Charity registration number 505310 (England and Wales) Company registration number 01260765 CARLETON HOUSE PREPARATORY SCHOOL ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Carleton House Prepiratory School • xeinadin
CARLETON HOUSE PREPARATORY SCHOOL LEGAL AND ADMINISTRATIVE INFORMATION Trustees L Morrison Chair of Trustees J P Burns E Czarnecki C M Harrison S M Hegarty C B Holguin T Manning J A Robinson (Appointed 11 September 2023) Senior management S Coleman C Griffies R Mumbengegwi Headteacher Deputy Headteacher School Business Manager Charity number {England and Wales) 505310 Company number 01260765 Reglstered office 145 Menlove Avenue Liverpool Merseyside L183EE Audltor Xelnadin Audit Llmited 46 Hamilton Square Birkenhead Wirral Merseyside CH415AR Bankers Naest 138 Allerton Road Liverpool Merseyside L182JN
CARLETON HOUSE PREPARATORY SCHOOL CONTENTS Page Trustees, report statement of Trustees, responsibilities Independent auditor's report Slatement of financial activities 10 Balance sheet 11 Statement of cash flows 12 Notes to the financial statements 13-24
CARLETON HOUSE PREPARATORY SCHOOL TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 AUGUST 2024 The Trustees present their annual report and financial statements for the year ended 31 August 2024. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities.. Slalemenl of Recommended Practice applicable to charities preparing iheir accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021" Objectlves and activities Carlelon House Preparatory School offers the full statutory primary curriculum. Pupils, allainmenl al the end of both Key Stages is consislenlly well above the expected18vel of attainment nationally. "Pupils develop excellent knowledge, skills and understanding across the curriculum due to the reflective learnlng approachas they are taught from an early age. ISI Report June 2022. With small class sizes, highly experienced class teachers, ably supported by a dedicated leaching assistant in every class, we ensure all children are supported lo reach their full polenlial. We employ specialist teachers of Spanish, Physical Education and Computing to ensure our children are provided with an exGiling and engaging curriculum taught by specialists. The Head Teacher and all staff have supported the school and worked hard to maintain high school standards. The Governing Body of the school is also actively involved in the oversight of the management of the school and in setting new objectives for the school for the future. Carleton House provides equal opportunities for all staff and pupils. The school is committed to the safeguarding of children and ils policies and procedures reflect this. All policies and procedures are updated as appropriate and arè availab18 at the school for inspection. In setting the School's objectives, the Trustees have given considered Charity Commission's génèral guidance on public benefits and in particular lo ils supplementary public benefit guidance on advancing education and on fee charging. Public benefit The Trustees have paid du6 règard to guidance issued by the Charity Commission in deciding what activities the charity should undertak&. Achlevements and performance SignifiGant activities and achi6vaments against objectives Our most recent external ISI Educational Quality inspection judged both the achievement of our pupils, Including their academic development and the personal development of the pupils to b8 &xcellenl - the highest possible judgement. All regulatory requirements were met. The majority of our pupils obtain their first choice preference at secondary school level. The places secured for 2023-2024 were as follows= The Blue Coat School - 14pupils Birkenhead School - 4 pupils Liverpool College 2 pupils Belvedere Academy- 1 pupil St Julie's - 1 pupil St Mary's College - 1 pupil The achievement of our pupils are in measured in Stalulory Allainmenl Test (SAT) using a scaled score.
CARLETON HOUSE PREPARATORY SCHOOL TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Results for the academic year 2023-24 Key staga 1 {23 pupils) Mathematics 960/0 of pupils met the required standard with scaled scores of 100 or more122 pupils). Reading 910/0 of pupils mel the required standard with scaled scores of 100 or more {21 pupils). Grammar, Punctuation and Spelling 910/0 of pupils mel the required standard with scaled scores of 100 or more {21 pupils). Key stage 2123 pupils) Malhemalics 100010 of pupils mel the required standard with scaled scores of 100 or more123 pupils). 780/0 of pupils exceeded the required standard with scaled scores of 110 or more (18 pupils). Reading 100 /0 of pupils mel the required standard with scal8d scores of 100 or more123 pupils). 78 % of pupils exceeded the required standard with scaled scores of 110 or more {18 pupils). Grammar, Punctuation and Spelling 1000/0 of pupils mel the requirèd standard with scaled scoras of 100 or rnore123 pupils). 96 /0 of pupils excèaded the rèquired standard with scal8d scores of 110 or mora {22 pupils). Writing 1000/0 of pupils achieved the expected standard {23 pupils). 52 % of pupils were assessed at working at greater depth112 pupils). Our SATS scores show that our children continue to perform well above national average in all subjects. Our children benefit from the exciting experience of residential trips starting in Year 3 through to year 6. These immersive experiences lake our children out of their comfort zonés and immersè them in natur6, where they face hallenges, develop resi5i8nce, and acquire vital life skills. During these adventures, children learn to work together, communicate effectively, and solve problems in unfamiliar settings, fostering leadership and teamwork capabilities. In Carfeton House all pupils are given the opportunity to fully develop their musical talents. Our specialist curriculum music teacher provides lessons across the school from Nursery to Year 6. Children are taught to sing, to create and compose music, to perfomi and lo listen to and evaluate music. They are given the opportunity and confidence to become musicians. Our strong ongoing partnership with outside music company Pulse, has ensured all pupils in Key Stage 2 are given the opportunity learn a musical instrument, laught weekly by experienced music teachers. Our children progress to grade exams and lake part in Christmas and summer concerts for our families. Many of our children go on to achieve music scholarships at local secondary schools of their choice. Our exceptionally talented choir are invited to perform al a range of different festivals and events throughout the school year, the highlight being a Christmas performance al the Liverpool Melropolilan Cathedral. The school provides an extensive range of extra-curricular clubs including debating, first aid, dance, judo, chess and a wide variety of sports clubs. Sport helps children to remain healthy, develop leadership skills and understand the value of teamwork and co- operation. We have 8 dedicated specialist PE teacher who teaches lessons from Nursery to Year 6. Key Stage 2 have swimming lessons under the supeNision of fully qualified swimming teachers and coaches. We believe in developing a competitive sporting spirit with an emphasis on participation. A wide variety of games are played in the school and at inler-school level including football, cricket. netball. rounders, swimming, athletics and cross-country. We are members of LSSP, Liverpool Schools Sports Partnership which allows us to compete against other local schools. We also lake part in school football leagues and competitions with other local independent schools.
CARLETON HOUSE PREPARATORY SCHOOL TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 The School continued to provide a daily hot lunch for every child prepared by our own Ghef in the kitchen to meet national food standards in schools. The quality of food and choice is closely monitored and h8s been a great success with the children and staff. Fundraising performance The school has continued lo support local charities, with an impressivè £13,785.70 being raised for Alder Hey Charity, our school chosen charity for the academic year 2023-24. Other fundraising included Cafod, South Liverpool Foodbank, The Whilechapel Centre for the homeless as well as other local and national good causes and charities. Financial review ReseNes policy In what has been a diffi¢ult year with high amounts of financial uncertainty, the Board of Trustees have continued to evaluate the reseNes requirements to ensure the continued running of the school. Due lo pnJdent financial management over recent years, our reseeS have been growing, which meant that w6 were in a strong position to mitigate the financial risks arising from the pandemic. As a general ru18, the Board of Trustees have decided that the school should have cash reserves equivalent to b8tween three and six months costs for business as usual operations, although this may be reducéd in pèriods where significant capital investment is needed. Th8 curr8nt year surplus is £193,546. The general reserve has increased to £1,615,513, including cash balances of £932,921. This is within the range of reserves agreed by the Board of Trustees, although some of the retained resetves have been set into a specific fund which will be ulilised lo finance an ambitious development of the current premises, which is planned to bè phased over the next three years. The charities fr88 r8serves, unreslricled funds after excluding tangible fixed assets, as at 31 August 2024 were £162,968. Princip81 funding sources The principal source of funding is the fees charged to parents for the provision of school places for their children. Major risks The Trustees have assessed the major risks to which the company is exposed, in particular those related lo the operations and finances of thè company, and ar8 satisfied that systems and procedures are in place lo mitigate exposure to the rnajor risks. Plans for future perlods In the previous year, the Construction was completed on a new purpose-built modern cloakroom which replaced our prevSous cloakroom which was housed in the original conservatory to the house. As outlined in our financial review, our growth in reseNes will was partially ulilised to fund a scheduled programme of building refresh for the coming years, including internal and external refurbishment and the re development of the EYFS playground. This coupled with reasonable debt financing has allowed for the next phase of the planned capital expenditure which is the artificial grass replacement, roof, fascia, gutters repairs, building external repainting and front entrance porch reconslruction. The works are scheduled to commence in the summer holidays of 2025 after being delayed in order to assess the impact of VAT on school fees.
CARLETON HOUSE PREPARATORY SCHOOL TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Structure, governance and management Carleton House Preparatory School Limited is registered as 8 charitable company limited by guarantee and was set up by a Memorandum ofAssociation on 28 May 1976. The Memorandum and Articles ofAssociation were altered by special resolution on 18th June 2020. The principal object of the company is to provide a first class, independent co-educational school to pupils aged 3 to 11 years. The Head Teacher is a member of the Independent Schools Association, which gives accredilalion by the Independent Schools Council. The School is a Catholic School which accepts children of other denominations and faiths. 11 has strong links with the Archdiocese of Liverpool and the Parish of Our Lady of the Annunciation Bishop Elon. The Trustees, who are also the directors for the purpose of company law, and who sarved during the year and up to the date of signature of the financial statements were: L Morrison - Chair of Trustees J P Burns E Czarnecki C M Harrison S M Hegarty C B Holguin MJoe T Manning J A Robinson (Resigned 11 November 2024) (Appointed 11 September 20231 R&cruitment and appointmènt of trusteés Tho management of the company is thè responsibility of the Trustees who are elected and co-opted under th8 terms of the Memorandum ofAssocialion. A few trustees have beneficial interest in the company, mostly having children allending at the school. All of the Trusteès are members of the company and guarantee to contribute £1 in the event of a winding up. Organisational structure The Board of Trustees determines the general strategy and policy of the school, bul the day-to-day management of the school is delegated to Ihe Head Teacher. The Board meets al least termly and there are a number of sub- commillees convening such areas as Curriculum and Safeguarding, Finance, Buildings and Health and Safely and Pay and Appraisal. Induction and ¢raining of trustees The Iruslees who served during the year are shown on page one. Trustees are appointed by the Board of Trustees (also known as the Governing Body) and serve for 8 period of three years. Upon the end of each Ihree-year term, trustees are eligible for re-election. Vacant Iruslee positions are advertised with a current equal number of external trustees and Irusle8s who are current parents of the school. New trustees are provided with an introduction into the nature and running of the school. Auditor In accordance with the company's articles, a resolution proposing that Xeinadin Audit Limited be reappointed as auditor of the company will be put at a General Meeting.
CARLETON HOUSE PREPARATORY SCHOOL TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Disclosure of informatlon to audltor Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information. The Trustees. report was approved by the Board ofTrustees. L Morrison - Chair of Trustees Trustoe Date..
CARLETON HOUSE PREPARATORY SCHOOL STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2024 The Trustees, who are also the directors of Carleton House Preparatory School for the purpose of company law, are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclicel. Company law requires the Trustees to prepare financial statements for each financial year which give a tru8 and fair view of the stale of affairs of the charity and of the incoming resDurces and application of resources, including the income and expenditure, of the charitable company for Ihal year. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consistently., obseNe the methods and principles in the Charities SORP: make judgements and estimates that are reasonable and prudent; and prepar8 the financial statements on the going cornrn basis unless il is inappropriat8 to presume that thè charlty will continue in operation. The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
CARLETON HOUSE PREPARATORY SCHOOL INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CARLETON HOUSE PREPARATORY SCHOOL Opinion We have audited the financial slalements of Cadeton House Preparatory School {the 'charity'l for the year ended 31 August 2024 which comprise the statement of financial activities. the balance sheet, the statement of cash flows and notes lo the financial statements, including 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 slatemenls.. give a true and fair view of the state of the charilabla company's affairs as at 31 August 2024 and of Its incoming resources and application of resources, including ils income and expenditure, for the year then ended., have been properly prepared in accordance with United Klngdom Generally Accepted Accounting Practic8; and hava b6Èn prepad In a¢¢ordance with the requirements of the Companies Acl 2006. Basls for oplnion We conducted our audit in accordance with International Standards on Auditing IUKI {ISAs IUKII and applicable law. Our responsibilities under those standards ar8 further described in the Auditors responsibilities for the audit of the financial statements section of our report. We aré independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial slalem8nls in the UK, including the FRC'S Ethical standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relatlng to golng concern In auditing the financial slatemenls, we have concludèd that thè Trustees, use of the going concern basis of accounting in the preparation of the financial slalemenls is appropriate. Based on the work we have performed, we have not identified any material uncertainli8s relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of al least twelve months from when the financial slalements are aulhorised for issue. Our responsibilities and the responsibilities of the Trustees with respacl lo golng concern are described in the relevant sections of this report. other Informatlon The other information comprises the infomialion included in Ihe annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except lo the extent otherwise explicitly staled in our report, we do not express any form of assurance conclusion Ihereon. Our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledgè obtained in the course of the audit, or otheMise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise lo a material misstatement in the financial slalemenls themselves. If, basèd 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 prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of our audit.. the information given in the Truste&s' report for thè financial year for which the financial statements are prepared, which includes Ihe directors, report prepared for the purposes of company law, is consistent with the financial stalemenls. and the directors, report included within the Trustees, report has been prepared in accordance wilh applicable legal requirements.
CARLETON HOUSE PREPARATORY SCHOOL INDEPENDENT AUDITOR'S REPORT {CONTINUED) TO THE MEMBERS OF CARLETON HOUSE PREPARATORY SCHOOL Matters on which we are required to report by exception In the light of the knowled9e and understanding of the charity and its environment obtained in Ihe course of the audit, we have not identified material misstatements in the directors, report included within the Trustees, report. We have nothing to report in respect of the following mallers in relation to which the Companies 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 agreemant with the accounting records and returns,. or certain disclosures of trustees, remuneralior) specified by law are not made.. or we have not received all the inforrnation and explanations w& require for our audit. or the Trustees were not entitled lo prepare the financial statements in accordance with the small companies regimè and take advantage of the small companies. exemptions in preparing the Trustees, report and from the requirement lo prepare a strategic report. Responslbilitles of Trustees As explained more fully in the statement of Trustees, responsibilities, the Trustees, who are 81$0 the directors of the charity for the purpose 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 Trustoas determine is necessary to enable the preparation of financial statements Ihal are free from material misstslement, whether due lo fraud or orror. In preparing the financlal stalemenls, the Trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, mallers related lo going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitablé company or to cease operations, or have no realistic allernalive but lo do so. Auditor's responsibilities for the audlt of the flnanclal stat6m6nts Our objectives are to obtain reasonablé assurance about whether the financial statements as a whole are free from material misstatement, wh8lh8r du& lo fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstalemenl when il exists. Misstatemènts 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 slalemenls. The extent to which our procedures ar8 capable of deteclSng Srregularities, including fraud, is detailed below. Our approach to identifying and assèssing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement team Collectively had the appropriate competence, capabilities and skills to identify or recognise non-cornpliance with applicable laws and regulations., we identified the laws and regulations applicable to the school through discussions with Trustees and other management, and from our knowledge and experience of academy seclor,. we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the oporalions of the academy, including the Companies Act 2006, data protection, anli-bribery, employment, food hygiene and health and safely legislation,. we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management team and inspecting legal correspondence- and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of noncompliance throughout the audit. We assèssed the susceptibility of the school's financial stslemenls to rnaterial misstatement, including obtaining an understanding of how fraud might occur, by.. making enquiries of management team as lo where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud,. and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
CARLETON HOUSE PREPARATORY SCHOOL INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CARLETON HOUSE PREPARATORY SCHOOL To address the risk of fraud through management bias and override of controls, we.. performed analytical procedures to identify any unusual or unexpected relationships. tested journal entries to identify unusual transactions., assessed whether judgements and assumptions made in detèrmining th8 accounting estimates w8re indicative of potential bias., and investigated the rationale behind significanl or unusual transactions. In response lo the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited lo.. agreeing financial slalernenl disclosures to underlying supporting documentation. enquiring of management as to aclLJal and potential liligalion and claims. and reviewing correspondènce with HMRC and relevant regulators. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely il is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to idèntify non-compliance with laws and regulations lo enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arls6 due lo fraud ¢an be harder lo delecl than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities Is available on the Flnan¢lal Reporting Council's website at.. https'.11 ww.frc.org.uklaudilorsresponsibilities. This description forms part of our audilols report. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Comp8nies Act 2006. Our audit work has been undertaken so that we might stale to the charitable company's members those matters we are required lo state to them in an auditor's report and for no other purpose. To the fullèst extent permilled by law, we do not accept or assume responsibility lo anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Helen Furlong FCCA (Senior Statutory Auditor) For and on behalf of Xeinadin Audit Limited, Statutory Auditor Chartered Accountants 46 Hamilton Square Birkenhead Wirral Merseyside CH415AR Date'..3.:.7...%.S..
CARLETON HOUSE PREPARATORY SCHOOL STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2024 Unrestricted funds 2024 Unrestricted funds 2023 Notes Income from: Donations and lègacies Charitable activities Investments 1,377 1,860,214 7,199 570 1,763,156 Total income 1,868,790 1,763,726 Expandlture on: Charitable activities 1.675,241 1,563,424 Total expenditure 1,675,241 1,563,424 Net Income and movement In funds 193,549 200,302 Reconclllatlon of funds: Fund balances al 1 September 2023 1,421,964 1,221,662 Fund balances at 31 August 2024 1,615,513 1,421,964 The statement of financial activitie5 includes all gains and lossés rècognised in the year. All income and expenditure d8rive from continuing acliviti8s. 10
CARLETON HOUSE PREPARATORY SCHOOL BALANCE SHEET ASAT31 AUGUST2024 2024 2023 Notes Fixed assets Tangible assets 12 1,452,545 1,420,508 Current assets Debtors Cash at bank and in hand 13 38,386 932,921 1,347,930 410,345 971,307 1,758,275 Credltors: amounts falllng due wlthln one year 14 1689,531) {1,673,3191 Net current asset5 281,776 84,956 Total assets less current Ilabllltlas 1,734,321 1,505,464 Credltors: amounts falllng due after more than one year 15 (118,8081 {83,500) Net assets 1,615,513 1,421,964 The funds of the charity Unrestricted funds 18 1,615,513 1,421,964 1,615,513 1,421,964 The financial statements were approved by the Trustees on L Morrison - Chair of Trustees Trustee Company registration number 01260765 (England and Wales} 11
CARLETON HOUSE PREPARATORY SCHOOL STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2024 2024 2023 Notes Cash flows from operating activities Cash generated from operations 21 579,945 198,476 Investing actlvitles Purchase of tangible fixed assets Investment income received 164,5681 7,199 {64,7311 Net cash used In Investing activiti8S {57,3691 (64,731) Financing activities Repayment of bank loans (119,503) Net Cash used In flnanclng actlvltles {119,5031 Net increase in cash and cash èqulval&nt8 522,576 14,242 Cash and cash equivalents at beginnin9 of year 410,345 396,103 Cash and cash equivalents at end of year 932,921 410,345 12-
CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies Charity information Carleton House Preparatory School is a private company limited by guarantee incorporated in England and Wales. The regislered affice is 145 Menlove Avenue, Liverpool, Merseyside, L18 3EE. 1.1 Accounting convention The financial slalements have been prepared in accordance wilh the charity's governing document. the Companies Act 2006, FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021" The charity is a Public Benefit Entity as definèd by FRS 102. The financial slalements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial slalements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The prlncSpa1 accounting policies adopted are set out below. 1.2 Golng concern At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequale resources to continue in operational existence for the foreseeable future. Thus the Trustees continue lo adopt the going concern basis of accounting in preparing the financial statements. 1.3 Charitable funds Unreslricled funds are available for use at the discretion of the Trustees in furtherance of their Charitable objectives. Designated funds comprise funds which have been sèt aside at the discretion of the Trustees for specifi¢ purposes. The purposes and u58s of the designated funds are set out in the notes lo the financial slalements. Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes lo th8 financial slalements. Endowment funds ar6 sublect lo specific conditions by donors that the capital musl be maintained by the charity. 1.4 Income Income is recognised when the charity is legally entitled to It after any performance conditions have been mel, the amounts can be measured reliably, and il is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the lime of the donation. Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Wher& income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued. 13-
CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies {Continuedl 1.5 Expenditure Expenditure is recognised once there is a legal or constructive obligalion lo transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in selllement, and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs. including support costs involved in undertaking each aclivily. Direct costs attributable to a singlé activity are allocated direclly lo that activity. Shared costs which contribute to more than one activity and support costs which are not altribulable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use. 1.6 Tanglble flxed assets Tangible fixed assets are initially measured al cost and subsequèntly maasured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Freehold land and buildings Plant and IT equipment Fixtures and fittings 50 years straight line - buildings only 3-5 years straight line 2-6 years straight line Freehold land is not depreciated. The galn or loss arlslng on the dlsposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. 1.7 Impalrment of flxed assets At ea¢h reporting end date, the charily reviews the carrying amounts of ils tangible assets to determine whèther there is any indication that those assets have suffered an impairment loss. If any such indication exists, th8 recoverabl8 amount of the asset is estimated in order to determine the extent of the impairm8nt loss (if any). 1.8 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held al call with banks, other short-lerm liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.9 Financial instruments The charity has elected lo apply the provisions of Seclion 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes parly to the Contractual provisions of the instrument. Financial assels and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to sel off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. 14-
CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies (Continued) Basic financial assets Basic financial assets. which include debtors and cash and bank balances, are initially measured al Iransaction price including transaction costs and are subsequently carried al amortised cost using the effective interest method unless the arrangement conslilules a financing transaction, whère the transaction is measured al the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Baslc flnanclal Ilabilities Basic financial liabilities, including creditors and bank loans are Snitially recognised al transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted al a market rale of interest. Financial liabilities classified as payable within one year ar8 not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations lo pay for good5 or services Ihat have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one y8ar or less. If not, they are presented as non-currenl liabilities. Trade creditors are recognised initially al transaction price and subsequently measured at amortised cost using the effective Interest method. Derecognltlon of flnanclal Ilabllltles Financial liabilities are derecognised when the charity's conlraclual obligations expire or are discharged or cancelled. 1.10 Employee benefits The cost of any unused holiday entlllement is recognised in the period in which the employee's seNices are recèivèd. Termination benefits are recognised immediately as an expens8 when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 1.11 Retirement benefits Retirement benefits for employees who are teachers al the School are provided by the Teachers, Pension Scheme ITPS).The TPS is an unfunded scheme and contributions are calculated so as lo spread the cost of pensions over employees, working lives with the School in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a projected unit method. The TPS is an unfunded mulli-employer scheme with no underlying assets to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions are recognised in the period to which they relate. The School also contributes to personal pension plans for administrative employees and the pension charge repr&s&nls the amounts payable by the School. 15-
CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Critical accounting estlmates and Judgements In the application of the charity's accounting policie5, the Trustees are required to make judgements, estimates and assumptions abaul the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historic81 experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which th& èstimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Income from donations and 18gacles Unrestricted funds 2024 Unrestrlcted funds 2023 Donations and gifts 1.377 570 Income from charitable activities Unrestricted funds 2024 Unrestrlcted funds 2023 Charltable Activity School fees Other income 1,761,646 98,568 1,600,987 162,169 1,860,214 1,763,156 Income from Investments Unrestrlcted Unrestricted funds funds 2024 2023 Interest receivable 7,199 16-
CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Expenditure on charltable activities Charitable Activity 2024 Charltable Actlvlty 2023 Direct costs Staff costs School expenses School meals expenditure School trips expenditure Repairs and maintenance Motor and travel Rates Light, heat and power Telephone and IT Photocopier Membership and professional subscriptions Cleaning Insurance Training costs Bad debts Sundry expenses 1,169,943 157,346 52.417 38,580 28,030 6,142 12,867 17,431 22,025 6.092 10,693 42,717 22,255 3.859 3,786 9.555 1,069,698 135,892 49,271 43,854 22,713 6,222 24,854 10,952 27,610 5,697 14,460 38,605 24,406 5,683 12,177 1,603,738 1,492,094 Share of support and governance costs {soe note 7) Governance 71.503 71,330 1,675,241 1,563,424 Analysis by fund Unreslricled funds 1,675,241 1,563,424 Support costs allocated to activities Charitable Activity 2024 Total 2023 Governance 71,503 71,330 17-
CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Support costs allocated to activities (Continued) 2024 2023 Governance costs comprise: Depreciation Audit fees Accountancy Leg81 and professional 32,532 6,150 2,550 30,271 48,670 5,700 1,800 15,160 71,503 71,330 Net movement in funds 2024 2023 The net rnovemenl in funds Is staled after ¢hargingl{¢reditingl: Fees payable to the charity's auditor.. for the audit of the charity's financial slalements for other financial services D&preciation of owned tangible fixed assets 5,340 2,550 32,532 5,100 2,400 48,670 Trustees None of the Trustees (or any persons connected with them} received any remuneration or benefits from the ch8rily during the year. 10 Employees The average monthly number of employees during the year was: 2024 Number 2023 Number Teaching Finance & admin Facilities 25 24 Total 33 32 Employrnent costs 2024 2023 Wages and salaries Social security costs Other pension costs 932,970 87,324 149,649 870,529 75,790 123,379 1,169,943 1,069,698 18-
CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 10 Employees (Continued) The number of employees whose annual remuneration was more than £60,000 is as follows.. 2024 Number 2023 Nurnber £70,OOQ to £80,000 £80,000 to £90,000 Remuneration of key management personnel The remuneration of key management personnel was as follows: 2024 2023 Aggregaté compensation 261,898 236,431 The key managemenl personnel of thè School comprises the Trustees, the Head Teacher, the deputy Head Teacher and the School Business Manager. Th& schools Trusté8s are not remunerated. 11 Taxatlon Thè charity is exempt from taxation on ils activities because all ils income is applied for charitable purposes. 12 Tanglble fixed assets Fr¥ohold l¥nd Plant and IT Fixtures and and bulld5ngs equlpment flttlngs Tol81 Cost At 1 September 2023 Additions 1,673,234 54,026 96,299 3,773 73,333 1,842,866 6,769 64,568 At 31 August 2024 1,727,260 100,072 80,102 1,907,434 Depreciation and impairment Al 1 September 2023 Depreciation charged in th8 year 296,679 19,601 86,740 6,238 38,938 6,693 422,357 32,532 Al 31 August 2024 316,280 92,978 45,631 454,889 Carrying amount At 31 August 2024 1,410,980 7,094 34,471 1,452,545 At 31 August 2023 1,376,556 9,558 34,394 1,420,508 Included in land and buildings is freehold land at a valuation of £500,000 12023.. £500,000) which is not depreciated. 19-
CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 13 Debtors 2024 2023 Amounts falling due within one year: Trade debtors Other debtors Prepayments and accrued incorne 2,921 1.179 34,286 1,336,754 800 10,376 38,386 1,347,930 14 Credltors: amounts falling due wlthin one year 2024 2023 Notes Other taxation and social security Deferred income Trade creditors Qlher creditors Accruals 18,739 573,540 42,268 35,369 19,615 19,306 1,590,365 19,969 28,565 15,114 16 689,531 1,673,319 15 Creditors: amounts falling due after more than one year 2024 2023 Other cr8dilors 118,808 83,500 20-
CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 16 Deferred Income 2024 2023 Othèr deferred Income 573,540 1,590,365 Deferred income is included in the financial statements as follows.. 2024 2023 Deferred income is included within.. Current liabilities 573,540 1,590,365 Movements in the year.. Deferred income al 1 September 2023 Released from previous periods Resources deferred in the year 1,590,365 1,491,798 (1,590,365) (1,491,798) 573,540 1,590,365 Deferred income al 31 August 2024 573,540 1,590,365 School feès are invoiced in July for the coming academic year, and are therefore included in deferred income at the year end. The prior year deferred income balance has been released in full in the year, and tha total current year balan has been deferred for this year. 17 Retlrement benefit schemes 2024 2023 Defined contributlon schemes Charge to profil or loss in respect of defined contribution schemes 149,649 123,379 21
CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 17 Retirement benefit schemes {Continued) The Teachers, Pension Scheme ITPSI is a statutory, contributory, defined benefit scheme, governed by the Teachers, Pension Scheme Regulations 2014. Membership is automatic for full-lime teachers in schools and from 1 January 2007, automatic for teachers in part-lime employment. All teachers have the option to opt out of thè TPS following anrolment. The TPS is an unfunded scheme lo which both the member and employer makes contributions, as a percentage of salary. These contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) (Amendment and Savings} Directions 2019. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department for Education on 27 October 2023, with the SCAPE rate, s81 by HMT, 8pplying a notional investment return based on 1.7Vo above the rate of CPI. The key elements of the valuation outcome are.. employer contribution rates set at 28.680/0 of pensionable pay (including a 0.08¥0 employer administration charge). This is an increase of 50/0 in employer contributions and the cost control result is such that no ¢hange in member benefits is needed. total schame liabilities (pensions currently in payment and the estimated cost of future benefits) for S8Nice lo the effective date of £262,000 million, and notional assets lestimaled future contributions together with the notional investments held al the valuation dale) of £222,200 million giving a notional past service deficit of £39,800 million The result of this valuation will be implemented from 1 April 2024.The next valuation result is due to be implemented from 1 April 2028. The employer pensions contributions to TPS in the year amounted to £139,92412023'. 114,7271. A copy of the valuation report and supporting documentation is on the Teachers, Pension web51te. Under the definitions sét out in FRS 102, th8 TPS is an unfunded multi-employer penslon scheme. The charity is unabla to identify its share of the underlying assets and liabilities of the plan. Accordingly, the charity has taken advantage of the exemption in FRS 102 and has has accounted for its contributions lo the scheme as if il were a defined contribution scheme. The charity has set out above the inform81ion available on the scheme. The School also makes contributions to personal pension plans for non-leaching staff. The total ¢ost of these contributions was £9,726 {2023.' £8,652). -22-
CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 18 Unrestricted funds The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject lo specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes. At1 September 2023 Incoming resourcès Resources At 31 August axpended 2024 Sile development fund Personal donations fund General funds 73,050 570 1,348,344 73,050 353 1.542,110 1,132 1,867,658 (1,349} (1,673,892) 1,421,964 1,868,790 (1,675,241) 1,615,513 Prevlous year.. At1 September 2022 Incomlng resources Resources At 31 August expended 2023 Sile development fund Personal donations funds General funds 63,200 13,500 570 1,749,656 13,6501 73,050 570 1,348,344 1,158,462 (1,559,774) 1,221,662 1,763,726 11,563,424) 1,421,964 19 Operatlng lease commltments Lessee At the reporting end date the charity had outstanding commitments for future minimum leas8 payments under non-cancellable operating leases, which fall due as follows- 2024 2023 Within one year Between two and five years 3,158 7,308 3,158 3,158 10,466 20 Related party transactions Trustees whose children attend the school pay fees at the same rate as other parenls. There were no other disclosable related party transactions during the year {2023.' £39,427). 23-
CARLETON HOUSE PREPARATORY SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 21 Cash generated from operations 2024 2023 Surplus for the year 193.549 200,302 Adjustments for: Investment income recognised in slalement of financial activities Depreciation and impairment of tangible fixed assets {7,199} 32,531 48,670 Movements in working capital: (Increaselldecrease in stocks Decreasellincreasel in debtors Increasel{decreasel in creditors {Decreasellincrease in deferred income 1,068 {63,7151 (86,4161 98,567 1,309,544 68,345 {1,016,8251 Cash generated from operatlons 579.945 198,476 22 Analysis of changes in net funds The charity had no material debt during the year. -24-