Charlty registration number 310637 Company regi5tra*ion number 00068471 (England and Wales) THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED LEGAL AND ADMINISTRATIVE INFORMATION Trustees Mrs Tara Leaver {Chair} Mr Jeremy Banks Mr5 Kathryn Berens Mr David Flower Mr Nigel Garrett Mrs Janine Kochman Mr Andrew Logan Mr Jack Murray Mr Stuart Nicholls Mrs Modupe Omonijo Mr Geoffrèy Parkin Mrs Emma Perkins Charlty nurnber 310637 Company number 00068471 Roglstered offl¢e Godstowe Preparatory School Shrubbery Road Hlgh Wycombe Buckinghamshire United Kingdom HP13 6PR Auditor Azets Audit Services Westpoint Lynch Wood P8t8rborough Cambridgeshire United Kingdom PE2 6FZ Bankers National Westminster Bank PIC Svenska Handelsbanken AB Barclays Bank Pl¢ Kèy ex£¢utlvè$ Headmistress Direclor of Finance & Operations Clerk lo the Govemors Ms Kate Bailey M.A. (Hons) PGCE Mrs Samantha North Ms Hannah Miles Webslte www.godstowe.org
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED CONTENTS Page Trustees. report Statement of Trustees, responsibiltties Independent auditorfs report 9-11 Statement of financial a¢livitles 12 Balan¢e sheet 13 Slatement of cash flows 14 Notes lo the financial slatemenls 15-27
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED TRUSTEES. REPORT {INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 AUGUST 2024 The Trustees, who are also Directors for the purposes af the Companies Act 2006. present their annual report and financial statements for the year ended 31 August 2024. The financial slatements have been prepared in accordance with Ihe accounting policies set oul in note 1 to the financial statements and comply with the Company's goveming document. the Companies Act 2006 and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102)" (effective 1 January 2019). Constitution and Objects The Godstowe Preparatory School Company Limited (the 'CompanW) was incorporated in 1900 as a company limited by shares. as defined by the Companies Act 2006, is registered in England and is also registered with the Charity Commission. The Company is governed by ils Articles ofAssocialion. The Company's objects. as set out in its Articles of Association, are to advance the education of young girls and boys by the provision of schooling (including nursery s¢hooling). In pursuance of these objects for the public benefit. the Company's sole business is the operation of Godstowe Preparatory School (the 'School'}, incorporating a nursery, 'pre-prep' department and main school. and il has eslablished and administers bursaries, scholarships and other benefactions and acts as trustee and manager of property and gifts given in pursuance of these objects. The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Company should undertake. School Objectives andAclivities The S¢hool was established in 1900 with the principal objective of providing systematic education and training for young girls and boys so as to prepare them for subsequenl education in public or other senior schools. The School operates with boarding houses and a nursery as envisa9ed in the original objects. The School also holds lectures, exhibilions, public meetings and classes calculated to advance the cause of education. whiGh is also in accordance with the objects of the School. The School aims to provide a first-class education to girls from age 3 to 13 and boys from age 3 to 7. It seeks to provide a structured educational environment Ihat develops pupils, capabilities, competences and skills and gives them the confidence lo go on to senior schools and succeed. The School promotes the academic. moral and physical development of its pupils through the academic curriculum. pastoral care, sport and other activities. The School provides an educational environment where each student can develop and fulfil their potential, building their self-confidence and instilling a desire to contribute to the wider community. The School is committed to safeguarding and promoting the welfare of pupils and expects all staff and volunteers to share this cornmilment. Appropriate policies and procedures are in place to support this aim and all activities across Ihe School are judged against this objective. Misslon Statement The School's mission is to provide the necessary education and environmer)t where the School values of kindness. respect, integrity and balance are embedded, to enable pupils lo develop through a journey of self-assurance and personal achievem8nt to ensure they become confident, happy and successful. In doing so, the School aims lo promote the best opportunities for pupi15 by providing a challenging curriculurn and a wide range of extra-curricular activitie5. together with a stimulaling and enjoyable boarding experience.
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Stru¢ture, Governance and Management The Board of Govemors. or 'Council', is responsible for the overall management and control of the Company and the School. All members of Council are Trustees of the Charity. Directors of the Company and Governor5 of Ihe School. Council meets al least three times per year. Currently Council has a Finance sub-committee which also meets three limes a year and reports lo Council. The purpose of this committee is to oversee all financi81 aspects of the School, working alongside the Director of Finance & Operations lo ensure the School's short-term and long- term viability. Further sub-commillees have been established - an Estates sub-commillee to consider investment proposals in all their details, from financial Ihrough health and safety to logistics, an Education sub-commillee lo ensure that the School's curiiculum. systems and activities deliver the best outcomes for pupils and a Revenue and Remuneralion sub-committee to provide recommendations to Council on the annual review of staff remuneratlon and School fees. These sUCOMmItteeS meet as and when appropriate. In addition. Governors are also assigned to oversse specific areas of the School's operations. for example, safeguarding and boarding. The Trustees, who are also the Directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: Mrs Tara Leaver (Chair) Mrs Kathryn Allner Mr Jeremy Banks Mrs Kathryn Berens Mr David Flower Mr Nigel Garrett Mrs Janine Kochman MrAndrew Logan Mr Jack Murray Dr Fiona Neale Mr Stuart Nicholls Mrs Modupe Omonijo Mr Geoffrey Parkin Mrs Emma Perkins Mr Thomas Richardson-Bunbury Mrs Geraldine Rogers Mrs Sarah Stokes {Resign8d 19 March 2024) (Appointed 28 November 2024) (Appointed 28 November 2024) (Appointed 28 November 20241 (Appointed 28 November 2023) (Resigned 31 August 2024) {Resigned 31 August 20241 (Resigned 31 August 20241 (Resigned 31 Augusl 2024) None of the Trustees has any benefrcial Interest in the Company. All of the Trusteès are members of the Company and guarantee to contribute £1 in the event of a winding up. Oryanisational Management The day-to-day management of the School is delegated to the Headmistress. who is supported by the Director of Finance & Operations and other members of the senior leadership team. The Headmistress. the Director of Finance & Operations and the Clerk lo the Governors attend Council and Finance sub-committee meetings. Other sub- committees will be attended by either the Headmistress or the Director of Finance and Operations and Governors nominated as membeis. Other members of School staff also attend meetings on occasion, according to their responsibilities. Recruitment and Training of Governors Governors are appointed by agreement at a full Council meeting. Suitable candidates for new governors are identified by existing Governors or key executives of the School followed by a formal recruitment process. with a recommendation presented to Council. New Govemors are introduced to the workings of the School thrwgh an induction programme. Council has periodic Iraining up-date events.
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Employment Policy The Company is an equal opportunities employer. Full and fair consideration is given to job applications from disabled persons and due consideration is given to their training and employrnent needs. Consullalion with employees takes place at all levels with the aim of taking the views of employee5 into account when decisions are made that are likely lo affect their interests. Employees are made aware of the financial and economic performance of Ihe Company. Publlc Beneflt In setling objeclives and planning, the Govemors give careful consideration to the Charity Commission's guidance on public benefit. The Company is a charily which seeks to benefit the public through the pursuit of ils slalod aims. Fees are set at a level to ensure Ihe financial viability of the School and at a level that is consistent with Councifs aim of providing a first-class education for the School's pupils. In setting the fees the Govemors take into aGcount future plans for the School. the current economic and polilical climate and the ability of parents lo meel their financial commitments. The School welcomes pupils from all backgrounds. The School Is non-sele¢tive but aims to ensure that pupils can cope with the pace of learning and thus benefit from the education provided. An individual's econom status, ethnlcity, race, religion or disability does not fomi part of the School's assessment pro¢ess. The Governors are committed to iheir policy with regard to allowing those who Cannot afford the current fees to gain access to Ihe first-class education provided by the School. Council is determined not lo dilute the quality of the educalion currently provided while stlll offering assisted places in (Jefined circumstanc8s. With this in mind. Council has put in place the provision of means tested bursaries (assisted places) for able children from families who are less well•off. and Ihe bursaries granted in the current year wère worth £279,266 (2023: £208,552). The School does not hav8 endowments and. in funding bursary awards, the Governors are mindful that a balance musl be struck between fee-paying parents, many of whom make considerable personal sacrifices to fund their children's education, and those benefiting from the awards. The Govemors seek to maximise the number of bursarles awarded each year whilst remaining within the constraints both of the foregoing and being able to identify suitable beneficiaries. Social Investments The School is part of the wider local community and the Govemors are keen thal staff and pupils participate in that Cornmunity. During the year, pupils raised thousands of pounds for various children's charities under the dirlI0n of a charity officer. The School regularly meets with the local church in High Wycombe to coordinate services held in town and at the School. The Governors have allowed the School to be used as an examination cenlre al no cost and the local community is allowed to use the School's facilitie5 where appropriate. Wycombe District Swim Club uses the School's swimming pool complex when not in use by the School at a discount to commercial rates. Hamilton Road Primary School pupils use the pool regulady without charge. The neighbourhood watch and local residents. association both use the School's premises on a regular basis at no charge. The School continues to co-operate with the local fire brigade by allowing an annual fire drill to be carried oul in one of the boarding houses. Council is very aware that the security of pupils is of primary importance and thus the School is always careful to vet fully any outside use of the School's facilities but. subject lo this consideration, 15 keen to buikj further partnerships with the local community.
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 37 AUGUST 2024 Strategy The Governor5 are responsible for setting a strategy for achieving the School's objectives. The focus of the strategy is the development of the pupils and their continued high level of academic achievemenl, whilst supporting them pastorally, covering a range of pupil ability and enabling each child lo fulfil their potential. In iaking forward the strategy. the Governors-. Review and benchmark the School's academic syllabus. teaching practices and academic results., Ensure that the fange of co- and extra-curricular activities available to pupils is stimulating and challengin9', Ensure that the school fosters a culture of acceptance and understanding, so all girls and staff feel valued, welcome and secure. Ensure high standards of safeguarding, pasloral care and wellbeing., Invest in technology and the infrastructure of the School., Co-operate and share resources with local schools., and Conlinue to review and develop methods for awarding bursaries and scholarships to ensure wider aCsS to pupils from all backgrounds. Prlnclpal Rlsks and Uncertaintl•s and Rlsk Management Risk Management Council keeps the School's activities under regular review and closely monitors risks that arise from time to time and the effectiveness of Ihe controls and other means by which those risks are mitigated. The key controls include.. Formal agendas for all Council and sub-committee meetings, together with d8tailed lemis of reference for all such committees. Clear responsibilities and duties defined for Governors overseeing a particular aspect of the School's operations: Comprehensive strategic planning, budgeting and management accounting, togethèr with frequent revièw of performance against those plans and budgets-. Established organisational structures, lines of reporting and internal controls. including specified levels of authorisation and approval; The maintenance of a detailed strategic risk register.. Formal written policies.. and Vetting procedu$ for the protection of children. In addition, the Governors can establish additional sub-committees to deal with specific risks as they aflse. Principal Risks and Mitigation The principal risks for UK indgpendenl schools are- A reduction in demand for pupil places; and Significant increases in the cost of school operations. These Trsks a created or exacerbated by the following factors or a combination of Ihem: UK political factors - the threatened loss of the existing VAT exemption on school fees and the charitable relièf on business rates for independent schools crystallised following Ihe UK general election in July 2024 and the ensuing budget in October 2024. At the same time significant increases in employment costs were introduced. The effects these factors will have on the UK independent school sector in terms of demand for sGhool places and the cosls of school operations are expected to be substantial but will not be fully understood or fell for some time. Geopolitical and economic uncertainty - threatened and actual global conflicts together with political developments and. previously, the Covid pandemic have crealed widespread economic disruption, leading to a range of inflationary factors, loss of consumer confidence and reductions in disposable income. As a result. there has been. and remains, substanlial upward pressure on school fees and parental concerns over their affordability.
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Council has placed significant focus Dn these risk5 over the past year and continues to do so. Mitig8ting action5 have included: Ensuring the quality of the education seNices provided lo pupils remains al a very high standard, thereby maintaining the attractiveness and competitive position of Ihe School.. Applying rigorous financial discipline to the School's operations to minimise the cost of delivering those services without any impact on their quality. This has included a reslructuring of the staff resources of the School and additional caution in commilling to capital projects., and Reviewing and augmenting the marketing operations of the School to ensure maximum appropriate geographical coverage and awareness of the School's services. Through the risk management processes and controls established for the School, the Governors are satisfied Ihat all major risks. including those relating to health and safety, have been identified and are being adequately managed. 11 is recognised, however, that such processes and ¢onlrols can only provide reasonable bul not absolute assurance that major risks have been adequately mlllgated. Future Plans The main focus for the future ¢ontinues to be the regular review and updating of Council's strategic plan lo ensure it remains the school of choice for those seeking single sex prepschool education, with the option for boardin9, UP to the age of 13. This plan considers the academic, extra-curricular, pastoral and boarding elements of the School's offering and the facilities required to support this. The plan also covers the School's IT provision. Having delivered greater integralion of IT on a day-to-day basis Into the classroom during the Covid pandemic, the benefits that technology can deliver are well understood and, accordingly, the Govèrnors recognise the importance of keeping the School's IT provision up-to-date and fit for purpose for both the delivèry of high quality and progressive educalion logether with the support functions necessary to achieve this. However, it is also recognised that the costs relaled to these improvements need to be carefully managed. Revlew of Achlevements and Perforniance for the Year The educational p8rfomiance of the School during the year continues to deliver results that allow leavers to be offered places at Iheir first choice of senior school. Furthermore, 23 scholarships, awards and dislinclions were offered to pupils for their next schools. The senior leadership teaffl continues to provide clear and enthusiastic direction for the School in challenging limes and has received strong 5UPPOrtive feedback from parents. The success of the School has been recognised in the year by the School having been norninated for and achieved the following awards.. Awarded Boarding School Association's -supporting Junior Boarders. Award Listed in the top 10 Prep Schools in the UK in the Carfax Education Index Finalist for Talk Education's "Creative and Perfoming Art5" category Finalist for Talk Educalion's "Environmental Achievement" category Finalist in Education Choices Magazine's "Inclusive Opportunities in Art and Music" category School's Early Years Team finalists in the"Most Creative Learning Through Play" category of Muddy Stilettos Best Schools Award5 School Nursing Team awarded the BSA Seacole Standard 2024 First place in Local Senior School STEAM challenge for pupils, with Godstowe being the only girfs prep school taking part Pupil numbers were 397 compared with 433 the year before. Vvhilst these numbers afe lower than the school would have preferred, given the uncertainty created by the economic and polilical situation, Ihis was not unexpected. As sult, strategies are being implemented to improve pupil numbers through increased recruitment of new pupils as well as retention of existing pupils.
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Once again. Ihe efforts of all the staff across the School has been well received by the parents and the Governors appreciate the dedicalion and commitrnent of the whole school team. Due lo the uncertainly crealed by the current economiG Climate and in particular SDme significant increases in costs. particularly in catering, Council remains cautious when determining capital expenditure plans. Accordingly. there have been no major projects carried out during the year. although several more minor replacements and Epairs have been completed. The wider investment plan for the future is being kept under review and decisions will be made dependent on needs and the financial stren9th of the School. FlnanGial Review Results for the Year The nel deficit for the year was £363,055 compared with net income of £14,303 in Ihe previous year. The current economic climate continues to create challenges for the School in both managing its costs and protecting Its income, as parents, personal finances are also under Challenge. This situation has been exacerbated by the threat of removal of VAT exemptions on school fees. In response, as noted in Principal Risks and Mitigaticn (above), tho School has scaled back its cornmitmenl lo capital projects and carefully reviewed the level of all its costs, including a restructuring of its staff resources, th8 Cost of which was borne during the year. Despite the impact of the net deficit for the year, cash generated from operations has rernained healthy at £727,235 compared to £931.035 in the previous year, driven primarily by an increased level of fees paid in advancè. This. together with continued prudent management of capital expenditure, resulted in cash balances at the end of the y8ar improving to £4,336.986 (2023.. £3,650.226). Fundraising Donations during the year amounted to £7,145 (2023: £29,802). Allhough there were no formal fiJnd-raising campaigns carried out by the School during the year. 'Friends of Godstowe, (the parental charitable organisalionl continued to play an invaluable role in raising funds for the School and the Govemors are extremely appreciative of their efforts and the generosity of everyone who has contributed. These donations allow the School to bring forward plans and complete them earlier than would otherwise have been possible. or provide 'icing on the cake. items Ihal are not considered essential but further enhance the pupil's experiences. Investment Policies The School does not have any external investments, but in line with our policy of diversifying financial risk the School divides its short-tem cash depostts be1ween its principal bankers. The Govemors continue to keep this policy un¢Jer careful review. Reserve Levels and Policy The Govemors are mindful that the School does not have endowmenls and that the current economic dimate makes the future somewhat uncertain. The running costs of the School continue lo rise. due to a number of inflationary factors. In addition. the financial dynamics of ils operations make the School heavily dependent on pupil numbers and fee levels. With this in mind. the Governors need to ensure that the level of reserves is adequate to rneet the running expenses of the School and to allow for future capital projects. Al the end of the year, the Company had total reserves of £9.856.897 (2023.. £10.219,9521 and unrestricted reserves of £9.174,381 {2023.' £9.561.820). After adjusting for unrestricted functional fixed assets for the Company's own use, free reserves improved further to £224,310 {2023.' £102.915) reflecting the continued careful priorilisalion of capital expenditure. It remains the intention of the Governors to continue to improve the free reserves position as soon a5 possible. It 15. however, recogni5ed that. with the continuing uncertainty created by the 5ks faced by the School, Ihis may not be achievable in the short term.
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 It is the policy of the Company that ils Cash balances and access lo additional liquidity should be maintained at a level equivalenl to belween three and six month's expendilure and significant management allenlion is given lo forecasting and monitoring cash levels for this purpose. The Govemors consider that maintaining cash reserves at this level will ensure that, in the event of a significant drop in cash generation from operations, they will be able to continue the School's current activilies while consideration is given to ways in which additional funds may be raised or costs further reduced. This level of cash reserves has been maintained Ihroughout the year. Auditor In accordance with the Company's articles. a resolution proposing th81 Azets Audit SeNices be reappointed as auditor of the Company will be put al a General Meeting. Disclosure of informalion lo auditor Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirned that they have taken approprialè steps lo identify such relevant information and to establish that the auditor is aware of such information. Tho Trustees. report was approved by the Board of Trustees. Mrs Tara Leaver (Chair)
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2024 The Trustees. who are also the Directors of The Godstowe Preparatory School Company Limited for Ihe purpose of company law, are responsible for preparing the Trustees, Report and the fi'nancial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepled Accounting Practice). Company law requires the Trustees lo prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Company and of the incoming resources and applicalion of resources, including the income and expenditure, of Ihe Company for thal year. In preparing Ihese financial statements, the Trustees are required lo-. select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charities SORP-, make judgements and estimales that are reasonable and prudent., and prepare the financial statements on the going concem basis unless it is inappropriate to presume that the Company will continue in operation. The Trustees are responsible for keeping adequate accounting records Ihat disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with thè Companies Act 2006. Th&y are a150 responsible for safeguarding the assets of Ihe Company and hen for taking reasonable steps for the prevention and detection of fraud and other Irregularities.
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2024 Unrestricled Restricted funds funds 2024 2024 Total Unrestricted Restricted funds funds 2023 2023 Total 2024 2023 Notes ncome fro Donations and legacies Charitable activities Investments 7.145 7,145 8,236,893 103,253 29.802 29,802 8.143,877 36,339 8,236,893 103,253 8,143,877 36,339 Total income 8,340,146 7,145 8.347,291 8,180,216 29.802 8,210,018 enditur Charitable activities on: 8,682,585 27,781 8.710.346 8.163.617 32.098 8,195,715 Net {expendlture)Iln¢ome for the yearl Nel movement in funds {342,439) (20,6161 (363,055) 16,599 12.2961 14,303 Fund balances at 1 September 2023 9,516,820 703,132 10,219,952 9,500,221 705,428 10.205,649 Fund balances at 31 August 2024 9,174,381 682,516 9.856,897 9,516.820 703.132 10.219,952 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account underthe Companies Act 2006.
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED BALANCE SHEET ASAT31 AUGUST 2024 2024 2023 Notes Fixed assets Tangible assets Investments 10 11 9,627,700 10.114,150 9,627,704 10.114,154 Current assets Debtors Cash at bank and in hand 12 1,789,538 4,336,986 1,884,863 3,650.226 6,126,524 5.535.089 Creditors: amounts falllng due wlthln one year 13 (4,562,748) (3,902,642) Net current assets 1,563,776 1,632.447 Total assets less current liabllilias 11.191,480 11.746,601 Creditors: amounts falling due after more than one year 14 (1,334,583) (1.526,6491 Net assets 9.856.897 10,219.952 Income funds Reslricled funds Unrestricted funds.. General unrestricted funds Share capital 18 682,516 703.132 9,174.366 15 9,516,805 15 9,174.381 9.516,820 9.856,897 10.219,952 The financial slalements were approved by the Trustees on . Mrs Tara Leaver {Chairl Trustee Company registration number 00068471 13-
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2024 2024 2023 Notes Cash flows from operating actlvities Cash generated from operations 21 727.235 931,035 Investlng activities Purchase of tangible fixed assets Investment income received (137.447) 103,253 (241,6071 36.339 Net cash used In Investlng actlvltles (34,194) {205,268) Flnan¢lng actlvltles Repayment of bank loans Deposits 157.642) 51,361 {86,110) 111,551 Net cash (used In)Ig8n8rated from flnanclng activities (6,281) 45,441 Net Increase In cash and cash equlvalenls 686,760 771,208 Cash and cash equivalents al beginning of year 3.650,226 2,879,018 Cash and ¢ash equlvalents at end of year 4.336.986 3.650.226 14-
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies Company information The Godstowe Preparatory School Company Limited is a private company limited by shares incorporated in England and Wales. The regislered office is Godstowe Preparatory SchDoI, Shrubbery Road. High Wycombe, Buckinghamshire, HP13 6PR, United Kingdom. 1.1 Accounting convention The financial statements have been prepared in accordance with the Company's governing document, the Companies A¢t 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" {"FRS 102,1 and the Charities SORP "Accounting and Reporting by Charilies- Statement ol Recommended Practice applicable to charilies preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102)" (effe¢tive 1 January 20191. The Company is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the fijnctional currency of Ihe Company. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention with the exception of investments which are included al market value. The principal accounling policies adopted are set out below. 1.2 Golng concern Al the time of approving the financial stalements, the Trustees have a reasonable expectation thal the Company has adequate resources to continue in operational existence for the fOseeable future. Thus the Trustees continue to adopt the going concem basis of accounting in preparing the financial statements. 1.3 Charilable funds Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objeclives. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restriGled funds are set out in the notes to the financial stalements. 1.4 Income Income is recognised when Ihe Company is legally entitl8d lo it after any performance condilions have been met, the amounts can be measured reliably, and it is probable thal income will be received. Cash donations are recognised on receipl. Other donations are recognised once the Company has been notified of the donation. unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the Company has been notified of an impending distribution. the amount is known. and receipt 15 expected. If the amounl is nol known, the legacy is treated as a contingent asset. 1.5 Expendlture Liabilities are recognised as expenditure as soon as Ihere is a legal or constructive obligalion committing the Company to that expenditure. il is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. 15-
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Accounting pollcies (Continued) 1.6 Tanglble flxed assets Tangible fixed assals are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses. Depreciation is provided on all fixed assets other than freehold land and is recognised so as to write off the cost of the fixed assets less their residual values on a straight line basis using the following estimated useful econornic lives.. Freehold land and buildlngs Fixtures and fittings Motor vehicles 10-50 years 5- 33 years 5 years The gain or loss arising on the disposal of an asset is detemiined as Ihe difference between the sale proceeds and the carrying value of the asset, and is recognised in the slatement of financial activilies. 1.7 Fixed asset Investments Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value al each reporting date. Changes in fair value are recognised in nel incomellexpenditure) for the year. Transaction costs are expensed as incurred. 1.8 Impairment of fixed assets At each reporting end date. the Company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indulion exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairmenl loss (if any). 1.9 Cash and cash equlvalents Cash and cash equivalents inolude cash in hand. deposits held at call with banks, other short-lerm liquid investments with original malurilies of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.10 Financial instruments The Company has elected to apply the provisions of Section 11 'Basic Financial Instruments. and Section 12 'Olher Financial Instruments Issues. of FRS 102 to all of its financial instruments. Financial instruments arè recognised in the Company's balance sheet when the Company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable righl lo set off Ihe recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liabilily simultaneously. Baslc financial assets Basic financial assets. which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried al amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured al Ihe present value of the future receipts discounted at a market rale of interest. Financial assels classifieij as receivable wilhin one year are not amortised. 16-
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies (Continued) Basic financial liabilities Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measLsred al the present value of the future payments discounted at a market rate of inlerest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at arnortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordInY course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presentéd as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Derecognltion of flnan¢lal liabilities Financial liabilities are decOgnIsed when the Company's contractual obligalions expire or are discharg9d or ancelled. 1.11 Employee benefits The cost of any unused holiday entitlement is recognised in Ihe period in which the employee's seNlces are received. Termination benefits are CogniSed imrnedialely as an expense when the Company is demonstrably committed to terminale the employment of an employee or to provide termination benefits. 1.12 Retirement boneflts Payments to defined contribution retirement benefil schemes are charged as an expense as they fall due. In the prior year the Company also contributed to the Teachers. Pension Scheme at rates Sel by the Scheme Actuary and advised lo the Company by the Scheme Administralor. The scheme is a multi-employer pension scheme. and it is not possible to identify the assels and liabilities of the scheme which are attrilxjlable lo the Company. In accordance with FRS 102 therefore, the scheme is accounted for as a defined contribution scheme. The company withdrew from the Teachers. Pension Scheme on 31 March 2023. Critical accounting estimates and Judgements In the application of the Company's accounting policies, the Trustees are required to make judgements. estimates and assumptions about the carying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevanl. Actual resulls may differ from these eslimates. The estimate5 and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting esl(males are recognised in the period in which the estimate is revised where the revision affects lY that period, or in the period of the revision and future periods where Ihe revision affects both current and future periods. 17
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Donations and legacie5 Restricted Restricted funds funds 2024 2023 Donalions and gifts 7,145 29.802 Charltable activities Charitable Charitable Income Income 2024 2023 Fees receivable from tuition and boarding Charitable rental income 8,135,485 8,068,936 101,408 74,941 8,236,893 8,143.877 Investments Unrestricted Unrestri¢t&d funds funds 2024 2023 Deposit account interest 103,253 36.339 18-
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Charitable activities Charitable Charitable Expenditure Expenditure 2024 2023 start costs Depreciation and impairment Teaching costs Support service costs Management and admin costs Bank charges and interest Bad debt expense 5,323,555 4.862,387 623.897 683,849 336,698 326,809 1,798,031 1,79g,750 548,573 440,366 68,910 51.398 10,682 31,156 8,710,346 8,195,715 Analysis by fund Unrestricted funds Restricted funds 8,682,585 8,163,617 27,761 32,098 8,710,346 8,195,715 Employees The average monthly number of employees during the year was: 2024 Number 2023 Number Teachers - Full time Teachers - Part lim8 Admin - Full time Admin - Part time 41 14 45 28 40 12 49 26 Total 128 127 Employment costs 2024 2023 Wages and salaries Social security costs Other pension cosls 4.394.867 386.679 542.009 3,929.637 367,711 565,039 5,323,555 4.862,387 Included within the above costs are redundancy payments amounting to £109.066 which were paid as part of the staff restructuring during the year. 19-
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Employees (Continued) The number of employees whose annual remuneration was more than £60,000 is as follows: 2024 Number 2023 Number £60,001- £70.000 £70.001- £80,000 £80,001- £90.000 £100,001- £110,000 £110,001- £120.000 Trustees and key management personnel No Trustees received remuneration or other benefils paid for by the Company for the year ended 31 August 2024 nor for Ihe year ended 31 August 2023. During the year Ihere were no trustee expenses paid in relation to travel and subsistence nor for the year ended 31 August 2023. Remunèration of key management personnel The remuneration of key management personnel is as follows.. 2024 2023 Aggregate comp&nsation 647,374 618,163 Taxatlon The Company is exempt from tax on income and gains falling withln seclion 505 of the Taxes Act 1988 or section 252 of the Taxalion of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. 20-
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 10 Tangible fixed a55ets Freehold land Fixtures and and buildings fittings Motor vehiclès Total Cost Al 1 September 2023 Additions Disposals 12.986.325 4.556,953 66,770 51.927 30.711 18.750 14,0001 17.573,989 137,447 (4,000) At 31 August 2024 13.053,095 4.608,880 45,461 17,707.436 Depreciation and impairment Al 1 September 2023 Depreciation charged in the year Eliminated in respect of disposals 4,749,773 2,679,355 397,282 224,115 30,711 2,500 {4,000) 7.459,839 623.897 (4,000) Al 31 August 2024 5,147.055 2.903.470 29.211 8.079,736 Carrylng amount At 31 August 2024 7,906,040 1,705,410 16,250 9,627,700 Al 31 August 2023 8,236,552 1,877.598 10.114.150 During the year ended 31st Augusl 2022. the Company entered into a contract with its Caterers for the provision of catering services for a temi of seven years. As part of this agreement. the caterers assisted in the refurbishment of the School's kitchen and dining facililies by funding a proportion of the refurbishment cost and providing a loan on favourable tems for thè remainder. Under the terms of the agreement. the benefit of the funding accrues evenly over the tem of the contract and the loan is repayable over the same period. The cost of the refurbishment has been capitalised and is being depreciated over its estimated useful lrfe in accordance with the Company's depreciation policy. At the end of the year, the outstanding balance of the loan and the unamortised amount of the funding benefit are included under Bank and other loans and Deferred income respectively, within creditors. 11 Fixed asset Investments Olher Investments Cost or valuation At 1 September 2023 & 31 August 2024 Carrying amount Al 31 August 2024 At 31 August 2023 Fixed asset investments at the balance sheet date mmpri5e the entire ordinary share capital of the Company's two UK regislered dormant subsidiaries. High Wycornbe Music Activilies Limited and Godslowe Developments Limited. 21
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 12 Debtors 2024 2023 Amounts falling due wlthln one year: Trade debtors Other deblors Prepayments and accrued income 1.514.270 41,494 233,774 1,685,584 4.747 194.532 1,789,538 1,884.863 13 Creditors.. amounts falllng due wlthln one year 2024 2023 Notes Bank and other loans Other taxatlon and social security Deferred income Trade cr8ditors Fees rec8ived In advanc8 Deposils Other creditors Accruals 16 69,892 111,347 2,365.718 133,207 1,450,727 217,722 148.990 65,145 69,016 91,512 2,666,474 54,301 668.691 60.500 197.544 94,604 15 4,562,748 3,902.642 14 Credltors: amounts falllng dup after more than one year 2024 2023 Notes Bank loans and other loans Def9rr6d income Deposits 16 15 785,044 83,059 466,480 843.562 110.746 572,341 1.334,583 1.526,649 -22-
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 15 Deferred income Deferred income is included in the financial statements as follows-. 2024 2023 Deferred income is included wilhin.. Currenl liabilities Non-current liabilitie5 2,365.718 83.059 2,666,474 110,746 2.448.777 2.777.220 Movements in the year= Deferred income at 1 September 2023 Released from previous periods Resources dèfèrred in the year 2.777.220 2,795.513 12.666.474) {2.657,0811 2,338,031 2,638,788 Deferred income at 31 August 2024 2,448,777 2.777.220 Deferred income represents invoices issued before the year end for school fees in the following year and Ihe unamortised funding benefit arising from the Company's calerin9 contract {see Note 10). -23-
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 16 Loans and deposits 2024 2023 Bank and other loans - due in 1 year Bank and other loans- 1-2 years Bank and other loans- 2-5 years Bank and other loans - over 5 years 69.892 70,785 192.260 521.999 69.016 69.892 215,108 558,562 854.936 912.578 Deposits - due in 1 year Deposits - 1-2 years Deposits - 2-5 years Deposits - over 5 years 217.722 154.050 192.250 120.180 60.500 166.073 229.253 177,015 684,202 632,841 Bank and other loans Deposits 854,936 684.202 912,578 632.841 1.539,138 1,545,419 Payable within one year Payable after one year 287,614 1.251,524 129,516 1,415,903 1.539.138 1,545.419 Secured debts On 8 August 2018. the Company entered into 8 20 year term loan with National Westminster Bank PIC which is secured by a charge on certain freehold land and buildings. Al 31 August 2024. £752,388 was still oulslanding on this loan12023'. £784,393). 17 Share ¢apltal 2024 2023 Ordinary share capital Issued and fully paid 15 Ordinary B of £1 each 15 15 24-
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 18 Restricted funds The income funds of the Company include restricted funds comprising the following balances of donations and grants held on trust for specific purposes.. Movement in funds Incomlng Resources resoUeS expended I d•preeiation charged Balance at 1 September 2023 Transf•rs Balance at 31 August 2024 Fixed assets funded from donations Donations 700,245 2,887 {27.7611 5.145 {5,1451 677.629 4,887 7,145 703,132 7,145 127,7611 682.516 Movement in funds Incoming R•sour¢•s resourcès fjxpènded I depreciation Balanc• al I September 2022 Tran$f•rs 8alan¢• at 1 September 2023 Fixed assets funded from donations Donations 699,925 5,503 {29.7951 {2,303) 30,115 {30,115) 700.245 2,887 29.802 705.428 29,802 {32,098} 703,132 19 Analysis of net assets between funds Unrestricted Restrl¢t•d funds funds 2024 2024 Total Unrestri¢ted Restrlcted funds funds 2023 2023 Total 2024 2023 Funiy balances at 31 August 2024 are represented by- Tangible assets Investments Currenl asselsllliabilities) Long term liabilities 8,950.071 677,629 9,627,700 9.413,905 700,245 10,114,150 1.558.889 11,334,583) 4.887 1.563.776 1,629,560 (1,334,583) 11,526,649) 2.887 1,632.447 (1,526,649) 9.174.381 682.516 9,856.897 9.516.820 703,132 10.219,952 25-
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 20 Operating lease commitments Al the reporting end dale the Company had oulslanding commitments for future minimum lease payments under non-cancellable operating leases. which fall due as follows.. 2024 2023 INithin one year Between two and five years 19.597 43,076 23.951 23.064 62,673 47,015 21 Cash generated from operations 2024 2023 {Deficit}Isurpus for the year (363.0551 14,303 Adjuslmenls for.. Inveslment incorne recognised in statement of financial activities Other income Deprecialion and impairment of tangible fixed assets {103,253) <27,6861 623,897 {36.3391 (27.686) 683,849 Movements in working capital.. Decreasel(increasel in debtors Increase in creditors 95,325 502.007 (48,8341 345.742 Cash generated from operations 727,235 931,035 22 Analysis of changes in net funds At 1 September 2023 C45h flows At 31 August 2024 Cash at bank and in hand 3.650,226 686.760 4,336.986 Bank and other loans {912,5781 57,642 {854,9361 2,737.648 744.402 3,482.050 23 Related party transactlons There were no related party transath.ons during Ihe current year {2023-. None). -26-
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 24 Pension commitments With effect from l April 2023, the Company conlribules to a defined contribution scheme for Ihe benefit of all its eligible and opted-in staff. run by The Royal London Mutual Insurance Society Limited I'Royal London"). Previously the Company participated in the Teachers, Pension Scheme {"TPS"I for its teaching slaff and contributed lo the National Employment Savings Trust I"NEST°l in respect of ils eligiblle and opted-in non- teaching slaff. The assets of all three schemes are held seperalely from those of the Company in indepèndently administered funds. The pension cost charge for Ihe current year represents contributions payable by the Company to Royal London amounting to £542,009 {2023.' £565.039, Royal London. TPS and NEST). At the year-end £77.440 was accrued in respect of contributions to Royal London12023: £63,815). 27-
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED Opinion We have audited the financial statements of The Godslowe Preparatory School Company Limited (the Eompany,) for the year ended 31 August 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial slatemenls, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland {Uniled Kingdom Generally Accepted Accounting Praclice). In our opinion, the financial stalemenls: give a true and fair view of the state of the CoMpanS affairs as at 31 August 2024 and of its incoming resources and application of resources. including its income and expenditure. for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practlo; and have been prepared in accordance wilh Ihe requirements of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance with International Standards on Auditing {UK) (ISAS (UK)) and applifjable law. Our responsibilities under those standards are further described in the Audilors responsibilities for the audit ol the financial statements seclion of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Slandard, and we have fulfilled our other ethical responsibilities in a¢cordance with these requirements. We believe that the audil evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relating to golng concern In auditing the financial statements, we have concluded that the Trustees, use of the going ¢oncem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed. we have not identified any material uncertaintie5 relating to events or conditions that. individually or collectively. may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve monlhs from when the financial statemenls are authcrised for issue. Our Tesponsibililies and the responsibilities of the Trustees with respect to going con¢em are described in the relevant sections of this report. Other infonnation The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Truslees are responsible for the other information contained within the annual report. Our opinion on the financial statemenls does not cover the other information and, except to the extent otherwse explicitly slated in our report, we do not express any fomi of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistenl with the financial statements or our knowledge oblained in the course of the audit, or otheise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstalemenls. we are required to determine whether this gives rise to a material misstatemenl in the financial statements themselves. If, based on the work we have performed. we conclude that there is a matertal misstatemenl of this other information. we are required to report that fact. W8 have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of our audit.. the infonnation given in the Trustees. report for Ihe financial year for which the financial statements are prepared. which includes the Directors. report prepared for the purposes of company law. is consistent with the financial statements., and the directors, report included within the Trustees, report has been prepared in accordance with applicable legal requirements.
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED Matters on which we are required to report by exception In the light of the knowledge and underslanding of the Company and its environment obtained in the course of the audit, we have not identified material misstslement$ in the Directors, report included wilhin the Trustees. report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if. in our opinion.. adequate accounting records have not been kept, or retums adequate for our audit have not been received from branches not visited by us,. or the financial ststemenls are not in agreement wth the accounting records and returns; or certain disclosures of Trustees, remuneration speGified by law are not made,. or we have not received all the informalion and explanations we require for our audit; or the Trustees were not entilled to prepare the financial statements in accordance with Ihe small companies regime and take advantage of the small companies. exemptions in preparing Ihe Trustees, report and from the requirement to prepare a strategic report. Responsibilities of Trustees As explained more fully in the statement of Trustees, responsibililies, the Trustees. who are also the Directors of the Company for the purpose of company law, are responsible for the preparation of the financial statemenls and for being satisfied that they give a true and fair view, and for such intemal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whelher due to fraud or error. In preparing the financial statemenls, the Trustees are responsible for assessing the Company's abilily to continue as a going Concern, disclosing. as applicable, matters related to going concern and using the going concem basis of accounting unless the Trustees either intend to liquidale the Company or to cease operations, or have no realistic alternative but to do so. Audltor's responsibillties for the audit of the financial statements Our objectives are lo oblain reasonable assurance about whether the financial statements as a whole a free from material misstalemenl. 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 guaranlee that an audit conducted in accordance with ISAS {UK} will always detect a materlal misstatement when it exists. Misslatemenls can arise from fraud or error and are considere(J material if, individually or in the aggregale, they could reasonably be expected to inftuence Ihe economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities is available on the Financial Reporting Council's website at- https:11 www.frc.org.uklauditorsresponsibililies. This description forms part of our auditors report. 10
THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF THE GODSTOWE PREPARATORY SCHOOL COMPANY LIMITED Extent to which the audit was considered capable of detecting irregularities. including fraud Irregularities, including fraud. are insiances of non-compliance with laws and regulations. We design procedures in line with our responsibilities. outlined above and on Ihe Financial Reporting Council's website, to delect material misstatements in respect of irregularities, including fraud. We obtain and update our understanding of the entity, its activilies, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding. we identify and assess the risks of material misstatement of the rinancial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficienl and appropriate to provide a basis for our opinion. This includes consideralion of the risk of acts by the entity that were contrary to applicable laws and regulations. including fraud. In response to the risk of irregularities and non-compliance with laws and regulalions, including fraud. we designed procedures which Included: Enquiry of management and those charged wllh governance around actual and potential liligatlon and claims as well as actual, suspected and alleged fraud., Reviewing minutes of meetings of those charged with govemance.. Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial stalemenls or the operations of Ihe entity through enquiry and inspection. Reviewing financial statemenl disclosures and testing to supporting documentation to assess compliance wilh applicable laws and regulations- Perfonming audit work over the risk of management bias and override of controls, including testing of journal entries and other adjuslments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. Because of the inherent limitations of an audit. there is a risk Ihat we will not detect all irregularities. including those leading to a material missiatemenl in the financial statements or non-compliance with regulation. This risk increases the more that compliance wilh a law or regulation is removed from the events and trans8clions reflected in the financial statements. as we will be less likely to become aware of instances of noTrcompliance. The risk ol not detecting a material misstatement resulting from fraud is higher than for one resulling from 8rror, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Use of our report This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we rnighl stale to the Company's members those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility lo anyone other than the Company and the Company's members as a body, for our audit work, for this report. or for the opinions we have formed. Tracey Richardson Bsc {Hons) FCA (Senior Statutory Auditor) for and on behalf of Azets Audit Services Chartered Accountants Statutory Auditor Westpoint Lynch Wood Peterborough Cambridgeshire United Kingdom PE2 6FZ 11