Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Charity Registration No. 514407 Company Registration No. 01751466 (England and Wales) LEICESTERSHIRE INDEPENDENT EDUCATIONAL TRUST (OPERATING AS THE DIXIE GRAMMAR SCHOOL) DIRECTORS, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 •• 71￿ 31xioI The Dixie Grammar School Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust CONTENTS Page Company infomation Directors, report Independent auditors, report 17 Statement of financial activities 20 Balance sheet 21 Cash flow statement 22 Notes to the accounts 23 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust COMPANY INFORMATION YEAR ENDED 31 AUGUST 2024 DIRECTORS AND ADVISORS Directors Mrs J Fenton Parkes (Chair) Mr M Ashfield (Vice Chair) Mr P J Bowman (resigned 21 March 2025) Mr S D Boyes Mr D M Jinks (appointed 8 December 2023) Mr D M Jones (appointed 28 June 2024) Dr C H Kendall (resigned 8 December 2023) Mrs S L Kennedy Mr J A Marsh Mrs K Mclntyre Professor M Mihsein Ms L M Pittwood Mr l A Smith (resigned 8 December 2023} Mrs A Breadon (Co-OPted} (resigned 21 March 2025) Miss G Brooks (Co-opted) Company Secretary Mr M J Frost Charity No. 514407 Company No. 01751466 Principal address and Registered Office The Dixie Grammar School Market Place Market Bosworth Nuneaton Warwickshire CV13 OLE Key Management Personnel Headmaster Bursar Deputy Head Head of Sixth Fomi Director of Student Care Senior Management Senior Management Assistant Head of the Junior School Assistant Head of the Junior School Senior teacher MrRJLynn Mr M J Frost Mrs C M Young (to August 2024) Mr J Dixon Mrs H J Banton Mr R J Thirlwell Miss V Entwisle Mrs S Baker Mrs K MacKenzie Mrs K Craig Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust COMPANY INFORMATION YEAR ENDED 31 AUGUST 2024 Auditors Cooper Parry Group Limited Sky View Argosy Road East Midlands Airport Castle Donnington Derby DE74 2SA Bankers National Westminster Bank PIC 13 The Borough Hinckley Leicestershire LE10 1NW Solicitors Woodroffes Solicitors 7 Beeston Place London SW1W OJJ Veale Wasbrough Vizards LLP Narrow Quay House Narrow Quay Bristol BS14QA Broomfields Minerva House 7 St John's Business Park Rugby Road Lutterworth Leicestershire LE17 4HB Insurance Brokers Turner Insurance Group 34-36 Princess Road West Leicester LE16TQ Land Agents Fisher Gemian LLP The Estates Office Norman Court Ivanhoe Business Park Ashby de la Zouch LE65 2UZ Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust DIRECTORS, REPORT (incorporating the Strategic Report) YEAR ENDED 31 AUGUST 2024 The Directors. who are also trustees of the charity and govemors of the school. present their report and financial statements for the year ended 31 August 2024 and confirm they comply with the requirements of the Charities Act 2011 including the Directors. and Strategic Reports as required under the Companies Act 2006. OBJECTIVES AND ACTIVITIES Charitable Objects The charity's objects, as set out in the Articles of Association. are to promote and provide for the advancement of education for public benefit and in connection therewith to conduct, carry out, acquire and develop in the United Kingdom or elsewhere, a school or schools to be run for the education of students and children of any gender. Aims The Leicestershire Independent Educational Trust (trading as The Dixie Grammar School) is a day school for pupils from the ages of 3 to 18. It aims to support children in reaching their potential in all areas of their activity at the school, and in the wider community. This may be in academic subjects but could just as easily be reflected in success in art, drama, sport, music or dance. The School produces 'well rounded, individuals who are able to make a positive contribution to society- Our aim is to provide a rounded education to help pupils make their way in adult life. Primary objectives The primary objectives of The Dixie Grammar School to fulfil these aims are: to provide a stimulating leaming environment in which pupils can develop their academic potential to the full., to provide a happy and secure pastoral environment in which pupils can learn to live together and thus foster a sense of community, respect for one other and good citizenship., to provide pupils with the opportunity to take advantage of a breadth of co-curricular activities in order to develop positively all aspects of their character- to provide pupils with the opportunity to take decisions based on their own judgement and to communicate those decisions appropriately and effectively" to provide financial support to enable children whose parents are unable to afford the full fees to benefil from a Dixie education- to provide a clear, simple and effective management structure capable of taking timely decisions and allocating ne￿SSary resources appropriately- and to provide the necessary administrative and logistic framework to meet the needs of members of staff and pupils alike. Strategies to achieve the primary objectives Our key strategies in delivering each of the School's primary objectives include: Periodically reviewing the provision of teaching space across both the Senior and Junior school sites and investing in a rolling programme of refurbishment and upgrade. The provision of a clear pastoral structure in which every child is known. Creating an environment in which all students have responsibility for others, welfare and in which our older students have clear pastoral leadership responsibilities for more junior pupils. Making explicit the expectation that all staff will contribute to the extra-curricular programme. Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust DIRECTORS, REPORT (incorporating the Strategic Report) YEAR ENDED 31 AUGUST 2024 Encouraging students to show leadership in a variety of ways.. through taking assemblies, initiating fundraising ideas, starling extra-curricular clubs and societies, becoming maths leaders, sports leaders, encouraging senior school students to take a lead with those at the junior school during whole school events. Running and actively promoting 'student voice. through our student council, senior prefects and the 'Ashworth Board, _ a board on which students can voice concems or request improvements to school life. Providing bursary and scholarship funds in line with Charity Commission guidelines. including via the Heathcote Legacy. thereby allowing us to widen aC￿sS to the school. Periodically reviewing our management structure and ensuring that we provide clarity to lines of accountability and responsibility- The curriculum is kept under continual review and adaptations are made each year to ensure that the children are best supported. Principal Activity The principal activity of the school is the delivery of education to pupils ranging from 3 to 18 years of age. We also run a popular summer school over 3 weeks in the summer holidays. Pupil numbers at the school at the start of each academic year were as shown below. 202312024 315 131 19 465 202212023 303 133 17 453 202112022 298 143 21 462 Senior School Junior School Nursery (FTE) Total Pupil numbers subsequently increased lo 473 in January 2024, and 477 in January 2025. Public Benefit Within the objects, the School aims to create an environment to nurture children, to get the best from them and to allow them to develop and fulfil their potential. We provide them wilh a first-class independenl education and a wide range of sporting. leadership, musical and artistic opportunities. Our public benefit aim is that all pupils will be self-confident and desire to contribute to the wider community that they are part of. In the furtherance of these aims The Dixie Grammar School Governors, as charily trustees, have complied with the duty in s.17 of the Charities Act 2011 to have due regard to the Charity Commission's published general and relevant sub-sector guidan￿ concerning the operation of the public benefit requirement under that Act. Our School welcomes pupils from all backgrounds. To admit a prospective pupil, we need to be satisfied that our School will be able to educate and develop a prospective pupil to the best of their potential and in line with the general standards achieved by their peers. Entrance interviews and assessments are undertaken to satisfy ourselves and parents that potential pupils can cope with the pace of learning and benefit from the education we provide. An individual's economic status. gender. ethnicity, race, religion or disability do not form part of our assessment pnicesses. Our School is a part of a wider community and we are keen that our staff and pupils participate. Our school also offers a resource to support a range of educational activities for the benefit of local children attending state schools and their teachers. OurGovemors are committed to developing, where possible, cooperation and joint working with local maintained sectorjunior and secondary schools. Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust DIRECTORS, REPORT (incorporating the Strategic Report) YEAR ENDED 31 AUGUST 2024 The Dixie Grammar School provides significant benefit to the public. It strives to ensure that measures of public benefit are appropriate, and that significant sections of the public are not excluded from the opportunity to benefit from the education and facilities offered due to the need to pay a fee. In addition to significant provision of bursaries and other fonns of financial support. the school provides a wide range of opportunities for community benefit and facilities and events are often open to all. Further detail of the public benefit offered is included in the section entitled 'Achievements and Performan￿, below. Parents of pupils atthe school often make significant sacrifices to pay the fees. In educating an average of 450 UK based school age pupils, parents help considerably in relieving HM Government of the financial burden of paying for their children's education through general taxation. This saved HM Government the sum of £3.3 million based on the school funding statistics per the govemment gateway website which state the funding received per pupil for the 2023-24 academic year was £7,460 per pupil per annum. Bursaries The Governors view our bursary awards as important in helping to ensure children from families who would otherwise not be able to afford the fees can access the education we offer. Our bursary awards are available to all who meet our general entry requirements and are made solely on the basis of parental means or to relieve hardship where a pupil's education and future prospects would otherwise be at risk, for example in the case of redundancy. In assessing means, we use the methodology promulgated by the Independent Schools, Bursars Association, which takes a comprehensive range of factors into consideration including family income. investments and savings and family circumstances for example dependant relatives and the number of siblings. We do not enjoy the ownership of any permanent endowments and in funding our awards. we therefore have to be mindful that we must ensure a balance between our fee-paying parents. many of whom make considerable personal sacrifices to fund their child's education, and those benefiting from the awards. We also need to be mindful as to affordability for the Charity as we have had a period of not being able to generate any surplus, albeit this year we generated a surplus. We do though have the support of the legacy of the late Bernard Heathcote, a forrner pupil of the school, to assist with our provision. We are grateful lo the NFL Trust, one of the wider educational charities, who continue to provide support to a pupil at the school. Finally, the Dixie Educational Foundation (a registered Charity), historically generously financially supported pupils at the Dixie. The Bemard Healhcote Committee (Bursary Panel) meets annually to grant bursarial awards for the forthcoming academic year. It also meets in year as necessary. The bursary awards range from 5 °/0 to 100 % remission of fees. Information about fee assistance through bursaries is provided to all applying to the school. The Bursar, in concert with the Headmaster. periodically reviews inplace awards, making adjustments as deemed appropriate. Full details of our bursary policy and how to apply are available on the School's website. Scholarships The purpose of our scholarship awards is to recognise high academic polenlial or the ability to excel in our co-curricular activities. Our scholarships are awarded on the basis of the individual's academic potential or evidence of other exceptional abilities. thereby allowing contribution to our co-curricular activities. In addition. awards may be subject to conditions imposed by the original donor. The availabilily of scholarship awards is advertised on our website. Scholarships are awarded with a fixed remission of fees of up to £1,000 per annum. Where further assistance is required, awards can be supplemented through a bursary. The progress of pupils receiving scholarships is reviewed annually, to ensure their progress is in line with their abilities. No scholarships were withdrawn in the year as a result of such reviews. Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust DIRECTORS, REPORT (incorporating the Strategic Report) YEAR ENDED 31 AUGUST 2024 Review The school includes details of the various cOn￿ssIOnS in its prospectuses and on the website. All parents making enquiries about possible entry are provided with a description of the criteria for bursaries and scholarships. The budget for bursaries is allocated using a "needs blind" approach as far as possible, whilst giving priority to the continuity of education of those pupils already at the school. The Bemard Heathcote Committee (Bursary Panel) is the authority for all bursaries. The criteria and policies relating to concessions are kept under Govemor periodic review. ACHIEVEMENTS AND PERFORMANCE The Promotion of Education During the year we educated over 470 children between the ages of 3 and 18. The School provides a very high standard of education and this is validated in a review of the academic results. our measurements of added value and through extemal inspection. Our most recent ISI Inspeclion took place in February 2022 and again graded the School as fully compliant with the Independent School Regulations and judged the educational quality as Excellent across all the inspection criteria, maintaining the previous excellent grading of educational quality in 2015. The school offers a broad curriculum and educates children with a range of ability. We are able to demonstrate excellence across the curriculum and in a wide range of extra-curricular activilies, including.. Music and Musical theatre examinations in which 27 students in Years 6 and above achieved awards, 18 at grade 1 and above and 1 at the coveted grade 8 distinction. 8 students achieved school Music Honours. 30 pupils were awarded Merit or distinction passes in the LAMDA Level 1 Speaking in public. Our Equestrian Club, including over 70 students from ages 8-18 represented the Dixie on the local and national stage, winning several prestigious events, including 3 winter national British Showjumping Schools National titles. Some 34 students were awarded bronze. silver and gold medals in the Primary. Junior, Intemiediate and Senior UK Mathematics Trust Maths challenges, with students qualifying for the next round in the Senior and Intermediate Challenges. Of note, of these awards were at gold level. A total of 28 students were awarded bronze. silver and gold medals in the Biology, Chemistry and Physics Olympiads. 44 students were awarded a distinction in the Bebras international computational challenge, with 27 in years 7 and 8 awarded a merit. 8 pupils were awarded a Bronze medal in the Inspiring Digital Enterprise Award. Our photographic competition attracted entries from well over 100 students and our Young Enterprise Company, The Pawesome Bag Company produced an ethically sourced, environmentally conscious 'grab and go, bag for dog walkers. The companysecured the county award for sustainability. The Duke of Edinburgh Award scheme continues to grow in popularity, as part of our outdoors programme, which runs from a Forest School in the Pippins Nursery to World Challenge in our Sixth Form. Thirty Awards were completed this academic year at Bronze level, four at Silver, and six at Gold. Our Business and Entrepreneurship Award. generously sponsored by one of our parents, saw a strong field of applicants from five teams. The judging panel posed questions to candidates and came from a variety of industries and specialisms. Product entries included a product for those with sensory needs (Sensory Secure). a memory bank to capture special events (Every Day Bag} and a healthy food mix for pets (Blue's Bakes). The winning company, Moreish Marshmallows had an order form on every seat at our annual prizegiving ceremony. Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust DIRECTORS, REPORT (incorporating the Strategic Report) YEAR ENDED 31 AUGUST 2024 A significant number of students achieve major sporting honours through the Independent School Associalion competitions, at both regional and national level and in county and national competitions. During 2023124 24 pupils represented the Dixie on the national swimming stage, thirleen students achieved national cross-country honours including county champion, with forty achieving national representative honours in athletics. with achieving national gold medal awards. Two pupils have county representative honours in football, three in hockey, two in cricket, one in golf. one in roller-hockey and one in tug-of war. One pupil has national level representation honours in sailing. and 2 in karting. one in karate. Fourteen pupils have national representative honours in equestrianism, 3 in tennis and 5 in skiing, including 8 national first place award. One pupil took part in the cheerleading World Championship. Twenty pupils have national representative honours in gymnastics. and 7 in the triathlon, including one national champion. Academic Results Our small group sizes, expert tuition and individual support ensure that every individual realises their own potential. We are proud of our extemal examination results, and particularly in our record of securing places for individuals at their first-choi￿ university. cumulatlvè % I A Level resufts 2024 11 62 95 GCSE Results Average 2022 - 2024 (%) 13 918 917 26 45 916 62 915 79 914 We are of course incredibly proud of these impressive results. but more so of the value-added data, which shows that the value added by the Dixie is on average more than one grade for every GCSE taken, when compared to all schools nationally, ranking us in the top 10°/o of all schools for value added. The Dixie is, however, about far more than extemal exam results. We help develop young people who respect and care for others, have resilien￿ and courage for their futures and are committed to all they engage in. Our newly defined values of Respect, Resilience. Courage. Commitment and Care are more explicitly embedded in our work as a school this year. Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust DIRECTORS, REPORT (incorporating the Strategic Report) YEAR ENDED 31 AUGUST 2024 Improving Facilities We continue to improve facilities through constant investment in the fabric of the buildings and assets, and ambitious programmes to provide the best facilities to support teaching and leaming. During the 2023-24 academic year we signed a long-term extension to our existing lease at the Senior School Site with the Dixie Educational Foundation. The ongoing refurbishment work programme notably included the Design Studio at the Senior School, redecoration of classrooms at the Junior School (Year 1 to Year 5), and the re-tarmac of a car-park at the Junior School which has become a new playground during the school day. Community Through development of, and provision of access to new facilities, the school remains at the heart of the community. Facilities made open to the public include: The School Hall - used for local groups including choirs, cinema clubs. charity fundraisers, the Market Bosworth Festival and other societies, including the Rotary Club Our Music facilities are made available to local choirs The school has run a programme of Mandarin classes free to members of the local community Sports facilities- used by the local community Outreach We operate an arrangement with five primary schools in the local area whereby we provide use of our expertise in Mandarin lo help enrich their educational provision. Our Duke of Edinburgh programme in the senior school requires students to take community based projecls. This year students have volunteered to work in a range of businesses and charities. Our Intergenerational care community project in Year 6 which gives Year 6 students the opportunity to visit a local care home on a weekly basis has continued to thrive. Games, infomiation sheets and letters have been written to and from residents of the care home and this continues to be an important part of our community contribution. The School continues to develop wider community links. In addition to the facilities listed above, we have a programme of widening educational access to our facilities. at fee rates below commercial levels, including the use of our impressive sporting facilities. Charitable Activities As well as supporting the local community, pupils and staff support schools in Africa and Madagascar through World Challenge and further afield as part of our Intemational Schools Award, which recognises our commitment to global education. We have undertaken specific fundraising for projects and a number of our pupils have been to the countries to help in development of educational projects. The school community takes part in a wide range of sponsored events and other fundraising activities. FINANCIAL REVIEW Results for the Year The results for the year ended 31 August 2024 are shown in the Statement of Financial Activities on page 20. This, together with the balance sheet on page 21, should be read in conjunction with the related notes which have been prepared in accordan￿ with the Charities SORP 2019 (FRS 102). Total income {excluding the exception item) for the year amounted to £6.640,20912023: £5,954,958). The principal source of funding continued to be tuition fees. Total expenditure for the year amounted to £6,087.114 (2023= £5,934,380). A breakdown of expenditure is set out in the notes to the financial statements. Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust DIRECTORS, REPORT (incorporating the Strategic Report) YEAR ENDED 31 AUGUST 2024 After transfers between funds, there was a surplus on unrestricted funds for the year totalling £695,077 and a surplus on restricted funds totalling £22,382. This has resulted in a total increase in funds for the year of £717,459. The funds for the charity at the year end totalled £2,865.655, which comprise restricted funds of £782,078 and unrestricted funds of £2,083.577 of which £274,388 has been designated leaving £1.809,189 of general funds. This is a considerable achievement following the myTiad of challenges presented by the aftermath of COVID-19 and other global events that contributed to significant inflationary pressures. The wider Independent Schools Sector has continued to face a wide range of challenges resulting from governmental, political and economic strategy. The Governors continue to closely monitor what the short-term and long-temi impacts may be. In response to this, a consultation with teaching staff commenced in January 2023 in respect of a possible exit from the Teachers, Pension Scheme and its replacement with a defined contribution scheme. The outcome resulted in the School withdrawing from the Teachers. Pension Scheme with effectfrom 31 August 2023. All teaching staff supported the change and acknowledged the benefit it would bring in the short and long term. The results for the year ended 31 August 2024 are the first to reflect these changes, and have significantly improved the financial perfomance of the school, together with Pupil numbers continuing to increase. During the year some land that was not being used by the School, nor was in the future plans of the School, which was under a faming business tenancy agreement was sold to reinvest the proceeds in the long-term strategic development of the school site. The net profit on the sale of the land was £164,364. The net proceeds of £197,364 has been designated to the School Site Development Fund (as shown in note 18 to the financial statements)- The Directors wish to have a continuing programme of refurbishment, development and investmenl to maintain excellent leaching facilities for our pupils. However, il is the key intention of the Board that the School will continue to invest prudently in its buildings and facilities, as well as its staff and the Board will ensure that any future surplus income will be so appropriately deployed to benefit current pupils whilst securing sustainability. Reserves Policy It has been the School's policy to utilise funds to ensure that high quality. up-l(Fdate facilities are provided for the benefit of pupils. The airn is to budget so as to provide sufficient working capital to meel the present needs and future development requirernents of the school without the requirement to have recourse to sales of tangible fixed assets. The Dixie Grammar School plans to fund longer-term capital expenditure and meet long-term liabilities through careful management of resources and investments and through building reserves through operations and trading. It will also seek to avail itself offurlher borrowing from its bankers, Natwest Bank, with whom it has a long-standing relationship. The Govemors, medium temi aim is to make an overall surplus of a minimum of 5% of net fee income to allow for its continued development. This aim was met for the year ended 31 August 2024. In common with most independent schools. and due to having to fund their own capital investment plans, free reserves are at a negative balance illustrating the extent of the investment in our school. The school's total net assets of £2,865,655 at the year-end included £2,083,577 of unrestricted funds and £782,078 in restricted funds. Fixed assets held for charity use total £3.351,864. The school's financial viability does not depend on income reserves but in its ability to continue to operate at a surplus on an annual basis. together with its portfolio of fixed assets held for operational use. The company's unrestricted reserves are primarily invested in tangible fixed assets, which are all used for its direcl charitable activities. Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust DIRECTORS, REPORT (incorporating the Strategic Report) YEAR ENDED 31 AUGUST 2024 Principal Risks and Uncertainties The Goveming Body is responsible for the identification and management of risks. The major risks, to which the Charity is exposed, as identified by the Governors, have been reviewed and systems or procedures have been established to manage those risks. Detailed examination of the risks and establishment of controls to mitigate them is delegated to the management team and is overseen by the relevant sub-committee of the Goveming Body. A comprehensive Risk Register is in place and this is used as both a management tool as well as a monitoring device for the Goveming Body. with it being a standing item on every committee meeting. The Governors have previously considered the economic turbulence of recent years and the affordabilityof fees by parents across the independent sectorto be the principal risk faced bythe school, which of course has been exacerbated by the COVID-19 pandemic and more recently the cost of living crisis resulting from a long-sustained period of high inflation. For some years, the Governors regarded the introduction of VAT on tuition fees and withdrawal of the charity business rates relief, under a Labour government, to be a principal risk. The School has remained vigilant and proactive in monitoring and preparing for these changes ahead of the new Labour Govemment's first budget in October 2024 enacting these changes. The change in Employer's national insurance costs contributions at the budget adds a considerable costs burden to the School from April 2025. In light of all these changes the principal risk is parental affordability which could lead to a reduction in pupil numbers. With this in mind governors have been able to shield parents from the full increase in fees for VAT and absorb the cost in year of the loss of charitable business rates relief and change in employer national insurance costs. The School was able to afford this by the strategic decisions made in previous years, namely the withdrawal from the Teachers, Pension Scheme. The Governing Body carefully considers the level of fee increase, taking due account of what competitor schools are charging and the cost of inflation the School faces. Despite these threats, over a number of years it has been pleasing to see pupil numbers increase over recent years {page 4) and pupil numbers continue to grow at the time of the approval of the accounts. This continued confidence in the School bodes well and is credit to the Headmaster and his staff for the strength of the Dixie educational offering. This is well illustrated both in our examination results and the qualily of the wider offering, all commented upon earlier in this Director's Report. Health and Safety is always a significant area for risk management. The risks range from fire and infrastructure lo personal risks (most notably when away from the campus on trips and expeditions). The level and breadth of activity at the School is impressive and the risks associated with all activities are minimised by thorough planning and risk assessment. Other principal risks to which the school is exposed include those affecting protection of pupils and security and preservation of charitable assets both now and in the future. Significant risk areas include.. the market in which the Sch(K)l operates is highly competitive and we monitor developments in education to ensure that pupils always re￿1ve a first class. holistic and varied educational experience in our School. we strive to ensure that all staff are able to work in a safe and supportive environment and policies. procedures and training in Human Resource management and Health and Safety help to ensure that the School meets expectations. the School operates in a highly regulated sector. including in matters of child protection, and we appoint appropriate professional advisers to ensure that we can keep up to date with all requirements- school or individual membership of bodies being the constituent associations of the Independent Schools. Counal also ensure that we have access to up to date information and support. the School operates in an increasingly litigious environment and we appoint appropriate professional advisers and purchase insurance using specialist brokers and advisers to ensure that we can keep up to date with all requirements and meet all challenges. all organisations fa￿ difficult economic conditions and directors and senior managers in the School keep abreast of economic conditions locally. nationally and internationally to identify trends and develop plans to address issues. 10 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust DIRECTORS, REPORT (incorporating the Strategic Report) YEAR ENDED 31 AUGUST 2024 The key controls used by the school include: formal agendas and minutes for all meetings of the Goveming Body and committees. a comprehensive Risk Register" temis of referen￿ for all committees. all periodically reviewed; comprehensive strategic planning, financial forecasting, budgeting and management accounting" established and identifiable organisational structures and reporting lines which are regularly reviewed" comprehensive fomial written policies. clear authorisation limits; vetting procedures. as required by law. for protection of the vulnerable. Financial risk management objectives and policies The School uses financial instruments, other than derivatives, comprising loans, cash and other liquid resources and various other items such as trade debtors, creditors and finance lease arrangements that arise directly from operations. The main purpose of these financial instruments is to raise finance for the School's operations. The main issues arising from the school's financial instruments are liquidity risk and interest rate risk. The Govemors adopt policies for managing each of the risks and these are summarised below.. Liquidity risk the School seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs by negotiating adequate facilities from banks and other lenders; Interest rate risk- the School finances operations through a mixture of retained surpluses, and bank and other borrowings. The exposure to interest rate fluctuations is managed by the use of both fixed and floating facilities and re-negotiating the terms of any loan, when necessary or thought sensible. All loans are underwritten by charges on assets so as to deliver the competitive borrowing costs. Going Concern Taking account of the remaining CBILS loan, together with the current growth in pupil numbers and adjustments to the cost base of the business (for the 31 August 2024 financial year), prudent forecasts have been prepared that show that the Charity has adequate reserves to meet in full the Charity's financial obligations as they fall due. Our Bank continues to be supportive in respect of existing borrowing, all of which is being repaid to commitments. Additionally and importantly, interest in the school. principally at the senior level remains healthy both in the current academic year and also for September 2025. This is reflected in pupil recruitment and retention. Accordinglythe Directors believe it appropriate to adopt the going concern basis of accounting in preparing these financial statements. FUTURE PLANS The key objectives of the current Strategic Plan are contained in the Dixie 2030 Vision document, which contains both short and medium term actions to be implemented. all with responsible owners. This document was reviewed at the Strategy Development Committee. Key extracts from the subject document are detailed below. Our Core pU￿oSe is defined as - To provide an ex￿lIent education for all students at the Dixie Grammar School. Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust DIRECTORS, REPORT (incorporating the Strategic Report) YEAR ENDED 31 AUGUST 2024 Our Mission Statement is defined as- To provide excellent gro￿ opportunities for all members of the whole Dixie Community. Academic excellence - continuing to exceed expectations for all pupils. Active engagement of pupils in Sport, Music, Adventure and the Studenuschool Council. Provide opportunities for appreciation of intemational perspectives and travel. For pupils. experience of charitable work in the local community and overseas. Continued growih in pupil numbers. taking account of local demographic and other changes. Construction of the new Sixth Fomi Centrelfacilities. Place the School as the school of first choice in the catchment area. Be recognised in the local community as core to the long-term success of Market Bosworth. Fully exploit the educational and financial benefits of collaboration, building on the initial work with Stafford Grammar School. Surpluses of 5 % of net fee income in the medium term. whilst in the short term a surplus of 2.50/0 of net fee income. The School to be able to continue to attract and retain high quality leaching and support staff. Overall, the Directors seek to ensure the medium-tenn viability and success of the School. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing Document The Company is governed by Articles of Association as adopted by Special Resolution dated 18 September 2009, replacing those dated 22 July 1983. They permit funds to be managed in such a manner as the Directors see fit, provided that such powers are only exercised for the purposes of attaining the objects and in a manner that is legally charitable. The principal object for which the charity was established is to promote and provide for the advancement of education and to carry on, acquire and develop schools. Governing Body The Governors are the Directors and charitable trustees of the company and comprise the Governing Body of the Dixie Grammar School. They are elected to hold office for periods as defined in the Arlicles of Association. The school is governed by the Governing Body. which operates using a number of committees. The Governing Body meets a minimum of 3 times each year, usually termly. Since COVID- 19, the Board has met both in person and remotely via Video Conference and the Board and Committees have also evolved an effective hybrid approach to meetings, as circumstances ofthe Board and individuals dictate. In order to further strengthen governance, one person is co-opted onto the FFP Committee and another to the Marketing. Brand and Culture Committee. The Governing Body has recently undertaken a recruitment exercise both to further strengthen the Board but also to provide replacements for longer serving govemors who have elected to stand down Sin￿ the year end. The company holds trustees, and officers, insurance on behalf of the Directors. None of the directors have any beneficial interest in the company. 12 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust DIRECTORS, REPORT (incorporating the Strategic Report) YEAR ENDED 31 AUGUST 2024 Recruitment and Training of Governors All Governors are recruited on the basis of nominations from school contacts and from selection when a post becomes available. The Governing Body looks to ensure a mix of skills and select new governors on the basis of background, competence and specialist skills. Following a Board skills audit in 2020, a number of new appointments to the Board were made. In May 2022 a review was completed through AGBIS and actioned accordingly. Governors are provided with induction training from the Head. Bursar and staff and a wider programme oftraining events is organised bythe Association of Governing Bodies of Independent Schools (AGBIS). which governors are encouraged to (and indeed do) attend. Where possible the Govemors consider that the skills and experience of the Board should comprise the following: A Govemor with a legal background. A Govemor with a financiallaccounting background. A Govemor with education experience. A Govemor with senior managerial or business experience. A Govemor with marketing experien￿. A Govemor with experience of equal opportunities or disability needs. A balance of gender and ethnicity A Govemor residing in the catchment area of the School. A number of parent govemors. Of course. any one Governor may have one or more of these skillslattributes. Volunteers Govemors are volunteers, providing their time on a pro bono basis to support the effective governance of the school. The school also relies on a number of others to undertake volunleer roles, including members of the local Rotary club who give their time in helping our Upper Sixth prepare for university interviews. Also, members of Bosworth in Bloom give their tirne in assisting our programme of tree- planting as part of our outdoors programrne. This is greatly appreciated. Finally, from time to lime. other local people offer their time to the school in support of school activities, which underscores the place of the School in the centre of the local community. something we take pride in. Organisational Management The Governing Body provides governance and oversight of the School. It delegates its work to a number of committees. Membership of each committee is outlined below and committees meet a minimum of once per temi, with the Finance, Facilities and Personnel Committee meeting a minimum of twice each term. The Directors determine the general policy of the company. The Governors, Manual is based upon an AGBIS template and has been utilised to improve Board effectiveness and to allow the better and timely induction of new governors. Finance, Facilities and Personnel (FFP) Committee-the FFP Committee's remit is to consider budgets, both revenue and capital, cash flow infomiation and financial reports, including the financial statements. It makes recommendations regarding fee levels to the full Governing Body. It also considers financial policies and financial regulations. It is responsible for overseeing governance, internal control and risk. It does this through consideration of audit management letters and other reports relating to governance and control of the School. It reviews relevant school policies. It also develops the school's people strategy, and considers matters such as pay and benefits, pensions, staffing levels and recruitment and training. With regard to pay, remuneration policy is reviewed annually. Finally, it monitors health and safety and reviews relevant school policies. It reports to. and makes recommendations to, the Governing Body for approval. 13 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust DIRECTORS, REPORT (incorporating the Strategic Report) YEAR ENDED 31 AUGUST 2024 Education Committee the Education Committee is responsible for oversight of the academic performance of the School and educational policy, making recommendations to the Governing Body for approval. It reviews relevant school policies and has a key focus on safeguarding and pupil well-being. The Chair of the Committee works closely with the School Safeguarding Lead. Strategy Development Committee - the Strategy Development Committee makes recommendations to the Governing Body regarding the strategic direction of the school and is responsible for considering the Governing Body's strategic plan in appropriate detail. It makes recommendations to the Governing Body for approval. Away Days were held in January 2020 and 2021 to debate and determine the school's medium-term strategy. This delivered some very useful outcomes. the latter looking to the impact of Covid. It includes members of the School's Senior Leadership Team. The latter event importantly developed a Dixie 2030 Vision and the associated short and medium terms action plans to develop this vision. The Board owns the Strategy and will monitor implementation of these plans. Marketing and Communications Committee - this Committee is responsible for external and internal communications, complaints and compliments. marketing and advertising, the School website and public relations. It makes recommendations to the Goveming Body for approval. It also reviews relevant school policies. At the June 2024 Full Board meeting, the following changes arose to the name of the committees.. Full Board meetings would be renamed Full Board Strategy and Risk. to ensure that overall ownership of strategy and risk sits with The Governing Body in its entirety. The Strategy Development Committee was dissolved following successful completion of key strategic plans. The Marketing and Communications Committee would be renamed Marketing. Brand and Culture. The daily management of the company is delegated to the Headmaster and his Senior Leadership Team, as the key management personnel, overseeing the educational, pastoral and administrative functions of the School. The daily administration is undertaken within the policies and procedures approved by the Governors. which requires only significant expenditure decisions and major capital projects to be referred to them for prior approval, unless forming part of the approved annual budget. The Headmasler oversees the recruitment of all educational staff, whilst under delegaled authority,. the Bursar oversees the recruitment of the support staff. All HR activity is the responsibility of the professionally qualified HR Manager. The Headmaster and Bursar were invited to attend all governor meelings. The remuneration of key management personnel is set by the Goveming Body, under the auspices of the Remunerations Committee (a sub-committee of FFP), chaired by the Chair of Governors, with the policy objective of providing appropriate incentives to encourage enhanced perfomiance and of rewarding them fairly and responsibly for their individual contributions to the School's success. Similarly. the FFP Committee develop the pay policy for the teaching and support staff, which is agreed by the full Governing Body. The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to comparisons with other independent schools, to ensure that the School remains sensitive to the broader issues of pay and employment conditions elsewhere. This includes pension provision for both teaching and support staff. In the context of pensions. following a suc￿Ssful consultation with teaching staff. the School has withdrawn from the Teachers. Pension Scheme (TPSI to a defined contribution arrangement with effect from 31 August 2023. Many other Independent schools have already left TPS and others are either considering or in consultation to do so. We aim to recruit, subject to experience, at the lower to medium point within a band, providing scope for rewarding excellence, with staff costs being the largest single element of our charitable expenditure. Delivery of the school's charitable vision and purpose is primarily dependent upon our key management personnel. 14 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust DIRECTORS, REPORT (incorporating the Strategic Report) YEAR ENDED 31 AUGUST 2024 Group Structure and Relationships The School has developed links with a wide range of organisations to ensure the widest possible access to our facilities and schooling. Through membership of ISCIISAIISBAJAGBIS and through networking with peer groups, we ensure that we are able to attain the highest standards of quality and perfomiance. We encourage our pupils to develop an awareness of the social context of the all-round education they receive at the School and they are engaged in a number of activities to enhance their understanding. We retain the aim of developing an alumni group, to support the School in the years ahead. We also cooperate with other charities in our on-going endeavours to widen public access to the schooling we can provide. to optimise the educational use of our cultural and sporting facilities and to awaken in our pupils, in the public interest. an awareness of the social context of the all-round education they receive. Employment Policy We are an equal opportunity organisation and are committed to a working environment that is free from any fomi of discrimination on the grounds of colour. race, ethnicity. religion, sex. sexual orientation or disability. We will make reasonable adjustments to meet the needs of staff or pupils who are or become disabled. We provide full and fair consideration of applications for employment of disabled persons, continuing employment and training of persons who become disabled, training. career development and promotion of disabled persons employed by the company. Investment Policy and Objectives The company's Memorandum and Articles of Association permit funds to be invested in such manner as the Directors see fit, providing that such powers of investment are only exercised for the purpose of attaining the objects and in a manner that is legally charitable. The Govemors have taken legal advice with regard to the management of the Bernard Heathcote donation, which is used lo support the provision of bursaries to widen access to the school for families who would otherwise not be able to benefit from the high-quality all-round education provided al The Dixie Grammar School. It remains their wish to continue to add funds to the Bursary Fund and to that end. encourages donations from alumni as well as the wider community. OTHER MA TTERS AUDITORS Cooper Parry Group Limited, having expressed its willingness to continue in office. will be deemed reappointed for the next financial year in accordance with section 487{2) of the Companies Act 2006 unless the company receives notice under section 488{1) of the Companies Act 2006. DIRECTORS, RESPONSIBILITIES STATEMENT The Directors are responsible for preparing the directors, report and the financial statements in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statements for each financial year. Under that law the directors have elected lo prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements. the Directors are required to.. select suitable accounting policies and then apply them consistently- observe the methods and principles in the Charities SORP 2019 (FRS 102)., make judgments and accounting estimates that are reasonable and prudent., state whether applicable UK Accounting Standards have been followed, subjecl to any material departures disclosed and explained in the financial statements- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. 15 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust DIRECTORS, REPORT (incorporating the Strategic Report) YEAR ENDED 31 AUGUST 2024 The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable companls transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors confirm that: so far as each director is aware, there is no relevant audit information of which the charitable company's auditor is unaware., and the Directors have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit infomiation and to establish that the charitable company's auditor is aware of that infomiation. The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable companys website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Signed by.. ' MEBECO￿40)u8... Mrs J Fenton Parkes Chair Approved by the Board of Trustees on 21 March 2025. 16 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LEICESTERSHIRE INDEPENDENT EDUCATIONAL TRUST YEAR ENDED 31 AUGUST 2024 Opinion We have audited the financial statements of Leicestershire Independent Educational Trust {the 'charitable company } for the year ended 31 August 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cashflows and the 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 Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements- give a true and fair view of the stste of the charitsble company's affairs as at 31 August 2024 and of its incoming resources and application of resources. including its income and expenditure, for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been prepared in accordan￿ with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with Intemational Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those 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 statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit eviden￿ we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the Directors. use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable companls ability to continue as a going concem for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report. Other infonnation The other information comprises the information included in the Annual report, other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed. we conclude that there is a material misstatement of this other inforniation, we are required to report that fact. 17 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LEICESTERSHIRE INDEPENDENT EDUCATIONAL TRUST YEAR ENDED 31 AUGUST 2024 We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the directors, report (incorporating the strategic report) for the financial year for which the financial statements are prepared is consistent with the financial statements- and the directors, report has been prepared in accordan￿ with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors, report. We have nothing to report in respect of the following matters 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 by the charitable company, or retums 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 directors, remuneration specified by law are nol made" or we have not received all the infomiation and explanations we require for our audit. Responsibilities of directors As explained more fully in the directors, responsibilities statement set out on page 15, the directors (who are also the directors of the charitable company for the purpose of charity law) are responsible for Ihe preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors detennine is necessary to enable the preparation of financial statements that are free from material misstatement. whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the charitable company's ability to continue as a going concem, disclosing, as applicable, matters related to going concern and using the going COn￿M basis of accounting unless the directors either intend to liquidate the charitable company or to cease operations. or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance. bul is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misslatementwhen it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities. outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below- 18 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LEICESTERSHIRE INDEPENDENT EDUCATIONAL TRUST YEAR ENDED 31 AUGUST 2024 Our assessment focussed on key laws and regulations the charitable company has to comply with and areas of the financial statements we assessed as being more SUS￿ptib1e to misstatement. These key laws and regulations included but were not limited to compliance with the Companies Act 2006. Charities Act 2011, taxation legislation, data protection, anti-bribery and employment legislation. We are not responsible for preventing irregularities. including fraud. Our approach to detecting irregularities, including fraud, included, but was not limited to, the following- obtaining an understanding of the legal and regulatory framework applicable to the charitable company and how the charitable company is complwng with that framework, including agreement of financial statement disclosures to underlying documentation and other evidence- obtaining an understanding of the charitable companls control environment and how the charitable company has applied relevant control procedures, through discussions with management and by perfonning walkthrough testing over key areas. obtaining an understanding of the charitable companls risk assessment process. including the risk of fraud; reviewing meeting minutes of those charged with govemance throughout the year" and performing audit testing to address the risk of management override of controls, including testing 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 bias. Whilst considering how our audit work addressed the detection of irregularities, we also considered the likelihood of detection of fraud based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from eThor. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulalion is removed from the events and transactions reflected in the financial statements. as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due lo fraud rather than error, as fraud involves intentional concealment. forgery. collusion, omission or misrepresentalion. A further description of our responsibilities for the audit of the financial statements is located on Ihe Financial Reporting Council's website at. www.frc.org.uldauditorsresponsibilities. This description forms part of our auditor's 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 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 report. or for the opinions we have formed. Kevin Hodgetts Senior Statutory Auditor for and on behaff of Cooper Pary Gmup Limited Chartered Accounts Statutory Auditor Sky View, Argosy Road, Castle Donnington. De￿Y DE74 2SA Date.. 14 April 2025 19 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income and Expenditure Account) YEAR ENDED 31 AUGUST 2024 Total Funds 2024 Total Funds 2023 Unrestricted Funds Restricted Funds Notes Income from: Charitable activities School fees receivable Ancillary irading income Other trading activities Non-ancillary trading income Other activities Investments Bank and other interest 5.960,288 563,490 5,960,288 563.490 5,387,478 501,143 16.117 4.412 16.117 4,412 17,392 7,311 42,265 42,265 12,250 Donations and legacies Gr8nts and donations other incoming resources Insuran￿ claim 34,328 17,246 51.574 27,118 2,063 2,063 2,266 TOTAL INCOMING RESOURCES 6.622,963 17,246 6.640.209 5,954,958 Expenditure on: Raising funds Financing costs Fundraising and development Other costs Charitable Activities 59.188 585 1.074 59,188 585 1.074 63,149 830 7.532 Education and grant making 5,972,517 53,750 6,026,267 5,862,869 TOTAL EXPENDITURE 6.033,364 53,750 6.087.114 5,934,380 NET INCOME I (EXPENDITURE) before transfers 589,599 (36,504) 553.095 20,578 Exceptional item (profit on sale of land) Transfers between funds NET MOVEMENT ON FUNDS 18 164,364 (58,886) 695,077 164.364 18 58.886 22.382 717.459 20,578 Fund balances at 1 September 2023 18 1.388,500 759.696 2.148.196 2,217,618 FUND BALANCES AS AT 31 AUGUST 2024 18 2.083,577 782,078 2,865.655 2,148,196 The notes on pages 23 to 38 fomi part of these financial statements. 20 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust BALANCE SHEET AS A T31 AUGUST2024 Note 2024 2023 FIXED ASSETS Tangible assets 12 3,351.864 3.317,087 CURRENT ASSETS Stock Debtors Cash at bank and in hand 8.073 202,880 2,516,330 2,727.283 7.756 258,275 1,225.154 1.491,185 13 CREDITORS.. amounts falling due within one year 1949 301 1914 215 NET CURRENT (LIABILITIES)IASSETS TOTAL ASSETS LESS CURRENT LIABILITIES 777,982 (423,030) 4.129.846 2.894,057 CREDITORS.. amounts falling due after one year 15 (1,264.191) 1745,861) TOTAL NET ASSETS 2,865,655 2.148,196 REPRESENTED BY: RESTRICTED FUNDS 18 782.078 759,696 UNRESTRICTED FUNDS General Designated 18 1,809,189 274.388 1,351,476 37,024 2,865,655 2,148,196 The financial statements were approved and authorised for issue by the Board on 21 March 2025 and signed on its behalf by Signed by- B6COB4 Mrs JFenton Chair ar es Company registration number 01751466 The notes on pages 23 to 38 fomi part of these financial statements 21 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust STATEMENT OF CASH FLOWS AS A T31 AUGUST2024 2024 2023 Note Cash flows from operating activities: Net cash pmvided by operating activities 23 1.508,399 766.013 Cash flows from investing activities: Dividends, interest and rents from investments Purchase of property, plant and equipment Net Proceeds on sale of property, plant and equipment 42,265 (281,324) 197,464 12,250 {446,479) 2,508 13 Net cash used in investing activities {41,595) (431.721) Cash flows from financing activities: New bank loans Repayments of borrowing 175,628 290.386 Net cash (used)/generated in financing activities (175,628) (290.386) Change in cash and cash equivalents in the reporting period 1.291,176 (43,906) Cash and cash equivalenls at the beginning of the reporting period 1.225,154 1,181,248 Cash and cash equivalents at the end of the reporting period 2.516,330 1,225,154 Cash and cash equivalents consist of: Cash at bank and in hand 2.516,330 1,225.154 Analysis of changes in net debt At 1 August 2023 Cashflows Other changes At31 August 2024 Cash at bank and in hand Debt due < 1 year Debt due > 1 year 1,225,154 {321.127) {513.936) 1,291,176 175.628 2,516,330 (185,915) (473,520) {40,416) 40,416 390.091 1,466.804 1,856,895 The notes on pages 23 to 38 fomi part of these financial statements. Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2024 1. ACCOUNTING POLICIES a) General infomation and basis of preparation The financial statements have been prepared on a going concem basis under the historical cost convention. They are prepared in sterling which is the functional currency of the charitable company and rounded to the nearest £1. They comply with the requirements of the Companies Act 2006 and the provisions of the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). Leicestershire Independent Educational Trust meets the definition of a public benefit entity under FRS102. The charity is a company limited by guarantee and without share capital. incorporated in the United Kingdom. The liability of the members is limited to £1 in the unlikely event of the charity being -wound up.. The chariVs registered office is noted on page 1. The significant accounting policies applied in the preparation of these financial statements is set out below. These policies have been consistently applied to all years unless otherwise stated. b) Going Concern The Governors have undertaken a full Going Concern Assessment. In doing so. they took full account of all external finance factors. future cash flows, dependencies on key counterparties, as well as both current and future pupil numbers. Key suppliers were also considered, as well as utility costs. and Contingent Liabilities and Guarantees. They also scrutinised the Management Plans developed by the Executive and noled the strength of the on-going support for the School by its bankers and their continued willingness to support the existing borrowing. all of which is being repaid to commilments. On this basis, the Govemors are confidentthat the charitable company has adequate resources to continue in operation and, accordingly. have adopted Ihe going concern basis in preparing the financial statements. c} School Fees Receivable and Similar Income Fees receivable and other educational income are accounted for in the period in which Ihe service is provided. Fees receivable are staled after deducting allowances. scholarships and other remissions by the school, but include contributions received from restricted funds for scholarships, bursaries and other grants. Fees in Advance Scheme Contracts are those fees received in advance of education to be provided in future years under a specific contract. The fees are held as cash at bank and in hand until either taken to income to match liabilities in the tem when used, or else refunded. Estimating amounts to provide against recovery of debts is a matter of judgement. d) Ancillary and Non-Ancillary Trading Income Ancillary trading income represents amounts from activities to generate funds within the charitable objects for example, school shop sales, coaches to and from school and school trips. Non-ancillary trading income represents amounts from activities not directly related to the charitable objects, for example lettings of school facilities out of term time and rental from spare school buildings. Income from these activities is recognised in the Statement of Financial Activities when the goods are sold or seniices provided. 23 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2024 e) Voluntary sources, Grants and Donations Voluntary incoming resources are accounted for as and when entitlement arises, the amount can reliably be quantified and the economic benefit is considered probable. Voluntary income for general purposes is accounted for as unrestricted and is credited to the General Reserve. Where the donor or an appeal has imposed trust law restrictions. voluntary income is credited to the relevant restricted fund. Gifts in kind are valued at estimated open market value at the date of gift, in Ihe case of assets for retention or consumption, or at the value to the school in case of donated services or facilities. f) Expenditure Expenditure is accrued as soon as there is a contractual obligation or a liability is considered probable, discounted to present value for longer term liabilities. Expenditure is allocated to expense headings either on a direct cost basis or apportioned according to time spent. The irrecoverable element of VAT is included with the item of expense to which it relates. Support costs are those that assist the work of the charitable company but do not directly represent charitable activities and include office costs, govemance costs and administralive payroll costs. They are incurred directly in support of expenditure on the objects of the charitable company. Where support costs cannot be directly attributed to a particular heading they have been allocated on a basis consistent with the use of the resources. g} Pension Costs The charitable company parlicipated in the Teachers, Pensions scheme up to 31 Augusl 2023. which is an unfunded govemment scheme which provide benefits based on final pensionable pay. The funds of the scheme are separate from the charitable company, although the charitable company's share of the scheme cannot be identified as the scheme is a multi- employer scheme, and so the pension costs are accounted for as defined contribution schemes. The charitable company also contributes to defined contribution pension schemes for non-teaching staff and from 1 September 2023 the charitable company contributes to APTIS for teaching staff. See note 22 for further details. h) Tangible Fixed Assets and Deprecialion Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are stated at cost less depreciation. The depreciation on such assets is charged in the statement of financial activities over the expected useful economic life of the related asset on a basis consistent with the depreciation policy. Depreciation is provided at rates calculated to write off the cost over its expected useful life. as follows- Freehold land Playing fields drainage Playing fields garage store Freehold buildings permanent temporary Leasehold improvements Furniture and equipment Plant and equipment Books and teaching equipment Motor vehicles Not depreciated - 40/0 to 250/0 per annum on cost - 4Yo per annum on cost 20/0 to 40/0 per annum on cost 250/0 per annum on cost Over period of the lease 10% to 20/0 per annum on cost 10 % per annum on cost 20 % per annum on cost 25 % per annum on cost Leiceslershire Independent Educational Trust exercises judgement in selection of appropriate rates for depreciation of fixed assets, and for matters of impairment. 24 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2024 i) Financial Instruments LeI￿stershire Independent Educational Trust only has financial assets and financial liabilities of a kind that qualrfy as basic financial instruments. Financial assets trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost as detailed in note 14. Prepayments are not financial instruments. Cash at bank is classified as a basic financial instrument and is measured at face value. Financial liabilities - trade creditors. accruals and other creditors are financial instruments, and are measured at amortised cost as detailed in notes 15 and 16. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken Pla￿ and there is an obligation to deliver ServI￿S rather than cash or another financial instrument. Bank loans are a financial liability and are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method. j) Stocks Stocks comprise raw materials, consumable stores and goods held for resale.. they are valued at the lower of cost and net realisable value. k) Leasing Commitments Assets held under finan￿ leases and hire purchase contracts are capitalised in the balance sheet and are depreciated over their useful lives or the period of the lease whichever is the shorter. The interest element of the obligations is charged to the Stalement of Financial Activities over the period of the lease. Rentals applicable to operating leases where substanlially all of the benefits and risks of ownership remain with the lessor are charged to the Statement of Financial Activities on a straight line basis over the lease term. Lease incentives are accounted for over the lease temi on a straight-line basis. l) Fund Accounts Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Unrestricted funds are available at the discretion of the directors to further the school's objects or to benefit the school itself. Where the directors decide to set aside any part of Ihese funds to be used in future for some specific purpose. this is accounted for by transfer lo a designated fund. Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements. See note 18 for further details of all funds. m) Taxation Leicestershire Independent Educational Trust is a registered charity and as such is exempt from income tax and corporation tax under the provisions of Section 478 of the Corporation Tax Act 2010. There is no similar exemption for VAT. which is included in expenditure or in the cost of assets as appropriate. n) Redundancy payments Redundancy payments are recognised within the year the redundancy is announced. o) Judgments and key sources of estimation uncertainty The charity makes estimates and assumptions concerning the future. The Directors are also required to exercise judgement in the prO￿sS of applying the charitable company's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of the future events that are believed to be reasonable under the circumstances. 25 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2024 The estimates and assumptions that have a significant risk of causing material adjustment to the carying amounts ofassets and liabilities within the nextfinancial year are addressed below: In preparing these financial statements. the directors have made the following judgements: Depreciation and residual values Management have reviewed the asset lives and associated residual values of all fixed asset classes and have concluded that asset lives and residual values are appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. 26 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2024 2. CHARITABLE ACTIVITIES- SCHOOL FEES RECEIVABLE 2024 2023 The school fees income comprises: Gross fees Less: scholarships, bursaries, etc 6,545,312 (585,024) 5.931,008 (543,530) 5.960,288 5.387,478 In both the current and prior year all income in relation to school fees ￿ ceivable was unrestricted. 3. CHARITABLE ACTIVITIES- ANCILLARY TRADING INCOME 2024 2023 Catering, music and transport income Exam and registration fees. Before and after school club charges Summer play scheme Local authority funding and other income 386,233 53,097 39,507 84,653 351,967 44,157 37,398 67,621 563,490 501,143 In both the current and prior year all income in relation to ancillary trading income was unrestricted. 4. OTHER TRADING ACTIVITIES 2024 2023 Non-ancillary trading income Lettings and hire 16,117 17,392 16,117 17,392 Other activities Interest on overdue fees Other 1,557 2,855 2,372 4,939 4,412 7,311 In both the current and prior year all income in relation to other trading activities was unrestricted. 27 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2024 5. INVESTMENTS- BANK INTEREST 2024 2023 Bank interest 42.265 12,250 42.265 12.250 In both the current and prior year all income in relation to bank and other interest was unrestricted. 6. VOLUNTARY SOURCES- GRANTS AND DONATIONS Unrestricted Restricted 2024 2023 Other donations 34,328 17,246 51.574 27,118 34,328 17,246 51.574 27,118 In the prior year there was £25.240 of restricted income and £1.878 of unrestricted income. 7. ANALYSIS OF EXPENDITURE a) Total expenditure Staff costs (note 10) Depreciation (note 13) Support Costs Total 2024 Total 2023 Costs of raising funds Financing cost (note 9> Fundraising and development Other costs Total cosl of generating funds Charitable expenditure Teaching Welfare Premises School administration and governance Prize giving Total charitable expenditure 59,188 585 59,188 585 63,149 830 1,074 1,074 7,532 60,847 60,847 71,511 3.190,370 143,050 40,202 513,749 928,358 3,333,420 40,202 784,170 1,848,649 3,385,082 21,917 768,364 1,666,160 141,654 837.979 128,767 82,312 19,826 19,826 21,346 4,170,003 211.079 1,645.185 6,026,267 5,862,869 Total Expenditure 4,170,003 211.079 1,706.032 6,087,114 5,934,380 Total expenditure comprised of restricted expenditure of £53,750 (2023: £60,000} and unrestricted expenditure of £6,033,364 (2023: £5,874.380). 28 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2024 8. NET (OUTGOING)IINCOMING RESOURCES 2024 2023 Net (outgoing)lincoming resources is ststed after charging: Auditor's remuneration - audit fees Auditors, remuneration - non-audit fees Depreciation Operating leases - land and buildings Operating leases - other Exceptional item - sale of land (profrt on disposal) 14.450 2,200 211,079 100,769 12,962 164,364 12,500 2,000 304,642 87,905 10,814 9. FINANCING COSTS 2024 2023 Bank interest Lease finance costs 59.188 63,025 124 59.188 63,149 10. STAFF COSTS 2024 2023 The aggregate payToII costs for the year were: Wages and salaries Social security costs Other pension costs 3,423,746 323,479 422,778 3,192,254 318,259 559,709 4,170.003 4,070,222 Included in the total staff costs above were redundancy payments of £nil (2023: £13,554). Included in total staff costs are tennination payments that were paid in the year totalling £6,013 (2023: £3,000) None of the directors received remuneration or other benefits from the LeI￿stershire Independent Educational Trust or from any connected body. Aggregate employee benefits ' of key management personnel 819,040 678,029 Number of employees classed as key management personnel 10 Including salaries and wages. other benefits. employer pension contributions and employer National Insuran￿ contributions. 29 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2024 10. STAFF COSTS (continued) The number of higher paid employees whose annual emoluments (excluding pensions) were £60.000 or more was: 2024 No 2023 No £60,001- £70,000 £90,001- £100,000 £100,001- £110,000 £110,001- £120,000 The average number of employees during the year was: 2024 2023 Teaching Office and non-teaching 58 43 63 41 101 104 The average numberof employees during the year calculated on a full-time equivalent basis, was 82 {2023: 88). 11. DIRECTORS No Directors received any renumeration during the year or in the prior year. During the year. seven directors had belween them ten children attending the sch(M)1 (2023.. seven directors and eleven children). Directors do not receive any preferential fee rates. Scholarships totalling £2.500 were awarded to children of directors attending the school (2023.. £2,500) in accordance with Ihe school's usual crileria and processes. Governance included in support costs Leicestershire Independent Educational Trust reimburses govemors for out of pocket expenses including travel, subsistence and accommodation, where a claim is made. One trustee (2023.. No trustees) were reimbursed during the year for expenses totalling £227 (2023= £nil). 30 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2024 12. TANGIBLE FIXED ASSETS Freehold Land & Buildings Leasehold Land & Buildings Fumiture & Books & Teaching Equipment Plant & Motor Vehicles Equipment Total Cost At 31 August 2023 Additions Disposals 3,763,839 82,382 (33.000) 1,380,713 110.846 564,775 76.531 (13.605) 195,953 11.565 (11.460) 79,060 5,984,340 281,324 (58,065) At 31 August 2024 3.813.221 1.491.559 627.701 196.058 79.060 6.207,599 Depreciation At 31 August 2023 Charge for the year Disposals 1,410,081 108,981 613.764 19.786 383,357 68.731 {11.1371 186,283 8,290 (11.460) 73,768 5,291 2,667,253 211,079 (22,597) At 31 August 2024 1,519,062 633,550 440,951 183,113 79,059 2,855,735 Net book value at 31 August 2024 2,294,159 858,009 186,750 12,945 3,351,864 Net book value at 31 August 2023 2,353,758 766,949 181,418 9,670 5,292 3,317,087 All assets are used for charitable purposes. The value of Ihe plawng fields and Temple Hall land, which are not depreciated, is £470,500 {2023- £503.500). There were no assets held under finance leases at the balance sheet date. 13. DEBTORS 2024 2023 Trade debtors Other debtors Prepayments and accrued income 24,408 20,294 158,175 31,722 43,372 183,181 202,877 258,275 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2024 14. CREDITORS: amounts falling due within one year 2024 2023 Bank loans and overdrafts Net obligations under finan￿ leases Trade creditors Taxation and social security Other creditors Fees in advance scheme Fees received from parents in advance of temi Accruals Deposits from parents 185,915 321,127 255,337 81,331 182,313 292,480 797,069 129,641 25,215 271,244 79,745 228,793 43,471 674,769 276,401 18,665 1,949,301 1,914,215 National Westminster Bank PIC holds a first legal charge over assets owned by the charitable company. There are cU￿entlY four bank loans. The first bank loan is repayable by annual instalments of £30,000 (£10.000 per school term). The final balance is repayable on the last day of the loan temi of 1 October 2024. Interest is charged at 1.5 % above base rate. The loan is secured on the freehold land and buildings. The second bank loan is repayable by 120 monthly instalments of £1.558. The interest rate has been fixed. The loan is secured on the freehold land and buildings. The third bank loan is repayable by monthly instalments of £2,102 and a final instalment of an amount sufficient to repay the loan and interest in full. the first instalment is due 11 months after the loan commencement date of 1 February 2020 and the full loan repayable within 60 months. The loan is secured on the freehold land and buildings. The fourth bank loan is a CBILS loan repayable by 60 monthly instalments of £12,500 from 1 September 2021. There were capital repayments of £250,000 in August 2021 and £100,000 in February 2023. The loan is secured on the freehold land and buildings. Obligations under finance leases and hire purchase contracts were secured on the related plant and motor vehicles. 15. CREDITORS: amounts falling due after one year 2024 2023 Bank loans Deposits from parents Net obligations under finan￿ leases Fees in advan￿ scheme 473,520 166,035 513,936 150,770 624,636 81,155 1,264.191 745,861 32 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2024 16. BANK LOAN 2024 2023 The bank loans are repayable in instalments- Due after 5 years Due within 2 to 5 years Due within 1 to 2 years Due after more than one year Due within 1 year 28,532 56,083 388,905 473,520 185,915 122,093 391,843 513,936 321,127 659,435 835,063 17. FEES IN ADVANCE SCHEME Parents and others may enter into a contract to pay for fixed contributions towards pupil tuition fees for a number of years in advance. Contributions may be returned subject to specific conditions on the receipt of noti￿. Assuming pupils remain in the school, fees in advance will be applied as follows= 2024 2023 Within 2 to 5 years Within 1 to 2 years 331,828 292,808 61.417 19.738 624,636 292,480 81,155 Within 1 year 43,471 917,116 124,626 Summary of movements in liability Balance at 1 September 2023 New contracts Amounts used to pay fees 124,626 835,961 (43.471) Balance at 31 August 2024 917,116 33 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2024 18. FUNDS RESTRICTED FUNDS At At 31 August 2024 Incoming resources Outgoing resources Transfer September 2023 Bursary Fund The Bemard Heathcote Foundation Station Road Development Willis Memorial Scholarship Staff welfare fund STEM donation 753,196 400 (50.000) 58,886 762,482 6,400 6,400 13,096 100 13,096 100 3.750 17.246 3,750 53,750 759,696 58,886 782,078 RESTRICTED FUNDS PREVIOUS YEAR At At 31 August 2023 Incoming resources Outgoing resources Transfer September 2022 Bursary Fund The Bemard Heathcote Foundation Station Road Development Staff welfare fund 2,886 785,070 (2,886) 2.886 25,240 (60,000) 753,196 6,400 100 794,456 6,400 100 759,696 25,240 60,000 The Bursary Fund has been established in order to assist with financing future bursaries awarded by the school. The Bemard Heathcote Foundation has been formed as a result of the generous donation from the late Bernard Heathcote, a former Head Boy of the School. It is to be used for the provision of bursaries to support children who would benefit from a Dixie Grammar School education. Station Road development is a scheme to consider the redevelopment of the main school campus site at Station Road, Market Bosworth. Staff welfare fund is a donation to be used for the benefit of the staff. Willis Memorial Scholarship fund is a donation to provide a scholarship for sixth fomi pupils to enable them to participate in foreign travel. STEM donation fund was a donation to fund ￿rtain expenditure in these subject areas. 34 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2024 18. FUNDS (continued) UNRESTRICTED FUNDS At 1 September 2023 At 31 August 2024 Incoming resources Outgoing resources Transfer General 1,351.476 6.787,327 (6.033,364) (296,250) 1,809,189 Designated Funds Myra Pedley Fund Sports Facility Fund School Site Dev Fund 20,645 16,379 20,645 56,379 197,364 2,083,577 40,000 197,364 58,886 1,388,500 6,787,327 6,033,364 UNRESTRICTED FUNDS At 1 September 2022 At 31 August 2023 Incoming resources Outgoing resources Transfer General 1,296.138 5.929,718 (5,874,380) 1,351,476 Designated Funds Myra Pedley Fund Sports Facility Fund 20,645 16,379 1,333,162 20,645 16,379 1,388,500 5,929,718 5,874,380 yra Pedley Fund These funds were donated to the charitable company to be utilised by the directors at their absolute discretion, but with the hope that they would be used for the refurbishment of the school library. The directors therefore designated these funds for the refurbishment of the library. Sports Facility Fund The directors have allocated these funds for the Maintenan￿ of the sports facilities of the school. School Site Development Fund The directors have designated the net proceeds from the sale of the land. 35 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2024 19. ANALYSIS OF NET ASSETS BETWEEN FUNDS General Designated Restricted 2024 Tangible fixed assets Interfund loan Net current assets Long term liabilities 3.351,864 (762,482) 483,998 {1,264.191) 3,351.864 762.482 19.596 274.388 777,982 (1,264.191) 1.809.189 274.388 782.078 2,865.655 The interfund loan represents the cash used by the school to support its unrestricted activities. An element of inlerest has been transferred into the restricled fund to represent the amount that would have been paid had an external loan been taken out by the school. ANALYSIS OF NET ASSETS BETWEEN FUNDS- PRIOR YEAR General Designated Restricted 2024 Tangible fixed assets Interfund loan Net current assets Long term liabilities 3.317.087 (753,196) (466,554) (745.861) 3,317,087 753,196 6,500 37.024 {423,030) {745,861} 1,351.476 37,024 759,696 2,148,196 20. COMMITMENTS UNDER OPERATING LEASES At 31 August 2024 the charitable company has total minimum lease payments under non-cancellable operating leases as follows Land and buildings Other 2024 2023 2024 2023 Expiry date.. Within 1 year Between 2 and 5 years After 5 years 95,596 382,384 361,484 95,596 297,788 34,100 20,952 44,776 12,893 27,420 839,464 427.4PA 65,728 40,313 36 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2024 21. RECONCILIATION OF NET (EXPENDITURE)I INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 2024 2023 Net income for the reporting period 717,459 20,578 Depreciation charges Dividends, interest and rents from investments Profit on the sale of fixed assets (Increase) I decrease in stock (Increase) I decrease in debtors Increase l (decrease) in creditors Net cash provided by operating activities 211,079 {42,265) {161,996) (317) 55,396 729,043 1,508,399 304,642 {12,250) (764) 1,238 14,675 437,894 766,013 22. PENSION SCHEMES Defined Contribution Schemes The School contributes to three defined contribution schemes administered by NEST and Royal London which are for the benefit of eligible support staff and the Aviva Pension Trust for Independent Schools scheme (APTIS) which is for the benefit of eligible teachers. Following a consultation. the School withdrew from the Teachers, Pension Scheme from 31 August 2023 and all teaching staff supported the change to the APTIS pension scheme. The pension cost charged in the accounts is the amount payable by the School during the year which amounted to £422,778 (2023.. £20,947). Contributions totaling £50.636 (2023: £4.375) was accrued in respect of these schemes at the year end. Teachers, Pension Scheme (prior year) In the prior year, the School participated in the Teachers. Pension Scheme (°the TPS") for its teaching staff. The pension charge forthe prior year included contributions payable to the TPS of £538,762 and at the prior year year-end £48,073 was accrued in respect of contributions to this scheme. The TPS is an unfunded multi-employer defined benefits pension scheme govemed by The Teachers, Pensions Regulations 2010 (as amended) and The Teachers, Pension Scheme Regulations 2014 (as amended). Members contribute on a °pay as you go" basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. Valuation of the Teachers, Pension Scheme The Government Actuary. using normal actuarial principles, conduct5 a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap} Direclions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the GovernmentActuary's Departmenl on 27 October 2023 and by the Department for Education on 30 October 2023. The key elements of the valuation and subsequent consultation are: employer contribution rates set at 28.68/0 of pensionable pay (including a 0.08 /0 adminislration levy) from 1 April 2024 (the contribution rate to 31 March 2024 is 23.68°/o as set by the 31 March 2019 valuation)., total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £262,000 million and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £222,200 million. giving a notional past service deficit of £39,800 million. 37 Docusign Envelope ID.. 71 D624C4-08764AB2-A683-7C78DB2BODA5 Leicestershire Independent Educational Trust NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2024 22. PENSION SCHEMES (continued) the SCAPE rate, set by HMT, is used to determine the notional investment return. The current SCAPE rate is 1.70/0 above the rate of Consumer pri￿ Index. A copy of the valuation report and supporting documentation is on the Teachers, Pensions website. Under the definilions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The School has accounted for its contributions to the scheme as if it were a defined contribution scheme. The School has set out above the infomiation available on the scheme. The school exited the scheme on 31 August 2023. 23. RELATED PARTIES Mrs N Marsh. the spouse of Mr J A Marsh. a director. was employed by the school during the year in an administration role. Their appointment was made in open competition in line with the school's usual recruitment policies and Mr J A Marsh was not involved in the decision making process regarding the appointment. Mrs N Marsh is paid within the normal pay scale for their role and received no special treatment as a result of their relationship to a director in accordance with the Memorandum and Articles. The school also obtained the approval from the Charity Commission for the appointment. There were no other related party transactions during the year (2023: none), except for those directors. transactions included in note 11. 38