Charlty Registration No. 311027 Company Registratlon No. 00395056 (England and Wales> RSSKL LTD ANNUAL REPORT AND FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31JULY 2024 GROUP BUSINESS ADVISORS & ACCOIJNTANT$ One Bell Lane Lewes East Sussex BN7 IJU
RSSKL LTD CONTENTS Page Company information Council Members, report Statement of Council Members, responsibilities Independent auditor's report 8-11 Statement of financial activities 12 Balance sheet 13 ststement of cash flows 14 Notes to the financial statements 15-28
RSSKL LTD COMPANY INFORMATION Council Members S Cook S Henderson A Marcuson Charlty number 311027 Company number 00395056 Registered office Langley Hill Kings Langley Hertfordshire WD49HG Auditor TC Group One Bell Lane Lewe5 East Sussex BN7 IJU
RSSKL LTD COUNCIL MEMBERS, REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 JULY2024 The Council Members present their annual report and financial statements for the year ended 31 July 2024. The ac¢ounts have been prepared in accordance with the accounting policies set out in note I to the accounts and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and °Accounting and Reporting by Charities- Ststement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021" (effective l January 20191. Definition- "the Council of Trustees" be considered in the same context. "Council Members" "Trustees" or "trustees" when used in this report should Objectives and activities The charitable objectives of RSSKL as stated in its Memorandum of Association are: To establish and carry on at Kings Langley a School where pupils, scholars and students may obtain on moderate terms a sound general education upon the principals inaugurated by Rudolf Steiner. In pursuance of RSSKL'S charitable objects, the Trustees remain committed to facilitating, in collaboration with Waldorf UK (formerly the Steiner Waldorf Schools Fellowship "SWSF") and the international Steiner Waldorf movement, the establishment at the earliest opportunity of a Steiner Waldorf school on the RSSKL site by suitable operator. The Trustees, vision and strategy for achieving this has been communicated to the RSSKL Association previously and is being implemented. Charity Commission The Trustees have been in regular dialogue with the Charity Commission to keep them updated on all aspects of the Charity's activities. Changes in Management and Staffing The following members of the Council of Trustees were active Council Members on 31 July 2023 and are still active today- Stefanie Cook Sophie Henderson Annie Marcuson Robert Monk is employed by RSSKL a5 Slte manager. He works full time and lives on site. Legal advice to the Charity has been provided by Russell Cooke LLP since the beginning of 2021. The Charity also obtains occasional legal, property, strategic and financial advice from experienced volunteers with relevant backgrounds.
RSSKL LTD COUNCIL MEMBERS, REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 JULY2024 Achievements and performance Financial stabili A detailed strategic and financial plan was developed by the Trustees with suitsble financial input in early 2021, which concluded that RSSKL'S historic liabilities can be settled if properties owned by the Charity which are not critical to realising its objects are sold off. This mainly refers to residential units that have been occupied by teaching stsff in the past in the Grade Il* listed Old Priory complex (including the Old Priory itself) and Coombe House (formerly known as The Cottagel. Upon the sale of Coombe House at auction in November 2023, the Charity was able to pay back the É360,OCQ bridging facility provided by the German Freunde der Erziehungskunst in January 2024, which was secured against one of the residential properties. The Charity has no other indebtednes5 at present, though there remains the Charity's long-term liability from its Mercury Provident Pension Scheme deficit (see page 51. The Trustees have continued to generate alternative sources of income from the RSSKL site. mainly from short- term rental contrarts with film production companies. This provides income to help cover some of the operating expenses of the site. while the sale of The Priory to a property developer is being finalised. The Trustees have applied for temporary change of use in connection with these activities. The application was refused, and the Charity is in the process of appealing the Council's decision. If the appeal is unsuccessful this could affect the extent of rental activity which the Charity is able to perform from the site. With effett from April 2025, private schools in England with charitsble status will lose their eligibility for business rates charitable relief. subjett to legislation. This is likely to increase the Charity's exposure to business rates going forward.
RSSKL LTD COUNCIL MEMBERS, REPORT (INCLUDING DIREcfoRS' REPORT) FOR THE YEAR ENDED 31 JULY2024 Activities in ursuance o RSSKL'S charitable ob ects The Charity has continued to be in close dialogue with Waldorf UK to develop Strategic plans for how the RSSKL site with its remaining assets. once the Charity's pension deficit has been satisfied (see page 51, can provide a basis for a new Steiner Waldorf school to be established by a suitable operator. in line with the Charity's objetts. Waldorf UK ha5 set up a new Land Trust to hold and steward the Charity's land assets in future, and is in the process of identifyir)g suitable Trustees for it. The Charity also continues to offer its properties for use by the Steiner community and ft>r local community artivities that could a5SiSt a new Steiner Waldorf school being successfully established in the future. The Kings Langley Biodynamic Allotments group (which utilises and popularises Rudolf Steiner's methodolo8y of biodynamic agriculture) remains a very artive voluntary setting on the site. In addition, there were numerous Ioc31 groups anij attivities linked to, or supportive of. the Steiner community which continued to operate on the site, including- Anthroposophical study group A third Advent Fair forthe RSSKL community organised by the St Albans Steiner Kindergarten Steiner/Waldorf Parent and Child group Seasonal apple picking with the community Pressing apples to make juice for the local community. raising funds for the Parent and Child group Biodynamic allotments with seasonal community activities Lumina Choir rehearsals Cricket practice sessions Football classes Boot camp sessions Kings Langley Community choir practice
RSSKL LTD COUNCIL MEMBERS, REPORT {INCLUDING DIREcfoRS' REPORT) FOR THE YEAR ENDED 31 JULY2024 Pro Sales and Use of Funds The Trustees have continued to work with local planners and Historic England regarding the proposed sale of ancillary properties. The relevant surneys and reports necessary before bringing the residential units to the market were all completed (including settion 119 Charities Act report5 by chartered surveyors Rumball Sedgwick). The sale of The Priory and associated buildings within its curtilage (Priory complex) is progressing. The Trustees have continued working with a reputable property developer and his company, District and Circle Ltd, towards exchange of contracts, based on agreed Heads of Terms. In parallel, the Trustees have come to an agreement with the Christian Community regarding the access road and the neighbouring parcel of land. This is taking longer than experted given the complexity of the transaction, although the Trustees are confident to exchange contracts in the weeks to come and complete the sale by April 2025. Coombe House was initially marketed by Proffitt & Holt and then by Castles from 28 December 2022 until September 2023, at which time an independent property expert was appointed to support RSSKL in going to auction. Coombe House was sold in November 2023 at auttion for £489.OIX). Rumball Sedgwick provided an addendum report to confirm that progressing with the sale at this reduced sale price was in the interest of the Charity. result of the sale of Coombe House. the Trustees were able to pay back the loan to the Freunde der Erziehungskunst and carry out the segregation of the Charity's pension liabilities from the Mercury Provident Pension Fund scheme in a first step towards paying off the entire pension deficit, once The Priory complex sale completes. Mercu Provident Pension Fund The RSSKL school's historic pension fund, like many other defined benefit schemes in the UK, 15 running at a deficit. The deficit is the result of a combination of factors, including contribution5 being underpaid in past years, the cost5 of running the fund being capitalised, the Charity being part of a group scheme {which means that if any company in the group defaults, other scheme employers have to pick up the deficit) and scheme participants living longer with investment returns not covering the forecast requirements. The Charity entered into an agreement with the Pension Trustee in 2Crf)9 to make monthly catch-up payments towards eliminating this deficit. and has done so since. Monthly contributions to the scheme are currently payable at approximately £10,000. These catch-up payments are reviewed every years and adjusted accordingly. In December 2023, after the sale of Coombe House, the Trustees entered into an agreement with MPPS to segregate RSSKL from the Main Section of the MPPS. As a resutt, RSSKL is not any longer liable for pension obligations of other employers in case they go into administration. In its initial valuation report, released in August 2024, the actuary of MPPS estimated the shortfall of the RSSKL section of the Scheme at around £1,160k for December 2023 on a statutory ISFOI basis. With a funding level of the RSSKL settion at 51%, the current shortfall remains very sensitive to the discount rate and hence, to the development of UK gilts, among many other fattors. It is the intention of the Trustee5 to cover the deficit of the segregated sectlon in full once the Priory Complex has been sold and sell the RSSKL section for run off to a third party as soon as practicable thereafter. The MPPS actuary estimated the shortfall on a buy-out solvency basis for December 2023 at around £927k. The Trustees are working closely with the TrLSStees of the MPPS on this matters.
RSSKL LTD COUNCIL MEMBERS, REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR EAIDED 31 JULY2024 Flnancial review Statement of Flnanclal Activities The proceeds of the sale of Coombe House have been applied by the Trustees to.. il pay back the loan to the Freunde der Erziehungskunst in January 2024. The Trustees would like to thank in particular the Executive Direttor of Freunde der Erziehungskun5t. Nana Goebel. lil Carry out the segregation of the Charity's pension liabilities from the Main Section of the MPPS in a first step towards paying off the entire pension deficit, once the sale of The Priory complex completes {see page Sl. Structure. governan and mana8ement The Charity is constituted a5 a company limited by guarantee. It is governed by a Memorandum and Articles of Association. The company's Articles of Association require that an AGM be held once a year. The As50ciation'5 AGM for the period ended 31 July 2024 was a hybrid one, held in the Theatre at the former school and online on 8th July 2024. It was attended by 17 members. The association had 82 members as of 31 July 2024. Council Members- S Cook S Henderson A Marcuson Auditor In accordance with the company's articles, a resolution proposing that TC Group be reappointed as auditor of the company will be put at 3 General Meeting. Disclosure of infomiation to auditor So far as the trustees are aware, there is no relevant audit information of which the charity's auditors are unaware. Additionally, the trustees have taken all the necessary steps that they ought to have taken as trustees in order to make themselves aware of all relevant audit information and to establish that the charity's auditors are aware of that information. The Council Members, report was approved by the Board of Council Members. S Cook Council Member S Henderson Councll Member A Marcuson Councll Member Date: ......25th Ap.n12025
RSSKL LTD srATEMENT OF COUNCIL MEMBERS, RESPONSIBILITIES FOR THE YEAR ENDED 31 JULY2024 The Council Members, who are also the directors of RSSKL Ltd for the purpose of company law, are responsible for preparing the Council Members, Report and the accounts in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Council Members to prepare accounts for each financial year which give a true and fair view of the stste of affairs of the charity and of the incoming resources and application of resources. including the income and expenditure. of the charitable company for that year. In preparing these accounts, the Council Members are required to.. selert suitable accounting policies and then apply them consistently- observe the methods and principles in the Charities SORP; make judgements and estimate5 that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subjert to any material departures disclosed and explained in the accounts,. and prepare the accounts on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. The Council Members are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
RSSKL LTD INDEPENDENT AUDITOR'S REpoKr TO THE MEMBERS OF RSSKL LTD Opinlon We have audited the financial statements of RSSKL Ltd (the 'charity'l for the year ended 31 July 2024 which comprise the ststement of financial activities, the balance sheet. the statement of cash flow5 and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard opplicable in the UK and Republic of Irelond (United Kingdom Generally Accepted Accounting Prattice). In our opinion, the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 July 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 Prartice; and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's re5ponsibilitiesfvr the audit of the finoncial 5totements sertion of our report. We are independent of the charity in accordance with the ethical quirementS 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. Material uncertainty related to golng concern We draw attention to note 1.2 in the financial statements which describes the current uncertainty surrounding the issues facing the School in the current climate. As stated in note 1.2. these events indicate that a material uncertainty exists that may cast significant doubt on the charity's ability to continue as a going concern. Our opinion is not modified in respett of this matter. In auditing the financial statements, we have concluded that the Council Members, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our responsibilities and the responsibilities of the Council Members with respect to going concern are described in the relevant settions of this report.
RSSKL LTD INDEPENDENT AUDITOR'S REPORT (CONTINUEDI TO THE MEMBERS OF RSSKL LTD Other inforniation The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Council Members are responsible for the other information contained within the annual report. Our opinion on the financi315tatements 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 50, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit. or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatement5. 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 fatt. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Art 2006 In our opinion, based on the work undertaken in the course of our audit: the information given in the Council Members, report for the 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 Council Members, report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exceptlon In the light of the knowledge and understanding of the charity and its environment obtsined in the course of the audit, we have not identified material misstatements in the direttors, report included within the Council Members, report. We have nothing to report in respect of the following matters in relation to which the Companies Art 26 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by u5. or the financial statements are not in agreement with the accounting records and retums; or certain disclosures of trustees, remuneration specified bylaw are not made: or we have not received all the information and explanations we require for our audit; or the Council Members were not entitled to prepare the financial statements in accordance with the small Companies regime and take advantage of the small companies, exemptions in preparing the Council Members, report and from the requirement to prepare a strategic report. Responslblllties of Councll Members As explained more fully in the Statement of Council Members, responsibilitles, the Council Members, who are also the directors of the charity for the purpose of company law. are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Council Members determine is necessary to enable the preparation of financial statements that are free from material misststement, whether due to fraud or error. In preparing the financial statements, the Council Members are 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 Council Members either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
RSSKL LTD INDEPENDEMf AUDifoR'S REPORT (CONTINUED) TO THE MEMBERS OF RSSKL LTD Auditor's responsibillties for the audlt of the financial statements We have been appointed a5 auditor under and report in accordance with the Atts and relevant regulations made or having effect thereunder. Our objettives are to obtain reasonable assurance about whether the financial statements as a whole are fe from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS {UKI will always detett a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if. individually or in the aggregate, they could reasonably be expetted to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud. are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. Extent to which the audit was considered capable of deterting irregularities. includlng fraud The objectives of our audit. in respect to fraud. are: to identify and assess the risks of material misstatement of the financial statements due to fraud,. to obtain SLrfficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses- and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detertion of fraud rests with both those charged with governance of the entity and its management. Our approach was as follows: We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial ststements from our general commercial and sector experience, and through discussion with the directors and other management las required by auditing standards). and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations; We identified the following areas as those most likely to have such an effect.. General Data Protection Regulation IGDPRI: fraud and bribery and corruption. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence. if any. We considered the legal and regulatory frameworks direttly applicable to the financial statements reporting framework IFRS 102 and the Charities Act 2011) and the relevant tax compliance regu13tions in the UK,. We considered the nature of the company's operations. the control environment and business performance, including the key drivers for management's remuneration; We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit; We considered the procedures and controls that the group has established to address risks identified, or that otherwise prevent, deter and detect fraud- and how senior management monitors those programmes and controls. 10-
RSSKL LTD INDEPENDENfAUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF RSSKL LTD Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each Identified fraud risk, These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation. performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error. 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 lirregularitiesl is from the events and transactions reflected in the financial statements. the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council'5 website at: http.'/lwww.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the charitable 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 might state to the charitable company's members 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 charitable company and the charitable company's members as a body. for our audit work, for thi5 report, or for the opinions we have formed. Davld Martin KA (Senior Statutory Auditor) for and on behalf of TC Group Statutory Auditor Office.. Lewes r4r,..I 2i> is 11
RSSKL LTD srATEMENT OF FINANCIAL AcfiviTIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY2024 Unrestrfrted Restrlcted funds funds 2024 2024 Totsl Unrestrfcted Restrlrted funds funds 2023 2023 Total 2024 2023 Notes Income from: Donations and legacies nvestments 1,500 600,307 1,500 600,307 2,703 394,815 2,703 394,815 Total income 601,807 601,807 397,518 397,518 Expendlture on: Charitable activities Other expenditure 437,620 46,417 437.620 46,417 499,153 3,740 499,153 3,740 io Total expenditure 484,037 484.037 502,893 502.893 Net gains/llossesl on investments li 139,0431 {39.0431 1395.IX)01 1395,0001 Net income/{expenditure) 78.727 78,727 1500,3751 {500,3751 Other recogni5ed gains and losses: Actuarial gain5 on defined benefit pension scheme5 32,536 32,536 384,000 384,000 Net movement in funds 111.263 111,263 {116,375} 1116,3751 Reconciliatlon of funds: Fund balances at l August 2023 1.242,522 98,270 1,340,792 1,358,897 98,270 1,457,167 Fund balances at 31 July 2024 1,353,785 98,270 1,452,055 1,242,522 98,270 1,340.792 The statement of financial activities includes all gains and losses reco8nised in the year. A15 income and expenditure derive from continuin8 activities. 12-
RSSKL LTD BALANCE SHEEr ASAT31 JULY 2024 2024 2023 Notes Flxed assets Tangible assets Investment property Investments 13 966,437 1,530.000 3,619 1,021,558 2,035.000 6,654 14 15 2,500,056 3,063.212 Current a55ets Debtors Cash at bank and in hand 16 9.479 156.291 31.259 66.445 165,770 97.704 Creditors: amounts falling due within one vear 18 53.771 563,124 Net current assets/lliabilities} 111,999 1465,4201 Total assets less current liabilities 2.612.055 2,597.792 Provisions for liabtlitles 11.160,CK)01 11,257,000) Net assets 1.452,055 1,340,792 The funds of the tharity Restrirted income funds Unrestricted funds 21 98,270 1.353.785 98.270 1,242,522 1.452.055 1,340.792 These financial statements have been prepared in accordance with the provisions applicable to companies subjett to the small companies regime. The financi31 statements were approved by the Council Members on 2S.¢h.hp.rll.2.025 S Cook Trustee S Henderson Trustee Marcuson Trustee Company registration number 00395056 (England and Wales) 13
RSSKL LTD STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY2024 2024 2023 Notes Cash flows from operatln8 activities Cash absorbed by operations 26 {745,2941 1405,5251 Investing artivities Purchase of tangible fixed assets Proceeds from disposal of investment property Investment income received 15251 468,992 600.307 394,815 Net cash generated from investing activities 1,068,774 394.815 Financing activities Repayment of borrowings 1233,6341 25,762 Net cash (used in)/generJted from financing activltles 1233,6341 25,762 Net increase in cash and cash equivalents 89,846 15,052 Cash and cash equivalents at beginning of year 66,445 51,393 Cash and cash equivalents at end of year 156.291 66,445 14-
RSSKL LTD NOTES TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31 JULY2024 Accountin8 policies Charity infomiatlon RSSKL Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is Langley Hill, Kings Langley, Hertfordshire, WD4 9HG. 1.1 Accounting convention The financial statements have been prepared in accordance with the charity's governing document. the Companies Art 2006. FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" I'FRS 102,1 and the Charities SORP 'Accounting and Reporting by Charities- Ststement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021" (effective l January 20191. The charity is a Public Benefit Entity as defined by FRS 102. The accounts are prepared in sterling, which is the funrtional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical c05t convention. modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below. 1.2 Going concern These financial statements are prepared on the going concern basis. The Council Members have a reasonable expertation that the charity will continue in operational existence for the foreseeable future. however. the Council Members are aware of certain material uncertainties which may cast doubt on the charity's ability to continue as a going concern. The Council Members, report discusses the pressures that the charity has been under over the past few years and states their strategy for the future. The members, are preparing for the sale of certain ancillary residential properties owned by the charity to gather sufficient funds to enable it to meet its Current liabilities and achieve an orderly settlement of all outstanding liabilities, including, amounts due on exit from the pension scheme. On completion of the sale of those assets. the educational assets of the charity including any remaining funds, restricted for educational purposes, and any amounts owed to it, will be transferred to a successor charity in order to enable the school to operate as intended. Once the transfer is complete, the intention of the members, is to voluntarily wind up the charity on a solvent basis. 1.3 Charltable funds Unrestricted funds are available for use at the discretion of the Council Members in furtherance of their charitable objettives. Restrlcted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restrirted funds are set out in the notes to the financial statements. 1.4 Income Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. 15-
RSSKL LTD NOTES TO THE FINANCIAL sfATEMEKfs (CONTINUED) FOR THE YEAR ENDED 31 JULY2024 Accounting policies (Contlnued} Cash donations are recognised on receipt. Other donations are recognised once the charity 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 charity has been notified of an impending distribution, the amount is known, and receipt is expetted. If the amount is not known, the legacy is treated as contingent asset. Fundraising income is shown gross with the associated costs included in costs of fundraising, 1.5 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured lIablY. Charitable expenditure comprises those costs incurred by the charity in the delivery of its artivitie5. It includes both costs that can be allocated direttly to such activities and those costs of an indirect nature necessary to supportthem, including allocated governance costs. Governance costs includes those costs associated with meeting the constitutional and Statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity. All costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly; others are apportioned on estimated usage as a proportion of directly attributable expenditure. 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Items of a capital nature with a useful economic life in excess if 12 months and costing over £500 are capitalised. Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its experted useful life. as follows.. Freehold property Furniture & fittin8S Equipment & computer Motor vehicles 1% & 4% per annum on cost IOOA per annum on the reducing balance 10% & 25% per annum on the reducing balance 25% on the reducing balance The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceed5 and the carrying value of the asset, and is recognised in the statement of financial activities. 16-
RSSKL LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED FOR THE YEAR ENDED 31 JULY2024 Accountln8 poli¢ies (Contlnuedl 1.7 Investment propertles Investment property, which is property held to earn rentsls and/or for capitsl appreciation, is initially recognised at cost, which includes the purchase cost and any dirertly attributable expenditure. Sub5equÈntly it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss. 1.8 Hxed asset investments Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net incomellexpenditurel for the year. Transaction costs are expensed as incurred. 1.9 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.10 Financial instruments The charity has elected to apply the provisions of Sertion 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issue5. of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Basicfinancial 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 at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial a55ets classified as receivable within one year are not amortised. Basicfinancial liobllitles 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 measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised c05t, Using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due withln one year or les5. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transartion price and subsequently measured at amortised cost using the effective interest method. 17-
RSSKL LTD NOTES TO THE FINANCIAL sfATEMENTS IcopifiNUED) FOR ThE YEAR ENDED 31 JULY2024 Accounting policies (Continued) 1.11 Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employee's SeICe$ are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 1.12 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. The charity belongs to the Mercury Provident Pension Scheme which is a defined benefit scheme. This is a collective scheme for a number of employers. The pension costs charged in the f5nancial statements represent the contributions payable by the charity during the year. The Mercury Provident Pension Scheme is now closed and with effect from l January 2009 existing members at that date were given the opportunity to transfer to a defined contribution scheme adrninistered by The Pension Trust Company. It is not possible to identify the charity's Share of the net assets and liabilities of the defined benefit pension scheme. The provision of the liability is recognised on the basis of the estimate of the debt due at that time provided by the scheme's actuary, with the net movement on the provision recognised in income/ (expenditure) for the year. 1.13 Value added tax VAT is not recoverable by the charity and as such is included in the relevant costs in the Ststement of Financial Activities. Critical accountln8 estimates and judgements In the application of the charity's accounting policies, the Council Members are required to make judgements, estimates and assumptions about the carrying 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 relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate 15 revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Crltical Judgements Depreciatlon The charity exercises judgement to determine useful lives and residual values of intangibles, property, plant and equipment and investment property. The assets are depreciated down to their residual values over their estimated useful lives. 18-
RSSKL LTD NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY2024 Critlcal accountlng estimates and Judgements (Continued) Bad debt provision The charity reviews each individual debt at the year end and forms a judgement as to the likelihood of covery at that date. Where, in the opinion of the charity, there is sufficient uncertainty as to reci)very an appropriate provision is made against the debt. Pension liability valuatlon The charity reviews at each reporting date the estimate of debt due on ceasing participation with the multi- employer defined benefit pension scheme. The scheme actuary provides to management an estimate of the Section 75 debt that would be payable on ceasing participation, without segregating. This estimate reflects the current membership of the scheme and the market conditions at the time of valuation. Income from donations and legacies Unrestricted funds 2024 Unrestrlcted funds 2023 Donations and gifts 1.5¢)0 2,703 Income from investments Unrestricted Unrestricted funds funds 2024 2023 Rental income Interest receivable 599.690 617 394,619 196 600,307 394,815 19-
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RSSKL LTD NOTES TO THE FINANCIAL STATEMEp¥fs (CONTINUEDI FOR THE YEAR ENDED 31 JULY2024 Support costs allocated to artivities 2024 2023 Staff costs Bad debt provision Bank charges and interest Legal and professional Loan interest Governance costs 25,977 12.292 13521 {45,5351 17 17.590 19,406 40 46,006 15,392 9,989 80.844 Analysed between: Support costs Governance costs (7,601) 17.590 65,452 15,392 9,989 80,844 2024 2023 Governante costs comprise: Audit fees 17,590 15,392 17.590 15,392 Net movement in funds 2024 2023 The net movement in funds is stated after chargin81lcrediting)'. Fees payable for the audit of the charity's financial Statements Depreciation of owned tangible fixed assets Loss on disposal of investment property 17.590 55,646 16,008 15,392 29.387 Councll Members None of the Council Members {or any persons connected with them) received any remuneration or benefits from the charity during the year. No expense5 were reimbursed to the trustees during the year12023 None} The key management personnel for the year were the Trustees and their remuneration wa5 £nil. 21
RSSKL LTD NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED FOR THE YEAR ENDED 31 JULY2024 Employees The average monthly number of employees durlng the year was: 2024 Number 2023 Number Administration & Support Employment costs 2024 2023 Wages and salaries Other pension costs 24.617 111,368 19.406 124,950 135,985 144.356 There were no employees whose annual remuneration was more than £60.000. 10 Other Unrestrirted Unrestricted funds funds general general 2024 2023 Financing costs 46.417 3,740 46.417 3,740 11 Net galns/(losse5) on investments Unrestricted Unrestricted funds funds general general ZOZ4 2023 Net gainllloss) on investments Fair value movement of investment properties Loss on disposal of investment property 13,0351 {20,000) 1395,CN)O} {16,008) {39,0431 (395,0001 22-
RSSKL LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY2024 12 Taxation The charity is exempt from tsxation on its activities because all its income is applied for charitable purposes. Tanglble flxed assets Freehold propertv Fumlture & Ilttin85 Equlpment & Motor ¥•hl¢t•s tomputer Total Cost At l August 2023 Additions Disposals 1,395,CQS 297 626.542 149,113 228 {5,108} 21,243 2,191,903 525 16,1441 1301,868} {290,6161 At 31 July 2024 1,395,302 335,926 144.233 15.099 1.890.560 Depreciation and impaimient At l August 2023 Depreciation charged in the year Eliminated in respect of disposals 416,856 51,090 584,544 4,203 1290,6161 147.816 325 15.1081 21.129 1,170.345 28 55.646 16.1441 {301,8681 At 31 July 2024 467,946 298.131 143.033 15.013 924,123 Carrying amount At 31 July 2024 927.356 37,795 1,200 86 966.437 At 31 July 2023 978.149 41,998 1,297 114 1.021,558 14 Investment property 2024 Falr value At l August 2023 Disposals Net gain5 or105ses through fair value adjustments 2.035,000 1485,0001 {20,0001 At 31 July 2024 1,530,000 The fair value of the investment property has been arrived at on the basis of a valuation carried by the Trustees. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. -23-
RSSKL LTD NOTES TO THE FINANCIAL sfATEMEMfs (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 14 Investment propertv (Continued) If investment properties were stated on an historical cost basis rather than a fair value b3SlS, the amounts would have been included as follows.. 2024 2023 Cost Accumulated depreciation 81,808 40.904 87,429 43.795 Carryin8 amount 122.712 131,224 IS Fixed asset Investments Unlisted investments Cost or valuation At l August 2023 Valuation changes 6,654 {3.0351 At 31 July 2024 3,619 Carrying amount At 31 July 2024 3.619 At 31 July 2023 6,654 The investment represents 135 Depository Receipts of Triodos Bank BV. They had a market value of £31.80 at 31 July 2024 translated at a rate of 0.8430. 16 Debtors 2024 2023 Amounts falling due within one year: Trade debtors Other debtors Prepayments and accrtjed income 12,294 7,154 11,811 9,479 9,479 31,259 -24-
RSSKL LTD NOTES TO THE FINANCIAL STATEMENTS {coNfiNUED) FOR THE YEAR ENDED 31 JULY2024 17 Loans and overdrafts 2024 2023 Other loans 233,634 Payable within one year 233,634 18 Creditors: amounts falling due wlthin one year 2024 2023 Borrowings Other taxation and social security Trade creditors Other creditor5 Accruals and deferred income 233,634 1791) 101,611 54,471 174,199 200 8,295 20,088 25.188 53,771 563,124 19 Provisions for liabillties 2024 2023 Notes Retirement benefit obligations 1,160,000 1,257,000 1,160,000 1,257.000 The provision made in the accounts represents the amount which will fall due at the point that the charity eases participating in the scheme. 20 Retirement benefit schemes Defined contrlbutlon schemes Rudolf Steiner School Kings Langley Llmited makes contributions to a defined contribution stakeholder scheme. The charge to the Statement of Financial Activities in respert of defined contribution schemes was £1,36012023 - £7811. -25-
RSSKL LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY2024 20 Retirement benefit schemes (Continued) Defined benefit schemes The charity and other employers participate in the Mercury Provident Pension Scheme, that provides benefits on the basis of final pensionable pay for participants. The assets of the scheme are held separatelv from those of the charity and invested by a pension fund management companv. Contributions continue to be made each month to ensure that the liability does not increase. Total contributions for the year were £110,973 in addition to the pension levy of £1,817. 21 Restrirted funds The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used. At l AugustAt 31 July 2024 2023 Bufsary fund Classroom funds K L Concert fund Hockey Club Teacher wish list Music department legacy 63.250 28,666 2.877 1.352 500 1,625 63,250 28,666 2,877 1,352 500 1.625 98,270 98,270 Previous year: At l AugustAt 31 July 2023 2022 Bursaryfund Classroom funds K L Concert fund Hockey Club Teacher wish list Music department legacy 63,250 28,666 2,877 1,352 s 1,625 63,250 28,666 2,877 1,352 500 1,625 98,270 98.270 -26-
RSSKL LTD NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED FOR THE YEAR ENDED 31 JULY2024 21 Restricted funds Icontlnued) Restrirted fund5'. Bursary fund to assist with children's education in extraordinary circumstances Classroom funds are donations made by parent5 for use by the class K L Concert fund organisation of concerts Hockey Club donations made by parents towards the club's activities Teacher wish list donations towards teachef's wish list Music department legacy- donation made by an individual towards the department's activities The Council Members have undertaken a review of restritted funds. Transfers from unrestricted to restricted funds have been processed to eliminate any shortfall in such funds. As the charity is currently not operational, the Council Members intend to transfer these funds to a new entity which will re-commence activities and therefore spend these funds on their intended purposes. 22 Analysis of net assets between funds Unre5trirted Restricted funds funds 2024 2024 Total Unrestrirted fund5 2023 Restritted funds 2023 Total 2024 2023 Fund balances at 31 July 2024 are represented bv: Tangible 355ets Investment properties Investments Current assets/lliabilitiesl Provisions and pensions 966,437 1.530,000 3,619 966.437 1.021.558 1,530,000 2,035,000 3,619 6.654 1,021,558 2.035,000 6,654 13,729 98,270 111,999 1563.690) 98,270 1465,4201 11,160,000) 11.160.000) 11,257,OC(J) 11,257.0001 1,353,785 98.270 1.452,055 1,242,522 98,270 1.340,792 Events after the reportlng date The trustee5 intend to sell the remaining investment property after the year end for an amount equal to its fair value at the balance sheet date. 24 Related party trdnsactions There were no disclosable related party transartions during the year12023 - none}. -27-
RSSKL LTD NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY2024 25 Analysls of changes in net fundslldebt) At IAuourt 2023 Cashflows At 31 July 2024 Cash at bank and in hand 66.445 89,846 156,291 Loans falling due within one year 1233,634} 233,634 1167,1891 323.480 156,291 26 Cash 8enefated from operations 2024 2023 Surplus/ldeficitl for the year 78,727 1500,3751 Adjustments for: Investment income recognised in statement of financial activities Loss on disposal of investment property Fair value gains and losses on investment properties Fair value gains and losses on investments Defined benefit pension scheme costs Depreciation and impairment of tangible fixed assets {600,3071 16,008 20.000 3,035 164,4641 55.646 1394,8151 395.000 29.387 Movements in working capital.. Decrease in debtor5 (Decreasellincrease in creditors 21.780 1275,7191 13,337 51.941 Cash absorbed by operations 1745,294} 1405.5251 -28-