COMPANY REGISTRATION NUMBER.. 207173 REGISTERED CHARITY NUMBER.. 312052 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 31 JULY 2022 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED YEAR ENDED 31 JULY 2022 Contents Page Governors, Officers and Advisers Report of the Board of Governors 3-12 Report of the Auditors 13-15 Cor>solid3ted Statement of Financial Activlties 16 Consolidated Balance Sheet 17 Frensham Heights Educational Trust Balance Sheet 18 Consolidated Statement of Cash Flows 19 Notes to the Consolidated Cash Flow Statement 20 Notes to the Consolidated Financial Statements 21-38 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED GOVERNORS, OFFICERS AND ADVISERS YEAR ENDED 31 JULY 2022 DIREcfoRS AND GOVERNORS William Bird Ichairl Gerard Holden Ivlce Chair retired 30 November 20211 Angus Carlill ITreasurerl Martin Lupton Iretired 31 January 20221 Sally Marriott William Marriott Katherine Poulsorn Jackie Sullivall Philip Ward Ivice Chairl Richard Fry Katherine Love FINANCE AND HUMAN RESOURCESCOMMIThEE Angus Carlill (Chairl William Bird (Ex Officiol Richard Fry Katherine Poulsom Jackie SuS1ivan GROUP 5 Idlseontinued July 20221 William Bird Ichairl Angus Carlill (Treasurer) Gerard Holden Ivice Chairl Rick clarke (Headl John Pratten Ilnterirn Bursar) lappointed November 20211 EDUCATION COMMIThEE Philip Ward (Chairl Richard Fry Sally Marriott William Bird IEX Officiol Angus Carlill (Ex Officiol Gerard Holden Iretired 30 November 20211 HEAD Rick Clarke INTERIM BURSAR & COMPANY SECRETARY John Pratten lappointed November 20211 Note.. Officers li,e. Chair, Vice Chair and Tre8surerl are ex-officio members of all Board committees. FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED GOVERNORS, OFFICERS AND ADVISERS YEAR ENDED 31 JULY 2022 REGISTERED OFFICE Frensham Heights Rowledge Farnham Surrey GU104EA COMPANY NUMBER REGISTERED CHARITY 207173 312052 BANKERS HSBC 83nk plc 12A North Street Guildford Surrey GUI 4AF SOLICITORS GBH Law (trading as Goodyear Blackle Herrington Solicitors) 7-81 nnovation place Douglas DrDie Godalming Surrey GU7 llx AUDITORS Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW INSUPANCE BROKERS Marsh Insurance Brokers Limlted Rockwood House 9-17 Perrymount Road Haywards Heath West Sussex RH16 3DU FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31JULY 2022 The Governors of Frensham Heights Educatlonal Trust Limited, who are also the Director5 and Charity Trustee5, 3re pleased to present their annual directors, report together with the consolidated financial statements of the charity and its subsidiary for the year ended 31 July 2022 which are also prepared to rneet the requirements for a directors, report and accoLJnts for Companies Act purposes. The financial statement5 comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 3nd Accountln8 aTrd Reportiri8 by Charities-. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting standard applicable in the UK and Republic of Ireland IFRS 1021. DIRECTORS, REPORT CONSTITUTION AND OBIEcrs Frensham Heights Educational Trust Limited was founded under Memorandum and Articles of Association dated Iojuly 1925 as amended or14 April 1950, 22 Jur¥e 1996, 11 January 2006, 5 December 2020, and redrafted 2022 for acceptance December 2022. It 15 constituted 35 a company limited by shares, registered in England, No. 207173, and is registered with the Charity Commission under Charity No. 312052. The Charity's prir7cipal Objects, as set out in the Memor3ndum of Association, are the advancement of education, including the provision of a school for boys and girls al Frensharn, the holding of exhibitions, classes or conferences, whether general, professional or technlcal, and support to other charitable bodies. There has been no change to the Objects during the year, In furtherance of these Objects and for the public benefit, the 5choDI has established and adminlstered during the year bursary awarcls and other benefaclions, and acts as the trustee and manager of property and gifts given or established in pursuance of these Objects. STRucfuRE, GOVERNANCEAND MANAGEMENT Contact Informatlon The Governors, Head, Company Secretary, and principal address crf the charity are as listed on Page l. Details of the Charity's professional adviser5 are also listed on Page 2. Group Structure and Relationships The Charity has a wholly owned non-charitable subsidiary, Frensh3m Heights Enterprises Limited, (Company number 28668641 which was incorporated in 1993. Its principal activity Is managing the hiring and letting of facilities at the School. Board of Governors One third of all Governors retire by rotation each year lincluding any Goverrror who is an officer). Any retiring Governor will be available for immediate re-election and the expectation is that Governors will serve either two or three terms Df three years each. The Board instigated a review of their governance by The Association of GDvernin8 Bodies of Independent Schools IAGBISI in lune 2022. Adjustments to the Committee structure and other adjustments will be instigated during 2022-23. Two Governors retired during the year and a Governor recruitment plan was instigated following the AGBIS review. A Register of skills is maintalned for the appointed members of the Board and this Informatlon informs the decisions of the Board both in determining the skill sets and experience sought through advertising of forthcoming vacancies, and in the recommendations for succession planning and FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2022 Board appointments. Members of the Governing Body are appointed against the skills register which is considered and approved by the Governing Body on an annual basis. Potential Govemor5 undergo a series of interviews and briefings before attending the Board as observer5,' after which they may be appointed. New Governors undergo induction sessions with the Chair, the Head and Company Secretary to brief them on.. their legal obligations under charlty and company law, the Charity Commission guidance on public benefit, and inform them of the content of the Memorandum and Articles of Association, the committee and decision-making processes, the Strategy and recent f inancial performance of the charity. New Governors are given a tour of the school to meet key employees and they are encouraged to attend appropriate external training events to facilitate the undertaking of their role. All Governors have received training or attended external briefings by professional advisors throughout the period. Details of relevant courses and semlnars are regularly circulated to 311 Governors. Governance Code The Trustees are aware of the charity Governance Code published in 2017, and updated in March 2021, which sets out the p￿ncIPleS and recommended practice for good governance within the sector. During 2022 the Charity began a review of current governance arrangements against the principles within the code and prepared an action plan to address areas identified for best-practice improvements. That review of governance arrangement is kept under constant review and modifications and improvements are continuousw implemented. Related partle5 and co-operation with other organisations Nonp of the Governors has reccived remuneration or other benefit from their work willi the school i the year. Any connection k)elween a trustee or senior manager of the school must be disclosed to the full Board of Governors in the same way as any other contractual relationship with a related party. Orgarnlsatlonal Manageynent The Governors, who are also the Charity Trustees, are legally responsible for the general policy of the School and for the overall management and control of the School. The Governors meet as a Board at least three times a year. The work of overseeing the implementation of policies is carried out by committees. During the year a Remuneration Cofflmittee was formed to discuss the Head's and Bursarfs salary,. 3nd an Estate5 Committee was formed, which will meet prior to the Finance Committee and be extant during the School's upcoming building development phase. All other committees sit a minimum of three times per year. All Committees are being Fationali5ed following the AGBIS review. Durlng the previous year and in direct response to the COVID-19 pandemic the Board extended the remit of its Group 5 IG51, a steering group of Governors, the Head and Bursar. The G5 met regularly through the pandemic period, with major decisions being referred to the board for approval., G5 was disbanded In June 2022 following the AGBIS review. The committees and their membership are listed on Page l. The Governor5 also hold an annual strategy meeting to examine and agree key issue5 impacting the School. At least one Governor sits on each of.. the School's Health and Safely Committee,. the Parents, Committee,. and the Staff Common Room Committee. The day-to-day management Df the School is delegated to the Senior Leadership Team ISLTI, which is comprised of the Head, Interim Bursar, Deputy Head, Deputy Head (Acadernicl and Head of Junior School. The Head and the Interim Bursar are invited ex-officio to all Board and committee meetings. The p3y and remuneration of the Head is set by the Remuneratlon Cor¥)mitlee having considered independent benchmark reports across the independent school education sector and agreed by the Main Board at their Spring or Summer Board meetings, In November 2021, a new Interim Bursar was FRENSHAM HEIGHT5 EDUCqTIONAL TRUST LIMITED REPORT OF THE B014RD OF GOVERNORS YEAR ENDED 31 JULY 2022 appointed to replace the Chief Operating Officer. Recruitmer>t for a permanent Bursar commenced in November 2022. AIMS. OBJECTIVES ANDAcnviTIES Public Benefit Aims aftd Activities In meeting its Qbjects, the School's public benefit aim is to provide a world class progressive education that emph35ise5 progressive values and focu5e5 on students as individuals to brlng out their strengths, wlth creative and performing arts given equal status alongside more tradition31 academic subjects and sport. In line with its ethos, the School welcomes students from all backgrounds where it is believed that the prospective student can benefit from the education provided at the school. In support of its public benefit aim the School also awards annual bursarles, which are outlined in the grant making section of the Strategic Report. The Board has been and remains committed to growing the number of bursaries awarded to widen partiClP3tion at the school recognising the significant opportunities such bursaries provide to the recipients and their familie5. In addition to providing educatlon supported by an extensive range of extra-curricular activities the school has due regard for its obligations under the Charity Commission's published guidance on the public benefit requirement Icharities Att 20111, thercfore the School also Works in partnership with local schools, charities and organisations to widen public acce55 to education. I n 2020 the school created a new post of Assistant Head Istudent Development), with responsibility for outreach and community links. In 2021 the School further 5UPPOrted our community benefit by pruviding additional human resource support to deliver our ambitions in thi5 area and this was further expanded in 2022. The School continues to work closely with Rowledge Primary School supporting the Forest School programme, offering access to science laboratories and a member of staff is also 3 Governor there. The School h35 continued to work c105ely with Bordon Junior School, prow￿ding lessons and activities in Icr, with our studpnts acting as mentors and teachers. Other local, maintained sector Schools, youth groups, scouts and cubs made use of the School's music, art and sports Facilities and minibuses. The School hag also forged very strong charitable links with All Saints School and Amao Orphanage in Malawi. The school has been workinE at a second school (Mikuyul in Malawi, with plans to expand beyond this in 2023. Overthe last ten years, in addition to workingvisits by staff and students, practical assistance and charitable funds raised by the School community have had slgnlflcant impact for people living in those Malawi communities. The school is making the first trip in 3 years to Malawi inJuly2023. Following Russia's invasion of Ukralne, the School became a 'hub' for displaced Ukraini3n families allowing them to meet informally once every week. The school also collects for a 'Free shop, for the familie5 where they can obtain essentials like clothin8 and toiletries. The School a150 has FOUR Ukrainian students on 100% bursaries. Objectives for the Year The School's principal objectives for the year were to., l. Maximise student achievement 2. Maximise student personal development through effective tutoring and involvement in opportunities Outside the classroom 3. Inspire and further develop the teachin8 Staff through professional development opportunities 4. Further enhance teaching and learning 5. Maintain a roll of approximately 520 Students for the year FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2022 6, Dellvèr the School's charitable objects and demonstrable public benefit 7. Maintain f inancial stability STRATEGIC REPORT The Strategic Direction of the School During the previous ye3r, the Head completed work on reviewlng and updating the school's vision, mission, and v31ues. At its meeting held on 22 May 2021 and following an all-school consultation process the Board warmly welcomed and endorsed the new vision and mission statements, which are as follows.. OUR VISION Empowering tomorrow's change-makers to find their inspiration today through a transformative education OUR MISSION We continue to pioneer a better education, One which celebrates the individual as part of a nurturing and supportive community. amplifies the voices of our community, encouraging self-expre55ion and sharin8 of ideas. brims with inspiration from strong relationships with outstanding educators in a stimulating environment. The Board is confident that the re-articulation of the aims and mission places the School firmly in a position to continue to deliver Its unlque educational offering as a leading progressive school for the years to corne. OUR VALUES Endorsed by the Board last year12020-211 the School consolidated its values alongside the vision and mission and to champion the delivery of a values-based culture for the School. We are extremely proud to support these values which are.. Orlglnollty of thought Splrlt of togetherness Respect of Indfvlduollty Couruge to try To support the vision, mission and values the Board looks forward to receiving a revised Strategic Plan and an underpinning Management Plan in autumn 2022. Principal ActNIty of the Year The principal activity continues to be the provision of day and boarding education for boys and girls aged from 3 to 18 years. This year the School averaged 54412021.. 5291 student5 of whom 46712021.. 4591 were day students and 7712021.. 701 were boarders. In lanu3ry 2022 the School was subSect to a Independent Schools Inspectorate IISII Inspection, which was a full Education Quality and Compllance was found to be fully compliant and graded EXCELLENT in all areas of edLscation provision and personal development. Grant-making During the year the School set aside funds to support bursarie5, which were offered to parents of students who Could not otherwise afford to send their children to the School, based on a comprehensive means-tested assessment of financi31 need. The process requires parents or guardians to complete a detailed financial form covering income, expenditure and assets which is reviewed by the Bursar and Head, and a representative of the Board of Governors in difficult cases before any award is made. FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORTOFTHE BOARD OF GOVERNORS YEAR ENDED 31JULY 2022 Bursary awards are re-assessed annu311y. The School's policy Is to ensure funds are allocated for bursaries, and also develop further its programme of Scholarship 3nd Enrichment activities which is open to scholars, as well 3S the wider School community. Ir* support of all these awards the School cornmitted £594k12021.' £530kl this year, of which £532k 12021.. £471kl was awarded in bursaries to 41 students12021.. 441 through its General Fund, of which 1412021.. 91 were 100%, Within this bursary funding, £16k was allocated in-year for Ukrainian puplls. Ir¥ 2021, £3k in Covid-related hardship bursaries was awarded through funds donated by parents. The vailability of all such awards for fee-assistance is advertised on the School's website at www.frensham.or Volunteers old Frensh3mians, Friends of Frensham, p3rentS 3nd members of the local commLJnity 3sslsted and supported the School's education31 and cultural activities throughout the year and the Board would like to record its appreciation of this invaluable and continuing support. REVIEW OF ACHIEVEMENTS AND PERFORMANCE Operational Performance of the School Educational value h35 been added to student achievement across all age groups,. this has been monitored using nationally recognised prediction information systems. Through the Scholarship and Enrichment Programme, students gain a we31th of experiences which not only enhance their curriculum learning but also develop essential life skills, all of which add value to their time at Frensham. Trips and eduLitiDnal visits provide access to SOC131, cultural, mor31, and spiritual experiences as students are challenged and have the opportunity for experient131 learning. With COVID-19 impact receding, the school was able to offer a mucFI more normal operation for students, with nearly full programmes of sport, music, dance, drama and school trips on offer. Sports fixtures, together with sports trips, provided fantastic opportunities for students to remain active. Full access to the theatre meant that p13ys, dance concerts and rock & pop gigs were in full operation, with students excelling in all of these. The return of school trips, a key element of a Frensham education, meant that significant trips such as the Year 6 trip to Pembrokeshire, the Year 9 trip to the Peak District and the Year 12 trip to Knoydart in Scotland all went ahead. Alongside thi5, many smaller trips for other year groups were offered too. Exam results in the summer were excellent, considering that these were the first exams to be written In two years. The students performed superbly, well above the levels achieved in the last written exams in 2019. GCSES.. students achieved 23% 9-8,. 42% 9-7,. 96.5% 9-4 grades. A Levels: students achieved 40°A A _A, 67%A* B, 100% A'_E. The School continues to attract students in the South East and London through the unique nature of our education and pastoral care and has maintained strong student numbers. The School also remains active in the international marketplace and appeals to overseas Students, mainly from Europe, with a number from Eastern Europe and further afield. + SUSTAINABILITY The School is fully aware of its responsibilities in making progress towards a more SLJSt3inable campus. It has a solar field that contributes towards the costs in the Main Building during term time and FIT contribution In the accounts (this yearl circa £26K. FRENSHAM HEIGHTS EOUCATIONAL TRUST LIMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2022 All new buildings are constructed to the sustainability regulations in place at the time and where possible loft insulation, double glazing are added to staff Bccommodation when the opportunities are presented. The School is investigating a grant to change the floodli8hts on the AWSP to LED. It is also hoping to be able to finance a fully electric minibu5 via the parents, association. FUNDRAISING The School recognise5 that it5 alumni and current p8rent5 have already committed significant funds to the School by the families, payment of school fees and has historically taken a low-key approach to addltlonal fundraising. The approach to fundraising was recently reviewed and plans are in operatio to train a current meTnber of the Marketing Department to be responsible for the 2025 Centen3ry Campaign supported by a suitably qu31ified Governor. Funds raised are placed in a restricted fund intended for the future provision of bursaries, The School is aware of the veed to protect vulnerable people from unreasonable and persistent fundraising pre55ure,' it has not received any complaints about fundraising during the year. Ring-fenced funds have heen r3ised to 5UPPOft the Ukrainian students in Schc¥ol with their everyday educational needs and io fund their education81 trips. FINANCIAL REVIEW AND RESUL￿ FOR THE YEAR Results The SchoDI aims to gernerate sufficient surplu5 for reinvestment that advances the educational experience of all students and finances improvements to the School's facilities, so that it can continue to offer high quality education and student development. The 803rd had identified the followin8 strategic priorities for the future.. l. Investment in our people 2. Investment in our estate 3. Inve.stment in our IT systems 4. An ongoing commitment to enhance our bursary provision thus wider*ing access to the School The malorlty of the School's income derives from fee5 and is closely related to student numbers for the vear,. enterprise trading activity a150 create5 income. Enterprise activity this year is Still somewhat diminished but is showing signs of recovery and business as usual. A Business Recovery Plan will be produced in the Autumn of 2022 that signposts the way forward forthe next five years and to contribute in a significant way to the overall income of the School. In the current year the group's net incoming resources amounted to £182k12020: E220kl. This includes a profit from the tradin8 subsidiary of £64k. Tradlng Company The wholly owned subsidiary and trading comp3ny, Frensham Heights Enterprise5 Ltd, continues to manage successfully the letting and hiring facilities at Frensham Heights. For the year ended 30 lune 2022 the tradlng company made a sm311 gift aid payment to the School of £8,341 after offsetting the prior year loss of1£56kl against the current year profit of £64k. Borrowing and Investment The School has had no borrowing requirement during the year and holds no investments. ReseNes Level and Policy and Financial Viabillty The School's reserves policy is to maintain sufficient unrestricted income reserves to enable it to meet its short~term financial obligations in the event of an unexpected revenue shortfall taking into account annual and longer term capital expenditure plans in conjunctlon wlth access to external financing. The level of free reserves will therefore fluctu3te within the cycle of the capital programme. The Group s FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORTOF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2022 total reserves of £17,602k at the year-end included £564k unspent restricted income and £17,038k unrestricted income. £11,671k of this represented the net book value of fixed assets less associated Internal funding arrangements and £521k deslgnated for Scholarshlp funding, made 3gair)st future years, fees leaving free reserves of £4,846k12021.. £4,183kl at the year-end. This comp3res with a policy level of £2,500k12021- £2,300kl which would provide cover for up to thrèe months, operating costs 12021.. three months). The Trusteès, policy is not to m3intaln free reserves in its wholly owned subsidiary, which therefore has no impact on the School's reseNes. The Governors regularly review the levels of reserves. GOING CONCERN The School produces regular financial information including budgets, forecasts and a longer-term strategic business plan, which are closely monitored by thè Governors. Through thls strategic planr)ing and monitoring of financial information, the Governors are confident of moving towards a bre3keven and then surplus position in the medium term, from this yearfs expected deficit. These budgets, cash flows and lorec3Sts have been reviewed and revised due to the aftermath of the COVID-19 pandemic aTrd the School's strategic objective to reduce the number of SEND students on the role, to take into consideration the current economic climate and its potential impact. Revised forecasts have been prepared together with c3sh-flows, based on the most likely expected outcome from thesè scenarlos and detailecl examination by the Finance Committee. The cash flow modelling with sensitivity analysis indicates that the cash reserves of the School are adequate to meet the charitys obligations as they fall due. The School has scoped out incorne and expenditure up to and including 2026-27 and although ?.O?.?-?.3 is forecasted as a difficult year 3S the backwash from Covid and resultant drop in boarders works its way through a steady increase in surplus is foreseen thereafter. Therefore, the Governors have a reasonable expectation that the charity has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the School's financial viability. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Governors, Responsibilities bearing in mind current rates of inf lation. FIXED ASSErs Acquisitions and disposal of flxed assets duringthe year are shown in Note 9 to the Financial Statements. Freehold buildings are currently included in the Balance Sheet at cost less depreciation. The Governors are satisfied that their current market value exceeds their historic cost, but do not wish to spend charitable fund5 on obtaining a formal valuation for accounts purposes. RISK MANAGEMENT The Board of Governors is responsible for the identification and management of risk and continues to keep the School's activities under critical review at every Board meeting. Dètalled consideration of specific risk5 is a150 conducted by relev3nt Governor Committees and their recommendations reported to the Board of Governor5. The key controls used by the charity include.. Formal agendas for all Commitlee and Board activity Comprehensive strategic plannin& budgeting, and management accounting Established orEanisation21 structure and lines of reporting Comprehensive Risk Register Formal written policies clear authorisation and approvals,. and Vetting procedure5 as required by law for the protection of the vulnerable. FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2022 The highest priority risks identified by the Board of Governors at the end of the year which could lead to financial 3nd operational challenges are.. l. The ongoing cost of the Te3chers' Pension Scheme ITPSI Phased Withdr3W31 to the School as an employer 2. An increasing cost base including inflation 3. Reduction in student numbers 4. Retention into the Sixth Form 5. The impact of changin8 government policy including potential further increases for employers, contributions to the Te3chers' Pension Scheme increases in National Insurance the loss of business rates relief d. VAT on fees 6. Any reduction in the demand for independent school education 7. The ongoing impact of the pandemic 8. The ongoing impact of Brexit 9. Any adverse impact upon the wellbeing of our students and staff 10. Any adVe￿e publicity affecting the School's reputation. Multiple str3tegies are being employed to manage these risks including enhancing our marketin6 efforts for our unique Frensham Heights, prop051tion- in addition, we will continue to grow and maintain our student nu¥Mbers,' and to exercise ti8ht financial control over spending and debtors. Health and Safety is ￿COgnIsed as a signif icant area of non-financial risk and it is closely managed. The risks range from fire and infrastructure damage to personal risks, The risks associated with all activities are mir)imised by preventative planning and risk assessment. The Board of Governors is satisfied that for all major risks identified, appropri3te controls have been put in place and are maintained to miligaLe the risks. It is recognised that systems can provide reasonable but not absolute assurance that major risks have been effectively mitigated. TEACHERS, PENSION SCHEME Ill common with much of the sector, the School's largest Cost is that of staff costs In particular the need to fund peyslon benefits for our staff. This has proved increasingly challenging in respect of the Teachers, pension scheme due to the increasing employers, contributions now required into that scheme. Last year the Governors recogriised their duty to act prudently in connection with the longevity of the School and have considered.. a. the ongoing impact of the increased contributlDn on the School's finances. They considered that the impact 15 a very significant one with implications for the future viability of the School. b, Nevertheless, after extensive negotiations with the staff and teaching unions an agreement was reached to adopt a Ph35ed Withdrawal from TPS. Although this will not immediately reduce costs significantly it will over the next few years. This decision does not remove the threat of the impact of the 2020 valuation and the situation may well have to be revisited. The need to ensure the School has adequate financial resilience to invest in our people, in our estate, in our IT 5ySteFllS and in our important strategic priority,. our commitment to widenin8 access through a larger number of bursaries. 10 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2022 FUTURE PLANS The Schiiol's Strategic and Business Plan, charitable objects and ethos provide the strategic direction for fut￿re planning; these are captured and articulated in the School's Development Plan 2022-2023; this document sets out the specific and detailed plarns for next year. The key objectives within the current plan are.. l. Student Achievement. Maximise student achievement through enhancements to Approaches to Learning and the role of tutors. Further develop the skills-b3sed curriculum from Years 7 & 8 and throughout the Junior School 2. Student PersDnal Development. Maximise student development by improving org3nisatlon81 skills and Improving pastor31 and wellbeing provision. Further refine the PSHE (Horizons1 progr3mme. 3. Marketing. Currently numbers are circa 500 and therefore there is a requirement to restore them to 525 and eventually 550. Marketing will be focussing the main effort on retention from Year 11 and recruitment into the Sixth Form and in the Early Years. The intention belng to Develop Frensharn's positicin as a thought leader foi pro8res5ive education. 4. Parent Communication/Reputation. Build on the success of the Parents, Information Evenings. Review effectiveness of parental corntllunications. Explore the use of communication software like My School Port81 to enhance communication with parents. 5. Finance and SitelFacilities Development. Implement improvements to Finance and HR systems. Produce an Est3tes M3Sterplan and a supporting space utilisation plan to enable and inform long-term capital planning for the estate, Continue initiatives to increase energy efficienry 3nd work to sustain the woodlands. 6. Public Benefit. Maintain strong links with local schools, the local community and partner schools in Malawi. Continue with support for Ukrain13n children the school and act as a hub for Ukrainian families in the area. BOARD OF GOVERNORS The Governors are all Directors of the School and their non-beneficial interests in the ordinary share capltal in the year are as shown in the following table.. 31JuW2022 20 15 31July2021 io io io William Bird Angus Carlill Gerard Holden Martin Lupton Sally Marriott Willlam Marriott Katherine Poulsom Jackie Sullivan Phllip Ward Richard Fry Peter Molyneux Catherine Love io 15 Is io Is 15 io io io STATEMENT OF GOVERNORS, RESPONSIBILITIES The Members of the Board of Governors (who are also the dlrectors of Frensham Heights Educational Trust for the purposes of company lawl are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and FRS 102, The Financial Reportlng Standard applicable in the UK and Republic of I reland. 11 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY2022 Company law requlres the members of the Board of Governors to prepare f inancial statements for each fin3nci31 year. Under company law they must not approve the financi31 statements unles5 they are satisfied that they give a true and fair view of the charitable company and the group, including the income13nd its appllcationl and expenditure of the group for that year. In preparing these f inancial statements, the members of the Board of Governors are required to.. select the most suitable accounting policies and then apply them consistently,. observe the methods and principles in the Charities SQRP 2019 IFRS 1021,. make judgments and estimates that are reason3ble ancl prudent,. state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements,. and 5. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The mernbers of the Board of Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Cornpanies Act 2006 and the provisions of the charity's constitution. They are also responsible for safeguarding the assets of the charity and the group and for taking reasonable steps for the pievention and detection of fraud and other irregularities. Insofar as each of the Directors, as members of the Board ol Governors, at the date of approval of this report is aware there i.£ no relevant audit information (information needed by the Company's auditor in connection with preparing the audil report) of which the Comp3ny's auditor is unaware. EJch member of the Board of Governors has taken all the steps that he orshe should have taken as a member of the Board of Governors to make himself or herself aware of the relevant audit information 2nd to establish that the Companls audilor is aware of that inform3tlDn. AUDSTORS Crowe U.K. LLP have expressed their willingne5S to continue in office as auditors. The School will retendèr the audit contract in 2023-24. This Annu31 Report, including the Strategic Report, prepared under the Charities Act 2011 and the Companies Act 2006, was approved by the Board of Governor5 of Frensham Heights Educatlonal Trust Limited on 10 December 2022 and is signed as authori5ed on its behalf by.. William Bird: Director & Chair of Governors 12 Independent Audltorfs Report to the Members of Frensham Heights Educational Trust Limited Opinion We have a￿dited the financial statements of Frensham Heights Educational Trust Limited I'the charitable company'l and its subsidiaries I'the group'l for the year ended 31 July 2022 which comprise the Group Statement of Financial Activities, the Group and Company Balan￿ sheets, the Group Statement of Cash Flows and notes to the financial statements, including significant 8ccounting policles. The firiancial reporting framework that has been applied in their preparation is applicable law and United Kingdotn Accounting StaRd3rds, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland Iunlted Kingdom Generally Accepted Accounting Pr8Cticel. In our opinion the financial statements.. give a true and fail view of the state of the Group's and the charitable companls affairs as at 31 luly 2022 and of the group's income and expenditure, for the year ther> ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for oplnion 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'5 responsibilities for the audit of the financial statements section of our report, We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRUS Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We belipvp th8t the audit evidence we have obtained is sufficient 2nd appropriate to provide a basis for our opinion. Concluslons relating to going con￿rn In audiling the f inancial statements, we have concluded that the trustee's use of the golng 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 event5 or conditions that, individu311y or collectively, may cast significant doubt on the charitable company's or the group's ability to continue as a going concern for a period of at least twelve months f rom when the financial statement5 are authorised for issue. Our responsibilities and the respDnsibilities of the trustee5 Wlth respect to going concern are described in the relevant sections of this report. Other informatlon The trustees are responsible for the other informatlon contained within the annual report. The other informatlDn comprises the inforrnation included in the annual report, other than the fin3nclal 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 expres5 any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other informatlon is materially incon515tent with the financial statements, or our kntswledge obtained in the audit or otherwise Jppears to be materially misstated. If we identify such material inconsistencies or apparent material mi55tatements, we are required to determine whether this gives rise to a material misstatement in the f inancial statements themselves. If, based on the work we have performed, we conclude that there is 3 material mi55tatement of this other information, we are requlred to report that fact. We have nothing to report in this regard. 13 Opinlons on other matters prescribed by the Companies Act 20Q6 In our opinion b35ed on the work undertaken in the course of our audit the information given in the trustees, report, which includes the directors, report 3nd the strategic report prepared for the purposes of company law, for the financial year for which the f inancial statements are prepared is consistent with the financial statements,. and the strategic report and the directors, report included within the trustees, report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exceptlon In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors, report included within the trustees, report. We have nothing to report in respect of the followinE matters in relation to which the Cornpanies Act 2006 requires us to report to you if, in our opinion.. adeqLiate and proper accounting records have not been kept or returns adequ8te for our audlt have not been received from branches not visited by us. or the financial statements are not in agrèement with the accounting records and returns, or certain disclosures of trustees, remuneration specified by law are not made; or we have not recelved all the ir)formation and explanations we require for our audit. Responsibilities of trustees As explained more fully in the trustees, responsibilities statement, the trustees Iwho are also the directors of the charitable company for the purposes of cornpany lawl are responsible for the preparation of the f inancial statements and for bein8 sat15fied that they give a true and fair view, and for such internal control as the trustee_q dp.termine is necessary to enable the preparation of financial statements that are free from material misstaterrient, whether due to fraud or error. In preparing the financial statements, the trustees are responsible fur assessing the charltable company's ability to continue as 3 going collcern, disclosing, as applic3ble, matters related to going concern and using the goin8 concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic altern3tive but to do so. Auditorfs responsibilities for the audlt of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is 3 high level of assurance but Is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basls of these financial statements. Details of the extent to which the audit was considered capable of detectin8 irregularities, including fraud and Hon-compliance with laws and regulations are set out below. A further description of our responsibilities for the audlt of the financial statements is located on the Flnancial Reporting Council's website at.. www.frc.or auditor5res on5ibilities. This description forms part of our auditorfs report. Extent to which the audit wa5 consldered capable of detettlng Irregularities, including fraud Irre8ularities, including fraud, are Instances 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 between our audit team member5, We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and 14 appropriate to provide a basis for our opinion. We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of matèrial amounts and disclosures in the flnancial statements. The laws and regulations we consldered in thls context were the Compallies Act 2006, taxation legislation, together with the Charities SORP IFRS 1021. We assessed the required Gompliance with these laws and regulations as part of our audit procedures on the related financial statement items. In addition, we considered provlsions of other laws and regulations that do llot have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company's nd the group's ability to operate or to avoid 2 material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws 3nd regulations we considered in this corstext for the UK operations were The Education Ilndependent School Standards) Regulations 2014. Auditing standard5 limit the reouired audlt 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 identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the recognition and classification of school fees and other income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, performing analytical reviews and testing income for completeness, reviewing regulatory correspondence witli the Charity Commission, Independent Schools Inspectorate, ofsted 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 gome matprial misstatements in the financial statements, even though we have properly planned and performed our audit in accordan￿ with auditing standards. For example, the further removed non-compliance with laws and regulations lirregularitiesl is from the events and transactions reflected in the financlal statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with 3ny audit, there remained a higher risk of non- detection of irregularities, 3S these m3y involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal contiols. 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 charitable company's rnembers, as a body, in accordance with Chapter 3 of Part 16 of the Companles Act 2006. Our audit work has been undertaken 50 that we might state to the charitable companvs 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'5 members as a bod for our audit work, for this report, or for the opinions we have formed. AndrewThomas Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditoi London Date.. 20 January 2023 15 FRENSHAM HEIGHTS EDUCATIONAL TRusf LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES Ilncorporating an Income and Expenditure account) FOR THE YEAR ENDED 31 JULY 2022 Total Funds 2022 £'ooo Totol Funds 2021 £'ooo Unrestricted Restricted Endowed Funds Funds Funds £'ooo £'ooo £'ooo Income and endowments from: Charitable Activities School fees receivable Other ￿UC8t1Onal income Other ancillary tradirng income Other trading activities Trading turnover Other Income Profit / (Lossl on disposal Investments Investment incorne Voluntary Income Grants and Donations 9,976 226 181 9,976 226 181 9.076 127 54 219 42 iii 219 42 iii 34 16 io io 21 21 128 Total Income 10,653 21 10,674 9,441 Expenditure on., Rai51ng funds Fundraising Trading 149 149 84 Charitable Activitles Education and grant making 10,343 10,343 9,137 Total expendlture 10,492 10,492 9,221 Net Income 161 21 182 220 Transfer5 belween fLJnds Net moveErent of funds 16 166 21 151 182 220 FLJnds brought forward l August 2021 16,872 283 265 17,420 17,200 Funds carried forward 31 July 2022 17 17,038 304 260 17,602 17,420 All amounts relate to continuing operations. There are no recognised gains or losse5 Other than the results for the year set out above. The Notes on Pages 21 to 38 form part ot these financi315tatements. 16 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED {Company Number: 2071731 CONSOLIDATED BALANCE SHEET ASAT31JULY2022 Notes 2022 2021 E'OOO £'ooo FIXED ASSETS Tangible fixed assets 9a) 11,931 12,451 12,451 11,931 CURRENT ASSETS Stocks Debtors.. amounts falling due within one year Cash at bank and In hand li 614 6,575 7,191 398 5,839 6,238 CREDITO￿. amounts falling due within one year 12 1,520 1,266 NET CURRENT ASSETS 5,671 4,972 TOTAL ASSETS LESS CURRENT LIABILlllES 17,602 17,423 CREDITORS.. amounts falling due after more than one year 13 NET ASSEtS 17,602 17,420 CAPITAL AND RESERVES Called upshare capital THE FUNDS OF THE CHARIT( UNRESTRICTED FUNDS Scholarship fund Tangible fixed asset fund General fund 15 16 521 11,671 4,846 503 12,186 4,183 16,872 17,038 RESTRicfED FUNDS Endowments Bursary and award funds 260 304 265 283 548 TOTAL FUNDS 17 17,602 17,420 The profit for the fir*ancial year dealt with in the financial statements of the parent Company was £118k 12021.. £2771. Approved and authorised for issue by the Board of Governors on 10 December 2022 Willi3m Bird Governors and Directors An8us Carlill The Notes on Pages 21 to 38 form part of these financi315tatements. 17 FREN5HAM HEIGHTS EDUCATIONAL TRUST LIMITED Icompany Number.. 207173) BALANCE SHEET AS AT 31 JULY 2022 Note5 2022 2021 £'ooo £'ooo FIXED A￿ET5 Tan8ible fixed assets Investments 9bl io 11,930 io 12,449 io 12,549 11,940 CURRENT ASSETS Stocks Debtors.. amounts falling due within one year Cash at bank and in hand li 459 6,403 6,863 391 5,687 6,078 CREDITORS: amounts falling due within one year 12 1,206 1,057 NET CURRE￿￿5￿5 5,657 5,011 TOTAL ￿E[S LESS CURRENT LIA81LITIES 17,597 17,470 CREDITORS.. amounts falling due after more than one year 13 NET ASSETS 17,597 17,470 CAPITALAND RESERVES Called up share capital THE FUND5 OFTHE CHAR UNRESTRICTED FUNDS Scholarship fund Tangible fixed a55et fund Gener31 fund 15 521 11,671 4,840 503 12,186 4,233 16,922 17,032 RESTRICTED FLINDS Endowments Bursary and award fLJnds 260 305 265 283 565 545 TOTAL FUNDS 17 17,597 17,470 Approved and authorised for issue by the Board of Governors on 10 December 2022. William Bird Governors and Dlrectors L CEn'li Angus Carlill e Notes ori Pages 21 to 38 form part of these financi31 statements. 18 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2022 Note 2022 gooo 2021 £'ooo £'ooo £'oc Cash flows from operating actlvltie5 Net Cash provided by operating activities 812 620 Cash flows frDm investlng activities.. Payments for tangible fixed assets Non-cash payments for tan8ible fixed assets Proceeds on sale of tangible f ixed a5set5 Investment income and bank interest received 1891 (342) io Net ￿sh (used inl / provided by Investing activities 1771 1335) sh flows from financlng activities.. Flnance Costs Pald Net cash provided by flnanclng activities Change in cash and cash equivalents in the reporting period 736 285 Cash and cash equivalents at the beginning of period 5,839 5,554 Cash and cash equivalents 3t the end of the reportin6 period 6,S75 5,839 The Notes on Pages 21 to 38 form part of these financial statements. 19 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT FOR THEYEAR ENDED 31 JULY 2022 lil Reconciliation of net income to net cash flow from operating activities 2022 £.￿0 2021 £'ooo £'ooo £'ooo Net incoming resources Elimination of non-operating cash flows.. 182 22Q Investment income Depreciation Charge Non Cash-Flow Item Profit on sèle of assets Ilncreasel / decrease in debtors Ilncreasel / decrease in stocks I ncrea5e I Idecreasel in creditors I ncre3se / Idecreasel in fee5 in advance scheme creditors Increase I Idecreasel in p3rents' deposits iioi (6} 631 12161 (124) 314 1971 151 f202) 34 149) 630 400 Net cash provided by operating activities 812 620 lill Analysis of Cash and cash equivalents 2022 £'ooo 2Q21 £'ooo Cash held on current account Cash helc5 on deposit Petty cash held 3,020 3,552 2,329 3,508 6.575 5,839 20 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31JULY 2022 COMPANY INFORMATION.. The School Is a Public Benefit Entity registered as a charity in England and Wales and a company limited by guarantee. It was incorpor3ted on 10 July 1925 (company number.. 2071731 and registered as a charity on 15 August 1966 Icharity nLtmber'. 3120521. ACCOUNTING POLICIES Basls of preparatlor) The financial statements have been prèpared under the historical cost convention in accordance with the Financial Reporting Standard applicable in the U K and Republic of I reland IFRS1021, the Companies Act 2006 and the Statement of Recommended Prartice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 Going Concern: As detailed ir¥ the Report of the Governors, the Governors have reviewed and revised the School's financial forecasting in light of the current economic climate, the forecasted deficit in 2022123, and their potential impact. Revised forecasts have been prepared tO8ether with cash-flows and restructuring based on the most likely expected outcoille froin these scer¥ari05, Wlth sensitivity analysis on the key assumptions. The cash flow modelling with sensitivity analysis indicates that the cash reserves Df the School are adequate to meet the charity's obligations as they fall due. Having regard to the above, the current cash position, and the expected cash flow over the next 12-24 months the Governors have 3 reasonable expectation that the charity has adequate re50urLes to continue its activities for the foreseeable futtsre and consider that there were no material uncertainties ovèr the School's financial viability. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Governors, Responsibilities. The functional currency of the School is considered to be G8P because that is the currency of the primary economic environment in which the School Dperates. The charlty has taken advantage of the exemption available to 8 qualifying entity in FRS 102 from the requirement to present a charity only Cash Flow Statement and certain disclosures about the charity's finar*cial instruments, The consolidated accounts include Frensham Heights Enterprises Limited, made up to 30 June 2022. In accordance with the exemptlon allowed under Section 408 of the Companies Act 2006, the charity's Statement of Financial Activities is not separately presented. Crftlcal accounting Judgements and key sources rf estlmation uncertainty In the application of the accounting policie5, Trustees are required to make judgement, estim2tes, 3nd assumptions about the carrylng value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions 3re based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estlmates. 21 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL sfATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 JULY 2022 ACCOUNTING POLICIES (Continuedl The estimates and underlying ass4Jmptions are reviewed on an ongoing basis. Revisioiis to accounting Èstlmates are recognised in the period 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 futLJre periods. In the view of the trustees, no assumptions concerning the future or estimatio uncertainty affecting assets or liabilities at the balance sheet date are likely to result in z material adjustment to their carrying amounts in the next fin3nci31 year. bl Fees and similar Income Fees receivable and charges for services and use of premises are 3ccounted for in the period in which the Se￿iCe is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the School. Investment Income Investment income from dividends, bank balances and fixed interest securities are accounted for on an accruals basis. dl Voluntary Income Voluntary incoming resources are accounted for as and when entitlement arises, the amount can be reasonably quantified and the economlc benefit to the School is considered probable. Donations receivable for the general purpose of the School are credited to 'unrestricted funds,. Donations for purposes restricted by the wishes of the donor are taken to 'restricted fund5, where these wishes are le8ally binding on the Governors. Donations required to be ret3ined as capital in accordance with the donorfs wishes are accounted for as 'endowments'_ permanent or expendable according to the nature of the restriction. Government grants are recogni5ed on the performance model, when the Company ha5 complied with any conditions attaching to the grant and the grant will be received. The grant in connection to the job retention scheme has been reco8nised in the period to which the underlying furloughed staff costs relate to. Taxation The School is a registered charity. As such It is exempt under present legislation from assessment to corporation tax on its net income and is able to reclaim tax deducted from covenants and interest received. Tan8lble flxed assets and depreclatlon Items of a capital nature and with a value greater than £5,000 have been capitalised. Depreciation is provided 3nnually at the following rates.. Freehold buildings Tlmber buildings Modular buildings Motor vehicles Furnlture and other equipment Solar Panels Computer equipment 2Yo of cost 5% to 6.7% of cost 4% of c05t 25% of cost 10%- 20Yo of cost 5% of cost 20% to 33.3YD of cost 22 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 JULY 2022 ACCOUNTING POLICIES (Continuedl Experndlture Expenditure is accrued as soon as a liabllity is considered probable, discounted to present value for longer~term liabilities. Certain expenditure is apportioned to cost categories based on the estimated amount attributable to the activity in the year. The irrecoverable element of VAT is included with the item of expense to which it relates. Raising funds comprise those costs dlrectly attributable to the trading subsidiary INote 31. Support costs comprise a proportion of staff costs together with a proportion of overheads of the School. Governance costs are those incurred in connection with the governance of the School and compliance with constitutional and statutory requirements, Operating lea5e5 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. Benef its received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line b35is over the lease term. h) Stock Stock fèpresents goods for resale and is stated at the lower of cost and net realisable value. Penslon schemes The School contributes to the Teachers, Pension Defined Benefits Scheme at rates set bv the Scheme Actuary and advised to the Board by the Scheme Administrator. The Scheme is a multi-employer pension scherne and it is not po£qible to identify the assets and liabilities of the scheme which are attributable to the School. In accordance with FRS102 therefore, the scheme is accounted for as 3 defined contribution scheme. The School contributes to the Royal London Group Personal Pension Plan which the School established as the official alternative to the TPS under the Phased Withdraw31 arrangement. Certain non-teaching staff are members of other defined contribution schemes. All non- teaching staff are entitled to join a group personal pension scheme, which complies with the requirements for a Stakeholder Pension Scheme. Finar)cial instruments kl Basic financial instruments are initially recognised at transactlon value and subsequently measured and amortised with the exception of investrllents which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provlsion Is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant acces5 bank accounts and used as working capit31. Financial liabilities held at amortised cost cornprise trade creditors, other creditors. acCr￿alS and deposits. 23 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTESTO THE CONSOLIDATED FINANCIALSTATEMENTS ICONMNUEDI FOR THE YEAR ENDED 31JULY 2022 CHARITABLE ACTIVITIES- FEES RECEIVABLE 2022 £'ooo 2021 Fee5 recelvable consist of.. School Fees Less.. Total bursaries, grants and allowances Less.. COVI D-19 Fee refund 10,794 18181 10,198 {633) (478) 9,976 9,076 NET INCOME Net incotlle is stated after charginE'. Oepreciation of tangible fixed assets Audltors, remuneration Audit Other services 607 20 631 22 Staff costs INote 81 Operating lease costs 7.460 72 6,914 62 24 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2022 TRADING INCOME Frensham Heights Educational Trust Ltd owns the entire issued share capital of Frensham Heights Enterprises Ltd, Company Number 2866864, registered address F￿nsh3M Heights, Rowledge, Farnham, Surrey GUIO 4EA, The princip31 activity of this company is that of managir)g letting and hiring facilities available at Frensh3m Heights. 30 June 2022 £'ooo 30June 2021 £'ooo Turnover Cost of sales 219 1871 34 133) Gross profit Administratlon expenses 132 1681 (57) Qperating profit Interest receivable 64 (56) Profit on ordinary activities before taxation Taxation Profit on ordinary activlties after taxation 64 [56) 64 (56) Retained earllin8S Bt the start of period Profit for the year 1501 (56) Gift aid to Frensham Heights Educational Trust Limited Retained earnings at the end of period (50) Trading costs detailed above are disclosed in the consolidated Statement of Financial Activities as follows Cost OF sales Administrative expenses Audit and professional fees included in governance costs 87 65 18) 33 57 (6) Fundraising tradlng as on Statement of Financial Activities 147 84 The School's and company's year-end are non co-termlnus and it Is not considered necessary to have identical year ends as it is not expected that any transactions will occur in the trading company in the intervening period which will have a material impact on the consolldated accounts. Adminlstration expenses of the subsldiary include auditors, remuneration for audlt services OF £4k12021- £4kl and for other services £2k12021- £2kl. These have been included in govern3nce costs in the consolidated statement of financial activities. 25 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TOTHE CONSOLIDATED FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2022 INVESTMENT INCOME Total 2022 £'ooo Totsl 2021 £'ooo Bank deposit account interest io INCOME FROM CHARITABLE ACIVITIES 2022 £'OLKI 2021 rooo Other educational charitable activltles Entrance and registration fees Courses and sub-lettings 152 74 89 38 226 127 other ancillary attivities Insurancc commissions School Trips, Mea15 and Other Income 181 54 181 54 ANALYSIS OF EXPENDITURE Staff Costs £'ooo Other Costs £'ooo Total 2022 E'OOO Depreci3tlDn £'ooo Trading expenditure 73 73 74 74 148 148 Charitable activities Education and welfare Housekeeping Catering Transport Maintenance and estate Support costs and governance 5,169 356 360 787 220 345 29 481 489 606 6,562 576 705 29 771 1,700 290 1.211 7,386 2,351 606 10,343 Total expenditure 7,459 2,425 607 10,491 26 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED} FOR THE YEAR ENDED 31 JULY 2022 ANALYSIS OF EXPENDITURE Icontlnuedl SUPPORT COSTS AND GOVERNANCE 2022 £'fflo 2021 £'ooo Salaries Staff recruitment and travel Marketing and professional fees Telephone, postage, printin& statlonery Miscellaneous admin costs Governance costs (Note 71 1,212 41 373 20 34 21 1,084 28 200 23 46 20 1,701 1,401 Governance costs include auditor5, remuneration for audit services of £16k12021.. £17kl and for other services £750 12021.. £2kl and the reimbursement of four Governors, travelling and sub£istence expenses of £2k 12021 two Governors.. £4391, as well as £2k for Governor miscellaneous iirid training costs12021.' £841, STAFF COSTS 2022 £'ooo 5,272 536 1,056 2021 £'ooo 5,023 494 994 Wages and salaries Social security costs Other pensior) costs 6,864 6,511 Staff not directly employed by the School 596 403 7,460 6,914 The average monthly staff he3dcount was.. Teaching Administration Other 106 34 25 loo 32 28 165 160 Included in the above, one permanent member of staff is employed in the trading subsidiary 12021.. One). In addition, ad hoc staff are called upon throughout the year to provide support for functions in the trading subsidiary. 27 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 STAFF COSTS (Continued) 2022 gooo 2021 £'ooo The total employee benefits lincludlng employers, pension and nation31 insurance contributions) of key management personnel were- 1,115 957 The following number of staff received remuneration in excess of £60,000 in the year: 2022 2021 £60,001 to £70,000 £70,001 to £80,000 £IIO,001 to £120,000 One person connected with a governor h85 received remuneration from employment with the charity in accordance with the pay scales of the school12021.. £01. Included in the total staff cost figure5 above are termination payments to employees authorised during the year totalling £59k12021 £43kl. All authorised payments were fully paid to employees during the year. 28 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTESTOTHE CONSOLIDATED FINANCIALSTATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 JULY 2022 TANGIBLE FIXED ASSETS al TheGroup Freehold Land, Buildings and 5mprovements £'ooo Plant, Furniture and Equipment £'ooo Motor Vehicles E'OOO Total £'ooo Cost At l August 2021 Additions Disposals At 31 Jtjly 2022 16,704 2,067 89 1361 2,122 159 18,930 89 1361 L8,985 16,704 159 Depreciation At l August 2021 Ch8rge for the year Disposals At 31 July 2022 5,048 405 1,276 198 1341 1,440 155 6,479 606 1341 7,051 5,453 158 Net book value At 31 July 2022 At 31 July 2021 11,251 11,656 682 11,934 12,451 791 b} The Sthool Fre.ehold Land, Buildings and Improvements £'ooo P13nt, Furniture and Equipment E'ooo Motor Vehicle5 £'ooo Total £'ooo Cost At l August 2021 Additions Disposals At31July2022 16,691 2,062 90 1361 159 18,912 90 1361 18,966 16,691 159 Depreciation At l August 2021 Charge for the year Disposals At 31 July 2022 5,039 404 1,269 198 1341 1,433 155 6,463 605 1341 7,034 5.443 158 Net book value At31July2022 At 31 July 2021 11,248 11,652 683 11,932 12,449 793 There are no Freehold Land, Buildings and Improvements in the course of construction this year12021.. £Okl. There is no Plant, Furniture and Equipment work in pro8re55 this year12021- £Okl. 29 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANaAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2022 io. INVESTMENTS Frensham Helghts Enterprises Ltd 2022 £'ooo 2021 £'ooo £1 Ordinary shares at par in Frensham Heights Ellterprises Ltd io io io io Company The cornpany hold5 £10,000 ordinary shares, the entire issued share capital, of Frensham Heights Enterprises Limited. The principal activity of the investee is the letting of facilities available at Frensham HeiBht5 School. At 30 June 2022 Frensham Heights Enterprises Ltd had c3Pital and reserves which tot311ed £17k 12021'.1£40kll. The turnover for the year was £219k12021- £34kl. Frensh3m Heights Enterprises Ltd 15 3 company registered in England and Wales, registered number 2866864. 11. DEBTORS.. amounts falllng due within one year Group School 2022 E'ooo 2021 £'ooo 2022 £'CK)O 2021 £'ooo Amounts due from group undertaking Fees debtors Sundry debtors and prepayments L(KJ 125 233 117 97 177 125 97 301 614 398 458 391 30 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TOTHE CONSOLIDATED FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 JULY 2022 12. CREDITORS.. amounts falling due wlthin one year Group School 2022 £'ooo 2021 £'ooo 2022 2021 £'ooo Amounts owed to group undertaking5 Fees deposits Trade credltors Other creditors and accru31s Fees received in advance Deferred income 63 S05 252 262 42 396 117 471 284 103 139 152 505 239 240 42 180 471 282 94 139 81 1,520 1,266 1,206 1,067 The total amount held in relation to fees deposits of £505k is included above. In the normal course of business, the expetted repayment of these amounts will be £3k within one year ar)d £502k after more than one year. The School holds pupil fee deposits. Althou8h under normal circumstances these will be repaid Dver future years when the pupils complete their education at the school, puplls can leave at earlier dates. The school does not therefore have an unconditional ri8ht 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 July 2022 have been included within current liabilities. The prior year pupil fee deposits balance has been similarly represented. Deferred Income Reconclliatio £'ooo 151 395 11511 Balance brought forward at l Au8USt 2021 Additions in current year Release of deferred income 8alance carried forward at 31 July 2022 395 The deferred income balance relates mostly to future year school trips income., and on the trading SLJbsidiary, future year residential lets and weddings. 31 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2022 13. CREDITORS.. amounts falllng due after more than one year Group School 2022 £'ocxJ 2021 £'ooo 2022 2021 £'ooo Deferred income 14. FE￿ IN ADVANCE SCHEME The School is not currently offering a Fees in Advance Scheme due to the low interest rate environment. 15. SHARE CAPITAL 2022 2021 Authorised 100 Ordinary sharès of £1 each loo 100 Allotted, issued and fully paid ICX) Ordin3ry shares of £1 each loo loo 16. MOVEMENTON FUNDS 831ance at l August Incoming Resources 2021 Resources Expended £'ooo £'ooo Transfer Between Fund5 £'o Balance at 31 July 2022 £'ooo Restricted Funds Bursary and award fund Music award fund Ukrainian bursary fund Endowmentfund 273 io 12 285 12 265 Isi 151 260 564 548 21 Destgnated Funds Scholarship fund Tangible fixed assets fund 503 12,186 18 15151 521 11,671 General Fund 4,183 10,652 110,4911 502 4,846 17,420 10,673 110,4911 17,602 32 FRENSHAM HEIGHTS EDUCATIONAL TRUST UMITED NOTESTOTHE CONSOLIDATED FINANaAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 16. MOVEMENT ON FUNDS (Continuedl Balance at l August Incomlng 2020 Resources £'ooo Transfer Between Funds £'ooo Balance at31July 2021 £'ooo Resources Expended £'o Restricted Funds Bursary and award fund Music award fund Endowment fund 272 131 273 io 265 548 270 549 151 Designated Funds Scholarship fund Tangible fixed assets fund 516 12,470 1131 12841 503 12,186 General Fund 3,665 9,436 19,2201 302 4,183 17,200 9,443 19,2231 17,420 Bursary and award Fund Consists of donations for the future award of bursaries, This will accumulate over time until the level of income the fund generates is suFficient to provide a reasonable bursary For a student. Expendable Endowment funds These are funds which have been given to the School to invest in the School's buildings. Designated funds These funds represent amounts set aside at the discretion of the Governors. Scholarshlp fund This scholarship fund is used to indicate scholarships and bursaries currently awarded for specific stages of education, made ag3InSt future years, fees. Tangible flxed asset5 fursd The fund represents the amount of general funds invested by the School in its tangible fixed assets after deducting those assets represented by the endowment funds. Transfers A transfer of £5k has been m3de between the endowrnent and unrestricted funds. This represent5 the depreciation charged on the proportion of the building represerlted by the endowmentfund. A transfer of £18k has been made to increase the Scholarship Fund. This is to cover the School's future commitments at 31 July 2022 to bursaries and scholarships for specific pupils. A transfer of1£515kl has been made between the General fund and the Tangible Fixed Asset Fund to ensure that thi5, plus the Endowment Fund, are equal to tangible fixed assets within ihe consolidated ba13nce sheet. 33 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 17. ANALYSIS OF NET ASSETS BETWEEN FUNDS The Group Unrestricted General Funds Restricted Funds Endowment Funds Total 2022 Tangible fixed assets Net current 35sets 11,671 5,367 260 11,931 5,67L 304 17,038 304 260 17,602 Creditors.. amounts falling due after one year 17,038 304 260 17,602 The Charity Tangible fixed assets Investmerits Net current assets 11,670 io 5,352 260 11,930 io 5,656 304 17,032 304 260 17,596 Creditors: amounts falling due after one year 17,032 -404 260 17,596 34 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS ICONTINUEDI FOR THEYEAR ENDED 31 JULY 2022 17. ANALYSIS OF NEtASSEtS BETWEEN FUNDS Icontlnuedl The Group Unrestricted General Funds Restrlcted Funds Endowment FLsnds Total 2021 Tangible fixed assets Net current assets 12,186 4,689 265 12,451 4,972 283 16,875 283 265 17,423 Creditors.. amounts falling du after one year 16,872 283 265 17,420 The Charity Tangible fixed asset5 Investments Net current assets 12,184 io 4,728 265 12,449 io 5,011 283 16,922 283 265 17,470 Creditor5.' amounts falling due after one year 16,922 283 265 17, 470 18. PENSION SCHEMES The School participates in the Teachers, Pension Scheme I'the TPS'I for its teaching staff. The pension charge For the year includes contributions payable to the TPS of £825k12021.. £772kl 3nd at the year-end ENII12021 ENill was accrued in respect of contributions to this scheme, The TPS is an unfunded multi-employer defined benefits pension scheme Eoverned by The Teacherg Pensions Regulations 2010 las amended) and The Teachers, Pension Scheme Regulations 2014 las amendedl. Members contribute on a "pay as you go" basis with contributions from member5 and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary's Department. The most recent actuarlal vsluation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from I September 2019. Employers are also required to P3y a scheme administration levy OF 0.08% giving a tot31 employer contribution rate of 23.68Yo. 35 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 The 31 March 2016 Valuation Report W35 prepared in accordance with the benefits set out in the scheme regulations and under the approach speclfied in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the 'McCloud/Sargeant case, This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public SeNice Pensions including the Teachers, Pensions. On 27 lune 2019 the Supretne Court denied the government permission to appeal the Court of Appeal's judgment that transltional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimlnation. The government is respecting the Court's decision and has said it will engage fully with the Employtnent Tribunal as well as employer and member representative5 to agree how the discriminations will be remedied. The government announced on 4 February 2D21 that it intends to proceed with 3 deferred choice underpin under which members will be able to choose either legacy or reformed Scheme benefits in respect of their service durin8 the period between l April 2015 and 31 March 2022 at the point they become pay3ble. The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this Cost cap mechanism, in January 2019 announced a pause to the cost C3p mechanism following the Court of Appeal's ruling in the rKlcCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was13unched on 24 lune on proposed changes to the cost control mechanism following a review by the Government Actuary. Following a public consultation, the Government have accepted three key proposals recommended by the Government Actuary, 3nd are aiming to implement these changes in time for thè 2020 valuations. The 2016 cost control v31uatlons have since been completed in January 2022, and the results indicated that there would be no changes to benefits or member contributions required. The results of the Cost cap valuation are not used to set the employer contrlbution rate, and HM Treasury has cornlirmed that any changes to the employer contribution rate resulting from the 2020 valuations will take effect in April 2024. Until the 2020 valuation is completed it is not possible to conclude on any financial impart or future changes to the contribution rate5 of the TP5. Accordingly, no provision foi any additional past benefit penslon costs is included in these financial statements. The pension cost for the year in relation to other defined contribution schemes amounts to £230k12021.. £222kl and has been included in the Statement Df Fin3ncial Activltles. 36 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TOTHE CONSOLIDATED FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2022 19. LEASING COMMITMEMf5 The Trust is committed to making the following payments under operating leases,. Equipment 2022 £'ooo Equipment 2021 £'ooo Due in lessthan oneyear Due within two and five years Due in more than Five years 72 161 62 219 20. CAPITAL COMMITMENTS At 31 July 2022 the School had no material outstanding retention commitments 3nd no other C3Pltal commitments. 21. RELATED PARTYTRANSACTIONS In 2021-22 the School charged £20k12021.. £16kl to Enterprises for utilities and associated service5. The balance owed to the School at 31 July 2022 was £IOOk12021.. £117kl. 37 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 JULY 2022 22. CONSOLIDATED STATEMENT OF FINANClALAcfiviTI￿-COmPAR1s0N FIGURES BY FUNDTYPE Unre5trlcte Total Funds 2021 £,￿0 Restricted Funds £'ooo Endowed Funds £'ooo Fund5 £'O(NJ Income and endowment5 from: Charitable Activities School fees receivable other educational income Other ancillary trading income other trading attivities Trading turnover Other Income Profit / ILossI on disposal Investments Investment income Voluntary Income Grants and Donations 9,076 127 54 9,076 127 54 34 16 34 16 122 128 Total Income 9,434 9,441 Expenditure on: Ralsing funds Fundraising Trading 84 84 Charitable Actlvities Educatiull dnd grant making 9,134 9,137 Total expendltu 9,218 9,221 Net Income 216 220 Transfers between funds Net movement of funds 16 151 221 220 Funds brought forward i August 2020 16,651 279 270 17,2(K) Funds carried forward 31 July 2021 17 16,872 283 265 17,420 38