**Annual Report and Financial Statements** Year End August 2024
Contents
|Chair's Statement|1|
|---|---|
|Mission, Principles and Objectives|2|
|Reference and Administrative Information|7|
|Governors'Report|8|
|Statement of Governors' Responsibilities|36|
|Independent Auditor's Report|37|
|Statement of Financial Activities|40|
|Balance Sheet|42|
|Statement of Cash Flows|43|
|Notes to the Financial Statements|44|
## Chair’s Statement
Fundamental to our purpose as a Foundation is that the children in our schools access a broad and balanced curriculum. A range of data are an expression of how we achieve that goal: Ofsted grades; examination results; non-formal activities; and t he professional preparation of our staff.
Several of our schools were inspected by Ofsted in t he last year. All achieved grades of Outstanding or Good, a performance unequalled by comparable Academy Trusts. The strength of the Ofsted process is its range of view, the final grade being a judgment on t he quality of education, behaviour and attitudes, personal development and leadership and management. As a Foundation, we take particular satisfaction in the outcome of the inspection at Balaam Wood Academy. Rated Inadequate when it joined the Foundation and Academy Trust, a judgement of Good w as a jump of two classifications, a step change secured by only 18% of schools. It also means the community served by Balaam Wood has an Ofsted-rated Good school for the first time in 18 y ears.
Examination results at A-level and the International Baccalaureate (IB) show solid improvement in all schools. Illustratively, 41.3% of A-level grades were grade A or A*, an increase of 4.78% compared with 2023; nationally, the increase was a more modest 1.1% . Across almost all our 14 schools, GCSE results also improved.
No less important as a preparation for life after school is the wide range of sporting and cultural activities provided in each school. Access to these opportunities is supported by the strength of our inter-school collaboration, enabling children to share activities being provided in schools other than their own.
Finally, the quality of our educational provision rests on the quality of our teaching and support staff. A landmark event this year was a day devoted to on- line provision of continuing professional development (CPD). The format allowed a huge range of opportunities to be accessible by all our staff with the benefit that it was recorded and could be accessed through an on- line archive. Throughout the year, the quality of provision is supported by the work of staff appointed as Foundation Leaders in Education. Funded to work across the Foundation’s schools, the FLEs support educational improvements across our curriculum areas.
Underpinning these aspects of educational quality are improvements to our management and governance structures. On management, a streamlining of our HR systems continues and is contributing to a more efficient management system. The Education Committee is also benefiting from enhanced data systems, adding to its powers of scrutiny.
The creation of the Academy Trust led to a requirement to have a m ore elaborate committee structure. A review of that structure has led to its simplification without loss of accountability. W e have also secured the engagement of members of School Governing Bodies on some of our central advisory groups, strengthening expertise and improving communication between the centre and our schools.
Finally, we continue to grow, Kings Norton Boys’ School joined the Academy Trust and Foundation in January 2024. Alongside our expansion in size is continuing growth in collaboration with other schools in Birmingham. Our mission of making Birmingham the best place to be educated in t he United Kingdom can only be achieved in partnership.
**Prof. H Thomas** Chair of the Foundation Board
1
Mission, Principle and Objectives
## **Charitable Objects**
The objects of the Foundation are set out in the 1900 Act as amended by a scheme agreed with the Charity Commission on 7 March 2012 and relate to the advancement of education for the public benefit principally through the activities of the fourteen schools.
## **Mission**
The Foundation’s overarching mission is to make Birmingham the best place to be educated in t he UK. The Foundation recognises that in order to do so it needs t o provide access to a diverse range of schools: independent as w ell as academies, selective and also comprehensive. It also believes t hat those schools need t o be accessible to all, regardless of ethnic, religious and social background. As the nature of the pupil community that the Foundation serves has changed, so has the social context within which this mission sits, and consequently so too have the resources required to deliver that mission. The Foundation’s strategy sets out the objectives of the Foundation, ‘the ends’, along with the structures and resources required to meet them, ‘the means’.
## **Strategy**
The purpose of the strategy is to ensure that we can deliver our values to:
- Raise aspirations, providing opportunities and giving confidence alongside excellent academic standards. Widen access and transform lives f or all young people, no matter their background.
- Encourage open-mindedness, equality for all, honesty, fairness, understanding and accepting the views of others.
- Create a love of learning, which will foster creativity, imagination and the capacity to communicate. Instil a sense of community and the desire to support and work with others.
- Build character and relationships, along with a sense of morality, care and respect for others. Ensure successful transition to the world of further study and work through strong academic outcomes.
The Foundation Strategy seeks t o put education firmly at the heart of all of the decisions we make: strategic, operational and financial. It is based on the spirit that the Foundation has of ten been a force for change and moved with the times while retaining its core principles. To achieve our bold mission, it sets out how we can work genuinely towards an ethos of one organisation in which collaboration and efficiencies lead to a better education for the children and young people whom the Foundation serves. While there is excellence in all our schools, w e recognise that every school can also improve and that working together and sharing our resources and ideas is the most effective way of doing that.
2
Mission, Principle and Objectives
## **Objectives**
The following strategic objectives are for the whole organisation and can only be achieved by schools and t he Foundation Office working closely together with shared responsibility. Each objective is underpinned by a set of key performance indicators.
## **Strategic Objective 1 (SO1): Learning with us**
## **SO1.1 Academic Outcomes and Progress**
Learners within the Foundation should benefit from an excellent quality of education in all of its schools and gain high quality outcomes. Learners should make excellent progress and leave the Foundation with better educational outcomes compared to other areas of the country.
## **SO1.2 Access and Impact**
A Foundation education should be available to the widest range of learners possible. Disadvantaged learners should receive support to have a meaningful impact on t heir education. They should benefit from the same opportunities as their peers when they leave the Foundation’s schools and achieve similar success.
## **SO1.3 Pathways in Birmingham and Beyond**
Learners should access a range of destinations nationally and internationally in terms of further education, higher education, training and employment. At the same time, learners should contribute to the success of the Birmingham community. Wherever learners go, they should make the most of their opportunities and be successful. Foundation alumni should be able to contribute to civic life in Birmingham through the skills, knowledge and character they have gained in t he course of their experience.
## **SO1.4 Well-being, Character and Learning Skills**
Learners within the Foundation should be w ell-rounded and resilient individuals thanks to a focus on character education and w ell-being. They should feel safe and happy attending school and in t heir everyday lives. T hey should have an appreciation of culture, compassion, critical thinking skills and a love of learning, being ready to embrace innovation.
## **SO1.5 Curriculum and Resources**
Learners should follow a curriculum which is broad, balanced and diverse f or both academic and vocational education and which is supported by excellent resources. At the same time, learners should have the opportunity to access specialist provision in other Foundation schools. They should access and enjoy a wideranging extra-curricular programme.
## **SO1.6 Foundation Identity**
At transition points, learners should have the flexibility to move between Foundation institutions where appropriate. They should feel part of one organisation and be proud of being a member of the Foundation.
3
Mission, Principle and Objectives
## **Strategic Objective 2 (SO2): Working with us**
## **SO2.1 Collaborative Working and Learning**
Colleagues within the Foundation should benefit from opportunities for collaborative learning and networking in a modern educational environment. Opportunities should exist for all those who wish to progress and to engage in work with a strong moral purpose.
## **SO2.2 Innovation, Research and Performance**
Colleagues within the Foundation should have the opportunity and encouragement to think innovatively in their working lives. Appraisal of performance should lead to professional learning opportunities.
## **SO2.3 Modern Strategy for People**
The Foundation should be an exceptional place to work, supported by a range of interconnected people strategies designed t o attract, develop and retain talented and committed staff. Its HR function should be a credible provider of transactional, advisory and strategic service and a key contributor to the organisation’s success. Colleagues should be attracted to join t he Foundation because they see working in the UK’s second city as a positive prospect and because the Foundation itself is a p re-eminent organisation for educational excellence.
## **SO2.4 Equality, Diversity and Inclusion**
Colleagues within the Foundation should demonstrably understand, clearly represent and actively promote the diversity of the people of Birmingham with a strong employer commitment to equal opportunity for all. The Foundation should promote equality, inclusion and t he understanding of diversity among themselves and learners.
## **SO2.5 Efficient Systems and Data Analytics**
Colleagues within the Foundation at all levels (including leadership, teaching, school-based support and central staff), should have at their disposal highly effective, modern, secure and integrated digital systems for managing their work and communicating with each other. Digital systems should be selected and implemented to deliver maximum impact for all colleagues and learners, aggregate and make data accessible to inform central and local decisions, as w ell as modernise and standardise support services.
## **SO2.6 Work Environment, Resources and Sustainability**
Colleagues should benefit from estates and procurement strategies which allow them to work in comfortable and inspiring environments supporting collaboration with the best possible resources at hand. The Foundation should have an exemplary sustainability strategy.
4
Mission, Principle and Objectives
## **Strategic Objective 3 (SO3): Learning with us**
## **SO3.1 Growth and Reputation**
The Foundation, and it s Academy Trust, should be an at tractive proposition for schools looking to join a Multi Academy Trust because of its excellent reputation as a unique group of schools. The Foundation’s voice and expertise should be sought in the development of educational and other policy and strategy nationally.
## **SO3.2 Educational Partners**
The Foundation should partner with the primary, other secondary, alternative provision, further education and higher education sectors and be seen as a national and international, outward-focused model for education. The Foundation should be a hub for collaboration, networking and the sharing of best practice.
## **SO3.3 Civic and Corporate Partners**
The Foundation should engage locally and beyond on a civic and corporate level, offering specialist advice, resources and governance. Organisations should see the Foundation as a willing and beneficial partner, appreciating the quality and extent of its offer. Partners should speak of admiration for and a love of Birmingham and its heritage.
## **SO3.4 Fund-raising and Support**
The Foundation should benefit from strong links with alumni, parents and relatives of alumni, corporate donors and a range of other partners. Donations provided by individuals, families, corporations or other organisations should have hypothecated uses for key strategic projects such as assisted places, capital builds, heritage work and co-curricular and enrichment programmes. The Foundation should benefit from pro-bono of fers of support for these projects from its extensive wider community.
## **SO3.5 Excellence in Governance and Compliance**
Governor and Trustee opportunities at the Foundation should be sought after, and the successful candidates should contribute to the success of the organisation. The views of Governors and Trustees, and t he Foundation’s model of governance, should be seen as examples by others. The Foundation’s compliance work should be exemplary.
## **SO3.6 Heritage**
The Foundation’s historical richness and impact on t he life of Birmingham, manifested in its Archive, should be a heritage resource for the City as a living and growing historical artefact, further raising the Foundation’s profile and generating interest in the organisation.
5
Mission, Principle and Objectives
## **Activities undertaken to deliver Objectives and Public Benefit**
Under the Charities Act 2011, a charity must be established for charitable purposes only. A charitable purpose is a purpose that falls within section 3 (1) of the 2011 Act and which is for public benefit. The list in section 3 (1) includes the advancement of education.
The Governors recognise their responsibilities as charity trustees. In 2023/24, the principal activities carried out to further the charitable purposes of the Foundation for the public benefit and t o meet the objectives set out above include:
- The Foundation gifting, under the terms of licences, private land and buildings to the Academy Trust. Within the Academy Trust where the Foundation is the landowner this provides schools with the land and buildings they need t o provide education to their pupils.
- The Foundation continuing to support the means-tested Assisted Places scheme at the Independent Schools. Both Independent Schools have also raised funds aimed at providing further means-tested assistance to lower income families. This greatly enhances the accessibility of King Edward’s School and King Edward VI High School for Girls to a range of pupils, irrespective of background;
- The Foundation providing support services to the Academy Trust in the form of donated services. These services include strategic support, finance, procurement, human resources, payroll, governance, estates, marketing and communications, educational support and, f or the selective schools within the Academy Trust, an admissions service. This support enables the Academies to focus their resources and management time on t he education of their pupils;
- The Foundation playing an active role as a patron of the Greater Birmingham Chamber of Commerce, providing a platform for being a voice that is listened to on key educational issues. W e are already nationally recognised for our work in ensuring that our selective schools are accessible to all. W e have augmented this by maintaining and enhanc ing the Assisted Places scheme at the Independent Schools and by redesigning the Academy Trust admissions strategy to increase the percentage of disadvantaged children attending the selective schools, further ensuring those schools are rooted in t he communities they serve;
- King Edward’s School (KES) and King Edward VI High School for Girls (KEHS) providing a wide range of activities and facilities for the benefit of neighbouring schools and community groups.
6
Reference and Administrative Information
The Governors of the Schools of King Edward VI in Birmingham is a corporate body established by Royal Charter in 1552 and is regulated by the Birmingham (King Edward the Sixth) Schools Act 1900 together with subsequent Schemes of the Board of Education and Charity Commissioners. The Schools of King Edward VI in Birmingham is a registered charity, number 529051.
Registered Office and Principal Address of Charity:
Foundation Office Edgbaston Park Road BIRMINGHAM B15 2UD
The Foundation is comprised of:
**I** ndependent Schools: King Edward's School King Edward VI High School for Girls
The Foundation also sponsors the King Edward VI Academy Trust Birmingham. Although this is a separate legal entity with its own accounts, the Academy Trust schools are all required to be formally designated as part of the Foundation in line with the provisions of the Birmingham (King Edward VI Schools) Act 1900, as amended. These schools are considered, therefore, to be part of the Foundation and may be referred to as such in the Governors’ Report. The Academy Trust financial statements are available on our website: www.schoolsofkingedwardvi.co.uk
## Academies:
King Edward VI Aston School King Edward VI Balaam Wood Academy King Edward VI Camp Hill School for Boys King Edward VI Camp Hill School for Girls King Edward VI Five Ways School King Edward VI Handsworth School for Girls King Edward VI Handsworth Grammar School for Boys King Edward VI Handsworth Wood Girls’ Academy King Edward VI King's Norton School for Boys King Edward VI Lordswood School for Girls King Edward VI Northfield School for Girls King Edward VI Sheldon Heath Academy
7
Governors’ Report
The Governors, who are also trustees of the charity, who were in office at the date of approval of the accounts and served on the Board throughout the period are set out below, together with their membership of Committees:
The following Governors resigned in 2024; Mr I Metcalfe on 31 March 2024 and L Williams on 5 July 2024.
In addition to the above, the Independent Schools’ Governing Body has appointed several Non-Board Governors who are not Trustees of the Foundation. They are Mrs Olivera Raraty, Mrs Katherine Coates, Dr Simon Bird and Mr Nandan Gautam.
8
Governors’ Report
## **Office and Advisors**
|**Office and Advisors**||
|---|---|
|**Chief Executive Officer:**|**Mr Jodh Dhesi**|
|**Director of Operations:**|**Mr Thomas Rowland (resigned Oct**ober 2023**)**|
|**Chief Finance Officer:**|**Mr Gregory Langston**|
|**Principal Address:**|**The Schools of King Edward VI in Birmingham**|
||**Foundation Office**|
||**Edgbaston Park Road**|
||**Birmingham**|
||**B15 2UD**|
|**Banker:**|**Lloyds Bank plc**|
||**PO Box 908**|
||**125 Colmore Row**|
||**Birmingham**|
||**B3 2SD**|
|**Legal Advisor:**|**Veale Warborough Vizards LLP**|
||**3 Brindley Place**|
||**Birmingham**|
||**B1 2JB**|
|**Auditors:**|**Crowe U.K. LLP**|
||**Black Country House**|
||**Rounds Green Road**|
||**Oldbury**|
||**West Midlands**|
||**B69 2DG**|
|**Property Advisor:**|**Avison Young**|
||**3 Brindley Place**|
||**Birmingham**|
||**B1 2JB**|
|**Investment Manager:**|**Barclays Wealth**|
||**1 Churchill Place**|
||**London**|
||**E14 5HP**|
9
Governors’ Report
## **Key Management Personnel**
**Chief Master:**
## **Dr Katy Ricks MA, DPhil**
**Principal**
**Chief Executive Officer: Director of Operations: Chief Finance Officer: School Bursar:**
**Mrs Kirsty Von Malaise MA (Cantab), PGCE Mr Jodh Dhesi MA (Cantab), NPQEL, PGCE Mr Thomas Rowland BA, MA Mr Gregory Langston Mrs Zoe Robinson BSc, ACA**
10
Governors’ Report
## **Procedure for Recruitment, Induction and Training of Trustees**
The Foundation Board comprises eleven Governors appointed by the Foundation (the maximum is 12). Regard is given to the skills mix of the Governors to ensure that the Foundation Board has all the necessary skills required to contribute to the objects of the Charity. The Governance and Nominations Committee oversees recruitment.
The term of office for any Governor is four years. Subject to remaining eligible to be a particular type of Governor, any Governor may be reappointed or re-elected. The Governors who were in office at the date of approval of the accounts and served throughout the period, except where shown, are listed on page 8. During the period under review the Foundation Board held 6 meetings.
The induction and training of Governors is important to the Foundation. Specific steps are taken as follows:
- Advice is offered on appointments for Governors who are appointed by external bodies. Appointments of co-opted Governors are guided by the fullest possible consideration of a Governance and Nominations Committee which meets regularly to consider the skills, attributes, and balance of Members. All appointment procedures are formal, rigorous, and transparent.
- All Governors receive a welcome pack and personal briefing.
- Documents relating to current developments are circulated to Governors together with DfE guidance and Charity Commission documents. At meetings Governors have the benefit of specialist advice.
- Periodic conferences and focussed training sessions are organised.
## **Organisation**
The Governors, guided by the reports of various Committees, determine the general policy of the Foundation and are responsible for the governance of the two Independent Schools. The Foundation, as a Member of the Academy Trust, appoints a number of Trustees to the Academy Trust Board. The management of the Independent Schools is delegated to the Chief Master and Principal, and management of the Foundation to the Chief Executive Officer.
Prof H Thomas was the Chair of the Board and Ms E Conway was the Deputy Chair of the Board in the prior and current year.
Mr F Kinkhabwala held office as Bailiff and Mr B Matthews Deputy Bailiff for the year to 31 August 2023. In the current year Mr B Matthews is Bailiff and Mr D Wheeldon Deputy Bailiff.
11
Governors’ Report
The Board of Governors meets at least six times per year and receives reports from the following Committees, membership of which is determined annually by the Governors.
All of the above committees are Foundation wide apart from the Independent Schools’ Governing Body which relates to the two Independent Schools.
The Chair and Deputy Chair of Committees during the year were as follows:
All Governors give of their time freely and there is no remuneration policy for Governors. Governors can claim travel expenses. No Governor or person connected with a Governor received any benefit from either means-tested Assisted Places or scholarships awarded to our pupils.
Education & Safeguarding Committee is focused on ensuring high standards of provision educationally in all the schools. This includes interrogating data, ratifying plans and processes and holding the central education team to account. In addition, safeguarding data is reviewed with any trends or anomalies discussed and planned for as part of the cyclical meetings.
Investment Committee oversees the management of the endowment and investments of the Foundation (including stocks and shares, investment property, lands, and hereditaments of the Foundation).
Finance & Operations Committee advises upon how financial resources will be allocated and aligned with strategic priorities and charitable objects, including the allocation of endowment funds made available on the recommendation of the Investment Committee.
Governance Nominations Committee makes recommendations about the membership of the Foundation Board and its Standing Committees.
Human Resources Committee ensures there is a relevant HR strategy in place and approves all policies that support the employee lifecycle.
Audit Risk & Compliance Committee deals with internal control, risk management and internal and external audit.
Remuneration Committee reviews the Foundation Executive Team performance and remuneration.
Independent Schools’ Governing Body (ISGB) deals with matters relating to the two Independent Schools, known as King Edward’s School (KES) and King Edward VI High School for Girls (KEHS). The ISGB has several sub-committees which report into it, including those relating to Finance & Estates, Risk and Compliance, Education and a Chairs Committee.
12
Governors’ Report
## **Foundation**
The Foundation provides a central support services function supplying executive leadership, financial, human resources and various other operational and administrative services to the Independent Schools and the Academy Trust. This enables the Schools to reduce their cost base and concentrate more resources and management time on teaching and learning. It also enables the Independent Schools to keep fees as low as possible.
The Foundation is an equal opportunities employer and is committed to regular communication with all staff. Staff promotions are based on merit.
## **Arrangements for setting pay and remuneration of Key Management Personnel**
Salaries of Executive personnel in the Independent Schools and the Foundation Office are reviewed by the Foundation’s Remuneration Committee. Salaries are based on a review of annual performance and with reference to affordability and the local employment market.
## **Grants**
The Foundation allocates annual grants from the expected income of the Endowment – Income Fund to the Independent Schools, in order to widen accessibility to the Schools by funding means-tested assisted places, merit-based scholarships and a staff remission scheme. The grant for Assisted Places is paid from the Foundation to the Independent Schools, who in turn then award the grants to individuals.
## **Fundraising**
The Foundation in its own right does not carry out fundraising activities. As stated in note 11, the cost of fundraising activities is charged to the School’s Fund but the activities are carried out on behalf of King Edward’s School Birmingham Trust (the KES Trust, RCN 1129776) and The King Edward VI High School for Girls Birmingham Trust (the KEHS Trust, RCN 1159413). The KES Trust and The KEHS Trust exist separately to the Foundation and to support the advancement of education at each school, and particularly to raise funds actively for Assisted Places to widen access to the Schools for all those with the talent to make the most of a King Edward's education.
The Development Director reports to each group of Trustees on a termly basis, to ensure activities are properly monitored. Each Trust is a verified member of the Fundraising Regulator. Only one suppression request has been received to date, which was handled immediately. Neither Trust has received complaints regarding their activities.
Around 53% of the support to Pupils is funded by the Foundation, with the balance coming from the King Edward VI Birmingham Trusts.
A further 216 pupils received scholarships, 6 pupils received a sibling discount (for being the third child) and 35 pupils benefited from the staff concession scheme; the cost of which was £1,279,839 to the schools.
Therefore, the full benefit provided by the Governors’ means-tested Assisted Places, hardship payments, scholarships, sibling discounts and staff concession for both schools, as shown in Note 5, for the year was £3,964,788 representing 15% of gross fees. Further information on fees assistance is provided by each school in their respective reports.
In comparison with other independent schools (both locally and nationally), fees are relatively low. Further details of the activities and educational achievements of the schools can be found on pages 26 to 35.
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Governors’ Report
## **Assisted Places (AP) – means-tested bursaries**
The Independent Schools offer assistance to a significant number of pupils, in the form of means-tested assisted places and scholarships which are funded primarily by the income from the Foundation’s capital endowment fund.
Both means-tested assisted places and scholarships are awarded on the basis of academic ability, assessed as part of the admissions process at 11+ and 16+. The funding for assistance is made by the Governors on the recommendations of the Chief Master and Principal of the Schools.
## **“Opening Doors” for bright, disadvantaged children**
The King Edward VI Foundation is open to pupils from all backgrounds. Most Foundation schools are free to attend, and our two independent schools offer fully and partially funded places for the most able pupils.
The Access and Participation Department is focused on widening access to the Foundation in terms of schools, partnerships, and pupil applications, particularly from disadvantaged backgrounds.
Working with target primary schools across the city of Birmingham, the team delivers and facilitates a range of activities across three strands: pupil recruitment, enrichment activity, and strategic partnerships development. All these activities are designed to encourage greater take-up of the entrance test by disadvantaged pupils and to secure high levels of local demand for all our comprehensive academies.
Impact measurement is an important part of our work, and we utilise national benchmarks to monitor progress against traditionally less quantifiable measures such as motivation, grit, resilience, and goal orientation, amongst others.
To encourage greater representation of children from lower income families in our grammar schools, the Foundation provides a free programme of online resources designed to help children become familiar with the topics on the entrance test. This programme is open to children who are eligible for the Pupil Premium. This provision is being relaunched this year with more advanced technology to support learners.
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Governors’ Report
## **Financial Results**
The results for the year are broadly similar to the prior year and in line with budget. In the current year, there is an operating surplus predominantly due to gains on the financial portfolio.
The Foundation had funds at 31 August 2024 of £186,931,667 (2023: £175,987,700) representing a 6.2% increase of £10,943,967. The funds comprise £3,616,455 (2023:£5,115,547) of Unrestricted Funds, a Permanent and Expendable Endowment Fund of £11,154,180 (2023: £10,388,211), Restricted Funds of £2,248,829 (2023: £2,235,603) and the Fund – Capital of £169,912,203 (2023: £158,248,339).
Statement of Financial Activities (SoFA) Summary
The total net income (before transfers) and other recognised gains and losses of all funds of the Foundation amounted to £11,067,967 (2023 deficit £331,661).
Overall, total income across all Funds increased by £2,977,596 to £31,137,140. Total expenditure increased during the year by £3,221,622 to £33,413,815. Net gain on the listed investment portfolio was £12,742,681 in 2024; £1,919,172 in 2023. Net gain on the investment property portfolio was £601,960 in 2024 and a net loss of £218,183 in 2023.
Independent Schools’ Fund – School fee income (net of assisted places and scholarships) increased by £2,123,997 (10.0%) and is in line with our plans.
15
## Governors’ Report
The gains were offset by investment costs, depreciation charged to the Fund and the FRS 102 pension deficit.
The transactions during the year in the Fund Capital were as shown below:
## **Pensions**
The teaching staff of the Independent Schools are eligible to join the Teachers’ Pension Scheme (TPS) to which the Governors contributed 28.68% of salaries. This is an unfunded scheme open to the teaching profession. It is not managed by the Governors.
Non-teaching staff of the Independent Schools and the Foundation Office have previously been eligible to join a pension scheme operated by the Governors. This is known as the Schools of King Edward VI in Birmingham Retirement Benefits Scheme (the Defined Benefit Scheme). As detailed in Note 30 to the accounts, this Defined Benefit Scheme was closed to new members from April 2010, and a new defined contribution scheme became operational.
The triennial actuarial valuation of the Retired Benefit Scheme liability was as at 31 March 2024 and has been considered by Governors. Since 2012 Governors have made additional contributions as part of a pension recovery plan in 2018/19. During 2023/24 this amounted to £426,016 (2022/23: £413,609).
Governors received the FRS 102 pension report on the Defined Benefit Scheme which showed a reduction in the pension liability from £2,354,000 to £2,108,000. This reduction is largely driven by higher investment returns combined with the deficit payments which increased the values assets. There has also been a small increase in longer term inflation.
16
Governors’ Report
## **Charity Governance Code**
The Charities Governance Code explains the minimum standards you should meet to effectively manage and control your Charity. Good governance involves putting in place systems and processes to ensure that your Charity achieves its charitable objectives with integrity and is managed in an effective, efficient, accountable and transparent way. The below sets out the way the Foundation has adopted the six core principles of this code:
## Principle 1. Advancing charitable purpose
The Board is clear about the Charity’s aims and ensures that these are being delivered effectively and sustainably. This was enhanced in 2021 by the creation of a new Foundation Strategy. During the 2021/22 financial year, a series of key performance indicators were developed to drive and monitor progress against the strategic priorities and objectives set out in the Foundation Strategy. The Board receives regular progress reports in relation to these objectives. Work is underway to develop a new Foundation Strategy to start in September 2026.
## Principle 2. Acting with integrity
The Board acts with integrity, adopting values and creating a culture which help achieve the organisation’s charitable purposes. The Board is aware of the importance of the public’s confidence and trust in charities, and trustees undertake their duties accordingly. The Board ensures that appropriate risk management processes are in place, ensures that appropriate safeguarding training and procedures are in place, is cognisant of the Foundation’s Equality, Diversity and Inclusion policy and is working with the senior executive team to develop an action plan for delivering the Foundation’s sustainability strategy.
## Principle 3. Leading people
The Charity is led by an effective Board that provides strategic leadership in line with the Charity’s aims and values. This will be further enhanced by a revised set of governance arrangements which the Charity has introduced in September 2022. The Foundation Strategy clearly sets out a range of strategic priorities and objectives that are in line with the Charity’s aims and values and against which the Board can hold the senior executive team to account.
## Principle 4. Exercising control
The Board makes sure that its decision-making processes are informed, rigorous and timely and that effective delegation, control and risk assessment and management systems are set up and monitored. This is further enhanced by work from our third-party internal audit provider. The Board describes the Charity’s approach to risk in its annual report and in line with regulatory requirements. The Board and all its committees have clear terms of reference which are reviewed and signed off on a periodic basis. The Foundation’s Scheme of Financial Delegation clearly sets out the specific resourcing decisions which can be taken at committee level and reported to Board.
## Principle 5. Working effectively
The Board works as an effective team, using the appropriate balance of skills, experience, backgrounds and knowledge to make informed decisions. This has been further enhanced by a revised set of governance arrangements which the Charity introduced in September 2022. The Board has a Nominations Committee, regularly considers whether the appropriate mix of knowledge and skills are in place, ensures that Governor induction processes and training and development opportunities are in place and arranges an annual Governor Conference where issues relating to Board effectiveness can be discussed.
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Governors’ Report
## Principle 6. Being accountable and transparent
The Board leads the organisation in being transparent and accountable. The Charity is open in its work, unless there is good reason for it not to be. The Foundation has developed a high-level external relations strategy and will be working over the coming months to increase capacity and focus in this area, including the production of a detailed action plan. The Board maintains a register of interests for Governors and senior staff to ensure that any potential conflicts of interest are identified and appropriately managed.
In addition to the above the Foundation recognises the importance and value in equality, diversity and inclusion. The following sets out the Foundation’s approach.
Equality, diversity and inclusion - The Board’s approach to diversity supports its effectiveness, leadership and decision-making. This was enhanced by the establishment of an Equality, Diversity and Inclusion Committee in October 2020. The Committee has established a clear set of objectives and associated key performance indicators and has undertaken both staff and governor surveys. This has provided a baseline for perceptions of equality, diversity and inclusion issues across the organisation and will support decision making moving forward. Training has also been a key area of focus for the committee to ensure that staff and governors are aware of equality, diversity and inclusion issues.
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Governors’ Report
## **Risk Management Policy and Systems**
The objectives of the Foundation’s Risk Management Policy and Strategy are to:
- Integrate risk management into the culture of the Foundation.
- Manage risk in accordance with best practice.
- Anticipate and respond to changing social, environmental, and legislative requirements.
- Prevent loss, disruption, damage, and injury and reduce the cost of risk, thereby maximising resources.
- Inform policy and operational decisions by identifying risks and their likely impact.
- Raise awareness of the need for risk management.
These objectives will be achieved by:
- Using the control attestations and risk event logging to identify, manage, and report on our risk management and compliance.
- Establishing clear roles, responsibilities, and reporting lines within the Foundation for risk management.
- At the Foundation level; termly isk reporting to the Audit, Risk and Compliance Committee.
- At the Foundation level; annual risk reporting to the Foundation and Academy Trust Boards.
- At a school level; termly risk reporting to the School Governing Body.
- Incorporating risk management considerations into the decision-making process within the Foundation; this is achieved through the Head of Risk and Compliance participation in the Foundation Leadership Group. Maintaining Risk Registers for all significant projects.
- Using the Risk Registers to inform the School Development Plan, School strategies, and budgetary considerations.
Our risk methodology looks at threats to fifteen areas across the Foundation known as ‘risk categories’ – each category has a pre-mitigation risk score; determined by assessing the likelihood and impact of risks in those categories if no mitigating factor was applied.
Risk categories are the areas of the organisation which are exposed to risk, each has a description of what impact a risk could pose in that area. Controls have been mapped against each risk category and these serve to mitigate any potential risks.
Below is the list of risk categories and their mapped controls:
19
## Governors’ Report
|Risk category|Description|Controls|
|---|---|---|
|Areas of the organisation that could be
exposed to a risk|What risks could occur in this area?|What internal controls you have in place to
mitigate this risk|
||As public authorities our schools must|Policy Management|
||comply with regulatory standards, failure||
|Risk and Compliance|to do so could result in a failed inspection|Risk Register|
||or in serious situations legal action.||
|||Website compliance|
|||Access|
||Safeguarding is one of the main|Safer recruitment|
||priorities of a school, failure to have||
||appropriate safeguarding controls in|KCSIE Training|
||place can lead to the death, injury or||
|Safeguarding|abuse of a student or staff member.|DSL Training|
||This could result in litigation,
regulatory action, and Ofsted|Single Central Record|
||inadequate rating.|Safeguarding audits|
|||Safeguarding governor|
|||Data Protection Policies and Privacy Notices up to|
|||date and on website.|
||Data protection failures can lead to|GDPR training|
|Data Protection|disruption in learning, complaints or
regulatory investigation which can|Breach/SAR/FOI reporting|
||result in fines.||
|||Data Mapping|
|||Internal Data Audit|
||Without appropriate measures the|Lesson observations|
||quality of education at the school||
|Educational Outcomes|could decline which will have an|Internal Quality Assurance|
||impact on rating, student numbers,||
||staff retention and finances.|External Quality Assurance|
||Significant loss of reputation, censure|Behaviour Monitoring|
|Behaviour and Attendance|from regulators such as deemed to be
requiring special measures due to failing
to give its pupils an acceptable standard|Attendance Monitoring|
||of education.||
|||EHCP Mid-term reviews|
||Disabled pupils and/or those with special|Qualified SENDCO|
||educational needs and/or those for||
|SEND Delivery|whom the pupil premium provides|SEND Local Offer on Website|
||support, are under achieving.|SENDCO Governor|
|||Accessibility Plans|
||The school has insufficient or inadequate|Performance Management|
|HR|staffing to meet education expectations.||
|||Recruitment Planning|
||Reputation of school and/or its|Student recruitment|
|Reputation|relationship with local community||
||declines and this impacts PAN.|Communication with parents/local community|
20
## Governors’ Report
|Risk category|Description|Controls|
|---|---|---|
|Areas of the organisation that could be
exposed to a risk|What risks could occur in this area?|What internal controls you have in place to
mitigate this risk|
|||Compliance with the School Admissions Code and|
|||School Admission Appeals Code|
|||Entrance test contract|
|Admissions|Our schools should have appropriate
admission arrangements that comply
with regulatory responsibilities and|Appeals panel arrangements
(grammar schools)|
||align with our charity's mission|Invigilation|
||statement.||
|||Special arrangements panel|
|||Appeals presenting service contract|
|||(comprehensive schools)|
||Without new comprehensive schools in|Due diligence|
|Growth|the pipeline, we will not meet our
strategic objectives and fulfil our|Project plan|
||charity mission statement.|Pipeline of potential joiner schools|
|||Health and Safety Contract|
||The school estate is in a state of disrepair||
||which presents a health + safety risk to|LBCT Return|
||the staff, students and visitors. Insurance||
|Estates and Sustainability|provision is not adequate to protect the|Health and Safety Audit|
||organisational liability.||
|||Insurance|
|||Recruitment|
|||Training/ Knowledge/ Skills|
||The school either does not have
sufficient governance in place to|Engagement & Commitment|
|Governance|ensure its effective operation or|Succession Planning|
||suffers from a severe governance||
||failure.|Conflicts of Interest|
|||Clerks Recruitment|
|||Clerks Training/ Knowledge/ Skills|
|||Have Offline Back-Ups|
||Without cyber protections schools are at||
|Cyber Security|risk of attack with could have financial,
regulatory consequences and disruption
to teaching.|Undertake NCSC Cyber Security Training
Register with Police Cyber Alarm|
|||Cyber Response Plan|
21
## Governors’ Report
|Risk category|Description|Controls|
|---|---|---|
|Areas of the organisation that could
be exposed to a risk|What risks could occur in this area?|What internal controls you have in place to mitigate
this risk|
|||Segregation of duties|
|||Access controls|
|||Approval and authorisation|
|||Physical Controls|
|||Record Keeping|
|||Reconciliation|
||The school does not have sufficient||
|Finance|funds to maintain staffing and
education standards, if not resolved|Independent audits|
||could result in debt and bankruptcy.|Compliance|
|||Treasury and Endowment Management|
|||Financial Reporting|
|||Budgeting|
|||Asset Management|
|||Procurement controls|
|||Daily Back-ups|
|||Disaster Recovery Plan|
||The IT arrangements in a school are
not robust and expose the|Physical Network|
|Digital and Technology|organisation to potential failures|Wi-Fi & Servers|
||which could have a detriment on||
||educational outcomes.|Third Party System Support|
|||Governor IT Provision|
22
Governors’ Report
## **Reserves Policy**
Governors recognise that the Foundation’s endowment cannot be regarded as entirely free funds given the degree of dependence upon the income from it. Governors seek to maximise the return from this endowment within the context of acceptable risk to capital and apply a total return approach in the strategic management of the investment portfolio.
The Governors will endeavour to generate a sufficient level of total return from the Endowment to enable its capital value to be maintained in real terms in perpetuity and a growing level of annual expenditure to be distributed to support the charitable objectives in the year of receipt or subsequently. For the purposes of assessing whether the Foundation is meeting its objectives, performance over the six year period of the existing strategic plan (2021/22 to 2026/27 is the primary focus. When the investment objective is exceeded, Governors balance the desirability and value of immediate expenditure with the alternative of increasing the Endowment Fund and future long-term sustainable income. Where the investment objective is not met, Governors will seek to reduce expenditure. However, they seldom envisage spending the capital endowment fund and will do so only in exceptional circumstances.
As stated above, the Foundation policy is to generate sufficient income to provide support for the Foundation and its constituent schools in accordance with the Foundation strategic plan whilst maintaining the real value of the capital endowment fund for the long term. Governors recognise that over the short to medium term, as the Foundation delivers its strategic objectives on widening accessibility and continues to focus on reducing the defined benefit pension scheme deficit, additional financial resources will be required. Hence until the end of the financial year 2025/26 the spend rate has been set at a level above the best estimate of the long term sustainable spend rate.
The Foundation has set a target for annual expenditure to be no more than 3.5% of the value of the endowment with the current level of expenditure hitting this target. The Board has agreed to exceed this over the next few years in order to support the delivery of the Foundation Strategy and the five-year financial forecast shows a positive direction of travel, with the 3.5% target being achieved by the end of the five-year forecasting period. The Governors calculate that the free reserves available to the Foundation, comprising the Unrestricted Funds and the Endowment Fund – Capital, amount to £173,528,661 (2023: £163,363,885, although in practice the Endowment Fund - Capital is managed as if it is a Permanently Endowed Fund with all spending from the Fund carefully considered. The amount of funding that could be realised by disposing of tangible fixed assets is £28,544,120 (2023: £28,633,764.
It is possible that in the short term, as withdrawals are made from capital, the value of the property and listed investment portfolio will not keep pace with inflation. The amount of funds that are held by the Foundation which are restricted and not available for the general purposes of the charity are those funds held within the Permanent and Expendable Endowment Fund and the Restricted Fund of £13,403,012 (2023: £12,623,815.
23
Governors’ Report
## **Going Concern**
The Governors assess whether the use of the going concern basis for preparing the financial statements is appropriate and whether there are any material uncertainties relating to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern.
The Governors have considered the principal risks and uncertainties facing the Charity (for example, whether the economic climate particularly during the current cost of living crisis, has affected the ability of some parents to pay School fees which, alongside the value of the Foundation’s endowment and the income derived from it, is an important factor in long term financial planning). The management team also carefully monitor the level of scholarships and bursaries to ensure that the grant commitments are maintained at a sustainable level.
The Governors believe that the preparation of these accounts under the going concern basis remains appropriate, and they have made this assessment in respect of a period of one year from the date of approval of the financial statements.
## Investment Powers and Policy
Investment Powers are governed by the 1900 Act as amended by the Scheme of 2012 and the Trustee Act 2000. The investments comprise the property portfolio and narrow and wide range quoted investments.
The policy of the Foundation is to manage the Foundation assets in accordance with statutory constraints, with a view to achieving an income that will allow it to further its educational objectives immediately, whilst at the same time bearing in mind that the assets must be invested in such a manner that they produce appropriate future income. The Foundation has delegated the day-to-day management of the listed investment portfolio to Barclays Wealth.
The investments have continued to be managed in line with the Governors’ policy and instructions. Portfolio performance is measured regularly against a custom benchmark, comprising an appropriate market index selected for each asset class as agreed between the Investment Managers and the Governors. The overall total return performance achieved on the main portfolio for the year to 31 August 2024 was 14.54% (2023: 3.11%) net of fees, against a composite benchmark of 13.43%.
## Ethical Investment Policy
The Foundation’s overarching responsibility is to maximise its returns on investments in order to pursue its charitable objectives. Specific investments are made in properties and listed investments in accordance with an overall strategic investment asset allocation policy approved by the Investment Committee. This Committee regularly reviews the investments and engages in pragmatic dialogue with the Foundation’s Investment Manager and Property Advisor about any areas of ethical concern which they have identified.
The Foundation will, after a full evaluation of the known facts, consider disinvesting or refraining from investing in specific securities, assets or businesses that are associated with activities perceived to be unethical. The Foundation believes that this ethical investment policy will not result in any significant financial detriment, with the balance of all impartial research indicating that an ethical investment policy neither adds to nor detracts from investment performance.
## Auditors
## Crowe U.K. LLP are the external auditors for the 2023/24 financial year.
The Governors are not aware of any relevant audit information of which the auditors are unaware. The Governors have taken all steps they consider necessary to make themselves aware of any relevant information and to establish that the auditors are aware of that information.
24
## Future Plans
In order to meet their aims and objectives, Governors have planned the following activities:
- Governors will continue to keep a close watch on the financial and property markets and wider economic climate to ensure that they maximise opportunities for growth of the current portfolios and income, whilst being aware of the potential long-term headwinds which may result from the volatility of the external environment, including the global recovery from the pandemic, the war in Ukraine and the impact of continued levels of high inflation.
- A long-term masterplan to develop the Edgbaston campus was completed in 2024 and will be considered alongside the educational vision for the two independent schools towards the KES 500-year anniversary in 2052.
- Governors will continue to work with the Trustees of the Academy Trust to increase the number of children in Birmingham that can benefit from an education supported by the Foundation. An overarching principle will be that such growth is manageable and targeted at more disadvantaged areas of the city. King Edward VI Kings Norton School for Boys formally joined the Academy Trust, and the Foundation in early 2024 and conversations are ongoing with the Heads of other comprehensive schools that have expressed an initial interest in joining the Academy Trust and Foundation.
- There will be further development and implementation of an approach to school improvement that can harness the best talent already working in our schools, as well as partnering with other schools, Multi Academy Trusts, Charities, and stakeholders. To enable this, we created an Educational Support and Growth team in 2019/20 and developed a Foundation strategy in 2021 centred around learning with us, working with us and partnering with us. In April 2022 a new Director of Education took up post and has continued to extend our programme of school improvement and collaborative activities to benefit staff and students across and beyond the Foundation’s schools. A particular focus will continue to be placed on remote and blended learning utilising technology, supporting disadvantaged pupils, and engaging in meaningful ‘catch up’ initiatives to counteract the impacts of lost learning during the Covid 19 pandemic.
- Continued implementation of an HR strategy will improve the recruitment, development, deployment, and retention of staff across our schools. This will be supported by a new integrated HR and Payroll system that will reduce the level of manual processing and enhance efficiency as new schools join.
- Having effective governance structures has been identified as a priority. The creation of the Academy Trust led to a proliferation of committees and meetings, with many Governors expected to serve on multiple overlapping committees. In September 2022 we adopted a new structure that streamlines our governance whilst simultaneously providing more strategic oversight of our legal entities and schools. This has been enormously successful and will continue to be evaluated and evolved where necessary.
- In order to continue to develop and improve our support services, we will focus in particular on developing and implementing a unified digital strategy, creating an enhanced estates function, increasing our external relations capacity and capability and further developing and implementing our sustainability strategy and approaches to equality, diversity and inclusion.
25
Governors’ Report
## **King Edward’s School, Birmingham**
## **1. Aims and ethos**
King Edward’s School, Birmingham was founded in 1552 by King Edward VI and is one of the leading independent schools in t he UK. Based in Edgbaston, the school shares a 50- acre campus with King Edward VI High School for Girls, which provides extensive space and facilities matched by few day schools in t he country. King Edward’s School is a boys’ day school having around 900 pupils aged from 11 t o 18 in 2023/24. Most of our pupils join at age 11 and continue through until they are 18 bu t some join u s at other stages, including entering our Sixth Form.
## **School aims**
We aim to educate and inspire the cleverest boys in the region to take on t he challenges the world presents, to make a significant contribution to that world and, most of all, to enjoy doing so. We seek to achieve this through the three primary areas of school life.
## **Academic**
We develop the things that matter most: liveliness of mind, critical thinking, and humanity. These qualities manifest themselves in our pupils’ curiosity, their open-mindedness, their focus on interconnectivity, transfer of knowledge and understanding, and t heir boldness in t he pursuit of discovery. We provide them with the means, freedom and opportunities to feed these instincts.
## **Co-curriculum**
We understand that the most important lessons are not only learned in t he classroom. It is through the complementary co-curricular life of the school that we seek t o enable ou r pupils to become well-rounded, exceptional, thoughtful and caring young men who are ready both to make the most of the modern world and to make it better for us all. It is about building an awareness and appreciation of the world beyond ourselves.
## **Pastoral**
The lived experience of pupils at King Edward’s should provide them with a pastoral education that develops the attributes and attitudes to empower them to live balanced lives with meaning and purpose. We aim to shape pupils of sound character and strong personal resource, allowing them to approach life’s uncertainties with forethought and determination. We want pupils to be prepared to learn the value of looking outwards, providing them with opportunities to serve their school and local communities. The breadth of our pastoral education enables pupils to balance the intellectual, physical and emotional aspects of life to achieve a holistic wellness.
We were delighted to be shortlisted in t he Boys’ School category in the Independent School of the Year Awards, a fitting acknowledgment of our staff's commitment to bringing all p arts of school life together to offer an outstanding educational experience for our pupils. The winners will be announced in t he autumn term of 2024/25.
26
Governors’ Report
## **2. Review of activities**
## **Academic activities and results**
School for Thought, a ground-breaking initiative that reimagines the role of Religion and Philosophy in our curriculum, entered its second year following a successful inaugural year. It serves as t he intellectual core of our Lower School curriculum, fostering, critical integrative thinking, and equips pupils with the skills to think critically, imaginatively, and ethically about our complex world.
## **International Baccalaureate (IB) Diploma results 2024**
With an average IB Diploma score of 36.7 points, which is m ore than six points higher than the global average of 30.32, our pupils demonstrated solid academic performance.
Two pupils achieved the maximum score of 45 points, a feat accomplished by less than 0.5% of pupils worldwide. In addition, five pupils scored 44 points, and twelve pupils scored 43 points.
Scores of 40 points or above w ere attained by 30% of the cohort.
## **GCSE results 2024**
Our pupils once again achieved excellent GCSE results.
Top grades achieved by Fifth form pupils were all above those recorded in 2019.
Of the cohort of 132 pupils, 95% took at least 10 GCSEs. Thirteen pupils achieved at least ten straight 9s of whom three achieved eleven straight 9s across their GCSEs.
27
Governors’ Report
## **Assisted Places**
King Edward’s School aims to provide education for able boys, regardless of the financial circumstances of their families. Funding for Assisted Places is provided thanks to a substantial grant from the Governors of the King Edward VI Foundation and generous donations from Old Edwardians.
An Assisted Place is awarded on academic merit based on the school’s own entrance examination at 11+ and academic interview at 16+. Assisted Places are means-tested, based on family income and assets.
A three-week telethon delivered by current pupils during the summer holidays of 2024 raised m ore than £100,000, p lus £30,000 in pledges, for Assisted Places, from around 200 donors.
## **Co-curricular activities**
Part of what gives King Edward’s School its unique character is the exciting and diverse range of co-curricular opportunities on offer. We strive to have the widest range of activities so t hat every pupil can find at least one thing that enlivens and enriches his life.
## _**Sport**_
Among our sporting accolades for 2023/24, we were once again named in The Cricketer’s top 100 senior schools for cricket, our under-14 badminton team and under-14 squash team were runners-up in their respective national finals, and our under-13 and under-18 water polo teams made the national finals.
## _**Performing Arts**_
We delivered a full programme of concerts, recitals, performances and large-scale productions in conjunction with KEHS, including our biennial concert at Birmingham Symphony Hall, which featured Symphony Orchestra performing Stravinsky’s The Rite of Spring, our annual Junior Production (Little Women), and Senior Production (A Midsummer Night’s Dream).
## _**Clubs and societies**_
Clubs and societies are an integral part of school life. With around 50 t o choose from, there is an opportunity for everyone and an increasing number are run jointly with KEHS. Among the year’s highlights was our Intermediate School’s Challenge Team being runners-up in the national final.
## _**Friday afternoon activities**_
Friday afternoons are entirely set aside f or such activities as the Combined Cadet Force (CCF), the Leadership programme and a wide range of Service and Partnership activities such as music and sports coaching and visits to primary schools, care homes, hospitals, animal sanctuaries and organisations supporting refugees.
## _**Trips**_
The variety of trips on offer at the school are an important part of our co-curricular life and contribute enormously – to the school's appeal and reputation. We delivered a full programme of trips – around 140 in total during 2023/24, many of which were in the UK but also including an overseas cricket tour to Barbados, a joint KES/KEHS German trip to the Rhineland, an outdoor activities week in the South of France, a ski t rip to Canada and the everpopular Lapland trip.
Also during the year, we were delighted to unveil our Burne-Jones stained glass window, generously gifted to the school by two Old Edwardians, which serves to celebrate one of our most prominent former pupils and w ill inspire responses by current and future generations of pupils. We also supported the work of media organisations covering the story of the 6888th Battalion which was stationed at KES during the Second World War.
28
Governors’ Report
## **3. Partnerships and Participation**
Our Partnerships and Participation programme supports primary school teachers in raising aspirations, offering free activities and access to our facilities to complement and ext end what children are doing in school. The 2023/24 programme culminated in t he annual Summer School, delivered in conjunction with KEHS, which saw nearly 90 Year 4 pupils from local primary schools –predominantly those working at greater depth, with a focus on t hose who are disadvantaged –taking part in three days of enrichment activities, including geography, ceramics, creative writing, Mandarin and science.
In addition to our work with primary schools, w e also collaborate with other schools in t he King Edward VI Foundation, Birmingham. With KEHS, we continued to support King Edward VI Balaam Wood Academy through Enquiring Minds -a specially-developed programme for extension and enrichment activities for its pupils, and w e also host ed several Foundation-wide pupil events including the first Year 9 Summer School, which was attended by 140 pupils and aimed to raise aspirations around higher education, a Model United Nations Conference, US universities event, African and Caribbean Society (ACS) Conference, a talk on Berlin by author, broadcaster and commentator John Kampfner and the first KES v Foundation cricket match. Some of our Year 9 pupils were among nearly 100 from across the Foundation who participated in t he Qur’an in the City Study Day, held at KES/KEHS as p art of the University of Birmingham’s Culture Forward programme, and we were also delighted to attend one of five Foundation Ceremonies for all new Year 7s, joining with the new intakes from King Edward VI Handsworth School for Girls, King Edward VI Handsworth Wood Girls’ Academy and King Edward VI Handsworth Grammar School for Boys.
Several of our staff were Highly Commended in various categories at the first Foundation Awards, with the Values Award: Accessibility category being w on by a KES teacher in recognition of her work with the joint KES/ KEHS ACS and t he Community Spirit Award being won by a staff member in recognition of his work delivering music partnerships with local primary schools. W e also participated in t he first Foundation-wide staff training day and m embers of our Leadership Team attended a net working event with other leaders from across the Foundation.
29
Governors’ Report
## **4.The Future**
Following last year’s announcement of the first fused Chief Master & Principal role and restructured Leadership Teams for KES and KEHS, to take effect from September 2024, much preparatory work has been undertaken.
A series of strategic reviews also began across both KES and KEHS during the summer term. The first reviews were around four parts of school life that relate to the earliest phase of our pupils’ experience with us: from admissions; through the settling-in process of induction; to the Lower School curriculum they study; and around school culture, which underpins everything we do and contributes hugely to how our pupils thrive. Potential developments that flow from these reviews will be considered in the next phase of our strategic review, which will take shape in the autumn term of 2024/25, when a review of Sixth F orm curriculum will also be undertaken.
We will continue to monitor developments around the VAT to be applied to independent school fees and champion KES, KEHS and the wider sector.
Work on the Masterplan project continued throughout the year, and we look forward to exploring the various options it has identified.
30
Governors’ Report
## **King Edward VI High School for Girls**
## **1. Aims and ethos**
King Edward VI High School for Girls was founded in 1883 and is today a wonderful blend of tradition and innovation. It is one of the leading independent schools in t he UK and shares it s 50-acre campus in Edgbaston with King Edward’s School. Its emphasis on liberal learning, established when it was founded, continues through a broad and balanced academic curriculum, which promotes intellectual freedom and discovery coupled with a wide range of co-curricular activities, all delivered in a supportive and nurturing environment. KEHS is a girls’ day school having around 660 pupils aged from 11 t o 18 in 2023/24. Most of our pupils join at age 11 and continue through until they are 18 bu t some join u s at other stages, including entering our Sixth Form.
## **School aims**
KEHS is a school synonymous with intellectual ambition. With a mission to offer an unrivalled education to the brightest girls in the West Midlands, irrespective of their social or economic background, KEHS is a leading voice in t he educational life of the UK.
We aim:
- To impart the joy of learning and enquiry together with intellectual courage, with the resilience and adaptability requisite for this
- To develop integrity, resolve, self-knowledge, compassion, and respect for others
To inspire the confidence and purpose to make a difference to our community and beyond.
## To realise these aims:
- We provide outstanding teaching through a forward-looking and challenging curriculum and a culture of scholarship, going beyond the confines of the exam specifications, and making connections across disciplines
- We provide proactive pastoral support which promotes the development of balanced, self-reflective and assertive pupils with a strong moral compass
- We offer an education rich in extra-curricular opportunities, which develop leadership and wider skills, as well as character and perspective
- We provide high-quality training for staff to ensure ongoing professional and institutional development, building on a long tradition of our staff nourishing the intellectual life of the school through their own interests
- We offer means-tested Assisted Places and help those outside the school with a strong outreach and community service programme.
We marked our 140th anniversary on 18 September 2023, with special guest speaker Joanne Johnson (OE 1995, a geologist for the British Antarctic Survey, and a celebratory festival for current pupils. Our anniversary celebrations, which began during the 2022/23 school year, concluded with a lecture for the whole school community entitled “Equality: What is it? Where is it? Can w e have it? And do we want it?” delivered by Dr Rosalind Miles (OE 1960, historian, critic, novelist, journalist, broadcaster, traveller, lecturer, magistrate and social activist. Our 140th Anniversary Assisted Places Appeal drew to a c lose, having raised £145,885.
We were inspected by the Independent Schools Inspectorate (ISI during the autumn term, receiving a glowing report across all areas of school life and which identified our co-curricular programme as a “ significant strength”. The ISI rarely designates a significant strength and so all p arts of the school community were rightly proud of this achievement.
We were also thrilled to receive the news that KEHS had been short listed in t he Girls’ School category in the Independent School of the Year Awards, a fitting acknowledgment of our staff's commitment to providing an outstanding educational experience for our pupils. The winners will be announced in t he autumn term of 31 2024/25.
Governors’ Report
## **2. Review of activities**
The Sunday Times once again named KEHS the top independent secondary school for academic performance in the West Midlands, and the 10th nationally. Our Athena programme, which promotes curiosity and independent study, continued to flourish in its third year. We were delighted to launch A Level Politics and to enter the second year of our provision of GCSE Computer Science and GCSE DT.
## **GCSE results 2024**
Pupils at KEHS continued to demonstrate exceptional academic performance, with remarkable GCSE results across a diverse, and broadening, range of subjects. In 2024, the proportion of results at grade 9 reached 60% for the first time.
Of the total cohort of 95 pupils, 85 pupils (89%) took 10 GCSEs. Fifteen pupils achieved 10 straight grade 9s.
## **A Levels**
Upper Sixth pupils at KEHS celebrated a stellar set of A Level results with individual stories of academic and co-curricular success being prominent among the achievements of this year’s cohort.
Of the Upper Sixth cohort of 100 pupils, 11 achieved straight A*s.
Reflecting the breadth of pupils’ intellectual curiosity, a quarter of the cohort took four or more A Levels and a third took the Level 3 Extended Project Qualification, an independent research project which extends and develops pupils’ abilities beyond the traditional A Level syllabus.
32
Governors’ Report
## **Assisted Places**
King Edward VI High School for Girls aims to offer an exceptional education to the brightest girls in the Birmingham area, irrespective of their parents’ ability to pay fees. Funding for Assisted Places is provided thanks to a substantial grant from the Governors of the King Edward VI Foundation and generous donations from Old Edwardians.
An Assisted Place is awarded on ac ademic merit based on t he school’s own entrance examination at 11+ and academic interview at 16+. Assist ed Places are means-tested, based on family income and assets.
In addition to the £145,885 f or Assisted Places raised throughout the calendar year of 2023 t o mark our 140th anniversary, a three-week telethon delivered by current pupils during the summer holidays of 2024 raised more than £45,000, plus £17,000 in pledges, for Assisted Places, from around 150 donors.
## **Co-curricular activities**
At KEHS, we believe c o-curricular activities are vital in developing rounded, balanced pupils who enrich the life of the school as w ell as fulfilling their academic potential. We offer more than 70 clubs and societies per week for girls to sample exciting experiences.
The wide variety of trips on offer –around 100 each year –is an important part of school life and contributes enormously to our appeal and reputation. Many of our 2023/24 t rips were in the UK but they also included a joint KEHS/KES German trip to the Rhineland, a Spanish trip to Barcelona and a ski trip to the Italian Alps.
In Sport, we continued to offer world-class coaching and outstanding facilities across multiple sports, with all abilities catered for including students on national development pathways. More than 300 pupils represented the school in a total of 280 fixtures, we reached five national finals in three different sports and hosted another successful dance production. We were thrilled to open our indoor cricket nets, which had a tremendous impact on our cricketing success, including our under-13 team finishing joint third on points at the ECB Indoor National Finals, and with our first hardball matches played on our sports field at the front of school.
In the Performing Arts, we delivered a full programme of concerts, recitals, performances and large-scale productions in conjunction with KES, including our biennial concert at Birmingham Symphony Hall, which featured Symphony Orchestra performing Stravinsky’s The Rite of Spring, our annual Junior Production (Little Women), and Senior Production (A Midsummer Night’s Dream).
Charitable and service activities included the re-energising of our service programme as Care.Do.Give.
33
Governors’ Report
## **3. Partnerships and Participation**
Our Partnerships and Participation programme supports primary school teachers in raising aspirations, offering free activities and access to our facilities to complement and ext end what children are doing in school. The 2023/24 programme culminated in t he annual Summer School, delivered in conjunction with KES, which saw nearly 90 Year 4 pupils from local primary schools–p redominantly those working at greater depth, with a focus on t hose who are disadvantaged –taking part in three days of enrichment activities, including geography, ceramics, creative writing, Mandarin and science.
In addition to our work with primary schools, w e also collaborate with other schools in t he King Edward VI Foundation, Birmingham. W ith KES, we continued to support King Edward VI Balaam Wood Academy through Enquiring Minds -a specially-developed programme for extension and enrichment activities for its pupils, and we also host ed several Foundation-wide events including the first Year 9 Summer School, which was attended by 140 pupils and aimed to raise aspirations around higher education, an Enterprise Day, Philosothon and African and Caribbean Society (ACS) Conference. Some of our Year 9 pupils were among nearly 100 from across the Foundation who participated in t he Qur’an in the City Study Day, held at KES/KEHS as p art of the University of Birmingham’s Culture Forward programme, and w e were also delighted to host one of five Foundation Ceremonies for all new Year 7s, welcoming the new intake from King Edward VI Lordswood School for Girls as well as our own.
Several of our staff were Highly Commended in various categories at the first Foundation Awards, and the Values Award: Accessibility was presented to a K ES teacher in recognition of her work with the joint KEHS/KES ACS. W e also participated in t he first Foundation-wide staff training day and m embers of our Leadership Team attended a net working event with other leaders from across the Foundation.
34
Governors’ Report
## **4.The Future**
Following last year’s announcement of the first fused Chief Master & Principal role and restructured Leadership Teams for KEHS and K ES, to take effect from September 2024, much preparatory work has been undertaken.
A series of strategic reviews also began across both KEHS and K ES during the summer term. The first reviews were around four parts of school life that relate to the earliest phase of our pupils’ experience with us: from admissions; through the settling-in process of induction; to the Lower School curriculum they study; and around school culture, which underpins everything we do and contributes hugely to how our pupils thrive. Potential developments that flow from these reviews will be considered in the next phase of our strategic review, which will take shape in t he autumn term of 2024/25, when a review of Sixth Form curricul um will also be undertaken.
We will continue to monitor developments around the VAT to be applied to independent school fees and champion KES, KEHS and the wider sector.
Work on the Masterplan project continued throughout the year, and w e look forward to exploring the various options it has identified.
35
Statement of Governors' Responsibilities
The Governors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Charity law requires the Governors to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under Charity Law, the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.
In preparing these financial statements, the Governors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are 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.
Approved by the Board of Governors on 11th December 2024, and signed on 6th February 2025 on its behalf by:
Prof H Thomas Chair
Mr B Matthews Bailiff
36
Independent Auditor's Report to the Governors
## Opinion
We have audited the financial statements of The Schools of King Edward VI in Birmingham (the 'charity') for the year ended 31 August 2024 which comprise the Statement of financial activities, the Balance sheet, the 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:
- give a true and fair view of the state of the charity's affairs as at 31 August 2024 and of its incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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 charity 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 Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 Trustees with respect to going concern are described in the relevant sections of this report.
37
Independent Auditor's Report to the Governors
## 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 Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
## We have nothing to report in this regard.
## 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:
- the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## Responsibilities of trustees
As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 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.
38
Independent Auditor's Report to the Governors
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 identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within 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 and 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 non-compliance 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.
## Use of our report
This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.
Crowe U.K. LLP Statutory Auditor Black Country House Rounds Green Road Oldbury West Midlands B69 2DG
Date: 10 February 2025
Crowe U.K. LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
39
## Statement of Financial Activities For the year ended 31 August 2024
|Note
6
7
8
9
10
11
25
30
Income and endowments from:
Donations and legacies
Charita ble activities:
Fees receivable
Ancillary trading income
Non-ancillary trading activities
Investment income
Other income
Total income and endowments
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net expenditure before net gains on
investments
Net gains on investments
Net (expenditure)/income
Transfers between funds
Net movement in funds before other
recognised gains/(losses)
Other recognised gains/(losses):
Actuarial (losses)/gains on defined
benefit pension schemes
Net movement in funds
4
5|Unrestricted
funds
2024
£
25,000
22,502,754
2,792,004
243,102
3,592,614
1,111,806
30,267,280
525,888
30,653,116
31,179,004
(911,724)
-
(911,724)
(463,368)
(1,375,092)
(124,000)
(1,499,092)|Restricted
funds
2024
£
791,370
-
-
-
32,299
-
823,669
8,940
844,112
853,052
(29,383)
262,256
232,873
(219,647)
13,226
-
13,226|Endowment
funds
2024
£
150
-
-
-
46,041
-
46,191
191,756
1,190,003
1,381,759
(1,335,568)
13,082,386
11,746,818
683,015
12,429,833
-
12,429,833|Total
funds
2024
£
816,520
22,502,754
2,792,004
243,102
3,670,954
1,111,806
31,137,140
726,584
32,687,231
33,413,815
(2,276,675)
13,344,642
11,067,967
-
11,067,967
(124,000)
10,943,967|_Total_
_funds_
_2023_
_£_
_250_
_20,378,757_
_2,689,955_
_219,083_
_3,687,583_
_1,183,916_|
|---|---|---|---|---|---|
||||||_28,159,544_|
||||||_704,698_
_29,487,495_|
||||||_30,192,193_|
||||||_(2,032,649)_
_1,700,988_|
||||||_(331,661)_
_-_|
||||||_(331,661)_
_78,000_|
||||||_(253,661)_|
40
Statement of Financial Activities For the year ended 31 August 2024
|Note
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward|Unrestricted
funds
2024
£
5,115,547
(1,499,092)
3,616,455|Restricted
funds
2024
£
2,235,603
13,226
2,248,829|Endowment
funds
2024
£
168,636,550
12,429,833
181,066,383|Total
funds
2024
£
175,987,700
10,943,967
186,931,667|_Total_
_funds_
_2023_
_£_
_176,241,361_
_(253,661)_|
|---|---|---|---|---|---|
||||||_175,987,700_|
The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 44 to 78 form part of these financial statements.
41
Balance Sheet as at 31 August 2024
|2024
Note
£
15
222,082
16
28,544,120
17
51,327,980
18
108,669,330
188,763,512
19
1,013,159
_1,374,109_
-
_864,034_
4,745,587
_5,537,473_
5,758,746
_7,775,616_
20
(4,427,450)
_(4,445,091)_
1,331,296
190,094,808
21
(1,055,141)
189,039,667
30
(2,108,000)
Fixed assets
Intangible assets
Tangible assets
Investment property
Investments
Current assets
Debtors
Short term deposits
Cash at bank and in hand
Creditors: amounts falling due within one year
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
Net assets excluding pension liability
Defined benefit pension scheme liability
186,931,667
25
181,066,383
25
2,248,829
25
5,724,455
_7,469,547_
25
(2,108,000)
_(2,354,000)_
25
Total net assets
Charity funds
Endowment funds
Restricted funds
Unrestricted funds
Unrestricted funds excluding pension asset
Pension reserve
Total unrestricted funds
3,616,455
Total funds
186,931,667
The financial statements were approved on 11th December 2024 and signed on their behalf by:
Professor H Thomas
Chair
Mr B Matthews
Bailiff
Date: 6th February 2025|_2023_
_£_
_346,700_
_28,633,764_
_50,726,020_
_96,367,337_|
|---|---|
||_176,073,821_
_3,330,525_|
||_179,404,346_
_(1,062,646)_|
||_178,341,700_
_(2,354,000)_|
|||
||_175,987,700_|
||_168,636,550_
_2,235,603_
_5,115,547_|
|||
||_175,987,700_|
|||
The notes on pages 44 to 78 form part of these financial statements.
42
Statement of Cash Flows For the year ended 31 August 2024
|**Note**
26
27
**Cash flows from operating activities**
Net cash used in operating activities
**Cash flows from investing activities**
Interest received
Rent received from investment properties
Proceeds from the sale of investment properties
Proceeds from the sale of investments in shares
Purchase of investments in shares
Purchase of tangible fixed assets
Purchase of investment properties
Movement in cash awaiting investment in shares
**Net cash provided by/(used in) investing 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**
The notes on pages 44 to 78 form part of these financial statements|**2024**
**£**
**(3,209,271)**
**98,444**
**2,022,131**
**-**
**27,727,898**
**(27,173,869)**
**(1,008,197)**
**(113,055)**
**-**
**1,553,352**
**(1,655,919)**
**6,401,506**
**4,745,587**|_2023_
_£_
_(3,394,653)_|
|---|---|---|
|||_97,958_
_2,068,512_
_871,410_
_21,615,966_
_(22,337,810)_
_(1,666,214)_
_(2,236,773)_
_(256,238)_|
|||**(1,843,189)**|
|||**(5,237,842)**
_11,639,348_|
||||
|||_6,401,507_|
||||
43
Notes to the Financial Statements For the year ended 31 August 2024
## 1. General information
The Schools of King Edward VI in Birmingham (the "Foundation") is a charitable trust, registered in England and Wales and its Charity registration number is 529051. The registered office and principal place of business is Foundation Office, Edgbaston Park Road, Birmingham, B15 2UD. Its principal activity is the provision of schooling.
## 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.
The Schools of King Edward VI in Birmingham 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.
## 2.2 Going concern
The Governors assess whether the use of the going concern basis for preparing the financial statements is appropriate and whether there are any material uncertainties relating to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Governors have made this assessment in respect of a period of one year from the date of approval of the financial statements.
The Foundation has updated the budgets and the forecasts have been stress tested to assess how the Schools could cope under different scenarios. The Governors have concluded that the Foundation is well placed to cope with the continuing uncertainties and has adequate resources to continue providing educational excellence to its pupils for the foreseeable future.
## 2.3 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
## Fees and Similar Income
Fees receivable and charges for the use of premises and facilities are accounted for in the year in which the service is provided. Fees receivable are stated after deducting bursaries, scholarships and other remissions allowed by the Schools. Provisions are made for fees that are considered difficult to recover.
44
Notes to the Financial Statements For the year ended 31 August 2024
## 2. Accounting policies (continued)
## 2.3 Income (continued)
Rents and Letting income
Rental and Letting income is recognised as received or receivable in respect of the financial year.
## Lease Incentives
Lease incentives, such as up-front cash payments, received from the lessee are treated as deferred income and are released on a straight line basis over the life of the lease.
## Sales of interest in land
Sales of interests in land are recognised as income in the year of receipt and credited to the Endowment Fund – Capital. The receipts are amortised over the length of the lease and transfers made to the Endowment Fund – Income.
## Investment Income
Income, in the form of fixed interest and equity dividends, is earned from investments held during the year, and recognised when receivable.
## Donations and legacies
Donations and legacies are accounted for on a receivable basis when receipt is probable and the amount can be reliably measured.
## 2.4 Expenditure
Liabilities are recognised when either a constructive or legal obligation exists. Expenditure is accounted for on an accruals basis. The irrecoverable element of VAT is included within the item of expense to which it relates.
## Raising funds
The cost of generating funds consists of management costs and certain legal fees.
## Grant making
Grant making costs shown on the Statement of Financial Activities include the costs associated with the activity and the support costs of the Foundation Office and are charged to the Endowment -Income Fund.
The Foundation provides annual grants to the two Independent Schools from the Endowment Fund – Income and small annual widening accessibility grants to all Academies where sufficient funds are available.
Grants awarded to the Independent Schools are shown as a transfer from the Endowment – Income Fund to the School’s Fund on the Statement of Financial Activities.
Costs of the Foundation Office (both governance and grant making) are not allocated to any other fund.
## 2.5 Intangible assets and amortisation
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on
45
Notes to the Financial Statements For the year ended 31 August 2024
## 2. Accounting policies (continued)
## 2.5 Intangible assets and amortisation (continued)
a straight-line basis over its expected useful life and charged to the Capital endowment fund.
The intangible assets is software related to the new finance system (PS Financials Cloud software) and the new payroll system (iTrent) which is expected to be in use for at least five years.
## 2.6 Tangible fixed assets and depreciation
Tangible fixed assets costing £20,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition are included in the measurement of cost.
Assets in the course of construction are included at costs incurred to date. Depreciation on these assets is not charged until they are brought into use.
At each reporting date the Charity assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method. Freehold land is not depreciated.
Depreciation is provided on the following bases:
|Buildings - new|- 50 years|
|---|---|
|Buildings - refurbished|- 10 years|
|Leasehold property|- length of lease|
|Plant and equipment|- 10 years|
|Motor vehicles|- 5 years|
|IT equipment|- 3 years|
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of financial activities.
Historic assets have been excluded from the balance sheet as reliable cost information is not available and the historic cost is not believed to be material to the accounts.
46
Notes to the Financial Statements For the year ended 31 August 2024
2. Accounting policies (continued)
## **2.7 Investments**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.
Investments held as fixed assets are shown at cost less provision for impairment.
Investment properties are initially measured at cost and subsequently measured at fair value. The investment properties are valued every year in line with the Royal Institution of Chartered Surveyors Red Book guidance. An annual asset valuation is carried out on an annual basis.
No depreciation is charged on investment properties.
## **2.8 Financial instruments**
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
## Debtors
Fees and other debtors which are receivable within one year are initially recognised at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.
Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## Creditors
Trade creditors and other liabilities payable within one year are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.
## 2.9 Operating leases
Rentals paid under operating leases are charged to the Statement of financial activities on a straight-line basis over the lease term.
Rental income received is recognised in the Statement of financial activities on a straight-line basis over the lease term.
47
Notes to the Financial Statements For the year ended 31 August 2024
## 2. Accounting policies (continued)
## 2.10 Pensions
Teaching staff are eligible to join the Teachers’ Pension Scheme administered by the Department for Education. Eligible non-teaching staff may join the Defined Contribution Scheme. Contributions to the Teachers’ Pension Scheme and the Defined Contribution Scheme are charged to the Statement of Financial Activities in the year they become payable.
## Teachers’ Pension Scheme (TPS)
The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over teachers’ working lives, in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a projected unit method. The TPS is a multi-employer scheme but there is insufficient information available to use defined benefit accounting, it is therefore treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which they relate. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.
Governors’ Defined Benefit scheme
The Governors’ Defined Benefit Pension Scheme, which was closed to new members in 2010, is valued every three years by a professionally qualified independent actuary, who determines the rates of contribution payable. The pension charge in the accounts represents the regular charge adjusted by amortisation of the pension scheme surplus or deficit.
The net gain/loss on the net defined benefit liability is recognised in the Statement of Financial Activities. The difference between the scheme liabilities and the scheme assets is recognised in the unrestricted fund.
## 2.11 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. The general fund includes the surpluses arising from the activities of the two Schools.
Designated funds comprise unrestricted funds that have been set aside by the Trustees 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 Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
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.
48
Notes to the Financial Statements For the year ended 31 August 2024
## 3. Critical accounting estimates and areas of judgement
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
## **Critical accounting estimates and assumptions**
The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
We have sought advice in relation to group consolidation with the Academy Trust and concluded that consolidation is not appropriate or required due to legal and governance structures currently in place.
## Defined benefit pension scheme
The present value of the Governors’ Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 30, will impact the carrying amount of the pension liability. Furthermore, a roll forward approach which projects results from the latest review performed at 31 August 2022 has been used by the actuary in valuing the pensions liability at 31 August 2024. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.
## Donated services
The Foundation has included an estimated value of the cost of services (as disclosed in note 11) donated to the King Edward VI Academies. The value of services received by the Academies should be the value of the price that the Academy estimates it would pay in the open market. As it is not practical to measure the value of the services using an open market (fair value basis), SORP 2015 permits donated services received to be measured on the basis of the cost of the gift to the Academy from the Foundation. The cost has therefore been calculated based on an individual estimate of time spent by Foundation staff providing services to the school allocated across the salary costs (including provision for pension and national insurance) but excluding any provision for overheads. Support costs at the Foundation have therefore been allocated between educational support and grant making.
## Investment property valuation
The investment property portfolio is externally valued once every year. Property valuations are derived from the rental income received on the land or property owned together with the length of the lease. Other property transactions, such as lease incentives are treated in accordance with the relevant accounting policy.
49
Notes to the Financial Statements For the year ended 31 August 2024
4. Income from donations and legacies
|Unrestricted
funds
2024
£
Donations
25,000
Total 2024
25,000
_Total 2023_
_100_
Income from fees receivable
Gross school fees (net of bad debts)
Less:
Governors' Assisted Places Scheme
Scholarships, remission & staff concessions|Restricted
funds
2024
£
791,370
791,370
_150_|Endowment
funds
2024
£
150
150
_-_|Total
funds
2024
£
816,520
816,520
_250_
2024
£
26,467,543
(2,591,996)
(1,372,793)
22,502,754|_Total_
_funds_
_2023_
_£_
_250_
_250_
_2023_
_£_
_24,012,817_
_(2,368,430)_
_(1,265,630)_
_20,378,757_|
|---|---|---|---|---|
5. Income from fees receivable
Scholarships, bursaries and other awards were made to 461 pupils _(2023: 485)_ . Within this means tested bursaries totalling £2,591,996 were paid to 253 pupils _(2023: £2,368,430 to 224 pupils)_ .
In 2024 and 2023 all fees receivable were unrestricted.
50
Notes to the Financial Statements For the year ended 31 August 2024
## **6. Income from ancillary trading income**
|Catering income
Extra-curricular activities
Registration fees
Other ancillary income
**Total 2024**
_Total 2023_
**7.**
**Income from non-ancillary trading**
Lettings
**Total 2024**
_Total 2023_|**Unrestricted**
**funds**
**2024**
**£**
1,102,987
1,369,278
51,845
267,894
2,792,004
_2,689,955_
**Unrestricted**
**funds**
**2024**
**£**
243,102
243,102
_219,083_|**Total**
**funds**
**2024**
**£**
**1,102,987**
**1,369,278**
**51,845**
**267,894**
**2,792,004**
_2,689,955_
**Total**
**funds**
**2024**
**£**
**243,102**
**243,102**
_219,083_|_Total_
_funds_
_2023_
_£_
_1,025,670_
_1,469,020_
_41,453_
_153,812_|
|---|---|---|---|
||||_2,689,955_|
||||_Total_
_funds_
_2023_
_£_
_219,083_|
||||_219,083_|
|||||
51
Notes to the Financial Statements For the year ended 31 August 2024
## 8. Investment income
|Rental income
Investment income
Bank and other interest
Total 2024
_Total 2023_|Unrestricted
funds
2024
£
2,022,026
1,485,620
84,968
3,592,614
_3,614,228_|Restricted
funds
2024
£
28,629
-
3,670
32,299
_20,417_|Endowment
funds
2024
£
105
36,130
9,806
46,041
_52,938_|Total
funds
2024
£
2,022,131
1,550,379
98,444
3,670,954
_3,687,583_|_Total_
_funds_
_2023_
_£_
_2,068,512_
_1,521,113_
_97,958_|
|---|---|---|---|---|---|
||||||_3,687,583_|
|||||||
9. Other incoming resources
|Other income
Total 2024
_Total 2023_|Unrestricted
funds
2024
£
1,111,806
1,111,806
_1,183,916_|Total
funds
2024
£
1,111,806
1,111,806
_1,183,916_|_Total_
_funds_
_2023_
_£_
_1,183,916_|
|---|---|---|---|
||||_1,183,916_|
|||||
52
Notes to the Financial Statements For the year ended 31 August 2024
## 10. Expenditure on raising funds
|Unrestricted
funds
2024
£
181,732
344,156
525,888
Investment management
Estate management
Total 2024
_Total 2023_
_535,487_
11.
Analysis of expenditure on charitable activities
Unrestricted
funds
2024
£
18,962,010
819,386
3,791,220
4,967,710
1,055,459
1,874
1,055,457
30,653,116
Summary by fund type
Teaching
Welfare
Premises
Support costs and governance
Donated services to Academies
Awards and prizes
Grant making
Total 2024
_Total 2023_
_28,392,503_|Unrestricted
funds
2024
£
181,732
344,156
525,888
_535,487_|Restricted
funds
2024
£
8,940
-
8,940
_-_
Restricted
funds
2024
£
-
-
-
--
-
844,112
-
844,112
_40,312_|Endowment
funds
2024
£
191,756
-
191,756
_169,211_
Endowment
funds
2024
£
-
1,172,269
-
17,734
-
1,190,003
_1,054,680_
-|Total
funds
2024
£
382,428
344,156
726,584
_704,698_
Total
2024
£
18,962,010
819,386
4,963,489
4,967,710
1,055,459
863,720
1,055,457
32,687,231
_29,487,495_|_Total_
_funds_
_2023_
_£_
_338,421_
_366,277_|
|---|---|---|---|---|---|
||||||_704,698_|
||||||_Total_
_2023_
_£_
_16,855,698_
_718,689_
_5,108,239_
_4,377,424_
_1,156,202_
_48,122_
_1,223,121_|
||Unrestricted
funds
2024
£
18,962,010
819,386
3,791,220
4,967,710
1,055,459
1,874
1,055,457
30,653,116
_28,392,503_|||||
||||||_29,487,495_|
|||||||
553
Notes to the Financial Statements For the year ended 31 August 2024
## 11. Analysis of expenditure on charitable activities (continued)
## Summary by expenditure type
|Teaching
Welfare
Premises
Support costs and governance
Donated services to Academies
Grants, awards and prizes
Grant making
Total 2024
_Total 2023_
12.
Auditor's remuneration|Staff costs
2024
£
13,228,007
707,591
1,258,288
5,203,143
1,055,459
-
-
21,452,488
_19,389,437_|Depreciation
2024
£
-
1,172,269
-
-
-
-
-
1,172,269
_1,052,067_|Other costs
2024
£
5,734,003
111,795
2,532,932
(235,433)
-
863,720
1,055,457
10,062,474
_9,045,991_|Total
2024
£
819,386
4,963,489
4,967,710
1,055,459
863,720
1,055,457
32,687,231
_29,487,495_
**18,962,010**|_Total_
_2023_
_£_
_718,689_
_5,108,239_
_4,377,424_
_1,156,202_
_48,122_
_1,223,121_
_16,855,698_|
|---|---|---|---|---|---|
||||||_29,487,495_|
|||||||
|Auditor's remuneration|||
|---|---|---|
||2024|_2023_|
||£|_£_|
|Fees payable to the Charity's auditor and its associates for the audit of the|||
|Charity's annual accounts|46,620|_43,560_|
|Fees payable to the Charity's auditor and its associates in respect of:|||
|Other compliance services|7,800|_20,984_|
54
Notes to the Financial Statements For the year ended 31 August 2024
## 13. Staff costs
|Wages and salaries
Social security costs
Contribution to defined contribution pension schemes
Contribution to defined benefit pension schemes|2024
£
16,700,172
1,761,000
481,852
2,509,464
21,452,488|_2023_
_£_
_15,192,341_
_1,600,560_
_389,749_
_2,206,787_|
|---|---|---|
||||
|||_19,389,437_|
Included in defined contribution pension scheme is £Nil _(2023: £30)_ pension payments to former staff.
During the year there were six settlement agreement payments made in the sum of £179,335 _(2023:£20,709, two)_ which is included in staff costs. There were no payments outstanding at the yearend.
The average number of persons employed by the Charity during the year was as follows:
|Teaching
Education support
Maintenance, cleaning, catering and grounds
Administration|2024
No.
176
62
83
119
440|_2023_
_No._
_171_
_53_
_81_
_117_|
|---|---|---|
||||
|||_422_|
55
Notes to the Financial Statements For the year ended 31 August 2024
## 13. Staff costs (continued)
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
|||||2024|_2023_|
|---|---|---|---|---|---|
|||||No.|_No._|
|In|the|band|£60,001 - £70,000|44|_16_|
|In|the|band|£70,001 - £80,000|9|_2_|
|In|the|band|£80,001 - £90,000|5|_8_|
|In|the|band|£90,001 - £100,000|2|_1_|
|In|the|band|£100,001 - £110,000|1|_1_|
|In|the|band|£120,001 - £130,000|1|_-_|
|In|the|band|£180,001 - £190,000|-|_1_|
|In|the|band|£190,001 - £200,000|1|_-_|
|In|the|band|£220,001 - £230,000|-|_1_|
|In|the|band|£230,001 - £240,000|1|_-_|
|In|the|band|£260,001 - £270,000|-|_1_|
|In|the|band|£270,001 - £280,000|1|_-_|
The total employee benefit including pension contributions paid to key management personnel was £1,203,787 _(2023: £1,164,796)_ .
## 14. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits ( _2023: £Nil)_ .
During the year ended 31 August 2024, expenses totalling _£_ 1,695 were reimbursed or paid directly to 4 Trustees _(2023 - £834 to 3 Trustees)_ for travel expenses.
56
Notes to the Financial Statements For the year ended 31 August 2024
## **15. Intangible assets**
|**Intangible assets**||
|---|---|
|**Cost**
At 1 September 2023
Additions
At 31 August 2024
**Amortisation**
At 1 September 2023
Charge for the year
At 31 August 2024
**Net book value**
At 31 August 2024
_At 31 August 2023_|**Computer**
**software**
**£**
**840,750**
**172,231**|
||**1,012,981**|
||**494,050**
**296,849**|
||**790,899**|
||**222,082**|
||_346,700_|
57
Notes to the Financial Statements For the year ended 31 August 2024
## **16. Tangible fixed assets**
|**Cost or valuation**
At 1 September 2023
Additions Disposals
At 31 August 2024
**Depreciation**
At 1 September 2023
Charge for the year
At 31 August 2024
**Net book value**
At 31 August 2024
_At 31 August 2023_|**Freehold**
**sites**
**£**
**604,365**
**42,830**
**-**
**647,195**
**-**
**-**
**-**
**647,195**
_604,365_|**Buildings**
**£**
**41,649,173**
**263,381**
**(50,190)**
**41,862,364**
**14,041,868**
**792,850**
**14,834,718**
**27,027,646**
_27,607,305_|**Plant and**
**equipment**
**£**
**898,896**
**529,755**
**-**
**1,428,651**
**476,802**
**82,570**
**559,372**
**869,279**
_422,094_|**Total**
**£**
**43,152,434**
**835,966**
**(50,190)**|
|---|---|---|---|---|
|||||**43,938,210**|
|||||**14,518,670**
**875,420**|
|||||**15,394,090**|
|||||**28,544,120**|
|||||_28,633,764_|
58
Notes to the Financial Statements For the year ended 31 August 2024
17. Investment property
|Valuation
At 1 September
2024 Unrealised gain
At 31 August 2024|Freehold
investment
property
£
50,726,020
601,960|
|---|---|
||51,327,980|
An annual asset valuation was carried out at 31 August 2024 by Joseph Lang LaSalle Ltd, with the investment portfolio valued at open market value. The valuation was carried out in accordance with the guidelines set out by RICS.
It is not possible to provide an accurate historical cost of the property portfolio. A significant part of the portfolio was given as charter land at no cost, and costs are not available for acquisitions made some considerable time ago.
59
Notes to the Financial Statements For the year ended 31 August 2024
## **18. Fixed asset investments**
|**United Kingdom Fixed Interest**
**United Kingdom Equities**
**Overseas Equities**
**Overseas Bonds**
**Global Fund**
**Commodities**
**Hedge Funds**
**Alternatives**
**Shares at market value**
**Cash at bank awaiting investment**
**Accrued Interest & Income**
**Total investments at market value**
**Cost or valuation**
**At 1 September 2023**
**Additions**
**Disposals**
**Revaluations**
**Net incomings/(outgoings)**
**Accrued Interest & Income**
**At 31 August 2024**
**Investments at market value comprise:**|**investments**
**£**
**96,297,356**
**27,173,869**
**(27,727,898)**
**12,742,969**
**-**
**60,113**
**108,546,409**||**Cash**
**£**
**69,981**
**(27,173,869)**
**27,727,898**
**-**
**(501,089)**
**-**
**122,921**
**2024**
**£**
**24,544,190**
**2,946,900**
**27,491,090**
**57,386,244**
**8,878,020**
**6,023,455**
**5,376,268**
**334,415**
**2,810,544**
**108,300,036**
**122,921**
**246,373**
**108,669,330**|**Total**
**£**
**96,367,337**
**-**
**-**
**12,742,969**
**(501,089)**
**60,113**|
|---|---|---|---|---|
|||||**108,669,330**|
|||||**_2023_**
**_£_**
**_16,874,040_**
**_6,392,718_**
**_4,590,182_**
**_2,782,209_**
**_69,979_**
**_186,260_**
**_12,729,070_**
**_4,144,970_**
**_55,171,336_**
**_7,650,427_**
**_2,650,186_**
**_96,111,098_**
**_96,367,337_**|
60
Notes to the Financial Statements For the year ended 31 August 2024
## 19. Debtors
|Due within one year
Fee debtors net of provision
Rents
Prepayments and accrued income
20.
Creditors: Amounts falling due within one year
Trade creditors
Other creditors
Accruals and deferred income (see note 22)
Pupil education deposits
Pensions
Taxation and social security
21.
Creditors: Amounts falling due after more than one year
Deferred income|2024
£
119,334
171,271
722,554
1,013,159
2024
£
602,053
87,928
2,198,766
622,570
378,645
537,488
4,427,450
2024
£
1,055,141|_2023_
_£_
_216,673_
_177,436_
_980,000_|
|---|---|---|
||||
|||_1,374,109_|
|||_2023_
_£_
_613,768_
_334,821_
_1,975,418_
_664,463_
_301,783_
_554,838_|
||||
|||_4,445,091_|
|||_2023_
_£_
_1,062,646_|
61
Notes to the Financial Statements For the year ended 31 August 2024
## 22. Deferred income
|Deferred income|||
|---|---|---|
|Deferred income at 1 September
Resources deferred during the year
Amounts released
Deferred income at 31 August|2024
£
2,325,703
1,568,358
(1,263,057)
2,631,004|_2023_
_£_
_1,907,791_
_1,255,553_
_(837,641)_|
|||_2,325,703_|
Amounts deferred at 31 August 2024 relate to fees received in advance of £800,905 _(2023: £661,136)_ , rents/ service charge received in advance of £108,226 _(2023: £132,775)_ , trip/catering income received in advance from parents of £659,227 _(2023: £461,642)_ and upfront lease receipts of £1,062,646 _(2023:£1,070,151)_ which are being released over the life of the lease of 150 years.
## 23. Financial instruments
||2024|_2023_|
|---|---|---|
||£|_£_|
|Financial assets|||
|Financial assets measured at fair value through income and expenditure|108,546,409|_96,297,356_|
Financial assets measured at fair value through income and expenditure comprise investments (see note 18).
The Foundation's income, expense, gains and losses in respect of financial instruments are summarised below:
||2024|_2023_|
|---|---|---|
||£|_£_|
|Total investment income for financial assets measured at fair value through|||
|income and expenditure|1,648,823|_1,619,071_|
|Net gains on financial assets measured at fair value through income and|||
|expenditure|12,742,681|_1,914,171_|
|Impairment losses on financial assets measured at amortised cost|30,534|_17,415_|
62
Notes to the Financial Statements For the year ended 31 August 2024
## **24. Analysis of net assets between funds**
|**Analysis of net assets between funds - current period**
**Unrestricted**
**funds**
**2024**
**£**
-
-
-
10,151,905
(4,427,450)
-
(2,108,000)
3,616,455
_Unrestricted_
_funds_
_2023_
_£_
_-_
_-_
_-_
_11,914,638_
_(4,445,091)_
_-_
_(2,354,000)_
Tangible fixed assets
Intangible fixed assets
Fixed asset investments
Investment property
Current assets
Creditors due within one year
Creditors due in more than one year
Provisions for liabilities and charges
**Total**
**Analysis of net assets between funds - prior period**
Tangible fixed assets
Intangible fixed assets
Fixed asset investments
Investment property
Current assets
Creditors due within one year
Creditors due in more than one year
Provisions for liabilities and charges
**Total**
_5,115,547_
**-**|**Restricted**
**funds**
**2024**
**£**
-
-
-
170,260
-
-
-
2,248,829
_Restricted_
_funds_
_2023_
_£_
_-_
_-_
_-_
_1,750,524_
_-_
_-_
_-_
_2,235,603_
2,078,569
_-_|**Endowment**
**funds**
**2024**
**£**
28,544,120
222,082
51,327,980
(4,563,419)
-
(1,055,141)
-
181,066,383
_Endowment_
_funds_
_2023_
_£_
_28,633,764_
_346,700_
_50,726,020_
_(5,889,546)_
_-_
_(1,062,646)_
_-_
_168,636,550_
106,590,761
_95,882,258_|**Total**
**funds**
**2024**
**£**
**28,544,120**
**222,082**
**108,669,330**
**51,327,980**
**5,758,746**
**(4,427,450)**
**(1,055,141)**
**(2,108,000)**|
|---|---|---|---|
||||**186,931,667**|
||||_Total_
_funds_
_2023_
_£_
_28,633,764_
_346,700_
_96,367,337_
_50,726,020_
_7,775,616_
_(4,445,091)_
_(1,062,646)_
_(2,354,000)_|
||||_175,987,700_|
63
Notes to the Financial Statements For the year ended 31 August 2024
## **25. Statement of funds**
|**Statement of funds**|||||||
|---|---|---|---|---|---|---|
|**Statement of funds**|**- current year**|**Income**
**£**
**-**
**-**
**-**
**-**
**15,071,015**
**10,502,216**
**4,694,049**
**-**
**30,267,280**
**30,267,280**|**Expenditure**
**£**
**-**
**-**
**-**
**-**
**(15,722,323)**
**(10,730,524)**
**(5,096,157)**
**370,000**
**(31,179,004)**
**(31,179,004)**|**Transfers**
**in/(out)**
**£**
**(746,418)**
**(259,083)**
**(77,025)**
**(1,082,526)**
**(872,942)**
**(28,902)**
**1,521,002**
**-**
**619,158**
**(463,368)**|**Gains/**
**(Losses)**
**£**
**-**
**-**
**-**
**-**
**(124,000)**
**(124,000)**
**(124,000)**
**-**
**-**
**-**|**Balance at**
**31 August**
**2024**
**£**
**-**
**-**
**-**|
|**Unrestricted**
**funds**
**Designated**
**funds**
School minor
works
Widening
accessibility
Replacement
equipment for
Performing Arts
centre
**General funds**
King Edwards
School
King
Edward
VI
High
School
for
Girls
Endowment fund
income fund
Pension reserve
**Total**
**Unrestricted**
**funds**|**Balance at 1**
**September**
**2023**
**£**
**746,418**
**259,083**
**77,025**
**1,082,526**
**2,240,322**
**2,426,023**
**1,720,676**
**(2,354,000)**
**4,033,021**
**5,115,547**||||||
|||||||**-**|
|||||||**(2,108,000)**
**716,072**
**2,168,813**
**2,839,570**|
|||||||**3,616,455**|
|||||||**3,616,455**|
64
Notes to the Financial Statements For the year ended 31 August 2024
## **25. Statement of funds (continued)**
|**Endowment funds**
Capital endowment fund
Performing Arts Centre fund
Other donations fund
**Restricted funds**
Benjamin Cowie
Webster Bequest
Brode Fund
Margaret Davies Fund
Lee Childs Fund
Other small special funds
HSG & KES Trust Donor
**Total of funds**|**Balance at 1**
**September**
**2023**
**£**
**4,035,742**
**6,352,469**
**168,636,550**
**537,670**
**521,328**
**507,675**
**168,155**
**4,772**
**496,003**
**-**
**2,235,603**
**175,987,700**
**158,248,339**|**Income**
**£**
**46,191**
**46,191**
**8,133**
**7,342**
**7,701**
**1,955**
**60**
**7,108**
**791,370**
**823,669**
**31,137,140**
**-**
**-**|**Expenditure**
**£**
**(1,381,759)**
**(8,497)**
**(1,925)**
**(44,552)**
**(679)**
**(6,029)**
**(791,370)**
**(853,052)**
**(33,413,815)**
**(101,261)**
**(1,249,440)**
**(31,058)**
**-**|**Transfers**
**in/(out)**
**£**
**274,603**
**-**
**408,412**
**683,015**
**942**
**848**
**78,243**
**25,117**
**(325,290)**
**-**
**(219,647)**
**-**
**493**|**Gains/**
**(Losses)**
**£**
**12,638,701**
**-**
**443,685**
**13,082,386**
**57,262**
**51,656**
**98,861**
**25,093**
**774**
**28,610**
**-**
**262,256**
**13,220,642**
**-**|**Balance at**
**31 August**
**2024**
**£**
**169,912,203**
**3,934,481**
**7,219,699**|
|---|---|---|---|---|---|---|
|||||||**181,066,383**|
|||||||**595,510**
**579,249**
**692,480**
**175,768**
**5,420**
**200,402**
**-**|
|||||||**2,248,829**|
|||||||**186,931,667**|
65
Notes to the Financial Statements For the year ended 31 August 2024
## **25. Statement of funds (continued)**
|**Statement of funds**|**(continued)**||||||
|---|---|---|---|---|---|---|
|**Statement of funds**|**- prior year**|_Income_
_£_
_-_
_-_
_-_
_-_
_13,827,187_
_9,464,136_
_4,794,716_
_-_
_28,086,039_
_28,086,039_|_Expenditure_
_£_
_-_
_-_
_-_
_-_
_(14,325,801)_
_(9,704,029)_
_(5,239,160)_
_341,000_
_(28,927,990)_
_(28,927,990)_|_Transfers_
_in/(out)_
_£_
_50,000_
_-_
_-_
_50,000_
_1,236,294_
_873,946_
_(1,950,704)_
_-_
_159,536_
_209,536_|_Gains/_
_(Losses)_
_£_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_78,000_
_78,000_
_78,000_|_Balance at_
_31 August_
_2023_
_£_
_746,418_
_259,083_
_77,025_|
|**Unrestricted**
**funds**
**Designated**
**funds**
School minor
works
Widening
accessibility
Replacement
equipment for
Performing Arts
centre
**General funds**
King Edwards
School
King
Edward
VI
High
School
for
Girls
Endowment fund
income fund
Pension reserve
**Total**
**Unrestricted**
**funds**|_Balance at_
_1 September_
_2022_
_£_
_696,418_
_259,083_
_77,025_
_1,032,526_
_1,502,642_
_1,791,970_
_4,115,824_
_(2,773,000)_
_4,637,436_
_5,669,962_||||||
|||||||_1,082,526_|
|||||||_2,240,322_
_2,426,023_
_1,720,676_
_(2,354,000)_|
|||||||_4,033,021_|
|||||||_5,115,547_|
66
Notes to the Financial Statements For the year ended 31 August 2024
## **25. Statement of funds (continued)**
|**Endowment**
**funds**
Capital
endowment fund
Performing Arts
Centre fund
Other donations
fund
**Restricted funds**
Benjamin Cowie
The Webster
Bequest
Brode Fund
The Margaret
Davies Fund
Lee Childs Fund
Other small
special funds
**Total of funds**|_Balance at_
_1 September_
_2022_
_£_
_4,137,003_
_6,252,571_
_168,363,553_
_538,018_
_499,486_
_498,407_
_181,686_
_5,248_
_485,001_
_2,207,846_
_176,241,361_
_157,973,979_|_Income_
_£_
_-_
_-_
_52,938_
_52,938_
_4,829_
_4,360_
_4,782_
_1,743_
_50_
_4,803_
_20,567_
_28,159,544_|_Expenditure_
_£_
_(1,120,016)_
_(101,261)_
_(2,614)_
_(1,223,891)_
_(24,663)_
_-_
_-_
_(16,909)_
_(573)_
_1,833_
_(40,312)_
_(30,192,193)_|_Transfers_
_in/(out)_
_£_
_(209,536)_
_-_
_-_
_(209,536)_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_|_Gains/_
_(Losses)_
_£_
_1,603,912_
_-_
_49,574_
_1,653,486_
_19,486_
_17,482_
_4,486_
_1,635_
_47_
_4,366_
_47,502_
_1,778,988_|_Balance at_
_31 August_
_2023_
_£_
_158,248,339_
_4,035,742_
_6,352,469_|
|---|---|---|---|---|---|---|
|||||||_168,636,550_|
|||||||_537,670_
_521,328_
_507,675_
_168,155_
_4,772_
_496,003_|
|||||||_2,235,603_|
|||||||_175,987,700_|
67
Notes to the Financial Statements For the year ended 31 August 2024
## **2** 5. Statement of funds (continued)
## Designated Funds
Each designated fund represented a fund where the Governors had exercised their discretion to make provision for future expenditure on specific projects of a non-recurring nature. During this year the Governors made the decision to allocate these funds across the two general school funds in order to pool all ringfenced school funds together.
## Capital Endowment Fund
This is the accumulation of capital gains derived from its investments. This is not a permanent endowment fund.
This is a separately identifiable fund set up as part of the terms of the donation to the Independent Schools to part finance the construction of the Performing Arts Centre for the benefit of both Schools.
## Other Donations Fund
This is a permanent endowment fund comprising of 350 individual funds, providing prizes, grants and scholarships to pupils at the schools of the Foundation.
## Benjamin Cowie
The bequest, received in 1982, is used to support pupils in financial need, subsidise activities, and meet leadership training costs for both masters and boys at King Edward’s School.
## The Webster Bequest
The fund was bequeathed to King Edward’s School in 2000 and is used for the purpose of funding scholarships in the school.
## The Margaret Davis Funds
The fund was bequeathed to the Foundation to support an archiving project.
## Brode Fund
Part of a £2m donation to improve sporting facilities at the Boys’ school
## Lee Child’s Fund
This was a donation to be used to purchase books.
68
|Notes to the Financial Statements|Notes to the Financial Statements|Notes to the Financial Statements|||||||
|---|---|---|---|---|---|---|---|---|
|For the year ended 31 August 2024|||||||||
|**Transfers to/(from) funds - current year**|||||||||
||||**King Edward VI**|
**Endowment**|||||
|||**King**|**High School for**|
**fund**||**Capital**|**Permanent**||
|||**Edwards**|**Girls**|**income**|**Designated**|**endowment**|**&**|**Restricted**|
|||**School**||**fund**|**funds**|**fund**|**Expendable**|**funds**|
|Revenue grant to the Schools from Endowment income fund
**1,465,311**|||**1,059,727**|**(2,525,038)**|**-**|**-**|**-**|**-**|
|Interest paid to Foundation||**(351,478)**|**(151,344)**|**502,822**|**-**|**-**|**-**|**-**|
|Distribution of Designated Fund||**155,187**|**630,891**|**296,448**|**(1,082,526)**|**-**|**-**|**-**|
|Transfer of Capital Expenditure||**(379,101)**|**(340,038)**|**-**|**-**|**719,139**|**-**|**-**|
|Contributions to the Foundation for services||**(87,500)**|**(87,500)**|**175,000**|**-**|**-**|**-**|**-**|
|Special Funds corrections||**-**|**-**|**46,235**|**-**|**-**|**173,412**|**(219,647)**|
|Correct PE Fund Property gain||**-**|**-**|**-**|**-**|**(235,000)**|**235,000**|**-**|
|Amortisation of the capital receipts arising from sales of|||||||||
|interests in land||**-**|**-**|**209,536**|**-**|**(209,536)**|**-**|**-**|
|Transfer to correct opening balances||**(1,675,361)**|**(1,140,638)**|**2,815,999**|**-**|**-**|**-**|**-**|
|||**(872,942)**|**28,902)**
**(**|**1,521,002**|**(1,082,526)**|**274,603**|**408,412**|**(219,647)**|
||||||||||
||||69||||||
Notes to the Financial Statements For the year ended 31 August 2024
## Transfers to/(from) funds - prior year
||_King_
_Edwards_
_School_
_1,380,231_|_King_
_Edwards_
_School_
_1,380,231_|_King_
_Edwards_
_School_
_1,380,231_|_King_
_Edwards_
_School_
_1,380,231_|
|---|---|---|---|---|
|Revenue grant to the Schools
from Endowment income fund||_988,202_|_(2,368,433)_|_-_|
|Interest paid to Foundation|_(78,919)_|_(29,274)_|_108,193_|_-_|
|Funds sets aside for specific
projects|_(15,000)_|_(35,000)_|_-_|_50,000_|
|Contributions to the Foundation
for services|_(50,018)_|_(49,982)_|_100,000_|_-_|
|Amortisation of the capital
receipts arising from sales of
interests in land|_-_|_-_|_209,536_|_-_|
70
Notes to the Financial Statements For the year ended 31 August 2024
## 26. Reconciliation of net movement in funds to net cash flow from operating activities
|Net income/expenditure for the period (as per Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Amortisation charges
Net (gains)/loss on investments
Retirement Benefits Scheme costs less contributions paid
Rents received from investment properties
Interest received
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Loss on disposal of fixed asset
Net cash used in operating activities
27.
Analysis of cash and cash equivalents
Cash in hand
Short term deposits
Total cash and cash equivalents
28.
Analysis of changes in net debt
At 1
September
£
2023
Cash at bank and in hand
6,401,507
6,401,507|Net income/expenditure for the period (as per Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Amortisation charges
Net (gains)/loss on investments
Retirement Benefits Scheme costs less contributions paid
Rents received from investment properties
Interest received
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Loss on disposal of fixed asset
Net cash used in operating activities
27.
Analysis of cash and cash equivalents
Cash in hand
Short term deposits
Total cash and cash equivalents
28.
Analysis of changes in net debt
At 1
September
£
2023
Cash at bank and in hand
6,401,507
6,401,507|2024
£
11,067,967
875,420
296,849
(13,344,929)
(370,000)
(2,022,131)
(98,444)
360,950
(25,146)
50,190
(3,209,271)
2024
£
4,745,587
-
4,745,587
Cash flows
£
(1,655,920)
(1,655,920)||_2023_
_£_
_(331,661)_
_812,901_
_239,166_
_(1,636,570)_
_(341,000)_
_(2,068,512)_
_(97,958)_
_(214,776)_
_138,505_
_105,252_|
|---|---|---|---|---|
||||||
|||||_(3,394,653)_|
||||||
|||||_2023_
_£_
_5,537,473_
_864,033_|
||||||
|||||_6,401,507_|
|||||At 31
August 2024
£
4,745,587|
||6,401,507|||4,745,587|
71
Notes to the Financial Statements For the year ended 31 August 2024
## 29. Capital commitments
There were no capital commitments at the year end _(2023: £Nil)_ .
## 30. Pension commitments
Employees belong to two principal defined benefit pension schemes: The Teachers' Pension Scheme England and Wales (TPS) for academic and related staff; and The Schools of King Edwards the Sixth Retirement Benefit Scheme ("the Scheme") for non-teaching staff. Both are multi-employer benefit schemes. A further defined contribution pension scheme is in operation for non-teaching staff since April 2021. In addition to the aforementioned Schemes, the Governors provide discretionary unfunded pensions out of general income. These amounted to £Nil in the year ended 31 August 2024 _(2023: £30)_
## Defined contribution scheme
New staff, or those staff who had been eligible but had not joined the defined benefits scheme are eligible to participate in a defined contribution scheme, administered by Scottish Widdows. By 31 August 2024, 193 members of staff has joined _(2023: 180)_ . The employer contributions for the defined contribution scheme totalled £480,765 _(2023: £389,720)_ based on rates of up to 8%. At year end £66,483 _(2023:£59,112)_ was payable to the scheme and included within creditors.
## 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 £2,358,718 _(2023: £2,031,667)_ and at the year-end £288,803 _(2023: £238,732)_ 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 has valued the ‘greater value’ benefits for groups of relevant members.
The employer contribution rate for the TPS is 28.6%, and employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 28.68%.
72
Notes to the Financial Statements For the year ended 31 August 2024
## 30. Pension commitments (continued)
The Schools of King Edward VI in Birmingham Retirement Benefit Scheme
The Charity operates a defined benefit pension scheme.
Other staff of the Independent Schools and Foundation have been eligible to join a defined benefits Scheme operated by the Governors of the Foundation. In March 2010 the Governors took the decision to close the Governors’ Pension Scheme to new members.
31.
The review of the Scheme as at 31 August 2024 showed a large improvement in the funding shortfall. The main reasons for the reduction in the deficit over the period can be summarised as follows:
- higher than expected investment returns; and
- the payment of deficit reduction contributions by the Foundation, which has increased the value of
- the Scheme’s assets.
However, the above factors have been partially offset by:
- reductions in corporate bond yields over the period; and
- unfavourable membership experience (such as retirements and mortality) which has resulted in a higher
- value being placed on the Scheme's liabilities
Contributions to be paid by the Foundation:
Foundation Contributions towards the shortfall Period 1 April 2024 to 31 March 2025 £36,167 per month 1 April 2025 to 31 March 2026 £14,667 per month 1 April 2026 to 31 March 2027 £15,107 per month 1 April 2027 to 31 January 2028 £15,560 per month
From 1 April 2022, as a result of the 2021 valuation, the employer contributions rate was set at 27.3% with Scheme expenses being paid by the Foundation and not the Scheme Fund.
The Scheme is known as the Schools of King Edward VI in Birmingham Retirement Benefits Scheme (the Scheme). The Scheme provides benefits based on salary and length of service on retirement, leaving service or death. The following disclosures exclude any allowance for defined benefit schemes operated by the Foundation.
The Scheme is subject to the Statutory Funding Objective under the Pensions Act 2004. A valuation of the Scheme is carried out at least once every three years to determine whether the Statutory Funding Objective is met. As part of the process the Foundation must agree with the Trustees of the Scheme the contributions to be paid to meet any shortfall against the Statutory Funding Objective and to pay for the future accrual of benefits.
The Foundation expects to contribute £587,000 to the Scheme during the year to 31 August 2025.
The Scheme is managed by a board of Trustees appointed in part by the Foundation and part from elections by members of the Scheme. The Trustees have responsibility for obtaining valuations of the fund, administering benefit payments and investing the Scheme’s assets. The Trustees delegate some of these functions to their professional advisers where appropriate.
There were no plan amendments, curtailments or settlements during the period.
73
Notes to the Financial Statements For the year ended 31 August 2024
## 30. Pension commitments (continued)
Principal actuarial assumptions at the Balance sheet date (expressed as weighted averages):
||At 31|_At 31 August_|
|---|---|---|
||August 2024|_2023_|
||%|_%_|
|Discount rate|5.00|_5.35_|
|Future salary increases|3.00|_3.00_|
|Future pension increases (RPI capped at 5%)|3.35|_3.45_|
|Future pension increases (CPI capped at 5%)|2.95|_3.05_|
|Inflation (RPI)|3.35|_3.45_|
|Inflation (CPI)|2.95|_3.05_|
|Proportion of members with a spouse|80|_80_|
## Other assumptions used are:
Mortality - S3PA tables with CMI 2022 projections using a long-term improvement rate of 1.25% pa and a 25% weighting to 2022 experience
Commutation - 75% of members are assumed to take 25% of their pension as tax free cash
Early retirement - 40% of active members who joined pre 2007 are assumed to retire at age 60
|
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
The Charity's share of the assets in the scheme was:
Equities
Cash
Total fair value of assets|At 31
August 2024
Years
86.5
87.8
89.0
90.4
At 31
August 2024
£
10,840,000
219,000
11,059,000|_At 31 August_
_2023_
_Years_
_87.4_
_88.8_
_89.8_
_91.2_|
|---|---|---|
|||_At 31 August_
_2023_
_£_
_9,987,000_
_281,000_
_10,268,000_|
The actual return on scheme assets was a gain of £898,000 _(2023 - £1,878,000)_ .
74
Notes to the Financial Statements For the year ended 31 August 2024
## 30. Pension commitments (continued)
The amounts recognised in the Statement of Financial Activities are as follows:
|The amounts recognised in the Statement of Financial Activities are as follows:|||
|---|---|---|
|Current service cost
Net interest
Total amount recognised in the Statement of Financial Activities
Movements in the present value of the defined benefit obligation were as follows:
Opening defined benefit obligation
Contributions by scheme participants
Actuarial losses/(gains)
Benefits paid
Current service costs
Interest cost
Closing defined benefit obligation|2024
£
90,000
110,000
200,000
2024
£
12,622,000
32,000
475,000
(709,000)
90,000
657,000
13,167,000|_2023_
_£_
_144,000_
_105,000_|
||||
|||_249,000_|
|||_2023_
_£_
_14,770,000_
_39,000_
_(2,469,000)_
_(480,000)_
_144,000_
_618,000_|
||||
|||_12,622,000_|
Movements in the fair value of the Charity's share of scheme assets were as follows:
|Opening fair value of scheme assets
Interest income
Actuarial gains/(losses)
Contributions by employer
Contributions by scheme participants
Benefits paid
Closing fair value of scheme assets|2024
£
10,268,000
547,000
351,000
570,000
32,000
(709,000)
11,059,000|_2023_
_£_
_11,997,000_
_513,000_
_(2,391,000)_
_590,000_
_39,000_
_(480,000)_|
|---|---|---|
||||
|||_10,268,000_|
75
Notes to the Financial Statements For the year ended 31 August 2024
## 31. Operating lease commitments
At 31 August 2024 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
|
cancellable operating leases as follows:|||
|---|---|---|
|Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years|2024
£
35,387
56,350
36,111
127,848|_2023_
_£_
_88,605_
_58,582_
_30,089_|
||||
|||_177,276_|
The following lease payments have been recognised as an expense in the Statement of financial activities:
||2024|_2023_|
|---|---|---|
||£|_£_|
|Operating lease rentals|126,349|_95,487_|
## Operating lease commitments (continued)
At 31 August 2024 the Charity had the following future minimum lease income from investment property rent under non-cancellable operating leases as follows:
|Within one year
Between two and five years
Over five years|2024
£
2,059,420
7,505,177
162,246,604
171,811,201|_2023_
_£_
_1,882,311_
_6,253,455_
_163,756,671_|
|---|---|---|
|||_171,892,437_|
The following amount of rental income has been recognised as income in the Statement of financial activities:
||2024|_2023_|
|---|---|---|
||£|_£_|
|Operating lease rental income|2,022,131|_2,068,512_|
76
Notes to the Financial Statements For the year ended 31 August 2024
## 32. Related party transactions
The Foundation considers itself related to the King Edward VI Academy Trust Birmingham (Co. no.10654935). The Trust consists of twelve academies of which five were initially established as Voluntary Aided Grammar Schools by the Foundation. The Trust is considered a related party by virtue of the fact that the Foundation provides executive leadership, finance, accounting, payroll and personnel, operations and governance services to the academies and the Foundation owns the land and buildings at the academies. There is a licence to occupy the land and buildings between the Foundation and some of the schools of the Academy Trust rent free. There is a service level agreement for the services provided by the Foundation, whereby a contribution of £1,088,566 _(2023: £1,074,744)_ was received during the year.
Transactions with the Trust during the year include:
||2024|_2023_|
|---|---|---|
||£|_£_|
|Income|||
|Costs incurred by Foundation and reimbursed by the Trust|4,867|_10,196_|
|Contributions to the Foundation for services|1,088,566|_1,074,744_|
|Expenditure|||
|Grants paid/payable|-|_5,613_|
|Fees paid for KES Teachers training at KEC|13,000|_1,200_|
|Costs incurred by the Trust and reimbursed by the Foundation|58,817|_83,818_|
|Payments from restricted funds|9,928|_2,391_|
|Other income received and passed over to the Trust|7,939|_45,717_|
At the year-end there were the following balances held in the balance sheet:
|Debtor at year end
Creditor at year end|2024
£
13,379
(8,291)
5,088|_2023_
_£_
_315,151_
_(62,080)_|
|---|---|---|
|||_253,071_|
77
Notes to the Financial Statements For the year ended 31 August 2024
## Related party transactions (continued)
The Chief Master and Deputy Chief Master are trustees of The King Edward’s School Birmingham Trust (Charity no: 1129776). The Trust provides King Edward’s School with funding for Assisted Places.£418,701 _(2023: £425,832)_ was paid to cover Assisted Places supported by the Trust.
The Principal and a Governor are also trustees of The King Edward VI High School for Girls Birmingham Trust (Charity no: 1159413). The Trust was set up during 2014/15 to provide King Edward VI High School for Girls with funding for Assisted Places. £326,874 ( _2023: £280,116)_ was paid to cover Assisted Places supported by the Trust.
Ms E Conway is Chief Financial Officer of the University of Birmingham. During the year £20,577 _(2023:£2,754)_ was paid to the organisation and £20,167 _(2023: £16,000)_ lease rentals were invoiced to the organisation. There were no amounts outstanding at the end of the year _(2023: £Nil)_ .
Development Funding and Finance services are also provided by King Edward’s School to the two Trusts. No charge is made for the services provided. The cost of the Development Team for the year at King Edward’s School was £127,595 ( _2023: £117,112)_ and £122,210 _(2023: £101,001)_ at King Edward VI High School for Girls.
None of the Governors received any remuneration during the year.
There are no other related party transactions.
78