Charlty reg15tratlon number 518076 (Ellgland 4nd Wales) Company registration number 02059659 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST ANIYUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST LEGALAND ADMINISTRATIVE INFORMATION Trustees P Buss A Khgn Thc Rever¢nd Pr¢bcndary M J Kneen R J Sta¢tersfi¢ld Head Teacher AAllmaft Ch*rlty number 518076 Company nurnber 02059659 Prlnclpal addres1 Lucton S¢hool Lcominsler Hcrefoid$hir¢ HR6 9PN Auditor Ric.hard Pl￿¢ DobsoD Servi¢¢$ Limited Ground Floor 1- 7 Station Road Crawley West Sussex RHIO IHT Bankers Lloyds TSB Bank PIC Ariel Hous¢ .2138 Coventry Road Sheldon B26 3JW Solicitors Harrison Clark Ri¢kerbys Solicitors House 29 Broad Str¢¢t Hereford HR4 9AR LUCTON PILRREPOIYT SCHOOL EDUCATIONAL TRUST CONTENTS Page Trustees report Sralement of trustees responsibillties Independent auditors ryort Sla*ment of financial activitie8 Ba]ance 8he¢t io Stsiement of cash flows Not¢s to th¢ ftsjancial statements 12-28 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST TRUSTEES REPORT (KNCLUDINC DIRECTORSI REPORT) FOR THE YEAR ENDED 31 AUGUST 2024 The ttust¢¢s pr¢s¢nt tb¢ir annual report and fia8nrial statements for th¢ y¢ar ¢ndcd 31 August 2024. The financial siatements have been prepa￿a in ac¢ordance with the ac¢ounting policies set out in note I lo th¢ financial statements and comply with the school's m¢mornndum and articlès of association, th¢ Compani¢s Ac¢ 2006 and A¢¢ounting and Reportirtg by Charities: SEalemenl of R￿0mmendcd Praciice applicable to charities preparing their a¢¢ounls in accordan¢e with th¢ Financial Rew>rting Standard applicable in the UK aDd R¢publkc of Ireland (FRS 10?)" (effective l January 2019), Objectives and a¢tlYltie$ To promote and provide for advancement of e41uc4tion of children in th¢ United Kingdom and elscwhcre, such.edu¢atiott to be designed to give a sound religious and moral basis to all pupils. Beyond the leacbin8 of Itadilional acadernic subjects and som¢ vocational qua]ifications, pupils ar¢ expected to develop in the broadcst educaliotkal s¢n8e, preparing them for adult life. in att ¢v¢r-changiDg world, In addition to acadernic and co-currifjular excellence, the school seeks lo provide awareness of lechnologi¢al advancement and environmental iBSU¢$, thereby equipping pupils for all incr¢asingly global s¢tting s they transition on adulthood. The strategies ¢mployed to achici'c the charity's aims and obj¢¢tives and lo support long-tcmi goals are to,. Providc excellent teaching tbrou8h th¢ recFUittnent and r¢lention of high-quality Classroom prartitioners at all age ranges Adopt and promote high standards of behaviour amongst the pupils. ID¢ulcale a culture of ifttrgrdlion betweett local and oierseas students. Enhancc the nursery provision lo provide ILealthy numbers entering the school at the age 415. Invest in the staff and support s¢lf-improvemenl by pro¥iding inset traitting and funding external couraes. Improve the fa¢iliti¢s on offer at the school. Conserve and improve the building of the 8chool. Introduce the benefits of the 8¢h(bol lo as wide an a￿dience as possibl¢, includittg ov¢rs¢as markets and those in the UK who might not be able to afford an independent school education. Either direotly, or through certain members of staff, the sch(M)I holds membership of the asso¢iation of Gov¢rning Bodi¢s of Independent sch￿1$ (AGBIS). th¢ Independent School Council {ISC}, The lftdependent S¢hools Associ8tion (ISA),The Boarding Schools A58ociation {BSA), The Independent Schools Bursars, Association {ISBA} and through ihe Head of the Prep S¢hool, ¢he Ind¢pend¢nl Association of Prep Schools (IAPS), thus providing access to many support and CPD opportuoilie5 for staffj Collectively, th¢s¢ organi88tions provide immense wpport, from courses lo polioy guidance and a whole raft of advice and as&istance. SuGcesB is m¢asured through external academic results, plaG¢s Secured at univ￿31tieS and other bigher educatioll institytions, alongsidc other less metri¢ aspeclsy particularLy well-beiDgJ Publi¢ bgnefii is achi¢v¢d through Ihc provision of subsidised and full pla¢e awards lo pupils oihenvise unabl¢ to otl¢nd the school, alongside provision of the as$cts of the sohool for local primary schools and tbe widcr local community, primarily achi¢Y¢d through sports facilities. The Director3 of the Company present their annual report for the year ended 31st Augwst 2021, together with the financial statements for th¢ year, which have been prepared in accordance with Company Law and in complianoe with Charities SORP (FRS 102). Publ1¢ benefit The tr￿SteeS have paid du¢ regard to guidance i8sued by th¢ Charity Commission tn deciding what activities the school should uttdertske. Aehlevements and performanc¢ ' Due to th¢ p4ssiTrg of th¢ headteacher, w¢ arc unable to provide an updalcd achi¢v¢menls and perfornw)ce for the year, bui thc actLViti¢s of the School ar¢ reflected in the fill￿cIal sta¢ements below. page I LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST TRUSTEES REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR EIVDED 31 A UGUST 2024 Ffillaudal revlew The unrestricted fvnds of Ihe school are at negatsve £2,840,797 (2023: Negative of £1,911,559) with restricted funds s18ndin8 4t £11,077 (2023,. £11,077). Golng conceni The trusl¢as ar¢ satisfied that the s¢hools' operating cash flows, oxt¢rnal finance facilities and agreement with Alpha Schoo16 are 8ufYici¢nt lo meet the s¢h(M)Is day lo day woiking Capital requirerneTkts. Réseryts policy The reseryes policy 1$ to sustain funding be¢w¢¢n r¢serves held and bank debt to ensure the ongoing acttvities of the charity. Major ris The board of trnstee5 is responsibl¢ for the managem¢nt of the risks faced by the group. Detsiled ¢onsid¢rations of risk ar¢ delegated to the Senior MaTVdg¢m¢nt of the school. Rigks arc identitied, a&g¢ss¢d and cofttrols establish¢d throughout the year. The twstees have a risk management strategy which comprises; - an amiual review of the risk8 the charity may fa¢¢,' - the establishment of syst¢ms and procedures to mitigate those risks idtsntified itt the plan" and - the implementation of procedures designed to minimise any pot¢ntial impact on the charity should those risks materialise. The Senior Mana8¢m¢nt Team ensures that the school compile8 wilh all relevant legislation. This proc£s8 Is also mollitor￿ by tIEe trustees through trrmly Teports provided by th¢ Head Teacher and the Bursar, as well 48 through individual Thiste¢s taking responsibility for certain key areas. Tnsstee sub-committG¢5 also ensure that the areas within their rtmit maintain full compliancc The rn081 significant risks Identified are as follows. l. The ongoing impact of the global pandemic in bvlh edu¢olional and f￿anCIal tenns, 2. Fee affordability, particularly parents based irL the local Catchment area. 3. Thc ability to atttact pupils from ov¢rseas whilst travel restriciions continue lo bc imposed. 4 Continuing financial pressure bcing applied through central governm¢nl policy and loss of clwithbl¢ business rate reductions, Through the risk mana8¢m¢nt priycesses established for the school, and thc group> the Trusteeg arc satisfied that the nwjor risk5 Rdenlified have been ad¢quately Mitigated whcrc nccessary. Plans for Tuthre periods A8 Lucton School Sbanghai passed the thre￿fIgure pupil roll in 2020121, Trustees look abead to th¢ opening of Luclon ￿h0O1, Chongqing in September 2022* providing even strtsnger links witb China, as well a8 generating additional revenues lo support the clwity in Ihe UK. Alpha School's conn￿li0n5 iti China and Hong Kong will aim ts> bring gr¢ater b¢n¢fils from this established Joinl V¢n¢ur¢ project. Alpha Sch<￿[$ working with th¢ Head havc the followin8 plans it) place.. - Alpha hay¢ already invested £550k of ils own money into th¢ School to keep il open. This shows hu8e commitment aDd belief to the S¢hool. By resetting Luclon's cost base and natural W￿tage, well as the redundancy of admini8trative rol¢s (now covered by the Alph8 central supp)rt l¢am), 81eps have already been made in improving Lucton and developing financial stability. ItL order to improve Lu¢ton's income, it ts necessary to consider a multi-faceted approach that utilises the existing assets and strengths of th¢ school, With tha8e In mind, A]pha's aitD8 for Lucton are: l. To In¢rease pupil llumbers in classes.. 2. To improve the school's FFE (Full Time Fee Bquivalent) percentage 3. To improv¢ boarding numbers, by doublin8 these in three year period TTU51ees look thad to the opening of Lucton School, Chongqing in September 2022, providing even stronger links with Chin as well as generating additional revenu¢s lo support the charity in Ihe UK. Alph4 S¢hool's oonrLections in China and Hong Kong will aim to billng greater bene.fit5 from Ihis ¢st#bLished Joint Venture project. page 2 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST TRUSTEES REPORT (INCLUDINC DIRECTORSI REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2024 Stru¢tur¢? goY¢roan¢¢ and m#nagetDent Lucton Pierreponl School Educational Trust Limited is a compl￿Y limiled by guaTantee gov¢rn¢d by its Memorandum and Articl¢8 of A88ociation dated 11 July 1986, revised in 2013 and on November 29th 2021. It is a registered charity with the Charity Commis810n. The tnjstees, who ar¢ also th¢ dirrAtors for the Purpo￿ of compaLy law, and wtio s¢rv¢d during ihe year a￿d up to thc date of sigDature of the fuJan¢i81 ststem¢nts wcre.. P Bus$ A Khan TILe Reverey￿ Prebendary M J Knc¢n R S Sh¢rrey R J Statrersfield (Resigned 8 O¢tobFr 2023) Recruilnienl and appoinlmenl of tnuiees The appointment of the trustees is managed by the board to maintaill a strong and effgctivc blend of pmfesgional and lay skills to ensure robust and infomcd governanc¢, From N0Ve￿ber 29th 2021, when the s¢hool b￿ame part of lh¢ Alpha Schools Group* Th￿te¢ numbers were reduced from rtitie to five, with three Alpha nominated Governors joining two r¢tained existing Lucton School Governors to forn the new board. The ChaiM￿ll or a nominated Substi￿te will b¢ the trustees, rep￿Se￿￿tIl,es wilh AGBIS, Ihc Asgocialion of Governing Bodies of Independent Srh(N)Is, and will be r¢8ponsibl¢ for keepAng up to date with best practi¢# and cascading the knowledge do*n lo fellow trnstees. Oryani$alionaI￿1nIcthfe The full board m¢¢ts terndy and there are tlirce subkncommittees, one covering Education. on¢ ¥ov¢rs Well Being & HR and th¢ third 18 The Resources Con]mittee, whi¢h includes all fJnancLal matters. The trustees appoint a H¢adt¢ach¢r and Bursar to manage the day-to-day operations of th¢ s¢hwl. To facilitato eff¢¢tive operations, tbe Headteacher has delegated authority, withio t¢nlls of d¢l¢gation approved by th¢ trustes, for operational matters including finance, cmployment and acad¢mi -perfornian¢trFelated-aetivity-Trutees of th¢ school are also Dire¢tors of thc subsidiary entiti¢s. Auditor In accordan¢¢ with the compallvs articles, & resolution proposinE that Richard Place Dobson S¢rvi¢¢8 Lifflited be reappointed as Auditor of th¢ Gompatty will be pul at a General Meetitig, Disclosure of Information lo 4uditor Each of the tnjstees has ¢onfirmed that there is no infomiatiott of wbi¢h they are aware which i8 ￿1¢Yant to the audiL but of wbich the auditor is unaware. They hav¢ fvrthcr confmed tbal th¢y hav¢ Mken appropriate step8 to id¢ntify sucb relevant inforn)4tion and to ¢5tablish tbat the audilor is aware of such Infom￿lI9n, Small Compani￿, ¢xenwtions have been applied when preparing this Director's Report. The trust¢¢s r¢port was approved by the Board of Trust¢¢s. PBuss Thislee Date: .,...... page 3 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST STATEMENT OF TRUSTEES RESPONSIBILrriES FOR THE YEAR ENDED 31 A UGUST 2024 The Irusl¢¢s, who ar¢ also thc directors of Lu¢¢on Picttcpont School Education81 Thist for thc putpose of rompany law, arc responsible for preparing the Trust¢￿ Report and ihe financial stat¢ments in accord4n¢o with applicabl¢ law and Uniled Kingdom Accountin¥ Standards (United Kingdom G¢nerally Accq)ted Aectsunting Piactice). Company law requires the trustecs to prepar¢ finaftcial statements for ea¢h financial year which gil'¢ a true and fair ￿le￿. of tlLe slate of affairs of the sc.hool and of the incoming resources and applicatioft of resour¢¢s, Including th¢ income and expenditure, of the charitabl¢ ¢ompany for that year. In pr¢p&ring these financial statetnents, the trust¢¢s are required to., sclect suitable a¢counling polici¢s and then apply th¢m ¢onsi81cntly,' obs¢ry¢ the methods and principles in the Charitics SORP,. mak¢ judg¢￿e[lIS and ¢stimale8 that are reasonable and prud¢nt' and prepar¢ tht flnancial statements on the goin8 Concern basi5 unless it is inappropriate lo prcsume that th¢ school will continL)e in op¢rdtion. The trust¢¢s &re responsible for ke¢ping adequate a¢¢ounting records that disclose with reasonable accura¢y at any time the financial posiiion of the school and ¢nable them to en8ur¢ thtlt the financial statements comply with the Companies Act 2006. They are also responsibl¢ for safeguarding the assets of the sch(trol and hence for taking reasonable steps for the prevention and detection of ud and other irreguLarities. paEC 4 LUCTON PIERRKPONT SCHOOL EDUCATIONAL TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST Di$cl4imer of Oplnlon W¢ w¢r¢ ¢nEaged to audit th¢ financial statements of Lucton Pictrepont Education Thst (the Charitabl¢ Company), which comprise the st4t¢ment of financial aelivÈti¢s, the balance she¢t and the Cash floiv stalem¢nls as at 31 August 2024, gnd notes to th¢ financial 8tstements, including a summary of significant accounting poli¢i¢s. W¢ do not cxpress an opinion on the accompanying. financia] s¢atcm¢nls of th¢ Charitabl¢ Company. Becaus¢ of th¢ significan¢e of the matt¢rs described in tbe Basis for DI￿laim¢r of Opinion section of our rcporn, we hav¢ noi be¢n able to obtsin suffioient appropriat¢ audi¢ evidcnce to provide & basis for an audit opinion on these financial sl&tetn¢nts Basbs for Disclalmer of Opinion Due to tim¢ r¢strai￿S Impos¢4 in meeting the requirernent to gel accounts ready for filing bas m¢anl we have been unable lo satisfy ours¢lv¢s as to the compleltness, existenc¢ and valuation of key balances in the rtttancial statemellts. As a result of ihes¢ ma£ter4 we wcrc unable to dclern)in¢ whether any adjustments might have been found llecessary ill respect of re¢ordcd or unrecord¢d balances, atLd the elements making up thc statem¢nl of ftnaL¢ial activities, and statemcnt of cash flows. 'Material UDcertainty relgted to going eoo¢ern We draw att¢ntion to Dolt 1.2 in ihe fLnan¢ial statements, wbi¢h indic&t¢s that al 31 August 2024 the Charitsble Company bad net liabAlities of £2,829,720 and made a deficit for the year then ended of £929,238. As stated in note l. these events or ondi¢ions, indioate that a material uncertainty exists that rnay casi significant doubt on the company's ability to continue as a going concern. Our opxnion is not modificd in r¢spe¢t of this mattcr In auditing the financial Stal¢Men￿ w'c have concluded that th¢ directorfj, u$¢ of the going concem basis of accounting in the pr¢paTalion of the fllwicial statements is approprial¢. Our evaluation of th¢ directors, assessment of the entity's ability lo contillu¢ lo adopt tlLe going con¢¢rn ba8is of accouniing included cotLfitming Ihat banking facilities reTh￿illed in place for at least 12 months from the date of signing th¢ fmoncial 8tat¢men¢s and receiving confirniations from a fODnect¢d paty that they would conttnue to SUPPOrt the charitable company itt paytng all of it8 debts a8 they fall due. Our r¢spoDsibilitle8 and the rcsponsftbilitir6 of th¢ dir¢ctors with r¢specl to going concern are. d¢s¢ribcd in th¢ r¢l¢vant sections ofthis report. Other inforn)atloll The other inforniation c(>rnprises the inlormalion included in the annual report oth¢r than Ihe financial statement$ arjd our audilorfs report thereon. The tn￿treS are responsible for the oiher inforn]ation contained wtthin the annual report. Our opinion on the fLnan¢ial slalements does not cover the other infornution and we do not express any form of assurance conclllsion thereon. Our respon8ibilAty is to read the oth¢r infomialion and, in doing so, consider wh¢iher the other information is materially incorLSiStellt with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears ¢0 b¢ materially misslaled. If we identify such n￿terial inconsislen¢ies or apparent material misstat¢m¢nts, we ar¢ required to del¢nnin¢ whether this gives rise to a mal¢rial missl8tement in the financial statements themselves, If, based on the work we have performed, we conclud¢ that there 1$ o matsrial misstatement of this oth¢r inforniation, we are required to report that fact. W¢ have nothin8 to report in this regard. Matters on which Ive ar¢ required to report by exceptlon We have nothing to report ift respect of the following rnatt¢rs in relation to which the Charities (Accounts and Reports} Regulations 2008 requires us to report lo you if, in our opinion.. the information given in th¢ f￿ancial statemeuts is inconslslent in any Ma¢￿Ial re8pe¢¢ wiib tbe trnsl¢es report,. or sufficient a￿oUntIng re¢ords have not been kep¢. or the f￿anCial statements ar¢ not in agreement with Ibe aG¢ounting records; or we have not re¢¢iv¢d all th¢ information and explanations we require for our audLI. page 5 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST INDEPENDENT AUDITOR'S REPORT (COIYTINUED) TO THE TRUSTEES OF LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST R¢spollslblil¢les of trustees As explain¢d mor¢ fully in th¢ 8latement of tThsle¢s responsibilities, the tNstees: who are also the dir¢clors of the school for the purpose of company law, responsiblc for the preparation of the financial 8t8t¢m¢nls and for being satisfi¢d that they 8ive a true and fair view, and for such inlemal control as the tn￿tee8 d¢t¢rniine is ne¢cssary to ¢nabl¢ the preparation of financi sL*memts that are fre¢ from tnaterial Misst￿emenL wheiher duc to frdud or ¢rror. In preparing the financial statements, the tru$t¢¢s are responsible for assessing th¢ school's ability to continue as a going concern, disclosing, a$ applicable. matter8 T¢laÈd lo going concern and using the going con¢¢rn basis of accow)ting unless the trustees either int¢nd to liquidafr the charitable company or lo cease operations, 01 bav¢ no realistic a]lern&tiv¢ but lo do 80. Auditor's ruponsibllldes for the audlt ofthe fingnci41 $t*tements We hav¢ b¢¢n appointed as auditor und¢r section 144 of the Chariti¢s Act 2011 and r¢port in accord4n¢¢ with the Aot. and relevant rcgulations made or having eff¢Gt Ihereunder. Our responsibilily is lo condu¢t ￿ audit of the Chatitable Company's financial statsm¢nts in ac￿rdanCe iyith Internation Standards on Auditing and to iS8uc an auditor's r¢pO￿ Howcver, becaus¢ of the matters descIibed in th¢ Basis for Disclaimer of Opinlon section of our report, we were not able to obtain 8uffJcient appropTiale audit evidence to provide a basis for an audit opinion on these financial statements. We are indep¢ndenl of Ibe Charitable Company in a¢¢ordanc£ with the ethical Tequiremenls that are Televanl lo our audil of the fitt￿¢141 statements .in ihe United Kingdom, and w¢ have fulfilled our other ethical responsibilities itt accordance witEL Ih¢s¢ requirements. Th¢ ¢xterLt to which our procedures are ¢apable of det¢rting I￿gUlaTI¢l¢S, including fraud, is d¢tailed below. We hav¢ mad¢ rnquiries of management, and directors, rcgarding the procedur¢s relating lo idcntifying, ¢valuating and omplying with laws and regulation$ and whether they were awarc of any inst4nc¢s of non-eompliance. 2. detecting and responding to the risks of fraud and whether they have knowledge of any actual, SUSp￿ted or alleged th¢ inl¢rnal controls established to mitigate risks r¢lal¢d tts fraud or non40mpliance wi1h Ikws and regulations,. Discussion among the engagement team regarding how aT¢d where frdud might occur in the financial statemenL8 and any potenti41 indicators of fraud. As part ofthis digcussion, we identified potetLtial significant risks for frnud in the followin8 a￿a8. , Manag¢n￿nI override of th¢ ¢ontrols ID place The audit engagetD¢nt team identified the ri8k of management override of controls as the area where the financial slatetnents were most susceptible to material missiatem¢nt due lo fraud. Audit procedur¢s planned included, but were not limited to testing manual journal entries and other adjuBtments and ev&luating Ibe business rational¢ in relation to any 8ignifican¢ unusual trattsactions and transactions entered into outsid¢ of the nornial course of business, 2. Rev¢nu¢ recognition Audit procedure5 planned included, but were not limited to performing wallt through tests to identify the control procedures in place and once an und¢TStanding of the pupil fee income reco8nition pro¢ess was obtained, substsntiv¢ procedures to be carri¢d out, pag¢ 6 ## **LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST** ## 3, Going concern accounts for future periods up to the date of signing of the accounts to review against budgets and ideniify any further funding issues; review correspondence with the bank regarding their willingness to continue providing banking facilities; Obtaining a letter of support, up to date management accounts and year end accounts from Alpha Schools to confirm their willingness and ## 4. Laws and regulations The audit engagement team identified laws and regulations as a significant risk. In ·order to test that the financial statements were not materially mis·stated through fraud or error arising from a breach of lawS and regulations, the following testing procedures were planned; A review of any recent results issued by ISI (Independent Sc-hools Inspectoiate); review of correspondence from legal advisers, to look for evidence of breaches; review of board minutes to identify any breaches in laws and regulations. ## 5. Valuation of property The audit engagement team also identified the valuation of property as a significant risk. In order to test that the valuation of A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org,uk/ auditorsresponsibilities. This description fonns part of our auditor's report. ## Use of our report This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent pem1itted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have fanned. ## DYLAN Mea So Gel ## Richard Place Dobson Services Limited Chartered Accountants 03/11/2025 Date Ground Floor I - 7 Station Road Crawley West Sussex RHIOIHT Richard Place Dobson Services Limited is eligible for appointment as auditor of the school by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006, **page** 7 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR EIVDED 31 AUGUST 2024 Current rin¥nclg1 year Unrestrlcted fullds 2024 R¢stricted funds 2024 Total Total 2024 2023 F4ote$ Income from: Donations and legacies Charita t'vities 36 3,001,363 269,902 3,001,363 269,902 9.635,546 251,220 Other educational incomc Other tradin8 activities 30,889 30,889 14,472 Total income 3,302,154 3,302,154 2,901,274 ipenditur¢ on: Raising funds Charitable activities 11,500 4,219,892 11,500 4,219,892 17,198 3,950,097 Total expertditure 4,231,392 4.231,392 3,967,295 Net expenditure and movement in fuDds {929238} (929,238) (1,066,021} Recon¢illatlon of futhds: Fund balan¢¢s at I September 2023 (1,911,559) 11,077 (1,900,482) (834,461) Fund balgnees at 31 AuKUSt 2024 (2,840,797) 11.077 (2,829,720) (1,900,482) The stalernent of fin2n¢ial a¢tivities includes all gains and losses recognised in the year. All income and expendittjre derii'¢ from CODtiTrutThg activities. pag¢ 8 LUCTON PIERREPONT SCHOOL EDUCATIOIYAL TRUST STATEMEIYT OF FJNANCIALACTivrfiES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUIYT FOR THE YEAR ENDED 31 A UGUST2024 Prior fin*n¢ial year UDreslricted nds 2023 Re$tTiet¢d fuuds 2023 Total 2023 Notes Income from: Donations and lega¢ie$ Charitable activities F¢¢s Oih¢r educational in¢otne 36 36 2,635,546 251,220 2.635.546 251,220 other trading activities 14,472 14,472 Totsl Ineom¢ 2,901,274 2,901,274 Expenditure on: Raising funds Charitable activiti 17,198 3.950,097 17,198 3,950,097 Total expenditure 3,967,295 3,967,295 Net Income and movement in funds (1,066,021) {1,066,021) Re¢onclllatloD offunds: Fund balan¢es al I September 2022 (845,538) 11,077 (834.461) Fund balances at 31 Augu'st 2023 (1,911,559) 11,077 (1,900,482) page 9 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST BALALYCE SHEET ASAT 31 AUGUST2024 2024 2023 F4otes Fii¢d a8$ets Tangible assets Inv¢stmenl$ 13 14 3,179,758 166,743 3,239,039 166,743 3,346,501 3,405,782 Cumnt assets Dcbiors Casll at bank and in hand Is 904,432 344,526 316,157 1,248,958 316,157 Creditor8: amounts f4lling due wit1￿1 oue year 16 (6,489,846) (4,628,150) Net ¢urrent liabilitles (5,240,888) (4,311,993) Total assets current li#bilities (1,894,387) {906,211) Creditors: 41111bUllts fallln2 due after more than oue year 17 (935,333} (994,?71) Net liabilities (2,829,720} (1,900,482) The fullds of the 5cknool Kestriot¢d incone fimds Unrestrlcted fllnds 20 21 11,077 (2,840.797} 11.077 (1,911,559} (2,829,720) (I,Y)0,482) The company is entitled to the exemption from the audit requirement contained in s¢¢tion 477 of the Companies Act 2006, for the year ended 31 August 2024. The directors acknowledge their re8ponsibilitie$ for wmplying with the ￿qUIr¢M¢nts of the Companies A¢t 21)06 wilh re8P¢Ct to accounting re¢ords and th¢ preparation of f￿ancial statements. The memb¢r8 have not requir•A th¢ CA)mpany to obtain an audit of ils financial statements und¢r tIL¢ requirements of the Cotnpani¢s Act 2006, for the year in qu¢5tion in accordance with section 476. These financial 8tatemenl8 have been prepared in accordance with the provisions applicable io companies subject to the small companies r¢8im¢. Thc ftnancial statsments w¢r¢ approved by th¢ trust¢¢s on .....,.. ..... uss Trustee Company registratlon number 02059659 {BngLalld and Wales} pag¢ 10 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST2024 2024 2023 L¥otes Cash flow& from op¢r4ting actlvltles C4sh generated from operattons 26 875.028 105,089 Investing ac￿￿tReS Purchase of tangible fixed assels Pror¢ed8 from dispos81 of tangible fixed assels (6,119) {3,145) 576 Net eash used Ill IDvesting activities (6,119) {2,569} Ftnancing activities R¢payment of bank loans Payment of financ¢ lea8es obligations (57,020) (41,144) (210,037) Net C48h u8¢d in financlllg actlvities {57,020) (251,181) Net incregsel(decrease) in ¢*sh and cash equiv4leTrts 811,889 (148,661) Cash and cash equivalents at beginning of year (467,363) (318,702) Cw$h And cash equival¢nts at end of year 344,526 {467,3631 Relatlng tA)'. Cash at bank and in hand Bank overdraft8 included in creditors payable within one year 344.526 (467,363) pag¢ 11 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 A UGUST 2024 A¢¢ounthb£ policles Charity informatlon Luclon PÉerr¢pont School Educational Trust is a private company limit¢d by guarantee iLcoryordled in England and Wales. Thc rcgistered oifi¢c is Lucton S"¢hool, Lucton, L￿*minst¢r, H¢￿fordshir¢, HR6 9PN. 1.1 Basis of P￿ParatIOn Tbe f￿ancIal statements hav¢ been prepared in a¢cordan¢¢ witb the school's Memorandum and Arti¢les of Association, the Compani¢s Act 21M)6, FRS 102 "The Financial Reporting Stat)dard applicable in the UK and Republic of Ireland" ("FRS 102,) and tbe Charities SORP Aecounting and Reporting by Charities.. Statement of Recommended Prnctice applicable lo ¢haTities preparing their a¢¢ounts iti ac£ord4nr¢ with the Financial Reporting Standard applicable in Ihc UK and Republic of Ir¢land (FRS 102) (eff¢Ftiv¢ l January 2019). Thc school is a Public Benefit Entity 45 der￿ed by FRS 102. Th¢ financial statements are pr¢par¢d in slerlltlg, which is the fimcliottal currency of th¢ 8¢hool. mone.tary aroounts in these financial ststements are rounded to the nearest £. The f￿an¢la1 statements have been prepared under the historical wst ¢onvention, modified to include the revaluatiott of fr¢ebold properties at fair value. The prin¢ipal hCCOUDting policies adopted are s¢t out below, Basis of ¢onsolidatiDn These 8o¢ounts are for Lucton Pierrepont School Edu¢ational Thist and do not include ihe results of its subsidiaries on the b&8ts that the subsidiaries have nol traded during the year and are not rnaterial to the group. 1.2 Going concern TheK financial statements ar¢ prepared on the going concern basis. The tmgteÈs have a reasonabl¢ ¢xp￿¢￿tion that Ihe school will ¢onlinue ift op¢r4lional existence for the foreseeable fijtllre. howev¢r, the trustees ar¢ aware of certain material un¢¢rtainties which may caus¢ doubt on the charitys ability to ¢ontinue a5 a going concern. With fimding requtrements reachin8 levels beyond that which the bank would support, Trusl¢es acted proactively lo safeguard the long-t¢rn) future of the school, commencing negotiations with aliernatii'e furnders. Bank support been ¢xtended to allow due proce88, an approach rewarded by Int￿st and 200/0 on reducing balance 25Q/o reducing balancc Freehold land is nob depreciated. The gain or loss arising on the disposal of an a8sel is detBmJin¢d as the diff¢r¢n¢e between the sale pr￿cedS and the carrying valu¢ of the asscL and 18 reco8nis¢d in Ihe Statetnent of financial acliN'iti¢s, 1.7 Fixed asset Inve8¢mellts Inv¢stmenls in subsidiaries ar¢ all held at cost le&8 impaimieTht. A subsidiary is an entity Controlled by the s¢hool. Cotitroj 1$ the power to govern the financial and operailng policies of the entity w as to obtsin benefits from its aclivilies, 1,8 ImpaSrnieDt of fixed asstts Al each reporting end date, the s¢hool reviews the caryying amounts of its tangible &g$ets to delerniin¢ whether th¢r¢ is any indication that those assets have suffered an impairnient loss. If any such indication exists, the re¢oveTAbl¢ amount of the asset is estimated in order to detem)ine the extent of the impaimienl loss (if any). If the recoverdble amount of an asset is estimated to be less than its carrying amouftl, the. carrying amount of Ihe asset is rethi¢ed to ils recov¢r4ble amounL An irnpairmertt loss is recognised immedial¢ly in the inwmelexpendiDJre fot the year, unl¢ss the relevant asset 18 carried at ta revalued amoun¢ in which case the impaiment loss is treated as a revaluation decrease. pag¢ 13 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 A UGUST 2024 Accounting policies (Continued) IJ C49h and Cash equlvalents Cash and cash equivalents include ¢a8h in hand, deposits held at call with banks, other $hort-lerni liquid investments with original maturiti¢$ of tbree moDth8 or less, and bank ov¢rdrafts. Bank overdrafts ar¢ shown withm bo￿0￿1ngS in curr¢nt liabilities, 1.10 FiDxnelal Instrnmellts Th¢ school has el¢ct¢d to apply the PTovisions of Section I I 'Basic Financial Instruments, and S¢¢tion 12 '0iher Financtal In8tnun¢nts Jssu¢s' of FRS 102 to all of its financial instruments. Financial instruments are rec4)gmis¢d in the school's balance 8heet when the school b￿ome8 party to the contra¢tual provisions of th¢ instnunent. Financial assets and liabilities ar¢ offset, with the net amowits pr¢sent¢d in the financial statements, when ther¢ is & legally enforceable right to s¢t off the recogntsed amounts and there LS an intention to settle on a nel basi8 or to r¢alis¢ the asset and ￿ttle the Iivlbility sirnultaneously. Baslcfinaneial la￿tt Basic finatscial 8SS¢t$, which itEclud¢ d¢btor8 and cash and bank balances, are initially mea8ur¢xl at transacrion price including Iran8action ¢os18 aad are sublequently carried at amortis¢d ¢08t using the effc¢tive interest method unle88 the atr4ngemenl constitutes a financing trdnsaction, where the transa¢tion is rneasured at the present value of the ￿tUre receipts dis¢out)led at a market rate of interest. Financial assets ¢lassifLed as receivable within one ycar are Dot atnortised. BowieJ7n4n¢i41 Ilabill￿8 Basic financial liabilities, including ¢￿ditOrS and bank loans are initially recognised at transaction pri¢¢ unle8s th¢ arrangement Consti￿t¢S a financillg transactio￿ where thc debt instnunenl is measured at the pr¢8ent value of the ￿tUre payment8 di8COUllted at a m￿cl rate of interest. Financial liabilities cla6sifLed as payable within one year are not an)ortised. Debt insttum¢nts are subsequ¢ntly ¢aTTied at amortised cos( using the effective illt¢rest rate method. Trade creditors arc obligations lo pay for 8oods or sotvices that have iKen acquired in th¢ ordinary course of op¢ratiOn8 from suppli¢rs. Amoutsts payabl¢ arc classifJ¢d a5 current liabilitics if paymenLis duc within on¢ y¢ar or less. If oot, they ate presented as tjon-current liabilities. Tradc creditors recognised initially at transaction pri¢¢ and subscqu¢ntly rne￿Sured at amortised cost using the effectiv¢ interest method. Derecogn1140n offinancial liabilihes FiLallcial liabilit1¢8 are dere¢ognis¢d wheD the school's Cont￿tual obligations expire or are dis¢harg¢d or cancelled. 1.11 Taxatlon The s¢hool is exempt from corporation tax on its charitable acliviti¢s. 1.12 Employee benefiti The cost of 8tLy. unused holiday enlitJ¢ment is recognised in IhE p&iod in which th¢ ¢nwloyee'8 seryices ar¢ received. T¢rn)ina*ion benefits are recogni8e41 ittm¢diat¢ly as an expense when Ihe school is demonstrably Committed to t¢rninate the employment of an etnploye¢ or lo provide t¢m]ination benefits. page 14 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31AUGUST2024 Accounting poli¢ie5 (Contlnutd) 1.13 Retlrernent ben¢(Its Te*¢hing $taff The Scbool contrÈbules lo the T¢ach¢rs' Pension Scheme al the advis¢d rafr8 and also makes contribbjtions to a 'money purchase, scheme for support 8taff, As it 16 not possible to separately identify the &gsets and liabiliti¢s of the Teachers, Pension AE¢n¢y Scheme, it is accountcd for as if it were & defined ¢onlribution 8cherne under FRS 102. The Schools, contributions to the schemes w¢ ¢harg¢d in he fLThancial 8t8lernent$ as they ￿¢rUe. For fiwiber inforniation s¢e note 24. Support staff The School operates a pension scheme for its support staff, a defined Contributions 8¢h¢me. Contributions payAbl¢ to the School's d¢fin¢d ¢ontributions scherne cbar8¢d to th¢ Statement of FinanciAI A¢tiviU¢s, Criti¢81 ac¢ounting estimates aod Judgements In th¥ application of th¢ 8chool's accounting policies, the Iru8t¢es are required to make judgements, e8timate8 and assumptions about the ca￿Y2ng amount of assets and liabilities that are. not readily app?retst from other sourcw. The estimates and a880¢iated assumptions are based on historical experience and oth¢r factots that are considered to b¢ relevant. A¢tual re8uJts may differ from thes¢ ¢s¢imat¢s. The eslimales and underlying assumptions are reviewed on an ongoing basis. Revisions lo accounting eslim4t¢s are recognised in the period in which the. egtimat¢ is revi8ed where the reviskon &ffe¢ts only that period, or in th¢ period of the revision and future periods wher¢ the revislon affects both curtenl and future periods. Critic41 judgements Useful economic liv¢5 of tsngible 4$8ets The aEllLual depreciation Charges for the t&ngiblc asscls arc sensitive to changes in th¢ cstimated useful economic lives and residual values of thé assets. The u$efiJl economic lives and residual values ar¢ reassessed annually. They ar¢ amended when necessary to reflect ¢urr¢nt estitnates, based on technologigal advancement, economic utilisatioft, and the phy8i¢a] condition of the assets. Impairment of debtors The scbool mak¢s an ¢3timate of the recoverabl¢ value of fee debtors, trhde and other debtors. When asscssing the impairment of debtors, management con8LdeTS factor8 includittg the current credit rating of the debtor, the a8¢in8 profile of the debtors and historical experience. Impairmellt of assets ind the 48ses$meD¢ of property valuatlon$ The school has a market valuation performed cycry three years and ensure$ that th¢ ￿nYing value of their assets ren￿lDS lower than thc fair value of the Lgsels on th¢ op¢n market, and therefore that their is no impaimient. B¢tw¢en the valuations, management is required to r¢vi¢w the assets for impaimLent, and ther¢fore this remains an area of judgemenL AssessmeDt of penylon Ilablllty The school 13 provkded with a liability schedule by the pensions provid¢r* payablc over th¢ n¢x¢ 7 years. Thc amount is material and therefore mus¢ be discount¢d 10 n¢1 present value using an appropriate discount rate. Management h&ve d¢cid¢d that the most appropriat¢ discouftt rate is 2. Iyo, the same rate as their current borrowing5. pag¢ IS LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Jn¢om¢ from donatlons and legAcles Unrestri¢ted funds 2024 UDre5tricted funds 2023 DonatioTrs and gift& 36 Incgme from Charltable activities Unrestricted funds 2024 Unre8trieted fund$ 2(123 Fees Gross fees Lcss.. burwie8 and other allowances 3,143,783 {142,420) 3,334,862 {699,316) Other tducatloDal Ineomt Music, dance & dram4 school outings and club8 ExatnillatiODS and ¢xts& lessons Horse riding and stable fees Trdnsport Unifornts and other kncome 97,324 20,569 26,345 88,464 37,200 147.429 7.107 1,853 52,303 42.528 3,271,265 2,886,766 Income from otber tradlng acdvlties Ullr¢$tri¢ted Unrestricted fullds funds 2024 2023 Rcfttal income 30,889 14,472 Expendithre on r9ising funds Unr¢stri¢ted UDrestrict¢d (UDd5 fund$ 2024 2023 Fundraislng 4Thd publicity C08t of rdi8itig funds 11,500 17,198 page 16 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS (COYTIIYUED) FOR THE YEAR ENDED 31 A UGUST 2024 Expendlture on chirltabl¢ Acllvltles Te#¢hiDg 2024 Welfare 2024 Premlses 2024 Tolal 2024 Direct costs Staff costs Depreciation and impainnent Other costs 2,393,67.3 90,634 45,780 563,090 2,484,307 65,400 1,124,220 19,620 377,531 183,599 2,577,272 397,151 699,504 3,673,927 Share of Support *nd governAllce costs (See note 8) Support Governance 319,361 63,354 49,334 9,787 86,892 17.237 455,587 90,378 2,959,9S7 456,272 803,633 4,219,892 AnalysRs by fllnd Unr¢stri¢t¢d funds 2,959,987 456,272 803,633 4,219,892 T"eachiDg 2023 W¢lf4re 2023 Pren)ises 2023 Thtal 2023 Direet eostj Staff costs Depreciation and impairnient Other costs 2,241,588 84,875 61.860 508,975 2,326,463 81,480 965,805 19,620 338,441 118,.389 2,359,977 358,061 655,710 3,373,748 Grant fijnding of activities (see note } Share of 8UPPOrt and governance costs {set note 8) Support Gov¢man¢ 341,374 61,789 51,794 9,375 94.849 17,168 488,017 88,332 2.763,140 419,230 767,727 3,950,097 AD¥lvsis by fund Unrestricted fijnds 2,763,140 419,230 767,727 3,950,097 pag8 17 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTIIYUED) FOR THE YEAR ENDED 31 AUGUST2024 Support cost5 allocated to actlvfi¢les 2024 2023 Staff costs Other support ¢vsts Governance cost8 161,902 293,685 90,378 151,614 336,403 88,332 545,965 576,349 Analysed between: Teaching Welfare Premise8 382,715 59,121 104,129 403,163 61,169 112,017 545,965 576,349 2024 2023 Govern4D¢e ¢os¢$ ¢omprtse: Audit fees IKgal and professionaI Intere8t payable 6,000 67,994 16.384 21,346 66,986 90,378 88,332 GovernanG¢ costs includes payments to th¢ auditor of £6,(X>O (2023.. £21,346) for the ptepardlion and audit of the school's annual accounts. Net movement iti funds 2024 2023 Th¢ n¢t nK)v¢m¢nt in fund5 is stat¢d after chargingl(crediting)', Fees pay8ble for th¢ audit of the ¢harity'8 fjnancial statements D¢pr¢¢iation of owned iangible fued assets 6,000 65,4 21,346 81,480 10 Trustees Non¢ of the trnstees (or any perwns ¢onnecled with them) received any remuneration or b¢n¢fits from the school during the year. Durfftn8 the year, no ex￿n8¢S were reimbwsed or paid al￿tlY to any of the tn￿lee8 {2023: £nil), page 18 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENfs (CONTIIYUED) FOR THE YEAR ENDED 31 AUGUST2024 li Employe¢s The average monthly nurnber of employees during th¢ year w￿. 2024 2023 l%'umber umber Teachin Support and ancillary 70 31 70 31 Total ioi 101 EmplowmeBt costs 2024 2023 Wagcs and salaries Social secwyty costs Other pension cosls 2,285,932 198,178 162.099 2,119,567 193,831 164,679 2,646,209 2,478,077 Th¢ llunther of ¢n)ploy¢cs whosc annual remuneratioll was more thon £60:(M)O is as follows- 2024 b¢r 2023 Number £80,000 - £90,0 £70,001- £80,OIY) Remunergtlott of key Dun8gemen* personnel Th¢ remuneration of k¢y management personnel was as follows.. 2024 2023 Aggr¢8ate compensation 136,529 136,529 K¢y tTr￿¢ment peThot)n¢l comprised the Headteacher and the Bursar. 12 T419tion Th¢ Qharity is exempt from taxation on its acllviiies because all its income is applied for charitable purposes. page 19 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 A UGUST 2024 13 Tanglbl¢ Ilxed #$sets Freetsoid land and bulldiAgs Pl*Dt and equtpment Fffiitwres Mthtor v¢hicle5 fittiDgs Cost At I September 2023 Additions 2,842,570 416,210 1,090,772 6,119 388,869 4,738,421 6,119 At 31 August 2024 2,842,570 416,210 4,096,891 388,869 4,744,540 Depreciatlon in)pairment At I S¢pt¢mb¢r 2023 Deprecialion ¢hvdTged in the year 110,843 29,460 76.520 958,506 16,320 353.513 19,620 1,499,382 65,400 At 31 August 2024 140,303 76.520 974,826 373,133 1,564,782 CaTrying amount At 31 August 2024 2,702,267 339.690 122,065 15,736 3,179,758 At 31 August 2023 2,731,727 339,690 132,266 35,356 3,239.039 14 FlIed asset Investmenti Other Investments Cost or valuation At I September 2023 & 31 August 2024 166,743 C•rrying #mount At 31 August 2024 166,743 At 31 August 2023 166,743 2024 2023 Oth¢T investments cotnprise.. Notes Inve8tn*nts in subsidiaries 25 166,743 166,743 pdse 20 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTILYUED) FOR THE YEAR ENDED 31 AUGUST 2024 IS Debtors 2024 2023 Amounts falling du¢ wlthln one >ear: Trad¢ debtors Amounts owed by fellow group undertakin8S Other debtors Prepayments and ii¢crned incom¢ 411,828 474,737 5,360 12,507 270,844 20,000 25,313 904,432 316,157 Inolud¢d wiihin trad¢ debtors is a prol'ision for bad debts totsllins £43,240 (2023.. £43:69T) 16 CredStors: amounts falllng due wlthlo one year .2024 2023 Not¢s Bank loans and overdrafts Other taxation and social security D¢ferr¢d incom Trade cttdilors Other Cr￿ltOrS ' Accrua]s Is 59,190 51,111 ,379,835 643,455 4,334,983 21,272 524,635 154,738 988,410 325,820 2,634,547 19 6,489,846 4,628,150 17 Creditors: amounts falllNg due after rnore th*n one >ear 21124 2023 Notes Bank loans 18 935,333 994,271 18 and overdrafts 2024 2023 Bank overdrafts Bank loans 467,363 ,051,543 994,523 994,523 1,518,906 Payable within one year Payable after one year 59,190 935,333 524,635 994,271 page 21 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 A UGUST2024 18 Loans and overdr4fts (Colltlnued) Tncluded witbin bank loans ar¢.. A bank loatl with Lloyds Bank commencing on l May 2019, repayable. by monthly instalments. The interest rate on the lo&n is fixed at 2.lQ/o al)oYe thc base rate. A Bounce B￿k loan of £50,0(Kl commencing on 7 May 2020, repayable by 72 monthly repayments at 2.50/0 fjxed interest. These loans wer¢ s¢Gur¢d by the followin8: A first l¢8al rharge over the fteehold prop¢ty of the gchool. A first legal charge over the equestrian land owned by the subsidxary. An unlimited debenture from th¢ school. An unlimited debenture from Lu¢ton School Limited, An unlimited all Monies guardntee froLn the subsidiary. 19 Deferred income 2024 2023 Arising from school fees deferr¢d 1,379,835 988,410 Def¢rred inoome is included in the f￿ancial statements as follows.. 2024 2023 Deferred income is in¢lud¢d wiibin., Curr¢nt liabilities lJ79,835 988,410 Movements in the year.. Deferred income at I September 2023 Rclcascd from previous periods Resources deferred in the y¢ar 988,410 (988,410) ,379,83S 914,544 (914,544) 988,410 D¢f¢rred income at 31 August 2024 ,379,835 988,410 20 Restrleled funds The restricted Sjnds or the ¢harAty comprise the unexpended balances of donY4tions and 8rants held on tn￿1 subj¢rt to specifi¢ condttiotL8 by donors as to how they may be used, At I September At 31 August 21)23 2024 Portrait of th¢ founder donated to school 11,077 11,077 page 22 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2024 20 Restrleted funds (Continued) Previou$ year., ' At I September At 31 August 2022 2023 Portrait of the founder donated to school 11,077 11,077 The putpose of the rcstrictcd fund of £11,077 L8 lo hold and maintain the Portrait of th¢ Founder for Ibe futurc benefit of the school. This restriction was impos¢d by the Charity Commission when the charity acquired th¢ portrait from th¢ charitable organisation previously responsible for the school. 21 Unrestricted funds The unre5tricled funds ofthe charity comprise tILe unexpended b8Lance5 of donations and grants which are not subject lo specific colldilions by donors and grdntors as to how they may b¢ u8¢(L These includ¢ designated fimd8 which have bee set aside out of unr¢$trAcled funds by the trust¢¢s for specific purpos¢s, At I September 2023 Incoming r¢sources Re50urees expended At 31 Augu8t 2024 Revaluatio￿ reserve General funds 387,828 {2,299:387) 387,828 (4,231,392} (3,228.625) 3,302,154 (1.911,559) 3,302,154 (4231:392} (2,840,797) Pr¢vioui y¢ar". At I Septsmber 2022 In¢orning r¢gources Resour¢u At 31 August expended 2023 Rev41uatiou resery¢ General funds 387,828 (1,233,366) 387,828 (2,299,387) 2,901,274 (3,967,295) (845,538) 2,901,274 (3,967,295) (1,911,559) 22 Anolysis of net wssets bebveen funds Unrestricted fund5 2024 Restricted funds 2024 TDtal 2024 Al 31 August 2024: Tangible a8Kts Investments Current aBsetsl{liabilities) Long ternl liabilitLeS 3,168,681 166,743 (5,240,888) (935,333) 11,077 3,179,758 166,743 (5240,888) (935,333} (2,840,797} 11,077 {2,829,720} PaE¢ 23 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 21124 22 Analjsis of net a$s¢ts between funds (Continued) Unrestri¢t¢d funds 2023 Restrlcted fullds 2023 Total 2023 At 31 August 2023: Taftgible assets Jnv¢stsn¢nt5 Current &ss¢td(liabilities) Long tcm liabilities 3,227,962 166,743 {4,311,993) (994,271) 11,077 3,239.039 166,743 (4,311,993) (994,271) <1,911,559) 11,077 (1,900,482} P¢nsion commltments The Sohool parti¢ipale8 in the Teachers, Pension Scheme {"the TPS.) for its teaching staff. Tb¢ p¢nsion Ch￿ge for the yw includes contributions payable to thc TPS of £264.585 (2023.. £2(A,585) and ai thc year end £31,417 accrued in respect of contribthions to this scheme. The TPS is an unfiwded multi-employer defined bcnefiis pension s¢hcme golemed by.th¢ Teacher8, P¢nsion8 R¢gwt81ion$ 2010 [￿ alnended) and The Teachers? Pension Scheme. re8ulalions 2014 (as amended). Members contrtbuts on a'pay as you go, basis with contribution from memb¢rs atLd tbe employer being credited lo the Exchequer. Retirement and other pension beneflts are paid by public funds provided by Parliament, The employer ￿ntribution rate is set by the Secretary of State. following scheme valuations undertaken by the Government Actuary's Department. Th& tiiosl recent a¢tuarial valuation of th¢ TPS was prepared as at 31 March 2016 and the Valuation Rw¢ which was published in March 2019, confinned that the employer cotttribution ral¢ for the TPS would increase from 16.4/0 to 23.6D/o frorn I September 2019. Employets ar¢ also required lo pay a scheme administration levy of 0.080/0 ￿VIng a total"employer contribution rate of 23.681J/.. The 31 M￿Ch 2016 Valuation R¢port was prepared in accordance with the be"nefAts sel out iti th¢ s¢heme regulations and uDd¢r th¢ approa¢h 8P¢Ctfied in the Direction4 as they applied at 5 March 2019. Howev¢r. the 0&8umpiions wer¢ considered and set by the D¢p8rtment for Educa¢ion prior lo the ruling in Ihe 'McCloudlSerg¢ant Case,, This case has required the courts to consid¢r ¢as¢s regarding th¢ iTnplemeniation of th¢ 2015 refom)8 to the Public SerYi¢¢ Pensions includitig tbe Teacbets, P¢n8ions. On 27 Jun¢ 2019 the Supreme Court d￿led the governm¢Trt pern)ission to appe￿ ihe Court of Appeal's judgeJn¢nl that transitional provisions introduced to the reforn)¢d pension $¢hemes in 2015 gave rise to unlawful a8¢ discrimination. The gov¢rntnenl. is respecting the Court's decision and has said it will engag¢ fi]Ily with the EmploJryn¢nt Tribunal as well as employer and memb¥r representatives to agree how the discriminations will be remedied. the gov¢rnmeni announced on 4 February 2021 that it intends to proceed with a d¢f¢rred choice underpift under which members will be abl¢ lo choose either legacy or refonn¢d scheme benefits in r¢s￿Ct of their $erYice during the period betwe¢n l April 2015 and 31 March 2022 at the point th¢y become payable. The TPS is subjcct to a cost cap m¢chanism which was put in place lo protcct tsxpayers against unforeseen chang¢ 8 in scb¢m¢ Costs. Thc Chief Secretsry to the Tr￿￿ry, having in 2018 announc¢d tlLal there would be & r¢view ol this ¢ost cap M￿ha￿lS[￿, in January 2019 announced a pause to the cost cap M￿hanISM following th¢ Court of Appeal's rulirtg In the M¢CloudlSergean¢ case and and until ther¢ is ¢¢rtuinty about the value of pensions to employees from April 2015 onwArd$. The paus¢ was lifted in July 2020, and a consultation was launched on 24 June on prowsed changes lo the c081 control mechanism following a review by the Government Actuary. Following the public consultation, th¢ government accepted three key proposals recommended by the Government ActU4ry, and are aiming to implement these ehattges i me for th¢ 2020 valuations. p￿e 24 LUCTofs PIERREPONT SCHOOL EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2024 23 Pen8ion commitment$ (Continued) In view of th¢ abov¢ nLlings and decisions the assumptions used in thc 31 Mawh 2016 Actuarial Valuation may bccoLne inappropriate. In this scenario, a valuation prepar¢d in accordance with revised benefits and suitablc tclised 4wumplioThs would yield different results than tIL¢)se contsined in thc Actuarial Valuation. Until th¢ c08¢ cap mechanism revision is eompleted it 1$ not Possible lo ¢on¢lude on arky financial impact or future chang¢s to the contribution rdtes of the TPD, Accordingly no provision for any addition&1 p&8t benefit pensions c4)$t 18 included in these financial staternent$. Non- Tei¢hln£ St4ff Certain non-academic staff ar¢ member8 of The Indep¢ndeni Schools, Pensiott S¢heme (ISPEN). This is an industy-wide fimd¢d dcfined benefits sch¢me. As a result, it 15 not possibl¢ or appropriat¢ to identftfy the ass¢ls and liabilities of the scheme which are attributed to the ￿h0O1. The last formal valU￿10[L of th¢ s¢h¢me was perfornied as at 30 September 2014 by a piofessionally qualified actuary, The llknirket value of the schen￿'S assets al the valuation date was £110 llLillion, The valualion rcvcalcd a. shortfall of assets compared with tbe value. of liabilities of £37 Millio￿ equiv4lent to a past servicc funding level of 75 /.. Annual funding updates of the scheme are carried out using approximate actuarial techniques rather than member by ¢rnb¢r ¢alculations and will therefore not produce ¢h¢ sam¢ results as a tull actuarial valuation. How¢ver, they wlll provide a gi>od indi¢ation of the fiDan¢ial progre58 of the scheme 8ince the last full valuation. the followin8 notes relate to the forn￿] actuarial Yalualion as at 30 September ?014. The fwancial assumptions underlying the last valuation &s at 30 Sept¢rnb¢r 2014 were as follows.. /0 p-a 5.IL/*. 3.30/. 3.3% Inv¢s¢m¢nt r¢tum pre-retirement Investment return post retirement- non-pensioner Investment retum post retIr¢￿¢tst- p¢n8ioner R4t¢ of p¢n8ion increases RPI The ongoing ￿tUre service corttribulioDS rate has been ass¢ssed and if the valuation assumptions are born¢ out itt prnctice thts pattem of ¢ontribution8 Should b¢ sufficient to eliminal¢ the past service deficit by 31 Auwl 2029. The pension charge for the year represents the Sehool'$ contributions payable to the 8chem¢ of £24,071 (2023.. £24,071) and at the year end £nil was ac¢rued An respect of ¢ontribuiiot)$ io this scheme. Included in this is 4 fixed monih]y amount of £1,829, b¢ing £1,018 in r¢specl of deficit amounts and £117 in respect of administrative eX￿.￿S¢S. From I Sepl¢mb¢t 2021 the fixed monthly amount has increased lo £1,572 bein8 £1,338 itt respe¢¢ of deficit amounts and £152 in respect of . administrativ¢ expenses, In ac¢ordan¢¢ with FRS 102 th¢ school has recognised a liability in relatioll to th¢ defLCit, measured al amortised Cost and included within other creth'tors. page25 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 A UGUST 2024 24 Related pirty tr8llSartiolls Th¢ following amounts wer¢ outstanding at the reporting end date.. AmouDls owed to r¢lated p*rtie8 2024 2023 AS Southem Limited Alpha Sch(KTrls (Holdings) Limited Sherrardsw¢)od Limited 204,868 3,492,388 25,0 1,896,220 3,722,256 1,896,220 The following amoutLts were outstanding at thc rcporting end dat6: Amounts owed b) related partie$ 2024 2023 MoorAllerton Preparatory School Limited Bccchwood Sehool Limit Lady Lane Park School Limited Triuily School Limitrd Sackville School Limited Wellesley Haddon D¢n¢ School Lirniled St Edw￿dS Senior School Limited TPS Realisations 2024 22,037 126,1)1)O 22,OlX) 139,lJix) 133,(KM) 20,OIX) 12,7(Y) 20,000 474,737 20,000 Th¢ Ghildrets of sl8ff and ttustees may att¢nd th¢ school. In such cases trusts¢s pay school fccs at the standard rates available to all parents, bul sthff nwmber8 may receiv¢ a f¢e r¢mission at an a8re¢d rate. During the year end¢d 31 August 2023, no expenses were reimbursed or paid directly to any of the I￿Stee5 {2023: £nil). ge26 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 A UGUST 2024 25 Subsidiaries DctsiLs of the school's subsidiarie5 at 31 August 2024 arc a5 (ollows., Name of und¢rt#king Registered oifice N*ture ofbuslnus Class of sh*res held /ty Held Dire¢t Indi￿ct Lucton School Limited Lucton School, Lu¢lon, Leominster, Her¢foTdshire, HR6 9PN Luclon International Schools Lucton School, Limited Luclon, L¢ominsler, Herefordshire, HR6 9PN Educatton Ordinary sILares iOO.(K> Education Ordinary shares i 00.00 Thc aggTegat¢ capital and reserves and the result for tho year of $Mbsidianes excluded from con801idation was as follows: N4me olund¢rt#king Profitl(Los$) CapRtal #nd Reserves LuctOD School Limit LucLon Illt¢rnatsonal Schools Limited 168,167 (671) 26 Cash generated from operations 2024 2023 Deficit for the year (929,238} (1,066,021} Adjustments for: Depreciation Ind impaiment of &Dgible fixed asse1$ 65,400 81,480 Mov¢ments in worklllg e*pitg1: (ltscreaseydecI¢as¢ in d¢biors Increase in ¢reditors ]ncrease in d¢l¢rrcd in¢omc (588.275) 1,935,716 391,425 356,110 659.654 73,866 C#$b genorated from operatloll$ 875,028 105,089 page 27 LUCTON PIERREPONT SCHOOL EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 A UGUST 2024 27 Analysls of changes iti net {deb¢)Ifundi At I September 2fr23 Cgib flofv$ At 31_4ugu$t 2024 Cash al ballk and in hand Bank overdrafts 344,526 467,363 344,526 (467,363) (467,363) 811,889 344,526 Loans falling due within on¢ year Loans falling du¢ after more tban one year (57,272) (994,271) (1,918) 58,938 (59,190) (935,333) (1,518.906) 868,909 (649,997) page 28