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. sTRU￿URE, 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 currIc￿l￿rn 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