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2023-08-31-accounts

Company Registration Number: 00759327 Charity Registration Number: 312855

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the School, its Trustees and Advisers 1 - 2
Trustees' Report 3 - 14
Statement of Trustees' Responsibilities 15
Independent Auditors' Report on the Financial Statements 16 - 19
Statement of Financial Activities 20
Balance Sheet 21
Statement of Cash Flows 22
Notes to the Financial Statements 23 - 46

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE SCHOOL, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2023

Trustees Sophia Coles, Safeguarding Governor3
Dr Diana Salazar (appointed 1 October 2022)2
Dr Bernard Trafford, Chair of Full Governing Body1,2,3
Richard Hill (appointed 14 June 2023)1
William McDonnell, Chair of Finance and General Purposes Committee (resigned
30 November 2023)1,3
Dr Rebecca Mooney, Safeguarding Governor (resigned 14 June 2023)2
Gautam Shashichandra Dalal (appointed 22 March 2023)1
Professor Timothy Jones2
Joanna Van Heyningen (resigned 14 June 2023)1
Kirsty Von Malaisé, Chair of Music and Education Committee2
Jeffrey Hewitt1,3
1
Finance and General Purposes Committee
2
Music and Education Committee
3
Nominations Committee
Company registered
number
00759327
Charity registered
number
312855
Registered office
Aldenham Road
Bushey
Watford
Hertfordshire
WD23 2TS
Company secretary
Adam Wroblewski
Independent auditors
MHA
Statutory Auditor
6th Floor
2 London Wall Place
London, United Kingdom
EC2Y 5AU
Bankers
Coutts and Co.
London
WC2R 0QS

Page 1

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE SCHOOL, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Solicitors Harrison Clark Rickerbys Ltd Ellenborough House Wellington Street Cheltenham GL50 1YD Farrer and Co. 66 Lincoln Inn Fields London WC2A 3LH Senior Leadership Paul Bambrough - Principal Team Adam Wroblewski - Bursar Paul Hoskins - Director of Music Tom Burns - Vice-Principal Kate Cayley - Director of Boarding Ziggi Szafranski - Head of Sixth Form and Designated Safeguarding Lead Michael Long - Director of Teaching and Learning Emma Bantock - Director of Operations

Page 2

THE PURCELL SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ REPORT FOR YEAR ENDED 31 AUGUST 2023

The Members of the Purcell School Governing Body present their Annual Report for the year ended 31 August 2023 under the Charities Act 2011, including the Trustees’ and Strategic Reports, under the Companies Act 2006, together with the audited financial statements for the year.

REFERENCE AND ADMINISTRATIVE INFORMATION

The Purcell School (“the School”) was incorporated on 30 April 1962, changing its name to the present name on 6 June 1984. It was incorporated as a Company limited by guarantee not having a share capital, with the registration number 759327. It is also a registered Charity under the Charities Act 2011 with the charity

number 312855. In 1980, The Purcell School was designated by the Secretary of State for Education as one of five specialist schools in Britain under what is now the Music and Dance Scheme (MDS). Currently, the Purcell School is one of the eight schools in the UK supported by the MDS.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Documents

The Purcell School is governed by its Memorandum of Association last updated in 1999.

Governing Body

The Governing Body is self-appointing, with one-third of its Members required to retire by rotation at each AGM. The first appointed, or longest serving since last reappointment, are the first to retire. Members retiring by rotation can be re-elected.

and the conservatoires), secondary and tertiary education, the wider world of the arts, architecture, banking, business, law, accountancy, medicine and government service. The Governing Body aims to provide a balance between those who know the School and the local area very well, and those who, whilst committed to its aims, come from further away and are able to provide special insights, experience, political sensitivity and objectivity. It is the policy of the Trustees to include a former student on the Governing Body provided that they have the requisite skills and experience.

It is the policy to recruit Trustees from a wide variety of professions to enhance the Governing Body’s strategic judgement. New Trustees are elected by current Members of the Governing Body. The professional backgrounds of current Trustees encompass music (including performance, teaching

The recruitment process is managed by the Nominations Committee. The chief requirement of all Trustees is to accumulate sufficient understanding of the School, its aims and its modus operandi, to enable them to use their knowledge and their professional background in agreeing the strategic direction of the School.

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THE PURCELL SCHOOL, ALDENHAM ROAD, BUSHEY, HERTFORDSHIRE WD23 2TS | WWW.PURCELL-SCHOOL.ORG

THE PURCELL SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

Recruitment and Training of Trustees

New Trustees are inducted into the workings of the School through briefing sessions with the Chairman, Principal and Members of the Senior Leadership Team. In addition they are provided with guidance from AGBIS (Association of Governing Bodies of Independent Schools), ISC (Independent Schools Council), BSA (Boarding Schools’ Association) and the Charity Commission. Trustees are advised of and encouraged to attend appropriate external training workshops and presentations.

All Trustees have access to the papers for all Trustees’ Committees to allow them to stay informed of current issues within the School. Staff make regular presentations to the Governing Body or its Committees on a wide range of topics. A programme of gubernatorial visits is arranged to allow Trustees to gain first-hand experience of the School at work; their observations are shared with the Principal and reported on at a full Trustees’ meeting. During the visit the Trustee checks the school’s SCR (Single Central Record). Dr Rebecca Mooney (resigned 14 June 2023) serves as Safeguarding Trustee in a joint capacity with Sophia Coles with particular responsibility for Child Protection.

Organisational Management

The Members of the Governing Body, as the Charity Trustees, are legally responsible for the overall management and control of the School. They meet three times a year.

The work of implementing their policies is carried out by three Committees:

The day-to-day running of the School is delegated to the Principal and Bursar. The Senior Leadership Team comprises of the Principal, Bursar, Vice-Principal, Director of Music, Director of Teaching and Learning, Safeguarding Lead, Director of Boarding, and Director of Operations. The Principal and Bursar attend all Governing Body (excluding the Nominations Committee) meetings and Director of Music attend the Music and Education Committee meetings.

Remuneration is set by the Board, with the policy objective of providing appropriate incentives and of rewarding fairly and responsibly individual contributions to the School’s success. For teaching staff, the School aims, where possible, to mirror state school salaries and pay reviews. Remuneration of employees is set by the school’s sector pay level as a whole. The School subscribes to external HR benchmarking tool to analyse competitiveness against other organisations, and at the same time ensuring a fair level of pay in accordance to role responsibilities. It is also the intention of the School Trustees to apply a percentage increase to all staff when financially possible.

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REGISTERED WITH THE CHARITY COMMISSION FOR ENGLAND AND WALES - CHARITY NO. 312855. A COMPANY LIMITED BY GUARANTEE

THE PURCELL SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

Charity Governance Code

The Trustees are aware of the Charity Governance Code and have received the AGBIS guidance which explains in detail the Trustees’ Code of Practice and good governance. The Charity will be reviewing its current governance arrangements against its updated 2020 code and will address any issues raised where required in 2024. The Nominations Committee has undertaken a comprehensive skills audit within the Governing Body. This process involved a thorough analysis of the collective skill set to identify potential areas of under-representation and to contribute to robust succession planning. In parallel, the committee has introduced specific Terms of Reference, aimed at strengthening governance arrangements and enhancing the overall effectiveness of the committee.

Group Structure

Relationships between the School and Related Parties

The Trustees consider that the Board of Trustees and the Senior Leadership Team comprise the Key Management Personnel of the School. All Trustees give their time freely and no Trustee received remuneration in the year. There were no expenses or party related transactions declared in the year by all Trustees.

The Purcell School maintains close partnerships with other Music and Dance Schools (MDS) and together shape the specialist musical education in the UK. The School also maintains links with music colleges, and London venues where it regularly performs. There is also a strong relationship with UK Conservatoires as it is often a direction where most of our students go. The numbers in brackets represent the number of scholarships awarded:

The School wholly owns Purcell School (Trading) Limited, which did not trade in the year.

2023 LEAVERS

Employment Policy

The School is an equal opportunities employer. Full and fair consideration is given to all job applications. Employees are made aware of the financial and economic performance of the School, at least on an annual basis.

Communication with employees takes place through normal management channels and includes staff briefings, departmental meetings and a variety of electronic communication.

Trustees’ Indemnities

Trustees benefit from indemnity insurance to cover the liability of the Trustees which by virtue of any rule of law would otherwise attach to them in respect of any negligence, default or breach of trust or breach of duty of which they may be guilty in relation to the School. The cost of this insurance in the year has been included within total insurance costs.

MUSIC COLLEGES & CONSERVATOIRES

Royal College of Music, London: 3 (2) Royal Academy of Music, London: 11 (7) Guildhall School of Music and Drama, London: 9 (4)

Trinity College, London: 1 (1) Royal Northern College of Music, Manchester: 2 Royal Welsh College of Music and Drama, Cardiff: 2 (1)

Royal Conservatoire of Scotland, Glasgow: 1 (1) Berklee College of Music, United States: 1 Conservatoire de Lausanne, Switzerland: 1

UNIVERSITIES & COLLEGES

University of Oxford: 2 University of Cambridge: 1 Goldsmiths, University of London: 1 Nottingham Trent University: 1 Anglia Ruskin University, Cambridge: 1 Germany: 2

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REGISTERED WITH THE CHARITY COMMISSION FOR ENGLAND AND WALES - CHARITY NO. 312855. A COMPANY LIMITED BY GUARANTEE

THE PURCELL SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Charitable Objects

Key Financial Performance Indicators

The School’s Objects, as set out in the Memorandum and Articles of Association, is to establish and conduct a school for the purpose of providing general and specialist music education. The School offers a rounded education, with music at its heart, and provides young musicians of exceptional talent and promise with the best possible teaching and environment in which to fulfil their potential, regardless of their background. The Governing Body is mindful of the long-standing need to provide public benefit and of the requirements of the Charities Act 2011. In this connection the Governing Body has monitored closely the guidance on public benefit produced by the Charity Commission together with its supplemental guidance on fee-charging.

Mission Statement

The mission of The Purcell School is to provide young musicians who demonstrate the potential to become exceptional (irrespective of background) with outstanding teaching within a supportive school environment and to equip them with the selfconfidence, adaptability, maturity and perspective to sustain their professional development and personal fulfilment throughout their lives.

Aims

The School’s aims for public benefit are:

Primary Objectives

The primary objectives of the School to fulfil these aims are to:

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REGISTERED WITH THE CHARITY COMMISSION FOR ENGLAND AND WALES - CHARITY NO. 312855. A COMPANY LIMITED BY GUARANTEE

THE PURCELL SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

Strategies to Achieve the Primary Objectives

The key strategies are as follows:

Principal Activity

The principal objective of the Charity as set out in its Memorandum and Articles of Association is to establish and conduct a school for the purpose of providing general and specialist music education. The School is predominantly a boarding school with 141 boarders (some of whom are weekly boarders) and 44 day students. A special quality of the School is its warmth and friendliness and its strong sense of community and purpose, which has developed from a common love of music.

The School was awarded the Mozart Gold Medal by UNESCO in recognition of its outstanding contribution to arts education.

Public Benefit

The Purcell School remains committed to the aim of providing public benefit in line with Section 17 of the Charities Act 2011.

The School offers bursaries through the Department for Education Music and Dance Scheme. For students who do not qualify for the Music and Dance Scheme, support is offered by the School from the School’s own bursary fund. As a result, every student accepted by the School is entitled to means tested financial assistance and the key criterion for admission to the School is musical excellence and not ability to pay. Parental contributions for the majority of families supported by the MDS are currently 15% of gross fees, and any non-Music and Dance Scheme bursaries are funded from the School’s reserves.

The financial support available to students is promoted through the website, on Open Days and in all of the School’s marketing materials. All parents have an opportunity on Open Days and audition days to discuss financial concerns.

In addition to bursaries, the School engages in many other activities that provide benefit to the public within the School’s objectives. These include:

Equal Opportunities

The Purcell School is an equal opportunities organisation and is committed to a working and educational environment that is free from any form of discrimination on the grounds of colour, race, ethnicity, religion, gender, sexual orientation or disability.

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REGISTERED WITH THE CHARITY COMMISSION FOR ENGLAND AND WALES - CHARITY NO. 312855. A COMPANY LIMITED BY GUARANTEE

THE PURCELL SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

Safeguarding

The School is committed to safeguarding and promoting the welfare of students and expects all stakeholders to share this commitment.

Trustees monitor that safeguarding arrangements are effective by:

Fundraising Performance

In this academic year launched the private phase of the Beyond Music campaign, aiming to raise £5million for bursary funds, capital projects and our concert series. Over the next six years, these areas will be our fundraising focus, aiming to raise roughly half this total before pushing the campaign publicly.

Fundraising income reached £484,000 in 2023 (KPI set at £500,000).

We remain committed to enabling as many gifted young people as possible to access our provision, and the level of financial support they need to do this is rapidly increasing. If we are to maintain our current levels of both access and provision, and if we are to realise our ambitions for the future of the School, we are increasingly dependent on the commitment and generosity of our donors, all of whom share our belief that the education of the next generation of worldclass musicians must be a priority.

A highlight of this year’s fundraising activity was the opening of the new Jazz and Commercial Suite. The dedicated performance and rehearsal space was created entirely through donated funds. The JCS is a magnificent addition to our facilities currently utilised by many students across departments.

We have invested in a new fundraising database (ToucanTech) to best support the development department in not only raising vital funds, but reaching supporters via timely and relevant communications. An increase in activity and an additional team member in the fundraising team have resulted in donation income surpassing £500,000 in the financial year.

The School’s fundraising policy reflects the standards outlined by the Fundraising Regulator, of which we are a paid member. No fundraising complaints were received this year.

A number of new trusts, foundations and major donors have supported the School this year, recognising the need to support the next generation of musicians and helping to further social mobility in the sector. In order to achieve this long-term aim, we will require additional supporters to join us on our journey next year.

To be associated with The Purcell School as a donor is to play a significant and influential role in securing the future of music across the globe.

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REGISTERED WITH THE CHARITY COMMISSION FOR ENGLAND AND WALES - CHARITY NO. 312855. A COMPANY LIMITED BY GUARANTEE

THE PURCELL SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

STRATEGIC REPORT: ACHIEVEMENTS AND PERFORMANCE

Student Achievements: 2022-23 Academic Year

Students of The Purcell School were prize winners at the following international and domestic competitions:

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REGISTERED WITH THE CHARITY COMMISSION FOR ENGLAND AND WALES - CHARITY NO. 312855. A COMPANY LIMITED BY GUARANTEE

THE PURCELL SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

KEY ACADEMIC STATISTICS

Students at The Purcell School are characteristically motivated both musically and academically, and exam results are consistently strong. Depending on a student’s age and instrumental commitments, approximately a third of curricular time at The Purcell School is spent on musical activities. For this reason students may take fewer academic subjects than in other schools, and many will take Music exams one year early. For these reasons, numbers and grade distributions may fluctuate from year to year.

However, excellent teaching, dedicated facilities, and small class sizes help to ensure that our students attain good grades to continue in their studies.

This is the first year after the national pandemic where students sat the actual exams. The two previous years marks were graded by teachers. This year’s results have all improved in comparison to results before the pandemic.

Examination Results 2023

Year 13 A LEVEL & Pre-U 2023

----- Start of picture text -----
D1 D2 D3 M1 M2 M3 P1 P2 P3/U
Pre-U
(a+) (a) (a) (a/b) (b) (c) (c/d) (d) (e/U)
Music (45 entries) 1 10 15 4 9 4 1 1 0
A level subjects entries A A B C D E/U
Art 5 0 0 0 5 0 0
Biology 3 0 0 1 0 2 0
Chemistry 5 0 1 1 0 2 1
Drama 4 0 0 0 3 0 0
English Literature 9 1 2 2 2 1 1
French 5 2 1 2 0 0 0
German 4 0 0 0 1 2 1
History 11 0 2 2 5 2 0
Mathematics 10 2 0 1 3 3 1
Music Technology 20 0 0 5 4 9 2
Photography 5 0 0 2 2 1 0
Physics 1 0 1 0 0 0 0
----- End of picture text -----*

Year 12 AS LEVEL 2023

Year 12 AS LEVEL 2023
A level subjects entries A* A B C D E/U
Physics 4 0 1 0 1 1 1

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REGISTERED WITH THE CHARITY COMMISSION FOR ENGLAND AND WALES - CHARITY NO. 312855. A COMPANY LIMITED BY GUARANTEE

THE PURCELL SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

Examination Results 2023

YEAR 11 Studentsʼ GCSE 2023 & IGCSE Music RESULTS Nov 2022

----- Start of picture text -----
number grades entries 9() 8(/a) 7(a) 6(b) 5(b/c) 4(c) 3(d) 2(e)1
letter grades entries A A B C D E/U
Music† 20 17 0 2 1 0 0 0 0
English (1st Language)† 14 6 0 6 2 0 0 0 0
English Literature† 12 5 0 3 3 0 1 0 0
English (2nd Lang.) † 6 0 0 0 2 3 0 1 0
Art 11 2 1 4 1 1 0 2 0
Biology- Single 2 1 0 1 0 0 0 0 0
Chemistry- Single 2 1 0 1 0 0 0 0 0
French 10 4 5 0 1 0 0 0 0
German 7 1 1 1 2 0 1 1 0
History † 8 1 1 2 2 0 0 1 1
Mathematics 21 2 2 3 5 2 5 1 1
Further Mathematics 2 1 0 1 0 0 0 0 0
Physics- Single 2 1 0 1 0 0 0 0 0
Physics † 1 0 0 0 0 0 0 0 1
Science (Combined) 18 1 2 4 4 2 4 1 0
French 1 1 0 0 0 0 0 0 0
----- End of picture text -----*

GCSE / IGCSE stats. 2023 2022 2021 2020 2019 2018 2017
Percentage A* - A / 9 - 7 61% 56% 77% 85% 52% 62% 47%
Percentage A* - B / 9 - 5 85% 86% 97% 96% 82% 87% 73%
Percentage A* - C / 9 - 4 93% 95% 100% 99% 93% 98% 88%

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REGISTERED WITH THE CHARITY COMMISSION FOR ENGLAND AND WALES - CHARITY NO. 312855. A COMPANY LIMITED BY GUARANTEE

THE PURCELL SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

FINANCIAL REVIEW

Results for the Year

The School’s total incoming resources for the year amounted to £6,948,008 (£6,655,875 in previous year). The net deficit for the year was £781,513 (£580,722 in previous year) as shown in the Statement of Financial Activities. The deficit for the year arose as a result of ensuring adequate level of staffing resources to ensure safe, happy and healthy environment for students, as detailed in Note 14.

Reserves Level and Policy and Financial Viability

The School's overall reserves stood at £11,979,422 at the end of the year, compared to £12,760,935 in the previous year. Among these, £429,501 were restricted funds (compared to £338,860 previously), £11,222,994 were designated funds (compared to £11,527,354 previously), and £326,927 were general funds (compared to £844,721 previously).

Although £429,501 of these funds are classifiedas restricted under Charity trust law, they originated from fundraising efforts specifically for school bursaries. These funds can be utilised for educational activities at the school, which constitute the primary focus of its operations and would otherwise be financed from unrestricted funds. Consequently, they have been factored into the school's operational reserves, aligning with the reserves policy.

Unrestricted funds at the end of the year amounted to £11,549,921, entirely allocated towards financing the School's premises and equipment. Free reserves, as defined by the Charity Commission, are therefore limited, being the difference between unrestricted funds and those representing commitments or restrictions.

Trustees considered the balance between retaining sufficient reserves to guard against risks and tying up excessive resources which may be detrimental to fundraising. The Trustees agreed that a reserve between three to five months of the School’s usual annual total expenditure is appropriate to meet the Charity’s objectives without compromising the continuity of educational and musical provision. Three to five month’s reserve was deemed

appropriate predominantly due to the following risk considerations:

Ensuring a reserve equivalent to three to five months of our typical annual expenditure, ranging from £1,934,250 to £3,223,750, remains a key financial objective. Presently, our unrestricted reserves stand at £326,927, bolstered by £429,501 dedicated to supporting educational activities, totaling £756,428 in reserves. While falling short of our target policy level, it's essential to acknowledge that this total has been adjusted to encompass a longstanding liability of £395,105. Importantly, there's currently no imminent request to repay this liability within the next 12 months. Therefore, the true level of reserves is closer to our target, especially when considering the school's cash flow.

The target reserve level may be adjusted if there are significant changes in the risk profile. Given the current financial outlook, it is probable that the target will be raised next year. Consequently, several actions outlined in the strategic plan and risk management documents have been undertaken to align the reserves more closely with the target policy level.

The Board of Trustees ensures that resources are managed responsibly in the best interests of the School. The Board approves and monitors the implementation of this policy.

The Finance and General Purposes Committee (F&GP) monitors and supervises the current and future financial situation and associated risks. F&GP also reviews and develops this policy and makes recommendations to the Board.

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REGISTERED WITH THE CHARITY COMMISSION FOR ENGLAND AND WALES - CHARITY NO. 312855. A COMPANY LIMITED BY GUARANTEE

(A COMPANY LIMITED BY GUARANTEE)

THE PURCELL SCHOOL

PRINCIPAL RISKS AND UNCERTAINTIES

The Governing Body is responsible for the management of the risks faced by the School. Detailed considerations of risk are delegated to the Finance and General Purposes Committee, which is assisted by senior School staff. Risks are identified, assessed and controls established throughout the year. A formal review of the School’s risk management processes is undertaken on an annual basis. The key controls used by the School include:

Through the risk management processes established for the School, the Trustees are satisfied that the major risks identified have been managed as necessary. The Trustees have identified that the key areas of risk that the School faces lie in the effectiveness of its governance and management, the efficiency of its operations, the effectiveness of its safeguarding procedures and in ensuring its financial health and stability. These include, in particular, a significant fall in student numbers and withdrawal or changes to the Department for Education funding, which has been intensified by the current cost of living and the highest inflation in decades. It is recognised that systems can only provide reasonable but not absolute assurance that major risks are being managed.

The management of risk is a routine part of the day to day operation of the School. Policies and procedures are in place to assess and manage risks. During the year Trustees reviewed child protection, health and safety, risk management, whistleblowing, professional standards, staff recruitment, bursary and equality policies.

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REGISTERED WITH THE CHARITY COMMISSION FOR ENGLAND AND WALES - CHARITY NO. 312855. A COMPANY LIMITED BY GUARANTEE

I'Fif, PURC,F,I.I, SCHOOI, IA L.',()Nll).i.Ni' i.1iii'rEI) Bl. (;L,.IR.IN'I'r_i.-) The school'5 ongoing strategic plan 15 actively progressing. aimed at achieving substantial improvements across all areas of operation over the next 5 to 10 years. This initiative 15 Plvotal in ensurlng the school's sustained growth, expanding and tailoring pupil recruitment, fostering wider participation and social impact. enhancing both physical and virtual resources, and gtrengthening its financial stability. The core Strategic objectives, reflective of the plan's advancement, include: Prlnclpal Strat•glc Alm I To maintsin and develop an exceptional student experience underpinned by outstsnding artistic ambition Prln¢lpal Strat•8k Alm 2 To attracL retsin and add value to the finest national and international talent Prlnclpa( Strategic Aim 3 To facilltste transformational engagement with partners, communities and the wlder world Prlnclpal Strat•gk Alm 4 To develop world-class resources and facilities To ensure financial 5UStainability through effective financial planning and management, diversificatlon of Income and significant and sustained fundralsing Prlnclpal StrateW¢ Alm 5 Th• Stratoglc Pian has an ov•rarchinz mission to provide our students with outstanding musical teJ¢hing and a supportive envlronment, to •qulp them wlth the tools t• wstaln thelr professlonal musical careers. Integral to the Strategic Plan is the School's core mission of ensuring that places are secured la5 far as is practically p05siblel on the basis of talent, not on the ability to pay and to enable each and every student to experience a safe, happy and healthy envlronment in whlch to grow and develop musically, academically and personally. In approving the Trustees, Annual Report, we also approve the Strategic Report included therein, in our capacity as company Director5. On behalfof the Board J•ff H•witt Trustee Date 2610312024 Dr Barhard Trafford Chair of Full Governing Body Date 2￿3￿024 ReGIS7EFiED WITH fHE CMAR*TY COMM55SIQN FOR E14GIANO AND WALES . CHARITY NO. 312854. A COMPAWY LIMITED 8Y GUARANTEk 14

THE PURCELL SCHOOL (A Company Llmltod by Guarantse) STATEMENT OF TRUSTEES. RESPONSIBIUTIES FOR THE YEAR ENDED 31 AUGUST 2023 The Trustees (who are also the DIre￿iJrS of the Schc(sl for the purposes of company law) are responsible for preparing the Trustees, Report indudiw the strateg￿ Roport and the finanaal Slatements in accordance with applicable law and United Kkngdom Accounting star￿ards Iunited Kingdom Generally Accepted Accounting PraGtsGel. Company law requires the Trustges to prepare financ481 statements for eac flnanclal year. Under cornpany law, the Truste8s must not approve the finanaal stalements unless they are 8attsfled trbat they give a tru8 and fair Vigw of the state of affairs of the School and of Its Incoming resourcgs and applic4ts.on of resources, including its Income and 8xperKliture. for that perkMI. In w8parlro these financial ststgmants. tho Trust88s arg r8quir8d to.. 88le¢t sultsble accountirKJ policigs and then appty them consistenlly. observe the methods and prfndples of the Charities SORP IFRS 1021., make judgements and accounting esbmatss that are rea￿nable and pnJdon( stale whelher apF4ic8ble UK Accwnting Standard8 {FRS 1021 have been followehj, aublecl lo any ma18rial doparturas disdosBd gnd oxplained in tht finanGial statements. prepare lh8 flnancial stalements on the going c)Mcem basis un16ss it Inappropriate to pr&8uma that the Sc1K￿l wlll contlnu8 in busin8ss. Thfy Truste88 8re r88pon81b￿ keeplng adequate ac¢rAJnUng rècords that are sufficlent to show and explaln the School's tran$actSons and dlsdosa th reasonable accurocy at any lime the finanGS0l oosltlon of the School and enablg them lo onsurg that the financial Slatements ccKnpty the Companies Act 2006. They a￿ also sponsible for safeguardlng the 8SS6ts of the Scho)i and he0￿ for taking reasonab16 Steps for the prevenllon and deteC￿on of fraud and other Irregularities. In 80 far 88 thg Trustees are aware: there 18 no r•levant a￿lIt Infomtion ol whlch the tharitable compatys audllor Is unawarè; the Trustoes havo taken all steps that they ought to have taken to make themselves 8war8 of any relevant audit informat6on and to &sta￿lsh that the audttor Is awaro of Ihal Inftymalon. Approved by order oflhe mefflbe￿ of the Board of Trustees and s￿ne0 on Its b8h8if by.. Jeff Howltt Trust89 Date. 2610312024 Dr Bornard Trafford Chalr of Full Govemlng B¢)dy Page 15

THE PURCELL SCHOOL (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PURCELL SCHOOL

Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Page 16

THE PURCELL SCHOOL (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PURCELL SCHOOL (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report including the Strategic Report.

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

Responsibilities of Trustees

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

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

Page 17

THE PURCELL SCHOOL (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PURCELL SCHOOL (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

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

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

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

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

Page 18

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PURCELL SCHOOL (CONTINUED)

Use of our report

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

Sudhir Singh FCA (Senior Statutory Auditor)

for and on behalf of MHA Statutory Auditor London, United Kingdom

Date: 9 April 2024

Page 19

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2023

Note
Income from:
Donations and grants
4
Charitable activities
5
Other trading activities
8
Investments
9
Total income
Expenditure on:
Raising funds
10
Charitable activities
11,12
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2023
£
8,881
6,118,978
324,271
-
6,452,130
165,072
7,109,212
7,274,284
(822,154)
12,372,075
(822,154)
11,549,921		 Restricted
funds
2023
£
475,250
-
-
20,628
495,878
-
455,237
455,237
40,641
388,860
40,641
429,501		 Total
funds
2023
£
484,131
6,118,978
324,271
20,628
6,948,008
165,072
7,564,449
7,729,521
(781,513)
12,760,935
(781,513)
11,979,422		 Total
funds
2022
£
543,844
5,950,665
160,764
602
6,655,875
56,862
7,179,735
7,236,597
(580,722)
13,341,657
(580,722)
12,760,935

All income and expenditure derives from continuing activities.

The Statement of Financial Activities includes all gains and losses recognised in the year.

The Notes on pages 23 to 46 form part of these financial statements.

Page 20

THE PURCELL SCHOOL IA Company Limited by Guaranto8) REGISTERED NUMBER: 00759327 BALANCE SHEET AS AT 31 AUGUST 2023 2023 2023 2022 2022 Flxod assgts Tangible assets Investments 16 17 11222,994 100 11,527,354 too 11,223.094 Curront assots 11,527,464 D&btors'. Amounts falllng due wlthin onè year Cash at bank and in hand 18 23 325,760 2,20T,807 1,930,022 2.538,090 2,533,567 Credltors: Amounts f8lllrvJ dua ￿thkn r year 19 11,781,762) (1,300,086) Net curr•nt a•s•t• 7J6,320 1,233,48t Total not a88•tA 11.979.422 12.760,935 School lund• Reslrieted funds Unre8tricted funds 429,501 11,549,921 388,860 12,372.075 20 Totsl fund8 11,979.422 12, 760,935 The Truslees acKnth￿e￿ge Ihelr ￿t%)nsIbIl￿seS for cornp￿ng wrth tho requirem6nts of the Companies A¢1 2006 with r8SPgCt to accounting re¢xJrd8 8nd preparation of financial stalerngnts. The finandal statements were approved arrt1 aUthOr￿e￿ for issu8 by the Trust888 and sloned on thelr behalf by: TL JLdt Jaff H•witt Trustee Date.'2610312024 Dr B•mard Trafford Chair of Full Goveming 8ody The notes on pages 23 to 46 fom part of U)8sg financial 8tatsments. Page 21

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023

Note
Cash flows from operating activities
Net cash used in operating activities
22
Cash flows from investing activities
Investment income
9
Purchase of tangible fixed assets
16
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
23
The notes on pages 23 to 46 form part of these financial statements.		 2023
£
(105,942)
20,628
(172,471)
(151,843)
(257,785)
2,207,807
1,950,022		 2022
£
198,178
602
(84,224)
(83,622)
114,556
2,093,251
2,207,807

Page 22

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

1. General information

The Purcell School is a charitable company limited by guarantee and is registered with the Charity Commission (Charity Registered Number: 312855) and Registrar of Companies (Company Registration Number: 00759327) in England and Wales.

The registered office and principal place of operation is detailed on page 1. The nature of the School's operations are detailed in the Trustees' Report.

The liability of the 16 Members at the year-end is limited to £1 each.

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the School’s financial statements.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Purcell School meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are prepared in sterling, which is the functional currency of the School, and rounded to the nearest pound.

Page 23

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

2. Accounting policies (continued)

2.2 Going concern

Having reviewed the funding facilities available to the School together with the expected ongoing demand for places, funding arrangements under the Department for Education Music and Dance Scheme and the School’s future projected cash flows, the Trustees have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the School’s financial viability.

Having meticulously scrutinised the financial landscape and evaluated the funding streams accessible to the School, in conjunction with a thorough assessment of the anticipated sustained demand for placements, funding agreements associated with the Department for Education's Music and Dance Scheme (DfE MDS), and the analysis of the School's future cash flows, the Board of Trustees holds a reasonable expectation that the School possesses ample resources to sustain its operations over the foreseeable future. The Board affirms that there are no significant uncertainties regarding the School's financial viability within the next 12 months.

This determination takes into account the prevailing economic conditions, marked notably by the most substantial inflation in decades, impacting the School's operations and cash flow. The School's proactive response to this economic environment is a pivotal factor considered in reaching this conclusion. Furthermore, the School engages in robust long-term planning through the development of comprehensive 3-year plans/scenarios, viability analyses, and cash-flow forecasts. Notably, the Trustees extend their evaluation beyond the mandatory 12-month minimum, demonstrating a commitment to a comprehensive understanding of the foreseeable future.

In addition to annual budget projections, student recruitment, and retention assessments alongside real-time cash-flow projections, the School has devised a long-term budget spanning from 2023 to 2027. This extensive budget examines various scenarios, encompassing all income streams, including the DfE MDS, non-MDS, and other sources. It also considers staff costs and operational expenses. This comprehensive financial analysis is conducted within the framework of an updated risk management plan, which is revisited termly by the Finance and General Purpose Committee. The committee engages in discussions addressing primary risks, which significantly influence budget forecasts.

The Board of Trustees further oversees the determination of fee levels and establishes charges for the School. A robust risk and opportunities document, intricately linked to the going concern assessment, outlines potential actions to secure the School's ongoing operations. Additionally, the School has developed key strategic priorities, encompassing the funding model, student recruitment, musical provision, operational changes, and philanthropic activities. These priorities serve as a guiding framework for sustaining the School's operations and ensuring long-term viability.

Accordingly, it continues to be appropriate to adopt the going concern basis in preparing the financial statements.

Page 24

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

2. Accounting policies (continued)

2.3 Income

All income is recognised once the School has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Fees receivable are accounted for in the year to which they relate and comprise tuition fees and charges to students, net of bursary fee remissions, but gross of awards made from the School’s Bursary Fund.

Donations and gifts received for the general purposes of the School are credited to the School’s funds. Donations and gifts subject to specific wishes of the donors are carried to the relevant restricted fund. Voluntary income is accounted for when the School’s entitlement to it is considered to be legally enforceable and there is reasonable certainty of receipt.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the School has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the School, can be reliably measured.

Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.4 Government grants

The Charity receives government grants in respect of furthering its charitable objectives. Income from government and other grants are recognised at fair value when the Charity has entitlement after any performance conditions have been met, it is probable that the income will be received, and the amount can be measured reliably. Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

2.5 Expenditure

Expenditure is accounted for on an accruals basis. Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The Charity considers support costs to involve administration and the costs associated with the performance of these tasks.

Page 25

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

2. Accounting policies (continued)

2.5 Expenditure (continued)

Expenditure on raising funds includes all expenditure incurred by the School to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the School's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.6 Taxation

The School is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the School is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £5,000 (£1,000 for computer equipment) or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following bases:

Freehold buildings - 2% on cost
Temporary classrooms - 20% on written down value
Motor vehicles - 25% on written down value
Furniture, fixtures and fittings - 15% on written down value
Computer equipment - 20% on cost
Musical instruments - 10% on written down value

Freehold land is not depreciated.

2.8 Investments

Investment in the trading subsidiary is valued at cost less provision for impairment.

Page 26

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

2. Accounting policies (continued)

2.9 Debtors

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

2.10 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the School anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

2.12 Concessionary loans

Concessionary loans include those receivable and payable to a third party which are interest free or below market interest rates and are made to advance charitable purposes. Where the loan is repayable on demand within one year, the loan is measured at cost, less impairment. Where the loan is repayable more than one year, the loan is initially measured at fair value and subsequently measured at amortised cost using the effective interest rate method, less impairment.

2.13 Financial instruments

The School only holds basic financial instruments. The financial assets and financial liabilities of the School are as follows:

Financial assets - trade and other debtors (including accrued income) are basic financial instruments and are debt instruments measured at amortised cost as detailed in Note 18. Prepayments are not financial instruments.

Cash at bank is classified as a basic financial instrument and is measured at face value.

Financial liabilities - trade creditors, accruals and other creditors will be classified as financial instruments, and are measured at amortised cost as detailed in Note 19. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as in the cash settlement has already taken place and there is simply an obligation to deliver charitable services rather than cash or another financial instrument.

Page 27

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

2. Accounting policies (continued)

2.14 Operating leases

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

2.15 Pensions

The School contributes to the Teachers’ Pension Scheme at rates set by the Scheme Actuary and advised to the Governors by the Scheme Administrator. The scheme is a multi-employer pension scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the School. In accordance with FRS102 the scheme is accounted for as a defined contribution scheme. The School also uses a defined contribution scheme for its non-teaching staff. The contributions are charged in the Statement of Financial Activities when made.

2.16 Termination payments

Termination benefits, including redundancy costs, are recognised when the School has the obligation to pay the benefits and they can be reliably measured.

2.17 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the School and which have not been designated for other purposes.

Designated funds are funds set aside out of general funds and designated for specific purposes by the Trustees.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the School for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The School makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

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

Page 28

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

4. Income from donations, legacies and grants

Unrestricted
funds
2023
£
Bursary income
-
Friends income
-
Merchandise sales
-
Other grants
8,881
Instrument and Composition income
-
Capital development fund
-
Total 2023
8,881
Unrestricted
funds
2022
£
Bursary income
-
Friends income
-
Merchandise sales
-
Other grants
6,623
Instrument and Composition income
-
Legacy income
250,000
Total 2022
256,623		 Restricted
funds
2023
£
277,343
5,677
325
-
91,905
100,000
475,250
Restricted
funds
2022
£
280,878
3,333
450
-
2,560
-
287,221		 Total
funds
2023
£
277,343
5,677
325
8,881
91,905
100,000
484,131
Total
funds
2022
£
280,878
3,333
450
6,623
2,560
250,000
543,844

Page 29

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

5.
Income from charitable activities - by fund
Unrestricted
funds
2023
£
Educational operations
6,118,978
Unrestricted
funds
2022
£
Educational operations
5,950,665
6.
Analysis of income from charitable activities by type of income
2023
£
School fees
7
6,118,978
6,118,978
7.
School fees
2023
£
Gross school fees
6,124,733
Less: Total bursaries
(460,992)
Add: Bursaries paid from restricted funds
455,237
6,118,978		 Total
funds
2023
£
6,118,978
Total
funds
2022
£
5,950,665
2022
£
5,950,665
5,950,665
2022
£
5,967,705
(411,408)
403,368
5,959,665

Net fees received included £1,729,496 (2022 - £1,615,560) by parents and £3,939,245 (2022 - £3,940,737) paid by the Department for Education Music and Dance Scheme.

Page 30

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

8. Income from other trading activities

Unrestricted
funds
2023
£
Application and audition fees
9,154
Insurance claims
85,824
House fund income
12,555
Concert income
34,272
Lettings income
150,992
Coffee shop income
14,525
Sundry income
16,756
Gain on disposal of fixed assets
193
Total 2023
324,271
Unrestricted
funds
2022
£
Application and audition fees
6,885
Insurance claims
8,080
House fund income
12,290
Concert income
8,150
Lettings income
123,204
Coffee shop income
1,236
Sundry income
847
Gain on disposal of fixed assets
72
Total 2022
160,764		 Total
funds
2023
£
9,154
85,824
12,555
34,272
150,992
14,525
16,756
193
324,271
Total
funds
2022
£
6,885
8,080
12,290
8,150
123,204
1,236
847
72
160,764

Page 31

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

9. Income from investments

Restricted
funds
2023
£
Bank interest receivable
20,628
Restricted
funds
2022
£
Bank interest receivable
602
10.
Expenditure on raising funds
Unrestricted
funds
2023
£
Direct costs - Staff costs
122,493
Direct costs - Fundraising and development costs
17,283
Support costs - Financing costs
7,901
Support costs - Coffee shop costs
17,395
Total 2023
165,072
Unrestricted
funds
2022
£
Direct costs - Staff costs
44,367
Direct costs - Fundraising and development costs
4,594
Support costs - Financing costs
7,901
Total 2022
56,862		 Total
funds
2023
£
20,628
Total
funds
2022
£
602
Total
funds
2023
£
122,493
17,283
7,901
17,395
165,072
Total
funds
2022
£
44,367
4,594
7,901
56,862

Page 32

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

11. Analysis of expenditure on charitable activities - by fund

Unrestricted
funds
2023
£
Educational operations
7,109,212
Unrestricted
funds
2022
£
Educational operations
6,771,577
Analysis of expenditure on charitable activities - by type
Activities
undertaken
directly
2023
£
Educational operations
6,119,419
Activities
undertaken
directly
2022
£
Educational operations
5,705,210		 Restricted
funds
2023
£
455,237
Restricted
funds
2022
£
408,158
Support
costs
2023
£
1,445,030
Support
costs
2022
£
1,474,525		 Total
funds
2023
£
7,564,449
Total
funds
2022
£
7,179,735
Total
funds
2023
£
7,564,449
Total
funds
2022
£
7,179,735

12. Analysis of expenditure on charitable activities - by type

Page 33

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

12. Analysis of expenditure on charitable activities - by type (continued)

Analysis of direct costs

Staff costs
Premises costs
Teaching costs
Welfare and catering costs
School operating costs		 Total
funds
2023
£
4,217,127
662,862
224,898
559,295
455,237
6,119,419		 Total
funds
2022
£
3,965,189
570,753
222,614
543,286
403,368
5,705,210

Analysis of support costs

Staff costs
Depreciation
Other staff costs
Premises costs
Technology costs
Insurance costs
Transportation costs
Hospitality costs
Bank charges
Governance costs
Legal costs
Other support costs
Publicity costs
Bad debts		 Total
funds
2023
£
506,692
476,831
26,992
42,886
97,154
73,121
5,678
110
6,367
106,062
6,156
73,031
12,554
11,396
1,445,030		 Total
funds
2022
£
435,714
503,865
27,224
38,100
102,468
61,877
4,696
239
5,963
150,759
47,313
73,263
7,832
15,212
1,474,525

Page 34

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

13. Governance costs

Auditor's remuneration - Audit of the financial statements
Auditor's remuneration - Other services
Auditor's remuneration - Under-accrual of prior year fees
Legal and professional fees		 2023
£
24,600
10,200
3,780
67,482
106,062		 2022
£
18,600
8,580
4,140
119,439
150,759

14. Staff costs

Wages and salaries
Social security costs
Pension costs		 2023
£
3,828,237
358,257
659,818
4,846,312		 2022
£
3,590,041
313,383
541,846
4,445,270

Wages and salaries include termination benefits and redundancy payments, including both contractual and non-contractual payments, and totalled £NIL (2022 - £10,886) . Included within non-contractual payments for 2023 are compensation payments of £NIL (2022 - £3,287) made under the authority of the Trustees as being in the best interests of the School. There were no associated liabilities at the year end.

Wages and salaries also includes agency staff costs of £29,494 (2022 - £96,934) .

The average number of persons employed by the School during the year was as follows:

Teaching
Boarding, Pastoral and Housekeeping
Administration, Property and Fundraising		 2023
No.
123
32
17
172		 2022
No.
117
32
17
166

Page 35

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

14. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2023 2022
No. No.
In the band £60,001 - £70,000 6 1
In the band £70,001 - £80,000 - 1
In the band £80,001 - £90,000 2 2
In the band £90,001 - £100,000 1 -
In the band £110,001 - £120,000 - 1
In the band £120,001 - £130,000 1 -

The Key Management Personnel of the School comprise the Trustees and the Senior Leadership Team as listed on pages 1 and 2. The total amount of employee benefits (including employer pension contributions and employer national insurance contributions) received by Key Management Personnel for their services to the School was £776,613 (2022 - £578,631) .

15. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL) .

During the year ended 31 August 2023, no Trustee expenses have been incurred (2022 - £NIL) .

Page 36

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

16. Tangible fixed assets

Cost or valuation
At 1 September
2022
Additions
At 31 August 2023
Depreciation
At 1 September
2022
Charge for the year
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022		 Freehold
land and
buildings
£
15,472,717
-
15,472,717
4,575,481
293,824
4,869,305
10,603,412
10,897,236		 Motor
vehicles
£
28,200
-
28,200
19,278
2,231
21,509
6,691
8,922		 Furniture,
fixtures and
fittings
£
1,658,743
168,584
1,827,327
1,380,845
116,409
1,497,254
330,073
277,898		 Computer
equipment
£
775,986
-
775,986
739,992
35,994
775,986
-
35,994		 Musical
instruments
£
1,069,249
3,887
1,073,136
761,945
28,373
790,318
282,818
307,304		 Total
£
19,004,895
172,471
19,177,366
7,477,541
476,831
7,954,372
11,222,994
11,527,354

Page 37

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

17. Fixed asset investments

Cost or valuation
At 1 September 2022
At 31 August 2023		 Investment
in
subsidiary
company
£
100
100

Principal subsidiaries

The wholly owned trading subsidiary, Purcell School (Trading) Limited, is incorporated in England and Wales (Company Registration Number: 02914875). The registered office address is Aldenham Road, Bushey, Watford, Hertfordshire, WD23 2TS.

During the current and previous financial years Purcell School (Trading) Limited was dormant.

18. Debtors

Due within one year
Fees and extras owed by parents
Other debtors
Prepayments
Music and Dance Scheme grant		 2023
£
162,383
220,731
23,188
181,766
588,068		 2022
£
94,196
37,139
19,620
174,805
325,760

Page 38

(A Company Limited by Guarantee)

THE PURCELL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

19. Creditors: Amounts falling due within one year

Other loans
Trade creditors
Parental deposits
Other taxation and social security
Other creditors
Accruals and deferred income		 2023
£
395,105
253,942
176,197
212,958
117,768
625,792
1,781,762		 2022
£
395,105
-
248,494
176,955
109,995
369,537
1,300,086

The other loans amount included in the creditors note above relates to a £395,105 that was borrowed in the 1980s from the Samuel Gardner Memorial Trust to move the School from its previous campus in Harrow to its current location. It is considered a concessionary loan repayable on demand. No amount has been repaid at the year ended 31 August 2023.

Deferred income at 1 September 2022
Resources deferred during the year
Amounts released from previous periods		 2023
£
186,171
464,031
(186,171)
464,031		 2022
£
167,218
186,171
(167,218)
186,171

Deferred income relates entirely to Student fees received in advance of the new academic year.

Page 39

(A Company Limited by Guarantee)

THE PURCELL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

20. Statement of funds

Statement of funds - current year
Balance at 1
September
2022
£
Unrestricted funds
Designated funds
Fixed asset fund
11,527,354
General funds
General Fund
844,721
Total Unrestricted funds
12,372,075
Restricted funds
Capital Development Fund
37,251
Bursary Fund
325,974
Instrument Fund
8,396
Composition and Outreach
Fund
9,630
Chamber Music Academy
7,609
388,860
Total of funds
12,760,935		 Income
£
-
6,452,130
6,452,130
100,000
303,973
88,405
3,500
-
495,878
6,948,008		 Expenditure
£
(476,831)
(6,797,453)
(7,274,284)
-
(455,237)
-
-
-
(455,237)
(7,729,521)		 Transfers
in/out
£
172,471
(172,471)
-
-
-
-
-
-
-
-		 Balance at
31 August
2023
£
11,222,994

Unrestricted funds
Designated funds
Fixed asset fund
General funds
General Fund
Total Unrestricted funds
Restricted funds
Capital Development Fund
Bursary Fund
Instrument Fund
Composition and Outreach
Fund
Chamber Music Academy
Total of funds
326,927
11,549,921
137,251
174,710
96,801
13,130
7,609
429,501
11,979,422

Page 40

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

20. Statement of funds (continued)

Statement of funds - prior year
Balance at
1 September
2021
£
Unrestricted funds
Designated funds
Fixed asset fund
11,946,995
General funds
General Fund
885,467
Total Unrestricted funds
12,832,462
Restricted funds
Capital Development Fund
37,251
Bursary Fund
443,579
Instrument Fund
11,501
Composition and Outreach
Fund
7,130
Chamber Music Academy
9,734
509,195
Total of funds
13,341,657		 Income
£
-
6,368,052
6,368,052
-
285,763
60
2,500
(500)
287,823
6,655,875		 Expenditure
£
(503,865)
(6,324,574)
(6,828,439)
-
(403,368)
(3,165)
-
(1,625)
(408,158)
(7,236,597)		 Transfers
in/out
£
84,224
(84,224)
-
-
-
-
-
-
-
-		 Balance at
31 August
2022
£
11,527,354
Unrestricted funds
Designated funds
Fixed asset fund
General funds
General Fund
Total Unrestricted funds
Restricted funds
Capital Development Fund
Bursary Fund
Instrument Fund
Composition and Outreach
Fund
Chamber Music Academy
Total of funds
844,721
12,372,075
37,251
325,974
8,396
9,630
7,609
388,860
12,760,935

Page 41

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

20. Statement of funds (continued)

Restricted Funds

The Capital Development Fund represents donations made to fund major projects. Capital development funds going forward will be used for the next major building project.

The Bursary Fund comprises grants and donations made to the School for the purpose of funding needy students. Tuition fees in the Statement of Financial Activities include fees funded by scholarships of £450,237. In the year, a total of £460,992 of bursaries were made to students of which £455,237 was paid from the Bursary Fund.

The Instrument Fund comprises grants and donations made to the School for the purchase of specific musical instruments.

The Composition and Outreach Fund represents grants and donations made to the School for the commissioning and performance of new music and for undertaking community based activities.

The Chamber Music Academy comprises funds received specifically to fund a chamber music initiative involving students from the Purcell School led by Charles Sewart.

Unrestricted Fund

The general fund comprises accumulated revenue surpluses and, once any restrictions have been met, receipts from restricted and unrestricted capital funds. The transfer out of £172,471 represent capital purchases made using these funds.

The School has a designated fixed asset fund for the net book value of fixed assets held. As capital purchases are made using other funds, transfers are made into this fund.

Page 42

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

21. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2023
£
Tangible fixed assets
11,222,994
Fixed asset investments
100
Current assets
2,108,589
Creditors due within one year
(1,781,762)
Total
11,549,921		 Restricted
funds
2023
£
-
-
429,501
-
429,501		 Total
funds
2023
£
11,222,994
100
2,538,090
(1,781,762)
11,979,422

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2022
£
11,527,354
100
2,144,707
(1,300,086)
12,372,075		 Restricted
funds
2022
£
-
-
388,860
-
388,860		 Total
funds
2022
£
11,527,354
100
2,533,567
(1,300,086)
12,760,935

Page 43

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

22. Reconciliation of net movement in funds to net cash flow from operating activities

Net expenditure for the year (as per Statement of Financial
Activities)
Adjustments for:
Depreciation charges
16
Investment income
9
(Increase)/decrease in debtors
18
Increase in creditors
19
Net cash provided by/(used in) operating activities
23.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
24.
Analysis of changes in net debt
At 1
September
2022
£
Cash at bank and in hand
2,207,807
Debt due within 1 year
(643,599)
1,564,208		 2023
2022
£
£
(781,513)
(580,722)
476,831
503,865
(20,628)
(602)
(262,308)
86,465
481,676
189,172
(105,942)
198,178
2023
2022
£
£
1,950,022
2,207,807
1,950,022
2,207,807
Cash flows
At 31
August 2023
£
£
(257,785)
1,950,022
72,297
(571,302)
(185,488)
1,378,720

Page 44

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

25. Pension commitments

Introduction

The Teachers' Pension Scheme (TPS or scheme) is a statutory, unfunded, defined benefit occupational scheme, governed by the Teachers' Pensions Regulations 2010 (as amended), and the Teachers' Pension Scheme Regulations 2014 (as amended). These regulations apply to teachers in schools and other educational establishments, including academies, in England and Wales that are maintained by local authorities. In addition, teachers in many independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher education may be eligible for membership. Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS.

The Teachers' Pension Budgeting and Valuation Account

Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and Public Service Pensions Act (2013) and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a 'pay as you go 'basis - contributions from members, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Acts.

The Teachers' Pensions Regulations 2010 require an annual account, the Teachers' Pension Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pension increases). From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return.

Valuation of the Teachers' Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors.

The 31 March 2016 TPS actuarial valuation results were implemented from 1 September 2019. The key elements of the valuation and subsequent consultation were:

The latest actuarial TPS valuation results, as at 31 March 2020, were released in October 2023. The revised employer contribution rate, arising from this valuation, will be implemented from 1 April 2024.

Page 45

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

25. Pension commitments (continued)

The School participates in the TPS for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £525,408 (2022 - £441,560). At the year end, there were contributions of £89,014 (2022 - £51,762) payable in respect of the scheme.

Defined Contribution Pension Scheme

The School operates a defined contribution pension scheme for non-teaching staff. Contributions paid during the year were £134,410 (2022 - £100,515) . At the year end, there were contributions of £33,697 (2022 - £26,871) payable in respect of the schemes.

26. Operating lease commitments

At 31 August 2023 the School had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2023
£
10,664
23,994
34,658		 2022
£
10,664
39,990
50,654

The following lease payments have been recognised as an expense in the Statement of Financial Activities:

2023 2022
£ £
Operating lease rentals 10,664 5,332

27. Related party transactions

During the year unrestricted donations of £681 (2022 - £NIL) were received from one (2022 - NIL) Trustees. There were no amounts outstanding at the year end (2022 - £NIL).

Page 46