COMPANY REGISTRATION NUMBER.. 207173 REGISTERED CHARifi NUMBER: 312052 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 31JULY2023
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED YEAR ENDED 31 JULY 2023 Contents Page Governors. Officers and Advisers Report of the Board of Governor5 3-12 Report of the Auditors 13-15 Consolidated Statement of Financial Activities 16 Consolidated Balance Sheet 17 Frensham Heights Educational Trust Balance Sheet 18 Consolidated St3ternent of Cash Flows 19 Notes to the CDnsolid3ted 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 2023 DIREcfoRS AND GOVERNORS Williarll Bird ICh3ir retired 24 Jun 231 AnEUS C3rlill ITrea5urer retiied 24 Jun 231 Richard Fry Katherine Love sally Marriott William Marriott Katherine Poulsom {reti d 25 Mar 231 Danuta Staunton lappointed 25 Mar 231 Jackie Sullivarl Philip Ward (Vice Chairl Gregory West lappointed 25 Mar 231 Simon Wilcox (Chairl (appointed 25 Mar 231 Joris Wonders13ppointed 30 lun 231 FINANCE AND GENERAL PURPOSES COMMIThEE Angus Carlill Ichair retired 24 lun 231 William Bird IE% Officio retired 24 junl Richard Fry Katherine Poulsom (retired 25 M3r 231 Jackie Sullivan Gregory West Simon Wilcox (Ex Officiol EDUCATION COMMirrEE Philip Ward (Chairl Richard Fry S311y Marriott Danuta Staunton Gregory West William Blrd (Ex Officio retired 24 Jun 231 Angus C3rliS1 IEX Officio retired 24 Jun 231 Simon Wilcox IEX Officiol GOVERNANCE, NOMINATIONS AND REMUNERATION COMMITtEE Philip Ward ICh8irl William Bird (retired 24 Jun 231 Angus C8rlill Iretired 24 Jun 231 Kate Lovè William Marriot Simon Wilcox ESTATES COMMIThEE Jackie Sullivan (Chairl William Marriot Angus Carlill (retired 24 lun 231 William Bird (Ex Officio retired 24 Jun 231 Philip Ward IEX Ofliciol Simon Wilcox IEX officiol
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED GOVERNORS. OFFICERS AND ADVISERS YEAR ENDED 31 JULY 2023 HEAD ACTING HEAD INTERIM HEAD Rick clarke Iresigned l Mar 231 Laura Griffiths11 Mar- 31 Aug 231 Andrew Fisher11 Sep 231 INTERIM BURSAR & COMPANYSECRETARY John Pralten Note.. Officer5 li.e. chair. Vice Chair and Treasurer) are ex-officio members of all B03rd committees unle55 they are Chair of a Committee. REGISTERED OFFICE Frensham Heights Rnwledge Farnhdtn Surrey GU104EA COMPANY NUMBER REGISTERED CHARITY 207173 312052 BANKERS HSBC Bank plc 30 Princes Mead shopping Centre F3rnborough H3mpshire GU14 6YB SOLICITORS GBH Law (trading as Goodyear Blackie Herrington Solicitors) 7-8 Innovation Place Douglas Drive odalmin8 Surrey GU7 IJX AUDITORS Crowe U.K. LLP 55 Ludgate Hill London EC4M 71W INSURANCE BROKERS Marsh Insurance Brokers Limited Rockwood House 9-17 Perrymount Road Hayward5 Heath West Sussex RH16 3DU
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OFTHE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2023 The Governors of Frensham Heights Education31 Trust Limited, who are also the Directors and Charity Trustees, are pleased to present their annual directors, report together with the consolid3ted financial statements of the charity and its subsidiary for the year ended 31 july 2023 which are also prepared to meet the requirements for 3 directors, report and 3ccounts for Companies Act purposes. The fin3ncial statements complywith the CharitiesAct 2011, the Companies Act 2006, the Memorandum and Articles of A550ciation, and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charitie5 preparing their accounts In accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. DIREcfoRS' REPORT CONSTITUTION AND OBIEcrs Frensham Heights Educational Trust Limited was founded under Articles of Association dated 10 july 1925 Bs amended on 4 April 1950, 22 June 1996, 11 JanLiary 2006, 5 December 2020, and redrafted 2022 for accept3nce December 2023. It is constituted as a company limited by Shares. registered in England, No. 207173, and 15 registered with the Charity Commission under Charity No. 312052. The charity's principal Objects, as set out In the Memorandum of Association, are the advancement of education, including the provision of 3 school for boys and gir15 at Frensham, the holding of exhibitions, classos or conferences, whether generas, professional or technical, 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 School h3s established and administered during the year bursary awards and other benefactions and act5 a5 the trustee and manager of property and gifts eiven or established in pursuance of these Objects. sTRUURE, GOVERNANCE AND MANAGEMENT Contact Informatio The Governors, Head, Company Secretary, and principal address of the Charity are a5 listed on Pages l- 2. Details of the Charity's professional advisers are also listed on Page 2. Group Structure and Relationships The Charity has a wholly owned non-charitable subsidiary, Frensham Heights Enterprises Limited, IC.omp3ny nuTmber 28668641 which was incorporated in 1993. Its principal activity is managing the hiring 3nd lettirig of facilities at the School, Board of Governors One third of all Governors retire by rotation each year lincluding sny Governor who is an officer). Anv retiring Governor will be available for immediate re-election and the expectation is that Governors will serve eitl)er two or three torms of three years each. I hree Governors retired during the year and four new Governors wero clecled. Tlie Chair IWillidlYI Bird) retired on 24 lune 2023 and a new Chair Isimon Wilcoxl was elected. A Register of Skills is maintained for the appointed members of the B03rd and this information inforrns 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 Board appointments. Members of the Goverriing Body are appointed against the skills register, which is considered and approved by the Governin6 Body on an annual basis. Potential Governors undergo a series of interviews and briefings before attending a committee and then the Board 35 observers,. after which they may be appointed. New Governors undergo induction sessions with the chair, the Head and Company Secretary to brief them on.. Iheir
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OFTHE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2023 legal obligations under charity and company law,. the Charity Commission 8uid3nce on public benefit; the content of the Memorandum and Articles of A5sociation,' the committee and decision-making processes- and the Strategy and recent financial 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 trainin8 events to facilitate the undertaking of tFieir role. All Governors have received training or attended external briefings by professional advisors throughout the period. Details of relevant courses and seminars are regularly circulated to 311 Governors, Governance Ccde The Trustees are aware of the Charity Governance Code published in 2017, anc5 updated in March 2021, which set8 Out the principles and recommended practice for good governance within the sector. Governance is kept Ljnder constant review and modifications and improvements are continuously implemented. The Chair will be conducting a full review of governance during the 2023-24 Academic Year which will include a review of 311 strLJCtures and membership. Related parties and co-operatlon wlth other organlsations One Governor provided consLJltancy services to the School in the year. through a related company. No other Governor received remuneration or other benefit from their work with the School in the year, Any connection betwèen a trustee or senior manager of the School must be disclosed to the full Board of Governors in the same way as any other contr3Ctual relationship with a related party. Organisational Mana8emernt 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 carrled out by committees. During the yeara Governance. Nominations, and Remuneration Committee was formed to discuss the Head's and Bursar's salaries, r)ominations to the Board of Governors, and governance compliance. The Finance Committee was renamed the Finance alld General Purposes Committee to include Health and Safety. All other committees sit a minimum of three times per ye3r. The committees and their membership are listed on Page l. The Governors also hold an annual strate8V meeting to examine and agree key issues impacting the School. One Governor sits on the School's Health and Safety Committee,. at least one Governor acts as observers on the Parentg Committee,. and the Staffcommon Room Committee. The day-to-day management of the School is delegated to the Senior Leadership Team1SLTI. which is comprised of the Head, Interim Bursar, Deputy Head, Deputy Head IAcademicl and Head of junior School. The Head and the lrntorim Bursar 3re invitod ex-officlo to all Board and committee meetinEI. The pay and remuneration of the Head is set by the Governance, Nominatioris and Rernuneralion c.ommittee having con£icJpre.d ind?pendenl h?nr.hmark rp.p()rt£ ,Ic.ri).%E I hp indopendent school education sector and agreed by the Main Board at their Spring or Summer Board meetings. During the year the Head (Rick Clarke) resigned, and the Deputy Head IAcademicl was appointed Acting Head uritil Andrew Fisher was able to Start as Interim Head covering the period until the new Head (Ben Mccareyl is available either in May or September 2024,. thereafter Andrew Fisher will act as mentor to Ben Mccarey for one term.
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITEO REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2023 AIMS, OBJECTIVES AND ACTIVITIES Public Benefit Aims and Activlties In meeting its Objects, the School's public benefit aim is to provide a world class progressive education thal emphasises progregsive values and focuse5 on students as individuals to bring out their strength5, with creative and performing arts given equal status alongside more traditional academic subjects and sport. In line with its ethos, the School welcome5 Students from all backgrounds where it is believed that the prospective student can bènefit from the education provided at the School. In support of its public benefit aim the School a150 awards annual burs3ries, which are outlined in the grènt making section of the Strategic Report. The Board has been and remains committed to awardin8 bursaries to widen participation at the School, recognising the significant opportunities such bursarie5 provide to the recipients and their families, In addition to providing education 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 benef it requirement (Charities Act 20111, therefore the School also works in partnership with local schools, charities and organisations to wi(Jen public access to education. In 2022-23 the School continued to support our local community, which is evidenced on the Schoo15 Together website h.tt www.schoolsto ether.or Cèse-studies ?schoolld-47119 where 14 different cases of support are identified. The School continues to work closely with Rowleclge Primary School supporting the Forest School programme, offering access to science laboratories and a member of staff Is also a Governorthere. The School has continued to work closely with Bordon Junior School, providing lessons and activities in Ict, with our students acting as mentors and teachers. Other local, maintained sector schools, youth groups, SCOLJtS and cubs made LJ5e of the School's music, art and sports facilities and rninibuses. The School ha5 also forged very strong charitable links with All Saints School and Amao Orphanage in Malawi. The school has been working al a second School (Mikuyul in Malawi, with plans to expand beyond this in the future. Over the last ten years. in addition to working visits by slaFf and students. practical assistance and ch3ritable funds raised by the School community have had significant impact for people livinE in those Malawi communities. The school made the first trip in 3 years to Malawi in luly2023. Following Russia's invasion of Ukraine, the School became a 'hub' for displaced Ukrainian families allowing them to meet informally once every week. The school also collects for a 'Free Shop, for the families where they can obtain essentials like clothing and toiletries. The School has four Ukrainian students on IQO/ty bursaries. Objectives for the Year The School's principal objectives for the year were to.. Maximi5e student achievement 2. Maximise student personal development through effective tutoring dnd involvemeiit in opportunities outside the classroom Inspire and f urther develop the teaching Staff through professional development opporlunities 4. Further enhance teaching and learning 5. Maintain and grow student numbers 6. Deliver the School's charitable object5 and demonstrable public benefit 7. Maintain financial stability
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OFTHE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2023 STRATEGIC REPORT The Strategic Oirection of the school The previoLJS Head completed work on reviewing and updatin8 the School's vision, mission, and values. The School will maintain this strategic direction until the new Head is appointed in May or September 2024 when they will be refreshed. OUR VISION Empowering tomorrow's change-makers to find their inspiration today through a transformative ecluc3tion. OUR M15510N We continue to pioneer a better education. one which celebrates the indivldu31 as part of a nurturing Jnd supportive Community. amplifles the voices of our community, encouraging self-expression and sharing of ideas. brims with inspiration from strong rel3tion5hips with outstanding educators in 3 stimulating environment. The 8oard is confident that the re-3rticulation of the airlls and mission places the School firmky in 3 position to continue to deliver its progressive educational offering as a leading progressive school for the years to come. OUR VALUES The School champions the delivery of a values-based culture. which 3re'. Originulity of thought Splrit of togetherness Respect of individuallty Cour(JgE to try This year the Junior School further simplified the values, SO that they would resonate with the youngest children in the School. The simplified examples are: Be creative klnd Be yourself Be bruve The Junior School has committed to embedding these values in the curriculum, behavlour management and activities. The School has taken a strategic decision to bolster its offer in Performing and Creative Arts with the intioduc*ion of the Arts Award at the end of the 2022-23 academic year. Tliis has proven successful in attracting new 5tudpnts into the sixth form and il will play a sigiiificanl pa¥t in the School's njarketiiig plans for the comlng year. The long term strategic plans are being reviewed due to a change of school and Board leadership- thi5 process is being led by the Board alongside the transitlDnal Head and in consultation with staff and the wider school communityi in order to set out a strategic plan for the School through to 2035. Princlpal Activlty of the Year The principal activity continues to be the provision of day and boarding education for boys and girls aged frorr) 3 to 18 years. This year the School averaged 49712022.. 5441 students of whom 43912022.. 4671 were day students and 5812022.. 771 were boarders. In January 2022 the School was Subject to an
FREN5HAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OFTHE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2023 Independent Schoo151 nspectorale IISII inspection, which was a full Education Quality and Compliance was found to be fully compliant and graded EXCELLENT in 311 areas of education provision and personal development. The School has continued to focus on the quality of teaching, developing itbnovation in the curriculum and ensuring that reporting methods are all making further progress and improvements. The School will be working towards its next inspection in 2025 undvr the 2023 inspection framework. Grant-making During the year the School set aside funds to Support bursaries, which were offered to parents of students who could not otherwise afforrl to send their children to the school. based on a comprehensive means-tested assessment of financial need. The process requires parents or guardians to complete a detailed financial form covering incorne, expenditure and a55ets which is reviewed by the Bursar and Head, and 3 representative of the Board of Governors in difficult cases before any award is made. Bursary awards are re-assessed annually. The School's policy is to ensure funds are allocated for bursaries and to develop further its programme of Scholarship and Enrichment activities, which is open to scholars, as well as the wider School community. I n Support of all these awards the School committed £510k12022.. £594kl this year. of which £460k 12022.. £532kl was awarded in bursaries to 38 students12022.. 411 through its General Fund. of which 9 12022.. 141 were 100%. Within this bursary funding, £86k 12022.. £16kl was 311oc3ted in-year for Ukrainian pupi15 and which was partly funded by donations. The availability of all such awards for fee- assistance is advertised on the School's web51te at www.frensham.or Volunteers old Fren5hamians, Friends of Frensh3m, parents arid members of the local community assisted and supported the School's educational and cultural activities throughout the year and the Board would like to record its appreciation of this invalLJable and continuing support. REVIEW OF ACHIEVEMEN AND PERFORMANCE Operational Performance of the School Educational value has been added to student achievement across all age groups; this has been monitored using nationally recognised predittion information systems. Through the Scholarship and Enrichment Programme, students gain a wealth of experiences which not only enhance their curriculum learning but also develop Èssential life skills, 811 of which add value to their time 3t Frensham. Trips and educational visits provide atcess to social, cultural, moral, and spiritual experiences as students are challengeé and have the opportunity for experiential learnin8. students have been offered the regular programme of sport, music, dance, dram, and School trips. Sports fixture5, together with sports trips, provided fantastic opportunities for students to remaln active. Full access to the theatre meant that plays, dance concerts and rock & pop gigs were in full operation, with students excelling in all of these. The normalisation of school trips. a key el@ment of a Frensham education, meant that significant trips such as the Ypar 6 trip to Pembrokeshire, the Yeai 9 trip to the Peak District and the Year 12 trip lo Knoydart iii Scotland all went ahead. Alongside this, many 5moller trips for other year group5 were offered too. Exam results in the summerwere s3tisfactory, and as reported In the national media, the examinations were marked at pre-covid levels. The students performed at or above our expectations. GCSE and BTECS.. students achieved 19.5Ytr 9-8,. 33% 9-7- 94% 9-4 grades. A Levels.. students èchieved 22% A'_A, 44% A'_B, 96% A* E.
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OFTHE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2023 The School continue5 to attract students in the Southeast and London through the unique nature of our education and pastoral care and has maintained strong student numbers. The School 31so remains active in the international marketplace and appeals to overseas students, mainly from Europe, with 2 number from Eastern Europe and further afield. SUSTAINABILITY The School is fully aware of its responsibilities in making progress towards a more sustainable campus. It has a so13r field that contributes towards the costs in the Main Building during term time and FIT contribution in the accounts in the amount of £32k12022.. £26kl. All new buildinBS are constructed to the sustainability regulations in place at the time and where POS5ible loft insulation, double glazing are added to staff accommodation when the opportunities are presented. The School has established an educational project, Worthy Earth, where years 7&8 5tLJdents are introduced to Sustainable growing and planting techniques at a nearby farm. FUNDRAISING The School recognises that its alumni and current parents have already committed Significant funds to the Schoc>l by the families, payment of School fees and has historically taken a low-key approach to additional fundraising. The approach to fundr3ising was recently reviewed and plans are in operation to train a current member of the Marketing Department to be responsible for the 2025 Centenary Campaign supported by a suit3bly qualified Governor. Funds raised are placed in a restricted fund intended for the future provision of bursaries. The School is aware of the need to protect vulnerable pèople from unreasonable and persistent fundraising pressure,. it has not received any complaints about fundraising during the year. Ring-fenced funds of 18.4k have been ralsed to support the Ukrainian students in School with their everyday educational needs and to fund their educational trips, of which £14k was used in year. The remainin8 £4.4k remains ring-fenced on the balance sheet for the forthcoming year. FINANCIAL REVIEW AND RESULTS FOR THE YEAR Results The School aims to generate sufficient surplus for reinvestment that advances the educational experience of all students and finances improvemer)t5 to the School's fatilities, so that it can continue to offer high quality education and student development. The Board had identified the following strategic priorities for the future.. Investment in our currIclrn offer 2. Investment in our people 3. Investmenl in growth 1nve.fjLment in our communitv 5. Preparalion for possible chan8e of Government 6. Maintaining bursary provision The majoiity of the School's income derives from fees and is closely related to student numbers for the year,. enterprise trading activity also creates income. Enterprise activity this year has been robust b005ted by a near-normal student let in the summer and the School being used as a film set durin8 August 2022.
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2023 Unfortunately, in the current year the group made 3 net loss of1£942kl12022 net 5urplus'. £182kl. This included profit from the trading subsidiary of £166k12022.. £64kl. Trading Company The ivholly owned 5ub5idlary and trading company, Frensharn Heights Enterprises Ltd. continues to manage successfully the letting and hiring facilities at Frensham Heights. For the year ended 30 lune 2023 the trading company made a gift aid payment to the School of £167k12022=£8.3411. Borrowing and Investment The School has had no borrowing requirement during the year and holds no investments. ReseNes Level and Policy and Financial Vlablllty The School's reserves policy is to maintain sufficient unrestricted income reseNes 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 conjunction with access to external financing. The level of free reserves will therefore fluctU8te within the cycle of the capital programme. The Group's tota reserves of £16,660k at the year-end included £581k unspent restricted income and £16,079k unrestricted income, £11,315k of this represented the net book value of fixed assets less associated internal funding arr3ngements and £833k designated for Scholarship funding, made against future years, fees leaving free reserves of £3,931k12022.. £4,846kl 31 the year-end, This compares with a policy level of £2,684k12022.. £2,500kl which would provide cover for up to three months, operating costs 12022.. three months). The Trustees, policy 15 not to maintain free reserves in its wholly owned subsidiary, which therefore h3s no impact on the School's reserves. The Governors regularly review the levels of reserves. GOING CONCERN The School produces regLJlar financial information including budgets, forecasts and a longer-term strategic business plan, which are c105ely monitored by the Governors. Through this strategic planning and monitoring of financial information, the Governors are confident of moving towards a breakeven and then surplus position in the medium term, from this yearfs deficit. These budgets, cash flows and forecasts have been reviewed and revised to take into consideration the current economic climate and the potential impact of a change of government. Revised forecasts have been prepared together with cash-flow5, based on the most likely expected outcome f rom these scenarios, and detailed examination by the Finance and General Purposes Committee. The cash flow modelling with sensitivity analysis indicates that, despite thisyear's loss, the cash reserves of the School are adequate to rneet the charity's obligations as they fall due, The Schoo5 has scoped out income and expenditure up to and including 2027-28 adopting a 'worse case, scenario. Although the School faces another difficult year in 2023-24. as it recovers from the 2022-23 loss. a steady recovery is forecast thereafter. Longer term, Governors are mindful that the viability of the School depends on successful execution of the Strategic plan loi cost reducliori <ll'id iiicieasin8 sludeiit iiumbers. Governors will tlosely rnonitor progress against plan. Therefore, the Governors have a reasonable expectation that the charity has adequate resources to continue its activities. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Governor5, Responsibilities bearing in mind current rates of inflation. FIXED ASSETS Acquisitions and disposal of fixed assets during the 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
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OFTHE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2023 3re satisfied that their current market value exceeds their historic cost. but do not wish to spend charitable funds on obtaining 3 formal valuation for accounts purposes. RISK mANAGEmEr Tlie Budrd of Governors is responsible for the identif ication and management of risk and continues to keep the School'5 activities under critical review at every 8oard meeting. Detailed consideration of specific risks is also conducted by relevant Governor Committee5 and their recommendations reported to the Board of Governor5. The key controls used by the charity include.. Formal agendas for 311 Committee and Board activity* Comprehensive strategic plannin& budgeting, and management accountin8,' Established organi53tional structure and lines of reportinE' Comprehensive Risk Register; Form31 written policie5,' Clear authorisation and approvals,. and Vetting procedures as required bylaw for the protection of the vulnerable. The highest priority risks identifiec5 by the Board of Governors at the end of the year which could lead to financial and operational challenges are.. l. The ongoing cost of ihe Teachers, Pension Scheme ITPS) phased Withdrawal 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 changing government policy including potential fLJrther incre3ses for employers, contributions to the Teachers, Pension Scheme increases in National Insurance loss of bLJsiness rates relief d. VAT on fees 6. Any reduction in the demand for independent school education 7. General deterioration of the economic he31th of our customer base 8. Any adverse impact upon the wellbeing of our students and staff 9. Any adverse publicity affecting the School's reputation 10. The war in Ukr3inÈ 11, Repercussions of cost-of-living increases. Multiple strategies are being employed to m3n3ge these risks including enhancing our marketing efforts for the Frensham Heights, proposition,. in addition, we will continue to grow and maintain our student nLJmbers,' and to exercise tight financial control over spendin8 and debtors. Fle31th and Safety is recoenised as a SiEiiificii nt area of non-fincincial risk and il 1£ close.ly Inanciged. The risks range from fire and infraslruclure damage to personal risks. The risk5 associated with all activities are minimised by preventative planning and risk assessment. The Board of Governors is satisfied that for all major risks identified, appropriate controls have been put in Pla and are maintained to mitigate the risks, It is recognised that Systems can provide reasonable but not absolute assurance that major risks have been effectively mitigated. TEACHERS, PENSION SCHEME In common with much of the sector, the Schools, largest cost is that ol staff costs. A significant part of the total staff costs is the School's commitment5 to fund pension benefits for our staff. This has proved 10
FRENSHAiVI HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2023 increasingly challenging in respect of the Teachers, Pen510n Scheme due to the incre3sing employers, contributions now required into that scheme. In 2021 the Governors recognised their duty to act prudently in connection with the longevity of the School and have considered.. the Dngoing impact of the increased contribution on the School's finances. They considered that the impact is a very significant one with implications for the future viability of the School. b. Nevertheless, after extensive negotiations with the staff and teachlng unions an agreement was reached to adopt 3 ph35ed Withdrawal from TPS. The 2020 valuation is estiinated to result in an additional s% to the Employers, Contribution, however, a significant number of te3chers left during the year lincluding the Head, Deputy Head (Academic) and Deputy Head (Pastoralll meaning that the increase is under cashflow estimates. Costs are, therefore, starting to reduce. c. The need to ensure the School has adequate financi31 resilience to invest in our people, in our estate, in our IT systems and in our important strategic priorities,. our commitment to widening access through a larger number of bursaries. FUTURE PL4NS The School's Strategic and Business Plan, charitable objects and ethos provide the strategic direction for future planning,. these are captured and articulated in the School's Development plan 2022~2023- this document set5 Out the specific and detailed plans for next year, The key objectives within the current plan are.. 1. Stu(lent Achievement. Maximise Student achievement through enhancements to Approaches to Learnin8 and the role of tutors. Further develop the 5kills-b3sed curriculum from Years 7 & 8 and throughout the Junior school 2. Student Personul Development: M3ximise student developme.nt by improving organisational skills and improving pastoral and wellbeing provision. Further refine the PSHE IHori£onsl programme. 3. Marketing. Currently numbers are circ3 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 into the Early Years. The intention being to develop Frensham'5 Posltion as a thought leader for progressive education. 4. Purent Communicution/Reputation. Build on the success of the Parents, Information Evenings. Review effectiveness of parental communications. Explore the use of communication software like My School Portal to enhance communication with parents. S. FinLFnce und Site/FJcilitie£ Development. Implement improvements to Finance and HR systems. An Estates frfasterplan has been produced, which 5UPPOrts space utilisation to enable and inform long-term capital planning for the estate. Continued initiatives to incre3se energy efficiency and work to sustain the woodlands are onEoing. 6. Public Benefit. Maintain sLronE links with local schoo15, the local ¢ommiJnity aiid partner scliools iri Malawi. Coniinue wilh support for Ukrainian childreii iii the School and act a5 a liub for Ukrainian families In the area. Following the resignation of the Head, Rick Clarke, the Governors carried out an extensive recruitment campaign using search consultant5 for the new Head. The c3mpaign resulted in an excellent response, which was narrowed down to a long list of six candidates, then a short list of four candidates after interviews off-site. Short-listed candidates were subject to a series of interviews and a psychometric test after which Ben Mccarey was selected. As Ben McC8rey is unable to start until September 2024 at the latest, interim arrangements were put in place by employin8 Andrew Fisher who is an experienced previous Head OF the School.
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31JULY 2023 BOARD OF GOVERNOR5 The Governors are all Director5 of the School and their non-beneficial interests in the ordinary share capital in the year are 35 shown in the following table.. 31July2023 15 31JuW 2022 Simon Wilcox William Bird Angus Carlill Sally Marriott William Marriott Kathprine Poulsom Jackie Sullivan Philipward Richard Fry Catherine Love Gregory West Danuta Staunton Joris Wonders 20 15 15 15 15 15 15 15 15 io STATEMENT OF GOVERNORS, RESPONSIBILITIES The members of the Board of Governors Iwho are also the directors 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 Reporting Stand3rd applicable in the UK and Republic of Ireland. Company law requires the members of the Board of Governors to prepare financial statements for each financial year. Under company law they must not approve the f inanci21 staterllents unless they are satisfied that they give a true and fair view of the charitable cornp3ny and the group, including the income land its application) and expenditure of the group for thèt year. In preparing these finar)cial statements, the members of the Board of Governors are required to.. select the most suitable accounting policies and then apply them consi5tentlv,' observe the methods and principles in the Charities SORP 2019 IFRS 1021,. make judgments and estimates that are 8$onable and prLtdent,' state whether applicable UK accounting stand3rds 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 basi5 unless It is inappropriate to presume that the charitable company will continue in busine55. The members of the Board ol Goveriiors are responsible for keeping adequale accoiintins record5 that are sufficient to show arid explain tho charitable fOmPclllV':, tr¢insactions, diJrclo.%(-: wil-.li I'e4so)noble accuracy at any lime the fin6ncial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions OF the charity's constitution. They are also responsible for safeguardin8 the assets of the charity and the group and for taking reasonable step5 for the prevention and detection of fraud and other irregularitie5. Insofar as each of the Directors, as member5 of the Board of Governors, at the date of 3pproval of this report is aware there is no relevant audit information (information needed by the Company's auditor in connection with preparing the audit reportl of which the Company's auditor is unaware. Each 12
FREN5HAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORTOF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2023 member of the Board of Governors has taken all the steps that he or she should have taken as a member of the Board of Governors to make himself or herself aware of the relevant audit information and to establish that the Cotnpany's auditor is aware of that information. AUDITOR5 Crowe U.K. LLP have expressed their willingness to continue in office as auditors. The School will retender the audit contract in 2023-24. This Annual Report, including the Strategic Report, prepared under the Charities Act 2011 and the Companies Act 2006, was approved by the Board of Governors of Frensham Heights Educational Trust Lirnited on 9 December 2023 and is signed as authorised on its behalf by.. Simon Wilcox: Oirector & Chalr of Govemors 13
Independent Auditorfs Report to the Members of Fren5ham Heights Educational Trust Limited Opinion We have audited 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 3nd Company B31ance Sheets, thè Group Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The f inancial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Fin3ncial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland Iunited Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the Group's 3nd the charitable companrfs affairs as at 31 July 2023 and of the group's income and expenditure, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accountln8 Practice,. and have been prepared in accord3nce with the requirement5 of the Companies Act 2006. Basis for opinion We conducted our audit in accordanc& with Internation21 Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described In the Auditorfs responsibilities for the audit of the financial statements section of our report. We are indepenclent of the group in accordance with the ethic31 reouirements that are relevant to our audit of the financial statements in the UK, including the FRCS Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the fillancial statements, we have concluded that the trustee's use of the going concern basis of accounting in the prep3r3tion of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's or the Eroup's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern a described in the relevant sections of this report. Other information The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report. other than the financial statements and our auditor's report thereon. Our opinion on the financi31 statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance concliision thereon. OLJr responsibility is to read the oiher inforniation and, in doing so, consider wliether tlie other information is Materially inconsistent with the financial staternents, or our knowledge obtained in the audit or otherwise 3ppear5 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 15 a msterial misstatement of this other information, we are required to report that fact. We have nothing to report in this reg3rd. 14
Opinions on other matters prescribed by the Companies Act 2006 In our opinion based on the work undertaken in the course of our audit the information given in the trustees, report, which includes the directors, report and the strategic report prepared for the purposes of company law, for the financial ye3r for which the financial statements are prepared is consistent with the financial statements,. ènd 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 requlred to report by exception 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 following matters in relation to which the Companie5 Act 2006 requires us to report to you if, in our opinion.. adequate and proper accounting records have not been kept or returns adequate for our audit have not been received from branches not V151ted by us,. or the financial statements are not in aEreement with the accounting records 3nd returns,. or certain disclosures of trustees, remuneration specified by law are not made,. or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the trustees, responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they Eive a true and fair view, and for such internal control as the trustee5 determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company'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 trustee5 either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Audltorfs responsibilitles for the audit 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 a 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 econornic decisions of users taken on the basis of these financial statements. Oetails of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below. A further description of our responsibilities for the audit of the financial Statements is located or) the Financial Reporting Council's website at.. www.frc.or auditorsres onsibilities. This description forms part of our auditorfs report. Extent to which the audlt was considered capable of detecting irregul3ritie5, Including fraud Irregularities, including f raud, 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 f raud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and 15
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 material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company's and the group's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent School Standards) Regulations 2014.
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 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 with 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 some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non· detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non· compliance and cannot be expected to detect non-compliance with all laws and regulations.
Use of our report
This report is made solely to the 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 this report, or for the opinions we have formed.
Alastair Lyon Senior Statutory Auditor For and on behalf of
Crowe U.K. LLP Statutory Auditor
London
Date: 7 February 2024
16
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES {Incorporating an Income and Expenditure account) FOR THE YEAR ENDED 31 JULY 2023 Total Funds 2023 £'ooo Totul Funds 2022 Unrestritted Restricted Endowed Funds Funds Fund5 £'ooo £'ooo £'ooo Income and endowments from: Charitable Activitie5 School fees receivable Other educational income Other ancillary trading income Other trading activities Trading turnover other Income Profil J IL05sI on disposal Investments Investment income Voluntary Income Grants and Donations 9,278 286 369 9,278 286 369 9,976 226 181 466 32 1141 466 32 1141 219 42 91 93 io 34 34 21 TotBI Income 10,508 36 10,544 10,674 Expenditure orn.. Ralsing funds Fundraising Tradin8 293 293 149 Charitable Activities Education and grant making 11,179 14 11,193 10,343 Total expenditure 11,472 14 11,486 10,492 Net Income 19641 22 19421 182 Tr3nsfers between funds Net movement offunds 16 151 151 19591 22 19421 182 Funds brought forward l August 2022 17,038 304 260 17,602 17,420 Funds carried forward 31 July 2023 17 16,079 326 255 16,660 17,602 All amounts relate to continuing operations. There are no recognised gains or10sses other than the results for the year set out above. The Notes on Pages 21 to 38 form part of these financial statements. 17
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED (Company Number: 2071731 CONSOLIDATED BALANCE SHEET AS AT31 JULY 2023 Notes 2023 2022 £'ooo E'ooo gocx) FIXED ASSETS Tangible fixed assets 9a) 11,571 11,931 11,931 11,571 CURRENT AET5 Stocks Debtors.. amounls fallin8 due within one year Cash at bank and in hand li 832 6,474 7,308 614 6,575 7.191 CREDITORS: amounts falling due within one year 12 2,218 1,520 NETCURRENT AssFrs 5,090 5.671 TOTAL ASSETS LESS CURRENT LIABILITIES 16,661 17,602 CREDITORS: amounts falling due after more than one year 13 NET ASSETS 16,660 17,602 CAPITALAND RESERVES Called up share capitsl THE FUNDS OF THE CHARITY UNRESTRICTED FUNDS Scholarship fund Tangible fixed asset fund Gener81 fund 15 16 833 11,315 3,931 521 11,671 4,846 17,038 16,079 RESTRICTED FUNDS Bursary and award funds ENDOWMENTS 326 255 304 260 564 581 TOTAL FUNDS 17 16,660 17,602 The loss for the Financial year dealt with in the financial statements of the parent Company w3s1£942kl 12022 profil.. £126kl. Approved and authorised for issue by the Board of Governors on 9 December 2023 Simon Wilcox Governors and Directors Richard Fry The Notes on Pages 21 to 38 form part of these financial statements. 18
FREN5HAM HEIGHTS EDUCATIONAL TRUST LIMITED (Company Number: 207173) BALANCE SHEET AS AT31 JULY 2023 Notes 2023 2022 £'ooo £'ooo £'(yJo FIXED ASSETS Tangible fixed assets Investments 9bl io 11,571 io 11,930 io 11,581 11,940 CuRRENTSETs Stocks Debtors.. 3mounts falling due within one year Cash at bank and in han li 744 6,021 6,765 459 6,403 6,863 CREDITORS.. amounts falling due within one vear 12 1,693 1,206 NET CURRENT ASSETS 5,072 5,657 TOTAL ASSETS LESS CURRENT LIABILITIES 16,653 17,597 CREDITORS.. amounts falling due after more than one year 13 NET ASSETS 16,653 17,597 CAPITAL AND RESERVES Called up Share capital THE FUNDS OFTHE CHARfTY UNRESTRlCtED FUNDS Scholarship fund Tangible fixed asset fund General fund 15 833 11,315 3,924 521 11,671 4,840 17,032 16,072 RESTRIED FUNDS Bursary and aw3rd funds ENDQWMENTS 326 255 305 260 565 581 TOTAL FUNDS 16,653 17,597 Ap d and authorised for issue by the B03rd of Governors on 9 Decernber 2023. Simon Wilcox Governors and Directors Richard Fry The Notes on Pages 21 to 38 form part of these financial statements. 19
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2023 Note 2023 E'ooo 2022 000 £'ooo £000 Cash flows from operating actlvities Net cash provided by operatillg activities 11041 812 Cash flows from Irkvesting activities.. Payments for tangible fixed assets Non-cash payments for tangible fixed assets Proceeds on sale of tangible fixed assets Investment income and bank interest received 11031 13 (89) 93 io Net cash lused inl / provlded by investing activities (77) Cash flows from financlng activlties: Finance Costs Paid Net cash provided by flnanclng attivities Change in cash and cash equivalents in the reporting period iioii 736 Cash and cash equivalents at the beginning of period 6,575 5,839 Cash and cash equivalents at the end of the reporting period 6,474 6,575 The Notes on Pages 21 to 38 form part of these financial statements. 20
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTE5 TO THE CONSOUDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 JULY 2023 lil Reconciliatlon of net income to net cash flow from operating actlvities 2023 E'OOO 2022 £'ooo Net incoming resources Elimination of non-operating c35h flows.. 19421 182 lllvestment income Depreciation Charge Non Cash-Flow Item Profit on sale of assets Ilncreasel / decrease in debtors Ilncreasel / decrèase in stocks Increase / Idecreasel in creditors Increase / Idecreasel in fees in dvance scheme creditors Increase / Idecreasel in paTentS' deposits 193 450 {ioJ 606 12181 (216) 530 141 314 (97} 28 34 838 63Q Net cash provlded by operating activities 11041 812 lill Analysis of cash and cash equivalents 2023 £'ooo 2022 £'ooo Cash held on current account Cash held on deposit Petty cash held 3,582 2,890 3,020 3,552 6,474 6,575 21
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TOTHE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 JULY 2023 COMPANY INFORMATION: The School is a Public Benefit Entity reBistered as a charity in England and Wales and a company limited by guarantee. It was incorporated on 10 July 1925 (company number: 2071731 and registered as a charity on 15 ALJ8USt 1966 Icharity number.. 3120521. ACCOUNTING POLICIES a5is of preparatio The financial statements have been prepared under the historical cost convention in accordance with the Financi31 Reportin8 Standard applicable in the UK and Republic of I reland IFRS1021, the Companies Act 2006 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 Golng Concern.. As detailed the Report of the Governors, the Governors have reviewed and revised the School's financial forecasting considering the current economic climate, the forecasted deficit in 2022-23, 3nd their potential impact. Revlsed forecasts have been prepared together with cash-flows and restructuring based on the most likely expected outcome from these scenarios, with sensitivity analysis on the key assumptions. The cash flow modelling with Sensitivity analysis indicates that the cash regerves of the School are adequate to meet the charity's obligations as they fall due. Havin8 reEard to the above, the current cash position, and the expected cash flow over the next 12-24 months the Governor5 have a reasonable expectation th3t the charity has adequate resources to continue its activities for the foreseeable future and consider that therc were no material unceitdinties over the School's financial viability. Accorclingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Governors, Responsibilities. The function31 currency of the School is considered to be GBP because that 15 the currency of the primary economlc environment in which the School operates. The charity has t3ken adv3nt3ge of the exemption available to a qualifving entity in FRS 102 frotn the requirement to present a charity only Cash Flow Statement and certain disclosures aboLJt the charity's financial instruments. The consolidated accounts include Frensham Heights Enterprises Limited, rnade up to 30 lune 2023. In accordance with the exemption allowed under Section 408 of the Companie5 Act 2006, Ihe charity's Slatement of Fin.Inci31 Activities is nol separately presented. Crttical accounting Judgements and key sources if estimation UnrtaintY In the application of the accounting policies, Trustees are required to make judgement, estimates, and assumptions about the carrying value of asset5 and liabilities that are not readily apparent from other sources. The estimates and underlyin8 assumptions a based on historical experience and otherfactors that are considered to be relevar)t. Actual results may differ from these estimates. 22
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTESTO THE CONSOLIDATED FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 JULY 2023 ACCOUNTING POLICIES Icontinuedl The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are reco8nised 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 future periods. In the view of the trustees. no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year. Fees and similar income Fees receivable and charges for services and use of premises are accounted for in the period in which the serrfice 15 provided. Fees receivable are stated 3fter deducting allowances, scholarships and other remission5 granted by the School. Investment Income Investment income from dividends, bank balances and fixed interest securities are accounted for on an accruals basis. Voluntary Income Voluntary incoming resources are accounted for as and when entitlement arises, the mount can be reasonably quantified and the economic 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 fLinds' where these wishes are legally binding on the Governors. Donations required to be retained as capita1 in accordance with the donor's wishes are accounted for as'endowmènts'_ permanent or expendable according to the nature of the restriction. Governmerit 8rant5 are recognised on the performance model, when the Company has 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 recognised 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 frorn assessment to corporation tax on its net income and is able to reclaim tax deducted from covenants and interest received, bl d) fl Tangible flxed assets and depreciatlon Items of a capital nature and with 3 value greater than £10,000 have been c2Plt31ised, Followiiig a discussion with tlie School's professioiial advisors the depreciation on freehold buildiiigs was reduced from to 1%. Depi"eciation is pi-ovided annually at the following lates., Freehold buildings Timber buildings Modular bLJildings Motor vehicles Furniture and other equipment SolarPanels Computer equipment 1% of cost 5Yo to 6.7% of cost 4% of cost 25% of cost IOYo- 20% of cost 5% of cost 20% to 33.3% ofcost 23
FREN5HAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023 ACCOUNTING POLICIES (Continued) Expènditure Expenditure is accrued as soon as a liability Is considered probable, discounted to present value for longer-term liabilities. Certain expenditure is 3PPOrtioned to cost cateBories 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 directly attributable to the trading subsidiary (Note 31. Support Costs comprise a proportion of staff costs togetherwith a proportion of overheads of the School. Governance costs are those INCr[ed in connection with the governance of the School and compliance with constitutional and statutory requirements. Operating lease5 Rentals under operating leases are charged on a straight-line basi5 over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-1ine basis over the lease term. h) Stock Stock represents goods for resale and is stated at the lower of c05t and net realisable value. Pension schemes The School contributes to the Teacher5, Pension Oefined Benefits Scheme at rates set by the Scheme Actuary and 3dvised to the Board by the Scheme Administrator. The scheme is a multi-employer pension scheme and it is not possible 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 a 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 Withdrawa5 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. Finan¢i31 instruments kl Basic financial instruments are initially reco8ni5ed at transaction value and subseouently me3sured and amortised with the exception of investments which are held at fair value, Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtorg. A specific provision is made for debts for which recoverability is in douht. Ca<h at bank and in hand is delined as all cash held in iiistaiit access bank account5 arid used as worl(ing capital. Fiiiancial licibilities lield amorti£?d cost comprise trade creditors, other creditors, accruals and deposits. 24
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 JULY 2023 CHARITABLE A1vITIEs- FEES RECEIVABLE 2023 £'ooo 2022 FeES receivable consist of.. School Fees Less.. Total bursaries, grants and 311owance5 9,994 {7161 10.794 1818) 9,278 9,976 NET INCOME Net income is stated after charging.. Depreciation Df tangible f ixed assets Auditors, remuneration Audit Other services 450 24 607 20 Staff costs (Note 81 Operating lease costs 8.070 73 7,460 72 25
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31JULY 2023 TRADING INCOME Frensham HeiEhts Educational Trust Ltd owns the entire issued share c3Pital of Frensham Height5 Enterprises Ltd, Company Number 2866864, registered address Frensham Hp.ights, RowlecSge, Farnham, Surrey GUIO 4EA. The principal activity of this company is that of managing letting and hiring facilities available al Frensham Heights. 30June 2023 E'OOO 30 June 2022 £'ooo Turnover Cost of sales 466 12071 219 (87) Gr055 profit Administration expenses 259 1931 132 (68) Operating profit Interest receivable 166 64 Profit on ordinary activities before taxation Taxation Profit on ordinary activitie5 after taxation 166 64 166 64 Retained earnings at the start of period Profit for the year 150) 64 166 Gift aid to Frensham Heights Educational Trust Limited 166 Retained earnings 3t the end of period 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 207 93 (8) 87 (8) Fundi-aising Irading as 011 SLatemeiit of Financidl Ailivilies 292 147 The School's and company's ye3r-end ar&. non co-terminus 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 m3teri31 impact on the consolidated account5. Administration expenses of the subsidiary include auditors, remuneration for audit services of £4.8k12022- £4kl and for other seroices El.7k12022- £2kl. These have been included Iri governance costs in the consolidated statement of financial activities. 26
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTESTO THE CONSOLIDATED FINANCIAL STATEMENT5 ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2023 INVESTMENT INCOME Total 2023 £'ooyJ Totul 2022 £'ooo ank deposit account interest 93 io INCOME FROM CHARITABLEACIVITIES 2023 £'ooo 2022 E'ooo Other educational charitable activitles Entrance and registration fees Courses and sub-lettings 176 iio 152 74 286 226 Other ancillary activities School Trips, Meals and Other Income 369 181 369 181 ANALYSIS OF EXPENDITURE Staff Costs £'ooo Other Costs £'ooo Total 2023 000 Depreciation £'ooo Trading expenditurè 185 106 106 293 293 185 Charitable activitles Education and welfare HoLJsekeeping Catering Transport M3inten3nce and estate Support costs and governance 5,512 407 436 909 375 343 31 624 578 448 6,869 782 779 31 957 1,773 333 1,195 783 2,860 450 11,191 Total expenditure 8,068 2,966 452 11,484 27
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 JULY 2023 ANALYSIS OF EXPENDITURE Icontinuedl SUPPORT COSTS AND GOVERNANCE 2023 £'ooo 2022 £,009 Salaries Staff recruitment and travel Marketing and professional fees Telephone, postage, printin& st3tionery Miscellaneous admin costs Governance costs (Note 71 1,195 85 365 16 72 40 1,212 41 373 20 34 21 1,773 1,701 Governance costs include auditors, remuneration for audit services of £19k12022.' £16kl and for other services £3k 12022.. £75012nd the reimbursement of four Governor5, travelling and subsistence @xpenses of £2k 12022 four Governors.. £2kl, as well as £16k for Governor miscellaneous and training costs12022'. £2kl. STAFF COSTS 2023 £'ooo 5.723 580 1,048 2022 £'ooo 5,272 536 1,056 Wage5 and salaries Social security costs Other pension costs 7,351 6,864 Staff not directly employeol by the School 717 596 8,068 7,460 No. No. The average monthly staff headcount was-. Tesching Administration Other 107 34 24 106 34 25 165 165 lrncluded in the above, two permanent members of staff are employed in the trading subsidiary 2022.. One). In addition, ad hoc st3ff are c311ed upon throughout the year to provide support for function5 in the trading Subsidiary. 28
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIALSTATEMENT5 ICONTINUEDI FOR THE YEAR ENDED 31JULY 2023 STAFF COSTS Icontinuedl 2023 £'ooo 2022 £'ooo The tot31 employee costs (including employers, pension and national insurance contributions) of personnel were.. 1,373 1,115 The following nrnber of staff received remuneration in excess of £60,000 in the year.. 2023 2022 No. £60,001 to £70,(X)O £70,CX)I to £80,IXJO £80.IXII to £90,(X)O £iio,ooi to £120,000 £190,001 to £200,000 £230.001 to £240,000 One person connected with a governor has received remuneration from employment with the charity in accordance with the pay 5cale5 of the School12022.. One). Included in the total staff cost figures above are termination payments to employees authorised during the year tot311ing £301k12022 £59kl. At the year end, there was £271k in accrued termination payments12022.. £01. 29
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTE5 TO THE CONSOLIDATED FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 JULY2023 TANGIBLE FIXED ASSETS al The Group Freehold L3nd, BLJildings and I mprovement5 E'ooo Plant, Furniture and Equipment £'ooo Motor Vehicles £'ooo Total £'ooo Cost At l August 2022 Additions Dispos31s At31July2023 16,704 2,122 103 11271 2,098 159 18,985 103 11601 18,928 1331 16,671 159 Deprèciation At l August 2022 Charge for the year Disposals At 31 July 2023 5,453 275 1181 5,710 1,440 174 11261 158 7,051 450 11441 7,357 159 Net book value At 31 July 2023 At 31 July 2022 10,961 11,251 610 11.571 11,934 682 bl The School Freehold Land, 8uildings and Improvements £'ooo plant, Furniture and Equipment £'DOO Motor Vehicles £'o Total £'ooo Cost At l August 2022 Additions Disposals At 31 July 2023 16,691 2,116 103 11241 2,095 159 18,966 103 11551 18,912 1331 16,658 159 Depreciation At l August 2022 Char8e for the ye3r Disposals At311uly 2023 5,443 273 1181 5,698 1,433 174 11231 1,484 158 7,034 448 11411 159 Net book value At 31 July 2023 At 31 July 2D22 10,960 11.248 611 11,571 11,932 683 There are no assets under construction as at 31 July 2023. 30
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 JULY 2023 io. INVESTMENTS Frensham Heights EnterprSses Ltd 2023 £'ooo 2022 £'ooo £1 Ordinary 5hères at par in Frensham Heights Enterprises Ltd io io io io Company The company holds £IO,OQK) ordinary shares, the entire issued share capital, of Frensham Heights Enterprises Limited. The principal activity of the investee is thè letting of facilities available at Frensham Heights School. At 30 June 2023 Frensham Heights Enterprises l.td had c3Pital and reserves whlch totalled E17k 12022- E17kl. The turnover for the year was £466k12022.. £219kl. Frensham HeiEhts Enterprises Ltd is 3 company registered in England and W31e5, registered number 2866864. 11. DEBTORS.. amounts falling due within one year Group School 2023 £'ooo 2022 £'ooo 2023 £'ooo 2022 £'o Amounts due from group undertaking Fees debtors Sundry debtors and prepayments 232 197 315 loo 125 233 197 635 125 490 832 615 744 458 31
FRENSHAM HEIGHTS EDUCATIONAL TRusf LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2023 12. CREDITORS.. amounts falling due within one year Group School 2023 £'ooo 2022 £'ooo 2023 E'OOO 2022 Amovnts owed to group undertakin8S Fee5 deposits Trade creditors Other creditors and accruals Fees received in advance Deferred income 206 533 310 495 183 492 63 505 252 262 42 396 533 306 472 183 199 505 239 240 42 180 2,219 1,520 1,693 1,206 The total amount held in relation to fees deposits of £533k is included above. In the normal course of business, the expected repayment of these amounts will be £1.5k within one year and £532k after more than one year. The School holds pupil fee deposit5. Although under rEormal circumstances these will be rep3id over future years when the pupils complete their education at the School, pupils can leave at earlier dates. The school does not therefore have 3n unconditional right to retain the individual deposits for at least 12 months after the balance sheet date and, in line with the requirements in FRS 102, the ba13nce of the deposits held at 31 July 2023 have been included within current liabilities. The prior year pupil fee deposits balance has been Similarly represented. Deferred Income Reconciliatlon £'ooo 295 493 13961 Balance brought forward at l August 2022 Additions in current year Relèase of deferred income Llalance carried forward at 31 July 2023 492 l-he deferred income balance relates moEtly lo future year school trips income,. and on the tradin8 subsidiary, future year resideiitial le.ts and weddings. 32
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2023 13. CREDITORS: amounts falling due after more than one year Gioup School 2023 £'ooo 2022 £'ooo 2023 £'ooo 2022 £'ooo Deferred income 14. FEES IN ADVANCE SCHEME The School will be reinstating the Fees in Advance Scheme due to thè recent Increases in interest rates. The interest rate will be Set by the FR&CP in Autumn 2023 and approved by the Board in December of the same year. 15. SHARE CAPITAL 2023 2022 Authorised 100 Ordinary shares of £1 each loo loo Allotted, issued and fully paid 100 Ordinary shares of £1 each loo loo 16. MOVEMENT ON FUNDS Balance at l August 2022 £'ooo Transfer Between Funds £'ooo Balance at31July 2023 £'ooo Incoming Resources Resources Expended £'ooo £'ooo Restricted Funds Bursary and award fund Music award fund ukrainian bursary fund Endowment Fund 285 12 15 300 15 li 18 1141_ 260 151 151 255 581 564 36 1141 esignated Funds Scholarship fund Tangible fixed assets fund 521 11.671 312 13561 833 11,315 General Fund 4,846 10,507 111,4711 49 3,931 17,602 10,543 111,4851 16,660 33
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTESTO THE CONSOLIDATED FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2023 16. MOVEMENT ON FUNDS (Continued) Balance at l August 2021 £'ooo Transfer Betwèen Funds £'O(K) Balance at311u 2022 £'ooo Incoming Resource5 £'O(K) Resources Expended £'ooo Restricted Funds Bursary and award fund Music award fund Ukrainian bursary fund Endowment Fund 273 io 12 285 12 265 548 260 564 21 Designated Funds Scholarship fund T3ngible 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 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 8enerates is sufficient to provide a reasonable bursary for a student. Expendable Endowment funds These are funds which were given to the School to invest in the School's buildings. This funding is now represented by tangible fixed a55ets. Designated funds These funds represent amoL¢nts set aside at the dlscretion of the Governors. Scholarship fund This scholarship fund is used to indicate scholarships and bursaries currently awarded for specific staEes of education, made against future years, fees. Tangible Pixed assets fund The fund represen15 the amount ()f general funds invesLed by the School in it..5 tangible fixed agsels after doducting tliose assets I"epresented by the endowinent funds. Transfers A transfer of £5k has been made between the endowment and Ljnrestricted funds. This represents the depreciation charged on the proportion of the building represented by the endowmentfund.
FRENSHAM HEIGHTS EDUCATIONAL TRUST UMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023 A transfer of £312k has been made to increase the Scholarship Fund. This is to cover the School's future committnents at 31 july 2023 to bursaries and scholarships for specific pupils. The future commitments typically relate to the next two to three years. A transfer of IE356kl has been made between the General fund and the Tan8ible Fixed Asset Fund to ensure that this, plus the Endowment Fund, are equal to tangible fixed assets within the consolidated balance sheet. 17. ANALYSIS OF NET ASSETS BETWEEN FUNDS The Group Unrestricted General Funds Restricted Funds Endowment Funds Total 2023 Tangible fixed assets Net current assets 11,316 4,764 255 11,571 5,090 326 16,080 326 255 16,661 Creditors.. amounts falling due after one year 16,079 326 255 16,660 The Charity Tangible fixed assets Investments Net current assets 11,316 io 4,746 255 11,571 io 5,072 326 16,072 326 255 16,653 Creditors.. amounts falling due after one year 16,072 326 255 16,653 35
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 JULY2023 17. ANALYSIS OF NET AET5 BETWEEN FUNDS {Cotinued) The Group Unrestricted Gener31 Funds Restricted Funds Endowment Funds Total 2tJ22 Tangible fixed assets Net current assets 11,671 5,367 260 11,931 5,671 17.038 304 260 17,602 Creditors.. amounts fallin8 due after one year 17,028 304 17,602 The Charity Tangible fixed assets Investments Net current assets 11,670 io 5,352 260 11,930 io 5,656 304 17,032 304 260 17,596 Creditors.. arnounts falling due after one year 17,032 304 260 17,596 18. PENSION SCHEMES The School partlCiP3tes 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 £815k12022.. £825kl and at the year-end £11,28612022- £nill was accrued in respect of contributions to thi5 scheme. The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers, Pensions Regulations 2010 las amended) and The Te3chers' Pension Scheme RegLJlatioTr$ 2014 las amendodl. Members coiilriE)Iile on a 'pay as you 8cJ" basis with contributioiis from members and ihe einployer being credited to the Lxcliequer. Retirement and other pensioii benefits aro paid by public funds provided by Parliament. The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary's Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 3nd the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4Trk to 23.6Y, from I September 2019. Employers are also required to pay a scheme administration levy of 0.08Yo giving a total etnployer contribution rate of 23,68%. 36
FRENSHAM HEIGHTS EDUCAMONAL TRusf LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2023 The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out ir* the scheme regulations 2nd under the approach specifi@d in the Directions, as they applied at S March 2019. However, the alIMptIonS were considered and set by the Department for Education prior to the ruling in the 'McCloud/Sargeant case,. This c3se has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Setvice Pensions including the Teachers, Pensions. 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 mechanigm, in January 2019 announced pause to the cost cap mechanism followlng thÈ Court of Appeal's ruling in the McCloudlS3rgeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause w3s lifted in JLJIY 2020, and following a public consultation in 2021 the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations. The 2016 cost control valuations were 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 contribution r2te, and HM Treasury has indicated that any changes to the employer contribution rate resulting from the 2020 valu3tions will take effect in April 2024. Until the 2020 valuation is completed it is not Possible to conclude on any financial impact or future ch3nges to the contribution rates of the TPS. Accordingly, no provision for any additional P3St benefit pension costs is included in these financial statements. The pension cost for the year in relatlon to other defined contribution schemes amounts to £233k12022'. £230kl and h35 been included in the Statement of Financial Activities. 19. LEASING COMMITMENTS The Trust is committed to making the following payments under operating leases.. Equipment 2023 £'ooo Equipment 2022 £'ooo Due in less than one year Due within two and five years Due in more than flve years 73 189 24 72 161 20. CIPITAL COMMITMENTS At 31 July 2023 the School had no material outstanding retention cotnmitments and no other capital commitments. 21. RELATED PARTYTRANSACTIONS In 2022-23 the School charged £28k 12022- £20kl to Enterprises for utilities, laboL(r and associated services. The balance owed to the School at 31 July 2023 was £232k12022.. £IOOkl. 37
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2023 22. CONSOLIDATED STATEMENTOF FINANCIALACttVlTIES- COMPARISON FIGURES BY FUND TYPE Total Funcls 2022 E'ooo Unrestricted Restricted Funds Funds £'ooo £'ooo Endowed Funds £'ooo Income and endowments from- Charitable Activities School fees receivable Other educational income Other ancillary trading income other trading activities Tradin8 turnover other Income Profit / (Lossl on disposal Investments Investment income VolL¢ntary Income Grants and Donations 9,976 226 181 9,976 226 181 219 42 219 42 io io 21 21 Total Income 10,653 21 10,674 Expenditure on: Raising funds Fundr3ising Trading 149 149 Charitable ActNities Education and grant making 10,343 10,343 Total expenditure 10,492 10,492 Net Income 161 21 182 Transfers between funds Net movement offunds 16 151 Isi 166 21 182 Funds brought forward l August 2021 16,872 283 265 17,420 Funds carried forward 31 July 2022 17 17,038 304 260 17,602 38