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## Registered number: 02427105 Charity number: 803153
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CHARITY COMMISSION |
_ FIRST CONTACT ,
7B JUN 2024
7 ACCOUNTS
RECEIVED
,
**----- End of picture text -----**
## GAD'S HILL SCHOOL
| |
(A company limited by guarantee)
## GOVERNORS’ REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
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**----- Start of picture text -----**
GAD'S HILL SCHOOL
BCLS: 2 MMOS) YT oar company limited by guarantee)
eT See LL
; CONTENTS
!i
a- . . : ein 9 Page
Reference-and administrative detailsof the Charity, its Governors and advisers 1-2
Governors’ report. ; ; 3-15
independent auditor's report on the financial statements 16-19
Statement of financial activities 20
Balance sheet 21
Statement of cash flows 22
Notes to the financial statements 23 - 42
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GAD'S HILL SCHOOL (A company limited by guarantee)
,
:
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 JULY 2023
|Governors|Mr P Savage, Headmaster||
|---|---|---|
||MrsA H CavalierTej (appointed 14 December2023)||
||Mrs K Hillocks (resigned 14 December 2023)||
||MrsA Eggleton (resigned 20 March 2023)||
||Mrs M S Taylor (appointed
2 November 2023)||
||Miss N Barker||
||MrO Basi (resigned 14 December 2023)||
||Mrs M Dickens||
||Mrs D Piralic (appointed 18 September2023)||
||MrsA J Clarabut (appointed 20 March 2023)||
||Mr D Martin, Chair ofGovernors (appointed|18 September 2023)|
||Mr S Martin (resigned 3 July 2023)||
||Mr J Myatt||
||Mr AA O'Brien (appointed 20 March 2023)||
||Mr C Whittington||
||Mr N Smith (resigned 12 October 2023)||
||Mrs
AH C Tej (appointed 14 December 2023)||
|Company registered|||
|number|02427105||
|||;|
|Charity registered|||
|number|803153||
|Registered office|Gad's Hill Place||
||Gravesend Road||
||Higham||
||Kent||
||ME3 7PA||
|Independent auditor|Crowe U.K. LLP||
||Riverside House||
||40 -46 High Street||
||Maidstone||
||Kent||
||ME14 1JH||
|Bankers|HSBC UK Bank PLC||
||84 New Road||
||Gravesend||
||Kent||
||DA110AS||
Page 1
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# GAD'S HILL SCHOOL (A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS GOVERNORS AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023
.
Solicitors Stone King LLP Upper Borough Court Upper Borough Walls Bath . BA1 1RG
dgb Solicitors LLP Captains House Central Avenue Pembroke Chatham Maritime Kent ME4 4UF
| | |
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## GAD'S HILL SCHOOL (A company limited by guarantee)
.
GOVERNORS’ REPORT FOR THE YEAR ENDED 31 JULY 2023
The Governors are pleased to present their annual Governors’ report together with the financial statements of the school for the year ending 31 July 2023. The Annual report serves the purposes of both a Governors’ report and a directors’ report under company law. The Governors confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
## Objectives and activities
,
## a. Policies and objectives
## Our Mission
Our mission is to enable our students to enjoy school, to achieve good academic qualifications and to develop those personal attributes and qualities which will guide them on their journey through life.
## Our Vision
,
Our vision is to be the first-choice independent school for families in Kent who value a well-rounded education for their child. It is our intention that our students leave Gaa’s Hill School as confident, mature, articulate, pleasant and self-reliant young people who are well equipped to enter the world through a university education or career of their choice.
## Our Values
We value Excellence, Enthusiasm, Friendship and Success. These attributes underpin all that we do. Our Mission and Vision are shaped by our commitment to educate children holistically, as articulated by our school motto: “First to thine own self be true”.
Our Ethos . Children do well when they are happy at school and at Gad’s Hill we pride ourselves on providing a friendly environment, where enthusiasm and hard work are the foundations for achieving success.
There is more to life than exam results alone and while Gad’s enjoys the reputation of receiving good GCSE results this is not our sole focus. We want to offer our pupils a foundation in life, working with them to become confident, motivated and articulate young people ready for the next stage in their education and life beyond.
## Structure, Governance and Management
## CONSTITUTION
The company is registered as a charitable company limited by guarantee and was set up by a Trust deed.
The company is constituted under a Trust deed and is a registered charity with number 803153.
The charitable objects of the School as set out in the Articles of Association (as amended by Special Resolution dated 28 January 2009) are to advance education and training (including physical training) for the public benefit by provision of a school or schools in the county of Kent, in particular the school known as Gad’s Hill School, Higham, Kent.
## CODE OF GOVERNANCE
The Board has recently established a Governance and Nominations Committee ("G&NC”) and this group has led the Board in undertaking the Association of Governing Bodies of Independent Schools ("AGBIS") self-review exercise, which incorporates, and expands upon, the Charity Commission’s Governance Code and SelfAssessment Checklist. Based on these results the Board, through G&NC, is driving forward a review and rationalisation of its committee structure, reporting lines so as to ensure the charity operates as effectively and
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## GAD'S HILL SCHOOL (A company limited by guarantee)
## GOVERNORS’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023
## Objectives and activities (continued)
efficiently as possible, and in accordance with third-sector best practice.
## METHOD OF APPOINTMENT OR ELECTION OF GOVERNORS
The management of the company is the responsibility of the Governors who are elected and co-opted under the terms of the Trust deed.
Under the Articles, the Headmaster is a governor. Two governors are appointed by The Dickens Fellowship (one of whom is a member of the Dickens family) and one by election as a Chair or representative of The Friends of Gad’s Hill School (a separate registered charity) representing parents of pupils at the school. The remaining governors are elected at a general meeting and one-third of the elected governors, determined by length of service, retires by rotation each year, and may stand for re-election. Nominations for new governors are proposed based on adding specialist skills to the governing body e.g. legal, financial, educational, medical, estates expertise and so on; this nominations process is led by the G&NC.
_
## POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF GOVERNORS
New governors are formally inducted into their roles through a series of briefings by the Chair, Headmaster, and | Clerk to the Governing Body, along with other members of the School’s senior leadership team (“SLT”) as | appropriate. Governors are encouraged to visit the school regularly and are given an insight into previous | meetings of the Board via minutes and the accompanying reports. The governors are offered further training | through AGBIS and are informed of seminars held throughout the period that are thought to be beneficial to their | governance. ORGANISATIONAL STRUCTURE AND DECISION MAKING 7 The governors, as trustees of the charity and directors of the company, are legally responsible for the overall | management and control of the school. They meet a minimum of four times per year, normally once per | academic term and once at the commencement of the new school year. There are various sub-committees | which meet as required to deal with areas of the School. The governors determine the general policy of the | ‘ School. The day-to-day management of the School is delegated to the Headmaster.
## KEY MANAGEMENT PERSONNEL AND REMUNERATION
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including all governors of the charity. Remuneration details are disclosed in these financial statements. Aside from Governors, the other key management personnel are:
° Mr Paul Savage, Headmaster . Miss Louise Tucker, Head of Seniors . Miss Samantha Long, Head of Juniors . Mrs Vicky Grant, Head of Kindergarten . Mr Malcom Gray, Bursar, Clerk to the Governing Body and Company Secretary
The Board of Governors is responsible for approving the remuneration levels of all employees. The unremunerated governors approve the Headmaster’s remuneration, the Headmaster being the only governor who receives remuneration for his role overseeing the day-to-day running of the school. The Governors’ Staff Salary Review Board (“SSRB”’) sets the salaries individually for the Headmaster and Bursar. The other key management personnel are each paid on one of two SLT incremental pay scales set by the SSRB.
## FINANCIAL RISK MANAGEMENT
The governors have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
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GAD'S HILL SCHOOL (A company limited by guarantee)
GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023
## Objectives and activities (continued)
## OTHER RELATIONSHIPS
The Headmaster is a member of the Independent Schools Association (“ISA”), and the School is a member of the Independent Schools’ Bursars Association (“ISBA”) and The Association of Governing Bodies in Independent Education (“AGBIS’). In addition to providing crucial support to the School and its various leaders, these organisations represent the independent education sector at a national level in contact with the Government and others. Several of our teachers are members of the Chartered College of Teaching (“CCT”).
## Achievements and performance
## a. 2022/23: The Year in Review
Our objectives for 2022/23 were:
## Governance and Staffing:
. Increase vehicle flexibility with more staff having D1 driving licences.
- . Explore Higher Education accreditation for staff CPD.
. Re-define and implement effective performance management for all. . Develop Initial Teacher Training further. . Implement bespoke training plan for Teaching Assistants.
## Curriculum and Pupils:
° Fully embed rigorous phonics teaching. alongside other measures to improve reading attainment and attitudes to reading in the Lower School
- . Review outside provision for pupils.
- . Implement new procedures for provision mapping and monitoring of interventions and other support for pupils of all abilities.
- . Improve whole-school enrichment programme.
- . Improve the consistency and impact of feedback and marking. . Review homework in the Lower School to ensure it has a positive impact on pupils’ learning. . Re-imagine holiday club provision.
- . Further links with other maintained and independent schools to share best practice and increase collaboration.
## Facilities and Premises:
- . Refresh transport fleet. . Develop "culture of giving” with parents and alumni. . Obtain planning consent for updated senior school accommodation. . Develop mechanism for approving ‘interim’ accommodation improvement projects.
, Community and Social Action:
- . Create new links for university partnerships leading to post-16 opportunities for our pupils. . Visit, host and share best practice with "excellent" ISI-rated schools. ° Establish working party to drive centenary celebrations in 2024. . Develop alumni programme including events, career support and philanthropy, and more actively monitor leavers’ destinations and early careers.
- ° Develop partnerships with local schools, sporting and voluntary organisations.
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## GAD'S HILL SCHOOL
## (A company limited by guarantee)
## GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023
## Achievements and performance (continued)
## b. Achieving the Objectives set for 2022/23
## Governance and Staffing:
## Re-define and implement effective performance management for all
The Professional Learning programme for all teaching staff has continued to run successfully throughout the academic year, with all teachers completing Professional Learning Logs for setting subject-focussed and professional development targets. The programme has been developed this year by the introduction of regular peer coaching sessions, allowing colleagues to review and develop their work towards targets through frequent peer conversations, and to work collaboratively in planning or to find relevant research. Professional development in the school has expanded further with the implementation of a bespoke training programme for teaching and inclusion assistants. Weekly training is delivered by members of the Senior Leadership Team and other colleagues with a focus on priority areas of the school’s development plan and key pupil SEND needs.
During the course of 2022/23, a new teaching and learning monitoring and review programme was introduced. Five reviews, focussed on various characteristics of outstanding practice, will be carried out across 2023/24, with every teacher observed in each review fortnight. Detailed written reports will highlight strengths in whole-school practice and areas for development, which will be addressed via our weekly staff development sessions. In 2022/23, the first of these reviews investigated the activation of ‘hard thinking’ in lessons across the school.
## Develop Initial Teacher Training further
During 2022-23, the school employed three Early Career Teachers. One completed their second year of ECT with an outstanding grading, while two others enjoyed successful first years of the programme. Although no further trainees or ECTs have been appointed during the course of the year or ahead of 2023/24, the school is well-equipped to support new or early career teaching colleagues and will actively pursue such appointments.
## Increase vehicle flexibility with more staff having D1 driving licences
The fleet of minibuses has continued to grow, with six daily routes now in operation to bring pupils to and from school across our wide catchment area. Recruitment of drivers has increased accordingly, and the transport manager now hasa strong bank of available drivers to use to meet the high demand for educational visits, sporting fixtures, swimming lessons etc. as well as ensuring continuity of service for morning and evening routes.
## Explore Higher Education accreditation for staff CPD
A number of staff across the school continue to undertake study towards professional qualifications, including National Professional Qualifications, Masters degrees and Teaching Assistant qualifications.
## Curriculum and Pupils:
Fully embed rigorous phonics teaching alongside other measures to improve reading attainment and attitudes to reading in the Lower School
External training in the school’s Read, Write, Inc. phonics programme was delivered to all Lower School staff during the course of 2022/23, consisting of Speed Sound and Story Book training. The Lower School Senior Leader also received further training to ensure assessment of phonics were robust, regular and precise. This has resulted in the explicit teaching of phonics throughout the Lower School in a systematic approach to support children in making connections between the sound patterns they hear in words when reading and the way that these words are written. The Lower School Senior Leader continued to deliver weekly practice sessions and updates to all staff.
The teaching of phonics matches the children’s current level of skill in terms of their phonemic awareness and their knowledge of letter sounds and patterns (graphemes). Kindergarten phonics lessons were reorganised to be held simultaneously on a daily basis, allowing for effective grouping of pupils according to need, and intervention provision for those requiring additional support.
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# GAD'S HILL SCHOOL (A company limited by guarantee)
## Se GOVERNORS’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023
## Achievements and performance (continued)
The Lower School team are aware that phonics improves the accuracy of children’s reading but not necessarily their comprehension. The team recognise this and place emphasis on all aspects of reading. Training was provided to the whole Lower School during a staff development day on the Power of Reading (CLPE) which is a programme to evolve a high-quality literacy curriculum which develops reading comprehension and writing composition and fosters a love of reading. This continues to be rolled out in 23/24, The Power of Reading is implemented from K2 onwards, once children have mastered the necessary phonic skills. The Lower School Senior Leader continued to deliver weekly practice meetings for staff, and a colleague also attended CLPE training for more able writers. Workshops were held for parents within the kindergarten focusing on how we teach children to read and how they can provide further support at home.
A full audit of the Lower School's reading materials was conducted, and the school invested in additional books and reading resources, particularly to improve the range of stories available for less advanced readers. Additionally, pupil librarians were appointed, and support sessions delivered to parents to ensure their effective involvement. The reemphasis on rigorous phonics teaching resulted in improved early reading skills and comprehension outcomes across the Lower School. .
## Review the outside provision for pupils
The Senior Leadership team looked to improve the choice of activities during break and lunch times. Training sessions were held for support staff and reviews of supervision and the activities on offer. New equipment and games were implemented ensuring that they were age-appropriate and developed social and team building skills. This continues to be rolled out in 23/24.
,
Implement new procedures for provision mapping and monitoring of interventions and other support for pupils of all abilities
The Inclusion Leader delivered a number of training sessions to colleagues to reinforce the importance of effective provision mapping to ensure quality teaching and intervention for all pupils across the school. Regular review of provision is a key element of the new teaching and learning monitoring system first implemented in 2022/23. All teachers across all phases of the school use a consistent mapping template to identify quality first teaching strategies, as well as short- and long-term interventions and associated entry and exit data. Professional development time has been allocated to staff to update these provision maps as part of the termly assessment cycle. The template has been updated for 2023-24 to further increase consistency and efficiency of completion.
## Improve whole-school enrichment programme
The Pupil Personal Development Lead worked closely with the Senior Leadership Team during 2022/23 to deliver a substantial improvement to the school’s enrichment programme, particularly in the Upper School. Pupils now have access to a significant number of clubs and activities before and after school and during lunchtimes. Clubs available include sport and music clubs, subject-specific activities, such as STEM clubs and support clinics, as well as a diverse programme ranging from Minecraft to Astronomy. In the Upper School a daily lunch hub was established in the Reading Room for all pupils, providing access to inclusion staff for any pupils in need of support. In the Lower School work has been done to develop the resources and activities on offer to enhance the value of break and lunchtime play. The Pupil Personal Development Lead continues to monitor club attendance and conducts surveys to identify pupil voice.
## Improve the consistency and impact of feedback and marking
Work was undertaken throughout 2022/23, led by the Pianning and Feedback Lead, to review the principles of effective feedback. The Lead teacher attended training with the ISA which was shared with the Senior Leadership Team and helped form the basis of a reviewed and rewritten Feedback Policy and implementation guide for Lower School, drawing on examples of outstanding practice from her own review of assessment across the school. The new teaching and learning monitoring programme incorporates opportunities for monitoring of marking in books by the Senior Leadership Team, in addition to peer book reviews to be conducted during staff conference training time. In the Lower School, colleagues have undertaken training on end of Key Stage
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## GAD'S HILL SCHOOL
(A company limited by guarantee)
## GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023
## Achievements and performance (continued)
assessments and the school hosted moderation sessions for our colleagues and those of other local primary schools.
Review homework in the Lower School to ensure it has a positive impact on pupils’ learning In 2022/23, a new Lower School Home Learning Policy was created, following work by colleagues across the department to review current research on effective homework provision. New home reading resources were purchased for the Kindergarten from the Read Write Inc scheme, so all phonics books now link to a child’s phonic stage and the sounds they have learned. Outstanding virtual phonic lessons are sent to parents every half term via QR codes for the children to complete at home. The school’s Knowledge Organisers were made more easily accessible to parents via Microsoft Teams to allow for greater support with home learning, in addition to Stretch and Challenge menus which continue to provide additional challenge materials for the most able.
## Re-imagine holiday club provision
Holiday Club provision continues to be an important part of our wider school provision, but this objective was deferred to 2023/24.
Further links with other maintained and independent schools to share best practice and increase
## collaboration
The school has developed a number of links with other local schools both in the maintained and independent sectors. We remain a member of the Medway Educational Leaders Association and have used partnerships developed there to organise reading and writing moderation sessions, and have shared good practice in regard to our use of Forest School. A new Director of Sport has built on stronger ties with local schools to significantly increase the number of fixtures offered to our pupils, while we also provide our facilities to a local Brownie and Guide group.
## Facilities and Premises:
Obtain planning consent for updated senior school accommodation During the course of 2022/23, the school has continued to work with architects, heritage consultants and the local authority in progressing a pre-application for updated school learning accommodation and for the preservation of Gad’s Hill Place and the creation of a Creative Arts Hub. Progress remains positive and, during 2023/24, the school will progress to application for planning consent.
Develop mechanism for approving ‘interim’ accommodation improvement projects The estates and maintenance team has been restructured, with the appointment of an Operations Manager, line managing various estates and infrastructure teams. Interim projects are raised to the Senior Leadership Team who will charge the Operations Manager with delivering approved projects.
## Audit technology assets and establish investment plan
Deferred to 2023/24
Develop "culture of giving" with parents and alumni In 2024, the school will enter its centenary year. A number of events have been arranged, including plans developed in conjunction with Gravesham Borough Council.
## Community and Social Action:
Create new links for university partnerships leading to post-16 opportunities for our pupils Deferred to 2023/24
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GAD’S HILL SCHOOL (A company limited by guarantee)
## GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023
## Achievements and performance (continued)
Visit, host and share best practice with "excellent" ISl-rated schools Deferred to 2023/24
Establish working party to drive centenary celebrations in 2024
:
The school has organised several centenary projects and events, including in collaboration with other local organisations reaching milestone anniversaries in 2024. The working party continues to plan further activities to celebrate the school’s history, the strength of its current status, and its plans for the future.
Develop alumni programme including events, career support and philanthropy, and more actively monitor leavers’ destinations and early careers
During 2022/23 a number of alumni were contacted to provide recollections and photographic records of their time as pupils within the school. These renewed collections have enabled the school to begin using former pupils to enrich the school calendar of events, with former pupils delivering speeches at Post-16 information sessions, for example. It is notable that several former pupils now work within the school. More active monitoring of leavers’ destinations was undertaken in 2022/23, with the greatest proportion of pupils moving on to grammar school sixth forms for the next stage in their education.
Develop partnerships with local schools, sporting and voluntary organisations As above, a new Director of Sport has built on stronger ties with local schools to significantly increase the number of fixtures offered to our pupils, while we also provide our facilities to a local Brownie and Guide group. Pupils from several different age ranges have participated in the Medway Mini Youth Games with great success.
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GAD'S HILL SCHOOL (A company limited by guarantee)
GOVERNORS’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023
## Achievements and performance (continued)
c. Other Activities and Achievements in 2020/21 and Useful Information
PUPIL NUMBERS, CLASS SIZES AND FEES Average pupil numbers and class sizes for the year are set out below along with the fees charged.
## Lo
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|||||||
|---|---|---|---|---|---|
|2022/23|
|Section|Year Grou|Standard Fee Level|
|P|||Pupils| Class Size|_Termly|_|Annual|
|£3,336||£10,008|
|£3,336||£10,008|
|Kindergarten|£3,924]|£11,772|
|£3,924]|£11,772|
|YearOverall2|(Nursery to|88||20|
|cf|Nursery|to|Year 2|
|£4160]|£12,480|
|£4,160]|£12,480|
|£4,160||£12,480|
|£4,160]|_ £12,480|
|Overall|(Years|3|to|6|
|||[cf]|[Years][ 3]|[to]|[6][ 2021/22]|
|Shell|(Year|7|£4,456]|£13,368|
|£4,456]|£13,368|
|£4,748]|£14,244|
|Lower|5"|(Year|10|£4,748||£14,244|
|Upper|5'"|(Year|11|£4,748||£14,244|
|Overall|(Years|7|to|11|
|cf Years|7|to|11|
|Whole School|||366]|15|
|cf Whole School 2021/22|
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*N.B. Nursery pupils attend for varying numbers of sessions each week and this is managed so as to ensure that there are never more than 20 nursery pupils in a class at any one time, and always with at least the required number of staff, if not more.
Pupil numbers remained pleasingly on target with 10.57% growth in total pupil numbers over the year before. Fee levels were on average a modest 3.22% higher than those charged in the preceding year.
## EXPANSION OF OUR SENIOR SCHOOL
In 2021/22, based on increasing demand and scholarship uptake, we expanded our Senior School to three form entry (from two) so as to accommodate increased demand for places at Gad's Hill School.
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## GAD'S HILL SCHOOL (A company limited by guarantee)
## GOVERNORS’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023
## Achievements and performance (continued)
## ACADEMIC PERFORMANCE
## Lower School:
- . 88% of pupils at the end of Nursery were assessed to be working on-track in all areas. The remaining 2 pupils were ‘working towards’ due to developing age-appropriate self-regulation and were still assessed as ready for their transition to Reception this year.
- . Following a year of investment, training, intervention and focus on developing the quality and rigour of phonics teaching, the impact is clear from the Year 1 phonics screening data where results raised from 53% passing last year to 75% this year. In Reception the impact can also be clearly seen, with 93% of children working at the expected level for word reading and comprehension.
- . End of Kindergarten assessments (Year 2) were very strong with 96% of children working at expected or above in Reading, Writing and Maths. Only one pupil was assessed to be working below age-related expectations in each core subject.
- . Following systematic and targeted interventions, all Year 2 children passed a re-take of the phonics screening (of which only 53% had passed in Year 1).
- ° 77% of pupils in Years 3-5 were at or above expected levels in all NFER assessments taken (an increase on 75% last year), with 20% of these achieving greater depth in all areas.
- . The percentage of children working at greater depth in Years 3-5 is particularly impressive and demonstrates increasingly high expectations and the impact of a whole-school focus on stretch and challenge for all.
- . Lower Shell SATs results exceeded national averages for reading, writing, grammar and punctuation and spelling.
## Upper School:
- . In summer 2023, several Upper Fifth pupils achieved outstanding individual successes, gaining grades 7-9 in multiple subjects. As in previous years, our ‘value added’ data remains impressive: most pupils make progress far beyond their (nationally standardised) expectations. In summer 2023, for example, Food and Nutrition grades were on average 2.3 grades higher than would have been expected of that cohort of pupils. History results were on average 2 whole grades higher than expected, Geography outcomes were +1.4 grades above expectation, Art was +1.4, English Literature +0.9, Drama +0.8, and Computer Science and English Language grades were both on average half a grade higher than expectations.
- . The first-choice destination for our Upper Fifth leavers continues to be local grammar schools — with 32% of pupils this summer gaining places at Sir Joseph Williamson’s Maths School, Fort Pitt, Chatham Girls Grammar, Invicta Girls Grammar and Wilmington Grammar. Meanwhile other talented Upper Fifths are leaving Gad’s Hill for exciting opportunities at the BRITT School and Dartford Football Academy or have gained places in highly selective apprenticeship programmes.
- , As ever, pupil success in gaining qualifications extends beyond GCSE -— our pupils enjoyed an outstanding year of achievement in Institute of Leadership & Management qualifications, BTECs, LAMDA awards and Duke of Edinburgh Bronze and Silver awards.
## CHARLES DICKENS ACADEMIC SCHOLARSHIPS
- . Autumn Term 2023 saw the sixth wave of Charles Dickens (“CD”) academic scholars commence in the Upper School, with a further 10 of the most able children in the area receiving this form of fee assistance. Of particular note, one pupil entered the Upper School with a 100% CD Scholarship, bringing to five the number of Charles Dickens Scholars receiving 100% Fee Assistance.
## OTHER FORMS OF FEE ASSISTANCE
- . Significant increases in both the proportion of gross fee income used to provide fee assistance, and the
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GAD'S HILL SCHOOL (A company limited by guarantee)
GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023
## Achievements and performance (continued)
proportion of families benefiting from some of fee assistance are set out elsewhere in this report.
| |
||
. Governors keep under review our policies for all forms of fee assistance to ensure that as many suitable pupils as possible can benefit from the education offered at Gad’s Hill School even if their family financial circumstances would otherwise preclude this.
.
## PUBLIC BENEFIT
|
,
- ° The school educated an average of 209 primary- and 157 secondary-age pupils during 2022/23 at no cost to the public purse (except for “Free Early Education” funding available to all providers. The absolute minimum it would have cost public funds to educate these pupils at the Government's minimum per pupil funding levels would be £1.9M (2022: £1.724M). The real savings to the public purse, however, are considerably greater when the value of capital grants, VAT reclaims and so on are considered. Our staff live predominantly in Kent and Medway and hence our support to the local economy as the employer of nearly 100 people is significant. Support of our local economy has been increased further by choosing local suppliers for food produce wherever possible, taking more trips to local sites and attractions, and so on.
## Financial Review
## GOING CONCERN
After making appropriate enquiries, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies and the form submitted for the audit.
## RESERVES POLICY
## RESERVES AND FINANCIAL HEALTH
The Governors review regularly the finances of the school and plan for future years. In common with other independent schools, Governors have invested substantial sums into new and improved buildings and facilities in recent years and have a continuing programme of refurbishment, development and investment to maintain excellent teaching facilities for our pupils. Although as shown on the balance sheet the school’s free reserves (unrestricted reserves less fixed assets) are at a negative balance of £2,511,987 (2022: £2,625,495), this illustrates the extent of the investment in our school, which is common practice for schools in the sector which must finance their own capital investment plans. The governors consider that, given the strength of the charity's balance sheet, the stable cash flow from healthy student rolls, the ongoing popularity of our school, and our strong relationship with bankers, there is no current need to build up a free reserve.
## PRINCIPAL RISKS AND UNCERTAINTIES
The Board of Governors is responsible for the management of risks faced by the school. Each year the SLT and Board identify and assess risks and implement controls to mitigate against these. Key controls implemented by the school include:
- . Formal agenda and papers for all Board and committee activities . Strategic planning, budgeting, and management accounting . Structured financial and other forecasting (eg pupil numbers) for future years . Established organisational structure and understood lines of reporting. . Formal written policies. ‘
## PRINCIPAL FUNDING.
The principal funding of the school is from school fees.
Page 12
| | ,
## GAD'S HILL SCHOOL
(A company limited by guarantee)
GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023
## Achievements and performance (continued)
## APPROACH TO FUNDRAISING
Fundraising income remains low, however the school does not specifically target resources for this source of funding. This year the school received donations amounting to £nil (2022: Enil). No fundraising complaints (2022: nil) were received during the year.
## Financial review
## Structure, governance and management
## a. Constitution
Gad's Hill School is registered as a charitable company limited by guarantee and was set up by a Trust deed.
## b. Methods of appointment or election of Governors
The management of the Charity is the responsibility of the Governors who are elected and co-opted under the terms of the Trust deed.
## c. Financial risk management
The Governors have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
## Plans for future periods
## Looking Forward to 2023/24 and Beyond
## OBJECTIVES FOR 2023/24
## The Board has set the following objectives for 2023/24:
## Governance and Staffing:
- . Develop effective new structure for strategic leadership from the Board of Governors, following transition to a new Chair of Governors
- ° Ensure sufficient staffing capacity to allow school to progress work towards the development of new learning accommodation.
- ° Review Head of Department roles, increasing responsibility for impactful leadership at departmental! level
## Curriculum and Pupils
- . Complete first full year of new teaching and learning monitoring and review system with impact on pupil outcomes.
- ° Complete first full year of the Greatest of Expectations Wellbeing Self Evaluation programme . Secure strong GCSE outcomes for first scholarship cohort. . Improve reading attainment and attitudes to reading in Lower School and review the Upper School reading room provision.
- . Improve consistency and impact of feedback and marking. . Improve outcomes for pupils at the end of EYFS. . Improve children’s application and knowledge of spelling. * Embed a culture of success and high expectations for all.
Page 13
## GAD'S HILL SCHOOL (A company limited by guarantee)
## GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023
## Plans for future periods (continued)
| |
. Offer enhanced opportunities for pupil voice, including through a new whole-school School Council and an effective and meaningful student leadership system. Facilities and Premises: . Obtain planning consent for; updated senior school accommodation. ° Audit technology assets and establish investment plan.
## Community and Social Action:
- . Celebrate centenary with focus on heritage and alumni. ° Build close relationships with all stakeholders involved in site development. . Develop links with other independent and maintained settings. . Embed a Greatest of Expectations culture across all aspects of school life.
## Statement of Governors’ responsibilities
The Governors (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Governors’ 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 Governors to prepare financial statements for each financial . Under company law, the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Governors are required to:
- ° select suitable accounting policies and then apply them consistently;
- e observe the methods and principles of the Charities SORP (FRS 102);
- ° make judgements and accounting estimates that are reasonable and prudent;
- e state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- ° prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the 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.
## Disclosure of information to auditor
Each of the persons who are Governors at the time when this Governors’ report is approved has confirmed that:
- ® so far as that Governor is aware, there is no relevant audit information of which the charity's auditor is unaware, and
- e that Governor has taken all the steps that ought to have been taken as a Governor in order to be aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
Page 14
# GAD'S HILL SCHOOL (A company limited by guarantee)
GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023
## Auditor
The auditor, Crowe U.K. LLP, has indicated his willingness to continue in office. The designated Governors will propose a motion reappointing the auditor at a meeting of the Governors.
Approved by order of the members of the board of Governors and signed on their behalf by: yh
Mr D Martin (Chair of Governors) Date: 6 June 2024
Page 15
## GAD'S HILL SCHOOL (A company limited by guarantee)
## INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GAD'S HILL SCHOOL
| : |
## Opinion
We have audited the financial statements of Gad's Hill School (the 'charity') for the year ended 31 July 2023 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including ' Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
## In our opinion the financial statements:
- ° give a true and fair view of the state of the charitable company's affairs as at 31 July 2023 and of its , incoming resources and application of resources, including its income and expenditure for the year then ended;
,
- . have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- ° have been prepared in accordance with the requirements of the Companies Act 2006.
## Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Governors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Governors with respect to going concern are described in the relevant sections of this report.
Page 16
| |
## GAD'S HILL SCHOOL
(A company limited by guarantee)
## INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GAD'S HILL SCHOOL (CONTINUED)
## Other information
The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Governors are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
## We have nothing to report in this regard.
## Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- e the information given in the Governors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
- ° the Governors’ Report has been prepared in accordance with applicable legal requirements.
## Matters on which we are required to report by exception
In the light of our Knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Governors’ Report.
We have nothing to report in respect of the following matters in relation to which 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
- e the financial statements are not in agreement with the accounting records and returns; or e certain disclosures of Governors’ 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 Governors’ responsibilities statement, the Governors (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Governors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Governors are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Governors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Page 17
!
## GAD'S HILL SCHOOL (A company limited by guarantee)
|
## INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GAD'S HILL SCHOOL (CONTINUED)
## 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and Charities Act 2011.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management. Our audit procedures to respond to these risks included:
- enquiries of management about their own identification and assessment of the risks of irregularities;
- reviewing board minutes and making enquiries of management regarding any non-compliance with laws and regulations and fraud;
- reviewing the revenue, supplier payments and payroll systems for significant deficiencies or susceptibility to fraud;
- challenging assumptions and judgements made by management in their significant accounting estimates and judgements; and
- reviewing journal entries, in particular any journal entries posted with unusual account combinations.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
## Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Page 18
## GAD'S HILL SCHOOL (A company limited by guarantee)
## INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GAD'S HILL SCHOOL (CONTINUED)
oe
## lan Weekes (Senior statutory auditor)
for and on behalf of Crowe U.K. LLP
Statutory Auditor Riverside House
40 - 46 High Street Maidstone Kent
ME14 1JH
Date: 25 June 2024
|[;] | | |
|
Page 19
## GAD'S HILL SCHOOL
(A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2023
|||Unrestricted
funds|Total
funds|Total
funds|
|---|---|---|---|---|
|||2023|2023|2022|
||Note|£|£|£|
|Income from:|||||
|Charitable activities|4|4,623,555|4,623,555|4,259,076|
|Total income||4,623,555|4,623,555|4,259,076|
|Expenditure on:|||||
|Provision ofeducation|5|4,605,365|4,605,365|4,124,259|
|Total expenditure||4,605,365|4,605,365|4,124,259|
|Net movement in funds before other recognised|||||
|gains/(losses)||18,190|18,190|134,817|
|Other recognised gains/(losses):|||||
|Actuarial gains/(losses) on defined benefit pension|||||
|schemes|21|7,797|7,797|(21,695)|
|Net movement in funds||25,987|25,987|113,122|
|Reconciliation of funds:|||||
|Total funds brought forward||3,575,813|3,575,813|3,462,697|
|Net movement in funds||25,987|25,987|113,122|
|Totalfundscarriedforward||3,601,800|3,601,800|3,575,813|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 23 to 42 form part of these financial statements.
Page 20
## GAD'S HILL SCHOOL (A company limited by guarantee) REGISTERED NUMBER: 02427105
BALANCE SHEET AS AT 31 JULY 2023
||||2023||2022|
|---|---|---|---|---|---|
||Note||£||£|
|Fixed assets||||||
|Tangible assets|10||6,113,787||6,201,308|
||||6,113,787||6,201,308|
|Current assets||||||
|Debtors|11|227,444||125,826||
|Cash at bank and in hand||481,906||680,029||
|||709,350||805,855||
|Creditors: amounts falling due within one||||||
|year|12|(640,746)||(629,135)||
|Net current assets|||68,604||176,720|
|Total assets less current liabilities|||6,182,391||6,378,028|
|Creditors: amounts falling due aftermore||||||
|than one year|13||(2,507,822)||(2,715,412)|
|Netassets excluding pension liability|||3,674,569||3,662,616|
|Defined benefit pension scheme liability|21||(72,769)||(86,803)|
|Total net assets|||3,601,800||3,575,813|
|Charity funds||||||
|Restricted funds|15||-||-|
|Unrestricted funds|15||3,601,800||3,575,813|
|Totalfunds|||3,601,800||3,575,813|
The Governors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the Governors and signed on their behalf
## OAD Mahe
(Chair of Governors) Date: 6 June 2024
The notes on pages 23 to 42 form part of these financial statements.
Page 21
## GAD'S HILL SCHOOL
## (A company limited by guarantee)
## STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2023
|
**----- Start of picture text -----**
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|2023|2022|
|£|£|
|Cash|flows|from|operating|activities|
|Net|cash|from|operating|activities|172,976|396,865|
|Cash|flows|from|investing|activities|
|Dividends,|interests|and|rents|from|investments|-|1,310|
|Purchase|of tangible|fixed|assets|(77,229)|(69,611)|
|Net cash|used|in|investing|activities|(77,229)|(68,301)|
|Cash|flows|from|financing|activities|
|Repayments|of borrowing|(200,061)|(192,211)|
|Interest|paid|on|loan|(93,809)|(112,334)|
|Net cash|used|in|financing|activities|(293,870)|(304,545)|
|Change|in|cash|and|cash|equivalents|in|the|year|(198,123)|24,019|
|Cash|and|cash|equivalents|at the|beginning|of the|year|680,029|656,010|
|Cash|and|cash|equivalents|at the|end|of the|year|481,906|680,029|
|.|The|notes|on|pages|23|to 42|form|part|of these|financial|statements|
**----- End of picture text -----**
Page 22
## GAD'S HILL SCHOOL
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
## 1. General information
The School is a company limited by guarantee. The members of the company are the Trustees named in the front of the financial statements. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company.
The company is registered in England and Wales, registered number 02427105 and its registered office is:
Gad's Hill Place, , Gravesend Road, Higham, Kent, ME3 7PA.
The company is a registered charity number 803153, its principal activity is the provision of education service.
## 2. Accounting policies
## 2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Gad's Hill School meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
## 2.2 Going concern
Accounting standards require the Governors to consider the appropriateness of the going concern basis when preparing the financial statements. After reviewing forecasts and projections, the Trustees have a reasonable expectation that the school has adequate resources to continue in operational existence for the foreseeable future. The Governors therefore continue to adopt the going concern basis in preparing the financial statements.
Page 23
—=- = -
**----- Start of picture text -----**
GAD'S HILL SCHOOL
**----- End of picture text -----**
## (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
**----- Start of picture text -----**
2. Accounting policies (continued)
**----- End of picture text -----**
## 2.3 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Governors in a - furtherance of the general objectives of the Charity and which have ‘not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Governors for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
**----- Start of picture text -----**
2.4 Fee income
**----- End of picture text -----**
Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided. Fees receivable are stated after deducting scholarships, bursaries and other allowances. Interest income is accounted for on a receivable basis.
**----- Start of picture text -----**
2.5 Expenditure
**----- End of picture text -----**
’ 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 invoived in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
## 2.6 Tangible fixed assets and depreciation
Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition are included in the measurement of cost.
**----- Start of picture text -----**
,
**----- End of picture text -----**
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a é
| | ,
GAD'S HILL SCHOOL (A company limited by guarantee)
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
## 2. Accounting policies (continued)
## 2.6 Tangible fixed assets and depreciation (continued)
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method
## Depreciation is provided on the following bases:
Freehold property - 2% on cost Motor vehicles - 25% on cost Fixtures and fittings - 20% to 25% on cost
Land of £140,000 is not depreciated.
## 2.7 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.
## 2.8 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Known bad debts are written off and provision is made for any considered to be doubtful. Trade debtors relates to income owed for charitable services provided. ;
## 2.9 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## 2.10 Liabilities
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within Interest payable and similar charges.
Fees received in advance are carried forward for credit in the period to which they relate.
Page 25
» ‘»
## GAD’S HILL SCHOOL
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
## 2. Accounting policies (continued)
## 2.11 Financial instruments
| | | | , ,
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## 2.12 Pensions
Teaching staff are members of the Teacher's Pension Scheme (TPS), a defined benefit scheme administered by the Teacher's Pension Agency. Contributions to the scheme are charged to the Statement of Financial Activities as they fall due. The TPS is an unfunded scheme. Contributions on a "pay as you go" basis are credited to the exchequer under arrangements governed by the Superannuation Act 1972. Actuarial variances are carried out on a national set of investments. Under the definitions set out in FRS 102 the TPS is a multi-employer pension scheme. The charity is unable to identify its share of the underlying (notional) assets and liabilities of the scheme. Accordingly, under FRS 102 the scheme is accounted for as if it was a defined contribution scheme.
|
The charity also contributes to a personal pension scheme for its non-teaching staff and the pension charge recognised in the Statement of Financial Activities represents the amounts payable by the charity to the fund in respect of the year.
3. Critical accounting estimates and areas of judgement
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
## Critical accounting estimates and assumptions:
Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. These are assessed annually and may vary each year depending on a number of factors. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
The Charity makes allowance for doubtful debts based on an assessment of the recoverability of receivables. Allowances are applied to receivables where events or changes in circumstances indicate that the carrying amount may not be recoverable. Management specifically analysed historical bad debts, customer credit-worthiness, current economic trends and changes in customer payment terms when making judgement to evaluate the adequacy of the allowance of doubtful debts.
The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Page 26
@
4
## GAD'S HILL SCHOOL
## (A company limited by guarantee)
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
## 4. Income from charitable activities
||Unrestricted|Total|
|---|---|---|
||funds|funds|
||2023|2023|
||£|£|
|Fees receivable|4,279,599|4,279,599|
|Registration fees|9,585|9,585|
|Educational requisites income|228,779|228,779|
|Sundry income|105,592|105,592|
||4,623,555|4,623,555|
|||Unrestricted|Total|
|---|---|---|---|
|||funds|funds|
|||2022|2022|
|||£|£|
|Fees receivable||3,901,142|3,901,142|
|Registration fees||9,800|9,800|
|Educational requisites income||212,582|212,582|
|Sundry income||135,552|135,552|
||,|4,259,076|4,259,076|
!
Page 27
4 \e
## GAD'S HILL SCHOOL (A company limited by guarantee)
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
## 5. Analysis of expenditure on charitable activities
## Summary by fund type
;
||Unrestricted||
|---|---|---|
||funds|Total|
||2023|2023|
||£|£|
|Education|2,880,855|2,880,855|
|Welfare|231,903|231,903|
|Premises|729,266|729,266|
|Administration|669,532|669,532|
|Interest payable|93,809|93,809|
||4,605,365|4,605,365|
||Unrestricted||
|---|---|---|
||funds|Total|
||2022|2022|
||£|£|
|Education|2,616,279|2,616,279|
|Welfare|204,159|204,159|
|Premises|636,639|636,639|
|Administration|556,158|§56,158|
|Interest payable|111,024|111,024|
||4,124,259|4,124,259|
~
Page 28
## GAD'S HILL SCHOOL (A company limited by guarantee)
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
## 5. Analysis of expenditure on charitable activities (continued)
## Summary by expenditure type
||Staffcosts|Depreciation|Other costs|Total|
|---|---|---|---|---|
||2023|2023|2023|2023|
||£|£|£|£|
|Education|2,559,696|-|321,159|2,880,855|
|Welfare|199,157|-|32,746|231,903|
|Premises|155,050|164,748|409,468|729,266|
|Administration|334,020|-|335,512|669,532|
|Interest payable|-|-|93,809|93,809|
||3,247,923|164,748|1,192,694|4,605,365|
||Staffcosts|Depreciation|Othercosts|Total|
||2022|2022|2022|2022|
||£|£|£|£|
|Education|2,304,615|-|311,664|2,616,279|
|Welfare|163,427|-|40,732|204,159|
|Premises|187,454|146,653|302,532|636,639|
|Administration|323,636|-|232,522|556,158|
|Interest payable|-|-|111,024|111,024|
||2,979,132|146,653|998,474|4,124,259|
|
Page 29
## GAD'S HILL SCHOOL (A company limited by guarantee)
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
## 6. Analysis of expenditure by activities
**----- Start of picture text -----**
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|Activities|
|undertaken|Support|Total|
|;|;|directly|costs|funds|
|2023|2023|2023|
|£|£|£|
|Education|2,848,011|32,844|2,880,855|
|Welfare|199,157|32,746|231,903|
|Premises|564,518|164,748|729,266|
|Administration|669,532|-|669,532|
|Interest|payable|93,809|-|93,809|
|4,375,027|230,338|4,605,365|
|Activities|
|undertaken|Support|Total|
|directly|costs|funds|
|2022|2022|2022|
|£|£|£|
|Education|2,580, 832|35,447|2,616,279|
|Welfare|163,427|40,732|204,159|
|Premises|489,986|146,653|636,639|
|Administration|556, 159|-|556,159|
|Interest|payable|111,024|-|111,024|
|3,901,428|222,832|4,124,259|
|7.|Auditor's|remuneration|
|2023|2022|
|£|£|
|Fees|payable|to|the|Charity's|auditor|for|the|audit|of the|Charity's|annual|
|accounts|17,500|14,285|
|Fees|payable|to|the|Charity’s|auditor|in|respect|of:|
|Preparation|of|statutory|accounts|2,250|1,500|
|Independent|audit|of Teachers'|Pension|Scheme|890|825|
**----- End of picture text -----**
Page 30
@ a
GAD'S HILL SCHOOL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
## 8. Staff costs
**----- Start of picture text -----**
|||||||||
|---|---|---|---|---|---|---|---|
|2023|2022|
|£|£|
|Wages|and|salaries|2,590,271|2,369, 132|
|Social|security|costs|238,989|211,522|
|Contribution|to|defined|contribution|pension|schemes|418,663|398,478|
|3,247,923|2,979,132|
**----- End of picture text -----**
The average number of persons employed by the Charity during the year was as follows:
**----- Start of picture text -----**
||||||||
|---|---|---|---|---|---|---|
|2023|2022|
|No.|No.|
|Average|number|of full-time|equivalent|employees|97|85|
**----- End of picture text -----**
| :
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
**----- Start of picture text -----**
|||||||||
|---|---|---|---|---|---|---|---|
|2023|2022|
|No.|No.|
|In|the|band|£60,001|-|£70,000|1|1|
|In|the|band|£80,001|-|£90,000|1|1|
**----- End of picture text -----**
Key management personnel are considered to the be the Governors of the school and their remuneration is disclosed below in note 9.
## 9. Governors’ remuneration and expenses
During the year, one or more Governors has been paid remuneration or has received other benefits from an employment with the Charity. The value of Governors’ remuneration and other benefits was as follows:
**----- Start of picture text -----**
||||||
|---|---|---|---|---|
|2023|2022|
|£|£|
|Mr P|Savage|Remuneration|88,227|81,020|
**----- End of picture text -----**
Remuneration of £88,227 (2022 - £81,020) and pensions contributions of £20,892 (2022 - £19,186) were paid in respect of the highest paid Governor.
During the year, retirement benefits were accruing to 1 Governors (2022 - 1) in respect of defined benefit pension schemes.
Page 31
y >
| -
| |
GAD’S HILL SCHOOL (A company limited by guarantee)
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
## 9. Governors’ remuneration and expenses (continued)
During the year ended 31 July 2023, expenses totalling £NIL were reimbursed or paid directly to Governors (2022 - £339).
|
## 10. Tangible fixed assets
||Freehold
property|Motor
vehicles|Fixtures and
fittings|Total|
|---|---|---|---|---|
||£|£|£|£|
|Cost or valuation|||||
|At 1 August 2022|6,500,000|243,076|600,913|7,343,989|
|Additions|-|58,460|18,769|77,229|
|Disposals|-|(71,758)|-|(71,758)|
|At 31 July 2023|6,500,000|229,778|619,682|7,349,460|
|Depreciation|||||
|At 1 August 2022|446,065|192,281|504,335|1,142,681|
|Charge forthe year|89,069|39,003|36,678|164,750|
|On disposals|-|(71,758)|-|(71,758)|
|At 31 July 2023|535,134|159,526|541,013|1,235,673|
|Net book value|||||
|At 31 July 2023|5,964,866|70,252|78,669|6,113,787|
|At31July2022|6,053,935|50,795|96,578|6,201,308|
Included in land and buildings is freehold land at valuation of £140,000 (2022 - £140,000).
Page 32
ri . @
| | | |
## GAD'S HILL SCHOOL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
## 11. Debtors
||2023|2022|
|---|---|---|
||£|£|
|Due within one year|||
|Trade debtors|160,750|89,927|
|Other debtors|8,035|4,145|
|Prepayments and accrued income|58,659|31,754|
||227,444|125,826|
|12.|Creditors: Amounts falling duewithin one year|||
|---|---|---|---|
|||2023|2022|
|||£|£|
||Bank loans|207,590|200,061|
||Tradecreditors
Othercreditors|104,844
223,455|140,035
208,263|
||Accruals and deferred income|104,857|80,776|
|||640,746|629,135|
|13.|Creditors: Amounts falling due aftermore than one year|||
|||2023|2022|
|||£|£|
||Bankloans|2,507,822|2,715,412|
The entire balance of bank loans shown above is secured by a legal charge over the freehold property of Gad's Hill School. The loan is repayable in monthly instalments over the 15 year term. Interest is being charged each month at a fixed rate of 3.7% until 2029 and subsequently at a variable rate of 2.44% over the base rate until maturity in 2034.
Included within the above are amounts falling due as follows:
|||2023|2022|
|---|---|---|---|
|||£|£|
|Between one and two years||||
|Bank loans||215,402|207,590|
||.|||
|Between two and five years||||
|Bankloans||695,460|670,832|
Page 33
». %
# GAD'S HILL SCHOOL
(A company limited by guarantee)
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
## 13. Creditors: Amounts falling due after more than one year (continued)
2023 2022 £ £
Over five years
Bank loans 1,596,960 1,836,990
## 14. Financial instruments
2023 2022 £ £
|
## Financial assets
Financial assets measured at amortised cost 650,691 680,029 | . SSS lll 2023 2022 **|** Financial liabilities | Financial liabilities measured at amortised cost 3,100,587 3,099,968 | Financial assets measured at amortised cost comprise trade debtors, other debtors, accrued income ! cash at bank.
Financial assets measured at amortised cost comprise trade debtors, other debtors, accrued income and cash at bank.
Financial liabilities measured at amortised cost comprise trade creditors, other creditors, accruals and bank loans.
Page 34
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@- a4
## GAD'S HILL SCHOOL (A company limited by guarantee)
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
## 17. Analysis of net assets between funds
## Analysis of net assets between funds - current year
||Unrestricted|Total|
|---|---|---|
||funds|funds|
||2023|2023|
||£|E|
|Tangible fixed assets|6,113,787|6,113,787|
|Current assets|709,350|709,350|
|Creditors due within one year|(640,746)|(640,746)|
|Creditors due in more than one year|(2,507,822)|(2,507,822)|
|Provisions for liabilities and charges|(72,769)|(72,769)|
|Total|3,601,800|3,601,800|
## Analysis of net assets between funds - prior year
||Unrestricted|Total|
|---|---|---|
||funds|funds|
||2022|2022|
||£|£|
|Tangible fixed assets|6,201,308|6,201,308|
|Current assets|805,855|805,855|
|Creditors due within one year|(629,135)|(629, 135)|
|Creditors due in more than one year|(2,715,412)|(2,715,412)|
|Provisions for liabilities and charges|(86,803)|(86,803)|
|Total|3,575,813|3,575,813|
Page 39
NL og 7 W
## GAD'S HILL SCHOOL (A company limited by guarantee)
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
## 18. Reconciliation of net movement in funds to net cash flow from operating activities
**----- Start of picture text -----**
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|2023|2022|
|£|£|
|Net|income|for the|year|(as|per|Statement|of|Financial|Activities)|18,190|134,817|
|Adjustments|for:|
|Depreciation|charges|:|164,750|146,653|
|Interest|payable|93,809|112,334|
|Interest|receivable|-|(1,310)|
|(Increase)/decrease|in|debtors|(101,618)|(6,877)|
|Increase/(decrease)|in|creditors|4,082|18,921|
|Repayment|of|pension|deficit|(6,237)|(7,670)|
|Net|cash|provided|by|operating|activities|172,976|396,868|
|19.|Analysis|of cash|and|cash|equivalents|
|2023|2022|
|||
||Cash|in|hand|481,906|680,029|
|Total|cash|and|cash|equivalents|481,906|680,029|
|||20.|Analysis|of changes|in|net|debt|
**----- End of picture text -----**
**----- Start of picture text -----**
|||||||||||
|---|---|---|---|---|---|---|---|---|---|
|Other|non-|
|At|1|August|cash|At|31|July|
|2022|Cash|flows|changes|2023|
|£|£|£|£|
|Cash|at|bank|and|in|hand|680,029|(198,123)|-|481,906|
|Debt|due|within|1|year|(200,061)|200,061|(207,590)|(207,590)|
|Debt|due|after|1|year|(2,715,412)|-|207,590|(2,507,822)|
|(2,235,444)|1,938|-|(2,233,506)|
**----- End of picture text -----**
;
Page 40
“1° *
## GAD’S HILL SCHOOL
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
## 21. Pension commitments
The school operates two pension schemes, one of which provides benefits based on a final or career average pensionable salary, while the other operates on the basis of a defined contribution levels from the employer and the employee.
Teaching staff belong to the Teachers' Pension Scheme "TPS". This is an unfunded defined benefit scheme operated by the Government with contributions calculated on an actuarial basis, but set in relation to the current service period only.
In accordance with paragraph 28.11 of FRS 102, the contributions have been accounted for as if this were a defined contribution scheme. The employers contributions for the period were 23.68%. Some members of the support and administrative staff belong to The Independent Schools' Pension Scheme "ISPS". This scheme is run by Verity's Governors Limited. Verity is the governor of the Pensions Trust for Charities and Voluntary Organisations. Contributions are calculated as a percentage of employee's earnings. The contributions made by the employees are matched by the employer to the maximum of 4%. Employees are able to contribute more than this if they wish.
A full actuarial valuation for the scheme was carried out with an effective date of 30 September 2020. This actuarial valuation was certified on 22 December 2021 and showed assets of £201.1m, liabilities of £256.3m and a deficit of £55.2m. To eliminate this funding shortfall, the trustees and the participating employers have agreed that additional contributions will be paid.
The scheme is classified as a ‘last-man standing arrangement’. Therefore the school is potentially liable for other participating employers’ obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
The school has entered into an arrangement to repay the deficit of the multi-employer ISPS. The amount is repayable over 13 years, with the first repayment being made in September 2016. In the prior year this has been discounted to its net present value of £86,803. The effective interest charge will be unwound to the Statement of Financial Activities over the repayment period.
The pension charge for the period was £418,663 (2022 - £398,478). Outstanding contributions on the balance sheet amount to Enil (2022 - Enil).
During the year, actuarial gains of £7,797 (2022: £21,695 losses) were recognised. These losses arose following a change in actuarial assumptions and amendments to the contribution schedule. The actuary has applied a discount rate to the provision of 3.24%. This rate is equivalent to the yield of a full AA corporate bond.
!
The school also paid a pension of £250 per month to a former Headmistress. It is committed to pay this for the remainder of her life. A provision of £17,596 (2022 - £20,596) for the unfunded pension is included within other creditors.
Page 41
GAD'S HILL SCHOOL ; (A company limited by guarantee)
;
|
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
## 22. Operating lease commitments .
|Operating lease commitments
.|Operating lease commitments
.|Operating lease commitments
.|Operating lease commitments
.|Operating lease commitments
.|
|---|---|---|---|---|
|At31 July 2023 the Charityhad commitmentstomakefutureminimum leasepayments undernon-|||||
|cancellable operating leases as follows:||||;|
||.||2023|"3022|
||5|:|£|£|
|Not laterthan 1 year|||10,691|10,697:|
|Laterthan 1 yearand not|laterthan 5 years||21,382|32,074~|
||||32,073|42,765|
|Thefollowing leasepayments||have been recognised asanexpense inthe Statementoffinancial|||
|activities:|||||
||||2023|2022|
||||£|£|
|Operatingleaserentals||,|-|10,940|
## 23. Related party transactions
During the year, the School was invoiced for insurance services by The Waterhouse Group, a business in which Mr P Waterhouse, the father of governor Mrs K Hillocks, is the sole proprietor. The commission earned by The Waterhouse Group was £5,880 (2022: £5,970). Total purchases from The Waterhouse Group totalled £58,095 in the year (2022: £55,180). No balance was outstanding at year end (2022: Enil).
f
During the year, the school received donations of £153 (2022 - Enil) from The Friends of Gad's Hill | School. During the year, the school did not pay for any expenses on behalf of The Friends of Gad's Hill | School (2022 - £nil). nit was outstanding at the year-end (2022 - Enil). It is a charity in which there are, | common governors. |
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