OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-08-31-accounts

ORLEY FARM SCHOOL TRUST

(A Registered Charity and a Company Limited by Guarantee)

Registered Company No: 628541

Registered Charity No: 312637

ANNUAL REPORT OF THE GOVERNORS AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 AUGUST 2023

ORLEY FARM SCHOOL TRUST

CONTENTS

Page
Charity Information 2 - 3
Annual Report of the Governors 4 - 14
Independent Auditor’s Report 15 - 17
Statement of Financial Activities 18
Balance Sheet 19
Cash Flow Statement 20
Accounting Policies 21 - 23
Notes to the Financial Statements 24 - 30

ORLEY FARM SCHOOL TRUST

CHARITY INFORMATION

Governors

The Governors are members of the Governing Body, are the Charity Trustees and are the Directors of the Company for Companies Act purposes. The Governors who have served during the year and since the year end are indicated below. Alongside each Governor are details of the subcommittees on which they serve.


serve.
Dr M Short Chair, (FBC),(EC), (F),(Est), (R), (S)
Mr C J Hayfield (FB),(F),(Est), (R)
Mr M Andrews (FB),(F),(EstC), (S)
Mrs C Cliffe (FB),(E)
Mrs S Kothari (FB),(FC),(Est), (R), (S)
Ms S Labrum Resigned 31stAugust 2023 (FB),(E)
Mr A Land (FB),(E)
Mrs T Lashkari (FB),(F),(Est)
Mrs L Malde (FB),(F),(Est)
Mr R Raithatha Resigned 31stAugust 2023 (FB)
Mr A Smith Resigned 31stAugust 2023 (FB)
Mr ASofat (FB),(F),(Est)

(FBC) Chair of Full Board

(FB) Member of Full Board

(EC) Chair of Education Committee

(FC) Chair of Finance Committee

(EstC) Chair of Estates Committee

(Est) Member of Estates Committee

2

ORLEY FARM SCHOOL TRUST

CHARITY INFORMATION

Officers

Headmaster Mr T G Calvey Secretary Mrs T K Vaid Director of Finance Mrs T K Vaid Director of Operations and Clerk Mr J Shakespeare Principal Address South Hill Avenue and Registered Office Harrow-on-the-Hill Middlesex HA1 3NU Advisors Bankers NatWest 1-9 St Ann’s Road Harrow Middlesex HA1 1EB Solicitors Harrison Clark Rickerbys Limited Ellenborough House Wellington Street Cheltenham GL50 1YD Auditor Crowe UK LLP Statutory Auditors Aquis House 49-51 Blagrave Street Reading RG1 1PL Insurance Brokers Marsh Education Practice Capital House 1-5 Perrymount Road Haywards Heath West Sussex RH16 3SY

3

ORLEY FARM SCHOOL TRUST

ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2023

The Governors present their Annual Report, including their strategic report, for the year ended 31 August 2023 together with the audited Financial Statements for the year, and confirm that these comply with the requirements of the Companies Act 2006, the Governing Instruments of the Charity and the Statement of Recommended Practice, Accounting and Reporting by Charities (“FRS 102 SORP”).

Reference and Administrative Information

Orley Farm School Trust (the Trust) is a company limited by guarantee registered as company number 628541. The Trust is also registered with the Charity Commission under charity number 312637. The Governors, executive officers and principal address of the Charity are listed, along with particulars of its professional advisors, on pages 2 and 3.

Structure, Governance and Management

Governing Instruments

The Charity is governed by its Memorandum and Articles of Association, which date from 1959 and were substantially revised in 2004. In June 2007 the Charity Commission permitted an extension to the objects. In the furtherance of these objects the Directors, as the Trustees of the Charity, have complied with the duty in s.17(5) of the Charities Act 2011 to have due regard to the Charity Commission’s published general and relevant sub-sector guidance concerning the interpretation of the Public Benefit requirement under that Act.

Governing Body

The Board, detailed on page 2, is a self-appointing body with one exception being the Headmaster of Harrow School who is a member by virtue of this position. Service on the Board is for a term of three years which may be renewed no more than twice on retirement. The Chair is elected to serve for five years which may be renewed once only. The new Chair as elected by the board commenced their tenure from 1[st] September 2022.

Trustee Recruitment and Training

The Charity’s elected Governors are appointed at Board meetings on the basis of nominations received from members of the Board and others, based on specifications concerning sympathy with the Charity’s objects, eligibility, personal competencies, specialist skills and local availability. New Governors receive induction in respect of Board Policies and Procedures, in addition to familiarisation with current Strategic and Financial Planning. Following their appointment Governors are made aware of specialist training opportunities by the Clerk as appropriate and they are encouraged to attend relevant training courses especially those organised by AGBIS and ISBA for which the School are members. Governors receive ongoing training, such as safeguarding and many undertake their own continuous professional development in their specialist areas.

Organisational Management

Orley Farm School Trust Governors, as the Trustees of the Charity, are legally responsible for the overall governance and control of the School. To discharge this duty they meet as a full Board at least three times each year. The work of implementing most of their policies is carried out by three committees which have agreed, and annually revised, Terms of Reference to assist their functionality. These committees are as follows: Education Committee, Estates Committee and Finance Committee. Further subcommittees may be constituted as required.

The operational management of the School is delegated to the Headmaster, who together with the Director of Finance and Director of Operations is supported by a Senior Leadership Team and a Senior Management Team. The Headmaster attends meetings of all of the above committees. The Director of Finance attends the Finance Committee, Remuneration Committee and the Board Meetings. The Director of Operations attends the Estates Committee, Health & Safety Committee and the Board Meetings. The Deputy Heads attend Education Committee and Board Meetings.

4

ORLEY FARM SCHOOL TRUST

ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2023

Organisational Management (continued)

The School, through its officers, is represented in a number of organisations including the Association of Governing Bodies of Independent Schools, the Independent Association of Preparatory Schools (IAPS), AGBIS and the Independent Schools Bursars’ Association (ISBA).

Group Structure and Relationships

The Charity has two wholly-owned non-charitable subsidiary companies, whose activities are explained below.

South Hill Estates, Harrow Limited (Registered in England as Company Number 109974)

South Hill Estates Harrow Ltd was incorporated in 1910 and is limited by shares. The Trust is the beneficial owner of the whole of the share capital of the Company which owns roads on the South Hill Estate, and the benefit of certain covenants relating to privately-owned residential and other properties on this Estate. The Directors include two members of the Trust’s Full Board committee, the Director of Operations and two residents of South Hill Estates. The Company’s assets and transactions in the year are not considered material, therefore the Governors consider it is not appropriate to prepare consolidated accounts of the Trust and its subsidiary. Copies of the subsidiary’s accounts are made available to the Governors of the Trust.

Orley Farm School Enterprises Limited (Registered in England as Company Number 5345071)

The Company was made dormant on 1[st] September 2007 and will remain dormant until such a time as the level of trading activity within the Trust necessitates its management by a subsidiary company or when the Trustees elect that this be so.

Risk Management

The Board of Governors is responsible for identifying the key risks faced by the School and for ensuring these risks are managed. Each year the Senior Leadership Team and the Finance and Estates Committees identify and assess risks and implement controls to mitigate against these. In addition, each year a formal review of the risk management process is undertaken. The major risks have been identified as that of the continuing impact of the current international and national crisis on securing energy for UK consumers along with the soaring inflation on day to day business expenditure, the, the continuing impact of Brexit on pricing and availability of goods and services required to maintain the School’s provision, monitoring the financial impact of any future increase to employer contributions from the participation in the Teachers’ Pension Scheme, a decline in the demand for places resulting from a general economic downturn, which has been exacerbated by increased inflationary pressures and rising interest rates on household incomes, the risk that senior schools will increasingly take boys at age 11 rather than 13 years old, and that the costs of the School’s development plan escalate out of control.

The key controls implemented by the School are as follows:

Through the established systems for managing risk, the Governors are satisfied that for the major risks identified steps have been taken to manage these risks. It is, of course, recognised by the Governors that systems can provide reasonable but not absolute assurance that major risks have been adequately managed.

5

ORLEY FARM SCHOOL TRUST

ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2023

Objects, Aims, Objectives and Activities

Charitable Objects

To advance the education of boys and girls by the provision of a school known as Orley Farm School Trust in Harrow-on-the-Hill, and any other boarding school or day school for the education of boys and girls and by ancillary or incidental educational activities and other associated activities for the benefit of the community.

Aims and Intended Impact

Within these objects, the School aims to be a leading co-educational preparatory school for children aged between 4 and 13 years old, by building on the strategies as stated in the ‘Whole School Aims’ which are summarised below, the full text being published in the School’s prospectus and other media.

Whole School Aims

The School aims to provide a challenging environment to stimulate, maintain and develop a lively and enquiring mind: to encourage all pupils to reach their true potential and eventually become independent learners who value learning with and from others, as a life-long process.

We aim to appoint, develop and retain a staff of the highest quality and to develop a school community of responsible citizens, which affords equal value to all of its members, is seen to be just and encourages mutual respect, truthfulness and concern for others.

While carrying out our charitable purpose – the provision of education – we aim to deliver substantial benefit to all stakeholders, including our local communities, through the provision of an excellent and broad education and through access to our services, facilities and expertise.

Impact and Responsiveness

In accordance with our Governing Instruments, we continue to provide education for children aged 4 to 13 years – such provision relieving the state of relevant costs. In addition, the School continues to provide bursary support for current and new pupils. The School continues to build on the links with a wide section of the local community.

Key Elements of the School’s Strategy

The School faces new and evolving educational, legislative, economic, environmental, demographic and social challenges. To respond to them positively and to enable Orley Farm School to head towards its 200[th] anniversary with confidence there must be equally careful planning. These Strategic Priorities and the School Development Plan are designed to set the destination and the broad outline of the journey. The Board of Governors and Senior Leadership Team intend that Orley Farm School:

6

ORLEY FARM SCHOOL TRUST

ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2023

Key Elements of the School’s Strategy (continued)

The Board of Governors continues to oversee the pursuit of the School’s strategic priorities and the maintenance of its agreed profile. These are reviewed regularly through the work of the Board and its Committees. The Governors intend that the School will:

The Governors measure the success of this strategy through a comprehensive review of the annual strategic school development and management action plans, and through the termly reporting of key performance measures produced by senior management for the Board to discuss. Ad hoc subcommittees are established to focus cross-governance/management effort on areas of interest, opportunity and concern.

Strategic Report: Review of Objectives for the year, Achievements and Performance

Objective 1: Maintain the excellence of the educational provision throughout the School.

The excellence of the education at the School was rewarded by the granting of a total of 51 scholarships to senior schools, of which a total of 27 were taken up by our pupils. Highlights include 9 Academic Scholarships and 18 awards across a breath of Sport Scholarships, Drama, Music, and Design and Engineering awards including 2 Clay Prizes for Harrow School.

Objective 2: Carry on relations with the Grange School in Harrow and other Schools.

Partnerships with the Grange School and Alexander School in Harrow continue to evolve and develop. The School has supported both the Grange School and Alexander School in the following ways: making donation towards Christmas gifts for pupils at the Grange School; lending the School minibuses; running a termly lunch time sports club, inviting both Grange School and Alexander School pupils to watch our Christmas and Summer matinee productions and providing a music club at the Alexander School.

During the year the School hosted an exciting One World Day where pupils from Orley Farm School, the Grange School and Alexander School presented proposals for community projects that would make a difference in their world with a series of funding. The winning proposals included a radio station for the Grange School and a sensory garden and hedgehog homes for Alexander School.

Objective 3: Continue the review of our procedures and policies to ensure total regulatory compliance.

School Policies continue to be reviewed to ensure regulatory compliance with the frequently changing regulations. These policies are reviewed by staff and presented at the relevant committee meetings for Governors to review and approved.

Objective 4: Continue to develop the Orlumni.

With the support of a former parent, the objective of the Orlumni is to bring together former Orleyans and parents to enrich our current community through school hosted events. During the year the School successfully hosted multiple Orlumni events and released quarterly digital Orlumni magazines.

7

ORLEY FARM SCHOOL TRUST

ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2023

Objective 5: Ensure the provision of IT within the School continues to meet the academic and business needs of the school.

The IT network continues to be upgraded to ensure IT support throughout the School for both pupils and administrative staff is up to date and is moving in line with current trends. The School holds the Cyber Essentials Certification. The process to obtain this certification included a self -assessment questionnaire and an external vulnerability scan that verifies the School’s security status as well as an internal vulnerability scan of the School’s network, PCs and mobile devices.

The School has invested in virtual reality headsets and has successfully integrated the use of this throughout the school within ICT lessons. The School continues to review IT platforms to ensure they remain update to date and deliver an intuitive and easy user experience. The School continues to integrate the use of its remote learning platform of its educational provision more widely across the School.

Objective 6: Continue to manage the relationships with the School’s neighbours, tenants and the wider community to best effect.

The School continues to develop the working partnership with South Hill Estates (Harrow) Ltd and the residents of the estate via the South Hill Estates Board which includes two School trustees, two residents and the Director of Operations.

Objective 7: Continue to manage the School’s education provision, estate management, and responsibility to pupils, staff and the wider school community to best effect.

The School formalised the three pillars of the school forming the School Aims, this being ‘Academic Life’, ‘Pastoral Life’ and ‘Life Beyond’.

Academic Life - To provide a creative, balanced, stimulating and unique curriculum which encourages skills and pushes mastery of knowledge, allowing everyone to explore their learning in a safe environment that values progress and growth through both success and failure.

Pastoral Life - To provide opportunities to develop socially, emotionally, locally and globally and to be reflective, responsible and self-aware, embracing the school's values in order to lead healthy, happy and fulfilling lives.

Life Beyond - To create broad opportunities, both in and out of the classroom, that develop a range of individual and collaborative interests, including sport, music, drama and the arts that will fuel enthusiasm for learning and offer life choices well beyond our time at Orley Farm.

The School piloted an afterschool programme, OrleyX, during the Summer Term in consultation to Pre Prep and Middle School pupils. The aim of this programme to address the growing demand for afterschool activities allowing pupils to learn new skills and participate in physical activity whilst remaining on school premises.

Objective 8: Enact the Estates Strategy to improve the School’s infrastructure, particularly focusing on key and essential infrastructure projects including continuing refurbishing and updating the outdoor play spaces.

During the year a number of infrastructure projects where undertaken to enhance the school site. These projects included enhanced security surrounding the Oakmead Building and access to the staff car park and playing fields, drainage works in the meadow area, installation of new cricket netting and conversion of storage room into a multi-use room for meetings, breakout area and match teas.

8

ORLEY FARM SCHOOL TRUST

ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2023

Objective 9: Continue to develop the School’s Master Plan with a Governor led strategy committee.

The School is building a ‘Masterplan’ to scope and service the future needs of the School for the coming decade. The aim is to join up the short, mid and long term aims with a cohesive overview to ensure that all future developments are embedded in the educational philosophy and aims of the School. During the year the School undertook a Stock Condition Survey to inform and develop parts of the Schools wider Master Plan.

Objective 10: To conduct due diligence on the creation and phased implementation of an outdoor curriculum offering at the School.

Following the success of the pilot outdoor curriculum offering, the School has created a Meadow School that is being implemented as part of the curriculum for all Pre Prep pupils.

Objective 11: Governors will focus on managing the impact of any financial implications which may arise from political and economic factors outside the School’s control to ensure that the School will continue to thrive in the future.

During the year the School the school set up a sub-committee to report back to the Full Board to explore the impact of potential political and economic factors outside the School’s control. The membership of this committee is the Chair of Governors, Chair of Finance Committee, Chair of Estates Committee, Headmaster, Director of Finance and Director of Operations.

Pupil destinations and Scholarship Awards in 2023

Pupils often apply for, and are awarded, scholarships for more than one school. On these occasions, only the scholarship for their future school is accepted.

Boys:

Destination
School		 Number of Pupils Scholarships Awarded
Aldenham - 2
Haberdashers’ 3 1
Harrow 3 4
John Lyon 15 18
Radley College 1 -
Marlborough 2 -
Merchant Taylors 10 4
St Alban’s 1 -
St Margaret’s Bushey - 1
St Paul’s 4 -
Westminster 1 -
TOTAL 40 30

9

ORLEY FARM SCHOOL TRUST

ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2023

Girls:

Destination
School		 Number of Pupils Scholarships Awarded
Aldenham - 1
Avanti House 1 -
Downe House 1 -
Francis Holland - 2
Haberdashers’ Aske’s 2 1
Harrow International School Appi,
Japan		 1 2
John Lyon - 1
Marylebone 1
North London Collegiate 2 -
Notting Hill & Ealing 3 -
Northwood College 1 5
Royal Masonic 1 -
St Helen’s 7 6
St Margaret’s Bushey 4 4
Watford Grammar 1 -
TOTAL 25 22

10

ORLEY FARM SCHOOL TRUST

ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2023

Financial Review and Results for the Year

Orley Farm started and maintained a strong pupil role during the year. The focus on both pupil and staff wellbeing continues to be a priority for the School and our Genesis Week at the start of each academic year has now been fully embedded within each academic year in support of pupil and staff wellbeing. This is an exciting week of making connections and pupil and staff team building events across the first week of school and the programme continues to thrive.

During the Summer Term, the School piloted an Afterschool Programme, OrleyX. The aim of this programme to address the growing demand for afterschool activities allowing pupils to learn new skills and participate in physical activity whilst remaining on school premises. After a successful pilot programme, Orley X has been rolled out across the whole school during the 2023/24 academic year.

The year has however been presented with a host of challenges and uncertainty for the Orley Farm Community particularly in the face of significant inflationary pressures across all operational expenditure and the cost of living crisis. The Governing Body were well aware of the ongoing uncertainty facing many of our parents as the impact of the pandemic and economic landscapes unfolds and continued to offer the Hardship Support Scheme.

The focus for the School is to prioritise key and essential infrastructure projects around the school site. Throughout the year the School has undertaken a number of projects to enhance the school site, this includes undertaking a comprehensive stock condition survey to inform the Governors and management in finalising the School’s masterplan, drainage works across our meadow area, an additional security gate at Oakmead entrance and installing portable lighting in the vicinity of the School Astro.

The operating costs for the year were £7,833,068 (2022 - £7,231,524). This expenditure has been closely monitored and balanced against the School’s existing banking facilities. The School continues to adopt a cautionary approach to spending as a result of the inflationary cost pressures and increasing interest rates and this in turn has allowed School to generate surpluses that can be reinvested into the School’s key and essential infrastructure projects, whilst meeting its financial obligations. The School generated net fee income of £8,463,511 (2022 - £7,966,750), which was the primary source of revenue. Whilst the School does generate additional income in the form of lettings income and rents, the overriding primary source of income is derived from pupil fees. The surplus of £1,043,499 (2022: Surplus of £1,076,605) generated within the year will place the School in a strong position to embark on the delayed key and essential infrastructure projects which are now seen as a priority for the School which include the development of the play areas in and around the school site, refurbishment of the School’s Astro field, and refurbishment of the school’s properties and its outdoor provisions that will form part of the School’s Masterplan.

The School currently contributes into the Government Teacher’s Pension Scheme for all teachers. In October 2023, the Government announced a 5% increased to employer pension contributions with effect from April 2024, and following the conclusion of a teachers consultation in the 2021/22 academic year the School will be withdrawing from the Teachers’ Pension Scheme into a Defined Contribution Scheme during the 2023/24 academic year.

The Board of Governors are confident that the School’s financial situation is in a sound position which will enable the School to manage the current economic uncertainty, including the lasting impact of the Pandemic and Brexit, the possible changes to the political landscape and the continuing - inflationary pressures on all operating costs, whilst balancing the interests of all key stakeholders.

There has been no outsourced fundraising via professional fundraisers or other third parties. The charity is not registered with the fundraising regulator and received no fundraising complaints in the year.

Freehold Properties

In addition to the School buildings, the School owns four residential properties at New Julians (Headmaster’s House), Oakmead House and Orley Farm Cottage (for staff occupation only), and Westbourne House (nine flats, part staff and part non-staff occupancy). Income generated from property, including school lettings, this year was £191,885 (2022 - £177,229).

11

ORLEY FARM SCHOOL TRUST

ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2023

Extra-Curricular Activities

Our extra-curricular programme continues to be built around our weekly programme of lunchtime and after school clubs, subject to government guidelines and this has been extended following the creation of the OrleyX programme. The annual Expeditions Week continues to thrive.

Public benefit

As required by the Charities Act 2011, the Governors have referred to the general guidance on public benefit and have due regard to the Charity Commission’s guidance on public benefit, including the guidance ‘Public Benefit: Running a Charity (PB2)’.

As part of our public benefit, we co-operate with a range of local charities in our ongoing endeavours to widen public access to the schooling we provide; to optimise the educational use of our cultural and sporting facilities and to awaken in our pupils an awareness of the wider social context of the education they receive at the School. We are proud of the community links we have developed and continue to develop as listed below and we always look to strengthen these in line with the Charity Commission’s guide to public benefit.

12

ORLEY FARM SCHOOL TRUST

ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2023

Plans for Future Periods

These plans remain:

  1. To enact the School’s Estates Strategy;

  2. To enact our financial plans in support of this Estates Strategy; and

  3. To enact the School’s other development plans upon completion of the School’s Masterplan.

Objectives for 2023/2024

  1. Maintain the excellence of the educational provision throughout the School;

  2. Carry on relations with the Grange School in Harrow and other Schools;

  3. Continue the review of our procedures and policies to ensure total regulatory compliance; 4. Continue to develop the Orlumni;

  4. Ensure the provision of IT within the School continues to meet the academic and business needs of the school;

  5. Continue to manage the relationships with the School’s neighbours, tenants and the wider community to best effect;

  6. Continue to manage the School’s education provision, estate management, and responsibility to pupils, staff and the wider school community to best effect.

  7. Enact the Estates Strategy to improve the School’s infrastructure, particularly focusing on key and essential infrastructure projects;

  8. Continue to develop the School’s Master Plan with a Governor led strategy committee; and 10. Governors will continue to focus on managing the impact of any financial implications which may arise from political and economic factors outside the School’s control to ensure that the School will continue to thrive in the future.

Reserves Policy

The total reserves for the School were £16,793,599 of which £1,395,049 related to designated funds and a further £12,887,443 represented by fixed assets, leaving £2,897,286 of free reserves. The Reserves Policy of the School takes into account of a number of parameters such as:-

Based on their assessment, the Governors consider that the minimum targeted level of reserves desired is working capital at the level of three month’s expenditure.. The Governors will keep the current reserves policy under review during the next academic year, whilst also continuing to strive to generate funds in line with minimum targeted levels

The Governors will review the reserves policy on an annual basis.

Remuneration Policy

The Remuneration Committee are tasked with reviewing remuneration, including Key Management Personnel, on an annual basis. Consideration is given to the current market conditions, performance and objectives set at the beginning of each academic year.

13

ORLEY FARM SCHOOL TRUST

ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2023

Going Concern

The Governors are aware that cash is the most important driving factor when setting future budgets. The School’s cash position has been stress-tested by the Governors using various scenarios including conservative estimate of pupil numbers and rising costs. Following these test, the Board is content that the School will remain a going concern and can meet its ongoing obligations for a period of 12 months from when these accounts are signed.

Responsibilities of the Governors

The Governors (who are also directors of Orley Farm School Trust for the purposes of company law) are responsible for preparing the Report of the Governors (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Governors to prepare financial statements for each financial year, which give a true and fair view of the state of 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 Governors are required to:

The Governors are responsible for keeping adequate 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.

In so far as the Governors are aware:

Auditors

Crowe UK LLP has signified its willingness to continue in office as auditors.

A resolution proposing their re-appointment will be submitted at the Annual General Meeting.

Approved by the Board of Governors of Orley Farm School Trust on 27 November 2023 and signed on its behalf by:

Dr M E Short Chair

14

ORLEY FARM SCHOOL TRUST INDEPENDENT AUDITOR’S REPORT

Independent Auditor’s Report to the Members of Orley Farm School Trust

Opinion

We have audited the financial statements of Orley Farm School Trust (‘the charitable company’) for the year ended 31 August 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

15

ORLEY FARM SCHOOL TRUST INDEPENDENT AUDITOR’S REPORT

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

16

ORLEY FARM SCHOOL TRUST INDEPENDENT AUDITOR’S REPORT

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent School Standards) Regulations 2014.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, Independent Schools Inspectorate, Ofsted and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Janette Joyce

Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor

Aquis House 49-51 Blagrave Street Reading RG1 1PL

Date: 5 December 2023

17

ORLEY FARM SCHOOL TRUST

STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income and Expenditure Account) Year ended 31 August 2023

2023 2022
£ £
Note
Income from:
Charitable Activities
School fees receivable 1 8,463,511 7,966,750
Registration fees 18,200 19,550
Ancillary income 2a 97,815 68,078
Other income 3 235,198 245,633
Grant income 4 - 5,069
Investments 61,843 3,049
__ __
Total Income 8,876,567 8,308,129
__ __
Expenditure on:
Raising funds
Financing costs 93,168 79,512
Charitable Activities
Ancillary costs 2b 67,881 35,345
Primary educational costs 5 7,672,411 7,116,667
__ __
Total Expenditure 7,833,460 7,231,524
__ __
Net Income and Movements in Funds for the Year 7 1,043,107 1,076,605
Balance at beginning of year 15,750,492 14,673,887
__ __
Balance at End of Year 16,793,599 15,750,492
__ __

All of the activities of the School are continuing. The School has no recognised gains or losses other than as stated above.

All income and expenditure was unrestricted in both years.

The Accounting Policies and Notes on pages 21 to 30 form part of these Financial Statements.

18

ORLEY FARM SCHOOL TRUST BALANCE SHEET
Company Number: 628541 At 31 August 2023
Fixed Assets Note 2023 2022
£ £
Tangible fixed assets 8 12,887,443 13,172,092
Investments 9 20,950 20,950
___ __
12,908,393 13,193,042
___ __
Current Assets
Debtors 10 200,260 242,207
Cash at bank and in hand 5,060,532 5,629,957
__ __
5,260,792 5,872,164
Creditors: due within one year 11 (1,177,130) (1,265,207)
__ __
Net Current Assets 4,083,662 4,606,957
Creditors: due in more than one year 12 (198,456) (2,049,507)
__ __
Net Assets 16,793,599 15,750,492
Unrestricted Funds 14 __ __
General fund 15,398,550 14,197,761
Designated Funds:
Building Refurbishment fund 1,395,049 1,552,731
__ __
16,793,599 15,750,492
__ __

Approved and authorised for issues by the Board of Governors on 27 November 2023 and signed on its behalf by:

………………………

………………………

Dr M E Short

Mrs S Kothari

Chair

Chair of Finance Committee

The Accounting Policies and Notes on pages 21 to 30 form part of these Financial Statements.

19

ORLEY FARM SCHOOL TRUST

STATEMENT OF CASH FLOWS Year ended 31 August 2023

2023
£
Note
Net Cash Inflow from Operating Activities
15
1,612,213
Cash flows from Investing Activities
Payments to acquire tangible fixed assets
(190,711)
Sales proceeds of tangible fixed assets
3,000
Interest received
61,843
Interest paid
(93,168)
Net Cash Outflow from
Investing Activities
(219,036)
Cash flow from Financing Activities
Loan Repayment
(1,962,602)
_
Increase in cash in the year
15
569,425
_
Reconciliation of Net Cashflow to
Movement in Net Funds
Increase in cash in the year
(569,425)
Net decrease in bank loan
1,962,602
Change in funds resulting from cash flows and 15
1,393,177
Movement in net funds in the year
Net funds at beginning of the year
3,281,176
Net Funds at End of the Year
15
4,674,353		 2022
£
1,591,248
(450,982)
3,049
(79,512)
(527,445)
(314,931)
_
748,872
_
748,872
314,931
1,063,803
2,217,373
3,281,176

The Accounting Policies and Notes on pages 21 to 30 form part of these Financial Statements.

20

ORLEY FARM SCHOOL TRUST

ACCOUNTING POLICIES Year ended 31 August 2023

Basis of Accounting

Orley Farm School Trust is a charitable company in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 3 of these financial statements. The nature of the charity’s operations and principal activities is the operation of Orley Farm School.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity.

The Governors have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the School to continue as a going concern. The Governors have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the Governors have considered the School’s forecasts and projections and have taken account of pressures on fee income, particularly in light of the impact of the current economic uncertainty including the inflationary cost pressures and the exposure to significant increases in utility costs, before these financial statements were approved and is explained in more detail in the Risk Management section of the Governors Report in these financial statements. After making enquiries the Governors have concluded that there is a reasonable expectation that the School has adequate resources to continue in operational existence for the foreseeable future.

As such the School can expect to be able to meet its liabilities as they fall due in the period of at least 12 months from the date of approval of these accounts. However, there can be no certainty in relation to these matters. On this basis the Governors have concluded that the School is a going concern. The financial statements do not include any adjustments that would result from the School not being able to meet its liabilities as they fall due.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The Trust is the beneficial owner of the whole of the share capital of South Hill Estates Ltd. The Company’s assets and transactions in the year are not considered material, therefore the Governors consider it is not appropriate to prepare consolidated accounts of the Trust and its subsidiary.

Cash and cash equivalents

Cash and cash equivalents include cash at bank and in hand.

Judgements and key sources of estimation and uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates The judgements (apart from those involving estimates) that have had the most significant effect on amounts recognised in the financial statements related to the useful economic lives of tangible fixed assets.

21

ORLEY FARM SCHOOL TRUST

ACCOUNTING POLICIES Year ended 31 August 2023

Income

All incoming resources are included in the Statement of Financial Activities (SoFA) when the School is legally entitled to the income, after any performance conditions have been met, when the amount can be measured reliably and when it is probable that the income will be received.

Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided. Fees received prior to the end of the year in respect of the following terms are shown on the balance sheet as deferred income.

Investment income is earned through holding assets for investment purposes such as property. It includes interest and rent; Interest income is recognised when receivable and rent is recognised when the charity’s right to receive payment is established.

Expenditure

All expenditure is accounted for on an accruals basis. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

Charitable activities costs include all expenditure directly relating to the objects of the School.

Governance costs comprise the costs of running the charity including strategic planning for future development, auditors’ remuneration, certain legal costs, Governors’ expenses and the costs of complying with constitutional and statutory requirements. These costs are contained within ‘Support and Management Costs-other’ (see note 5).

All costs, including support costs, are allocated between expenditure categories and departments on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly.

Unrestricted Funds

Unrestricted funds consist of general reserves which are available for the Governors to apply to the general purposes of the School.

Designated funds consist of certain unrestricted funds which the Governors have earmarked for particular purposes.

22

ORLEY FARM SCHOOL TRUST

ACCOUNTING POLICIES Year ended 31 August 2023

Tangible Fixed Assets

Expenditure on land and buildings which, in the opinion of the Governors, has not enhanced their long-term value is charged to the SOFA. Expenditure on improvements to land and buildings which, in the opinion of the Governors, has enhanced their long-term value is capitalised. Expenditure on plant, equipment (including IT equipment) and furniture which is in excess of £1,000 per item, or group of items, is capitalised.

Assets in the course of construction are capitalised and depreciated when brought into use.

Depreciation is provided on all other tangible fixed assets, including freehold property, to write off their cost less residual value over their estimated useful lives when brought into use, at the following rates:

Freehold buildings 2% on cost Buildings of non-permanent construction 4% on cost All weather pitch 10% on cost Furniture, fixtures and equipment 15% reducing value Computers 25% on reducing value Motor vehicles 25% on reducing value Telephone System 20% on reducing value

The residual value for all classes of assets, including recent additions to the school buildings, is deemed to be zero. The exception to this rule being the original freehold buildings, for which the residual value is deemed to be 50% of the original cost to reflect land values.

Investments

Listed investments are stated at market value. Realised gains and losses arising on sales of investments and unrealised gains and losses arising on the revaluation of the investments at the year-end are taken to unrestricted funds on the SOFA.

Investments in subsidiary undertakings are recorded at cost less any provision for impairment.

Operating Leases

Rentals paid under operating leases are charged to the SOFA.

Taxation

The School, as a registered charity, is generally exempt from Corporation Tax but not from Value Added Tax (VAT). Irrecoverable VAT is included in the cost of those items to which it relates. The School’s subsidiary trading companies are liable for Corporation Tax on taxable profits not paid to the School as qualifying donations under the Taxes Acts.

Pension Schemes

The School contributes to the Teachers’ Pension Scheme, which is a defined benefit scheme, at rates set by the Government Actuary and advised to the Governors. The Scheme is a multi-employer pension scheme and it is not possible to identify the assets and liabilities of the Scheme which are attributable to the School. In accordance with Financial Reporting Standard (FRS 102) – Retirement Benefits, the Scheme is therefore accounted for as a defined contribution scheme. Contributions to the Scheme are charged to the SOFA as they become payable in accordance with the rules of the Scheme.

The School also contributes to individual personal pension schemes for non-teaching staff.

23

NOTES TO FINANCIAL STATEMENTS Year ended 31 August 2023

ORLEY FARM SCHOOL TRUST

  1. School Fees Receivable
1.School Fees Receivable
Fees receivable consist of:
Gross fees
Less: total bursaries, grants and allowances
2a.Ancillary Income
Coaches
After School Clubs
Disbursements
Pupil Insurance
2b.Ancillary Costs
Coaches
After School Clubs
Disbursements
Pupil Insurance
3.Other Income
Property
Holiday Club
Miscellaneous		 2023
£
8,615,376
(151,865)
_
8,463,511
_
2023
£
1,967
29,149
43,711
22,988
__
97,815
_
2023
£
140
5,233
41,365
21,143

67,881

2023
£
191,885
28,332
14,981
____
235,198
 2022
£
8,203,940
(237,190)
_
7,966,750
_
2022
£
2,065
9,420
29,116
27,477
__
68,078
_
2022
£
224
27
10,341
24,753

35,345

2022
£
177,229
27,221
41,183
____
245,633
_ _

4. Grant income

The school did not receive any Grant income in 2022-23. In 2021-22 the school received Grant income of £5,069.

24

NOTES TO FINANCIAL STATEMENTS Year ended 31 August 2023

ORLEY FARM SCHOOL TRUST

5.Analysis of Charitable
Expenditure
Salaries
£
Teaching
4,081,049
Welfare
237,776
Premises
410,667
Support and management costs
639,616
_
5,369,108
_
6.Employees and Key Management
Staff costs
Salaries and wages
Social security costs
Pension costs		 Other
Depreciation
/Profit on Disposal
£
£
564,758
-
223,386
-
712,319
472,360
330,480
-
_
_
1,830,943
472,360
_
_		 Total
£
4,645,807
461,162
1,595,346
970,096
_
7,672,411
_
2023
£
4,230,708
426,724
711,676
___
5,369,108
 2022
£
4,481,789
425,226
1,388,607
821,045
__
7,116,667
_
2022
£
4,063,719
424,597
692,091
_
5,180,407

Neither the Governors nor persons connected to them received any remuneration or benefits or reimbursements of expenses from the School with the exception of the items reported in note 16 of the statutory accounts.

Neither the Governors nor persons connected to them received any remuneration or benefits or
reimbursements of expenses from the School with the exception of the items reported in note 16 of the
statutory accounts.		 Neither the Governors nor persons connected to them received any remuneration or benefits or
reimbursements of expenses from the School with the exception of the items reported in note 16 of the
statutory accounts.		 Neither the Governors nor persons connected to them received any remuneration or benefits or
reimbursements of expenses from the School with the exception of the items reported in note 16 of the
statutory accounts.
The number of higher paid employees whose remuneration for the year fell within the following bands
was:
2023 2022
£60,001 - £70,000 1 1
£80,001 - £90,000 2 2
£160,001 - £170,000 1 1
Pension contributions of £79,452 (2022 - £77,683) were made on behalf of these employees. Of these
employee’s pension contributions in respect of the School defined contribution scheme were £5,417
(2022 - £5,311).
Staff Numbers
The average number of full time equivalent staff employed by the school
within each category was:
Teaching staff
Other staff		 No.
51
50
____
101
 No.
50
50
____
100

The key management personnel of the school includes the Governors, the Headmaster, the Director of Finance and the Director of Operations. The aggregate employee benefits of key management personnel of the School were £358,445 (2022 - £362,167).

The Headmaster’s wife, Mrs R Calvey, is employed at the School under a standard contract of employment. The recruitment, terms of employment and salary are not influenced by the Headmaster. All recruitment is overseen by the School's HR department and approved by the Governors.

25

ORLEY FARM SCHOOL TRUST ORLEY FARM SCHOOL TRUST NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS
Year ended 31 August 2023
7.Net Movement in Funds 2023 2022
£ £
This is stated after charging/(crediting):
Auditors’ remuneration - current year audit (Group) 17,550 13,050
Depreciation 475,360 440,093
(Profit)/Loss on disposal of Fixed Assets (3,000)
-
_ _
489,910 428,584
_ ______
8.Tangible Fixed Assets Furniture, Assets in the
Freehold land equipment course of
Cost and buildings and vehicles construction Total
£ £ £ £
At 1 September 2022 16,250,144 2,301,821 33,426 18,585,391
Additions 48,045 142,666 - 190,711
Disposals - (38,983)
-		 (38,983)
__ __ __ __
At 31 August 2023 16,298,189 2,405,504 33,426 18,737,119
Depreciation __ __ __ __
At 1 September 2023 3,526,985 1,886,314 - 5,413,299
Charge for the year 387,549 87,811 - 475,360
Disposals - (38,983)
-		 (38,983)
_ __ __ __
At 31 August 2023 3,914,534 1,935,142 - 5,849,676
Net Book Value __ __ __ __
At 31 August 2023 12,383,655 470,362 33,426 12,887,443
__ __ __ __
At 31 August 2022 12,723,158 415,507 33,426 13,172,092
__ __ __ __
9.Fixed Assets Investments 2023 2022
i)
Investment in subsidiaries - shares at cost		 £ £
South Hill Estates, Harrow Limited 20,950 20,950
Orley Farm School Enterprises Limited - -
______ ______
20,950 20,950
______ ______

The Trust owns 100% of the share capital in the following two subsidiary companies; South Hill Estates (Harrow) Limited, which owns and manages land and roads in the Harrow area, and Orley Farm School Enterprises Limited. Both companies are registered in England and Wales.

26

ORLEY FARM SCHOOL TRUST

NOTES TO FINANCIAL STATEMENTS Year ended 31 August 2023

The results of the subsidiary companies as extracted from their audited Financial Statements are as follows:


follows:
South Hill Orley Farm School
Estates Enterprises
2023 2022 2023 2023
£ £ £ £
Capital and reserves 9,023 3,142 - -
______ ______ ____ ____
Profit/(Loss) for the year 5,883 (25,284) - -
______ ______ ____ ____
A decision was made in June 2007 to subsume the activities of Orley Farm School Enterprises within
the School. The Company became dormant with effect from 1 September 2007.
10.Debtors 2023 2022
£ £
Fees and extras in arrears 29,174 57,870
Amount due from subsidiary company 57,577 54,913
Other debtors - 10,719
Prepayments
 113,509 118,705
______ ______
200,260 242,207
______ ______
11.Creditors due within one year 2023 2023
£ £
Deposits 309,500 314,250
Tax and social security 166,764 182,887
Accruals and deferred income 407,557 261,286
Other creditors 105,586 207,510
Bank loan repayable within one year 187,723 299,274
_ _
1,177,130 1,265,207
_ _

Deferred income consists of fees received in advance totalling £226,075 (2022 - £222,967)

12.Creditors due in more than one year
Amounts repayable between two and five years
_		 2023
£
198,456
__
198,456
 2022
£
2,049,507
__
2,049,507

The loans are unsecured and repayable over 120 months from 31 March 2015. The interest rates applicable to the loans are:

LIBOR loan 2.50% per annum over LIBOR plus mandatory cost Business loan 2.95% per annum over base rate

27

ORLEY FARM SCHOOL TRUST

NOTES TO FINANCIAL STATEMENTS Year ended 31 August 2023

13 . Pension Scheme

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £599,281 (2022 - £583,429) and at the year-end 2023 £51,043 (2022 - £47,064) 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, which 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%.

The School also contributes to a defined contribution scheme on behalf of its support staff. Employer contributions payable to this scheme was £112,395 (2022: £108,662) and there at year end £9,232 (2022: £9,232) was accrued in respect of contributions to this scheme.

28

ORLEY FARM SCHOOL TRUST

NOTES TO FINANCIAL STATEMENTS Year ended 31 August 2023

14.Unrestricted Funds
At 1 September 2022
Net income
Expenditure/Transfers
(to)/from designated funds
At 31 August 2023
At 1 September 2021
Net income
Expenditure/Transfers
(to)/from designated funds
At 31 August 2022		 General
fund
£
14,197,761
1,043,107
157,682
_
15,398,550
_
General
fund
£
12,673,887
1,076,605
447,269
___
14,197,761
 Refurb-
ishment
Total
fund
funds
£
£
1,552,731 15,750,492
-
1,043,107
(157,682)
-
_
_
1,395,049 16,793,599
_
_
Refurb-
ishment
Total
fund
funds
£
£
2,000,000 14,673,887
-
1,076,605
(447,269)
-
_
_
1,552,731 15,750,492

Designated Funds

The Governors have reconsidered the Designated Funds and have agreed in line with the Charity Commission guidance to establish the Refurbishment Fund to enable the School Refurbishment Plan which is due to be implemented with the next twelve to eighteen months.

15.Cash Flow Statement
Net Cash Inflow from Operating Activities
Net income
Depreciation
(Profit)/Loss on disposal of fixed assets
(Increase) / decrease in debtors
Increase in creditors
Interest paid
Interest received		 2023
£
1,043,107
475,360
(3,000)
41,947
23,474
93,168
(61,843)
__
1,612,213
 2022
£
1,076,605
440,093
-
(69,835)
67,922
79,512
(3,049)
__
1,591,248

29

NOTES TO FINANCIAL STATEMENTS Year ended 31 August 2023

ORLEY FARM SCHOOL TRUST

Note 15 continued.
Analysis of Net Funds
As at
Other
1 September
Cash
Non-cash
2022
flow
changes
£
£
£
Net cash balances
5,629,957
(569,425)
-
Other loans
(2,348,781) 1,962,602
-
_
_
_
Total
3,281,176
1,393,177
-
__
__
As at
Other
1 September
Cash
Non-cash
2021
flow
changes
£
£
£
Net cash balances
4,881,085
748,872
-
Other loans
(2,663,712)
314,931
-

___
_
____
Total
2,217,373
1,063,803
-


 As at
31 August
2023
£
5,060,532
(386,179)
_
4,674,353
_
As at
31 August
2022
£
5,629,957
(2,348,781)
_
3,281,176

16. Related Party Transactions

There were no other related party transactions in either years.

17. Capital Commitments

At 31 August 2023 capital works authorised by the Board of Governors but not contracted for amounted to £400,000 (2022- £1,593,324).

30