## Annual Review
For the Year Ended 31 July 2022 Registered Charity Number: 527578
## Contents
|Contents||
|---|---|
|Reference and Administrative Information|3|
|At a Glance|5|
|Chairman’s Statement|10|
|Headmaster’s Statement|12|
|Aims and Objectives|14|
|Strategies and Plans|15|
|ESG | Environmental Report|20|
|ESG | Social Report|22|
|ESG | Governance Report|27|
|Achievements and Performance Review|43|
|Fundraising|Donor Impact Report|62|
|Alumni Engagement|65|
|Financial Review|68|
|Treasurer’s Report|68|
|Chief Operating Offcer’s Report|72|
|Independent Auditor’s Report|75|
|Group Statement of Financial Activities|78|
|College Statement of Financial Activities|79|
|Group and College Balance Sheets|80|
|Group Statement of Cash Flows|81|
|Notes to the fnancial statements|82|
Annual report and financial statements for the year ended 31 July 2022
## Reference and Administrative Information
## **Charitable objects**
Elected Councillors: The Governors The Governors
## **President and visitor**
> Elected Councillors: The Governors The Governors **Registered address**
> of the Corporation elect ten **and principal office:** Councillors. The two longest-serving Malvern College retire on rotation each year and can be College Road re-elected. Malvern Worcestershire Co-opted Councillors: The Council The Council WR14 3DF
The primary object of the College, as stated in the Royal Charter, is: “to carry on at Malvern or elsewhere a School for Boys and Girls or for children of either sex in which they may receive a sound religious, classical, mathematical, scientific and general education in conformity with the principles and doctrines of the Church of England.”
Co-opted Councillors: The Council The Council may appoint between six and ten Councillors for a five-year term.
## **Independent Auditor:**
The above is a summary. Full details of the Constitution are specified in the Bye-Laws in The Royal Charter.
Crowe U.K. LLP 4[th] Floor, St James House St James Square Cheltenham Gloucestershire GL50 3PR
## **The Right Rev’d Dr John Inge**
The Lord Bishop of Worcester
## **Constitution of the Council**
## **Officers & key management personnel:**
Nominated Councillors: the following may each nominate one Councillor for a five-year term:
## **Status and administration**
Headmaster – A K Metcalfe Esq
Malvern College is incorporated under Royal Charter originally granted in 1929, together with a Supplemental Charter granted in 1992. It is registered with the Charity Commission in England and Wales under charity registration number 527578.
- » The Lord Lieutenant for each of the Counties of Gloucestershire, Herefordshire and Worcestershire;
Chief Operating Officer & Clerk to the Council – R A M Breare Esq
## **Bankers:**
Lloyds Banking Group PLC Senior Deputy Head – 48 Belle Vue Terrace Mrs S G Angus Malvern Worcestershire Deputy COO & Group Finance WR14 4QG Director – Mrs N R Roberts
- » The Vice-Chancellors of each of the Universities of Oxford, Cambridge and Birmingham;
- » Each of the Boards of the Admiralty, the Army and the Royal Air Force; and
## **Lawyers:**
- » The Headmaster or Headmistress and Assistant Masters and Mistresses.
Veale Wasbrough Vizards Narrow Quay House Narrow Quay Bristol BS1 4QA
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
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Reference and Administrative Information
## **Council Membership During the 2021-22 Financial Year**
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Council Member Appointed by Committees Joined/Resigned
Chairman Mr Robin Black Governors 1,4,5,7,10
Vice-chair Miss Sue Duff Governors 1,4,5,7,10,11,12
Treasurer Mr Carey Leonard Council 1,2,4,5,8,9,10
Mr Charles Barwell OBE Council 6,13
Mr Roger Brierly Council 7,9
Mr Nicholas Engert Air Council 13, H&S
Mrs Christine Fairchild Governors 13
Mr Paul Nicholls Governors 6
Mrs Louise Penrice Council 10
Dr Dominic Sandbrook Lord Lieut. of Worcestershire 7
Tim Straker KC Governors 1,4,5,6,13
Mr Andrew Trotman Governors
Mr Ben Walker Council 10
Mr Tom Whittaker Governors 2
Mr Andy Collins Governors 3 16.03.22
Mr Kaspar Hartmann Governors 22.02.22
Joined 2021-22
Mr Stuart King Governors 5,8 02.03.22
Mrs Catherine Mangan University of Birmingham 7 11.09.21
Mrs Fiona Bridge Army Board 04.12.21
Mr Felix Francis Council 31.05.22
Resigned
during 2021-22 Mr Angus Kennedy Council 04.02.22
Mrs Sue Raby-Smith Admiralty 04.12.21
Clerk to Council Mr. Robert Breare Council
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## **Committees**
1. Management Board
2. Audit Risk & Compliance Committee 3. Safeguarding Committee 4. Nominations Committee 5. Remuneration Committee
6. Foundation & Property Committee 7. Malvern College School Board 8. The Downs Malvern School Board 9. Abberley Hall School Board
10. Malvern College International Ltd
11. Malvern College Enterprises Ltd
12. College Guardians Ltd
13. The Malvernian Society
## At a Glance
**The Malvern College Family of Schools**
**How we work together – The Malvern Qualities**
## **What we do**
We instil and nurture within our pupils emotional and cultural intelligence; to develop core skills, qualities and intellectual curiosity; and to facilitate the attainment of the qualifications our pupils need.
> and cultural intelligence; to develop core skills, Resilience qualities and intellectual curiosity; and to facilitate
> the attainment of the qualifications our pupils need. Self-Awareness Open-Mindedness **Why we do it**
> So that they become happy, balanced and Kindness successful individuals who achieve personal fulfilment, determined and able to make a positive Collaboration contribution to the world they go out into. Integrity **Where we do it** We are one family, in four countries with nine schools. Risk-Taking » Malvern College is at the heart of our family, based in Great Malvern, UK. Curiosity » Our two UK prep schools, The Downs Malvern and Abberley Hall, are based close by. Ambition » The family includes franchise international schools
> in China (Chengdu and Qingdao) and Hong Kong, Humility Egypt and Switzerland. Independence
## **Who we are**
- A global community of more than 4,400 pupils, 1,630 staff, and more than 11,800 alumni.
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
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At a Glance
## **The Malvern College Family of Schools**
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Entities Pupils & Staff*
1. Malvern College
Malvern College
2. Malvern College Enterprises Ltd
Group accounts (consolidated) Educating c.800 pupils
3. Malvern College International Ltd
4. Abberley Hall Ltd
The above 4 entities plus:
1. The Downs, Malvern College Prep
Malvern College’s UK family School Ltd (merged with the College
Educating c.200 pupils
(not consolidated) from 1 [st] November 2022)
2. The Malvernian Society Ltd
3. Abberley Hall Enterprises Ltd
Franchise international schools
operating in:
Malvern College’s International family
1. China & Hong Kong (4) Educating 3,375 pupils
(not consolidated)
2. Egypt (1)
3. Switzerland (1)
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More than
4,400 pupils
Taught by over
1,630
staff
On 9
campuses
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
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## **The Malvern College Family of Schools** 2021-22 Year in Numbers
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Malvern College:
Pupils: c.4,400
» Boys: 50%
» Malvern College: 659
» Girls: 50% Staff: c.1,630
» Prep Schools: 365
» Boarders: 78%
» International schools: 3,375
» Day: 22%
Alumni, past staff and past parents: 11,800 College Guardians care for:
* On the database 1,262 pupils
Malvern College’s UK family
Contribution from trading subsidiaries (Enterprises, Fundraising income
Total concessions: £4.6m
College Guardians and International): £2.2m (The Malvernian Society): £0.4m
Pupils with means-tested
Total Operating Costs: £29.0m Gross fee income: £31.0m
financial assistance: 120
Malvern College:
Meals catered: 1+ million IB Results: 37 average Bednight lets in the holidays: 6,020
A-levels: 74% A*-B
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At a Glance
## **2022 Academic Results**
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IB
37
32
40%
34%
GCSE
A levels
IGCSE
37 Malvern College average score Malvern College average score 43% achieved A*/A grades 63% achieved grades 9-7
32 worldwide average scoreworldwide average score 71% achieved A*-B grades 80% achieved grades 9-6
2022 five year average five year average
40% achieved 40+ points in 2022 achieved 40+ points in 2022 2022 2022
34% achieved 40+ pointsachieved 40+ points 2022 2022
Malvern College five year average
44% achieved A*/A grades achieved A*/A grades 62% achieved grades 9-7
pupils achieved 45/45
74% achieved A*-B grades achieved A*-B grades 81% achieved grades 9-6
2022 cohort 2022 cohort
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**63% achieved grades 9-7 80% achieved grades 9-6** five year average
**37 Malvern College average score Malvern College average score 32 worldwide average scoreworldwide average score** 2022
**40% achieved 40+ points in 2022 achieved 40+ points in 2022 34% achieved 40+ pointsachieved 40+ points** Malvern College five year average
**44% achieved A*/A grades achieved A*/A grades 62% achieved grades 9-7 74% achieved A*-B grades achieved A*-B grades 81% achieved grades 9-6** 2022 cohort 2022 cohort
**2 pupils achieved 45/45**
**2 pupils achieved 44/45** 2022 cohort
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UNIVERSITY
77% took their first choice
university
64% received offers to
Russell Group Universities
2022 cohort
Of the QS World University
Top 10 Rankings*, Malvern
pupils are taking places at
top ranked global universities
18% applications made to
international universities
9% applications made to US applications made to US
universities
13% gained places at non-UK gained places at non-UK
universities
2022 cohort
* 2022 rankings: University of Oxford, University
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**pupils gained WHICH places at 1 7 UNIVERSITY? NON-UK Oxford UNIVERSITIES Cambridge Chicago Russell Group Universities: TU Delft Birmingham New York Bristol Maastricht Durham Hamburg Edinburgh Exeter Imperial King’s College London pupils gained London School of Economics 5 places at Manchester Newcastle Nottingham SPECIALIST HE UCL** Wildlife Media **Warwick** Music Business Management **Others:** Interior Architecture **Bath** Equine Behaviour and Welfare **Loughborough** Flying Helicopters **St Andrews** 2022 cohort 2022 cohort
Of the QS World University Top 10 Rankings*, Malvern pupils are taking places at **5/10** top ranked global universities
**international universities 9% applications made to US applications made to US universities 13% gained places at non-UK gained places at non-UK universities** 2022 cohort * 2022 rankings: University of Oxford, University of Cambridge, Imperial, UCL, University of Chicago
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70 17% Instructing
Pro Sport
Arts
CHOSE Own Business
Over 70 courses studied
Overseas
from Architecture to Zoology OTHER
Coaching
Gap Year
ROUTES
In 2022, 2 pupils gained
places to study Medicine
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MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
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## Chair’s Statement
My congratulations to the pupils and staff across the Malvern College Family of Schools for all their achievements. In what was a remarkably resilient year, despite all the external challenges, we are now developing exciting plans for the future.
It has been wonderful to see all our schools return to normal following two years of the pandemic, with so many face-to-face activities, highlights of which you can read about in this report. Congratulations, especially, to the College’s Upper Sixth for an outstanding set of IB and A-Level results and for all those in Year 8 leaving The Downs Malvern to their secondary school of choice.
The prep school market is challenging, and we are continuing to see prep school re-alignment and consolidation in the sector. Despite a number of years of strategic, financial and operational support, Abberley Hall continues to make a deficit. Its ability to achieve a break even position is highly challenging with the compound effect of future utility cost rises, a tough prep school market and an ageing estate. Accordingly, despite the extraordinary efforts of the Abberley Parent Group, the College made the difficult decision in late 2022, that it would not continue to provide funding to the school beyond the 2022/23 academic year unless supported by a parents’ led fundraising. Sufficient funding for the future was subsequently unable to be secured and very sadly the school will be closing in July 2023. In the event of any surplus arising from an eventual sale of the property assets, this will be applied to a bursarial
Operationally, the core College has returned a strong EBITDA of £0.8m (inclusive of Malvernian Society concession and capital project grants), supplemented by a further £2.2m of contribution from our commercial and international school operations.
fund to support the education
of pupils.
The Downs Malvern remains a vital part of the Malvern College Family. Whilst it made a deficit in the year, it continues to provide a strong pipeline of pupils into the College and secures an outstanding educational journey from 2-18. Following the appointment of Andrew Nuttall as the new Headmaster, the School has a renewed energy and focus under his leadership and we are confident this will drive growth in the school over the coming years. The formal consolidation of The Downs Malvern into the Malvern College charity was completed in November 2022, post year end.
The rapid growth of our international schools continues and, together with our franchise partners, we have been delighted by the continued enrolment growth of our current schools and we are looking forward to opening Malvern College Tokyo in September 2023.
There continue to be significant economic and growing political pressures with rising costs and fees, exacerbated by the Russia-Ukraine conflict. We expect an ongoing and increasing need for financial support for families and will be placing continued emphasis on our fundraising efforts to provide means-tested bursaries.
Sustainability is expected to play an ever-greater
role in our forward looking strategies and plans. As well as the moral and educational imperatives, our sustainability plans will be central to future energy cost control, and in preparing for future energy efficiency regulation and requirements that will certainly be put in place in the future. The management team will be focusing on finalising a sustainability masterplan during the 2022-23 year. This will run alongside a wider master planning exercise to identify and phase our capital development and fundraising plans over the coming decade.
Council’s focus going forward is to ensure that the Malvern College Family is brought ever closer together, which is vital educationally but also strategically, and that it has the resources required for the intended growth. This will require adaptations to governance and structures, including a review of the Royal Charter and the consolidation of the educational charities alongside the Malvernian Society under the umbrella of the Corporation.
**Robin Black**
Chair, Malvern College Council
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
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## Headmaster’s Statement
Both the Autumn 2021 and Lent 2022 Terms began with the shadow of Covid still hanging over schools, but with excellent numbers in the College.
Other areas of focus through the Autumn Term were the strengthening of the Malvernian Society team within the College’s employment structure to encourage greater collaboration and synergy of purpose through the engagement of parents and alumni, aided by the return of some of the major school events that had to be imaginatively and often ‘virtually’ staged during Covid: Remembrance, School Musical and College Carol Services.
There was also a pre-term furniture removals procedure that needed to be undertaken to return beds from the ‘quarantine house’ to the boarding houses whence they had come. Once completed, and with a very full school, the ability increasingly to return to full audiences at performances and spectators at fixtures, was really appreciated by the whole community.
A successful ISI Compliance Inspection in October was a positive confirmation that the College was wellrun, that pupils were healthy and safe, and thus, able to thrive. However, as with all thorough processes, this was also a good chance to consider areas for further development and in particular, steps have been taken on the back of the inspection in refining and clarifying roles and procedures within our Health, Safety, Fire and Risk Audit systems.
In January 2022 the suicide of an Upper Sixth pupil on the first weekend led to a heavy shadow enveloping the school for much of the first half of the Lent Term. The College was extremely well supported by both external and internal professionals and a sensible and ultimately positive review of the College’s safeguarding, counselling and well-being procedures was undertaken. The pressure that many pupils have been under having had to work through Covid and
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Commem Chapel Service
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in preparation for their first exams for a number of years, together appeared to be contributing factors to a number of significant pastoral concerns for our older pupils.
In March, a weekend dedicated to the Commemoration of the College brought many OMs back to the school for AGMs, a formal Chapel Service and a grand lunch, as well as to partake in ‘The Ledder’ (an 11km trail run over the Malvern Hills that has been taking place for over 100 years), provided the opportunity to launch the 10 Year Estates Masterplan that aims to develop a series of spaces of intellectual and creative inspiration throughout the College’s existing and magnificent buildings - re-imagining and renovating rather than building from scratch.
The Summer Term saw a return to formal exams, a welcome re-introduction of the International Schools Leaders Conference, hosted at the College, and a grand celebration of our pupils’ achievements in an end of term Speech Day and Prizegiving. During this term and at the end of my third year as Head, I was appraised as part of the HMC Head’s review process, and found this a very useful process giving clear direction to me personally, but also, through the wide variety of feedback from a full range of sources, on necessary directions of travel for the wider leadership team and the College.
Lessons learnt from the year include the value of high quality communication, strong and coherent management structures and the need for the repeated and clear stating of the College’s vision. The year just gone and the achievements, activities and our recent Leavers, demonstrate that Malvern does what it sets out to do: it is a school which has a strong academic core, supported by wide and varied super- and co -curriculums that develop pupils holistically, and underpinned by excellent pastoral support. Our pupils do achieve the qualifications they need, they develop the emotional and cultural intelligence, and range of skills and qualities that ensure they can live fulfilled and successful lives as they go out into the world beyond the College.
**Keith Metcalfe** Headmaster
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## Aims and Objectives
Objectives
## Core objects
## Aims
1. Facilitate the attainment of the qualifications pupils need.
1. To enhance the Malvern College Family of Schools’ national and international reputation.
1. To carry on at Malvern in the County of Worcester or elsewhere a School for Boys and Girls or for children of either sex in which they may receive a sound religious classical mathematical scientific and general education in conformity with the principles and doctrines of the Church of England.
2. Instil and nurture emotional and cultural intelligence.
3. Develop core skills, qualities and intellectual curiosity.
2. To secure long term financial sustainability.
## 5-Year Goals
**2026**
2. To create and administer and to assist in the creation and administration of scholarships exhibitions and prizes for the encouragement of study and learning and to act as trustees of any endowment legacy bequest or gift for educational purposes.
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1 Family of £5-10m increase £4m
Schools with
in the Society Surplus
endowment fund [*]
6,800 pupils EBITDA
8 International schools 1 Consolidated charity
(+1 partner, +3 countries, for UK schools
+2 schools, +1,500 pupils) (+ 100 pupils)
* alongside development funds for the College
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## Strategies and Plans
## **Education strategies:**
## **2. Co-curricular and**
## **1. Academic and Intellectual:**
## **Personal Development:**
Unashamedly an academic school, but determinedly not a hothouse.
Intentional holistic education; encouraging creative and sporting endeavour; promoting individual and collaborative participation to:
- 1.1. Strong and varied core-curriculum:
- » FY (Year 9): focused on engagement and experience; developing core and transferable skills with highlights including cross-curricular projects, CCAs and FY passport
- » GCSE (Years 10-11): breadth of choice and experiences
- 2.1. provide opportunities for skill development and intellectual engagement at all levels (from elite to purely participatory) across art, drama, design technology, music, sport, CCF and outdoor pursuits
- » IB and A level (Years 12-13): catering to the individual; delivering choice and a variety of subjects and skills
- 2.2. provide opportunities for responsibility, service and leadership (e.g. through D of E, CCF, Service, school partnerships and expeditions)
- » excellent exam results and first-class preparation for university applications in UK, North America and Europe
- 1.2. Pupil-led super-curriculum: » encourages pupils to develop in the areas that interest and inspire them; challenging them to think and create their own intellectual pathway
- » provides opportunity for pupil leadership, ownership, innovation and collaboration; developing pupils’ transferable academic skills: research, logistics, marketing etc
- » preparing them for university or degree apprenticeships, and future careers.
- And through these:
- » promote and instill an understanding of physical and mental health, and well-being
- » intentionally promote the development of core values (Malvern Qualities) such as resilience, collaboration, ambition and open-mindedness
- » develop positive transferable skills that give pupils the confidence to lead and to serve
- » develop a sense of self and responsibility towards others, ensuring emotional and cultural intelligence are developed alongside intellectual intelligence.
## **3. People, Pastoral Care & Boarding:**
The underpinnings of happy and healthy young people. A secure and supportive environment where:
- 3.1. Houses are a familial ‘home from home’, forming ideal settings where communities support each other
- 3.2. each pupil is known and supported, confident to discover their strengths and plot their individual pathway
- 3.3. well-being is a core focus with safeguarding at the centre
- 3.4. opportunities for responsibility, service and leadership, and the development of the Malvern Qualities, equip pupils to seek opportunities and overcome life’s challenges
- 3.5. pupils are encouraged to reflect on the value of diversity, inclusivity and equality
- 3.6. parental and alumni engagement promotes life-long relationships with and support for the College.
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Strategies and Plans
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Staff planning reflects
the value of diversity,
inclusivity and equality
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## **Operations strategies:**
## **1. Business Planning, Finance and Development:**
To achieve financial sustainability across the group at an overall surplus level, generating substantial non-fee income from fundraising, franchising and other commercial activities that can be invested in transformational bursaries and
campus developments.
- Goals: (i) £4m MCFS EBITDA, (ii) College Concessions at 14.5% of gross fees, (iii) £3m surplus from commercial activities, (iv) £1m net contribution from development
- a. fee inflation to remain at or below CPI, and absolute
- fees to be line with the median for direct peers.
- b. greater means-tested concessions, focused on securing families in the local and domestic market
- c. leverage economies of scale across the family of schools to generate purchasing efficiencies
- d. investment in forward-looking 10+ year campus masterplans that (i) deliver a transformational education experience (ii) approach carbon neutral and (iii) maximise commercial income
- e. renewed focus on fund-raising and investment management as an important income stream
- f. explore raising additional long term capital and/or bond finance to enable the College to accelerate its capital expenditure and sustainability targets
- g. expansion of overseas franchise opportunities and diversification of partners and locations/continents
- h. investment of 25% of MCIL net-income into an endowment fund for transformational bursaries
- i. develop further the College’s commercial activities with focus on expansion of Summer Programmes.
- j. ensure Net Debt is kept within the range of
- £3m-£5m or lower
## **2. Operations:**
- To create a fit-for-growth operations capability that adds value across the family of schools by providing services that are tailored to individual needs and identities
- a. structure and resource our operations teams to meet the needs of both the College and the wider family of schools, driving efficiencies through the sharing and application of best practice
- b. support and develop staff through good management and appraisals, clarity of communication and ongoing professional development
- c. invest in payroll, HR and admissions systems that can work across schools and which enable efficiencies and improved decision making
d. ensure our digital infrastructure (virtual and real) keeps pace with fast-changing technologies and needs, whilst maintaining the highest levels of cyber security and protection
- e. staff planning reflects the value of diversity, inclusivity and equality
## **3. Marketing, Admissions and Brand:**
- To attract, retain and satisfy the needs of customers who can afford to pay for a ‘Malvern’ education. To exploit the advantages of a growing family of schools and to develop further our links with parents and alumni
- a. continue to modernise, improve and develop the Marketing, Communications and Admissions strategy and tactical activities, both at the College and at the associated family of schools
- b. enhance customer awareness and understanding of the concept of a Malvern Education and the unique journey pupils follow at Malvern and its associated schools
- c. development of a global brand which supports the strategic objective for growth and positions Malvern College as a leading global provider of education which attracts pupils who will benefit from a Malvern education and top quality academic and operational staff.
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Strategies and Plans
## **4. Governance:**
Monitor, develop and improve governance, leadership and performance management across the College and Malvern Family to ensure coherence and consistency of excellence across all entities within the corporation
- a. develop a sustainable long-term strategic plan alongside a review of our corporate governance in general and the Royal Charter in particular
- b. provide the resources required to enable the Schools to meet their educational, financial, legal and charitable objectives
- c. ensure that the various Committees, Boards and Trustee memberships of all entities within the ‘Trust’ are structured and led optimally to develop effective Governance and oversight
- d. appropriate measures and oversight are in place to ensure diversity, inclusivity and equality
## **5. International Schools:**
- To seek out and develop further growth internationally, both with existing partners and, where appropriate, with new educational partners, ensuring a greater spread of schools globally, and where possible, in first tier cities.
The short-term plans that were enacted in the year to achieve these objectives were:
- » To develop balanced and meaningful enrichment and stretch opportunities for all year groups and increase participation.
- » To build upon the departmental appraisal process by following up findings and setting specific targets for both the department and the individuals within it.
- » To further develop a range of pupil-led societies that engage all pupils through a broader range of choices and effective communication.
- » To operate throughout the year with tight control on costs and a thorough and successful pupil recruitment strategy.
- » To review bursary levels and other public benefit contributions by the College continually.
- » To develop the marketing and admission function
- and enhance marketing communications.
- » To provide the resources required to enable the College to meet its educational, financial, legal and charitable objectives.
The strategies, objectives and plans are included in the College Development Plan. The Plan is reviewed and updated by the College Senior Management Team to ensure that the objectives are being achieved. The fundraising activities are undertaken by the College Development Office in conjunction with the Malvernian Society. The College Management Board and Council reviews the progress of fundraising and future strategies and targets.
## **Plans for future periods**
The College Council and Management Board formally reviews the 10-year plan annually. The specific objectives for the coming year include:
- » Widen profile of IB cohort and increase IB numbers to achieve greater balance between IB and A level numbers. Adapt (I)GCSE curriculum to provide greater flexibility through a 9 GCSE +1 option model.
- » Development of clear strategies for ICT in Teaching
- & Learning, and Academic Literacy.
- » Embed Director of Collaboration and Innovation role within MC’s Super-Curriculum leadership, and begin to develop role and initiatives across MCFS.
- » Appointment of Mental Health Lead and develop strategy, including embedding integrated counselling model.
- » Develop and support leadership and management skills of line managers.
- » Introduction of online systems to improve efficiency in operations.
- » To facilitate greater sharing and application of best practice across the family of schools to build personal and team excellence.
- » To improve the bursary application process by introducing bursary management software.
- » To continue with the boarding house refurbishment plan.
- » To continue to explore opportunities to extend our international schools programme.
Future plans are focused on the strategic development of the family, whilst capital expenditure plans focus on the continuation of the Boarding House refurbishment programme and improved environmental sustainability. The strategic aims and goals for the medium term are to provide excellent education, secure the College’s long-term financial strength and to enhance our national and international reputation.
## **Risks and uncertainties**
- The greatest risks currently facing the College are: 1. Accelerating inflation (especially electricity and gas prices) and associated increases in Bank of England base rates together with potential economic recession.
2. Further increases in employer contributions to the Teacher Pension Scheme (TPS)
3. Geopolitical tensions and subsequent impact on International Schools and on wider inflation.
4. Future ‘Green’ investments that will be needed to keep up with statutory requirements.
5. Political pledges/threats of loss of charitable tax benefits.
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## | Environmental Report
## **Context**
Our goal is to reach Carbon Net Zero at the latest by 2050. Malvern College enjoys an exceptionally beautiful heritage estate, first founded in 1865, but the predominantly Victorian buildings are in need of significant upgrades to bring them closer to modern energy efficiency standards.
Addressing environmental sustainability at the College is driven by multiple imperatives:
1. Playing our part to address climate change
2. Providing an appropriate ‘environmental role model’ to pupils
3. Reducing The College’s energy consumption costs (and exposure to fluctuations)
## **Current sustainability initiatives**
**Biodiversity:** 210 acres of the 250 acre estate is green. 1,700 specimen trees and 80 new trees, along with 1,000 hedge whips, have been planted. The area known as ‘9 Acre’ has been largely returned to meadow, with 4 acres of wildflowers. Across the College there are 3 sedum roof coverings.
**Facilities:** Daylight and motion sensitive LED lighting programme has been implemented. 70% of our 97 boilers are SEDBUK rated ‘C’ or above. Electric car charging points are in place, 51 bikes have been purchased in the Cycle-to-work-Scheme, and these along with our day pupil transport scheme and significant on-site accommodation for staff, notably reduces road transport.
**Waste:** All waste is streamed into three recycling stations and 100% of cementitious, arboricultural and land waste is reused on campus. Central catering production waste is turned into fertiliser pellets and cooking oil is recycled.
**Pupil engagement:** A pupil ‘Environmental Action Group’ meets regularly to identify potential for waste reduction and to identify other potential initiatives for both pupils and staff to undertake.
## **Carbon footprint**
## **Annual Electricity & Gas Consumption**
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1,600,000 180,000
1,400,000 160,000
1,200,000 140,000
120,000
1,600,000
100,000
800,000
80,000
600,000
60,000
400,000 40,000
200,000 20,000
0 0
Electricity (kWh) Gas (kWh)
Annual Electricity & Gas Carbon Emissions
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Electricity Emissions (KgCO2) Gas Emissions(KgCO2)
January February March April May June July August September October January December
January February March April May June July August September October January December
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During the 2021-22 year, we engaged Sol Environment to do an initial Carbon footprint review of the College with the following results:
- » **Total Energy Use Per Annum**
- Gas Use — 9,378,573 kWh
- Electrical Use — 1,375,631 kWh
- Fuels — 104,999 Miles
- » **Tonnes of CO e 2**
- Gas Use — 1,889 tCO2e
- Electrical Use — 263 tCO e 2
- Road Fuels — 20 tCO e 2
- Total - 2,172 tCO2e
**Scope 1 Emissions:** 1,909 tCO2e
**Scope 2 Emissions:** 263 tCO2e
## **Future plans**
In 2022-23 we are engaging a Mechanical &
Engineering Consultancy to do an in depth review of the College estate and to recommend priorities for investment. From this we expect to create a 10-year sustainability masterplan. In the meantime, we are continuing with small-scale, high impact projects such as moving to re-usable water bottles, improving the culture of turning lights off when a room is not in use, and providing recycling bins across all facilities. In 2022-23 we plan a Giving Day to launch a Green Fund for the College.
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
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## **Public Benefit Objectives**
The College also offers fee concessions for academic, sporting, musical and artistic excellence in the form of Scholarships and Exhibitions; as well as to children whose parents are in the Armed Forces, to families with two or more children at the College, to former pupils of The Downs Malvern and Abberley Hall, to children of College employees and to children of Old Malvernians, Old Ellerslie Girls, Old Hillstonians, Old Downians and Old Abberlians. The College Council reviews the levels of these concessions annually and further details are provided on the College website.
## **Breakdown of Fee Concessions**
The College Council confirms that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission. The significant activities undertaken to carry out our aims for the Public Benefit and our achievements measured against those aims include the following projects and programmes.
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£5,000,000
£4,500,000
£4,000,000
£3,500,000
£3,000,000
£2,500,000
£2,000,000
£1,500,000
£1,000,000
£500,000
£0
2018-19 2019-20 2020-21 2021-22
Means-tested Awards Merit based Awards Eligability Concessions
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## **Widening access to the College**
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During the year the College alone, awarded £3.0m
(2021: £2.9m) of scholarships, bursaries and other
81-100%
discretionary awards; with approximately 120 pupils
(2021: 106) representing 18% (2021: 17%) of the 61-80%
total school roll being in receipt of some means- 9 0-20%
tested bursarial support. It is the College’s long- 9
term goal to move as much of the Concessions 38
investment as possible into means-tested
financial support.
The College continues to work hand-in-glove 39
with The Malvernian Society to widen access
to a Malvern Education through fee support. 41-60% 26
21-40%
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The College Council is acutely conscious that the College must remain accessible to children irrespective of parental means. It is determined to ensure that the funds it has available are directed to cases of the greatest need.
Bursaries are reviewed periodically based on a returned and completed bursary application form. The Bursary Committee comprising the Headmaster, Chief Operating Officer, Director of Marketing & Admissions, Head of Admissions and the Director of Finance considers all bursary applications on a case-by-case basis. Information about fee assistance through bursaries is provided on the College website and is contained within the College scholarship literature.
## **Community Partnerships and Services**
Malvern College recognises its place in the local community and is always looking to do more to contribute to the area, for example by improving educational provision for all local students and working in partnership with local state schools. The pupils’ School Council and individual Houses have charitable fund-raising high on their lists of priorities for the year and all pupils are expected to do some form of service, whether that is internally within the school, or externally, supporting charities and events in the local area.
## **School Partnerships**
Malvern College has a number of partnerships with local maintained schools. These include The Wyche and Malvern Parish Primary Schools, as well as The Chase and Dyson Perrins Secondary Schools. Several staff are Governors at these schools and other schools in the area, enabling sharing of good practice and expertise on a collaborative and mutual basis. Local schools and other community activities use the College’s facilities for their events at either a reduced cost or free-of-charge, for example the running track for The Chase and Dyson Perrins’ school sports days, the swimming pool for swimming lessons for a number of primary schools, the theatre for a local performing arts school, The Theatre Factory, performance spaces for music concerts such as those run by the Malvern Civic Society etc.
One particular thriving initiative has been our Magic of Science event with chemistry demonstrations by Nick Barker, the University of Warwick’s Outreach representative, to which we invite Year 6 pupils from a range of local primary and prep schools including Hollymount Primary and The Wyche Primary School. The write up from this year’s event:
## “
‘The young audience were spellbound as Nick created elephant’s toothpaste, showed colour changes when solutions were shaken to dissolve the oxygen into them and generated hydrogen gas in front of the pupils and tested it to give the characteristic squeaky pop.
After the presentations pupils worked in the College’s science laboratories, rotating around the three sciences. In Biology, they investigated their own senses and responses to stimuli; in Chemistry, they looked at colour changes, exothermic and endothermic reactions, and then met the challenge of creating a rainbow in a test tube. There was great energy and enthusiasm in Physics labs as the pupils investigated the science of bubble mixture and tried to work out which bubble mixture produced the bounciest, longest surviving, or biggest bubbles.
The excitement and enthusiasm throughout the day was contagious and it is wonderful to see the young pupils so inspired. Our thanks go to Nick Barker as well as our very hard-working technicians who prepared everything and cleared up afterwards!’
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MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
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## **Pupil Fund Raising**
During the last academic year pupils raised £14,948 for charitable causes including supporting MIND, St Richard’s Hospice, Cancer Research UK, Dementia UK and the Ukrainian Appeal.
This year, pupils have raised money through cake sales, wearing home clothes to school, car washing, and attending the CVS Ball where significant fundraising takes place during the event, and a Lower Sixth _**“Hunted”**_ and Remove _**“Lost”**_ on the Malvern Hills.
In the Houses there have been a wide range of fund-raising events including:
House No.6 undertook various Charity events raising money for their chosen charity **SANDS** , The Stillbirth and Neonatal Death Charity. Their biggest event was a music concert curated and performed entirely by the pupils. In total they raised £1,700.
House No.1 completed a 24 hour rowathon, organised a charity football event and hosted a **Macmillan** Coffee Morning over the year, raising £1,275 in total.
House No.7 completed an all-day cycle challenge raising £1,030 for **Comic Relief** and House No.9 raised £1,500 for **Bright Ideas For Tennis** , a local charity that supports access to tennis for disabled children, by taking part in a 24-hour tennis rally.
## **Other community activities supported by Malvern College:**
Malvern College is also pleased to host, support and assist with a wide range of local community events including:
On Saturday 18[th] September 2021 Isabel and Isabelle,
accompanied by Mr Hutsby and Miss Shales took on the Malvern Hills Challenge. The pair walked the length of the Malvern Hills, 18km and 17 peaks in support of **Help for Heroes** . Malvern College sponsored the event and Isabel and Isabelle won the design challenge to design the promotional material for the event celebrating 10 years of the Malvern Hills Challenge, including the background for all printed media, the website, as well as the logo used on the medals, t-shirt and water bottles. The girls worked hard on the design work during the lockdown and online learning, and the Malvern Hills Challenge team and Help for Heroes team were delighted with the results. The girls were in good spirits on the walk and enjoyed seeing the Spitfire fly over the hills in celebration of the event.
On a wider scale, pupil-led groups include an Environmental Action group, actively promoting sustainability, an Amnesty International Group as well as a Black Student Union, both supporting and promoting equality, diversity and inclusion within and outside of the Malvern community. Added to this and on the back of the tragic death of Sarah Everard and the Everyone’s Invited movement, an Empower her Voice group was set up by the pupils.
## “
Malvern College educates over 650 pupils from the UK and internationally, and employs around 385 members of staff, which puts it amongst the larger employers in the area. Recent research has shown that the College contributes around £17 million to the local economy through employment and through spending in its supply chain.
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MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
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## **Staff Gender Pay Gap Report**
In April 2022, Malvern College’s Mean Pay Gap was 17.0%, a decrease of 4.4% (was 21.4%) and the Median Pay Gap was 32.6% (was 34.1%). These figures have decreased by 4.4% and 1.5% respectively.
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Male Female Total
Number % Number % Number %
Upper Quartile 47 48.5 50 51.6 97 100
Upper Middle Quartile 39 40.2 58 59.8 97 100
Lower Middle Quartile 33 34.0 64 66.0 97 100
Lower Quartile 30 30.6 68 69.4 98 100
Total 149 240 386
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We are pleased to report another increase in the number of women in the Upper Quartile, from 47 in 2021 to 50 in 2022. In line with cultural and national trends, there are more women who work in the lower paid, part time roles. All vacancies are advertised internally and externally and are open to both men and women. Where appropriate, gender-neutral job titles are used to reduce certain roles being unconsciously biased towards a gender. We provide equal pay for equal roles, regardless of gender.
## **The role of the governing Council**
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**Robin Black (Chairman)**
Robin, an OM, qualified as a chartered accountant with KPMG, and has over 35 years of private equity and banking experience. He has been the CFO and subsequently a NED and Chair of a number of quoted and unquoted companies in the fund management, media and leisure sectors. He is a founder director of Heartstone Inns, a NED of The Ink Factory and a trustee of the Sports Council Trust Company. » Management Board (Chair) » Malvern College School Board » Nominations Committee (Chair) » Remuneration Committee (Chair) » Malvern College International Ltd Board
## Members of the College Council
**Sue Duff (Vice-chair) Carey Leonard (Treasurer) Tim Straker KC** Sue grew up in the College as An international commercial banker, An OM, Timothy is the nephew, her father was Housemaster and Carey worked for Standard Chartered brother and father of OMs. After subsequently Second Master. She was Bank for 34 years in various countries Cambridge he read for the Bar and is educated at Ellerslie School before it including Hong Kong, Sri Lanka, head of chambers at 4-5 Gray’s Inn merged with the College. Following an Botswana and South Africa. He Square, where he practises. He has MA in Educational Management and is currently an Independent Non been in silk for more than 25 years. He 10 years in Commerce, she joined Executive Director in the City of is a bencher of Gray’s Inn, a deputy the independent school sector initially London. He has been a Magistrate High Court Judge, a judge of the as a School Bursar and then on the since 2007 and is the father of an OM. Court of Appeal of the Falklands, a academic side in a range of prep, GSA Recorder of the Crown Court and an and HMC environments. Sue joined Election Commissioner. Although he the Independent Schools Inspectorate achieved no distinction in the game at in 2011 and is now a Lead Inspector school he regularly plays rackets and and educational consultant. follows Malvern rackets closely. » Management Board » Management Board » Malvernian Society (Chair) » Malvern College » Abberley Hall (Chair) » Foundation & Property Committee (Chair) International Ltd Board » The Downs Malvern (Chair) » Management Board » Nominations Committee » Malvern College International » Malvern College School Board » Remuneration Committee Ltd Board (Chair) » Nominations Committee » Nominations Committee » Remuneration Committee » Audit Risk & Compliance Committee
**Tom Whittaker Andy Collins Charles Barwell OBE Roger Brierly** A chartered accountant, Tom has Andy Collins is currently Second Charles is an OM and grandson 30 years of experience in financial Master at Dauntsey’s school in of an OM. Following 23 years in services holding board positions at Wiltshire, following his role as Assistant wealth management, he founded a FTSE 100 companies, including 10 Head Pastoral and Designated public affairs consultancy, Facultas Safeguarding Lead at Millfield School. Associates. He has served as a years at the Prudential Group as Head Andy was educated at King Edward’s Trustee of AGBIS, the Conservative Under 19 ISFA and Chairman of of Audit for Prudential UK & Europe, School, Bath and with a first degree Agents Superannuation Fund, the Head of Audit for M&G Investments English-Speaking Union and the City in History, took a Diploma of Social and Chief Risk Officer for Prudential of Birmingham Symphony Orchestra. Anthropology at Lincoln College, UK & Europe. He was previously He is a Fellow of the British-American Oxford, where he held a Major Stanley for 10 years, a governor of Gosfield Head of Audit of Willis Group, Head of Scholarship and was awarded two Project and was a member of the School, formed the partnership to Board of the Conservative Party and Compliance & Risk of Charles Schwab Blues, before spending seven years create the Heathfield International and Group Compliance Officer of as a professional rugby player. Andy chairman of the CCHQ Finance & Audit School, Bangkok and was ISA Committee. Charles was appointed an HBOS Clerical Medical. joined the College Council in 2022. National Ambassador for Sport. OBE for voluntary political service. » Audit Risk & Compliance » Safeguarding Committee (Chair) » Foundation & Property Committee » Malvern College School Board Committee (Chair) » Malvernian Society Trustee » Abberley Hall
**Charles Barwell OBE Roger Brierly** Charles is an OM and grandson Roger joined the College in 1994 from of an OM. Following 23 years in The Manchester Grammar School and wealth management, he founded a became Housemaster of No7, Director public affairs consultancy, Facultas of PE & Sports and Head of Football. Associates. He has served as a He was Coach to Southern England’s Trustee of AGBIS, the Conservative Under 19 ISFA and Chairman of Agents Superannuation Fund, the Hereford & Worcester Schools Athletic English-Speaking Union and the City Association. An ISI team inspector, he of Birmingham Symphony Orchestra. was Headmaster of Heathfield School He is a Fellow of the British-American for 10 years, a governor of Gosfield Project and was a member of the School, formed the partnership to Board of the Conservative Party and create the Heathfield International chairman of the CCHQ Finance & Audit School, Bangkok and was ISA Committee. Charles was appointed an National Ambassador for Sport. OBE for voluntary political service.
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Members of the College Council
**Christine Fairchild Paul Nicholls Louise Penrice Dr Dominic Sandbrook** Christine is the Director of Alumni An OM and son of an OM, Paul Louise has spent 30 years as an An OM, Dominic is one of Britain’s Relations at the University of Oxford. graduated from Pembroke College, educator, living and working in Europe, best-known historians. After Before arriving at Oxford, she amassed Cambridge in Classics, Archaeology the USA and Asia. A former Head studying at Oxford, St Andrews and more than 30 years of experience in and Anthropology. Paul has worked in of a bilingual school in Switzerland, Cambridge, he became a lecturer in the City since 1979 at various banks she now has her own company history at Sheffield before pursuing alumni relations at Harvard University. but principally at SG Warburg (later offering leadership development a career as a freelance writer. He is Most recently, she worked at Harvard UBS Warburg). He has been the Chief and coaching. Originally trained as a the author of a series of bestselling Business School where she oversaw Executive of Hoare Govett (owned teacher at Cambridge University, she books on Britain from the 1950s to the the School’s alumni outreach and variously by ABN Amro, RBS and has an MBA and has worked as a 1980s, and has written and presented fundraising activities. Educated now Jefferies) and since 2006 has consultant developing leaders in larger numerous documentaries for the at Connecticut College in the US, been its Chair. organisations. Louise is married to an BBC. He has been a Senior Fellow Christine graduated with a BA in OM and is the parent of three OMs. at Oxford’s Rothermere American Asian Studies. Institute and is now Visiting Professor at King’s College London. He is also a regular columnist for the Daily Mail and BBC History Magazine, and writes book reviews for the Sunday Times. » Malvernian Society Trustee » Foundation & Property Committee » Malvern College International Ltd Board » Malvern College School Board
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Andrew Trotman
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**Professor Catherine Mangan Stuart King**
**Ben Walker** An OM, Ben read history at Trinity College, Cambridge before qualifying as a solicitor in 2002. Having worked with law firms and in the City of London and Milan, he currently practises corporate and commercial law, specialising in the oil and gas sector.
Catherine is the Director of Education After reading law at University for the College of Social Sciences and College London, Stuart has been a a Professor of Public Management commercial property lawyer for nearly and Leadership in the Institute of 40 years, initially in the City of London Local Government Studies at the and for many years as a partner and University of Birmingham. She has a now a consultant in two large Bristol background as a policy maker and law firms. His son and two daughters practitioner in public service and were educated at Malvern College, as such has a particular research his youngest daughter also at The interest in developing research which Downs Malvern where Stuart has been can deliver change within the public a Governor since 2011. He joined the sector. Her research-informed areas of College Council in March 2022 and is interest include developing the public also a member of its Foundation and service workforce, leadership and the Property Committee. integration of health and social care. » Malvern College School Board Malvern College School Board » The Downs Malvern (Vice Chair) » Foundation & Property Committee
Andrew was Headmaster of
St Peter’s School, York and Warden of St Edward’s School, Oxford. On his retirement from teaching, he became a director of the leadership development and recruitment company, Aspirance and also has a private development coaching practice. In addition, he is the educational adviser for the Sons and Friends of Clergy and a member of the advisory council for the Winston Churchill Memorial Trust.
» Malvern College International Ltd Board » Malvern College School Board Malvern College School Board
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Members of the College Council
## **Neil Jones**
## **Kaspar Hartmann**
An OM, Kaspar is a founder of KKA Partners, a Berlin-based private equity firm that invests in leading companies in Germany, Austria and Switzerland – the so-called “Mittelstand”.He started his career as a M&A banker at Citigroup in London and New York, gained his MBA in the US, and undergraduate degree in Scotland and California. He sits on the board of the HBS Alumni Association of Germany.
Neil is not a Trustee but serves on the Audit, Risk & Compliance Committee Neil is a Vice Chairman of Deloitte Consulting and leads the firm’s relationship with several FTSE 100 organisations. Neil is a Chartered Accountant and specializes in technology enabled finance transformation projects that embrace organisational, process and people related change. Neil’s industry experience is centred around travel, hospitality and services. Outside Deloitte, Neil is also a Governor of Birmingham City University and Malvern College.
- » Audit Risk & Compliance Committee » Malvern College Enterprises Ltd » College Guardians Ltd
## **Governance changes**
Over the course of 2021-22 we have instituted a number of governance changes, designed to achieve the following:
**1. Greater focus on value-add work:** More time for education/pastoral matters, more efficient annual reporting: Charity Commission, Companies House, audits, and fewer but higher quality meetings.
**2. Higher governance quality:** More focus on future looking strategy, management of potential conflicts of interest for trustees across separate charities, more training, and the right people in the right places, with clear remits. Trustee cross-over through sub-committees and boards also means a wider
perspective.
**3. Agility of decision making:** Consistent and coherent
- purpose, goals and strategy across the schools. Alignment of top-down governance and bottom-up operations. Fewer more focused and engaged people to align, meaning we can move faster. Avoidance of competing discussions between committees and/ or entities.
This has led to a redesign of the Corporation’s Committees and Boards, and from November 2022 The Downs Malvern fully merged into the Corporation of Malvern College.
## **Committees and Boards**
A small Council Management Board of up to 6 trustees provides executive, strategic and financial oversight.
There are separate boards accountable to the trustees as follows:
1. The Malvern College, The Downs Malvern and Abberley Hall School Boards primarily focus on education, pastoral and safeguarding matters.
There are separate Council sub-committees for: (i) Audit, Risk & Compliance (ARC); (ii) Foundation & Property (F&P); (iii) Nominations; (iv) Remuneration. The ARC, F&P and Nominations Committees meet termly, and the Remuneration Committee meets once per year.
2. There are company boards for Malvern College International Limited, Malvern College Enterprises Limited and College Guardians Limited.
3. There is an independent and separate board of trustees for The Malvernian Society.
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The Corporation
of Malvern
College Council
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Audit, Risk & Management
Compliance Board
Committee
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Remuneration Foundation Nominations
Committee and Property Committee
Committee
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Safeguarding
Committee
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Malvernian Malvern College The Downs Abberley Hall MC International MC Enterprises College Guardians
Society Board Board of Malvern Board Board of Ltd Board of Ltd Board of Board of
of Trustees Governors of Governors Governors Directors Directors Directors
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The formal line of contact from individual Council members to the College Head is normally via the Chair of Council or the Chair of the Malvern College Board, and to the Prep School Heads is normally via the respective Prep School Board Chair. The Chief Operating Officer (COO) and Clerk to Council is the Council members’ first point of contact for all matters relating to the governance of the College and each prep school, and for any queries about Council business.
A committee of Council, the Management Board, comprising up to 6 Trustees, the Headmaster, the Chief Operating Officer, the Senior Deputy Head, the Finance Director, the Director of Malvern College International and the Headmasters of The Downs Malvern (TDM) and Abberley Hall (AH), meets once per month in term time. All major developments and decisions are presented to the College Council having first been deliberated by the Management Board.
The Malvern College Board meets once per term, focusing on the DfE’s Independent School Standards (ISSR) and the Boarding Schools: National Minimum Standards (NMS) relating to academic, pastoral and safeguarding matters.
The Malvern Executive Team (MET), chaired by the Headmaster meets every two weeks to review matters that affect all entities in the family, and wider strategic direction, drawing on other expertise throughout the College and Prep Schools as required. The Malvern College Senior Management Team (SMT), chaired by the Headmaster meets most weeks. The Headmaster, who has overall day to day responsibility for the management of the College, consults with the SMT before making recommendations to the Management Board and ultimately to the College Council.
The Audit, Risk and Compliance Committee meets at least three times per year and consists of two members of Council and an independent member appointed by Council. This Committee scrutinises the College’s Annual Report and Financial Statements, its financial procedures and internal controls, and compliance (e.g. H&S and data protection). The Committee oversees the relationship of the College with its external auditors, formally reporting to the College Council. This Committee also reviews the Risk Register and management’s procedures for review of the Register.
The remuneration of the Key Management Personnel is discussed in detail each year by the Remuneration Committee, with awareness of industry standards, and is approved by the full College Council.
The appointment of Council members and membership of the Committees are both identified and reviewed by the Nominations Committee.
The Foundation and Property Committee meets three times per year to review investments and property holdings.
## **Recruitment and training of Trustees**
When a Trustee vacancy arises, the criteria of skills required, availability and eligibility, as dictated by the Royal Charter, are identified and reviewed by the Nominations Committee. The College’s elected Trustees are appointed following the recommendations of both the Nominations Committee and the full Council. Trustees are appointed to serve typically for up to a 5-year term and typically retire after a maximum of three terms.
Induction for New Trustees is co-ordinated by the Clerk to the Council. All new Trustees receive an induction pack comprising Charity Commission Trustee information, DfE publications, Malvern College Annual Report and Accounts and extensive College information. Training is undertaken through the completion of on-line safeguarding training and attendance at College-organised Trustee training events as well as through attendance at Council meetings and by interaction with fellow Trustees. A record of training is maintained for each Trustee.
## **Statement on the Charity Governance Code**
As the College is a not for profit organisation which aims to follow charity sector best practice, the Trustees, via the Audit Committee have familiarised themselves with the updated version of the Charity Governance Code (the “Code”) published in December 2021. The Committee considers that the College’s governance framework does align with many but not all aspects of the Code. A review of the Code was conducted in 2022 and no changes to the College’s governance and standards were deemed necessary.
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Malvern College Senior Management Team
**Keith Metcalfe Sarah Angus Rob Breare Lewis Faulkner Stephen Holroyd** Headmaster Senior Deputy Head COO Deputy Head Pastoral Deputy Head Curriculum Keith was educated at After working for four years in Rob has spent the last five Lewis Faulkner studied Stephen Holroyd studied Monmouth School and the City of London in domestic years working with schools Biological Sciences at Lady Economics and Economic Downing College, Cambridge, and corporate banking during in the Nord Anglia Education Margaret Hall, Oxford before History at Leeds University where he read Geography, the late 1980s, Sarah went to family, primarily as the Regional completing his PGCE at New before completing his PGCE at Cambridge University to read Director of Marketing and College, Oxford. His first and came to Malvern College Warwick University. He joined Economics at Lucy Cavendish Admissions for Europe and teaching post was at Sale from Harrow School where he Malvern in 1990 and during his College. After graduation, she the Middle East, based in Grammar School where he served as the Deputy Head time at the College he has taken took her PGCE in Glasgow. Geneva. Rob graduated from St helped to introduce the Duke Master. As well as overseeing on a variety of roles parallel Having been Head of Catherine’s College, Oxford and of Edinburgh Award Scheme. the day-to-day running of a to his Economics teaching Economics at Eltham College has built a wealth of experience He then taught at St Edward’s school, he has held a number from 1994-1998, as well through his early career at Oxford for nearly fourteen including Deputy Housemaster, of positions in his career as being involved in school Procter & Gamble and WPP, years where he was Head of Stage Manager, in charge including: Housemaster, expeditions to Iceland, Norway before moving to Kenya as Biology and then Housemaster of Duke of Edinburgh’s Gold departmental head, ISI school and Nepal, Sarah then moved Commercial Director (Bursar) of a boys’ boarding house for Award, Head of Boys’ Hockey, inspector, coach of various as Housemistress to Trinity of Pembroke House School seven years and, latterly, Senior Sixth Form tutor, IB Workshop sports, and Master in charge School in Teignmouth, Devon, and subsequently as Chief Housemaster. He also has an Leader, Senior Examiner and of the Duke of Edinburgh’s where she became Head of Operating Officer at Ol MA in Education at Oxford author. His most recent roles Sixth Form. She arrived at Pejeta Conservancy. Brookes University. Award programme. have been Head of Economics, Malvern College ten years Politics and Business, and IB later as Housemistress of the Diploma Coordinator. He is also newly-built Ellerslie House and an ISI School Inspector and was appointed Deputy Head has held several Prep School (Pastoral) in 2011. In 2017 Sarah was appointed Senior Governing roles. Deputy Head.
**Penny Bijl Claire Ettinger Natalie Roberts Kate Tripp** Head of Learning Enhancement / Director of Marketing Director of Finance Director of Human Resources Designated Safeguarding Lead and Admissions Penny trained originally as a teacher Natalie graduated from the University Kate joined Malvern College in 2011 Claire began her career working in media of English (1986) with undergraduate of York with a degree in Philosophy, as Head of Human Resources and relations and communications in the degrees from Reading and Cambridge. Politics and Economics. After beginning became Director of Human Resources UK, gaining a broad range of experience She then gained an M.Phil in her career at KPMG where she qualified in 2019. She is a Fellow of the CIPD, (mainly in Government and non-profit Psychology of Education, also from as a chartered accountant, Natalie has a degree in Applied Social Studies events) before taking a sabbatical (initially Cambridge, in 1987 and took her MA has since worked in variety of finance from Sheffield Hallam University and an for a year) to follow her husband’s in 1990. After completing management roles in the not-for-profit and local MA in Human Resources Management career to Thailand. 18 years later, and training with the NHS, she worked as government sectors. These include the from Oxford Brookes University. Prior following 10+ years working in Marketing, a Contracts and Planning Manager Grammar School at Leeds and, latterly, to joining Malvern, Kate was Head Communications and Admissions in at Kidderminster NHS Trust for 3 Westminster City Council where her of Organisational Development for a international education, most recently years. She then returned to teaching, focus was on commercial, capital and Housing Association and prior to that as the founding Head of Admissions initially in the state sector, and joined strategic projects. held a variety of Human Resources roles and Marketing for Brighton College Prep Malvern College in 2004 in the in the charity and banking sectors. School, Singapore, Claire relocated with Learning Enhancement department, her family back to the UK. While focused subsequently also teaching English to on creating and maintaining brand IB, GCSE and in the FY for several years awareness, positive retention rates and and TOK for two years. growth for Malvern College, Claire’s real passion is storytelling and shining a light on the achievements of Malvern College’s pupils, staff and alumni.
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## **Statement on Fundraising**
All fundraising activities for the College are carried out by highly professional College staff with assistance from the Malvernian Society, alongside the parents and pupils with the running of specific fundraising events. The College does not use external professional fundraisers or have any commercial participators. All fundraising activities report in to the Chief Operating Office, are monitored by the Headmaster, and are overseen by the members of the College Council.
No complaints relating to fundraising activities have been received by the College during the financial period. However, the College has in place procedures that would be followed in the event of a complaint being received with the initial response being the responsibility of the Chief Operating Officer. Any continuing issues would then be passed to the College Council to determine what further action might be required.
The College does not currently subscribe to any specific fundraising standards or schemes for fundraising acitivies. The Malvernian Society does subscribe to the Fundraising Regulator. In particular, the College considers that its processes and controls ensure that vulnerable people and other members
of the public are protected from any unreasonable intrusion of their privacy and that no fundraising activities would be unreasonably persistent or place undue pressure on a person to give money or property.
## **Risk Management**
The Council, as Trustees of the Charity, has examined
the principal areas of the College’s operations and considered the major risks faced in each of the risk areas by reviewing the Risk Register prepared by the College’s SMT. It is the opinion of the Council that the College has established resources and reviewed systems which, under normal operating conditions, should allow these risks to be mitigated to an acceptable level in its day-to-day operations.
Risks are recorded on the College’s Risk Register. The Council formally reviews the Risk Register on an annual basis. Changes to the College’s risk profile are monitored and controlled on an operational basis by the College’s SMT, the Operations Management Team and the Health and Safety Committee. These bodies report specific identified risks and the strategies for managing those risks to the Audit Committee, the College Management Board and Council.
The key controls used by the College include:
- » Formal agendas and papers for all Committee, Management Board and Council meetings, with detailed minutes taken for each;
- » Clear and detailed terms of reference for each Committee;
- » Comprehensive strategic planning, budgeting and management accounting;
- » External auditors’ review including controls, policies and procedures;
- » Established organisational structures and lines of reporting; and
- » Trustees who have designated responsibility for child protection and health and safety.
The Trustees believe that the College’s financial resources and contingency planning is sufficient to ensure the ability of the College to continue as a going concern for the foreseeable future, being at least twelve months from the date of approval of these financial statements.
## **Related Parties**
## **Malvern College Enterprises Limited (MCEL)**
Malvern College Enterprises Limited is one of the College’s wholly owned trading subsidiaries and carries out non-charitable trading activities for the College. The results of MCEL are consolidated within the overall College results.
Further details of MCEL’s activities and performance are given in the Financial Review and Note 5 and Note 25 of the Financial Statements.
## **College Guardians (CG)**
In September 2021, the guardianship business was devolved from MCEL and was incorporated as College Guardians Limited. It has the same board of Directors as MCEL and is a wholly owned trading subsidiary of Malvern College.
## **Malvern College International Limited (MCIL)**
Malvern College International Limited (MCIL) is one of the College’s wholly owned trading subsidiaries and carries out the trading activities of the International Schools. The Governance structure is identical to MCEL.
Further details of MCIL’s activities and performance are given in the Financial Review and Note 5 and Note 25 of the Financial Statements.
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## **The Downs Malvern**
The Downs Malvern (TDM) is the trading name of The Downs, Malvern College Prep School. For this financial year the results of TDM are not consolidated with the results of Malvern College because the school was a separate charity with an independent Board of Trustees. TDM is closely affiliated with the College and the College provides operational support to TDM but retains its independence with its own Governing Body.
See Note 25 of the Financial Statements for details.
During the 2021-22 year, the TDM Governors approved the merger of TDM into the Malvern College charitable company. The merger took place on 1[st] November 2022.
## **Abberley Hall**
Abberley Hall is the trading name of Abberley Hall Limited (AH). AH is a prep school located in North Worcestershire, educating approximately 160 children aged between 2 and 13. The results of AH for the year to 31 July 2022 are consolidated into the 2022 results of Malvern College because, whilst the school is a separate charity, the College has control of the Board of Governors.
Further details of AH’s activities and performance are given in the Financial Review and Note 5 and Note 25 of the Financial Statements. Additional information can be obtained from the school’s website: www.abberleyhall.co.uk.
As at 31 July 2022, the College had provided AH with £2.03m of grant and loan funds for working capital and investment support with an undertaking to provide additional funds of £0.5m, i.e. a total of £2.53m, with a first fixed charge over the freehold properties of the school and surrounding estate.
With an increasing cost base and a difficult market to attract new pupils, AH has been increasingly reliant on loans from the College for day-to-day operations, which is unsustainable. As a result, the AH Governors have been actively exploring options to secure the long-term sustainability of AH. The College made the difficult decision in Autumn 2022 and confirmed in Lent 2023 that it would no longer provide loan funding beyond the 2022/23 academic year for the day to day operations of the school. The School has confirmed closure at the end of the 2022/23 academic year. The College has agreed to provide £1m loan funding for the 2022/23 academic year and up to £1m for closure costs which will ensure an orderly closure and prevent risk around insolvency.
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Giving back,
looking forward
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## **The Malvernian Society Limited**
The Malvernian Society Limited is a company limited by guarantee, which promotes the work of, and education at Malvern College, assists in fund raising and in cases of need, assists pupils in providing bursarial and/or scholarship support. In the year to 31 July 2022, the Malvernian Society generated net income of c.£0.3m and held net assets of £16.5m. The results of the Malvernian Society Limited are not consolidated with the results of Malvern College because the Society is a separate charity with an independent Board of Directors. The College receives annual grants towards the cost of scholarships, exhibitions, bursaries alongside ad hoc grants for specific projects from the Malvernian Society. See Note 25 of the Financial Statements for further details.
In August 2021, the employees of the Malvernian Society were TUPED across to Malvern College in order to bring the fundraising and development office functions under the oversight of the Chief Operating Officer but will remain accountable to the Trustees of the Society.
## **Council Members**
Council members do not receive any remuneration in the performance of their duties but are related parties of the College. See Note 9 of the Financial Statements for details of applicable transactions during the year.
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Our latest ISI Inspection
rated Malvern College as
excellent for both pupils’
academic achievement and
for the quality of pupils’
personal development.
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## **Safeguarding & Welfare**
The academic year 2021 to 2022 saw the finalisation
It was a very difficult year; mental health concerns were rising post-COVID even before the tragic suicide incident of January 9[th] 2022, since when we have seen a further steep rise in pupils disclosing mental health concerns.
of the safeguarding arrangements under the new governance structure. The Council delegated oversight for Safeguarding and Child Protection to the Malvern College Board (the “Board”). One member of the Board is responsible for the oversight of safeguarding arrangements, Mr Andy Collins, Safeguarding Governor, and he will regularly update the Council on its work. In the next academic year (2022-23) there will be the first meeting of the Safeguarding and Child Protection sub-committee. This sub-committee will meet a minimum of once per term to review the relevant policies, plans, and procedures in place. It will be attended by the safeguarding Board member of each of Malvern College, The Downs Malvern, Abberley Hall, MCIL, MCEL and College Guardians.
**Counselling:** In response to the rising pressure on our counselling service (and the increasing difficulty in getting referrals to CAMHS accepted), we are moving from Sept 2022 to an integrated counselling model and have employed one of our present counsellors full-time. Her role will continue to involve one-to-one counselling but will also include training of staff (e.g. to recognise and respond to self-harm, group work and mental health assessments).
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## **Boarding**
The academic year started at the end of August 2021 with pupils from various countries on the COVID red list needing to quarantine for 14 days. House No.6.1 (The Lees) was staffed and used as our quarantine centre, accommodating pupils who tested positive for COVID. All pupils undertook weekly lateral flow testing, and COVID risk assessments were in place for all Houses and events, with many activities taking place outdoors. COVID placed large demands on the College, but these challenges were overcome by the dedication and hard work of boarding staff. By the Summer Term 2022, life was returning to normal and COVID was moving into the rear-view mirror, but its longer-term impact on pupils, families and staff should not be underestimated.
Newly refurbished Houses No.3 and No.5 opened their doors in September 2021 to delighted staff, pupils and parents. The refurbishments included doors, flooring, lighting, bathrooms and new furniture. It is clear that the physical environment can have a significant effect on psychology and wellbeing. The Housems have reported particularly favorably on the importance of the refurbishment to social areas such as the Common Rooms and kitchens.
September 2021 saw the second year of trialling the Day-Boarding model, with the first year significantly disrupted by COVID. The model allows Day-Boarders in the FY, Remove and Hundred to board for three nights per week, with the aim of encouraging day pupils into boarding. Several pupils converted to day-boarding during the course of the academic year; the trial was deemed a success and a full launch was planned for September 2022.
2021-22 saw the continued transition to the new staffing model in the boarding houses with a Resident Deputy Housem, and either two or three day House Assistants (replacing Resident House Assistants). By August 2022, all Houses had now moved to this model. The advantages of this model are that the Resident Deputy Housem is able to cover two full nights per week for the Housem and to share oncall duties overnight. The accommodation attracts higher quality Deputy Housem applicants. A resident Deputy Housem is now more of a presence in the boarding houses, and there is more of a team effort between Housem and Deputy, which provides greater experience and professional development for the Deputy Housem, and greater assurance for parents. Houses that have three Day House Assistants often have more flexibility to provide cover for each other, and therefore continuity of care.
Pupils’ commitment to their community manifests itself in their respect for one another.
An ISI Regulatory Compliance Inspection took place in October 2021 with a significant focus on our boarding houses, staff, policies and procedures. The report concluded that the school meets the Independent School Standards 2014 and the National Minimum Standards for Boarding Schools 2015 and associated requirements, and no further action was required. There was a large emphasis on the College’s response to Black Lives Matter, Everyone’s Invited, and our Life Skills programme. Given the importance of these matters, and the rigour with which they have been inspected, we were delighted to pass and to receive such positive informal feedback from the Reporting Inspector.
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## **Academic**
## **Summary of Public Exam Results**
This year’s exam results have been remarkably good considering the gloom laden press coverage that suggested there would be a huge dip in performance. This reflects very well on the hard work of both staff and pupils during a very disrupted period of education and has, therefore, allowed our pupils to perform very well and move on to their next stages of education.
## **37 Malvern College average score**
**32 worldwide average score** 2022
## **40% achieved 40+ points in 2022**
**34% achieved 40+ points** Malvern College five year average
- **2 pupils achieved 45/45**
- **2 pupils achieved 44/45** 2022 cohort
## **IB and A Level Highlights**
This year’s IB cohort scored an average of 37 points on their IB Diploma equivalent to AAA at A-Level. 40% of our pupils achieved the benchmark for worldclass performance of 40 points or more. Globally fewer than 1% of pupils achieve 44 points or more, but 4 of last year’s group achieved this feat with two pupils scoring the maximum 45 points (equivalent to 5 x A* at A level).
43% of all A Level grades were either A* or A grades, 71% A to B and 89% A* to C grades. With the exception of the years with CAGS and TAGS, these results have only been surpassed once in the last 10 years. Three pupils achieved at least A*A*A*
## **43% achieved A*/A grades**
**71% achieved A*-B grades** five year average
**2022 2022**
**44% achieved A*/A grades**
- **74% achieved A*-B grades** 2022 cohort
## **GCSE Highlights**
At GCSE, 43% of all grades were either 9 or 8 with 93% of grades being between 9 and 5. These are amongst the best grades that have been achieved by Malvern students in recent years when exams have been taken. Six pupils achieved nine grade 9s or above with one pupil achieving an outstanding 12 grade 9s.
## **63% achieved grades 9-7**
**80% achieved grades 9-6**
five year average
**2022 2022**
**62% achieved grades 9-7**
- **81% achieved grades 9-6**
2022 cohort
## **University and Post 18 Highlights**
The excellent A-Level and IB results meant that Malvern pupils took places at 5 out of the top 10 global universities (based on the QS World University Top 10 Rankings) with 77% of pupils accepted into their first-choice university. 64% of pupils are going on to do degree courses at Russell Group universities. We have a number of pupils with places at universities in the US with one pupil going to Chicago to study Malvern pupils took Liberal Arts, and, as usual, we have a number of pupils going to study at prestigious European Universities such as TU Delft and TU Munchen. places at 5 out of the top 10 Whilst most are going to study traditional academic studies there are a few pupils going off to study more unusual courses such as Equine Behaviour, Music global universities
Whilst most are going to study traditional academic studies there are a few pupils going off to study more unusual courses such as Equine Behaviour, Music Management and Wildlife Media, and a number taking a Gap year, overseas coaching, ski instructing or going straight into business or professional sport.
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Senior Maths Challenge
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## **Super-curriculum**
Beyond the core curriculum, we encourage pupils to broaden their intellectual horizons as well as their independence, collaborative research and engagement, through the super-curriculum. Academic competitions, intellectual pursuits and pupil-led societies all provide opportunities for pupils to stretch themselves and challenge each other’s. There have been a number of achievements across the whole spectrum of subject areas:
**In Art** , a Lower Sixth Photography student has had her photography published in ‘Wild Planet Magazine’ October 2020. She was also shortlisted for ‘Young Bug Photographer of the Year’ and for the ‘Young British Wildlife Photography Awards’.
In national level Olympiads across the Sciences and Maths there have been significant numbers being awarded medals and commendations for example in the **Senior Maths Challenge** Malvern pupils were awarded 18 Gold, 12 Silver and 24 Bronze medals, with even better numbers in the Intermediate Maths Challenge.
As well as societies that link directly to the academic curriculum (e.g. Psychology, Economics and History societies), pupils have started societies that are broader or look forward to future careers (e.g. Politics and Foreign affairs, Law and Med Soc), as well as groups that focus on wider society, human rights, responsibilities and identities, and have given pupils a platform to respond to current affairs and events, including Black Students Union, LGBTQ+, Amnesty International and Empower Her Voice
The Debating Society and Model United Nations activities encourage pupils to research, debate and collaborate, as well as introducing them to a wider range of relevant topical and ethical issues that need to be considered.
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INTERNATIONAL
BLACK HISTORY WOMEN'S WEEK
MONTH "We are only- asJstrong.K. Rowlinas wge are united"
BBC World News - HISTORY OF AFRICADocumentary SeriesJemima + Johnny (1966)Belle (2013)BBC Documentary: Black and British a forgottenhistory WHATLEARN Black History is also British History TO WATCHMORE TO The first African Emperor. Heruled from 193AD to 211AD.Known as the "AfricanCeasar", he travelledregularly to many parts of hisempire including Britain in208 AD, where hestrengthened Hadrian's wall.He died 3 years later in York. SEPTIMIUSSEVERUS only 24.3% of seats were filled by women. As of June of 2019, 11 Heads of State were women. are still grossly underrepresented in government and the Despite progress in this area over the years, womensimply better equipped to handle certain jobs. Most of the time, those are the jobs that pay the #3. Job Integration societies, there’s an inherent belief that men are Only 6 countries in the world give women the same legal work rights as men.Of all national parliaments at the beginning of 2019, best. #4. Increase Political representation of women political process. employment is the division of jobs. In most One of the causes for gender inequality within #1. Provide an even access to education Around the world, women still have less access to education than men. ¼ of young women between #2. Improve employment equality 15-24 will not finish primary school. Of all the illiterate people in the world, Everyone can be involved!At the start of her career, the British author struggled with the loss ofher mother, a divorce, single motherhood, poverty and ill mental health.It took her five years to write her first book of the Harry Potter series,which initially got rejected by 12 - Harry Potter: translated into 73 different languages, sold movie rights to Warner Brothers, sold 450 million copies publishing companies, until Bloomsbury took a chance on her. Her success today:- World's first billionaire author - Best selling living author in BritainWhere can genderequality be improved? A day dedicated to celebrating the achievements of women, raising awarenessSuccess story: J.K. Rowling CEOs of Fortune 500 companies, male percent of the C-suite — and if we’re looking at Women in the Workplace Report, men hold 79 (According to McKinsey & LeanIn’s latest leadership positions. population — not to mention the majority of the social and economic imperative. action for equality every day.awareness against bias, and, crucially, taking Today is International Women’s Day — a day dedicated to celebrating the achievements of women, raising Gender equality is not a female issue, it’s a It’s vital that we include men in this equation. After all, they make up about half of the global The best way to move conversation to action is to include all ofus in the erepresentation balloons to 93 percent.) against bias, and, crucially, taking action for equality quation! Today is International Women’s Daywatson_zachary@malverncollege.org.uk / colsman_Jacqueline@malverncollege.org.ukperry_jacob@malverncollege.org.uk / zeidi_ariannaFor any support ⅔ are women. Contact: every day. against someones gender. 1. social media and promotional tools. Use #NWHW4. green or white to show yoursupport! 5. be an advocate for NationalWomens Days. Do notstand for gender inequality no matter how small. media messages you share. 2.3the year to: one of the most important days of International Women's Day (IWD) isMarked annually on March 8th, economic, cultural and political achievements of women. The daytogether to celebrate women's achievements or rally for women's. @Use our International Women's Day is a global day celebrating the social, Organize events or activities in your community. Bottom Line When you return to school Wear something purple, malverncollege.org.uk /equalityCelebrate women's achievementsRaise awareness about women's Lobby for accelerated gender parityFundraise for female-focused charitiesSignificant activity is witnessed worldwide as groups comealso marks a call to action for accelerating gender parity.Women's Day all about?How can you helpWhat is International and is that support?#FindYourHealthequality. none should discriminate weekwhat topic we shouldHave suggestions on ? Send us an emaildo next in any social ! CALCULUS: THE STUDY OF POINTS CLOSE TO INFINITY Have you heard of the word “calculus”? Do you know what does calculus mean and what mathematical operations are involved in it? Have you ever wondered how was calculus invent-ed? Do you know who is the real inventor of calculus, Newton or Leibniz? Do you know calculus is widely used in which are-as? Come To Aston Society and Find Out More! Meet at 19.30 pm next Monday (17th May)! At Gaunt centre (room at back of the Lower Li-brary)! All Lower School pupils are welcome! *Aston Society is the Lower School pupil-lead academ-ic and super curriculum society aiming at extending pupils’ knowledge and understanding beyond the nor-mal school curriculum and giving students a chance to think and ask questions around their everyday school lives.
Every 90 seconds, a woman dies duringpregnancy or childbirth
Women earn more than 60% of all collegedegrees in the United States on average, 13,000 more words per dayWomen tend to talk more than men do.A recent study shows that women say,than men
Women in ancient Rome wore the sweat of gladiatorsto improve their beauty and complexion
violence is not yet considered acountries where domestic603 million women live incrime
York City in 08.03.1908 for shorter hours,Origin: a march of 15.000 women in Newbetter pay and the right to vote While both boys’ and girls’ voices will change duringother species develop a deeper voice to attract femalessometimes dropping a whole octave in tone. Males inand intimidate other males, and scientists believe thepuberty, the change in a boy’s voice is dramatic,change in the male human voice evolved for the samereasons
poverty (on less than $1.00 a daypopulation living in absoluteWomen account for 70% of the
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With a history littered with links to writers such as CS Lewis and JRR Tolkien it is pleasing to note the strength of the Literary Society and its offshoot group: “Writers’ Inc.”, which is Malvern College’s club for keen and ambitious creative writers, be it poetry, plays, fiction, or non-fiction. Highlighted achievements include:
1. One pupil (Remove) original piece titled “Shark” was selected for publication in an anthology called “Hunted – mini sagas from the UK”.
2. Another pupil (Hundred) whose piece of original writing “Three Days” was selected for publication in the anthology “Sagas: Missing – Stories of Lost and Found”.
3. Another pupil (Hundred) succeeded to the final of the Worcestershire Young Poet Laureate Competition. Her poems, “Identity” and “An Ocean of Reflection”, have been published in a special Anthology.
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## **Co-curricular and Personal Development**
» **In netball** , two girls were selected for the Severn Stars U17 Nova Academy and two girls played for the U15 Worcestershire County team. Our U14 and U16 teams won their respective district tournaments, and the 1st VII made it to the semifinals of the National Plate Competition. The 2nd VII and U15B both had unbeaten seasons.
In sport, pupils as individuals and in teams have had a number of successes. For example:
- » **In cricket** , 19 boys and 11 girls were selected for County age group teams, whilst two Upper Sixth boys signed professional contracts with Worcestershire CCC and one boy chosen for England U19s to play test matches against Sri Lanka. The boys 1st XI in particular had a fantastic season winning 18 of their 26 matches and reached the Semi Finals of the National T20 Cup. Two boys scored over 1000 runs for the 1st XI in the season.
- » In the Public Schools’ **Rackets** Championships at Queens the first pair made it to the 1/4 finals and the U15s made it to the final of their respective competitions.
- » **In rugby** , 26 pupils played for rugby club academies (Worcester, Gloucester and Wasps) and a crowd of 1,500 plus turned up to watch the Border Shield match against Monmouth School under lights at Ledbury RFC.
- » **In golf** , one pupil was awarded a Golf Scholarship to Exeter University and the College’s Golf Team reached the regional semi-final of the HMC Foursomes.
- » **In tennis** , the U16 girls finished runners-up in the Worcestershire County Doubles Tournament, but the U15 junior girls were winners of the Herefordshire & Worcestershire LTA competition. These four year 10 girls will go to the National Finals in September and were part of an unbeaten team that won all of their fixtures convincingly.
- » **In hockey** , we have had girls selected for the U18 England and Wales training squads; six girls and four boys are playing in regional performance centres with 12 pupils playing at county level. Our teams were successful both at national and regional levels with the U18 girls making it to the indoor Regional Finals and the U16 boys played in the National Finals of Tier 3.
**In the performing arts** , we were able to return to normality in our ensemble programme for the Concert Band, Enigma Sinfonia, Chamber Orchestra, Chapel Choir (approximately 65 singers), Chamber Choir, as well as our smaller ensembles – the Percussion and Brass groups. Our Music lesson numbers grew with 201 pupils having music lessons.
**In music** , the concert program returned, with numerous small- and larger-scale concerts, but the previous rhythm of events was altered to move our second larger ensemble concert to the end of the Easter term ahead of the re-scheduled Commemoration. Our Concerto Concert, held on the final evening of the year was an outstanding concert of concerto-style works and opera/oratorio/ music theatre arias, with our pupils all performing with a professional orchestra, and were given a welldeserved standing ovation. One of those performers was offered places to study singing at the Royal Birmingham Conservatoire and the Royal Welsh College of Music and Drama. The Chamber Choir reached the finals of the Barnardo’s National Choral Competition for the second time in a row.
In ABRSM/Trinity Music Exams there were four grade 8, three grade 7 and five grade 6 results as well as many other successes down through the lower grades.
**In the House Singing Competition** , approximately 530 pupils were involved, with pupils, once again responsible for selecting, arranging, accompanying, and organising both rehearsals and final performances.
**In drama** , the Lower Sixth mounted a production of Shakespeare’s ‘The Comedy of Errors’; the Musical Theatre Society presented a production of Disney’s ‘High School Musical’ in November 2021; in early January, the Year 10 (Remove) performed a contemporary ensemble play – ‘Second Person Narrative’; in the week before the summer half term break, Year 9 (FY) dramatists staged a powerful production of ‘Animal Farm’ by George Orwell. All productions featured powerful acting performances; impressive production values were well received by appreciative audiences.
The much loved and fiercely contested **House Drama**
**Competition** returned spread over three performance evenings and offering a rich variety of theatrical experiences, including one entry in the medium of film. No2’s ‘The Holy Grail’ and No.3s ‘The Wizard of Oz’ were worthy winners, receiving their trophies at a special ‘Oscar’s’ Ceremony in the Rogers Theatre.
In Speech and Drama LAMDA examinations pupils attained 29 Merits and 14 Distinctions.
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## **Further Co-curriculum**
The **Combined Cadet Force** (CCF) continues to thrive as one of the largest school contingents in the country with 229 Cadets. As well as weekly skills development, cadets have benefitted from competitions, such as the Pringle Royal Marines competition, expeditions such as the Scotland and Snowdon Venturer Dragon adventure training courses and field weekend exercises.
A significant number of pupils take part in the **Duke of Edinburgh** (DofE) scheme throughout the school with pupils walking as well as using bikes, canoes, kayaks, rafts and SUPs for their expeditions. We had over 90 pupils undertaking both the Bronze and Silver Awards, with more than 50% of the 54 pupils who had signed up for the Gold Award completing it before they left the College.
Many of these pupils also partake of the **Outdoor Pursuits** (OP) clubs (white water kayaking, canoe polo, mountain biking, rock and indoor climbing and mountain scrambling) and all continue to increase in numbers. Two additional staff have been employed as full-time instructors, hugely increasing the scope of activities offered. ‘ _**Hunted**_ ’ was introduced in June 2022 and Lost also returned, both phenomenally successful and popular events.
This is only a small selection of the many academic, cultural and sporting achievements of the College’s pupils. Further information can be found on the College’s website: www.malverncollege.org.uk.
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©Photography – Norman Mays
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## **The Downs Malvern College Prep School**
There has been an encouraging start to the recruitment year, the new Headmaster has been received very well by our parent base and strong enquiries which will be supported by a renewed marketing campaign.
**Pastoral:** Pastorally, the school continues to develop its systems and structures to ensure that the pupils benefit from its outstanding Pastoral care. The school has renewed its ‘Circle of Care’ principles to reflect this and expanded the Safeguarding team to better serve the community’s needs. The pastoral policies are regularly reviewed by staff as well as the Governor’s Welfare and H&S Committee.
**Boarding:** The Boarding community continues to provide a thriving and comfortable environment for the boarders. There are an increasing number of flexi boarders who make use of the opportunity to board one, two or three nights per week. The boarding age range is currently from 8 -13, with the majority of the children boarding being at the upper end of this range. The School has recently appointed a Governor with dedicated oversight of the Boarding provision.
**Academic:** It was another successful academic year with 18 Scholarships won by 12 Year 8 pupils for their prospective Senior Schools. The breadth of a Downs education is reflected within these awards across the different disciplines of the available scholarships.
**Charities Act 2011 and Public Benefit:** The School has limited reserves and the bursary scheme is funded through revenues generated by the School and not through investment income. During the 2021-22 year, bursaries were awarded to 16 pupils (2020-21: 24 pupils) at an average of £4,635 per pupil (2020-21: £3,319). The total value of this funding was £64,561 (2020-21: £79,662).
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Subject 2021-22 Awards 2020-21 Awards
Academic 6 scholarships, 1 exhibition 3 scholarships, 3 exhibitions
Art 1 scholarship 1 exhibition
Drama 1 scholarship, 1 exhibition 1 scholarship
Design Technology 1 scholarship, 2 exhibition 1 scholarship
Music 1 scholarship 2 scholarships, 2 exhibitions
Sport 2 scholarships, 2 exhibitions 9 scholarships, 1 exhibition
All Rounder - 1 award
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The School also raised funds for local, national and international charitable organisations. A number of local groups also made use of the School’s facilities at either a reduced cost or free of charge, both in term time and throughout the holiday periods.
## “
The most recent ISI report graded the Pastoral care as **‘Excellent’.**
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## **Abberley Hall Prep School**
2021-22 was the year that returned the school back to some level of normality with an uninterrupted academic year. It was a successful year academically and pastorally for the school, and more importantly for the children. There has been a positive impact of changes made following the strategic review in 2020.
The school successfully passed its ISI complicance inspection in February 2022. In September 2022, Abberley Hall School was awarded Best Prep School 2022 in the Tatler School Awards.
**Boarding:** The more flexible approach to boarding adopted since January 2021 has continued to see popularity in boarding grow. There are still a good number of full-time boarders, becoming more popular towards the top of the school. The evening activities programme and the weekend programme continue to be a great strength.
**Academic:** The year was successful academically despite further disruptions caused by the covid pandemic. Internal exams were undertaken throughout the School as well as other forms of standardised testing to enable progress to be tracked. The curriculum continues to be reviewed and modernised and standards across the school have been raised. Findings supported the view from parents that academic provision and the progress made by pupils is outstanding. A new appraisal system was launched for teaching staff and focused on marking scrutiny, lesson observations, on the upgrading of educational resources and also on ensuring that teaching staff are undertaking effective training and CPD.
The school made the decision to introduce individual iPads for senior pupils, to be used in conjunction with large high-resolution screens in the classrooms. This initiative has been well-supported by staff, parents and pupils and it represents an exciting step forward in the educational experience at our school.
All of the Year 8 pupils gained entry to their first-choice
schools. The majority of pupils sat Common Entrance exams and the results were strong. A full set of academic, sporting and extra-curricular achievements are reported to the Governors in termly reports. These achievements are many and we are proud of these successes given that we are not a selective school.
A number of senior pupils achieved scholarships in a range of disciplines:
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Subject 2021-22 Awards
Academic 2 scholarships, 1 exhibition
Art 1 exhibition
Drama 1 exhibition
Sport 3 scholarships, 2 exhibition
All Rounder 1 exhibition
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**Pastoral:** The school tracks and monitors all
safeguarding records on the system MyConcern and staff continue to undertake thorough safeguarding training and to receive regular updates throughout the year. The School has launched a set of core values at School, known as The Abberley Spirit and we are working hard to ensure that these are woven through the fabric of the School. Our values are Integrity, Kindness, Courage, Ambition, Adventure and Respect.
**Charities Act 2011 and Public Benefit:** The Governors have considered the Charities Act 2011 on public benefit and have had due regard for Charity Commission Guidance on the Subject. The School has limited reserves and the bursary scheme is funded through revenues generated by the School and not through investment income. During the 2021-22 year, Bursaries were awarded to 30 pupils (2020-21: 29 pupils). The value of this funding was £209,061 (2020-21: £294,833).
The School focused its fundraising efforts on local charity SARA (Severn Area Rescue Association) and the UNHCR (United Nations High Commission for Refugees). Around £5,000 was raised for these two charities alone. The school holds a number of other fundraising events such as for the Royal British Legion Remembrance Day and food for the local Food Bank through our Harvest Festival.
A number of local groups used the School’s facilities at either a reduced cost or free of charge. The School hires the swimming pool to two local primary schools as well as to local swimming clubs and swimming teaching groups. We also invite local children to take part in various activities at School such as Drama and Sport.
**Financial:** Despite this being a successful year for staff and pupils, the financial situation of the School is less positive. The impact of the economic environment has significantly increased the underlying cost base, the prep school market is challenging and the financial impacts of both of these could be exacerbated in the future by legislation changes on independent schools proposed by the Labour party. The compound effect of current economic pressures is significant and the College made the difficult decision not to provide further funding beyond the 2022/23 academic year unless supported by a parents’ led fundraising. Community and other external sources of funding have been explored, but despite this, the closure of the school for the 2023/24 academic year and beyond, is sadly confirmed.
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Malvern College Switzerland, Leysin
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## **Malvern College International Schools**
to the College in May as part of his induction process, to coincide with the Malvern College Family of Schools Annual Leadership Conference, held over two days in the run up to summer half term and attended by senior representatives from across the family of schools.
Highlights this year have included the opening of the College’s 6th international school, situated in the Swiss Alps, and the approval of a seventh, to open in 2023 in Tokyo.
The formal opening of Malvern College Switzerland took place in October 2022 to coincide with a visit to the new school of a group of musicians from the College, and was attended by the Chair of the College Council. In June 2022 the school was delighted to welcome the British Ambassador to officiate at a tree-planting ceremony as part of the Queen’s Platinum Jubilee celebrations. Malvern College Switzerland opened with approximately 30 pupils and experienced a positive first year under the leadership of Dr Tim Jefferis, the Founding Head.
Whilst enrolment growth has slowed this year, primarily due to the impact of Covid in China and Hong Kong, we have nonetheless been pleased to see year on year growth of 8% in pupil numbers, which, as at the end of the year, stood at just under 3400 across our six schools.
Despite the challenges faced by our schools in China and Hong Kong relating to the implementation of the zero-Covid policy and the impact this has had on teaching and learning, exam results have been strong.
Malvern College Tokyo, due to open in September 2023 in the western suburbs of Tokyo, will be an IB continuum day school catering for both a local and expatriate market. We were delighted to welcome Mr Mike Spencer, Founding Head of the school,
**Malvern College Qingdao**
**Malvern College Switzerland**
**Malvern College Chengdu**
**Malvern College Egypt**
**Malvern College Hong Kong**
**Malvern College Tokyo (Sep 23)**
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## **Commercial activities**
This year has seen the business recover well from Covid, culminating in a busy summer holiday lettings period, with over 1300 visitors on site during the school holidays. We were particularly pleased to launch our own **Cricket Festivals** for the first time, building on the College’s reputation for cricketing excellence; these festivals were hosted at the College, The Downs Malvern and Abberley Hall. Summer 2022 also saw the relaunch of the **National Schools Symphony Orchestra (NSSO)** , one of three proprietary courses operated directly by the College’s commercial team. NSSO courses were held at the College for the first time since 2019 under our new Artistic Director Nicole Wilson, and we have also been delighted to be able host a number of high-profile rugby events including the England RFU Academy.
Another area of focus during the summer has been the relaunch of **Malvern College Summer School** , our third proprietary course, following two fallow years during the pandemic; much energy is now being focussed on the long-term development of these courses as a key plank of our commercial development strategy.
Other areas of the business have also recovered well, with **Malvern Active** , our health club, based in the College’s Sports Complex, recovering to pre-pandemic membership levels soon after Covid restrictions were fully lifted in March.
With the impact of Covid, the business has seen some staff attrition over the past year, but now has a new management and strengthened team in place tasked with the delivery of our commercial development plans.
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Cricket Festival 2021
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NSSO Rehersals 2021
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Summer School 2021
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Summer School 2021
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Malvern Active Sports Complex
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Summer School 2021
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## Fundraising | Donor Impact Report
## **Bursaries (Assisted Places)**
The Malvernian Society is fortunate to receive ongoing financial support from a range of donors and benefactors, including Old Malvernians, current and former parents, and other Friends of Malvern College. These philanthropic gifts enable the Society to fulfil its charitable objects and to support Malvern College with its strategic plans. The financial year 2021/22 was no exception; £0.4m was granted to the College by the Malvernian Society.
Owing to a reduced number of events, visits and meetings coming out of the Covid pandemic, as well as a restructuring of staff, income into the Society was less than in the previous financial year. Going forward, with a fantastic team now in place and a full calendar of events from autumn 2022, including international events, we fully expect income to rebound.
As a first goal, we want to raise an endowment fund
capable of funding 10 pupils on 110% support in perpetuity and therefore to raise at least £15 million for 10 new, fully funded Bursaries (Assisted Places) over the next 10 years.
And this is just our immediate ambition; our Headmaster and senior management team’s vision goes much beyond that.
We continue to be in touch with ‘cornerstone’ prospective donors, who we believe have the capacity to support the Malvernian Society in a substantial way. Our fundraising priorities for the year ahead remain as follows:
Both the College and Society have made a concerted effort to work together ever more closely, which has resulted in a very busy year, with Development initiatives such as a new-look Development Impact Report as part of the OM Newsletter, new fundraising collateral, drafted with the support from our Engagement colleagues, and an increase in donors who are leaving a gift in their will, bringing about an all-time high of legacies under management.
## “
Long-term, we want Malvern College to be a place where any able and talented pupil can come, regardless of their financial background.
##
## **Music School**
## **Transformation Project**
Our ambition is to completely transform the College’s current Music School building by creating a state-ofthe-art facility that will deliver:
1. ‘Zoned’ learning and practice areas for greatly optimised use by our pupils, teachers and visitors
2. Sound attenuation between practice rooms and other areas of the building
3. Controllable and regulated heating
4. A permanent home for our new Steinway pianos
The Music School Transformation Project is the second phase of our overall ‘Music @ Malvern’ project – the first one being the acquisition of our ‘All-Steinway School’ status.
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Fundraising | Donor Impact Report
## **Sustainability**
## **Standards**
A fundraising focus going forward will be the funding of a sustainability masterplan that is currently being developed. We believe that this will attract a considerable amount of support, also given that a substantial number of our Alumni and other stakeholders work in the field of sustainability.
Fundraising during the year was carried out solely by the Development staff in the Malvernian Society team and no external fundraising individuals or companies were employed. The College and Society adhere to GDPR regulations and only contact those for who our communications will be relevant and of interest. There were no incidences of failure to comply with fundraising standards and no complaints recorded.
## **New Development initiatives**
For the coming year, new-style fundraising events and a planned Giving Day for spring/summer 2023 – a first for the Malvernian Society – will take place.
## “
Both the Malvernian Society and Malvern College are extremely grateful to all Old Malvernians, parents and Friends of the College who support the Society financially, whether through immediate philanthropic gifts or through their legacy planning.
## Alumni Engagement
The function of the Engagement team is to deliver on the promise that a relationship with Malvern College lasts a lifetime. To achieve this, we maintain regular contact with alumni through events and digital communications; we encourage connections between Old Malvernians including professional networking; we oversee a number of mainly sporting clubs and we manage the school Archive. Old Malvernians span the globe and our goal is to keep them connected to Malvern College wherever they are located. (Please see map on opposite page.)
The Malvernian Society succeeded in producing some exciting and well supported events in 2021 despite Covid-19 restrictions at the time, including a No.7 Reunion and Benefactors’ Lunch at Malvern College and two events in London including a Reception in the City of London and a Malvern in London Christmas drinks. With restrictions lifted on 24 February 2022 it was full steam ahead with a full programme of events including our warmly received, remodelled Commemoration Weekend on 19 March. With ‘Commem’ decoupled from Prize Giving, the focus was purely on OMs who returned to contribute to the AGM, celebrate in Chapel with a service led by OM Revd Stephen Wookey (7.68-72), and then enjoy a convivial lunch in the Gryphon Room. In the afternoon, some of the sporting clubs took on the pupils with varying degrees of success.
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Fundraising | Donor Impact Report
The fine weather of summer was the perfect backdrop for: a Reception at Blenheim Palace to mark the (Covid-delayed) 80th anniversary of Malvern College’s evacuation during World War Two in 1940; the No.4 Reunion and, finally, a dinner in The Grub for 2020 and 2021 Leavers, allowing them the chance to enjoy a Leavers’ Ball having been deprived of theirs due to lockdowns.
The 12 clubs and societies within the Malvernian Society had a busy twelve months. Highlights included: Guy Davies overcoming the Number 4, 2 and 1 seeds to become the British Open over-75 squash champion and the OMFC Veterans reaching the quarter-final of the Derrick Moore Trophy. The OMSC finished 11[th] in the Arrow Trophy on the Solent and the OMGS reached the final of the Grafton Morrish Tournament only to lose on the 18[th] . The OMGS were proud to celebrate their 100[th] anniversary of their formation in 2022. The OM Women’s Hockey team won the Dean Close Sixes Competition and, finally, the OMRUFC was re-constituted although its first match was delayed to October 2022 due to Covid.
In the office, we were pleased to introduce a new initiative to support young OMs with work experience as internships were offered to Jacob Perry (SH.16-21) and George White (7.15-20). Jacob and George contributed to significant projects including developing our OM Survey and a new platform for merchandise sales.
Looking ahead our key objectives for the following year include:
1. Deliver a survey to the whole database, the results of which will inform our future strategic priorities
2. Deliver Malvern College’s inaugural
Giving Day in June 2023
3. Improve our digital presence and continue with the modernisation of communications
4. Update the OM merchandise offer
5. Digitise the Archive to celebrate the heritage of Malvern College
## **Offsite event locations:**
London, Paris, Blenheim Palace, Steinway Hall, City of London, Malvern College Switzerland, Birmingham. Reunions: No.7 and No.4 Development: Benefactors’ Lunch, Steinway Hall Concert, 1865 Lunch.
The OM Club includes Arts Society, Court Games, Cricket Club, Football Club, Golfing Society, Hare & Hounds Club, Hockey Club, OM Lodge, Netball Club, Rifle Club, Rugby Union Football Club and Sailing Club.
## **Engagement by numbers**
Engagement in 2021-22 was impacted by Covid restrictions but, nevertheless, the OM community engaged at every opportunity:
- » 2 OM Interns
- » 1 New style Commemoration Weekend including AGM and Sports Matches
- » 1 Ledbury Run
- » 3 Development Events (Malvern College and Steinway Hall, London)
- » 7 Events offsite
- » 10 Events at Malvern College
- » 12 Clubs or Societies as part of OM Club
- » 21 OMs took tours of the campus
- » 1,000 OMs attended events
- » 1,967 Instagram followers
- » 2,174 Facebook followers
- » 2,816 Registered Users on OM Connect, 65% ‘willing to help’
- » 9,000 OMs received new look, 124 page OM Newsletter
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## Financial Review | Treasurer’s Report
**----- Start of picture text -----**
The College delivered an
excellent £0.8m EBITDA
for the year, including
£0.4m of concession and
donation support from
The Malvernian Society
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Following so much upheaval in the sector during the two COVID years (2019-20 and 2020-21) it has been most encouraging to see the College resume full normal operations and post a resilient financial performance in 2021-22.
The Malvern College Group outturn has improved by £0.6m and the overall deficit has reduced to almost breakeven (from £0.7m to £0.1m). This is despite rapid inflation during the course of the year which culminated in a 12 month CPI of 10.1% in July 2022.
The College delivered an excellent £0.8m EBITDA for the year, including £0.4m of concession and donation support from The Malvernian Society. Malvern College Enterprises and College Guardians delivered a solid £0.4m net contribution despite a slow start to the year as the last of the COVID restrictions limited lettings and guardianship demand. The Malvern College International Schools business delivered an outstanding £1.8m of net contribution to the Corporation as we see continued enrolment growth.
It has been a challenging year for Abberley Hall. The impact of the economic environment has significantly increased the underlying cost base, the prep school market is challenging and the financial impacts of both of these could be exacerbated in the future by legislation changes on independent schools proposed by the Labour party. The College made the decision to cease further loan funding beyond the 2022/23 academic year, which has resulted in the confirmed closure of the School. The School is no longer a going concern and the College is expected to formally call in its loans.
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Malvern College Group
(forms the group financial statements)
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Pupils - Pupils 3,375 Pupils 659 Pupils 165 Pupils 200
Income/Gains £1.1m Income/Gains £2.2m Income/Gains £25.6m Income/Gains £2.6m Income/Gains £3.3m
Expense £0.8m Expense £0.4m Expense £26.7m Expense £3.4m Expense £4.0m
Deficit -£1.1m Deficit -£0.8m Deficit -£0.7m
Surplus £0.3m Surplus £1.8m EBITDA £1.2m EBITDA -£0.7m EBITDA -£0.4m
Net Assets £16.5m Net Assets £0.0m Net Assets £22.1m Net Assets £2.7m Net Assets £5.7m
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Includes College Guardians and MCEL
Malvern College’s UK Family
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67% of the College’s operating expenditure is in payroll, and robust mechanisms are in place to control recruitment whilst remaining competitive based on external benchmarks. 60% of the remaining non-payroll operating expenditure is in the following five areas, almost all of which are exposed to some of the highest rates of inflation:
1. **Food and hospitality:** a full external audit is being commenced with the ISCC to establish further efficiencies.
2. **Gas and Electricity:** we have engaged a new energy broker, Powerful Allies, to secure the best rates and we are focusing on our sustainability plans to reduce long-term energy consumption.
3. **Marketing and Admissions:** we will not be cutting costs, but are placing greater focus on return on investment to get more from our spend.
4. **Estates Maintenance:** we are developing a long-term ‘Planned Preventative Maintenance’ programme to avoid unnecessary reactive maintenance costs in the future.
5. **Academic:** whilst we do not plan to restrict funding in this area, we have put in place robust cost controls and improved communication with budget holders.
The Group’s net debt position fell to £3.6m and looking ahead into the 2022-23 financial year, the College plans to refinance the CBIL loan taken during COVID over a longer period, as well as securing further financing for the aspirational estates plans that are in the process of development.
We closed the 2021-22 year with a robust balance sheet. The detailed consolidated Group and College balance follow in the coming pages. The diagram below shows the combined balance sheets of the consolidated group plus the Downs Malvern and the Malvernian Society which together form the ‘Malvern College UK Family’:
## **Statement of Council Members’ responsibilities**
The Council members are responsible for preparing the Report of the Council and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).
- » state whether applicable UK accounting standards
- have been followed, subject to any material departures disclosed and explained in the financial statements; and
- » prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The law applicable to charities in England & Wales requires the Council members to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and the Group and of the incoming resources and application of resources, including the income and expenditure, of the Charitable Group for that period. In preparing these financial statements, the Council members are required to:
The Council members are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions, disclose with reasonable accuracy at any time the financial position of the Charity and Group and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the Charity’s constitution, are also responsible for safeguarding the assets of the Charity and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
- » select suitable accounting policies and then apply them consistently;
- » observe the methods and principles in the Charities SORP;
- » make judgements and estimates that are reasonable and prudent;
## **Independent Auditor**
Crowe U.K. LLP have indicated their willingness to continue in office and a resolution concerning their reappointment will be proposed at the Annual General Meeting.
## **On behalf of the Council on 30 May 2023.**
## **Carey Leonard**
Treasurer
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## Financial Review | Chief Operating Officer’s Report
The College was, and is, well placed to handle the current financial challenges of an inflationary environment. The Group recorded a Net Deficit of £0.1m (2021: Net Deficit £0.7m).
**Financial statements for the year ended 31 July 2022**
||**2021-22**|**2020-21**|**2019-20**|**2018-19**|**2017-18**|
|---|---|---|---|---|---|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|College operations|817|841|-753|1,683|2,129|
|Abberley Hall Operations|-687|-1,021|-392|-|-|
|MCEL Net (Defcit)/ income|63|-120|349|1,129|845|
|CG Net Income|331|-|-|-|-|
|MCIL Net Income|1,802|1,672|1,430|-|-|
|Furlough scheme grant income|-|268|933|-|-|
|**EBITDA**|**2,326**|**1,640**|**1,567**|**2,812**|**2,974**|
|Depreciation|-2,549|-2,356|-2,427|-2,245|-2,217|
|SWAP movement|525|338|1|-83|328|
|Interest & SWAP payments|-402|-333|-345|-356|-389|
|Interest received|9|3|37|29|31|
|**Net (Defcit)/Income***|-91|-708|-1,167|157|727|
Operationally, the College continued with its good financial management to reduce costs in line with the lost income and to adopt a prudent approach to capital expenditure.
The professional approach of the College to fundraising and the generosity of the College family resulted in another year of substantial donations from the Malvernian Society (£0.4m). The College continues to focus on fundraising to support its capital programme and increasingly to provide means tested bursaries - all funds are received by and held in the Malvernian Society Limited until released to the College (as set out in Note 19) and are not consolidated into the financial statements of the College. Over the last 10 years, funds of circa £14m have been raised through direct gifts and legacies from our alumni and parent body. for which we are most grateful.
The revenue and expenditure results are set out in the Group Statement of Financial Activities on page 78. The results of Abberley Hall Limited are consolidated. The Group results are summarised on the left table.
- The 2019-20 balance did not agree to the Statement of Financial Activities as the introduction of the Abberley Hall assets was omitted from the above table.
Earnings before depreciation and interest of £2.32m (2021: £1.63m) were an improvement on last year. The contribution from the Trading operations rose to £2.2m (2021: £1.5m). College operations generated an overall surplus of £0.8m (2021: Loss £0.8m), this includes donations from the Malvernian Society. The results include the annual trading performance of Abberley Hall which incurred a loss of £0.8m, an improvement from prior year but requiring an intensive focus on pupil number growth to restore financial sustainability.
As a result of the broader economic uncertainties resulting from inflation and other political issues, which are likely to continue in the following years, the College continues to review its cost base. There is a focus on cost control and improving the College’s core systems to improve efficiency. Consultations have previously been undertaken on TPS with a full withdrawal at Abberley Hall and a partial withdrawal at the College for new employees. The College remains committed to the ongoing development and enhancement of the facilities and is conducting a detailed review of future capital programmes, this will include the plan to renovate the Music School. In the meantime, expenditure is being focused on the core repair and maintenance of the College sites, alongside the on-going refurbishment of the boarding houses.
On the balance sheet, total net assets for the Group, with all land and buildings stated at cost less depreciation, amount to £22.1m (2021: £22.2m). Net current assets at July 2022 were £3.2m (2021: £4.4m). As a result of FRS 102, the valuation of the SWAP is reported on the balance sheet as at July 2022 and 2021 year ends. The movement in the valuations, which were provided by Lloyds Banking Group PLC, are shown in the Statement of Financial Activities.
The loans to Abberley Hall have been classified as due within more than one year within the balance sheet, however given that closure of the School has now been announced post 2022/23, it is likely that, in line with the terms of the agreements, the loans will be called in.
In December 2020, the College arranged a loan facility of £1.0m with Lloyds Banking Group PLC. The final payment date of the loan is 11 years after draw down, which was 14 December 2020. In July 2020, as a precaution against potential adverse economic conditions over the next few years, the College arranged a loan facility (CBILS) of £5.0m with Lloyds Banking Group PLC. The final repayment date of the loan is 6 years after draw down which was 27 July 2020. In May 2007, the College arranged a loan facility of £13.5m with Lloyds Banking Group PLC. The final repayment date of the loan is 20 years after the Commitment Termination date, which was August 2011.
A loan of £3.0m was drawn down in December 2012. This loan is being repaid over 14 years and repayment commenced in December 2013. The total combined amount of the drawdown on all facilities at the yearend was £11.7m. With cash and short-term deposits of £8.1m, the net debt at 31 July 2022 was £3.6m (2021: £4.4m). The College is fully compliant with all its banking covenants.
The College places excess funds on deposit with Lloyds Banking Group plc.
## **Malvern College Enterprises Limited**
The College has a majority shareholding (80,899 of 80,900 shares) in its trading subsidiary, which carries out non-charitable trading activities for the College. Although Malvern College Enterprises Limited (MCEL) made a profit for the year, its previous year loss means it still does not have distributable reserves, so will not make a gift aid payment to the College (2021: £Nil). The trading operations of MCEL include membership and hiring of the Sports Complex, the letting of College facilities for holiday sports camps, conferences and weddings and commission from uniform and book sales. It previously also provided an in-house guardianship service, but this activity was transferred to a new entity, College Guardians Limited, on 3 September 2021.
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
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73
Financial Review | Chief Operating Officer’s Report
## **Malvern College International Limited**
The College has a 100% shareholding in its trading subsidiary, which carries out non-charitable trading activities relating to overseas schools for the College. MCIL will make a gift aid payment of its trading surplus for the current year of £1.8m (2021: £1.67m) to the College, thereby transferring all of its taxable profits to the College. The operations of MCIL continue to grow with the launch of Malvern College Tokyo in September 2023 and several new initiatives being considered for the medium to long term.
## **College Guardians Limited**
As above, the guardianship services were incorporated into a new stand-alone entity called College Guardians Limited in September 2021. This company is a wholly owned subsidiary of the College and will make a gift aid payment of its trading surplus for the current year of £0.3m to the College, thereby transferring all of its taxable profits to the College.
## **Reserves**
## Unrestricted funds are needed:
(a) to provide funds which can be designated to specific rebuilding and refurbishment projects to enable the College to provide boarding accommodation that complies fully with the Boarding School: National Minimum Standards, and teaching accommodation that meets Independent Schools Inspection standards; and
(b) to provide a financial cushion that will enable the College to continue to function as an independent school in the event of a significant fall in pupil numbers (and thus fee income).
Free reserves are unrestricted funds (including designated) after deducting stocks and fixed assets net of borrowing. The financial reserves we aim to hold is equivalent to one term’s operating expenditure, c£8m. Unrestricted funds are £22.0m (2021: £22.1m) which includes our current cash holding of £8.1m (2021: £9.0m). The level of reserves is considered sufficient to meet the identified needs.
The unrestricted College fund is £17.8m (2021: £17.6m) and the Group’s free reserves are £1.7m (2021: £3.2m).
In 2020-21, the College Council agreed to designate 25% of the MCIL gift aid payment to a designated fund. This year £0.45m has been transferred. The amount of this fund is £1.55m (2021: £1.1m) and is intended to help fund means-tested bursaries.
The College Council carefully and regularly monitors the College’s financial performance against budget including inter alia pupil numbers (gross fee income), operating costs and capital expenditure on the capital projects.
The College’s policy on restricted funds is to record separately donations, grants and other sources of fundraising where restrictions are imposed that are narrower than the College’s overall objectives. Restricted funds are £0.15m (2021: £0.15m).
## Independent Auditor’s Report[*]
## **Opinion**
## **Basis for opinion**
We have audited the financial statements of Malvern College for the year ended 31 July 2022 which comprise the consolidated Statement of Financial Activities, the Group and College Balance Sheets, the Group Statement of Cash Flows 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).
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 group 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.
In our opinion the financial statements:
Conclusions relating to going concern
In auditing the financial statements, we have concluded that Council’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
- » give a true and fair view of the state of the group’s and the parent charity’s affairs as at 31 July 2022 and of the group’s income and expenditure, for the year then ended;
- » have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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 charity’s or the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are
- » have been prepared in accordance with the requirements of the Charities Act 2011.
authorized for issue.
- to the Council members of Malvern College
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
Council are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 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.
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
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Financial Review | Independent Auditor’s Report*
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
» the information given in the financial statements is inconsistent in any material respect with Report of Council; or
- » sufficient and proper accounting records have not been kept by the parent charity; or
- » the financial statements are not in agreement with the accounting records and returns; or
- » we have not received all the information and explanations we require for our audit.
## **Responsibilities of Council**
As explained more fully in the Statement of Council’s Responsibilities statement, Council 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 Council determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
- to the Council members of Malvern College
In preparing the financial statements, Council are responsible for assessing the group and the parent charity’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 charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 151
of the Charities Act 2011 and report in accordance with the Acts and relevant regulations made or having effect thereunder.
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.
Details of the extent to which the audit was
considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of noncompliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charity and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements.
The laws and regulations we considered in this
context were the Charities Act 2011, together with the Charities SORP (FRS 102). 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 to the charity’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent School Standards) Regulations 2014.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of Council and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be with the completeness and accuracy of income, and the override of controls by management.
Our audit procedures to respond to these risks included enquiries of management, and the Audit Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, designing audit procedures over non-fee income, reviewing regulatory correspondence with the Charity Commission, Independent Schools Inspectorate and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is
an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## **Crowe U.K. LLP**
Statutory Auditor 4th Floor, St James House St James Square Cheltenham GL50 3PR
## 31 May 2023
Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
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77
## Group Statement of Financial Activities for the year ended 31 July 2022
||||Unrestricted funds|Restricted|Year ended 31|Year ended 31|
|---|---|---|---|---|---|---|
|||General|Designated|funds|July 2022 Total|July 2021 Total|
||**Notes**|**£**|**£**|**£**|**£**|**£**|
|**INCOME FROM:**|||||||
|**Charitable activities:**|||||||
|College fees|2|23,625,092|-|-|**23,625,092**|20,819,548|
|Ancillary trading income|3|1,448,693|-|-|**1,448,693**|950,071|
|**Other**|3|1,059|-|-|**1,059**|15,820|
|**Trading activities:**|||||||
|Trading income|5|3,729,568|-|-|**3,729,568**|2,707,136|
|Non-ancillary trading income|3|728,704|-|-|**728,704**|579,086|
|**Investments**|6|8,792|-|-|**8,792**|3,003|
|**Donations and Grants**|4|240|-|394,700|**394,940**|1,300,167|
|**TOTAL**||29,542,148|-|394,700|**29,936,848**|26,374,831|
|**EXPENDITURE ON:**|||||||
|**Raising funds:**|||||||
|Trading expenses|7|1,264,415|-|-|**1,264,415**|1,129,998|
|Financing costs|7|401,576|-|-|**401,576**|333,171|
|**Charitable activities:**|||||||
|Provision of Education|7|28,290,481|-|402,382|**28,692,863**|27,420,142|
|Donation to TDMCP|7|194,286|-|-|**194,286**|166,751|
|**TOTAL**|7|30,150,758|-|402,382|**30,553,140**|25,790,222|
|Net (expenditure)/income before fair value|||||||
|movements on fnancial instruments||(608,610)|-|(7,682)|**(616,292)**|(1,045,311)|
|Movement of SWAP liability|18|524,930|-|-|**524,930**|337,769|
|**Net (expenditure)/ income**||(83,680)|-|(7,682)|**(91,362)**|(707,542)|
|Transfers between funds|19|450,578|450,578|-|**-**|-|
|**Net movement in funds**||(534,258)|450,578|(7,682)|**(91,362)**|(707,542)|
|**RECONCILIATION OF FUNDS**|||||||
|Fund balances b/f 1 August|19|20,973,289|1,099,756|153,260|**22,226,305**|22,933,847|
|**Fund balances c/f 31 July**|19|20,439,030|1,550,334|145,578|**22,134,943**|22,226,305|
The notes on page 82 to 111 form
Year ended 31
part of the financial statements.
## College Statement of Financial Activities for the year ended 31 July 2022
||||Unrestricted funds|Restricted|Year ended 31|Year ended 31|The notes on page 82 to 111 form|
|---|---|---|---|---|---|---|---|
|||General|Designated|funds|July 2022 Total|July 2021 Total|part of the fnancial statements.|
||**Notes**|**£**|**£**|**£**|**£**|**£**||
|**Charitable activities:**||||||||
|College fees|2|21,370,595|-|-|**21,370,595**|18,670,655||
|Ancillary trading income||1,313,040|-|-|**1,313,040**|814,017||
|MCIL Gift Aid|5|1,802,310|-|-|**1,802,310**|1,672,534||
|**Trading activities:**||||||||
|Non-ancillary trading income||854,442|-|-|**854,442**|542,618||
|**Investments**||8,393|-|-|**8,393**|18,205||
|**Donations and Grants**|4|240|-|392,309|**392,549**|1,242,252||
|**Other**||-|-|-|**-**|15,820||
|**TOTAL**||25,349,020||392,309|**25,741,329**|22,976,101||
|**EXPENDITURE ON:**||||||||
|**Raising funds:**||||||||
|Financing costs||396,650|-|-|**396,650**|309,564||
|**Charitable activities:**||||||||
|Provision of Education||24,929,869|-|392,209|**25,322,078**|22,412,978||
|Donation to TDMCP||194,286|-|-|**194,286**|166,751||
|Abberley Hall Investment impairment||830,705|-|7,782|**838,487**|1,020,903||
|**TOTAL**||26,351,510|-|399,991|**26,751,501**|23,910,196||
|Net (expenditure)/income before fair value||||||||
|movements on fnancial instruments||(1,002,490)|-|(7,682)|**(1,010,172)**|(934,095)||
|Movement of SWAP liability|18|524,930|-|-|**524,930**|337,769||
|**Net (expenditure)/income**||(477,560)|-|(7,682)|**(485,242)**|(596,326)||
|Transfers between funds|19|(450,578)|450,578|-|**-**|-||
|**Net movement in funds**||(928,138)|450,578|(7,682)|**(485,242)**|(596,326)||
|**RECONCILIATION OF FUNDS**||||||||
|Fund balances b/f 1 August|19|21,065,722|1,099,756|153,260|**22,318,738**|22,915,064||
|**Fund balances c/f 31 July**|19|20,137,583|1,550,334|145,578|**21,833,496**|22,318,738||
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
78
79
## Group and College Balance Sheets as at 31 July 2022
||||Group||College|
|---|---|---|---|---|---|
|||**2022**|2021|**2022**|2021|
||**Notes**|**£**|£|**£**|£|
|**Fixed assets**||||||
|Tangible assets|10|**31,674,628**|32,554,969|**26,192,004**|27,118,766|
|Intangible assets|11|**118,990**|50,795|**118,990**|50,795|
|Investment in Abberley Hall Limited|12|**-**|-|**2,666,986**|3,505,473|
|Investments|12|**-**|-|**90,802**|90,801|
|**Total fxed assets**||**31,793,618**|32,605,764|**29,068,782**|30,765,835|
|**Current assets**||||||
|Stocks|13|**124,908**|120,768|**79,805**|90,914|
|Debtors|14|**2,949,242**|2,478,521|**5,982,118**|4,963,509|
|Cash at bank & in hand|23|**8,127,789**|9,004,890|**6,208,255**|7,395,338|
|**Total current assets**||**11,201,939**|11,604,179|**12,270,178**|12,449,761|
|**Creditors:**amounts falling||||||
|due within one year|15|**(8,035,380)**|(7,244,351)|**(6,785,990)**|(6,256,858)|
|**Net current assets**||**3,166,559**|4,359,828|**5,484,188**|6,192,903|
|**Total assets less current liabilities**||**34,960,177**|36,965,592|**34,552,970**|36,958,738|
|**Creditors:**amounts falling due after more than one year|16|**(12,825,234)**|(14,739,287)|**(12,719,474)**|(14,640,000)|
|**Total net assets**||**22,134,943**|22,226,305|**21,833,496**|22,318,738|
|**Total funds of the Group/College:**||||||
|Restricted funds|19|**145,578**|153,260|**145,578**|153,260|
|Unrestricted funds||||||
|College fund|19|**17,470,859**|17,556,205|**17,474,386**|17,571,818|
|Abberley Hall fund|19|**2,678,812**|3,509,517|**2,663,199**|3,493,904|
|Designated fund|19|**1,550,334**|1,099,756|**1,550,334**|1,099,756|
|Non-charitable trading fund|19|**289,361**|(92,433)|**-**|-|
|Total unrestricted funds||**21,989,365**|22,073,045|**21,687,918**|22,165,478|
|**Total Group funds**||**22,134,943**|22,226,305|**21,833,496**|22,318,738|
The financial statements on pages 82 to 111 were approved and authorised for issue by the Council on 30 May 2023 and were signed on its behalf by:
## **Robin Black**
Chair, Malvern College Council
The notes on pages 78 to 111 form
part of the financial statements.
## Group Statement of Cash Flows for the year ended 31 July 2022
||||**2022**||2021|
|---|---|---|---|---|---|
||Notes|**£**|**£**|£|£|
|**Cash fows from operating activities:**||||||
|**Net cash provided by operating activities**|22||**2,978,530**||2,663,554|
|**Cash fows from investing activities:**||||||
|Investment income||**8,792**||3,003||
|Payments to acquire tangible and intangible fxed assets||**(1,737,480)**||(2,174,742)||
|Receipts from sales of fxed assets||**1,209**||15,820||
|**Net cash used in investing activities**|||**(1,727,479)**||(2,155,919)|
|**Cash fows from fnancing activities:**||||||
|Financing costs||**(401,576)**||(333,171)||
|Repayment of bank loans||**(1,726,576)**||(631,408)||
|Funds advanced by new bank loan||**-**||1,000,000||
|**Net cash provided by fnancing activities**|||**(2,128,152)**||35,421|
|**Change in cash and cash equivalents in the**||||||
|**reporting period**|||**(877,101)**||543,056|
|**Cash and cash equivalents at the beginning**||||||
|**of the reporting period**|||**9,004,890**||8,461,834|
|**Cash and cash equivalents at the end of**||||||
|**the reporting period**|23||**8,127,789**||9,004,890|
The notes on pages 82 to 111 form part of the financial statements.
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
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81
Notes to the financial statements for the year ended 31 July 2022
## **Charity information**
Malvern College was incorporated in the United Kingdom under Royal Charter in 1929 and has no share capital. The College is registered as a charity with the Charity Commission England and Wales (registered no: 527578). Its registered and principal office is College Road, Malvern, Worcestershire, WR14 3DF. This is also the registered address of its trading subsidiaries. Abberley Hall Limited is a private company limited by shares, incorporated in England and Wales (company no: 00602279). Abberley Hall Limited is registered as a charity with the Charity Commission England and Wales (charity no: 527598). Its registered and principal office is Abberley Hall, Abberley, Worcester, Worcestershire, WR6 6DD.
## **1. Principal accounting policies**
The consolidated 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 (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The College meets the definition of a public benefit entity under FRS 102.
The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
## **Going Concern**
The College Council have considered the College’s ten-year financial forecasts to consider its ability to meet its liabilities as they fall due. They have considered the expectations of pupil numbers, forecast operating costs and current assets and do not believe there are material uncertainties over its ability to continue as a going concern. Accordingly the financial statements have been prepared on a going concern basis.
In light of the current climate the Trustees have undertaken planning and forecasting and continue to closely monitor the developing situation. Despite the current circumstances the Trustees believe that the College’s financial resources and contingency planning is sufficient to ensure the ability of the College to continue as a going concern for the foreseeable future, being at least twelve months from the date of
approval of these financial statements and therefore have prepared the financial statements on a going concern basis.
## **Basis of accounting**
The financial statements are prepared in accordance with the historical cost convention, with the exception of the derivative financial instrument held at fair value.
## **Basis of consolidation**
The Group Statement of Financial Activities, the Group Balance Sheet and the Consolidated Statement of Cash Flows include the financial statements of the College and its subsidiary undertakings made up to 31 July 2022, on a line-by-line basis. Intra group transactions and profits are eliminated fully on consolidation.
## **Donations**
Donations are credited to revenue when the College has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.
## **Fees and similar income**
Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided and it is probable that the income will be received. Fees receivable are stated after deducting allowances, scholarships, grants, bursaries and exhibitions allowed by the College and Abberley Hall Limited (the School).
## **Trading income**
MCEL, MCIL and CG’s trading income is accounted for in the period in which the income is earned. The College and Abberley Hall’s ancillary and non-ancillary trading income is accounted for in the period in which the income is earned.
## **Other income**
Non-fee but educational income is accounted for in
the period in which the income is earned.
## **Investment income**
Bank interest earned on funds on deposit is accounted for in the period in which the investment income is earned.
## **Advanced fees**
The College and the School offers parents the opportunity to pay for tuition fees in advance in accordance with a written contract. The amount received is invested and interest is accrued to contracts. This is treated as deferred income until the pupil joins the College or School whereupon the fees for each term is charged against the remaining balance and taken to income.
## **Final term deposits**
Final term deposits are deposits placed when pupils join the College or the School, which are offset against fees and disbursements due for the last term each pupil attends. All deposits are held as deferred revenue.
## **Government Grants:**
## **Job Retention Scheme**
Income from government grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the College or School has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably. Where entitlements occur before income is received, the income is accrued. Where income is received in advance of the College or School having entitlement to the funds the income is deferred.
## **Grants receivable**
Grants receivable are credited to the Statement of Financial Activities in the period in which they are receivable.
## **Expenditure**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. There are no costs which cannot be directly attributed to particular headings.
## **Termination payments**
Termination payments are accounted for as soon as the College or School is aware of the obligation to make the payment.
## **Bursaries, grants and allowances payable**
Grants from restricted funds are included as expenditure in the period for which the award is given. Bursaries and allowances from unrestricted funds towards college or school fees at the College and School are treated as a reduction in those fees.
## **Support costs**
Support costs comprise the direct costs, including staff, attributable to college or school activities, an appropriate apportionment of indirect costs and the school’s governance costs.
The College governance costs comprise the cost of external audit, the costs of Management Board and Council meetings and strategic salary costs. The strategic salary costs include the costs of preparing the statutory financial statements and the costs of senior staff involvement in the strategic management of the College.
## **Irrecoverable VAT**
Any irrecoverable VAT is charged to the Statement of Financial Activities or capitalised as part of the cost of the related asset, where appropriate.
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
82
83
Notes to the financial statements for the year ended 31 July 2022
## continued **1. Principal accounting policies**
## **Foreign currencies**
## **Pension costs**
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities are retranslated at the rate of exchange ruling at the Balance Sheet date.
The College and School contributes to the Teachers’ Superannuation Scheme at rates set by the Scheme Actuary and advised to the Council by the Scheme Administrator. The College and School contributes to one defined contribution scheme for non-teaching staff. Amounts paid in relation to these Schemes are charged to the Statement of Financial Activities when they fall due. All pension costs are allocated to unrestricted funds.
The functional and presentational currency of the College and School is considered to be GBP because that is the currency of the primary economic environment in which the College and School operates.
## **Recognition of liabilities**
## **Finance leases**
Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events.
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Charity. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Financial Activities so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
## **Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Council in furtherance of the general objectives of the College and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Council for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the College or School for particular purposes. The aim and use of each restricted fund is set out in the notes to the financial statements.
## **Operating leases**
Rentals applicable to operating leases are charged to the Statement of Financial Activities on a straight-line basis over the lease terms.
## **Tangible fixed assets**
Assets with a cost below £1,000 are not capitalised.
Land is not depreciated. Depreciation of other assets is calculated so as to write off the cost of tangible fixed assets, less their estimated residual values, over the expected useful economic lives of the assets concerned. Assets in the course of construction are not depreciated until they are brought into use. The principal annual rates, applied on a straight-line basis on other assets, used for this purpose are:
||%|
|---|---|
|Buildings|1.8-10.0|
|Computer equipment|25.0-33.0|
|Motor vehicles|25.0|
|Equipment and furniture|10.0-25.0|
## **Investments**
Investments in subsidiary undertakings are stated at
cost, but are written down to their realisable value if it is considered that there has been a permanent diminution in their value.
## **Stocks**
Stocks comprise uniform, books, stationery & food stores which are stated at the lower of cost and net realisable value.
## **Debtors**
Short term debtors are initially measured at transaction price, less any impairment. Prepayments
are measured at the amount prepaid.
## **Cash**
Cash is represented by cash in hand and deposits with financial institutions.
## **Creditors**
Creditors are initially measured at the transaction price.
## **Basic financial instruments**
The College 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.
## **Derivative financial instruments**
The College uses derivative financial instruments to reduce exposure to interest rate movements. The College does not hold or issue derivative financial instruments for speculative purposes.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are
subsequently re-measured to their fair value at each reporting date. The resulting gain or loss is recognised in the Statement of Financial Activities immediately.
## **Fair value measurement**
The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique. The value of the interest rate swap has been provided by Lloyds Bank.
## **JUDGEMENTS IN APPLYING**
## **ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY**
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The items in the financial statements where these estimates and judgements have been made include the following:
## **Useful economic lives of intangible and tangible assets**
The annual amortisation and depreciation charges for the intangible and tangible assets are sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See Note 10 for the tangible assets, Note 11 for the intangible assets and Note 1 for the useful lives for each class of assets.
## **Impairment of debtors**
The Group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See Note 14 for the net carrying amount of the debtors and associated impairment provision.
## **SWAP liability**
The value of the SWAP obligation was established by Lloyds Banking Group PLC.
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
84
85
Notes to the financial statements for the year ended 31 July 2022
## **2. Fee income**
|**2. Fee income**|||||||
|---|---|---|---|---|---|---|
|||**Group**|||**College**||
|**Tuition fee income comprised:**|**Year ended**||Year ended|**Year ended**||Year ended|
||**31 July 2022**||31 July 2021|**31 July 2022**||31 July 2021|
||**£**||£|**£**||£|
|Gross fees|**27,387,186**||26,316,701|**24,641,563**||23,506,205|
|Less: allowances, grants|**(4,026,616)**||(4,047,921)|**(3,535,490)**||(3,496,047)|
|Less: COVID-19 fee concession|**(8,668)**||(1,688,432)|**(8,668)**||(1,578,703)|
||**23,351,902**||20,580,348|**21,097,405**||18,431,455|
|Add back: Allowances paid|**273,190**||239,200|**273,190**||239,200|
|for by restricted funds|||||||
||**23,625,092**||20,819,548|**21,370,595**||18,670,655|
## **3. Other income**
|**3. Other income**|||
|---|---|---|
|**Group**|**Year ended**|Year ended|
||**31 July 2022**|31 July 2021|
||**£**|£|
|Non-ancillary trading income|||
|Lettings and other income|**728,704**|579,086|
||**728,704**|579,086|
|**Ancillary trading income**|||
|Music, speech and drama income|**517,150**|507,843|
|Book sales|**94,819**|78,888|
|Registration fees, trip income and other income|**836,724**|363,340|
||**1,448,693**|950,071|
|**Other income**|||
|Gain on sale of fxed assets|**1,059**|15,820|
## **4. Grants and donations**
|||**Group**|||**College**|
|---|---|---|---|---|---|
||**Year ended**||Year ended|**Year ended**|Year ended|
||**31 July 2022**||31 July 2021|**31 July 2022**|31 July 2021|
||**£**||£|**£**|£|
|Furlough grant income|**-**||315,467|**-**|268,072|
|Restricted donations and gifts|**394,700**||984,360|**392,309**|973,840|
|Unrestricted donations and gifts|**240**||340|**240**|340|
||**394,940**||1,300,167|**392,549**|1,242,252|
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
86
87
Notes to the financial statements for the year ended 31 July 2022
## **5. Subsidiary undertakings**
||Results per subsidiary|Consolidation|**Year ended**|Year ended|
|---|---|---|---|---|
||fnancial statements|entries|**31 July 2022**|31 July 2021*|
||£|£|**£**|£|
|**Turnover**|793,396|-|**793,396**|679,981|
|Inter-group income|52,855|(52,855)|**-**|-|
|Cost of sales|(195,645)|-|**(195,645)**|(122,616)|
|**Gross proft**|650,606|(52,855)|**597,751**|557,365|
|Administration|(555,894)|-|**(555,894)**|(677,813)|
|Inter-group expenses|(31,500)|31,500|**-**|-|
|**Operating (loss)/ proft**|63,212|(21,355)|**41,857**|(120,448)|
|**(Loss)/proft before tax and Gift Aid**|63,212|(21,355)|**41,857**|(120,448)|
|Gift Aid|-|-|**-**|-|
|**Retained (loss)/proft for the year**|63,212|(21,355)|**41,857**|(120,448)|
|* After consolidation adjustments|||||
||||**2022**|2021|
||||**£**|£|
|Current assets|||**380,811**|605,817|
|Creditors: amounts falling due within one year|||**(319,232)**|(607,450)|
|Net current (liabilities)/assets|||**61,579**|(1,633)|
|Representing:|||||
|Share capital|||**809**|809|
|Share premium|||**89,991**|89,991|
|Proft and loss account|||**(29,221)**|(92,433)|
|Total shareholders (liabilities)/funds|||**61,579**|(1,633)|
## **a. Malvern College Enterprises Limited**
The College owns 80,900 of the total ordinary share capital, consisting of 80,900 ordinary shares of £0.01 each, of Malvern College Enterprises Limited (Company no: 02706656), which is engaged in the business of letting facilities at the College, providing a guardianship service and supplying uniforms and sportswear to the College and its pupils via a third party. The remaining share is held by the Malvernian Society Ltd.
On 3 September 2021, the Guardianship Services previously carried out by Malvern College Enterprises Limited were transferred to a new legal entity, College Guardians Limited under the same ownership and Governance structure as MCEL.
Its trading results for the year to 31 July 2022, as extracted from the audited financial statements, are summarised in the above left table.
The assets and liabilities of the subsidiary, Malvern College Enterprises Limited are summarised in the below left table.
|||Results per subsidiary|Consolidation|**Year ended**|Year ended|**b. Malvern College**|
|---|---|---|---|---|---|---|
|||fnancial statements|entries|**31 July 2022**|31 July 2021|**Int ernational Limited**|
|||£|£|**£**|£|The College owns 100% of the|
||**Turnover**|2,234,165|-|**2,234,165**|2,002,103|share capital, consisting of 1 or|
||Inter-group income|-|-|**-**|-|£1.00 each, of Malvern College|
||Cost of sales|(32,667)|-|**(32,667)**|(1,669)|Limited (Company no: 109074|
||**Gross proft**|2,201,498|-|**2,201,498**|2,000,434|engaged in the business of ove|
||Administration|(399,188)|-|**(399,188)**|(327,900)|schools. The company comme|
||Inter-group expenses|-|-|**-**|-|August 2017. The subsidiary d|
||**Operating proft**|1,802,310|-|**1,802,310**|1,672,534|of its taxable profts to the Colle|
||**Proft before tax and Gift Aid**
Gift Aid
**Retained proft**|1,802,310
(1,802,310)
-|-
1,802,310
1,802,310|**1,802,310**
**-**
**1,802,310**|1,672,534
-
1,672,534|trading results for the year to 3
extracted from the audited fna
are summarised in the above le|
|||||||The assets and liabilities of the|
||* After consolidation adjustments|||||Malvern College International L|
|||||||summarised in the below left ta|
|||||**2022**|2021||
|||||**£**|£||
||Current assets|||**2,163,375**|1,927,258||
||Creditors: amounts falling due within one year|||**(2,163,374)**|(1,927,257)||
||Net current assets|||**1**|1||
||Representing:||||||
||Share capital|||**1**|1||
||Proft and loss account|||**-**|-||
||Total shareholders funds|||**1**|1||
The College owns 100% of the total ordinary share capital, consisting of 1 ordinary share of £1.00 each, of Malvern College International Limited (Company no: 10907441), which is engaged in the business of overseas franchised schools. The company commenced trading in August 2017. The subsidiary donates most or all of its taxable profits to the College each year. Its trading results for the year to 31 July 2022, as extracted from the audited financial statements, are summarised in the above left table.
The assets and liabilities of the subsidiary, Malvern College International Limited are summarised in the below left table.
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
88
89
Notes to the financial statements for the year ended 31 July 2022
## continued **5. Subsidiary undertakings**
|**5. Subsidiary undertakings**|continued|||
|---|---|---|---|
||Results per subsidiary|Consolidation|**Period ended**|
||fnancial statements|entries|**31 July 2022**|
||£|£|**£**|
|**Turnover**|581,284|-|**581,284**|
|Inter-group income|-|-|**-**|
|Cost of sales|(32,501)|-|**(32,501)**|
|**Gross proft**|548,783|-|**548,783**|
|Administration|(218,115)|-|**(218,115)**|
|Inter-group expenses|-|-|**-**|
|**Operating proft**|330,668|-|**330,668**|
|**Proft before tax**|330,668|-|**330,668**|
|**Retained proft**|330,668|-|**330,668**|
|* After consolidation adjustments||||
||||**2022**|
||||**£**|
|Current assets|||**803,632**|
|Creditors: amounts falling due within one year|||**(472,963)**|
|Net current assets|||**330,669**|
|Representing:||||
|Share capital|||**1**|
|Proft and loss account|||**330,668**|
|Total shareholders funds|||**330,669**|
## **c. College Guardians Limited**
The College owns 100% of the total ordinary share capital, consisting of 1 ordinary share of £1.00 each, of College Guardians Limited (Company no: 13602217), which is engaged in the business of guardianship services. The company commenced trading on 3 September 2021. The subsidiary will donate most or all of its taxable profits to the College each year. Its trading results for the period to 31 July 2022, as extracted from the audited financial statements, are summarised in the above left table.
The assets and liabilities of the subsidiary, College Guardians Limited are summarised in the below left table.
||Results per subsidiary|Consolidation|**Year ended**|Year ended|
|---|---|---|---|---|
||fnancial statements|entries|**31 July 2022**|31 July 2021*|
||£|£|**£**|£|
|**Income**|||||
|Charitable activities|2,356,679|-|**2,356,679**|2,269,801|
|Trading activities|207,585|-|**207,585**|52,288|
|Other income|399|-|**399**|411|
|Donations and grants|2,391|-|**2,391**|57,915|
|**Total income**|2,567,054|-|**2,567,504**|2,380,415|
|**Expenditure**|||||
|Raising funds|(28,170)|23,244|**(4,926)**|23,607|
|Charitable activities|(3,377,371)|-|**(3,377,371)**|3,362,098|
|**Total Expenditure**|(3,405,541)|23,244|**(3,382,297)**|3,385,705|
|**Net expenditure**|(838,487)|23,244|**(815,243)**|(1,005,290)|
|Funds balances b/f 1 September|3,505,473|15,613|**3,521,086**|4,526,376|
|**Funds balances c/f 31 July**|2,666,986|38,857|**2,705,843**|3,521,086|
|* After consolidation adjustments|||||
||||**2022**|2021|
||||**£**|£|
|Fixed assets|||**5,482,624**|5,436,203|
|Current assets|||**464,345**|508,841|
|Creditors: amounts falling due within one year|||**(644,223)**|(325,284)|
|Net current assets|||**179,878**|183,557|
|Creditors: amounts falling due after more than|one year||**(2,635,760)**|(2,114,287)|
|Total net assets|||**2,666,986**|3,505,473|
|Representing:|||||
|Restricted funds|||**3,787**|11,569|
|Unrestricted funds|||**2,663,199**|3,493,904|
|Total shareholders funds|||**2,666,986**|3,505,473|
## **d. Abberley Hall Limited**
In June 2019, an association between Malvern College and Abberley Hall Limited (Company Number: 00602279 Charity Number: 527598) was agreed. Malvern College have now appointed 50% of the Abberley Hall Governors and the Chair. The new Board was constituted in September 2019 and The College is therefore deemed to have control of Abberley Hall. The results are consolidated into the College’s results from 1st August 2019. The subsidiary will retain any surpluses generated in future years. Its results for the year to 31 July 2022, as extracted from the audited financial statements, are summarised in the above left table.
The assets and liabilities of the subsidiary, Abberley Hall Limited are summarised in the below left table.
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
90
91
Notes to the financial statements for the year ended 31 July 2022
## **6. Investment income**
|**6. Investment income**|||
|---|---|---|
||**Year ended**|Year ended|
|**Group**|**31 July 2022**|31 July 2021|
||**£**|£|
|Bank and building society interest|**8,792**|3,003|
## **7. Expenditure**
|**7. Expenditure**||||||
|---|---|---|---|---|---|
|||||**Year ended**|Year ended|
|**Group**|Staff costs|Other costs|Depreciation|**31 July 2022**|31 July 2021|
||£|£|£|**£**|£|
|**Raising funds**||||||
|Trading expenses|546,037|718,378|-|**1,264,415**|1,129,998|
|Financing costs|-|401,576|-|**401,576**|333,171|
||546,037|1,119,954|-|**1,665,991**|1,463,169|
|**Charitable activities**||||||
|Teaching|9,769,521|1,430,736|-|**11,200,257**|10,512,718|
|Welfare|1,870,756|3,195,408|-|**5,066,164**|4,404,768|
|Premises|876,182|3,569,013|2,549,476|**6,994,671**|6,165,029|
|Support costs of schooling|3,015,121|2,416,651|-|**5,431,772**|4,707,707|
|School’s operating costs|15,531,580|10,611,808|2,549,476|**28,692,864**|25,790,222|
|**Donation to TDMCP**|-|194,286|-|**194,286**|166,751|
|**Total**|16,077,617|11,926,048|2,549,476|**30,553,141**|27,420,142|
Included within support costs are governance costs of £64,193 (2021: £50,570) which mainly comprise the costs of administering the charity, audit and tax fees and Council’s meeting expenses.
## **8. Net (expenditure)/income**
|**8. Net (expenditure)/income**|||
|---|---|---|
||**Year ended**|Year ended|
|**Group**|**31 July 2022**|31 July 2021|
||**£**|£|
|**Net (expenditure)/income is stated after charging/(crediting):**|||
|Depreciation|**2,549,476**|2,496,631|
|Operating lease rentals – equipment|**60,397**|42,624|
|Operating lease rentals – property|**19,500**|19,500|
|Fees payable to the College’s auditor for the audit of the parent|**22,710**|32,680|
|charity and the consolidated fnancial statements|||
|Fees payable to the College’s auditor for the audit of the College’s|**20,885**|22,885|
|subsidiaries pursuant to legislation|||
|Fees payable to the College’s auditor for non-audit services|**3,320**|3,750|
|Gain on disposal of fxed assets|**(1,059)**|(15,820)|
## **9. Staff costs**
|**9. Staf costs**|||
|---|---|---|
||**Year ended**|Year ended|
|**Group**|**31 July 2022**|31 July 2021|
||**Number**|Number|
|**The monthly average headcount of persons employed by the Group during the year was:**|||
|Teaching|**187**|191|
|Pastoral|**55**|49|
|Domestic|**77**|83|
|Administration|**129**|143|
|Trading|**52**|19|
||**500**|485|
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
92
93
Notes to the financial statements for the year ended 31 July 2022
## continued **9. Staff costs**
||**Year ended**|Year ended|
|---|---|---|
|**Group**|**31 July 2022**|31 July 2021|
||**£**|£|
|Wages and salaries|**13,219,033**|12,660,262|
|Social security costs|**1,280,386**|1,191,180|
|Pension contributions (note 21)|**1,646,830**|1,669,185|
|Apprenticeship levy|**39,328**|36,252|
||**16,185,577**|15,556,879|
## **The number of employees whose emoluments exceeded £60,000 was:**
||**Year ended**|Year ended|
|---|---|---|
|**Group**|**31 July 2022**|31 July 2021|
||**Number**|Number|
|£200,001 - £210,000|**1**|-|
|£190,001 - £200,000|**-**|1|
|£130,001 - £140,000|**1**|-|
|£100,001 - £110,000|**2**|-|
|£90,001 - £100,000|**1**|2|
|£80,001 - £90,000|**5**|7|
|£70,001 - £80,000|**-**|2|
|£60,001 - £70,000|**20**|20|
||**Year ended**|Year ended|
|**Senior Management Team Remuneration**|**31 July 2022**|31 July 2021|
||**£**|£|
|Senior Management Team Remuneration|**777,913**|742,614|
The above amounts include employers’ National Insurance and pension contributions.
For those staff whose emoluments exceed £60,000 pension contributions amounting to £417,108 (2021: £442,572) were paid by the College. 22 (2021: 27) of the above staff members have benefits accruing under a defined benefit scheme and 8 (2021: 5) have benefits accruing under a money purchase scheme.
During the year, the Group made redundancy/ termination payments amounting to £33,651 (2021: £219,723).
No Council members received remuneration in either accounting period. 6 Council members received reimbursements totalling £3,890 for travel expenses (2021: 1 Council member received £911). Mrs S Duff was paid £nil (2021: £1,830) by Abberley Hall Limited for consultancy services during the year.
## **10. Tangible fixed assets**
||**Freehold land**|**Computer**|**Motor**|**Equipment**|**Assets under**||
|---|---|---|---|---|---|---|
|**Group**|**& buildings**|**equipment**|**vehicles**|**& furniture**|**construction**|**Total**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|**Cost**|||||||
|Total at 31 July 2021|52,893,910|1,923,642|409,023|3,323,048|701,904|**59,251,527**|
|Additions|254,276|95,206|46,035|363,783|692,637|**1,451,937**|
|Abberley Hall additions|156,134|16,254|-|19,779|-|**192,167**|
|Transfers|979,924|-|-|50,625|(1,030,549)|**-**|
|Disposals|-|-|(3,700)|(1,763)|-|**(5,463)**|
|**31 July 2022**|**54,284,244**|**2,035,102**|**451,358**|**3,755,472**|**363,992**|**60,890,168**|
|**Accumulated Depreciation**|||||||
|31 July 2021|22,760,848|1,619,383|308,456|2,007,871|-|**26,696,558**|
|Charge in year|1,978,779|106,172|46,784|246,964|-|**2,378,699**|
|AH Charge in year|109,168|8,538|-|27,890|-|**145,596**|
|Transfers|-|-|-|-|-|**-**|
|Disposals|-|-|(3,700)|(1,613)|-|**(5,313)**|
|**31 July 2022**|**24,848,795**|**1,734,093**|**351,540**|**2,281,112**|**-**|**29,215,540**|
|**Net book values**|||||||
|**31 July 2022**|**29,435,449**|**301,009**|**99,818**|**1,474,360**|**-**|**31,674,628**|
|31 July 2021|30,133,062|304,259|100,567|1,315,177|701,904|32,554,969|
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
94
95
Notes to the financial statements for the year ended 31 July 2022
## continued **10. Tangible fixed assets**
||**Freehold land**|**Computer**|**Motor**|**Equipment**|**Assets under**||
|---|---|---|---|---|---|---|
|**Group**|**& buildings**|**equipment**|**vehicles**|**& furniture**|**construction**|**Total**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|**Cost**|||||||
|31 July 2021|47,345,419|1,405,823|409,023|3,116,245|687,717|**52,964,227**|
|Additions|254,276|95,206|46,035|363,783|692,637|**1,451,937**|
|Transfers|965,749|-|-|50,625|(1,016,374)|**-**|
|Disposals|-|-|(3,700)|-|-|**(3,700)**|
|**31 July 2022**|**48,565,444**|**1,501,029**|**451,358**|**3,530,653**|**363,980**|**54,412,464**|
|**Accumulated Depreciation**|||||||
|31 July 2021|22,410,680|1,219,350|308,456|1,906,975|-|**25,845,461**|
|Charge in year|1,978,779|106,172|46,784|246,964|-|**2,378,699**|
|Transfers|-|-|-|-|-|**-**|
|Disposals|-|-|(3,700)|-|-|**(3,700)**|
|**31 July 2022**|**24,389,459**|**1,325,522**|**351,540**|**2,153,939**|**-**|**28,220,460**|
|**Net book values**|||||||
|**31 July 2022**|**24,175,985**|**175,507**|**99,818**|**1,376,714**|**363,980**|**26,192,004**|
|31 July 2021|24,934,739|186,473|100,567|1,209,270|687,717|**27,118,766**|
## **11. Intangible fixed assets**
|||**Group**|||**College**||
|---|---|---|---|---|---|---|
||**Year ended**||Year ended|**Year ended**||Year ended|
||**31 July 2022**||31 July 2021|**31 July 2022**||31 July 2021|
||**£**||£|**£**||£|
|**Cost at 31 July 2021**|**136,153**||-|**136,153**||-|
|Additions|**93,376**||6,651|**93,376**||6,651|
|Transfers|**-**||129,502|**-**||129,502|
|Disposals|**-**||-|**-**||-|
|31 July 2022|**229,529**||136,153|**229,529**||136,153|
|**Accumulated depreciation**|||||||
|31 July 2021|**85,358**||-|**85,358**||-|
|Charge in the year|**25,181**||28,310|**25,181**||28,310|
|Transfers|**-**||57,048|**-**||57,048|
|31 July 2022|**110,539**||85,358|**110,539**||85,358|
|**Net Book Value**|||||||
|**31 July 2022**|**118,990**||50,795|**118,990**||50,795|
|31 July 2021|**50,795**||-|**50,795**||-|
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
96
97
Notes to the financial statements for the year ended 31 July 2022
## **12. Fixed asset investment**
|**12. Fixed asset investment**|||
|---|---|---|
|**College**|**2022**|2021|
||**£**|£|
|Investment in subsidiary companies|**90,802**|90,801|
|**College**|**2022**|2021|
||**£**|£|
|**Investment in Abberley Hall at 1 August**|**3,505,473**|4,526,376|
|Impairment during the year (equivalent to loss in Abberley Hall)|**(838,487)**|(1,020,903)|
|**Value at 31 July**|**2,666,986**|3,505,473|
Malvern College has a majority shareholding in Malvern College Enterprises Limited (see note 5). In July 2013, 80,000 shares of £0.01 were issued and allotted to Malvern College. Malvern College paid £0.01 per share and paid £800 in total. In January 2016, 900 shares of £0.01 were issued and allotted to Malvern College. Malvern College paid £100 per share and paid £90,000 in total. The transaction generated share premium of £89,991.
Malvern College has a 100% shareholding in Malvern College International Limited (see note 5).
In August 2017, 1 share of £1.00 was issued and allotted to Malvern College. Malvern College paid £1 per share and paid £1 in total. The transaction generated share premium of £nil.
Malvern College has a 100% shareholding in College Guardians Limited (see note 5).
In September 2021, 1 share of £1.00 was issued and allotted to Malvern College. Malvern College paid £1 per share and paid £1 in total. The transaction generated share premium of £nil.
The College holds no shares in Abberley Hall Limited which is consolidated due to control, not share ownership. As a result of the closure announcement post 2022/23, the College is expecting to call in its loans. This would result in the fixed asset investment becoming a current asset investment.
## **13. Stocks**
|**13. Stocks**|||||||
|---|---|---|---|---|---|---|
|||**Group**|||**College**||
||**2022**||2021|**2022**||2021|
||**£**||£|**£**||£|
|Stationery and consumables|**124,908**||120,768|**79,805**||90,914|
## **14. Debtors**
||||**Group**|||**College**||
|---|---|---|---|---|---|---|---|
|||**2022**||2021|**2022**||2021|
|||**£**||£|**£**||£|
||Trade debtors|**1,249,854**||1,019,577|**-**||-|
||Fee debtors|**703,636**||667,003|**602,416**||558,472|
||Amounts owed by Group undertakings|**-**||-|**4,515,292**||3,846,928|
||Other debtors|**240,942**||221,088|**184,049**||103,312|
||Prepayments|**754,810**||537,699|**680,361**||442,146|
||Accrued income|**-**||33,154|**-**||12,651|
|||**2,949,242**||2,478,521|**5,982,118**||4,963,509|
Included in the Amounts owed by group
undertakings are loans totalling £2.53m made to Abberley Hall Limited. These loans are repayable in more than 12 months’ time. Loans of £1.0m and £1.015m were drawn down in July and December 2020 respectively. Further loans of £15,000, £250,000 and £250,000 were drawn down in October, November and December 2021.These loans will be repaid over 10 years commencing at a point in the future when business performance improves sufficiently to generate the required cash flow to enable the repayments to commence. The interest rate associated is 2.32% (fixed rate).
Included in other debtors is an amount of
£21,088 (2021: £21,133) which represents loans to staff, of which £11,868 (2021: £12,533) is repayable after more than one year.
Trade, fee and other debtors are stated after impairment provisions totalling £393,137 (2021: £432,029).
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
98
99
Notes to the financial statements for the year ended 31 July 2022
## **15. Creditors: amounts falling due within one year**
|||**Group**|||**College**||
|---|---|---|---|---|---|---|
||**2022**||2021|**2022**||2021|
||**£**||£|**£**||£|
|Bank loan (note 16)|**1,852,771**||1,841,589|**1,852,771**||1,841,589|
|Trade creditors|**1,807,128**||1,098,915|**1,654,864**||961,233|
|Amounts owed to Group undertakings|**-**||-|**105,473**||34,398|
|Entrance fee deposits|**640,693**||564,313|**623,128**||555,013|
|Advanced fees (note 17)|**1,477,652**||2,158,406|**1,340,770**||2,038,558|
|Taxation and social security|**396,730**||330,537|**283,854**||258,828|
|Other creditors|**569,926**||390,763|**258,344**||146,091|
|Accruals|**1,027,283**||677,280|**610,501**||400,998|
|Deferred income|**263,197**||182,548|**56,285**||20,150|
||**8,035,380**||7,244,351|**6,785,990**||6,256,858|
## **16. Creditors: amounts falling due after more than one year**
|||**Group**|||**College**||
|---|---|---|---|---|---|---|
||**2022**||2021|**2022**||2021|
||**£**||£|**£**||£|
|Bank Loan|**9,854,690**||11,592,448|**9,854,690**||11,592,448|
|SWAP obligation (note 18)|**342,778**||867,708|**342,778**||867,708|
|Entrance fee deposits|**2,505,135**||2,123,227|**2,427,433**||2,062,462|
|Advanced fees (note 17)|**122,631**||155,904|**94,573**||117,382|
||**12,825,234**||14,739,287|**12,719,474**||14,640,000|
## **Bank loan maturity statement**
|**Bank loan maturity statement**|||
|---|---|---|
|**Group and College**|**2022**|2021|
|**Bank loan maturity analysis**|**£**|£|
|In less than one year|**1,852,771**|1,841,589|
|In more than one year but not more than two years|**1,861,270**|1,878,860|
|In more than two years but not more than fve years|**4,734,730**|5,660,909|
|In more than fve years|**3,258,690**|4,052,679|
||**11,707,461**|13,434,037|
**Facility 1** – the bank loan is repayable in 80 consecutive quarterly instalments which commenced on 15 November 2011. **Facility 2** – the bank loan is repayable in 168 consecutive monthly instalments which commenced on 5 December 2013. **CBIL** – the bank loan is repayable in 60 consecutive monthly instalments which commence on 29 August 2022. **Facility 3** – the bank loan is repayable in 120 consecutive monthly instalments which commence on 14 December 2022. The Swap transaction fixed the interest rate for 75% of the total borrowing at 4.44% and the interest on remaining 25% is charged at 0.5% above the bank base rate or LIBOR.
Lloyds Banking Group plc has a first charge over the freehold land and buildings of Malvern College and a first charge over Other Asset known as negative pledge dated 28th April 1982.
The College had total bank borrowings of £11,707,461 as at 31 July 2022 (2021: £13,434,037).
In May 2007, the College arranged, with Lloyds Banking Group plc, bank borrowing consisting of a loan facility of £13,500,000. The final repayment date of the loan is 20 years after the Commitment Termination date which was August 2011 (Facility 1). A Swap transaction has also been entered into with Lloyds Banking Group plc to protect against adverse interest movements during the period of significant borrowing.
A loan of £3.0m (Facility 2) was drawn down in December 2012. This loan is being repaid over 14 years which commenced in December 2013.
A loan of £5.0m (CBIL) was drawn down in July 2021. This loan is being repaid over 5 years commencing in July 2022.
A loan of £1.0m was drawn down in December 2021. This loan is being repaid over 10 years commencing in December 2022. The bank loan % to value of secured assets is 32% (2021: 35%).
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
100
101
Notes to the financial statements for the year ended 31 July 2022
## **17. Advanced fees**
|**17. Advanced fees**||||||
|---|---|---|---|---|---|
|||**Group**|||**College**|
||**2022**||2021|**2022**|2021|
||**£**||£|**£**|£|
|Within two to fve years|**60,989**||79,071|**41,172**|79,071|
|Within one to two years|**62,753**||76,834|**53,401**|38,312|
|Over one year|**123,742**||155,905|**94,573**|117,383|
|Within one year|**1,350,122**||2,158,406|**1,340,770**|2,038,558|
||**1,473,864**||2,314,311|**1,435,343**|2,155,941|
||**Group**||Group|**College**|College|
|---|---|---|---|---|---|
||**£**||£|**£**|£|
|At 1 August 2021|||**301,157**||**212,766**|
|New contracts|35,705|||35,705||
|Amounts accrued to contracts|1,124|||1,124||
||||**36,829**||**36,829**|
|Amounts utilised in payment of fees|||**(153,746)**||**(103,876)**|
|**At 31 July 2022**|||**184,240**||**145,719**|
|**18. Financial instruments**||||||
|||**Group**|Group|**College**|College|
|||**2022**|2021|**2022**|2021|
|||**£**|£|**£**|£|
|Financial liabilities measured at fair value||**342,778**|867,708|**342,778**|867,708|
Financial liabilities measured at fair value comprise the interest rate swap. The movement on the swap during the year was £524,930 (2021: £337,769).
Parents may pay to the College tuition fees in advance. Such payments may be returned, subject to specific conditions, on the receipt of one term’s notice. Assuming pupils remain in the advanced fees payment scheme, payments will be applied to offset fees as outlined in the above left table.
Also included in advanced fees in creditors due within one year (note 15) are credit balances, of £1,416,042 (2021: £1,943,474) within the fees ledger.
The advanced fees balance represents the accrued liability under the contracts. The capital movements during the year are outlined in the below left table.
## **19. Funds**
|**19. Funds**||||||
|---|---|---|---|---|---|
|||||Transfers,||
||At|||other recognised|**At**|
|**Group**|1 August 2021|Income|Expenditure|gains/losses|**31 July 2022**|
||£|£|£|£|**£**|
|**Restricted funds**||||||
|Restricted donations|110,176|389,309|(389,209)|-|**110,276**|
|Restricted grants|31,515|3,000|(3,000)|-|**31,515**|
|Abberley Hall|11,569|2,391|(10,173)|-|**3,787**|
||153,260|394,700|(402,382)|-|**145,578**|
|**Unrestricted income funds**||||||
|Designated fund|1,099,756|-|-|450,578|**1,550,334**|
|College fund|17,556,205|23,368,640|(25,330,649)|1,876,662|**17,470,859**|
|Abberley Hall|3,509,517|2,564,663|(3,395,368)|-|**2,678,812**|
|Trading companies|(92,433)|3,608,845|(1,424,741)|(1,802,310)|**289,361**|
|Total General funds|20,973,289|29,542,148|(30,150,758)|74,352|**20,439,032**|
|(excluding Designated fund)||||||
|Total Group unrestricted funds|22,073,045|29,542,148|(30,150,758)|524,930|**21,989,365**|
|Total funds|22,226,305|29,936,848|(30,553,140)|524,930|**22,134,943**|
## **In reference to the below left ‘Funds’ table:**
## **Transfers**
Trading Company – The profit before tax and gift aid of Malvern College International Ltd. Further details are noted below.
College fund – The transfer relates to the trading companies transfer. The positive SWAP movement for the period of £524,930 is also included within the College funds transfer column.
## **Restricted funds**
Restricted donations – The balance is represented by donations not yet spent which have specific restrictions imposed by donors, the majority of which relates to donations for the hardship fund and some smaller fixed asset purchases.
Restricted grants – The balance is represented by grants not yet spent which have specific restrictions imposed by the donors for example prize funds.
## **Designated Fund**
The Designated Fund has historically represented 10% of net income to provide funds to help fund bursaries and infrastructure projects over a ten year time span. The College Council have agreed that going forward 25% of the Gift Aid payment received from MCIL would be allocated to the designated fund, in order to build an endowment fund for supporting means-tested bursaries in the future.
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
102
103
Notes to the financial statements for the year ended 31 July 2022
## **19a. Comparative Funds**
|||||Transfers,||
|---|---|---|---|---|---|
||At|||other recognised|**At**|
|**Group**|1 August 2020|Income|Expenditure|gains/losses|**31 July 2021**|
||£|£|£|£|**£**|
|**Restricted funds**||||||
|Restricted donations|110,176|973,840|(586,625)|(387,215)|**110,176**|
|Restricted grants|37,188|-|(5,673)|-|**31,515**|
|Abberley Hall|8,136|10,520|(7,087)|-|**11,569**|
||155,500|984,360|(599,385)|(387,215)|**153,260**|
|**Unrestricted income funds**||||||
|Designated fund|681,622|-|-|418,134|**1,099,756**|
|College fund|17,559,739|20,338,492|(22,321,410)|1,979,384|**17,556,205**|
|Abberley Hall|4,518,240|2,369,895|(3,378,618)|-|**3,509,517**|
|Trading companies|18,746|2,682,084|(1,120,729)|(1,672,534)|**(92,433)**|
|Total General funds (excluding|22,096,725|25,390,471|(26,820,757)|306,850|**20,973,289**|
|Designated fund)||||||
|Total Group unrestricted funds|22,778,347|25,390,471|(26,820,757)|724,984|**22,073,045**|
|Total funds|22,933,847|26,374,831|(27,420,142)|337,769|**22,226,305**|
## **Transfers**
Restricted donations – The transfer relates to funds moving to the College fund representing contributions to the purchase of Steinway Pianos, which have been paid for but we are awaiting delivery at the year end.
Trading Company – The profit before tax and gift aid of Malvern College Enterprises Ltd and Malvern College International Ltd.
College fund – The transfer relates to the designated fund transfer and the trading companies transfer. The positive SWAP movement for the period of £337,769 is also included within the College funds transfer column.
## **Restricted funds**
Restricted donations – The balance is represented by donations not yet spent which have specific restrictions imposed by donors, the majority of which relates to donations for the hardship fund and some smaller fixed asset purchases.
Restricted grants – The balance is represented by grants not yet spent which have specific restrictions imposed by the donors for example prize funds.
## **Designated Fund**
The Designated Fund represents 10% of net income to provide funds to help fund bursaries and infrastructure projects over a ten year time span. This year due to the net deficit position no transfer to the fund has been made.
## **20. Analysis of the net assets between funds**
## **Group and College**
**2022**
|**Net assets/(liabilities) of the Group’s funds**|Fixed assets|Net current assets|Long term liabilities|**Fund balances**|
|---|---|---|---|---|
||£|£|£|**£**|
|Restricted funds|-|145,578|-|**145,578**|
|General funds:|||||
|College funds|26,310,994|1,349,339|(10,189,474)|**17,470,859**|
|Abberley Hall funds|5,482,624|(168,052)|(2,635,760)|**2,678,812**|
|Designated funds|-|1,550,334|-|**1,550,334**|
|Non-charitable trading funds|-|289,361|-|**289,361**|
||31,793,618|3,166,559|(12,825,234)|**22,134,943**|
## **20a. Comparative analysis of the net assets between funds**
## **Group and College**
||||||**2021**|
|---|---|---|---|---|---|
||**Net assets/(liabilities) of the Group’s funds**|Fixed assets|Net current assets|Long term liabilities|**Fund balances**|
|||£|£|£|**£**|
||Restricted funds|37,190|116,070|-|**153,260**|
||General funds:|||||
||College funds|27,132,371|3,064,447|(12,640,613)|**17,556,205**|
||Abberley Hall funds
Designated funds|5,436,203
-|171,988
1,099,756|(2,098,674)
-|**3,509,517**
**1,099,756**|
||Non-charitable trading funds|-|(92,433)|-|**(92,433)**|
|||32,605,764|4,359,828|(14,739,287)|**22,226,305**|
The net assets are held for the various funds as outlined in the above left table.
The net assets are held for the various funds as outlined in the below left table.
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
104
105
Notes to the financial statements for the year ended 31 July 2022
## **21. Pensions** continued
## **Teachers’ Pension Scheme**
The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £1,252,581 (2021: £1,236,646) and at the year-end £Nil (2021 - £Nil) was accrued in respect of contributions to this scheme.
The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
The employer contribution rate is set 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 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.
The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019.
However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.
On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. A consultation was launched by the government on 16 July 2021, and closed to responses on 11 October 2021.
The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards.
The pause was lifted in July 2021 and the government is preparing to complete the cost control element of the 2016 valuations, which is expected to be completed in 2022.
In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.
Until the consultation and the cost cap mechanism review are completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.
With effect from 31 January 2021, Abberley Hall withdrew from the Teachers’ Pension Scheme. The College has completed a consultation process with Teachers and made the decision to establish an APTIS scheme for new employees which has started the process of partial withdrawal from TPS.
## **Other pension schemes**
Two defined contribution pension schems on behalf of its employees (APTIS for teaching staff and Scottish Widows for operations staff). The cost to the College of these schemes is £229,415 (2021: £262,383).
Abberley Hall contributed to three defined contribution pension schemes on behalf of its employees. The cost to the School of these schemes for the year is £164,834 (2021: £93,621).
## **22. Reconciliation of cash flows from operating activities**
||**Group**||**2022**|2021|
|---|---|---|---|---|
||||**£**|£|
||Net (expenditure)/income for the year||**(91,362)**|(707,542)|
||**Adjustments for:**||||
||Investment income||**(8,792)**|(3,003)|
||Depreciation of tangible fxed assets||**2,549,476**|2,496,631|
||Financing costs||**401,576**|333,171|
||Surplus on disposal of current/fxed assets||**(1,059)**|(15,820)|
||Movement on SWAP liability||**(524,930)**|(337,769)|
||Decrease in stocks||**(4,140)**|1,522|
||Increase in debtors||**(470,721)**|(386,131)|
||Increase/(decrease) in creditors||**1,128,482**|1,282,495|
||**Net cash provided by operating activities**||**2,978,530**|2,663,554|
||**23. Analysis of net debt**||||
|||31 July|Cash|**31 July**|
|||2021|fow|**2022**|
|||£|£|**£**|
||Net cash:||||
||Cash at bank and in hand|9,004,890|(877,101)|**8,127,789**|
|||9,004,890|(877,101)|**8,127,789**|
||Loans falling due within one year|(1,841,589)|(11,182)|**(1,852,771)**|
||Loans falling due after one year|(11,592,448)|1,737,758|**(9,854,690)**|
|||(13,434,037)|1,726,576|**(11,707,461)**|
||**Net debt**|**(4,429,147)**|**849,475**|**(3,579,672)**|
All the movements from the opening to closing components above result from the cash flows of the Group.
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
106
107
Notes to the financial statements for the year ended 31 July 2022
## **24. Commitments**
|**24. Commitments**|||||
|---|---|---|---|---|
||**Land & Buildings**|**Other**|Land & Buildings|Other|
|**Group**|**2022**|**2022**|2021|2021|
||**£**|**£**|£|£|
|Not later than one year|**19,200**|**53,610**|19,200|56,529|
|Later than one year and not later than fve years|**27,301**|**78,176**|46,501|126,008|
||**46,501**|**131,786**|65,701|182,537|
||**Land & Buildings**|**Other**|Land & Buildings|Other|
|**College**|**2022**|**2022**|2021|2021|
||**£**|**£**|£|£|
|Not later than one year|**19,200**|**41,554**|19,200|41,554|
|Later than one year and not later than fve years|**27,301**|**61,763**|46,501|103,317|
||**46,501**|**103,317**|65,701|144,871|
## **Operating leases**
At 31 July 2022 the Group and the College had future total minimum lease payments under non-cancellable operating leases for each of the periods outlined on the left table.
## **Capital commitments**
The Group and the College had no capital commitments at 31 July 2022.
As at 31 July 2021 the Group and the College had capital commitments of £309,043 with regard to the house refurbishment project.
The Group also had capital commitments at 31 July 2021 of £359,567 which included the refurbishment of the Old Theatre at Abberley Hall and repairs to the Abberley Hall roof.
## **25. Related party transactions**
## **The Malvernian Society Limited**
The Malvernian Society Limited is a company limited by guarantee that promotes the work and education at the College, assists in the carrying on of a school or schools and in cases of need assists pupils in further training. A number of members of The Malvernian Society Limited’s Committee are also members of Malvern College’s Council.
This year, the College received £366,898 from The Malvernian Society. £267,400 was received for Assisted Places, £80,967 was received for Disability projects, £11,613 was received for the refurbishment of Cwm Llwch, £3,363 was received for the purchase of Steinway Pianos, £3,000 towards annual prizes and £556 for House equipment.
Last year, the College received £937,850 from The Malvernian Society. £317,215 was received for the purchase of Steinway Pianos, £205,366 was received for Assisted Places, £157,950 for the Hardship Fund, £86,892 for Pandemic Costs, £70,000 for Cricket Nets, £64,824 for a SAMBA testing machine, £10,100 for refurbishment of the Observatory, £9,018 for Rugby Posts, £9,985 for Sports Video Camera Equipment, and £3,000 towards annual prizes and £3,500 for other projects.
At the year-end, £158 was due to (2021: £6,386 due from) The Malvernian Society Limited. The College contributed £nil to The Malvernian Society (2021: £132,000) for subscriptions for life long membership of the Society for Upper Sixth leavers and a
contribution towards their operating costs. This arrangement has ended.
The Malvernian Society Limited owns some of the land and buildings within the College grounds. In 2010/11, the College sold a property to the Malvernian Society Limited and leased back that property for College use. That arrangement continued in 2021/22 and the rent paid from the College to the Malvernian Society Limited in the year was £19,200 (2021: £19,200).
The results of The Malvernian Society Limited are not included in the consolidated financial statements. Whilst they are deemed to be “related” they do not meet the Charities SORP definition of “Connected” and as such their results are not presented within these financial statements.
## **The Downs Malvern**
The Downs Malvern (TDM) is the trading name of The Downs Malvern College Prep School (TDMCP). In June 2007, the College agreed to contribute £5.5m to The Downs Malvern College Prep School. TDMCP is a separate registered charity.
A donation of £194,286 (2021: £166,751) was made by the College to TDMCP during the year in recognition of the net effect of staff concessions offered to staff at the College by TDMCP and offered to staff at TDMCP by the College. A Management Fee of £90,000 (2021: £90,000) was received from TDMCP during the year for the provision of bursarial services. An additional £43,714 (2021: £13,500) was received from TDMCP for additional ad hoc services such as IT support and IT subscriptions.
At the end of July 2022, £106,798 was owed to TDMCP by the College (2021: £5,016 owed to the College by TDMCP).
## **Malvern College Enterprises Limited**
## **(MCEL)**
The College invoiced £590,334 (2021: £403,788) to MCEL and MCEL invoiced £50,991 (2021: £60,914) to the College in the current year. The sales invoices from the College related to cost recharges, VAT transactions and commercial trading sales.
The College and MCEL have a licence and lease back agreement for the use of the current all-weather pitch. The College receives £30,900 for the licence fee and pays £40,169 for the lease costs.
At the year end, £86,100 (2021: £134,620) was owed by MCEL to the College and £44,394 (2021: £2,164) was owed by the College to MCEL.
## **Malvern College International Limited**
## **(MCIL)**
The College invoiced £153,538 (2021: £164,140) to MCIL and MCIL invoiced £48,511 (2021: £20,165) to the College in the current year. The sales invoices from the College related to cost recharges, VAT transactions and commercial trading sales.
At the year end, £1,802,646 (2021: £1,649,167) was owed by MCIL to the College and £58,919 (2021: £nil) was owed by the College to MCIL.
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
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109
Notes to the financial statements for the year ended 31 July 2022
## **25. Related party transactions**
## **College Guardians Limited (CG)**
The College invoiced £16,111 to CG and CG invoiced £3,120 to the College in the current year. The sales invoices from the College related to cost recharges, VAT transactions and commercial trading sales.
At the year end, £28,933 was owed by CG to the College and £2,161 was owed by the College to CG.
## **Abberley Hall**
Abberley Hall (AH) is the trading name of Abberley Hall Limited. In June 2019, as part of the agreement whereby AH joined the Malvern College family of schools, the College agreed to contribute £1.0m to Abberley Hall over the next four years via a capital grant. A total of £2.53m has actually been advanced to date, which is secured with a first charge over the land and buildings of Abberley Hall. The College appoints 50% of the AH Governors and the first meeting of the new Board was held on 13 September 2019. AH is a separate registered charity.
At the year end, £2,597,613 (2021: £2,030,965) was owed by AH to the College and £nil (2021: £nil) was owed by the College to AH.
At the year end, £14,198 (2021: £nil) was owed by AH
to Malvern College International Limited. This related to cost recharges associated with recruitment costs.
## **26. Taxation**
The College was a registered charity throughout the year and, as such, was not liable to corporation tax on the surplus of income over expenditure for the year, or to capital taxes on gains arising from the disposal of assets, carried out in the furtherance of the College’s primary obligations.
The College, Malvern College Enterprises Limited and Malvern College International Limited are registered together in a VAT group. Malvern College Enterprises Limited and Malvern College International Limited gifts most or all of their taxable profits to the College and are subject to corporation tax on any remainder of taxable profits.
## **27. Post balance sheet events**
During the 2021-22 financial year, the Governors approved the merger of TDM into the Malvern College charitable company. The merger was planned to take place on 1 August 2022, but was delayed pending authorisation from DfE. The merger took place on 1 November 2022.
With an increasing cost base and a difficult market to attract new pupils, AH has been increasingly reliant on loans from the College for day-to-day operations, which is unsustainable. The College made the difficult decision and confirmed in Lent 2023 that it would no longer provide loan funding beyond this academic year. As a result the Abberley Hall Governors have been actively exploring options which despite concerted efforts have been unsuccessful. The School has announced closure post 2022/23. The College has agreed to provide loan funding up to £1m for 2022/23 academic year and £1m for closure costs for 2023/24 which will ensure an orderly closure and prevent risk around insolvency. As a result of the closure announcement, the College is expected to call in its loans.
## **Comparative Consolidated Statement of Financial Activities**
||||Unrestricted|funds|Restricted funds|**Year-ended**|Year-ended|
|---|---|---|---|---|---|---|---|
||||General|Designated||**31 July 2021 Total**|31 July 2020 Total|
|||Notes|£|£|£|**£**|£|
||**INCOME FROM:**|||||||
||**Charitable activities:**|||||||
||College fees|2|20,819,548|-|-|**20,819,548**|19,390,518|
||Ancillary trading income|3|950,071|-|-|**950,071**|1,224,456|
||**Other**|3|15,820|-|-|**15,820**|40,157|
||**Trading activities:**|||||||
||Trading income|5|2,707,136|-|-|**2,707,136**|3,163,474|
||Non-ancillary trading income|3|579,086|-|-|**579,086**|526,139|
||**Investments**|6|3,003|-|-|**3,003**|37,365|
||**Transfer of Abberley Hall Ltd**||-|-|-|**-**|4,918,735|
||**Donations and Grants**|4|315,807|-|984,360|**1,300,167**|1,501,952|
||**TOTAL**||25,390,471|-|984,360|**26,374,831**|30,802,796|
||**EXPENDITURE ON:**|||||||
||**Raising funds:**|||||||
||Trading expenses|7|1,129,998|-|-|**1,129,998**|1,312,649|
||Financing costs|7|333,171|-|-|**333,171**|345,286|
||**Charitable activities:**|||||||
||Provision of Education|7|25,190,837|-|599,385|**25,790,222**|25,293,077|
||Donation to TDMCP|7|166,751|-|-|**166,751**|101,446|
||**TOTAL**|7|26,820,757|-|599,385|**27,420,142**|27,052,458|
||Net income before fair value movements on fnancial instruments||(1,430,286)|-|384,975|**(1,045,311)**|3,750,338|
||Movement of SWAP liability|17|337,769|-|-|**337,769**|1,159|
||**Net (expenditure)/ income**||(1,092,517)|-|384,975|**(707,542)**|3,751,497|
||Transfers between funds|18|(30,919)|418,134|(387,215)|**-**|(1,159)|
||**Net movement in funds**||(1,123,436)|418,134|(2,240)|**(707,542)**|3,750,338|
||**RECONCILIATION OF FUNDS**|||||||
||Fund balances b/f 1 August|18|22,096,725|681,622|155,500|**22,933,847**|19,183,509|
||**Fund balances c/f 31 July**|18|20,973,289|1,099,756|153,260|**22,226,305**|22,933,847|
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
110
111
Malvern College, College Road, Malvern, Worcestershire WR14 3DF, UK www.malverncollege.org.uk
Registered Charity No 527578