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2023-07-31-accounts

Charity number: 528413

SHREWSBURY SCHOOL

GOVERNORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2023

SHREWSBURY SCHOOL

CONTENTS

Page
Reference and administrative details of the Charity, its Governors and advisers 1 - 2
Governors' report 3 - 12
Independent auditor's report on the financial statements 13 - 16
Consolidated statement of financial activities 17 - 18
Consolidated balance sheet 19 - 20
Charity balance sheet 21 - 22
Consolidated statement of cash flows 23
Notes to the financial statements 24 - 63

SHREWSBURY SCHOOL

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 JULY 2023

Governors T.H.P. Haynes, BA, PGCE (Co-opted member), Chair (resigned 31 July 2023)1,2,6
J.D.C. Pitt, MBA, BSc (Co-opted member) (appointed Chairman 1 August 2023)1,4
R. Boys-Stones, BSc, FCA (Co-opted member)1,4
D Chance MBA (Co-opted member)1,4
J.R. Clark MA (Co-opted member)3,5,6
D. Flint, DL (Appointed by the Lord Lieutenant of the County of Shropshire)1,2,5
S.L.Hankin BA (Co-opted member)5
C. Howarth LLB, MA (Co-opted member)2,6
Dr S. Jones-Perrott BA, MBBS, FRCP (Co-opted member)3,5,7
W. Kenyon MA, FCA (Co-opted member)3
Professor A.J. McCarthy BSc, PhD (Co-opted member)2,5
J.M.H. Moir, BA, MBA (Co-opted member)1,7
Councillor D. Morris BA, (Appointed by Shropshire Council)3,6
Councillor C.M. Motley BA (Appointed by Shropshire Council)1,2
F.L. Schofield BA, PGCE (Co-opted member)5,7
Canon J. Leigh MA, FRSA (Co-opted member) (appointed 1 September 2023)5,6
D.R. Stacey DL (Co-opted member)1,3,7
G. Walters BBLS (Co-opted member)6

Charity registered number 528413 Principal address and The Bursary Registered Office Kingsland House Shrewsbury School The Schools Shrewsbury SY3 7AA Headmaster N L Winkley MA, MEd The Bailiff, Bursar and M J Ware, MA, ACA Clerk to the Governing Body

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SHREWSBURY SCHOOL

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS GOVERNORS AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

Independent auditor Crowe U.K. LLP Fourth Floor St James House St James Square Cheltenham GL50 3PR Bankers Barclays Bank UK Plc 44/46 Castle Street Shrewsbury SY1 1BU Handelsbanken Plc 1st Floor, Willow House West Shrewsbury Business Park Shrewsbury SY2 6LG Lloyds Bank Plc 1 Pride Hill Shrewsbury SY1 1DG Investment Advisors Sarasin & Partners LLP Juxon House 100 St. Paul's Churchyard London EC2M 8BU

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SHREWSBURY SCHOOL

GOVERNORS' REPORT FOR THE YEAR ENDED 31 JULY 2023

The Governors present their annual report for the year ended 31 July 2023, under the Charities Act 2011, together with the audited accounts for the year, and confirm that the latter comply with the Act, the Shrewsbury School Statutes and the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities", the Charities SORP (FRS102) effective 1 January 2019.

REFERENCE AND ADMINISTRATIVE INFORMATION

Shrewsbury School was founded in 1552 as "The Free Grammar School of King Edward VI" and is registered with the Charity Commission under charity number 528413. The Governors, Officers and principal address and particulars of the Charity's professional advisers are as listed on pages 1-2.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Shrewsbury School is governed in accordance with the Shrewsbury School Statutes, approved by the late HM Queen Elizabeth II in Council on 12 October 2016.

Recruitment and Training of Governors

The Governing Body consists of both appointed and co-opted members.

The Master of St John's College, Cambridge is an ex-officio member of the Governing Body. The current Master of St John’s has decided not to take up her post as a Governor of Shrewsbury School in line with the policy of the College council. Three members are appointed to the Governing Body by persons or a body of persons as specified in Shrewsbury School's Statutes and effectively provide an informal link with Shrewsbury Town and its County. One member is elected by the Assistant Teachers of Shrewsbury School (Common Room).

Fourteen members (maximum) are co-opted by the current Governors, their names being brought forward for appointment by the Nominations and Remuneration Committee of the Governing Body. There is a regular audit of Governors' qualifications, skills and experience. Governors are encouraged to attend appropriate training courses and seminars.

New Governors are introduced to the workings of the Charity and the Governing Body largely by past financial statements, management accounts, minutes of Governor and sub-committee meetings, and a day's visit to Shrewsbury School, including meeting representatives of staff and employees. General information is provided in Statutes, the School Handbook, information for pupils, and Charity Commission regulations. Specific issues are addressed at an academic-year-end strategy meeting with the Headmaster. Governors are encouraged to keep abreast of new regulations. All Governors are required to undergo a Disclosure and Barring check for child protection purposes.

Organisational Management

The members of the Governing Body, as Trustees of the Charity, are legally responsible for the overall management and control of both schools and meet as the full decision making Governing Body at least three times a year.

There are seven committees to which powers of investigation and recommendation are delegated, and which meet regularly under their respective chairmen. Minutes are kept of all meetings of the Trustees and of the Committees. Draft minutes are circulated to all Governors for discussion at meetings of the full Governing Body.

The Finance and General Purposes Committee (F&GP) is the working Committee responsible for making recommendations on the financial and operational policy to the Governing Body and for ensuring that the decisions and policies of the Governing Body are implemented. The F&GP meets at least three times a year, prior to full Governing Body meetings. The F&GP during the year was chaired by R Boys-Stones.

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SHREWSBURY SCHOOL

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

The other committees are the Nominations and Remuneration Committee, chaired by T Haynes. The International Development Committee, chaired by C. Howarth; the Audit Committee, chaired by W.Kenyon; the Investment Committee, chaired by D. Chance; the Education and Safeguarding Committee, chaired by Prof A McCarthy; and the Prep School Committee, chaired by M. Moir. Each Committee meets at least once a year.

The Governing Body has approved the terms of reference for each of the committees. The day-to-day running of Shrewsbury School itself is delegated to the Headmaster, who is supported by the Bursar and their various management teams. The Packwood Haugh School Headmaster reports into the Headmaster of Shrewsbury School, and is supported by the Packwood Bursar and Packwood Leadership Team. These groups form the key management personnel.

The Shrewsbury Headmaster and the Shrewsbury Bursar attend Governing Body and F&GP Committee meetings, and the meetings of other committees as appropriate. Other teaching and support staff attend Governing Body and committee meetings on an ad hoc basis to advise and inform Governors on specific areas of the Shrewsbury School’s and Packwood’s activities.

Policies and guidelines for the effective governance and management of Shrewsbury School are regularly reviewed by the Audit Committee and their recommendations passed to the F&GP and the Governing Body for action. The Prep School Committee performs a similar function for Packwood.

The remuneration of the key management personnel of both schools is set by the Nominations and Remuneration Committee. The policy objectives are to provide appropriate incentives to encourage enhanced performance and to reward fairly and responsibly individual contributions to the success of both schools.

The appropriateness and relevance of the remuneration policy is reviewed annually, including references to comparisons with other independent schools to ensure that the Charity remains sensitive to broader issues of pay and employment conditions elsewhere.

Group Structure and Relationships

During the year, the Charity had two wholly owned subsidiaries:

The activities of these companies are discussed later in this report.

In addition, the Charity pays the employment, administrative and other costs, and expenses of Shrewsbury School Foundation. These costs are categorised as fund raising costs within the Consolidated Statement of Financial Activities. The Governors have agreed that the Charity will incur these costs to the extent that Shrewsbury School Foundation exercises and continues to exercise its charitable objects (the "Shrewsbury School Charitable Objects") as set out in the Foundation Trust Deed. Shrewsbury School and Packwood Haugh School both operate within the Shrewsbury School charity.

Risk Management

The Governing Body is responsible for the management of the risks faced by both schools. Detailed analysis of the risks is delegated to the Audit Committee, who in turn delegates review of each risk type to the relevant subCommittees. In this review, the Governing Body sub-Committees are assisted by the leadership team from each school. Risks are identified, assessed and controls established throughout the year. The risks are identified under the following headings: mission and objects; law and regulations; governance and management; external factors; marketing/pupil recruitment; academic factors; operational factors; human resources; environmental; technological and financial. A formal review of the major risks facing the Charity and the concomitant risk management processes is performed annually by the Governing Body.

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SHREWSBURY SCHOOL

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

The key controls used by the Charity include:

It is recognised that these control systems provide a reasonable, but not an absolute, assurance that risks are being managed properly. The Governors are satisfied that the major risks being faced by both schools this year have been identified and are being adequately addressed in order to avoid each, or to mitigate the effects of an unavoidable occurrence.

OBJECTS, AIMS, OBJECTIVES AND PRINCIPAL ACTIVITIES

Charitable Objects

The Objects of the Charity are the advancement of education, including the provision of boarding and day schooling.

Within these Objects the Charity has a number of permanent endowed funds held for special purposes in connection with the development of Shrewsbury School's facilities and for scholarships, bursaries, prizes and other educational purposes.

Public Benefit Aims and Intended Impact

Shrewsbury School was founded in 1552 by Royal Charter to provide charitable education in the Shrewsbury area. Shrewsbury attracts entrants from all over the United Kingdom - and also from abroad - whilst still retaining its strong links with the town and its citizens. Since August 2019, Packwood Haugh School has been part of the overall Shrewsbury School charitable entity.

Our aim is that a Shrewsbury education will educate and empower each individual to flourish in life and contribute positively to the world around them. Shrewsbury School delivers whole person education in a thriving and inclusive boarding and day school community that champions the individual. We believe that the true purpose of education is the cultivation of inner virtues, life skills and character strengths that equip our young people with the confidence and direction to pursue meaningful and successful lives.

Packwood Haugh School operates as an independent boarding and day Preparatory School for boys and girls aged from 4 to 13. Packwood covers all that is required by the National Curriculum Key Stages 1 and 2, and the first two years of Key Stage 3 and substantially more. Packwood aims for the highest quality of academic tuition and pastoral care and the development of wider sporting, artistic and social skills in all its pupils, while offering an environment in which each pupil can develop and fulfil their potential.

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

Shrewsbury and Packwood provide substantial public benefit not only to the recipients of educational grants but also to the local community and a wider public. A member of the Shrewsbury School Leadership Team has specific responsibility for Partnership and Community Engagement in order to focus the different strands of activity in this area and to measure the impact on beneficiaries.

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SHREWSBURY SCHOOL

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

Educational grants and widening access to Shrewsbury School and Packwood.

Scholarships, bursaries and other awards are made available from three sources: funds controlled by the Governing Body as Trustees; funds managed by the Trustees of the Shrewsbury School Foundation; and the general income of both schools. In the year, 385 (2022 - 376) Shrewsbury pupils were assisted of whom 198 were means tested (2022 - 204). The value of this means tested support at Shrewsbury was £3,188,752 (2022 - £3,129,208). This figure includes 11 pupils (2022 - 9) who were in receipt of 100% means tested remissions.

Packwood offered £367,015 (2022 - £366,370) in bursary and scholarship support in 2022-23, of which £262,642 (2022 - £262,852) was means tested.

Such a significant level of fee support is in keeping with the aims of the schools and underscores the charitable purpose.

Partnerships with local schools and the Shrewsbury House, Everton "The Shewsy''.

Shrewsbury School engages in substantial charitable fund raising for both local and national organisations. Of special interest is the on-going financial support for Shrewsbury House, known as ‘The Shewsy’, a youth club in Liverpool established by Shrewsbury School in 1903 to serve the needs of the socially and economically disadvantaged local community. In addition to fund raising, Shrewsbury School is actively involved in governance, provides accounting and other services, free of charge, to Shrewsbury House. All new Yr9 Shrewsbury School pupils visited The Shewsy as part of the volunteering component of their BASE programme and themed residential visits to Liverpool are offered to Lower Sixth Form Students.

A shared residential visit to Snowdonia took place at Easter, and club members had the opportunity to visit the School during the course of a year for a day of activities organised by School pupil leaders. We helped to facilitate a more coordinated relationship with the Into Uni charity to support club members with their more formal education and to help raise academic performance and aspiration. Significant fundraising by Salopians took place for the Shewsy’s annual ‘Big Give’ campaign at Christmas, with over £80k being raised to help provide further support for youth programmes.

During the 2022-23 academic year Shrewsbury School continued to develop partnership activity with state schools, charities and other organisations, both locally and nationally. Programmes covered academics, cocurricular (sport, music and arts), support with careers and pastoral aspects of school life – some of these were regular activities over a term or the whole year, others were one-off events or special occasions.

Amongst the highlights of 2022-23 are the following case studies:

Case Study 1 – Refugee Homework Club

Set up 10 years ago, in 2022-23 we worked with Shropshire Supports Refugees, helping Syrian teenagers who find themselves in a new land, adapting to a new language in a new school. Some have had great difficulties settling here, and have suffered bullying, so this club also helps with integration into British life, serving as a safe haven. It was expanded to include some primary school provision and also to support with language for accompanying parents. Over a dozen attendees regularly benefited.

Case Study 2 – Partnership with Alpha Academies Trust in Stoke-on-Trent

The School has developed a new partnership with Alpha Academies Trust (comprising two secondary and three primary schools) in Stoke. With strategic input from Leadership, opportunities for creating a mutually beneficial partnership have been put into practice with the overall aim of developing character, most notably teamwork and leadership.

Yr4 students visited Packwood Haugh to take part in a ‘Healthy Living’ themed day; Yr5 students visited Shrewsbury School for Darwin themed activities from collaborative laboratory work to evolution-inspired dance sessions; Yr6 students visited Packwood Haugh to have an outdoor education carousel; Yr8 students visited

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SHREWSBURY SCHOOL

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

Shrewsbury School for a programme of sporting and classroom challenges. Around 600 Alpha students were involved. Feedback from this first pilot year was universally positive and we look forward to repeating and developing the programme.

Case Study 3 – Cultural programme for local primary schools

The School continued to promote opportunities for local state primary school pupils to access our facilities and to receive expert tuition in art, dance, music and singing. Priority was again given to pupils who have disadvantage in this regard, whether socio economic or due to disability. Art used the national ‘Big Draw’ event to engage with local Yr5 pupils in an exciting and fun carousel of media and techniques; dance days for the Marches Academy Trust primaries and weekly sessions for Severndale Specialist School were highlights in the Barnes; Symphonic Sunday (and the newly constituted Sinfonia for almost absolute beginners) was again a roaring success bringing together young musicians from across the county to learn together and perform in a summer gala concert before a large packed audience in the Alington; Singing classes brought disparate voices into harmony for youngsters who had never had such an experience. In addition, our ‘Concert Party’ continued to be in demand – on the road delivering music and song to charities, care homes and schools.

Other community engagement:

We maintained academic support across a range of subjects including Maths GCSE support at Shrewsbury Academy School and MFL (French and Spanish) at The Priory School. Our Hispanic Fellow continued to be seconded to The Priory in a now established relationship. Support for university applicants, with mentoring, UCAS and interview practice was put in place across a number of academic subjects. We shared our academic enrichment ‘Dialogues’ programme with state school partners. STEM Potential, supporting talented scientists from schools across Shropshire, in conjunction with Imperial College London, continued to thrive. A group of our students volunteered on a weekly basis to mentor young people based at Restart in Gil Gil Kenya – using zoom.

In sport, we continued to support local talented sportsmen and sportswomen with our Dedicated Athletes Programme – providing expert strength and conditioning coaching and wider mentoring. We hosted multiple Varsity Games events for the Marches Academy Trust (summer and winter, primary and secondary editions, using indoor and outdoor facilities). We once again hosted a successful whole school Sports Day for the Severndale Specialist Academy. We established a relationship with the Trust Sports Alliance, promoting sport amongst local Shropshire primary schools. Our swimming pool, Astro turf facilities and cricket school continued to have great local school and wider community use at much reduced tariffs. The use of the School’s squash facilities continued to support the community, not least junior participation.

As well as supporting charitable fundraising by pupils and staff (in 2022-23 raising over £120k for 20 different charities in total, including over £60k for The Severn Hospice), the School regularly makes available its facilities to various external charities, either at no cost to the charity or at heavily discounted rates to cover school costs – in particular the Food Bank+ where pupils volunteer throughout the year.

School staff are encouraged to participate in the local and wider community, providing their time free of charge. Such participation ranges from acting as governors or trustees of local primary, secondary and specialist schools, to volunteering for local charities, to taking part in environmental projects.

The School’s annual concert series is open to the public and is well attended by members of the local community and community choir continues to thrive.

A detailed inventory of the School’s Partnership and Community Engagement work can be found at https://www.shrewsbury.org.uk/pce

In addition, both schools record partnership activity on the schoolstogether.org website.

Fundraising

Shrewsbury School did not participate in any fundraising activities on its own account during the year and therefore there are no fundraising disclosures necessary under S162A of the Charities Act.

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SHREWSBURY SCHOOL

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

Objectives for the Year

This year, the focus has been on:

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

Operational Performance of the schools

This year, Shrewsbury School numbers averaged 828 (2022 - 816) pupils of whom 600 (2022 - 611) were boarders and 228 (2022 - 205) were day pupils. Packwood Haugh School numbers averaged 226 (2022 – 208) of whom 54 (2022 – 54) were boarders.

Shrewsbury School pupil numbers at the start of the 2023/24 academic year were 843, and Packwood Haugh had 221 pupils.

A Level and GCSE results both reflected a national tightening of grade boundaries. 72.4% of A Level candidates received the equivalent of A* to B, and these results enabled 87% of our leavers to take up their first choice university destination. At GCSE 52% of candidates received grades 9 to 7.

Outside the classroom Shrewsbury School and Packwood Haugh School continued provide a wide range of co-curricular opportunities, with many team and individual achievements. Among highlights from a packed programme a company of 42 Salopians completed a sell-out run of “Gatsby” at the 2022 Edinburgh Fringe Festival and the choristers performed Evensong at St Paul’s Cathedral in April 2023. The 1st XI Boys team reached the English Schools’ FA final and the U17 Boys’ Cricket team were National Champions. Individual girls and boys were selected to represent team GB in rowing, athletics and fencing, and the Girls’ football programme started at Shrewsbury in the Michaelmas term 2022.

Grants and Awards

The Charity in total awarded bursaries, scholarships and allowances of £4,911,162 (2022 - £4,720,014). Shrewsbury School, despite not possessing a large endowment reserve, continues to support and assist pupils to come to Shrewsbury. During the year Shrewsbury School awarded a total of £4,544,147 (2022 £4,353,644) of scholarships, grants, bursaries and other allowances to pupils, of which £676,047 (2022 - £643,613) came from restricted funds, including £649,017 (2022 - £613,662) from Shrewsbury School Foundation. Packwood made awards to pupils totalling £367,015 (2022 - £336,370).

Shrewsbury School holds a scholarship competition for suitably qualified candidates under the age of 14 each year. It awards up to four Butler Scholarships to a value of 30% of fees; up to four Kennedy Scholarships; and two Moss Scholarships worth up to one-fifth of fees; and up to seven Alington Exhibitions worth £2,000 per year. There are also up to four Music Scholarships worth up to 30% of fees, each year, and two Art Scholarships worth one-fifth of fees.

For entrants to Shrewsbury at Sixth Form level, there are a range of academic, music and sporting awards. In addition, the School offers two means tested Sixth Form sporting scholarships, worth up to 100% of fees.

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SHREWSBURY SCHOOL

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

Foundation bursaries are awarded to pupils who will make a significant contribution to the School whether it be academically in sport or through the arts. The funding for these awards comes from Shrewsbury School Foundation. In total, Shrewsbury School Foundation financially supported 27 pupils (2022 - 28 pupils) of whom 7 pupils (2022 - 7 pupils) received 100% funding.

The Governors publish a detailed grant making policy on Shrewsbury School's website. In short, the Governors' policy is to make bursary awards on the basis of the individual's educational ability and his or her family's ability to pay, subject to the particular conditions imposed by the original donor where the award is taken from restricted funds.

Financial Review and Results for Year

The financial statements reflect the activities and results of the Charity (Shrewsbury School and Packwood) and its two subsidiary companies, Shrewsbury School Enterprises Limited and Shrewsbury School Trading Company Limited.

The group had net incoming resources of £1,760,765 (2022 - £1,533,731) for the year.

The School's strategic plan assumes the following means of financing the continued investment in the School's facilities:

Net assets increased to £47,481,546 from £46,046,466. The increase comprised net incoming resources of £1,760,765; a decrease in the market value of Charity’s investments of £182,685; and £143,000 actuarial loss relating to Shrewsbury School's defined benefit pension scheme under FRS 102.

The School's defined benefit scheme valuation under the requirements of Financial Reporting Standard 102 (FRS102) showed that the scheme was in surplus at 31 July 2023, the Charity did not regard it as prudent to record the asset on its balance sheet.

Capital expenditure totalled £10,585,035. This represents a return to a more normal level of activity. £3,978,548 was spent of the completion of the Queen Elizabeth Hall, £2,086,360 was spent on the refurbishment of Churchills and Ingrams, £1,785,380 was spent on Porthill Astro and £1,192,738 was spent on the Science Centre at Packwood.

The Charity's two subsidiary companies continued to trade during the year. Shrewsbury School Enterprises Limited remained the vehicle through which Shrewsbury School conducts its overseas school business; Shrewsbury School Trading Company Limited, continued to operate the School shop, sporting and leisure activities and commercial lets of the School premises.

Shrewsbury School Trading Company Limited results remained at a slightly lower level than pre-pandemic. This was in line with the planned construction projects on the school site in July 2023, and the commensurately reduced scope of letting activities.

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SHREWSBURY SCHOOL

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

International School Developments

The International Development Director has continued to work with the international development committee to cement relationships with Shrewsbury International Asia (SIA), as well as to develop and execute new relationships.

There are currently three schools operated by SIA. Shrewsbury International School Bangkok (Riverside) provides an important income stream, reflecting the success of the venture. The school opened on a purposebuilt greenfield site in 2003 and has just completed an expansion project to keep up with demand. It currently has just under 2,000 pupils, aged between 3 to 18. There is a close working relationship between the schools. Shrewsbury International School Bangkok (City Campus) and Shrewsbury School International School, Hong Kong completed a fifth successful year of operation and continue to grow to capacity.

Shrewsbury International School Phnom Penh, operated by new partners Tutor Impact, opened its Early Years provision in the Cambodian capital in September 2022. A primary school is planned to open in September 2024 followed by a secondary school in September 2026.

Agreements were signed in February 2023 with the Jagran Social Welfare Society to open a premium international school in Madhya Pradesh, India. The full boarding co-educational school for pupils aged 11 to 18 will be situated on a state of the art 150-acre campus.

Further details on our international schools https://www.shrewsbury.org.uk/ShrewsburySchoolInternational

can be found at

Fundraising Performance

The School received donations of £771,140 during the year (2022 - £718,457).

Shrewsbury School Foundation (a separate Charity) raises funds to donate to the School for bursary support, capital and educational projects. In the current year the School received from the Foundation a total of £724,216 of this £649,017 was to support bursaries.

RESERVES POLICY

The School does not possess large endowment reserves to generate income to assist in the financing of the School.

At the year-end Endowed Funds totalled £1,408,448 and Restricted Funds totalled £707,745, because of the particular spending constraints attached to them they are not available for funding the general operations of the School. Unrestricted Funds totalling £45,365,353 are expendable in accordance with the Objects of the School. The School has no current free reserves as the unrestricted reserves are less than the net book value of fixed assets. Given our plans for new buildings, this nil balance will continue for several years.

This is in accordance with the long-term plans of the Trustees for the development of the School and they are satisfied that the resources available to the School through external bank finance are adequate for its projected requirements. In addition to the operational land and buildings, the School owns residential properties for housing some of its staff.

There are also artefacts and works of art, which have been acquired and accumulated over very many years. These are of huge educational and wider cultural benefit to the School community and some are made available, under appropriate conditions, to external researchers and scholars. They are not revalued in the Balance Sheet and the Governors are of the view that there is no benefit to be gained from incurring the costs of valuations other than for insurance purposes.

The annual revenue expenditure requirements of the School are generally met from annual income. Prudent budgeting and tight financial control are designed to ensure that adequate but not excessive cash headroom is

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SHREWSBURY SCHOOL

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

maintained, and this is supported by a seasonal overdraft facility.

The Governors are confident that the capital development plan can be achieved by the policies set out above, supported by prudent borrowing and support from Shrewsbury School Foundation on selected projects.

The Governors have established a designated fund, which aims to provide bursarial support to enable pupils to attend the School. The intention of the Governors is to allocate a proportion of the School's commercial income each year, based on an agreed calculation, subject to operating requirements. The intention is to build up the fund over the forthcoming years, with income from it being used to provide bursarial support to pupils attending the School. During the year, the Trustees allocated £516,245 to the fund. At the year end the value of this designated fund was £3,774,113.

INVESTMENT POLICY

The Governors, as Trustees, have wide powers to invest in property and securities, including stocks and shares.

The Governors review, on a regular basis, the investment profile of the School, the risks and returns achieved and the likely future performance.

The fees in advance funds are invested in a targeted return fund with the aim of generating above inflation returns, while providing the security of investments backing two years fees in advance liabilities.

The policy of the School with regard to endowed and designated investments is to ensure that they produce a regular and growing income stream, together with capital growth. The School’s investments are managed by Sarasin & Partners. The School funds are held in the Sarasin Endowments Fund Class A Income Fund, a global multi-asset portfolio with an integrated socially responsible investment policy. The fund seeks to provide growth (in terms of investment value and growth) of 4% per year more than the CPI over a rolling five-year period. The School’s investments decreased in capital value by £182,685 (2%) over the previous year.

PRINCIPAL RISKS AND UNCERTAINTIES

As explained above, the Governors have considered the principal risks and uncertainties facing the School. The economic climate affects the ability of parents to afford the school fees, and the affordability of fees is considered as an important factor in the long-term financial planning. In terms of unexpected costs, the Governors ensure that insurance is in place for known and insurable risks. With a large built estate, the School also monitors and plans for foreseeable future building repairs. An updated buildings insurance valuation was completed in 2022.

The management team also carefully monitors the level of scholarships and bursaries to ensure that grant commitments are maintained at a sustainable level, carefully reviewing the future grant funding available from Shrewsbury School Foundation.

The School has also considered non-financial risks. As the health and safety of the pupils and staff is paramount, the Trustees consider any potential breach of health and safety to be a principal risk. To mitigate the School has developed policies to ensure the regulations and guidelines for the welfare of pupils and staff are observed.

FUTURE PLANS

Page 11

SHREWSBURY SCHOOL GOVERNORS. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2023 ACCOUNTING AND REPORTING RESPONSIBILITIES The Governing Body is ￿qUired by law to prepare financial statements for each financial year, which gNe a true and fair view of the financial actwilies of the Charity and of its financial position at the end of that year. In preparing those financial slalements the Goveming Body is reqUI￿d to.. select suitable accounting policies and apply them consistently. make judgements and estimates that are reasonable and prudent. slate whether applicable accounting stsndards have been followed, subject to any material departures disclosed and explained in the financial ststemenls. prepare the financial statements on the going concem basis unless it is inappropriate lo presume that the Charity will continue in business. Taking into account the specrfic economic and geopolitical risks, the Goveming Body has roviewed future school cashflows and is confident that it is appropriate to produce financial slalemenls on a going concern basis. The Governing Body is responsible for keeping proper accounting records which disclose, wf(h reasonable accuracy al any time, the financial position ol the charity and enable il to ensure that the financial slalemenls comply with the Charities Act 2011 and the Shrewsbury School Stalules, approved by the Itte HM Queen ElrLabeth 11 in Council on 12 October 2016. It is also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In delemiining how amounts are presented with in items in the slalemenl of financol activities and balance sheet, the Governors have regard lo the substance of the reported transaction or arrangement. In accordance with generally accepted accounting principles or practice. So far as each of the Govemors is aware al the lime the report is approved". The￿ is no relevant audit information of which the company's auditors are un8ware,' and The Governors have taken all steps that they ought to have taken lo make themselves aware of any relevant audit infomiation and lo establish that the auditors are aware of that infomiation. Audf(ors Crowe U.K. LLP have indicatgd their willingness lo remain in office. This report was 8pproved by the Governors. on 2 De￿mber 2023 and signed on th&ir behalf by". J.D.C. Pltt Chair Page 12

SHREWSBURY SCHOOL

INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS OF SHREWSBURY SCHOOL

Opinion

We have audited the financial statements of Shrewsbury School (the 'parent charity') and its subsidiaries (the 'group') for the year ended 31 July 2023 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Charity balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Governors' 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 Group's or the parent charity'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 Governors with respect to going concern are described in the relevant sections of this report.

Page 13

SHREWSBURY SCHOOL

INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS OF SHREWSBURY SCHOOL (CONTINUED)

Other information

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

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of Governors

As explained more fully in the Governors' responsibilities statement, the Governors are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Governors 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 Governors are responsible for assessing the Group's 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 Governors either intend to liquidate the Group or the parent charity or to cease operations, or have no realistic alternative but to do so.

Page 14

SHREWSBURY SCHOOL

INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS OF SHREWSBURY SCHOOL (CONTINUED)

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 Act 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.

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

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, taxation legislation, employment legislation, 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 charity 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, General Data Protection Regulation (GDPR), Health and Safety legislation and Employment legislation .

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees 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 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, reviewing regulatory correspondence with the Charity Commission, Independent Schools Inspectorate, Ofsted, 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 non-compliance 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 noncompliance and cannot be expected to detect non-compliance with all 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 Auditor's report.

Page 15

SHREWSBURY SCHOOL

INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS OF SHREWSBURY SCHOOL (CONTINUED)

Use of our report

This report is made solely to the charity's Governors, 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 its Governors, as a body, for our audit work, for this report, or for the opinions we have formed.

Crowe U.K. LLP

Statutory Auditor Fourth Floor St James House St James Square Cheltenham GL50 3PR

Date: 01 February 2024

Crowe U.K. LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 16

SHREWSBURY SCHOOL

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2023

Note
Income and
endowments from:
Grants and donations
3
Charitable activities:
School fees
4
Other educational
income
5
Other ancillary trading
income
5
Other trading activities
6
Investments
7
Other income
8
Total income and
endowments
Expenditure on:
Raising funds:
Trading activities
9
Fundraising costs
9
Financing costs
10
Charitable activities:
11
Education and grant
making
Total expenditure		 Unrestricted
funds
2023
£
-
31,658,779
446,572
416,719
2,292,022
163,672
54,028
35,031,792
1,298,264
380,728
340,679
31,345,607
33,365,278		 Restricted
funds
2023
£
771,140
-
-
-
-
37,949
-
809,089
-
-
-
716,645
716,645		 Endowment
funds
2023
£
-
-
-
-
-
1,807
-
1,807
-
-
-
-
-		 Total
funds
2023
£
771,140
31,658,779
446,572
416,719
2,292,022
203,428
54,028
35,842,688
1,298,264
380,728
340,679
32,062,252
34,081,923		 Total
funds
2022
£
718,457
29,135,472
343,919
92,786
1,968,956
159,507
-
32,419,097
1,165,251
335,809
208,291
29,176,015
30,885,366

Page 17

SHREWSBURY SCHOOL

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

Note
Net income before
net gains/(losses) on
investments
Net losses on
investments
Net income before
transfers
Transfers between
funds
22
Net movement in
funds before other
recognised
gains/(losses)
Actuarial (losses)/gains
on defined benefit
pension schemes
27
Net movement in
funds
Reconciliation of
funds:
Total funds brought
forward
Net movement in funds
Total funds carried
forward		 Unrestricted
funds
2023
£
1,666,514
(150,604)
1,515,910
167,541
1,683,451
(143,000)
1,540,451
43,824,902
1,540,451
45,365,353		 Restricted
funds
2023
£
92,444
-
92,444
(167,541)
(75,097)
-
(75,097)
782,763
(75,097)
707,666		 Endowment
funds
2023
£
1,807
(32,081)
(30,274)
-
(30,274)
-
(30,274)
1,438,801
(30,274)
1,408,527		 Total
funds
2023
£
1,760,765
(182,685)
1,578,080
-
1,578,080
(143,000)
1,435,080
46,046,466
1,435,080
47,481,546		 Total
funds
2022
£
1,533,731
(230,678)
1,303,053
-
1,303,053
1,904,000
3,207,053
42,839,413
3,207,053
46,046,466

The notes on pages 24 to 63 form part of these financial statements.

Page 18

SHREWSBURY SCHOOL

CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2023

Note
Fixed assets
Tangible assets
14
Investments
15
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
19
Net assets excluding pension asset
Defined benefit pension scheme asset
27
Total net assets		 273,265
2,141,455
7,914,663
10,329,383
(9,911,293)		 2023
£
51,735,516
8,596,916
60,332,432
418,090
60,750,522
(13,268,976)
47,481,546
-
47,481,546		 275,643
1,978,173
6,956,037
9,209,853
(7,430,777)		 2022
£
43,749,295
8,163,967
51,913,262
1,779,076
53,692,338
(7,645,872)
46,046,466
-
46,046,466

Page 19

SHREWSBURY SCHOOL CONSOLIDATED BALANCE SHEET ICONTINUEDI AS AT 31 JULY 2023 2023 2022 Note Charity funds Endowment funds 1.408,448 707,745 45,365,353 1,438,722 782,842 43,824,902 Restricted funds Unreslricled funds Total funds 47,481,$46 46,046,466 The financial statements were approved and authorised for issue by the Govemors and signed on their behalf by: J.C.D. Pitt R. 8oy$4 nes Dale.. 2 December 2023 The notes on pages 24 to 63 fomi part of these financial stalements. Page 20

SHREWSBURY SCHOOL

CHARITY BALANCE SHEET AS AT 31 JULY 2023

Note
Fixed assets
Tangible assets
14
Investments
15
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
19
Net assets excluding pension asset
Defined benefit pension scheme asset
27
Total net assets		 77,124
3,595,508
6,492,046
10,164,678
(9,745,061)		 2023
£
51,728,382
8,596,916
60,325,298
419,617
60,744,915
(13,268,976)
47,475,939
-
47,475,939		 65,120
2,839,351
6,055,384
8,959,855
(7,179,148)		 2022
£
43,738,583
8,163,967
51,902,550
1,780,707
53,683,257
(7,645,872)
46,037,385
-
46,037,385

Page 21

SHREWSBURY SCHOOL CHARITY BALANCE SHEET ICONTINUEDI AS AT 31 JULY 2023 2023 2022 Note Charity funds Endowment funds 22 1.408.448 1,438,722 ReStr￿ted funds un￿strICted funds Un￿91￿Cted funds excluding pension asset 22 707.745 782.842 22 45,359.746 43,815,821 Total unrestricted funds 22 45.359,746 43.815,821 Total funds 47,475.939 46.037.385 The Charitys net movement in funds for the year was £1,438,55412022 - £3,181,286). The financial slalemenls were approved and authorised for issue by the Govemors and signed on their behalf by.. IIL J.C.D. Pitt R. Boys- tones Date.. 2 December 2023 The notes on pages 24 10 63 form part of these financial slalemenls. Page 22

SHREWSBURY SCHOOL

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2023

Cash flows from operating activities
Net cash provided by operating activities
23
Cash flows from investing activities
Dividends and interest from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
Net cash used in investing activities
Cash flows from financing activities
Cash inflows from new borrowing
Repayments of borrowing
Interest paid on borrowings
Net cash (used)/provided in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
24		 2023
£
5,505,993
203,428
39,050
(10,585,034)
1,893
(617,294)
(10,957,957)
7,000,000
(453,801)
(135,376)
6,410,823
958,859
6,980,579
7,939,438		 2022
£
5,215,606
159,507
35,075
(5,128,378)
-
(910,854)
(5,844,650)
-
(586,072)
(64,916)
(650,988)
(1,280,032)
8,260,611
6,980,579

The notes on pages 24 to 63 form part of these financial statements

Page 23

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

1. Legal status of the Charity

The School is governed in accordance with the Shrewsbury School Statutes approved by the Queen’s Most Excellent Majesty in Council on 12 October 2016, whose registered office and primary place of business is Shrewsbury School, The Schools, Shrewsbury, SY3 7AA. It has no share capital. Its principal activity is the provision of boarding and day schooling. It is a registered Charity in England and Wales and its Charity registration number is 528413.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The 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 the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Shrewsbury School meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

No separate SOFA has been presented for the Charity alone. The net result for the year relating to the School amounted to a surplus of £1,438,554 (2022 - £3,181,286).

2.2 Going concern

Having reviewed the funding facilities available to the School together with the expected ongoing demand for places and the School’s future projected cash flows, the Governors have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the School’s financial viability. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Accounting and Reporting Responsibilities on page 12.

Page 24

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

2. Accounting policies (continued)

2.3 Critical accounting estimates and areas of judgment

In the application of the accounting policies, Trustees are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

Useful economic lives of tangible assets

The annual depreciation charges for the tangible assets are sensitive to changes in the estimate 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 14 for the carrying amount of the tangible assets and note 2.8 for the useful lives for each class of asset.

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 ageing profile of debtors and historical experience. See note 17 for the net carrying amount of the debtors.

2.4 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Governors in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Governors 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 Group for particular purposes.

Endowment funds are donations required to be retained as capital in accordance with the donors’ wishes – permanent or expendable according to the nature of the restrictions. The costs of raising and administering such funds are charged against the specific fund.

The aim and use of each restricted and endowment fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Page 25

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

2. Accounting policies (continued)

2.5 Income

All incoming resources are included in the Statement of Financial Activities when the School has entitlement to the income, the amount can be quantified with reasonable accuracy and the economic benefit to the School is considered probable.

Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided.

Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the School.

Income from other trading activities comprises revenue recognised by the School's wholly owned subsidiaries in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.

Voluntary income is accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the School is considered probable.

Voluntary income for the School’s general purposes is accounted for as unrestricted and is credited to the General Reserve. Where through the terms of an appeal or from the donor there is a trust law restriction on the use of any voluntary income, the income is credited to the relevant restricted fund or endowment. Gifts in Kind would be valued at estimated open market value at the date of the gift, in the case of assets for retention or consumption or at the value to the School in the case of donated services of facilities.

Investment income from dividends, bank balances and fixed interest securities is accounted for on an accruals basis.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Page 26

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

2. Accounting policies (continued)

2.6 Expenditure

Charitable activities and Governance costs are costs incurred on the charity's operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.

Expenditure is accrued as soon as a liability is considered probable discounted to present value for longer term liabilities and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources. Liabilities are recognised where there is a legal or constructive obligation committing the entities to the expenditure.

Fundraising costs are those incurred in seeking voluntary contributions in relation to Shrewsbury School Foundation, a connected charity (Charity number 528415). Provided that, and so long as, Shrewsbury School Foundation exercises and continues to exercise its charitable objects in furtherance of the objects (the “Shrewsbury School Charitable Objects”) set out in the Foundation Trust Deed, the School shall pay the employment, administrative and other costs and expenses of the Foundation in furthering Shrewsbury School's Charitable Objects.

Support costs are those costs that, whilst necessary to deliver an activity, do not themselves produce or constitute the output of the charitable activity. Included in support costs of the School are bursary costs, payroll administration, budgeting and accounting, information technology, human resources and finance. School trip expenditure is included under support costs.

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

Governance costs comprise the costs of running the charity including strategic planning for its future development, also internal and external audit, any legal advice for the Governors and all costs of complying with constitutional and statutory requirements such as the costs of Board and Committee meetings and of preparing statutory accounts and satisfying public accountability.

2.7 Government grants

Government grants are credited to the Consolidated statement of financial activities as the related expenditure is incurred.

Page 27

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

2. Accounting policies (continued)

2.8 Tangible fixed assets and depreciation

Computer equipment costing more than £300 is capitalised and carried in the Balance Sheet at historical cost.

Major refurbishment expenditure, equipment, boats and vehicles costing more than £1,000 are capitalised and carried in the Balance Sheet at historical cost.

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Depreciation is not charged on freehold land or assets under the course of construction.

Leasehold property is depreciated over the term of the lease.

Depreciation is calculated on a monthly basis.

The School owns a number of cultural and historic artefacts which are considered to be heritage assets. During the year a formal valuation of these assets was undertaken by Sotheby’s who valued the assets on both an insurance basis and an auction basis. The valuations provided ranged between £6.050M and £12.214M. Given the highly specialist nature of the items and the resulting broad valuation range, the Governors have concluded that there is insufficient information to recognise them with material accuracy and therefore no value has been attributed to them in the Balance Sheet and no depreciation charged, on the basis that reliable information is not available, as permitted by the Charity SORP.

2.9 Investments

Investments are stated at market value at the Balance Sheet date. The Consolidated statement of financial activities includes the net gains and losses arising on revaluations and disposals throughout the year.

Investments in subsidiaries are valued at cost less provision for impairment.

2.10 Operating leases

Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 28

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

2. Accounting policies (continued)

2.11 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

2.12 Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised costs using the effective interest method, less any impairment.

2.13 Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.14 Fees in advance

Parents may, subject to contractual terms and conditions, pay to the School tuition fees in advance. The money may be returned, subject to specific conditions.

Investments are held to cover the next two years capital liabilities.

2.15 Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost with the exception of investments which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions. Assets and liabilities held in foreign currency are translated to GBP at the Balance Sheet date at an appropriate year end exchange rate.

2.16 Concessionary Loans

The loans from Shrewsbury School Foundation and Shropshire Council (see note 19) are considered to meet the criteria of concessionary loans under FRS 102. They have been recorded in the financial statements at face value.

Page 29

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

2. Accounting policies (continued)

2.17 Pensions

The School operates a defined contribution pension scheme for non-teaching staff (Shrewsbury School (2001) Retirements Benefits Scheme). This scheme gives exemption from the requirement to offer a stakeholder pension scheme. During the year the total contributions were £378,972 (2022 - £348,710).

The School also contributes to a personal pension scheme for the benefit of certain Packwood Haugh School employees. The scheme is a defined contribution scheme administered by Scottish Widows. During the year the total contributions were £45,783 (2022 - £43,606).

On 1 September 2021, Shrewsbury School and Packwood Haugh School, gave notice to the Teachers’ Pension Scheme, that they would be implementing the “phased withdraw” regulations. New teaching staff at both Schools would be enrolled into defined contribution pension schemes, at each School (Shrewsbury School 2021 DC Pension Scheme and Shrewsbury School – Packwood Haugh 2021 DC pension Scheme). The Schemes are administered by Legal & General. During the year the total contributions were £326,892 (2022-£91,639)

The School contributes to a defined benefit pension scheme (final salary scheme) for the academic staff, which is a national scheme operated for the Department for Education and Skills, which requires contributions to be made to a separately administered fund. The total premiums paid during the year were £1,510,487 (2022 - £1,777,014).

In addition, the School operates a defined benefit pension scheme for non teaching staff (Shrewsbury School (1971) Pension and Life Assurance Scheme), which is closed to new members. The basis of contributions to the Scheme is calculated according to the advice of the Scheme actuary. During the year the total contributions were £12,988 (2022 - £12,913).

Page 30

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

3. Income from grants and donations

Unrestricted
funds
2023
Restricted
funds
2023
£
£
Donations
-
771,140
Total 2023
-
771,140
Total 2022
28,469
689,988
Charitable activities - School fees receivable
The School's fee income comprised:
Gross fees
Less: Total bursaries, scholarships and allowances
Add back bursaries, scholarships and allowances paid for by Restricted
Funds		 Total
funds
2023
£
771,140
771,140
718,457
2023
£
35,893,894
(4,911,162)
30,982,732
676,047
31,658,779		 Total
funds
2022
£
718,457
718,457
2022
£
33,211,874
(4,720,015)
28,491,859
643,613
29,135,472

4. Charitable activities - School fees receivable

Scholarships, bursaries and other awards were paid to 478 pupils (2022 - 457).

Within this means tested bursaries totalling £3,451,393 paid to 248 pupils (2022 - £3,388,880 to 254 pupils).

Page 31

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

5. Charitable activities - Other income

Other educational charitable income
Entrance and registration fees
Courses and sub-lettings
Royalties received
Other ancillary activities
Commissions received
School trips
Late payment surcharges
6.
Other trading activities
Trading activities SSEL
Trading activities SSTCL		 2023
£
160,576
219,492
66,504
446,572
2023
£
5,221
411,298
200
416,719
2023
£
1,209,820
1,082,202
2,292,022		 2022
£
108,044
174,061
61,814
343,919
2022
£
4,746
87,840
200
92,786
2022
£
995,844
973,112
1,968,956

Page 32

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Other trading activities (continued)

Shrewsbury School Enterprises Limited (SSEL)

The Charity owns the whole of the £1 ordinary share capital of Shrewsbury School Enterprises Limited (Company registration number 4535585), incorporated in England. The Company’s principal activity is the provision of consulting services to international Schools.

Its trading results for the period, as extracted from the audited accounts, are summarised below:

Turnover
Administration
Operating profit
Interest payable
Interest receivable
Profit for the year
Gift aid payment
Retained loss		 2023
£
1,209,809
(388,157)
821,652
(6,698)
11
814,965
(818,367)
(3,402)		 2022
£
995,665
(384,152)
611,513
(1,161)
179
610,531
(612,071)
(1,540)

Shrewsbury School Enterprises Limited approved a gift aid donation of £818,367 (2022 - £612,071) to Shrewsbury School during the year.

The net assets of Shrewsbury School Enterprises Limited at 31 July 2023 amounted to £641 (2022 – £4,043).

At the year end Shrewsbury School Enterprises Limited owed Shrewsbury School £1,455,794 (2022 - £976,740). Of which £137,635 (2022 - £137,635) is an unsecured loan, repayable with one year's notice and interest charges at 1% above Lloyds Bank Plc base rate.

The management charge from the School to Shrewsbury Enterprises Limited was £269,367 (2022 - £210,275). In addition there is a licence fee of £10,000 (2022 - £10,000).

Page 33

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Other trading activities (continued)

Shrewsbury School Trading Company Limited (SSTCL)

The Charity owns the whole of the £100 ordinary share capital of Shrewsbury School Trading Company Limited (Company registration number 5580019), incorporated in England. The principal activity of the Company was the operation of the School shop and other recreational activities.

Its trading results for the period, as extracted from the audited accounts, are summarised below:

Turnover
Cost of sales
Gross profit
Administration
Operating profit
Interest receivable
Profit for the year
Gift aid payment
Retained profit/(loss)		 2023
£
1,081,902
(614,555)
467,347
(288,854)
178,493
300
178,793
(178,865)
(72)		 2022
£
972,904
(522,837)
450,067
(257,101)
192,966
208
193,174
(165,867)
27,307

Shrewsbury School Trading Company Limited approved a gift aid donation of £178,865 (2022 - £165,867) to Shrewsbury School during the year.

The net assets of Shrewsbury School Trading Company Limited at 31 July 2023 amounted to £4,966 (2022 – £5,038).

At the year end Shrewsbury School Trading Company Limited owed Shrewsbury School £834,609 (2022 - £679,125).

The management charge from the School to Shrewsbury School Trading Company Limited was £139,342 (2022 – £130,454).

Page 34

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

7. Investment income

Unrestricted
funds
2023
£
Interest
7,912
Income from listed investments
155,760
Total 2023
163,672
Total 2022
119,462		 Restricted
funds
2023
£
-
37,949
37,949
37,602		 Endowment
funds
2023
£
-
1,807
1,807
2,443		 Total
funds
2023
£
7,912
195,516
203,428
159,507		 Total
funds
2022
£
5,812
153,695
159,507

8. Other incoming resources

Other income
Total 2023		 Unrestricted
funds
2023
£
54,028
54,028		 Total
funds
2023
£
54,028
54,028		 Total
funds
2022
£
-
-

Page 35

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

9. Expenditure on raising funds

Trading costs of the subsidiaries

Unrestricted
funds
2023
£
Other costs
767,309
Staff costs
526,560
Depreciation
4,395
Total 2023
1,298,264
Total 2022
1,165,251
Fundraising for voluntary resources
Unrestricted
funds
2023
£
Other costs
186,221
Staff costs
194,507
Total 2023
380,728
Total 2022
335,809		 Total
funds
2023
£
767,309
526,560
4,395
1,298,264
1,165,251
Total
funds
2023
£
186,221
194,507
380,728
335,809		 Total
funds
2022
£
721,075
441,210
2,966
1,165,251
Total
funds
2022
£
166,208
169,601
335,809

Page 36

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

10. Financing costs

Unrestricted
funds
2023
£
Fees in advance financing cost
111,933
Bad debts and debt collection
30,783
Bank and investment manager charges
69,587
Loan interest
135,376
Pension scheme financing cost
(7,000)
Total 2023
340,679
Total 2022
208,291		 Total
funds
2023
£
111,933
30,783
69,587
135,376
(7,000)
340,679
208,291		 Total
funds
2022
£
122,461
(41,016)
32,930
64,916
29,000
208,291

11. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2023
£
Teaching
14,309,958
Welfare
5,095,018
Premises
7,575,360
Support and governance
4,365,271
Grants, awards and prizes
-
Total 2023
31,345,607
Total 2022
28,459,990		 Restricted
funds
2023
£
-
-
-
-
716,645
716,645
716,025		 Total
2023
£
14,309,958
5,095,018
7,575,360
4,365,271
716,645
32,062,252
29,176,015		 Total
2022
£
13,543,414
4,413,946
6,846,548
3,656,082
716,025
29,176,015

Page 37

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

11. Analysis of expenditure on charitable activities (continued)

Summary by expenditure type

Teaching
Welfare
Premises
Support and governance
Grants, awards and prizes
Total 2023
Total 2022		 Staff costs
2023
Depreciation
2023
£
£
12,436,234
-
1,206,378
-
2,365,976
2,577,094
2,363,461
-
-
-
18,372,049
2,577,094
17,358,494
2,435,982		 Other costs
2023
£
1,873,724
3,888,640
2,632,290
2,001,810
716,645
11,113,109
9,381,539		 Total
2023
£
14,309,958
5,095,018
7,575,360
4,365,271
716,645
32,062,252
29,176,015		 Total
2022
£
13,543,414
4,413,946
6,846,548
3,656,082
716,025
29,176,015

Grants, awards and prizes

From restricted funds:
Bursaries and scholarships
Prizes and awards
Governance included in support costs:
Remuneration paid to auditor for audit services
Remuneration paid to auditor for non- audit services
Other governance costs		 2023
£
676,047
40,598
716,645
2023
£
52,260
21,150
52,207
125,617		 2022
£
643,613
72,412
716,025
2022
£
45,300
20,550
100,060
165,910

Page 38

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

12. Governors' remuneration and expenses

During the year, no Governors received any remuneration or other benefits (2022 - £NIL).

During the year ended 31 July 2023, expenses totalling £1,924 were reimbursed or paid directly to 9 Governors (2022 - £1,639, 6). The expenses related to travel and accommodation.

13. Staff costs

Wages and salaries
Social security costs
Other pension costs (Note 27)
Capitalised labour		 Group
2023
£
15,244,407
1,596,620
2,277,121
19,118,148
(25,032)
19,093,116		 Group
2022
£
14,210,323
1,494,732
2,273,883
17,978,938
(9,633)
17,969,305		 Charity
2023
£
14,793,221
1,549,276
2,249,091
18,591,588
(25,032)
18,566,556		 Charity
2022
£
13,833,728
1,455,921
2,248,079
17,537,728
(9,633)
17,528,095

During the year there were redundancy or termination payments recognised which amounted to £Nil (2022 - £38,394). There was £Nil (2022 - £38,394) outstanding at the year end.

The average number of persons employed by the Charity during the year was as follows:

Teaching
Welfare
Premises
Support
Other activities		 Group
2023
No.
247
63
124
71
14
519		 Group
2022
No.
236
59
120
70
11
496

Page 39

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

13. Staff costs (continued)

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

Group Group
2023 2022
No. No.
In the band £60,001 - £70,000 32 27
In the band £70,001 - £80,000 14 11
In the band £80,001 - £90,000 3 3
In the band £90,001 - £100,000 3 3
In the band £100,001 - £110,000 1 -
In the band £110,001 - £120,000 1 -
In the band £140,001 - £150,000 1 2
In the band £150,001 - £160,000 1 -
In the band £210,001 - £220,000 - 1
In the band £250,001 - £260,000 1 -
Aggregate employee benefits of key management personnel 1,592,973 1,305,981

Key management includes the Leadership team.

Page 40

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

14. Tangible fixed assets

Group

Cost or valuation
At 1 August 2022
Additions
Disposals
Transfers between
classes
At 31 July 2023
Depreciation
At 1 August 2022
Charge for the year
On disposals
At 31 July 2023
Net book value
At 31 July 2023
At 31 July 2022		 Assets in
course of
construction
£
1,377,460
9,101,453
-
(1,277,840)
9,201,073
-
-
-
-
9,201,073
1,377,460		 Freehold
Land &
Buildings
£
60,532,986
-
-
1,277,840
61,810,826
21,048,638
1,799,055
-
22,847,693
38,963,133
39,484,348		 Furniture,
Fixtures
and fittings
£
11,262,698
1,185,664
-
-
12,448,362
9,178,522
587,502
-
9,766,024
2,682,338
2,084,176		 Boats
£
1,127,337
51,147
-
-
1,178,484
804,426
68,905
-
873,331
305,153
322,911		 Ground
Machines
& Vehicles
£
1,148,632
246,770
(117,483)
-
1,277,919
668,232
126,027
(100,159)
694,100
583,819
480,400		 Total
£
75,449,113
10,585,034
(117,483)
-
85,916,664
31,699,818
2,581,489
(100,159)
34,181,148
51,735,516
43,749,295

Page 41

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

14. Tangible fixed assets (continued)

Charity

Assets in
course of
construction
£
Cost or valuation
At 1 August 2022
1,377,460
Additions
9,101,453
Disposals
-
Transfers between
classes
(1,277,840)
At 31 July 2023
9,201,073
Depreciation
At 1 August 2022
-
Charge for the year
-
On disposals
-
At 31 July 2023
-
Net book value
At 31 July 2023
9,201,073
At 31 July 2022
1,377,460		 Freehold
Land &
Buildings
£
60,532,986
-
-
1,277,840
61,810,826
21,048,638
1,799,055
-
22,847,693
38,963,133
39,484,348		 Furniture,
Fixtures &
fittings
£
11,242,019
1,184,847
-
-
12,426,866
9,168,555
583,107
-
9,751,662
2,675,204
2,073,464		 Boats
£
1,127,337
51,147
-
-
1,178,484
804,426
68,905
-
873,331
305,153
322,911		 Ground
Machines
& Vehicles
£
1,148,632
246,770
(117,483)
-
1,277,919
668,232
126,027
(100,159)
694,100
583,819
480,400		 Total
£
75,428,434
10,584,217
(117,483)
-
85,895,168
31,689,851
2,577,094
(100,159)
34,166,786
51,728,382
43,738,583

Page 42

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

15. Fixed asset investments

Group and Charity
Cost or valuation
At 1 August 2022
Additions
Disposals
Net investment losses
Movements in cash deposits
At 31 July 2023
Net book value
At 31 July 2023
At 31 July 2022		 Designated
Fund
£
3,245,416
613,114
-
(65,494)
1,651
3,794,687
3,794,687
3,245,416		 Endowed
Funds
£
1,414,103
4,180
(144)
(32,105)
(1,418)
1,384,616
1,384,616
1,414,103		 Fees in
Advance
£
3,504,448
-
-
(86,835)
-
3,417,613
3,417,613
3,504,448		 Total
£
8,163,967
617,294
(144)
(184,434)
233
8,596,916
8,596,916
8,163,967

Investments are primarily held to provide an investment return to the School.

Investments at market value comprise:

Actively managed securities
Quoted stocks
Cash		 2023
£
3,417,613
5,154,528
24,775
8,596,916		 2022
£
3,504,448
4,634,977
24,542
8,163,967

Page 43

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Fixed asset investments (continued)

Material investments

The following investments are held which represent more than 5% of the total market value of investments held:

2023 2022
£ £
Link Fund Solutions - Ruffer Total Return 1,615,071 1,678,172
Link Fund Solutions - Trojan Inc 1,804,291 1,826,246
Sarasin Endowments Fund Class A Inc 5,154,527 4,633,793

16. Stocks

Goods for resale and consumables
Debtors
Due within one year
School fees
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
2023
£
273,265
Group
2023
£
680,091
-
1,071,627
389,737
2,141,455		 Group
2022
£
275,643
Group
2022
£
719,951
-
960,810
297,412
1,978,173		 Charity
2023
£
77,124
Charity
2023
£
680,091
2,290,403
236,935
388,079
3,595,508		 Charity
2022
£
65,120
Charity
2022
£
719,951
1,655,591
168,074
295,735
2,839,351

17. Debtors

An impairment gain of £66,603 (2022 - £45,423) was recognised against the School fee debtors.

Included within amounts due from group undertakings is a loan to Shrewsbury School Enterprises Limited of £137,635 (2022 - £137,635). The is unsecured and repayable with one year's notice and is charged at 1% above Lloyds Bank Plc base rate.

Page 44

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

18. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Fee deposits
Fees in advance (see note 20)
Other creditors
Accruals and deferred income
Other loan
Term loan 1
Term loan 2
Term loan 3		 Group
2023
£
1,826,440
420,260
983,902
2,211,759
1,805,206
1,392,597
65,000
402,906
403,223
400,000
9,911,293		 Group
2022
£
915,577
434,048
952,855
2,165,483
1,601,071
907,942
65,000
388,801
-
-
7,430,777		 Charity
2023
£
1,823,479
395,496
983,902
2,211,759
1,791,848
1,267,448
65,000
402,906
403,223
400,000
9,745,061		 Charity
2022
£
907,657
392,350
952,855
2,165,483
1,547,027
759,975
65,000
388,801
-
-
7,179,148

Within other creditors is £290,300 (2022 - £279,761) payable in respect of pension contributions.

19. Creditors: Amounts falling due after more than one year

Loan from Shrewsbury School Foundation
Fees deposits
Fees in advance (see note 20)
Other loan
Term loan 1
Term loan 2
Term loan 3		 Group
2023
£
1,296,046
3,060,152
1,476,111
498,334
741,556
4,596,777
1,600,000
13,268,976		 Group
2022
£
1,296,046
2,885,525
1,756,505
563,334
1,144,462
-
-
7,645,872		 Charity
2023
£
1,296,046
3,060,152
1,476,111
498,334
741,556
4,596,777
1,600,000
13,268,976		 Charity
2022
£
1,296,046
2,885,525
1,756,505
563,334
1,144,462
-
-
7,645,872

The loan from Shrewsbury School Foundation is unsecured, interest free and has no fixed payment terms. The loan is considered a concessionary loan.

Page 45

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Creditors: Amounts falling due after more than one year (continued)

Other loan

The other loan has been provided by Shropshire Council. The loan is repayable by April 2032 paid by monthly instalments. The loan is interest free and is secured on the following properties: Mosers Hall, The New House, 6 Ashton Road, 13 and 15 Ashton Road. This loan is considered to be a concessionary loan.

The other loan falls due as follows:

Between 1-2 years
Between 2-5 years
Over 5 years		 2023
£
65,000
195,000
238,334
498,334		 2022
£
65,000
195,000
303,334
563,334

Term loan 1

The loan from Handelsbanken is unsecured. The loan is repayable by April 2026 in 24 quarterly instalments. The interest rate is fixed at 3.63%.

The term loan falls due as follows:

Between 1-2 years
Between 2-5 years		 2023
£
418,031
323,525
741,556		 2022
£
403,075
741,387
1,144,462

Page 46

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Creditors: Amounts falling due after more than one year (continued)

Term loan 2

The loan from Lloyds bank is secured over the freehold land and buildings at the Tudors, Tudor House, including Emma Darwin Hall. The loan is repayable by July 2033 in 40 quarterly instalments. The interest rate is fixed at 4.528%.

The term loan falls due as follows:

Between 1-2 years
Between 2-5 years
Over 5 years		 2023
£
424,230
1,391,910
2,780,637
4,596,777		 2022
£
-
-
-
-

Term loan 3

The loan from Handelsbanken is unsecured. The loan is repayable by June 2028 in 20 quarterly instalments. The interest rate is fixed at 6.07%.

The term loan falls due as follows:

Between 1-2 years
Between 2-5 years		 2023
£
400,000
1,200,000
1,600,000		 2022
£
-
-
-

Page 47

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

20. Fees in advance

Parents may, subject to contractual terms and conditions, pay to the School tuition fees in advance. The money may be returned, subject to specific conditions but, assuming the relevant pupils remain in the School, advance fees will be applied as follows:

Within 1-2 years
Within 2-5 years
Over 5 years
Within 1 year		 2023
£
794,005
523,758
158,348
1,476,111
2,211,759
3,687,870		 2022
£
837,143
767,103
152,259
1,756,505
2,165,483
3,921,988

The balance represents the accrued liability under the contracts. The movement during the year was:

Balance at 1 August 2022
New contracts
Amounts accrued to contracts
Amounts utilised in payment of fees to the School
Balance at 31 July 2023		 2023
£
3,921,988
3,322,232
111,896
7,356,116
(3,668,246)
3,687,870		 2022
£
4,082,100
3,159,485
122,906
7,364,491
(3,442,503)
3,921,988

Page 48

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

21. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2023
£
Tangible fixed assets
51,735,516
Fixed asset investments
7,212,300
Current assets
9,597,806
Creditors due within one year
(9,911,293)
Creditors due in more than one year
(13,268,976)
Total
45,365,353		 Restricted
funds
2023
£
-
-
707,745
-
-
707,745		 Endowment
funds
2023
£
-
1,384,616
23,832
-
-
1,408,448		 Total
funds
2023
£
51,735,516
8,596,916
10,329,383
(9,911,293)
(13,268,976)
47,481,546

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds
2022
£
43,749,295
6,749,864
8,402,392
(7,430,777)
(7,645,872)
43,824,902		 Restricted
funds
2022
£
-
-
782,842
-
-
782,842		 Endowment
funds
2022
£
-
1,414,103
24,619
-
-
1,438,722		 Total
funds
2022
£
43,749,295
8,163,967
9,209,853
(7,430,777)
(7,645,872)
46,046,466

Page 49

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

22.
Statement of funds
Statement of funds - current year
Balance at 1
August 2022
£
Income
£
Unrestricted
funds
Designated
funds
Designated
funds
3,245,393
97,561
Unrestricted
funds
General funds
40,570,428
32,642,209
Subsidiary
trading
9,081
2,292,022
40,579,509
34,934,231
Total
Unrestricted
funds
43,824,902
35,031,792
Endowment
funds
Capital
1,285,921
-
Re-endowment
fund
152,301
1,807
Hentschrew
Prize Fund
500
-
1,438,722
1,807		 Expenditure
£
-
(31,069,782)
(2,295,496)
(33,365,278)
(33,365,278)
-
-
-
-		 Transfers
in/(out)
£
516,245
(348,704)
-
(348,704)
167,541
-
-
-
-		 Gains/
(Losses)
£
Balance at
31 July 2023
£
(85,086)
3,774,113
(208,518)
41,585,633
-
5,607
(208,518)
41,591,240
(293,604)
45,365,353
-
1,285,921
(32,081)
122,027
-
500
(32,081)
1,408,448		 Gains/
(Losses)
£
Balance at
31 July 2023
£
(85,086)
3,774,113
(208,518)
41,585,633
-
5,607
(208,518)
41,591,240
(293,604)
45,365,353
-
1,285,921
(32,081)
122,027
-
500
(32,081)
1,408,448
41,585,633
5,607
41,591,240
45,365,353
1,285,921
122,027
500
1,408,448

Page 50

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

22. Statement of funds (continued)

Balance at 1
August 2022
£
Restricted
funds
Shrewsbury
School
Foundation
33,245
Guyer Family
Prize
180
Hentschrew Prize
80
Darwin
Scholarship
7,212
Hargreaves
Legacy
500
Salopian Club
-
Duffell Prize
Fund
4,940
Consolidated
Fund:
Unappropriated
income
649,396
Art Fund
2,000
Sabrina Club
-
External
Bursaries
-
Packwood -
Redevelopment
of Science
Facilities
85,289
782,842
Total of funds
46,046,466		 Income
£

724,216
40
-
-
-
27,310
-
37,949
-
7,053
12,521
-
809,089
35,842,688		 Expenditure
£
(662,006)
(40)
-
-
-
(27,310)
-
(14,768)
-
-
(12,521)
-
(716,645)
(34,081,923)		 Transfers
in/(out)
£
(75,199)
-
-
-
-
-
-
-
-
(7,053)
-
(85,289)
(167,541)
-		 Gains/
(Losses)
£
Balance at
31 July 2023
£
-
20,256
-
180
-
80
-
7,212
-
500
-
-
-
4,940
-
672,577
-
2,000
-
-
-
-
-
-
-
707,745
(325,685)
47,481,546

Page 51

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

22. Statement of funds (continued)

Statement of funds - prior year

Unrestricted
funds
Designated
funds
Designated
funds
Unrestricted
funds
General funds
Subsidiary
trading
Pension scheme
funding deficit
Total
Unrestricted
funds
Endowment
funds
Capital
Re-endowment
fund
Hentschrew
Prize Fund		 Balance at
1 August
2021
£
2,749,870
39,792,098
(16,686)
(1,998,000)
37,777,412
40,527,282
1,358,862
154,597
500
1,513,959		 Income
£
78,528
29,641,580
1,968,956
-
31,610,536
31,689,064
-
2,443
-
2,443		 Expenditure
£
-
(28,320,152)
(1,943,189)
94,000
(30,169,341)
(30,169,341)
-
-
-
-		 Transfers
in/(out)
£
569,865
(542,970)
-
-
(542,970)
26,895
-
-
-
-		 Gains/
(Losses)
£
(152,870)
(128)
-
1,904,000
1,903,872
1,751,002
(72,941)
(4,739)
-
(77,680)		 Balance at
31 July 2022
£
3,245,393
40,570,428
9,081
-
40,579,509
43,824,902
1,285,921
152,301
500
1,438,722

Page 52

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

22. Statement of funds (continued)

Balance at
1 August
2021
£
Income
£
Expenditure
£
Restricted funds
Shrewsbury
School
Foundation
50,989
634,162
(644,997)
Guyer Family Prize
180
40
(40)
Hentschrew Prize
80
-
-
Darwin
Scholarship
7,212
-
-
Hargreaves
Legacy
500
-
-
Salopian Club
-
19,175
(19,175)
Duffell Prize Fund
4,940
-
-
Shrewsbury
School Parents'
Association
-
902
(902)
Consolidated
Fund:
Unappropriated
income
626,504
37,602
(14,710)
Art Fund
2,000
-
-
DFE Grant - Cross
Partnership
Grant
19,078
-
(19,078)
Gym Fund
1,400
-
(1,400)
Sabrina Club
-
150
(150)
External Bursaries
-
15,573
(15,573)
Packwood -
Redevelopment
of Science
Facilities
85,289
-
-
Packwood -
Boarding House
Upgrade Fund
-
19,986
-
798,172
727,590
(716,025)
Total of funds
42,839,413
32,419,097
(30,885,366)		 Balance at
1 August
2021
£
Income
£
Expenditure
£
Restricted funds
Shrewsbury
School
Foundation
50,989
634,162
(644,997)
Guyer Family Prize
180
40
(40)
Hentschrew Prize
80
-
-
Darwin
Scholarship
7,212
-
-
Hargreaves
Legacy
500
-
-
Salopian Club
-
19,175
(19,175)
Duffell Prize Fund
4,940
-
-
Shrewsbury
School Parents'
Association
-
902
(902)
Consolidated
Fund:
Unappropriated
income
626,504
37,602
(14,710)
Art Fund
2,000
-
-
DFE Grant - Cross
Partnership
Grant
19,078
-
(19,078)
Gym Fund
1,400
-
(1,400)
Sabrina Club
-
150
(150)
External Bursaries
-
15,573
(15,573)
Packwood -
Redevelopment
of Science
Facilities
85,289
-
-
Packwood -
Boarding House
Upgrade Fund
-
19,986
-
798,172
727,590
(716,025)
Total of funds
42,839,413
32,419,097
(30,885,366)		 Transfers
in/(out)
£
(6,909)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(19,986)
(26,895)
-		 Transfers
in/(out)
£
(6,909)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(19,986)
(26,895)
-		 Gains/
(Losses)
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,673,322		 Balance at
31 July 2022
£
33,245
180
80
7,212
500
-
4,940
-
649,396
2,000
-
-
-
-
85,289
-
782,842
- 46,046,466

Page 53

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Statement of funds (continued)

Designated Fund

A fund established by the Governors to assist future pupils with bursarial support to attend the School.

Re-endowment Fund

A fund established in 1924 to contribute to the upkeep of the estate and to the support of pupils at Shrewsbury School who are in financial need.

Shrewsbury School Foundation

A registered charity supporting a range of educational objectives through financial contributions to Shrewsbury School and its pupils. Donations received totalled £724,216 (2022 - £634,162) of which £649,017 (2022 - £613,662) was given to support bursaries awarded to pupils and £75,199 (2022 - £Nil) for capital projects.

Guyer Family Prize

An annual prize for an outstanding contribution to the music department.

Hentschrew Prize

An annual prize to the boy in the School House who contributes most to the well running of the house, in a social rather than academic or sporting context.

Darwin Scholarship

A scholarship awarded to pupils attending the School from Hong Kong who are judged outstanding academically, in the arts, music or sport.

Hargreaves Legacy

A legacy left by an old boy, to be used for educational purposes.

Salopian Club Fund

The donations received from the Salopian Club to assist with costs relating to staff and the Salopian magazine.

Duffell Prize Fund

A donation received to fund a prize to a pupil who excels in design and technology.

Shrewsbury School Parents' Association

A donation received to assist with the purchase of books for new pupils joining the School.

Consolidated Fund

A consolidation of 70 small funds the income from which, is used to provide prizes, scholarships and bursaries to pupils at Shrewsbury School.

Art Fund

A donation received to support the Art Department.

Sabrina Club

A donation received to assist with the purchase of a boat.

DFE Grant - Cross Partnership Grant

Grant received, to support impactful, sustainable, and mutually beneficial partnerships with School's in the State Sector.

Gym Fund

Donations received to assist improving the gym facilities in one of the School's boarding houses.

Page 54

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Statement of funds (continued)

External Bursaries

Donations received assist pupils who would not otherwise be able to attend Shrewsbury School.

Packwood - Redevelopment of Science Facilities

Donations received to assist with the redevelopment costs of the science facilities at Packwood Haugh School.

Packwood - Board House Upgrade Fund

A donation received to upgrade the boarding house common rooms at Packwood Haugh.

Transfers between funds

The transfer between restricted and general funds of £167,541 (2022 - £26,895) represents capital items purchased from restricted funds (capital items purchased are in accordance with the donors wishes).

The transfer between general and designated funds of £516,245 (2022 - £569,865) represents the transfer approved to the designated fund by the Trustees during the year.

23. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Losses/(gains) on investments
Dividends and interest from investments
Loss/(profit) on the sale of fixed assets
Decrease in stocks
Increase in debtors
Increase in creditors
Pension scheme movement
Interest paid on borrowings
Net cash provided by operating activities		 Group
2023
£
1,578,080
2,581,489
182,685
(203,428)
(21,726)
2,378
(163,282)
1,557,421
(143,000)
135,376
5,505,993		 Group
2022
£
1,303,053
2,438,948
230,678
(159,507)
13,730
16,248
(36,678)
1,438,218
(94,000)
64,916
5,215,606

Page 55

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

24. Analysis of cash and cash equivalents

Cash at bank
Cash held in investments
Total cash and cash equivalents		 Group
2023
£
7,914,663
24,775
7,939,438		 Group
2022
£
6,956,037
24,542
6,980,579

25. Analysis of changes in net debt

Cash at bank
Debt due within 1 year
Debt due after 1 year		 At 1 August
2022
£
6,956,037
(453,801)
(3,003,842)
3,498,394		 Cash flows
£
958,626
453,801
(7,000,000)
(5,587,573)		 Other non-
cash
changes
£
-
(1,271,129)
1,271,129
-		 At 31 July
2023
£
7,914,663
(1,271,129
(8,732,713
(2,089,179

26. Capital commitments

At 31 July 2021 the group and charity had capital commitments as follows:

Group Group
2023 2022
£ £
Contracted for but not provided in these financial statements 4,666,929 4,349,740

Page 56

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

27. Pension commitments

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 £1,510,487 (2022 - £1,777,014) and at the year-end £186,408 (2022 - £220,362) 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 2020 and the Valuation Report was published in October 2023.

Following the McCloud judgement, the remedy proposed that when benefits become payable, eligible members can select to receive them from either the reformed or legacy schemes for the period 1 April 2015 to 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the greater benefits, and in preparing the 2020 valuation have valued the ‘greater value’ benefits for groups of relevant members.

The valuation confirmed that the employer contribution rate for the TPS would increase from 23.6% to 28.6% from 1 April 2024. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 28.68%.

Shrewsbury School (1971) Pension and Life Assurance Scheme

The School has a defined benefit pension scheme for certain support staff (Shrewsbury School (1971) Pension and Life Assurance Scheme) and its assets are invested in pooled tracker investment funds and a property fund with Legal & General Investment Managers. The scheme has been closed to new members since 2001.

The amounts in the financial statements for the year ended 31 July 2023, relating to pensions, are based on a full actuarial valuation dated 31 May 2022.

The valuation, as of 31 May 2022, revealed a funding deficit of £759,000. Subsequent to the valuation date, there was a significant improvement in the Scheme’s funding position and the Trustees of the Scheme and the School, agreed and implemented a de-risking investment strategy, holding 100% of matching assets in order to protect the funding surplus and reduce any funding volatility. As a result of this strategy, the Scheme is now in surplus, and the statutory funding objective has been met.

This post valuation experience has resulted in the following:

  1. The school will pay contributions of 23.8% pf pensionable salaries up to 31 August 2023, and from 1 September 2023, 23.5% of pensionable salaries, to meet the cost of future accrual for active members of the Scheme, in line with the Schedule of Contributions dated 24 August 2023.

  2. In accordance with the Schedule of Contributions dated 24 August 2023, the School is expected to pay additional contributions of £138,000 a year to 31 August 2023. As from 1 September 2023, these additional contributions are no longer required as the Scheme is in surplus.

In addition, with the agreement the Trustees of the Pension Scheme and the School, the administration expenses of the Scheme could be borne by the Scheme, up to £100,000 a year, if not the School will continue to meet the administrative expenses of the Scheme.

Page 57

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

27. Pension commitments (continued)

The Trustees of the Pension Scheme, have a charge over he is following School properties: 33 Porthill Road, 23 and 23a Ashton Road.

Principal actuarial assumptions at the Balance sheet date (expressed as weighted averages):

Discount rate
Future salary increases - pre 2030
Future salary increases - post 2030
Inflation assumption (RPI) - pre 2030
Inflation assumption (RPI) - post 2030
Inflation assumption (CPI) - pre 2030
Inflation assumption (CPI) - post 2030
Pre 6/4/1997 (fixed 3%)
Post 6/4/1997 (RPI min 3%, max 5% - Option A members) - pre 2030
Post 6/4/1997 (RPI min 3%, max 5% - Option A members) - post 2030
Post 6/4/1997 (CPI min 3%, max 5% - Option B members) - pre 2030
Post 6/4/1997 (CPI min 3%, max 5% - Option B members) - post 2030
Mortality rates (in years)
- for a male aged 65 now
- at 65 for a male aged 45 now
- for a female aged 65 now
- at 65 for a female aged 45 now
Sensitivity analysis
Discount rate +0.25%
RPI rate +0.25%
CPI rate +0.25%
Assumed life expectancy age 65 - increase by 1 year		 At 31 July
2023
%
5.20
2.25
2.95
3.15
2.95
2.25
2.95
3.00
3.60
3.55
3.30
3.55		 At 31 July
2022
%
3.25
2.35
3.05
3.25
3.05
2.35
3.05
3.00
3.65
3.55
3.30
3.55
At 31 July
2023
Years
22.0
23.0
24.3
25.4		 At 31 July
2022
Years
22.0
23.0
24.5
25.6
At 31 July
2023
£
(147,000)
44,000
23,000
211,000		 At 31 July
2022
£
(222,000)
68,000
36,000
385,000

Page 58

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

27. Pension commitments (continued)

The Group's share of the assets in the scheme was:

Equities
Bonds
Property
Target return
Insurance annuities
Cash
Total fair value of assets		 At 31 July
2023
£
-
5,492,000
-
-
1,036,000
82,000
6,610,000		 At 31 July
2022
£
2,971,000
575,000
1,070,000
1,147,000
1,217,000
112,000
7,092,000

The actual return on scheme assets was £-338,000 (2022 - £-17,000).

The amounts recognised in the Consolidated Statement of Financial Activities are as follows:

Current service cost - within Schools and grant making
Net interest on pension scheme liabilities - within finance charges
Total amount recognised in the Consolidated Statement of Financial
Activities		 2023
£
18,000
(7,000)
11,000		 2022
£
28,000
29,000
57,000

Movements in the present value of the defined benefit obligation were as follows:

Opening defined benefit obligation
Contributions by scheme participants
Actuarial gains
Benefits paid
Current service cost
Interest cost
Closing defined benefit obligation		 2023
£
6,989,000
3,000
(1,232,000)
(302,000)
18,000
229,000
5,705,000		 2022
£
9,347,000
3,000
(2,133,000)
(393,000)
28,000
137,000
6,989,000

Page 59

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

27. Pension commitments (continued)

Movements in the fair value of the Group's share of scheme assets were as follows:

Opening fair value of scheme assets
Interest income
Actuarial losses
Contributions by employer
Contributions by scheme participants
Benefits paid
Closing fair value of scheme assets		 2023
£
6,989,000
236,000
(1,375,000)
154,000
3,000
(302,000)
5,705,000		 2022
£
7,349,000
108,000
(229,000)
151,000
3,000
(393,000)
6,989,000

Pension commitments (continued)

Reconciliation of funded status:

Opening deficit
Employer contributions
Charge recorded in Statement of Financial Activities
Actuarial (loss)/gain received in Statement of Financial Activities		 2023
£
-
154,000
(11,000)
(143,000)
-		 2022
£
(1,998,000)
151,000
(57,000)
1,904,000
-

Page 60

SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

28. Operating lease commitments

At 31 July 2023 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Group and Charity Amounts payable:
Within 1 year
Between 1 and 5 years		 Group and
Charity
2023
£
10,416
16,492
26,908		 Group and
Charity
2022
£
17,337
27,302
44,639

The following lease payments have been recognised as an expense in the Statement of financial activities:

Group Group
2023 2022
£ £
Group and Charity
Operating lease rentals 10,416 44,056

29. Financial instruments

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Financial assets
Financial assets measured at fair value
through income and expenditure 8,596,916 8,163,967 8,596,916 8,163,967

Financial assets measured at fair value through income and expenditure comprises investments in UK listed securities.

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SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

The Group’s income, expense, gains and losses in respect of financial instruments are summarised below:

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Total investment income for financial assets
measured at fair value through income and
expenditure 203,428 159,507 203,428 159,507
Net (gain)/loss on financial assets measured
at fair value through income and expenditure 182,685 230,678 182,685 230,678
Impairment loss /(gains) on financial assets
measured at amortised cost 66,603 (45,423) 66,603 (45,423)
Total interest expense for financial liabilities
held at amortised cost 135,376 64,916 135,376 64,916

30. Related party transactions

During the year Shrewsbury School had various transactions and balances outstanding at the year end with its two wholly owned trading subsidiaries, Shrewsbury School Enterprises Limited and Shrewsbury School Trading Company Limited. These are disclosed in note 6.

Governors' remuneration and expenses are disclosed in note 12 and key management personal remuneration is disclosed in note 13.

There are no other related party transactions to disclose.

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SHREWSBURY SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

31. Consolidated Statement of Financial Activities for the year ended 31 July 2022

Unrestricted
funds
2022
£
Income and endowments:
Grants and donations
28,469
Charitable activities:
School fees
29,135,472
Other educational income
343,919
Other ancillary trading income
92,786
Other trading activities
1,968,956
Investments
119,462
Other income
-
Total income
31,689,064
Expenditure on: Raising funds:
Trading activities
1,165,251
Fundraising costs
335,809
Financing costs
208,291
Charitable activities:
Education and grant making
28,459,990
Total expenditure
30,169,341
Net income before investment
gains/(losses)
1,519,723
Net gains/(losses) on investments
(152,998)
Net income before transfers
1,366,725
Transfers between Funds
26,895
Net income before other recognised gains
and losses
1,393,620
Actuarial (losses)/gains on defined benefit
pension schemes
1,904,000
Net movement in funds
3,297,620
Reconciliation of funds:
Total funds brought forward
40,527,282
Total funds carried forward
43,824,902		 Restricted
funds
2022
£
689,988
-
-
-
-
37,602
-
727,590
-
-
-
716,025
716,025
11,565
-
11,565
(26,895)
(15,330)
-
(15,330)
798,172
782,842		 Endowment
funds
2022
£
-
-
-
-
-
2,443
-
2,443
-
-
-
-
-
2,443
(77,680)
(75,237)
-
(75,237)
-
(75,237)
1,513,959
1,438,722		 Total funds
2022
£
718,457
29,135,472
343,919
92,786
1,968,956
159,507
-
32,419,097
1,165,251
335,809
208,291
29,176,015
30,885,366
1,533,731
(230,678)
1,303,053
-
1,303,053
1,904,000
3,207,053
42,839,413
46,046,466

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