Charity number: 526631 KING DAVID SCHOOLS (MANCHESTER) TRUSTEE'S REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 KING DAVID SCHOOLS {MANCHESTER) CONTENTS Pag8 Reference and administrative detai15 of the Charity, its Trust09 and advlsers Trustee's report Independent auditor's report on the flnancial statements Consolid*ed statement of flnanclal actlvltles 9-12 13 Consolidated balance shgat 14 Charity balance sheet Consolidated slalement of cash flows 15 16 Notes to the flnanclal statements 17-45 KING DAVID SCHOOLS IMANCHESTERI REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEE AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2023 Trustee KDS Trustees Limited Directors of Tiuslee company.. J Rowe (Chair ol Twsteesl S E Elias A Berkeley (Treasurer} D Lopian lappointed 1 December 2022) Charlty regi$torod number 526631 PrinGipal office Ealon Road Crump5811 Manchester M8 50Y Independgnt auditor Crowe U.K. LLP 3rd floor The Lexicon Mount Street Manchester M2 5NT Bankers The Co-operative Bank plc 1 Balloon Street Manchester M60 4EP Sollcltors Kuil Sleinart Levy 3 Sl Matys Parsonage Manchester M3 2RD Page 1 KING DAVID SCHOOLS (MANCHESTER) TRUSTEE'S REPORT FOR THE YEAR ENDED 31 AUGUST 2023 The frustee present their annual report together with the audited financial slal8m8nts of the King David Sohools IMan¢heslerl for the year 1 September 2022 10 31 August 2023. Objectives and activities Charity Information The Trustee presents ils annual report and the financial slalements for the year ended 31 August 2023. These accounts are prepared in accordance with the Financial Reporting Standard applicable in the UK arbd Republic of Ireland IFRS 1021. the ChaTities Statement of Recotnrnended Practice {SORP) 2019 and Charities Ac12011. b. Reference and Administrative Details Klng David Schools (Manchester) is a registered charity INO. 5266311, ils principal address is shown on the charity information page. The charity is a public ben9fil erblity. c. Structure, Governance and Managem&nt King David Schools {Mancheslerl was established under a Trust Deed dated 20 February 1873 and Articles of Government sealed 27 January 1959 as amended by Constitution dated 13 January 2003. On 7 February 2012 the Charity Commission for England and Wales approved the replacement of the former individual trustees by a corporate tnjstee, KDS Trustees Limited. The former individual tru51ees became directors of the new trustee. The Trustee is responsible for the overall governance of the Schools as a charity. The Trustee's rolo is lo have an overview of the effectiveness of the schools and lo ensure the maintenance of the laith and of the high standards of education generally. The Trustee appoints the Governors. The delivery of the education and curriculum and the management of the schools is controlled through the various Boards of Governors of each of th8 schools, namely The King David High School (including Sixth Form and Yavnehl - The King David Primary School CrèchelNursery lincorporated within the Charityl Effective partnership between the Trustee, Governors and staff has contributed significantly lo a successful year of activity. The trustees meet. fomially, once per year lo discuss the accounts and are in touch with each other throughout the year, These meetings include a rewew of strategy and operatlonal performance and sel operating plans and budgets as and when necessary. New officers of the Trustee company receive an induction pack contalnSng everything they need lo know about the Schools and its work for effective and informed decision-making. The offlcers of the Trustee company are regularly kept up to date about their responsibilities. Remuneration of key management personnel is determined by the trusloe. d. 8ur$ar and Trustee The Bursar and certain delegated officers of the Trustee company are responsible for the day lo day management of King David Schools (Manchester) and for implementing policles. Page 2 KING DAVID SCHOOLS (MANCHESTER) TRUSTEE'S REPORT {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 Objectives and activities (continued) e. Corporato Governance Processes are in place to ensure thal perfomiance Is monitored and that appropriate management information is prepared and reviewed regularly by both Ihe Treasurer of Ihe Trustee company and its Board of Directors. The systems of intemal control are designed lo provide reasonable assurance but not absolute assurance against rrbalerial misstatement or loss. They include- An annual budget appToved by the Trustee company. Regula¥ consideration by the Iruslee of financial results and variances from budgets. Delegation of day lo day management authority and segregation of duties. Idenlification and rnanagemenl of risks. f. Risk Manag9ment Th8 Trustee has introduced a formal risk management process to assess business risks and Implement risk manag8ment strategies. This has involved idenlifylng tho types of iisks the School faces. priorilising them in 18mis of polenlial impact and likelihood of occurrence. and identifying means of managing the risks. As part of Ihis process the Trustee has reviewed the adequacy ol the School's currenl intemal controls and the costs of operating particular Controls relative to the benefits obtained. Procedures have been established for reporting failings immediately to the Board of Directors of the Trustee that include regular bank reconciliations as well as the production of management accounts al the end of each term which are reviewed by the officers of the Trustee. The key risk facing the charity is the level of voluntary contributions and donations that it receives Irom parents and donors. Declining re￿ip1S translate into less funds available to improve tho education being off8red lo our pupils. The Trustee endeavours lo educate parents along with the widar community of the importance of their financial support especially in the light of the redtjcing government funding being made to our schools on the KD campus. Page 3 KING DAVID SCHOOLS (MANCHESTER) TRUSTEE'S REPORT {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 Aehlevements and performance a. Objectives, Activitios, Achiovements and Performance King David Schools {Mancheslerl exists lo provide children with a meaningful orthodox Jewish religious education wupled with an excellent secular education. The main objectives of all units on Campus during the period ended 31 August 2023 are.. Academic - The School aims lo achiev8 the highest academlc standards and ensure that every pupil realises their full potential. Welfare- The school has a warm and caring approach and aims lo ensure the well being and happiness of every child. Religious - The school promotes the values, standards and discipline of the faith. ￿ provide5 8 strong Jewish education which imbues children with the krbowledge of. and pride in, their heritage and identity. The excellenl results that the School achieves as reflected in the published Govemmenl tables is testimony lo the fulfilmenl of the Charity objectives. The Trustee has given duo consideration to the Charity Commission's guidance on public bgnelit requirement under the Charilies Acl 2011, when reviewing Ihg Charity's aims and objectives and in planning future aclimlies. As a leading quality school to the Jewish community the Trustee notes that its success acknowledged nationally both in the secular and religious fields continues. Our pupils are well prepared lo move on to leading universilles, religious and secular colleges with many of our former studènts achieving success in the wider community. b. Corg Objectives and Strategy Th8 strategy is achieved by encouraging all units on the King David Campus to employ highest grade teachers who are able lo inslil in Ihg pupils not only excellence in knowledge bul also lo experien￿ a warm, friendly Jewish environment with a commitment to giving to the Community as a whole. The Trustee continues lo ensure that the facilities are up to dale and suitable for the delivery of the educational and religiou5 objectives. The Schools are dependent on voluntary conlTibulions from parents, donations and educational grants in order to fulfll Ils objectives. Failure of paienls to meet their voluntary contribution commitments will threaten the school's abllty lo achieve ils objectives. Paga 4 KING DAVID SCHOOLS (MANCHESTER) TRUSTEE'S REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 Financial review a. Financial Review, Managernent Policies and R9suIts for the Yèar The Consolidated Slalemenl of Fir)ancial Activities (SOFA), set out on page 13, shows that the group received lolal income of £9,416,54012022- £10,249,728). £10,600,02312022'. £10,485,580) was incurred as expenditure leaving a loss of £1.003,750 12022: gain of £2.352,8701 after a depreciation charge of £693,052 12022- £665,3041 and gair)s arising from changes in actuarial assumptions of £179,000 {2022-. gains of £2,S89,0001. This group position however, takes into account the surpluses in actuarial gainslllossesl in the ￿nsIon schemes positions, which are long term non-cash items, of £151,000 {2022.. £1,372,000} in The King David High School IKDHS) and £28,000 12022.. £1,217,000) in the King Davicj Primary School IKDPSI. Had Ihese aGcounling entries not been included in this yearfs results, we would be facing a deficit of around £1.182,750 {2022.' gain of £236,130). The reason for the deficit in the period is due io the liming of when (Jonalions are received from fundraising campaigns over a 2 year period. The principal funding sources are donations. voluntary contributions from parents, income from the nursery and statutory gDvernmenl funding for the two academies, King David High School and King David Primary School. The charity itseff generated a deficit of £912,414 (2022.. £216.4111. which included £567,634 (2022.. £564,695) of depreciation expenditure in the year. The charity made an unrealised gain on rts investments of £733 12022.. loss of £2781 leaving a total net movement in funds to be added to the reserves. The trustee remains conscious that more funds will have lo be raised lo maintain the ongoing excellence lo which they are commilled. Without parentsl assistance the current achievemenl of acclaimed success could be threatened. Thè Charity continues to monitor ils r8suIts against performance as ils measurement of success. The Charity does not employ a professional fundraiser and relies on assistance from the Trustee. Governors and parents. Whilst it was noted that the Voluntary Contributions from parents continued below expectation, the Charity held a Fundraising campign in January 2024 with funds of £1 m expected lo be recelved over the next 2 years. The Charity must conlinue its fundraising activities in order for it to be able lo continue providing for ils primary objectives and to maintain the high levels of educational standards. The Charity has not received any complaints about its fundraising aclivilies and has policies in place lo ensure that there is no unreasonable intrusion inio a person's privacy. Page 5 KING DAVID SCHOOLS (MANCHESTER) TRUSTEE'S REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 b. Reserves The policy of the Trustee has been and continues to be lo ulilise all reserves to fund the aGlivities of Ihe charity which has resulted from the development and growth of the campus, particularly the High School and lo improve the religious and cultural educational experience across all the schools. Ideally the trustees would like the trust lo hold two years, net expenditure of approx £1,000,000 as free reserves. but with conslanl erosion of the Academies funding from central government resulting in the Trustee having lo support the Iwo academies on the KD campus al a greater level than was envisaged that has not been possible. The total reserves al the year end are £24.512.047 (2022.. £25,515,797). This includes unrestrict9d reserves of £840,537 (2022= £1,184,771) and restricted reserves of £23,671,51012022= £24.331.0261. The Trustee is seeking sources of additional funding for capitsl expenditure in order that total r8serve levels are improved. The Trustee does not consider that this has inhibited activities in any way. Free Reserves Free reserves for the group as at 31 August 2023 stood al a deficit of £373,13812022'. surplus of £264,819). The charlly has carried out a fundraising campaign in 2024 to meet the shortfall in reserves. c. Investment Policy and Performance The Charity has a small investment in a quoted company and a subsidiary bul in Ihe main all funds are held in cash since they are currenlty being directed to the major campus enhancemgnl capital building pro9ramme, The policy is to sell these shares as and when the trustee consider the time lo be propitious. d. Staff Tralnlng and Career Development The schools are committed lo the training. career development and welfare of ils employees. An ifKlividual's career developmeril is assessed through appraisal and supervisic>n. Training programmes are provided lo meet ongoing needs, with the aim of developing employees for both their current and their future roles. Pay and remuneration of Key Management Personnel are reviewed independently by the Directors of the Trustee Company who themselves are not compensated. e. Audltors Crowe U.K. LLP will be proposed for re-appointment at the Truslo& meeting. f. Future Plans The King David School Campus now provides top class education in both secular and Jewish religious studies, with a wide cross section of extracurricular activities covering sports, art and culture housed in the most moder buildings with enhanced advance technological facilities supported by a tnost dedicated and capable staff. The Truste8 is determined lo reach out further in building a school of excellence which will continue lo be the pride of the Jewish Community. Page 6 KING DAVID SCHOOLS {MANCHESTER) TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 g. Golng Concèrn The charity and group meets its day-to-day requirements thorough its bank facilities and Ihe extremely generous donors and parents. The group are considering a numbgr of fundraising opportunities lo recover the deficits going forward. Charity projections taking account of reasonable possible changes in perfom)ance show that the charity should be able lo operate within the level of its current facilities. There is no intention by Mr J Rowe to request full repayment of the concessionary loan in the near future unless the charity can afford lo do so. The charity continues to monTlor ils results against performance as its measurement of sueeègs. The charity does not employ a professional fundraiser and relies on the assistance from the TTusl88, governor and parents. Whilst voluntary contributions from parents continue to be below the idèal level, lo compensate. the charity held a fundraising Campaign in 2022, which raised over £800k (payable over two years} and has undertaken 8 further catnpaign in January 2024. At the date of signing of these accounts the Charily had successfully completed this fundraising campaign and has raised over £1 m (payable over two years). This ensures that the charity is able lo continue with ils primary objectives and to maintain the high levels of educational standards. The Charity has use of an overdraft facility lo ensure that any temporary cash flow shortfalls are covered. The Charity has und8rtaken to provide financial support lo the KDHS Academy. provided that KDHS'S financial requirements do not axcaed their budget and that there are no significant changes to the Board of Governors of the KDHS Academy. At present, the KDHS Academy is operating under a tem)Inatlon notice warning from the Department for Education IDfEI whereby the funding agreemenl could be terminated by the Secretary of Stsle. It is expected that the current 'terminalion warning notice, will be replaced with a 'notice to improve. eady the new year following a scheduled strategic conversation with the Regional Schools, Oireclor. Al the dale of the signing of Ihese accounts, a meeting had taken place with the Regional Schools Commissioner and a letter has been receNèd by the KDHS Academy confirming that the Termination Notice will be removed and has been replaced with a Letter of Concern. However, as a result of this, the KDHS Academy disclosed in its own accounts that a material uncertainly existed in relation to the going ¢oncem of KDHS Academy. Having consideied the position al length, the Tru51ee of the Charity has therefore concluded that Iheie is therefDre no material uncertainty in relation lo the going concern of the Charity irrespective of the uncertainlie5 of the KDHS Academy and the Charity is able lo present ils accounts on a going concern basis. As has been the case for many years, the Twslee continues ils success in maintaining sufficient income to ensure the requirements of the group are mel in full. However, the group musl continue its fundraising aelivilies if the Academies are to continue to provide the academic excellence il has in the past. The group therefore continues lo adopt the going concem basis in the financial stslemenls. Page 7 KING DAVID SCHOOLS (MANCHESTER) TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 Statement of Trustee's responsibilities The Trustee is responsible for preparing the Trustee's report and the financial slalemenls in accordance with applicable law and United Kingdom Accounttng Standards {United Kingdom Generally Accepted Accounting Practi￿1. The law applicable lo charities in England & Wales requires the Trustee to Prepare flnanclal staleffients for each financial year which give a true and fair view of the slate of affairs of the Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial slatemenls, the Trustee ale required to.. select suitsble accounting policies and then apply them consistenlty,. obsetve th8 methods and principles of the Charili&s SORP (FRS 102)., make judgments and accounting estimates that are reasonable and prudent. slate whether applicabte UK Accounting Standards IFRS 1021 have been followed. subjecl to any material departures disclosed and explained in Ihe financial statements., prepare the financial statements on the golng coneem basis unless il is inappropriate lo presume that the Group will continue in business. The Trustee is responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charitys transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enable them lo ensure that the financial statements comply wlh the Charities Act 2011, the Charity (Accounts and Reportsl Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Dlsclosure of information to audltor Each director of the Trustee at the time when this Trustee's report is approved have confirmed that.. so far as the directors of the Trijstee are aware. there is no relevant audit information of which the charitable group's auditor is unaware, and that the direclors of Ihe Trustee have taken all the steps that ought lo have been taken as a Trustee in order lo be aware of any relevant audit informalion and to establish that the charitable group's auditor is aware of that information. Approved by order of Ihe members of the board of Trustee on l & m 2uW* their behalf by: and signed on Joshua.liowa Chair of KDS Trustoes Ltd Page 8 KING DAVID SCHOOLS (MANCHESTER) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KING DAVID SCHOOLS (MANCHESTER) OpSnSon We have audited the financial statements of King David Schools IManchesler} Ilhe 'parent chariv) and its subsidiaries Ilhe 'group'} for the year ended 31 August 2023 which comprise the Consolidated ststemenl of rinancial activities, the Consolidated balance sheet. the Charity balance sheet, the Consolidated statement of cash flows and the related notes, 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. ineluding Financial Reporting Standard 102 'The Financial ReF)Orting Standard applicable in the UK and Republic of Ireland, (United Kingdom G8nerally Accepted Accounts'ng Praclicel. The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Stsndards applicable in the UK and Republic of Ireland IFRS 102} in preference to the Accounting and Reporting by Charities.. S131ement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations bul has been withdrawn. This has been done in order for the accounts lo provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. In our opinion the financial stalements-. give a true and fair view of the stale of the Group's and of the parent charivs affairs as al 31 August 2023 and of the Group's incoming resources and application of resources. inctuding ils income and expenditure for Ihe year then ended.. have been propedy prepared in accordance with United Kingdom Generally Accepted Accounting Practice.. an have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audtt in accordance with Inlernalion81 Standards on Auditing (UK) IISAS IUK}l and applicable law. Our responsibilities under those standards are further described in the Audilorfs responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relev8nt lo our audit of the financi81 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 evidence we have obtained is sufficient and appropriate to provid6 a basis for our opinion. Concluslons rèlating to going concern In audlting the financial stalernenls, we have concluded that the Trustee's use of the going concern basis of accounting in the preparation of the financial stslemenls is appropriate. Based on the work we have performed, we have not identified any material uncertainlies relating to events or conditions that, indlvidually or collectively, may cast significant doubl on the Group's or the parent charills ability lo continue as a golng concern for a period of at least months from when the financial statements are authorised for issue. Our responsibililles and the responsibilities of the Trustees wth respect lo going concern are described in the relevant sections of this report. Pag8 9 KING DAVID SCHOOLS (MANCHESTER) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KING DAVID SCHOOLS {MANCHESTERI {CONTINUED} Other Information The other information comprises the information included in the Annual report other than the financial statements and our AudiloRs report thereon. The Tnjslee are responsible for the other information contained within the Annual report. Our opinion or) the financial slalernents does not cover the other information and, ex￿p1 lo the exlenl olherwise explicitly slated in our report. we do not express any fom of assurance Gonclusion Ihereon. Our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or olheNise appears lo be materially misslaled. If we identify such material inconsistencies or apparent material misstatements. we are required to determine whether this gives rise lo a material missl8lement in the financial statements themselves. If, based on the work we have performed. we condude that Ihere is a material misslatemenl of this other information. we are required to report that fact. We have nolhing tr) report in this ￿ard. Matters on which we are requlred to report by exception We have nothing lo report in respect of tha following matters where the Charitses (Accounts and Reports} Regulations 2008 requires us to report to you if, in our opinion= the information given in the Truslee's report is incon515tenl in any material respecl with the financial statements., or the parent Charity has not kept sufficient a¢counling records. or the parent Charity financial statements are not in agre&ment with the accounting records and relums- or we have nol re￿Ived all the informallon and explanations we require for our audlt. Responslbllltles of trusteè$ As explained more fully in the Trustee's responsibilities statement, the Trustee is responsible for the preparation of the financial stalerT)enls which give a true and fail view, and for such internal control as the Trustee5 determine is necessary lo enable the preparation of financial statements that are free from material misslalemenl. whether due to fraud or error. In PTeparing the financial statements, the Trustees are responsible for assessing the Group's and tho parant charitys ability to continue as a 90ing concern. disdosing, as applicable, mallers relatèd lo going conc8rn and using the going concern basis of accounting unless the Trustees eilher intend to liquidate the Group or the parent charity or to ￿ase operations, or have no realistic allemalive bul lo do so. Pagè 10 KING DAVID SCHOOLS {MANCHESTER) INDEPENDENT AUD￿OR's REPORTTO THE MEMBERS OF KING DAVID SCHOOLS (MANCHESTER} (CONTINUED) Auditor's responsibllltles for the audit of th8 financial statements We have been appointed as auditor under section 151 of the Charities Act 2011 and report In accordance with the Acl and relevant regulations made or having effect Ihereunder. Our objectives are lo obtain reasonable assurance about whether the financlal statements as a whole are free from material misslalement, whether due lo fraud or error, and lo Issue 2n Auditor's report that includes our opinion. Reasonable assurance is a high level of assurantte, bul is not a guarantee that an audit conducted in accordance with ISAS IUK) will always delecl a material misstalemenl when il 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 slatemenls. Irregularities, including fraud, are inslances of non-compliance with laws and regulations. We design procedures in line with our responsibilities. outlined above, lo delecl material misststements in respect of irregularities, including fraud. The extent to which our Pfocedures are capable of delecling irregularities, including fraud is detailed below.. We obtainad an understanding of tho18gal and regu18tory frameworks within which the charity operates, focusing on those laws and regulations thal have a direct effect on the delemiinalion of material amounts and disdosures in the financial slatemenls. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS102} 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental lo the charity's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context for the UK Operations were Charity Commissio regulations. Auditing slar¢dards limit the required audit procedures lo identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence. rf any. We identified the greatest risk of malerial impact on the financial statements from irregularities. inclu(Sing fraud, lo be within the liming of recognition of income and the override of controls by management. Our audit procedures lo respond lo these risks included enquiries of management and the Audit & Risk Committee about their own identifiealion and assessment of the risks of Srregularilies, sample testing on the posting of joumals, r8viewing accounting eslima19s for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged wllh governance. Owing to the inherent limitations of an audit, Ihere is an unavoidable risk that we may not have detected some material misslalemenls in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standard5. For example. the further removed non-cornpliance with laws and regulations lirregulariliesl is from the events and transactions reflected in the financial statements. the less likely the inherenuy limited procedures required by auditing standards would identify it. In addllion. as with any audit, there remained a higher risk of non-deleclion of irregularities, as Ihese may involve collusion. forgery, intentional omissions. misrepresenl8tions, or thg override of internal controls. We are not responsiblè for preventing non- compliance and canr>ot be expected to detect non Charlty Freehold Fixtures and property fittings Computer equipment Total Cost or valuation Al 1 September 2022 Additions 27,590,718 498.337 32.500 5,130 28,094,185 32.500 At 31 August 2023 27,590,718 530.837 5,130 28.126.685 Depre¢lation Al 1 September 2022 Charge for the year 6,422.639 551,814 425,368 15,820 5.130 6.853.137 $67,634 Al 31 August 2023 6,974.453 441.188 5,130 7.420.771 Net book value At 31 August 2023 20.616.265 89,649 20.705,914 At37 Augusl 2022 21.168.079 72,969 21,241,048 Page 31 KING DAVID SCHOOLS (MANCHESTER) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 13. Fixed asset investments Listgd Inv6stments Group and Charity Cost or valuation At 1 September 2022 Revaluations 10,726 733 Al 31 August 2023 11,459 Ngt book value At 31 August 2023 11,459 At 31 August 2022 10,726 14. Stocks Group 2023 Gr<)up 2022 Charlty 2023 Charily 2022 Finished goods and goods for resale 12,760 9.143 12.760 9. 143 15. Debtors Group 2023 Group 2022 Charity 2023 Charity 2022 Due within one year Trade debtors 22,894 23.964 22,894 50 67,259 34,646 23,964 Amounts owed bygroup undertakings Other debtors Prepayments and accrued income 143,693 155,397 64,484 374,414 30,789 140,848 321,984 462,862 124,849 195,601 Page 32 KING DAVID SCHOOLS {MANCHESTeR} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 16. Creditors: Amounts falling duo wlthin one year Group 2023 Group 2022 Charity 2023 Charity 2022 Bank overdrafts Bank loans Trade creditors Amounts owed to group undertakings Other taxation and social security Other creditors Accruals and deferred income 388,816 85.687 249,503 387,632 76,504 167,940 43 8,401 126.411 293,197 388,816 85,687 103,986 1,299 22.082 10,838 25,934 387,632 76,504 100,750 43 8.401 5,880 27,734 22,082 145,952 61,293 953,333 1.060. 128 638.642 600.944 Group 2023 Group 2022 Charity 2023 Charity 2022 Deferred income al 1 September 2022 Resources deferred durin9 the year Amounts released from previous periods 49.511 26.238 (49.511) 91,875 49,511 (91,875) 7,519 13,119 17,5191 48,445 7,519 (48,445) 26.238 49,511 13.119 7.519 Page 33 KING DAVID SCHOOLS IMANCHESTERI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 17. Creditors: Amounts falling due after more than on8 year Group 2023 Group 2922 Charlty 2023 Ch8rf1y 2022 Bank loans Other loans 75.302 285,617 75,302 285,617 285,617 285,617 285.617 360,919 285,617 360,919 Included wthin the above are amounts falling due as follows.. Group 2023 Group 2Q22 Charlty 2023 Charity 2022 Between one and two years Bank loans Other loans 75,302 285,617 75,302 285,617 285.617 285.617 Included within creditors are balances due lo lendgrs in respect of bank loans. Al 31 August 2023 the balance is £85,68712022.. £151,8061- The inlgrest Chaiged on the loan is 3.5Q/o over bank base rate. The loans are secured by a letter of sel off over credit balances. Creditors includes a concessionary loan from J Rowe, a trustèe of King David Schools {Manchesterl, of £285,61712022= £285,617}. The loan is subject to a 12 month and 1 day notice period and not subjecl lo interest. Page 34 KING DAVID SCHOOLS (MANCHESTER) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 18. Financial instruments Group 2023 Group 2022 Charity 2023 Charity 2022 Financlal assets Financial assets measured al amortised cost 924,717 1,491,331 392,014 705,046 Group 2023 Group 2022 Charity 2023 Charily 2022 Flnanclal Ilabilitifjs Financial liabilities measured al amortised 1.276.879 t,412,646 982,078 953,462 Financial assets measured al amortised cost comprise trade d8blors. other debtors and accrued income. Financial liabilities measured at amortised c051 comprise bank loans and overdrafts, trade creditors. other creditors and accruals. Financlal assets measured at fair value through income and expenditure comprise investments and total £11.459 {2022'. £10,726) for both the Group and Charity. Page 35 KING DAVID SCHOOLS (MANCHESTER) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 19. Statement of funds - Group Statement of funds - current year Balance at 1 September 2022 Balance at Gainsl 31 August (Losses) 2023 Incorne Expendlture ljnrestrlcted funds General Funds 1.184.771 1,555.928 (1,800,895) 733 940,537 Restricted funds A¢ademyfunds Donations SEN income Nursery grant Grant of buildings and fixtures from BSF Pension reserve 4,370.849 7.015,718 17.107.054) 676,845 1776,845) 109,005 1109,005} 59,044 {59,044) 4.279,513 {100,0001 19.960,177 1568,180} 1179.0001 19,391,997 179,000 24.331,026 7.860,612 {8,799,1281 179.000 23,571,510 Total of funds 25,515,797 9.416,540 {10.600.023) 179,733 24.512,047 Page 36 KING OAVID SCHOOLS {MANCHESTER) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 19. Statement of funds (contlnued) ststement of funds - Group - prior year Balance 81 I September 202f Balance 8t 31 August 2022 G8ins/ (Losses) Income Expgndilur8 Unrestricted funds General Funds - all funds 2.847,259 2,668,024 (4.330,234J (278) 1, 184, 77t Restrided funds Academy funds Donations SEN income Nursery grant Junior school prize fund High school prize fund Yavneh prize fund Grant of buildings and fixtures from BSF Pènsion reserve 2,031, 7T1 7,298,128 (4,959.050) 83,512 (83,512) 130.917 (130,917) 59,588 (59.588) (669J (205J (2, 155J 4,370.849 669 205 2,155 20,524,868 (2.244, 000) (564,69tJ (345,000) 19.960,1T7 2,589.000 20,375,668 7,572, 145 (6. 145.787) 2,589,000 24,331.026 Total of funds 23, 162,927 70,240. 169 (10,476,021) 2,588, 722 25,515, 797 Page 37 KING DAVID SCHOOLS (MANCHESTER> NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 20. Analysis of net assets betw&•n funds Analysls ol net assets between funds - currgnt year Restricted UnrgStri¢tgd funds funds 2023 2023 Total funds 2023 Tangiblè fixed assets Fixed asset Investments Current assets Creditors due within one year Credilors due in more than one year Difference 23,332.798 1,313,916 24,646,714 11,459 11,459 668.851 423.973 1,092.824 (330.1391 (623,1941 1953,333} 1285,6171 1285,617> 100,000 1100.000} Total 23,571,510 940,537 24.512.047 Analysis of net assets between funds- prioryear Rgstricted UnrestriGtgd fijnds funds 2022 2022 Tol81 funds 2022 Tangible fixed assets Fixed asset Investments Current assets Creditors due within one year Creditors due in more than one year 23.770.359 7,280,871 25,051.230 10,726 10.726 I,ot9,851 855,037 1,874.888 (459. 184) (600,944) (1,060, 128) (360,919) (360,919) Total 24,331,026 1. 184, 771 25,515, 797 Pag& 38 KING DAVID SCHOOLS (MANCHESTER) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 21. Reconciliation of net movement in funds to net cash flow from operating activitie$ Group 2023 Group 2022 Nel expendilure for Ihe year las per Statement of Financial Activities) 11,182,750) (236.130) Adjustments for., Depiecialion charges Gainslllossesl on investments Increase in stocks Decreasellincreasel in debtors Increaselldecreasel in creditors LGPS pension movement 693,051 665,308 733 (278) {3,6171 {546) 124.432) (121.476) 1296,705) 12.214 531.000 345.000 Net Cash provldèd byllused Inl operatlng actlvltios {282,720) 664,092 Analysis of¢ash and cash equlvalents Group 2023 Group 2022 Cash in hand Overdraft facility repayable on demand 758.080 1.402,883 1388,816) (387,632) Total cash and cash equivalents 369,264 1,015.251 23. Analysis of changes in net debt September At31 2022 Cash flows August 2023 Cash at bank and in hand Bank overdrafts repayable on demand Loan due wthin 1 year Loans due afler 1 year 1,402.883 {387,632) (76,504) {360.919) {644.8031 (1,1841 (9,1831 75,302 758,080 1388,816) (85,687) (285,617) 577,828 (579.8681 {2,040> Page 39 KING DAVID SCHOOLS {MANCHESTER) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 24. Pension commitmgnts The Charity operates a defined contribution pension scheme. Contributions tolalling £6.496 {2022= £2.8341 were payable to the fund at the balance sheet dale and are included in creditors. Th& Group operates a defined benefit penslon scheme. The academies, employees belong to prlnapal pension schemes.. the Teachers. Pension Scheme for England and Wales (TPS) for academic and related staff,. and the Local Govemment Pension Scheme ILGPS) for non-teaching staff. which is managed by Hymans Robertson LLP. Both are mults'.employer dafined bonefit schemes. The latest actuarlal valuation of tho TPS related lo the period ended 31 March 2020 and of the LGPS 31 March 2022. There were no outstanding or prepaid conlribulions at either the beginning or the end of the financial year. Teachers. Penslon Scheme The School participates in the Teachers, Pension Scheme I'the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £6,49612022: £2,834). The TPS is an unfunded multi-employer defined benefits pension scheme govemed by The Teachers, Pensions Regulations 2010 las amendedl and Thè Teachers. Pension Scheme Regulations 2014 las amended). Members contribute on a "pay as you go" basis wilh contributions from members and the employer being credited lo the Exchequer. Retirement and other pension benefits are paid by public funds provided by Padiament. Valuation of the Teachers. Pension Scheme The employer contribution rate is sel by the Secretary of State following scheme valuations undertaken by the Government Actuary s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2D20 and the Valuation Report, which was published in October 2023. Following the Mccloud judgement. the remedy proposed that when benefits become payable. eligible members can select lo receive them from either the refomed or legacy schemes for the period 1 April 2015 to 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the greater ben8fits, and in preparing the 2020 valuation have valued the 'grealer value, benefits for groups of relevant members. The valuation confirmed that Ihe employer contribution rate for the TPS would increase frorn 23.6Yo to 28.6V/o fiom 1 April 2024. Employers are also required lo pay a scheme administration levy of 0.08 /0 givin9 a lolal employer contribution rate of 28.680/.. A copy of the valuation report and supporting docurnenlation is on the Teachers, Pensions websile Ihttps'.Ilwww.leacherspensions.co.ukl. Under the definitions s6t out in FRS 102, the TPS is an unfunded mutti*mploy8r pension scheme. The academy has accounted for its contributions lo the scheme as if it were a defined contribution scheme. The acad8my has sel out at)ove the infomialion available on the scheme. Page 40 KING DAVID SCHOOLS (MANCHESTER} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 24. Pension Commitments (contlnued Local Government Penslon Scheme The LGPS is a funded defined benefit pension Scherne, with the assets held in separate trustee administered funds. The lolal contribution made for the year ended 31 August 2023 was £215.00012022 - £206,000), of which employerfs contributions totalled £162,00012022 - £156,000} and employees. contributions lotalled £53,000 {2022 - £50,000). The agreed contribution rates for futtjre years are 19.1 per cent for employers and 5.5 - 12 per cent for employees. As described in nolg the LGPS obligation relates lo the employees of the acadomy, who were the employeès transferred as part of the conversion from the maintained school and new employees who weie eligible lo. and did, join the Scheme in the year. The obligation in respect of employees who Irarbsferred on conversion represents their cumulative service al both the predecessor school and the academy al the balance sheet dale. Parliament has agreed, at Ihe request of the Secretary of Slate for Education, lo a guarantee that, in the ev8nl of academy ¢losuTe, oulstsndlng Local Govemmenl Pension Scheme liabilities would be mel by the Department for Edu¢ation. The gLtaranleé Camo into force on 18 July 2013. Principal actuarial assumptions at the Balance sheet date lexpressed as weighted averages).. At 31 Al 31 August August 2023 2022 Discount rale Rale of increase in salaries Rale of increase for pensions in paymenvinflation 5.20 3.80 4.25 3.05 At 31 Al 31 August August 2023 2022 Years Years Mortality ratès lin years) for a male aged 65 now - at 65 for a male aged 45 now - for a female aged 65 now al 65 for a fernale aged 45 now 20.1 19.8 22.4 24,7 20.3 21.6 23.2 25.1 Page 41 KING DAVID SCHOOLS IMANCHESTER) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 24. Pension commitments {continugdl The Group's share of the assets in the scheme was- At 31 AI 31August August 2023 2022 Equities Gills Property Cash and other liquid assets 3,166.800 633,360 361.920 361,920 3,038, 760 616,550 396,360 352,320 Total fair value of assets 4,524,000 4,404,000 The actual return on scheme assets was negative £59.000 (2022- £38,000). The amounts recognised in Ihg Consolidated Stalgmenl of Financial Acttvities ar8 as follows.. 2023 2022 Current service cost Interest cost 351.000 180.000 236.000 770,000 39,000 Net interest Total amount recognlsed In the Consolldated Statemant ot Flnancial Activities 531.000 385,000 Movements in the piesent Value of the defined benefit obligation were as follows-. 2023 Opening defined benefit obligation Actuarial {lossesygains Benefits paid Current service costs Interest cost Employee contributions 4,404.000 (395,000) 169,000) 351,000 180,000 53,000 Closing defined benefit obligation 4,524.000 Page 42 KING DAVID SCHOOLS (MANCHESTER) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 24. Penslon commitments Icontlnuedl Movements in the fair value of the Group's share of scheme assets were as follows= 2023 Opening fair value of scheme assets Interest income Actuarial gains ContribuliDns by scheme participants Benefits paid Employer contributions 4.404,000 190,000 179,000 (395,000) (69.000} 215,000 Closing faiT valug of scheme assets 4.524.000 25. Op9ratin9 lease commitments Al 31 August 2023 the Group and the Charity had commitments to make future minimum Eease payTnents under non. During the year, King David Schools loaned the High School £nil12022'. £nill. £nil12022.. £nill was repaid in the yearlgaving a balance due to the fiom charity al the year end of £1.59412022= £1,594). During the yeaT, King David Schools Imanchesterl Charitabl8 Trust provided donations to the value of £512.900 {2022. £927,054) lo King David High School. During the year King David Primary School, which has trustees common to the directorships of the Company, was recharged caretaking costs to the valu8 of £9.60012022.. £9.6001 by King David Schools. In addition the charity recharged catering costs amounting to £109,260 12022: £80.793). staff costs of £196,76512022'. £nill and sundry costs of £2,48412022= £4,147}. During the year, King David Schools {Mancheslerl Charitable Trust provided donations to the value of £94,80012022.. £94,800) lo King David Primary School. During the year, King David Resources Llmited, a company in which J Rowe and A Berkeley are Directors, was recharged cleaning costs of £nil 12022.. £nill and loaned £nil 12022-. £6,000). During the year King David Resources Limiled recharged expenses amounting to £nil12022'. £741,405) lo the group. The balance due lo the charity al the year end was £nil12022'. £12,704). Page 44 KING DAVID SCHOOLS IMANCHESTER) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 27. Prln¢ipal subsidiaries Tho following were subsidiary undertakings of the Charity- Names Company Reglstèred office or principal Princlpal activity Included in number place of business nsolidation The King David High 077160S7 Ealon Road, Crumpsall. S¢hool Manchester, M8 5DY The King David 08424154 Wilton Polygon, Bury Old Road, Primary education Yes Primary School Manchester, M8 5DJ Secondary education Yes The financial results of Ihe subsidiaries for Ihg year were.. Names InGome Expènditure ProfiU{Los$) I Surplusl IDeli¢ltl for the year Net assets The Klng David High School The King David Primary School 6,763.048 2,789.813 6,777.330 3,045,869 {14,2821 {256,0561 2,944,759 334,753 The charity has the rlght lo appointl remove mernbers and governors of the consolldaled entities and as such has control. Page 45