s Act 1868 (and subsequent legislation) updated over the years, most recently in June 2016 and approved and sealed by the Privy Council. The statutes provide in detail for the governance of the Corporation.

and updates about best practice are brought to the attention of Foundation Governors by the Clerk and other Officers.

Governance and delegation to committees

The Foundation Governors meet as a board at least three times a year, ensuring that governance arrangements are appropriate and effective. The appointment of knowledgeable Governors, the use of appropriate risk management processes and the use of effective delegation also ensure that governance arrangements are appropriate. Boards and committee membership is indicated in the table on page 35.

The maximum number of Foundation Governors is restricted to 25. This group is expected to include a representative from each of Oxford and Cambridge Universities and the Royal Society and who are selected by the Foundation Governors (trustees). Two other Foundation Governors are elected respectively by the Lord Chief Justice and the Head Master and the Masters of Harrow School. All Foundation Governors are elected for an initial term of five years and are eligible for reelection for a maximum of two further consecutive terms of up to five years. In exceptional circumstances, a Foundation Governor can serve a further term of up to five years so long as no more than five Foundation Governors serve a fourth term at any one time.

Delegation to management

The Governors have delegated the day-today management of Harrow School and John Lyon School to the officers as listed on page 35 and the financial and commercial management, strategy and risk management of the Corporation and Group to the Chief Financial and Commercial Officer of John Lyon's Foundation. These officers are the key management personnel as referred to in note 6 of the financial statements.

The Foundation Governors are the charity trustees of the Corporation and the Governors of Harrow School. Within defined parameters, the governance of John Lyon School is delegated by the Foundation Governors to a separate Board of Governors for John Lyon School, the members of which are appointed by the Foundation Governors.

Remuneration

The remuneration of key management personnel is discussed in detail each year by the Foundation Remuneration Committee, with reference to sectoral context, standards and benchmarking, and is approved by the Foundation Governors on the recommendation of the Foundation Remuneration Committee. In addition, the committee also carefully considers, reviews and recommends remuneration in respect of Foundation Governors who are separately employed as directors of HISL, as reported in note 23 of the financial statements.

Recruitment and training of Foundation Governors

The Foundation Selection Committee is responsible for considering nominations for future Foundation Governors, based on guidelines that include a list of the skills and experience that should be represented by Foundation Governors, including Governors of John Lyon School.

The Clerk to the Governors is responsible for the induction of new Foundation Governors, who are briefed individually. Guidance and advice on effective trusteeship

Foundation Governors, Officers and Committees – 2023/24

----- Start of picture text -----
Foundation Governors
Chair D G P Eyton X Ch X X X X 1, 3
C G T Stonehill X Ch X Ch
Chair of John Lyon School Board of Governors G W J Goodfellow X X X 1
M S Brounger Ret X 4
31/08/24
A C Goswell X
Deputy Chair The Hon A Butler X X X X 1
D J C Faber
R T G Winter X X
Chair of Harrow School Enterprises Limited A D Hart X 1, 2, 4
Prof D J Payne
Chair of Harrow Development Trust J P J Glover X X 2, 4
Sir J R Symonds X Ch X
H R Mould
Prof A D’Angour
Chair of Harrow International Schools Limited M L Mrowiec X X 1
C Gallagher
His Excellency Vice X Ch
Admiral J Kyd
Deputy Chair of John Lyon School N J D Enright X
Board of Governors
Dr S Rawal X X
L J Halligan
Dr D A Taylor
M C Wallace X X 4
J C Seppala Appt X X 4
25/11/23
S A Huang Appt
21/06/24
Officers – attend committees but do not vote
Clerk to the Governors and General Counsel The Hon A C Millett X X X X X Secretary toCompany
1, 2, 3
Chief Financial and Commercial Officer D H Curley X X X X 1, 2, 3
Harrow School
Head Master W M A Land X X X 1, 2, 3
Bursar J M Wood X X X X 2
John Lyon School
Head R K Hardy X X
Chief Operating Officer Cdr G R Mawdsley 31/08/24Left X X
Bursar N Slater Appt X
03/06/24
Role Name Retired/AppointedFoundation SelectionCommitteeFoundation RemunerationCommittee Foundation InvestmentsCommittee Foundation Risk & Opportunities Oversight Committee Corporation Bond IssueCommittee (now the CFC)Corporation FinanceCommittee (CFC)Directors of trading subsidiaries & trustees of HDT
----- End of picture text -----

Committee descriptions:

management of risk and opportunities (known since 31 August 2024 as the Audit and Risk Committee). Corporation Bond Issue Committee: Responsible for overseeing the investment and use of the proceeds of two private placement bonds.

Foundation Selection Committee: Responsible for overseeing the appointment of new Foundation Governors, including Governors of John Lyon School.

Foundation Remuneration Committee: Responsible for overseeing the remuneration of the Officers and senior employees of the Corporation.

Corporation Finance Committee (CFC): Responsible for overseeing the Corporation’s use of its financial and capital resources.

Foundation Investments Committee: Responsible for overseeing the management of financial investments.

Foundation Risk and Opportunities Oversight Committee: Responsible for overseeing the

Ch – Chair

l 34 THE CORPORATION ANNUAL REPORT

35 l

2023/24

7 Corporate information

for the period 1 September–31 August 2024

7.2 Addresses and advisors

Addresses

Harrow School

Harrow International Schools Limited Harrow School Enterprises Limited Harrow Development Trust

5 High Street Harrow on the Hill Middlesex HA1 3AP

John Lyon School

Middle Road Harrow on the Hill Middlesex HA2 0HN

Advisors

Principal Bankers

Independent Auditor

National Westminster Bank plc PFK Littlejohn LLP Harrow Town Centre Branch 15 Westferry Circus 315 Station Road Canary Wharf Harrow London Middlesex E14 4HD HA1 2AD

Principal Solicitors

Principal Investment Managers

Cripps LLP Cazenove Capital Management 2nd Floor 1 London Wall Place 80 Victoria Street London London EC2Y 5AU SW1E 5JL

8 Financial performance, policies and plans

Financial performance

Investment powers, policy and performance

The Consolidated Statement of Financial Activities for the year is set out on page 44 of the financial statements. A summary of the financial results is set out below.

The Foundation Investments Committee supervises and monitors the investment of the Corporation's financial assets.

The Group’s net movement in funds for the year was an increase of £17,834,000 (2022/23 – increase of £7,337,000). Net income before transfers and investment gains/losses was £2,699,000 (2022/23 – £8,051,000).

The Corporation seeks to generate the best financial return within an acceptable level of risk. The investment objective for 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.

Total income for the Group for the year was £87,759,000 (2022/23 – £84,011,000). Total expenditure increased to £85,060,000 (2022/23 – £75,960,000).

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

HISL generated a profit of £5,497,000 (2022/23 – £5,265,000) and HSEL generated a profit of £526,000 (2022/23 – £480,000).

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 threeyear rolling average of the fund value.

The appropriations from HDT for the benefit of the Corporation were £7,250,000 (2022/23 – £8,609,000).

Net assets on the balance sheet increased to £214,155,000 as of 31 August 2024 (£196,321,000 as of 31 August 2023). There were fixed asset additions of £24,519,000 (2022/23 – £30,025,000).

The Corporation is advised by Cambridge Associates Ltd 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 11.5% during 2023/24.

The Group increased cash by £3,564,000 (2022/23 – £2,101,000). Net debt at the year-end was £92,275,000 (2022/23 – £95,333,000), which is largely long-term debt in the form of two bonds totalling £90,000,000, repayable from 2059.

The Corporation’s treasury deposits, together with 75% of the proceeds from the bonds, are held in short-term, investment-grade, corporate bond portfolios managed by EFG Private Bank Limited to realise greater returns and reduce credit risk. This portfolio generated a yield of approximately 3.1% per annum net of costs.

Principal Investment Advisers Actuaries* Cambridge Associates Ltd XPS Pensions 62 Buckingham Gate 11 Strand London London SW1E 6AJ WC2N 5HR

Charity number

310033

l 36 THE CORPORATION ANNUAL REPORT

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2023/24

8 Financial performance, policies and plans

Reserves policy

Going concern

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

The Foundation Governors have reviewed the reserves position carefully, together with the financial forecasts and operating cashflows of the various entities. The Foundation 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 12 months from the date of approval of the financial statements.

The Corporation’s consolidated reserves totalled £214,155,000 (2022/23 – £196,321,000) at the year end, and comprised the following:

Fundraising activities

2023/24 2022/23 £ £ Unrestricted funds 164,781,000 149,811,000 Restricted funds 3,176,000 4,101,000 Endowment funds 46,198,000 42,409,000 Total reserves 214,155,000 196,321,000 Unrestricted funds Of which tangible fixed assets are: 165,997,000 149,573,000

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

The unrestricted funds, net of designated funds, and a £4,504,000 (2022/23 – £5,119,000) 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.

In relation to the above, it is confirmed that all solicitations are managed by Harrow Development Trust, without involvement of commercial participators or professional fundraisers, or third parties. The day-to-day management of all income generation is delegated to key management personnel, who are accountable to the trustees.

The Corporation has £90,000,000 of longterm funding by way of private placement bond issues (see note 17), 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 Foundation Governors believe that the present levels of reserves are sufficient to meet the Corporation’s essential obligations. Nevertheless, the Foundation Governors are focused on increasing the level of unrestricted reserves from the operating surpluses of the Schools, the subsidiary companies and from fundraising, while, in the medium term, benefiting from the returns from invested funds. Increasing unrestricted reserves will assist the Corporation in delivering on its charitable objects and executing its strategy.

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 of HDT.

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

Future plans

The Corporation has continued to focus on its charitable objects in 2024/25 and on the strategy of promoting educational excellence and enrichment, providing fee assistance that transforms lives, and on engaging with our community. The Corporation will continue to work closely in co-operation with the Group and with our partners, including John Lyon’s Charity.

The Corporation and Group will continue to monitor financial performance and the use of resources in a robust budgeting framework and will prudently manage the use of capital. In doing so, the Corporation and Group will address the evolving financial context in the independent schools sector and adopt appropriate risk mitigations where required.

Disclosure of information to the auditor

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

Auditor

Following a competitive tender process in autumn 2024, Crowe UK LLP were appointed as external auditor with effect from financial year end 31 August 2025.

Statement of Foundation Governors’ (trustees’) responsibilities

The purpose of this statement is to distinguish the responsibilities of the trustees as a body for the financial statements from the responsibilities of the auditor as stated in their report.

The Charities Act 2011 requires the Foundation Governors (trustees) 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, which are the financial statements of the Corporation (here, “the parent charity”), the two subsidiary entities and the fundraising trust (here, “subsidiaries”) the Foundation Governors (trustees) follow best practice and:

Foundation Governors (trustees) 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 Foundation Governors and signed on its behalf by:

D G P Eyton

Chair of Foundation Governors (trustees) 22 March 2025

l 38 THE CORPORATION ANNUAL REPORT

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2023/24

9 Independent auditor's report

Conclusions relating to going concern

Opinion

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.

We have audited the financial statements of the Corporation (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 31 August 2024 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).

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.

In our opinion, the financial statements:

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.

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.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of the Governors

As explained more fully in the Governors' 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:

l 40 THE CORPORATION ANNUAL REPORT

41 l

2023/24

9 Independent auditor's report

• We also identified the risks of material misstatement of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls, that there was a potential for management bias in the judgements in:

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 non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further 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/auditorresponsibilities. 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

9 April 2025

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.

l 42 THE CORPORATION ANNUAL REPORT

43 l

2023/24

10 Financial statements

10.1 Consolidated statement of financial activities

Year ended 31 August 2024

Income funds
Capital funds
2023/24
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
58,477
-
-
-
58,477
Ancillary trading income
2i
5,853
-
-
-
5,853
Charitable grants received
2ii
-
1,083
-
-
1,083
Voluntary sources
Other charitable income
2iii
6,206
1,526
174
-
7,906
Tsunami income
-
22
-
-
22
Non-ancillary trading income
2iv
11,021
-
-
-
11,021
Other incoming resources
3
197
91
-
-
288
Investments
Investment income
4
2,935
170
4
-
3,109





3
197
91
-
-
288		 Income funds
Capital funds
2023/24
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
58,477
-
-
-
58,477
Ancillary trading income
2i
5,853
-
-
-
5,853
Charitable grants received
2ii
-
1,083
-
-
1,083
Voluntary sources
Other charitable income
2iii
6,206
1,526
174
-
7,906
Tsunami income
-
22
-
-
22
Non-ancillary trading income
2iv
11,021
-
-
-
11,021
Other incoming resources
3
197
91
-
-
288
Investments
Investment income
4
2,935
170
4
-
3,109





3
197
91
-
-
288		 Income funds
Capital funds
2023/24
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
58,477
-
-
-
58,477
Ancillary trading income
2i
5,853
-
-
-
5,853
Charitable grants received
2ii
-
1,083
-
-
1,083
Voluntary sources
Other charitable income
2iii
6,206
1,526
174
-
7,906
Tsunami income
-
22
-
-
22
Non-ancillary trading income
2iv
11,021
-
-
-
11,021
Other incoming resources
3
197
91
-
-
288
Investments
Investment income
4
2,935
170
4
-
3,109





3
197
91
-
-
288		 Income funds
Capital funds
2023/24
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
58,477
-
-
-
58,477
Ancillary trading income
2i
5,853
-
-
-
5,853
Charitable grants received
2ii
-
1,083
-
-
1,083
Voluntary sources
Other charitable income
2iii
6,206
1,526
174
-
7,906
Tsunami income
-
22
-
-
22
Non-ancillary trading income
2iv
11,021
-
-
-
11,021
Other incoming resources
3
197
91
-
-
288
Investments
Investment income
4
2,935
170
4
-
3,109





3
197
91
-
-
288		 Income funds
Capital funds
2023/24
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
58,477
-
-
-
58,477
Ancillary trading income
2i
5,853
-
-
-
5,853
Charitable grants received
2ii
-
1,083
-
-
1,083
Voluntary sources
Other charitable income
2iii
6,206
1,526
174
-
7,906
Tsunami income
-
22
-
-
22
Non-ancillary trading income
2iv
11,021
-
-
-
11,021
Other incoming resources
3
197
91
-
-
288
Investments
Investment income
4
2,935
170
4
-
3,109





3
197
91
-
-
288		 Income funds
Capital funds
2023/24
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
58,477
-
-
-
58,477
Ancillary trading income
2i
5,853
-
-
-
5,853
Charitable grants received
2ii
-
1,083
-
-
1,083
Voluntary sources
Other charitable income
2iii
6,206
1,526
174
-
7,906
Tsunami income
-
22
-
-
22
Non-ancillary trading income
2iv
11,021
-
-
-
11,021
Other incoming resources
3
197
91
-
-
288
Investments
Investment income
4
2,935
170
4
-
3,109





3
197
91
-
-
288		 Income funds
Capital funds
2023/24
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
58,477
-
-
-
58,477
Ancillary trading income
2i
5,853
-
-
-
5,853
Charitable grants received
2ii
-
1,083
-
-
1,083
Voluntary sources
Other charitable income
2iii
6,206
1,526
174
-
7,906
Tsunami income
-
22
-
-
22
Non-ancillary trading income
2iv
11,021
-
-
-
11,021
Other incoming resources
3
197
91
-
-
288
Investments
Investment income
4
2,935
170
4
-
3,109





3
197
91
-
-
288		 Income funds
Capital funds
2023/24
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
58,477
-
-
-
58,477
Ancillary trading income
2i
5,853
-
-
-
5,853
Charitable grants received
2ii
-
1,083
-
-
1,083
Voluntary sources
Other charitable income
2iii
6,206
1,526
174
-
7,906
Tsunami income
-
22
-
-
22
Non-ancillary trading income
2iv
11,021
-
-
-
11,021
Other incoming resources
3
197
91
-
-
288
Investments
Investment income
4
2,935
170
4
-
3,109





3
197
91
-
-
288		 2022/23
Total
£000
53,509
5,587
1,625
10,018
-
10,284		 2022/23
Total
£000
53,509
5,587
1,625
10,018
-
10,284

197
197		 91
91		 -
-		 -
-
288
288
(265)
(265)
2,935
 170
 4
 -
 3,109
 3,253
Total income __
84,689
____
 __
2,892
____		 __
178
____
_		 __
-
___		 __
87,759
____		 __
84,011
____
Expenditure on:
Raising funds
Fundraising costs
Non ancillary trading expenses
2iv
Finance costs
7
Investment management costs
Charitable activities
Teaching costs
Welfare costs
Premises costs
Support costs
Grants, awards and prizes
5iii
Other charitable projects
Ancillary trading expenses
2i		 1,313
4,724
3,466
592
__
10,095
____
 96
-
-
-
__
96
____		 -
-
-
4
__
4
____
_		 -
-
-
53
__
53
___		 1,409
4,724
3,466
649
__
10,248
____		 1,544
4,318
3,285
493
_
9,640
___
28,349

28,349		 -
-		 -
-		 -
-		 28,349

28,349		 26,462

26,462
8,828
18,377
7,871
-
-
5,001
__

68,426
____		 -
-
22
6,364
-
-
__
6,386
___		 -
-
-
-
-
-
__
-
____		 _
 -
-
-
-
-
-
_
-
____		 8,828
18,377
7,893
6,364
-
5,001
__
74,812
____		 7,929
15,335
6,553
5,199
3
4,839
__
66,320
____
Total expenditure 78,521 6,482 4 53 85,060 75,960
_____
______ _____ ______ _____ ______ _
Net income/(expenditure) before
transfers and investment
gains/(losses)
Transfers between funds
8
Gains on investment assets
12
Net income/(expenditure)
Actuarial gain/(loss) on defined
benefit pension scheme
20(c)
Net movement in funds
Balances at beginning of year
8,051
-
108
__
8,159
(822)
____
7,337
188,984
6,168
(2,008)
10,306
_
14,466
504
___
14,970
149,811
 (3,590)
2,556
109
_
(925)
-
___
(925)
4,101

174
(105)
788
_
857
-
___
857
7,331
 (53)
(443)
3,428
_
2,932
-
_
2,932
35,078
 2,699
-
14,631
_
17,330
504
___
17,834
196,321
Balances at end of year ______
164,781		 _____
3,176
 _ _____
8,188		 _____
38,010		 ______
214,155
 _
 ______
196,321

The Corporation has no gains or losses that are not shown above and all activities are continuing. The 2023 consolidated statement of financial activities is shown at note 24.

The accounting policies and notes on pages 49 to 88 form part of these financial statements.

10.2 Balance sheet

At 31 August 2024

nce sheet
August 2024
Group Corporation
Notes 2024 2023 2024 2023
Fixed assets £000 £000 £000 £000
Tangible fixed assets 9 169,586 153,233 169,578 153,233
Intangible assets 10 72 84 72 84
Investment properties 11 1,588 1,588 1,588 1,588
Investments 12 164,474 157,699 163,791 157,004
______ ______ ______ ______
335,720 312,604 335,029 311,909
Current asset investments 34 34 34 34
Stocks 13 287 314 244 217
Debtors 14 7,343 6,973 7,469 6,348
Cash at bank and in hand 15 984 6,356 728 5,822
_____ _____ _____ ______
8,648 13,677 8,475 12,421
Creditors: amounts falling due
within one year 16 (26,109) (26,633) (25,767) (25,470)
Net current (liabilities) (17,461) (12,956) (17,292) (13,049)
_____ _____ _____ _____
Total assets less current 318,259 299,648 317,737 298,860
(liabilities)
Creditors: amounts falling due
after more than one year 17 (99,600) (98,208) (99,600) (98,208)
______ ______ ______ ______
Net assets before pension 218,659 201,440 218,137 200,652
Pension scheme liabilities 20 (4,504) (5,119) (4,504) (5,121)
______ ______ ______ ______
Net assets including pension
scheme liabilities 214,155 196,321 213,633 195,531
Represented by: ______ ______ ______ ______
Capital funds
Permanent endowment 38,010 35,078 38,010 35,078
Expendable endowment 8,188 7,331 8,188 7,331
______ ______ ______ ______
46,198 42,409 46,198 42,409
Income funds
Restricted 3,176 4,101 2,795 3,649
Unrestricted 164,781 149,811 164,640 149,473
______ ______ ______ ______
Total funds 21 214,155 196,321 213,633 195,531
______ ______ ______ ______

The financial statements were approved and authorised for issue by the Foundation Governors on 22 March 2025 and were signed on their behalf by

D G P Eyton

Chair of the Foundation Governors (trustees)

The accounting policies and notes on pages 49 to 88 form part of these financial statements.

l 44 THE CORPORATION ANNUAL REPORT

45 l

2023/24

10.3 Consolidated cash flow statement

Year ended 31 August 2024

2023/24
2022/23
Note
£000
£000
£000
£000
Net cash inflow from operating activities
(i)
18,644
14,252
Cash flows from investing activities
Payments to acquire tangible fixed assets
(24,519)
(30,025)
Sale proceeds of tangible fixed assets
141
590
Payments to acquire investments
(27,059)
(16,744)
Sale proceeds of investments
29,035
36,386
(Increase)/decrease in cash held in investments
5,986
(2,996)
Listed investment income
537
453
Interest received
2,572
3,094
Interest paid
(3,466)
(3,289)
_

Net cash (outflow) from
investing activities
(16,773)
(12,531)
Cash flow from financing activities
Loans received
1,900
1,500
Loan repayment
(206)
(1,114)
Finance lease repayment
(1)
(6)
__
_____
Net cash inflow from
financing activities
1,693
380

 2023/24
2022/23
Note
£000
£000
£000
£000
Net cash inflow from operating activities
(i)
18,644
14,252
Cash flows from investing activities
Payments to acquire tangible fixed assets
(24,519)
(30,025)
Sale proceeds of tangible fixed assets
141
590
Payments to acquire investments
(27,059)
(16,744)
Sale proceeds of investments
29,035
36,386
(Increase)/decrease in cash held in investments
5,986
(2,996)
Listed investment income
537
453
Interest received
2,572
3,094
Interest paid
(3,466)
(3,289)
_

Net cash (outflow) from
investing activities
(16,773)
(12,531)
Cash flow from financing activities
Loans received
1,900
1,500
Loan repayment
(206)
(1,114)
Finance lease repayment
(1)
(6)
__
_____
Net cash inflow from
financing activities
1,693
380

 2023/24
2022/23
Note
£000
£000
£000
£000
Net cash inflow from operating activities
(i)
18,644
14,252
Cash flows from investing activities
Payments to acquire tangible fixed assets
(24,519)
(30,025)
Sale proceeds of tangible fixed assets
141
590
Payments to acquire investments
(27,059)
(16,744)
Sale proceeds of investments
29,035
36,386
(Increase)/decrease in cash held in investments
5,986
(2,996)
Listed investment income
537
453
Interest received
2,572
3,094
Interest paid
(3,466)
(3,289)
_

Net cash (outflow) from
investing activities
(16,773)
(12,531)
Cash flow from financing activities
Loans received
1,900
1,500
Loan repayment
(206)
(1,114)
Finance lease repayment
(1)
(6)
__
_____
Net cash inflow from
financing activities
1,693
380
Increase in cash
in the year		 _____
3,564
 _____
2,101
_

Made up as follows:
Decrease in bank overdraft – unrestricted funds
8,936
64
Increase/(decrease) in other cash balances
(5,372)
2,037

_
Increase in unrestricted fund and other cash
(ii)
3,564
2,101


Reconciliation of net cash flow to
movement in net funds
Increase in cash in the year
3,564
2,101
Cash inflow resulting from decrease
in net debt and lease financing
(1,693)
(380)
Other non-cash movement
1,187
(7)
_
___
Change in funds resulting from cash flows and
movement in net funds in the year
3,058
1,714
Net funds at 1 September 2023
(95,333)
(97,047)
_

Net funds at 31 August 2024
(iii)
(92,275)
(95,333)
__
_____

The accounting policies and notes on pages 49 to 88 form part of these financial statements.

10.3 Consolidated cash flow statement Year ended 31 August 2024

(i) Net cash inflow from operating activities 2023/24 2022/23
£000 £000
Net incoming resources 17,330 8,159
Depreciation 7,027 5,744
Amortisation of goodwill 12 11
Decrease in stocks 27 86
Increase in debtors (370) (363)
Increase in creditors 6,576 274
Increase in entry and part-fee deposits 1,221 856
Decrease in liability for unfunded pensions 5 5
FRS 102 credit before actuarial gains/losses (615) 663
Decrease in provision for other pension benefit arrangements 499 (827)
Interest paid 3,466 3,289
Interest received (2,572) (3,094)
Investment income (537) (453)
Gain on revaluation of investment assets (14,631) (112)
Loss on disposal of fixed assets (2) 7
Impairment of investment 200 -
Unwinding of bond discount 8 7
Impairment of fixed asset 1,000 -
_____ _____
18,644 14,252
(ii) Changes in cash and cash equivalents _____ ____
Analysis of balances Change
2023/24 2022/23 in year
£000 £000 £000
Bank overdraft (see note 16) (500) (9,436) 8,936
Other cash balances (see note 15) 984 6,356 (5,372)
______ ______ _____
The Group’s operations 484 (3,080) 3,564
_____ _____ _____

(iii) Analysis of net funds – year ended 31 August 2024

As at
beginning of
year
£000
Cash and cash equivalents
Cash
6,356
Bank overdraft
(9,436)
_
(3,080)
Borrowings
Loans less than one year
(206)
Loans more than one year
(2,324)
Bond
(89,722)
Finance leases
(1)
____
_
(92,253)
 As at
beginning of
year
£000
Cash and cash equivalents
Cash
6,356
Bank overdraft
(9,436)
_
(3,080)
Borrowings
Loans less than one year
(206)
Loans more than one year
(2,324)
Bond
(89,722)
Finance leases
(1)
____
_
(92,253)
 Other
Cash
non-cash
flow
changes
£000
£000
(5,372)
-
8,936
-
_
_
3,564
-
206
(206)
(1,900)
1,706
-
(8)
1
(305)
__
_
_
(1,693)
1,187

 Other
Cash
non-cash
flow
changes
£000
£000
(5,372)
-
8,936
-
_
_
3,564
-
206
(206)
(1,900)
1,706
-
(8)
1
(305)
__
_
_
(1,693)
1,187

 Other
Cash
non-cash
flow
changes
£000
£000
(5,372)
-
8,936
-
_
_
3,564
-
206
(206)
(1,900)
1,706
-
(8)
1
(305)
__
_
_
(1,693)
1,187

 As at
end of
year
£000
984
(500)
_
484
(206)
(2,518)
(89,730)
(305)
____
(92,759)
_ _
Total ______
(95,333)
 _____
1,871
 _____
1,187
 _____
(92,275)

l 46 THE CORPORATION ANNUAL REPORT

47 l

2023/24

10.3 Consolidated cash flow statement

10.4 Accounting policies

Year ended 31 August 2024

(iv) Analysis of net funds – year ended 31 August 2023

(iv)Analysis of net funds – year ended 31 August 2023 (iv)Analysis of net funds – year ended 31 August 2023
As at
beginning of
year
£000
Cash and cash equivalents
Cash
4,319
Bank overdraft
(9,500)
____
(5,181)
Borrowings
Loans less than one year
(331)
Loans more than one year
(1,813)
Bond
(89,715)
Finance leases
(7)
______
(91,866)

Total		 Other
Cash
non-cash
flow
changes
£000
£000
2,037
-
64
-
___
2,101
-
331
(206)
(717)
206
-
(7)
6
-
__
____
(380)
(7)

 As at
end of
year
£000
6,356
(9,436)
_
(3,080)
(206)
(2,324)
(89,722)
(1)
______
(92,253)
_
(5,181)
(331)
(1,813)
(89,715)
(7)
___
(91,866)
 __ _
-
(206)
206
(7)
-
___
(7)


Total ______
(97,047)
 ______
1,721
 ______
(7)
 ______
(95,333)

a) Basis of preparation and consolidation

These financial statements represent the activities of John Lyon School and Harrow School ("the Corporation schools"), 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”). HEIL and JLSDT were dormant in 2023/24.

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

c) Statement of financial activities (SoFA)

The SoFA comprises the following:

Unrestricted funds

Harrow School – fees running costs, other income and direct charitable trading income and expenditure, and advanced fees.

John Lyon School – fees running costs, other income and 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.

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 endowment funds

The J G Apcar Trust, the Bessborough Memorial Trust, the Harrow School Awards Fund and part of the Harrow Challenge Fund.

Permanent endowment funds

Harrow Awards Fund and L C Wilson Scholarship Fund. The Butler Memorial Trust.

School and Lyon Foundation, the Philathletic Trust, the Shepherd Churchill Bequest and part of the Harrow Challenge Fund.

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

Having reviewed the funding facilities available to the Group together with the expected ongoing demand for places and the Group’s future projected cash flows, the Governors have a reasonable expectation that the Group 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.

l 48 THE CORPORATION ANNUAL REPORT

49 l

2023/24

10.4 Accounting policies

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 schools 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 Foundation 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.

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) Goodwill

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

10.4 Accounting policies

h) Tangible fixed assets

Expenditure on land and buildings which, in the opinion of the Governors, has not enhanced their long-term 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 on plant, equipment (including IT equipment) and furniture that 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

Certain properties, not used for the direct charitable purposes of the Corporation, 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 for on 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 of asset 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.

k) Stock

Stock is 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) Redundancy and termination costs

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

l 50 THE CORPORATION ANNUAL REPORT

51 l

2023/24

10.4 Accounting policies

10.5 Notes to financial statements

Year ended 31 August 2024

o) Pensions and post-retirement benefit schemes

Defined contribution scheme

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

Defined benefit schemes

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

The Corporation also runs a defined benefit pension scheme, the Harrow School Support Staff Pension Scheme (HSSSPS), for nonteaching staff, which has been closed to new entrants and to further accruals. The funds of the HSSSPS 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 HSSSPS so as to secure the benefits set out in the rules.

The HSSSPS current service costs are charged to the SoFA within staff costs. The HSSSPS assets are measured at fair value at the balance sheet date. The HSSSPS 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 at 31 August 2024, the Corporation as a registered charity 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 Group’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.

q) Financial instruments

The Group has financial assets and liabilities of a kind that qualify as basic financial instruments. These 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

1. School fees receivable

2. Fundraising and trading activities
1.School fees receivable
Gross fees excluding bursaries
Fee remissions and awards
Unrestricted funds (note 5 iii)
i.
Ancillary trading income
Registration fees and non-refundable fee deposits
Advanced fees income
Other income
Pupils’ charges and school trips
Ancillary trading expenses
The Corporation
Pupils’ charges and school trips
ii.
Charitable grants received
Legacies
Grants received from John Lyon’s Charity
Harrow School
John Lyon School		 Harrow
John Lyon
2023/24
2022/23
School
School
Total
Total
£000
£000
£000
£000
42,109
17,594
59,703
54,934
(258)
(968)
(1,226)
(1,425)
__



41,851
16,626
58,477
53,509



___
2023/24
2022/23
£000
£000		 Harrow
John Lyon
2023/24
2022/23
School
School
Total
Total
£000
£000
£000
£000
42,109
17,594
59,703
54,934
(258)
(968)
(1,226)
(1,425)
__



41,851
16,626
58,477
53,509



___
2023/24
2022/23
£000
£000		 Harrow
John Lyon
2023/24
2022/23
School
School
Total
Total
£000
£000
£000
£000
42,109
17,594
59,703
54,934
(258)
(968)
(1,226)
(1,425)
__



41,851
16,626
58,477
53,509



___
2023/24
2022/23
£000
£000		 Harrow
John Lyon
2023/24
2022/23
School
School
Total
Total
£000
£000
£000
£000
42,109
17,594
59,703
54,934
(258)
(968)
(1,226)
(1,425)
__



41,851
16,626
58,477
53,509



___
2023/24
2022/23
£000
£000
431 380
- 1
421 367
5,001 4,839
_____ _____
5,853
5,587
__
_
5,001
4,839

___
2023/24
2022/23
£000
£000
-
660
503 431
580 534
_____ _____
1,083
 1,625

l 52 THE CORPORATION ANNUAL REPORT

53 l

2023/24

Year ended 31 August 2024

10.5 Notes to financial statements

10.5 Notes to financial statements

Year ended 31 August 2024

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 £7,918,000 (2022/23 – £9,914,000), which included donations received of £22,000 (2022/23 – £Nil) to support projects in Sri Lanka following the 2004 tsunami; outgoing resources expended totalled £8,534,000 (2022/23 – £10,010,000). Net (outgoing) resources for the year were (£534,000) (2022/23 – (£113,000)).

Fundraising proceeds in the SoFA comprise

Fundraising proceeds in the SoFA comprise
2023/24 2022/23
£000 £000
HDT 7,896 9,914
John Lyon School 10 104
_____ _____
7,906 10,018
_____ _____
2023/24 2022/23
iv. Non-ancillary trading activities £000 £000
Non-ancillary trading income
The Corporation, rental income 273 277
HSEL (excluding intra group sales) 3,342 3,028
HISL 7,406 6,979
_____ _____
11,021 10,284
_____ _____
2023/24 2022/23
Non-ancillary trading expenses £000 £000
HSEL
Cost of sales 2,685 2,502
Administration expenses 130 102
HISL
Administration expenses 982 737
Overseas taxation 927 977
_____ _____
4,724 4,318
_____ _____

2. Fundraising and trading activities (continued)

iv. Non-ancillary trading activities (continued)

The summarised results of the Corporation’s two trading subsidiaries, HSEL and HISL, are set out on the following pages.

HSEL

The principal activity of this company is non-charitable trading for the Group. The company pays all of its posttax 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:


the unrestricted funds column in the SoFA, were:
2023/24 2022/23
£000 £000
Turnover 3,342 3,084
Cost of sales (2,685) (2,502)
_____ _____
Gross profit 657 582
Administration expenses (131) (102)
____ ____
Operating profit 526 480
Qualifying donation to the Corporation (259) -
____ ____
Profit for the financial year 267 480
____ ____

Amounts above are included within the relevant unrestricted categories in the SoFA.

The net assets of the company at the year end were £2 (2023 – net liabilities £267,585).

l 54 THE CORPORATION ANNUAL REPORT

55 l

2023/24

Year ended 31 August 2024

Year ended 31 August 2024

10.5 Notes to financial statements

2. Fundraising and trading activities (continued)

iv. Non-ancillary 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:

2023/24 2022/23
£000 £000
Turnover 7,406 6,979
Administration expenses (982) (737)
Overseas taxation (927) (977)
____ _____
Profit before taxation 5,497 5,265
Qualifying donation to the Corporation (5,497) (5,265)
_____ _____
Profit for the financial year - -
_____ _____

10.5 Notes to financial statements

4. Investment income

2023/24 2022/23
£000 £000
Investment income
Income from restricted funds
Investment income – scholarships and bursaries 174 159
____ ____
174 159
____ ____
Income from unrestricted funds
Interest receivable 2,572 2,800
Investment income – scholarships and bursaries 363 294
____ ____
2,935 3,094
____ ____
Total investment income receivable 3,109 3,253
____ ____

Amounts above are included within the relevant unrestricted categories in the SoFA.

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

3. Other incoming resources

2023/24 2022/23
Other incoming resources £000 £000
Profit/(loss) on disposal of fixed assets 2 (590)
Other income 195 237
Subscription income 91 88
____ ____
288 (265)
____ ____

l 56 THE CORPORATION ANNUAL REPORT

57 l

2023/24

Year ended 31 August 2024

Year ended 31 August 2024

10.5 Notes to financial statements

5 i. Group analysis for the year ending 31 August 2024

John
Harrow Lyon 2023/24
School School HSEL HISL HDT Total
£000 £000 £000 £000 £000 £000
Income
School fees receivable 41,852 16,625 - - - 58,477
Ancillary trading 4,831 1,022 - - - 5,853
Other charitable 503 580 - - - 1,083
Voluntary - 10 - - 7,896 7,906
Non-ancillary trading 198 75 3,342 7,406 - 11,021
Other 269 19 - - - 288
Investments 3,109 - - - - 3,109
Tsunami - - - - 22 22
_____ _____ ____ ___ ____ _____
Total income 50,762 18,331 3,342 7,406 7,918 87,759
_____ _____ _____ _____ _____ _____
Expenditure
Fundraising - 126 - - 1,283 1,409
Non-ancillary trading - - 2,815 1,909 - 4,724
Finance 3,163 303 - - - 3,466
Investment management 646 3 - - - 649
Teaching 19,254 9,095 - - - 28,349
Welfare 7,833 995 - - - 8,828
Premises 15,162 3,215 - - - 18,377
Support 5,433 2,460 - - - 7,893
Grants awards and prizes 5,776 588 - - - 6,364
Ancillary trading 4,193 808 - - - 5,001
_____ _____ _____ _____ _____ _____
Total expenditure 61,460 17,593 2,815 1,909 1,283 85,060
_____ _____ _____ _____ _____ _____
Transfer to fund awards - - - - -
_____ _____ _____ _____ _____ _____
Net income (10,698)
738		 527 5,497 6,635 2,699
Transfers, investment gains and losses
Transfers between entities 12,479 527 (259) (5,497) (7,250) -
Gain on investment assets 14,033 517 - - 81 14,631
Actuarial gain on defined benefit pension 504 - - - - 504
_____ _____ _____ _____ _____ _____
Total 27,016 1,044 (259) (5,497) (7,169) 15,135
_____ _____ _____ _____ _____ _____
Balance at beginning of the year 178,004 17,535 (268) 1 1,049 196,321
_____ _____ ____ _____ ____ _____
Balance at 31 August 2024 194,322 19,317 - 1 515 214,155
_____ _____ _____ _____ _____ _____

10.5 Notes to financial statements

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

Harrow
John Lyon
School
School
£000
£000
Income
School fees receivable
38,488
15,021
Ancillary trading
4,635
952
Other charitable
1,091
534
Voluntary
104
Non-ancillary trading
166
55
Other
146
(411)
Investments
3,253
-

 HSEL
£000
-
-
-
-
3,084
-
-
 HISL
£000
-
-
-
-
6,979
-
-
 2022/23
HDT
JLSDT
Total
£000
£000
£000
-
-
53,509
-
-
5,587
-
-
1,625
9,914
-
10,018
-
-
10,284
-
-
(265)
-
-
3,253
_
_
_
9,914
-
84,011


_
1,401
-
1,544
-
-
4,318
-
-
3,285
1
-
493
-
-
26,462
-
-
7,929
-
-
15,335
-
-
6,553
-
-
5,199
3
-
3
-
-
4,839


_
1,405
-
75,960


_


_
8,509
-
8,051
(8,609)
(35)
-
(17)
-
108
-
-
(822)


_
(8,626)
(35)
(714)


_
1,166
35
188,984

__
_____
1,049
-
196,321



*
_

Total income
47,779
16,255
__
_____		 _
3,084
__
6,979
__		 _
9,914
__


Expenditure
Fundraising
-
143
Non-ancillary trading
-
-
Finance
3,066
219
Investment management
489
3
Teaching
17,827
8,635
Welfare
7,102
827
Premises
12,291
3,044
Support
4,388
2,165
Grants awards and prizes
4,666
533
Other charitable projects
-
-
Ancillary trading
4,118
721
-
2,604
-
-
-
-
-
-
-
-
-
-
1,714
-
-
-
-
-
-
-
-
-
1,401
-
-
1
-
-
-
-
-
3
-
_

Total expenditure
53,947
16,290
__
_____		 _
2,604
___		 _
1,714
___		 _
1,405
___






_
___
Net income
(6,168)
(35)		 _____
480		 _____
5,265		 _____
8,509
Transfers, investment gains and losses
Transfers between entities
13,401
508
Gain on investment assets
193
(68)
Actuarial loss on defined benefit pension
(822)
-
_

Total
12,772
440
__
_____
Balance at beginning of the year
171,400
17,130

 -
-
-
_
-
___
(748)
 (5,265)
-
-
_
(5,265)
___
1
 (8,609)
(17)
-
_
(8,626)
___
1,166
_
__
Balance at 31 August 2023
178,004
17,535
 _____
(268)
 ____
1
 _____
1,049

l 58 THE CORPORATION ANNUAL REPORT

59 l

2023/24

Year ended 31 August 2024

Year ended 31 August 2024

10.5 Notes to financial statements

5 ii. Analysis of total resources expended

2023/24
Staff costs
Other Depreciation
& impairment
Total
£000
£000
£000
£000
Raising funds
Fundraising costs
988
421
-
1,409
Trading expenses
2,447
2,275
2
4,724
Finance costs (see note 7)
-
3,466
-
3,466
Investment management costs
-
649
-
649
_

_

3,435
6,811
2
10,248

_

_
Charitable expenditure
Teaching
24,502
3,847
-
28,349
Welfare
5,131
3,697
-
8,828
Premises
4,559
5,793
8,025
18,377
Support
4,899
2,994
-
7,893
Grants, awards and prizes
-
6,364
-
6,364
Ancillary trading expenses
-
5,001
-
5,001
_


__
39,091
27,696
8,025
74,812
_

__
______



 2023/24
Staff costs
Other Depreciation
& impairment
Total
£000
£000
£000
£000
Raising funds
Fundraising costs
988
421
-
1,409
Trading expenses
2,447
2,275
2
4,724
Finance costs (see note 7)
-
3,466
-
3,466
Investment management costs
-
649
-
649
_

_

3,435
6,811
2
10,248

_

_
Charitable expenditure
Teaching
24,502
3,847
-
28,349
Welfare
5,131
3,697
-
8,828
Premises
4,559
5,793
8,025
18,377
Support
4,899
2,994
-
7,893
Grants, awards and prizes
-
6,364
-
6,364
Ancillary trading expenses
-
5,001
-
5,001
_


__
39,091
27,696
8,025
74,812
_

__
______
__
____
Total resources expended
42,526
34,507
 _
____
8,027
85,060
_


_
2022/23
Staff costs
Other Depreciation
& impairment
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

10.5 Notes to financial statements

5. iii. Analysis of grants, awards and prizes

Harrow
John Lyon
2023/24
2022/23
School
School
Total
Total
£000
£000
£000
£000
Awards from unrestricted funds (see note 1):
Scholarships
-
220
220
187
Means-tested bursaries
-
461
461
766
Other awards
258
287
545
472
_

_

258
968
1,226
1,425

_

_
Awards from restricted funds:
Scholarships
502
-
502
453
Means-tested bursaries
4,733
588
5,321
4,358
Prizes and other awards
541
-
541
388


__
_____
5,776
588
6,364
5,199



 Harrow
John Lyon
2023/24
2022/23
School
School
Total
Total
£000
£000
£000
£000
Awards from unrestricted funds (see note 1):
Scholarships
-
220
220
187
Means-tested bursaries
-
461
461
766
Other awards
258
287
545
472
_

_

258
968
1,226
1,425

_

_
Awards from restricted funds:
Scholarships
502
-
502
453
Means-tested bursaries
4,733
588
5,321
4,358
Prizes and other awards
541
-
541
388


__
_____
5,776
588
6,364
5,199



 Harrow
John Lyon
2023/24
2022/23
School
School
Total
Total
£000
£000
£000
£000
Awards from unrestricted funds (see note 1):
Scholarships
-
220
220
187
Means-tested bursaries
-
461
461
766
Other awards
258
287
545
472
_

_

258
968
1,226
1,425

_

_
Awards from restricted funds:
Scholarships
502
-
502
453
Means-tested bursaries
4,733
588
5,321
4,358
Prizes and other awards
541
-
541
388


__
_____
5,776
588
6,364
5,199



 Harrow
John Lyon
2023/24
2022/23
School
School
Total
Total
£000
£000
£000
£000
Awards from unrestricted funds (see note 1):
Scholarships
-
220
220
187
Means-tested bursaries
-
461
461
766
Other awards
258
287
545
472
_

_

258
968
1,226
1,425

_

_
Awards from restricted funds:
Scholarships
502
-
502
453
Means-tested bursaries
4,733
588
5,321
4,358
Prizes and other awards
541
-
541
388


__
_____
5,776
588
6,364
5,199



 Harrow
John Lyon
2023/24
2022/23
School
School
Total
Total
£000
£000
£000
£000
Awards from unrestricted funds (see note 1):
Scholarships
-
220
220
187
Means-tested bursaries
-
461
461
766
Other awards
258
287
545
472
_

_

258
968
1,226
1,425

_

_
Awards from restricted funds:
Scholarships
502
-
502
453
Means-tested bursaries
4,733
588
5,321
4,358
Prizes and other awards
541
-
541
388


__
_____
5,776
588
6,364
5,199
Total grants, awards and prizes _____
6,034
 ____
1,556
 _____
7,590
 _____
6,624

6. Employees and key management

John
Harrow
Lyon
School School
£000
£000
Wages and salaries
23,802
8,365
Social security costs
2,440
857
Teachers’ pension scheme
2,548
1,011
Support staff pension scheme
17
-
Harrow corporation pension scheme
549
333
Death in service benefit
74
17
Unfunded pension costs
10
-
Transfer to capital projects
(835)
-
_
28,605 10,583
 _
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
 John
Harrow
Lyon
School School
£000
£000
Wages and salaries
23,802
8,365
Social security costs
2,440
857
Teachers’ pension scheme
2,548
1,011
Support staff pension scheme
17
-
Harrow corporation pension scheme
549
333
Death in service benefit
74
17
Unfunded pension costs
10
-
Transfer to capital projects
(835)
-
_
28,605 10,583
 _
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
 HSEL
£000
1,446
129
-
-
87
4
-
-
 HISL
£000
675
81
-
-
24
1
-
-
 2023/24
HDT
Total
£000
£000
765
35,053
91
3,598
16
3,575
-
17
19
1,012
-
96
-
10
-
(835)

 2023/24
HDT
Total
£000
£000
765
35,053
91
3,598
16
3,575
-
17
19
1,012
-
96
-
10
-
(835)
_____
1,666
 _____
781
 _
___
891
42,526
_____
HSEL
£000
1,332
121
-
-
81
3
-
-
 _____
HISL
£000
434
52
-
-
43
2
-
-
 _
___
2022/23
HDT
Total
£000
£000
765
31,982
86
3,316
17
3,253
-
17
22
930
-
97
-
10
-
(592)
_____
9,882
 _____
1,537
 _____
531
 _____
890
 _____
39,013

l 60 THE CORPORATION ANNUAL REPORT

61 l

2023/24

Year ended 31 August 2024

10.5 Notes to financial statements Year ended 31 August 2024

6. Employees and key management (continued)

6. Employees and key management (continued)
Average number of employees during the year 2023/24 2022/23
Harrow School and John Lyon School:
Teaching 212 212
Teaching support 71 78
Estates 110 107
Domestic 113 112
Bursary and other administration 77 75
HSEL 18 20
HDT 8 7
HISL 7 5
___ ___
616 616
___ ___

The Foundation Remuneration Committee considers the renumeration 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:


pension contributions, exceeded £60,000 was:
2023/24 2022/23
£ 60,001 - £ 70,000 54 43
£ 70,001 - £ 80,000 37 33
£ 80,001 - £ 90,000 21 23
£ 90,001 - £100,000 24 13
£100,001 - £110,000 7 9
£110,001 - £120,000 6 3
£120,001 - £130,000 3 2
£130,001 - £140,000 - 2
£140,001 - £150,000 2 -
£170,001 - £180,000 1 -
£220,001 - £230,000 1 -
£230,001 - £240,000 1 1
£240,001 - £250,000 - 1
£260,001 - £270,000 - 2
£270,001 - £280,000 1 -
£290,001 - £300,000 1 -
£310,001 - £320,000 1 -
£320,001 - £330,000 - 1
___ ___

10.5 Notes to financial statements

7. Total resources expended

7. Total resources expended
Total resources expended 2023/24 2022/23
£000 £000
This is stated after charging/(crediting):
Auditor’s remuneration
For the audit of the Corporation 58 56
For the audit of other group entities 34 33
For tax compliance 36 35
For other services 19 5
For the audit of the defined benefit pension scheme 12 11
Depreciation & impairment (see note 9) 8,027 5,744
Amortisation (see note 10) 12 13
Operating lease rentals 184 150
Change in pension scheme liabilities excluding actuarial
(loss)/gain (see note 20 (i) c)) (113) (159)
____ ____
Interest and finance costs payable:
Overdrafts and bank loans repayable within 5 years not by instalments 225 139
Finance leases 1 1
____ ____
226 140
Bond interest payable 2,680 2,680
Other interest payable 294 270
____ ___
Total interest payable 3,200 3,090
Bank charges 12 16
Pension commitments – net finance costs (see note 20 (i) c)) 254 179
____ ___
Total finance costs 3,466 3,285
____ ___

Pension contributions to defined contribution schemes of £311,000 (2022/23 – £211,000) were made for 41 (2022/23 – 27) higher paid employees during the year. Contributions were made to defined benefit pension schemes for 151 (2022/23 –100) 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 £2,172,000 (2022/23 – £1,921,000). The 2022/23 comparative figure has been restated to reflect a change in the definition of key management personnel.

Redundancy and termination payments, net of recoveries from insurance, totalled £449,000 (2022/23 – £14,000).

l 62 THE CORPORATION ANNUAL REPORT

63 l

2023/24

Year ended 31 August 2024

10.5 Notes to financial statements Year ended 31 August 2024

8. Transfers between funds

Expendable Permanent
Unrestricted Restricted endowment endowment
£000 £000 £000 £000
i. (105) 105 - -
ii. (872) 1,567 (105) (590)
iii. 447 (447) - -
iv (80) - - 80
v. - (67) - 67
vi (1,398) 1,398 - -
_____ _____ ____ _____
Total (2,008) 2,556 (105) (443)
_____ _____ _____ _____

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.

iii. Donations received to fund capital projects transferred from restricted to unrestricted funds.

10.5 Notes to financial statements

9. Tangible fixed assets

Group
Freehold
Plant,
land and
equipment
buildings and furniture
Total
Cost
£000
£000
£000
At 1 September 2023
190,414
25,762
216,176
Additions
21,607
2,912
24,519
Disposals
(135)
(2,349)
(2,484)
__


At 31 August 2024
211,886
26,325
238,211


__
Depreciation
At 1 September 2023
48,907
14,036
62,943
Charge for the year
4,718
2,309
7,027
Impairment of asset
1,000
-
1,000
Released on disposals
-
(2,345)
(2,345)


_
At 31 August 2024
54,625
14,000
68,625


_
Net book value
At 31 August 2024
157,261
12,325
169,586


_
At 31 August 2023
141,507
11,726
153,233

__
_____		 Corporation
Freehold
Plant,
land and
equipment
buildings and furniture
Total
£000
£000
£000
190,291
25,559
215,850
21,607
2,912
24,519
(135)
(2,349)
(2,484)
__
_

211,763
26,122
237,885


__
48,776
13,841
62,617
4,716
2,319
7,035
1,000
-
1,000
-
(2,345)
(2,345)


_
54,492
13,815
66,307


_
157,271
12,307
169,578


_
141,515
11,718
153,233

__
_____

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

l 64 THE CORPORATION ANNUAL REPORT

65 l

2023/24

Year ended 31 August 2024

10.5 Notes to financial statements Year ended 31 August 2024

10. Intangible assets

Goodwill
Group and Corporation
Cost
At 1 September 2023
Addition
At 31 August 2024
Amortisation
At 1 September 2023
Charge for the year
At 31 August 2024
Net book value
At 31 August 2024
At 31 August 2023		 2024
£000
117
-
_
117

33
12
__
45
_
72
___
84
 2023
£000
117
-
_
117

20
13
__
33
_
84
___
97

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 has been deferred to be paid over five years with the first payment on 6 November 2021. The balance due at the year end was £540,000 (2022/23 – £810,000).

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.

10.5 Notes to financial statements

11. Investment properties

11. Investment properties
1.Investment properties 2023/24
Group and Corporation £000
Balance at beginning of year 1,588
Movement in year -
_____
Balance at end of year 1,588
_____
At beginning At end
of year Movement of year
£000 £000 £000
Attributed to:
Unrestricted 516 516
Endowed -expendable endowment 77 - 77
-permanent endowment 995 - 995
_____ _____ _____
1,588 - 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.

2022/23
£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
_____ _____ _____

l 66 THE CORPORATION ANNUAL REPORT

67 l

2023/24

Year ended 31 August 2024

Year ended 31 August 2024

10.5 Notes to financial statements

10.5 Notes to financial statements

12. Fixed asset investments

12. Fixed asset investments (continued)

12. Fixed asset investments
12. Fixed asset investments (continued)		 12. Fixed asset investments
12. Fixed asset investments (continued)		 12. Fixed asset investments
12. Fixed asset investments (continued)		 12. Fixed asset investments
12. Fixed asset investments (continued)		 12. Fixed asset investments
12. Fixed asset investments (continued)
Expendable Permanent
Unrestricted Restricted
endowed endowed
Group
funds
funds
funds
funds
Total
£000
£000
£000
£000
£000
Listed
Opening market value
excluding cash
113,484
1,071
5,917
29,194 149,666
Additions
23,721
49
808
2,787
27,365
Disposal proceeds
(26,057)
(140)
(106)
(2,732) (29,035)
Realised gains/(losses)
(1,561)
42
10
25
(1,484)
Unrealised gains/(losses)
11,867
67
778
3,403
16,115
_

_


Market value at end
of year
121,454
1,089
7,407
32,677 162,627
Cash at stockbrokers at
beginning of year
6,053
(3)
810
973
7,833
Movement in year
(4,917)
-
(627)
(442)
(5,986)

_


__
Cash with investment managers
at end of year
1,136
(3)
183
531
1,847

_


__
Unlisted
Opening balance
200
-
-
-
200
Impairment
(200)
-
-
-
(200)

_


__
Unlisted at end of year
-
-
-
-
-

_


_
At end of year
122,590
1,086
7,590
33,208 164,474
_




At beginning of year
119,737
1,068
6,727
30,167 157,699





(
)
Expendable Permanent
Unrestricted Restricted
endowed
endowed
Corporation
funds
funds
funds
funds
Total
£000
£000
£000
£000
£000
Listed
Opening market value
excluding cash
113,627
233
5,917
29,194 148,971
Additions
23,725
-
808
2,787
27,320
Disposal proceeds
(26,057)
-
(106)
(2,732) (28,895)
Realised gains/(losses)
(1,562)
27
10
25
(1,500)
Unrealised gains/(losses)
11,867
-
778
3,403
16,048

_
_


Market value at end
of year
121,600
260
7,407
32,677 161,944
_

__
_
_
Cash at stockbrokers at
beginning of year
6,053
(3)
810
973
7,833
Movement in year
(4,917)
-
(627)
(442)
(5,986)

_



Cash with investment managers
at end of year
1,136
(3)
183
531
1,847

_

_

Unlisted
Opening balance
200
-
-
-
200
Impairment
(200)
-
-
-
(200)
_

_


Unlisted at end of year
-
-
-
-
-

__
_

_
At end of year
122,736
257
7,590
33,208 163,791
__
_


___
At beginning of year
119,880
230
6,727
30,167 157,004
At end of year
122,590
 1,086
 7,590
______ ______ ______ ______
At beginning of year
119,737
______		 1,068
______		 6,727
______

l 68 THE CORPORATION ANNUAL REPORT

69 l

2023/24

10.5 Notes to financial statements

Year ended 31 August 2024

12. Fixed asset investments (continued)

i. Investment portfolios

At 31 August 2024, unrestricted fund investments principally comprised investments in corporate bonds, Harrow School Designated Fund and John Lyon School Scholarship Fund. Their cost was £118,692,000 (2022/23 – £123,237,000).

At 31 August 2024, restricted fund investments consisted of investments with a cost of £607,000 (2022/23 – £622,000).

At 31 August 2024, expendable endowed fund 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 £6,761,000 (2022/23 – £6,512,000).

At 31 August 2024, 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:


Exchanges, in the permanent endowment funds were as follows:
2023/24 2022/23
£000 £000
School and Lyon Foundation 2,807 2,562
Shepherd Churchill Bequest 5,069 4,905
Scholarship Funds comprising L C Wilson and Harrow Awards Fund 14,316 14,697
Harrow Challenge Fund 4,269 4,131
Foundation Awards 2,454 2,461
______ ______
28,915 28,756
______ ______

ii. Significant holdings

At 31 August 2024 the following investments were considered material in the context of the investment portfolios:


portfolios:
Group
Group
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 – permanent endowed funds

In January 2006, the Charity Commission made an order permitting the Corporation to adopt total return investment powers in relation to its permanent endowment in the form of the Commission’s model order. The Governors resolved to implement the Order in a limited form with effect from 1 April 2006. Under the 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.

10.5 Notes to financial statements

Year ended 31 August 2024

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:

_


_
Closing valuation at 31 August 2024
13,911
2,519
2,882
19,312


__
_
Statement of unapplied total return
Opening valuation at 1 September 2023
5,151
886
212
6,249
Net return for the year
1,036
181
209
1,426

_


Unapplied total return as at 31 August 2024
6,187
1,067
421
7,675
__
_

_
Harrow
L C Wilson
Foundation
Total
Awards
Bequest
Awards
Fund
Fund
£000
£000
£000
£000
Amount available for distribution
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
Investment valuation at 31 August 2024
13,911
2,519
2,882
19,312
_____

_

Three year average
13,297
2,445
2,757
18,500

_


Amount available for distribution –
499
92
103
694
year ending 31 August 2025
_


_
Harrow
L C Wilson
Foundation
Total
Awards
Bequest
Awards
Funds
Fund
£000
£000
£000
£000
Opening valuation at 1 September 2023
12,875
2,338
2,673
17,886
Changes in year
Investment return – income
169
-
-
169
Investment management charge
(12)
(1)
(2)
(15)
Investment return
– realised/unrealised gains and (losses)
1,378
275
314
1,967
Cash withdrawn
(499)
(93)
(103)
(695)


_
___
Net return for the year
1,036
181
209
1,426
Amount available for distribution –
year ending 31 August 2025		 _


_
Closing valuation at 31 August 2024
13,911
2,519
2,882
19,312


__
_
Statement of unapplied total return
Opening valuation at 1 September 2023
5,151
886
212
6,249
Net return for the year
1,036
181
209
1,426

_


Unapplied total return as at 31 August 2024
6,187
1,067
421
7,675
__
_

_
Harrow
L C Wilson
Foundation
Total
Awards
Bequest
Awards
Fund
Fund
£000
£000
£000
£000
Amount available for distribution
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
Investment valuation at 31 August 2024
13,911
2,519
2,882
19,312
_____

_

Three year average
13,297
2,445
2,757
18,500

_


Amount available for distribution –
499
92
103
694
year ending 31 August 2025
_


_
Harrow
L C Wilson
Foundation
Total
Awards
Bequest
Awards
Funds
Fund
£000
£000
£000
£000
Opening valuation at 1 September 2023
12,875
2,338
2,673
17,886
Changes in year
Investment return – income
169
-
-
169
Investment management charge
(12)
(1)
(2)
(15)
Investment return
– realised/unrealised gains and (losses)
1,378
275
314
1,967
Cash withdrawn
(499)
(93)
(103)
(695)


_
___
Net return for the year
1,036
181
209
1,426
Amount available for distribution –
year ending 31 August 2025		 _


_
Closing valuation at 31 August 2024
13,911
2,519
2,882
19,312


__
_
Statement of unapplied total return
Opening valuation at 1 September 2023
5,151
886
212
6,249
Net return for the year
1,036
181
209
1,426

_


Unapplied total return as at 31 August 2024
6,187
1,067
421
7,675
__
_

_
Harrow
L C Wilson
Foundation
Total
Awards
Bequest
Awards
Fund
Fund
£000
£000
£000
£000
Amount available for distribution
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
Investment valuation at 31 August 2024
13,911
2,519
2,882
19,312
_____

_

Three year average
13,297
2,445
2,757
18,500

_


Amount available for distribution –
499
92
103
694
year ending 31 August 2025
_


_
Harrow
L C Wilson
Foundation
Total
Awards
Bequest
Awards
Funds
Fund
£000
£000
£000
£000
Opening valuation at 1 September 2023
12,875
2,338
2,673
17,886
Changes in year
Investment return – income
169
-
-
169
Investment management charge
(12)
(1)
(2)
(15)
Investment return
– realised/unrealised gains and (losses)
1,378
275
314
1,967
Cash withdrawn
(499)
(93)
(103)
(695)


_
___
Net return for the year
1,036
181
209
1,426
Amount available for distribution –
year ending 31 August 2025		 _


_
Closing valuation at 31 August 2024
13,911
2,519
2,882
19,312


__
_
Statement of unapplied total return
Opening valuation at 1 September 2023
5,151
886
212
6,249
Net return for the year
1,036
181
209
1,426

_


Unapplied total return as at 31 August 2024
6,187
1,067
421
7,675
__
_

_
Harrow
L C Wilson
Foundation
Total
Awards
Bequest
Awards
Fund
Fund
£000
£000
£000
£000
Amount available for distribution
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
Investment valuation at 31 August 2024
13,911
2,519
2,882
19,312
_____

_

Three year average
13,297
2,445
2,757
18,500

_


Amount available for distribution –
499
92
103
694
year ending 31 August 2025
_


_
Harrow
L C Wilson
Foundation
Total
Awards
Bequest
Awards
Funds
Fund
£000
£000
£000
£000
Opening valuation at 1 September 2023
12,875
2,338
2,673
17,886
Changes in year
Investment return – income
169
-
-
169
Investment management charge
(12)
(1)
(2)
(15)
Investment return
– realised/unrealised gains and (losses)
1,378
275
314
1,967
Cash withdrawn
(499)
(93)
(103)
(695)


_
___
Net return for the year
1,036
181
209
1,426
Amount available for distribution –
year ending 31 August 2025		 _


_
Closing valuation at 31 August 2024
13,911
2,519
2,882
19,312


__
_
Statement of unapplied total return
Opening valuation at 1 September 2023
5,151
886
212
6,249
Net return for the year
1,036
181
209
1,426

_


Unapplied total return as at 31 August 2024
6,187
1,067
421
7,675
__
_

_
Harrow
L C Wilson
Foundation
Total
Awards
Bequest
Awards
Fund
Fund
£000
£000
£000
£000
Amount available for distribution
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
Investment valuation at 31 August 2024
13,911
2,519
2,882
19,312
_____

_

Three year average
13,297
2,445
2,757
18,500

_


Amount available for distribution –
499
92
103
694
year ending 31 August 2025
_


_
Harrow
L C Wilson
Foundation
Total
Awards
Bequest
Awards
Funds
Fund
£000
£000
£000
£000
Opening valuation at 1 September 2023
12,875
2,338
2,673
17,886
Changes in year
Investment return – income
169
-
-
169
Investment management charge
(12)
(1)
(2)
(15)
Investment return
– realised/unrealised gains and (losses)
1,378
275
314
1,967
Cash withdrawn
(499)
(93)
(103)
(695)


_
___
Net return for the year
1,036
181
209
1,426
Amount available for distribution –
year ending 31 August 2025
_____
92
 _
___
103
694
_____ _____ _____ _____

l 70 THE CORPORATION ANNUAL REPORT

71 l

2023/24

Year ended 31 August 2024

10.5 Notes to financial statements

10.5 Notes to financial statements

Year ended 31 August 2024

12. Fixed asset investments (continued)

iv . Application of the power of total return – expendable endowed funds

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

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 HSEL are included in unrestricted funds in the financial statements at a cost of £2.

viii. HISL

Amount available for distribution

Harrow Challenge
Expendable
Endowed Fund
£000
Investment valuation at 31 August 2022
2,771
Investment valuation at 31 August 2023
2,612
Investment valuation at 31 August 2024
2,813
_____
Three year average
2,732
 Harrow Challenge
Expendable
Endowed Fund
£000
Investment valuation at 31 August 2022
2,771
Investment valuation at 31 August 2023
2,612
Investment valuation at 31 August 2024
2,813
_____
Three year average
2,732
Amount available for distribution – year ending 31 August 2025 _____
102

The Foundation 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

Harrow School
Designated
Awards Fund
£000
Investment valuation at 31 August 2022
23,035
Investment valuation at 31 August 2023
24,232
Investment valuation at 31 August 2024
27,329
_____
Three year average
24,865
 Harrow School
Designated
Awards Fund
£000
Investment valuation at 31 August 2022
23,035
Investment valuation at 31 August 2023
24,232
Investment valuation at 31 August 2024
27,329
_____
Three year average
24,865
Amount available for distribution – year ending 31 August 2025 _____
932

i. Overall portfolio structure

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 been dormant since that date.

13. Stocks

3. 14. Debtors
Stocks
Group
2024
2023
£000
£000
Works department
64
58
Other stocks
223
256
_

287
314
_
 Corporation
2024
2023
£000
£000
64
58
180
159
_

244
217
_

Corporation
2024
2023
£000
£000
509
548
3,733
3,011
-
43
975
990
2,252
1,756
_
___
7,469
6,348
4.

At 31 August 2024 the structure of the total portfolio was as follows:


Gilts/UK fixed interest
Global funds
Charity multi asset funds
Cash
UK equities
Hedge funds
Total		 Group
Corporation
%
%
42.0
42.1
26.5
26.6
19.6
19.3
5.5
5.6
3.7
3.7
2.7
2.7
_
___
100.0
100.0
%

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.

l 72 THE CORPORATION ANNUAL REPORT

73 l

2023/24

Year ended 31 August 2024

Year ended 31 August 2024

10.5 Notes to financial statements

15. Cash at bank and in hand

5.Cash at bank and in hand
Unrestricted
Restricted		 Group
Corporation
2024
2023
2024
2023
£000
£000
£000
£000
968
6,318
711
5,784
16
38
17
38
_
_
__
______
984
6,356
728
5,822

16. Creditors: amounts falling due within one year

16. Creditors:amounts falling due within one year
16.Creditors:amounts falling due within one year Group Corporation
2024 2023 2024 2023
£000 £000 £000 £000
Bank overdrafts 500 9,436 500 9,436
Fees received in advance 13,327 6,234 13,327 6,234
Other taxes and social security 1,026 980 1,026 980
Amounts due to suppliers 1,589 1,262 1,482 1,061
Accruals 3,439 4,138 3,438 4,120
Other creditors 1,899 1,810 1,093 866
Development loans 206 206 206 206
Entry deposits 1,057 872 1,057 872
Part fee deposits 1,010 1,147 1,010 1,147
Retention 1,767 277 1,767 277
Finance leases 19 1 19 1
Deferred consideration 270 270 270 270
Amounts owed to group undertakings - - 572 -
_____ _____ _____ _____
26,109 26,633 25,767 25,470
_____ _____ _____ _____

The bank overdraft is a short-term Lombard facility with EFG International, which is secured on investments.

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

17. Creditors:amounts falling due after more than one y ear
Group Corporation
2024 2023 2024 2023
£000 £000 £000 £000
Bond 89,730 89,722 89,730 89,722
Entry deposits 5,572 4,919 5,572 4,919
Part fee deposits 1,224 703 1,224 703
Development loans 618 824 618 824
Amounts owed to HDT - - 1,900 1,500
Other loans 1,900 1,500 - -
Deferred consideration 270 540 270 540
Finance leases 286 - 286 -
_____ _____ _____ _____
99,600 98,208 99,600 98,208
_____ _____ _____ _____

10.5 Notes to financial statements

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

Bonds

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

A further 40-year bond issued 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 18 December and 18 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 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. The outstanding balance on this loan at 31 August 2024 was £0.82m.

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.

2024 2023
£000 £000
Amounts repayable within one year 206 206
Amounts repayable between two and five years 618 824
Amounts repayable after five years - -
____ ____
824 1,030
____ ____

Corporation: amounts owed to HDT

HDT has entered in to loan arrangements with third parties, which are unsecured and interest-free. The Corporation has entered in to loan arrangements with HDT correspondingly and therefore owes the same amounts to HDT (see note 17, page 74).


amounts to HDT (see note 17, page 74).
2024 2023
£000 £000
Amounts repayable within one year - -
Amounts repayable between two and five years 1,900 1,500
Amounts repayable after five years - -
____ ____
1,900 1,500
____ ____

l 74 THE CORPORATION ANNUAL REPORT

75 l

2023/24

10.5 Notes to financial statements

Year ended 31 August 2024

18. Operating lease commitments

Group and Corporation

As at 31 August 2024, the minimum total lease payments to which the Corporation is committed under noncancellable operating leases (plant and equipment) are:

Expiring within one year
Expiring within two to five years
Expiring more than five years		 2024
£000
184
326
-
____
510
 2023
£000
107
334
-
____
441

19. Capital commitments

Group and Corporation

At 31 August 2024, capital works contracted for amounted to £18,808,000 (2023/23 - £23,991,000).

At 31 August 2024, capital works contracted for amounted to £18,808,000 (2023/23 - £23,991,000).
2024 2023
£000 £000
Commitments within one year 14,972 15,027
Commitments over one year 3,836 8,964
_____ _____
18,808 23,991
_____ _____

10.5 Notes to financial statements

Year ended 31 August 2024

20. Pension liabilities

Group and Corporation

Pension scheme liabilities are summarised as follows:

Non-teaching staff defined benefit scheme
Other benefit arrangements
Total pension liability
Total (decrease)/increase in liability (see 20(i) c)		 2024
£000
4,394
110
_
4,504
___
(615)
 2023
£000
5,004
115
_
5,119
___
663

(i) Non-teaching staff defined benefit scheme – HSSSPS

HSSSPS, a scheme for eligible non-teaching staff, who are all employed by the Corporation but work on the activities of either Harrow School, 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 HSSSPS 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 HSSSPS are charged to the SoFA of the School, 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 HSSSPS 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 HSSSPS 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 HSSSPS’s trustees have resolved to return the funding level to 100% by 2038. As a consequence, the Foundation 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 £406,000 (2022/23 – £394,000). The expected scheme contributions for the year ending 31 August 2025 are estimated at £418,000.

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 2024 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.

l 76 THE CORPORATION ANNUAL REPORT

77 l

2023/24

Year ended 31 August 2024

10.5 Notes to financial statements Year ended 31 August 2024

20. Pension liabilities (continued)

Group and Corporation

The amounts recognised in the balance sheet are as follows:

2024 2023
£000 £000
Present value of obligations (18,165) (17,973)
Fair value of plan assets 13,771 12,969
______ ______
Scheme deficit (4,394) (5,004)
______ ______
a) Changes in the present value of the scheme obligations:
Opening defined benefit obligation 17,973 20,413
Past service costs (10) -
Interest cost 933 864
Actuarial loss/(gain) (excluding assets) 9 (2,644)
Benefits paid (740) (660)
______ ______
Defined benefit obligations at the end
of the year 18,165 17,973
______ ______
b) Changes in the fair value of the scheme assets are as follows:
Opening fair value of scheme assets 12,969 16,077
Interest income on scheme assets 679 685
Return on assets excluding interest income 511 (3,466)
Employer contributions 406 394
Benefits paid (740) (670)
Scheme administration cost (54) (51)
______ ______
Fair value of scheme assets at the end
of the year 13,771 12,969
______ ______
c) The amounts included in the Statement of Financial Activities are as follows:
Interest income on scheme assets (679) (685)
Interest on pension liabilities 933 864
____ ___
Net finance cost (see note 7) 254 179
Current service cost 54 51
Past service costs (10) -
Contributions paid (406) (394)
____ ____
FRS 102 credit before actuarial gains/losses (108) (164)
(Decrease)/increase in other benefit arrangements (5) 5
____ ____
Total debit/(credit) to SoFA (see note 7) (113) (159)
FRS 102 actuarial (gains)/losses (504) 822
Movement in non-consolidated Foundation entity liability 2 -
_____ ____
(Decrease)/increase in liability (615) 663
_____ ____

10.5 Notes to financial statements

20. Pension liabilities (continued)

Group and Corporation

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

2024 2023
% %
Fixed interest and liability driven investment 44 40
Cash and other 5 3
Equities and properties 16 19
Insured annuities 9 11
Diversified grants and funds 26 27
___ ___

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.

2024 2023
£000 £000
Actual return on the scheme assets in the year 1,136 (2,832)
___ ____
e) Principal assumptions at the balance sheet date (expressed as weighted averages):
2024 2023
% %
Inflation assumption (RPI) 3.0 3.3
Inflation assumption (CPI) 2.5 2.7
Discount rate 5.0 5.3
Rate of increase in salaries 4.0 4.3
Future LPI pension increases 3.0 3.3
Assumed life expectations on retirement at age 65:
Retiring today – males 21.2 21.4
Retiring today – females 28.9 24.0
Retiring in 20 years – males 22.8 23.0
Retiring in 20 years – females 25.4 25.5
f) The amounts for the current and previous periods are as follows:
2024 2023 2022 2021 2020
£000 £000 £000 £000 £000
Present value of obligations (18,165) (17,973) (20,413) (31,093) (30,938)
Fair value of plan assets 13,771 12,969 16,077 22,276 20,954
______ ______ ______ ______ ______
Scheme deficit (4,394) (5,004) (4,336) (8,817) (9,984)
_____ _____ _____ _____ _____
Experience adjustment on scheme assets (511) 3,466 6,277 (1,582) 687
Percentage of scheme assets 3.7% -26.7% -38.7% 7.1% 3.3%
Experience adjustment on scheme liabilities 9 (2,644) (10,521) 602 (506)
Percentage of scheme liabilities 0.0% 14.7% 51.5% 1.9% 1.6%
Cumulative scheme actuarial losses (5,072) (5,574) (4,752) (9,046) (10,026)

l 78 THE CORPORATION ANNUAL REPORT

79 l

2023/24

10.5 Notes to financial statements

Year ended 31 August 2024

20. Pension liabilities (continued)

Group and Corporation

Harrow School has other benefit arrangements comprising:

The value of the unfunded liability arising from these arrangements at 31 August 2024 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:

2024 2023
£000 £000
Provision at beginning of year 115 120
Decrease in provision (5) (5)
_____ ____
Provision at end of year 110 115
_____ ____
After more than one year 110 115
____ ____

The Schools participate in the Teachers’ Pension Scheme (“the TPS”) for teaching staff. The pension charge for the year includes contributions payable to the TPS of £3,598,000 (2022/2023 – £3,316,000) and at the year-end £318,000 (2022/2023 – £260,000) was accrued in respect of contributions to TPS.

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

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2020 and the Valuation Report was published in October 2023.

Following the McCloud judgement, the remedy proposed that when benefits become payable, eligible members can select to receive them from either the reformed or legacy schemes for the period 1 April 2015 to 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the greater benefits, and in preparing the 2020 valuation has valued the ‘greater value’ benefits for groups of relevant members.

The employer contribution rate for the TPS is 28.6%, and employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 28.68%.

A defined contribution scheme known as the Harrow Corporation Pension Scheme is offered to eligible employees. The amount recognised in the SoFA for the year was £1,029,000 (2022/23 – £947,000). The expected Scheme contributions for the year ending 31 August 2025 are estimated at £1,555,000.

10.5 Notes to financial statements

Year ended 31 August 2024

21. Allocation of consolidated net assets for the year ended 31 August 2024

The net assets at 31 August 2024 are 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
incl the Philathletic Trust * 3,341 10 3,096 330 - 6,777
Harrow School Endowment Fund
-		 985 - - - 985
Shepherd Churchill Bequest* - - 5,814 (14) - 5,800
Butler Memorial Trust 19 - 96 279 - 394
Awards
Harrow Awards Fund * - - 13,911 (22) - 13,889
L C Wilson Bequest - - 2,519 - - 2,519
Foundation Awards - - 2,882 (108) - 2,774
Harrow Challenge - - 4,890 (18) - 4,872
_____ ____ _____ _____ _____ ______
3,360 995 33,208 447 - 38,010
_____ ____ _____ _____ _____ ______
Expendable endowment
J G Apcar Trust* 301 77 - 1 - 379
Harrow Challenge - - 2,813 22 - 2,835
Harrow Awards - - 4,777 197 - 4,974
_____ ____ _____ _____ _____ ______
301 77 7,590 220 - 8,188
_____ ____ _____ _____ _____ ______
Total capital funds 3,661 1,072 40,798 667 - 46,198
_____ _____ _____ _____ _____ ______
Income funds
Restricted
Harrow - - - 3,450 - 3,450
JLS - - 260 152 - 412
Subsidiaries - - 826 388 (1,900) (686)
_____ ____ _____ _____ _____ ______
- - 1,086 3,990 (1,900) 3,176
_____ ____ _____ _____ _____ ______
Unrestricted
Designated
Harrow Awards - - 27,189 (4,154) - 23,035
JLS - - 4,864 558 - 5,422
Awards - - - (132) - (132)
Other - - - (117) - (117)
Bond - - 83,931 - (89,730) (5,799)
General
Harrow 145,718 516 6,606 (20,335) (5,347) 127,158
JLS 20,273 - - 331 (7,127) 13,477
Subsidiaries 6 - - 1,731 - 1,737
______ _____ _____ _____ _____ ______
165,997 516 122,590 (22,118) (102,204) 164,781
______ _____ _____ _____ _____ ______
______ _____ _____ _____ _____ ______
Total income funds 165,997 516 123,676 (18,128) (104,104) 167,957
______ _____ _____ _____ _____ ______
Total funds 169,658 1,588 164,474 (17,461) (104,104) 214,155
______ _____ _____ _____ _____ ______

l 80 THE CORPORATION ANNUAL REPORT

81 l

2023/24

Year ended 31 August 2024

Year ended 31 August 2024

10.5 Notes to financial statements

21. Allocation of consolidated net assets for the year ended 31 August 2024

The movement in reserves for the various funds for the year ended 31 August 2024 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* 6,389 - (2) 310 80 6,777
Harrow School Endowment Fund 985 - - - - 985
Shepherd Churchill Bequest * 5,188 - (3) 615 - 5,800
Butler Memorial Trust 377 - - 17 - 394
Awards
Harrow Awards Fund* 12,756 - (12) 1,472 (327) 13,889
L C Wilson Bequest 2,338 - (1) 275 (93) 2,519
Foundation Awards 2,687 - (2) 192 (103) 2,774
Harrow Challenge 4,358 - (33) 547 - 4,872
_____ ____ _____ _____ _____ ______
35,078 - (53) 3,428 (443) 38,010
_____ ____ _____ _____ _____ ______
Expendable endowment
Harrow Challenge 2,634 - (2) 308 (105) 2,835
J P Apcar Trust* 405 - - (26) - 379
Other 4,292 178 (2) 506 - 4,974
_____ ____ _____ _____ _____ ______
7,331 178 (4) 788 (105) 8,188
_____ ____ _____ _____ _____ ______
Total capital funds 42,409 178 (57) 4,216 (548) 46,198
_____ ____ _____ _____ _____ _____
Income funds
Restricted
Harrow 3,915 2,165 (5,773) 587 2,556 3,450
JLS 399 679 (694) 28 - 412
Subsidiaries (213) 48 (8) (513) - (686)
_____ ____ _____ _____ _____ ______
4,101 2,892 (6,475) 102 2,556 3,176
_____ ____ _____ _____ _____ ______
Unrestricted
Designated
Harrow Awards 19,713 - - 3,322 - 23,035
JLS 4,809 - (10) 489 134 5,422
Awards (182) - - 922 (872) (132)
Other (116) - - (1) - (117)
Bond (8,350) - - 2,551 - (5,799)
General
Harrow 120,021 49,556 (55,812) 1,523 11,870 127,158
JLS 12,322 18,180 (16,891) - (134) 13,477
Subsidiaries 1,594 16,953 (5,815) 2,011 (13,006) 1,737
______ _____ _____ _____ _____ ______
149,811 84,689 (78,528) 10,817 (2,008) 164,781
______ _____ _____ _____ _____ ______
______ _____ _____ _____ _____ ______
Total income funds 153,912 87,581 (85,003) 10,919 548 167,957
______ ______ ______ ______ ______ ______
Total funds 196,321
______		 87,759
_____		 (85,060)
_____		 15,135
_____		 -
_____		 214,155
_____

10.5 Notes to financial statements

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 2024 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
J G Apcar
Trust		 Butler
Memorial
Trust
J G Apcar
Trust
£000 £000 £000 £000
Investments
Additions
Disposals
Investment income
Realised gain
Unrealised gains
Net movement in cash held for
investment
Investment properties
Rental income
Investments
Additions
Dispo als
Investment income
Realised gain
Unrealised gains
Net movement in cash held for
investment
Investment properties
Rental income
- 2,628 - -
(4) (2,526) - -
- - - -
- 6 - -
615 1,472 17 -
1 445 -
-
- - - 1

In addition to the above Uniting Direction, the assets of the Harrow Land Trust comprise land currently occupied by a farm and a golf course at Harrow School, the original value of which is not known and no current value is placed upon it.

l 82 THE CORPORATION ANNUAL REPORT

83 l

2023/24

Year ended 31 August 2024

Year ended 31 August 2024

10.5 Notes to financial statements

21. Allocation of consolidated net assets for the year ended 31 August 2023

10.5 Notes to financial statements

21. Allocation of consolidated net assets for the year ended 31 August 2023

y g

The net assets at 31 August 2023 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* 3,421 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 - - 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
______ _____ _____ _____ _____ ______

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

Capital funds
Balance
Income
Expenditure
brought
forward
Permanent endowment
£000
£000
£000
General
School and Lyon Foundation
incl the Philathletic Trust*
6,359
-
(4)
Harrow School Endowment Fund
985
-
(29)
Shepherd Churchill Bequest
5,293
-
-
Butler Memorial Trust
377
-
-
Awards
Harrow Awards Funds
13,142
-
(12)
L C Wilson Bequest
2,479
-
(2)
Foundation Awards
2,717
-
(2)
Harrow Challenge
4,447
-
(3)
_

_
35,799
-
(52)


__
Expendable endowment
Harrow Challenge
2,793
-
(2)
J P Apcar Trust
403
1
-
Other
4,183
178
(2)
_

_
7,379
179
(4)


__
*Total capital funds
43,178
179
(56)
_____
____
_____
Income funds
Restricted
Harrow
5,549
626
(4,658)
JLS
424
646
(668)
Subsidiaries
1,248
1,442
(4)
_

_
7,221
2,714
(5,330)


__
Unrestricted
Designated
Harrow Awards
19,393
-
-
JLS
4,194
36
(6)
Masterplan
(1,443)
60
(3,446)
Awards
(182)
-
-
Other
(116)
-
-
Bond
(9,382)
-
-
General
Harrow
113,855
45,471
(45,783)
JLS
12,546
15,573
(15,616)
Subsidiaries
(280)
19,978
(5,723)
__


138,585
81,118
(70,574)
__


Total income funds
145,806
83,832
(75,904)
__
_
___
_
Total funds
188,984
84,011
(75,960)


 Gains
Transfers Balance
and
carried
losses
forward
£000
£000
£000
(46)
80
6,389
29
-
985
(105)
-
5,188
-
-
377
(37)
(337)
12,756
(47)
(92)
2,338
73
(101)
2,687
(86)
-
4,358
_


(219)
(450)
35,078

_
_
(52)
(105)
2,634
1
-
405
(67)
-
4,292

_
_
(118)
(105)
7,331

_
_
(337)
(555)
42,409
_____
_____
_____
2,885
(487)
3,915
(3)
-
399
(2,899)
-
(213)

_
_
(17)
(487)
4,101

_
_
320
-
19,713
(64)
649
4,809
4,829
-
-
809
(809)
(182)
-
-
(116)
1,032
-
(8,350)
(9,264)
15,742
120,021
468
(649)
12,322
1,510
(13,891)
1,594

_
_
(360)
1,042
149,811

_
_
(377)
555 153,912

__
____
(714)
-
196,321
_
(377)
___
_
(714)

l 84 THE CORPORATION ANNUAL REPORT

85 l

2023/24

Year ended 31 August 2024

10.5 Notes to financial statements

10.5 Notes to financial statements

Year ended 31 August 2024

21. Allocation of consolidated net assets (continued)

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:

Investments
Additions
Disposals
Investment income
Realised losses
Unrealised gains
Net movement in cash held for
investment
Investment properties
Rental income
Investments
Additions
Dispo als
Investment income
Realised losses
Unrealised gains
Net movement in cash held for
investment
Investment properties
Rental income		 Shepherd
Churchill
Bequest		 Shepherd
Churchill
Bequest		 Harrow
Awards
Fund		 Harrow
Awards
Fund		 Butler
Memorial
Trust
J G Apcar
Trust
£000
£000
-
-
-
-
-
-
-
-
-
24
-
-
-
(1)
£000 £000 £000
- 1,804 -
(5) (2,128) -

-
-		 -
- 43 -
(103) 75 -
2 (25)
- - -

22. Indemnity insurance

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

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 2024

Income/(expenditure) Debtor/(creditor) balance
Income
Expenditure
Debtor
balance		 Income/(expenditure) Debtor/(creditor) balance
Income
Expenditure
Debtor
balance		 Income/(expenditure) Debtor/(creditor) balance
Income
Expenditure
Debtor
balance		 Creditor
balance
£000 £000 £000 £000
HSEL
HSEL		 332 (685) 317 -
HISL
HISL		 5,497 (37) 2,771 -
HDT
HDT		 7,250 (81) (244) (1,900)

Related party transactions for the year ended 31 August 2023

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

The cost of the insurance amounted to £10,000 (2022/23 – £9,000).

23. Related party transactions

l 86 THE CORPORATION ANNUAL REPORT

87 l

2023/24

10.5 Notes to financial statements

24. Consolidated statement of financial activities for the year ended 31 August 2023 ~~ee~~

Income funds

Income funds		 Income funds

Income funds		 Capital funds Capital funds
Unrestricted Restricted Expendable Permanent Unrestricted Restricted Expendable Permanent Unrestricted Restricted Expendable Permanent Unrestricted Restricted Expendable Permanent
Notes funds funds endowment endowment Total funds funds endowment endowment Total funds funds endowment endowment Total funds funds endowment endowment Total funds funds endowment endowment Total
Income and endowments from: £000 £000 £000 £000 £000
Charitable activities
School fees receivable
Ancillary trading income
Charitable grants received
Voluntary sources
Other charitable income
Non-ancillary trading income
Other incoming resources
Investments
Investment income
Total income
Expenditure on:		 1
2i
2ii
2iii
2iv
3
4		 53,509
5,587
660
8,337
10,284
(353)
3,094
__
81,118
____		 -
-
965
1,502
-
88
159
__
2,714
____		 -
-
-
-
965
-
1,502
179
-
-
88
-
159
-
__
2,714
179
____		 -
-
-
-
-
-
-
__
-
____		 53,509
5,587
1,625
10,018
10,284
(265)
3,253
__
84,011
____
Raising funds
Fundraising costs 1,435 109 109
-		 - 1,544
Non ancillary trading expenses 2iv 4,318 - -
-		 - 4,318
Finance costs 7 3,285 - -
-		 - 3,285
Investment management costs 436 1 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
Support costs
Grants, awards and prizes		 5iii 15,335
6,535
-		 -
18
5,199		 -
-
-		 -
-
-		 15,335
6,553
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 1,042 (487) (105) (450) -
(Losses)/gains on investment assets 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 (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
______ _____ ______ ______ ______

l 88 THE CORPORATION ANNUAL REPORT

89 l

Appendix 1

Glossary of terms

The Corporation

A charity comprising Harrow School and John Lyon School ("the Schools")

The Group

The Corporation and three principal entities, namely Harrow International Schools Limited, Harrow Development Trust and Harrow School Enterprises Limited

Appendix 2 Contact information

Harrow School

Harrow International Schools Limited Harrow School Enterprises Limited Harrow Development Trust

5 High Street Harrow on the Hill Middlesex HA1 3AP

Consolidated and consolidation

The presentation in this annual report of the financial statements of the Corporation and the Group combined

The Foundation

John Lyon’s Foundation, which comprises the Corporation and Group and a separate legal entity and charity, John Lyon’s Charity. The Corporation is sole trustee of John Lyon's Charity

John Lyon School

Middle Road Harrow on the Hill Middlesex HA2 0HN

Governors and Foundation Governors

The appointed members of the governing body of the Corporation

Trustees

The Governors and Foundation Governors acting in their capacity as charity trustees of the Corporation

Endowments

Bequests of assets to the Corporation which must either be retained (permanent) or can be used (expendable)

Trust or trusts

May refer in the financial statements to charities linked to the Corporation or to funds, either of which hold expendable or permanent endowment for the Corporation

Fundraising

Activities undertaken principally by Harrow Development Trust to support Harrow School

Statement of financial activities (SoFA)

The summary of the financial performance of the Corporation in reporting period (2023/24)

The Charter

The principal founding document of the Corporation

Objects

The precise charitable aims of the Corporation as set out in the Charter

l 90 THE CORPORATION ANNUAL REPORT

2023/24 91 l

Partof JOHN LYON'S FOUNDATION