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2024-08-31-accounts

COMPANY NUMBER: 00057854

REGISTERED CHARITY NUMBER: 312590

King Alfred School Society

A company having no share capital and limited by guarantee

ANNUAL REPORT AND FINANCIAL STATEMENTS

Period ended 31[st ] August 2024

The King Alfred School, North End Road, London, NW11 7HY

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THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

CONTENTS
REFERENCE AND ADMINISTRATIVE DETAILS p.3
INTRODUCTION BY THE CHAIR OF COUNCIL p.6
TRUSTEES’ REPORT BY COUNCIL p.7
1. OBJECTIVES, ETHOS, STRATEGIES AND ACTIVITIES P.7
1.1 Aims and objectives of the King Alfred School Society
1.2 Ethos
1.3 Strategies for Achieving Objectives
1.4 Public Benefit
2. REVIEW OF ACHIEVEMENTS AND PERFORMANCE p. 9
2.1 The King Alfred School
2.2 Educational Research
2.3 Broadening Impact and Dissemination
3. FINANCIAL REVIEW AND RESULTS p.12
3.1 Income and Expenditure
3.2 The Trading Company
3.3 The Balance Sheet
3.4 Reserves Policy
3.5 Investment Policy
3.6 Going Concern
4. PLANS FOR FUTURE PERIODS p.14
4.1 Challenging the Educational Paradigms
4.2 Further Strengthening the School and Community
4.3 Continuing to Broaden our Impact via Partnership and Outreach
4.4 Maintaining our Financial Results and Investing in the Future
5. STRUCTURE, GOVERNANCE AND MANAGEMENT p.15
5.1 Governance and Organisation
5.2 Conflict of Interest
5.3 Development and Fundraising
5.4 Appointment, Induction and Review of Members of Council
5.5 Remuneration of Key Management
5.6 Risk Management
STATEMENT OF TRUSTEES’ RESPONSIBILITIES p.18
INDEPENDENT AUDITOR’S REPORT p.19
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES P.22
CONSOLIDATED AND COMPANY BALANCE SHEETS p.23
CONSOLIDATED CASH FLOW STATEMENT p.24
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS p.25

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REFERENCE AND ADMINISTRATIVE DETAILS

PRESIDENT CHAIR Kara Conti Sam Jukes-Adams

TREASURER Nick Friedlos

HEAD

Robert Lobatto BA Hons (Oxon), PGCE, NPQH (London)

DIRECTOR OF FINANCE & OPERATIONS Caroline Korniczky BA Hons, ACA

OTHER COUNCIL MEMBERS

Amy Chapman (resigned February 2024), Annabel Cody (resigned February 2024) Angela Dehadray, Robert Dye (resigned December 2023), Grace Edghill, David Gossen (resigned August 2024), Fiona Hackett, Nick Harper,

Jo Lucas, Lara McCann, Sarah Phillips, Sophie Ricard, Johnny Rosen, Christian Schmidt (resigned February 2024), Sophia Senroy, Jo Tang, Philip Whale, Galia Shilo Sum (appointed February 2024), Rebekah Clark (appointed February 2024), Phoebe D’Arcy (appointed February 2024), Clare Jarmy (appointed October 2024).

REGISTERED ADDRESS 149 North End Road, London, NW11 7HY

AUDITORS

HaysMac LLP, Chartered Accountants 10 Queen Street Place, London, EC4R 1AG

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REFERENCE AND ADMINISTRATIVE DETAILS

BANKERS Barclays Bank Plc, PO Box 12820, London N20 0WE

SOLICITORS Harrison Clark Rickerbys, Ellenborough House, Wellington Street, Cheltenham, Gloucestershire, GL50 1YD

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INTRODUCTION BY THE CHAIR OF COUNCIL

In 1897, the King Alfred School Society (the Society) was established to provide a new model of education and to influence the educational landscape. Reacting to the selective and examfocused Victorian school system, and a desire to learn ‘out doors’, The King Alfred School’s (the “School”) purpose was to educate the whole child. Learning would take place in a nonselective co-educational setting in which staff would work collaboratively with pupils using teaching based on the latest scientific methods in an environment free from unnecessary pressures.

As we look ahead to a new world order for independent schools with structural changes to the taxation on fees, the relevance of education set out in this way is even more important today. Holding onto our way of educating recognises the ability to choose a holistic approach that benefits the whole child in school and beyond. It challenges a very target driven, exam-based approach and develops the child's sense of self as a learner, an individual and a group member, with the emphasis on intrinsic rather than extrinsic motivation.

Council and the school have collaborated on two major governmental changes this year: the formal consultation on the increase in the employer’s contribution to the TPS (Teachers’ Pension Scheme) and the introduction of VAT on fees for independent schools. I want to formally thank the Teacher Reps, Staff, Head and DFO for their commitment and engagement in the process.

I also want to thank the Head and the DFO for aiding Council in its work to come to a determination on how to deal with the pressure of VAT on fees for our particular school setting. In this process, we have held to three key principles:

devise a response to this pressure and also consider the opportunities it brings to strategic thinking and planning.

Despite external pressures, the school has done incredibly well in its GCSE, A level and UAL results, showing how it is possible for students to enjoy school, love learning and have academic success. It begs the question why more educational institutions are not also adopting the progressive way. The introduction of SDCs is an illustration of how curriculum change can renew enthusiasm for staff and enable them to teach in ways that better reflect the subjects and students that staff know so well. Long may this teacher-led influence continue.

The AGM signals our annual retirement from and election to Council - this year we said thank you and goodbye to David Gossen, Robert Dye, Christian Schmidt and Amy Chapman. Annabel Cody also stepped down but re-joined some committees as a co-opted governor. We welcomed to Council Rebekah Clark, Galia Shilo Sum and Phoebe D’Arcy who have joined with enthusiasm and commitment from the get-go. A huge thank you to all the Council members for their continued commitment and dedication to their governor roles and work. This year has been fulsome in its demands on council members times, and it does not go unappreciated. A special mention must go to the Treasurer, Nick Friedlos, for his extensive time on both the TPS and VAT, and also Angela Dehadray in her work as Safeguarding Governor this past year.

Lastly, to Robert Lobatto (Head) and Caroline Korniczky (DFO), the demands of Council on them this year has been significant, and we are truly grateful for their work and support for both Council and the school.

SAM JUKES-ADAMS Chair of The King Alfred School Council

To that end, Council has been working hard to

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TRUSTEES’ REPORT FOR THE PERIOD ENDED 31[st] August 2024

The King Alfred School Society is a company and registered charity.

The principal concern of the Society is the operation of its schools, namely The King Alfred School in North London. However, the Society has a wider remit than simply the operation of the school.

It also aims to promote the wider advancement of education through research and to disseminate the results of that research. Additionally, the Society seeks to broaden its impact by making its education and educational philosophy available to a wider range of students.

The Members of the Society, of whom the majority are The King Alfred School parents, elect Council members to act as charity trustees, company directors and governors of The King Alfred School. Council members are all volunteers and come from a wide range of professions and occupations. As school governors of The King Alfred School, Council members work alongside the school’s senior leadership team which is responsible for execution of policy and management of the day-to-day operation of the school.

At its heart, the Society promotes the belief that a good education provides the opportunity for each young person to achieve their potential and to contribute to society in whatever way best suits their talents.

In the report below, Council, as trustees of the Society, sets out the aims of the Society, its charitable objects, and how the Society has delivered public benefit.

1. OBJECTIVES, ETHOS, STRATEGIES & ACTIVITIES

1.1. Aims and Objectives of the King Alfred School Society

The objects of the Society are set out in the Articles of Association. These include:

1.2. Ethos

The King Alfred School Society was established in 1897 by a group of parents with a specific vision that education should be based on rational, scientific principles focused on what is best for the individual development of the child as a whole person. The founders were influenced by reformers such as Pestalozzi, Herbart and Froebel and they set out principles of the Society by which schools were to be operated. The principles of education promoted by the Society have been developed but not materially changed in the years since and include:

“The King Alfred School Society Framework”, first published in 2012, illustrates many aspects of this approach.

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1.3. Strategies for Achieving Objectives

1.3.1. Educational research and dissemination

The Society aims to inspire and influence others to create a more human-centred education. It runs conferences and promotes projects that model our approach, generating evidence of best practice.

The Society supports research both externally and from individual staff members who can be offered financial assistance with their projects. Visitors are welcomed to the school and come from far and wide.

1.3.2. The School

During the year, The King Alfred School educated 715 children aged 4 to 18.

The school provides a warm and nurturing environment in which children are treated as individuals and appreciated for who they are. Within the school, relationships between pupils and staff are informal and trusting. We minimise unnecessary pressure, and our approach to learning, testing and exams is based on the best available research evidence. We seek to foster the intrinsic motivation of a child over extrinsic approval and teach every individual the importance of valuing their achievement on their own terms, rather than in relation to others’ expectations. Having small classes with excellent teaching means that the needs of every child are planned for.

Council and the Senior Leadership Team continue to align strategic planning with our vision for education; a vision that has been richly informed by input from students, staff and parents.

The three core strategic areas of focus for the school are:

1.3.3 Broadening our Reach

The Trustees believe that it is important that access to The King Alfred School education is not restricted to only those who can afford our fees. Each year, means-tested bursaries are awarded to children entering Year 7 which, subject to financial review, remain in place throughout the school career of the child concerned. Means-tested bursaries are also awarded for children joining the Sixth Form. In addition, temporary hardship relief is provided on a means tested basis for children whose circumstances have changed. Over the past year, the school has also been able to provide fully-funded bursary places to five young people from Ukraine, whose education was disrupted following Russia’s invasion – two in Key Stage 4 and three in The Sixth Form.

Partnerships at home and abroad continue to play an important role for both the Society and the school. In the UK, the school has links with a hub of local state schools, including The Archer Academy, Henrietta Barnett, Parliament Hill, Christ College and School 21. Our contribution includes outreach activities and sharing access to some of our facilities and counselling services. Partnership work with like-minded schools in both the state and independent sectors is growing, through various projects including our local hub, ‘The Big 10’, and the Schools Directed Courses Consortium (SDCC). All these partnerships encourage and support other schools to explore and embrace forward-thinking methods, and also to contribute to the educational debate and influence future policy. Internationally, the school has active partnerships with schools in Namibia and Sri Lanka.

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1.4. Public Benefit

The Trustees confirm that they have complied with their duty in section 17 of the Charities Act 2011 to have due regard to the guidance on public benefit published by the Charity Commission, including the guidance “Public Benefit: running a charity” (PB2).

2. REVIEW OF ACHIEVEMENTS AND PERFORMANCE

2.1 The King Alfred School

In 2023/2024, an average of 712 students (2022/2023, 691) were educated within The King Alfred School, of which 69 students (2022/23, 43) received education at subsidised rates or free of charge.

The school has a holistic vision of educational performance and is committed to the notion of a ‘broad definition of success’ - exam results are important, but an outcome of a good education rather than defining it.

The Society considers the school’s exam performance using a nationally recognised value-added method (ALIS and YELLIS), which evaluates whether or not the school has supported pupils to achieve outcomes above their predicted grades in public examinations. In addition, examination results are benchmarked against national and independent school averages.

At A level, 58% of all grades were A-A, and 91% of the grades secured by students were A – C. In addition to being double the national averages, they were also higher than the averages for independent schools. Students progressed to a variety of top tier universities, including overseas institutions, with some choosing alternative pathways such as internships and work experience in creative industries.

The fifth cohort successfully completed the UAL Diploma in Performing Arts this summer. This course is equivalent to three A levels. Almost all students achieved distinctions, which are equivalent to three A*s at A level.

On value-added measures, ALIS calculated that the school’s A level results were in the in the top 7% of schools for progress between GCSEs and A levels. A Level Results for the last three years

A*/A % A*-B % A*-C % A*-E %
KAS 2024 58.0 80.4 92.0 98.9
National 2024 27.6 53.6 76.0 97.1
Independent 2024 49.4 89.8
KAS 2023 52.0 74.1 88.9 98.9
National 2023 26.5 53.5 74.4 97.3
Independent 2023 47.4 89.0
**KAS 2022 *** 55.4 85.2 95.0 99.2
**National 2022 *** 35.9 62.2 82.1 98.4
**Independent 2022 *** 58.0 92.1

.* all results nationally more generous to take account of the impact of Covid

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At GCSE level, students’ 2024 results were also significantly higher than both national and independent school averages. YELLIS value-added calculations show that on average, students achieved approximately one third of a grade higher than their expected grades, which is a very positive outcome.

GCSE Results for the last three years

7/8/9 4and above
(A/A*/A)% ** **(C and above)% **
KAS 2024 55.4 94.2
National 2024 21.8 67.6
Independent 2024 48.4 90.9
KAS 2023 40.0 90.1
National 2023 21.6 67.8
Independent 2023 46.6 90.1
KAS 2022* 51.2 94.5
National 2022* 26.0 73.0
Independent 2022* 53.0 92.5

.* all results nationally more generous to take account of the impact of Covid

The United Nations Sustainable Development Goals are explicitly and systematically built into the Lower School curriculum, with students engaged in a range of activities such as a Climate Change Awareness programme. The school further evolved its environmental programme with new curriculum development and extra-curricular activities in both the Lower and Upper Schools.

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Students continued to have a significant voice. Peer support initiatives, such as the Peer Listener’s Programme (KPLs) and Peer Education mental health programme (PEP) are embedded in the timetable. Representatives from “School Six”, the elected student representatives for the Upper School, take the lead in coordinating a Pupils’ Council, which comprises representatives from each Upper School year group. In the Lower School, student councillors represent each class in Years 2-6 and student Council meetings take place on a regular basis.

The Development Office has continued to provide a hub for school alumni (Old Alfredians or OAs). Their stories and connections with the school provide a wonderful tapestry of experience and are sowing the seeds for a valuable network connecting past, present and future generations of Alfredians. The @OldAlfredians social media account has continued to grow, and the very successful Connections series continued to link Old Alfredians with Sixth Formers to provide careers advice and insights.

The new Sixth Form building, which was officially opened in September 2021, has boosted recruitment, with numbers increasing from 92 students in 2020/21 to 125 in 2023/24.

2.2 Educational Research

KAS staff members have been involved in a range of different research projects over the past year, particularly those aligned with ongoing efforts to support curriculum innovation and assessment reform.

Research has continued into the assessment of creativity – a project carried out in partnership with Bill Lucas, Professor of Learning and Director of the Centre for Real-World Learning at the University of Winchester, and our colleagues in the ‘Big 10’ partnership.

Hannah Sheath, who has played a significant role in the development of the 6 to 8 curriculum, is researching for her PHD in the development of skills through enquiry-based learning. In addition, she has secured a grant from the Edge Foundation to consolidate and disseminate her findings.

Robert Lobatto, Julian Reed, Rachael Herman and Hannah Sheath have researched how skills are developed in different educational systems across the world and co-authored a guide with colleagues in the Big 10 network on this topic.

2.3 Broadening Impact and Dissemination

This year, the school developed its partnership strategy. This consists of three core strands – influencing young people directly; developing, codifying and sharing progressive practices; and influencing the wider system.

In the first strand - influencing young people directly - in 2023/24, 36 (2022/23: 33) bursaries were in operation with a value of £551,038 (2022/23: £573,743). In addition, fee remissions and hardship awards totalled £536,641 (2022/23 £409,872).

We continued sharing our counselling services with the The Archer Academy, and as mentioned above, have set up a local partnership hub with Henrietta Barnett, Christ College, Parliament Hill and The Archer Academy. In its early stages, this has already led to the other schools using our facilities, such as the Phoenix Theatre, and collaboration on a leadership development programme.

Students visited Namibia once again to work with our partner – the Abraham Gariseb Primary School. Unfortunately, due to the local political situation, visits to our partner school in Sri Lanka are on hold for the time-being.

Meanwhile, the school works in partnership with Tudor Park Education Trust (TPET) where the Head, Robert Lobatto, is on the Board of Directors. In addition, Daniel Love is the Chair of the Academy Council at the Noel Park Primary School, which is part of the AET Multi Academy Trust.

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In the second strand - developing, codifying and sharing progressive practices - the school remains a key player within the “Rethinking Assessment” group, which is exploring alternatives to GCSE and counts the school’s Deputy Head, Al McConville, as a co-founder. Al’s work around assessment has developed further with the formation of the School Directed Courses Consortium, which is an alliance of over 50 schools running or considering non-GCSE courses at Key Stage 4. Both organisations are involved in developing, codifying and sharing practices (such as digital learner profiles, templates for SDCs) as well as advocating for system change.

In a similar vein, the school has continued to be a key member of ’The Big 10’, which consists of three separate cohorts of 10 forward-looking schools who are committed to sharing best practice and having a wider influence on the education system. KAS is one of only a few independent schools in the group and has particularly focussed its work on the development of learner profiles and the embedding of the skills of communication, collaboration and creative thinking into the curriculum. This has been captured in a published guide.

The Village Project went ahead in June 2023 with Year 8 students establishing a self-sufficient community in the school grounds, governing their society, building their own shelters and preparing their own food. Work continued on the book about the Village Project, commissioned by the Society and written by Stephen de Brett. The publication will cover the ‘what, why and how’ of the Village, describing the history and inherent philosophy behind it, whilst also providing a handbook for other schools so they can replicate this extraordinary outdoor experiment. In addition, the shorter publication called ‘A day in the village’, giving visitors an insight into the experience, is in circulation and we have made a new film as part of our ‘Big 10’ work, which is available on a wide range of websites.

In the third strand - influencing the system - we hosted visits this year from a large group of school leaders from Northern Ireland, and schools in Surrey, West London and Cardiff. In addition, we hosted and facilitated the inaugural meetings of a coalition of educationalists committed to shifting the system to a more holistic vision of education – The UK Education Collaborative. We welcomed PGCE students from Cambridge University and spoke with PGCE students at University of East London.

3. FINANCIAL REVIEW AND RESULTS

3.1. Income and Expenditure

The Society took the decision to change its financial year from 31 July to 31 August in order to align its financial years going forward with academic years. This being the year of change, these accounts represent an extended period of 13 months from 1 August 2023 to 31 August 2024.

As a result, the surplus for the 13-month period is much reduced compared with the prior year since the accounts include an additional month’s costs (mostly payroll) for the month of August 2024 but no additional income since fee income is not received in August.

As in previous years, by far the largest single income generating activity of the Society was the school, with 96% of the Society’s income representing educational activities for the school. The remaining 4% of income arose from activities of the trading company, including lettings, investment income and donations.

On the income side, the school increased 2023/24 fees by 8% (2022/23: 4%) to combat inflationary pay rises. Total income of the Society amounted to £16,512,443 for the period compared to £14,849,568 for 2022/2023, representing a rise of 11%. This was primarily driven by an increase in pupil numbers.

The income included £246,839 (2022/23: £240,460) in donations and gifts. Some donations were given for specific purposes by the donor and appear as “restricted” funds. Others were donated unrestricted and were designated by the trustees for particular purposes and appear as “designated” funds. Donations which are neither restricted and have not yet been designated are unrestricted.

On the expenditure side, despite high levels of inflation, particularly in catering and energy costs, overall expenses of the Society were well controlled and increased by 17% (reflecting a 13-month period of

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costs compared with the previous 12-month period) before adjustment for the pension provision to £16,431,833 in 2023/24 (2022/23: £14,040,452). Expenses, as in previous years, were mostly directly or indirectly costs of running the school (96%). The remaining 4% represented costs associated with depreciation. Of the staff costs associated with running the school, 73% were teaching costs and 27% were support staff costs, including finance, HR, ICT, marketing and admissions, development, catering and premises.

Non-staff costs of £4,245,715 included educational costs plus other costs, including insurance, maintenance and repairs.

Overall, the Society finished the year with a financial surplus of £114,580 (£952,428 in 2022/23) despite the 13-month period, which allocated an additional month of costs with no associated income.

3.2. The Trading Company

The King Alfred Trading Company Limited manages after-school, weekend and holiday lettings of the grounds and buildings as well as the coffee kiosk. It is a wholly owned subsidiary of the Society and its profits are gift aided to the school. The results of its trading activities are set out in Note 5 and are consolidated into the financial results.

3.3. The Balance Sheet

At 31 August 2024, net assets of the Society totalled £33,836,458 (31 July 2023: £33,721,878). The most significant asset of the Society is the land and buildings of the School which had a net book value of £34,636,239 at the end of the period (31 July 2023: £34,968,365). Other fixed assets totalled £1,668,472 (31 July 2023: £1,207,512) which included assets under construction (Phoenix Theatre). Unrestricted funds of the Society totalled £33,555,288 with £404,028 of these funds designated for specific purposes. Restricted funds totalled £281,170 including a bursary fund of £70,529.

Net current assets on 31 August 2024 were £5,300,293 (31 July 2023: £2,740,573). Debtors of £808,886 (31 July 2023: £649,784) are primarily outstanding school fees plus prepayments and accrued income. Cash, the other current asset, was £7,149,631 (31 July 2023: £3,886,787), bolstered by fees received in advance for future years.

Current liabilities, at £2,658,224 (31 July 2023: £1,795,999), include fees received in advance, fee deposits, tax, national insurance payments and trade creditors.

Long-term creditors, at £7,067,361 (31 July 2023: £4,459,418), mostly comprise fee deposits and advance fee payments. The long-term provision of £701,185 (31 July 2023: £735,154) represents the potential deficit on the Independent Schools’ Pension Scheme.

3.4. Reserves Policy

On 31 August 2024, the Society’s cash balances were £7,149,631 (31 July 2023: £3,886,788). Free reserves, defined as unrestricted funds plus long-term creditors minus fixed assets, were £5,019,123 compared to £2,514,221 on 31 July 2023.

The Society aims to have an operating surplus of unrestricted income each year. It does not aim to build up its free reserves but to invest its operating surplus in capital projects and infrastructure to keep the School providing an excellent education.

To ensure that the Society has adequate access to the cash, it has an arranged bank overdraft facility that allows up to £1,000,000 to be drawn. The bank overdraft facility was not used during 2023/24. There are no loans outstanding. Council monitors the level of cash reserves on a termly basis and reviews the reserve policy on an annual basis. Council considers the level of free and cash reserves currently held to be adequate.

3.5. Investment Policy

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The school holds the cash it needs to meet its day-to-day requirements in its current account. Excess cash is invested in interest-bearing deposits.

3.6 Going Concern

Following the period of uncertainty caused by the pandemic, Council worked hard to ensure the financial sustainability of the Society. School fees were increased by 8% in September 2023 after a few years of lower fee rises which had been put in place to try to avoid increasing the financial burden for families at a difficult time, however, the school’s main cost is staff salaries and these have risen in line with the public sector.

The Society recorded a modest surplus in 2023/24 of £114,580 but this reflects a 13-month period which included 13 months of costs but only three terms of income.

To provide further liquidity and resilience, the Society renewed its £1m overdraft facility and has no outstanding loans.

VAT on school fees will add uncertainty to the future and Council has modelled various scenarios based on this. In addition, the incoming government has removed business rates relief which will come into effect in April 2025.

Overall, however, Council is confident that the Society has adequate resources to continue its activities for the foreseeable future. School numbers have risen to over 700 and Council hopes to maintain or increase these numbers to add to future income. In addition, the Society has some cash reserves in place.

In light of the above, no material uncertainties have been identified which compromise the Society’s operations. Accordingly, the financial statements have been prepared on a going concern basis.

4. PLANS FOR FUTURE PERIODS

The Society and the school are moving ahead with important strategic development goals. We are confident that these will both benefit our community and create a sustainable future.

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4.1 Further Strengthening the School and Community

We continue to develop our ambitious vision for the school with our new five-year strategic plan.

4.2 Maintaining our Financial Results and Investing in the Future

Council will continue to carefully monitor the school’s cash flow and develop scenarios for the future.

In addition to current inflationary pressures, there are a number of external economic challenges that present uncertainty to the financial results, however, the school will continue to review the business model and develop agile methodologies to respond to these as they arise, particularly with regard to political changes and the potential impact on student numbers. At the same time, the school needs to plan to maintain investment across the school curriculum and campus in order to enable and reflect our educational aims, to deliver our charitable objectives and to further strengthen our position in the market and maintain our student numbers. The school regularly monitors its cost base and reviews all expenditure plus potential income generation to ensure financial sustainability over the long-term.

5. STRUCTURE, GOVERNANCE AND MANAGEMENT

5.1 Governance and Organisation

The King Alfred School Society is a company limited by guarantee governed by its Articles of Association which were last updated on 8 December 2015. The King Alfred School Society is registered as a charity with the Charity Commission.

Council members, as Directors and Trustees, have the ultimate responsibility for good governance of the Society and all of its activities and is the highest decision-making body. Council members oversee the work of the school’s senior leadership team, who are responsible for execution of policy and management of the day-to-day operation of the school. On 31 August 2024, there were 18 Council members.

5.2 Conflict of Interest

Council takes the management of potential conflicts of interest very seriously and the Articles of Association, adopted in December 2015, brought the provision in this area up to current best practice. Each year, Council members receive a briefing note describing their responsibilities and giving guidance on managing conflicts. In addition, the Chair of Council and the Chair of the Governance Committee are available to help Council members to identify conflicts and to deal with them appropriately, which may include making a declaration to Council or withdrawing from discussions and/or decisions.

5.3 Development and Fundraising

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The Society has registered with the Fundraising Regulator and complies with the Fundraising Code of Practice. It has received no complaints about its fundraising activities. The Society has developed rigorous procedures to support its fundraising activities including a supported charter, gift form and gift aid declarations. It does not use third party participator firms to support fundraising activities. Fundraising practices, including GDPR compliance, are overseen directly by the Governance Committee.

5.4 Appointment, Induction and Review of Members of Council

Council can be between seven and 21 members. Council members are elected by the Society members, most in a general election, for a term of up to four years. Council reserves three places for co-opted members. The Treasurer and President are elected annually by members at the Annual General Meeting. Council elects its own Chair annually following the Annual General Meeting.

In 2023/24, the Council Committee structure continued to go from strength to strength. The Education, Governance, Finance, Community and Grounds & Buildings Committees provided Council with specific and broader skills in their area of focus. The Society Committee oversees the programme of conferences, outreach and research whilst a Bursaries Committee reviews all applications for financial support.

Council repeated its process of self-review, benchmarking Council’s performance against the Charity Governance Code and updating its strategy, action plan and objectives. This will continue to be reviewed each year.

All new members of Council undergo induction training and meet with the Director of Finance & Operations and Chair shortly after appointment. Ongoing training is provided to all Council members through training days and other appropriate external courses. Council is also fortunate that Sarah Phillips, Council member and former Treasurer, sits on the board of AGBIS, the umbrella organisation for governors of independent schools.

5.5 Remuneration of Key Management

Key management personnel comprise the Head, the Head of Lower School, the Deputy Headteacher in the Upper School and the Director of Finance & Operations. Their remuneration is reviewed by the members of the Finance Committee of Council, together with the Head, where appropriate. The review takes account of school survey data, published information from comparable schools, the maintained school leadership scale and general commercial knowledge.

5.6 Risk Management

Council is satisfied that the major risks to which the Society and school are exposed have been reviewed and that there are systems and procedures in place to manage those risks. The Governance Committee oversees the Society’s risk management process with individual risks delegated to relevant Council committees.

Council has identified a number of critical risk areas and defined for each of these risk areas a risk control process which sets out the level of risk, what the controls are, who is responsible, how frequently the risk should be monitored, and any further actions required. Risks are grouped into six areas shown in the table overleaf. Each risk is reviewed in depth at least once a year by one of the Council Committees.

The table overleaf shows the risk register and the risk mitigation strategies for the six risk areas.

16 THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

TRUSTEES’ REPORT FOR THE PERIOD ENDED 31[st] August 2024

The King Alfred School Risk Register 2023/24

Risk Area Risk Mitigation Strategies
1. Strategic Risks • Council approves the Strategy and Strategic Plan and the Head reports to Council
• Council monitors the external environment and the School’s financial position
• Council oversees educational standards and approach
• The future introduction of VAT on school fees is a significant risk for the school in a number
of areas. A multi-disciplinary working group was formed to consider the school’s responses.
2. Operational risks,
including:
- reduction in pupil numbers
- major incident.		 • The Finance Committee and Council carefully monitor school numbers and factors
which affect admissions
• The Designated Safeguarding Lead works closely with the Head and Council
(including the designated Safeguarding Link Council Member) to ensure
safeguarding is embedded into the school and Society’s practices and culture
• The Critical Incident Management Plan is regularly reviewed and updated
• The Grounds & Buildings Committee receives regular reports on the planned
preventative maintenance programme, health and safety and on business
continuity plans
3. Financial Risks • The Finance Committee reviews and approves the annual budget, and monitors spend
against budget and debtors
• Long-term and short-term cash flow forecasts are maintained and reviewed
• Financial controls are reviewed on a rolling basis by the external auditors and Finance
Committee
4. Compliance Risks • Governance Committee reviews an annual compliance report
• External audits in a wide range of areas
5. Human Resources Risks,
including:
- recruitment & retention risk
- key person risk		 • The Governance Committee reviews HR strategies and policies on a rolling basis.
• The Head is appraised on an annual basis, with external input every three years
• Council carries out a self-review annually
6. Asset Risks, including
Buildings and IT.		 • The Grounds & Building Committee reviews the planned preventative maintenance
programme, oversees security arrangements and maintains the master plan
• The Finance Committee receives regular updates from the IT team on IT security

17

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

STATEMENT OF TRUSTEES’ RESPONSIBILITIES FOR THE YEAR ENDED 31[st] August 2024

The Council members who are Charity Trustees (and directors of King Alfred School Society for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires Council members to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Council members are required to:

The Council members are responsible for keeping proper accounting records that 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. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Council members are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.

In so far as the Council members are aware:

The Trustees’ Report is approved by the Council members of King Alfred School Society. The strategic report, which forms part of the Annual Report, is approved by Council in their capacity as Directors in company law of the King Alfred School Society.

Registered office and official address: The King Alfred School Society Limited 149 North End Road London NW11 7HY

BY ORDER OF THE COUNCIL

Treasurer: Nick Friedlos Date: 15 January 2025

18 THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF THE KING ALFRED SCHOOL SOCIETY

Opinion

We have audited the financial statements of The King Alfred School Society for the period ended 31 August 2024 which comprise the Consolidated Statement of Financial Activities including the Summary Income and Expenditure Account, the Consolidated and Parent Charitable Company Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of 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 trustees’ 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 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. The other information comprises the information included in the Introduction by the Chair of Council and the Trustees’ Annual Report. 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.

In connection with our audit of the financial statements, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

19 THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF THE KING ALFRED SCHOOL SOCIETY

Opinions on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ 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 for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 18, 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 group’s and the parent 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 group or the parent 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the group and parent charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to independent school regulations, safeguarding regulations, health and safety law, GDPR and employment law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations

20

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF THE KING ALFRED SCHOOL SOCIETY

that have a direct impact on the preparation of the financial statements such as the independent school regulations, Companies Act 2006, the Charities Act 2011, and payroll taxes.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

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.

oan Lee Stokes (Senior Statutory Auditor) 10 Queen Street Place For and on behalf of HaysMac LLP (Statutory Auditors) London EC4R 1AG

Date: 23 January 2025

21

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

INCLUDING THE INCOME AND EXPENDITURE ACCOUNT FOR THE PERIOD ENDED 31ST AUGUST 2024

Total Total
Unrestricted Designated Restricted For the period For the year
funds funds funds ended 31 ended 31 July
August 2024 2023
Note £ £ £ £ £
INCOME FROM:
Charitable Activities 1
School fees 15,831,865 20,712 - 15,852,577 14,336,347
KASS membership - 16,312 - 16,312 9,945
Trading activities
Trading income 38,630 - - 38,630 34,061
Investments 1
Investment income 287,462 - - 287,462 153,182
Rents and lettings 70,623 - - 70,623 75,073
Donations and legacies 1
Grants and donations - 114,156 132,683 246,839 240,460
Profit on sale of fixed assets - - - - 500
-------------------- --------------------- --------------------- -------------------- --------------------
Total income 16,228,580 151,180 132,683 16,512,443 14,849,568
=========== ============ ============ =========== ===========
EXPENDITURE ON:
Charitable activities 2
Education 16,299,727 27,971 11,942 16,339,640 13,838,294
Raising funds 2
Letting expenses 15,682 - - 15,682 20,672
Trading expenses 42,541 - - 42,541 38,174
-------------------- -------------------- -------------------- -------------------- --------------------
Total expenditure 16,357,950 27,971 11,942 16,397,863 13,897,140
=========== =========== =========== =========== ===========
-------------------- -------------------- -------------------- -------------------- --------------------
Net income/(expenditure) (129,370) 123,209 120,741 114,580 952,428
=========== =========== =========== =========== ===========
Transfer between funds 326,553 (260,630) (65,923) - -
------------------- ------------------- ------------------- ------------------- -------------------
Net movement in funds 197,183 (137,421) 54,818 114,580 952,428
------------------- -------------------- -------------------- -------------------- --------------------
Fund balances brought forward at 1 August 32,954,077 541,449 226,352 33,721,878 32,769,540
2023
------------------- -------------------- -------------------- -------------------- --------------------
Fund balances carried forward at 31 August 11,12 33,151,260 404,028 281,170 33,836,458 33,721,878
2024
=========== =========== =========== =========== ===========

Continuing Operations

None of the Society’s activities were acquired or discontinued during the above two financial periods.

Total recognised gains and losses

The Society has no recognised gains or losses other than those shown in the above two financial periods.

The notes on page 25 to 48 form part of these financial statements. Details of comparative figures by fund are given in Note 16.

22

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

CONSOLIDATED AND COMPANY BALANCE SHEETS AS AT 31st August 2024

The Group The Group The Company The Company
As at 31 As at As at 31 As at
August 31 July August 31 July
2024 2023 2024 2023
Note £ £ £ £
TANGIBLE FIXED ASSETS
School land, buildings and equipment 4 36,304,711 36,175,877 36,304,711 36,175,877
Investments 5 - - 2 2
------------------- ------------------- ------------------- -------------------
36,304,711 36,175,877 36,304,713 36,175,879
CURRENT ASSETS
Debtors 6 808,886 649,784 900,861 719,690
Cash 10 7,149,631 3,886,788 7,009,491 3,770,801
------------------- ------------------- ------------------- -------------------
7,958,517 4,536,572 7,910,352 4,490,491
CREDITORS: amounts falling due 7 (2,658,224) (1,795,999) (2,652,753) (1,792,492)
within one year
------------------- ------------------- ------------------- -------------------
NET CURRENT ASSETS 5,300,293 2,740,573 5,257,599 2,697,999
------------------- ------------------- ------------------- -------------------
TOTAL ASSETS LESS CURRENT 41,605,004 38,916,450 41,562,312 38,873,878
LIABILITIES
CREDITORS: due after more than one 8 (7,067,361) (4,459,418) (7,067,361) (4,459,418)
year
PROVISIONS:for liabilities and 9 (701,185) (735,154) (701,185) (735,154)
charges
------------------- ------------------- ------------------- -------------------
NET ASSETS 33,836,458 33,721,878 33,793,766 33,679,306
=========== =========== =========== ===========
FUNDS
Unrestricted - General 11&12 10,352,160 10,154,977 10,309,468 10,112,405
Unrestricted – Revaluation Reserve 11&12 22,799,100 22,799,100 22,799,100 22,799,100
Unrestricted – Designated 11&12 404,028 541,449 404,028 541,449
Restricted 11&12 281,170 226,352 281,170 226,352
------------------- ------------------- ------------------- -------------------
TOTAL FUNDS 17 33,836,458 33,721,878 33,793,766 33,679,306
=========== =========== =========== ===========

The Company’s net movement in funds for the year was £114,460 (2022/23: £971,150)

Approved and authorised for issue by Council on 15th January 2025 and signed on their behalf by:

Chair: Sam Jukes-Adams Treasurer: Nick Friedlos

23 THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 31st AUGUST 2024

Note Period ended Year ended 31
31 August 2024 July 2023
£ £
NET CASH INFLOW FROM OPERATING ACTIVITIES 10 240,698 1,107,606
CASH FLOWS FROM INVESTING ACTIVITIES
Bank interest received 287,462 153,182
Interest payable - (58,232)
Proceeds from disposal of fixed assets - 500
Payments to acquire fixed assets (800,058) (733,744)
------------------- ------------------
NET CASH OUTFLOW FROM INVESTING ACTIVITIES (512,596) (638,294)
CASH FLOWS FROM FINANCING ACTIVITIES
Net receipts from new deposits and deposit increases less deposits refunded 922,666 152,839
Net increase from new advance fees less advance utilised 2,612,075 (13,245)
Repayment of long-term loan - (976,191)
------------------ ------------------
NET CASH INFLOW FROM FINANCING ACTIVITIES 3,534,741 (836,597)
------------------ ------------------
INCREASE/(DECREASE) IN CASH 3,262,843 (367,285)
CASH AND CASH EQUIVALENTS AT BEGINNING OF 3,886,788 4,254,073
REPORTING PERIOD
-------------------- --------------------
CASH AND CASH EQUIVALENTS AT THE END OF 7,149,631 3,886,788
REPORTING PERIOD
============ ============

24 THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31st AUGUST 2024

ACCOUNTING POLICIES

Company Information

King Alfred School Society is a limited company domiciled and incorporated in England and Wales. The registered office is 149 North End Road, London, NW11 7HY.

Accounting Convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Statement of Recommended Practice (SORP 2015) (Second Edition, effective 1 January 2019) “Accounting and Reporting by charities: Statement of Recommended Practice” and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.

The financial statements have been prepared on the historical cost convention, modified by the recognition of certain investments, investment properties, and financial assets and liabilities measured at fair value. The principal accounting policies adopted are set out below.

Going Concern

These financial statements are prepared on the going concern basis. The Council has a reasonable expectation that the charitable company will continue in operational existence for the foreseeable future. They are not aware of any material uncertainties which may cause doubt on the charitable company's ability to continue as a going concern.

Group Financial Statements

These financial statements consolidate the results of the Society and its wholly owned subsidiary King Alfred School Trading Company Ltd on a line-by-line basis. Transactions and balances between the Society and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two companies are disclosed in the notes of the Society's balance sheet. A separate statement of financial activities, or income and expenditure account for the Society itself is not presented because the Society has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006 and in accordance with the FRS 102 SORP.

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 granted by the School but include contributions from Restricted Funds for bursaries. Fees received for education to be provided in future years are carried forward as deferred income.

Donations

Donations receivable for the general purposes of the Society are credited to Unrestricted Funds. Donations restricted by the wishes of the donor are taken to Restricted Funds where these wishes are legally binding on the Council Members.

Expenditure

Expenditure is accounted for on an accruals basis and recognised when there is a constructive or legal obligation to pay for expenditure. Certain expenditure is apportioned to cost categories based on the estimated amount attributable to that activity in the year. These estimates are based on staff time or on floor area as appropriate.

Fixed Assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Items costing less than £2,000 are written off as an expense as acquired unless part of a larger project.

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

25

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

Depreciation is provided on the original cost of all tangible fixed assets, except freehold land, at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life as:

Freehold buildings 2% on cost or valuation Furniture and Equipment 20% on cost Motor vehicles 25% on cost

Assets under the course of construction are not depreciated until completed. No depreciation is charged on freehold land.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in expenditure.

26

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

Basic financial liabilities

Basic financial liabilities, including trade and other creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Taxes

Under Section 505 of the Income and Corporation Taxes Act 1988 the Company is exempt from certain taxes. Full account is taken of tax credits attaching to covenants and dividends.

Fund Accounting

Unrestricted funds are available for use at the discretion of Council in furtherance of the general objectives of the Society.

Designated funds are unrestricted funds earmarked by Council for particular purposes.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.

Operating Leases

Rentals payable under operating leases are charged on a straight-line basis over the lease term.

Pensions

The School contributes to the Teachers' Pension Scheme operated by the Teachers' Pension Agency and the Independent Schools Pension Scheme for non-teaching staff, a defined benefit scheme administered by the Pensions Trust. Under the provisions of FRS 102 as applied to multi-employer defined benefits schemes, both schemes are treated as defined contribution schemes and costs are charged as incurred.

Judgements and key sources of estimation uncertainty

In the application of the charitable company’s accounting policies, Council are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

27

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

The charitable company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 6 for the net carrying amount of the debtors and associated impairment provision.

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 4 for the carrying amount of the property, plant and equipment and refer to the accounting policies for the useful economic lives for each class of asset.

The charitable company makes an estimate of the likely timing of repayment of deposits to establish which are due for repayment within one year. The timing of deposits being repaid is not certain as only a proportion of pupils continue from year 11 to sixth form each year.

28 THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590

KING ALFRED SCHOOL SOCIETY

(A company having no share capital and limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

1 INCOME

1.1 FEE INCOME

The Group’s activities are carried out within the UK.

Income comprised:

Income comprised:
For the period ended For the year ended
31 August 31 July
2024 2023
£ £
School fees
Gross fees 15,708,663 14,195,912
Less: Total bursaries, grants and allowances (1,070,277) (983,615)
----------------- -----------------
14,638,386 13,212,297
----------------- -----------------
Other educational income
School trips and camps 458,518 410,203
Textbooks and other extras 11,038 19,762
Fee deposits forfeited 36,460 93,343
Other educational income 242,139 220,975
Parent staff 20,712 -
----------------- -----------------
768,867 744,283
========= =========
Other
Other ancillary income 445,324 379,767
----------------- -----------------
15,852,577 14,336,347
========= =========

1.2 INVESTMENT INCOME

.2
INVESTMENT INCOME
For the period ended For the year ended
31 August 2024 31 July 2023
£ £
Interest receivable 287,462 153,182
Rent and lettings 70,623 75,073
----------------- -----------------
358,085 228,255
----------------- -----------------

29

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590

KING ALFRED SCHOOL SOCIETY

(A company having no share capital and limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

1.3 GRANTS AND DONATIONS

Unrestricted Designated Restricted Total
funds funds funds funds
For period For period For period For period
ended 31 ended 31 ended 31 ended 31
August August August August
2024 2024 2024 2024
£ £ £ £
Donations and gifts - 114,156 132,683 246,839
----------------- ----------------- ----------------- -----------------
- 114,156 132,683 246,839
========= ========= ========= =========
Unrestricted Designated Restricted Total
funds funds funds funds
For year For year For year For year
ended 31 ended 31 ended 31 ended 31
July 2023 July 2023 July 2023 July 2023
£ £ £ £
Donations and gifts 269 161,524 78,667 240,460
----------------- ----------------- ----------------- -----------------
269 161,524 78,667 240,460
========= ========= ========= =========

30

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590

KING ALFRED SCHOOL SOCIETY

(A company having no share capital and limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

2 EXPENDITURE

Period ended 31st August 2024 Staff costs Other Depreciation Total
£ £ £ £
Charitable activities
Teaching 8,356,214 1,083,555 305,633 9,745,402
Catering 217,036 346,527 - 563,563
Premises 264,651 1,783,711 358,110 2,406,472
Support costs of schooling 2,676,992 956,716 7,481 3,641,189
11,514,893 4,170,509 671,224 16,356,626
KASS Expenses - 16,984 - 16,984
Pension provision movement (note 15) (33,970) - - (33,970)
----------------- ----------------- ----------------- -----------------
Total Education 11,480,923 4,187,493 671,224 16,339,640
Raising funds
Letting expenses - 15,682 - 15,682
Trading expenses - 42,541 - 42,541
----------------- ----------------- ----------------- -----------------
Total Raising Funds - 58,223 - 58,223
----------------- ----------------- ----------------- -----------------
Total Expenditure 11,480,923 4,245,716 671,224 16,397,863
========= ========= ========= =========
Governance costs of £39,923 (2023: £32,177) include auditors remuneration of £24,805 (2023: £30,920) and are included
within support costs of schooling.
Year ended 31st July 2023 Staff costs Other Depreciation Total
£ £ £ £
Charitable activities
Teaching 7,398,201 995,939 305,634 8,699,774
Catering 210,777 292,334 - 503,111
Premises 302,898 1,133,570 257,465 1,693,933
Support costs of schooling 2,180,547 885,686 5,015 3,071,248
10,092,423 3,307,529 568,114 13,968,066
KASS Expenses - 13,540 - 13,540
Pension provision movement (note 15) (143,312) - - (143,312)
---------------- ----------------- --------------- -----------------
Total Education 9,949,111 3,321,069 568,114 13,838,294
Raising funds
Letting expenses 3,181 17,491 - 20,672
Trading expenses 12,384 25,790 - 38,174
---------------- ----------------- --------------- -----------------
Total Raising Funds 15,565 43,281 - 58,846
---------------- ----------------- --------------- -----------------
Total Expenditure 9,964,676 3,364,350 568,114 13,897,140
========= ========= ======== =========

31

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590

KING ALFRED SCHOOL SOCIETY

(A company having no share capital and limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

3 STAFF COSTS

For the period ended For the year ended
31 August 2024 31 July 2023
£ £
Wages and salaries 8,613,255 7,714,354
Social security contributions 968,663 840,696
Pensions 1,932,975 1,537,373
Pension provision movement (33,970) (143,312)
----------------- -----------------
11,480,923 9,949,111
----------------- -----------------
The school has paid termination payments during the year of £56,223 (2023: £20,922)
(a) The average number of employees of the group during the year was:
For the period ended For the year ended
31 August 2024 31 July 2023
£ £
Teaching staff 161 113
Non-teaching staff 74 81
----------------- -----------------
235 194
----------------- -----------------
(b) The remuneration of the highest paid employees fell within the following bands:
For the period ended For the year ended
31 August 2024 31 July 2023
No. No.
£60,001-£70,000 13 17
£70,001-£80,000 15 9
£80,001-£90,000 8 1
£90,001-£100,000 1
£110,001-£120,000 1 2
£160,001-£170,000 1 1
----------------- -----------------
39 30
----------------- -----------------

(c) Council Remuneration

No members of Council were paid any remuneration or reimbursed expenses during the current or preceding year.

Trustees Indemnity Insurance is held by the School on behalf of the Council members.

(d) Key Management Personnel

Key management personnel comprises the Head, Deputy Head of Upper School, Head of Lower School and the Director of Finance and Operations. The total remuneration for these individuals was £702,544 (2023: £607,764).

32

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590

KING ALFRED SCHOOL SOCIETY

(A company having no share capital and limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

4 TANGIBLE FIXED ASSETS – GROUP AND COMPANY

Freehold School Assets under Furniture & Motor
Land Buildings construction Equipment Vehicles Total
£ £ £ £ £ £
Cost
1 August 25,000,000 15,281,711 47,176 2,548,872 95,419 42,973,178
2023
Additions - - 799,950 108 - 800,058
------------------ --------------- ------------------ ----------------- ------------------ ------------------
31 August 25,000,000 15,281,711 847,126 2,548,980 95,419 43,773,236
2024
------------------ --------------- ------------------ ----------------- ------------------ ------------------
Depreciation
1 August - 5,313,346 - 1,423,640 60,315 6,797,301
2023
Charge for - 332,126 - 329,591 9,507 671,224
the year
----------------- --------------- ------------------ ----------------- ------------------ ------------------
31 August - 5,645,472 - 1,753,231 69,822 7,468,525
2024
----------------- --------------- ------------------ ------------------ ------------------ -----------------
-
Net Book Value
31 August 25,000,000 9,636,239 847,126 795,749 25,597 36,304,711
2024
============= ============= ============= ============= ============= =============
31 July 2023 25,000,000 9,968,365 47,176 1,125,232 35,104 36,175,877
============= ============= ============= ============= ============= =============

  1. The opening cost of assets under the course of construction are transferred to the relevant asset heading on completion.

  2. On adoption of FRS 102 and the new SORP the freehold land was revalued to deemed cost at the transition date (1 August 2014) by the Council on the advice of a Governor who is also a partner in a real estate investment management firm

  3. The carrying amount of freehold land that would have been recognised under the historic cost model is £2,200,900. 4. There were no assets disposed of in the year.

  4. The bank overdraft facility is secured over the freehold property and is the amount currently drawn down on a standing facility of £1million repayable on demand. The facility was not utilized in the year. The balance of the five-year term loan of £1million, drawn down in March 2021, was repaid on 22 May 2023.

33

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590

KING ALFRED SCHOOL SOCIETY

(A company having no share capital and limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

5 INVESTMENT IN SUBSIDIARY

The Company holds two shares of £1 each, the whole of the issued ordinary share capital of King Alfred School Trading Company Limited (No.7863431). The subsidiary was incorporated on 28th November 2011 and registered in England.

The subsidiary operates a coffee bar and manages the lettings of school facilities. All activities have been consolidated on a line-byline basis in the statement of financial activities. Available profits are gift aided to the Society.

A summary of the results of the subsidiary is shown below:

Period ended Year ended 31
31 August July
2024 2023
£ £
Turnover 109,253 109,134
Cost of sales (54,883) (56,058)
Gross profit 54,371 53,076
Administrative expenses (7,462) (7,920)
Operating profit 46,909 45,156
Profit before taxation 46,909 45,156
Taxation (1,633) (2,584)
Profit for the financial period 45,276 42,572
Total comprehensive income for the period 45,276 42,572

The aggregate of the assets, liabilities and funds was:

As at As at
31 August 2024 31 July 2023
£ £
Assets 152,283 123,318
Liabilities (109,589) (80,744)
----------------- -----------------
42,694 42,574
----------------- -----------------

34

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590

KING ALFRED SCHOOL SOCIETY

(A company having no share capital and limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

As at 31 August 2024 As at 31 July 2023
Funds £ £
Representing share capital (2 ordinary shares of £1 each) 2 2
Profit and loss account 42,692 42,572
----------------- -----------------
42,694 42,574
----------------- -----------------

6 DEBTORS

The Group
31 August
2024
31 July
2023
£
£
Fees and extras
423,565
309,298
Other debtors
20,786
28,977
Prepayments and accrued income
364,535
311,509
Amount due from group undertaking
-
-
808,886
649,784

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
The Group
31 August
2024
31 July
2023
£
£
Advance fees
784,690
405,007
Trade creditors
151,852
110,189
Taxation and social security costs
200,808
211,023
Other creditors
174,741
190,922
Accruals
447,237
527,077
Fee deposits
898,896
351,781
2,658,224
1,795,999		 The Company
31 August
2024
31 July
2023
£
£
406,122
302,843
20,786
28,977
364,535
310,633
109,418
77,237
900,861
719,690
The Company
31 August
2024
31 July
2023
£
£
784,690
405,007
151,852
110,189
200,808
211,023
173,670
190,922
442,837
523,570
898,896
351,781
2,652,753
1,792,492		 The Company
31 August
2024
31 July
2023
£
£
406,122
302,843
20,786
28,977
364,535
310,633
109,418
77,237
900,861
719,690
The Company
31 August
2024
31 July
2023
£
£
784,690
405,007
151,852
110,189
200,808
211,023
173,670
190,922
442,837
523,570
898,896
351,781
2,652,753
1,792,492
1,792,492

7 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

35

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590

KING ALFRED SCHOOL SOCIETY

(A company having no share capital and limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

Deferred income (including advance fees):

Deferred income (including advance
fees):
Deferred income brought forward
Received in year
Released in year
Deferred income carried forward		 The Group
31 August 2024
31 July
2023
£
£
405,007
314,069
3,313,819
368,977
(448,174)
(278,039)
3,270,652
405,007		 The Company
31 August
2024
31 July
2023
£
£
405,007
314,069
3,313,819
368,977
(448,174)
(278,039)
3,270,652
405,007
405,007

8 CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR

Advance fees
Fee deposits
8.1 Advance Fees
Due within one year
Due within one and two years
Due within two to five years
Due after five years		 The Group
31 August
2024
31 July
2023
£
£
2,485,962
253,570
4,581,399
4,205,848
7,067,361
4,459,418
The Group
31 August
2024
31 July
2023
£
£
784,690
405,007
603,310
137,581
1,821,508
115,989
61,144
-
3,270,652
658,577		 The Company
31 August
2024
31 July
2023
£
£
2,485,962
253,570
4,581,399
4,205,848
7,067,361
4,459,418
The Company
31 August
2024
31 July
2023
£
£
784,690
405,007
603,310
137,581
1,821,508
115,989
61,144
-
3,270,652
658,577		 The Company
31 August
2024
31 July
2023
£
£
2,485,962
253,570
4,581,399
4,205,848
7,067,361
4,459,418
The Company
31 August
2024
31 July
2023
£
£
784,690
405,007
603,310
137,581
1,821,508
115,989
61,144
-
3,270,652
658,577
658,577

36

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590

KING ALFRED SCHOOL SOCIETY

(A company having no share capital and limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

8.2 Fee Deposits

8.2 Fee Deposits
Due within one year
Due within one and two years
Due within two to five years
Due after five years		 The Group
31 August
2024
31 July
2023
£
£
898,896
351,781
326,908
482,137
1,135,706
1,024,969
3,118,785
2,698,742
5,480,295
4,557,629		 The Company
31 August
2024
31 July
2023
£
£
898,896
351,781
326,908
482,137
1,135,706
1,024,969
3,118,785
2,698,742
5,480,295
4,557,629
4,557,629

9. PROVISIONS FOR LIABILITIES AND CHARGES

Pension Provision

Pension Provision
Brought forward
Incurred/(utilised) in the year
Carried forward		 The Group
31 August
2024
31 July
2023
£
£
735,154
878,466
(33,969)
(143,312)
701,185
735,154		 The Company
31 August
2024
31 July
2023
£
£
735,154
878,466
(33,969)
(143,312)
701,185
735,154
735,154

The pension provision reflects the movement in the Pension Trust Pension provision disclosed in note 15.

37

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590

KING ALFRED SCHOOL SOCIETY

(A company having no share capital and limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

10. NOTES TO THE CASHFLOW STATEMENT

Reconciliation of operating result to net cash inflow from operating activities

31 August 31 July
2024 2023
£ £
Net movement in funds 114,580 952,428
Depreciation 671,224 568,114
Profit on sale of fixed assets - (500)
Bank interest received (287,462) (153,182)
Interest payable - 58,232
(Increase)/Decrease in (159,102) (104,833)
debtors
(Decrease)/Increase in (98,542) (212,653)
creditors and provisions
240,698 1,107,606
Analysis of Changes in Net
Debt
At 1 August Cash Flows At 31
2023 August
2024
£ £ £
Cash at bank and in hand 3,886,788 3,262,843 7,149,631

38

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590

KING ALFRED SCHOOL SOCIETY

(A company having no share capital and limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

11. RECONCILIATION OF FUNDS

Period ending 31st August 2024 – The Group

UNRESTRICTED GENERAL FUNDS
General reserve
Revaluation reserve
UNRESTRICTED DESIGNATED FUNDS
Parent Staff
Lower School Camp Fund
KASS Subscriptions
Treehouse Fund
Voluntary Contributions Fund - Phoenix Theatre
Priorities Development Fund
RESTRICTED FUNDS
Bursary Fund
CNC Machine Fund
Upper School Building Fund
Sophie Coleman Music Fund
Phoenix Theatre Fund
Development Fund
KAS 125
TOTAL FUNDS		 Balance
1 August
2023
Income
Expenditure
Transfers
Balance
31 August
2024
£
£
£
£
£
10,154,977
16,228,580
(16,357,950)
326,553
10,352,160
22,799,100
-
-
-
22,799,100
32,954,077
16,228,580
(16,357,950)
326,553
33,151,260
4,902
20,712
-
-
25,614
3,787
-
-
-
3,787
21,464
16,312
(16,983)
-
20,793
70,743
-
-
(2,369)
68,374
144,106
114,156
(1)
(258,261)
-
296,447
-
(10,987)
-
285,460
541,449
151,180
(27,971)
(260,630)
404,028
78,932
-
(8,403)
-
70,529
1,979
-
(1,979)
-
-
3,111
-
-
-
3,111
3,239
-
-
-
3,239
65,923
-
-
(65,923)
-
11,620
-
-
-
11,620
61,548
132,683
(1,560)
-
192,671
226,352
132,683
(11,942)
(65,923)
281,170
33,721,878
16,512,443
(16,397,863)
-
33,836,458

Designated funds for the year 31 August 2024

39

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590

KING ALFRED SCHOOL SOCIETY

(A company having no share capital and limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

11. RECONCILIATION OF FUNDS – CONTINUED Period ending 31st August 2024 – Company

UNRESTRICTED GENERAL FUNDS
General reserve
Revaluation reserve
UNRESTRICTED DESIGNATED FUNDS
Parent Staff
Lower School Camp Fund
KASS Subscriptions
Treehouse Fund
Voluntary Contributions Fund - Phoenix Theatre
Priorities Development Fund
RESTRICTED FUNDS
Bursary Fund
CNC Machine Fund
Upper School Building Fund
Sophie Coleman Music Fund
Phoenix Theatre Fund
Development Fund
KAS 125
TOTAL FUNDS		 Balance
1 August
2023
Income
Expenditure
Transfers
Balance
31 August
2024
£
£
£
£
£
10,112,405
16,119,327
(16,248,817)
326,553
10,309,468
22,799,100
-
-
-
22,799,100
32,911,505
16,119,327
(16,248,817)
326,553
33,108,568
4,902
20,712
-
-
25,614
3,787
-
-
-
3,787
21,464
16,312
(16,983)
-
20,793
70,743
-
-
(2,369)
68,374
144,106
114,156
(1)
(258,261)
-
296,447
-
(10,987)
-
285,460
541,449
151,180
(27,971)
(260,630)
404,028
78,932
-
(8,403)
-
70,529
1,979
-
(1,979)
-
-
3,111
-
-
-
3,111
3,239
-
-
-
3,239
65,923
-
-
(65,923)
-
11,620
-
-
-
11,620
61,548
132,683
(1,560)
-
192,671
226,352
132,683
(11,942)
(65,923)
281,170
33,679,306
16,403,190
(16,288,730)
-
33,793,766

Restricted funds for the year 31 August 2024

40

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590

KING ALFRED SCHOOL SOCIETY

(A company having no share capital and limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

  1. RECONCILIATION OF FUNDS – CONTINUED Year ended 31 July 2023 – The Group
UNRESTRICTED GENERAL FUNDS
General reserve
Revaluation reserve
UNRESTRICTED DESIGNATED FUNDS
Parent Staff
History & Archives Fund
Lower School Camp Fund
KASS Subscriptions
Treehouse Fund
Voluntary Contributions Fund - Main Hall
Voluntary Contributions Fund - Phoenix Theatre
Priorities Development Fund
RESTRICTED FUNDS
Bursary Fund
CNC Machine Fund
Upper School Building Fund
Sophie Coleman Music Fund
Phoenix Theatre Fund
Development Fund
KAS 125
TOTAL FUNDS		 Balance
1 August
2022
Income
Expenditure
Transfers
Balance
31 July 2023
£
£
£
£
£
9,177,927
14,599,432
(13,622,382)
-
10,154,977
22,799,100
-
-
-
22,799,100
31,977m027
14,599,432
(13,622,382)
-
32,954,077
14,573
54,465
(64,359)
-
4,679
401
-
(401)
-
-
3,787
-
-
-
3,787
25,059
9,945
(13,540)
-
21,464
2,645
70,000
(1,902)
-
70,743
142,780
-
(142,780)
-
-
107,047
37,059
-
-
144,106
296,670
-
-
-
296,670
592,962
171,469
(222,982)
-
541,449
98,414
-
(19,482)
-
78,932
-
6,000
(4,021)
-
1,979
8,319
-
(5,208)
-
3,111
4,545
-
(1,306)
-
3,239
69,199
18,483
(21,759)
-
65,923
11,620
-
-
-
11,620
7,364
54,184
-
-
61,548
199,461
78,667
(51,776)
-
226,352
32,769,450
14,849,568
(13,897,141)
-
33,721,878

Designated funds for the year 31 August 2023

41

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590

KING ALFRED SCHOOL SOCIETY

(A company having no share capital and limited by guarantee)

for developing properties which have been delayed through the pandemic.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

11. RECONCILIATION OF FUNDS – CONTINUED Year ended 31st July 2023 – Company

UNRESTRICTED GENERAL FUNDS
General reserve
Revaluation reserve
UNRESTRICTED DESIGNATED FUNDS
Parent Staff
History & Archives Fund
Lower School Camp Fund
KASS Subscriptions
Treehouse Fund
Voluntary Contributions Fund - Main Hall
Voluntary Contributions Fund - Phoenix Theatre
Priorities Development Fund
RESTRICTED FUNDS
Bursary Fund
CNC Machine Fund
Upper School Building Fund
Sophie Coleman Music Fund
Phoenix Theatre Fund
Development Fund
KAS 125
TOTAL FUNDS		 Balance
1 August
2022
Income
Expenditure
Transfers
Balance
31 July 2023
£
£
£
£
£
9,116,633
14,551,592
(13,555,820)
-
10,112,405
22,799,100
-
-
-
22,799,100
31,915,733
14,551,592
(13,555,820)
-
32,911,505
14,573
54,465
(64,359)
-
4,679
401
-
(401)
-
-
3,787
-
-
-
3,787
25,059
9,945
(13,540)
-
21,464
2,645
70,000
(1,902)
-
70,743
142,780
-
(142,780)
-
-
107,047
37,059
-
-
144,106
296,670
-
-
-
296,670
592,962
171,469
(222,982)
-
541,449
98,414
-
(19,482)
-
78,932
-
6,000
(4,021)
-
1,979
8,319
-
(5,208)
-
3,111
4,545
-
(1,306)
-
3,239
69,199
18,483
(21,759)
-
65,923
11,620
-
-
-
11,620
7,364
54,184
-
-
61,548
199,461
78,667
(51,776)
-
226,352
33,708,156
14,801,728
(13,830,578)
-
33,679,306

Restricted funds for the year 31 August 2023

42

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590

KING ALFRED SCHOOL SOCIETY

(A company having no share capital and limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

11. ANALYSIS OF NET ASSETS BETWEEN FUNDS

As at 31st July 2024

As at 31st July 2024 2024
Unrestricted Funds Designated Funds Restricted Funds Total Funds
£ £ £ £
Group Company Group Company Group Company Group Company
Tangible fixed 36,304,711
36,304,713		 -
-		 - - 36,304,711 36,304,713
assets
Current assets 7,273,319 7,121,036 404,028 404,028 281,170 281,170 7,958,517 7,806,234
Current liabilities
2,658,224		 2,548,635 -
-		 - - 2,658,224 2,548,635
Long term 7,067,361 7,067,361 -
-		 - - 7,067,361 7,067,361
liabilities
Provisions 701,185 701,185 -
-		 - - 701,185 701,185
Total Net Assets 33,151,260
33,108,568		 404,028 404,028 281,170 281,170 33,836,458 33,793,766
As at 31st July 2023
Unrestricted Funds Designated Funds Restricted Funds Total Funds
£ £ £ £
Group Company Group Company Group Company Group Company
Tangible fixed -
-		 - 36,175,877
assets 36,175,877
36,175,879		 - 36,175,879
Current assets 4,536,572
3,768,771
3,722,690		 541,449
541,449		 226,352 226,352 4,490,491
Current liabilities
-
-		 -
-		 - - 1,795,999 -
1,795,999
1,792,492		 - 1,792,492
Long term -
-		 -
-		 - - 4,459,418 -
liabilities 4,459,418
4,459,418		 - 4,459,418
Provisions -
-		 -
-		 - - 735,154 -
735,154
735,154		 - 735,154
Total Net Assets
32,954,077
32,911,505		 541,449
541,449		 226,352 226,352 33,721,878 33,679,306

12. RELATED PARTY TRANSACTIONS

During the year income of £100,095 (2023: £109,134) was received by the trading subsidiary, King Alfred School Trading Limited. Costs of £63,978(2023: £66,562) were incurred on behalf of the subsidiary. A donation of £45,156 (2023: £61,294) was received from the subsidiary. The balance owed to the School from the subsidiary at the year end was £109,418 (2023: £77,237). Total donations made by Council members to the Society during the year amounted to £Nil (2023: £Nil).

14. CAPITAL COMMITMENTS

Total capital commitments for the period ended 31 August 2024 are £989,177 (2023: £86,860) relating to the Phoenix Theatre.

43

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590

KING ALFRED SCHOOL SOCIETY

(A company having no share capital and limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

15. PENSION SCHEMES

Teachers' Pension Scheme

The company 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 £1,532,501 (2023: £1,176,759) and at the year-end £173,347 (2023: £145,420) 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.

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, have valued the 'greater value' benefits for groups of relevant members.

The valuation confirmed that the employer contribution rate for the TPS would increase from 23.6% to 28.6% from 1 April 2024. Employers are also required to pay a scheme administration levy of 0.08%, giving a total employer contribution rate of 28.68%.

TPT Retirement Solutions - Independent Schools' Pension Scheme

The company participates in the scheme, a multi-employer scheme which provides benefits to some 61 non-associated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore, it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore, the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out with an effective date of 30 September 2023. This actuarial valuation was published in December 2024 and showed assets of £99.2m, liabilities of £151.5m and a deficit of £52.3m. To eliminate this funding shortfall, the trustees and the participating employers have agreed that additional contributions will be paid, in combination from all employers, to the scheme as follows:

From 1st September 2025 to 31 January 2034: £6,000,000 per annum payable monthly and increasing by 3% on each 1st September

44

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590

KING ALFRED SCHOOL SOCIETY

(A company having no share capital and limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

15. PENSION SCHEMES – CONTINUED

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2020. This valuation showed assets of £201.1m, liabilities of £256.3m and a deficit of £55.2m. To eliminate this funding shortfall, the Trustee had asked the participating employers to pay additional contributions to the scheme as follows:

From 1st September 2022 to 30 June 2032: £2,687,000 per annum payable monthly and increasing by 3% on each 1st September

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities. Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

Present value of provision
Present value of provision
Reconciliation of opening and closing provisions
Provision at start of period
Unwinding of the discount factor (interest expense)
Deficit contribution paid
Remeasurements - impact of any change in assumptions
Remeasurements - amendments to the contribution schedule
Provision at end of period
Income and expenditure impact
Interest expense
Remeasurements – impact of any change in assumptions
Remeasurements – amendments to the contribution schedule
Contributions paid in respect of future service*
Costs recognised in income and expenditure account		 31st August
2024
£'000's
701
Period Ended
31st August
2024
£'000's
735
39
(93)
20
-
701
Period Ended
31st August
2024
£'000's
39
20
-

 31st July
2023
£'000's
735
Period Ended
31st July 2023
£'000's
878
27
(91)
(79)
-
735
Period Ended
31st July 2023
£'000's
27
(79)
-

 31st July
2022
£'000's
878

45

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590

KING ALFRED SCHOOL SOCIETY

(A company having no share capital and limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

15. PENSION SCHEMES – CONTINUED

Assumptions

Assumptions
31st August
2024		 31st July 2023 31st July
2022
% per annum % per annum % per
annum
Rate of discount 4.68 5.70 3.24

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

The following schedule details the deficit contributions agreed between the School and the scheme at each year end period:

Year ending 31st August
2023		 31st July 2023 31st July 2022 31st July
2021
(£000s) (£000s) (£000s) (£000s)
Year 1 97 93 91 96
Year 2 99 96 93 99
Year 3 102 99 96 102
Year 4 105 102 99 105
Year 5 109 105 102 108
Year 6 112 108 105 111
Year 7 115 112 108 115
Year 8 99 115 112 118
Year 9 109 115 91
Year 10 - 109 -
Year 11 - - -

46

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590

KING ALFRED SCHOOL SOCIETY

(A company having no share capital and limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

15. PENSION SCHEMES – CONTINUED

Defined Contribution Schemes

The company participated in other defined contribution schemes for non-teaching staff. The schemes included The Pensions Trust, APTIS (Aviva), Octopus Wealth and Prudential.

Contributions payable by the company for the year:
The Pensions Trust
APTIS
Octopus Wealth		 2024
£
163,727
9,316
831
173,874		 2023
£
238,669
19,145
9,933
267,747

Additionally, contributions towards The Pensions Trust past service deficit amounted to £101,279 (2023: £91,835).

47

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24

COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590

KING ALFRED SCHOOL SOCIETY

(A company having no share capital and limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST AUGUST 2024, CONTINUED

16. PRIOR YEAR CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

INCOME FROM:
Charitable Activities
School fees
KASS membership
Trading activities
Trading income
Investments
Investment income
Rents and lettings
Donations and legacies
Grants and donations
Profit on sale of fixed assets
Total income
EXPENDITURE ON:
Charitable activities
Education
Raising funds
Letting expenses
Trading expenses
Total expenditure
Net income/(expenditure)
Transfer between funds
Net movement in funds
Fund balances brought forward at 1 August 2022
Fund balances carried forward at 31 July 2023		 Unrestricted
Designated
Restricted
funds
funds
funds
Total
2023
2023
2023
2023
£
£
£
£
14,336,347
-
-
14,336,347
- 9,945
-
9,945
34,061
-
-
34,061
153,182
-
-
153,182
75,073
-
-
75,073
269 161,524
78,667
240,460
500 -
-
500
14,599,432
171,469
78,667
14,849,568
13,563,536
222,982
51,776
13,838,294
20,672
-
-
20,672
38,174
-
-
38,174
13,622,382
222,982
51,776
13,897,140
977,050
(51,513)
26,891
952,428
- -
-
-
977,050
(51,513)
26,891
952,428
31,977,027
592,962
199,461
32,769,450
32,954,077
541,449
226,352
33,721,878

48

THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2023/24