**Charity registration number 529420** **Company registration number 00908443 (England and Wales)** ## **HILL HOUSE SCHOOL LIMITED** # **ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024** ## **HILL HOUSE SCHOOL LIMITED** ## **LEGAL AND ADMINISTRATIVE INFORMATION** |**Trustees**|Mrs J Fearns|| |---|---|---| ||R P Leggott|| ||J A L Sprenger|| ||Dr A Cooper|| ||Prof J Pickering|| ||A Ogley|| ||A Joshi|| ||Dr K Rao|| ||P Hanley|(Appointed 8 January 2024)| ||R Poulton|(Appointed 8 January 2024)| ||D Riley|(Appointed 18 September| |||2024)| ||A Ward|(Appointed 8 January 2024)| ||L Young|(Appointed 9 December| |||2024)| |**Charity number**|529420|| |**Company number**|00908443|| |**Registered office**|Sixth Avenue|| ||Auckley|| ||Doncaster|| ||DN9 3GG|| |**Auditor**|Warrens Accountants Limited|| ||Chartered Certified Accountants|| ||33 Thorne Road|| ||Doncaster|| ||South Yorkshire|| ||DN1 2HD|| |**Bankers**|Virgin Money|| ||19 St Sepulchre Gate|| ||Doncaster|| ||South Yorkshire|| ||DN1 1SJ|| ||Close Brothers Savings|| ||10 Crown Place|| ||London|| ||EC2A 4FT|| |**Solicitors**|Knights Plc|| ||Majestic|| ||City Square|| ||Leeds|| ||West Yorkshire|| ||LS1 2EF|| ## **HILL HOUSE SCHOOL LIMITED** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 7| |Statement of trustees' responsibilities|8| |Independent auditor's report|9 - 12| |Statement of financial activities|13 - 14| |Balance sheet|15| |Statement of cash flows|16| |Notes to the financial statements|17 - 30| ## **HILL HOUSE SCHOOL LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT)** _**FOR THE YEAR ENDED 31 AUGUST 2024**_ The trustees ,who are also directors of the charity for the purposes of the Companies Act 2006, present their annual report and financial statements for the year ended 31 August 2024. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)". ## **Objectives and activities** ## **Objectives and aims** ## **Our Mission** We educate, develop and inspire the whole pupil, now, and for life. ## **Our values** We are ambitious for our pupils. - We celebrate both outstanding academic performance, and success in all areas of school life. - We value participation, perseverance and the embrace of challenge. - We promote traditional characteristics such as respect, decency and integrity. - We strive to give pupils of all backgrounds the chance to benefit from the many opportunities provided by Hill House. ## **Our Aims** - To provide full and enriching opportunities, a curriculum of balance and substance. - To instil in pupils a lifelong love of learning, ambition and resilience in facing challenges they will meet. - To offer a supportive and friendly community, where everyone is known and treated as an individual, within a framework of encouraging and disciplined pastoral care. - To enable our children to become confident, capable and compassionate people, who will develop into adults with independent minds and a proper sense of values, service and responsibility. - To be an innovative yet traditional, co-educational, 3-18 northern day school. ## **Our Objectives** The Charity's objects outlined in the school's Memorandum and Articles of Association are: "To promote and provide for the advancement of education and in connection therewith to conduct, carry on, acquire, establish, maintain, promote and develop in the United Kingdom any schools, facilities and institutions for the education of children, young persons and adults of both sexes" In the year under review the school offered nursery places and education facilities for children and young people up to age 18. The school is committed to providing a rounded and complete education and is proud of its high standards and high expectations. The high standards of academic success achieved are a testament to the commitment and dedication of the staff and the high expectations adopted by the pupils. Our aim is to help children progress in as many directions as possible, to encourage their excellence and to give them opportunities to develop skills away from the classroom, preparing them for their future lives. The school's policy is to attain the highest academic levels whilst providing an environment that also promotes the moral and physical development of pupils. This aims to develop other interests and prepare pupils for university, college and, of course, their working life beyond education. Hill House School aims to provide a happy, stimulating environment in which caring, professional staff motivate children, and young adults, to achieve their full potential. The school believes that life outside the classroom should be rich and rewarding. School years are an important time for trying out new skills and activities, which can give lifelong pleasure and opportunities. Extra-curricular activities are an integral part of a full and stimulating education encouraging children to develop interests beyond their academic pursuits. Over 100 extra-curricular activities are offered each week allowing children to develop existing interests and discover new talents. Trips and visits are another key aspect of the Hill House School life. - 1 - ## **HILL HOUSE SCHOOL LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2024**_ Each year the school offers the Silver and Gold Duke of Edinburgh Award to Year 10 and Lower Sixth students respectively. Sport plays a huge part in the life of the school as we wholeheartedly believe that teamwork and resilience are important skills to learn both inside the classroom and on the sports field. The school is proud to be district and county champions in many sports and a number of our teams have achieved regional and national successes. The school has eight choirs, three orchestras and numerous ensembles and therefore a remarkable number of pupils are able to enjoy and excel in music. School drama productions and musical performances are important calendar events which are well supported by families and staff. The governors are encouraged to attend sporting events, productions, concerts and also to visit school during a normal school day to take part in routine lessons and experience the normal day to day running of the school. The school communicates on a regular and appropriate basis with parents of children in school regarding their academic, co-curricular and pastoral progress by a variety of means including termly newsletters and reports, parents evenings, emails and the school's website where appropriate. ## **Public benefit** In considering the aims of the school the Board of Governors has, in accordance with the Charities Act 2011, given due regard to the public benefit guidance issued by the Charity Commission. Increasing accessibility to the outstanding all-round education, pastoral care and extensive opportunities offered at the School is a key objective. The school values its place in the local community and has worked hard over the years to develop positive relationships with local schools and community groups, and to facilitate the sharing of the school's facilities and expertise. In addition to benefiting the wider community the overall experience of our pupils is greatly enhanced by the experiences they gain from interactions with their extended community. The school regularly hosts events such as a science fair, spelling Bees, music day, sports tournaments and a cross country event in which pupils and staff from both Hill House and other local schools can participate. The school works in partnership with Rose Learning Trust, a multi-academy trust operating several primary schools in the Doncaster area, and regularly invites pupils from these schools to take part in events at Hill House. This provides opportunities otherwise unavailable to in excess of 200 children each year from schools in this group. Hill House led training sessions are opened up to teaching staff within the group and colleagues are encouraged to share best practice in a wide range of subject areas. The Classics Department teaches GCSE Latin to pupils from Hayfield School, and members of the PE Department teach every week at local primary schools. Since 2011 the school has hosted The Robin Hood Music and Drama Festival annually. Over the years the festival has proved to be an increasingly popular annual event, welcoming children from the wider community into the school to show off their artistic styles to their peers. The school and pupils are committed to charitable fundraising and regularly hold events to raise money for charities such as Children in Need, During the year the school raised in excess of £1,000 to donate to several charities. It is the boards policy to keep fees at a level as low as is practicably possible in order to widen access to as many children as possible within the Doncaster area. The board was mindful of the cost of living crisis when setting fees for the 2023/24 academic year and have looked to mitigate the impact of the rise in staff costs and borrowing costs on the fees charged. - 2 - ## **HILL HOUSE SCHOOL LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2024**_ ## **Bursary Policy** The school has long maintained a policy of awarding bursaries, within budgetary constraints, where personal financial circumstances warrant it. The Governors view the bursary awards as important in helping to ensure children from families who would otherwise not be able to afford the fees are able to access the education and facilities available at Hill House School. The Bursary policy is periodically reviewed to ensure that it is robust and fair, providing clear guidelines for decision making. Each application is assessed on its own merit and social factors are always taken into consideration alongside the means testing parameters. The school's Bursary awards are available to all who meet general entry requirements and are made on the basis of parental means, or to relieve temporary hardship for existing families, where a pupil's education would otherwise be at risk. Existing and new parents are given the opportunity to apply for assistance and all applications are assessed taking account of several factors including family income, investments, savings and family circumstances, including the number of siblings and dependant relatives. The school can only allocate a limited amount of resources for the provision of bursaries and must maintain a fair balance taking into account the sacrifices that existing fee paying parents often have to make to ensure the continuity of their child's education. It may be necessary for the school to review its Bursary Policy, in light of the changes due to be imposed by the government to independent schools in 2025. The bursary awards range from 10% to 100% remission of fees. Information about the school's bursary policy is available on the school's website, within the prospectus and in any promotional literature produced by the school. The school's continued commitment to providing access for pupils, regardless of their circumstances, resulted in provision of school funded financial assistance to over 470 pupils across all age ranges. However, future changes to taxes affecting independent schools are likely to adversely impact the school's ability to assist as significant a number of families to benefit from a Hill House education. ## **Strategic report** ## **Academic performance** The average number of pupil's in school during the year was 795 (2023 : 730). The average number of nursery pupils during the year was 62 (2023 : 59). In 2024, 64 pupils (2023 : 74) were entered in GCSE examinations with an overall pass rate of 98% ; 57% (2023 : 49%) of GCSEs were graded 7-9, the strongest in the school’s history. The average number of passes per candidate at grade C or above was 8.4 (2023 : 8.7). Results in the Sixth Form continue to be outstanding. In 2024, 58 students were entered for A Levels (2023 : 50), 47% of exams were graded A* or A, 79% A* to B, and a remarkable 93% A* to C. These results are the strongest in the school’s history that have been sat as examinations. The overall pass rate was again 100%. 98% of those applying to University got into their first or second choice course with over 67% entering Russell Group Universities. Students are taking up places at renowned Universities including Oxford, Imperial and Durham. The average grade remains pleasing at a B+. The strong performance across both GCSE and A Level led to Hill House being named **Independent School of the Year North by The Times in their annual Parent Power report.** The Telegraph noted Hill House as being good value for money in all areas and the top fully coeducational school in the region on this measure. ## **Developments** During the year, the tenants in the property known as Oxford House, were given notice to vacate the premises, to enable the school to commence redevelopment of the building. Planning permission was obtained and the main contractor started work in the Spring of 2024, with work scheduled for completion in the Michaelmas term 2024. The building, renamed New Court, will provide the school with state of the art facilities, including a bespoke Music School, a vibrant Art School a fully equipped Fitness Centre and a dedicated Year 6 space. - 3 - ## **HILL HOUSE SCHOOL LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2024**_ ## **Financial review** ## **Performance** The 2023/24 year has been another extremely successful year for the school. Pupil numbers remained strong despite the impact of the economic uncertainty around VAT and business rates relief changes planned for the sector in 2025. There remains interest in the school from families looking at the independent sector as a viable alternative to state education. The financial results are set out in the Statement of Financial Activities. The school's Net Incoming resources of £1,312,975 shows a significant improvement from the £928,762 achieved in 2023. Effective cost controls and strong pupil numbers have led to a net surplus higher than the budget for the year. Rigorous financial management and controls, in conjunction with the strong relationships built with existing parents and newcomers to the school, have enabled the school to thrive during the financial year. The key financial performance indicators reported by the school are as follows: Gross Profit Percentage 42.8% (2023 : 40%) Net Surplus Percentage 12.5% (2023 : 10.5%) Teaching staff costs as a Percentage of Income 46.9% (2023 : 50%) The charity's net assets at the 31st August 2024 amounted to £11,987,454 (2023 - £10,674,479), all of which were unrestricted. The governors are pleased to report that the provision of a first-class education system, together with effective marketing and astute financial management has resulted in another healthy set of results for the 2023/24 academic year ## **Reserves policy** It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to or in excess of its anticipated annual expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant change in the charity's operating environment, they will be able to continue the charity’s current activities while consideration is given to ways in which the charity will move forward. This level of reserves has been maintained throughout the year. At the 31st August 2023 the charity held unrestricted funds of £11,987,454 (2023 - £10,674,479) which is in excess of the current years annual expenditure of £9,193,316 and next years budgeted anticipated expenditure. It remains the trustees policy to invest surplus funds for the furtherance of the school's objects to build up sufficient reserves to enable the charity to meet its capital repayment commitments due to borrowings following the acquisition of premises, and for the continuing plan of capital improvement expenditure. The charity continued to use low risk bank deposit account investments to ring fence funds and generate income throughout the year. ## **Plans for future periods** The development of New Court represents a significant step forward in the school’s ongoing provision of an exceptional and holistic educational experience. The addition of a dedicated Year 6 suite will greatly support the Junior School pupils as they transition into Senior School. The new Music and Art schools are a testament to the school’s commitment to fostering creativity, while the Fitness Centre, will further elevate pupils achievements in sport and general wellbeing. During the 2024/25 year, the school will continue to develop the facilities for pupils, by creating a new medical centre - 4 - ## **HILL HOUSE SCHOOL LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2024**_ ## **Structure, governance and management** The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: Mrs J Fearns R P Leggott J A L Sprenger Dr A Cooper N R Ebden (Resigned 27 August 2024) Prof J Pickering A Ogley A Joshi R Blakemore (Resigned 9 October 2024) Dr K Rao P Hanley (Appointed 8 January 2024) R Poulton (Appointed 8 January 2024) D Riley (Appointed 18 September 2024) A Ward (Appointed 8 January 2024) L Young (Appointed 9 December 2024) ## **Recruitment and appointment of trustees** As and when necessary the Board of Governors, assisted by the Headmaster and Bursar, seeks out interested persons who have the appropriate skills and qualities to serve on the Board. Trustees are appointed to provide the board as a whole with a broad spectrum of experience across relevant areas of operation of the school and to ensure a balance of skills and knowledge on the board of governors. New governors are inducted by the Headmaster and Bursar into the workings of the school and initial training is undertaken through AGBIS. Membership of AGBIS (Association of Governing Bodies of Independent Schools) provides individual trustees and the senior management with support in their roles whilst providing valuable training resources and guidance. Trustees' knowledge and experience dictates how sub-committees are populated to ensure effective oversight of specific areas of governance. Trustees are supported in their roles by the senior management team and through regular training and resources available through AGBIS. - 5 - ## **HILL HOUSE SCHOOL LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2024**_ ## **Organisational structure** Hill House School Limited was formed in 1967 to acquire the school of that name as a going concern. Its registered company number is 908443 and it is governed by the provisions of its Memorandum and Articles of Association. It is a registered charity, number 529420. The school operated under the name of Hill House St Mary's School from 2002 at the time of its amalgamation with St Mary's School until relocation to its current site in August 2008 when it reverted to the name of Hill House School under which it now operates. The board of governors determine the school's policies and strategies and monitor them as appropriate. They review the risks of operation periodically together with the systems of internal control and mitigation of risks including, as appropriate, insurance cover to ensure risks are minimised as far as is possible. The governors' investment powers are set out in the Memorandum and Articles of Association. These allow the charity to invest funds not immediately required for furtherance of its objectives in such investments, securities or property as may be thought fit, subject to any conditions imposed by law. Day to day management of the school's operations is delegated by the Board to the Headmaster, the Bursar and their Senior Management Team who report to the Board termly, as a minimum, through an appropriate structure of sub committees which scrutinise activities closely. The sub-committees, who report to the Board are : FGPSC - Finance and General Purposes Sub-Committee HRSC - Human Resources Sub-Committee ARSC - Academic and Related Sub-Committee SRSC - Statutory and Regulatory Sub-Committee Remuneration Committee In addition to the sub-committee structure. working parties, made up of Governors and Managers with the relevant experience and knowledge, are formed to oversee specific projects when appropriate. The remuneration of key management personnel (the Senior Management Team) is determined by the Remuneration Committee and approved by the Board after considering market rates. The committee meets annually during the early part of the Lent term. ## **Management Team** The school headmaster, D Holland, is assisted in running the school during the year by the following management team in place at the 31 August 2024: - K Wigglesworth - Bursar and Clerk to the Governors - C Rogerson - Head of Senior School - J Hall - Head of Junior School (left December 2024) - C Leach - Deputy Head of Junior School - H Jones - Deputy Head - C Havard - Senior Mistress The management team is supported by appropriate support staff. - 6 - ## **HILL HOUSE SCHOOL LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2024**_ ## **Risk management** The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place, and that controls provide reasonable assurance against fraud and error. To ensure compliance with its duties in this respect the school has a corporate risk register which is periodically reviewed by subcommittees and the Board of Governors. Through the risk management process established for the school, the Governors are satisfied that the major risks identified have been adequately assessed in terms of likelihood and impact, and that mitigating control measures have been identified and put in place. Responsibility for the day to day financial management is delegated to relevant individuals and the finance system is open to scrutiny by the board. Risks are reviewed at each meeting by sub-committees and this is subject to overall scrutiny by the SRSC. The future potential risks arising from the introduction of VAT on fees have been identified as a significant risk by the trustees. The risks have been assessed and plans established by the trustees to mitigate the impact , as far as is possible, on the charity and its key participators. ## **Auditor** In accordance with the company's articles, a resolution proposing that Warrens Accountants Limited be reappointed as auditor of the company will be put at a General Meeting. ## **Disclosure of information to auditor** Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information. The trustees' report, including the strategic report, was approved by the Board of Trustees. Mrs J Fearns **Trustee** 27 March 2025 - 7 - ## **HILL HOUSE SCHOOL LIMITED** ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** ## _**FOR THE YEAR ENDED 31 AUGUST 2024**_ The trustees, who are also the directors of Hill House School Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping adequate accounting records that 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 Companies Act 2006. 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. - 8 - ## **HILL HOUSE SCHOOL LIMITED** ## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HILL HOUSE SCHOOL LIMITED** ## **Opinion** We have audited the financial statements of Hill House School Limited (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 notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31 August 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the _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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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. ## **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. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of our audit: - the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report and the strategic report prepared for the purposes of company law, is consistent with the financial statements; and - the strategic report and the directors' report included within the trustees' report have been prepared in accordance with applicable legal requirements. - 9 - ## **HILL HOUSE SCHOOL LIMITED** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF HILL HOUSE SCHOOL LIMITED** ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report included within the trustees' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the 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 charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor's responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. ## **Extent to which the audit was considered capable of detecting irregularities including fraud** As part of designing our audit, we determined materiality and assessed the risk of material misstatement in the financial statements, including how fraud may occur by enquiring with management as to its own consideration of fraud. In particular, we looked at where management made subjective judgements, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. We also considered potential financial or other pressures, opportunity and motivations for fraud. As part of the discussion we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing of material adjusting journals and key estimates and judgements made by management. - 10 - ## **HILL HOUSE SCHOOL LIMITED** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF HILL HOUSE SCHOOL LIMITED** We gained an understanding of the legal and regularity framework applicable to the company and the charitable sector in which it operates, drawing on our audit experience and knowledge of the charitable company and its sector, and considered the risk of acts by the company that were contrary to these laws and regulations, including fraud. We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to: The Companies Act 2006 and associated legislation UK Health and Safety at Work legislation UK Employment & Labour laws and regulations UK Charities legislation and guidance We also made enquiries of management with regards to the compliance with the above laws and regulations and obtained any necessary evidence to corroborate the information provided, for example minutes of trustee directors meetings and legal correspondence between the company and its solicitors. We have identified revenue recognition, management override and completeness of related party transactions as key audit matters relating to irregularities, including fraud. We have evaluated management's incentives for fraudulent manipulation of the financial statements, including the risk of management overriding controls, and identified that the principal risks relate to management bias in accounting estimates and judgmental areas of the financial statements such as revenue recognition. The following audit work was undertaken in response to the risks identified: - Enquiry of management, those charged with governance around actual and potential litigation and claims. - Enquiry of entity staff in compliance functions to identify any instances of non-compliance with laws and regulations. - Reviewing minutes of meetings of those charged with governance. - Reviewing key sources of estimation uncertainty testing to supporting documentation, ensuring reasonableness of assumptions and consistently applied - Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. - Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. - Identifying related parties and ensuring transactions are complete by testing to available supporting documentation Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. ## **Other matters** The financial statements of the Charity for the year ended 31 August 2023 were audited by Warrens GBC Limited who expressed an unmodified opinion on those statements on the 21 March 2024. ## **Use of our report** This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed. - 11 - ## **HILL HOUSE SCHOOL LIMITED** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF HILL HOUSE SCHOOL LIMITED** **Mr John Thomas Smith (Senior Statutory Auditor) for and on behalf of Warrens Accountants Limited** 27 March 2025 **Chartered Certified Accountants Statutory Auditor** 33 Thorne Road Doncaster South Yorkshire DN1 2HD - 12 - ## **HILL HOUSE SCHOOL LIMITED** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 AUGUST 2024**_ |**Current financial year**||**Unrestricted**| |---|---|---| |||**funds**| |||**2024**| ||**Notes**|**£**| |**Income and endowments from:**||| |Grants, donations and legacies|**3**|32,983| |Charitable activities|**4**|10,046,751| |Other trading activities|**5**|172,497| |Investments|**6**|218,931| |Other income|**7**|35,129| |**Total income**||10,506,291| |**Expenditure on:**||| |Charitable activities|**8**|9,193,316| |**Total expenditure**||9,193,316| |**Net income and movement in funds**||1,312,975| |**Reconciliation of funds:**||| |Fund balances at 1 September 2023||10,674,479| |**Fund balances at 31 August 2024**||11,987,454| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 17 to 30 form part of these financial statements. - 13 - ## **HILL HOUSE SCHOOL LIMITED** ## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 AUGUST 2024**_ |**Prior financial year**||**Unrestricted**| |---|---|---| |||**funds**| |||**2023**| ||**Notes**|**£**| |**Income and endowments from:**||| |Grants, donations and legacies|**3**|3,000| |Charitable activities|**4**|8,460,218| |Other trading activities|**5**|157,007| |Investments|**6**|244,916| |Other income|**7**|14,826| |**Total income**||8,879,967| |**Expenditure on:**||| |Charitable activities|**8**|7,951,205| |**Total expenditure**||7,951,205| |**Net income and movement in funds**||928,762| |**Reconciliation of funds:**||| |Fund balances at 1 September 2022||9,745,717| |**Fund balances at 31 August 2023**||10,674,479| - 14 - ## **HILL HOUSE SCHOOL LIMITED** ## **BALANCE SHEET** ## _**AS AT 31 AUGUST 2024**_ |**Notes**
**Fixed assets**
Tangible assets
**15**
**Current assets**
Stocks
**17**
Debtors
**18**
Investments
**19**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**20**
Net current assets
**Total assets less current liabilities**
**Creditors: amounts falling due after**
**more than one year**
**21**
**Net assets**
**The funds of the charity**
Unrestricted funds
**24**|**2024**
**£**
**£**
16,384,517
17,197
447,100
2,110,006
1,895,631
4,469,934
3,775,704
694,230
17,078,747
(5,091,293)
11,987,454
11,987,454
11,987,454|**2023**
**£**
**£**
14,475,389
15,728
452,413
2,018,676
1,414,406
3,901,223
2,611,185
1,290,038
15,765,427
(5,090,948)
10,674,479
10,674,479
10,674,479| |---|---|---| The notes on pages 17 to 30 form part of these financial statements. The financial statements were approved by the trustees on 27 March 2025 Mrs J Fearns **Trustee** Company registration number 00908443 (England and Wales) - 15 - ## **HILL HOUSE SCHOOL LIMITED** ## **STATEMENT OF CASH FLOWS** ## _**FOR THE YEAR ENDED 31 AUGUST 2024**_ ||||**2024**||**2023**| |---|---|---|---|---|---| ||**Notes**|**£**|**£**|**£**|**£**| |**Cash flows from operating activities**|||||| |Cash generated from operations|**29**||2,521,482||1,002,988| |**Investing activities**|||||| |Purchase of tangible fixed assets||(1,795,346)||(1,100,801)|| |Proceeds from disposal of tangible fixed|||||| |assets||24,204||-|| |Monies (invested in) / withdrawn from 95 day|||||| |corporate notice account||(91,330)||(1,003,503)|| |Investment income received||218,294||211,377|| |**Net cash used in investing activities**|||(1,644,178)||(1,892,927)| |**Financing activities**|||||| |Proceeds from new bank loans||-||800,000|| |Repayment of bank loans||(396,079)||(354,884)|| |**Net cash (used in)/generated from**|||||| |**financing activities**|||(396,079)||445,116| |**Net increase/(decrease) in cash and cash**|||||| |**equivalents**|||481,225||(444,823)| |Cash and cash equivalents at beginning of year|||1,414,406||1,859,229| |**Cash and cash equivalents at end of year**|||1,895,631||1,414,406| |**Relating to:**|||||| |Cash at bank and in hand|||1,895,631||1,414,406| The notes on pages 17 to 30 form part of these financial statements. - 16 - ## **HILL HOUSE SCHOOL LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 AUGUST 2024**_ ## **1 Accounting policies** ## **Charity information** Hill House School Limited is a private company limited by guarantee incorporated in England and Wales. Its company number is 00908443 and the registered office is Sixth Avenue, Auckley, Doncaster, DN9 3GG. The charity's principal activity is the provision of educational services. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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)". The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention,modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below. ## **1.2 Going concern** At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The trustees are not aware of any material uncertainties about the charity's ability to continue as a going concern and consequently the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity. ## **1.4 Income** Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. The charity's primary source of income is school's fees and associated activities , net of bursaries and allowances given and VAT where applicable.. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. - 17 - ## **HILL HOUSE SCHOOL LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2024**_ ## **1 Accounting policies** **(Continued)** ## **1.5 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use. The school is registered for VAT and VAT is reclaimed on a limited category of expenditure, the irrecoverable element of VAT is included within the item of expense to which it relates. ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Freehold land and buildings 0.5% & 10% on cost Leasehold land and buildings 0.5% & 10% on cost Fixtures and fittings 33% on cost and 10% on cost Motor vehicles 25% on cost The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. Freehold and long leasehold land is not depreciated. ## **1.7 Impairment of fixed assets** At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). ## **1.8 Stocks** Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. ## **1.9 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. - 18 - ## **HILL HOUSE SCHOOL LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2024**_ ## **1 Accounting policies** ## **(Continued)** ## **1.10 Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Current asset investments are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss includes any dividend or interest earned on the financial asset. All other financial instruments are measured as detailed below. ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled. ## **1.11 Employee benefits** The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.12 Retirement benefits** Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. - 19 - ## **HILL HOUSE SCHOOL LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2024**_ **1 Accounting policies** **(Continued)** ## **1.13 Current asset investments** Investments within current assets are bank deposit accounts that are held on terms whereby they do not meet the criteria to be treated as cash at bank and in hand. The current asset investments are classified at fair value through the profit and loss account (FVTPL). Financial assets classified at their FVTPL are initially recognised at the fair value of the consideration paid. They are subsequently measured at fair value with any resultant gain or loss recognised in the statement of income and retained earnings. ## **1.14 Operating leases** Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease. Rental income from an operating lease is recognised on a straight-line basis over the life of the lease even if payments are not made on that basis. The aggregate cost of any incentives is recognised as a reduction in income over the lease term. Costs incurred in earning the lease income are recognised as an expense ## **2 Critical accounting estimates and judgements** The preparation of financial statements in conformity with FRS 102 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The actual outcome may diverge from these estimates if other assumptions are made, or other conditions arise. ## _Significant judgements_ In the course of preparing the financial statements, no significant judgements have been made in the process of applying the charity's accounting policies, other than those involving estimations that have had a significant effect on the amounts recognised in the financial statements. ## _Key sources of estimation uncertainty_ Accounting estimates and assumptions are made concerning the future and by their nature, will rarely equal the related actual outcome. The charity does not have any key assumptions concerning the future, or other key sources of estimation or uncertainty in the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Notwithstanding this, the following matters should be noted; In relation to the charity's property, plant and equipment useful economic lives and residual value of assets have been established using historical experience and an assessment of the nature of the assets involved, again these estimates may need to be revised as circumstances and technology change. - 20 - ## **HILL HOUSE SCHOOL LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2024**_ ## **3 Income from grants, donations and legacies** |||**Unrestricted**|**Unrestricted**| |---|---|---|---| |||**funds**|**funds**| |||**2024**|**2023**| |||**£**|**£**| ||Donations and gifts|32,983|-| ||Government grants|-|3,000| |||32,983|3,000| |**4**|**Income from charitable activities**||| |||**Unrestricted**|**Unrestricted**| |||**funds**|**funds**| |||**2024**|**2023**| |||**£**|**£**| ||**Teaching Fees**||| ||Tuition fees|9,649,814|8,128,917| ||Nursery fees|328,216|266,464| ||Wrap around and activity weeks|68,721|64,837| |||10,046,751|8,460,218| |**5**|**Income from other trading activities**||| |||**Unrestricted**|**Unrestricted**| |||**funds**|**funds**| |||**2024**|**2023**| |||**£**|**£**| ||Pupil bus fares|172,497|157,007| |**6**|**Income from investments**||| |||**Unrestricted**|**Unrestricted**| |||**funds**|**funds**| |||**2024**|**2023**| |||**£**|**£**| ||Rental income|43,318|164,574| ||Investment interest receivable - 95 day deposit account|91,331|43,077| ||Interest receivable|84,282|37,265| |||218,931|244,916| - 21 - ## **HILL HOUSE SCHOOL LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2024**_ ## **7 Other income** ||**Unrestricted**|**Unrestricted**| |---|---|---| ||**funds**|**funds**| ||**2024**|**2023**| ||**£**|**£**| |Net gain on disposal of tangible fixed assets|6,004|-| |Sundery income|29,125|14,826| ||35,129|14,826| ## **8 Expenditure on charitable activities** |**Direct costs**
Staff costs
Depreciation and impairment
Catering costs
Academic costs & games
Teaching and student other costs
Running of school other costs
Premises costs
Interest payable and similar charges
Supply teaching, staff benefits and associated costs
**Share of support and governance costs (see note 10)**
Governance
**Analysis by fund**
Unrestricted funds|**Teaching**
**2024**
**£**
5,746,840
240,255
624,505
309,484
333,098
567,600
919,287
353,833
88,574
9,183,476
9,840
9,193,316
9,193,316|**Teaching**
**2023**
**£**
5,108,386
242,073
552,219
228,005
273,288
481,995
638,103
323,821
94,145| |---|---|---| |||7,942,035
9,170| |||7,951,205| |||7,951,205| ## **9 Description of charitable activities** ## **Teaching** Teaching represents the income and costs attributable to the schools core activity undertaken in the financial period. - 22 - ## **HILL HOUSE SCHOOL LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2024**_ ## **10 Support costs allocated to activities** |**10**
**Support costs allocated to activities**||| |---|---|---| |Governance costs
**Analysed between:**
Teaching
**Governance costs comprise:**
Audit fees
**11**
**Net movement in funds**
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements
Depreciation of owned tangible fixed assets
Profit on disposal of tangible fixed assets
Operating lease charges|**2024**
**£**
9,840
9,840
**2024**
**£**
9,840
9,840
**2024**
**£**
9,840
240,255
(6,004)
74,687|**2023**
**£**
9,170| |||9,170| |||**2023**
**£**
9,170| |||9,170| |||**2023**
**£**
9,170
242,073
-
65,923| ## **12 Trustees** None of the trustees received any expenses, remuneration or benefits from the charity during this year or the prior year. ## **13 Employees** The average monthly number of employees during the year was: |Teaching
Administration
Maintenance & Drivers
Total|**2024**
**Number**
102
17
19
138|**2023**
**Number**
97
16
19| |---|---|---| |||132| - 23 - ## **HILL HOUSE SCHOOL LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2024**_ |**13**
**Employees**
**Employment costs**
Wages and salaries
Social security costs
Deffined contribution pension costs|**(Continued)**
**2024**
**2023**
**£**
**£**
4,497,492
4,033,966
479,940
396,610
769,408
677,810
5,746,840
5,108,386|**(Continued)**
**2024**
**2023**
**£**
**£**
4,497,492
4,033,966
479,940
396,610
769,408
677,810
5,746,840
5,108,386| |---|---|---| |||5,108,386| Redundancy payments totalling £Nil (2023 - £4,823) were included above. In addition to the employment costs above staff benefits of £25,523 (2023 - £25,523) and life insurance contributions of £37,882 (2023 - £29,331) were paid during the year. The number of employees whose annual remuneration was more than £60,000 is as follows: |is as follows:||| |---|---|---| ||**2024**|**2023**| ||**Number**|**Number**| |£60,001 - £70,000|2|1| |£70,001 - £80,000|-|2| |£80,001 - £90,000|1|1| |£90,001 - £100,000|2|1| |£150,001 - £160,000|1|1| ## **Remuneration of key management personnel** The key management personnel comprises the headmaster and the management team as listed in the trustee' report. The total amount of employee remuneration (including employer pension contributions) received by key management personnel for their services to the charity was £806,969 (2023 - £697,015). In addition to this Employers NIC paid to key management personnel in the year amounted to £82,514. ## **14 Taxation** The charity is exempt from taxation on its activities because all its income is applied for charitable purposes. - 24 - ## **HILL HOUSE SCHOOL LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2024**_ |**15**
**Tangible fixed assets**
**Freehold land**
**and buildings**
**£**
**Cost**
At 1 September 2023
1,497,907
Additions
22,459
Disposals
-
At 31 August 2024
1,520,366
**Depreciation and impairment**
At 1 September 2023
310,669
Depreciation charged in the year
14,282
At 31 August 2024
324,951
**Carrying amount**
At 31 August 2024
1,195,415
At 31 August 2023
1,187,239|**Leasehold**
**land and**
**buildings**
**£**
13,518,009
2,052,908
-
15,570,917
782,329
92,469
874,798
14,696,119
12,735,680|**Fixtures and**
**fittings**
**£**
1,624,674
67,016
-
1,691,690
1,090,403
130,984
1,221,387
470,303
534,270|**Motor**
**vehicles**
**£**
18,200
25,200
(18,200)
25,200
-
2,520
2,520
22,680
18,200|**Total**
**£**
16,658,790
2,167,583
(18,200)| |---|---|---|---|---| |||||18,808,173| |||||2,183,401
240,255| |||||2,423,656| |||||16,384,517| |||||14,475,389| Freehold and long leasehold land amounting to £1,473,833 are not depreciated. As detailed in note 22 of the accounts the charity's bank borrowings are secured by charges over the above tangible fixed assets. ## **16 Financial instruments** |**16**
**Financial instruments**||| |---|---|---| |**Carrying amount of financial assets**
Instruments measured at fair value through profit or loss
**17**
**Stocks**
Food and consumables|**2024**
**£**
2,110,006
**2024**
**£**
17,197|**2023**
**£**
2,018,676| |||**2023**
**£**
15,728| - 25 - ## **HILL HOUSE SCHOOL LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2024**_ |**18**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income
**19**
**Current asset investments**
Other investments
The current asset investment is a bank term deposit.
**20**
**Creditors: amounts falling due within one year**
**Notes**
Bank loans
**22**
Other taxation and social security
Trade creditors
Term fees paid in advance
Other creditors
Accruals and deferred income|**2024**
**£**
204,897
39,828
202,375
447,100
**2024**
**£**
2,110,006|**2023**
**£**
201,331
36,133
214,949| |---|---|---| |||452,413| |||**2023**
**£**
2,018,676| |||| |||| ||**2024**
**£**
981,614
124,060
241,554
1,041,606
469,510
917,360
3,775,704|**2023**
**£**
389,495
105,378
229,991
955,403
487,961
442,957| |||2,611,185| Included within accruals and deferred income are deferred school fees amounting to £443,788 (2023 - £24,312). ## **21 Creditors: amounts falling due after more than one year** |**Notes**
Bank loans
**22**
Deferred income- school fees|**2024**
**£**
4,102,750
988,543
5,091,293|**2023**
**£**
5,090,948
-| |---|---|---| |||5,090,948| - 26 - ## **HILL HOUSE SCHOOL LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2024**_ ## **22 Loans and overdrafts** |Bank loans
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments|**2024**
**£**
5,084,364
981,614
4,102,750
1,944,996|**2023**
**£**
5,480,443| |---|---|---| |||389,495
5,090,948| |||2,340,513| The bank loans are secured by a debenture created 20 November 2007 giving a fixed and floating charge over the assets of the charity together with the following: a) A legal mortgage created 16 December 2011 over land at the south side of Bank End Road, Blaxton. b) A fixed and floating charge over Oxford House land and premises created 22 January 2020. c) A legal mortgage created 20 November 2007 over the former officers mess and adjoining land at Robin Hood Airport, Doncaster. Interest is charged on the bank loans at various fixed and variable rates. |**23**|**Retirement benefit schemes**||| |---|---|---|---| |||**2024**|**2023**| ||**Defined contribution schemes**|**£**|**£**| ||Charge to profit or loss in respect of defined contribution schemes|769,408|677,810| The charity operates defined contribution pension schemes for all qualifying employees. The assets of the schemes are held separately from those of the charity in independently administered funds. - 27 - ## **HILL HOUSE SCHOOL LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2024**_ ## **24 Unrestricted funds** The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes. |General development fund
General funds
General funds|**At 1**
**September**
**2023**
-
10,674,479
10,674,479
**At 1**
**September**
**2022**
9,745,717|**Incoming**
**resources**
37,607
10,468,684
10,506,291
**Incoming**
**resources**
8,879,967|**Resources**
**expended**
**At 31 August**
**2024**
(14,399)
23,208
(9,178,917)
11,964,246
(9,193,316)
11,987,454
**Resources**
**expended**
**At 31 August**
**2023**
(7,951,205)
10,674,479| |---|---|---|---| The general development fund's primary purpose is to provide ancillary help and goods towards the general benefit and development of the students, ## **25 Analysis of net assets between funds** ||**Unrestricted**| |---|---| ||**funds**| ||**2024**| ||**£**| |**Fund balances at 31 August 2024 are represented by:**|| |Tangible assets|16,384,517| |Current assets/(liabilities)|694,230| |Long term liabilities|(5,091,293)| ||11,987,454| ||**Unrestricted**| ||**funds**| ||**2023**| ||**£**| |**Fund balances at 31 August 2023 are represented by:**|| |Tangible assets|14,475,389| |Current assets/(liabilities)|1,290,038| |Long term liabilities|(5,090,948)| ||10,674,479| - 28 - ## **HILL HOUSE SCHOOL LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2024**_ ## **26 Operating lease commitments** ## **Lessee** The operating leases consists of 7 leasesl, which are payable to unconnected third parties. The leases are negotiated over terms of 3-5 years and rentals are fixed. At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: |Within one year
Between two and five years|**2024**
**£**
32,584
41,958
74,542|**2023**
**£**
65,000
36,838| |---|---|---| |||101,838| In addition to the above the charity is liable to pay an annual ground rent of £2,250, plus VAT as applicable, in respect of leasehold land and property held by the charity and included within fixed assets. The ground rent of £2,250 plus VAT due on two 999 land and property leases (£1,125 per lease) which commenced on the 20 November 2007 and 31 March 2015. The annual rents are both due for review on the 25 March 2037 and every 30 years thereafter. The rent will be increased by £1,125 plus VAT at each review (£2,250 plus VAT in total). The present value of the above future lease payments were determined as immaterial on inception and the ground rent has been charged as a cost annually to the income and expenditure account. ## **Lessor** The charity rented out Oxford house on short term annual tenancies with a three month notice period. Notice was given to all tenants at the beginning of the 2024 financial year. The property is now utilised for charitable purposes only. ## **27 Capital commitments** Amounts contracted for but not provided in the financial statements: ||**2024**|**2023**| |---|---|---| ||**£**|**£**| |Acquisition of property, plant and equipment|682,423|-| At the financial year end the charity had authorised further capital expenditure, which had not been contracted for at the year end, amounting to £414,113. - 29 - ## **HILL HOUSE SCHOOL LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2024**_ ## **28 Related party transactions** During the prior year the charity acquired a vehicle from a company, Select Electrical Limited, where one of the trustees is a director/shareholder, for its then market value of £18,200. There were no material disclosable related party transactions during the current year. |**29**
**Cash generated from operations**
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Gain on disposal of tangible fixed assets
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in stocks
Decrease/(increase) in debtors
Increase in creditors
Increase in creditors due after one year
**Cash generated from operations**
**30**
**Analysis of changes in net (debt)/funds**
**At 1 September**
**2023**
**£**
Cash at bank and in hand
1,414,406
Loans falling due within one year
(389,495)
Loans falling due after more than one year
(5,090,948)
(4,066,037)|**2024**
**2023**
**£**
**£**
1,312,975
928,762
(218,931)
(244,916)
(6,004)
-
240,255
242,073
(1,469)
1,680
5,950
(46,177)
200,163
121,566
988,543
-
2,521,482
1,002,988
**Cash flows**
**Other non-cash**
**changes**
**At 31 August**
**2024**
**£**
**£**
**£**
481,225
-
1,895,631
396,079
(988,198)
(981,614)
-
988,198
(4,102,750)
877,304
-
(3,188,733)| |---|---| - 30 -