Registered number: 01136229 Charity number: 325018 BERKHAMPSTEAD SCHOOL (CHELTENHAM) TRUST LIMITED (A company limited by guarantee) GOVERNORS, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 BERKHAMPSTEAO SCHOOL ICHELTENHAMI TRUST LIMITED IA company limited by yuarante¢l CONTENTS Page Referencg and administrative details of the Company. its Governors and advisers Govemors. report Independent auditorf$ report on the financial statements Consolidated statement of financial activities 8-11 12 Consolidated balance sheet Company balance sheet Consolldated statement of Cash flowy 14 Notes to the financial statements 16-39 BERKHAMPSTEAD SCHOOL ICHELTENHAMI TRUST LIMITED A company limited by guaranto8 REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2022 Govemors Mr N E Southwe113 Mr M A Kirbyl Mr C M Collier lappointed 16 November 2021}1 Mi C B Martin lappoinled 16 November 202115 Mr J E Vvalton (appointed 16 November 202114.5 Mrs G Agg lappointed 1 January 202214 Mrs D M Cox lappoinled 22 March 20221 Mr D Freer lappoinled 22 Ma￿h 20221 Mrs Z J Meredrth-smyth (appointed 22 March 202215 MT P Connaughton lappoinled 17 May 20221 Mr S Ackland lappointed 17 May 20221£3 denotes membership of Finan￿ and General Purposes Commrttee denotes membership of Health and Safety Committee 3 denotes membership of the Compliance Committee denotes nominated Safeguarding Governor denole5 membership of the Education Committtee Company regsstered numbar 01136229 Charity registered number 325018 Registered office and principal address Berkhampslead School pittville Circus Road Chef(enham GIoU￿stershIre GL52 2QA Bursar and Company secretary Mr B Edwards Headmaster Mr R Cross Independent auditor Crowe U.K. LLP Fourth Floor Sl James HoLJse Sl James Square Cheltenham GL50 3PR Bankers Lloyds Bank PIC 130 High Street Chellenham GL50 1EW Solicitors Sherbornes Solicrtors 4 Royal Crescent Chehenham GL50 3DA Page 1 BERKHAMPSTEAD SCHOOL ICHELTENHAMI TRUST LIMITED (A company Ilmlted by guarantee) GOVERNORS. REPORT FOR THE YEAR ENDED 31 AUGUST 2022 The Governors present their annual report together with the audited financial slalemenls of the group and the company for the year ended 31 Augu51 2022. The Governors confim) that the Annual Report and financial slalemenls of the company comply with the current statutory requirements, the requirements of the ¢tsmp8ny's governing document and the provisions of the Statement of Recommended PTaclice ISORPI, applicable lo charrties preparing their accDunts in accordance with the Financial Reporting Standard applicable In the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20151 as amended by Update Bulletin 1 leffedive 1 January 20151 STATUS AND ADMINISTRATION Berkhampslead School Icheltenhaml Trust Limited is a ¢harty within the meaning of the Charities Act 2011 and has been entered on the Central Register of Charrties (number 3250181. It is incorporated under the Companies Act 2006 Inumber 011362291 as a company limited by guarantee and not having share ¢8Pltal. It is govemed by its Memorandum and Articles of Association and was incorporated on 26 September 1973. CHARITABLE OBJECTS The objects for which the charity is established are to promote and provide for the advancement of education and in connection Iherewilh lo conduct. carry On, acquire and develop ln the Un11ed Kingdom any boarding or day school for the education of children. PRINCIPAL ACTIVITY The principal actTvity of the School continues to be the provision of a welkrounded education to both boys and gids up to the age of 11. ORGANISATIONAL STRUCTURE The Trust is managed by the Board of Governors. Meetings are held frequently throughout the year. The day to day running of the Trust's a¢livities is undertaken by the Headmaster. wth the assistance of the adminislralive staff. The Bursar ¢o-ordinales the financial and adminislr81ive work of the School and manages any building and maintenance work in conjunction with the Estates Manager. Delegated tasks include those of a Chef Manager who is employed by Palmer & Howells Catering and runs the kitchen on a contract basis. Remuneration is set by the Board of Governois, with the policy of ensuring appropriate 5alarie5 to enGourage enhan￿d perfomance and. in a fair and responsible manner, rewarding for indiwdual conlribulFJns to the School's success. GOVERNORS The Chair of Govemors 15 Mr Martin Kirby, who has a long-standing relationship with Berkhampslead School by way of ex parent and former Chair of the Finance and General PuTP05es Committee. The Governing Body continues 10 strongly support the School, "Governors. days" had been restarted following the end of the Financial Year. Governors attend courses and seminars to ensure that they are fully informed wlh regard to Governance and work closely with the senior management and leaching staff supporting and challenging their wotk at all limes. The Full Board is infom)ed and supported by three main COMM￿eeS,. Compliance, Finance and General Purposes. and Education, who meet at least once a term. Named Govemors are allocated responsibility for monitoring Healih and Safety and Safeguarding. The Governors are aware of the new Charity Governance Code issued In July 2017. A review wll be undertaken of the guidance in order to ensure that the School Is working in line with the code. in all ways where it 15 practical to do so. Page 2 BERKHAMPSTEAD SCHOOL ICHELTENHAMI TRUST LIMITED IA company limited by guarantee) GOVERNORS. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2022 GROUP STRUCTURE The School has one wholty owned non-char((able subsidiary, Berkhampslead School (Day Care Nursery) Limrted. The trading activities of the subsidiary consist of the provision of a day nursery. Annual profrts will be donated lo the School under the Gift Aid Scheme where appropriate. Transactions between these entities are detailed within Note 10. BOARD POUCY AND PUBLIC BENEFIT AIMS The board policy continues lo put excellen￿ in both teaching and learning as the prime strategic objective. We consider that this is brought about by providing an environment where every child is known and cared for in happy and fun surroundings. Effort and achievement in all areas a￿ encouraged and recognised. Governo[5 appreciate the importance of the very high standard of pastoral care that Berkhampslead continues lo provide so that the children are supported in every way throughout their lime in the school. Berkhampstead is a feeder school" for a variety of secondary schools both in the maintained sector and independent schools. The teachers provide advi￿ and guidance so that the pupils are able lo transfer confidently lo the school of their choi￿. Several pupils gain places at local grammar schools and others achieve awards al independent schools. There is a large variety of after school clubs and ac11V11ies so that the children can develop individu8lly in areas outside the main curriculum. Throughout the school participation is encouraged In Music, Drama, Art and Sport. In administeTing the charity, the charity Govemors have complied with their duly in section 17 of the Charities Act 2011 and have paid due regard to the published Charity Commission guidance on the operation of the Public Benefit requirements. The School continues to allow ils facilities to be used by local organisalions for music, yoga. Chess and local speakers. REVIEW OF ACTIVITIES AND ACHIEVEMENTS The School continues to go from strength to strength and having received an oulslanding ISI inspection in December 2019 we are aware that there is no room for complacency in any area of School life and it will continue lo Strive for excellence across the board. Academically this was another excellent year. Of 36 pupils, 9 went on lo grammar school. 16 continued wrthin independent education and 11 went to maintained schools or home education. The 36 pupils leaving the School would go on lo 15 different leaching establishments which highlights the School's ability to cater for a wide range of individuals where not only are they well-prepared for the next stages of their education, their next environment will be well-suiled lo their indiwdual needs. Furthemore. the pupils leaving the School were awarded 14 scholarships for their academic, sport, drama and music prowess. Whilst the academic success of the school is ￿rtaInty regularly acknowledgeLf and celebrated, the School regularly promotes and celebrates the achievements of those who participate and excel in other arèas of school lrfe and outside in the local community. The School continues lo take pride in the excellent quality of our pastoral care and the well-being program is embedded in the school day. 11 aims to gwe children the too13 to manage their own well-being which aids learning. The School has been awarded the Mental Heath Champions Award. The School was delighted lo be Tecognised by th8 'So-Glos' Award scheme as the 'lndependent School of the Year, in Glouceslershire. This has been an excellent Improvement upon the previous year's 'Runners up, award and demonstrates the excellent following the School and Nursery enjoys. The sporting successes have again been very good, and the school punches above ils weight in terms of nning at fixtures against other schools. Sport continues lo be an important aspect of school life, with everyone from Years 3 - 6 taking part in matches. There were numerous sporting clubs across the school. There were ￿gUlar musical perfomances during this school yeaT. As well as termly, in-house recitals showcasing musicians of all abilities, there were Christmas nalivilies and services, the Spring Concerts at the Pump Rooms and the Summer productions. Harvest Fastival and the Easter Service at All Saint5. Church also Page 3 BERKHAMPSTEAD SCHOOL ICHELTENHAMI TRUST LIMITED {A company Ilmlted by guarantee) GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2022 show¢ased musi¢ at Betky. All of Year 6 performed in their Summer production, 'Pirales of the Cury Bean. and the majority at leavers, recital at the Parabola Art Cenlre. An abundance of music clubs were offered in the Autumn and Spring lems. The enrichment progiamme of activitiès and visits Continued to be diverse and slimulaling adding a valuable dimension to the children's learning. Visrts ranged from residential trips for Years 5 and 6 to Viney Hill Outdoor Adventure Cenlre, We the Curious for Year 5. Chepslow Castle for Year 4, Warwick Castle for Year 2 Crickley Hill for Kindergarten and Bristol Aquarium for Years 1 and 2 children. Year 6 also took part in a crime investigation workshop and a mosaic workshop. Their fi'nished mosaics are on display in the Jubilee Garden. The pupils have been encouraged to become involved in various fundraising activities. Voted by the School Council, the two main charities for this year were Maggie's Chellenham and the World Wide Fund for Nature. The School Eco Committee delivered on a number of initiates during the year ranging from an Eco Christmas Acrostic Poem Competition in the Prep Sch¢x)l and an Eco-Friendly Arts and Crafts Day for Years 1 and 2. Litter- picks are a regular occurrence and the Prep and Pre-Prep commillees grew plants to sell at the Summer Fete. Children all over the school were encouraged to lake part in the 'Berky Eco Pledge,, and quite a few achieved their Eco Warrior Badge. Speech Day for the Year 6 pupils leaving the School had taken place in All Saints Church which had not been possible for the past 2 years owing lo the COVID-19 pandemic. Parents, staff and Govemors returned to the School for canapes and refreshments. Pupil numbers were extremely strong al the end of the year," 45 were in Kindergarten, 100 in the Pre-Prep and 141 in the Prep department. There were 140 children on role at the Day Nursery. The number of enquiries has been very positNe throughout the year. Follow up of initsal enquiries and subsequent visits have been ¢arefully monitored. The Open Days continued on an appointment only basis and proved lo be popular events. FINANCIAL REVIEW AND RESULTS FOR THE YEAR Net income for the year lolalled £12,8os (2021 net ii?come £1 12,57n. The consolKlaled unrestricted general fund of the group at 31 August 2022 was £2,169,462 (2021.. £2, 156.357). In addition. the balance of funds upon which restrictions have been placed by donors is £1,647 (2021.. £7.946J. DEVELOPMENTS The School continues to invest in the fabric of the buildings, a continual rolling Maintenan￿ program and the Board and Senior Management continue lo consider ways of optimising the space available for the pupils. The Boys Changing Rooms had been replaGed, automatic light sensors had been installed in the Prep building to reduce energy ¢onsumplion, all LCD TV screens had been upgraded in all classroom5 across the School to enable the iPad leaming environment and the Prep building had been refurbished along with the Jubilee garden. The Day Nursery continues to thrive and 1s a happy and safe environment for the children. The number of children transferring either lo 8erkhampslead Kindergarten or to Reception at a later age has remained high and exceeds expedations. The Nursery has become more inlegraled into the main School and the children are often Included In activities such as music and French. They have access lo all the School indoor and outdooi faalilies for their activities and concerts. The active PTA has continued lo raise funds throughout the year by means of the operation of the second hand unrfomi shop. Owing to COVID-19, Bonfire night and the Christmas Fayre had to be c&ncelled. Page 4 BERKHAMPSTEAD SCHOOL ICHELTENHAMI TRUST LIMITED IA company limitgd by guarant901 GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2022 FUTURE PLANS Investment will lake place in outdoor devek)pment for the Day Nursery. Plans include activrties and an area covered by a canopy to enable more free flow in5ideloutside play even in inclement weather," The creation of a new access point be￿een the Day Nursery and the Kindergarten will help collaboration behyeen the two departments., The GymlHall in Prep will be replaced with a more modern building to accommodate drama and music perfomiance5. RESERVES POLICY The Governors aim to build up the free reserves of the Trust lo ensure that these are sufficient lo cover recurring expenditure in the short term to allow for possible loss or delays in respect of income. In common with most Independent s¢hools Berkhampslead has negative free reserves. Al 31 August 2022, the lolal unrestricted reserve was £2,169,462 with fixed assets valued at £2,601,691 resulting in negative free reserves of £432.229. In re￿nt years the Govemors have invested significant sums in improvements to the School faciltties which have attracted pupil numbers. Improvements have been funded by long term loans se¢uTed on the freehold property. Al 31 August 2022, £210.188 was due in over 5 years. time. INVESTMENT POLICY Under the direction of the Goveming Body, investment of the School's funds may be applied in any of the following.. Land or Propety whether freehold or leasehold. Investments in which the Governing Body feel appropriate, considering any risk which may be Involved being at a minimum. The Improvement or development of propety belonging to the School. The approval of this policy. and any amendments lo it, are a matter reserved for the Goveming Body. The policy will be reviewed at intervals of no more than two years. The Governing Body has deleg*ed responsibility and authority for the moni(oring of the performance of investments to the Finance and General Purposes Committee. For the purpose of this policy, the lem 'investment' is r￿arded as the purchase, holding and sale of Investments Wlih a view to achieving a return, by way of income andlor capital gr<)wth. with an under8tanding that the capital value may go up or down. Placing money on deposit, in Bank deposit accounts or in dep051t funds. is not regaTded as 'investmenl' and il is recognised that keeping funds in Bank accounts in the longer term will almost certainly lead to erosion of real Capital values. Long and short-temi objectives.. The long-temi investment objective of the School 1$ lo protect the real value of the School's invested Capital by reference to the Retail Prits Index IRPII and to produce real growth in net investment income arising therefrom without undue risk. The short4emi objective is lo achieve the long-lerm objective wf(hout undue fluctuations year by year in the income arising frtsm investments. Qualifying investments and criteria are established by the Governing Body. The investments shall be those in which the Goveming Body are pemitted to invest by Law. Page 5 BERKHAMPSTEAD SCHOOL ICHELTENHAMI TRUST LIMITED IA Company limited by guarantee) GOVERNORS. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2022 RISK MANAGEMENT All committees are charged with the need lo review risk and to check school policies that affect them specrfically. All commillee-level risk registers infom) the Board Risk Register which is an agenda item al all board meetings. The Governor with responsibility for Heatth and Safety has continued to meet with the Bursar and Estates Team each term and report lo the Governing body. Financial performance is compared lo budgets. which are prepared on an annual basi5, for each of the three terms In the year and for the year as a whole. The Finance Committee meets regularfy lo discuss financial perfomiance and future funding requirements. The Chaim)3n of Governors meets the Headmaster regularly and also the Bursar when possible. The Compliance Committee, Finance and Geneial-Purposes and the Education Committee report to the Full Board. This structure has proved effective in enabling the Govemors to meet their obligations. Reports from extemal agencies providing expertise in areas such as water. fire safety and asbestos management continue lo be sought, acted upon and signed off. PRINCIPAL RISKS AND UNCERTAINTIES The 3 Pnnciple Board Risks are the Impact of Brexit and other economic such as inflation creating the cost of living crisis, staff retention in key positions and a possible change in government. GOING CONCERN Govemors have assessed the financial position of the School and ils subsidiary and whilst there are signrficanl financial pressures on the independent education sector associated with the impact of the pandomic, Brexit. energy prices, the effect of losing charitable slalus, the crisis in the Ukraine as well as increAs 13 the national livin9 wage. pupil and child numbers have increased beyond expectations and the level of Interesl in the School Continues lo impress. The Nursery continues lo have a waiting list for a number of rooms and this trend should continue into the future. STATEMENT OF GOVERNORS, RESPONSIBILITIES The Governors Iwho are also directors of Berkhampslead School Ichellenhaml Trust Limited for the purposes of company lawl are responsible for preparing the Governors, Report and Ihe financial statements in accordance with applicable law and United Kingdom Accounting Standards IUni(ed Kingdom Generally Accepted Accounting Practice). Company law requires the Governors to prepare financkAI statements for each financial year. Under company law the Governors must not approve the financial statements unless they are satisfied that they give a true and fa1r view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure of the charrtable group for that period. In preparing these financial slatemenls, the governors arg required to". select suitable accounting policies and then app￿ them consislenlly., observe the methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent., stale whether applicable UK Accounting Standards IFRS 1021 have been followed, subject to any material departures disclosed and explained in the financial statements., prepare the financial slalemenls on tho going concem basis unless bt is inappfopriatg to presume that the charitable group will continue in operation. The Governors are responsible for keeping adequate accounting records that are sufficient lo show and explain the charitable company and the group's transactions, disclose with reasonable accuracy al any time the financial P0511ion of the charitable group and enable them to ensure that the financial slalements comply with the Companies Act 2006. They are also responsible for safeguarding the asset5 of the char1table company and the group and hen￿ for taking reasonable steps for the prèvention and detection of fraud and other Irregularities. Page 6 BERKHAMPSTEAO SCHOOL ICHELTENHAMI TRUST UMITED IA company Ilmlted by guarantee) GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2022 DISCLOSURE OF INFORMATION TO AUDITOR Each of the persons who are Governors al the lime when this Governors, ￿port is approved has confirmed that". so far as that Governor is aware. there is no relevant audit infomialion of which the charitable Group's auditor is Ljnaware, and that Govemor has taken all the steps that ought lo have been taken as a Govemor in order to be aware of any relevant audit infomialion and lo establish that the charitable Group's auditor is aware of that infomialion. AUDITOR The auditor. Crowe U.K. LLP, has indicated his wllingness to continue in offiee. The designated Governors will propose a motion reappointing the auditor at a meeting of the Governors. Approved by order of the members of the board of Governors and signed on their behaff by.. Mr M A Kirby Chair of Trustee5 Date. ai 3 13 Page 7 BERKHAMPSTEAD SCHOOL ICHELTENHAMI TRUST LIMITED A company limited by guaranteel INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BERKHAMPSTEAD SCHOOL {CHELTENHAM} TRUST LIMITED Oplnion We have audited the financial slalemenls of Berkhampslead School Ichellenhaml Trust Limited Ilhe 'parenl charitable companll and ils subsidiaries Ilhe 'group'l for the Year ended 31 August 2022 which comprise the Consolidated slalemenl of financial aclivilies. the Consolidated balance sheet, the Company balan￿ sheet. the Consolidated 5tstement of cash flows and the related notes. inclLJding 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 slalements.. give a true and fair view of the state of the Group's and of the parent charitable company's affairs as a131 August 2022 and of the Group's incoming resources and application of resources, including its income and expenditure for the Year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance wrth the reqU1￿MentS of the Companies Act 2006. Basis for opinion We conducted our audi( in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial slalemenls section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom. including the Financial Reporting Council's Ethical Standard. and we have fuLfilled our other ethical re$ponsibililies In accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to oolng concÈrn In auditing the financial slatemenls. we have concluded that the Governors, use of the going concem basis of accounting in the preparation of the financial slalemenls is appropriatè. Based on the work we have performed, we have not identified any material uncertainties relating lo events Dr condrtions that, individually or collectively, may cast significant doubl on the Group's or the parent charitable company's ability lo continue as a going concem for a period of at least twelve months from when the financial slalements are aulhorised for issve. Our responsibilities and the responsibilities of the Governors wf(h respect to going concern ale described in the relevant sections of this report. Page 8 BERKHAMPSTEAD SCHOOL ICHELTENHAM} TRUST LIMITED IA company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BERKHAMPSTEAD SCHOOL ICHELTENHAM) TRUST UMITED (CONTINUED) Other information The other information comprises the information included in the Annual report other than the financial slalements and our Auditor's report thereon. The Governors are responsible for the other information contained wrthin the AnnLJal report. Our opinion on the financial statements does not cover the olher infom)alion and, ex¢epl to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially Inconsislenl with the financial statements or our knowledge obtained in the course of the audrt, or otherwise appears to be materially misslaled. If we identify such material in¢onsisten¢ie$ or apparent material misstalemenls, we are required to detemine whether this gNes rise to a material misslalement in the financial slalements themselves. If, based on the work we have performed. we conclude that there is a material misslalement of this other information, we are required lo report that fact. We have nothing lo report in this regard. Opinion on other matters prescribed by the Companies Ad 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Governors, report including the Strategic report for the financial Year for which the financial slalemenls are prepared is consislenl with the financial statements. the Governors, report and the Strategic report have been prepared in accordan￿ with applicable legal requirements. Matters on which we are requlred to report by exception In the light of our knowledge and understanding of the charitable company and ils environment obtained in the course of the audit, we have not idenljfied material misslalement5 in the Governors, report including the Strategic report. We have nothing to report in respect of the following matters in relation lo which Companies Act 2006 requiies us to rgport to you if, In our opinion. the parent charitable Company has not kepl adequate and sufficient accounting records, or relums adequate for our audit have not been received from branches not visited by us.. or the parent charitsble company financial statements are not in agreement with the accounting records and relums., or certain disclosures of Governors. remuneration specified by law are not made., or we have not received all the information and explanations we require for our 3udf(. Page 9 BERKHAMPSTEAD SCHOOL ICHELTENHAMI TRUST LIMITED IA company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BERKHAMPSTEAD SCHOOL ICHELTENHAMI TRUST LIMITED ICONTINUEDI Responsibllities of trustees As explained more fully in the Govemors, responsibilities slalement, the Governors (who are also the directors of the charitable company for the purposes of company lawl are ￿sponsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such inleTnal control as the Governors determine is necessary to enable the preparation ol financial statements that are free from material misslalemenl. whether due to fraud or error. In preparing the financial statements, the Governor5 are responsible for assessing the Group's and the parent charitable company's abilrty lo Continue as a going concern, disclosing. as applicable. matters related to going concern and using the going concern basis of accounting unless the Governors erthef intend lo liquidate the Group or the parent charitable company or lo cease operations, or have no realistic allernalive bul to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due lo fraud or error. and lo issue an Auditor's Teport that includes our opinion. Reasonable assurance is a high level of assurance. bul is not a guarantee that an audrt conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misslalements can arise from fraud or error and are considered matarial if, individually or in the aggregate, they coufd reasonably be expected to influence the economic decisions of users taken on the basis ol these financial statements. Irregularities, including fraud. are instances of non-compliance wf(h laws and ￿gUlations. We design procedures in line with our responsibilities, outlined above, to delecl material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates. focusing on those laws and regulations that have a direct effect on the delerminalion of rnalenal amounts and disclosures In the financial statements. The laws and ￿gUlatIOnS we considered in thi5 context were the Companies Act 2006. laxalion legislation, together with the Charities SORP IFRS 1021. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial Statement items. In addition. we considered provisions of other laws and Tegulations that do not have a d1￿cl effect on the financial slalemenls bul Compliance with which might be fundamental lo the charitable company's ability to operate or lo avoid a material penalty. We a150 considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were The Education Ilndependent School Standards) Re9ulation$ 2014. General Data Protection Regulation IGDPRI, Héalth and safely legislation. and Employment legislation. Audrting standards limit the required audit procedures lo identify nonnsuttation, the Government have accepted three key proposals récornmended by the Governmènt A¢tuary. and are aiming lo implement these ¢hanges in lime for the 2020 valuations. The 2016 cost control valuations have since been completed in January 2022, and the resuf(s indicated that there would be no changes to benefits or mèmber contributions required. The results of the cost cap valuation are not used to sel the employer contribution rate. and HM Treasury has confirmed that any Changes to the employer contribution rate resulting from the 2020 valuations will take effed in April 2024. Until the 2020 valuation is completed il is not possible to conclude on any financi81 impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefrt pension costs is included In these financial slalemenls Page 38 BERKHAMPSTEAD SCHOOL ICHELTENHAMI TRUST LIMITED {A company Ilmited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 26. Pension commitments {continuedl Scheme for non-taaching stsff The School operates a defined contribution scheme for ils non-leaching staff, the assets of which are held separately from those of the School. The pension costs charged represents contributions payable by the School to the scheme and amounted lo £60,412 (2021 £29. 620) for the year ended 31 Augijst 2022. At the year end £2.437 {2021- £6.415) was due lo be paid. 27. Operating lease commitments At 31 August 2022 the Group and the Company had commitments lo make future minimum lease payments under non-cancellable operating leases as follows.. Group 2022 Group 2027 Company 2022 Company 2027 Not later than 1 year Later than 1 year and not ￿ter than 5 years Later than 5 years 37.072 88,768 11,096 7T,515 49,910 37,072 88,768 11,096 17.515 49.910 136,936 67,425 136,936 67,425 The following lease payments have been recognised as an expense in the Statement of financial activities". Group 2022 Gmup 2021 Company 2022 Company 2021 Operating lease rentals 27,989 23,242 27,989 23,242 28. Related party transactions There were no other Rel8ted Party Transactions other than those disclosed in note 14 and 16. Page 39