2023-08-31-accounts - Newark Preparatory School Company Limited

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REGISTERED COMPANY NUMBER: 00396309 (England and Wales) REGISTERED CHARITY NUMBER: 528261

Report of the Trustees and

Financial Statements

for the Year Ended 31 August 2023

for

The Newark Preparatory School Company Limited

Wright Vigar Limited Statutory Auditors Chartered Accountants & Business Advisers 15 Newland Lincoln Lincolnshire LN1 1XG

The Newark Preparatory School Company Limited

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

		Page
Reference and Administrative Details		1
Report of the Trustees	2	to	6
Report of the Independent Auditors	7	to	8
Statement of Financial Activities		9
Balance Sheet		10
Cash Flow Statement		11
Notes to the Cash Flow Statement		12
Notes to the Financial Statements	13	to	19

The Newark Preparatory School Company Limited

Reference and Administrative Details for the Year Ended 31 August 2023

TRUSTEES

W E B Bicknell Ms S L Cameron J A Dennis N Johnson (resigned 2.5.23) Dr J E Mumby R W South W J Staunton D N Ashton (appointed 27.2.23) L Gordon (appointed 14.9.23)

COMPANY SECRETARY J A Dennis REGISTERED OFFICE Highfields London Road Balderton Newark-on-Trent Nottinghamshire NG24 3AL

REGISTERED COMPANY NUMBER 00396309 (England and Wales)

REGISTERED CHARITY NUMBER 528261 AUDITORS Wright Vigar Limited Statutory Auditors Chartered Accountants & Business Advisers 15 Newland Lincoln Lincolnshire LN1 1XG

Page 1

The Newark Preparatory School Company Limited (Registered number: 00396309)

Report of the Trustees for the Year Ended 31 August 2023

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2023. The trustees have adopted the provisions of 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 2019).

PRINCIPAL ACTIVITY

The charitable company's principal activity during the year continued to be that of an independent school. Further details on the activities and achievements for the year are disclosed in the Governors' Report which is a separate document.

TRUSTEES

The Trustees shown below have held office during the while of the period from 1 September 2022 to the date of this report.

W E B Bicknell W J Staunton Mrs S L Cameron J A Dennis Dr J Mumby R W South D Ashton (appointed 27/02/2023) L Gordon (appointed 14/09/2023) N Johnson (resigned 02/05/2023)

OBJECTIVES AND ACTIVITIES

Objectives and aims

The principal objective of the Charity is to provide high quality nursery, pre-prep and prep education. The management of the school was entrusted to the Headteacher, Mrs S Lyons, who was appointed in September 2019, and who reports regularly to the Governors and Trustees. The school operates under the trading name of Highfields. In organising the Charity, Trustees are mindful of their duties under Charities Act 2016 and have given careful consideration to compliance with the public benefit guidance issued by the Charity Commission.

Within the principal objective, the Charity aims to provide a broad-based education appropriate to the needs of the pupils in its target market and through this the pupils will:

Acquire the knowledge and skills that will enable them to tackle the next phase of their educational, physical, spiritual, social and emotional lives with confidence and success;
Feel valued and significant, whilst having an expectation that they should behave in a responsible manner, both to themselves and others;
Develop as individuals, whilst having an understanding that they have a responsibility of service to the community; - Learn how to live together in a community, showing consideration, courtesy and respect for other people and their property at all times;
Work to acquire the resourcefulness that will enable them to obtain the best from their environment;
Develop the foundations on which to build a happy and fulfilling life;
Find their time spent at Highfields enjoyable and stimulating;
Receive an education that nurtures the courage and confidence of every child to discover their talents and fulfil their potential within a caring environment.

Public benefit

In setting the objectives and planning its activities, the trustees have given careful consideration to the Charity Commission’s general guidance on public benefit. The key public benefit delivered by the Trust is the provision of a high quality of education to its pupils.

Page 2

The Newark Preparatory School Company Limited (Registered number: 00396309)

Report of the Trustees for the Year Ended 31 August 2023

STRATEGIC REPORT Achievement and performance Charitable activities

The main objectives of the school for the year were to continue to provide high quality educational services and in so doing to:

Ensure that the school finances are in line with the budgets set and to maintain the school as a viable going concern for many years to come;
Increase the revenue and profile of the school, whilst offering value for money, in order to make the school's services available to as wide a range of parents and pupils as possible;
Reinvest in the infrastructure of the school.

These are achieved by regular Board meetings which, as a matter of course:

Regularly undertake a detailed review of the school accounts and areas of over and under spend;
Plan marketing and promotional activities to increase the profiles and revenue generating potential of the school;
Within the limitations of the financial constraints, plan maintenance work on the fabric of the school and, when possible enhance the facilities provided.

The future objectives of the school are to:

Maintain the high quality of nursery, pre-prep and prep education by using the Cambridge and National curriculum and the continued promotion of first-class pastoral care in small class sizes to enable every child to discover their talents and fulfil their potential confidently in a caring environment;
Improve the facilities of the school by routine refurbishment and a programme of planned maintenance;
Grow pupil enrolment numbers by ongoing marketing and promotional activity;

These will be achieved by:

Utilising all opportunities to promote the school and raise its profile;
Continuing to develop links with local schools and especially nursery and child care settings to increase awareness of the opportunity on offer at the school;
The implementation of the refurbishment plan;
Continuous training and professional development of both teaching and support staff.

The last inspection by the Independent School Inspectorate (ISI) was in November 2023; they carried out a thorough inspection following their new framework and found Highfields to have met all standards.

Page 3

The Newark Preparatory School Company Limited (Registered number: 00396309)

Report of the Trustees for the Year Ended 31 August 2023

Details of means tested bursary

The school has two further objectives:

To provide continuing support of pupils already in receipt of fee assistance through bursaries and to provide support for existing pupils through means tested bursary places, should the need arise during their education at Highfields.
To play our part in the life of the local community through community access and service programmes

Bursaries

This year the value of means-tested bursaries totalled £26,827 and represented 2.8% of gross fees.

Review

The Governors periodically review the school's Bursary policies to ensure that children can continue to remain at School through the availability of means-tested fee assistance. The school policy is designed to widen access to Highfields. The reviews help inform the development of school policy and ensure the objective of wider access continues to be achieved.

'Teaching Links' programme

The school looks for opportunities with other local schools where we can share each other's best practice, observe other settings and share in training where possible. The EY team regularly meet with other Early years settings to share best practise. The Headteacher and Operations Manager also work with colleagues across both state and independent sector to support and enhance their own knowledge.

Community access

The Trustees regard being part of the wider community as an important role.

Where possible, without detriment to advancing the education of our pupils, Highfields supports the wider community by inviting local schools to events at Highfields and for local nurseries to use the grounds. Highfields hosted a cross country event in November 2022 which was attended by a number of local schools (both state and independent).

Highfields was also able to support local charities with Harvest Soup and generously filled shoeboxes. The pupils in form 5 and 6 read out Remembrance poems as part of the community Armistice Day event.

Pupils regularly take part in events within school to raise money for charities such as Children in Need, Jeans for Jeans and Sports Aid.

Highfields regularly supports local groups by sharing our grounds such as with the Newark Rugby Club or renting out our facilities at favourable rates.

Page 4

The Newark Preparatory School Company Limited (Registered number: 00396309)

Report of the Trustees for the Year Ended 31 August 2023

STRATEGIC REPORT Financial review

Financial review and reserves policy

The net movement in funds for the year amounted to an outflow of £-5,363 (2022: an inflow of £14,289). The revenue reserves of the Charity total £16,520 (2022: £21,883). This level of reserves is substantially represented by the property and other physical assets of the school, which are used for the continuing charitable objectives of the school. The Charity's balance sheet includes freehold property at historic cost. A detailed valuation of this asset was undertaken by Inn's England on 27 November 2012 for the purposes of the Charity's bankers. The property was valued at £1 million based on its existing use and the valuation for vacant possession was £2.25 million. The Trustees have requested an updated valuation which will be carried out in April 2024.

The figure for freehold land and buildings on the balance sheet includes £145,147 in respect of the professional preparation for the construction project as stated in our plans for the future.

The Trustees' policy is to operate with a small surplus of income over resources expended to provide funds for capital expenditure improvements and working capital.

The main source of funding of the Charity is the fees and nursery income received from the parents and funding from the local authorities for Early Years funding towards nursery fees. These funds are expended on the running and upkeep of the school in order to provide the high-quality educational service needed to meet the objectives of the Charity.

Annual budgets and cash flow forecasts are prepared as part of the Charity's development plan and these are monitored against actual financial performance on a regular basis. The Trustees consider that the school has sufficient resources to continue to operate for the foreseeable future, and therefore continue to adopt the going-concern basis in the preparation for financial statements.

Investment policy and objectives

There are no restrictions on the company's powers of investment. With the prospect of funds being generated by the land sale, an investment policy will be produced.

Future plans

The contact with Avant Homes expired in September 2023 and is currently under review as the latest planning application had been rejected by Newark and Sherwood District Council in August 2023. The charity are still open to suitable opportunities which may arise to provide a cash inflow to school to carry out refurbishment work.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The Charity was created by a trust deed as a registered charity (number 528261). The charitable company is limited by its members' liability. The members' liability is limited to the amount paid on share capital.

The charitable company is registered in the name of The Newark Preparatory School Company Limited (company number 00396309). The principal address and registered office is Highfields, London Road, Newark, Nottinghamshire, NG24 3AL.

New trustees are recruited by personal recommendation from existing members of the Board, based on identified skills required by the Board. The induction and training of the new trustees is undertaken using external support from the Association of Governing Bodies for Independent Schools (AGBIS) with training tailored to the needs of each newly appointed trustee.

Decisions regarding the charity are made through debate, consideration and voting on proposals submitted to the Board by any one of the following at the regular trustees meeting:

Headteacher / Senior Leadership Team
Subcommittees which cover Finance, Marketing and Health & Safety; Curriculum and Standards; and Pupils,
Personnel and Safeguarding
Friends and Family of Highfields School, FFH (PTA)/Parents

All meetings are minuted.

Page 5

The Newark Preparatory School Company Limited (Registered number: 00396309)

Report of the Trustees for the Year Ended 31 August 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Risk management

The Trustees continue to keep the school's activities under review, particularly with regard to any major risks that may arise from time to time. They monitor the effectiveness of the system of internal control and use other viable means, including insurance cover where appropriate, to best mitigate those risks identified.

The Trustees believe the major risks to the school are;

The retention of key staff;
The economy. As the school is an independent school, the trustees are aware the economy will directly impact on the school enrolment numbers and are monitoring and reviewing the situation regularly;
Political changes - in line with all independent schools, the announcement by the Labour Party (in opposition) that they would add VAT to school fees and remove business rates relief could have a detrimental impact on the finances of the school. Any increase in fees would be minimised as much as possible to protect pupil numbers.

The Trustees mitigate the above risk by ensuring that the quality of service remains high through continuous staff training and professional development.

TRUSTEES' RESPONSIBILITY STATEMENT

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

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

In preparing those financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charity SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going-concern basis unless it is inappropriate to presume that the charitable company will continue in business.

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

In so far as the trustees are aware:

there is no relevant audit information of which the charitable company's auditors are unaware; and
the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on ............................................. and signed on the board's behalf by:

........................................................................ R W South - Trustee

Page 6

Report of the Independent Auditors to the Members of The Newark Preparatory School Company Limited

Opinion

We have audited the financial statements of The Newark Preparatory School Company Limited (the 'charitable company') for the year ended 31 August 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
give a true and fair view of the state of the charitable company's affairs as at 31 August 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors 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.

In connection with our audit of the financial statements, 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.

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Report of the Trustees has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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

adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Page 7

Report of the Independent Auditors to the Members of The Newark Preparatory School Company Limited

Responsibilities of trustees

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

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

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our work is performed to include an assessment of the susceptibility of the entity's financial statements to material misstatement, including the risk of fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

We plan our work to gain an understanding of the significant laws and regulations that are of significance to the entity and the sector in which they operate. We perform our work to ensure that the entity is complying with its legal and regulatory framework.
We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to the management and people charged with governance.

We assessed the susceptibility of the Charitable Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

Substantive procedures performed in accordance with the ISAs (UK).
Challenging assumptions and judgments made by management in its significant accounting estimates.
Identifying and testing journal entries, in particular material journal entries and an assessment of year end journals.
Assessing the extent of compliance with the relevant laws and regulations.

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 Report of the Independent Auditors.

Use of our report

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

Paul Colcomb FCCA (Senior Statutory Auditor) for and on behalf of Wright Vigar Limited Statutory Auditors Chartered Accountants & Business Advisers 15 Newland Lincoln Lincolnshire LN1 1XG

Date: .............................................

Page 8

The Newark Preparatory School Company Limited

Statement of Financial Activities for the Year Ended 31 August 2023

Notes INCOME AND ENDOWMENTS FROM Charitable activities 4 Donations Tuition and nursery fees Other Income Rent 3 Other income 5 Total EXPENDITURE ON Charitable activities 6 Education services NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD	Unrestricted funds £ 16,980 1,015,349 500 10,555 107,962 1,151,346 1,156,709 (5,363) 21,883 16,520	Restricted funds £ - - - - - - - - - -	2023 Total funds £ 16,980 1,015,349 500 10,555 107,962 1,151,346 1,156,709 (5,363) 21,883 16,520	2022 Total funds £ 23,924 997,167 - 8,048 104,651
				1,133,790
				1,119,501
				14,289 7,594
				21,883

The notes form part of these financial statements

Page 9

The Newark Preparatory School Company Limited (Registered number: 00396309)

Balance Sheet

31 August 2023

Unrestricted funds Notes £ FIXED ASSETS Tangible assets 12 555,537 CURRENT ASSETS Debtors 13 37,136 Cash at bank and in hand 173 37,309 CREDITORS Amounts falling due within one year 14 (557,993) NET CURRENT ASSETS (520,684) TOTAL ASSETS LESS CURRENT LIABILITIES 34,853 CREDITORS Amounts falling due after more than one year 15 (18,333) NET ASSETS 16,520 FUNDS 18 Unrestricted funds TOTAL FUNDS	Restricted funds £ - - - - - - - - -	2023 Total funds £ 555,537 37,136 173 37,309 (557,993) (520,684) 34,853 (18,333) 16,520 16,520 16,520	2022 Total funds £ 554,456 33,974 142 34,116 (538,356) (504,240) 50,216 (28,333) 21,883 21,883 21,883

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

............................................. R W South - Trustee

The notes form part of these financial statements

Page 10

The Newark Preparatory School Company Limited

Cash Flow Statement for the Year Ended 31 August 2023

Notes Cash flows from operating activities Cash generated from operations 1 Interest paid Net cash provided by operating activities Cash flows from investing activities Purchase of tangible fixed assets Interest received Net cash used in investing activities Cash flows from financing activities Loan repayments in year Net cash used in financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period 2 Cash and cash equivalents at the end of the reporting period 2	2023 £ 82,802 (17,582) 65,220 (27,166) 1 (27,165) (10,000) (10,000) 28,055 (275,169) (247,114)	2022 £ 57,419 (11,663) 45,756 (5,978) - (5,978) (10,000) (10,000) 29,778 (304,947) (275,169)

The notes form part of these financial statements

Page 11

The Newark Preparatory School Company Limited

Notes to the Cash Flow Statement for the Year Ended 31 August 2023

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

	ACTIVITIES
			2023	2022
			£	£
	Net (expenditure)/income for the reporting period (as per the
	Statement of Financial Activities)		(5,363)	14,289
	Adjustments for:
	Depreciation charges		26,086	28,442
	Profit on disposal of fixed assets		(1)	-
	Interest received		(1)	-
	Interest paid		17,582	11,663
	Increase in debtors		(3,162)	(8,094)
	Increase in creditors		47,661	11,119
	Net cash provided by operations		82,802	57,419
2.	ANALYSIS OF CASH AND CASH EQUIVALENTS
			2023	2022
			£	£
	Cash in hand		71	41
	Notice deposits (less than 3 months)		102	101
	Overdrafts included in bank loans and overdrafts falling due within	one year	(247,287)	(275,311)
	Total cash and cash equivalents		(247,114)	(275,169)
3.	ANALYSIS OF CHANGES IN NET DEBT
		At 1.9.22	Cash flow	At 31.8.23
		£	£	£
	Net cash
	Cash at bank and in hand	142	31	173
	Bank overdraft	(275,311)	28,024	(247,287)
		(275,169)	28,055	(247,114)
	Debt
	Debts falling due within 1 year	(20,000)	-	(20,000)
	Debts falling due after 1 year	(28,333)	10,000	(18,333)
		(48,333)	10,000	(38,333)
	Total	(323,502)	38,055	(285,447)

The notes form part of these financial statements

Page 12

The Newark Preparatory School Company Limited

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

1. LEGAL STATUS OF THE CHARITY

The charity is a charitable company registered in England and Wales. Details of the company number and registered office can be found in the reference and administration section of the Report of the Trustees.

STATUTORY INFORMATION

The presentation currency of the financial statements is the Pound Sterling (£).

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - 25% on cost, 5% on cost and Straight line at 1% Fixtures and fittings - 10% on cost and 4% on cost Motor vehicles - 25% on cost Computer equipment - 25% on cost

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Page 13

continued...

The Newark Preparatory School Company Limited

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

2022 £ 6,458 1,590 - 8,048 2022 Total activities £ 2,523 897,935 99,232 21,401	2022 £ 6,458 1,590 - 8,048 2022 Total activities £ 2,523 897,935 99,232 21,401	2022 £ 6,458 1,590 -
		8,048
1,021,091
2022 £ 55,933 25,674 2,220 20,283 424 117 104,651 Totals £ 1,156,709	2022 £ 55,933 25,674 2,220 20,283 424 117
	104,651
Totals £ 181,810

Page 14

continued...

The Newark Preparatory School Company Limited

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

7. SUPPORT COSTS - continued

Support costs, included in the above, are as follows:

Management

	Management
		2023	2022
		Education	Total
		services	activities
		£	£
	Admin wages	69,684	72,578
	Professional fees	5,307	6,254
	Telephone	5,194	4,073
	Printing, postage and statione	5,285	2,769
	Photocopier costs	8,225	7,898
	Sundry expenses	662	285
	Subscriptions	24,511	24,411
	Marketing	7,420	2,637
	Interest payable	17,582	11,663
		143,870	132,568
	Finance
		2023	2022
		Education	Total
		services	activities
		£	£
	Bad debts	-	6,197
	Bank charges	6,026	2,782
	Motor expenses	1,622	2,863
	Depreciation of tangible fixed assets	26,086	28,442
		33,734	40,284
	Governance costs
		2023	2022
		Education	Total
		services	activities
		£	£
	Auditors' remuneration	4,206	4,388
8.	NET INCOME/(EXPENDITURE)
		2023	2022
	Depreciation	26,085	28,442
9.	AUDITORS' REMUNERATION
		2023	2022
		£	£
	Fees payable to the charity's auditors and their associates for the audit of the
	charity's financial statements	4,206	4,388

Page 15

continued...

The Newark Preparatory School Company Limited

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

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2023 nor for the year ended 31 August 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2023 nor for the year ended 31 August 2022.

11. STAFF COSTS

STAFF COSTS
	2023	2022

Wages and salaries	658,194	643,311
Social security costs	47,987	47,747
Other pension costs	80,245	76,219

	786,426	767,277



	2023	2022

Teaching	19	19
Non Teaching	18	17

	37	36

Remuneration paid to key management personnel in the year was £167,247 (2022: £217,079).

None of the Trustees received any remuneration in the year.

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

was:
			2023			2022
£60,001 - £70,000				1		1
TANGIBLE FIXED ASSETS
		Fixtures
	Freehold	and	Motor		Computer
	property	fittings	vehicles		equipment	Totals
	£	£	£		£	£
COST
At 1 September 2022	689,512	117,848	3,000		213,561	1,023,921
Additions	14,093	5,872		-	7,201	27,166
At 31 August 2023	703,605	123,720	3,000		220,762	1,051,087
DEPRECIATION
At 1 September 2022	179,561	76,920	3,000		209,984	469,465
Charge for year	15,206	4,219		-	6,660	26,085
At 31 August 2023	194,767	81,139	3,000		216,644	495,550
NET BOOK VALUE
At 31 August 2023	508,838	42,581		-	4,118	555,537
At 31 August 2022	509,951	40,928		-	3,577	554,456

12. TANGIBLE FIXED ASSETS

Included in cost of land and buildings is freehold land of £100,000 (2022 - £100,000) which is not depreciated.

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The Newark Preparatory School Company Limited

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

12. TANGIBLE FIXED ASSETS - continued

Freehold land and buildings includes £145,147 in respect of the professional preparation for a construction project as referred to in the Trustees' annual report. This expenditure has not been depreciated.

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors Prepayments and accrued income 14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Bank loans and overdrafts (see note 16) Other loans (see note 16) Trade creditors Pensions Other creditors Accruals and deferred income 15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Bank loans (see note 16) 16. LOANS An analysis of the maturity of loans is given below: Amounts falling due within one year on demand: Bank overdrafts Bank loans Other loans Amounts falling due between two and five years: Creditors more than 1 year 17. SECURED DEBTS The following secured debts are included within creditors: Bank overdrafts Bank loans	2023 £ 15,842 21,294 37,136 2023 £ 257,287 10,000 27,077 9,908 54,826 198,895 557,993 2023 £ 18,333 2023 £ 247,287 10,000 10,000 267,287 18,333 2023 £ 247,287 28,333 275,620	2022 £ 12,971 21,003 33,974 2022 £ 285,311 10,000 30,038 10,939 56,989 145,079	2022 £ 12,971 21,003
			33,974
		538,356
		2022 £ 28,333 2022 £ 275,311 10,000 10,000	2022 £ 28,333
		295,311
		28,333
		2022 £ 275,311 38,333
		313,644

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The Newark Preparatory School Company Limited

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

18. MOVEMENT IN FUNDS

MOVEMENT IN FUNDS	MOVEMENT IN FUNDS
At 1.9.22 £ Unrestricted funds General funds 21,883 TOTAL FUNDS 21,883 Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General funds 1,151,346 TOTAL FUNDS 1,151,346 Comparatives for movement in funds At 1.9.21 £ Unrestricted funds General funds 7,594 TOTAL FUNDS 7,594 Comparative net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General funds 1,133,790 TOTAL FUNDS 1,133,790 The total funds at the year end can be further split as detailed below:		Net movement in funds £ (5,363) (5,363) Resources expended £ (1,156,709) (1,156,709) Net movement in funds £ 14,289 14,289 Resources expended £ (1,119,501) (1,119,501)	At 31.8.23 £ 16,520 16,520 Movement in funds £ (5,363) (5,363) At 31.8.22 £ 21,883 21,883 Movement in funds £ 14,289 14,289
	2023		2022
	£		£
Called up share capital	700		700
Other reserves	120		120
Founder Governor prize fund	1,677		1,677
General funds	14,023		19,386


	16,520		21,883

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The Newark Preparatory School Company Limited

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

19. RELATED PARTY DISCLOSURES

The company incurred expenses on commercial terms for electrical work amounting to £1,724 during the year with South Electrical Limited. Mr R South is a director of South Electrical Limited and a trustee of The Newark Preparatory School Company Limited. At the year end no amounts remained unpaid.

The company incurred expenses on commercial terms for payroll services amounting to £3,120 during the year with TC Group. Mr J Dennis is a partner of TC Group and a trustee of The Newark Preparatory School Company Limited. At the year end an amount of £267 was including as outstanding in creditors.

20. TRUSTEES' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a trustee subsisted during the year ended 31 August 2023 and the year ended 31 August 2022:

ended 31 August 2022:
	2023	2022
W J Staunton

Balance outstanding at the start and end of period	10,000	10,000

The terms of the loan is that capital is to be repaid monthly at a minimum payment of £400 a month, although this has been suspended until the company is in a better financial position. The loan was from a Trustee W Staunton and there is no immediate repayment required for the money to be repaid. No interest is payable on the amount advanced.

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