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2024-07-31-accounts

COMPANY REGISTRATION NUMBER: 207173 REGISTERED CHARITY NUMBER: 312052

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED

REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

31 JULY 2024

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED

YEAR ENDED 31 JULY 2024

Contents Page
Governors, Officers and Advisers 1-2
Report of the Board of Governors 3-13
Report of the Auditors 14-16
Consolidated Statement of Financial Activities 17
Consolidated Balance Sheet 18
Frensham Heights Educational Trust Balance Sheet 19
Consolidated Statement of Cash Flows 20
Notes to the Consolidated Cash Flow Statement 21
Notes to the Consolidated Financial Statements 22-38

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FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED

GOVERNORS, OFFICERS AND ADVISERS

YEAR ENDED 31 JULY 2024

DIRECTORS AND GOVERNORS Simon Wilcox (Chair) Richard Fry (Vice Chair) Katherine Love Sally Marriott William Marriott David Armitage (appointed 4 Oct 23) Danuta Staunton Jackie Sullivan (retired 25 Mar 24) Philip Ward (retired 9 Dec 23) Gregory West (Vice Chair) Joris Wonders Catriona Sutherland Hawes (appointed 1 Sept 24) Jacqui Johnson (appointed 1 Sept 24) Neil Clutterbuck (appointed 1 Sept 24)

FINANCE, RESOURCES AND CAPITAL PROJECTS COMMITTEE David Armitage (Chair until 31 July 24) Richard Fry (Chair from 1 Aug 24) Jackie Sullivan (retired 25 Mar 24) Gregory West Jacqui Johnson Simon Wilcox CURRICULUM, QUALITY AND STANDARDS COMMITTEE Danuta Staunton (Chair) Sally Marriott Gregory West Joris Wonders Catriona Sutherland-Hawes (appointed 1 Sept 24)

GOVERNANCE, SEARCH AND STRATEGYCOMMITTEE Philip Ward (retired 9 Dec 23) Simon Wilcox (Chair) Kate Love William Marriot Danuta Staunton David Armitage (until 31 July 24) Richard Fry (from 1 Aug 24) Joris Wonders (from 1 Aug 24)

AUDIT COMMITTEE William Marriot (Chair until 31 July 24) Joris Wonders (Chair from 1 Aug 24) Danuta Staunton Neil Clutterbuck (appointed 1 Sep 24) REMUNERATION COMMITTEE Kate Love (Chair) Joris Wonders Gregory West Sally Marriott

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FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED

GOVERNORS, OFFICERS AND ADVISERS

YEAR ENDED 31 JULY 2024

HEAD Rick Clarke (resigned 1 Mar 23)
Benedict McCarey (1 Sep 24)
ACTING HEAD Laura Griffiths (1 Mar – 31 Aug 23)
INTERIM HEAD Andrew Fisher (1 Sep 23 – 31 Aug 24)
INTERIM BURSAR & COMPANY SECRETARY John Pratten (resigned 29 Nov 23)
COMPANY SECRETARY Karen Frost (appointed 9 Dec 23)
REGISTERED OFFICE Frensham Heights
Rowledge
Farnham
Surrey
GU10 4EA
COMPANY NUMBER 207173
REGISTERED CHARITY 312052
BANKERS HSBC Bank plc
30 Princes Mead Shopping Centre
Farnborough
Hampshire GU14 6YB
SOLICITORS GBH Law (trading as Goodyear Blackie
Herrington Solicitors)
7-8 Innovation Place
Douglas Drive
Godalming
Surrey
GU7 1JX
AUDITORS Crowe U.K. LLP
55 Ludgate Hill
London
EC4M 7JW
INSURANCE BROKERS Marsh Insurance Brokers Limited
Education Practice
4 Milton Road
Haywards Heath
West Sussex
RH16 1AH

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FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED

REPORT OF THE BOARD OF GOVERNORS

YEAR ENDED 31 JULY 2024

The Governors of Frensham Heights Educational Trust Limited, who are also the Directors and Charity Trustees, are pleased to present their annual directors’ report together with the consolidated financial statements of the charity and its subsidiary for the year ended 31 July 2024 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

DIRECTORS’ REPORT

CONSTITUTION AND OBJECTS

Frensham Heights Educational Trust Limited was founded under Articles of Association dated 10 July 1925 as amended on 4 April 1950, 22 June 1996, 11 January 2006, 5 December 2020, and redrafted 2024 for acceptance December 2024. It is constituted as a company limited by shares, registered in England, No. 207173, and is 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 a school for boys and girls at Frensham, the holding of exhibitions, classes or conferences, whether general, 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 has established and administered during the year bursary awards and other benefactions and acts as the trustee and manager of property and gifts given or established in pursuance of these Objects.

STRUCTURE, GOVERNANCE AND MANAGEMENT Contact Information

The Governors, Head, Company Secretary, and principal address of the Charity are as listed on Pages 1- 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, (Company number 2866864) which was incorporated in 1993. Its principal activity is managing the hiring and letting of facilities at the School.

Board of Governors

The Board’s Governance, Search and Strategy Committee is responsible for the selection and nomination of any new Governor. A Board Skills and Diversity Audit is carried out annually, and this information informs the decisions of the Board both in determining the skill sets and experience sought through advertising of forthcoming vacancies, and in the recommendations for succession planning and Board appointments.

When a vacancy arises, the Governance, Search and Strategy Committee considers the results of the skills and diversity audit to ensure that the Board has appropriate skills and expertise amongst its membership to enable it to discharge its responsibilities. Vacancies may be advertised either through the placing of an advert in local organisations, via recruitment agencies or by advertising the vacancy on the school’s website. Applications are submitted in writing to the Head of Governance. Interviewing

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FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OF THE BOARD OF GOVERNORS

YEAR ENDED 31 JULY 2024

is undertaken by a panel determined by the Governance, Search and Strategy Committee. Minimum membership of the panel is the Head, the Chair and the Head of Governance. When recruiting new governors, the Board is mindful that a successful board has an appropriate mix of governors with diverse skills, experience and backgrounds and encourages people from a range of backgrounds and experiences to apply.

One third of all Governors retire by rotation each year (including any Governor who is an officer). Any retiring Governor will be available for immediate re-election and the expectation is that Governors will serve either two or three terms of three years each.

During 2023-24, the Committee led the recruitment of 4 new governors to fill vacancies. The new governors bought a broad range of skills and experience including finance, business, risk, admissions and marketing. Two governors retired during the year.

An induction process is in place for new governors which includes an introduction to the School and Board processes, meetings with key staff, training in Safeguarding and Prevent and external induction training courses offered by AGBIS. The induction sessions brief new governors on their legal obligations under charity and company law, the Charity Commission guidance on public benefit, the content of the Memorandum and Articles of Association, the committee and decision-making processes, the strategy and the recent financial performance of the charity. Newly appointed governors are offered support from a mentor, who is an experienced member of the Board. The School offers a variety of training and development opportunities for both individual governors and the Board as a whole so that collectively the Board has the necessary skills and understanding to fulfil its responsibilities. Training and development opportunities include online training modules, briefings, reports, external conferences, training events, webinars and attendance at network groups.

The Board carries out an annual self-assessment of its own performance. In academic year 2023-24 the self-assessment process included:

Governance Code

The Trustees are aware of the Charity Governance Code published in 2017, and updated in March 2021, which sets out the principles and recommended practice for good governance within the sector. Governance is kept under constant review and modifications and improvements are continuously implemented.

Related parties and co-operation with other organisations

No Governors received remuneration or other benefit from their work with the School in the year. Any connection between a trustee or senior manager of the School must be disclosed to the full Board of Governors in the same way as any other contractual relationship with a related party.

Organisational Management

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.

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FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED

REPORT OF THE BOARD OF GOVERNORS

YEAR ENDED 31 JULY 2024

The Governors meet as a Board at least three times a year. The work of overseeing the implementation of policies is carried out by committees. The committees and their membership are listed on Page 1. The Governors also hold an annual strategy 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 an observer on the Parents’ Committee; and the Staff Common Room Committee.

The day-to-day management of the School is delegated to the Head. The Head is invited ex-officio to all Board and committee meetings. The pay and remuneration of the Head is set by the Remuneration Committee having considered independent benchmark reports across the independent school education sector.

During the previous year, the Head (Rick Clarke) resigned, and the Deputy Head (Academic) was appointed Acting Head until Andrew Fisher was able to start as Interim Head covering the period until the new Head (Ben McCarey) started in April 2024; thereafter Andrew Fisher acted as mentor to Ben McCarey for one term.

AIMS, OBJECTIVES AND ACTIVITIES

Public Benefit Aims and Activities

In meeting its Objects, the School’s public benefit aim is to provide a world class progressive education that emphasises progressive values and focuses on students as individuals to bring out their strengths, with creative and performing arts given equal status alongside more traditional academic subjects and sport. In line with its ethos, the School welcomes students from all backgrounds where it is believed that the prospective student can benefit from the education provided at the School.

In support of its public benefit aim the School also awards annual bursaries, which are outlined in the grant making section of the Strategic Report. The Board has been and remains committed to awarding bursaries to widen participation at the School, recognising the significant opportunities such bursaries 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 benefit requirement (Charities Act 2011), therefore the School also works in partnership with local schools, charities and organisations to widen public access to education.

Objectives for the Year

The School’s principal objectives for the year were to:

  1. Maximise student achievement

  2. Maximise student personal development through effective tutoring and involvement in opportunities outside the classroom

  3. Inspire and further develop the teaching staff through professional development opportunities

  4. Further enhance teaching and learning

  5. Maintain and grow student numbers

  6. Deliver the School’s charitable objects and demonstrable public benefit

  7. Maintain financial stability

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FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OF THE BOARD OF GOVERNORS

YEAR ENDED 31 JULY 2024

STRATEGIC REPORT

The Strategic Direction of the School

The previous Head completed work on reviewing and updating the School’s vision, mission, and values. In March 2024, the Board approved a new strategy with the following objectives:

  1. Ensure students receive the best possible progressive educational experience and outcomes

  2. Ensure that the school appeals to appropriate parents and that it becomes the school of choice for this demographic

  3. Recruit and retain-high quality staff who are trained in, and committed to, the Frensham Ethos 4. Generate sufficient income to support and develop the school’s educational and social objectives

STRATEGIC VISION

Frensham Heights will be regarded as a first-choice, co-educational, non-traditional day and boarding school. By 2034 it will provide education from age 3 to 18 for up to 560 students, with boarding provision for 120. Frensham will treat students as individuals, allowing them to develop at their own pace and in their own way, where all talents are valued. The students' wellbeing and interests will be at the heart of a distinctive, creative and progressive educational experience. As a leader in educational thought, Frensham will attract and retain exceptional staff who will deliver a values-driven, inspirational, and holistic education which effectively prepares students for their future lives. The School’s attractive and extensive facilities will support this education while providing a safe and nurturing environment. The School will be financially secure with an environmentally friendly and sustainable operating model which delivers the appropriate public benefit.

OUR MISSION

Frensham Heights provides a progressive, holistic and joyous education. At the heart of this education lies our fundamental belief in the generosity of the human spirit and our ambition to give young people the agency to know themselves, to develop their abilities and interests. A Frensham education is academically ambitious, but it also empowers our students to understand the individual contribution which they can make to the world in which we live. Frensham is curious, it is creative, and it is kind

Frensham is curious:

Frensham is creative:

Frensham is kind:

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FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED

REPORT OF THE BOARD OF GOVERNORS

YEAR ENDED 31 JULY 2024

The Board is confident that the re-articulation of the aims and mission places the School firmly in a position to continue to deliver its 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 are:

The Junior School further simplifies the values, so that they resonate with the youngest children in the School. The simplified examples are:

The Junior School has committed to embedding these values in the curriculum, behaviour management and activities.

Principal Activity of the Year

The principal activity continues to be the provision of day and boarding education for boys and girls aged from 3 to 18 years. This year the School averaged 495 (2023: 497) students of whom 426 (2023: 439) were day students and 69 (2023: 58) were boarders.

Grant-making

During the year the School set aside funds to support bursaries, which were offered to parents of students who could not otherwise afford to send their children to the School, based on a comprehensive means-tested assessment of financial need. The process requires parents or guardians to complete a detailed online financial form covering income, expenditure and assets which is reviewed by the Director of Finance & Resources and Head, and a 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 Ambition and Enrichment activities, which is open to scholars, as well as the wider School community.

In support of these awards the School committed £581k (2023: £510k) this year, of which £526k (2023: £460k) was awarded in bursaries to 35 students (2023: 38) through its General Fund, of which 9 (2023: 9) were 100%. Within this bursary funding, £92k (2023: £86k) was allocated in-year for Ukrainian pupils. The availability of all such awards for fee-assistance is advertised on the School’s website at www.frensham.org.

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FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED

REPORT OF THE BOARD OF GOVERNORS

YEAR ENDED 31 JULY 2024

Volunteers

Old Frenshamians, Friends of Frensham, parents and 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 invaluable and continuing support.

REVIEW OF ACHIEVEMENTS 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 prediction information systems. Through the Scholarship and Enrichment Programme, students gain a wealth of experiences which not only enhance their curriculum learning but also develop essential life skills, all of which add value to their time at Frensham. Trips and educational visits provide access to social, cultural, moral, and spiritual experiences as students are challenged and have the opportunity for experiential learning.

Students have been offered the regular programme of sport, music, dance, drama, and School trips. Sports fixtures, together with sports trips, provided fantastic opportunities for students to remain 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 element of a Frensham education, meant that significant trips such as the Year 6 trip to Pembrokeshire, the Year 9 trip to the Peak District and the Year 12 trip to Knoydart in Scotland all went ahead. Alongside this, many smaller trips for other year groups were offered too.

Exam results in the summer were excellent, both in terms of attainment and progress:

GCSEs: students achieved 53% 9-7; 92% 9-5; 99% 9-4 grades. BTECs: 48% L2D-L2D; 81% L2D-L2M; and 95% L2D-L2P. The KS4 value added score was 0.9. A Levels: students achieved 48% A-A, 75% A-B, 90% A-E. The KS5 value added score was 0.4.

The School continues 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 also remains active in the international marketplace and appeals to overseas students, mainly from Europe, with a number from Eastern Europe and further afield.

SUSTAINABILITY

The School is fully aware of its responsibilities in making progress towards a more sustainable campus. It has a solar field that contributes towards the costs in the Main Building during term time and FIT contribution in the accounts in the amount of £27k (2023: £32k).

All new buildings are constructed to the sustainability regulations in place at the time and where possible loft insulation and double glazing are added to staff accommodation when the opportunities are presented.

The School has established an educational project, Worthy Earth, where years 6, 7&8 students 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 School by the families’ payment of school fees and has historically taken a low-key approach to additional fundraising. The approach to fundraising was recently reviewed and plans are in operation to train a current member of the Marketing Department to be responsible for the 2025 Centenary

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FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OF THE BOARD OF GOVERNORS

YEAR ENDED 31 JULY 2024

Campaign supported by a suitably 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 people from unreasonable and persistent fundraising pressure; it has not received any complaints about fundraising during the year.

DRIVING EFFICIENCY

Following the significant deficit recorded in 2022-23, the School recognized the need to ensure that its operations are efficient and sustainable. As such, a number of cost-saving activities were undertaken (the financial impact of which will mostly be seen in 2024-25). These include:

In all, it is estimated that these efficiencies will save the School in excess of £400k in the coming financial 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 improvements to the School’s facilities, so that it can continue to offer high quality education and student development. The Board had identified the following strategic priorities for the future:

  1. Investment in our curriculum offer

  2. Investment in our people

  3. Investment in growth

  4. Investment in our community

  5. Maintaining bursary provision

The majority 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 boosted by a significant let in the summer.

The Group made significant progress in reducing its annual deficit this year and made a net loss of (£347k) (2023 net loss: £942k). This included profit from the trading subsidiary of £172k (2023: £166k).

Trading Company

The wholly owned subsidiary and trading company, Frensham Heights Enterprises Ltd, continues to manage successfully the letting and hiring facilities at Frensham Heights. For the year ended 30 June 2024 the trading company made a gift aid payment to the School of £172k (2023: £166k).

Borrowing and Investment

The School has had no borrowing requirement during the year and other than the investment in the subsidiary company, the school holds no investments.

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FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED

REPORT OF THE BOARD OF GOVERNORS

YEAR ENDED 31 JULY 2024

Reserves Level and Policy and Financial Viability

The School’s reserves policy is to maintain sufficient unrestricted income reserves to enable it to meet its short-term financial obligations in the event of an unexpected revenue shortfall taking into account annual and longer-term capital expenditure plans in conjunction with access to external financing. The level of free reserves will therefore fluctuate within the cycle of the capital programme. The Group’s total reserves of £16,313k at the year-end included £586k unspent restricted income and £15,727k unrestricted income. £11,047k of this represented the net book value of fixed assets less associated internal funding arrangements and £1,129k designated for Scholarship funding, made against future years’ fees leaving free reserves of £3,551k (2023: £3,931k) at the year-end. This compares with a policy level of £2,704k (2023: £2,684k) which would provide cover for up to three months’ operating costs (2023: three months). The Trustees’ policy is not to maintain free reserves in its wholly owned subsidiary, which therefore has no impact on the School’s reserves. The Governors regularly review the levels of reserves.

GOING CONCERN

The School produces regular financial information including budgets, forecasts and a longer-term strategic business plan, which are closely monitored by 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 short term, from this year’s deficit. These budgets, cash flows and forecasts have been reviewed and revised to take into consideration the current economic climate and the impact of a change of government. Revised forecasts have been prepared together with cashflows, based on the most likely expected outcome from these scenarios , and detailed examination by the Finance, Resources and Capital Projects Committee. The cash flow modelling with sensitivity analysis indicates that, despite this year’s second successive loss, the cash reserves of the School are adequate to meet the charity’s obligations as they fall due.

The School has scoped out income and expenditure up to and including 2032 adopting a ‘worse case’ scenario. Although the School faces another difficult year in 2024-25, as it recovers from these losses, a recovery is forecast thereafter.

Longer term, Governors are mindful that the viability of the School depends on successful execution of the strategic plan for cost reduction and increasing student numbers. Governors will closely monitor progress against this 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 Governors’ 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 are satisfied that their current market value exceeds their historic cost, but do not wish to spend charitable funds on obtaining a formal valuation for accounts purposes.

RISK MANAGEMENT

The Board of Governors is responsible for the identification and management of risk and continues to keep the School’s activities under critical review at every Board meeting. Detailed consideration of specific risks is also conducted by relevant Governor Committees and their recommendations reported to the Board of Governors. The key controls used by the charity include:

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FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OF THE BOARD OF GOVERNORS

YEAR ENDED 31 JULY 2024

The highest priority risks identified by the Board of Governors at the end of the year which could lead to financial and operational challenges include, in no particular order:

  1. An increasing cost base

  2. Reduction in student numbers

  3. Retention into the Sixth Form

  4. The impact of changing government policy including

  5. a. increases in National Insurance

  6. b. loss of business rates relief

  7. c. VAT on fees

  8. Any reduction in the demand for independent school education

  9. General deterioration of the economic health of our customer base

  10. Any adverse impact upon the wellbeing of our students and staff

  11. Any adverse publicity affecting the School’s reputation

  12. The Global political climate including conflict in Ukraine and the Middle East

  13. Repercussions of cost-of-living increases.

Multiple strategies are being employed to manage these risks including enhancing our marketing efforts for the Frensham Heights’ proposition; in addition, we will continue to grow and maintain our student numbers and to exercise tight financial control over spending and debtors.

Health and Safety is recognised as a significant area of non-financial risk and it is closely managed. The risks range from fire and infrastructure damage to personal risks. The risks associated with all activities are 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 place 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 of staff costs. A significant part of the total staff costs is the School’s commitments to fund pension benefits for our staff. This has proved increasingly challenging in respect of the Teachers’ Pension Scheme due to the increasing employers’ contributions now required into that scheme.

In 2021, the School agreed a phased withdrawal from the Teachers’ Pension Scheme, effective September 2022. As widely anticipated, the 2020 valuation resulted in an increase of the Employer’s Contribution from 23.68% to 28.68% effective April 2024. The Governors again recognised their duty to act prudently in connection with the longevity of the School and reconsidered:

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FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OF THE BOARD OF GOVERNORS

YEAR ENDED 31 JULY 2024

FUTURE PLANS

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 Management Action Plan for 2024-2025; this document sets out the specific and detailed plans for next year. The key objectives within the current plan are aligned with the objectives of the newly agreed Strategy:

  1. To develop and deliver an innovative and leading model of progressive education

  2. To ensure that all students receive an exceptional level of pastoral care and the boarders have the best possible experiences

  3. To recruit, develop and retain the best people

  4. To build and enhance the school’s community and reputation

  5. To generate sufficient income to support and develop the school’s educational and social objectives

  6. To ensure the estate is well maintained with facilities which are of high quality and developed in line with the school’s strategy

In line with these priorities, the school has also commissioned a full schedule of audit activity to ensure compliance and quality assurance. This includes either internal or externally facilitated audits of:

BOARD OF GOVERNORS

The Governors are all Directors of the School and their non-beneficial interests in the ordinary share capital in the year are as shown in the following table:

----- Start of picture text -----
31 July 2024 31 July 2023
Simon Wilcox 15 15
Sally Marriott 10 5
William Marriott 5 5
Richard Fry 15 5
Catherine Love 10 10
Gregory West 10 5
Danuta Staunton 10 5
Joris Wonders 10 5
David Armitage 15 -
----- End of picture text -----

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FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED

REPORT OF THE BOARD OF GOVERNORS

YEAR ENDED 31 JULY 2024

STATEMENT OF GOVERNORS’ RESPONSIBILITIES

The members of the Board of Governors (who are also the directors of Frensham Heights Educational Trust for the purposes of company law) are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and FRS 102, The Financial Reporting Standard 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 financial statements unless they are satisfied that they give a true and fair view of the charitable company and the group, including the income (and its application) and expenditure of the group for that year. In preparing these financial statements, the members of the Board of Governors are required to:

  1. select the most suitable accounting policies and then apply them consistently;

  2. observe the methods and principles in the Charities SORP 2019 (FRS 102);

  3. make judgments and estimates that are reasonable and prudent;

  4. state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

  5. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The members of the Board of Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Insofar as each of the Directors, as members of the Board of Governors, at the date of approval of this report is aware there is no relevant audit information (information needed by the Company’s auditor in connection with preparing the audit report) of which the Company’s auditor is unaware. Each 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 Company’s auditor is aware of that information.

AUDITORS

Crowe U.K. LLP have expressed their willingness to continue in office as auditors. The School will retender the audit contract in 2024-25.

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 Limited on 7 December 2024 and is signed as authorised on its behalf by:

Simon Wilcox: Director & Chair of Governors

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Independent Auditor’s Report to the Members of Frensham Heights Educational Trust Limited

Opinion

We have audited the financial statements of Frensham Heights Educational Trust Limited (‘the charitable company’) and its subsidiaries (‘the group’) for the year ended 31 July 2024 which comprise the Group Statement of Financial Activities, the Group and Company Balance Sheets, the Group Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's or the group’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 are 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 financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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

Matters on which we are required 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 Companies Act 2006 requires us to report to you if, in our opinion:

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 law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees 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 trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities 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 (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details 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 on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team 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 nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance 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: 20 December 2024

16

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

(Incorporating an Income and Expenditure account)

FOR THE YEAR ENDED 31 JULY 2024

Income and endowments from:
Charitable Activities
School fees receivable
3
Other educational income
6
Other ancillary trading income
6
Other trading activities
Trading turnover
4
Other Income
Profit / (Loss) on disposal
Investments
Investment income
Voluntary Income
5
Grants and Donations
Total Income
Expenditure on:
Raising funds
Fundraising Trading
4
Charitable Activities
Education and grant making
Total expenditure
7
Net Income
Transfers between funds
16
Net movement of funds
Funds brought forward 1 August 2023
Funds carried forward 31 July 2024
17		 Unrestricted
Funds
£’000
9,723
322
351
522
27
(3)
269
-
11,211
355
11,212
11,567
(356)
4
(352)
16,079
15,727		 Restricted
Funds
£’000
-
-
-
-
-
-
9
4		 Endowed
Funds
£’000
Total
Funds
2024
£’000
Total
Funds
2023
£’000
-
9,723
9,278
-
322
286
-
351
369
-
522
466
-
27
32
-
(3)
(14)
-
278
93
-
4
34
13 -
11,224
10,544
-
4		 -
355
293
-
11,216
11,193
4 -
11,571
11,486
9
-		 -
(347)
(942)
(4)
-
-
9
326		 (4)
(347)
(942)
255
16,660
17,602
335 251
16,313
16,660

All amounts relate to continuing operations. There are no recognised gains or losses other than the results for the year set out above.

The Notes on Pages 22 to 38 form part of these financial statements.

17

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED

(Company Number: 207173)

CONSOLIDATED BALANCE SHEET

AS AT 31 JULY 2024

Notes 2024 2023
£’000 £’000 £’000
FIXED ASSETS
Tangible fixed assets 9 a) 11,298 11,571
11,298 11,571
CURRENT ASSETS
Stocks 1 2
Debtors: amounts falling due within one year 11 565 832
Cash at bank and in hand 6,629 6,474
7,195 7,308
CREDITORS:amounts falling due within one
year 12 2,178 2,218
NET CURRENT ASSETS 5,017 5,090
TOTAL ASSETS LESS CURRENT LIABILITIES 16,315 16,661
CREDITORS:amounts falling due after
more than one year 13 2 1
NET ASSETS 16,313 16,660
CAPITAL AND RESERVES
Called up share capital 15 - -
THE FUNDS OF THE CHARITY 16
UNRESTRICTED FUNDS
Scholarship fund 1,129 833
Tangible fixed asset fund 11,047 11,315
General fund 3,551 3,931
15,727 16,079
RESTRICTED FUNDS
Bursary and award funds 335 326
ENDOWMENTS 251 255
586 581
TOTAL FUNDS 17 16,313 16,660

The loss for the financial year dealt with in the financial statements of the parent Company was (£347k) (2023 loss: £942k).

Approved and authorised for issue by the Board of Governors on 7 December 2024.

Governors and Directors Simon Wilcox Richard Fry

The Notes on Pages 22 to 38 form part of these financial statements.

18

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED

(Company Number: 207173)

BALANCE SHEET

AS AT 31 JULY 2024

Notes 2024 2023
£’000 £’000 £’000
FIXED ASSETS
Tangible fixed assets 9 b) 11,298 11,571
Investments 10 10 10
11,308 11,581
CURRENT ASSETS
Stocks - -
Debtors: amounts falling due within one year 11 532 744
Cash at bank and in hand 6,333 6,021
6,865 6,765
CREDITORS:amounts falling due within one 12 1,866 1,693
year
NET CURRENT ASSETS 4,999 5,072
TOTAL ASSETS LESS CURRENT LIABILITIES 16,307 16,653
CREDITORS:amounts falling due after
more than one year 13 - -
NET ASSETS 16,307 16,653
CAPITAL AND RESERVES
Called up share capital 15 - -
THE FUNDS OF THE CHARITY
UNRESTRICTED FUNDS
Scholarship fund 1,129 833
Tangible fixed asset fund 11,047 11,315
General fund 3,545 3,924
15,721 16,072
RESTRICTED FUNDS
Bursary and award funds 335 326
ENDOWMENTS 251 255
586 581
TOTAL FUNDS 17 16,307 16,653

Approved and authorised for issue by the Board of Governors on 7 December 2024.

Governors and Directors Simon Wilcox
Richard Fry

The Notes on Pages 22 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 2024

Note
2024
2023
£’000
£’000
£’000
£’000
Cash flows from operating activities
Net cash provided by operating activities
(i)
(2)
(104)
Cash flows from investing activities:
Payments for tangible fixed assets
(121)
(103)
Non-cash payments for tangible fixed
assets
-
13
Proceeds on sale of tangible fixed assets
-
-
Investment income and bank interest
received
278
93
Net cash (used in) / provided by investing
activities
157
3
Cash flows from financing activities:
Finance Costs Paid
-
-
Net cash provided by financing activities
-
-
Change in cash and cash equivalents in
the reporting period
155
(101)
Cash and cash equivalents at the
beginning of period
6,474
6,575
Cash and cash equivalents at the end of
the reporting period
6,629
6,474		 Note
2024
2023
£’000
£’000
£’000
£’000
Cash flows from operating activities
Net cash provided by operating activities
(i)
(2)
(104)
Cash flows from investing activities:
Payments for tangible fixed assets
(121)
(103)
Non-cash payments for tangible fixed
assets
-
13
Proceeds on sale of tangible fixed assets
-
-
Investment income and bank interest
received
278
93
Net cash (used in) / provided by investing
activities
157
3
Cash flows from financing activities:
Finance Costs Paid
-
-
Net cash provided by financing activities
-
-
Change in cash and cash equivalents in
the reporting period
155
(101)
Cash and cash equivalents at the
beginning of period
6,474
6,575
Cash and cash equivalents at the end of
the reporting period
6,629
6,474		 Note
2024
2023
£’000
£’000
£’000
£’000
Cash flows from operating activities
Net cash provided by operating activities
(i)
(2)
(104)
Cash flows from investing activities:
Payments for tangible fixed assets
(121)
(103)
Non-cash payments for tangible fixed
assets
-
13
Proceeds on sale of tangible fixed assets
-
-
Investment income and bank interest
received
278
93
Net cash (used in) / provided by investing
activities
157
3
Cash flows from financing activities:
Finance Costs Paid
-
-
Net cash provided by financing activities
-
-
Change in cash and cash equivalents in
the reporting period
155
(101)
Cash and cash equivalents at the
beginning of period
6,474
6,575
Cash and cash equivalents at the end of
the reporting period
6,629
6,474
3
-
-
(101)
6,575
6,474

The Notes on Pages 22 to 38 form part of these financial statements.

20

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 JULY 2024

(i) Reconciliation of net income to net cash flow from operating activities

Net incoming resources
Elimination of non-operating cash
flows:
-
Investment income
-
Depreciation Charge
-
Non Cash-Flow Item
Profit on sale of assets
(Increase) / decrease in debtors
(Increase) / decrease in stocks
Increase / (decrease) in creditors
Increase / (decrease) in fees in
advance scheme creditors
Increase / (decrease) in parents’
deposits
Net cash provided by operating
activities
(ii)
Analysis of cash and cash equivalents
Cash held on current account
Cash held on deposit
Petty cash held		 2024
£’000
£’000
(347)
(278)
390
4
-
267
1
(352)
296
17
345
(2)
2024
£’000
3,832
2,795
2
6,629		 2023
£’000
£’000
(942)
(93)
450
-
-
(218)
-
530
141
28
838
(104)
2023
£’000
3,582
2,890
2
6,474		 2023
£’000
£’000
(942)
(93)
450
-
-
(218)
-
530
141
28
838
(104)
2023
£’000
3,582
2,890
2
6,474
(104)
2023
£’000
3,582
2,890
2
6,474

21

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2024

1. COMPANY INFORMATION:

The School is a Public Benefit Entity registered as a charity in England and Wales and a company limited by guarantee. It was incorporated on 10 July 1925 (company number: 207173) and registered as a charity on 15 August 1966 (charity number: 312052).

2. ACCOUNTING POLICIES

The financial statements have been prepared under the historical cost convention in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), 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 (FRS 102)

Going Concern: As detailed in the Report of the Governors, the Governors have reviewed and revised the School’s financial forecasting considering the current economic climate, the deficits in 2022-23 and 2023-24, and their potential impact. Revised 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 reserves of the School are adequate to meet the charity’s obligations as they fall due.

Having regard to the above, the current cash position, and the expected cash flow over the next 12-24 months, the Governors have a reasonable expectation that the charity has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the School’s financial viability. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Governors’ Responsibilities.

The functional currency of the School is considered to be GBP because that is the currency of the primary economic environment in which the School operates.

The charity has taken advantage of the exemption available to a qualifying entity in FRS 102 from the requirement to present a charity only Cash Flow Statement and certain disclosures about the charity’s financial instruments.

The consolidated accounts include Frensham Heights Enterprises Limited, made up to 30 June 2024. In accordance with the exemption allowed under Section 408 of the Companies Act 2006, the charity’s Statement of Financial Activities is not separately presented.

Critical accounting judgements and key sources if estimation uncertainty In the application of the accounting policies, Trustees are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

22

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

2. ACCOUNTING POLICIES (Continued)

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and 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.

b) Fees and similar income

Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the School.

c) Investment Income

Investment income from dividends, bank balances and fixed interest securities are accounted for on an accruals basis.

d) Voluntary Income

Voluntary incoming resources are accounted for as and when entitlement arises, the amount 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 funds’ where these wishes are legally binding on the Governors. Donations required to be retained as capital in accordance with the donor’s wishes are accounted for as ‘endowments’ – permanent or expendable according to the nature of the restriction.

Government grants 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 School is a registered charity. As such it is exempt under present legislation from assessment to corporation tax on its net income and is able to reclaim tax deducted from covenants and interest received.

f) Tangible fixed assets and depreciation

Items of a capital nature and with a value greater than £10,000 have been capitalised. Following a discussion with the School’s professional advisors last year, the depreciation on freehold buildings was reduced from 2% to 1%. Depreciation is provided annually at the following rates:

the following rates:
Freehold buildings - 1% of cost
Timber buildings - 5% to 6.7% of cost
Modular buildings - 4% of cost
Motor vehicles - 25% of cost
Furniture and other equipment - 10% - 20% of cost
Solar Panels - 5% of cost
Computer equipment - 20% to 33.3% of cost

23

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

2. ACCOUNTING POLICIES (Continued)

g) Expenditure

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer-term liabilities. Certain expenditure is apportioned to cost categories based on the estimated amount attributable to the activity in the year. The irrecoverable element of VAT is included with the item of expense to which it relates.

Raising funds comprise those costs directly attributable to the trading subsidiary (Note 3).

Support costs comprise a proportion of staff costs together with a proportion of overheads of the School. Governance costs are those incurred in connection with the governance of the School and compliance with constitutional and statutory requirements.

h) Operating leases

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

i) Stock

Stock represents goods for resale and is stated at the lower of cost and net realisable value.

j) Pension schemes

During the year, the School contributed to the Teachers' Pension Defined Benefits Scheme at rates set by the Scheme Actuary and advised 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. As a result of the agreement to fully withdraw from TPS, contributions will cease effective 31 December 2024.

The School contributes to the Royal London Group Personal Pension Plan, a defined contribution scheme, which the School established as the official alternative to the TPS under the Phased Withdrawal arrangement. Upon fully exiting from TPS, and from 1 January 2025, all teaching staff will be entitled to join this pension scheme.

All non-teaching staff are entitled to join a group personal pension scheme, currently the Standard Life Group Personal Pension Scheme, which complies with the requirements for a Stakeholder Pension Scheme.

k) Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured 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 debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise trade creditors, other creditors, accruals and deposits.

24

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

3.
CHARITABLE ACTIVITIES - FEES RECEIVABLE
Fees receivable consist of:
School Fees
Less: Total bursaries, grants and allowances
NET INCOME
Net income is stated after charging:
Depreciation of tangible fixed assets
Auditors’ remuneration - Audit
- Other services
Staff costs (Note 8)
Operating lease costs		 2024
£’000
10,881
(1,158)
9,723		 2023
£’000
9,994
(716)
9,278
390
26
3
8,097
98		 450
24
4
8,070
73

25

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

4. TRADING INCOME

Frensham Heights Educational Trust Ltd owns the entire issued share capital of Frensham Heights Enterprises Ltd, Company Number 2866864, registered address Frensham Heights, Rowledge, Farnham, Surrey GU10 4EA. The principal activity of this company is that of managing letting and hiring facilities available at Frensham Heights.

hiring facilities available at Frensham Heights.
30 June
2024
£’000
Turnover
522
Cost of sales
(256)
Gross profit
266
Administration expenses
(108)
Operating profit
158
Interest receivable
13
Profit on ordinary activities before taxation
171
Taxation
-
Profit on ordinary activities after taxation
171
Retained earnings at the start of period
6
Profit for the year
171
Gift aid to Frensham Heights Educational Trust Limited
171
Retained earnings at the end of period
6
Trading costs detailed above are disclosed in the consolidated Statement of Financial
follows
Cost of sales
256
Administrative expenses
108
Audit and professional fees included in governance costs
(9)
Fundraising trading as on Statement of Financial Activities
355		 30 June
2024
£’000
522
(256)		 30 June
2023
£’000
466
(207)
266
(108)		 259
(93)
158
13		 166
0
171
-		 166
-
171 166
6
171		 6
166
171 166
6 6
Activities as
207
93
(8)
355 292

Trading costs detailed above are disclosed in the consolidated Statement of Financial Activities as follows

The School’s and company’s year-end are 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 material impact on the consolidated accounts. Administration expenses of the subsidiary include auditors’ remuneration for audit services of £6.0k (2023 - £4.8k) and for other services £1.2k (2023 - £1.7k). These have been included in governance costs in the consolidated statement of financial activities.

26

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

5. INVESTMENT INCOME

5.
INVESTMENT INCOME
Bank deposit account interest
6.
INCOME FROM CHARITABLE ACIVITIES
Other educational charitable activities
Entrance and registration fees
Courses and sub-lettings
Other ancillary activities
School Trips, Meals and Other Income		 Total
2024
£’000
278		 Total
2023
£’000
93
2024
£’000
179
143		 2023
£’000
176
110
322 286
351 369
351 369
  1. ANALYSIS OF EXPENDITURE
Trading expenditure
Charitable activities
Education and welfare
Housekeeping
Catering
Transport
Maintenance and estate
Support costs and governance
Total expenditure		 Staff
Costs
£’000
222		 Other
Costs
£’000
134		 Depreciation
£’000
-
-
390
-
-
-
-
-		 Total
2024
£’000
356
222
5,492
341
423
-
364
1,258		 134
1,084
397
362
36
604
465		 356
6,966
738
785
36
968
1,723
7,878 2,948 390 11,216
8,100 3,082 390 11,572

27

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

7. ANALYSIS OF EXPENDITURE (Continued)

SUPPORT COSTS AND GOVERNANCE

SUPPORT COSTS AND GOVERNANCE
Salaries
Staff recruitment and travel
Marketing and professional fees
Telephone, postage, printing, stationery
Miscellaneous admin costs
Governance costs (Note 7)		 2024
£’000
1,258
52
301
14
59
38
1,722		 2023
£’000
1,195
85
365
16
72
40
1,773

Governance costs include auditors’ remuneration for audit services of £26k (2023: £24k) and for other services £3k (2023: £3k) and the reimbursement of two Governors’ travelling and subsistence expenses of £291 (2023: four Governors: £2k), as well as £7k for Governor miscellaneous and training costs (2023: £16k).

8.

STAFF COSTS
Wages and salaries
Social security costs
Other pension costs
Staff not directly employed by the School
The average monthly staff headcount was:
Teaching
Administration
Other		 2024
£’000
5,736
566
1,046
7,348
746
8,094
No.
107
35
22
164		 2023
£’000
5,723
580
1,048
7,351
717
8,068
No.
107
34
24
165

Included in the above, two permanent members of staff are employed in the trading subsidiary (2023: Two). In addition, ad hoc staff are called upon throughout the year to provide support for functions in the trading subsidiary.

28

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

8. STAFF COSTS (Continued)

The total employee costs (including employers’ pension and
national insurance contributions) of key personnel were:
The following number of staff received remuneration in excess of
£60,000 in the year:
£60,001 to £70,000
£70,001 to £80,000
£80,001 to £90,000
£160,001 to £170,000
£190,001 to £200,000
£230,001 to £240,000		 2024
£’000
1,424
2024
No.
10
3
-
1
-
-		 2023
£’000
1,373
2023
No.
3
2
1
-
1
1

One person connected with a governor has received remuneration from employment with the charity in accordance with the pay scales of the School (2023: One).

Included in the total staff cost figures above are termination payments to employees authorised during the year totalling £36k (2023 - £301k). At the year end, there was £21k in accrued termination payments (2023: £271k).

29

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

9. TANGIBLE FIXED ASSETS

a) The Group

) The Group
Cost
At 1 August 2023
Additions
Disposals
At 31 July 2024
Depreciation
At 1 August 2023
Charge for the year
Disposals
At 31 July 2024
Net book value
At 31 July 2024
At 31 July 2023
b) The School
Cost
At 1 August 2023
Additions
Disposals
At 31 July 2024
Depreciation
At 1 August 2023
Charge for the year
Disposals
At 31 July 2024
Net book value
At 31 July 2024
At 31 July 2023		 Freehold Land,
Buildings and
Improvements
£’000
16,670
-
-
16,670
5,711
240
-
5,951
10,719
10,961
Freehold Land,
Buildings and
Improvements
£’000
16,657
-
-
16,657
5,698
240
-
5,938
10,719
10,960		 Plant,
Furniture and
Equipment
£’000
2,099
120
(10)
2,209
1,487
151
(8)
1,630
579
610
Plant,
Furniture and
Equipment
£’000
2,097
121
(10)
2,207
1,485
151
(8)
1,628
579
611		 Motor
Vehicles
£’000
159
-
-
159
159
-
-
159
-
-
Motor
Vehicles
£’000
159
-
-		 Total
£’000
18,928
120
(10)
19,038
7,357
391
(8)
7,740
11,298
11,571
Total
£’000
18,911
121
(10)
159 19,023
159
-
-		 7,342
391
(8)
159 7,725
- 11,298
- 11,571

There are no assets under construction as at 31 July 2024.

30

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

10. INVESTMENTS

Frensham Heights Enterprises Ltd
£1 Ordinary shares at par in
Frensham Heights Enterprises Ltd		 2024
£’000
10
10		 2023
£’000
10
10

Company

The company holds £10,000 in ordinary shares, the entire issued share capital, of Frensham Heights Enterprises Limited.

The principal activity of the investee is the letting of facilities available at Frensham Heights School.

At 30 June 2024 Frensham Heights Enterprises Ltd had capital and reserves which totalled £17k (2023: £17k). The turnover for the year was £522k (2023: £466k).

Frensham Heights Enterprises Ltd is a company registered in England and Wales, registered number 2866864.

  1. DEBTORS: amounts falling due within one year
Amounts due from group undertaking
Fees debtors
Sundry debtors and prepayments		 Group
2024
£’000
2023
£’000
-
-
173
197
392
635
565
832		 School
2024
£’000
2023
£’000
65
232
173
197
294
315
532
744		 School
2024
£’000
2023
£’000
65
232
173
197
294
315
532
744
744

31

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

  1. CREDITORS: amounts falling due within one year
Amounts owed to group undertakings
Fees deposits
Trade creditors
Other creditors and accruals
Fees received in advance
Deferred income		 2024
£’000
47
550
312
336
479
454
2,178		 Group
2023
£’000
206
533
310
495
183
492
2,219		 School
2024
2023
£’000
£’000
-
-
550
533
299
306
308
472
479
183
230
199
1,866
1,693		 School
2024
2023
£’000
£’000
-
-
550
533
299
306
308
472
479
183
230
199
1,866
1,693
1,693

The total amount held in relation to fees deposits of £550k is included above. In the normal course of business, the expected repayment of these amounts will be £0 within one year and £550k after more than one year.

The School holds pupil fee deposits. Although under normal circumstances these will be repaid over future years when the pupils complete their education at the School, pupils can leave at earlier dates. The school does not therefore have an unconditional right to retain the individual deposits for at least 12 months after the balance sheet date and, in line with the requirements in FRS 102, the balance of the deposits held at 31 July 2024 have been included within current liabilities. The prior year pupil fee deposits balance has been similarly represented.

Deferred Income Reconciliation

Balance brought forward at 1 August 2023
Additions in current year
Release of deferred income
Balance carried forward at 31 July 2024		 £’000
492
448
(486)
454

The deferred income balance relates mostly to future year school trips income; and on the trading subsidiary, future year residential lets and weddings.

32

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

13. CREDITORS: amounts falling due after more than one year

Deferred income Group
2024
2023
£’000
£’000
2
1
2
1		 School
2024
2023
£’000
£’000
-
-
-
-
2

14. FEES IN ADVANCE SCHEME

Whilst the School did not reinstate the full Fees in Advance Scheme during the year, it followed the advice provided by the Independent Schools’ Bursar’s Association to allow parents to pay one year’s worth of fees in advance, should they so wish to, prior to 29 July 2024.

15. SHARE CAPITAL

15.
SHARE CAPITAL		 15.
SHARE CAPITAL		 15.
SHARE CAPITAL
Authorised
100 Ordinary shares of £1 each
Allotted, issued and fully paid
100 Ordinary shares of £1 each
16.
MOVEMENT ON FUNDS
Balance at
1 August
2023
£’000
Restricted Funds
Bursary and award fund
300
Music award fund
15
Ukrainian bursary fund
11
Endowment Fund
255
581
Designated Funds
Scholarship fund
833
Tangible fixed assets
fund
11,315
General Fund
3,931
16,660		 Incoming
Resources
£’000
10
3
-
-
13
-
-
11,211
11,224		 Resources
Expended
£’000
-
-
(4)
-
(4)
-
-
(11,567)
(11,571)		 2024
£
100
100
Transfer
Between
Funds
£’000
-
-
-
(4)
(4)
296
(268)
(24)
-		 2023
£
100
100
Balance
at 31 July
2024
£’000
310
18
7
251
586
1,129
11,047
3,551
16,313
16,660

33

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

16. MOVEMENT ON FUNDS (Continued)

Restricted Funds
Bursary and award fund
Music award fund
Ukrainian bursary fund
Endowment Fund
Designated Funds
Scholarship fund
Tangible fixed assets
fund
General Fund		 Balance at
1 August
2022
£’000
285
12
7
260
564
521
11,671
4,846		 Incoming
Resources
£’000
15
3
18
-
36
-
-
10,507
10,543		 Resources
Expended
£’000
-
-
(14)
-
(14)
-
-
(11,471)
(11,485)		 Transfer
Between
Funds
£’000
-
-
-
(5)
(5)
312
(356)
49
-		 Balance
at 31 July
2023
£’000
300
15
11
255
581
833
11,315
3,931
17,602 16,660

Bursary and award Fund

Consists of donations for the future award of bursaries. This will accumulate over time until the level of income the fund generates is sufficient to provide a reasonable bursary for a student.

Expendable Endowment funds

These are funds which were given to the School to invest in the School’s buildings. This funding is now represented by tangible fixed assets.

Designated funds

These funds represent amounts set aside at the discretion of the Governors.

Scholarship fund

This scholarship fund is used to indicate scholarships and bursaries currently awarded for specific stages of education, made against future years’ fees.

Tangible fixed assets fund

The fund represents the amount of general funds invested by the School in its tangible fixed assets after deducting those assets represented by the endowment funds.

Transfers

A transfer of £4k has been made between the endowment and unrestricted funds. This represents the depreciation charged on the proportion of the building represented by the endowment fund.

A transfer of £296k has been made to increase the Scholarship Fund. This is to cover the School’s future commitments at 31 July 2024 to bursaries and scholarships for specific pupils. The future commitments typically relate to the next two to three years.

34

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

A transfer of (£268k) has been made between the General fund and the Tangible 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
Tangible fixed assets
Net current assets
Creditors: amounts falling due
after one year
The Charity
Tangible fixed assets
Investments
Net current assets
Creditors: amounts falling due
after one year		 Unrestricted
General
Funds
£
11,047
4,682
15,729
2
15,727
11,047
10
4,664
15,721
-
15,721		 Restricted
Funds
£
-
335
335
-
335
-
-
335
335
-
335		 Endowment
Funds
£
251
-
251
-
251
251
-
-
251
-
251		 Total
2024
£
11,298
5,017
16,315
2
16,313
11,298
10
4,999
16,307
-
16,307

35

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS (Continued)

The Group
Tangible fixed assets
Net current assets
Creditors: amounts falling due
after one year		 Unrestricted
General
Funds
£
11,316
4,764
16,080
1
16,079		 Restricted
Funds
£
-
326
326
-
326		 Endowment
Funds
£
255
-
255
-
255		 Total
2023
£
11,571
5,090
16,661
1
16,660
The Charity
Tangible fixed assets
Investments
Net current assets
Creditors: amounts falling due
after one year		 11,316
10
4,746
16,072
-
16,072		 -
-
326
326
-
326		 255
-
-
255
-
255		 11,571
10
5,072
16,653
-
16,653

18. PENSION SCHEMES

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £530k (2023: £638k) and at the year-end £0 (2023: £11,286) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2020 and the Valuation Report was published in October 2023.

36

FOR THE YEAR ENDED 31 JULY 2024

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Following the McCloud judgement, the remedy proposed that when benefits become payable, eligible members can select to receive them from either the reformed or legacy schemes for the period 1 April 2015 to 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the greater benefits, and in preparing the 2020 valuation has valued the ‘greater value’ benefits for groups of relevant members.

The employer contribution rate for the TPS is 28.6%, and employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 28.68%.

The pension cost for the year in relation to other defined contribution schemes amounts to £525k (2023: £387k) and has been included in the Statement of Financial Activities.

19. LEASING COMMITMENTS

The Trust is committed to making the following payments under operating leases:

Equipment Equipment
2024 2023
£’000 £’000
Due in less than one year 88 73
Due within two and five years 142 189
Due in more than five years 0 24

20. CAPITAL COMMITMENTS

At 31 July 2024 the School had no material outstanding retention commitments and minor capital commitments for the purchase of a minibus for 27.5K

21. RELATED PARTY TRANSACTIONS

In 2023-24 the School charged £40k (2023: £38k) to Enterprises for utilities, labour and associated services. The balance owed to the School at 31 July 2024 was £65k (2023: £232k).

37

FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

22. CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES – COMPARISON FIGURES BY FUND TYPE

Income and endowments from:
Charitable Activities
School fees receivable
3
Other educational income
6
Other ancillary trading income
6
Other trading activities
Trading turnover
4
Other Income
Profit / (Loss) on disposal
Investments
Investment income
Voluntary Income
5
Grants and Donations
Total Income
Expenditure on:
Raising funds
Fundraising Trading
4
Charitable Activities
Education and grant making
Total expenditure
7
Net Income
Transfers between funds
16
Net movement of funds
Funds brought forward 1 August 2022
Funds carried forward 31 July 2023
17		 Unrestricted
Funds
£’000
9,278
286
369
466
32
(14)
91
-
10,508
293
11,179
11,472
(964)
5
(959)
17,038
16,079		 Restricted
Funds
£’000
-
-
-
-
-
-
2
34		 Endowed
Funds
£’000
Total
Funds
2023
£’000
-
9,278
-
286
-
369
-
466
-
32
-
(14)
-
93
-
34
36 -
10,544
-
14		 -
293
-
11,193
14 -
11,486
22
-		 -
(942)
(5)
-
22
304		 (5)
(942)
260
17,602
326 255
16,660

38