Charity Registration No. 800284 Company Reglstratlon No. 2270044 (England and Walés) HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 I cuivis DOCTRINA REFERTUR AE3QMEJLI 3110512025 COMPANIES HOUSE A08
114
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE LEGAL AND ADMINISTRATIVE INFORMATION Trustees C Aldridge H Davies N Newman A Brovm A Skinnard D Smith Mr E Nwosu Mr S Tanna P Fraley (Appointed 1 December 2023) Secretary and Bursar G Bunning Head Teacher E Rees Charlty number 800284 Company number 2270044 Regl8tered offlce Hornsby House School Hearnville Road London SW12 8RS Audltor 14fykrd Williams Limited Belgrave House 3943 Monument Hill Vveybridge Surrey Kr13 8RN Bankers Child & Co 8ank8r8 1 Fleet street EC4Y 1 BD Solicltors Barlow Robbins Solicitors The Oriel Sydenham Road Guildford Surrey GU1 3SR
HORNSBY HOUSE EDUCATIONAL TRUST, COMPANY LIMITED BY GUARANTEE CONTENTS Pag• Trustees, report Independent auditorfs report 12-15 Statement of financial activities 16 statement of financlal posltlon 17 Statement of cash flow$ 18 Notes to the financial statements 19-30
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES. REPORT {INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 AUGUST 2024 The Trustees, who are also Directors for the purposes of company law, present their report and the financial statements of the company for the year ended 31 August 2024. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the School's gov8ming document, the Companies Acl 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and R8public of Ireland (FRS 102)° (as amended for accounling periods commencing from 1 January 20161. Objectlves and activities The School place5 equal emphasis on strategic aims.. flrst. to encourage every pupll to attain the highest academic standards according to his or her ability (the opportunity to benefit from the School's extensive c¢> curricular activities play a part in this),. second, in terms of pastoral care (a longstanding characteristic of the School), to ensure that all pupils are treated equally, with respect and are valued. We have four school aims which capture the areas of a child's learning and development which matter most to us at Homsby House School. Pastoral To promote kindness, enhance self-esteem and the ability to value and respect each person's own worth through a caring, nurturing and secure environment. Currlculum and Co-currlculum - To provide a broad, balanced and differentialed currlculum and co-curriculum which 15 accessible to all children and fosters independent and creative thinkers. Equallty, dlverslty and Incluslon To establlsh a culture of inclusion and equal opportunity, within which all members of the school and wider community can thrive. Preparatlon for Ilfe -To prepare happy and confident children for the next stage of thelr formal education and life beyond. Our core values - children are encouraged Ic work together and look after each other. Our three core values are deliberately simple and concise so that all members of our community can understand them. They sit at the heart of Hornsby life and govern all thal we do. Our Core Values HEAD HEART SPIRIT Achievement Being kind Trying your best tl Excellent work Listening Joiiiin¥ in Being independent Courtesy and inanners Friendship Sharins and iiiclusive Hglpful Effort Resilience Creativity Trying iiew tliings
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES, REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 AUGUST 2024 Prlncipal actlvlty Homsby House School's prinapal activity is the provision of a non-selective day school education for boys and glrls aged 4 - 11 years. The School is currently fully subscribed. Object5ves for the year The Board's main objective has been to continue to enhance academic, sportlng, and co-currlcular activities, standards and facilities, including the provision of financial support to those who cannot afford to pay tuition fees. without detriment to standards of pastoral care. The School has achieved this by maintalning a hlgh teacher-ttrpupil ratio., by investing in staff and facilitle8', and by tailoring the School's services where appropriate lo suit changing individual or collective needs. The Trustees have paid due regard lo guidance issued by the Chariiy Commission in deciding what activities Ihe School should undertake. Public beneflt The Charities Act 2006 made changes which affect the school, prlncipally removing the presumption In law that education Is for public benefit. The effect of this is a requirement that educ8tion81 charities dernonstrate the public benefit they provide. The Charity Commission has provided guidelines on the changes together with an analysis of the law affecting charities. In meeting the School's objects, the publlc benefit aim of Hornsby House School is to provide a firsl-class independent educalion, both through slrong academic tuition and through developing wider sporting, artistic and social skills in all its pupils. This is intended to create an environment in which all pupils can develop their full potential, thus building their self.confidence and encouraging a desire lo contribute to the wider community. In furtherance of these aims, the Board has complied with the duty in s. 1715) of Ihe Charities Acl 2011 to have due regard to the Charity Commission's published general and relevant sul>sector guidance concerning the operation of the Public Benefit requirement under that Act. In the academic year 2023- 2024 Hom$by House School provided education to 442 pupils who would otherwse be educated in maintained schools at public expense. However the Board recognises that it has wider responsibilities to the local community. There are three additional elements in the public benefit it provides.. bursaries, outreach projects and community projects.
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES, REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 AUGUST 2024 Grant Maklng In carrying out this charitable duty, the Governors are committed to the School's contribution to the wider community and continue to maintain a separate designated fund to support bursaries and outreach projects in future years. The Governors are committed to making available the distinctive all-round education offered by Homsby House to children likely lo benefil from the School's wider extra-curricular activilies irrespective of financial circumstances. The School has a Scholarship and Bursary Scheme aimed at children whose families would not olherwise be able to Consider private education and are actively seeking applications for these bursaries through external advertising and promotion on our website. Applications are encouraged from applicants from diverse religious, ethnic and cultural backgrounds. All applications for bursaries are based on personal and means-lested circumstances. The School uses an outside company, Bursary Adminislralion Ltd to assess all applications. These are then reviewed by the Headmaster, the Bursar, and the Board of Governors. Depending on need, bursaries may include support for uniform, lunch costs and extra-curricular activities. In 202312024 the School supported three puplls wilh means tested bursaries, varying in value from 400/0 to 100% of annual fees of which one is life-changing, receiving 1000/0 remission. Homsby House has a longstanding collaboration with the Institute of Education and The University of Roehampton, offering work placements during the school year to students unéertaking the PGCE. The School also participates in the Schools Direct Programme, an employment based route into teaching for experienced graduates leading to Quallfied Teaching Status. The school's public benefit pragramme 15 managed and co-ordinated by Mr Mark Peters, Deputy Head, External Relations, who is working with local primary schools and sports clubs to develop a range of initiatives in the local community. Our mission is to promote, develop and deliver learning opportunities and experlences open to all through range of activities to enrich learning across the curriculum and beyond. During the past few of years we have built excellent working partnershipy in the local community wilh both Lark Hall Pnmary School In Stockwell and Trinity St Mary's Primary School in Balham to develop learning opportunities for staff and pupils. A significant number of children at both schools are in receipt of free school meals and over 480h of pupils at both schools are eligible for the pupil premium grant for disadvantaged pupils. Homsby House contlnues the Page Turners initiative to support children from Trinlty St Mary's Primary School, whose learning was severely disrupted by the COVID pandemlc. Every Saturday moming, children have the opportunity to read with Hornsby House parents. The school is currently exploring the possibility of working wilh other independent and state schools to expand and accommodate the needs of more pupils. The cycling programme we run for Larkhall Primary School pupils at Herne Hill Velodrome is now in its third year. This is a sport and venue to which the children who attend would ordinarily not have access. Hornsby House School continues its partnership with Hillbrook School, donating to the School a contribution for four Coram Beanstalk reading helpers. Stralegic report The description under the headings "Achievements and performance" and "Reserves policy" meel the company law requirements for the Trustees to present a strategic report.
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES, REPORT {CONTINUED){INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 AUGUST 2024 Achievements and performance Operational performance of the School Homsby House enjoyed another successful year. The School hosted several Multicultural events. A Diwali assembly was led by parents and pupils participated in a workshop to celebrate the rich cultural heritage of the Hornsby community. The Head Teacher from Wenlin School visited and led an assembly to celebrate Chinese New Year and to talk to the children about the culture and traditions surrounding how new year is celebrated in China. This was followed by a whole school Chlnese Lion Dance led by the Chung Ching London Lion Dance. The Governors provided support and guidance to the school throughout the year. More frequent visits by the Governors to the school increased their visibility and further cemented relationships with the staff and parent body. The School continues to fulfil. its aim of providing a broad, balanced and differentiated curriculum and co- curriculum for all children. The School was visited by the Independent Schools Inspectorate in March 2024 and received a positive report. ISI inspects against the Independent School Standards and other relevant regulations, which are set by parliament. The Inspection found that the School is fully compliant against all standards. The report, based on evidence from the three day inspection and was the first time Hornsby House has been inspected under the new ISI framework launched in September 2023. Reflecting on the overwhelmingly p051tive report, it is particularly rewarding to see how inspectors noted that Pupils receive a broad and balanced education, with effectlve teaching, inclusive sports programs, and diverse extracurricular activities fostering a love of learning. Personal, social, health, and economic education {PSHE) further promotes mutual respect, self-confidence, and positive relationships. These f5ndings align with our objectives, reflecting our commitment to providing a supportive and enriching learning environment for all pupils. The School's excellent reputation in the area has ensured strong demand for places and healthy numbers on the roll. The School remains committed to promoting the children's core values and developing social skills that will equip them well in life beyond primary school. This is achieved through an exciting and relevant curriculum and Ihe provision of a wide range of before and after school clubs, giving children opportunitles to work as a team and learn new skills. The location of the School also allows for a rlch and varied programme of educational trips and visiting speakers. The children are supported by highly qualified and motivated staff. The provision of excellent resources and facilities remains a key priority for new investment. The ratio of staff to pupils remains excellent. The School does not select children for Reception on the basis of academic assessment but according to a first come, first served registration process. The academic process of the School is impressive, pupils receiving a number of offers from Some of the most demanding schools in the country. Hornsby House enjoyed another extremely strong year at 11 +. All pupils secured a place at their choice of preparatory or senior school and significant number of pupils have again gained academic, sports, art and drama scholarships and exhibitions. The school's success is dependent on its financlal stability. To this end, the principal financial indlcators targeted and monitored by the Governors include current and prospeclive pupil numbers, annual surplus, and cash. The results for the year are set out in detail on page 16. Wth income of £9,263,344 the School generated an operating surplus of 1,082,275 (2023.. £903,877). This surplus has been applied primarily in financing new capital expendlture. The reserves of the School represent the unrestricted funds which the Governors are free to use in accordance with its charitable objects. The reserves held are required to finance the freehold property and to cover normal fluctuations in working capital. The reserves have accumulated to £12,879,844 and reflect the significant cost of the School's freehold land and buildings. Funding of recent capital projects and necessary day-to-day working capital is being met by careful management of the School's cash resources, together with additional funding from the School's bankers where necessary.
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES. REPORT {CONTINUED)(INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 AUGUST 2024 Fund-raising actlvltles Most of the School's income is from school fees and other associated revenue. The Trust promotes and raises funds for local charities and other organisations, in ils ongoing endeavour to widen public access to ils schooling, to oplimise the use of its cultural and sporting facilities and to awaken in its pupils a keen awareness of the social conlext within which they and the School exist. All fundraising activity across the Trust continues to be managed in an open and transparent fashion with the clear objective of being respectful. responsibSe and accountable so that potential and existing supporters have complete confidence in their giving to the Trust. There were no complaints received by the Trust during the reporting period about its fundraising practices. The School distributed funds for other charities totalling £9,760, (2023.. £14,273) during the year. Our chosen charities this academic year were Little Village, Ickle Pickles and Play It Forward. Children enjoyed learning about the aims of the charity which they were helping and raised funds Ihrough a range of exciting activities: Charlty Little Village 20241£) 2,501 Ickle Pickles 1,665 Play it Forward 1,594 Coram Beanstalk 4,000 Donatlons vla onllne Plarforms Ickl8 Pickles 174 Play it Forward 2,191 Total online donations In addition to the funcls donated by the School, Ihe Hornsby House School PTA organlsed events throughoLrt the year, donating £79,000 lo various local charilies.
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES. REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 AUGUST 2024 Community Relalionships In the local wider community, the Deputy Head, Exlernal Relations, Is Chair of the Governing Body at Larkhall Primary School and the Assislant Head, Academic, serves on the Governing Body of a local maintained primary school. The School supported Trinity Fields Trust (Charity no. 10608131 in its negotiations with Sir Walter St. John's Educational Charity to negotiate a new lease and continues to support the Trust via participation in an annual rental agreement to use its playing fields. The income generated by this agreement is sulficient to ensure that the Trust's normal operating costs are substantially met year on year enabling the Trust to build a more broadly based oulreach programme for children and young persons under the age of 25 years who are resident in the London Boroughs of Wandsworth and Lambeth. It is hoped that there may be the opportunity to develop the Fields further in the future and improve the facilities. Although no definitive agreement has been reached, Hornsby House has agreed in principle that they viill contribute up to £250,000 to the first phase of the development, alongside contributions of £500,000 each from the Trust and another local school. Every year the school holds a Harvest Festival Celebration in which pupils bring in food donations for Spires, South London charity supporting, homeless and vulnerably housed people in our local communities and staff are encouraged to make a Secret Santa donation to support Ihe charity at Christmas. The Eco Committee is working with local community group Beautify Balham to malnlain a Ilttle triangular urban garden close to Hornsby House. Reserves pollcy The Charlty's powers of investment are governed by the Trust Act 2000. The Board continues to keep under review Ihe investment risks and rewards in the current state of the market and its policy is to put short-tem cash balances on bank deposit. The Trustees have assessed the major risks to which the School is exposed and are satisfied that Systems are in place lo mltigate exposure to the major risks. The Governors have maintained their commitment to the improvement of the School's infrastructure and retaining a minimum of resenrfes to ensure adequate financial stability and the means to meel its charitable objective for the foreseeable future, Plans lor the future The Board is constantly striving to enhance and develop the School and its links with the local community and continues its robust oversight of the school. Evaluation and improvements to governance are part of the school, strategic plan. The School has a long-term rental agreement with a local sports club Battersea Ironsides. As part of the agreement, Ihe School funded a 4G Aslroturf on the site and the improvemenl of the nelball courts. This agreement secured high-quality sports facilities for existing and lulure generations of Hornsby House pupils, and the local community and ensures that both the School and the Club can continue to provide excellent coaching and promote an inclusive sporting community for children and adults. The School continues to invest significantly In ensuring that the IT infrastructure is robust and hardware creates the enabling leaming environment needed to equip our puplls for a fasl-changing technological worfd.
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES, REPORT {CONTINUED)(INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 AUGUST 2024 Envlronmental responslbllity Homsby House recognise that environmental responsibility is an important aspect of running a successful long- term business and the commitment lo sustainability is fundamental to our educational ethas. The Environmental and Sustainability Policy forms part of the School Development Plan and will be regularly reviewed and amended according to the changing nature of our operalions. The School uses resources such as the Schools Aclion Climate Aclion Planner to help identify actions they can take to reduce the environmental impact and monitor progress towards the objective of reducing our carbon footprint. Since 2017 Hornsby House has sourced 1000/0 of its electricity supply from renewable sources. In February 2022 the School installed 8 25kW solar PV system on one building and will consider further inslallations of solar PV on other buildings on the sile if the roofs have a suitable orientation. There is a rolling programme to replace our lighting and we have upgraded approximately 700A of lighting to LED, installed motion sensor light switches to ensure lights are not left on in unoccupied rooms, Sensor taps have been installed in washrooms to reduce water waste. The original school building was built circa 1905 and is constructed of single-skin brick work, with high ceilings and single-glazing. which are difficult to heal in winter and maintain an ambient temperature in the summer. The level of roof space insulation is unknown but assumed to be much less than the current standard recommendation. This is an area that the School is actively addressing with its architects and other professional advisors as we plan for the future. Future Development The School has planning permission to extend Ihe Main School Building to the party wall into the space created by the removal of the existing Portakabins, whilst rotating the hall 90 degrees. This will increase the size of the auditorium by approximately 500/0. The projecl will focus on sustainatility, both in temis of how Ihe project is built and also for the wder life cycle and operations of Ihe school. The existing building will be the subject of extensive reftjrbishment. This will include the installation of a new more efficienl heating system combining air source heal pumps and solar panels, improving insulation, and replacing windows, internal and external doors on the ground Iloor. This project is now in progress. The most slgnificanl development is confirmation of the construction of the modular classroom block at Chestnut Grove which will allow us to relocate from the main building for the duration of the project. Dlverslty and Incluslon At Hornsby House we firmly believe that embracing diversity and building inclusion into everything we do is key to our success as a school and helps us connect with the communities we serve. The School slrives to make progress year on year and in September 2021 we launched our ambitious Diversity and Inclusion Development Plan to run alongside our Outreach programme. The aim is to develop practical solutions to address identified diversity and, indusion issues and create an environment in which cultural diversity and individual differences are positively valued within the Hornsby Community and to embed in all aspects of school life. We continue to expand our resources wthin the curriculum and across the school to enhance representation. The art department implemented a school-wide project inspired by the works of artists Veronica Ryan and Rachel Jones. Heritage displays were established in classrooms, and the music department revised its schernes of work to incorporate inspiring music from diverse global traditions. We have developed a strong relationship with Paralympian Blaine Hunt, who we sponsored through various fundraising events involving the children. Blaine had an impressive summer, retaining his wodd title in the C5 1 km time trial in Rio de Janeiro and competing in his first Paralympics and winning a silver medal in Pari5. He will be visiting the school in the new academic year for a Q&A session with the students and to share insights about his journey, his experiences in Paris, and the increased recognition he has received since his achievement. The Governors acknowledge that Black voice5 are underrepresented in the education sector and will continue to review the recruitment process to focus on increasing the racial diversity of the Governing Body and within the School. The Hornsby House School parent D&1 committee continue to meet regularly, to discuss the progress we are making, and we will incorporate ideas from their expertise at schools or within industry to underpin our strategy, as we move forward with our joumey.
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES, REPORT (CONTINUED)(INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 AUGUST 2024 Structurei governance and management The School is governed by the provisions of the Articles of Association and constitutes a Limited Company, limiled by guarantee, as defined by the Companies Act 2006. The word "Limited" is omitted by licence of the Department of Trade & Industry. The Trustees, who are also the Directors for the purpose of company law, and who served during the year were.. C Aldridge H D8vles N Newman A 8rown A Skinnard D Smith Mr E Nwosu Mr S Tanna P Fraley (Appointed 1 December 2023) Governors are elected at a meeting of the Board of Governors on the basls of nomlnalions recelved from the Governors that meet the Board's criteria concerning eligibility, competence, specialist skills, experience and residence in proximity to the School. The Governors recognise that a diverse Board is more likely to contain a broader range of knowledge, skills and experience than one which is more narrowly based. The Board continues to focus on Increasing the diversity of the Governing Body. Governors serve for 8 tem of three years and are eligible to stand for re-election. This may be extended to retain experience for a period of time, al the discretion of and subject lo any conditions imposed by the Board of Governors. In accordance with the provision of Clause 36 of the Articles ofA8sociatlon, the following G@vernor is due to retire by rolation.. David Smith Three Governors have been in office for longer than the nine Ilhree times three) years recommended by Lord Hodgson's review of the Charities Act 2006. Transitional arrangements are being pul in place to attend to this matter. New Governors are inducted Into the workings of Hornsby House as a school and also a Registered Charity, including its Board policy and procedures, via a formal process. The induction pack provided to Governors includes a number of School documents and policies including: Articles ofAssocialion The essential trustee- Charities Commission Guidelines for governors- AGBIS Six insights for trustees - Charities Commission Keeping Children Safe in Education Papers in respect of the most recent Governing Body Meeting School development plan As part of continuous professional development, individual Governor5 regularly attend tailored seminars in key a5pe¢ls of school governance and management run by AGBIS IAsso¢ialion of Governing Bodies of Independent Schools), IAPS (Independent Association of Preparatory Schools) and ISBA {Independent Schools Bursars, Association) or other appropriate organisations.
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES. REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 AUGUST 2024 Rlsk management The Board has a duty to identify and review the risks to which the Charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The Board monitors the School's activlties on a continuous basis, particularly with regard to major risks that might conceivably arise as identified in the School's Risk Management Policy document, as well as the systems and proc8dures established to manage them. The Board also monitors the effectlV8ness of internal control processes and other issues, including insurance cover where appropriate, by which those risks can best be mitigated. A fonnal review of risk management processes is undertaken by the Board on an annual basis. The Governors have identlfied the following risks to vthich the School is currently exposed., Governance, including compliance with applicabl• regulations and legislalion Safeguarding of pupils Financial control Disaster planning Loss of reputation Health and safety Recruilmenl and retenliori of quality staff Political position ol independent schools To mitigate these risks, the Board has in place key controls, which include: Formal mechanisms for the operation of the Governing Body Safeguarding and vetting procedures as required by law for the protectlon of children and vulnerable adults Regular review of formal written policies and procedures Comprehensive strategic planning. budgeting and accounting procedur¢$ Risk assessments for individual activities and departments Financial and legal advice, taken as required The current financial and political climate has raised a number of issues that the GovernoT5 are moniloring. The introduction of VAT on tuition fees and the withdrawal of business rates relief for independent schools are potential risks. Acknowledging the challenges associated wAth the cost of TPS membership, the School closed membership of the TPS for new members of staff. This came into effect on 1st September 2023. The School also concluded a formal consultation proce55 wilh teaching staff to limit the employer contribution to 23.68 % , with any future contribution rate rises being met by the employee. The pressures of inflation on the economy and its impact on salaries and costs has also been monitored and budgeted for. The Governors continue to work towards solutions and to financially mitigate and plan for these impacts while being mindful ol financial pressures on parents.
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES. REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 AUGUST 2024 Organisational management The Board meets at least three times a year lo determine the general policy of the Charity and review its overall management and control, for which it is legally responsible. The work of implementing most of the Board's policies is carried out at these meetings when budgets and annual accounts and reports are also reviewed. The Chair and Head meet on a termly basis, Ihe designated safeguarding Governor regularly meets With the Designated Safeguarding Lead and the Finance Governor meets with the Bursar prior to the Govemors, meeting. All Governors are encouraged to visit the School to observe lessons and meet staff on a regular basis. The day-to-day running of the School is delegated to the Head and the Bursar, supported by other teaching members of the Senior Leadership Team comprising the Deputy Head (Pastorall, Deputy Head (External Relations), and the Deputy Head (Academic). Management structures have been developed to provide regular forums for the discusslon of academic, pastoral and financial matters. Staff remuneralion is reviewed by the Board al the Spring Term budget meeting with the policy objective of providing appropriate incentives to encourage enhanced performance and of rewarding, fairly and responsibly, individual contributions to the School's success. In agreeing remuneralion levels, reference is Made to comparisons with other independent schools and other benchmarking data to ensure the School remains Sensitive to the broader issues of pay and employment condition5 elsewhere. Organls3tional stru¢tur• and ralatlonshlps Hornsby House School is an active member ol Ihe Independent Association of Preparatory Schools {IAPS) whose role is Ihe promotion and maintenance of standards in preparalory schools. Hornsby House also takes part in SAPS peer group studies for the evaluation of quality and performance-improvement methods. The School also subscribes to a number of other organisations relating to independent schools, education. Homsby House benefits from the generosity of a thnving Parents, Association (the HHS PTA) which supports the School's vibrant, happy community by organi5ing numerous fundraising and social events for parents, teachers and pupils. such as a Christmas Market, Qulz Supper and Summer Fete. Their dose support is gladly acknowledged and appreciated. Employee Involvement The School supports all slaff by investing in Iraining, development, and diversity and Inclusion. An annual confidential staff survey helps measure and Monitor progress and enables Hornsby House to focus on Ihe tangible and practical actions we can take to support a whole school approach to mental health and wellbeing. All staff have access to a free and confidenlial, Employee Assistance Programme (EAP) from Education Support Partnership (ESP), a charity that provides employee support services for anyone working in education. All staff are encouraged to be involved in school events. Teachers are also expected to play an important role in the School's community life by becoming associated with one of the six Houses within the school, planning and taking part in events such as educational trips (including residential trips when appropriate), assemblies and other more informal social events. Information of matters of concern to employees is given through weekly staff meetings which seek to achieve a comTnon awareness on the part of all employees of the socio-economic and financial factors affecting the School's performance. At 31 August 2024, the School employed a total of 79, (FTE 71), teachers and asslstant teaching staff and 13, (FTE 11), support staff. 10-
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES. REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 AUGUST 2024 Statement of Trustees, responslbllities The trustees, who are also directors of Hornsby House Educational Trust for the purposes of company law, are responsible for preparing the Trustees, Annual Report, including the Strategic 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 Iwstees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing 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 2015 IFRS 1021. make judgements and eslimales that are reasonable and prudent., stale whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements., prepare the financial st81ements on the going concern basis unless it is inappropriate to presume that the charitable company will conlinue in operation. The trustees are responsible for keeping adequale accounting records that disclose with reasonable accuracy at any tlme the financial position of Ihe charitable company and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Audltor The auditor, Ward Williams Limited, is deemed to be reappointed under section 487(21 of the Companies Act 2006. DlJclo8ur• of Informatlon to audltor Each of the Trustees has confirmed thal there is no information of which they are aware which is relevant to the audll, bul of which the auditor is unaware. They have further Confirmed that they have taken appropriate steps to identify such relevant information and lo establish that the audilor is aware of such information. The Trustees, report, including the strategic report, was approved by the Board of Trustees, C Aldridge Trustee £*lslk>Zf 11
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF HORNSBY HOUSE EDUCATIONAL TRUST Opinion We have audited the financial statements ol Hornsby House Educational Trust (the 'School') lor the year ended 31 August 2024 which comprise the statement of financial activities, the statement of financial position, the statement ol cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and Uniled Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applic8ble 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 applicatlon 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 Companies Act 2006. Basls for oplnion We conducted our audit In accordance with Internation21 Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Audilorfs responsibilities for the audit of the accounts section of our report. We are independent of Ihe School in accordance with the ethical requirements Ihat are relevant to our audit of the accounts in the UK, including the FRC'S Ethical Standard. and we have lulfilled our other ethical responsibilities in accordance with these requirements. We believe thal the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relatlng to goSng concern In auditing the financial statements, we have concluded that the trustees, use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any materlal uncertalnties relating to events or conditlon5 that, individually or collectively, may cast significant doubl on the Schools's ability lo continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilitles and the responsibllities of the trustees with respect to going conc8m are described in the relevant section5 of this report. Other informatlon The trustees are responsible for the other information. The other information comprises the infomiation included in the trustees, annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial slatements does not cover the olher information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is malerially inconsistent with the financial Statements or our knowledge obtained in the audit or othernise appears to be materially mi5Stated. If we identify such material incansistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misslaternent of the other information. If, based on the work we have performed, we conclude that there is a material misstatement ol this other information, we are required to report that fact. We have nothing to report In this regard. 12-
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED) . TO THE TRUSTEES OF HORNSBY HOUSE EDUCATIONAL TRUST Matters on whlch we are requlred to report by exception We have nothing to report in respecl of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require u5 to report to you if, in our opinion.. the information given in the financial statements is inconsistent in any material respect with the Trustees, report., or sufficient accounting records have not been kept,. or the financi81 statements are not in agreement with the accountlng records., or we have not received all the infomiation and explanats'ons we require for our audit. Responslbllltles of Trustees As explained more fully in the trustees, responsibilities statement sel out on page 11, the trustees are responsible for the preparBlion of financial statements which give a true and fair view, and for such internal control as Ihe trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due lo fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group's 8nd parent charity's ability to continue as a going concern, disclosing, as applicable, matters related lo 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 realistlc 8lternative but to do so. 13-
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF HORNS8Y HOUSE EDUCATIONAL TRUST Auditor's responslbllities for the audit of the financial statements We have been appointed as auditors under section 144 of the Charities Acl 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are lo oblain reasonable assurance about whether the financial statemenls as a whole are free from material mlsslatement, 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. Misstalemenls can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, induding fraud, are instances of non-compliance with laws and regulations. We design procedures in line wilh our responsibilities, outlined above, to detect material misstalements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. We obtained an understanding of Ihe legal and regulatory frameworks applicable to the charity and the sector in which they operate. We determined that th8 following wer8 most significant.. the Companies Act 2006, the CharitiesAct 2011. We obtained an understanding of how the charity are complying with those legal and regulatory frameworks by making inquiries lo the management of the charity. We corroborated our inquiries through our review of correspondence during our audit work. We assessed the susceptiblliiy of the charity's financial statements to material mSsstatement, ineluding how fraud might occur. Audit procedures performed included.. Identlfying and assessing the design effectlveness of controls management ha$ In place to prevent and detect fraud, understanding how thost charged wilh governance considered and addressed thè potential for override of controls or other inappropriate influence over the financial reporting process., challenging assumptions and judgements made by management in its significant accounting estimates; identifying and testing journal entries, in partlcular and journal entries posted with unusual account combinations., and assessing the extent of compliance with the relevant laws and regulations. Because of the inherent limitations of an audlt, there 58 a risk that we wlll not delect all Irregularllles, including those leading lo a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely lo become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website al.. http'.Il.frc.org.uKIaudllorsre$p0sIbIIitIes. This description fomis part of our auditor's report. 14-
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF HORNSBY HOUSE EDUCATIONAL TRUST Use ol our report This report is made solely to the Charity's Trustees, as a body. in accordance with section 144 of the Charitie5 Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might stale to the charity's Trustees those matters we are required lo state to Ihem in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do nol accept or assume responsibility to anyone other than the charity and its Tr stees as a body, for our audit work, for this report, or for the opinions we have formed. Colln Hamllton (Senior Statutory Auditor) for and on behalf of Ward Wllllams Llmlted Chartered Accountants Statutory Audltor 8elgrave House 39-43 Monument Hill Weybridge Surrey KT13 8RN Ward Wlliams Limited is eligible for appointment as auditor of the School by virtue of its eligibility for appointrnent as auditor of a company under of seclion 1212 of the Companies Acl 2006 15-
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2024 2024 2023 Notes Inc me and end Donations and legacies Charitable aclivities Investments Olher income wm sfro 15,858 25,963 9,020.219 8,259.733 212.592 85.207 14,675. 28,838 Total income 9,263,344 8,399,741 enditure on. Charitable activities 8,181,069 7,495,864 Net Income for the yearl Net movement In funds 1,082,275 903,877 Fund balances at 1 September 2023 11,797,569 10,893,692 Fund balances at 31 August 2024 12,879,844 11,797,569 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006, 16-
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 2024 2024 2023 Notes Flxed assets Property. plant and equipment Current assets Debtors falling due after one year Debtors falling due within one year Cash at bank and in hand 11 8,183,329 6,413,044 13 13 188,000 219,221 9,302,528 203,000 163,083 8,884,218 9,709,749 (3,829,963) 7,250,301 {705,489) Currenl Ilabilities 14 Net current assets 5,879,786 6,544,812 Total assets less current1Sabllltles 14,063,115 12,957,856 Non-current Ilabllltles 16 (1,183,271) (1,160,287) Net assets 12,879,844 11,797,569 Income funds Unr Designated funds General unrestricted funds 17 90,000 11,707,589 12,879,844 12,879,844 11,797,569 12,879,844 11.797,569 The financial statements were approved by the Trustees on . zilsl C Aldridge Trustee A Brown Trustee Company Reglstratlon No. 2270044 17-
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2024 2024 2023 Notes Cash flows from operating activities Cash 9enerated from operations 22 4,629,850 1,106,453 Investing activltles Purchase of property, plant and equipment Proed5 on disposal of propety, plant and equiprnent Interest received (2,424,134) (417,896) 19,500 85,207 212,592 Net cash us&d in investlng activitles (2,211,541) 1313,189) Net cash used In financlng actlvitles Net Increase In cash and cash equlvalents 2,418,309 793,264 Cash and cash equivalents at beginning of year 6,884,218 6,090,954 Cash and cash equivalents at end of year 9,302,528 6,884,218 18-
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accountlng pollcles Charity infomiation Hornsby House Educational Trust is a privale company limited by guarantee incorporated in England and Wales. The registered office is Hornsby House School, Hearnville Road, London. SW12 8RS. 1.1 Accounting conventlon The accounts have been prepared in accordance wth the School's governing document, 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 IFRS 102). (as amended for accounting periods commencing from 1 January 2016)- The School is a Public Benefil Entity as defined by FRS 102. The financial statements are prepared in sterfing, which 13 the functional currency of the School. Monetary amounts in these financial statements are rounded to the nearest £. The accounts have been prepared under the historical cost convention, modified to include certain financial instruments at falr value. The pnncipal accounting policies adopted ere sel out below. 1.2 Golng concern At the time of approving the accounts, the Trustees have a reasonable expectation that the School has adequate resources to continue in operational existence for the. foreseeable future. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the accounts. 1.3 Charilable funds Unrestricted lunds are avallable for use al the discretlon of the Trustees in furtherance of their charitable objectives, unless the funds have been designated for other purposes. 1.4 Incomlng resources Income is recognised when the School is legally entitled to It after any performance condilions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipl. Other donations are recognised once the School has been notified of the donation, unless perfomiance conditions require deferral of the amount. Income tax recoverable in relation to donalions 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 School has been nolified of an impending distribution, the amount is known, and receipt is expected, If the amount Is not known, the legacy is treated as contingenl asset. Interest on fund5 held on deposit is included en receivable and the amount can be measured reliably by Ihe School. Income is measured al the fair value of the conslderation received or receiveble and represents gross fees invoiced minus credit notes raised. Fees are charged in the period the tuition is provided. Fees invoiced in advance of the education to be provided are shown wthin creditors 85 "fees in advance" 19-
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies (Continued) 1.6 Re90urce$ exp8nded Resources expended are included in the Statement of Financial Activities on an accruals basis. School operating costs are induded in tharitable activities. Other Costs Include general School costs. Governance costs include those costs incurred in the governance of the School and are primarily associated with constitutional and Statutory requirements. 1.6 Property, plant and equipment Property, plant and equipment are initially measured al cost, net of depreciation and any Impairment losses. Depreciation is recognised so as to write off the cost or valualion ol assets less their residual values over their useful lives on the following bases.. Freehold buildings Minor freehold improvements Fixtures and fittings Computers 411A per annum on straight line basis 10 to 200A per annum on straight line basis 20Yo per annum on straight line basis 330/0 per annum on straight line basis Freehold land and assets in the course of construction are not depreclated. The gain or loss arising on the disposal of an asset 15 determined as the difference between the sale proceeds and the carrying value of the asset, and Is recognised in net in¢ornel{expenditure) for the year. The difference belween the carrying value of freehold land and buildings and the market value has not been quantified. The Govemors consider that oblaining a current valuation would incur significant costs which would be onerous and inconsistent with the benefit which might be gained by the users of the accounts. Finance costs have not been capitalised bul expensed when incurred, 1.7 Impalrment of non-current assets At each reporting end date, the School reviews the Carying amo¢Jnts of its tangible asset8 to determine whelher there is any indication that those assets have suffered an impairmenl loss. If any such indication exists, the recoverable amount of the asset is estimated in order to detemine the extent of the impairment loss lif any). Liabilities are recognised initially at historical cost and subsequently measured at the best estimate of the amount required to settle the obligalion at the period end dale. Any provision or liability which wi51 settle over several years will be adjusted to reflect its reduced value in today's terms, where material. 1.8 Cash and cash equlvalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments wth original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. -20-
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Accountlng policies (Contlnued 1.9 Flnanclal instruments The School has elected to apply the provisions of Section 11 'Basic Finanaal Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the School's balance sheet when the School becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offsel, with Ihe net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and Ihere is an intention to settle on a nel basis or to realise the asset ané settle the liability simultaneously. Basic financial assets Basic financial assets, which include trade and other recelvables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost uslng the effectlve int8rest method unless Ihe arrangement constitutes a financing tr8ns8clion, 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. Baslc financial liabilitles 8asic financial liabilities, induding trade and other payables and bank loans are initially recognised at transaction price unless the arrangemenl 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 wlthin one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade payables are obligations to pay for good5 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, Ihey are presented a5 non-currenl liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interesl method. Derecognltlon of Ylnanclal Ilabllltles Financial liabilities are derecognised when the School's contractual obligations expire or are discharged or cancelled. 1.10 Taxatlon Value added tax Value added tax is not recoverable by the School and as such Is included in the relevant costs in the statement ol Financial Aclivities. Taxation The School is exempi from corporation tax on its charitable activilies. 1.11 Employee beneflts The cost of any unused holiday enlitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the School is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 21
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Accountlng policle• Icontlnued) 1.12 Retlrement beneflts The School contributes to the Teachers, Pension Agency Defined Benefits Scheme at rates set by the scheme actuary and advised to the School by the scheme administrator. The Scheme is a multi-employer pension scheme and it is nol possible to identify the assets and liabilitie5 of the Scheme which are not attributable to the School. In accordanc8 Wtth FRS102, the Scheme is accounted for as a defined contribution scheme and contributions are accounted for when advised as due by the Scheme administrator. The School also contributes to other schemes, as stated in note 16. Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due, in accordance with the wles of the schemes. 1.13 Leases Rentals payable under operating leases, includlng any lease incentives received, are charged to income on straight line basis over the term of the relevant lease. 1.14 Advance fee payments and parent deposlts Parents may enter Into an arrangemenl with the School to pay tuition fees In advance. There is no Interest paid on the advance fees and future fees are not capped. The advance payments are recorded as deferred income until the criteria for income recognition are met. Fees will be recognised in the period to which they relate. Parents also pay deposits lo secure a child's future place al the School. These are refundable and are reflected within the School's liabilities on the Stalement of Financial Position. Crltlcal accountlng estlmates and Judgements In the application of the School's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily epparent from other sources. The estimales and associated assumptions are based on historical experience and other factors that are considered lo be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised In the period in which the estimate is revised where the revision affects only that period, or In the penod of the revision and future periods where the revision affects both current and future periods. Crftlcal Judgements Dlscountlng of non-current par8nt deposlts held The School has discounted the parental deposits that are expected to be held for over one year, based on an assumed cost of capilal rate. The cost of capital was decided upon after evaluating current interest rates and the School's current debt position and will continue to be reviewed on an annual basis. Classlflcatlon of leases The School has undertaken an analysis to classify the leases it holds as a lessee, as either operating or finance leases. The accounting policy for leases has been applied to these arrangements and Ihe assets are recognised as operating lease arrangements, with the relating expense charged through the School's Statement of Financial Activities. -22-
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Critlcal accountlng e8tlmat89 and Judgements (Contlnued Key sources of estimatlon uncortalnty Depreclatlon of tanglble flxed assets The charge in respect of periodic depreciation is derived after determlnlng an estimate of an asset's expected useful life and the expected residual value at the end of its life. Increasing an asset's expected life or its residual value would result in a reduced depreciation charge in the Statement of Financial Activities and increased carrying amount of assets in the Statement of Financial Position. The useful lives of the School's assets are determined by management at the time the asset is acquired and reviewed al least annually for appropriateness. The lives are based on historical expenence wilh similar assets as well as anticipation of future events, which may impact Iheir life, such as changes in technology. Donatlons and legacles 2024 2023 Donations and gifts- Fundraising event5 15,858 25,963 Charltable activlties 2024 2023 School fees Extra lessonslclubsrtrips School registration fees Discounts given Catering 8,323.929 336,104 20,800 (155.239) 494,625 7,647,354 271,860 21,712 (125,573) 444,380 9,020,219 8,259,733 Investments 2024 2023 Interest recelvable 212.592 85,207 -23-
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Other income 2024 2023 Net gain on disposal of tangible fixed assets Other income 19,500 9,338 14,675 14,675 28,838 Charltable actlvltles 2024 2023 staff costs Depreciation and impaimient Class materlals and lesson costs Catering costs Charitable donations Staff welfare Playing fields rental Establishment costs Legal and professional fees Sundry expenses Advertising and marketing Computer and printing costs Entertaining Other charitable expendlture 5,264,638 653,847 507,882 433,753 9,760 119,475 285,858 541,908 73,791 23,857 99,722 105,181 1,175 50,022 4,899,402 607,911 454,017 352,401 14,273 98,077 175,071 590,620 44,745 18,817 76,298 103,123 892 50,817 8,170,869 7,486,264 Share of govemance Costs (see note 81 10,200 9.600 8,181,069 7,495,864 Analysis by fund Unrestricted funds 8,181,069 8,181,069 For the year ended 31 August 2023 Unrestricted funds 7,495,864 7,495,864 -24-
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Governance costs 2024 2023 Audit lees 10,200 9,600 10,200 9,600 Trustees None ol the Trustees received any remuneration or benefils from the School during the year, There were no Governors, expenses pald for the year ended 31 August 2024 or for the year ended 31 August 2023. 10 Employeeg Number of employees The average monthly number employees during the year was.. 2024 Number 2023 Number Teaching and support staff ' Administration, IT and caterlng slaff 86 14 83 14 ioo, 97 Employmént costs 2024 2023 Wages and salaries Social security costs Olher pension costs 4,099,498 428,494 736,646 3,839,784 413.935 645,683 5,264,638 4,899,402 The number of employees whose annual remuneration was £60,000 or more 2024 Number 2023 Number £60,000- £69,999 £70.000- £79,999 £80,000- £89,999 £90,000- £99,999 £100,000- £129,999 -25-
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 11 Property, plant and equipment Freehold Flxture¥ 8nd bulldlngs flttlngs Campui•rJ Total Cost At 1 September 2023 Additions Disposals 10,615,690 1,593,246 2,268,427 22,729 517,068 132,978 (191,792) 12,726,004 2,424,134 (191,792) At 31 August 2024 12,884,117 1,615,975 458,254 14,958.346 D•pr•clatlon and impalmi•nt At 1 September 2023 Depreciation charged In the year Eliminated in respect of disposals 4,776,851 1,175,787 410,750 174,436 360,322 68,663 (191,792) 6,312,960 653,849 (191,792) At 31 August 2024 5,187,601 1,350,223 237,193 6,775,017 Carrylng amount At 31 August 2024 7,696,516 265,752 221,061 8,183,329 At 31 August 2023 5,838,839 417,459 156,746 6,413,044 The carrying value of land included in land and buildings comprises.. 2024 2023 Freehold 1,000,000 1,000,000 All fixed assets are used for charitable purposes. 26-
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 12 Financlal Instrument8 2024 2023 Carrying amount of flnanclal ag58ts Debt instruments measured at amortised cost 316,234 276,715 Carrylng amount of financlal Ilabllltles Measured at amortised cost 4,911,750 1,865,776 13 Trade and other recelvables 2024 2023 Amounts falllng due wlthln one year: Trade receSvables Other receivables Prepayments and accrued Incomè 64,176 64,058 90,987 56,784 16,931 89,368 219,221 163,083 2024 2023 Amount8 falllng duo after more than one year: Other recelvables 188,000 203,000 Tolal debtors 407,221 366,083 14 Current liabllllles 2024 2023 Other taxation and social security Trade payables Other payables Accruals and deferred income 101,484 152,338 155 3,575,986 124,595 175 580,719 3,829,963 705,489 In the past, bank loan5 were secured on the freehold property of the school. They were repaid in full during the year ended 31 Augu$t 2018. Legal charges continue to exist over the assets of the School in favour of The Royal Bank of Scotland., however, no loans are outstanding In latIon to Ihese charges. -27-
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 15 Non-current liabilities 2024 2023 Accruals and deferred income 1,183,271 1,160,287 16 Retlrement beneflt scheme? Defln8d contrlbutlon schemes The School participates in the Teachers, Pension Scheme I'the TPS'I for its teaching staff. The pension charge for the year includes contribution5 payable to the TPS of £724,920 {2023.' £645,377) and at the year- end £87.046 (2023.. £87,863) 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 contribulions 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 a¥ at 31 March 2020 and the Valuation Report, which was published In October 2023, confirmed that the employer contribution rate for the TPS would increase from 23.60A to 28.60kn from 1 Apnl 2024. Employers are also required to pay a scheme administration levy of 0.080/0 giving a total employer contribution rate of 28.680/0. The 31 March 2020 Valuation Report was prepared In accordance with the benefits set out in the scheme regulations and under the approach specified in the Direclions, as they applied at 26 October 2023. However. the assumptions were considered and sel by the Department for Education prior to the ruling in the 'McCloudl Sargeant case,. This case has required the courts to consider cases regarding the Implementatlon of the 2015 reforms to Public Service Pensions including the Teachers. Pensions. On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal's judgmenl Ihat transitional provisions introduced to the reformed pension schemes in 2015 gave nse to unlawful age discrimination. The government is respecting the Court's decision and has said it will engage fully wilh Ihe Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2021 that it intends to proceed wilh a deferred choice underpin under which members will be able lo choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 al the point they become payable. The TPS is subject to a cosl control methanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The cost cap implementation period is from 1 April 2024 to 31 March 2027. This can come in hvo forms, core and economic. The range of rates lying beeen the employer cost cap corridor of *3QA. If the cost cap costs of the scheme both lie outside of this corridor in Ihe same direction, then a breach is deemed to have occurred. The core cost cost cap cost of the scheme 8.1 DA of pensionable pay. which is 2.80kn below the 10.gOA employer cosl cap. As Ihere is no breach of the cost control mechanism. there is no requirement for the Secretary of State for Education to consult on changes to the scheme. -28-
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 16 Retirement benefit schemes (Continued The 2016 cosl control valuations have since been completed in January 2022, and the results indicated that there would be no changes to benefits or member contributions required. The results of the cost cap valuation are not used to set the employer contribution rate, and HM Treasury has confirmed that any changes to the employer contribution rate resulting from the 2020 valuations will take effect in April 2024. With effect from 1 September 2023, the School has closed the TPS for new members of staff, Those new members of staff will instead be enrolled in the Aviva Pension Trust for Independent Schools (APTISI. Furthermore, with effect from 1 May 2024, the School, following teaching staff consultation, have implemented a cap on the employer rate to the TPS al 23.6D/o, Wlth any future contribution rate rises being met by the employee. The School will offer existing teaching staff mernbership of the APTIS defined contribution scheme as an alternelive to the TPS. For all other employees, the School makes contributions into two defined contrlbution pension schemes administered by Scottish Widows and Legal & General, respectively. As at the balance sheet date, there were 2 active members of the Scottish Widows scheme and 27 employees enrolled in the Legal & General scheme. The assets of the two schemes are held separately from those of the School in independently adminislered funds. 17 Deslgnated funds The income funds of the charity include the followin9 desi9naled funds whlch have been set aside out of unrestricted funds by the trustees for specific purposes.. In carrying out this charitable duty, the Governors are Committed to the School's contribution to the wider community and this year have established a separale designated fund to support bursaries and outreach projects in future years. 18 Analys18 of net a83818 between funds Total Fund balances at 31 August 2024 are represented by.. Property, plant and equipment Current assetsl{liabilitiesl Long term liabilities 8,183,329 5,879,786 (1,183,271) 12,879,844 -29-
HORNSBY HOUSE EDUCATIONAL TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 19 Operating lease commltments At the reporting end date the School had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: 2024 2023 Mfithin one year Between two and five years 10,598 42.394 9,600 52,992 9,600 20 Contlngent Liabilities There is a contingent liability relating to the Trinity Fields contracts of £250,000. 21 Related party transactlong Remuneration of key management personnel The remuneration of key management personnel is as follows. 2024 2023 Aggregate compensation 520.244 509,048 The School paid £817 for insurance for professional indemnity and governors. liabillty (2023.. £729). 22 Cash generated from operatlons 2024 2023 Surplus for the year 1,082,275 903,877 Adjustments for.. Investment income recognised in statement of financial activilies Gain on disposal of property, plant and equipment Depreciation and impairment of property, plant and equlpment (212,592) (85,207) (19,500) 607,911 653,847 Movements in working capital.. {Increasel in trade and other receivables Increaselldecrease) In trade and other payables (41,138) 3,147,458 (28,180) <272,448) Cash generated from operations 4,629,850 1,106,453 23 Analysis of changes in net funds The School had no debt during the year. -30-