Felsted FELSTED SCHOOL ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2024 TOGETHER WITH TRUSTEE'S AND AUDITOR'S REPORTS Registered Charity Number: 310870 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF FELSTED SCHOOL TRUSTEE DIRECTORS Felsted School Trustee Limited The Directors of the Trustee Company who serxed during the year or were subsequently appointed are listed below. (h) (e} (n) Ig) J Abel Smith, DL M Beale . (Appointed as Chair on 1 September 2024) From *091 From G P Boult Chair R I C Brown - Chair (Resigned from Chair on 1 September 2024) To To OV091 C A ca￿ingtOn {Resigned 4 July 2024) J Crouch J H Dames. OBE Dr J C Nicholson From 0910 ALMOxnam Prof. L Poston, CBE From9102124 From 14106120 Z Rantell" (Appointed 16 N0￿mber 2024) A Sefton O H J Stocken CBE Rev N J Stuchfield W Sunnucks (resigned 30161231 J B St J Tibbitts (resigned 3016123) PE Wardell From L Wells (Appointed 16 N0￿mber 2024) J Windsor Char S Wolfe . {hl Thre￿r of the House and Finance Cornittee {el I￿rrI)er of the Education ConYYittee {nl hl£nber of the Norrinations Cotnrittee Igl ￿e￿kner of the Governance Corrrriitee Parent of currenl pupil Page 2 of 38 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF FELSTED SCHOOL OFFICERS HEAD C J Townsend, BA HEAD OF PREPARAI'ORY SCHOOL M Norris, BEd, BURSAR AND CLERFI TO TRUSTEE BOARD1 (To 31 August 2024) A G Clayton BA, MBA CHIEF FINANCIAL OF."FICER (From 2 September 2024) Jonathan Atkins, FCA CLERK TO THE TRU<4iTEE BOARD (From 1 September 2024} Rachel Earle, BA Address and Registeired Office Felsted School Felsted Essex CM6 3LL www.felsted.or Website ADVISERS BANKERS Barclays Bank PIC Abacus House, Castle Park, Castle Hill Cambridge CB3 OAN AUDITORS Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW SOLICITORS Stone King LLP 16 St John's Lane London EC1 M 4BS As part of an organisational reStW¢tU￿, the role of School Bursar ￿aSed lo exi51 on 31 August 2024 and a CFO was appointed. As part of these Changes, the Compliance Manager was appointed Clerk lo the Board. Page 3 of 38 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF FELSTED SCHOOL The Trustee of Felsted School presents its annual report together with the audited accounts for the year ended 31 August 2024 and confirms that they comply with the requirements of the Charities ilct 2011, the trust deed and the Charities SORP {FRS 102) applicable to Charities preparing their accounts in Gccordance with FRS102 the Financial Reporting Standard applicable in the UK and Republic of Ireland. REFERENCE AND ADMINISTRATION INFORMATION The Charity was founded in 1564 and is registered with the Charity Commission unijer charity number 310870. The Directors of Felsted School Trustee Ltd, Felsted School's single Trustee, and the Executive officers and principal addresses of the Charity are as listed on the previous page as are particulars of the Charity's professional advisers. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing Document The Charity is governed by its Scheme dating from 1938 and last amended in Octcber 2018. Governing Body The structure of the Charity consists of a Board of Directors of the Trustee Company that oversees the management of the Charity, a school, which has two principal elements, a Senior School for pupils aged 13-18 and a Preparatory School for pupils aged 4-13. Recruitment and Training of Trustee Directors The Trustee Company Directors are voted onto the Board by the current Boai-d members. The Nominations Committee comprises five current Directors and is responsible for recommendin(3 new Board members, as and when necessary. The Nominations Committee when selecting possible new Directcirs considers eligibility, personal competence, specialist skills and local availability. New Directors are inducted into the Trustee Company and the Schools (including Eioard policy and procedures} by current Directors and the School Executive. Organisational Management The Trustee Company Directors are legally responsible for the overall managemerit and control of the School and meet at least three times a year. The members of the House & Finance (H&F) Committee meet about a month befor3 each meeting of the full Board and on extra occasions as required. This Committee specifically looks at the budciet and accounts for the current year, short and medium term forecasts and at infrastructure investment plans ard makes recommendations for approval by the Board. The other committees are the Education Committee, the Governance Committee and the Nominations Committee. The Education and Governance Committees meet each term before the main Board meeting and the Nominations Committee meets once a year to discuss standing items and at other times a< required. The Heads and the BursarlCFO attend meetings of the above Committees. The day to day running of the Schools is delegated to the Head who, together with the Head of the Preparatory School, the Chief Financial Officer, the Senior Deputy Head and the Deputy HE,.ad (Academic} act as the Key Management Personnel. They are supported by their Senior Leadership Teams. Df:livery of the School's charitable vision and purpose is primarily dependent on the Key Management Personnel. Page 4 of 38 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF FELSTED SCHOOL Organisational Managemijnt The Board set the remuner.ation of the Heads, Senior Deputy Head, CFO (formerly the Bursar) and any other roles appointed by the Board, viith the policy objective of rewarding them fairly and responsibly for their individual contributions to the School's success. The Board delegates the annual review of remuneration of key personnel to the Nominations Committee, which refers to benchmarking information for other similar schools (including that currently compiled by AGBISI, the individual's performance in the previous year, and cost of living awards to other stsff. The remuneration Pcckage when a new key member of staff is appointed is similarly benchmarked, and appointments are made following a competitive process, taking appropriate external professional advice. The aim is to recruit, subject to experience, below or at the medium point within a band (for teaching staffj, providing scope for rewarding excellen￿. Structure and Relationships A subsidiary company, Fel:.ted Global Education Limited was incorporated on 21 August 2006 and has remained dormant throughout the ye¢lr. Risk Management The Trustee Company is responsible for the management of the risks faced by the School. Detailed considerations of risk have been delegated to the Committees, assisted by the Key Management Personnel (also known as the Executive Team). Risks are identified, assessed and controls established throughout the year. A formal review of the charity's risk managempnt processes is undertaken on an annual basis, as part of that review other committees of the Board review risks ai)propriate to their areas of oversight. Through the annual review of the risk register, the Trustee considers the key risks facing the School and agrees appropriate mitigation. The principal risks the School faces are considered to be= Ongoing parerital affordability remains a high priority particularly in the current circumstances with relatively high interest rates, increasing costs of employing staff and the imposition of VAT to Independent ￿￿￿chool Fees with effect from 1 January 2025. The school is undertaking regular communication with parents and will consider carefully 202516 fees, in due course. Inability to reciuit staff of the right calibre. Whilst the recruitment market is challenging, the School continues to recruit, retain and develop excellent staff. A focus on supporting early career teachers, providing SUPPi)rt for career paths, personal development and staff welfare and safety help ensure the school remain¢ competitive. Inadequate inv-stment in facilities. The aims and ethos of the School require continuing investment in facilities including ICT for teaching and learning, pastoral care and boarding, sports, drama and other activities. Failure to generate adequate annual surplus for reinvestment would compromise this. The Board sets asiije investment in each annual budget and the Development team are tasked with fund raising to suppijrt specific capital projects, as and when appropriate. Failure to comi)ly with relevant regulations. The School is subject to regulation by a number of bodies, particularly in ri:lation to safeguarding, child protection and health and safety. The School appoints and trains stsff appropriately, and takes the necessary specialist advice to ensure compliance. The key controls used by the charity include= Formal agendas for all Committee and Board activity., Detailed terms of reference for all Committees that are reviewed regularly., Comprehensive strategic planning, budgeting and management accounting", Established organisational structure and lines of reporting., Formal written policies., Regul¢r training of all staff., Safeguarding procedures as required by law and best practice for the protection of the vulnercible. Page 5 of 38 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF FELSTED SCHOOL A detailed Risk Register reviewed annually by the relevant sub_committees with key risks reported to and discussed by the Board Through the risk management pro￿sseS established for the School, the Trustee is satisfied that the major risks identified have been appropriately mitigated where necessary. It is recognised that systems can only provide reasonable and not absolute assurance that major risks have been managed. The -ompliance Manager continues to support the Trustee Board and the Executive Team in the management of risk, policy review and best practice, with a particular emphasis on safeguarding and regulatory compliance. The Trus1.ee Board regularly reviews the effectiveness of current plans and strategies for managing all identified risks for thE,. School. Charity Code of Governance The Trustee remains aware of the Charity Governance Code pub5ished in 2017 {UFidated in 2020} which sets out the principles and recommended practice for good governance within the sector. Tie Trustee is satisfied that the Charity applies the principles of the code within its current Governance arrangemeiits which includes the use of a Governor Compliance Checklist recommended by the Association of Governing Bc,dies of Independent Schools (AGBIS}. OBJECTS. AIMS, OBJECTIVES AND ACTIVITIES Charitable Objects The Charity's Objects, as set out in its Scheme, are the advancement of educatiori specifically but not exclusively by.. {1) the provision and maintenance of a secondary school ('the School,) ior boys and girls-, (2) the provision and rna1ntenan￿, if the Trustee thinks fit, of a nursery, pre-school, pre-preparatory and preparatory departments within the School., and {3) the conduct in connection with the School of such ancillary or incideiital educational activities and other associated activities for the benefit of the community as the TriJstee thinks fit. Aims of the School Felsted seeks to be the school of choice and aspiration for all. 'Developing charactE.'r and making a difference" The school has developed seven foundations of a Felsted Education. These are as foll()ws'. Academic Aspiration. The academic curriculum at Felsted is high-quality and expertly taught, but what sets it apart is its capacity to excite and intrigue our students. 2. Community. Community is at the heart of Felsted and, whether boarding c)r day, every pupil benefits from the 24-hour, seven days-a-week, award winning boarding culture. This ccmmunity includes our students, as well as parents, staff, Trustee Directors, Old Felstedians and the wider l=elsted community. 3. Wellbeing. Felsted is focussed on understanding and developing all .aspects of the individual, with academic and pastoral staff working together to support every young pers(In in its care. 4. Sporting Excellence. Felsted has a strong tradition of sporting excellence. Over the decades, many professional athletes have been introduced to their sporting disciplines whil>t at our school and, in common with pupils of all ages and abilities, have benefited from the expert coachiig and high-quality facilities we offer. 5. Enrichment. Felsted's extensive co-curricular extends our pupils academic learning and challenges them to test their limits. 6. Globalism. The School's approach to education means that we guide ou- pupils towards developing the attributes, characteristics and principles that will stand them in good stead for life in the future world. Page 6 of 38 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF FELSTED SCHOOL 7. Neuroinclusive. It is the Schools vision that Felsted is recognised as a mainstream school with outstanding inclusive provision for neurodiversity- Felsted celebrates the unique way in which each child learns and is on hand to support and develop pupils with or without a previous diagnosis. These seven foundations are underpinned by the School's commitment to attract, develop and retain the very best staff and in return they ar,) supported in their development and their careers in a diverse, inclusive and non- discriminator environment. Public Benefit Aims and Intended Impact Within its Objects, Felsted %ichool's public benefit aim is to provide a first-class independent education for children aged from 4 to 18, both thrcjugh strong academic tuition and through developing wider sporting, artistic and social skills in all its pupils. This is intended to provide an environment where each pupil can develop and fulfil his or her potential, thus helping to biiild self-confidence and inculcate a desire to contribute to the wider community. All of this is integral to the School's delivery of a holistic education. The Trustee has given due consideration to the Charity Commission's guidance on public benefit and undertaken appropriate activities in furtlierance of the School's aims for the public benefit. The year's objectives, activities and achievements are set out below. Felsted School Public Benefit Review Felsted School has always been mindful of its role in public service and both the School and individual staff and pupils have a long history ()f supporting charitable and educational causes with both financial help and practical assistance. The Trustee Bi)ard is committed to widening access for potential pupils to include those who cannot afford the School's fees and consider it important that those experiencing poverty should not be excluded from the opportunity to receive the educational support that the School can provide. The School also provides opportunities for the local cind wider community to use the educational and ancillary facilities the School has to offer. The School is engaced in sharing the educational expertise of staff with others outside the School and developing the involvemenl of pupils in charitable activities for the wider benefit of the public. In order to monitor and supi)ort the development of the School's practice in these areas a review is carried out each year. The Curriculum The School sets high acad,:mic standards and educates pupils to the highest levels of achievement. In 2024, the School's public examinatioii results were as follows.. 93.8 % of our GCS= results were be￿een 9 and 4 {2023: 92.67% ) with 61.55 % being be￿een 9 and 6 (2023= 60.330/0). 81.7 % (2023.. 84.2C/o) of A-level grades were between A. and C. The average IB points score in 2024 was 34.3 (2023: 36.3). The education of pupils enc-ompasses all aspects of their personal development and promotes their contribution to society in adult life. The school's educational elhos is focused on providing a holistic education and values the importance of Art, Music, DT, Drama and Sport. Therefore, the school invests in staff and facilities to ensure that their provision (both in terms of tuition and resources) enables pupils to excel in these areas. Means-Tested AssistancE'. The Trustee Board considers that bursaries are important in ensuring that children from families who would otherwise not be able to aff()rd the fees can access the education offered. Bursary awards are available to children Page 7 of 38 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF FELSTED SCHOOL who meet the general entry requirements and are made on the basis of parental means or to relieve hardship where an existing pupil's education and future prospects would be at risk, for examiile in the case of bereavement or redundancy. In assessing means the School takes a number of factors into onsideration including family income, investments and savings and family circumstances. However, the Schoc,I does not have a large cash endowment and in funding bursaries the School has to be mindful of ensuring ¢ balance between fee-paying parents, many of whom make considerable personal sacrifices to fully fund their cliildren's education, and those benefiting from the awards. A number of bursaries are also supported by donaticins received for that purpose. Bursaries are available for up to 100 % of fees and can also provide assistance wilh extra costs for those whose financial need is greatest. They are advertised in the press and on social media and further details of the bursary policy and how to apply are provided on the School website. Bursaries are subject to annual review so that the School can ensure that support is only provided to those who require it. In total, the School provides fee assistance to over 278 pupils (approximately ":9 % of the total) at a cost of £3,160,895 per annum-, 11 % of our gross fee income. In 2023124 the School provided means tested bursary assistance to 54 pupils to the value of £1,230,514., 4.2 /0 of gross fee income. FifteE!n pupils received bursaries of 100 % or thereabouts. The school's policy, in line with that of other Independent ScFiools, is to award scholarships on the basis of the individual's educational potential, subject to any particular conclitions imposed by the original donor where the award is out of restricted funds. The majority of awards in bursari(!s and allowances were made from unrestricted funds. Links with Other Schools The School aims to widen access through a variety of initiatives and activities. Partnerships are being grown and developed with local primary schools and with the Royal Docks Community Sch()ol in Newham, London E16, a mixed comprehensive school for ages 11 to 16. Partnerships In addition to the links with other Schools, Felsted is committed to building links Miith partners who can improve the education of children and offer an extended pathway. Current partnerships incliJde Junior Guildhall School of Music Royal National Children's Spring Board Foundation Blue Hornets Hockey sara￿ns Mavericks Netball Club Essex Cricket Lord's Taverners Further details of the individual artnershi s can be found on the Inde htt s".Ilwww.schoolsto ether.or Icase-studiesl?schoolld=36819 endi)nt Schools Council website Charitable Giving and Fund-raising The School Charity Team develops a programme of events and ideas to encouragi3 Felstedians to grow as global citizens and encourage philanthropy. The Charity Team seeks to raise awareness, encourage volunteerism and organise fundraising events that will make a difference both for those we support and for the school. The School is committed to building partnerships with our eight core charities= 1. Sparkle Foundation Founded by Old Felstedian Sarah Brook, the foundation provides education, riutritional support and medical treatment to over 150 vulnerable orphans in Malawi. Felsted pupils have raised a large sum for this fantastic charity over the past few years through numerous events across the School, including ar annual Rugby 7's event which involves former pupils and parents. This has allowed the charity to invest in a fresh water borehole and pump, cleaning facilities, classrooms plus a vital vehicle for supplies and emergency tr£atment. A number of teachers, parents, pupils and the Head have visited the orphanage in Malawi to give support and assistance. Page 8 of 38 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF FELSTED SCHOOL 2. Magic Bus Founded by Old Felstedian Matthew Spacie, this charity aims to improve awareness, life skills and opportunities for vulnerable children in Mumbai. Pupils and stsff regularly travel to Mumbai to work with this charity, taking a range of items including mobile pliones, sports equipment and clothing. 3. Teach Uganda Dedicated to supporting Ccimmunities in Uganda, this organisation helps to bring about permanent, sustainable development through educiation, health promotion, infrastructure and job creation. Felsted made their first pupil trip to support this charity in 2016 and returned there again in 2018. Felsted has made a big impact to this charity and currently funds several underprivileged local children to study scien￿ A-Levels at a secondary school in Uganda. 4. Felsted Mission For over a hundred years, the links between The Ascension Church and the Felsted School Mission in the East End of London have continiJed to grow and develop. The Ascension Church works with the local community through a Garden Café anG youth activities, promoting fitness and social interaction. This now extends to the Royal Docks School, where, one 100 % bursary is offered to a pupil each year to attend Felsted School. 5. CHESS Homeless Felsted pupils decided that they wanted to make a difference locally as they became increasingly concerned for those 'rough sleeping, in Clielmsford. CHESS Homeless provides an advi￿ ￿ntre, food-bank and night-shelter for those in need in Chelmcford. CHESS has a proven track record of finding long term solutions for those who seek their help. 6. Young Minds This national charity seeks to raise awareness of the mental health issues experienced by young people in the U.K. Young Minds develop initiatives that seek to support young people who otherwise might feel stigmatised for asking for help. In the UK t()day, an estimated five children in every classroom have a mental health problem. A quarter of 17-year-old girls have self-harmed in the last year, while suicide remains the single biggest killer of boys and young men. 7. Essex and Herts Air Ambulance We are delighted to make ¢1 difference to a charity that aims to save lives and reduce suffering from critical illness and injury. The air ambulance delivers first class emergency medical service to the people of Essex, Hertfordshire, London and iuffolk. 8. Farleigh Hospice Farleigh provides hospice c'.are to people affected by life-limiting illnesses in Essex. The medical teams and support staff work in the community and with families during times of great need. The school also supports Little Havens Hospice for children. Our core charities are supported by Whole School Events and each of our Houses champions one of the charities so that long term partnerships can develop. In addition to our core charities Felsted School supports, The Royal British Legion, The David Randall Foundation, The Braintree Foodbank, The Ruth Strauss Foundation, The Felsted Almshouses and the Movember campaign. Pupils and staff have also contributed to Macmillan Nurses, The Lullaby Trust, The Tavarners and SSAFA. Use of Facilities Felsted prides itself in supporting the village and local community, providing opportunities for educational events and school facilities to be Lised whenever possible. Felsted School allows the use of its facilities for a range of activities which are open tci non-school members. This includes classrooms, function rooms, the Hunt Theatre, Page 9 of 38 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF FELSTED SCHOOL sporting facilities, the indoor pool and the Felsted Gym. Felsted also hosL<: many concerts and drama performances throughoutthe year, all of which are open to the public and most of wFiich are free entry. The Felsted School Steel Band performs regularly and on request (time permitting) outside scliool at venues such as Essex Cricket. Pupils also exhibit their art at a local gallery each year, which is open to thi3 public. The following organisations have use Felsted facilities during the year= Felsted Choral Society Braintree Youth Netball Saracens Rugby Stebbing Primary School Essex Cricket (Women) England Netball Ride London 2024 ECHO - Essex Chamber Orchestra Essex Music Services to the Community The School has a very positive relationship with the local village residents and busiiiess community. Richard Lord Riche (the School's founder) left funding which supports a number of Almshouses for those in need in the village. Managed by Felsted as part of his legacy, Almshouse residents are assisted by thc& School through a number of supportive activities. A number of the Senior School students participate in weekly volunteer work as part of their holistic education. These include helping in local residential care homes (e.g. dementia, old age, phy<.ical disability, sensory impaiment), visiting residents in sheltered accommodation and helping in primary :>chools. Current Objectives The School's objectives are set to reflect the educational aims and the ethos of tlie School, and to maintain and enhance the academic Suc￿sS of the School. In setting the objectives and planning the activities the Trustee Board has given car,:ful consideration to the Charity Commission's guidance on public benefit. This year, the focus has been on the continued achievement of academic performaiice and academic value added, and development of the co-curricular programme. The key objectives for the year iiicluded- To develop further mechanisms for the improvement of academic performaiice and grow academic culture, especially through effective use of data To continue to develop relational practice in behaviour management throu(Ihout the school To progress the site development plan, including new indoor sport> facilities, possible boarding improvements, additions and classroom upgrades To develop the Seven Foundations of Felsted as the basis for the school's holistic education To enhance the programme of staff training including reviewing pay scales and professional development To maintain, and grow where appropriate, pupil numbers in both the Prep cind Senior Schools To continue to build on the School's extra-curricular strength and internatii)nalism through membership of organisations such as the Round Square To develop and implement the School's policy on the provision of means-tE!Sted bursaries To continue to develop the school's rich and diverse links with and edJcational delivery to the wider community To develop partnerships to deliver improved outcomes for all involved To continue to integrate the work of Senior and Preparatory Schools to share best practice and provide a more integrated pupil experience To identify opportunities in line with the School's ethos that deliver additional income streams To ensure that the school is financially prepared for the challenges of VAT Page 10 of 38 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF FELSTED SCHOOL Strategies to achieve the year's objectives These included continuing to review the School's academic syllabus in order to benchmark academic standards against external public exciminations and independent value-added criteria, with academic achievements being enhanced by a strong emFihasis on sporting and social skills. The School continued to develop the expertise of teaching staff and ensuring succession planning and staff development and furthering the School's links with local junior schools and facilitatirig wider community access to the School's facilities. Principal activities of the year The Charity principally provides education to boys and girls from the ages of4- 18 in its schools, the Preparatory School and the Senior School, and also hosts summer schools for overseas students. In 2024 the Senior School maintained pupil numbers at 552 (2023: 561) of whom 417 {2023'. 438) were boarders. The Preparatory School averaged 475 (2023.. 477)1)upils of whom 3 (2023.. 9) were full boarders. Pupil numbers in September 2024 were 563 in the Senior School arid 452 in the Prep School. REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR 2023124 brought more succ.ess to the School which celebrated its 460th year - with continued progress towards the aims of the developmerit plan alongside some excellent student achievements. In December 2023, Felsted was one of the first schools in the country to be inspected according to ISI'S new framework of standards. Tk.e inspectors judged Felsted to be meeting the required standards in every area and commented positively on all aspects of the provision covered by the report. Academically, good progre4iS was made across the school. Felstedians enjoyed success at A Level, GCSE and in the IB Diploma Programrne, where pupils achieved an average points score of almost 35 points out of 45, ex￿edIng the global avera Je. The Summer School ￿lebrated its 10 year anniversary and hosted pupils from over 30 different countries to experience Felsted's Glob21 Studies programme. In sport, there were a numtier of achievements, including a standout national title for rugby, claimed at Twickenham Stadium in front of 1,000 Felsted spedators cheering on from the stands. Regional success was also seen in hockey, show-.jumping and netball. Pupils participated in a large number of events to promote internationalism including our own Model United Nations and Round Square Conferences. Felstedians continued to shine on stage in musical and drama productions and took full aclvantage of the brand new Performing Arts Centre which opened its doors to the community in September 21)23. The entire school community embraced the 'Felsted for a Sustainable Future, initiative, which focused on the wider use of sustainable m,'aterials, new recycling points, a drive for energy efficiency, and measures to encourage the local ecosystem to floui ish. Felsted continued to equip young people with an excellent all-round education and the skills, confidence and determination to make a pcsitive difference in the world around them. Fundraising performance The School continues its oiigoing work of raising voluntary funding. Donations totalled £88,847 (2023.. £110,156), including Restricted Fund< £88,847 (2023: £105,724). Restricted funds will allow the School to increase its provision for means-tested bursaries to allow social mobility for children from disadvantaged backgrounds. Page 11 of 38 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF FELSTED SCHOOL Felsted hosted its first ever Giving Day in April 2024. The entire school community threw themselves into activities, events and challenges during a fun-packed 36 hours of fundraising, to ini=rease the number of transformational bursaries available to students. All fundraising activities for the School are carried out by School staff. The Scliool has not used professional fundraisers or had any commercial participants during this financial period. All fundraising activities are managed by the Development Office and are monitored by the Head and CFO (formerly Bursar), with oversight by the Development Committee (responsible for guiding Felsted, s philanthropic and fundi-aising agenda). No complaints relating to fundraising activities have been received by the School (luring this financial period. The School has in place procedures that would be followed in the event of a complaint l)eing received. The School is enrolled with the Fundraising Preference Service and is registered with the Fundraising Regulator and is complying with the Code of Fundraising Practice published by the Fundraiiness rates, staff salary reviews and continued high energy and food costs means that the net income over expen(liture for the year was down on the prior year to £29,805 {2023= £728,713). Reserves policy During the year the School's funds increased by £29,805 to £45,264,754 of which £17,460,965 were restricted or endowed funds. Restricted funds increased by £38,535 to £446,095 as shown in note 19. In common with most independent schools, the School's unrestricted reserves are primarily invested in 1.angible fixed assets, which are all used for direct charitable activities. The nature of the School's operations is that there is a high degree of operational gearing and that the margin of net income to total income is not a higli percentage. Financial viability therefore does not depend upon a high level of income reserves but upon the ability over the medium term to deliver positive cash flow to reinvest in maintaining and improving the School's assets and E.,ducational delivery. The School did not have any free reserves at 31 August 2024. The impact of the current economic environment, including the ongoing pressure on household incomes and imposition of VAT on school fees from 1 January 2025 continues to cause uncertainty as to future pupil numbers. At the time of approving these financial statements the School has not been notified of any material reduction in prospective pupil numbers relative to those which the School has used for the pur[Joses of financial modeS1ing and forecasting. Based upon those forecasts, taking account of the then current cash r-eserves and bank facilities and the ability to rescale the School's activities should that prove necessary in the futuie, the Trustee believes that the conditions for preparing these financial statements on the going concern basis are met and has therefore prepared them accordingly. Investment powers and policy The Trustee's investment powers are governed by the Trust Deed , which permits ttrie Charity's funds to be invested by an approved investment manager. The Trustee's policy is to balance the maintenance of the real value of the invested funds with an adequate income to fund expenses met by the investments. No￿lthstanding fluctuations in the stock market this aim has been realised in the longer term. Page 12 of38 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF FELSTED SCHOOL FUTURE PLANS A whole school" approach is being taken wherever appropriate to bring together the Prep School and the Senior School. The school's development i)lans are reviewed regularly by the Board and include.. Developing a loiig-term, financially sustainable model for the school that includes the diversification of income stream¢ and a review of the school's operating model to ensure the continued evolution of the pupil experiencE: but with a renewed focus on value for money. Focussing on piipil retention and recruitment into the start of each key stage. Continuing to d>velop a strong national and international profile in relation to teaching and learning, welfare and pastoral processes to add value to every individual. Investing in the school premises and facilities to match and surpass the provision of other similar schools. STATEMENT RESPONSIBILITIES The Trustee is responsible for preparing the Trustee's Annual Report and the financial statements in accordance with applicable law and Uiiited Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards). The law applicable to charilies in England and Wales requires the Trustee to prepare financial statements for each financial year which give a "rue and fair view of the state of affairs of the charity and of the incoming resources and application of reSoUr￿S for that year. In preparing these financial statements, the Trustee is required to.. select suitable Giccounting policies and then apply them consistently,. observe the me:,hods and principles in the Charities SORP. make judgmenti> and estimates that are reasonable and prudent- state whether ai)plicable accounting standards have been followed, subject to any material departures disclosed and eKplained in the financial statements., prepare the financial statements on the going con￿rn basis unless it is inappropriate to presume that the charity will continue in business. The Trustee is responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions, discli)se with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the fiiiancial statements comply with the Charities Act 2011, the Charities {Accounts and Reports) Regulations 2008 and the provisions of the charity's constitution. They are also responsible for safeguarding the assets of the charity and hen￿ for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by the Trustee 011 22 March 2025 and signed on its behalf by.. M Beale Chair of Felsted School TrL Stee Limited Page 13 of 38 **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF** ## **FELSTED SCHOOL** ## **Opinion** We have audited the financial statements of Felsted School ('the charity') for the year ended 31 August 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cashflow Statement and notes to the financial statements, including significant accounting policies. The financial reporting fram[i] 2work that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - Give a true and fair view of the state of the charity's affairs as at 31 August 2024 and of its income and expenditure, for the year then ended; - Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - ## **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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity'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 trustee with respect to going concern are described in the relevant sections of this report. ## **Other information** The trustee is responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **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 requires us to report to you if, in our opinion: - the information given in the financial statements is inconsistent in any material respect with the Trustee's report; or - sufficient and proper accounting records have not been kept by the charity, or Page **14 of38** INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF FELSTED SCHOOL the financial State￿ientS are not in agreement with the accounting records and returns,. or we have not re￿lv,-d all the information and explanations we require for our audit. Responsibilities of trustee As explained more fully in the trustees, responsibilities statement set out on page 14 the trustee is 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 truslee determines is necessary to enable the preparation of financial statements that are free from material misstateinent, whether due to fraud or error. In preparing the financial statements, the trustee is responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustee either intends to liquidate the charity 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 144 of the Charities Act 2011, and report in accordance with the Acts and relevant regulatioiis made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial ststements as a whole are free from material misstatement, whf.ther due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is Th 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 m,aterial if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of ijsers taken on the basis of these financial statements. Details of the extent to whic.h the audit was considered capable of detecting irregularities, including fraud and non- compliance with laws and r>gulations are set out below. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's websitp at.. www.frc.or .uklauditorsres report. onsibilities. This description forms part of our auditor's Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, including frajd, are InStan￿S of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these be￿een our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. We obtained an understanijing of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulaticns that have a direct effect on the determination of material amounts and disclosures in the financial statements. Ihe laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS 102) and taxation legislation. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. In addition, we considered )rovisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considared in this context for the UK operations were The Education {Independent School Standards) Regulations 2014 and General Data Protection Regulation (GDPR). Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustee arid other management and inspection of regulatory and legal correspondence, if any. We identified the greatest r sk of material impact on the financial statements from irregularities, including fraud, to be within the override of co,Itrols by management. Our audit procedures to respond to these risks included enquiries of management, land the House & Finance Committee about their own identification and Page 15 of38 **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF** ## **FELSTED SCHOOL** assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, Independent Schools Inspectorate and reading minutes of meetings of those charged with governance. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial stateme11ts, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. ## **Use of our report** This report is made solely to the charity's Trustee, 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 miqht state to the charity's Trustee 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 Trustee as a body, for our audit work, for this report, or for the opinions we have formed. ## **Crowe U.K. LLP** Statutory Auditor London Date 22 May 2025 Crowe U.K. 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. Page 16 of38 FELSTED SCHOOL STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024 Unrestricted Restrl¢ted Funds Funds Endowed Totsl Year to 31 Totsl Year to 31 Funds August 2024 Augu* 2023 Income and endowmentsfrcm: Charitable Activities SchcM)I f8es receivable Ancillary tradiry incomiJ 26,201,816 2,830,120 26,201,816 2,830,120 24,914,018 2,811.523 Other trading acllvlties Non-ancillary trading in,=ryne Other actiiities Investsnents In￿tment Income Bank and other inte￿1 Voluntary g)urces Grants and donations 455,876 107,493 455,876 107,493 440,295 29,243 40,(f20 4C(1,712 180,894 220.914 4CO,712 67,286 241,403 110,157 Tolal In¢ome 30.036,037 269,740 30,305.777 28.613.925 Expenditure on Raisng funds Non-ancillary tradirKJ Other income generatirg actiiities Financing costs Fundraising and de￿lopment 391.257 1,634,803 3C6,352 344,047 391.257 1,634,803 306,352 344,047 347,871 1,479,537 81,730 273,632 Total deductible costs 2.676.459 2.676,459 2,182.770 Charitable activitias Education and grant miaking Total expendi￿re 27,244.C67 231,110 229,295 27,704,472 25,676,532 29,920,526 231,110 229,295 30,380.931 27,859.302 Net Incoming funds from opLhrations before transfers and inveslment gains GainllLoss} on In￿trn￿nts Transfer between funds 115.511 38.630 1229,2951 104,959 175.154) 104,959 754.623 {25,910) 11 19 95 (95) Net 1ncomel{expendi￿reI and movement in fundsforthe yoar 115,PJ 38,535 (124.336) 29,805 728.713 Fund balan¢esat 1 September 2023 27,688,182 407,560 17,139,207 45.234,949 44,506,236 Fund balances at 31 August 2024 27,803,788 446,095 17.014.871 45.264.754 45.234.949 The notes on pages 21 to 38 form part of these financial statements Page 17 of38 FELSTED SCHOOL BALANCE SHEET FOR THE YEAR ENDED 31 AUGUST 2024 AS AT 31 AUGUST 2024 2024 2023 Notes Fixed Assets Tangible Assets In￿StMentS 10 44,629,143 1,409,432 46,038,575 44,941,281 1,304,473 46,245,754 Current Assets In*ntories Debtors Cash at bank and in hand Short Term Deposits 285,570 1,513,659 10,307,935 4,260,000 16,367,164 383,014 1,145,481 7,766,099 12 9,294,594 Current Liabilities Liabilities due within one year 13 (10,411,471) (8,439,752) Net Current Assets 5,955,694 854,842 Total Assets less current liabilities 51,994,268 47,100,596 Creditors due in more than one year Fees in advance 14 Bank Loan 13 (5,989,525) (739.989) (1,865,647) (6,729,514) 45,264,754 (1,865,647} 45,234,949 Net Assets 18 Funds Unrestricted - General Rese Unrestricted - Pension Rese Restricted Endowment 19 27,806,521 {2,733) 446,095 17,014,871 45,264,754 27,697,194 (9,012} 407,560 17,139,207 45,234,949 19 19 These financial statements were approved and authorised for issue by the Trustee on 22 March 2025 and signed on its behalf by= M Beale Chair of Felsted School Trustee Limited The notes on pages 21 to 38 form part of these financial ststements Page 18 of 38 FELSTED SCHOOL CASHFLOW STATEMENI. FOR THE YEAR ENDED 31 AUGUST 2024 2024 2024 2023 2023 Cathflows from operating activities Net cash provided used in operating actiirities 6,452,586 2,457,135 Cashflows from investinci activities Payments for tangible fixec assets Proceeds on sales of tangil)le fixed assets In￿stment income and barik interest receivad {886,484) 18,400 621,625 (485,266) 5,250 308.689 Net cash u*d in investing activities (246.459) (171,327> Cashflows from financinJ( activities Barclays 5 year Temi Loan Repayments on borrowing Phillips Loan Finance costs paid 760,000 17.939) 150,000 {306,352) (81,730) Net cash provided by finiancing activities 595, 709 (81,730) Change in cash and cash E4]ul￿rentS in the reporting perits 6,801,836 2,204.078 Cash and cash equi￿dIentS b￿d 7,766, 099 5,562,021 Cash and cash equiwalents cfvd 14.567,935 7,766.099 The notes on pages 21 to 38 fomi part of these financial statements Page 19 of 38 FELSTED SCHOOL CASHFLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2024 (i) Reconclllatlon of net income to net cash flow from operating a¢tivities Net {outgoing)lincoming for the reporting period as per the Statement of Financial Actimties fi-5,154) 754,623 Adjustments for. in￿stment income and bank interest (6£.1,625) 3C6,352 1,1CI2,704 16,279) (12.482) Ci7,444 {3e,8, 178) 1=.,3,904) 6,0£.2,704 (E',8,996) (308,689) 81,730 1,194.296 (6, 183) 15,2501 {34,228) 9,394 1374.783) 1,150,711 (4,4851 - finance costs Depreciation charge Defined pension scheme adjustments Gain on sale of fixed assets Decreasel(Increase} in stocks (Increasel/Decrease in debtors Decrease in creditors (excluding FVI and deposits) Increase in FIA Decrease in parents deposits 6,5i.7,740 1,702,513 Net cash in)low from operations 6,4<,2,586 2,457.135 (li) Analysis of cash and cash equivalents Cash at bank 10,3(17.935 4,2E',O,000 7,766,099 Short Tenn Deposits 14,567,935 7.766.099 lili) Analysis of changes in Net Debt 01 September 2023 Cashflows New Borrowings 31 August 2024 Net cash Cash & Cash Equivalents ST deposits 7,766,099 2,541,836 4,260,000 6.801,836 10.307,935 4,260,000 14,567,935 7.766.099 Borrowings Bank Loan 7.939 (760.0001 (752,061) Total 7.766.099 6.809,775 1760.000) 13.815.874 The notes on pages 21 to 38 form part of these financial stthtements Page 20 of 38 FELSTED SCHOOL NOTES TO THE ACCOUNTS- CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 STATEMENT OF IkCCOUNTING POLICIES Basis of Accounts Prepai'ation The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Charities Act 2011 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS102)- effective 1 January 2015. These accounts are drawq up on the historical cost basis of accounting, as modified by the revaluation of investments. The financial ¢.tatements 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 folljwing Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reportirig Standard applicable in the UK and Republic of Ireland (FRS 102 rather than the Accounting and Reporting l)y Charities.. Statement of Recommended Practice which has since been withdrawn). At the time of approval of the Annual Report, there are currently significant cash balan￿S should additional liquidity be required through this period of uncertainty to meet the liabilities as they fall due. The school has confirmed with its bankers that the existiiig overdraft facility continues for 12 months to June 2025 together with additional headroom if required. A foijr year secured revolving credit facility of £4m expired on 11 November 2024. This is being renewed. Formal apFiroval has been granted by Barclays Bank but due to changes in the Bank's personnel, the facility will not be in place until March 2025. There are no plans currently in place that are reliant on the availability of this facility. Tlie Trustee has considered various scenarios including a reduction in pupil numbers. At the time of approving these financial statements the School has not been notified of any material reduction in prospective pupil numbers relative to those which the School has used for the purposes of financial modelling and forecasting. The School ha4) considered various financial forecasts taking account of the then current cash reserves and bank facilities and the ability to rescale the School's activities. Accordingly, the Trustee believes the School's financial resources are suff icient to ensure the School will continue as a going concem for the foreseeable future, being at least 12 months fi-om the date of approval of the financial statements and have therefore prepared the financial statements on the going concern basis. The School is a Public Beni:fit Entity registered as a charity in England and Wales. It was registered as a charity on 10 April 1964 (charity number 310870). Critical accounting judgrrients and key sources of estimation uncertainty In the application of the accounting policies, The Trustee is required to make judgments, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results rnay differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the perio,J in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affected current and future periods. In the view of the Trustee, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sh set date are likely to result in a material adjustment to their carrying value in the next financial year. The following accounting Pi)licies have been applied consistently in dealing with items which are considered to be material in relation to the Si=hool's financial statements. Page 21 of 38 FELSTED SCHOOL NOTES TO THE ACCOUNTS- CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 STATEMENT OF ACCOUNTING POLICIES (CONTINUED) Fees and similar income Fees receivable and charges for services and use of premises are accounted for in the year in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and Dther remissions granted by the School but include contributions received from Restricted Funds for Scholarships, E,ursaries and other grants. Fees received in advance of education to be provided in future years under an Advance l=ee Payments Scheme contract are held as interest-bearing liabilities until either taken to income in the term when used or else refunded. Donations and legacies Donations receivable for the general purpose of the Charity are credited to Unrestricted Funds. Donations for purposes restricted by the wishes of the donor are taken to Restricted Funds wheri! these wishes are legally binding on the Trustee Board. Donation and legacy income is accounted for as ancl when entitlement arises, the amount can be reliably quantified and the economic benefit to the School is consid?red probable. Expenditure Expenditure is accrued as soon as a liability is considered probable, discounted to tlie present value for longer-term liabilities. Expenditure attributable to more than one cost category in the SOFA is apportioned to them on the basis of the estimated amount attributable to each activity in the year, either by reference to staff time or the use of the underlying assets, as appropriate. The irrecoverable element of VAT is included witliin the item of expense to which it relates. Governan￿ costs comprise the cost of the external audit and reimbursement of Trjstee expenses when attending meetings. Pension schemes Retirement benefits to employees of the School are provided through four pension schemes, defined benefit o defined contribution schemes. The pension costs charged in the Statement of Financial Activities are determined as follows.. a) The Teachers, Pension Scheme this scheme is a multi-employer pensi()n scheme. It is not possible to identify the School's share of the underlying assets and liabilities of the T,:achers' Pension Scheme on a consistent and reasonable basis and therefore, as required by FRS102, the School accounts forthe scheme as if it were a defined contribution scheme. The School's contributions, wiich are in accordance with the recommendations of the Government Actuary, are charged in the period in which the salaries to which they relate are payable. The Charity contributes to the Teachers, Pension Sckieme; a multi-employer defined benefit pension scheme, at rates, varying be￿een 7.40/0 and 11.7 % for employees and an employer contribution rate set by the Scheme Actuary and advised to the Board by the Scheme Administrator of 23.68 % for the period 1 September 2023 to 31 March 2024, rising to 28.68D/o from 1 April 2024. b) The Pension Trust Scheme- this scheme is a multi*mployer pension sch(:me. It is not possible to identify each individual employee's share of the underlying assets and liabilities. In most respects it is a multi- employer scheme but it has some guarantees. As a result, it is not possible to identify the School's share of the underlying assets and liabilities of the scheme. However, the Schocl remains potentially liable for a debt on withdrawal from the scheme. In accordance with FRS102 the scheme is accounted for as if it were a defined contribution scheme- see also note 22 (b). The School's contributions of 5 % are charged in the period in which the salaries to which they relate are payable for senior non-teaching members of staff. c) The People's Pension Scheme- this is a money purchase pension scheme. The School's contributions are charged in the period in which the salaries to which they relate are payablE: for other non-teaching staff d) Aviva Pension Trust for Independent Schools {APTlS) this is a money i)urchase pension scheme. The School's contributions are charged in the period in which the salaries to which they relate are payable for teaching staff. Page 22 of 38 FELSTED SCHOOL NOTES TO THE ACCOUNTS- CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 School land and buildings, equipment and plant and machinery Capitalisation and replacen7ent Freehold land and buildings were professionally valued by Mullucks Wells, chartered surveyors, in August 2014. The basis of the valuation wias that residential freehold and educational buildings were valued on an open market valuation with vacant possi:ssion. The August 2014 valuation highlighted a material increase in the value of the freehold land and buildings and the assets are included at this value. The School has elected, in ¢accordance with Section 35.10{d} of FRS102, to use the carrying values on 1 September 2014, the date of transition to FRS102, of any of the above freehold land and buildings previously carried at valuation, as their deemed cost. All tsngible fixed assets are held for use on charitable activities. School land and buildingT>i equipment and plant and machinery Dep￿ciatIon Depreciation is provided on other fixed assets to write off their cost, less estimated residual value based on current market prices, in equal instalments over estimated useful lives at the following rates.. Freehold buildings Plant and equipmeiit Motor vehicles 2 % to 10 % straight line 10 % straight line 25 % straight line Items costing over £2,500 are capitalised. Investments Investments are valued in the balance sheet at their mid-market value at the balance sheet date. Unrealised gains and losses arising on revalijation of investments are credited or charged to the Statement of Financial Activities and are allocated to the api)ropriate fund according to the "ownership" of the underlying assets. Inventories Inventories are valued at the lower of cost and estimated selling pri￿ less costs to sell. Operating leases Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straiglit-line basis over the lease term Financial Instruments Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised costwith the exception of investments which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade, other debtors and accrued income but excludes prepayments. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors exce.pt social security and other taxes and provisions and fees received from parents in advance of Autumn term. .No discounting has been applied to these financial instruments on the basis that the periods over which amount) will be settled are such that any discounting would be immaterial. Advance Fee Scheme pajiments Amounts received under ths School's Advan￿ Fee Scheme contracts for education not yet utilised to settle School fees are recorded as deferred income and allocated as current liabilities where the education will be provided within 12 months Irom the reporting date and as long-term liabilities where the education will be provided in subsequent years. Page 23 of 38 FELSTED SCHOOL NOTES TO THE ACCOUNTS - CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 CHARITABLE ACTIVITIES- FEES RECEIVABLE 20kA 2023 Fees receivable ¢onsist of: School Fees Less.. total scholarships & Bursaries 29,13:1,886 (3,1611,895} 27,702,718 {2,915, 065) 25,97") 991 2211,825 24,787,653 126,365 Add back". Bursaries and other awards paid for by restricted fvnds 26,20'1,816 24,914,018 Scholarships, bursaries and other awards were paid to 278 pupils (2023.. 327}- Within this, means tested bursaries totalling £1,230,514 were paid to 54 PLipils (2023: £1,068,666 to 60 pupils) CHARITABLE ACTIVITIES - OTHER INCOME 2024 2023 Extras Entrance and registration fees Transport Intemational Summer School & Courses School bookshop 1,2.J8,960 1.246,610 53,388 289,050 1.205,719 16,756 2'.35,644 1,2.')4,394 14,344 2,830,120 2.811,523 OTHER TRADING ACTIVITIES 2024 2023 Trading income Lettings and Sports Clubs Other School Shops 1,44,326 311,550 119,051 321,244 4)5,876 440,295 Other activities Interest on 0￿rdue fees Other income 10,596 '.36, 897 5,959 23,284 1 iJ7,493 29,243 INVESTMENT INCOME Unrestricted Restricted Endowed Total 2024 Totsl 2023 Securities investment income: Equities 180,894 180,894 39,761 Property invethent income Rents receivable 40,020 40,020 27,525 40,020 180,894 220,914 67,286 Pag¢ 24 of 38 FELSTED SCHOOL NOTES TO THE ACCOUNTS- CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 GRANTS AND DONATIONS RECEIVABLE Unrestrictsd Re*icted Endowed Tota12024 Totsl 2023 Bursaries De￿lopment donations Lega¢ies Other 84,396 4.450 84,396 4,450 72.284 32,588 3,031 2,253 110,156 88,846 88,846 Donations received include £39,028 collected on Giving Day. ANALYSIS OF EXPENDITURE A) Total Expenditure Year to 31 August 2024 Staff Costs (note 9 Depreciation (note 10 Other costs 2024 Costs of raising funds Trading costs 150,516 240,741 391,257 Costs of other actimties Financing costs (note 8) De￿lopment costs 608,962 1,025,841 306,352 167.924 1,634,803 306,352 344,047 176,123 Tota I costs of raising funds 935,601 1,740,858 2.676,459 Charitable Expenditure Education and Grant maki1g Teaching Welfare Premises repair and riaintenance Support costs & GO￿.,ManCe Grants. awards and prizes (note 7b) 10,398,532 3.254, 109 1.014,336 3,519,757 1,975.218 1,443.583 3.282,310 1.392,813 231,110 12.373,750 4.697,692 5,489,350 4,912,570 231,110 1,192,704 Total Charitable expenditui e 18.186,734 1.192.704 8.325,034 27,704,472 Total Expenditure 19.122.335 1.192,704 10,065,892 30,380.931 Page 25 of 38 FELSTED SCHOOL NOTES TO THE ACCOUNTS- CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 ANALYSIS OF EXPENDITURE (CONTINUED) Year to 31 August 2023 Staff Costs (note 9 Depreciation (note 10) Other costs 2023 Costs of raising funds Trading costs 125,778 222. 093 347,871 Costs of other actlmties Financing costs (note 8) De￿lopment costs 440.621 1,038,916 81,730 132,637 1,479,537 81,730 273,632 140,995 Total costs of raising funds 707,394 1,475,376 2.182,770 Charitable Expenditure Education and Grant making Teaching Welfare Premises repair and maintenance Support costs & Go*mance Grants, awards and prizes (note 7b} 9,412,423 2.703,329 963. 320 3,211,447 2,215,084 1,425,431 3,045,314 1,332,459 173,429 11,627,507 4.128,760 5,202,930 4.543,906 173,429 1,194.296 Total Charitable expenditure 16,290,519 1,194,296 8,191,717 25,676,532 Total Expenditure 16,997,913 1,194.296 9,667,093 27.859.302 Depreciation and other costs relating to Felsted School endowed fund properties tcitalling £229,295 {2023'. £229,295), have been charged directly to the endowment fund. Bl Grants awards and prizes Total & Restricted Funds 2024 2023 From Restricted Funds Bursaries and other grants and awards 231,110 173,429 C) Governance included in support costs 2024 2023 Remuneration paid to auditor for Audit - July 2024 Remuneration paid to auditor for Full Audit 2024 8,000 32,506 30,958 Reinbursement of personal expenses to Trustee Director- tra￿1 costs 1,024 1.138 41,530 32,096 Travel expenses were reclaimed by two members, £1,024 (2023.. £1,138) of the TrJstee Board. Pa(re 26 of 38 FELSTED SCHOOL NOTES TO THE ACCOUNTS- CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 8 FINANCE AND OTHER COSTS 2024 2023 Fees in a(Jwdnce debit financing cost Pension r￿jcheMe fjnancing cost Bank Intei-est 228,538 8,043 69,771 55,964 7,914 17,852 306.352 81,730 9 STAFF COSTS 2024 2023 The aggregate payroll Costs for the year were as follows: Wages arid Salaries Social Sewurity Costs Pension Contributions 15.625,266 1,557.362 1,939.706 13,949,148 1,362,138 1,686.627 19,122.334 16,997.913 None of the Trustee Bijard received any remuneration or other benefits from Felsted School or from any connected body. Aggregate employee benefits of key management PE!rsonnel 628,295 644,812 Number of higher paid employees in bands of.. 2024 2023 Number Number 26 £60,001 - £70.000 £70,001 - £80,000 £80,001 - £90,000 £90,001 - £100.000 £100.001 - £110,000 £120.001- £130,000 £130,001 - £140,000 £160,001 - £170,000 £170,001 - £180,000 The number of high(!r paid employees with retirement benefits accruing -in Defined Contribution Schemes was Of which the conlributions amounted to Defined Benefit Schemes was £62,103 £33,815 19 Page 27 of 38 FELSTED SCHOOL NOTES TO THE ACCOUNTS - CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 9 STAFF COSTS {CONTINUED) The average number of employees during the year was: 2024 2023 Actual Actual Number Number 163 153 196 173 30 28 177 151 27 16 2024 2023 FTE FTE Number Number 139 143 115 120 25 26 106 106 16 16 Teaching Welfare Premises Support Other Total 593 521 401 411 During the year there were no redundancy payments made. Termination p,qyments of £56,859 were made (2023- £34,000). Of the total, £45,284 was still outstanding for payment at 31st August 2024. 10 TANGIBLE FIXED ASSETS Freehold Land and Building Plant and Equipment Motor VefNicles Total Cost At 1 September 2023 Additions Disposals 51.648.399 420,282 1.643,203 375,802 {58,072) 845,582 90,400 (69.384) 54,137,184 886,484 (127,456) At 31 August 2024 52,068.681 1.960.933 866,598 54,896,212 DEPRECIATION At 1 September 2023 Charge for the year Disposals 7,383,948 995,701 1,084.239 128.766 152, 154) 727.716 68,237 <69,3841 9.195.903 1.192,704 (121,5381 At 31 August 2024 8,379,649 1,160,851 726,569 10,267,069 NET BOOK VALUE At 31 August 2024 43,689,032 800,082 140,029 44,629,143 At 31 August 2023 44,264,451 558,964 117,866 44,941,281 The School has elected, in accordance with Section 35.10(dl of FRS102, to use the carrying values on 1 September 2014, the date of transition to FRS102, of any of the above freehold land and buildings previously carried atvaluation, as their deemed cost. All tangible fixed assi3ts are held for use on charitab5e activities. Page 28 of 38 FELSTED SCHOOL NOTES TO THE ACCOUNTS- CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 11 SECURITIES INVESTMENTS 2024 2023 At 1 September 20.!3 Increasel(Decreasf!) in value of investments 1,304.473 104,959 1,330.383 (25,910) Investments at 31 August 2024 1.409,432 1,304.473 Investments con4)rise: Listed InvestrrenLS Fixed Interest Equities Ajternative assets Cash 114.728 1,061,443 205,636 27,625 115,968 992,182 162,929 33.394 Investments at 31 August 2024 1.409,432 1,304.473 In addition to the above investments, cash balances within the Fees in Advance Scheme are included in current assets as cash deposits. The main Securities investments are managed for the School by CCLA. All investments are managed and held in the UK. 12 DEBTORS 2024 2023 Fees and extras Trade Other debtors Other prepaymentTi and accrued income Tax ReCo￿rable 1,011,433 34,370 205,675 262,181 834,591 15.079 132,674 100.484 62,653 1.513.659 1,145,481 All debtors are due within one year. Page 29 of 38 FELSTED SCHOOL NOTES TO THE ACCOUNTS- CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 13 CREDITORS: Due within one year 2024 2023 Deposits from parents Fees reCeI￿d from parents in adwdnce of tem Trade Creditors Taxation and social security Fees in Adwance Scheme Accruals and defe￿ed income Phillips Fund Loan 1 f)90,986 3, 167,385 159.756 .450.988 3.)31,240 1,219,177 ?79,867 1,759,982 2,891,670 285,670 415,448 1,112,414 1,444,701 529,867 10,%99,399 8,439,752 Bank Loan 2024 2023 Within 2 to 5 years Within 1 to 2 years 726,782 13,207 739,989 12.072 Within 1 year 752,061 There is a bank overdraft standing facility of £800,000. A four year secureij revolving credit facility of £4m expired on 11 November 2024. This is being renewed. Formal approval has been granted by Barclays Bank but due to changes in the Bank's personnel, the facility will not be in i)lace until March 2025. There are no plans currently in place that are reliant on the availability of this facility. The loan from the Philipps Fund is interest free and repayable on demand. The Barclays Term Loan of £760,000 is a floating rate basis term loan at 2 25 % per annum. The term of the loan is 5 years with the final repayment date of the full amount by 17th October 2028. Pupil Fees Deposits- the total amount held in relation to fee deposits of £1,690,986 is included above. In the normal course of business, the expected repayment of these ami)unts WIIS be £326,488 12023.. £302,994} within one year and £1,303,000 {2023.' £1,378,488) after more -han one year. The Trustee has considered the contractterms underwhich Pupil fee deposits are held by the, School. Although under normal circumstances these will be repaid over future years when the pupils complete their education at the School, pupils can leave at earlier dates. The School does not therefore have an unconditional right to retain the individual deposits for at least 12 months after the balance sheet date and, in line with the requirements in FRS 102, the balance of the deposits held at 31 August 2024 have been included within current liabilities. 14 FEES IN ADVANCE SCHEME Parents may enter into a contract to a minimum of three terms School fees in advance. There was a significant increase in the number of parents taking out fees in advance contracts with the school. Assuming pupils will remain in the School, advance fees will be applied as follows: Page 30 of 38 FELSTED SCHOOL NOTES TO THE ACCOUNTS- CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 2024 2023 After 5 years Within 2 to 5 yea15 Within 1 to 2 yeais 604,052 3,371.712 2,013,761 510,117 841,482 514,048 5,989,525 3,031,240 1.865.647 1,112,414 Within 1 year 9.020.765 2,978,061 Summary of movement in Liability 2024 2023 Balance at 1 September 2023 New Contracts Repayments Amounts used to pay Fees Amounts accrued to contract as debt financing cosl 2,978,061 8,157,365 (70,701) (2,272.498) 228,538 1.827,350 2,819,992 (78,341) (1,646,904) 55,964 9,020.765 2,978,061 15 FINANCIAL INSTRUMI-NTS 2024 2023 Financial assets meas¢Jred at Fair Value (a) 1,409,432 1,304,473 (al Financial assets held at fair value include assets held as In￿tMentS Total Income for Financial Assets held at Marf(et Value 180.894 39,761 16 LEASES The future minimum lease payments under non-cancellable operating leases for equipment which are all payable as follows= 2024 2023 Wrf(hin 1 year 5.800 73,386 Within 2 to 5 years 1,368 7,168 7.168 80.554 Page 31 of 38 FELSTED SCHOOL NOTES TO THE ACCOUNTS - CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 Lease payments in year recognised as expenditure amounted to £71,524 (20;?3'. £107,213) 17 FUNDS OF THE SCHOOL The School's funds are analysed under the following headings (a) Endowed funds Endowment funds consist of investments and freehold land and buildings held by the School under permanent endowment, and special funds on which the capital must be retained and the income applied to specific purposes of the School. (b) Restricted funds Annual Fund this raises funds for small projects and extra-curricul in the Teachers, Pension Scheme {"the TPS.) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £1,625,971 (2023 £1,068,054) and at the year-end £138,099 (2023.. £126.451) was accrued in respect of contributions to this scheme. The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers, Pensions Regulations 2010 (as amended) and The Teachers, Pension Scheme Regulations 2014 (as amended}. Members contribute on a.pay as you go" basis with contributions from members and the employer being credited to the F.xchequer. 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,. Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2020 and the Ilaluation Report, which was published in October 2023. The latest valuation showed total scheme liabilities of £262,000 million and notional assets of £222,200 million, giving a notional past service deficit of £39,800 millic)n. Following the McCIoLid judgement, the remedy proposed that when benefits become payable, eligible members can select tc, receive them from either the reformed or legacy schemes for the period 1 April 2015 to 31 March 2022. The ai=tuaries have assumed that members are likely to choose the option that provides them with the greater benefits, and in preparing the 2020 valuation have valued the'greatervalue, benefits for groups of relevant members. The employer contribution rate for the TPS is 28.6 /0, and employers are also required to pay a scheme administration levy of l).08 % giving a total employer contribution rate of 28.680/0. Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The School is unable to identify ite share of the underlying assets and liabilities of the plan. Accordingly, the School has taken advantage of thi) exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. b) The Pensions Trui>t Retirement Solutions - The Growth Plan The school participatES in the scheme, a multi-employer scheme which provides benefits to some 638 non- associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account forthe scheme as a defined benefit scheme. Therefore, it accounts for the scheme as a defined contribution scheme. The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. T.iis, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension .'>chemes in the UK. The scheme is classifi-d as a 'last-man standing arrangement,. Therefore, the company is potentially liable for other participating employers, obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit c)n an annuity purchase basis on withdrawal from the scheme. A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities ,)f £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participatinci employers to pay additional contributions to the scheme as follows= From 1 April 2022 to 31 January 2025, the deficit contributions of the scheme totalled £3,312,000 per annum. Unless a concession lias been agreed with the Trustees the term to 31 January 2025 applies. Page 35 of 38 FELSTED SCHOOL NOTES TO THE ACCOUNTS- CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 From 1 April 2024 the School's deficitcontributions were £14,455 per annum. F-orthe financial year September 2023 - August 2024, the School's deficit Gontributions totalled £14,322. The recovery plan contributions are allocated to each participating employer in line with their estimate share of the Series 1 and Series 2 scheme liabilities. Where the scheme is in defi(:it and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions paiabSe under the agreement that relates to the deficit. The present value is calculated using the discount rate dÉ..tailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost. Present values of provision Reconciliation of opening and closing provisions 2024 2023 Proirision at start of period Unwinding of the discount factor (interest expense) Deficit contirbution paid Remeasurements - impact of any Changes in assumptions 9,012 330 (14,322) 7,713 15,195 519 (6,613) (89) 2,733 9.012 2024 2023 Within 1 year 2,733 9,012 2.733 9,012 Income and Expenditure Impa¢t 2(124 2023 Interest Expense Remeasurements - impact of any changes in assumptions Costs recognised in Statement of Financial Actimties 330 7,713 14,322 519 {89) 6,613 Assumptions At 31 August 2024 At 31 August 2023 At 31 August 2022 At 31 August 2021 /0 per annum /0 per annum /0 per annum annum Rate of discount 5.13 6.041 4.46 0.63 Page 36 of 38 FELSTED SCHOOL NOTES TO THE ACCOUNTS- CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 The discount rates shjwn above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions. The School has been iiotified by The Pensions Trust Retirement Solutions of the estimated employer debt on withdrawal from the Plan based on the financial position of the Plan as at 30 September 2024. As of this date the estimated employe,r debt on withdrawal for the School was £77,000 (2023: £108,116). c) Aviva Pension Trust for Independent Schools The School also Piarticipates in the Aviva Trust for Independent School {"APTIS") for its teaching staff. The pension charge foi- the year includes contributions payable to APTIS of £597,300 (2023.. £551,221) and at the year*nd £nil was accrued in respect of contributions to this scheme {2023= £nil). It is a money purchase pension scheme. 23 RELATED PARTY TFANSACTIONS Certain Directors of th- Trustee Company had interests in transactions involving the School= M Beale, S Wolfe and Z Rantell are parents of current pupils in the School. J Windsor's child completed their Felsted education at tlie end of the 2314 academic year. All of these families paid School fees in accordance with the School's stsndard terms and conditions. During the year, 1 {2023: 1) member of staff was employed on standard terms anij conditions by the School who were related to Directors of the Trustee Company and these staff received remuneration of £10,499 {2023'. £9,723}. During the year donations of £7,800 (2023.. £2,503) were re￿IVed from Directors of the Trustee Company. During the year, 2 {20:?3: 2) members of staff were employed on standard terms and conditions by the School who were related to kÉ:y management personnel. 24 CONNECTED CHARITIES AND COMPANIES Felsted School is supported by The Philipps Fund, which raises funds for the benefit of the School. At 31 August 2024 £679,861 (2023.. £529,867) was owed to the Philipps Fund. This is repayable on demand. A trading company, Felsted School Enterprises Ltd, was incorporated on 21 August 2006 and remained dormant throughout the year. It changed its name on 16 August 2022 to Felsted Global Education Limited. Page 37 of 38 FELSTED SCHOOL NOTES TO THE ACCOUNTS- CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 25 STATEMENT OF FINANCIAL ACTIVITIES - PRIOR YEAR COMPARATIVE FIGURES BY FUND TYPE 'rotal ye.ar to 31 August 2023 Unrestricted Funds Restrictsd Funds Endowment Funds Notes 5ncome and endowments from.. Charitable activities School fees re￿Ivable Ancillary trading income 24,914,018 2,811,523 24.9'14,018 2,811,523 Other trading activities Non-ancillary trading income Other activities Investments Investment income Bank and other interest Voluntary sources Grants and donations 440,295 29,243 10,295 9,243 27,525 241,403 39.761 1>7,286 2111.403 4.433 105,724 110,157 Total income 28.468,440 145,485 28.6'13,925 Expenditure on: Fiaising fund5 Non-ancillary trading Other income-generating activf(ies Financing costs Fundraising & Development 347,871 1,479,537 17,871 1,41 9,537 81,730 273,632 111,730 2-'3,632 Total deductible costs 2,182,770 2,1112.770 Charitable activities Education and grant rnaking 25,273,808 173,429 229,295 25,6:'6,532 Total expenditure 27,456,578 173,429 229,295 27,81j9,302 Net loutgoingllincoming funds from operations before transfers and investment gains 1.011,862 {27.944} {229,2951 7:A,623 (Lossllgains on investments 125,9101 >5,9101 Transfers be￿een fvnds 19 2,348 12,3481 Net lexpenditurevincome and movement in funds for the year 1,014,210 130,2921 1255,2051 Fund balances at 1 September 2022 25 26.673,972 437.852 17,394.412 44.5116,236 FUND BALANCES at 31 AUGUST 2023 27,668,182 407,560 17.139,207 45,234.949 Paoe 38 of 38