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2023-08-31-accounts

REGISTERED COMPANY NUMBER: 00312473 (England and Wales) REGISTERED CHARITY NUMBER: 527377

Red House School Limited

Report of the Trustees (including Strategic Report) and Financial Statements for the Year Ended 31 August 2023

ANDERSON BARROWCLIFF LLP Chartered Accountants

Red House School Limited

Contents of the Financial Statements for the Year Ended 31 August 2023

Page
Charity Reference and Administrative Details 1
Report of the Trustees (including the Strategic Report) 2 – 12
Report of the Independent Auditors 13 – 15
Statement of Financial Activities 16
Balance Sheet 17
Cash Flow Statement 18
Notes to the Financial Statements 19 - 30

Red House School Limited

Charity Reference and Administrative Details for the Year Ended 31 August 2023

Registered Company number

00312473 (England and Wales)

Registered Charity number

527377

Registered office

36 The Green Norton Stockton on Tees TS20 1DX

Trustees

Trustees
V L Duncan - Chair
K D James - Secretary and Vice Chair
S M Costigan J Henning
K E Huddart L C Boyd-Smith
F Hunt
S Blackett
A G Taylor R S Scott – Appointed 23/11/2022

Other changes in trustees holding office are as follows:

M E Elwell – Retired 21/09/2022 A Rangan – Retired 23/11/2022 N Simpson – Retired 31/10/2023

V Bedi was appointed President in November 2017 and J A Robson continues to act as Vice President. Neither are registered as statutory directors of the company. The school no longer has a staff representative in attendance at Board of Governors meetings.

Head

R Ashcroft

Auditors

Anderson Barrowcliff LLP Chartered Accountants 3 Kingfisher Court Bowesfield Park Stockton on Tees TS18 3EX

Bankers

Lloyds TSB Yorkshire Bank 27 High Street 30 St Vincent Place Stockton Glasgow TS18 1SG G1 2HL

Solicitors

Milners Solicitors Whitehall Waterfront 2 Riverside Way Leeds West Yorkshire LS1 4EH

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Red House School Limited

Report of the Trustees for the Year Ended 31 August 2023

The trustees present their report and the audited financial statements of the charity for the year ended 31 August 2023. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) 'Accounting and Reporting by Charities' in preparing the annual report and financial statements of the charity.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) published in October 2019, and the Companies Act 2006.

TRUSTEES

The directors of the charitable company are its trustees for the purposes of charity law. The trustees who have served during the year and since the year end are shown on page 1.

OBJECTIVES AND ACTIVITIES

In setting our objectives and planning our activities our trustees have given careful consideration to the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education and on fee charging.

Red House School is a coeducational independent day school for children between the ages of 3 and 16. The Head, Dr Rebecca Ashcroft, is a member of the Independent Schools Association (ISA) and the Board of Governors, Red House's governing body, is in membership of the Association of Governing Bodies of Independent Schools (AGBIS). The Head of Finance & Compliance, Mr Craig Staniford, is a member of the Independent Schools' Bursars Association (ISBA). The aim of the school is to provide a high quality, all-encompassing education, in a nurturing, inclusive and caring environment.

Red House was established in 1929, by a group of parents to provide the very best education possible for their children. This remains just as true today and a close working collaboration between parents and staff ensures that the pupils are happy in school and achieve their very best.

Red House is a truly cooperative community in which every member of the Red House family is working towards the goal of being the best they can be, whilst supporting those around them. We offer each of our pupils the opportunity to make the most of their talents and gain a wealth of new experiences in a happy, encouraging, and nurturing environment. We maximise their potential by affording our pupils a huge range of learning and co-curricular opportunities, whilst ensuring the highest levels of pastoral care. We want our pupils to flourish and to leave us at the end of their Red House journey, surrounded by friends, with the best grades possible, being fully prepared for the next exciting phase of their lives.

The pupils perform exceptionally well academically, with every child achieving their best. Indeed, we are immensely proud to have been ranked the No. 1 independent school in the area for results at GCSE for the past few years, and have received the highest rating of ‘Excellent’, in both categories, following an inspection by the Independent Schools Inspectorate (ISI) in April 2019. The pupil’s success is the result of their curiosity and intellectual engagement, as well as their developing maturity and self-confidence. Making learning exciting, engaging and memorable lies at the heart of a Red House education. However, academic results are not the sole success criteria: our pupils enjoy a holistic education, and are inspired as much by the world outside the classroom as the world within it. At Red House, every aspect of school life complements the others, and it is precisely this rounded education which produces independent and creative young adults, who are prepared and ready to make their mark in the world.

As we fast approach our centenary year in 2029, Red House is a thriving community, and a truly unique school, which is both vibrant, progressive and dynamic, with space to breathe and think.

The school usually operates one form in each year in Key Stage 1, two forms per year in some Key Stage 2 year groups, and three forms per year in Key Stages 3 and 4.

During the year under review, the school completed the significant refurbishment of the Design Technology suite in the Senior School. In addition, we invested considerably in the Computer Science rooms in the Senior School, with Computer Science 1 being repainted and fitted with new lights, and Computer Science 2 has had new desktop machines purchased.

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Red House School Limited

Report of the Trustees for the Year Ended 31 August 2023

Whilst we take pride in our traditions and Christian heritage, Red House also aims to be at the forefront of developments in both teaching and learning. Opportunities to experience and use ICT are embedded into the curriculum, whilst suites of Chromebooks and desktop computers on both sites ensure each child is able to make the most of the technology available.

SIGNIFICANT ACTIVITIES

Early Years Foundation Stage (EYFS)

Following an extensive building programme, Red House Nursery School opened in Spring 2005. Boys and girls, aged over three years of age, are welcomed into the Nursery on a part-time or full-time basis. The purpose-built Nursery provides a secure, warm and friendly environment in which children can play and learn. With access to its own enclosed patio and garden, the Nursery offers spacious, safe and calm surroundings that help each individual child develop and discover. Nursery children are encouraged to use the outdoor learning environment and are taken on a range of off-site educational activities.

In November 2022, Red House School was one of three schools nationally who were shortlisted by the Independent Schools Association (ISA) as a finalist for the ‘ISA Award for Excellence and Innovation in Early Years’.

Junior School

Based on the same site as the Nursery, the Junior School offers a secure, stimulating and caring environment in which the needs of each individual child are provided for and nurtured. Children from Reception to Year 5 are taught on this campus.

Offering a high quality of education in all areas of school life, a team of professional and dedicated staff identify the special requirements of each child and provide opportunities for all the children to develop their academic, social, physical and intellectual potential. Interactive panels in each classroom, plus an ICT suite on the Junior School site, ensure that ICT is an integral part of our pupils’ education from an early age. The outdoor learning area encourages the children to work independently and to make the most of outdoor learning, and pupils from Reception-Year 6 enjoy one half term of Forest School lessons per year. Children in each year group are also taken on a wide range of educational and co-curricular visits.

Children leave the Junior School at the end of Year 5 fully equipped for a smooth and successful transition to Year 6 in the Senior School.

Senior School

Children in Years 6-11 are taught on the Senior School campus. Year 6 is housed in two classrooms on the ground floor. Year 6 provides exciting challenges across the full range of academic subjects and introduce pupils to a wide range of sporting, cultural and creative activities. This develops a pupil’s talents and skills and lays secure foundations for the future.

In Year 6, pupils are taught by specialist ‘secondary’ staff for PE, Games, Swimming, Art, DT, Computing and French. For the remainder of their lessons, they are taught by the Year 6 Class Teachers and are taught in specialist facilities e.g. the Science Labs, Art Studio, the DT Room, and the Computing suites, and there is no doubt this helps children to achieve their full potential.

Senior pupils have access to a full range of GCSEs. All pupils study the ‘core’ subjects of Mathematics, English Language, English Literature, Biology, Chemistry and Physics, along with three/four other ‘option’ subjects chosen from an extensive list of options. Further Mathematics is also an additional option for our most able mathematicians in Year 11.

In addition, there are a number of educational visits each year, including field trips, year group residential trips, theatre visits, foreign languages trips and excursions to local and national museums and other places of educational interest. For example, in the 2022-23 academic year, 68 pupils enjoyed a ski trip to Les Deux Alpes in France in December 2022, and the Year 11 pupils participated in a cultural enrichment trip to Amsterdam in March 2023.

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Red House School Limited

Report of the Trustees for the Year Ended 31 August 2023

Pupils also participate in a broad and diverse range of co-curricular activities, including sport, drama, music tuition and ICT, to maintain a broad and balanced education.

ICT

There is a strong emphasis throughout the whole School on the development of ICT skills. An extensive computer network, which includes several suites of wireless Chromebooks (100 in total), laptops and iPads, is linked to all areas. Continued investment in state-of-the-art equipment in the 2022-2023 academic year includes new monitors in all Junior School classrooms, 9 new Chromebooks for pupils with SEND across both sites and two new interactive panels in the newly refurbished DT room; meaning that every classroom in the school on both sites now has at least one interactive panel. A further 7 desktop computers were bought for the GCSE Computer Science classroom due to increased numbers opting for the subject.

The School continued to invest heavily in new technology throughout the year, spending £14,965 on computer equipment to enhance interactive classroom teaching.

Independent research is facilitated through unlimited and filtered access to the Internet. The ICT facilities are made available to pupils before and after school and during breaks and lunches for the older age ranges.

Culture, Music & Drama

Music and Drama have remained important aspects of life at Red House and the opening of the Music School four years ago is a prominent enactment of the school’s commitment to the performing arts. Private tuition for a wide range of brass, string and percussion instruments continue to be available to children throughout the school. Cocurricular music; for example, orchestra, Junior and Senior Choirs, a recorder group and a number of other instrumental groups are well-attended, and a Christmas Concert took place on 8 December 2022, as well as a highly competitive ‘Red House Has Got Talent’ competition on 31 March 2023.

In the 2022-2023 academic year, Junior School productions, Harvest Festival, Senior School Carols & Cocoa, Junior Nativity Services, a Christingle service, music concerts and drama productions by Senior School pupils were all significant events in the school year. The school also produces a musical each year which includes children from both sites. In June 2023, pupils from Year 3-11 participated in the much anticipated ‘A Night at the Musicals’ school production over 2 nights, 29-30 June 2023.

Co-Curricular Activities

Co-curricular activities, i.e. those aspects of a pupil's learning and development that run parallel to their academic studies, are an integral and highly significant part of life at Red House School and are considered as an extension of the curriculum rather than an addition to it. Examples of our co-curricular offerings include: outdoor adventure education (with trips to Outward Bound, Ullswater, Carlton Camp, Robinwood, PGL Newby Whiske and PGL Caythorpe Court).

Duke of Edinburgh's Award expeditions, an annual ski trip to France and the ambitious and exciting programme of sporting activities, ‘Education for Leisure’, that take place in Year 11, are all examples of flourishing opportunities for pupils at Red House. A group of Year 10 pupils, who attend ‘The Spires’ (Junior Oxbridge Club) also participated in a two-day residential visit to Oxford and Cambridge from 5-6 July 2023 and a one-day trip to Durham University on 15 September 2023.

The Duke of Edinburgh's (DofE) Award scheme not only provides opportunities for pupils to become involved in adventure education, but also allows pupils to develop their skills, physical prowess and contribute to community service. Many pupils in Year 10 take part in the Bronze Award. Trim trails on both school sites provide alternative suitable physical challenge for pupils during break and lunchtimes.

Other activities at the Senior School include: Chess Club, Dance, Minecraft Club, Football Academy, Table Tennis and Badminton Club, Eco Club, Art Club, ICT and Robotics. There are a large number of clubs and activities that take place in the Junior School including: Table Top Games Club, Lingotots, Performing Arts, Karate, Zen Club, ICT, Art and Craft Club, Eco Club, sport, DT, and cooking. This list is just a small selection of the clubs on offer. In the 20222023 academic year, there were over 20 co-curricular clubs available on both sites.

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Red House School Limited

Report of the Trustees for the Year Ended 31 August 2023

Sport

Red House pupils are entered for a number of local and national competitions and sport plays a major role in the physical development of children and is central to school life. Our excellent facilities, augmented by resources brought in from outside, ensures that all pupils have access to a wide and varied programme of sporting activities.

Pupils in the Junior School are taught by specialist sports teachers, using equipment and facilities on both sites. The school has a large sports hall, extensive playing fields and an all-weather sports pitch. The sports curriculum not only has obvious health benefits, but also provides opportunities to develop team working and leadership skills, as well as the enjoyment of competing against other individuals and teams. Our annual sports day took place at Middlesbrough Sports Village on 3 July 2023.

In the academic year 2022-2023, there were a number of significant sporting achievements:

Pastoral Care, Mindfulness and Wellbeing

Red House is a warm and caring school, providing a secure and supportive environment in which young people develop into confident, mature and respectful young adults. A programme of personal, health and social awareness ensures that our pupils are equipped to deal with issues in the modern world and prepares them for life after Red House.

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Red House School Limited

Report of the Trustees for the Year Ended 31 August 2023

Following Red House being awarded the Bronze Award by the Carnegie Centre for Excellence School’s Mental Health Award in July 2021, in the 2022-2023 academic year, whole-school wellness and mindfulness has been championed through a range of activities for both pupils, staff and parents. Mindfulness and wellness are an integral part of life for pupils at Red House School. This has been achieved through regular assemblies on topics related to wellness; the Wellbeing and Positive Mental Health Policy; the pupil Wellbeing board; a team of Year 11 Wellbeing Prefects; and mindfulness being further embedded into the PSHE and RSE programme across both sites; 11.

In addition, in 2022-2023 the following measures were in place:

For staff, wellbeing initiatives included a mindfulness Christmas crafting evening over two nights, with over 25 members of staff across both sites participating; Staff Wellness Boards in both staff rooms; and ‘Attitude of Gratitude’ goodie bags and post-it notes in both staff rooms.

Since October 2020, we have completed an annual Wellbeing Survey with our parents, pupils and staff and use this data to feed into our pastoral care provision and wellbeing initiatives. The last survey took place in October 2022.

In the 2022-2023 academic year, Red House pupils and staff supported many local and international charities both through charitable giving and practical involvement. £8053.94 has been raised to support the following charities: DEC, Macmillan Cancer Support, Headlight, Myeloma UK, Hello Yellow, Children in Need, St Michael’s Hospice and Butterwick Hospice (Reindeer Runs), Place2Be, Save the Children, and Comic Relief. In addition, food, clothing and sanitary wear to the Trussell Trust and Billingham and Stockton Food Bank.

There are strong links with our local church St. Mary's Church, Norton and Stockton Parish Church. For example, Red House pupils, parents and staff were invited to, and participated in, the Parish Remembrance Day events on 11, 12 and 13 November 2022. Red House staff, pupils and parents were present at all three events. The Junior School had a Christingle and Easter services in St Mary’s in the 2022-2023 academic year.

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Red House School Limited

Report of the Trustees for the Year Ended 31 August 2023

Community Links

A Community Action Group was established in the Senior School in September 2022. Examples of work within the Norton community include: an Act of Kindness for World Mental Health Awareness Day on 10 October 2022 where chocolate token delivered to local residents; regular litter picking on Norton Green and Norton High Street, assisting the local Norton ‘Clean Up Your Act’ campaign; sweeping up leaves at St Mary’s Church, ahead of the Remembrance Day event and after (7 & 21 November 2022); tidying the church car park and graveyard of rubbish ahead of important services; delivered 60 Christmas cards and a chocolate gift to all of the residents around The Green; delivered Easter greetings cards and eggs to 60 local residents; Junior School choir visiting Millbeck Nursing and Residential Care Homes.

Red House School was celebrated in the Independent Schools Council (ISC) ‘Celebrating Partnerships’ publication in November 2022, and Dr Ashcroft was invited to attend the parliamentary launch at the House of Commons on 14 November 2022.

Careers and post-16 guidance

Red House School is committed to preparing its pupils for further and higher education and for the world of work, through a planned programme of Careers Education and Guidance. Through this programme pupils are prepared for life beyond the classroom, offering them opportunities to become acquainted with the types of decisions and choices which will face them in the future. Pupils are encouraged to take an active role in their own career learning as well as providing them with excellent support. In 2022-2023, pupils from Years 7-11 are taught about Careers Education as part of the PHSE programme and also in Tutor Time activities. In these lessons they discover selfdevelopment through careers and work-related education, find out about careers and the world of work, and develop skills for career wellbeing and employability.

Pupils from Year 7 upwards are provided with access to the Unifrog platform, this can be used in class and remotely. Additionally, pupils may attend careers events such as Tees Valley Skills – a careers event involving the leading providers of work, education and training in the local area.

In Year 11, local Sixth Form Colleges, Colleges of Further Education and other Tees Valley learning providers are invited to come to Red House School by the Careers Lead (the Assistant Head (Academic)), to speak to the pupils and give advice on courses and other post 16 options. Those interested in pursuing a career in the world of finance or business usually take part in the ICAEW business competition held at Stockton Sixth Form College. As part of our ‘Be Inspired’ programme, other events and a programme of guest speakers take place throughout the year, to raise awareness of different careers and the world of work.

Red House School is fortunate to have many links with local businesses, parents, alumnae, and the community who come willingly into lessons to give presentations. Pupils are encouraged to find opportunities for work experience or work shadowing during school vacations. Our pupils leave Red House as confident, independent learners, ready for other independent schools or state sixth form colleagues.

Environmental initiatives

Red House School is committed to becoming a ‘greener’ and eco-friendlier environment. For example, we have an active Carbon Neutral Group which was set up in March 2021, which comprises 24 members (staff, pupils, parents and a governor) and meets regularly; we have an Eco Club in both the Junior and School which meet on a weekly basis; we were awarded a distinction in the Schools Eco Award in July 2023; and we held an Environment Week in June 2023 was a fantastic success across both sites, with a whole host of energy-saving and environmentally-friendly initiatives taking place. In 2023, the Junior School Eco Club also gained a certificate from the ‘Keep Britain Tidy’ campaign. Eco Club pledged to pick up a certain amount of litter and completed their challenge.

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Red House School Limited

Report of the Trustees for the Year Ended 31 August 2023

Environmental Week was fully planned by the pupils with their aim to raise awareness of environmental issues, helping our whole school community to focus our minds on what else can be done, and how easy it would be to add to our daily routines. As part of the week, staff were challenged with a ‘no’ electricity day, serving eco-friendly meals, delivering outdoor lessons and setting paperless homework; the pupils led assemblies on environmental issues, as well as taking part in many eco-challenges out of school. Some of these challenges included car sharing, cycling to and from school and litter picking. The Carbon Neutral Group organised an engaging session with Helen Deehan, Chair of Stockton Climate Action Network and the organiser of Norton Green Market whose aim is to bring a greener market to our local area. During the meeting, Helen challenged the pupils with a recycling task, providing them with a 'Reworked' recycle box for art and crafts. She also provided them with many more ideas to develop their action plan for the next academic year. Our Year 6 and 7 pupils also created some anti-idling posters to encourage drivers to turn off their engines.

Admission

Entry to the school, with the exception of the Early Years Foundation Stage, is dependent upon the availability of places and the successful completion of an entrance assessment. Children entering Nursery and Reception classes are required to achieve a satisfactory assessment during their time in the Reception to progress into Year 1.

PUBLIC BENEFIT STATEMENT

Red House School was founded by a group of parents in 1929, who wished to give their children the very best start in life by providing them with a first-rate education. Since those early days the school has grown and developed, but the underlying principle of providing the highest quality education, still remains true.

Historically, and continuing to the present day, fees have been set at a level below that of other independent schools within the region providing access to a wide spectrum of society. A Bursary Policy has been developed which provides a number of bursaries; up to 100% of fees is available.

The school allows its facilities to be used by a number of outside organisations at reduced or zero rates. These include, Norton ‘Green Market on The Green’, and charity events.

The school educates around 356 pupils who might otherwise be educated by the state.

The school provides teaching practice opportunities for students from local universities and work experience placement for pupils of maintained schools.

In a typical year, Red House has hosted Teachmeet and other collaborative education-based events, enabling teachers from many different schools to come together and share ideas.

Red House is used as an examination centre for home educated children (when required).

A number of teachers within the school are supported in their roles as GCSE and A level examiners and moderators of public examinations.

Red House School has an active Community Action Group, working for the benefit of the local Norton community. In addition, the Junior Schools hosts the monthly Norton ‘Green Market’ on the second Saturday of every month, which attracts over 500 people each month.

Volunteers

The charity benefits from parents and friends supporting the school’s activities and the valuable work done by the PTA.

STRATEGIC REPORT

ACHIEVEMENTS AND PERFORMANCE

We measure our success under a broad number of pupil outcomes.

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Red House School Limited

Report of the Trustees for the Year Ended 31 August 2023

Academic

The 2023 GCSE examination results were outstanding. The headline figures were 47% grades 7-9 (old A/A), 74% grades 6-9 (B-A) and a 99.2% pass rate at grades 4-9 (C-A*). In addition to the excellent academic results, the school is committed to ensuring every child achieves their full potential, and Red House School also has a long tradition of excellent ‘value added’.

The school has a continuous commitment to maintaining full compliance with the requirements set out in the Education (Independent School Standards) Regulations 2014 and Early Years Foundation Stage Statutory Framework.

Red House pupils also had considerable success at all ages when entered for national competitions in 2022-2023, including:

Inspection

The School was inspected by the Independent Schools Inspectorate on 26-28 September 2023 under the new ISI Inspection Framework, which came into effect from 1 September 2023. The School was fully compliant in all aspects of the inspection and met all of the requirements of the new standards, which are as follows:

Principal risks and uncertainties

The Board of Governors and the Senior Management Team (SMT) regularly assesses risks and uncertainties facing the company. These are principally the general economic environment, difficulties faced with planning applications, maintaining adequate financial reserves, recruiting and retaining key members of staff and potential failure of computer hardware or software.

The Board of Governors believe that they have taken adequate steps to mitigate these risks.

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Red House School Limited

Report of the Trustees for the Year Ended 31 August 2023

FINANCIAL REVIEW

Results

The results for the year and financial position of the charity are shown in the annexed financial statements. The charity reported net surplus of funds of £103,648 (2022 – £177,695) and had net assets of £3,741,562 (2022 - 3,637,914).

The charity enjoys the continued support of its bankers because of its very strong net assets position, strong cash flows and its return to reporting net income.

Reserves Policy

The school’s aim is to generate and maintain reserves to ensure the highest standards of education are achieved.

In the longer term, these reserves will allow the school to fund the development of its asset base without recourse to further borrowings. The principal funding source available to the charity is school fee income.

The school will aim to prepare an annual budget based on forecasted revenue and costs with an aim to make a surplus which would increase reserves by £250,000 per annum. This is based on £150,000 reserves for capital projects, £50,000 as a contingency for committed expenditure and £50,000 for cash reserves. The basis of the policy is to endeavour to steadily increase cash reserves by a minimum of £50,000 per annum with a long view to retained reserves covering one term’s committed expenditure.

The school has reserves of £3,741,562 of which £3,739,301 are unrestricted. Further details are given in notes 18 and 19 to the financial statements. The trustees believe that the school has sufficient reserves to continue to provide the high-quality education that our pupils and parents expect.

Incoming resources policy and objectives

Budgetary forecasts are made on an annual basis.

Going Concern

As a result of the recent pandemic, the current war in Ukraine, the cost of living crisis and rising energy costs, and the manifesto promises of the Labour Party related to independent schools, there is much financial uncertainty in the UK. However, the trustees have reviewed the school’s financial position and level of reserves and as a result of this review have a reasonable and proper expectation that the school has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the trustees believe that the going concern basis remains the appropriate basis to prepare these financial statements. The on-going situation will continue to be monitored.

The trustees are satisfied with the performance of the charity.

PLANS FOR FUTURE PERIODS

In 2016, the School made the decision to remain in Norton. The sites have been master planned to determine the best use of the land we have on the Norton site. The improvement of facilities has been considerable in the past few years and includes the following: the addition of an all-weather sports pitch, the ongoing refurbishment of a number of areas in both schools, including, the Dining Hall, the Barn (in the Junior School), the Sports Hall, both staff rooms, classrooms on both sites, the ICT suite, an outdoor classroom in the Junior School, the Music House, the Biology, Chemistry and Physics labs, the Art Studio (which includes a new Dark Room), the EYFS and Year 1 classrooms and communal areas in the Junior School, a new Heads of Year office, two Maths classrooms and one MFL classroom; the Junior School boiler was replaced, and windows were replaced in a number of classrooms in the Senior School.

In the 2022-2023 academic year, we also invested in the following: The Design Technology suite was fully refurbished with new equipment; Computer Science 1 was renovated and new lighting installed; Computer Science 2 had new machines purchased; and new CCTV cameras were installed at the Pupil Entrance.

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Red House School Limited

Report of the Trustees for the Year Ended 31 August 2023

Further plans include:

Priorities for 2023-24 include the creation of a Wellness Studio in the Senior School, the development of an outdoor classroom in the Senior School; and investment in sets of ‘Key Stage’ Chromebooks in the Junior School.

Longer term planning includes:

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, the Memorandum and Articles of Association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

In accordance with the Articles of Association, the affairs of the company are controlled by a council of management consisting of governors. The office of governor is therefore equivalent to that of director for all requirements of the Companies Act 2006, and that of trustee for all requirements of the Charities Act 1993, as amended by the Charities Act 2011.

Board of Governor members can be drawn from the parent body and the wider community and are elected by members of the company at the Annual General Meeting. Up to one quarter of Board members may be drawn from the wider community.

Induction and training of new trustees

New trustees are provided with an extensive package of information relating to the school, including current and historical information and minutes of relevant meetings.

Organisational structure

The Board of Governors is supported by three sub committees: Management, Education and Health & Safety. The full Board of Governors meets twice per term and the sub committees meet at least once per term, to oversee the activities of the charity.

The Head is appointed to manage the day to day activities of the school. Throughout this audit period it was Dr Rebecca Ashcroft.

The trustees set the remuneration of the Senior Management Team, which includes the Head.

Wider network

Red House School is a member of the Association of Governing Bodies of Independent Schools (AGBIS) and the Independent Schools Association (ISA). Both provide support and advice to the school.

Related parties

The charity is not dependent on the support of related parties.

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Red House School Limited

Report of the Trustees for the Year Ended 31 August 2023

Risk management

The trustees have consideration to the major risks to which the charity is exposed and satisfied themselves that systems or procedures are established in order to manage those risks.

Fund-raising

The school does not carry out any significant fund-raising activities for the school’s own funds.

TRUSTEES’ RESPONSIBILITIES

The trustees (who are also the directors of Red House School Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DISCLOSURE OF INFORMATION TO THE AUDITORS

We, the trustees of the charitable company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that:

In approving the Trustees' Annual Report, we also approve the Strategic Report included therein, in our capacity as trustees.

ON BEHALF OF THE BOARD

S M Costigan

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Red House School Limited (A Company Limited by Guarantee)

Independent Auditor’s Report to the Members of Red House School Limited

Opinion

We have audited the financial statements of Red House School Limited for the year ended 31 August 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Page 13

Red House School Limited (A Company Limited by Guarantee)

Independent Auditor’s Report to the Members of Red House School Limited

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 9, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Based on our understanding of the industry, we have considered applicable laws and regulations which may be fundamental to the charitable company’s ability to operate or to avoid a material penalty, and we considered the extent to which non-compliance might have a material effect on the financial statements. We considered management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate manual journal entries to manipulate financial performance, management bias in significant accounting estimates and any significant one-off or unusual transactions.

We discussed among the audit engagement team the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

Audit procedures performed by the engagement team included:

Page 14

Red House School Limited

(A Company Limited by Guarantee)

Independent Auditor’s Report to the Members of Red House School Limited

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidancefor-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Dewing FCCA, FCA - Senior Statutory Auditor For and on behalf of Anderson Barrowcliff LLP Statutory Auditors Chartered Accountants 3 Kingfisher Court Bowesfield Park Stockton on Tees TS18 3EX

……………………………………….

Page 15

Red House School Limited

Statement of Financial Activities

(Incorporating an Income and Expenditure Account) for the Year Ended 31 August 2023

Unrestricted
Fund
Notes
£
Income from:
Charitable activities
2
4,262,315
Other income
3
-
Total income
4,262,315
Expenditure on:
Charitable activities
Educational activities
4
4,158,050
Total expenditure
4,158,050
Net income / (expenditure)
104,265
Net movement in funds
7
104,265
Reconciliation of funds:
Total funds brought forward
18
3,635,036
Total funds carried forward
18
3,739,301		 Restricted
Funds
£
-
-
-
617
617
(617)
(617)
2,878
2,261		 2023
Total
Fund
£
4,262,315
-
4,262,315
4,158,667
4,158,667
103,648
103,648
3,637,914
3,741,562		 2022
Total
Fund
£
4,034,558
3,500
4,038,058
3,860,363
3,860,363
177,695
177,695
3,460,219
3,637,914

The Statement of Financial Activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

Page 16

Registered Number: 00312473

Red House School Limited

Fixed Assets
Tangible assets
Current assets
Stocks
Debtors
Cash at bank and in hand
Creditors:
Amounts falling due within one year
Net current assets
Total assets less current liabilities
CREDITORS
Amounts falling due after more than one year
Net assets
Charity funds
Restricted funds
Unrestricted funds
Unrestricted funds - revaluation reserve
Total charity funds		 Balance Sheet
At 31 August 2023
Notes
12
13
14
15
16
18
18
18		 2023
£
5,075,159
5,075,159
82,622
153,412
1,141,993
1,378,027
(854,109)
523,918
5,599,077
(1,857,515)
3,741,562
2,261
1,403,758
2,335,543
3,741,562		 2022
£
5,158,280
5,158,280
72,654
159,080
1,034,350
1,266,084
(927,755)
338,329
5,496,609
(1,858,695)
3,637,914
2,878
1,299,493
2,335,543
3,637,914

The financial statements were approved and authorised for issue by the Board on 6 November 2023.

Signed on behalf of the board of trustees

V L Duncan

Page 17

Red House School Limited

Cash Flow Statement

for the Year Ended 31 August 2023

Notes
Cash inflow from operating activities
20
Interest paid
Net cash flow from operating activities
Cash flow from investing activities
Payments to acquire tangible fixed assets
Net cash flow from investing activities
Cash flow from financing activities
Capital repayment of long-term loans and finance lease
Net cash flow from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 September
Cash and cash equivalents at 31 August
Cash and cash equivalents consist of:
Cash at bank and in hand
Cash and cash equivalents at 31 August		 2023
£
401,568
(126,116)
275,452
(144,883)
(144,883)
(22,926)
(22,926)
107,643
1,034,350
1,141,993
1,141,993
1,141,993		 2022
£
352,202
(53,443)
298,759
(121,899)
(121,899)
(95,375)
(95,375)
81,485
952,865
1,034,350
1,034,350
1,034,350

Page 18

Red House School Limited

Notes to the Financial Statements for the Year Ended 31 August 2023

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) General information and basis of preparation

Red House School Limited is constituted as a private charitable company limited by guarantee in England and Wales. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charitable company’s operations and principal activities are that of a school.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention as amended by deemed cost. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The aim and use of each restricted fund is set out in the notes to the financial statements.

(c) Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Fees received in advance of education to be provided in future years are held as liabilities until taken to income in the term when used.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees’ Annual Report.

The charity has received donations in respect of capital expenditure. The income is credited to the Statement of Financial Activities when receivable. They are not deferred over the life of the asset.

The notes form part of these financial statements

Page 19

Red House School Limited

Notes to the Financial Statements for the Year Ended 31 August 2023

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued

(c) Income recognition - continued

Grants of a revenue nature are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met, then these amounts are deferred.

(d) Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. All expenditure is categorised as “Expenditure on charitable activities”.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

(e) Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity.

The analysis of these costs is included in note 5.

(f) Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets (with the exception of freehold land), at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:-

Freehold - buildings - 2% on cost Freehold - artificial sports pitch - 8.33% on cost Property improvements - 6.67% on cost Fixtures and fittings - 25% on cost and 15% on cost Motor vehicles - 25% on cost

(g) Stocks

Stocks are stated at the lower of cost and net realisable value. Provision is made for damaged, obsolete and slowmoving stock where appropriate.

(h) Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

(i) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans and finance leases which are subsequently measured at amortised cost using the effective interest method.

The notes form part of these financial statements

Page 20

Red House School Limited

Notes to the Financial Statements for the Year Ended 31 August 2023

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued

(j) Confirmation deposits

Confirmation deposits represent sums received to confirm acceptance of a pupil into the school. They are refundable on leaving education and are held as creditors until that time.

(k) Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

(l) Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of asset is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss.

(m) Leases

Assets acquired under finance leases are capitalised and depreciated over the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors.

Rentals payable and receivable under operating leases are charged to the SOFA on a straight-line basis over the period of the lease.

(n) Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The charity operates a defined contribution plan for the benefit of some employees. Contributions are expensed as they become payable.

Retirement benefits to teachers of the school are provided by the Teachers' Pension Scheme (TPS). This is a defined benefit scheme which is externally funded and contracted out of the State Earnings - Related Pension Scheme. Contributions to the scheme are calculated so as to spread the cost of pensions over employees' working lives with the school in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by qualified actuaries on the basis of valuations using a prospective benefit method. The TPS is a multi-employer scheme and the school is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The TPS is therefore treated as a defined contribution scheme and the contributions recognised as they are paid each year.

(o) Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

The notes form part of these financial statements

Page 21

Red House School Limited

Notes to the Financial Statements for the Year Ended 31 August 2023

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued

(p) Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

(q) Judgements and key sources of estimation uncertainty

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period of the revision, if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.

(r) Government grants

The school received government grants in respect of the Apprenticeship scheme. These grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the school will comply with conditions attached to them. The grants were received using the accrual model.

2 INCOME FROM CHARITABLE ACTIVITIES

School fees
Registration fees
School uniform sales
Catering & other income
Co-curricular activities
The above income is attributable to unrestricted funds.
3
OTHER INCOME
Government grants receivable		 2023
£
3,689,311
4,585
62,685
268,395
237,339
4,262,315
2023
£
-
-		 2022
£
3,570,071
2,275
67,763
267,763
126,686
4,034,558
2022
£
3,500
3,500

Other income was £Nil (2022 - £3,500) of which £Nil (2022 - £3,500) was attributable to unrestricted funds. During the prior year the school received apprenticeship funding.

The notes form part of these financial statements

Page 22

Red House School Limited

Notes to the Financial Statements - continued

for the Year Ended 31 August 2023

4 ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Teaching staff
Educational support costs
Support costs (see note 5)
Catering costs
Uniform costs
Depreciation and loss on disposal of assets
Interest payable
Bank charges
Co-curricular activities		 Educational
Activities
£
2,222,739
867,518
-
118,727
44,389
165,017
126,116
2,031
249,129
3,795,666		 Support
Costs
£
-
-
363,001
-
-
-
-
-
-
363,001		 Total
2023
£
2,222,739
867,518
363,001
118,727
44,389
165,017
126,116
2,031
249,129
4,158,667		 Total
2022
£
2,186,868
787,594
407,381
93,917
47,049
154,249
53,443
1,925
127,937
3,860,363

£617 (2022 - £4,356) of the above costs were attributable to restricted funds. £4,158,050 (2022 - £3,856,007) of the above costs were attributable to unrestricted funds.

5 ALLOCATION OF SUPPORT COSTS

Support cost
Basis of allocation
Governance (see note 6)
Senior management
Allocated on time basis
Admin staff costs
Allocated on time basis
Total
6
GOVERNANCE COSTS
Basis of allocation
Senior management
Allocated on time basis
Admin staff costs
Allocated on time basis
Auditor’s remuneration (see note 8)
Governance
Legal & professional fees
Governance
7
NET MOVEMENT IN FUNDS
Net movement in funds is stated after charging:
Depreciation of tangible fixed assets - owned assets
Depreciation of tangible fixed assets – leased assets
Operating lease rentals		 2023
£
162,632
89,050
111,320
363,001
2023
£
9,894
97,549
12,500
42,689
162,632
2023
£
165,014
-
30,383		 2022
£
173,324
83,934
150,123
407,381
2022
£
9,326
113,511
11,500
38,987
173,324
2022
£
150,673
3,576
31,994

The notes form part of these financial statements

Page 23

Red House School Limited

Notes to the Financial Statements - continued

for the Year Ended 31 August 2023

8 AUDITOR’S REMUNERATION

Fees payable to the charity’s auditor for the audit of the charity’s annual
accounts
Fees payable to the charity’s auditor for other services
Fees payable to the charity’s auditor in respect of the Teachers’ Pension
Scheme		 2023
£
12,500
11,663
1,300		 2022
£
11,500
7,380
1,100

9 TRUSTEES’ AND KEY MANAGEMENT PERSONNEL REMUNERATION AND EXPENSES

The trustees neither received nor waived any remuneration during the year (2022 - £Nil).

The total amount of employee remuneration benefits received by key management personnel is £422,836 (2022 - £419,718).

The trustees did not have any expenses reimbursed during the year (2022 - £Nil).

10 STAFF COSTS AND EMPLOYEE BENEFITS

The average monthly headcount was 81 staff (2022 - 85 staff) and the average monthly full-time equivalent employees (FTE) during the year were as follows:

Charitable activities
Governance
he total staff costs and employees’ benefits was as follows:-
Wages & salaries
Social security costs
Defined contribution pension costs
Defined benefit pension operating costs		 2023
58
3
61
2023
£
2,243,222
208,931
30,285
340,222
2,822,660		 2022
57
3
60
2022
£
2,215,285
207,887
27,141
342,061
2,792,374

The total staff costs and employees’ benefits was as follows:-

The number of employees who received total employee benefits (excluding employer pension costs) of more than £60,000 is as follows:

2023 2022
Number Number
£70,001 - £80,000 1 1

The notes form part of these financial statements

Page 24

Red House School Limited

Notes to the Financial Statements - continued for the Year Ended 31 August 2023

11 INTEREST PAYABLE AND SIMILAR CHARGES

Bank loans and overdrafts
Finance lease		 2023
£
126,116
-
126,116		 2022
£
51,762
1,681
53,443

12 TANGIBLE FIXED ASSETS

Cost or deemed cost:
At 1 September 2022
Additions
Disposals
At 31 August 2023
Depreciation:
At 1 September 2022
Charge for year
Elimination on disposals
At 31 August 2023
Net book value:
At 31 August 2023
At 31 August 2022		 Freehold
property
Property
Improvements
Fixtures
and fittings
£
£
£
4,611,077
889,226
398,698
-
46,351
35,545
-
-
-
4,611,077
935,577
434,243
341,687
140,416
258,618
44,872
59,634
60,511
-
-
-
386,559
200,050
319,129
4,224,518
735,527
115,114
4,269,390
748,810
140,080		 Total
£
5,899,001
81,896
-
5,980,897
740,721
165,017
-
905,738
5,075,159
5,158,280

Included in the deemed cost of land and buildings is freehold land of £2,549,935 (2022 - £2,549,935).

Tangible fixed assets held at deemed cost

The historic cost equivalent of land and buildings included at deemed cost are as follows:-

Cost
Accumulated depreciation
Net book value		 2023
Land &
Buildings
£
2,716,796
(827,821)
1,888,975		 2022
Land &
Buildings
£
2,716,796
(782,949)
1,933,847

Freehold land and buildings above were recognised using previous valuations as deemed cost on transition to SORP (FRS 102).

Details regarding tangible fixed assets pledged as security for liabilities of the charity are shown in notes 15 and 16.

The notes form part of these financial statements

Page 25

Red House School Limited

Notes to the Financial Statements - continued

for the Year Ended 31 August 2023

13
STOCKS
Uniforms
Food
Cleaning products
All stock held is for charitable activities.
14
DEBTORS
Fees debtors
Other debtors
Prepayments & accrued income
15
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR		 2023
£
78,356
2,953
1,313
82,622
2023
£
51,002
72,453
29,957
153,412		 2022
£
66,413
3,350
2,891
72,654
2022
£
49,345
89,630
20,105
159,080
Bank loans & overdrafts
Trade creditors
Other tax & social security
Other creditors
Fees in advance
Confirmation deposits received
Accruals & deferred income		 2023
£
78,712
7,428
51,549
63,738
562,709
8,000
81,973
854,109		 2022
£
92,658
120,384
66,503
42,685
579,120
5,600
20,805
927,755

Bank loans and overdrafts totalling £1,865,227 (2022 – £1,888,153) are secured by a first legal mortgage over all the freehold property and a mortgage debenture over all the charity’s assets.

16 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans & overdrafts
Confirmation deposits received		 2023
£
1,786,515
71,000
1,857,515		 2022
£
1,795,495
63,200
1,858,695

Bank loan terms of repayment are over 48 months and interest is payable at 2.5% above the bank’s base rate.

Bank loans and overdrafts totalling £1,865,227 (2022 – £1,888,153) are secured by a first legal mortgage over all the freehold property and a mortgage debenture over all the charity’s assets.

The notes form part of these financial statements

Page 26

Red House School Limited

Notes to the Financial Statements - continued

for the Year Ended 31 August 2023

17 LEASES

(a) Operating leases – lessee

Total future minimum lease payments under non-cancellable operating leases are as follows:

Not later than one year
Later than one and not later than five years
FUND RECONCILIATION
Unrestricted funds
Balance at 1
September 2022
£
Unrestricted
1,299,493
Revaluation reserve
2,335,543
3,635,036
Restricted funds
Balance at 1
September 2022
£
Capital fund
2,878
2,878		 Income
£
4,262,315
-
4,262,315
Income
£
-
-		 2023
£
31,522
16,833
48,355
Expenditure
£
(4,158,050)
-
(4,158,050)
Expenditure
£
(617)
(617)		 2022
£
31,522
18,670
50,192
Balance at 31
August 2023
£
1,403,758
2,335,543
3,739,301
Balance at 31
August 2023
£
2,261
2,261		 2022
£
31,522
18,670
50,192
Balance at 31
August 2023
£
1,403,758
2,335,543
3,739,301
Balance at 31
August 2023
£
2,261
2,261
2,261

18 FUND RECONCILIATION

Restricted funds

Fund descriptions

The unrestricted funds represent the cumulative net income and expenses of the charity.

The revaluation reserve represents the effect of the revaluation of land and buildings at the date of transition to SORP (FRS 102)

(c) Restricted funds

Capital fund:

This represents a donation of £3,800 towards the sports pitch and a £2,000 donation from the PTA towards the cost of a piano. Transfers will be made from the fund to offset depreciation charged on these assets.

The notes form part of these financial statements

Page 27

Red House School Limited

Notes to the Financial Statements - continued

for the Year Ended 31 August 2023

19 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted
funds
Restricted
funds
£
£
Fixed assets
5,072,898
2,261
Current assets
1,378,027
-
Current liabilities
(854,109)
-
Creditors more than one year
(1,857,515)
-
Total
3,739,301
2,261
RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM
OPERATING ACTIVITIES
2023
£
Net income for year
103,648
Interest payable
126,116
Depreciation and loss on disposal of fixed assets
165,017
Increase in stock
(9,968)
Decrease/(Increase) in debtors
5,668
Increase/(Decrease) in creditors
11,087
Net cash flow from operating activities
401,568
ANALYSIS OF CHANGES IN NET DEBT
Balance at 1
September
2022
Cash flow

£
£
Cash and cash equivalents
Cash at bank and in hand
1,034,350
107,643
Debt
Debts falling due within 1 year
(92,658)
13,946
Debts falling due after 1 year
(1,795,495)
8,980
(1,888,153)
22,926
(853,803)
130,569		 Total
£
5,075,159
1,378,027
(854,109)
(1,857,515)
3,741,562
2022
£
177,695
53,443
128,953
(847)
(7,456)
(24,882)
352,202
Balance at 31
August
2023
£
1,141,993
(78,712)
(1,786,515)
(1,865,227)
(723,234)		 Total
£
5,075,159
1,378,027
(854,109)
(1,857,515)
3,741,562

20 RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

21 ANALYSIS OF CHANGES IN NET DEBT

22 PENSIONS AND OTHER POST-RETIREMENT BENEFITS

(a) Defined contribution pension plans

The charity operates a defined contribution pension plan for some employees. The amount recognised as an expense in the year was £30,285 (2022 - £27,141).

The defined contribution liability is allocated to unrestricted funds.

The notes form part of these financial statements

Page 28

Red House School Limited

Notes to the Financial Statements - continued

for the Year Ended 31 August 2023

22 PENSIONS AND OTHER POST-RETIREMENT BENEFITS - continued

The teachers of the school belong to the Teachers’ Pension Scheme England and Wales (TPS). The scheme is a defined benefit scheme. The total pension cost was £340,222 (2022 - £342,062). At the year-end contributions of £39,988 (2022 - £41,005) were outstanding at the balance sheet date.

INTRODUCTION

The Teachers' Pension Scheme (TPS or scheme) is a statutory, unfunded, defined benefit occupational scheme, governed by the Teachers' Pensions Regulations 2010 (as amended), and the Teachers’ Pension Scheme Regulations 2014 (as amended). These regulations apply to teachers in schools and other educational establishments, including academies, in England and Wales that are maintained by local authorities. In addition, teachers in many independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher education may be eligible for membership.

Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS.

THE TEACHERS' PENSION BUDGETING AND VALUATION ACCOUNT

Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and Public Service Pensions Act (2013) and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a ’pay as you go ‘basis – contributions from members, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Acts.

The Teachers' Pensions Regulations 2010 require an annual account, the Teachers' Pension Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pension increases). From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return.

VALUATION OF THE TEACHERS' PENSION SCHEME

As a result of the 2016 scheme valuation employer contributions were increased in September 2019 from a rate of 16.4% to 23.6%. Employers also pay a charge equivalent to 0.08% of pensionable salary costs to cover administration expenses.

As a result of the latest scheme valuation dated 26 October 2023 it is indicated that employer contributions will be increased to 28.6% from 1 April 2024.

A copy of the latest valuation report can be found by following this link to the Teachers’ Pension Scheme website

23 RELATED PARTY TRANSACTIONS

Information about related party transactions and outstanding balances is outlined below:

Outstanding Balances
Expenditure (Trade creditors)
£ £
Agne Limited - a company of which Mr S Costigan is a director
At 31 August 2023 6,140 -
At 31 August 2022 3,357 -

The expenditure of £5,433 (2022 - £3,357) relates to marketing costs and £707 (2022 - £Nil) relates to stationery, printing and signage.

The notes form part of these financial statements

Page 29

Red House School Limited

Notes to the Financial Statements - continued for the Year Ended 31 August 2023

24 FINANCIAL INSTRUMENTS

The carrying amounts of the charity’s financial instruments are as follows:

2023 2022
£ £
Financial liabilities
Measured at amortised cost
- Bank loans (see notes 15 and 16) 1,865,227 1,888,153
- Obligations under finance leases - -
1,865,227 1,888,153
The expenses attributable the charity’s financial instruments are summarised as follows:
2023 2022
£ £
Expenses
Financial liabilities measured at amortised cost
Bank loan interest (126,116) (51,762)
Finance lease - (1,681)

The notes form part of these financial statements

Page 30