2023-08-31-accounts

QUEEN’S COLLEGE, LONDON

COUNCIL’S REPORT AND ACCOUNTS

YEAR ENDED 31 AUGUST 2023

Charity Registration No. 312726

QUEEN’S COLLEGE, LONDON

CONTENTS

Contents	Pages
Legal and administrative information	1
The Council’s report	2 – 10
Statement of the Council’s responsibilities	11
Auditor’s report	12 – 13
Statement of financial activities	14
Balance sheet	15
Statement of Cash flows	16
Notes to the accounts	17 - 28

QUEEN’S COLLEGE, LONDON

LEGAL AND ADMINISTRATIVE INFORMATION

YEAR ENDED 31 AUGUST 2023

Patron	Vacant.
	(With Her Late Majesty’s passing, the identity of the school’s new
	Patron will become known in due course).
Council (current serving members)	Marianne Austin
	Jenny Blaiklock
	Catherine Brahams-Melinek
	Greg Cohen (from 28 March 2023)
	Richard Ford
	Alexandra Gregory (Vice Chair)
	Matthew Hanslip Ward (Vice Chair)
	David Imrie
	Dina Mallett
	Rae Perry (Vice Chair)
	Holly Porter
	Joe Silvester
	Linda Wei
	Alison While (Chair)
	Patricia Wilks
The Principal	Richard Tillett
The Head of the Preparatory School	Laura Lamont
Bursar	Crispin Morton
	Richard White (Interim appointed 9 March 2023)
Registered Charity number	312726
Principal address	43-49 Harley Street
	London
	W1G 8BT
Auditor	Haysmacintyre LLP
	10 Queen Street Place
	London
	EC4R 1AG
Bankers	National Westminster Bank plc
	PO Box No 4NU
	1 Cavendish Square
	London
	W1A 4NU
Solicitors	Stone King LLP
	Boundary House
	91 Charterhouse Street
	Barbican
	London
	EC1M 6HR
Investment Advisors	J M Finn & Co
	4 Coleman Street
	London
	EC2R 5TA

1

QUEEN’S COLLEGE, LONDON

THE COUNCIL’S REPORT

YEAR ENDED 31 AUGUST 2023

THE COUNCIL’S REPORT

The Council of Queen’s College, London (“the Council”) presents its report, together with the audited financial statements, for the academic and financial year ended 31 August 2023, and confirms that the latter comply with the requirements of the Charities Act 2011 and the Statement of Recommended for Charities (SORP) 2015 (Second Edition, effective 1 January 2019).

REFERENCE AND ADMINISTRATIVE INFORMATION

Queen’s College, London was founded by Deed of Constitution dated 1 September 1852 and Royal Charter dated 2 November 1853, supplemented by Charter dated 29 May 1970, and as amended 26 October 1988. It has charitable status under reference number 312726.

THE COUNCIL OF QUEEN’S COLLEGE, LONDON

The members of the Council are also the Charity Trustees. Listed below are the present members of the Council and also any members who served during the year, but have now left:

Marianne Austin Jenny Blaiklock Catherine Brahams-Melinek (Elected 28 March 2023) Greg Cohen Richard Ford Alexandra Gregory Matthew Hanslip Ward David Imrie Dina Mallett Rae Perry Holly Porter Paul Reeve (Resigned 11 September 2022) Joe Silvester Linda Wei Alison While Patricia Wilks

Alison While is the Chair of the Council. Alexandra Gregory, Matthew Hanslip Ward and Rae Perry are Vice Chairs.

FINANCE COMMITTEE

The members of the Finance Committee were: Richard Ford (Chair), Jenny Blaiklock, Alexandra Gregory and Rae Perry.

2

QUEEN’S COLLEGE, LONDON THE COUNCIL’S REPORT (Continued)

YEAR ENDED 31 AUGUST 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Queen’s College, London is governed by Royal Charter (“the Charter”), the bye-laws of which were last amended on 26 October 1988. Initial application has been made to the Privy Council to amend the bye-laws to reflect modern practice, particularly in employment law; this process was in abeyance during the height of the pandemic. Though the process has been recommenced, the death of Her Late Majesty the Queen and accession of the King are expected to introduce further delay.

Governing Body

Queen’s College, London (“Queen’s”; “the school”) comprises both Queen’s College (“the College”, situated in Harley Street) and Queen’s College Preparatory School (“QCPS”, situated in Portland Place); the Council is thus the governing body of both constituent schools of Queen’s. Members of the Council serve and are constituted as detailed by the Charter. Members are elected at a full meeting of the Council, taking into consideration their eligibility, personal competence, specialist skills, and local availability. Members serve for a term of three years and are then eligible for re-election; they may serve on the Council for up to three terms (thus a maximum of nine years). Three members of the Council are related to pupils currently at the College or QCPS.

The Finance Committee, the Education and Pastoral Committee, the Estates Committee, and the Governance and Nominations Committee all report to the full Council following each of their meetings. The Development and Fundraising sub-Committee reports to the Council via the Finance Committee, of which it is a sub-Committee.

Trustee Training

Each new member of the Council is inducted into the workings of the school. Training is recommended, dependent upon the member’s personal skills and experience. The Council is a member of the Association of Governing Bodies of Independent Schools (AGBIS), which conducts training courses for members.

Organisational Management

Queen’s College, London is constituted by the Charter in a body politic and corporate.

The Council is the governing body and meets at least four times a year to oversee the policy of the school, and to review the processes by which the school is managed and controlled.

The financial operation of the school is reviewed by the Finance Committee (FC), which was chaired by Richard Ford during the 20222023 financial year. The FC reports to each of the Council meetings, and it has particular responsibility for reviewing financial objectives, performance, budgets, accounts, risk management and personnel matters; the Development and Fundraising sub-Committee of the FC, chaired by Rae Perry, has specific oversight of marketing, development and fundraising. The Education and Pastoral Committee was chaired by Alison While, and is responsible for child protection and safeguarding, alongside reviewing the educational provision. The Estates Committee was chaired by Matthew Hanslip Ward, and the Governance and Nominations Committee was chaired by Linda Wei.

In accordance with the Charter, the Principal and Headmistress are responsible to the Council for the internal organisation, management and operation of the College and QCPS respectively.

The Charter requires the Principal to present an annual report to the College’s Visitor, the Right Reverend and Right Honourable Lord Bishop of London. This report is available from the Clerk to the Council.

Salaries for key management personnel are set by the Chair of the Council, in consultation with the Vice Chairs of the Council and the Chair of the FC. They take note of both individual performance and benchmarking comparisons. They are also mindful that, to attract the best key personnel, it might be necessary to factor the cost of accommodation and travel in London into reward packages.

3

QUEEN’S COLLEGE, LONDON

THE COUNCIL’S REPORT (Continued)

YEAR ENDED 31 AUGUST 2023

Risk Management

The Council has assessed all identified major risks to which Queen’s is exposed. The principal risks are considered to be:

• a. That ever-increasing costs outside the school’s control (such as high rents in central London, extreme volatility in the utilities market and rising inflation) might force fee increases that are higher than can be sustained by a significant number of our current and/or prospective parents, thereby reducing accessibility to the education provided by the school and putting pressure on pupil numbers and fee revenue;

• b. That the economic situation (the “cost of living crisis”) might lead to a significant number of existing parents being forced to withdraw their daughters from the school, thus threatening budgets and long-term financial sustainability;

• c. That ineffectual leadership might lead to declining academic results, damage to reputation, reducing quality of applicants and/or loss of current pupils, thus threatening financial stability; and

• d. That political reform and/or the need to generate funds for the public purse might increase operational costs beyond economic sustainability, for instance, by removing charitable status (and thus removing business rate relief, which is currently 80%), by imposing VAT on school fees, or both.

These main strategic risks are mitigated by:

• Sound financial controls, including:

• Appointing specialists to negotiate leasehold arrangements;

• Smoothing the effects of volatility in the power market via long-term utilities contracts; and

• Continuing prudent policies with regard to borrowing, cash and reserves.

• Enhanced access to financial support in the form of bursaries; both:

• Bridging, temporary awards to cover transient, but significant, cash flow challenges; and

• The school’s continuing commitment to remitting 10% of fee revenue in the form of bursaries. The 175[th] Anniversary appeal established the 10% target, and the remissions figure has risen steadily from 6% in 2018-2019 to 10% in 20222023.

• The Council being rigorous in appointing key personnel; and

• Trusting educational organisations such as ISC, GSA, IAPS, AGBIS and ISBA to counter political scepticism about the strength of independent education and its contribution to society.

The Council is satisfied that control systems are in place to reduce exposure to identified major risks; where possible, exposure to major risk is mitigated by suitable insurance.

Teachers’ Pension Scheme

One of the key risks identified in several previous annual reports was the potential impact of rises in the cost of the Teachers’ Pension Scheme (TPS), the unfunded public sector scheme of which the school is currently a member. The most recent valuation of TPS is complete, with DfE recently confirming that future employers’ contributions – since 2019, 23.68% of a teacher’s salary –will rise by 5% in April 2024. Employers’ contributions to TPS currently account for 10% of the school’s total expenditure (14% of total payroll); since the 2019 valuation increased employers’ contributions by 43%, the risk that future valuations might force unsustainable increases in payroll costs led to a Council decision formally to consult our teachers regarding leaving the scheme.

Following due consultation on 19 January 2022 the Council made a formal proposal to the teachers to conduct a phased withdrawal from TPS with effect from 31 December 2023. All new joiners from 1 January 2024 will be eligible to join a new defined contribution (DC) scheme. Anyone who is a TPS member at 31 December 2023 may opt to remain in the scheme, provided they meet the cost of any rise in employers’ contributions beyond 23.68% from their salary; if they do not wish to meet this cost, they may transfer to the DC scheme. This proposal was accepted by the teachers, and revised contracts to implement it have been issued and signed by both parties in each case.

4

THE COUNCIL’S REPORT (Continued)

QUEEN’S COLLEGE, LONDON

YEAR ENDED 31 AUGUST 2023

OBJECTIVES, AIMS AND PRINCIPAL ACTIVITIES

Objectives and Principles of Queen’s College, London

The objects for which the school is established and incorporated are “to promote the advancement of education, and in connection therewith to acquire, establish, conduct and carry on residential and non-residential schools for girls and young women, and in particular to continue and conduct the undertaking, business and affairs of the College known as Queen’s College, London, at present carried on at Numbers 43, 45, 47 and 49 Harley Street, and at Numbers 59 and 61 Portland Place”.

The school operates under the following Principles of Education:

• We value academic excellence for its own sake, rather than the sterile pursuit of marks;

• We measure our success by the development of each individual;

• We value personal integrity and the discernment to deal responsibly with the wider world;

• We value teaching:

• i. That inspires pupils and stimulates intellectual curiosity;

• ii. That encourages intellectual rigour and the ability to make informed judgements;

• iii. That helps pupils to know how to think, rather than what to think.

• We value in pupils:

• i. Self-reliance and independence of mind;

• ii. Self-discipline and the determination to outstrip expectations;

• iii. Imagination and the courage to take risks.

Powers of the Council

The Council is empowered by the Royal Charter and Bye-Laws to:

• a. “Establish and maintain or aid in the establishment and maintenance of scholarships, bursaries and grants for the assistance or advancement of pupils at any school carried on by the school or otherwise;

• b. Make grants or allowances or other payments for the education of pupils;

• c. Purchase, take on lease, hire, or otherwise acquire any real or personal property which may be deemed necessary or convenient for the purposes of the school;

• d. Accumulate, sell, improve, manage, develop, exchange, lease, mortgage or otherwise dispose of, or deal with, or turn to account all property or rights of the College; provided that the College shall take or hold any property subject to the jurisdiction of the Charity Commissioners or the Secretary of State for Education. The College shall not mortgage, charge, sell, lease or otherwise dispose of the same without such authority, approval or consent as may be required by law;

• e. Borrow or raise money with or without security for any of the purposes of the College;

• f. Receive or accept donations, endowments and gifts of money, lands, hereditaments, stocks, funds, shares, securities and any other asset whatsoever and whether subject or not subject to any special trusts or conditions;

• g. Invest any moneys of the College not immediately required for any of its objects in such manner as may be authorised;

• h. Enter into such arrangements as may be thought fit for placing the College in connection or relation with any other institution or body established for educational purposes;

• i. Apply for any additional powers which may be deemed expedient for any of the purposes of the College, by means of Supplemental Charter or Act of Parliament;

• j. Grant, continue and pay salaries, pensions, gratuities or other sums in recognition of services;

• k. Do all such acts and things (not being inconsistent with or contravening any provision of the Charter) as may be authorised by the Bye-Laws; and

• l. Do all such other acts and things as are or may be deemed incidental or conducive to the attainment of any of the purposes of the College or the exercise of any of its powers.”

Annual Objective

Queen’s College, London’s annual objective in accordance with its Royal Charter is to “promote the advancement of education and to conduct schools for girls and young women” at a level in keeping with the School’s Principles of Education.

Principal Activity

The principal activity of the School is to provide for the education of approximately 650 pupils between the ages of 4 and 18 years.

5

THE COUNCIL’S REPORT (Continued)

QUEEN’S COLLEGE, LONDON

YEAR ENDED 31 AUGUST 2023

Investment in Facilities

After a period of significant investment in 2021/22, this year was one of consolidation in which the Council decided to invest further in the school’s buildings, with a significant spend on a maintenance project at QCPS over the summer. During the eight weeks that scaffolding was up roofing works, windows repairs, repointing and decorating was completed in accordance with conditions of our lease.

Environmental, Social & Governance (ESG) activities: “Green Queen’s”

Queen’s, like other organisations, is continually reviewing how it can minimise its impact on the environment. Both QCPS and the College were awarded Green Flag status by Eco-Schools, in the College’s case for the first time. We have continued to look for ways to reduce the impact of waste removal, both by reducing non-recyclable waste in the first place and by minimising the environmental impact of removing the waste that remains; instead of removing all our non-recyclable waste by road, our rubbish is driven only for the short trip to Regent’s Canal, and thereafter travels by canal lighter; this substantially reduces carbon footprint and also makes a contribution to easing road congestion. Improving the environmental efficiency of 200-year-old Listed buildings is a challenge, so Queen’s is now working with One Carbon World (OCW), a not-for-profit organisation that provides support and advice on measuring and reducing greenhouse gas emissions.

The first phase of this work is complete, having measured every aspect of the school’s operations, from fuel use, water, food and other waste. OCW have provided a report and recommendations based on the data collection which will inform a completely new sustainability policy; this policy will be used to drive concrete action and continual improvement. Our contract catering and cleaning providers are fully engaged in this process.

.

ESG activities: Public Benefit

Queen’s College, London has always pioneered girls’ and women’s education. When opened on 1 May 1848, it was the first institution in the UK to provide academic qualifications for women, and the Royal Charter granted to the College in 1854 was the first Charter to be granted by a sovereign for the furtherance of the education of women.

In furtherance of the school’s principal activity, the Council also gives careful consideration to the Charity Commission’s guidance on public benefit. The provision of women’s education continues to be the prime public benefit provided by the school. All educational provision is reviewed at least annually to assess its “added value”, with academic endeavour occurring within a supportive environment which ensures the pupils' wellbeing. Queen’s prepares its pupils to be active and socially responsible citizens.

Fee Remissions

Queen’s supported 115 pupils (2021-2022: 120)) with financial awards through bursaries or scholarships throughout the year.31 pupils (2021-2022: 44) received financial support that covered 100% of fees, either via a bursary alone or a combination of bursary and scholarship awards. 2022-23 was the third year of the College’s relationship with Sarah Bonnell School, a state secondary school in East London which does not provide education beyond GCSEs; a total of 6 pupils received 100% bursary support in the Senior College (6[th] Form) after joining Queen’s from Sarah Bonnell. A total of £1,397,736 (2021-2022: £1,144,372) was awarded for reason of financial hardship or academic scholarship; of this, £1,227,688 (2021-2022: £1,010,560) was allocated to means-tested bursary provision. Fee remissions equated to 10.2% of fee revenue (2021-2021: 9.3%).

Of those fee remissions via bursaries or scholarships, approximately 12% (2022: 15%) were funded by income from investment activity; the remainder was paid for out of operating funds. The Queen’s community continues to provide generous support to the 175[th ] Anniversary Bursary Appeal that was launched in 2019. Bursary donations during the year totalled £194011 (2022: £220,547), made up of £122,909 (2022: £179,812) from College parents and alumnae, and £71,102(2022: £40,734) from QCPS parents. These figures do not include pledged donations of £154,245 plus Gift Aid from a College parent, and £157,500 from a QCPS parent, both of these gifts to be paid in instalments over the 7 academic years starting in 2022-2023.

In total, the 175[th] Anniversary Bursary Appeal has raised over £1m since its launch and £1m was transferred from our bank account into invested funds in the Summer of 2021. This is a mark of the generosity of the Queen’s community, particularly given the impact of the pandemic for all bar the first few months of the appeal and increasing economic uncertainty as the impact of the pandemic tails off. As always, the Council would like to place on record their thanks to parents for their generosity in supporting the school and its associated community.

6

THE COUNCIL’S REPORT (Continued)

QUEEN’S COLLEGE, LONDON

YEAR ENDED 31 AUGUST 2023

Activities in Support of the Community and Other Schools

The inner-city location of our premises limits the school’s facilities for activities in the open air; Queen’s owns no sports fields or recreational areas outside. However, the school’s internal facilities are available for use by external agencies, particularly those involved in the promotion of education, and regular partners were able to return to full provision in 2022/23.

A dance academy, open to children of all backgrounds, operated from both schools throughout the year. Pro Corda (an organisation which uses training in chamber music to equip young people with the necessary skills to work together with others, unleashing wider social benefits in terms of participation, access and learning) returned to use the College every weekend during term time. Queen’s continued its membership of the Southwark Schools’ Learning Partnership (SSLP), which it joined in 2018. The SSLP brings together 17 independent and maintained schools (“Partners” from Southwark, “Associates” such as Queen’s from neighbouring London Boroughs) who share a desire to provide academic and vocational opportunities for both pupils and teachers, where each can learn from, and with, their peers. Events can be athletic or educational, include teachers, pupils or both, and be either competitive or collaborative.

The well-established and strong relationship with St Vincent’s Catholic Primary School continued to flourish. A member of the College senior leadership team is a Governor; he has recently delivered an assembly to Year 3-6 during Parliament week. The Science Department have also run workshops for Year 4 and 5. Queen’s staff also led INSET training sessions at St. Vincent’s on History and Geography teaching skills in Jan 2023 for the second year in a row.

Other members of staff were Governors at Highgate Wood School, Sarah Bonnell School, Greenfields Nursery and Queenswell Federation.

Other schools were invited to attend lectures and workshops held at or hosted by Queen’s; notable examples during the year include:

• A History of Art conference attended by over 50 teachers of the discipline across state and independent schools;

• Hosting Royal Society of Biology AGM and talk; and

Hosting a Come and Sing event for the bursary fund and Guide Dogs UK. We were delighted to return to our tradition of Class 3 Choir singing at the Marylebone Christmas Festival, and our Brass Ensemble once again raised money for charities with their Christmas busking on Oxford Street. In February 2023, our community came together to put on the most successful charity 'Come and Sing' event yet, this time with a 'Top of the Pops' theme and raising money for Guide Dogs UK alongside our own Bursary Fund; we raised almost £4000, including enough to name a Guide Dog puppy, and we were thrilled with the news of the birth of 'Harley' in August. During the academic year, we also saw the return of our Joint Orchestra Project with QCPS, coming together for the afternoon with our students playing a range of uplifting music alongside the younger pupils.

Pupils at the school remained active charity fundraisers, raising a total of £34,702 (2022: £16,184),

Both schools continue actively to support the development of teachers and teaching assistants. In the College, one member of staff has just completed her ISQAM (Independent Schools Qualification in Academic Management) Level 1, while two other colleagues are undertaking the National Professional Qualification for Senior Leadership. Two Early Career Teachers were successfully inducted into the profession in the summer of 2023, while a further two completed the first year of the two-year Early Careers Teacher programme. One member of staff has started her first year of the Early Careers Teacher programme. Another SCITT (School Centred Initial Teacher Training) trainee had a successful placement in the Modern Languages Department. The College is also planning to take on two PGCE students from UCL IOE in February 2024, one in the Mathematics department and one in the English department. The College ensures the conservation and preservation of a number of important Listed properties for the benefit of the community at large.

Full details of the public benefit activities of the College and QCPS can be found in each school’s Public Benefit report, available from the Bursar.

ESG activities: Governance

The Council keeps the governance of Queen’s College, London under continual review, including succession planning to find governors with expertise relevant to the needs of the charity, induction and continuation training for governors provided by AGBIS, ISBA and HMC, and periodic external review of governance standards, including benchmarking against the Charity Code of Governance.

7

QUEEN’S COLLEGE, LONDON

THE COUNCIL’S REPORT (Continued)

YEAR ENDED 31 AUGUST 2023

ACHIEVEMENTS AND PERFORMANCE

Operational Performance

During the year 88 pre-preparatory girls (2022: 86), 121 preparatory girls (2022: 124) and 427 secondary girls (2022: 401) were educated in keeping with the College’s educational policies.

A Levels. There was a 99% pass rate and 85% of entries were graded A*, A or B.

GCSEs. At GCSE and IGCSE the proportion of 7-9 or A*-A grades was 78%

11+. The Preparatory School 11+ examination pupils achieved excellent results, allowing girls to attend senior schools of their parents’ choice.

Full details of educational results and activities, and other matters regarding the activities of the College, are contained in the Principal’s Annual Report (as presented to the Visitor – available from the Bursar), or appear on the websites of the College (www.qcl.org.uk) and Preparatory School (www.qcps.org.uk) as applicable.

Extra-Curricular Activities and Sport

Academic attainment is achieved alongside participation in a host of extra-curricular activities, including drama, dance, music and those associated with a wide variety of clubs. In addition, the College, despite having no sports facilities of its own, has a structured and busy PE timetable for all pupils. Pupils compete against maintained and independent schools in a number of sports, with considerable success, in local leagues. The curriculum is also enriched through educational visits which maximise the benefits of the school’s location in central London, with easy access to transport links.

8

QUEEN’S COLLEGE, LONDON

THE COUNCIL’S REPORT (Continued)

YEAR ENDED 31 AUGUST 2023

FINANCIAL REVIEW

The school’s net movement in funds, a decrease of £966,314 (2022: decrease of £21,422), should be viewed in the context of a year which saw the operational and financial challenges resulting from the economic climate and exceptional expenditure in several areas of school life expected to be non-recurring together with an unprecedented spend on the fabric of the Prep School buildings. As outlined above, the Council took a conscious decision to accept a lower than planned surplus in order to fund investment in the school’s facilities that contributes to the quality and capacity of the School’s educational and pastoral provision. Looking forward, the school will return to a modest surplus in 23/24.

Full details of financial activities are contained in the attached accounts.

Investment Policy

Investment powers are governed by the Royal Charter. The investment portfolio is managed by the School’s investment advisors (J.M. Finn & Co), and their performance is regularly reviewed by the Finance Committee. The investment advisors also present an annual review of performance to the Finance Committee.

The Council adopts a conservative investment strategy, with the aim of optimising the school’s total investment return consistent with mitigating risk, and while preserving the real value of endowed investments. The two funds are broadly configured 50% for revenue – primarily to support bursaries –and 50% for growth, thus spreading risk.

Investment Performance

During the year £152,747 (2022: £88,775) investment income was received into the business account. Market performance led to a net investment loss of £343,482 (2022: £214,773 loss) in the value of the funds.

Reserves Policy

Total funds of the school at 31 August 2023 were £7,228,525 (2022: £8,194,839), comprising restricted funds of £1,930,810 (2022: £2,920,030), designated funds of £4,657,324 (2022: £4,915,702), and general funds (or free reserves) of £640,391 (2022: £359,107).

The school’s primary objective remains to maintain or increase reserve resources built up in recent years, after a number of years of capital expenditure followed by the Covid-19 pandemic. The rapid increase in and continuing high levels of inflation, political uncertainty and the dramatic rise in energy costs mean that it remains prudent to preserve and enhance cash reserves, providing the financial headroom to cope with further possible financial shocks.

Our reserves policy is kept under continual review by the Council and Finance Committee to ensure that the policy remains appropriate for the prevailing economic situation; this is especially the case during times of volatility and uncertainty, as at present.

9

QUEEN’S COLLEGE, LONDON

THE COUNCIL’S REPORT (Continued)

YEAR ENDED 31 AUGUST 2023

PLANS FOR THE FUTURE

Development

The school will continue to consolidate its position in order to concentrate on bringing the remainder of its infrastructure to a standard equivalent to the modern 6[th] Form Centre opened in 2017.

Following on from recent QCPS kitchen and College classroom investments outlined above, plans for the premises in 2023-2024 will see continued investment in the facilities of the school – notably redeveloping the redundant Caretaker’s flat in the basement of No. 49 Harley Street, which has been empty for several years, to provide much-needed space for study, pupil wellbeing and staff workspaces.

Investment in IT infrastructure since 2020 has markedly improved resilience, redundancy and equipment standardisation; both the College and QCPS have successfully implemented 1:1 Device Schemes from September 2023.

The school’s longer-term aim remains to increase capacity for teaching and learning by adding a second Preparatory School to the Queen’s family, acquiring an additional building, or both. However, with the independent sector facing looming large increases in costs, any decision whether to invest the Charity’s resources in acquisitions will be dictated as much by the state of the UK economy as by the immediate aspirations of the school. Queen’s was able to survive and thrive during the Covid crisis because it had no debt and sufficient reserves; should the current severe economic uncertainty persist or even worsen, it may be that for now the prudent course is to conserve those cash reserves to allow the Charity to cope with further financial shocks and, as with the pandemic, provide support to our pupils.

Disclosure of information to auditors

Each of the members of Council has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditors are unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information.

Auditor

A resolution to re-appoint Haysmacintyre LLP as the College’s auditors was passed at the Annual General Meeting on 4 December 2023.

Signed on behalf of the Council

Alison While (Chairman)

Date: 4 December 2023

10

INDEPENDENT AUDITOR’S REPORT TO THE COUNCIL OF QUEEN’S COLLEGE, LONDON

Opinion

We have audited the financial statements of Queen’s College, London 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 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:

• give a true and fair view of the state of the school’s affairs as at 31 August 2023 and of the school’s net movement in funds for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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 College 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 Council’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 College'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 Council with respect to going concern are described in the relevant sections of this report.

Other information

The Council are responsible for the other information. The other information comprises the information included in the Report of the Council. 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

• adequate accounting records have not been kept by the College; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of Council for the financial statements

As explained more fully in the Council’s responsibilities statement set out on page 11, the Council is 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 Council determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

12

INDEPENDENT AUDITOR’S REPORT TO THE COUNCIL OF QUEEN’S COLLEGE, LONDON (CONTINUED)

In preparing the financial statements, the Council is responsible for assessing the College’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 Council either intend to liquidate the College 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 College and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the independent school regulations, safeguarding regulations, health and safety requirements, GDPR, employment law and charity 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 that have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and other factors such as payroll tax.

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 the improper recognition of revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:

• Inspecting correspondence with regulators and tax authorities;

• Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

• Evaluating management’s controls designed to prevent and detect irregularities;

• Identifying and testing journals; and

• Challenging assumptions and judgements made by management in their critical accounting estimates.

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 regulations. 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 College’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the College's trustees 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 College’s trustees as a body for our audit work, for this report, or for the opinions we have formed.

Haysmacintyre LLP 10 Queen Street Place Statutory Auditors London EC4R 1AG Date: 4 December 2023

Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

13

QUEEN’S COLLEGE, LONDON

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2023

		Unrestricted	Restricted	Total	Total
		Funds	Funds	2023	2022
	Notes	£	£	£	£
INCOME FROM:
Donations and grants receivable	2	80	194,011	194,091	323,798
Investments	3	49,465	120,763	170,228	90,502
		----------------	----------------	----------------	----------------
		49,545	314,774	364,319	414,300
Charitable activity
Education	4	12,760,372	-	12,760,372	11,465,605
		----------------	----------------	----------------	----------------
Total income		12,809,917	314,774	13,124,691	11,879,905
		----------------	----------------	----------------	----------------
EXPENDITURE ON:
Raising funds		62,267	-	62,267	77,405
Charitable activity
Education		13,685,256	-	13,685,256	11,609,149
		----------------	----------------	----------------	----------------
Total expenditure	5	13,747,523	-	13,747,523	11,686,554
		----------------	----------------	----------------	----------------
Net income/(expenditure) before net
gains/(losses) on investments		(937,606)	314,774	(622,832)	193,351
Net gains/(losses) on investments		(160,004)	(183,478)	(343,482)	(214,773)
		---------------	----------------	----------------	----------------
Net income/(expenditure)		(1,097,610)	131,296	(966,314)	(21,422)
Transfers between funds	13/14	1,120,516	(1,120,516)	-	-
		----------------	----------------	----------------	----------------
Net movement in funds		22,906	(989,220)	(966,314)	(21,422)
Fund balances at 1 September 2022		5,274,809	2,920,030	8,194,839	8,216,261
		----------------	----------------	----------------	----------------
Fund balances at 31 August 2023		5,297,715	1,930,810	7,228,525	8,194,839
		==========	==========	==========	==========

All income and gains for the period are recognised above. All of the College’s activities are classified as continuing.

Details of comparative figures by fund are shown in note 19.

14

			2023			2022
	Notes	£		£	£		£
FIXEDASSETS
Tangibleassets	8			4,457,324			4,715,702
Investments	9			3,170,524			3,497,363
				7,627,848			8,213,065
CURRENTASSETS
Debtors	10	4,393,561			3,529,198
Cashatbankandinhand		1,986,368			2,598,787
		6,379,929			6,127,985
Creditors:amountsfallingduewithin
oneyear	11	(6,779,252)			(6,146,211)
Netcurrentliabilities				(399,323)			(18,226)
Totalassetslesscurrentliabilities				7,228,525			8,194,839
Incomefunds
Restrictedfunds	13			1,930,810			2,920,030
Unrestrictedfunds:
Designatedfunds	14			4,657,324			4,915,702
Generalfunds				640,391			359,107
				5,297,715			5,274,809
				7,228,525			8,194,839

QUEEN’S COLLEGE, LONDON

STATEMENT OF CASH FLOWS

YEAR ENDED 31 AUGUST 2023

		2023	2022
		£	£
Cash flows from operating activities:
Net cash provided by operating activities		(626,066)	632,132
Cash flows from investing activities:
Investment income		170,228	90,502
Payments to acquire tangible fixed assets		(139,938)	(536,219)
Payments to acquire investments		(1,397,784)	(613,410)
Proceeds from disposal of investments		475,757	613,443
Other receipts and movements from investment portfolio		905,384	(1,031,067)
		-------------------	------------------
Net cash used in investing activities		13,647	(1,476,751)
		-------------------	------------------
Change in cash and cash equivalents in the reporting period		(612,419)	(844,619)
Cash and cash equivalents at the beginning of the reporting period		2,598,787	3,443,406
		-------------------	------------------
Cash and cash equivalents at the end of the reporting period		1,986,368	2,598,787
		==========	==========
Reconciliation of net income to net cash flow from operating activities
		2023	2022
		£	£
Net (expenditure)/income for the reporting period
(as per the statement of financial activities)		(966,314)	(21,422)
Adjustments for:
Net loss/(gain) on investments		343,482	214,773
Depreciation charges		398,316	429,997
Investment income		(170,228)	(90,502)
Increase in debtors		(864,363)	(193,402)
Increase in creditors		633,041	292,688
		-----------------	------------------
Net cash provided by operating activities		(626,066)	632,132
		=========	=========
Analysis of cash and cash equivalents		2023	2022
		£	£
Cash in hand		1,986,368	2,598,787
		-------------------	-----------------
Total cash and cash equivalents		1,986,368	2,598,787
		=========	===========
Net Debt analysis of cash and cash equivalents	2022	Cash flows	2023
	£	£	£
Cash in hand	2,598,787	(612,419)	1,986,368
	------------	--------------	---------------
Total net debt	2,598,787	(612,419)	1,986,368
	=======	=========	=========

16

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS

YEAR ENDED 31 AUGUST 2023

1. ACCOUNTING POLICIES

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) – second edition effective 1 January 2019.

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

The College is governed by Royal Charter and is a Public Benefit Entity registered as a charity in England and Wales (Charity Registration No. 312726).

1.1 Going Concern:

Having reviewed the funding facilities available to the College together with the expected ongoing demand for places and the College’s future projected cash flows, Members of the Council have an expectation that the College has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the College’s financial viability. Accordingly, they also continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Accounting and Reporting Responsibilities on page 14.

1.2 Critical accounting judgements and key sources of estimation uncertainty:

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

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

Judgements made by Members of the Council, in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are deemed to be in relation to the depreciation rates of tangible fixed assets and are discussed below.

In the view of the Members of the Council, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

1.3 Fees and similar income:

Fees receivable for education are accounted for in the period in which the service is provided. Fees received for education to be provided in future years are carried forward as deferred income.

Donations are accounted for when they are receivable. Donations for purposes restricted by the wishes of the donor are taken to “restricted reserves” where these wishes are legally binding on the Council.

Grant income is derived from the amounts receivable under the Coronavirus Job Retention Scheme.

Investment income is accounted for when it is received.

17

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 31 AUGUST 2023

1. ACCOUNTING POLICIES (continued)

1.4 Expenditure:

Expenditure is accounted for on an accruals basis, with the irrecoverable element of VAT included with the item of expense to which it relates.

Expenditure is summarised under functional headings on a direct cost basis.

Governance costs are those incurred in connection with the administration of the College and compliance with constitutional and statutory requirements.

The cost of furniture and equipment is written off in the year of acquisition.

1.5 Tangible fixed assets and depreciation:

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Leasehold Property Over 25 years, other than Somerville Hall which has been fully depreciated and improvements to the dining hall and boiler room which are being depreciated over 10 years. Plant & Machinery Straight line over 10 years Furniture & Fittings Straight line over 4 years IT Straight line over 3 years

Items costing less than £1,000 are written off on acquisition.

1.6 Leasing and hire purchase commitments:

Rentals payable under operating leases are charged against income on a straight line basis over the period of the lease.

1.7 Investment:

Fixed asset investments are stated at market value.

Realised and unrealised gains and losses are dealt with in the Statement of Financial Activities.

1.8 Pensions:

The Teachers’ Pension Scheme - This scheme is a multi-employer pension scheme. It is not possible to identify the College’s share of the underlying assets and liabilities of the Teachers’ Pension Scheme on a consistent and reasonable basis and therefore, as required by FRS102, accounts for the scheme as if it were a defined contribution scheme. The College’s contributions, which are in accordance with the recommendations of the Government Actuary, are charged in the period in which the salaries to which they relate are payable.

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

1.9 Accumulated funds:

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in note 13 to the accounts.

Designated funds comprise funds which have been set aside at the discretion of the Council for specific purposes. The purposes and uses of the designated funds are set out in note 14 to the accounts.

Unrestricted funds are funds which can be used in the accordance with the charitable objects at the discretion of the Council.

1.10 Taxation:

No provision for taxation is included in the accounts as the College is entitled to the exemption for tax afforded by Part 10 of the Income Tax Act 2007 and Section 256 of the Chargeable Gains Act 1992.

18

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 31 AUGUST 2023

1. ACCOUNTING POLICIES (continued)

1.11 Financial instruments:

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost with the exception of investments which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions.

1.12 Debtors:

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.13 Cash at bank and in hand:

Cash at bank and cash in hand includes cash and short term highly liquid investments.

1.14 Creditors and provisions:

Creditors and provisions are recognised where the College has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

2. Donations and grants receivable

	Unrestricted	Restricted	Total	Total
	Funds	Funds	2023	2022
	£	£	£	£
Donations	80	194,011	194,091	323,798
	---------------	---------------	---------------	---------------
	80	194,011	194,091	323,798
	========	========	========	========
	Unrestricted	Restricted	Total	Total
	Funds	Funds	2022	2021
	£	£	£	£
Donations	17,798	306,000	323,798	208,048
Grants receivable	-	-	-	9,239
	--------------	---------------	---------------	---------------
	17,798	306,000	323,798	217,287
	========	========	========	========

19

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 31 AUGUST 2023

3. Investment income

	Unrestricted	Restricted	Total	Total
	Funds	Funds	2023	2022
	£	£	£	£
Income from listed investments	31,985	120,763	152,748	88,775
Interest receivable	17,480	-	17,480	1,727
	---------------	---------------	---------------	---------------
	49,465	120,763	170,228	90,502
	========	========	========	========
	Unrestricted	Restricted	Total	Total
	Funds	Funds	2022	2021
	£	£	£	£
Income from listed investments	36,301	52,474	88,775	82,197
Interest receivable	1,727	-	1,727	331
	---------------	---------------	---------------	---------------
	38,028	52,474	90,502	82,528
	========	========	========	========

4. Income from Charitable Activities – Education

	2023	2022
	£	£
Gross fees receivable	13,650,615	12,231,677
Less bursaries, scholarships and
awards	(1,413,571)	(1,148,436)
	---------------	---------------
Net fees receivable	12,237,044	11,083,241
Other educational income	523,328	382,364
	---------------	---------------
Total education income	12,760,372	11,465,605
	=========	=========

20

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 31 AUGUST 2023

5.	Total expenditure - 2023	Staff		Other	Total	Total
		Costs	Depreciation	Costs	2023	2022
		£	£	£	£	£
	Costs of raising funds
	Investment management
	costs	-	-	14,970	14,970	12,520
	Fundraising	-	-	47,297	47,297	64,885
		------------	---------------	-----------	-------------	-------------
	Total costs of raising funds	-	-	62,267	62,267	77,405
		=======	=========	======	========	========
	Charitable activities
	Teaching	6,346,963	-	291,065	6,638,028	5,817,238
	Housekeeping, cleaning and catering	-	-	1,322,575	1,322,575	1,067,977
	Premises costs	161,162	398,316	1,805,474	2,364,952	2,012,129
	Support costs	1,916,316	-	1,443,385	3,359,701	2,711,805
		------------	---------------	-----------	-------------	-------------
	Total charitable activities	8,424,441	398,316	4,862,499	13,685,256	11,609,149
		=======	========	=======	========	========
	Total expenditure	8,424,441	398,316	4,924,766	13,747,523	11,686,554
		=======	========	=======	========	========

Included within support costs above are governance costs of £17,500 (2022: £14,500) in respect of payments made to the auditors for audit services.

Included within premises costs is £1,087,871 (2022: £1,069,412) in relation to operating lease payments.

Total expenditure - 2022	Staff		Other	Total	Total
	Costs	Depreciation	Costs	2022	2021
	£	£	£	£	£
Costs of raising funds
Investment management
costs	-	-	12,520	12,520	11,555
Fundraising	-	-	64,885	64,885	57,950
	------------	---------------	-----------	-------------	-------------
Total costs of raising funds	-	-	77,405	77,405	69,505
	=======	=========	=======	========	========
Charitable activities
Teaching	5,579,516	-	237,722	5,817,238	5,609,570
Housekeeping, cleaning and catering	-	-	1,067,977	1,067,977	936,188
Premises costs	125,966	429,997	1,456,166	2,012,129	2,076,201
Support costs	1,639,312	-	1,072,493	2,711,805	2,415,616
	------------	---------------	-----------	-------------	-------------
Total charitable activities	7,344,794	429,997	3,834,358	11,609,149	11,037,575
	=======	=========	=======	========	========
Total expenditure	7,344,794	429,997	3,911,763	11,686,554	11,107,080
	=======	=========	=======	========	========

21

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 31 AUGUST 2023

5. Expenditure (continued)

Other Support costs can be analysed as follows:

Other Support costs can be analysed as follows:
	2023	2022
	£	£
Insurance	165,440	134,724
Printing, Postage and Stationery	107,407	96,779
Telephone and IT	348,811	302,145
Advertising	66,823	41,998
Catering, hospitality	59,135	59,218
Open days, certs, presentations, church services, Founders Day, flowers	33,938	21,914
PE court hire, transport	172,412	160,755
Recruitment, retention, training, welfare	126,120	114,372
Legal Costs	119,601	18,042
Other	243,698	122,546
	-----------------	-------------
	1,443,385	1,072,493
	==========	========

6. Council

None of the Council (or any persons connected with them) received any remuneration or benefits from the College during the year (2022: none).

7.

Employees	2023	2022
	Number	Number
Number of employees
The average monthly number of employees during the year was:
Teaching staff	93	90
Non-teaching staff	45	46
	-----------------	-------------
	138	136
	========	========
Employment costs	2023	2022
	£	£
Wages and salaries	6,490,455	5,633,973
Social security costs	731,575	641,976
Pension contributions	1,202,411	1,068,445
	-----------------	-------------
	8,424,441	7,344,794
	==========	========
	2023	2022
	Number	Number
The number of employees whose remuneration was £60,000 or more were:
£60,000 - £70,000	16	8
£70,000 - £80,000	4	3
£80,000 - £90,000	4	1
£90,000 - £100,000	2	1
£100,000 - £110,000	1	2
£160,000 - £170,000	-	1
£170,000 - £180,000	1	-
	=======	=======

The total remuneration of key management personnel in the year was £1,254,087 (2022: £1,216,536).

22

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 31 AUGUST 2023

8.	Tangible fixed assets				Leasehold
				Improvements
					£
	Cost
	At 1 September 2022				9,315,966
	Additions				139,938
					------------------
	At 31 August 2023				9,455,904
					------------------
	Depreciation
	At 1 September 2022				4,600,264
	Charge for the year				398,316
					------------------
	At 31 August 2023				4,998,580
					------------------
	Net book value
	At 31 August 2023				4,457,324
					==========
	At 31 August 2022				4,715,702
					==========
9.	Fixed asset investments	General	Restricted	Total	Total
		Funds	Funds	2023	2022
		£	£	£	£
	Market value at 1 September 2022	1,248,064	2,249,299	3,497,363	2,681,102
	Acquisitions at cost	372,008	1,025,776	1,397,784	613,410
	Disposals at opening book value	(162,003)	(313,754)	(475,757)	(613,443)
	Change in value in the year
	(including investment cash
	movements)	(355,439)	(893,427)	(1,248,866)	816,294
		--------------	-------------	--------------	------------------
	Market value at 31 August 2023	1,102,630	2,067,894	3,170,524	3,497,363
		========	========	========	==========
10.	Debtors			Total	Total
				2023	2022
				£	£
	Fee debtors			3,747,194	3,155,092
	Other debtors			14,785	41,293
	Prepayments and accrued income			631,582	332,813
				--------------	-------------
				4,393,561	3,529,198
				========	========

23

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 31 AUGUST 2023

11. Creditors: amounts falling due within one year

Creditors: amounts falling due within one year	Total	Total
	2023	2022
	£	£
Trade creditors	490,652	254,470
Taxes and social security costs	184,180	162,639
Fees receivable in advance & pupil deposits	5,814,686	5,339,066
Other creditors	257,427	158,014
Accruals	32,307	232,022
	--------------	-------------
	6,779,252	6,146,211
	=========	========

Fees in advance represents fees invoiced due for the Michaelmas 2023 term.

Deposits are due on the pupil leaving the College after giving one term’s notice.

12. Pension Costs

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 £1,248,293 (2022: £935,333) and at the year-end £126,882 (2022: £111,790) 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 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied, at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there was certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and following a public consultation in 2021, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations.

The 2016 cost control valuations were completed in January 2022, and the results indicated that there would be no changes to benefits or member contributions required. The results of the cost cap valuation are not used to set the employer contribution rate, and HM Treasury has indicated that any changes to the employer contribution rate resulting from the 2020 valuations will take effect in April 2024.

Until the 2020 valuation is completed, it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

24

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 31 AUGUST 2023

13. Restricted Funds

The income funds of the College include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

		Movement in Funds	Movement in Funds
				Net
	Balance at			investment	Balance at
	1 September			gains and	31 August
	2022	Income	Expenditure	transfers	2023
	£	£	£	£	£
Dedicated Scholarship Fund	43,182	887	-	(44,069)	-
Old Queens Bursary Trust Fund	2,206,117	119,876	-	(1,259,925)	1,066,068
Bursary donations	670,731	194,011	-	-	864,742
	-----------------	----------------	---------------	----------------	----------------
	2,920,030	314,774	-	(1,303,994)	1,930,810
	==========	========	=========	=========	==========

Included within the net investment gains and transfers column are bursaries paid in the year of £1,076,447 and scholarships paid of £44,069.

		Movement in Funds	Movement in Funds
				Net
	Balance at			investment	Balance at
	1 September			gains and	31 August
	2021	Income	Expenditure	transfers	2022
	£	£	£	£	£
Dedicated Scholarship Fund	581,974	24,739	-	(563,531)	43,182
Old Queens Bursary Trust Fund	762,754	27,735	-	1,415,628	2,206,117
Bursary donations	364,731	306,000	-	-	670,731
	-----------------	----------------	---------------	----------------	----------------
	1,709,459	358,474	-	852,097	2,920,030
	==========	========	=========	=========	==========

Included within the net investment gains and transfers column are bursaries paid in the year of £991,394 and scholarships paid of £132,577. As part of the 175th Anniversary Bursary Appeal, during the year we transferred £1M from the bank into the Old Queen’s Bursary Trust Fund (OQBTF); this money is the result of donations received over the past 2 years. At the same time, we rationalised our investment funds from four (two restricted, two unrestricted) into two, in order to save on administration costs. The Dedicated Scholarship Fund was thus closed and its funds transferred into the OQBTF.

The Dedicated Scholarship Fund represents income received from third parties with specific conditions as to who can qualify for the scholarships.

The Old Queen’s Bursary Trust Fund represents funds set up by Alumnae of the College which allows Pupils to apply for Bursaries to assist them to further their Education.

The Bursary donations fund represents money donated by parents to contribute to bursaries.

25

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 31 AUGUST 2023

14. Designated funds

The income funds of the College include the following designated funds which have been set aside out of unrestricted funds by the Council of Queen’s College for specific purposes:

	Balance at				Net	Balance at
	1 September				investment	31 August
	2022	Income		Expenditure	gains and	2023
					transfers
	£	£		£	£	£
Repairs and Maintenance	200,000		-	(78,244)	78,244	200,000
Fund
Fixed Asset Fund	4,715,702		-	(398,316)	139,938	4,457,324
	-------------------	---------------		---------------	---------------	----------------
	4,915,702		-	(476,560)	218,182	4,657,324
	==========	=========		=========	=========	==========
	Balance at				Net	Balance at
	1 September				investment	31 August
	2021	Income		Expenditure	gains and	2022
					transfers
	£	£		£	£	£
General Scholarship Fund	462,179		-	-	(462,179)	-
Repairs and Maintenance F	200,000		-	(46,796)	46,796	200,000
Fixed Asset Fund	4,609,480		-	(429,997)	536,219	4,715,702
	-------------------	---------------		---------------	---------------	----------------
	5,271,659		-	(476,793)	120,836	4,915,702
	==========	=========		=========	=========	==========

The General Scholarship Fund represents income received from investments and is to provide scholarships to pupils on a discretionary basis.

The Repairs and Maintenance Fund represents monies set aside for the future upkeep and maintenance of the College site.

The Fixed Asset Fund represents the net book value of tangible fixed assets which are held for the long term operation of the School and are therefore separate from the School’s free reserves.

15. Analysis of net assets between funds

	Unrestricted	Designated	Restricted
	Funds	Funds	Funds	Total
	£	£	£	£
Fund balances at 31 August 2023 are
Represented by:
Tangible fixed assets	-	4,457,324	-	4,457,324
Investments	1,102,630	-	2,067,894	3,170,524
Current assets	6,179,929	200,000	-	6,379,929
Creditors: amounts falling due
within one year	(6,642,168)	-	(137,084)	(6,779,252)
	-------------------	-------------------	--------------------	--------------------
	640,391	4,657,324	1,930,810	7,228,525
	=========	=========	==========	==========

26

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 31 AUGUST 2023

15. Analysis of net assets between funds (continued)

		Unrestricted	Designated	Restricted
		Funds	Funds	Funds	Total
		£	£	£	£
	Fund balances at 31 August 2022 are
	Represented by:
	Tangible fixed assets	-	4,715,702	-	4,715,702
	Investments	1,248,064	-	2,249,299	3,497,363
	Current assets	5,257,254	200,000	670,731	6,127,985
	Creditors: amounts falling due
	within one year	(6,146,211)	-	-	(6,146,211)
		-----------------	-----------------	-----------------	-----------------
		359,107	4,915,702	2,920,030	8,194,839
		=========	=========	==========	==========
16.	Commitments under operating leases			Land and	buildings
				2023	2022
				£	£
	Amounts due in:
	Less than one year			1,083,000	1,067,750
	Between two and five years			4,332,000	4,332,000
	More than five years			48,888,000	49,546,000
				------------------	-----------------
				54,303,000	54,945,750
				===========	==========

The lease for the two prep school properties runs for approximately another 20 years, and the lease on the Main School property expires in 2125.

17. Related parties

There were no related party transactions to note in the current or prior year.

18. Control

The College is controlled by the Council of Queen’s College, London.

27

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 31 AUGUST 2023

19. Comparative Statement of Financial Activities

		Unrestricted	Restricted	Total
		Funds	Funds	2022
	Notes	£	£	£
INCOME FROM:
Donations and grants receivable	2	17,798	306,000	323,798
Investments	3	38,028	52,474	90,502
		----------------	----------------	----------------
		55,826	358,474	414,300
Charitable activity
Education	4	11,465,605	-	11,465,605
		----------------	----------------	----------------
Total income		11,521,431	358,474	11,879,905
		----------------	----------------	----------------
EXPENDITURE ON:
Raising funds		77,405	-	77,405
Charitable activity
Education		11,609,149	-	11,609,149
		----------------	----------------	----------------
Total expenditure	5	11,686,554	-	11,686,554
		----------------	----------------	----------------
Net income/(expenditure) before net
gains/(losses) on investments		(165,123)	358,474	193,351
Net gains/(losses) on investments		(99,570)	(115,203)	(214,773)
		----------------	----------------	----------------
Net income/(expenditure)		(264,693)	243,271	(21,422)
Transfers between funds	13/14	(967,300)	967,300	-
		----------------	----------------	----------------
Net movement in funds		(1,231,993)	1,210,571	(21,422)
Fund balances at 1 September 2021		6,506,802	1,709,459	8,216,261
		----------------	----------------	----------------
Fund balances at 31 August 2022		5,274,809	2,920,030	8,194,839
		==========	==========	==========

28