NEWCASTLE SCHOOL FOR BOYS Company No. 1196898 Registered in England Charity No. 503975 NEWCASTLE SCHOOL FOR BOYS A company limited by guarantee ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS INDEX TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 AUGUST 2024 Contents Page Governors, Officers and Advisers Annual Report of the Gurfemors Strateglc Report Statement of Accounting and Reporting Responsibilities 10 Independent Auditor's Rew)rt 12 Statement of Financial ktivities 16 Balance Sheet 17 Cash Flow Statement 18 Notes to the Financ7al Statements 19
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS ANNUAL REPORT OF THE GOVERNORS FOR YEAR ENDED 31 AUGUST 2024 GOVERNORS, DIREcfoRS AND CHARITY TRUSTEES The Governors of Newcastle School for Boys {"the School") are the School's charity trustees under charity law and the directors of the charitable cornpany. The members of the Governlng Body who served In office as Governors during the year and subsequently are detailed below. Finance Sub-committee Strategy Sub-committee Pro rt Sub-committee Finance Sub.Comrnittee Strate Sub-committee Pu il Wellbein Finance Sub-committee Finance Sub-committee Health and Safet Sub-committee Education Sub-committee Marketin Sub-committee Pro rt Sub-committee Mr T Care (Chairman) MrMRGIII' Mrs L Graham ' Mrs C Kin Dr N Lloyd-Jones resi ned 3 October 2024 Mrs S Melbourne Mr P Parkinson MrJSkes Parent of pupll at the sChl OFFICERS Mr D J Tickner Mr D Todd Executive Head Bursar and Clerk to the Governors Webslte www.newcastleschool.co.uk Prlnclpal address and Reglstered Office 30 West Avenue, Gosforth, Newcastle upon Tyne. NE3 4ES Audltors Joanne Regan FCA- Senlor Statutory Auditor, for and on behalf of Azets Audit Services, Bulman House, Regent Centre, Gosforth, Newcastle upon Tyne NE3 3LS Bankers Barclays Bank plc, Newcastle Corporate Service, 7th Floor, Bank House, East Pilgrim St, Newcastle-upon-Tyne NE16QE Solldtors Muckle LLP, Time Central, 32 Gallowgate, Newcastle upon Tyne, NE14BF Ward Hadaway LLP, Sandgate House, 102 Quayside, Newcastle upon Tyne NE13DX Insurance Broker Marsh Limited, Capital House, 1-5 Perrymount Road, Haywards Heath, West Sussex RH16 3SY
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS ANNUAL REPORT OF THE GOVERNORS FOR YEAR ENDED 31 AUGUST 2024 The members of the Newcastle School for Boys Governing B(xly present their Annual Report for the year ended 31 August 2024 under the Charities Act 2011, including the Directors, and Strategic Reports, under the Companies Act 2006, together with the audited financTal statements for the year. REFERENCE AND ADMINi¥fRATIVE INFORMATION The Charfty was founded In 1975 as Newlands Educational Trust and fs registered with the Charity Commission under Charity No. 503975. Newiands Educational Trust merged with Ascham House School Trust Limited on 1 September 2005 and changed its name to Newcastle School for Boys ("the School") on 6 September 2005. The School is constituted as a company limlted by guarantee registered in England, No. 1196898. Details of the members of the Governing Body, together with the School's officers and principal advTsers, are given on page 1. STRucfuRE, GOVERNANCE AND MANAGEMENT Governlng documents The School is governed by ?ts Memorandum of Association and Articles of Association last amended January 2014. Governlng Body The Governing Body is self-appointing, with members completing three years of service required to retlre at each AGM. Members retiring can be re-elected. New members of the Governing Body are elected on the basis of nominatlons frorn the Govemors and the executive officers based on the candidates. professional qualities, experience) personal competence and local availabillty. Recrultment and trafnlng of Governors New Governors are introduced into the workings of the School, including Governing Body policy and procedures, at an induction workshop specially organised for them by the Head and Bursar. The new Governors also attend specialist extemal courses on the role and responsibilitles of charity trustees. Members of the Governing Body attend extemal trustee training and information courses designed to keep them informed and updated on current issues in the sector and regulatory requTrements. Organlsational management The members of the Governing Body, as the charity trustees, are legally responsSble for the overall management and control of the School and its senior and preparatory schools. They met five times in the year ended 31 August 2024. The work of implementing their policies is carried out by members of the Sub-committees: The Finance Committee scrutinises revenue, the budget and capital expenditure. This Committee also supervise and finalise the audited financial statements and annual report for approval by the Governing Body. The Finance Committee 15 chaired by Titn Care.
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS ANNUAL REPORT OF THE GOVERNORS FOR YEAR ENDED 31 AUGUST 2024 The Property Committee, chaired by Jonathan Sykes, works to develop and implement a strategy making best use of facilltles and identify altemative solutions. The Marketlng Cornrnittee works closely with the Director of Marketing and Admlsslons, developing the brand, assessing advertising effectiveness and developing social network activity. The Nominatlons Committee Identifies Potential new Governors when the need arises, considering specific skills that would strengthen the relevant the Governing Body. The Education Committee considers educational and pastoral pollcy. The Committee is chaired by Sue Melbourne. The Strategy Committee investigates and evaluates possible solutions or actions that address longer term risks and opportunities. Dr Neil Lloyd-Jones is a member of the School's Health and Safety Committee Mrs Sue Mellx>ume is the responsible govemor for Safeguarding. The day-to-day running of the School is currently delegated to the Executive Head, supported by the Bursar, Head of Senior School, Senior School Deputy Head, Head of Junior School and the Director of Marketing and Admissions, who work together as the Senlor Leadership Team. The Executive Head and Bursar attend all meetings of the Govemors. Group structure and relatlonshlps Newcastle khool for Boys has no trading subsidiary company. The School co-operates with a number of Ial charities in its ongoing endeavours to widen public access to the schoollng that it can provlde, to optimise the educational use of sporting and cultural facilities and to awaken in its pupils the awareness of the wider social context of the education that they receive at the Sthool. Employment pollcy The School is an equal opportunities employer. Full and fair consideration Is given to job applications from disabled persons and due consideration is given to their training and employment needs. Consultation with employees, or their representatives, has continued at all levels with the aim of taking the VIev of employees into account when decisions are made that are likely to affect their interests. Ernployees are made aware of the financial and economic performance of the School. The School's pay policy is in line with national pay scales. Communication with employees continues through normal management channels in a variety of forms and also through exceptlonal channels Lo apprise Staff of current issue5. OBJECTS, AIMS, OBJEcfivES AND ACTIVITIES Charftable Objects The School's Objects, as set out in the Memorandum of Association, are the advancement of education for boys. In furtherance of these Objects for the public benefit the School has established and administers bursaries, awards and other benefactions, and acts as the trustee and manager of property, bequests and gifts given or established in pursuance of these Objects. The Board is mindful of the long-standing need to provide public benefit and of the requirements of the Charities Act 2011, and with due consideration to the Charities Act 2022.
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS ANNUAL REPORT OF THE GOVERNORS FOR YEAR ENDED 31 AUGUST 2024 In thfs connectfon the Board has monitored closely the guidance on public benefit produced by the Charity Commission together with its supplemental guidance on fee-charging. Publlc Benefit and Intended Impact In meeting these Charitable Objects, Newcastle School for Boys. public benefit aims are: to make excellent, accessible education available to as many boys as possible, to serve and support the local and wider community, and to develop boys and young men of excellent character, who recognise and fulfil their obligation to the local communlty an(J wider society. Excellent teaching Is combined with an ethos that believes in knowing each boy as an fndividual to create an environment where the highest posslble academic standards are achieved. School Ethos and Alms The School provides an excellent all-round learning experlence, in an envTronment that is supportive and actively promotes wellbeing. We alm to challenge and support each pupil to achieve the highest levels of: Individual academic progress Character development. As one of the newest schools in the independent sector, Newcastle School for Boys Incorporates traditfonal values whilst preparing all boys for the changing expectations and demands of modern Ilfe. The School is notable for its small size, with comparatively small class sizes and as an overall school. Each pupil who joins Is well known to his teachers and taught as an individual. Each pupil's individual talents and aspirations are reco8ni5ed and supported. Outslde of the classroom, pupils are given the opportunity to bring their learning to life on a number of exciting educational and sporting trips such as science trips to CERN and international sports tours. Our pupils are also encouraged to play their part within the comrnunlty, whether through voluntary and charitable work or valuable work experience in some of the region's most highly regarded organisations. Pastoral care Is second to none. Pupils are offered support around matters both in and outside of school to ensure they are prepared for the many challenges they may face. From their very first years until the day they leave the School, pupits partTCTpate in a character education programme, developing values of community, integrity, resilience, courage, leadership and empathy with the airn of developing as young men of excellent character, equipped with the tools needed to go on to lead successful and fulfTlled lives beyond school. Strategles to achleve the prlmary objectlves Emphasis is placed on the provision of outstanding teaching and learning throughout the School.
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS ANNUAL REPORT OF THE GOVERNORS FOR YEAR ENDED 31 AUGUST 2024 The Governors and Senior Leadership Team work hard to ensure the best financial position to secure the future development of the School. hAlditional funding is provided by the NSB Parents Association and is often targeted to provide finance for specific projects. Prlncipal actlvlty The School's principal activity, as specified in the Memorandum of Association, is the advancement of education and, In this, the School has again had a successful year. The senior school averaged 264 pupils {2023: 264) and 124 in the Junior School (2023: 111). The School participates In the Government's free early year funding, offering 15 hours of tuition to under 5's, and 30 free hours to eligible farnilies, funded by the local government. Publlc beneflt and fee remlsslons Newcastle School for Boys remains committed to the aim of providing public benefit in accordance with its founding principles. Charity legislation includes a requirement to demonstrate that public benefit for any charitable purwise and therefore commensurate discLosure of the fulfilment of the School's public benefit aims. In particular, the School's bursary programme seeks to make its education as accessible as possible for those who may otherwise be unable to meet the cost of school fees. To ensure falrness, all bursary awards are established according to detailed criteria and careful means-testing in relation to their beneficiaries, financial and other circumstances. The awarding of bursaries is a quantlfiable means of demonstrating public benefit. The School's governors take the view that bursaries awarded to those who would not otherwise be able to afford the fees are Important, but not to the exclusion of the wider benefit that the 5ChooI also provides withln the community. Those pupils who attend the School and who receive financial support contribute to the school community in a variety of ways, and so the benefit is not purely to these pupils but to the whole School and the wider community. During the 2023124 acadernic year bursaries totalling £473,000 were awarded to 58 pupils, including 4 for full fees (2023: 61 bursaries totslllng £478,OCM), 4 for full fees). The total cost of bursaries represented 7.8% of the School's gross fee income (2023: 8.7%). The balance of bursary and other awards remain under careful review by governors particularly in the context of the additional financial challenges currently faced by all independent schools including the introduction of VAT on fees The School supports actively the attalnment of the highest standards of education through rigorous and continuous evaluation of quality and performance, the application of best practice and a wldespread desire to improve standards. We cooperate wlth Local charities and educational bodies in our ongoing endeavours to widen public access to the schooling we provide, to optimise the use of our cultural and sporting facTlities and to awaken in our pupils an awareness of the social context of the all-round education they receive at the School.
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS ANNUAL REPORT OF THE GOVERNORS FOR YEAR ENDED 31 AUGUST 2024 STRATEGIC REPORT - Achlevements and Perforrnance Governors continue to follow the principles set down in the Strategic Plan 2022-27. However, the political changes in the year and the resultant changes in taxation treatment and cost base have required Governors to adapt during the year. Progressive and Relevant Curriculum The School realised its plan to issue one-to-one devices to Senior School pupils and all staff last year and continues to develop teaching methods using these toots. Effective use of technology supports the delivery of a superior educational experience facilitating more individualised leaming including through the ease of access and teacher feedback. It also helps pupils to develop digital 17teracy and other important skills highly valued by employers and society such as collaboration and creatfvity. In academic performance, at A level, over 61% of grades were awarded A. to B and over three quarters178%) A" to C. Within the School's unique offer of applied and vocational sixth form qualifications, students achieved a 100% pass rate with 19.0% achieving starred distinctions. For those students applying for immediate university entry, all achieved offers allowing thern to progress including a number who were able to "trade up" due to thp strenvth of their results. At GCSE, pupils once again outperformed national standards. Over 90% of pupils achieved grades at 9 to 4 compared to the national figure of 67%. Puplls In the Junior khool also continued to achieve exceptionally well academically particularly in reading and maths. Assessments sat towards the end of the academic year showed that 91 % of pupils from Years 2 to 6 achieved results that were at, or above the age- related expectations for reading. In Mathematics in Years 1 to 6, this figure rose to 80.0%. The breadth and opportunity of the School's co-currTcular programme is remarkable with close to 100 different activitles per term enga£ing piipils across the whole school delivered in the main by the School's own staff supplemented by some specialist external providers. Pupils and the wider school communlty enjoyed participating in Christmas and summer term concerts, the School's invitation concert in May along with harvest, Christmas and Easter services. Further hlghlights were two highly entertainlng drama performances at the Junior School and the Senior School's outstanding joint production of The Addams Family with a local independent girls, school at Northern Stage which saw three sell out performances. The School continues to promote pupils, participation in the Duke of Edinburgh's Award Scheme with many taking part in volunteering in the local community as part of their programme. During the 2023124 academic year, three pupils achieved their gold awards. five silver and eight bronze. The School's Under 18 rugby team were county champions and the same age category cricket team, north of England r20 finalists. In the Junior School, the Under 11s were Newcastle and Northurnberland small school champions in football and Newcastle City runners.up in athletics. Year 9 pupils combined again this year with the gTris at the local independent girls. school, Westfield, to form a mixed touch rugby team that had an excellent trip to Worcester's Sixways Stadium for the national finals. After a tough day of competition, they narrowly lost out on a
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS ANNUAL REPORT OF THE GOVERNORS FOR YEAR ENDED 31 AUGUST 2024 trip to Twickenham only on points difference. The squad can be very proud of how quickly they gelled and worked together after only a handful of training sessions. Indivfdually, several pupits have achieved national and international sporting success during this academlc year including representing England in the 2024 Under 19 cricket world cup in South Africa alongside first class and T20 debuts for Durham CCC: reprenting the national Lambs representative invitational nbY team" and Scottish men's gyrnnastics Under 18 all- round champion and selection for the national senior squad. A new partnership approved by the Premier League saw the School deliverfng full-time education on behalf of the Newcastle United football academy with two pupils selected for the England Under 15 squad. Prudent management of costs, cash and reserves Managing the school's cost base and managing the cost challenges facing the school are the overriding threads to all internal reviews. Govemors will continue to review the cost base of the school to ensure the best value for money for parents. while resourcing the best currlculum possible and developing staff professionally and pastorally. Governors remain conscious that the scale of the school, with small class sizes and a personalised educatfon for each boy in school is a key component for parents. This needs to be achieved at a fee that is affordable to parents, after the imposition of VAT. the removal of Mandatory Rate Relief in the year and the increases in Employer National Insurance contributions, as well as overall cost increases. In addition, the School continues as a charity with the consequent requirements for delivering charitable benefits. Consultation wlth teaching staff during the year on pension provision led to the creation of a defined contribution scheme for thosc who wished to exit the Teachers, Pension Scheme. This has been achieved from September 2024 with Royal London Pensions. Those teachers wishing to remain in the Teachers Pension Scheme have been able to do this while making a contribution to the increasing employer costs of the scheme. Governors will continue to review pay scales and increments against local and national norms and seek to remain competitive in the market. Publlc benefit and communlty engagement The School remains committed to achievlng dernonstrable pubLic benefit and engaging with and supporting our local community. 'Community' is one of the core virtues Within the School's character compass that helps to shape the puplls, personal development. The School's extensive scholarship and bursary programrnes eks to make our education as accessible as possible for those who may otherwise be unable to rneet the cost of school fees. The School's valuable partnership work undertaken with two local state primary schools was recognised and celebrated nationally in a publication produced by the Independent Schools Council (SSC) Celebrating partnerships.
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS ANNUAL REPORT OF THE GOVERNORS FOR YEAR ENDED 31 AUGUST 2024 In relation to its charitable work and public and community benefit, the School ran seven partnership events during this academic year engaging 27 local state schools and benefitting 493 of their pupils. This included an expanded verslon of the School's annual choral day where Senior and Junior School singers were Joined by over 1(M) children from Christ Church Primary School in North Shields; Kings Priory School; Moorside Primary School in the West End of Newcastle and Westfield School. In January, the Junior School choir, joined with other (ocal state and independent school choirs at the Holocaust Memorial Day commemorative event held at Newcastle City Library and sang movingly on the event's theme of the fragillty of freedom. At Christmas, the Senior School chamber choir brought a great deal of joy to the local community singing carols in The Gosforth Shopping Centre and at the local Abbeyfield residential care home on The Grove. Similarly, Junior School art reached out into the local community to provtde Christmas stars for the Gosforth Shopping Centre. School and house sport contlnued to make slgnificant contributions not just to the School's pupils. wellbeing and character development bijt providing OPFK)rtunitTes for those Tn the wider community hosting several local state schools: junior football festivats, several age group rugby sevens events as well as table tennis with a lot of the organ7sation and delivery of these events provided by the School's sixth form sports leaders The School continues to participate in the government's 30-hour free nursery provision for early years enabling more children to benefit from the excellent teaching and supportive environment at the start of their education. FINANCIAL REVIEW Results for the year The School's rnovement in resources for the year amounted to net incoming resources of £28,858 (2023 net outgoing resources: £76,031). The Governors have taken the decision to utilise earnings generated and retained in previous years to avoid passing on to parents the full 7mpact of extraordinary cost increases, particularly in VAT from January 2025. Reserves Level and Pollcy and Fanancial Vlablllty The Governors maintain close control over expenditure and set fee income at a level which alms to: Meet all revenue expenditure, as well as the cost of providing bursaries and scholarships; Generate a surplus sufficient to cover the level of interest on the School's financing costs; Provide a level of cash flow that is sufficient to cover the capital repayments on the School's loan with Barclay5 Bank; and Maintain, as far as possible, stability in pupil numbers. Following the simplification of the General Fund, at 31 August 2024 total reserves stood at £5,896,172 (2023: £5,867,314), which cornprised unrestricted funds of £5,684,664 (2023:
NEWCASTLE SCHOOL FOR BOYS NEWCAsfLE SCHOOL FOR BOYS ANNUAL REPORT OF THE GOVERNORS FOR YEAR ENDED 31 AUGUST 2024 £5,659,045) and restricted funds of £211,508 {2023: £208,269). The School's premfses and equipment net of loans at 31 August 2024 were £5,381,344 (2023: £5,242,598). The reserves policy requires that total free reserves, as defined by the Charities Commission, cover four rnonths average gross expenditure in order to ensure sufficient funds are maintained in the unrestrlcted general resen to rneet the worklng capital requirements of the School, through the generation of annual operating surpluses. At 31 August 2024 average monthly gross expenditure was £487,811 (2023: £452,966). The free reserves as at 31 August 2024 were £5,670,61712023: £5,584,524). The level of the general reserve 15 tngnitored by the Flnance Sub-cornmittee and adjusted as required through efflcient financial management. Donations for bursaries are held in a Restricted Fund until released to fund assisted fees in future periods. In the current year £39,029 was released to fund bursarles for three boys in the school. PRINCIPAL RISKS AND UNCERTAIKfiES The Governors consider the economlc turbulence of recent years and the affordability of fees by parents across the independent sector to be the principal risk faced by the School. Durlng the year, the change in government has resulted in a change in taxation FM)Sition for the school from 1 January 2025. This will stress parental affordab111ty and place5 a considerable burden on the sector as a whole and the school itself. In addition, the removal of Mandatory Rate Relief and the increases in Employer National Insurance mean the fixed cost base of the school will increase beyond that assumed in the Strateglc Plan. The Governors are actively reviewing options for the future to ensure that the school not only survives but thrives going forward. This, of necessity, behoves governors to look at all costs against the need to provide the very best educatlon for our pupils and competitive employment conditions for all staff. During the year, govemors have reviewed the strategic options available to the school, takfng fnto account all relevant factors of physical structure, costs, external factors such as market demographics and political environment and have formulated a strategic plan. This plan will be refined durlng the year before working with staff and parents to create the most cost effective school possible while retaining all of the key characteristic which make Newcastle School for Boys attractive to parents and pupils. A comprehensive rlsk management process is being implemented, building on the successes of past Health and Safety Management including educationaL visits both locally, nationally and internationally. The risk management process will focus on key areas of risk for the school including Regulatory, Governance, Educational, Financial and Reputational areas. PLANS FOR FUTURE PERIODS The School will continue to work hard to maintain the strength of its finances, assets and resources to ensure that it can continue to deliver successfully its aims and other development objectives, particularly in the face of current and predicted economic, environmental and political challenge and uncertainty. All future developments will aim to reduce the carbon footprint of the school and create, in the long run, a school that is as near carbon neutral as is sensibly achievable within the context of the buildings occupied by the operation. The application of technology remains a key strand in the School's current Strategic plan 2022- 2027. Other focuses include enhanced staff development and sharing of good practice. The
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS ANNUAL REPORT OF THE GOVERNORS FOR YEAR ENDED 31 AUGUST 2024 School will continue to develop a progressive and relevant curriculum and pupil experience meeting the academic. character development and well-being needs of all puplls in a fast changing world. STATEMEKf OF AccouKfiNG AND REPORTING RESPONSIBILrriES The trustees (who are also directors of Newcastle School for Boys for the purposes of company law) are responsible for preparing the Trustees, Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practlce). Company law requires the trustee5 to prepare financial statements for each financlal year. Under company law the trustees must not approve the financial statements unless they are satlsfled that they gTve a true and fair view of the state of affairs of the charitable company and of the incomfng resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing the* financial statements, the trustees are required to: select SU7table accounting policies and then apply them consistently; observe the methods and principles In the Charities SORP 2019 (FRS 102); make judgements and estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial F#)sition of the charitable company and enable them to ensure that the financial statements comply with the Cornpanies Act 2006. They are also re5pon5ible for 5afeguardlng the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware: there is no relevant audit information of which the charitable company's auditor Is unaware; and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit Information and to establish that the auditor is aware of that information. io
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS ANNUAL REPORT OF THE GOVERNORS FOR YEAR ENDED 31 AUGUST 2024 This Trustees Report, including the Strategic Report, Is approved by the Board of Governors of Newcastle School for Boys on 24 February 2024, and slgned on its behalf by: TIM Care (Chairman of Governlng Body) 24 February 2025 li
NEWCASTLE SCHOOL FOR BOYS NEwcAsfLE SCHOOL FOR BOYS INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF NEWCASTLE SCHOOL FOR BOYS Oplnlon We have audited the f7nancial statements of Newcastle School for Boys (the 'charftable cornpany,) for the year ended 31 August 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, Including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reportins Standard appllcoble in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the finandal statements: give a true and fair view of the state of the charitable company's affairs as at 31 August 2024, and of its incorning resources and applicatlon of resources, including its income and expenditure, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practlce; and have been prepared in accordance w7th the requirements of the Companies Act 2006. Basfs for oplnlon We conducted our audit in accordance with International Standards on Auditlng {UK) (ISAS (UK)) and applicable law. Our responsibilities under tho* standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial staternents in the UK, including the FRC'S Ethical Standard, and we have fulfTlled our other ethical re5ponslbllltfes in accordance with these requirements. We believe that the audit evidence we have obtained is Sufficient and appropriate to provide a basls for our opinion. Conclusions relating to golng concern In auditing the financiat 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. Other Informatfon The other information comprises the Information Tncluded in the Annual Report of the Governors, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained WTthin the Annual Report of the Governors. 12
NEWCASTLE SCHOOL FOR BOYS NEWCAsfLE SCHOOL FOR BOYS INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF NEWCASTLE SCHOOL FOR BOYS Our oplnlon 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 mlsstated. If we identify such materlal inconsistencies or apparent material misstatements, we are required to determlne whether thi5 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. Oplnlons on other matters prescrlbed by the Companles Act 2006 In our oplnion, based on the work undertaken fn tPE course of the audit: the information given in the trustees, Annual rewrt of the Governors (incorporating the strategic report and the directors. report) for the financial year for which the financial statements are prepared Is consistent with the financial statements; and the strategic report or the directors, report included withln the trustees. Annual report of the Govemors have been prepared in accordance with applicable legal requirements. Matters on whlth we are requfred to report by exceptlon In the light of our knowledge and understanding of the charitable company and its environment obtalned in the course of the audit, we have not identified material misstaternents in the strategic report and the directors, report. We have nothing to report In respect of the following matters where the Companles Act 2006 requires us to report to you If, In our opinion: adequate accounting records have not been kept. or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of trustees, remuneration specified by law are not made. or we have not received all the infonnation and explanations we require for our audit. Responsfbilitfes of trustees As explained more fully in the trustees, responsibilities statement set out on page 10, 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 Irustees deierrnlne is nece55ary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 13
NEWCASTLE SCHOOL FOR BOYS NEWCAsfLE SCHOOL FOR BOYS INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF NEWCASTLE SCHOOL FOR BOYS In preparing the flnancial statements, the trustees are responsible for assesslng 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 Iiquldate the charitable company or to cease operations, or have no realistic alternative but to do so. Audltor's responslbllltles for the audit of the financlal statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit condurted in accordance with ISAS (UK) will always detect a material misstatement when it ex7sts. 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. 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.or .uklauditorsres onsibilities. This description forrns part of our auditor's report. Extent to whlch the audit was considered capable of detectlng Irregularities. Including fraud Irregularities, fncluding fraud, are instances of non-compliance WTth laws and regulatfons. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, to detect material misstatements in respect of irregularities, including fraud. We obtain and update our understanding of the entity, its actfvTtTes, its control envlronment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is cotnplying with that frarnework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evTdence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we deslgned procedures which included: Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; Reviewing minutes of meetings of those charged with governance; Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the charitable company through enquiry and inspection; Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulatTons; Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. 14
NEWCASTLE SCHOOL FOR BOYS NEWCAsfLE SCHOOL FOR BOYS INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF NEWCASTLE SCHOOL FOR BOYS Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularitie5, 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 of not detecting a material misstatement resulting from fraud is higher than for one resulting frorn error, as fraud may Involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. The primary responsibllity for the prevention and detection of fraud rests with both those charged with governance of the charitable company and management. Use of our report This report is made solely to the charitable company's members, as a bodyi In accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this rep)rt, or for the opinions we have formed. Joanne Kegan FCA (Senior Statutory Auditor) For and on behalf of: Azets Audit Services Accountants Statutory Audltor Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS 24 February 2024 15
NEWCASTLE SCHOOL FOR BOYS STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2024 Unrestricted Restricted Funds Funds 2023 TotGI Notes Totol Income from: Charitable actlvities School fees receivable Catering income Govei iilTient funding Income from School trips Investment income Other income Voluntary sources Grants and donatTons 4,996,044 343,807 93,328 294.012 31,445 68,229 4.996,044 4.517,647 343.807 283,112 93,328 102,771 294.012 385,590 37,171 15,775 68,229 50,519 5,n6 50,000 50,000 4, 142 Total income 5,826,865 55,726 5,882,591 5,359.556 Expenditure on: Financing costs (99,276) {99,276) (86,777) Charitable activities Education and grant making (5,753,277) (1,180) {5.754.457) (5,348,810) (5,852,553) (1,180) (5.853,733) (5.435,587) Total expenditure Net income/(expenditure) and net movement in funds before transfers 125.688) 54.546 28,858 176.031) Transfers between funds 17 51,307 (51,3071 Net movement in funds 25,619 3,239 28,858 (76,031) Fund balances brought forward at 1 September 2023 5,659,046 208,268 5,867,314 5,943,345 Fund balances carried forward at 31 August 2024 5,684.664 211,508 5,896.172 5,867,314 The notes on pages 19 to 33 form part of the financial statements 16
NEWCASTLE SCHOOL FOR BOYS COMPANY NO: 1196898 BALANCE SHEET AS AT 31 AUGUST 2024 Note 2024 2023 FIXED ASSETS Tangible assets Investments 6.917,897 2,113 6.920,010 7,006,434 2,113 7,008,547 CURRENT ASSErs Stock Debtors Cash and deposits 256,689 1 361,814 1,618,503 174,572 1,322,852 1,498,068 CURRENT LIABILITIES Creditors payable within one year 10 1,328,846 1, 100,636 NET CURRENT ASSETS I(LIABILITIES) 289,657 397,432 TOTAL AssEfs LESS CURRENT LIABILITIES 7,209,667 7,405, 979 LONG-TERM LIABILITIES Creditors payable after one year 11 1,313,495 (1,538,665) NET ASSETS 5.896 172 5,867,314 REPRESENTED BY: RESTRICTED INCOME FUNDS 16 211,508 208,268 UNRESTRICTED FUNDS General Reserve Designated Funds 16 16 5.670,617 14,047 5,584,524 74,522 5,896,172 5,867,314 These financial statements were approved by the Governing Body on 24 February 2025 Mr Tim Care (Chairman of the Governing Body) The notes on pages 19 to 33 form part of these financial statements 17
NEWCASTLE SCHOOL FOR BOYS CASH FLOW STATEMENT AS AT 31 AUGUST 2024 Note 2024 2023 Net cash outflow from operatTons Net cash provided by / {used in) operating activities (i) 436,771 207,767 Cash f lows from investing activities: Purchase of Tangible fixed assets Investment income and bank interest received 1100,782) (42,422) 127 Net cash (used in) / provided by investing activlties Cash flows from financing activities: Interest paid on borrowings Hire Purchase Capital repayment Loan Capital repayments Net cash provided by financing actlvities {63.611) (42,295) {99,276) (9,751) (225,171 (86, 777) (9,757) (225, 171 334,198 321,699) Change in cash and cash equivalents in the reporting period {397,809) (363, 994) 38.962 (156,227 Cash and cash equivalents at the beginning of period Cash and cash equivalents at the end of the reporting period 1,322,852 1,479,079 1 361,814 1,322,852 (i) ReconcTliation of net income to net cash flow from operating activities 2024 2023 Net incoming resources Elimination of non-operating cash flows: Depreciation charges 28,858 (76,031) 189,319 185,739 Investment income Loan interest Ilncrease)/decrease in Stock and Debtors Increase/(decrease) in Creditors {37,171} 99,276 {81,473) 237,962 (127) 86,777 24,791 (13,382) 407,913 283.798 Net cash inflow from operations 436.771 207, 767 18
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 AUGUST 2024 ACCOUNTING POLICIES These financial statements are prepared in accordance with the Financlal Reportlng Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102)' the Companies Act 2006 and the Charities SORP 2019. The functional currency of the School Is GBP because that Is the currency of the primary economic environment in which the School operates. The accounts are drawn up on the historical cost basis of accounting. Having reviewed the funding facllities available to the School together with the expected ongoing demand for place5 and the School's future projected cash flows, the Govemors 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 viabillty. Accordingly, they also contlnue to adopt the going concem basis in preparing the financial statements as outlined in the Statement of Accounting and Reporting Responsibilities on page 11. The accounts present the statement of financia( actfvities (SOFA), the cash flow statement and the Charity balance sheet. The School is a Public Benefit Entlty registered as a charity in England and Wales and a company limlted by guarantee. It was incorporated in 1975 {company number: 1196898) and registered a5 a charity in 1975 Icharity number: 503975). Crltlcal accountlng Judgements and key sources of estlmatlon uncertalnty. In the application of the accountlng policies, Trustees are required to make judgement, estimates, and assurnptions about the carrying value of assets and liabilities that are not readily apparent frorn other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estirnates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the 19
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2024 i. AccoUrING POLICIES (contlnued) revlsion affects only that perfod, or in the period of the revision and future periods If the revision affected current and future periods. In the view of the trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilitles at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the School's financial statements. 1.1 Fees and slmllar earned Income Fees receivable and charges for services and use of the premises, less any allowances, scholarships, bursaries granted by the School against those fees, but including contributions rece?ved from restricted funds, are accounted for in the period in which the service is provided. 1. 2 Investment Income Investment income from dividends, bank balances and fixed interest securities is accounted for on an accruals basis. 1.3 Donations, legacie5. grants and other voluntary incoming resources Voluntary incoming resources are accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the School is considered probable. Voluntary Income for the School's general purposes is accounted for as unrestricted and is credited to the General Reserve. Where donations have been received that are to provide assistance with fees, they are recognised when received and shown as an incoming resource under Restricted Funds, unless it is a conditlon stipulated by the donor that they are to be used in future periods. Where there is a condition stipulated by the donor that they are to be used in future periods, the donations are included as deferred income within creditors and released to fees receivable as the conditions are satisfied. All donations are held in a separate designated bank account until ut71ised. When utilised they are transferred to unrestricted funds and netted off against fees receivable. Gifts in kind are valued at estimated open market value at the date of gift, in the case of assets for retention or consumption, or at the value to the School in the case of donated services or facil7tTes. 1.4 Expendlture Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer-term liabilities. Expenditurc attributable to more than one cost category in the SOFA is apportioned to them on the basis of the estimated amount attributable to 20
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR YEAR ENDED 31 AUGUST 2024 1. AccouKfiNG POLICIES (contlnued) each activity in the year, either by reference to staff time or the use made of the underlying assets, as appropriate. Governance costs comprise the costs of complying with constitutional and statutory requirements. 1. 5 Tanslble flxed assets Expenditure on the acquisition, construction or enhancernent of land and buildings costfng more than £10,000 together with vehicles, furniture, machinery, I infrastructure and other equipment costing more than £5,OCX) are capitalised and carried In the balance sheet at historical cost. In certain circumstances, where the original costs of assets are not ascertainable, a reasonable estimate of the cost, if material, has been used. Other expenditure on equ7pment incurred in the normal day-to-day running of the School is charged to the Statement of Financial Activities as Incurred. 1.6 Depreclatlon Depreciation is provided to write off the cost of all relevant tangible fixed as*ts less estimated residual value based on current market prices, in annual instalments over their expected useful economic lives as follows: Straisht-line basis." Freehold buildings Freehold building improvements Leasehold Improvements Astro- turf and playground surfaces Motor vehicles Fixtures, fittings and equipment Computers (from Sept 2021) 2% 33% Redudns balance basis." Computers (prior to Aug 2021) Classroom digital boards 33% 15% Where the net book value of the reducing balance becomes immaterial the balance will be depreciated to zero. 1. 7 Investments Listed investments are valued at fflarket value as at the balance sheet date. Unrealised gains and losses arising on the revaluation of investments are credited or charged to the Statement of Financial Activities and are allocated to the appropriate Fund according to the "ownersh7p" of the underlying assets. 21
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2024 AccouKriNG POLICIES (contlnued) 1.8 Stock Stocks are valued at the lower of cost and net realisable value. 1.9 Fund accountlng The charitable trust funds of the School are accounted for as unrestricted or restrlcted Income, in accordance with the terms of trust imposed by the donors or any appeal to which they may have responded. Unrestrfcted Income belongs to the School's corporate reserves, spendable at the dlscretion of the Governors either to further the School's Objects or to benefit the School itself. Where the Governors decide to set aside any part of these funds to be used 7n future for some specific purpose, this Is accounted for by transfer to the appropriate designated fund. The a7m and u of each designated fund is set out in the notes to the f?nancial statements. Restrfcted Income comprises gifts, legacies and grants where there is no capital retention obligation or power but only a trust law restriction to some specific pur intended by the donor. 1.10 Pensfon costs Retirement beneflts to employees of the School are provided through two pension schemes, one defined benefit and one defined contribution. The pension costs charged in the Statement of Financial Activities are determined as follows: a. The Teachers, Pension Scheme - This scheme is a multi-employer pension scheme. It is not possible to identify the School's share of the underlying assets and liabilities of the Teachers, Pension Scheme on a consistent and reasonable basis and therefore, as required by FRS102, the scheme is accounted for as if it were a defTned contribution scheme. The School's contributions, which are in accordance with the recommendations of the Government Actuary are charged in the perTod in which the salaries to which they relate are payable. b. The NOW Pension scheme This is a defined contributlon multi-employer pension plan. Employer's pensions costs are charged in the period in which the salaries to which they relate are payable. 1 .11 Operatlng leases Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are spread on a reducing balance basis over the lease term. 22
NEWCASTLE SCHOOL FOR BOYS NEWCAsfLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2024 AccouKriNG POLICIES (continued) 1.12 Flnandal Instruments Basic financial instruments are initvally recognised at transaction value and subsequently measured at amortised cost, except for investments and other derivative financial instruments which are held at fair value. Financial assets held at atnortised cost comprise cash at bank and In hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is In doubt. Cash xt bank and In hand is defined as all cash held in instant access bank accounts and used as working capital. Financial Ilabilities held at amortised cost comprise all creditors except social security and other taxes and provisions. CHARrrABLE AcfiviTIES - FEES RECEIVABLE 2024 2023 Fees recelvable consist of: Gross School fees 6,060.709 5,502,795 Less: Total scholarships and bursaries Other awards (970.035) 94.630 (916.330) 68,818 4 996 044 4,517.647 Bursaries and other awards pafd for by restricted furKJs transferred during the year totaLLed £39,029 (2023.. £28,046) Scholarships, bursaries and other awards were paid to 184 pupils12023.. 189). Withln this, means tested bursaries totalling £473,718 were paid to 58 pupils, {2023.' £477,981 to 61 pupils). GRANTS AND DONATIONS RECEIVABLE 2024 2023 Donations from: Parental donations Parents. Association funding Cookson Trust 2,900 1,242 4, 142 23
NEWCASTLE SCHOOL FOR BOYS NEWCAsfLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2024 ANALYSIS OF EXPENDITURE (a) Total expenditure year ended 31 August 2024 Staff costs Depreciation Other (note 6) (note 7) Total 2024 Total 2023 Costs of generating funds: Financing costs -loan interest 99,276 99,276 86,777 Charitable expenditure: Education and grant making Teaching Welfare Premises Support costs and governance 3,083,259 14,241 243,144 189,319 527,760 3.611.019 3,467, 115 403,762 418,003 380,229 493,007 925,470 832.663 480,947 319 018 799 965 668,803 Total charitable expenditure 3,821,591 189,319 1,743,547 5.754,457 5,348,810 Total expended 3 821 591 189 319 1842 823 5 853 733 5,435 587 Prior Year comparison.. Total expenditure to 31 August 2023 Staff costsDepreclotion Other (note 6) (note 7) Total 2023 Total 2022 Costs of generating funds." Financing costs -loon interest 86,777 31,284 Charitable expenditure Education and srant making Teachins Welfare Premises Support costs and sovernance 2,819,505 14,511 218,868 647,610 3,467, 115 2.948,656 365,718 380,229 318,357 428,056 832,663 736,305 185, 739 360, 909 307,894 668 803 623,813 Total charitable expenditure 3,413,793 185,739 1,749,278 5,348,810 4,627,131 Total expended 3,413,793 185,739 1,836,055 5 435 587 4,658,415 24
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2024 2024 2023 (b) Governance Included In support costs: Remuneration paid to auditor for audit services Other governance costs 14,916 15,894 Total governance costs 15,894 IKrEREST PAYABLE AND SIMILAR CHARGES 2024 2023 Bank Loan interest 86,777 STAFF COSTS AND RELATED PARTY TRANSAcfioNS 2024 2023 The aggregate payroll costs for the year were as follows: Wages and salaries Social security costs Other pension costs Private Health Insurance 2.970,380 2,676,666 289,398 258,500 556,991 474,067 4,823 4,560 Total Staff Costs 3.821,592 3.413,793 None of the directors (or any persons connected with them) received any remuneration from Newcastle School for Boys during the year. Aggregate employee-benefits of key management personnel 539,202 511,759 2024 2023 Number of higher paid employees in bands of: £60,001 £70,000 £70,001 £80,000 £90,001 £100,000 The number with retirement benefits accruing In Defined Contribution schemes was: of which the contributions amounted to: £3,765 £ 3,535 In Defined Benefit schemes was: 25
NEWCASTLE SCHOOL FOR BOYS NEwcAsfLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2024 The average numl)er of the Scht)ol's employees during the year calculated on a full-time equivalent basls, was 74 (2023." 77). The average number of employees employed during the year was: 2024 2023 Teaching Welfare Prernises Support 62 12 10 14 93 Transactions with Related Parties: Scholarships awarded to children of directors: Governor's Liability Insurance cost bome by the company: Training and expenses borne by the company (8 trustees): 6,939 935 11,218 891 TANGIBLE FIXED ASSErs Leasehold Flxtures, lrnprove- FittTngs ft ments Equipment Computers Freehold Total Cost or valuatlon: At 1 Sept 2023 9,285,532 37,165 542,396 511,372 10,376.465 Additions Disposals Transfer 24,073 76,012 697 100,782 At 31 Aug 2024 Depreciatlon: At 1 Sept 2023 9,309,605 37,165 618,408 512,070 10.477,247 2.437.989 37.165 506,064 388,812 3.370,030 On Disposals Charge for Year At 31 Aug 2024 Net Book Value: At 31 Aug 2024 148 752 189.319 420,138 3,559,350 2,586,742 37.165 515,306 6,722.864 103,101 91,932 6.917,897 At 1 Sept 2023 6 847,543 122,560 7,006 434 26
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2024 Tangible fixed assets with a net book value of £4,441.182 have been pledged as security for liabilities of the charity. INVESTMENT The Investment consists of 150 units M&G Charifund stock stated at market value. The cost was £173. DEBTORS Amounts falling due within one year: 2024 2023 Fee Debtors Prepayments and Accrued Income Sundry Debtors 49.131 199,918 7,640 256,689 52,201 95,558 174,572 10. CREDITORS: amounts falling due wlthln on• year 2024 2023 Loan Trade Creditors Fee payments received in Advance Other Creditors Taxation and Social Security Accruals and Deferred income Hire Purchase 225.171 288,912 463,663 99.968 63,581 187.550 225,171 184,602 392,394 78,298 63,359 147,060 9,752 1 328,846 1, 100,636 Deferred income totals £86,743 {2023: £53,925) and relates to amounts received in advance from parents for school trips. CREDITORS: amounts falllng due after more than one year 2024 2023 Hire Purchase Loan 1 313.495 1,313,495 7,538,665 1,538, 665 Bank Loan - repaid by equal monthly instalments over a 20.year period which started In July 2011 Amounts falling due: In one year or less or on demand Between one and two years Between two and five years In five years or more 225.171 225.171 675,512 412,812 1 538.666 225, 171 225, 171 675,512 637, 982 1,763,836 27
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2024 Interest is charged at 0.86% plus Base Rate and is secured by the following charges: Charge over The Grove, Gosforth, Newcastle upon Tyne dated 2610912006; Charge over Land and Build7ngs at the junction of The Grove and Moor Road South. Gosforth, Newcastle upon Tyne dated 2910612007: Charge over 39141143 Linden Road and 30 West Avenue, Gosforth, Newcastle upon Tyne dated 2910612007; Charge over Ascham House, 21 North Avenue, Gosforth, Newcastle upon Tyne dated 1611112011. 12. FINANCIAL INSTRUMENTS 2024 2023 Financial assets measured at amortised cost (a) Financial liabilities measured at fair value Financial liabilities measured at amortised cost (b) Net financial liabilities 1.418,571 1,402,480 2.518,760 2.575, 943 1.100,189 1.173,463 (a) Financial assets include stock, cash. trade and fee debtors and other debtors (b) Financial liabilities include deposits, fees in advance, trade creditors, other creditors and bank loans Impairment losses charged to financial assets measured at amortised cost in the year arnounted to £0. 13. LEASES The company has a number of operating leases for computer equipment, minibus and photocopiers. A twenty-year lease of property at 1 Moor Road was signed in February 2016. The flrst break clause was in Year 5, February 2022. As six months, notice Is required to action this break clause, and that date has passed, the next break clause is in Year 10, February 2027. Rents payable up to that break clause are included below. A new lease for photocopiers, sisned in February 2022 became operational in April 2022, and is reflected in the table below. A five-year lease for the rental of 51 desktops was signed in June 2021. A new three-year lease for the rental of laptops for one-to-one use by staff and two PUP71 year groups was agreed Tn August 2021 and became operational in September 2021. A second lease for the remaining senior school year groups became operational in April 2022. The future minimum lease payments under non-cancellable operating leases are committed to be paid in the following periods: 2024 2023 In less than one year Between 1 year and 5 years In more than 5 years 100.162 85,529 137,913 187.300 185,691 325,213 28
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR YEAR ENDED 31 AUGUST 2024 14. RECONCILIATION OF NEf DEBT At 1 Sept 2023 Cashflows New finance At 31 Aug lease 2024 Cash 1,322,852 38,962 1,361,814 Finance Leases Loans falling due within one year Loans falling due after more than one year (9,752) 9,751 {1) (225,171) (225,171) (1,538.665) 225,171 (1,313,494) Total (450,736) 273,884 (176,852) 15. FUNDS OF THE SCHOOL The School's funds are analysed under the following headings. a) RESTRicfED FUNDS The restricted fund relates to a fundraising campaign in which donors can specify whether the funds are to be used for: Providing assistance with fees andlor For use in capital projects Once funds have been used for providlng Assistance with Fees a transfer is made to the General Fund. Once funds have been used against capital projects, a transfer is made to the Designated Fixed Fund. Restricted funds are held in a separate designated bank account. b) UNRESTRicfED FUNDS Unrestricted funds represent accumulated income from the School's activities and other sources that are available for the general purposes of the School. The General Fund represents the free funds of the charity which are not designated for partTcular purposes. c) DESIGNATED FUNDS The Designated Fixed Asset Fund has been set up to assist in identifying those funds that are not free funds and it represents the net book value of tangible fixed assets that have been purchased using restricted funds but for which the use of the asset, once purchased, Is unrestricted. The depreciation of the Designated Fund assets is transferred to the general reserve each year. The Designated Cap7tal fund was formed from the accumulated surpluses on historical trips and clubs and will be used to fund capital projects. 29
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2024 16. ANALYSIS OF Nrf ASSEfs BETWEEN FUNDS Asat31 Net Current August Assets/ 2024 (Liabilities) Flxed Assets Long Term Liabilitfes Investments Total General Funds: 6,917,897 2,113 64,102 (1,313,495) 5,670,617 Desfgnated Funds: 14,047 14,047 Restrfcted Funds: 211,508 289,657 211,508 5,896,172 6.917,897 2.113 1,313,495 Net Current Assets/ Investments (Liabilities) Fixed Assets As at 31 August 2023 Long Term Liabilities Totol General Funds.. 6,990,678 2.113 130,398 (1,538,665) 5,584,524 Designated Funds.. 1,868 72.654 74,522 Restricted Funds.. 13,888 7.006,434 194.380 397,432 208,268 (1,538,665) 5,867,314 2,113 30
NEWCASTLE SCHOOL FOR BOYS NEWcLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2024 17. SUMMARY OF MOVEMEKfs ON MAIOR FUNDS Current Year At1 September Incomlng 2023 Resources At31 August 2024 Resources Expended Reval'n Transfers General Funds: General Fund Music Prize Fund 5.584,274 5,826,865 250 (5.852,553) 111,781 5,670,367 250 Deslgnated Funds: Fixed Asset Fund Capital Fund from trips Other Fund Total Unrestrfrted Funds: Restrlcted Funds: Fundraising - Assistance with Fees Fundraising - Capital Projects Fundraising - Assistance with Fees or Capitsl Projects 1,868 (1,868) 70,230 2,423 {58,222) (384) 12,008 2,039 5,659,045 5,826,865 (5,852,553) 51,307 5,684,664 194,211 55,726 (39,029) 210,908 13,888 (13,888) 90 (90) Other Total Restricted Fund: 80 (1,180) 1,700 600 208,269 55,726 {1,180) (51,307) 211,508 Total Funds: 5,867,314 5,882,591 (5,853,733) 5,896,172 31
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR YEAR ENDED 31 AUGUST 2024 Prior Year comparison Ati September 2022 At31 August 2023 Incoming Resources Resources Expended Reval n Tronsfers General Funds.. General Fund 5,632,556 5,354,304 (5,430.632) 28,046 5,584,274 Music Prize Fund 250 250 Desisnated Funds.. Fixed Asset Fund Capltal Fund from trips Other Fund Total Unrestricted Funds.. 1,868 1,868 70,230 2,423 71,614 723 3,552 1.7 {4,936) 5 707011 5.359 556 5 435 568 28.046 5 659 045 Restricted Funds.. Fundraising - Assistonce with Fees Fundraising - Capital Projects Fundraising - Assistance with Fees or Capital Projects Other Totol Restricted Fund.. 222,256 (28,046) 194,211 13,888 13,888 90 90 100 20 80 236.334 20 28,046 208,269 Total Funds.. 5,943 345 5,359,566 5,435,588 5,867,314 18. PENSION SCHEMES Retirement benefits to employees of the School are provided through one defined benefit scheme, which are funded by the School's and employees, contributions. Defined benefit scheme - Teachers. Pension Scheme The School participates in the Teachers, Pension Scheme ("the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £520,054 12023.. £455, 111) and at the year-end £72,25712023 - £52.135) was accrued in respect of contributions to this scheme. 32
NEWCASTLE SCHOOL FOR BOYS NEWCASTLE SCHOOL FOR BOYS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR YEAR ENDED 31 AUGUST 2024 The TPS Is an unfunded rnulti-employer defined benefits pension scheme governed by The Teachers, Penslons Regulations 2010 (as amended) and The Teachers, Pension Scheme Regulations 2014 (as amended). Members contribute on a -pay as you go" ba57S With contributions from members and the ernployer being credited to the Exchequer. Retirement and other pension benefits are pald by public funds provlded by Parliament. The employer contribution rate Is set by the Secretary of State following scheme valuations undertaken by the Government Actuary's Department. The most recent actuarial valuatlon of the TPS was prepared as at 31 March 2020 and the Valuation Rert was published in October 2023. Following the Mccloud judgement, the remedy proposed that when benefits become payable, eligible members can select to receive them from either the reformed or legacy schemes for the period 1 April 2015 to 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the greater benefits, and in preparing the 2020 valuation has valued the 'greater value, benefits for groups of relevant members. The employer contribution rate for the TPS Is 28.6%, and employers are also required to pay a scheme administration levy of 0.08% giving a total employer contributlon rate of 28.68%. Following a consultation with eligible teaching staff during 2024, it has been agreed that those wishing to stay within TPS can do so and will sacrifice salary to a value of 5.0%. Those wishing to exit the scheme can do so and join a school defined contribution scheme with Royal London Pensions, where the school will maintain an employer contribution of 21.68%. Defined contrlbutlon scheme Newcastle khool for Boys contributed in the year to the money purchase group personal pension scheme managed by NOW:Pensions. Contributions of 5% were made for the employee and from 3% to 5% for the employer. The employer's contributions are charged in the Statement of Financial AciivfEles In the period in which the salaries to which they relate are due. The employer's contributions in the year amounted to £24,516 (2023: £18,879I- At 31 August 2024 there were £5,314 accrued pension contributions for this scheme (2023: £3,930). Following consultation, the school will from 1 September 2024 offer a defined contribution scheme operated by Royal London Pensions with employer contributions maintained at between 3% and 5%. 33