The American School In London Educational Trust Limitsd Financial Statements for the year ended 30 June 2022 together with Trustees, and Auditorfs Report Company Registration Number 784923 Registsred Charity Number. 312738 Page Trustees. Officers aThJ Ad¥l8er8 Truslges. report Dlrectors, report Irmlependent Audilorfs report statefflent of fina￿81 aclOvMles for the year ended 30 June 2022 26 Balance sheet 27 Cash fl¢Jw statement 28 Notes to th8 cash fiow statement Notes to th8 finanrAal statements Trustees, Officers and Advisors Trustèes The Directors of the Company who are also the Trustees of the charity and who hekl offic* during tha year. and lo the date of signing this report except where Othe￿1￿ stated, ware.. Mark Agne Dafren Allaway Chris Anderson Appointed 1 Septsmber 2021 Robin S Appleby Cynthia Bake Lu¢a Bassi Head of School, Resigned 1 JAnuary 2022 Appointed Vice Chair. 1 Juty 2022 Darcey Cravhord Alison Ferguson-woods Daniel Ha￿al Georg8 Hatrmann Coreen Hester Appolnted 12 August 2022 Appointed 1 Septemter 2021 Crynpany Secretary Interim Head of School Appointed 21 March 2022 Priya Hiranandani VandrevaL9 Stanford IDoc} Horn Mallika Kawr Sherine Magar-sawiris Rebecca Manuel Satha Mcvean Appointed 1 July 2022 Appolnled 1 July 2022 Acling Interim Head of School Appointed 1 January 2022 and resigned 21 March 2022 Liad Meidar David Novak Chair ￿signed 1 July 2022 Appointed l July 2022 Resigned 18 May 2022 Vice Chair. appointed Chalr 1 Juty 2022 Resigned 12 August 2022 Fialph Rivèra Oanny Rirn Erin Roth Russell Roth Hahnah Serninara Stephanie Schueppert Nikos Slathopoulos Kam Thakrar Stacey Towfighl Osi Um•nyiora McKenzre Webster Resigned 10 January 2022 Christopher ￿rtMan Irene Zia All trustees served on al least one of the six standing tt¢mmitte8s during Ihe year. Offic• co￿en R. Hester Interim Head of School Dir8Ctor of Finance John Robinson Principal Addr￿8 and Rryi$tw•d Offic• One waVer￿Y Place. London, NW8 ONP Trustees, Officers and Advisors Advlsots Banker8 JP MoTgan Chase 25 Bank Straet, Canary Wharf London. E14 5JP gardays Bank Plo I Chufchlll Place LoThJon. E14 5HP Solkltorn Forrer & Co. 66 Llncoln's Inn Field8 London. WC2A 3LH Mills & Reeves LLP, Botanic House. 100 Hills Road Cambridge. CB2 IPH Audltor Crowe U.K. LLP 55 Ludgate Hll London EC4KI 7JW InveBtmgnt managern J.P. Morgan fy) Victorie Embonkment London, EC4 P8rtn8rs CaiNlal LLP 5th Floor, 5 Young Street London W8 5EH Trustees, Report DIRECTORS. REPORT Thè Am￿r￿n School in London Educational Tru81 Limited IASL, also referred to as School) was incorporated as C4)mpany limited by guarantee in 1963 (company registration no. 78492318nd hence thè Trust8es. who are also mernbers of the company, hold no shares. In the event of the School's dissolution, Iheir liability for ils unpaid obligations is limited to £1 ead). The School is govemed by ils Mewnorandum and Awtides of Association. which were last amended in 2￿1. The School is al30 regislereal slatemgnts Un￿$$ they ar8 saisfi8d that th￿ give a true and fair view of the state of affaits of the charitable ujmpany and of ils net incorninglouigoing iesour¢*s for th81 period. In preparing these financial statements. the Trustees a￿ requlred to: select Suitable 3Lxounting policies and then apply them ¢￿)sIStenI￿. THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Trustees, Report observe the methods and piinciples in the Charity SORT.. make iudgments and eslimales that are re880nable and prudent.. state whether applicable accounting Standards have been followed, sublect 10 any (Jepartuies dI￿10$￿j and eyyained in the finanual stal8ments,' prepare finanaal statem8nls on the going concem basis unless it18 in8ppropriate lo P￿SuMe1hatth8eha[it￿ble coinpany will continue to Lwerale. The Trustees are responsible for keeping adequate ac￿Unting records that are suffiaenl lo show and explain the charitable company's transactions and disdose with reasonable aecur8Cy at any time the financial posriion of the harilable cotnpany and enable them to 8nsur8 that tho financial slalemenls comply with the Companies Ad 2006. They are also responsible for safeguarding the assets of the d)aritsble o)mpany and her￿e for tsking reasonabb steps for the prevention and detection of fraud antl other Irregularitles. Tha folk)wing $lal•ments have ￿an affirnied by each of the Tru51ee5 of the charitable company: sofaraseach Trustee is aware. there is no relevantauditlnform81ion (that is, infomation needed by Ihe companls auditors in connection with preparing their rgportl of whth th8 company's audf(OTS are unaware,. and each Trustee has tsken all the slep$ Ihat helshe ought lo have taken as a TTUStee in order to make hirnselflherself aware of any relevant 8udil information and lo establish that the company's auditors are awara of that information 08JECTIVES FOR THE 2021-22 YEAR Each year the Board establi8he5 specffic annual goals, whith arg lalw subject to t8V18w. In 2021. the Board established th8 following priorities in addition to its on-going responsibilities {see page 201. 1. Support the Ading Interim Head and Interim Head of Schocl during Ihe transition to new School le&lership and the rebuilding of Iwst throughout the School Community. laddad January 20221. 11 was felt that trust wa5 being rebuim in the communty. The Significant nurnb•r of parénl and 8mploy88 listening S8ssion$ hosted by Mrs. Hester. her attendance al the parent grade rep meetings. improved school communications. and parents being b￿k on Campus for school events has had a signfficanl benefirAal impact. 2. Initiate Head of School search (added January 2022). Completed- the Search Committee conducted a thorough search process, kept th8 communty informed throughoLrt the process, shortlisled ex￿lIent candidates and subsequenlty the Board appoinle(l Matthew Horvat a5 Head of School 518rting on 1 July 2023 . 3. Continue to oversee the managgment of risks lo the Sthool and its community du8 lo th8 impact of Covi&19 while providing ongoing Support to th8 Head of Sth(w)I for this cribcal work. Met- the Senior Leadgrship Team continued to do an excelknl in Cowd managprnenl. 4. Ensure that the ￿MMunICAtion and implefflentation of ASL'S DEI work 15 consislenl with 81rategic obiedj'ves and ASL'S rn1￿0n. DEI 8tslemenl and value$. THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Twstees, Report This was a work in progress and woufvj eA)ntinue into the next sch￿1 year. S. Conduct a sucrEssion planning process in orderto appoint a new Chair of the Board in the Spring of 2022. Completed- Ms. Erin Roth had been appointed Chair of the Board. her ty￿-year term beginning 1 July 2022. 6. Begin a review of ASL'8 institutional ￿)liCAtis induding considering such policies as part of the risk management procfr￿. Mrs. Alison Ferguson-woos and Mrs. Stacey Towfighi were progressing well with Ihls alongside Mrs. Megan Gomm, Director of HR. Thls would continue into the next school year, including ensuring the deve5opment of a (*ntral rggister of p)liaes with a schedule lor rev￿ and approval. PRINCIPAL ACTIVITIES UNDERTAKEN In addition lo achieving and ￿)ntinuIng to work on Ihe specific goals of the Board of Tru51e&s, the School taught on average 1,406 stud8nts in the year, spread over Its three division8'. Lower School {3621 MKldl8 School14821 H¥h Sch(x)11542) Total enrollmenl vras above the budgeted level for the year with high re-enrollment al 91% and 285 new students entering the School. The School's worfd-¢lass fa￿llY fosters confidence, ojriosity and well-b8ing in our students. preparing them for Irfe beyond ASL. Thè School develops kind, indep8ndent individuals who wll embrace learning and fijture challenyes with confidence and the courage lo acl. Th8 American curriculum emphasizes steady progression in core academic alea8. ASL offers an unusualty w￿e array of options for students to extend their kncwlgdge in savaral subjefA areas. ASL'S curriculurn is enhanced by broad offerings in the computer s¢ienc8s. and in the visual and performing arts. Students learn lo makè thoughtful Ch0￿e5 lo achi8vè the best possible balance between breadth and depth. 125 studen18 gradualad fiom the senior Class in June 2022 with students accepted lo colleggs and universities in èight countriès. FINANCIAL AID The School has a bng hlslory of enabling Students from all bad(9rounds lo benefft from its programs. Thg Board of Tnjslaes bèlieves in the importance C•f having a soaoeconomi(glly diverse student body and the benefft of ha￿ng a robust finanoal 8id budget year on year. It is a polnl of pride that our community supports this valuable endeavoui, and we are grateful to all our supporters who have Shown thelr dedication by contributing lo the pr(wJram. Growing support for finanual assistance has a pOSitp￿ impact on the comrnunty. Research shows Ihat students benefit from18aming 8longside others wlh differing views ofthe world. The School remains committed to attracting talented students regardless of their ffinana81 SOttsa￿on. Awards lotalling £5.672K12021, £5.057KI in financial aid and allowan(*s were made to 187 {2021. 1721 slud8nls in the year. Of these. 16212021, 1411 students received financAal help on a fomial 'means-tested' basis through the School's financial aid program, the objective of which is to assist qualified students lo attend the School regardless of their families, ability lo pay. The availability of financial aid is communicated wa the School'5 website, during the application pro￿$$, in parent meetings and in various arb.cles on School finances and adrnissions published bolh annually and from time lo time. THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Trustees, Report Parents appty for FrnanLial Aid through a formal pr￿esS administered by a confidential Financial Aid Commlttee. The Committee uses 8 financial model and priwples developed by the inde￿ndent School and Student Services for Financial Aid la US model of assessing needl lo detemiine financial need 8nd the amount of Fin8noal Ald award&J. The School sets 8 FinÈnaal Aid budget each year as part of its noim81 budgeting process. Subject to IhSs budgetary conslrainl, the Financial Aid Committee seeks to meet all fjnancial needs identified through the application prccéss. The highest awards were foi 99% 01 tuition fees and the average award wa5 £27,791. GOING CONCERN The School's long-lerm fina￿la1 viability is supported by a strong cash flow, significant cash balances, detailed financ4al projections, a suffioent level of reseNe$ and 8ndowment, a tradition of tundraising 8nd 8 good relationship wrth our key donors. The Board has reM￿tsd its liquidity. its Solvgnw. its loan covenants, high enrollment for the 2022-23 yéar, and the level of ￿serv8s. The School has, therefore. a reasonable eyclation that (( has suffiu.enl res¢)ur¢es to continue in operational existence for the foreseeable future which is al least 12 months from the date of the signing of this report. The Trustees believe that there are no material uncertainties that call into doubt the abilty of the School to continue as a going concern. Thè School was inspeded by Otsled on 15 De￿rnbel 2021 and in March 2022 Ihelr report was published stating that our rating has bèen changed from Outslandingto Requirgs Improv8ment because the school had not met three of the Independent Sthth)I Stsndards. The sthool developed an action plan lo meet those standards and Otstsd inspected the school again In Odckner and conduded that th8 school now meets the Independent Schocl Standards of il Qualtty of education provided, ill Spiritual, moral, social and curtural development of pupils and iiil Qualty of leadership in and m8nag8m8nl of schools. Addftionally, the inspecaors spent time on tt¥o other stsndards we had passed previously- a règular part of thew protocol and confimied that the School conlinups lo rneel the 51andard$ for its safeguarding ptactices and for the prowsion of information for all conststuencEs. The OFSTED parent Survey re5uts showgd that 96% would recommend thls school to another parent and that 98% of paients agree that their children are happy * the School. As we move forward we wll be relentless in continuing to improve the quality of education for our students. Inspections of this kind hèlp us to rele¢t on and refine our practice. The Sènior Leadership Team and the Board of Trustees will be working dosely wth our new heatj of school. Matthew Horvat. to 8nsure that ASL continues lo be a ￿ectiVe and dynamic Èducational environment for all. COVID-19 Impact on ASL during 2021-22 Covld Impact on Academlc Program and Flnanwj In the summer ot 2021, the start of the finanoal year, the School wa$ able to reopen the summer camp program. albeit with the actwities 81 a reduced level. This was muth appreciated by the parents and very muth enjoyed by the students. 11 also prowded sthool managets wf(h useful experien¢e about the most effective controls needed lo manage the full relum of all the students lo school. Al the start ofthe Sch￿1 year. the School ￿0pened as planned. putting in p18ce enhanced safety mgasures that were mole extensrve than the govemmgnt guidance, induding mandatory w8aring of masks for adutts and suggested wearing by students. These requirements which had worked successfvlly during the summer program, were revwed regularfy and urxlated over the coutse ofthe school year. For the eaty part ofthe school year, inlemational travel, trips and external activiti'es were postponed. Where possible, smalèr scale, more local activities were subslrtuled and, as govemment guidance a￿Owed, the School was able to incrè8s8 thè numb8r of extrathaJNicular actimbes for our sludents. THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Trustees, Report FOT the 2021-22 year, the Board had decAded that the tuition fees would remain at 2019-20 levels for 8 88cond year and that saving$ from previous years woukl bè us8d for ihe continuing cr)sls for additional physical safety measures, for potential CO￿(j-19 staff absences and rdated conlinggnc4e$, and that budgets would be provKl8d fcrf extra-curricular activities. The Sthool's reserves have been established for circumstsnces like these and W8Te to be called upon for any 1ernp￿ary shortrall. Communlty Support Fund The Board of Trustees established the Community Support Fund in May 2020 to offset tuttion. related fees and other assocAated costs for those families enrolled in the School most economically impacted by cov1￿19. The Fund continu8d lo operate IhroughoLrt the 2021-22 school year enabling 12 families Mth grants supporting 22 students {202￿21 g¢hool ygar.. 26 familie$ with grants SUPP¢)rting 44 students). Tuition grants ranged from 20% to ￿1%. and the total spent on gronis during the year was £28OK bringing th8 total allocatèd lo £765K. The resid4bal lunds of £253K were allocated to student financial aid 01 tho end of the year. EMPLOYEE INVOLVEMENT AND EMPLOYMENT OF PEOPLE WITH A DISABILiff The American School in London is an equal opportunities èmployer, and this is stated vnequivocally lo all pro$pe&ivejob candidates. In accordance with our Equal Opportunities Policy, the School treats all employees equitably, and employees or prospèrtive &mployees with disabilllles are given full and fair treatment, wilh r88sonable adjuslments and training opportunities implèmented where necessary. Additionally. the School has a range of dètailèd HR policies designed lo SUPPOrt our employèès and our charitable and business objectives and to ensure compliance wlh employment legisL2lion. These are reviewed al least annually by the HR Director. We consult with our ern￿OYeeS about future School activities and issues of direct concErn (such as terms and conditions) through a rangè of mechanisms. Employees are represented by faculty and staff associations who meet frequently wrth the Schoo5 administration to discuss employees. requests and to resolve concems. MA)en a decision is made that is likety lo affect the interest of employees. a fijll and thorough o)nsuhalion process is carried out. Exampl8s of such consultats'ons are.. annual Salary 8nd benefts meetings witt) staff assoryalions and the Senior Lead8rship Team {spe(afically, a minirnum of three meets.ngs kfore a final deasion is mad81,' briefings to employees at the beginning and end of the acadèmic year in alkschool meètings lo update staff on current issues and solicit feedbad(,' monthly ffleelings held be￿een the ts¢ully association and Head of S¢hool', and annual leadership surveys for employe8s to provide extensive feedback on the Èffectiveness of the Senlor Leadership Team. Leawng ernployees are also offèred the opportunty to partKipate in exil inlènri&ws, the results of whlch are presented to the Board of Truste85 annually. Results from the 2022 survay showed that 88% of ￿8verS rated their overall expe￿enCe as postive. wrfh 88°h indrcate that they would iecornmend working at ASL lo a friend. DIVERSITY, EQUITY AND INCLUSION STATEMENT The School'5 Dwersity, Equity and Indusion Ststèment which had been developed from surveys. focus groups and interwews with facurty, staff, students and families rem8ins a core tenant of ASL Community. The statement is both iefledive and aspiralional, relle¢ting calls for action, authentiaty and accountability lo create a better future for our stLKl8nts. Th8 American School in London {ASL) is commrtled to bU￿dIng and suslainiw a dIVe￿e s¢hwl GonNnunity. Ourslrength is in ourdivwsity. We are committed to provithng equrt8ble urt8ble 8ndinGluslv THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Trustees. Report access to allfac81s of sehoollrfe. ASL is dedic8t8d to fostering an inclusive schoolenvironmentin which members Gajry thriv& and b& themselves in a fully auth8ntic manngr. ASL upholds the right to an eduGalional 8xpeiieno6 in which diverse Iilentilies, gxwiences and ideas are recogniz&dandhuman dignityis affimthl. Dlv&rsitydevelops betterGollaboRtoTr, btsver8xplorers. stmnger communic81oTr, g￿￿ter innovators and deep&r tIN"nk&r3. From Ihe time childr8n ent8r th6 School, they le8m to ¢elgbrate their diffe￿nceS and simi"larifres, confmnl Ste￿otyPeS and tsases, and develop An unde￿I8￿dI￿ of histOfTcal and contgmpor8ryStrnggl8s and vlctorigsin the face of injust￿. Through th educBfyctrn, stuLlents arn &mpowered to advocate for a mor8 JIL￿1 wohd and acq￿re the skn'lls lo be couraggous Wial citizens. Creating 4 diversg, gquitable and inclusw& sch1￿1 community is an ever-evolvingioumey. We thallen ourselves to do this woth on a pgtEonal and inslitutic￿al lavel, 4Mth enpathy and mutU8lf&$pe¢t. Building and sustaining a dIve￿e, 8quilabl8 and inclusive school ￿MMUnitY is the responsibility of all. Our commilment to divernlfy, equi¢y and Inclus￿ holds the prnm￿e of a be1ferfUtu￿ for8llourchildren. COMMUMIrySERVICEACTIVITIES Wilh the waning of the pandemic. ￿mmunitY action has come b8ck in full force this year. In Ihe high 8chwl, long-standing partnerships with the Wnth. Ihe Adventure Play hub, Doorstsp. and PACE have expanded with new opportunllies for middle sthool Students to 98t involved. and rnany high schoolers joining these programmes. 87% ofth8 graduating cl8s$ of 2022 had partiapated in at least one community partnership prograrn. And with our new post-pandemic skills in digilal18aming, we have developèd online semce opportunities, wth our students continuing to leach small-group lessons lo disadvantaged young people served by the Ru9by Portob8110 Tnjsl. Our sludents continue to enrich leamlng 81 local schools, through ourweekly dance programs. and sustainable 8rt clubs at Barrow Hill Junior School, th8 naw rObot￿S programs at G￿rge Eliot primary and Pimlico Academy. and the weekly Saluri18y SHINE program for local middle school age students. We also were thrilled to hold our annual Young Power conference in person once again, drawing students from $ix Lc￿d0￿ schools to o)nn8Ct with each other and explore paths to explore the theme'Building the Worfd We Want to Live In." and we hosted over 200 young P80pl8 froffl 11 local sd)ools for or our most recent West Lcffidon Model UN conference helping local students build gkllls In researd). publK speaking and negotiation as th8y 8xpEored the lop ruth and Demouacy." Unfortunately, fcrfxl poverty in London continues to grow our Community Aditin PrLyJramme has provided new ways for our students to addrgss this challenge. High $chool¢rs have participaleil in a ne￿ weekty partnèrship to pack and distribute groceries through Grankille Community lfjtchen'8 Food Ald programrne. Grade 10 student advisories have been tsking turns organizing f(KJd drives for Se¢or%J Harvest. Middle schoolers hav8 also learn￿ about food banks arKI aid 50uelies in Iha k)cal area and have run a range of food and dothing drwe8 across th8 year, and in the lower school third gradets organvzed a major food drNe lor Granville Community Kitthen, while students in all grades partiapaled in the Wfap Up Lond￿ coal drive. as well as sending holiday cards to local eklers through th8 Cards for Care program. THE AMERICAN SCHOOL IN LONCON EDUCATIONAL TRUST LIMITED Trustees. Report In the middle school we also introduced our first weekly after-school communty partnerships for 7th and 8th graders at o local sites. PACE Fairfield and the Adventur8 Playground. We were very pleased by ￿r end to be able to renew ouc fifth graders conneciion with elders from the locgl community by hosling a tea. Slu¢Jents and parents 8UOSS the School have also been rlloved by the crisis in the Ukraine, and have worked with Ukraine House to ship a wide range of gt)ods to refUg￿S from ihat country, while part￿1panIS in our health classes and hlgh schod Community Action Seminar organrLed good5 and clothing drives for young refugees living in London, through our close ￿llabOratIOn with local charity Young Roots. Finally. our two Community Volunteer Days a￿ throving, wllh over 350 volunteers this spring contribullng time 8nd work al 13 local agencies in both the fall and spring of this year in an array of projects ranging from ènvironmental clean ups to painting and planting. GROUP STRUCTURE AND RELATIONSHIPS The Am8rScan Schcol in London Foundation (UK) Llmilgd 1$ a register8d charty and raises fund5 for the support of th• American School in London. The fv40 ￿MPanieS have shared adfflinislratron 8nd for this reason are'connected Chwib8s". During tha year, the School received £1,137K of donations from the eonne(led d)arty12021- £1,669K). The School ha5 a vtholly owned non-¢hariiable subsidiary company,. ASL Enterprises Ltd. (The SubSid￿ryI. ASL Enterprises Ltd was formed on 22 Augus12018 to carry OLrt trading actiwties fflainly in respect of the use of the School'$ sports facilrties when not in usè by the School. The Subsidiary's achiev8ments are covered in the relevant sections ol this port. The Sthool a¢tively support$ thé attainrnent of the highe51 standards in education. Through nthorking with other sd)ools and organising, as well as attending, professional development conferences, the School promotes improvements in educational standards. We also woperate with local sthools and tharitie5 to wMJen public acc8ss to the schooling we provide, to facilitate the use of our cultural and Sporting facAlities and to develop in our students an awaren8ss of the social conlexi of Ihe all-round education they receive at th8 School. All ASL parents are welcome lo become activè partiupants of the Parent Community Assoaation ('PCA'I committees and events. Through the committees ofthe PCA, parent5 organize the Global Fesuval. tho Booster Club (supporting alhlelic leamsl, Friends of th8 Arts and the bienni Aucth)n Benefit, in addition to 8 wiije range of ¢)th¢r a¢tivitses, which promote the mission of tho Sthool. RISK MANAGEhlENT AND PRINCIPAL RISKSAND UNCERTAINTIES In line with the CharIt￿$ SORP 2015, th8 Trustees participate in annual risk rnanagem8nt rewews. This year the Risk Group of Committee Chair5 again indivKlualty revi8wed over 100 risks identified under four hea¢Jlngs'. Strategic. Operational, Finanry81 and Compliance. The indiwdual evaluations were o)mpared and Thrculated for collectNe discusslon. The Rlsk Gioup also p8rformed a pre-rnortem lo proMd8 a holistic p8rspective on high impact risks. A ￿pOrt of the conclusions and wni(ig81ions was produced and Ihen ￿vieWed by thg AdminlFinan¢e Committee and subsequently the lull Board. Th8 mosl relevanl risk identified by the risk management process are-. il decrease in Student enrolmènt that (2n materially impact thè ffinanaal stability of the School- ill one off event that couhl create disconlinuily, being difficuh lo manage either in the key school personnel or in the School infrastrudur8 linduding cybersècurity attacks) as well as impact the exiernal rewtation ofthe Sthool. 10 THE AhAERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Trustees, Report Wlth respect to all the key rrsk5 identified. the Head of School and th8 S8nK)r Lèadèrship Team have been requested lo identify miliganls and initiate actions lo manage IhL)se risk as well as to constantly monitor the piogress of those activities and report lo the board any relevant matter in this respect. FINANCIAL REVIEVI AND RESULTS FOR THE YEAR The Consolidated Statement of Flnancial Actfvilles on page 26 shows how ￿ Sthool's incoming resource5 have been generated and how they have been expended during the year together with the re5uJts of the subsidiary company and th8 closing balan￿$ on e8th of the res•￿S. Thè School has a policy of breaking even over the three year period of the Covid Cyc￿. The acojmulated surpluses of the previous tsyo year5 have been allocated to expendiiure during this year. The net result forthe year was a deficit of -£4.9M12021- sucplus of £3.6MI. Totsl income incrèas8d from £43.1 M to £44.6M during the year. Ofthe net £1.5M gain. there w48 increased tuition fee ir￿orne of £1.3M. other educational income of £0.6M, non-ancillary trading £0.3M. bank and investment income of £0.3M, offset by a de¢xe8se in donations of£O.7M and a reduction in government grants received for furloughing staff unable to work£O.3M. Total resources expended wara £48.2M. which was an increase of £5.5M on the £42.6M of the prewous year. The Sthool's general operating costs inL¥eased by £5.2M an¢J In￿a$ad by a fvrthor £0.3M in costs a$$o¢iale¢J v4ilh non- 8n¢illary Iralllng. In addition. the School recorded a significant net investrnenl loss for the year of -£1.3M (2021- gairl of £3.2MI. The total unfvslricte(1 reserves de￿￿aSed by £1.9M. lh8 r8Strict8d reserves decreased by £0.6M and the endowments decreased by £2.6M. As shown in note 12. there are sUff￿ent nel assets lo meet the obllgations of the Restriclgd Resèrvès. Net cash inflow from operations for the year was £2.1M12021- £6.5M) as shown in the Cash fiow Slalement on page 28 with the cash and cash equivalent balances al the level of £22.1M compared lo £37.8M last year. The explanation lor the fall in the cash equivalent balances of £15.7M is largely due to the purchase of Sterling short term credit bonds during the year. A¢xordingly. the balance on the Current Asset Investments increased by £14.4M during the year wrth a balance of £18.6M al the year end. The sub$idiary ￿MpanY income was £258K (2021- £17K) in the wod and the expense5 £192K (2021- £14KI Tesutbng In proffit of £66K (2021- £3K profftl. The finanual stslemènts and this Report cornpty with statutory requirements and the ststement of Recommended Pradicè: I'charities SORP {FRS 1021 J. RESERVES LEVELAND POLICY The School's total reserve3 of £64.3M cornprise £23.1M related to pèrmanènt endowment, £2.3M of 8xpendablg endowmènt, £0.3M of Restridéd Reserves and £38.6M of Unrestricted Reserves. These re8eTves are broken down further in Notes 12 and 13 where the purpose of the reserve, Ihg movement during the year and the balances al 30 Jun8 2022 ar8 Set out. The Plant in¢￿aS8d by £1.eM last year to enable works postponed from the 2020 summer lo be carried oul last year and the balancE has subsequenuy reduced by £0.7m to £2.3m and 8 new Applied Retums fiom Inveslrnents has been designatsd with funds 01 £2.Sm of rètums from the Pemianent Endowment. The Unrestricted ReseNes of£38.6M are represented by £54.3M of the nel book value of fixed assots less the associated fijnding by bank bans of £27.OM leaving free reserve5 of £11.3M. However, in accordance with the sch￿￿,8 Resewves Policm. the Unrestricted Reserves are wiewÈd and May thèn bè d8sign81èE1 frjr spècffic purposes as set out in THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITEO Tru5tees' Report Note 13a). Specrfic reserve5 provide funds for fvturg expendilurg or potential conting8naes id8ntrfied through the Risk Revigw are called Designaled Reserves and the major reserves are lden1rf￿d in the School's Reserves Policy. These D&sOgn81ed Reserves tol8lled £13.4M at the end of the year. The target range is normally belween £8M lo £12M but in the light of the Tisk assessrnenl and e¢{￿Orni¢ uncèrtainty, bt was agr8ed to inuease the reserve levels. The Reserves Policy recognises the nee(1 to est8blish an unrestricted operating ie5erve to cover the financKal risk lo the School Irom 8ny short-temi decline in enrolment income due lo general economic factors beyond the School's control. Thi5 Designated Reserve 15 called the Enrolment R8s8rve. Enrolment levels have fluctuated signrficanlly over the history of the Scho(A and the tsrgel level of th8 reserv8 15 reviewed annually and hlslorfcally has been sel at b￿￿een 8% and 16% of luibon income. The Board considers the reserve of £5.35M to be adequate at a level of 14°A of tuition incL)me. The Trustee5 a￿ tx)mmitted to 8ssuring the Sthoofs long-term physical viability and financial heatth and so have established a lOn￿terM Oesignaled Fa¢ilrties reservo. This provides funds 8ith8r to pay down debt incurred to fvnd capit81 proSect or to fund new facAIty projects. Otthe reserves al th8 end of the year, £1.7M is Sel aslde for the repayment of the outstanding loan in 10 years, lime. The Sch(x)l also has a De$ign*ad Plant Raserve to ensure ihal il ha5 funds availatle lo Coverthe co$l8, which lluctuate annually. of the long-term maintenance plan lo help assure quality of ils buildings and knlities. The value of this reseNe has dec*eased thbs year lo a￿Unt for works originally deferred from the previous summer. Those work5 were def8rr8d due to the uncertaintses over the imposition of lockdown and soci81 distanciThJ in thè periods for contracting and performing works. In addition. the School Maintains its Emergency Bullding and Equipment R&s¢rvg lo provide funds for 8m8rg8ncy repairs and improvements. induding for physThl. cyber and health securfly. The School has a Staff Cost Reserve. which will allow it to abso￿ some additional c0516 of reorganising work if employee ill health or circumstances requlre li. The School Telains a New Initiative reserve lo allow the Head of Sthwl lo take athantage of an opportunty and respond to bcal changgs. Wrth the difficult year for the Sd)ool, approxlmatsty half of th$ fvnds were expended in the year, £209K. and the remaindèr are axpected to be spend during this loljowing year. The B08rd re¢J)gni8e8 that the School is faang uncertain tirnes and has set up a furiher resefve lo enable the Schixtl lo fa￿ any unidenlTfied challenges that m8y emerge from the drfficult economic siluation with rising utility prices, resource SCa￿ty and political uncertainty. A8 8 re8uIt. the 808rtJ decKled lo apply £2.5m from the a￿uMulated retums in the permanent endowment lo ensure that the￿ were fund8 avai18bie in the Applied Relums reserve lo meet any rlsks arising from market, ee4)nomlc and pol￿￿1 volatilty. Notes 12 and 13a) to the financlal Statements set out the DeswJnate(l R8serv8 balances at 30 June 2022. thè movements during the year and the antirypated uses of the ￿sarVeS in the future. 12 THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Trustees. Report IMVESTMENT POLICY AND OBJECTIVES The perrnanent endowment has an investment objgctNg to generata an annual r8tum in Sterfing of inflalion IRPI) plus 40A after expenses ovèr the loro term. Partners Capilal were ihe investment managers for the pormanenl endowment for the year and fvnds were Iransrtioned. 8$ ￿hedUled. from the prewous investment managers. JP Morgan, overthe cours8 of th8 year. JP Morgan remain as investment rnanagers of some privatè èquity inwstments. There are no speoffic restrictions on the th)mpany's ry)wers in respe¢t of the endowed investments, which are administered in accordance wrfh It￿ Tiusle8 A¢J 2000. The School has also decided tr) invest £15 milli¢)n from its cash balances into sterlintrdenomlnated short-lem) cre(Ilt funds managed by BlackRock and Legal & General. The amount inveslod is sourced from our positive working capital cycle. The credit ￿ndS P￿QmInantIY inv8St in investment-grade bonds with malurilies shorter than five years. We beliève we ¢8n e8rn highèr retums than bank deposrts typically pay with an acceptab￿ rlsk profile and mark-t(Fmarket volatilrty. The School also decaded to invest £1.675 million of th• loan repayment reserve with Partners Capf(al. 5in¢e the P8(bal loan iep8ymenl 18 not du8 until November 2029. For the year Ihefe was an unrealised loss of£970K. The mark- tckmarket loss is primarity attributable to rising interest rates 8nd seo)ndarily attributable to widening cyedrt spreads. INVESTMENT PERFORMANCE OF PERMANENT ENDOWMENT During the year. £7LNJk of inveslment gains from the strong perforrnance of the prior year were realtied and transferred ¢0 operations at the start of the year. During the year therè ware negative returns of £379K. A total of £27K bank and interest Ino)me was gengrat8d for the year froffl unreslricied ffijnds. TOTAL RETURN ACCOUNTING Th8 Charty Commission pemiitted the School to adopt the use of lolal rètum in rdation to its permanent enth)wment on 12 April 2007. The power pemirts the Trustee$ lo invest permanent endowTnents to maxirnise total return and lo rnake available an appropriale portion of Ihe total return for expenditu￿ each year. Until this po￿8[ is exercised, the lotal return shall be an"unapplied total return and remain as part of thè ￿Mianent endowment. The Trustees have used the values of the P6nnar￿I endowments al 30 June 2Tr)1 of £371 K lo represent Ihg 'Pres•rv8d Value. of the original grfts. In derAding how muth of Ihè unappliad total return to allocate lo inojme, the Trustees take into account the current expenditure needs ofthe School and the need lo ensure that future students ￿neffl too fr(¥n the endowments. Complianc£ with the stralegi&s sel out above and actual inv8strn8nt pertonnance is rewewed by the Investment Committee at least threé timès a year against the relevant benchmarking index. Durfng the past year, the Investment Committee mel four times. FUNDRAISING PERFORMANCE The tradition of philan1hropy and volunte8rism is an established and important aspect of life at ASL. The volunleer-wn Annual Fund solicitad parents of rajrrent students. our fa¢JJlty and staff. alumni and parents of alurnni who generously donated £1.4M of unre51ricted giwng this year. In addition, the School received a fijrther £0.6M in ￿$1￿cted gtfts for endowments and othw speaffic purposes. Fundraising is unt18rtak8n by affiliated organisations of. primarily, volunteer groups of parents and alumni, $upport8d by rnemb81s of the Advancement team. 13 THE AMERICAN SCHOOL IN LONLK)N EDUCATIONAL TRUST LIMITED Trustees, Report The School subs¢ribe$ lo the Fundraising Regulator and adheres lo the c￿le of Fundraising Practu when undertaking fundraising activity. There 8re no professional fundraising organisations used and so no monitoring pro￿sseS required. Our website oullines our wmplaints policy for the public and dgarly explains how an individual complain. We ￿CeIVed no ttjmplaints in the year. The Sthool lake8 ils respon$lbiltty lo anyono vtho might be vulnerable very seriously and thi8 will continue lo be o)nsdergd in th8 School's approach to fvndraising activty. VOLUNTEERS Our SchLYJt o)mmunty is Lx)ntinually enrlched by the volunteer actNiti8s ol rnany groups and individuals. The gtfts of limg and energy by the hundreds of parents, alurnni, pa81 parents. faculty. staff and sludants are signiffcanl (though we cannot calculate their monetary value). The Board is gr8t8ful to those vtho are dedicated lo serwng the School and helplng to enhan¢o its special qualibe$. The Board is especially Ihanklul lo all the many voluntegrs of the Parent Community Association IPCA} for the extensive community building events and programs prowded during a yeai when lfvperson g*hèrings were rèstricted due to Covi&19. The Board also thanks the PCA and the American School in London Foundations in the US and in the UK for their fundraising and generous grants lo the Sthool. GREENHOUSE GAS EMISSIONS The School's greenhous8 gas emissions for the 2021-22 finanual year We￿ equivalent to 986 lonngs of Carbon dil￿de equivalents {tCO2e) based on a vertfied usage of S.(￿3,758 kilo-watt-hours {kWh) of energy. If a¢¢ountin9 forzero ¢art)on 8lactricity, ¥thich has been procured through a REGO backèd contr8¢X, the total emissions were 572 lonnes of carbon dioxide equivalents IICQte). The School has undertaken 5 energy efficiency actions IEEAI in this reporting year. This report has been compiled by JRP Solutions Limit8d in line with the 'Environmental Reporting Guidelines. (SECR) Imarch 20191. All sites and companie5 in the UK have b88n included in the reporting even if they do not qualify in their own right. Onty environmental impacts from greenhouse gasses IGHGI a￿ indudgd in this report. Environmentsl impacts from water, resource effiaen¢y, ecosystem interaction and non GHG emission are e4)nsidered separately and are outsidg Ihg scope of this report. The report has been limited to scop8 1 aThJ scope 2 emissions scope 3 efflisstons lor giey fleet travd as required by SECR reporting. The data and information included in this report ha5 been cx>mplled and verified by independent C￿nSUltants. Grggnhous• Gas Emissions Table 1 below shows the GHG emissions for the School in I{￿ne8 of carbon dK)xide equivalent for the b3se year of 19120, last year and the cajrrent rewting year. Total emissions for 21122 0,986 tonnes of carbon dioxide equivalent. The general definitK)ns of the GHG S(x)pes are detailed below.. Scope 1- All DI￿¢¢ Emissions frorn the activities of an organisalion or under their conlrol. Including combustion of fu81 on site such as gas boileis, purchased fuel for vahicles and air-condf(ioning leaks. Scopè 2- Indirèct Emissions from eleclricty purchased and Used by the C￿ganiSa¢k)n. Scope 3- All Other Indire¢A Emissiws from actIv￿S of the organisalion. occurring from Sour￿ that they do not own or onlrol. Only Grey Fleevemployee car mileage daims need Including for SECR 14 THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUSTLIMITEO Trustees, Report Emission Source Units Bosèlinè Last R•port Year 19120 455.6 20121 559.3 21122 610.8 Gaseous Fuel Passen er Vehictes Sub Total Grid Electrici Sub Totsl Fleet Water su Water treatment Sub Total Emissions tC02e Emissions tcoie Ernis5ions IC02e Emi5510nS IC(be Emissions tC02e Emissions IC02e Ernissions IC02e Emissions tC02e Emlsslons tGO Emi$$ion$ tcoze Scope 1 456.2 461.1 461.1 SS9.8 409.4 409.4 611.5 366.5 366.5 0.0 Scope 2 Scope 3 12.7 18.8 12.7 18.8 TOTAL EMISSIONS 936.1 988.0 985.6 Variance to basellne Carbon Offsets & Green T8riffs Purchased TOTAL EMISSIONS WITH OFFSETTING s.s° 409.4 578.6 Emissions IC02e Emlsslons tC02è 413.1 572.6 936.1 V8ri8neè to basèlin 48.2% -1.1% Table 1: Greenhouse Gas Emlsslon IGHGI Absolute Emlsslon5 I,ow Flgur• I: Emlsslons Perfomiance Absolute Eml8slons 5co¢t I SEw2 Figure 2.. Emisslons P•rlorniance Including Z•ro Carbon Electriclty The relative ernissions perf￿manCe shcjwn b81ow is in lonnes of carbon dioxide •]uivalents ItCO2e} per student 15 THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Trustees, Report Rglatlvè Emisslon8 Q7 OA 21 Figure 3: Emi$8ions Perfom￿ne9 elatlve ErnisSlOn$ ofj Sttspry I Flgurn4: Emissions Performan¢• Ineludlng Zgro Carbon Electricity Unde Table 2 below shows the energy use for the Sthed in kilowatt hours (k￿1> for the base yèar of 19r20, last year and the current Teporting year. Total energy used for 21r22 was 5,063.758 kwh. Emission Sour¢0 Gaseous Fuel Uniis Baseline 19120 2,478,379 Last Year 20121 3.041,791 Re ortyear 21122 3,334,733 Energy kv Energy kv Eneryy s￿pe 1 Passengèr V8hrJas 1,961 1,831 3,014 Sub Totsl 2,48Q,340 3.043.622 3J37,748 s￿pe 2 Grid EleGtiicty Energy kw) Enèryy kwh Energy kw) Enorgy kwh Energy 1,803,963 1,756,055 1,726,011 Sub Total 1.803,963 1,756.055 1.726.011 So)pe 3 Grey Fleet Sub Total TOTAL ENERGY 4.284,303 4,799,677 5.063.758 V4rfan¢o to basellng 12.0% Tabh 2: Undgrlying Enwgy Us• 16 THE AMERICANI SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Trustees, Report Absoluttt Consum tlon Pertomia IYBw2&21 RwrnYllAr21 Flgure 5: Consumption Perfornian¢• The relalNe ct)nsumpthJn performance shown beh)w is in knkFWatt-hours (kwh) per studenL latlv on PerforrrFance Figur• 6: Consumption Perfomian¢e Intsnsi Rati The tables below 5h¢)w th8 intensity ratios for the organi5ation. Typ• Unlts Ba8elln• Last Year Report Year 19120 20121 21122 Occupancy kwsludents 3.173.6 3,534.4 3,601.5 Tabl• 3: Op•rAtlon Consumption Intensity Ratlo8 Units Basélin8 Last Year Report Year 19120 21Y21 21122 Ocojpanoy tCO.elStudenls 0.679 0.714 Table 4: Operntlon Emissions Intènsity Ratio$ Iwithoutzoro ¢arbon electrfcltyl 17 THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Trustees. Report Typ• Unlts Basolin• L•$t Y￿r Report Year 19120 21)121 21122 tCO2elStudents 0.693 0.426 0.407 Table 5.. Operation Eml88lons Intsnslty Ratlo¥ Iwlth zero carbon electrlclty} En Effi¢l ne Actlons Taken Durit¥J Ihe rewb't¥J yèar 21122 the followng energy efficaency actiJn8 were tsken". Category Title Deserlptlon HVAC Fan o)il unit Teplacemenvupgrade 2-pipe lo 4-pipe system upgrade and Fan Coil Unit r8placEment- Middle While offices (level 21- induding Tech, Mellon Library, Head of School officÈs 8nd Admissions offices. HVAC Fan coil untt replacementhipgrad8 2-pipe to 4-pipe system upgrade and Fan Coil Unit repla￿Ment- Lower school re￿ption offi￿S through lo & including Lowgr s¢hool Libra Lighting Upgrade fluorescent lights to LED School Centre house lights- IfuorèscAnt lights replaced with LED, includin full rewire. &balhroom renovations- 20-￿-Old bathrooms upgiaded with flush systems, lower ￿ergY hand dri8rs and automated soap dispensers. 6 bathroom renovathons Lighting Upgrade fluore5cenl lights lo LEO Student canteen IwJhts- fluorescent lights replaced with LED fittin Table 6: Eneryy Efficioncy 18 THEAMERICAN SCHOOL IN LONWN EDUCATIo￿L TrUST LIMITED Trustees. Report PROMOTION OF THE SUCCESS OF THE ORGANISATION TO BENEFIT ITS MEMBERS The TTUStg9s confirm that in al￿rdan(% wlth Section 172111 of the Companies Act they act in a way they consider m051 likely to achieve the purposes of the Company. In making this assessment, the Twslees consider the relgvanl *ion$ of the Board are de￿bed throughout the Twsletrs. Report. TakiTrJ the areas required for disckjsure in tum.. The likely consequ¢n¢os of any doclslon In th• long t•mi The long-t8rm sustainability of the operating model is considered by Ihs Trustees as Set out in the Going Concem Section of the Trustees, Report. Specffjcally, the Trustees consider both operating results and financial projections and the key risks that could n8gativety impact the 5U$tainabilty of the Sthool. Th8 AdminlFinance Committee and the Board ￿VIeW management information, budgets. forecasts. (ash flow projections and progress against budget on a regular basis. Risk management Ipagg 11>111 and the level of reserves (pages 11-121 a￿ also discusse¢J further in the rgport. b. The Intsrests of the compan￿9 employee8 In relati¢)n lo employee èngagament, the Trustees recEive regular reports from management on the employee morale and speak diredy to representatives of the fdcully and stsff associations wh8n rewewing the pay and o)ndilions with them annualty. Furlher details of employee involvement are disGussed in the report Ipage 81. c. The neod to fostsrthe companys busines8 relatlon&hlp8 wlth Suppliers, Customérs and others In relat￿￿ lo key stakeholder Èng8gèmènt, the Trustees work dosely with the fami16e8 of the students In ASL. The Trustees communicate wth farnilies r8gularly via email and prowde an annual report lo the ￿mmunitY which il recognises the time and r&8ourc8s our o)mmunlty of voluntggrs dgdicale to the School and li} describes the impacl of that generosity. The B08rd works closely with the Parent Cornmunty Association {PCAI whose members provide most of the volunteer effort for the School. Every year thè PCA hosts a General Meeling open to all families at whth there is a presentslion by th& Chair ofthe Board and other Trustees on the School's goveman¢e stru(aures and how tuttion levèl deasicsns are made. In acc4Jrdance with the American Sc4)ool in London's standard payment tems. supplier payment i8 due wittiin 30 days after the Sd)ool receives thè invoice from the supplier. d. Tho Impact ofthe compan￿¥ op•rntlons on the ¢ommunlty and thg envlronmgnt The Tfuslees have commissbned an independenl remew of energy use and has provided a rewew of greenhouse gas èmissions later in tha rèport in compliance with the Streamlined Energy and Carbon Reporbng ISECRI Report. The Trustees are proud of Ihe comfflunty serv￿8 activitias of tha stL*J8nts which are described in rnore detail in that 5e¢tion of the Trustses, Report (Pages 9-101. •. The deslrablllty of the company malntalnlng a reput•tlon for hlgh 8tsnd•rd8 of busln8$8 ¢ondu¢t The American Sthool in London tske8 a Zèro tolèrance approach towards fraud, bribery and corruption. 11 is ￿MmItted lo comp￿Ing wlth all appllcat4e law$ and regulations relating to fraud, bribery and COTruption. 19 THE AMERICAN SCHOOL IN LONDON EDUCAMONAL TRUST LIMITED Trustees. Report The need to act fairty as be￿0•n rn8mb8rs of the company. g. The Truslees understand the Charity Comrnissron requirements and und8rsland the need to avoid and manage potential conflicts of intecesl. The Company is limited by guarantee so does not hav8 share capital wllh the result that issues relating lo Directcf sharehohders or relalions be￿eeft maiority and minorty shareholders do not apply. FUTURE PLAWS The Trustees have approved the following specific goals for the School year 2022-23.. Ro$pon8lblllUes Support and evaluate the Head of School. Ensure ASL'S adherence lo its Mission Statement Indudlng monilorfn9 Student well-being, educatlonal expeiience and oUt￿mes. Ensure g0veMan￿ and man8gemenl over8ee ASL'8 ongolng complianc& all rdevant reguLgtory LN)di88 and acuedtting organizations. including the Department for Educa16oNOfsted and the Middle Slates Association IMSAI. SupFth the implementation of short, m8(Jium and k>ng-temi strategic iniliatwes and the development of peroc*j￿ strategic plans. Ensure finanaal welpbeing and prudent inslilulional management consislenl with Boar¢J govemance pdiues and applicable UK and US regulations and codes, including bul not limited to the Independent School Standards {ISSI and the Charity Commission for England and Vvales. Demonstrate support. stewardship and leadership through active partiCApalion in the Board's advancement activiiios. philanthropic cornmilrnenl lo the School, and engagement in defining ASL'$ culture and community. Promote exceptional Board govemance and leadership by ensuring that Board ￿mpOSItion is diverse and delivers the expertise and resources needed to effectivety serve the School. 2022-23 Priorilieg Independent School Standardslolsted Adherence Address the failuie5 noted in the 2021 Ofsted Report Ensure ASL'S ongoing adherence to and oversight of the ISS o In¢orporat8 ISS into Board cornmittees and roles Develop Board knowledge and skills ne￿SSary 10 Secure the ISS'S ongoing iM￿eMental10n Ensure the Schjol is thoroughly prepared for inspection8 by Ofsled and the MSA Work wth the Intarim Head of School to rebuikl trust and irnprove communication throughout the School communtty. Appoint a new Head of Schod #nd develop 8 ¢￿ar strategi¢ transititin plan to support the inc*)ming Head. Monitor and fflan8ge risks to the School and its community induding financial, lègal. and media risks, and the ongoing impact of Covid-19. 20 THE AMERICAN SCHOOL IN LONLK)N EDUCATIONAL TRUST LIMITED Trustees, Report MEW HEADOF SCHOOL In Odober 2022, the eoard of Trustees unanimousty voted to appoint Matthew Horvat as ASL'S next Head of School, effectiv9 1 July 2022. Matt was appointed after an extensive and rigorous sèarch procèss lead by a dedicated Search Committee, co￿haIred by tsyo Board members and including Trustees, faculty. staff. 8nd administrators, and 8UPPOrt8d by an extemal search firm. The seard) fim vlslled ASL in May to meet our community stsk8holders including parents, administrators. faculty. staff, trustees and students to prgpare a position destxiption for the nexi Head of School. The excellent, shoruisled candidatas were invited lo the school and had an opportunity lo learn about th8 School and lo meet and be questioned by our communiiy stakeholders. The Board are gratoful for the engagement and participation of the ommunity in the searth pro(*ss and for providing Ihoughtlul and thorough feedback which proved invaluable in making the deasion. The Board 18 confident that Mr. Horvat's will prowtje strong. Ihou9htftJl and inspirational le8dership. and value his commitment lo hogh quallty edur*lion and lo each stu(lent thriving. The Board has begun Iransllion planning with Mr. HoNal to ensure he is best pr8p8red lo begin his role al the Sthool 8nd looks lorward to welcoming him to ASL In Juty 2023. AUDITOR Crowe U.K. LLP has Indicated its willingness to be re8ppoinled as $tstulory auditor. This Trustees. ReFOrt, prepared under the Charities Ad 2011 and thè Companies Act 2006, was approved by th Trustees. includiThJ in their cap8cty as company directors 8pprowng tha Strategic Report ci)ntgined therein, and is signed ag authorised on its beha￿ by.. G&orge Halz Sefxetary Dat8.. 30 November 2022 21 THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Independent auditorfs report to the Members and Trustees INDEPENOENT-AUDITOR'S REPORT TO THE MEMBERS OF THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Oplnlon We have audf(ed the financial statements of The Amefican School in London Educational Trust Limiled I'the charitable company,) for the year ended 30 June 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Company Balance Sheets, the Consolidated Summary Income and Expenditu A¢￿unt, the ConsolKlated Cash F￿￿ Statement and notes to the financial statemen15, including significant accounting policies. The financial roporting framework that has b￿n applied in their preparation is applicable law and United Kingdom Accounting Standards, inctuding Financial Reporting Stsndard 102 Th8 Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our Opin￿)n thg financkgl S&￿ements.. give a true and fair view of the State of Ihg group's and the tharitable companls affairs as at 30 June 2022 and of the group's income and expenditure, for the year then ended., have bgen properly prepared in xcordance with United Kingdom Generally Accepted Accounting Practic8" and have been prgpargd in a￿rdan￿ with the requirements ofthe Compan*s Act 20C6. Basls for oplnlon We conducted our audit in a¢cord8nce wth International Standards on Auditing IUKI {ISAs (UKI) and applicable law. Our responsibilities under those standards are further described in the Audilorfs responsibilities for the audit of the financial $tatem8nls section of our report. We are independent ol the group in accordance with the ethical requirements that are relgvanl to our audit of the financial Statements in the UK, including the FRC'S Ethical standard, and we hav8 fu￿111ed our other ethical r8sponsibililigs in a￿ordance with these r8quirom8nts. We believe that the audit evidence we have obtained is sufficient and appropiiate lo piovide a tsa$￿ for our opinion. Con¢luslons relating to going concarn In audf(ing the financial statements, we havg Concluded that the Iruslee's use ofthe going concem 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 condrtions that, in(liv￿￿a1ty or colledively, may cast signifie8nl doubt on the charrtable companls or the gTOUP'S abilty to continue as a going concern for a peri(yJ of at1oa$t ts¥elve months from when the financial slatem8nls are authorised for issue. Our responsibilili8s and the rgsponsibilities of the trustees with respect lo going concern are described in the re18vant sections of this report. Other information The trustees are resFonsible for the other information contained within the annual repcrt. The other infomialKJn comprise5 the information included in the annual report, other than the financial statements and our audTtor's report thereon. Our opinion on the financial slatgm8nl$ does not cover the other infomialion and. gx¢ept to the extent otherwise explicitly stated in our report, we do not express any form of assurance con¢lu¥ion thereon. THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Independent auditorfs report to the Members and Trustees Our rasponsibilty is lo read the other inf0m￿tIon and, in doing so. consider whether the other infomialion is materially inconsistent with the financial statements or our knowledge obtained in thg audit or olhermse appears to be malgrially misstated. If we identify such material inconsislencffts or apparent material misstatements. we are required to detemiine whether thi3 gives riso to a material misstslement in the financial statements themselves. If. based on the work we have performed. we conclude that there is a material misstatgmenl of this other infcfmation. we are required lo repLYt that fact. We have nothing to report in this regard. Opinions on other matters prescribgd by the Companles Act 2006 In our opinion based on the work undertaken in the course of our audit the infcimation given in the trustees, report. which includes the directors, report and the strategic report prepared for the purposes of company law, for the financial year forwhi¢h the financial statements are prepared is consistent with the financial slalements., and th8 strategic report and the directors. report induded within the trustees. report have been prepared in accordance wrth apPI￿able legal rquiremenls. Matters on whlch we are raquired to report by exc•ption In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identif￿d materi81 misslalemenls in the strategic report or the directors. report inclLKled within the trustees, ￿pOrt. We have nothing to report in respect of the following matters in relatKin to %thich the Companies A¢t 2006 requires us to report to you if, in our opinion.. adequate and proper accounting records have not been kept., or the financkql statements are not in agreement with the aCc￿nting records and retums., or certain disclosures of trustees. remuneration specrfied by law are nol made,. or we have not received all the information and explanatK)ns we require for our audit Respon81bllStlos of trustee5 As exp18ined mre fully in the trustees, re8ponsibilities smement $et out on page 20, the Irustses (who are also the directots of the charitable company for the purposes of company law) are ftsponsible for th8 preparation of thg financial statements and for being satisfied that they grve a true and f8ir view, and for s[￿h intemal control as the trustees determine 1$ neeessary lo enable the preparation of financial statements that are flee from material misstatement, whether due lo fraud or error. In preparing the financial ststements, the trustees are responsible for assessing the charitable company's ability lo continue as a going concem, disck)sing, as appluble, matters related to going concern and using the going concem basis of accounting unless the trustees either intend lo liquidate the charitable Company or lo ¢ease operations, or have no realistic a￿ernatIVe but to do so. THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Independent auditor's report to the Members and Trustees Audltorfs responslbllltles for the audit of the financlal Ststements Our objectNeB are to obtain reasonable a88urar)co about whether the financial statements as a whole are free from material misstatement. whether due lo fraud or error, and 10 Issue an auditor's report th* indudes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance error aThJ are conside￿1 material if, individually or in the aggregate, they could reasonably be expect￿ to influence the ￿onoMiC decisions of usgls takon on the basis of these financial statements. Detsils of the extent to wh￿h the audit was considered Capab￿ of detecting irreguLarities. including fraud and non- complrance with laws and regulations are set out belry•V. A further de8criplKJn of our rgsponsibilities for the audrt of thg financial statements is Icraled on the Financ￿1 Reporting Council's web8f(e at.. www.frc.or .uklauditorsres onslbililies. This description fcim$ part of our aUdrt0￿s report. Extent to whkh the audlt was con8ldered capable of detsctlng Irregularities, including fraud Irregularities, including fraud, are instances of nonpected to detect non-compliance with all law$ and regulations. Use of our report Thi8 rewt 18 made solely lo the charitable compan￿$ members. a$ a b¢xly. in accordance with Chapter 3 of Part 18 of the Companie8 Act 2CQ6. Our audit work has been undert8ken so that we might slate to the charitable company's members those matters we are required lo stale to them in an auditorfs rep)rt and for no other purpose. To the fullest extent pemitted by law, we (Jo not accept or assume resporssibility to anyone othgr than the charitable company and the charitable company's members as a body. for our au(lit work, for this report, or for the opinions we have formed, Nicola May Senior Ststutory Auditor For and on behalf of Crowe U.K. LLP Slalulory Audrtor London Date 26th January 2023 25 THE AMERICAN SCHOOL IN LONDON EOUCATIONAL TRUST LIKIITED Consolidated Statement of financial activities For the year ended 30 June 2022 Notes Totsl Unre31ricted Restricted Other Endowment 2022 Total 2021 Total In¢om• from Charftable actlvldes." Fees recelvable £.000 £,000 £.￿0 2a 40,296 40,296 38,905 Other educational income 2b 1,278 1,278 639 Other trading a¢tivities Non-ancillary trading Otherlncome 2c 258 258 17 2d Government grants In¥￿tments 12 12 348 Bank and investment incorne 26 739 765 479 Donations andlega¢les Donations 1,396 43,266 178 405 1,979 44,588 2,681 43,069 f78 1,14M Expendlture on Raising funds.. Ne￿-ancI1jary Fun¢Jraising u)sts FIna￿ing costs 1258) 12581 117) 1606) 1665) 16861 1686) 11.6091 {686) {6861 11.610) 11,3091 Charitable a¢tiYitie5.- School operating costs Totsl resources expended Net investment loss (46,2931 (47,9021 12091 1761} 1260) 1261) {181 (46,5711 141.336) 118) 148,1811 {42,8451 1379} (5881 3,224 1761) Net Short Tem Investment loss Net in¢omel{expenditureTr befoye transfèrs Transfers betsveen reserves Net movement In resep￿S In th• y￿r {S,e￿I 183) 747 (4,942) 1534) 16161 {3,2601 12,513) 14.9421 (1,8131 3,648 Balances brought forward at 1 July Balanc•s ¢arri•d fonvard at 30 Junp 40,405 38,592 905 27.9)6 25,393 69,216 64.274 65,568 69.216 289 All ofthe abova are rew8s8nted by continuing cperalions. Th8ra arg no recognised gains or loss8s other than those shown in Ihe statement offinancial activities. The aC￿mPany1￿g note5 are an integral part of this statèment. THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Consolidated Group and Company Balance Sheet For the ygar ended 30 June 2022 Notes Group 2022 Group 2021 Company 2022 Company 2021 £.000 £.0 £,000 £,000 Fixed assets Tangible assets Investments 54.292 27,033 81.326 $4,610 25.883 80,493 54.292 27.033 81,325 54,610 25.883 80.493 Curront assots Sl( 20 20 28 Debtors 10 1,317 16,S63 22.133 40.033 1,(￿1 2,024 37.790 40,903 1,317 16.563 22,062 39.962 1,058 2,024 37,784 40.895 Current a&sel investments Cash at bank and in hand Creditors.. Amounts falling due within 1 year Ngt Current assets 11a 130.0851 9,949 125,1791 15,724 130.0131 9.949 (25,171) 15,724 Tolal as••ts loss currnnt liabilitigs 91.274 96,217 {27,000) (27.0001 91.274 127.0001 96.217 {27,0001 CroditoTr: Amounts falling due afier 1 mre than 1 year T¢)tal net assets 11b 64,274 69,217 64.274 69,217 Financed by.. A¢¢umulatsd Unrestricted reserves= General 25,192 13.399 38.591 29.148 11.257 40.405 25.192 13,399 38.591 29.148 11.257 40,405 Designated Total unrestricted reserves 13a Restricted 13b 290 290 905 Endowments 13f 25.393 64,274 27,9C 69,217 25.393 64,274 27,906 69,217 The nel result forthe financial year dealt wrth by the financial slalements of the parent chanty was a Loss of £4.872K12021..Surplus £3.648KI. The fin8ncAal Statements on pages 26 10 48 werè 8pprov8d by the Board and authorised for issue on 30 November 2022. STgned on behalf ol th• Boanl Erin Roth, Twstee Cyrthia Bake, Trustee The accompanying notes are an integral part of this balance sheet. 27 THE AMERICAN SCHOOL IN LONDON EOUCATIONAL TRUST LIMITED Consolidated cash flow statement For the year ended 30 June 2022 Notes 2022 2021 £,000 £,o(M) £,000 Not cash Inflow from 0￿ratIOnS Nel cash provided by opèrating actiwlie8 2,111 Cash flowB from Inves￿ng activitlos Payments for tangible ffixed assets Paymen15 to acquiie inveslm8nts Ngw monèy waiting investment Investrnent Income {Divldends and interests) Disposals of in￿stments Bank interest aTrJ investment income receivable Nol ¢a8h provldgd {usod In) InTMStlng actlvllles {2,153) (894) 116,6751 11161 {89) 11751 7C 765 479 117,480 399 Cash fflow from flnancing activiiie$ New endowment 514 Bank Interest payable N•t cash provided by flnanclng activities 16861 {686) 1281) {172) Change in cash and ca8h equivalent in the repotting period Cash and eAsh equivalents at the beginning of the pericKI Cash and cash equivalents at thè end of the reporting pèriod 115.650) 37.790 22.140 S.898 31.894 37,790 Ca8h flows have not been affected by ¢harity18w restridions on the use of restricted fvnds. The accompanying noto$ ar8 an integral part of this cash flow statement. 28 THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Notes to Cash flow statement Rgconclliation of not in¢omg to n•t cash from opernting *c￿VItIeS 2022 2021 £,000 14,9381 £,000 3,848 Net inojffle before transl8rs Elimination of non-operaling cash )lows'. Investment income 17651 1825} 1479) (552) Endowment donat(ons Finance costs Unrealised inve51ment105s1galn> Depreciation (In¢reasglldecTease in debtors Increasel(Decrea5el in creditors excluding bank loans Ilncreaselldgcrga$e in current asset investments Increasel(Decrea881 in stocks 1,349 2,472 {2551 4,9 (5191 (8) 13.224} 2,792 375 3,132 91 {21 7,049 2,111 Ngt cash Inflow from oporatlon$ 6,469 Analysis ol ¢a$h and cash •quivalents 2022 Cash Ilow 2021 movement in the year £,0 {9,6511 (5.823) {15,474) £.(NJo 28,453 9.337 37,790 CBsh at bank 18.619 3,514 22.133 Deposits Analysls of movem?nt in loan• 2022 New loan Repayment £,000 2021 £.000 £,000 Bank loan falling due within onè yèar Loans falling due after yaar Total loans 27,11)0 27,000 27,OC(I 29 ThE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Notes to the financial statements (continued) 1 Summary of accounting poll¢le• The financial statements have teen prepared in accordance with tha FinancAal Reporting Standard applicable in the UK and Republi¢ of Ireland IFRS 102), the Companies Act 20[￿ and the Stst•m8nt of R8comm8nded Prath'ce applicable lo charities preparing their a(￿UnIS in accordance with the FRS 102- effective 1 January 2015. The functional cJJrren¢y of the Sthool Ss consldered lo be Great Britain Pounds IGBPI because that is the currency of th8 ptimary eLX)nomK environment in vthich tha School operates. The financlal statemenls ol the School are dfgwn up under the hi$tOTKal rnsl basis of accounting. as rnodified by the revaluation other Investments. The Financial Statements present the consolidated stslemÉnt of financial actiwties (SOFA), the conSol￿ated cash fflow stalefflenl and the consolidated and Charity balance sheets cL*rnprising the consolidation of the School ils wholly owned subsidiary ASL Enterprises Limited. No separate SOFA has b8an presented for the Charty alone, as permitted by Section 408 of the Ctynpanies Act 20(￿. The Charity has taken advantage of the FRS 102 exemption frorn preparing its own 8ntity statement of cash Ilows. The SchcL)I has tsken advantage of thè exemption under section 408 of the Companies Act 2006 not lo publish its own In￿me and expenditure a￿OUnt. The Sch¢)ol is a Public Benefit Entity regi8tered as a charty in England and Wales and a company limited by guarantee. It was incorporated in 1963 (Company No.. 7839231 and registered as a charity with the Charities CommlssK)n (Chanty No.. 3127381. Critical accounting judgemBnts and key sour¢e8 of 08tlmats and unc•rtalnty In the application ofthe acLountiro policies, Trustees are raqulred to make judgement, estimates, and assumptions about the carying value of as5e15 and liabilit￿S that ar8 not readily apparent from other sources. The eslim8les an(J underfying assumptions arg based on historical experience and olhei factors that are con$id&red relgvant. Actual results may differ from these estsmates. The estimates and undedying assumptions are reviewed on an tsngoing basis_ Rewsions to accounting estimates are re￿gnised in the period in which the estimate 15 rewsed rfthe rethsion aff8Cts only that périod or in the per￿ of the ievision and future perK>ds rfthe révisions aff8cted current and future periods. In the view of th8 trustees, no assuMpt￿n8 ¢encemlng the future or estimation uncertainty affectiThJ assets or liabilitie5 at the balance sheet dale are likely to result in a mat8rial adjustment to their carying amounts in the next financial year. A summary of thè principal accounting policAes, all of which have been applied consistendy throughout thg year and the preceding year, is set out below. a) Financial w)slrumenl$ Basic financial instrurnenls are initially recognisetl at transacllon value, subsequently m8asured, and amortised with the exc4plion of investments, which are held at fair value. Financial assets held at am￿tised (x)st comprise cash at bank and in hand. togèther wth trade and other debtors. A specific provision Is made for dobts for wh￿h recoverability is in doubt. Cash at bank and in hand is deffined a$ ￿1 cash h8ld in inslant access bank arLounts and used as worknng capital. Fln8n¢i81 liabilitEs held at 8m¢)rtised ￿st comprise all creditors except soaal seujrity and other taxes and provisions. Assèts and liabilities hèld in loreign currency are translated lo PourKls Slèrting al balance sheet dat• at an appropriate year-end exthange rate. THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Notes to the financial statements (continued} bl Tan￿ble klxed assets Tangible fix6d assets axcèpt invèstrnent assats. ar8 shown at cost and d•pr8ciatèd at 8nnual rates ￿lCUlated lo writ8 off Iheir cost less estimated residual values over their expeded useful INes, the rale5 for which are curienlly as follows:_ Long Leasehold Uqnd 0.4% straighl-line Building Extension and Refvrbishmenl 5°A straighl-line Motor Vehldgs 25% straight-line 2% straight-line 1(k25Qh straight-line 50% straight-line Buildings Furniture and Equipmènt Laptops provided to students No depreCIat￿n is charged on freehold land. Exp8nditure on fixed assets, which cost more than £250, is capitalised. CI StOGk st￿ consists primarity of slalionery supplies anil Is slated at late81 Involce ¢x)sl, whith 8pproximale8 purcha8e co81. dl Taxalion As a charity. the sch￿I.s income falls within the exernptions granted by thg Corporation Tax Act of 2010. The School is therefo￿ not subject to taxes on Income and chargeable gains. el Penslon costs The company contributes to the purchase of supp￿rnentary pension rights staff as describe(l in note 14. Pension costs are charyed on 8n actyuals b8S18. O Accounling forforngn cuffency tr8nsaGtions Certain transactions tske pla￿ in fore¥n currenGy and are translated into slerfing * the rales of exchange al the dale of the Irarwdion. All foreign Curren￿ balances al the year-end are translated into slerfing at the year-end rat8 of exthange and any gain or loss is credited or charged to the ststemenl of finanoal a¢tiwties. gl InVest￿nts The portfolio of inve51menls in funds is stated in the ffinanrAal statements at market value. Investment In￿Me indudes gross dividends receivab￿. Re81ised and unrealised capitsl gains 8nd klsses are shown separately in the balance sheet. h) Fees r9¢9ivablg Fegs receivable rep￿$ent luitbn fees, transport, summer school and other fees ￿￿1vable by the company during the year- see nots 2. Fees are recognised on an 8ccrvals basis. Fees received in advance represonl amounts received pr￿r to the company's year-end in resp8Ct of th8 next samester. Foes receivable aro slated after dgducting financial aid. Restricted donations for finan￿al aid a￿ disd08ed 8epar8tely. il Donations Donations are reeognised on a receNable basis when there is entitlement, the amount ean be measured and receipt is probable. 31 THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Notes to the financial statements (continued) Donali(w)s for spe¢ffic projg¢t$ are disdosed as restricted donations. When restricted donations are received for ￿￿￿tal ex￿ndItU￿ projerts they are a¢¢ounted for in a r8strict8d resarve unlil thè purc*)a8e of the a8set or the expenditura on the specrfic proiect occurs. At this point. the funds and any subsequent funds recewed are transferred lo unTestric*ed fijnds as corporate reserves- see note 7. Donations for gndovrnant funds ar8 disclosed separately as part of R8strict8d R&s8rves on tha statement offinanaal actiwites- see notes 13b lo 13f. Olher donations. vthich indude Annu81 Fund re¢eipts. are shoL¥n as unwtricted donations. 51 Totsl Retum accounting The Charity Cornmission pemitted the School to adopt the use of total retum in relat￿n lo its pormanent endowment on 12 ￿ri12007. The pcwer perrnits the tru51ees to Iiive51 pemanenl endowments lo ma￿Mise total return and lo make availablg an approprlale portion of the lolal retum for expenditure each year. Until this power is exerdsed, the lolal relum shall be an unapplied total retum and remain as part of the permanent endowrnenl- 3ee note 13c. The trustees have used the values of th8 pèrmanènt èndowments at 30 June 200110 repr6￿nt the 'Pr8seTved Valuè. of th8 ￿lgInal gifts. This was just after receipt of ils second major gift of permanent endowment. In these Financjal Siatements. the allocation to income is now shown as Oth8r Incom8 rather than in pravious years as a transfer b&fv4e8n reserv88. k) Allocalion of costs to cats￿$16S of rnsourcgs expanded All expenditure is aco)unted for on an accruals basis. Costs are allocated between the cost of generating fijnds and the Bctual cost of charitable actNilies by identfying the direct costs related to these adiwties. Any indirect costs are then apportioned on the basis of staff time. Charitable expenditure costs are also allocated lo the drfferenl categories by direct costs where possiblg. Some compensation costs arg apporboned on Ihg ba$1$ of salary costs per category. Support costs comprise all the costs of running the non-teaching and non-fund-raisirvJ departments of the School suth as Admissions, communic8b.ons Finance. Salaries represent 90% of support costs. Depreclalion Is Induded as part of wemises ￿Sts. Goveman¢e costs are only those related lo the management and administrdtion of the ¢haiity. They indude both direct costs of the gxiemal oudit and any18gal advic8 to the Trust88S Flus a PTOPOrtion of management and othgr stsff lim9 togelher with related overheads. l} G￿ng ConGem The School's bng-1grn1 financial wiability is supported by a strong cash flow, &gnificant cash balanc8$, detailed financial projections, a SUffi￿ent lev81 of reserv8s and 8ndowmant and a tradition of fundraising and a goctyj relationship wrfh our key donor5. The Board has rgviewsd ils liquidiiy, its solvency. it$ loan covenants, enrdmenl for the 2021-22 year, volatility and increased level of reserves. The School has, therefore, a reasonable expectation that it has suffiaenl resources to o)ntinue in operational existence forthe fOieseeab￿ future which is at ￿ast 12 months from the date of the signing of this report. The Trustees believe that there are no material uncertainties Ihal Call into doubl the abillty of the School to Gontinue a$ a going concern. THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Notes to the financial ststernents (continued) 24 Fo0$ r•celvab 2022 £,000 44,386 15.325) 12601 38,801 £,000 42,904 (4.877) 15051 37,522 Gross tuition fees Less= Finanaal Aid Less.. Community Support Fund Net luot1￿ fees Other f8e$'. Gross Transportalion Less: Finantial Aid 1,096 199 12 Nel Transportation Applications and retentions 897 659 724 38,905 40.296 2b Other oducatlonal incomo 2022 2021 £,000 170 £.o)o 81 Gross Trlps Lèss.. Finoncial Aid (241 14) 76 Net Trips Summer, After School programs and other incom8 Less= Finanual A 1.255 11241 1,130 1.278 610 149) Net Non-Trips 639 2¢ Non4nclllary Incomg 2022 2021 £,000 258 £,000 17 Trading income from membership fees and swimming Ipsson$ 2d Govgmmgfrt grdnl 2022 2021 £,(xJo 12 £,wo 348 Grants r818t8 to thè fijrbugh of stAff not wothng from the pèriod July 202110 June 2022 THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED 33 Notes to the financial statements (continued) 3 Anaty81s of total rgsources oxpend Staff costs Other Depreclatlon 2022 2021 Total Total £,cw)o £,OCK) £,CC4) Charftabh A¢tfvltles Teaching costs Welfare 25.410 2,143 948 4.173 1,082 2.024 9S8 29,583 25.403 3.225 2,778 5,798 1,095 5,665 Premises 2.472 Trans 178 1,135 6.760 163 Support cost8 Govemance costs Community Support Fund 1.212 110 260 9,762 260 505 34.337 2,472 46,571 41,336 School opernting costs Costs olraising fvnd$ Fundraising o)sts Flnancing costs Non•ancillary 100 686 173 85 258 17 35.076 10,633 2,472 48,181 42,645 4 Net IncoffllnBlloutgolngl r•sourc•8 lor the ￿ar bofore transfers Net incomel(expenditurel for the year before transfers 18 stsled after ch8rgltvJ'. 2022 2021 £,cK)o 2.472 £,000 2.792 Depreoation ol tangible fixed assets Auditors, remuneratK)n audit services 31 non-audit servlces Financing costs Stsff co$ls- see note 5 886 35.076 32,306 THE AMERICAN SCHOOL IN LONDON EDUCATIOMAL TRUST LIMITED 34 Notes to the financial statements (continued) 5 Staff Co¥ts Some members of the teaching and administrative staff a￿ employees of the Ameri¢an School in London Foundation (the Foundatfon), which is based in the Unitéd Ststès and are s8condèd lo the American School in London Educational Tnjsl Llmiled {the'Trusf) under an agreement between the iwo companies. Under that agreernenl, the Trust agrees to piovide the necessary funds to cover these 5taff8' cost8 arxl to act as agent of the Foundation in respect of certain aspects of its employer obligations. Total staff costs during the year amounted to.. 2022 2021 £.000 29,436 3,099 2,541 35.076 £,000 26.987 2.842 2,478 32,305 Wages and salarles Swal security costs and Nl contributions Othèr pension Cp)sts The number of persons employed in the operation of the Sthool during the year calculated was a$ follows: 2022 21f21 2022 2021 Average Average 258 FTE Number FTE Number Tgachers and Teachers. Support Administration 259 242 240 110 112 107 Total 371 350 347 There were no teachers on sabbatThl leave during 202212021- 11. During the year. there ware 2 iadundancy or lerniination paym•nts1£507KI which was owing at tha y8ar-end12021- £75K). The atove numbers include O {2021- 01 employees who were joinuy employed by the School and the subsidi8ry. 35 THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Notes to the financial statements (continued) The number of employees, including those of the Foundation, whose emoluments, including benefits in kind (excluding deferred compensation, pensions and pension contributions) exceeded £60,000 were: ||2022|2021| |---|---|---| ||Number|Number| |£60,001 - £70,000|29|19| |£70,001 - £80,000|50|42| |£80,001 - £90,000|46|53| |£90,001 - £100,000|36|44| |£100,001 - £110,000|9|13| |£110,001 - £120,000|2|5| |£120,001 - £130,000|4|4| |£130,001 - £140,000|2|1| |£160,001 - £170,000|2|2| |£170,001 - £180,000|1|1| |£180,001 - £190,000|2|-| |£190,001 - £200,000|1|2| |£200,001 - £210,000|0|1| |£230,000 - £240,000|1|1| |£390,001 - £400,000|-|1| |£940,000 - £950,000|1|-| ||186|188| The total employers’ pension contributions to the School’s and Foundation’s defined contribution schemes amounted to £1,639K (2021 £1,678K) in respect of the employees above. ||2022|2021| |---|---|---| ||£,000|£,000| |Aggregate employee benefits of key management personnel||| |(the SLT including the Head of School has expanded to 14 members from|3,131|2,251| |12 last year)||| ## **6 Transactions with Trustees** The Trustees, with the exception of the Head of the School, the Acting Interim Head of School, and the Interim Head of School, received no emoluments or reimbursement of expenses. The Head of School in accordance with the School’s Memorandum and Articles of Association is a Trustee. The Head of School remuneration including pension contributions and benefits-in-kind was as follows: ||2022|2021| |---|---|---| ||£,000|£,000| |Salary|396|396| |Deferred compensation|507|-| |Other remuneration including utilities and accounting|55|7| |Pension contributions|40|40| |Total|998|443| THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED 36 Notes to the financial statements (continued) The Interfm Head of School remuneration indudlng Fensijn contributions and benefits-in￿nd Wds as folk)ws'. 2022 2021 £,000 Salary Dgferred CDrnPBnsation ljher remun8ration including utilities 8nd attounting Pension contsibut￿S 116 11 Total 128 The ActiThJ Inlwim Head of School reMu￿ratIOn including penslon contributions and benefits-in-kind was a3 follows.. 2022 2021 £,coo Salary Defgrred compensalion Other remuneration induding utilities and accounting Pension contribuuons 77 Total 7 Transfern bet4¥een mer¥e8 The transfers from restrKted to unrestricted reserves totalled £281 K {note 13bl. In athlition, £1,013K was allocated to inc47me from Endowment with £7C()K from Pennanent Endowrnent Inole 13dl and £313K from Expendable Endowment {note 13e).An adtlltlon81 £2,500K was transferred from the Relums from the Pemianenl Endowment lo the Designated Reserves. 37 THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Notes to the financial statements (continued) Tangible r￿ed assets- Group and Company F￿ehOld Building Extension and Long Leasehold Furniture Motor Totsl and Vehicles R&furbishm8nt Equipment £,000 £,OC¥) £,000 £.000 Cost Al 1 ju￿ 2021 Additio 15.453 30 67,742 1,485 2,430 8,325 638 23 93.973 2,153 Disposal AI 30 Junè 2022 15,483 69.227 2.430 8,%3 23 91,126 Depreciation Al 1 Juty 2021 Disposal Ch8rg8 At 30 June 2022 730 31.976 6.133 17 39,363 79 1,571 777 809 545 6,910 23 41,834 Not book value At 1 July 2021 At 30 June 2022 35 766 1923 14,675 35.680 1.885 2,053 54,292 AI 30 June 2022, the Company has no capital ojmmitments aulhorised and contracted for but outstanding. in respect of land and trwildings iefurbishment12021 was also NIL). THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Notes to the financial ststements (continued) Inv8stmwts- Group and Company 2022 2021 Group & Company £.000 Group & Company £,000 £,000 £.￿0 Market value ol inveslmonts brought forward 018K*)sal of cash brought forward Purchases in the year New money waiting investments Investrnent inojme reinv8Sted 25.883 22.818 {901 f.675 {424) 116 89 39 175 Disposals in year Gross investment gain in the year Management fo9 Net investment gain Ilossl in year ma￿•t value carried forward Cost of investment5 cairied forward 17CKJI 226 (280) 3,637 1133) 114 15881 27,033 22.520 3,224 25.883 20,819 The total unrealised gain included above was £4,513K at 30 June 2022 (2021- £5.063KI. Group & Group & Company Company 2022 2021 Investments comprls8: £,(Y)o £.(K)o Listed Invg8tm•nts Fix8d interest 4,023 Multi-a58el dass 6,993 11,156 Equities 11.245 Alternativ• inv•gtm•nts 8,733 11,078 Cash 151 548 Forèx Grojp inve$tmenls 27,033 22.883 Investment in subsidi8ri8S Company invosimonts 27.033 25,883 In addition lo the above Inveslmenls, other endowment funds are invested as (yjrfenl ass61 investmenls. The main investments for the Group were managed by JP Morgan Private Bank al 30 July 2021 and18rgely Iransfgrred to Partners Capital LLP by 30 Jun8 2022. THE AMERICAN SCHOOL IN LONt)ON EDUCATIONAL TRUST LIMITED Notes to the financial ststements {continued) 10 Debtorn Amounts falling du• wiihin one ygar.. Group 2022 Group 2021 Company Company 2022 2021 £.oDo 794 £,QDO 794 £,oJo 773 Olher debtors Prepayrnenls and accrued income 773 $23 288 523 288 1.317 1.061 1,317 1,(￿1 11 Cr¢ditors al Amounts falling due within one year Group 2022 Group 2021 Company Company 2022 2021 £,000 22.768 1.991 6,328 30.085 £,oc 20,552 1.751 2,876 25,179 £.000 22.766 1,991 5.257 30.014 £.000 20,552 1.751 2,868 2S.171 Fees received In advance {nole 1hl PAYE and social security cre(litors Other creditor5 and accruals b) Amounts due after one year- Group and Company 30 June Inueas8 in 30 Jun 2022 loan 2021 £,000 Loan falling du& aftw one year 27.000 27,(KhJ The loans were refinanced in November 2020 for a 31>year tsmi, with the new loan having security on cert8in propty at the School. The interest on th8 loan is al a fixed rate. Th8 ffirst ￿paYment instslmenl is after 10 years in November 2029. 12 Alloca16on of Group Net A￿ets The nel assets as at 30 June 2022 are held forthe varlous funds as follows.. Net Current Loans after Tangible F￿ed Assets Tolal Assets more than 1 year Investments £,o(xJ £.000 23.070 £,0 £,000 23,070 2,324 290 Pemianent ondowm8nt Expendable endowment Restrictèd reserves 2.324 Designated enrolment reserves Designated faulities reserves Designated reserves- other Dgsgn8led reserves- applied total return 5,350 1.687 3.862 2,500 224 1,463 2,500 Gan8ral reserves Totsl reserves 12,1001 127.0001 127,0001 $4,292 25,192 54,292 64.274 27.033 The invaslment poli￿ with resped to endowment reserves is summarlse(l on page 13. The notes on pages 1 f to 12 descrtbe the purposes of the various reseNes held. 40 THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TrUST LIMITED Notes to the financial statements (continued) 13 ReconcSllation of op•ning and closing Group and Cofflpany rgsarves a) DesvJnated reserves Transfer lo Balance 30 New ftTnds Resources general reserve &ilance June 2021 designated expended £,000 June 2022 £,oc s.3￿) 1,687 973 £,000 5,350 1,112 973 £,&]0 Enrolment reserve Faul￿eS reserve 1,261 16661 Building & Equipment reserve Plant reserve 3,011 1812) {1.1131 2,286 Prolonged Disabilty reserve Staff Cost reserve 347 347 New Initiatives reserve 410 12091 201 Applied Returns Investment 2,500 4,961 2,500 13,399 11.257 1,706) (1,1131 ErtmlmentTeseTho The enrolmenl reserve fepresenled approximalety 14% oftuilion income al 30 June 2022. The School undertakes regular rewews of the level of this rgserye. Whilg enrolmgnl in the last Couple of years has been stable, enrolmenl is impacted by external economic factors. Historically. enrolment has fluctuated signifiCan￿Y and by up to 100 students from year to year. This reserve will enable the Sch)ol to maintain its staff and operating o)sl levels in th8 short-t&mi lover 2-3 years) if there wère a fall in enrolmenl. F4cIlil￿S This reserve is held lo help fvnd futur8 facilities developments and for tha r8paym8nt of the long-tsm10gns in 8cex)rdance vitih the Sthool's reserves policy. The amounts transferred lo this reserve during the year were the budgeted amount for the caprt81 repayments and the loan interest on the loans before refinancing. The resoLTrrces expended of £686K were in iespect of kian interest. The carry forward balan￿ represents the schgduled a¢cumulalion of fvnds in preparation for the repayrnent for the first instalrnent repayiro the loan capital. 8uilding and Eq￿pffl6rt The building and 8quipm&nt reserve is a r8s8nts set up to provid8 fijnds for emergency or unanticlpated repaits or improvements. Plant reseThe This reseNe is a rolling reserve lo ensure that the School has fvnd$ available to tx)nlract for significant buil(Jing rnainIenan￿ projects. vjhich run into Ihg following financial y8ar. The balance on thls resem is planned to be spent Sn the next two years. Pro10n￿d DisabilitytPS8Th9 The prolonged disability reserve has been established to provide funds for employ88s who suffer prolonged disability during the period before the School's insurartt scheme comes into effect. Staff Cost fgserye This reserve was created to PrO￿de addibonal funding for exceptional compensation ￿)Sts. New Inrfialive reserye This reserve w8s creal8(I to provide fvnds for pik)t proigcts that it is hoped will enhance the curriculum andlor the leaming enwronmenl at the School. These projects can be approved after thè setting of the annual budget prO￿s5 and so would not be possible without these contmgency funds. The projects are usually piloted over 1 or 2 years before they are assgs$ed to see rflhey will become part of regular school Operatic￿$. Applied R8turns Investment The Board set up a further reserve lo enab￿ ihe School to face any unidentified thallenges that may 8mefge from the ¢Jrfficull economic sttualion with rising uts'lty prices, resource scaidty and political uncertainty. THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED 41 Notes to the financial ststements (continued) 13 Ro¢on¢iliatlon of openlng and ¢I￿1n9 re$•pm l¢ontlftu•dl b) Restricted reserves Transfer Balance Incoffling resourc8S Resources betsveen Balance 30 Jung expended 8erves 30 June 2021 2022 £,000 488 £.000 25 £,000 1260) £.000 (253) (2811 534 £,000 Communlty Support Fund Regtrlctsd re￿1¥¢8 418 153 2￿ 905 178 1260 29] The Community Support Fund was iniiTaled to provide discounted seats for students in ASL families suffering temporary financial hardship as a resutt of the coronavirus pandemic. The fvnd has closed and the r8maining balance has been transferred for use as Finan¢ial Aid. The Restrided Reserves comprisg mainly funds received from the American School in London Foundatlons in the US and the UK The remainlrvJ ￿serveS are expected to be spent in the next 1-2 years. The transf8rs betsveen reserve5 are in a￿OrdanCe with the accounting policy 11. c) Pemianenl Endowment funds- Stslgment of total retum Calculation of total return: 2022 Invpstrnont rethrns In year Investment In￿Me 39 Caprtal gains Ilossl Total unrealiBed rpturn for year Disinvestmènt frorn JPM Investment 379 13401 700 T¢)tal rethrn for the year L8ss.' Allo¢al*)n lo incom8 Movemènt in unapplied total relum for the year Unapplied total retum to reseNes Unappli•d total return 30 June 2021 360 {7001 1340) 12,500) S.C63 2,223 30 June 2022 Add: Prese￿e￿ value at 30 Jun8 2001 A¢JdilKJns Since 30 June 2(￿1 371 20.474 20.846 23,069 Total preserved value at 30 June 2022 Total valu9 of p•miangnt •ndowmert Note 13d THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED 42 Notes to the financial statements {continued) I Pemanenl Endowment fvnds Allc¢allon Balan Total Allocation to Balar￿￿ 30 June Donalions Return Disonveslmènl to Income Reserves 30 Jun8 2021 2022 £,000 9,9SO £.000 27 £,000 1131) (21 (161 (184 £,000 269 £.0 12691 151 {321 1378) £.coo I1,0￿) £,000 8.856 166 Student Financial Asslslance Factliliès Fund Communtty Enrid)ment Fund Faojlty and stsff Support 1,202 13,990 32 1,186 12,3C6 378 11,500) General 562 (7) {3401 15 115) 700 5S5 23,069 25,882 27 71XS e) Expendatde endowment funds: Transfers Balan￿ 30 bets¥88n ResouT¢es June 2021 Reserves Donations Expended Allocation Balance 30 to In￿rne June 2022 £,000 389 £.(MJO £,000 £,000 {1n £,oco coc 372 Communty Enrichment Student Financial Assistance 873 253 378 13131 1,191 761 Faculty and Staff Support 762 2,024 253 378 18 313 2,324 THE AMERICAN SCHOOL IN LONOON EOUCATIONAL TRUST LIMITED 43 Notes to the financial ststements (continued) f) Tot81 Endowment 2022 2021 £,000 23,C69 2.324 Perm8nent Expendable 25,882 2,024 27,906 25,393 Stud8nl Finan￿alASSi818￿Ge The eamings will be used to provide financkql assistance lo students and to SUFVOrt student partiapation in the lrfe of the School once enro11￿1. F8u{it￿8 Fund The eamings will be used lo support and enhance ihe facAlilies al ASL. Community EniiGhment Fund The earnings wlll be used to support programs and activ((￿$ thal 8UPPOrt a senso of ￿MMunity wlhin the ASL famity or that Serve lo enhance the relationship of ASL to its neighbourhood or lo London. Faculty and Staff Support Fund The earnings will be restricted to Support the F8cuIty 8nd Staff ofASL at the disc￿tIon of th8 Board. 14 P•nslon arrang•mènts The School o)ntsibules towards retirement beneffts in respert of employees who have opted lo partldpats in a deffined contribution plan. A range of investment funds Is avallable. School's c£Jntribuiion is 10% of basic salary provided the employee contributes at least 5% ofsaLary. The School also provides funds lo the Foundation for its costs incurred for a similar US retlrement benefits p18n in respect of employees of the FounrJ81ion. The employer's contributions lor both the Sthool and the Foundation are charged in the Statemgnt of Fin8ncial Acbvities In the period in which the salaries lo which they relale are due. These contribullons in the year amounted to £2,535K (2021 £2,478KI at 30 June 2022. Under lemis of the plans, ihe School has no liability beyond the agreed rale of its Contri￿￿0￿$ each year. The Sc*ool and its subsidiary ha￿ 8nt8r8d into joint contracts of employmènt for ¢ert8in Staff. The pension contributions aré paid by the School on b8halfof these staff. 15 Subsidiary company and related party trdnsactions Th8 Sthool owns all of the issued share capital ofASL Entsrpri5e5 Limited, Company Number 10339)54 incoip¢)raled in England in August 2016. This company carries out trading activiiies on behalf of the School. ASL Enterprises Limited had * tumover of £257K, and £66K profft before tsx in the year ended 30 June 2022 {2021- £3K profft before tax). At 30 Junè 2022, the Company had shareholders. funds of £1. Tho Company ran swimrning lessons and a mefflbership program. In the period lo 30 June 2022. the School tharged £187.7K trj the subsidiary c(¥np8ny forthe wovision ofstaff and administratwe seMce$ and licence lees. There wgre no other rela￿￿ party Iran88Ctions in the year ended 30 June 202212021- niD. THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED Notes to Ihe financial statements (continued) 16 Flnanclal Instruments Non-financial Fair Value AmOrtiS￿ cost insltuments 2022 Total 2021 Tgtsl £000 £,0 £,000 £,000 Tangibl& assèts Investments 54,292 54,292 26,918 54.610 25,792 28 26.918 Stock 20 Debtors 523 1,317 24.573 14,239 1,061 39,903 Cash at bank and in hand 24,573 Short term investments 14.239 Lloblllti Creditors due within one year Creditors due after onp year 130.0851 7,000 131,6981 {30,0851 27,000 64,274 (25,179) 27,000 69,217 41.157 54,815 The income. expendlture and net g8lns antj losses reco9nLzed in the Statsment of Financial Actiwtres during the year to 30 June 2022 by catsgory shown below.. Fair 2022 Total 2021 Total Value st £.000 39 £,oJo £.cNJo 175 Investment income 39 Foreign exchange gains on evaluall)n 133 133 Net Lo88 on inve8tsnents 1.349 1,310 11,349} 1,177 3.224 3,408 133 THE AMERICAN SCHOOL IN LONDON EDUCATIONAL TRUST LIMITED 45 Notes to the financial ststements (continued) 17 Comparatlve fund statsments for yoar •nd•d 30 Jung 2021 stat•m•nt of Flnanclal Acllvltles Notes Total Reslricled 2021 Unrestricted other Endowment Total Incoming re$ourc8S Income from charitsble acllvltl•5.' £,000 £,000 £,(K)O £.000 Fges raceivable 28 38,9)5 38,905 other educational income 2b Non-ancillary trading Government grants Bank and investment income 2c 17 17 2d 348 348 24 455 479 Donations 662 514 2.681 43.Cf9 41,438 662 Resou￿$$ exp9ndgd Cost of rnlslng fvnd8.' Non-ancillary Fundraising costs Financing costs 11n (5941 {171 {806) 112} 1686) 11,297) (6881 11.3091 (121 Charltable a¢tivfties.' Schoo5 operating costs Total ￿8oUrceS expended Net investm8nt gain 140,fj81) (593) (621 141.336) (821 {42,6451 3,224 3,224 Ngt incomellexpndlturel before transfers 1540> 57 4,131 Transfers bÈfvM8n res8rv8S 1,151 611 (1761 11191 (9751 3,156 Ilet movement In resor￿ In the year 3,648 Balancos brought fonward at 1 July Balances carriod fovlnrd at 30 June 39,794 40,405 1,024 905 24,750 27,906 69,216 All ofthe above are ￿p￿sented by continuing operatK)ns. There were no recognised gains or losses other than those shown in the 31atemont offinancial actiwtvas. T accompanying notss ar8 an integral part of this siat8ment. THE AMERICAN SCHOOL IN LONWN EDUCATIONAL TRUST LIMITED 46 Notes to the financial statements (continued) Allocation of Group M8t Ass•ts The nel a&sels as al 30 June 2021 are held for the various funds as follows= Net Cu￿ent Bank Loans due after Tangible Frxed Assets Total knels more Ihan l year Investments £,000 £,C4)0 25.883 £,oc £,000 25.882 Permanent endowment Expendable endowrnent R8stricted reserves 2.024 2,024 Designated enrolmenl reserves Designated facilities reserves Designated reserve$- other General reserves 5.350 1,112 4,795 1,538 15,723 5,350 1,112 4.795 54,610 29.148 54,610 69,219 127.C¥J)I <27,0001 Total res8rv8S 25,883 Re¢on¢iliation of opening and closing r•serves a) Designale