**Charity registration number SC009352 (Scotland) Company registration number SC023577** ## **ST MARY'S SCHOOL, MELROSE** **ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025** ## **ST MARY'S SCHOOL, MELROSE** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 8| |Independent auditor's report|9 - 12| |Statement of financial activities|13| |Balance sheet|14| |Statement of cash flows|15| |Notes to the financial statements|16 - 28| ## **ST MARY'S SCHOOL, MELROSE** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 AUGUST 2025**_ The School Governors, who are also the trustees and directors of the charity for the purposes of the Companies Act 2006 and the Charities and Trustees Investment (Scotland) Act 2005, present their report with the financial statements of the charity for the year ended 31st August 2025. The trustees have adopted the provisions of 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). St. Mary's School, Melrose is a charitable company and company limited by guarantee, founded in 1945. ## **Objectives and activities** In accordance with Charitable Company's Memorandum and Articles of Association, the objective of the School is the advancement of education. ## **Principle activities** The company operates an independent preparatory school. ## **School development plan** The School’s core values of caring, communication, curriculum, confidence, connectivity, and curiosity underpin daily life at St. Mary's. These values are central to St. Mary's education and are lived out every day in the busy routines of pupils and staff. The review of schemes of work and assessment throughout the lower, middle, and upper parts of the School are on-going with the Headmaster, Director of Studies, and Class Teachers from pre-prep through to Form 8 reporting to the Education Committee of the Board of Governors. The Education Committee serves the function of channelling ideas from pupils and staff to the Board of Governors and the presence, throughout the year, of three Governors on this Committee offers a regular overview. The Committee meets on a termly basis to discuss key agenda items such as, Health and Safety in the classroom; Child Protection and General Data Protection Regulation (GDPR); Innovative Classroom practice; Access to learning, and the campus. Pupils at St. Mary’s enjoy learning and parents and pupils have been positive about their experiences both within the academic and wider life of the School. The Eco Committee, Library Group, Boarding Committee, and Rights Respecting School Award Committee are all examples of forums where the pupil voice makes a significant difference to life at St. Mary’s. In addition, staff are active in seeking the opinions of pupils in their subject areas and acting upon feedback. Any concerns raised are taken seriously and open conversation amongst pupils, parents and staff is encouraged and valued. Our “You Said, We Did” wall provides an excellent visual display of the pupil voice. As well as the core subjects of English, Maths and Science, pupils attend lessons in Spanish, French, History, Geography, Classical Civilisation, Religious and Moral Education (RME), Latin, Information Computer Technology (ICT), Art, Design and Technology, Personal and Social Health Education (PSHE), Music, Drama, Physical Education (PE), Environmental Studies, and Environmental Science as they progress through the school. In the final year pupils may be invited to study Ancient Greek as an additional Common Entrance subject. Teaching at St. Mary’s is creative, engaging, inspiring and fun. This is monitored and supported by regular review of practice along with our Professional Review and Development (PRD) system, in service training (INSET) days and engagement with the General Teaching Council for Scotland (GTCS). The PRD system has a two-year cycle and provides staff with the opportunity to access training, develop their skills, knowledge and understanding and set personal goals and targets with support of their line manager. This process also complements the opportunity for staff to contribute to the Whole School Improvement Plan by providing a platform where ideas, observations and opinions can be shared about the day to day running of the school and the medium and longer-term strategies in place. St. Mary’s has an excellent Learning Support Department that ensures specific learning needs are catered for appropriately and sensitively. Children requiring additional support with their learning are identified through regular staff meetings and testing is conducted where appropriate. Staff are proactive in the staged intervention process within the school and support is provided within the regular classroom setting where possible, and on a one-to-one or small group basis where it is deemed more advantageous to the pupil / pupils. We work with parents, pupils, and outside agencies to support individual children and incorporate advice and resources into our planning and professional development. The school is accessible to all users and is well equipped to meet the needs of our children and staff. - 1 - ## **ST MARY'S SCHOOL, MELROSE** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2025**_ ## **School development plan (continued)** Monitoring of Health and Wellbeing continues to be of prime importance, with Form Tutors creating opportunities for sharing feelings and exploring emotions and anxieties. We have the ongoing input of one of our Governors who works professionally and expertly in the field of counselling and psychology. Two members of staff have completed training through the “Girls on Board” programme and this has been rolled out in the PSHE programme to include all girls in Form 6-8. Parents have also been informed of the programme and encouraged to read and indeed purchase the supporting literature. Weekly assemblies offer an opportunity for the whole school to gather with Headmaster, staff and pupil-led assemblies taking place, as well as a range of invited guests. ## **Community partnerships and shared benefit** The School is very much part of the independent school network north and south of the border. Visits to various schools, both for staff training or educational and extra-curricular activities, allow St. Mary's to maintain close links with other schools. Equally, visits from independent prep schools and senior schools are commonplace and enhance the valued links the School has with other independent schools. Heads and other representatives from senior schools visit St. Mary's throughout the School year to deliver an Assembly address, afterwards meeting with pupils, staff, and parents. Bang Goes the Borders returned to the campus in September 2024 with a full programme of engaging workshops for youngsters from across the Borders. Sponsored by Vision Scotland, Bright Green Nature, and Mitchell’s Glass we welcomed presenters from Senior Schools, Universities, Colleges, and national organisations such as Glasgow Science Centre. Sponsorship means that this event remains open to all and is free to attend. St. Mary’s is proud of its place within the local community and constantly strives to work with partners to provide educational opportunities for all and immerse itself in local community life. Many pupils participated in Melrose Festival week, representing the school by singing at the Crowning Ceremony, and riding in the junior rideout as well as taking part in the fancy dress competition. Much success was celebrated by our young equestrians, competing locally and further afield, several of whom have once again qualified for the British Championships in October 2025. Many children play for their local rugby clubs in Melrose, Selkirk, Lauder, and Jedburgh and the local Fjordhus Reivers hockey and Galashiels Athletics clubs are very well attended by St. Mary’s pupils. The relationships between these clubs and the school are positive and mutually beneficial. Links with local brass bands saw pupils performing with Jedburgh Instrumental Band and Galashiels Town Band, including participation in Scottish Borders Brass Band workshops, contests, and the National Youth Brass Band Championships of Scotland. St. Mary's has closer links with the community than ever before. By continuing to increase and strengthen its involvement with schools, opportunities are provided for local schools to be involved in leadership challenge activities, choir concerts, music lessons, and drama productions. Opportunities to link with Melrose Primary School and Earlston High School, whether for sports fixtures or coaching sessions, have allowed a rapport to develop between pupils and staff. These community links have also led to St Mary's offering work experience opportunities to senior school pupils from Peebles, Selkirk, Earlston, Hawick High Schools and Galashiels Academy. Links with Borders College enable us to offer placements to students within Kindergarten and Reception Class to complete their HNC Early Years courses. Bursary allocation remains high, the School recognises the need to support families and the benefit that bursarial support offers to families, providing an independent preparatory school education for their children. All bursary applications are subject to due diligence and require annual re-application. - 2 - ## **ST MARY'S SCHOOL, MELROSE** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2025**_ ## **Achievement and performance** The Trustees would like to thank all St Mary’s staff for their hard work and dedication throughout the academic year. The curriculum continues to be well balanced and appropriately rigorous, presenting parents a wider choice of senior schools for their children. The school prides itself on its academic record and achievements within the disciplines of sport, performing arts and the creative arts. School examination results are measured against expectations from GL Assessment Cognitive Ability Testing (CAT) that takes place for each pupil in September each year. Achieved results indicate all pupils achieve above expected levels at Common Entrance (CE). This year our pupils collectively earned a total of two academic scholarship, 3 sports scholarships, 1 drama scholarship, 1 music scholarship, 1 design and technology scholarship, 1 sports exhibition, 1 drama exhibition and 1 sports scholarship. All Form 8 pupils passed Common Entrance and gained entrance to their chosen senior school. The introduction of the Spelling Ninja programme, Big Cat Phonics and Benchmarking, for pupils from Reception to Form 5, has had a very positive impact on Literacy and data for this continues to be monitored closely by the Head of English. Data from the Accelerated Reader initiative continues to give us a detailed overview of pupils' reading engagement and progress whilst the achievement of our Reading Schools Silver Award has allowed for enhanced visibility of pupils’ engagement with reading initiatives throughout the school. In the 2025 UK Mathematics Trust Junior Challenge our senior pupils secured fifteen awards in total - 4 Gold, 5 Silver and 6 Bronze awards. Digital Technology continues to feature daily in teaching and learning. Touch-typing skills are embedded within the curriculum from Form 2 upwards. Regular Online Safety sessions take place with all pupils, and one member of staff has now completed their CEOP Ambassador training. This has fed into online safety lessons for children as well as a session for parents. Instrument instruction continues to flourish at St. Mary’s, with a cohort of nine visiting instructors coaching our young people on a wide variety of instruments. Pupils were able to sit grade exams with the Associated Board of the Royal Schools of Music, Trinity College, and Rock School, with many gaining a Merit or Distinction pass. Our athletes were thrilled to compete in athletics at Fettes College in June and deservedly came away with 10 gold, 10 silver and 13 bronze medals as well as being runners up for the Saville Cup. In cross country the U9 boys and U11 girls’ teams both placed 1st in the Scottish Independent Schools Cross Country event and in the individual event St. Mary’s won placed first in U9 boys and U11 girls. Our cross-country team also took part in the annual Rawthey Run at Sedbergh School achieving a 1st place in the U11 girls’ individual race and 2nd place in the U11 girls team event. Our Global Awareness Calendar continues to draw our attention to national days of recognition and causes that we can recognise and support. The European Day of Languages was celebrated with an assembly and activities relating to that for classes. The Lunar New Year was recognised across the School and our youngest pupils in Kindergarten enjoyed a Chinese lunch. The Eco Committee spent time at Faldonside re-wilding some area of the grounds and created a wild space with habitats, bug hotels, and a pond. Our Form 7 participated in a project throughout the Summer Term at The Haining, Selkirk where through hands-on learning and environmental stewardship, students gained valuable experience and knowledge about biodiversity, habitat restoration, and ecological data collection. - 3 - ## **ST MARY'S SCHOOL, MELROSE** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2025**_ ## **Achievement and performance (continued)** The School's general programme of maintenance and repair work continued throughout the year. We were also delighted to be able to enhance facilities in our kitchen and dining room, including a new salad bar, hot serving station and serving dishes. We finished the year with the development of our new STEAM technology room getting underway. The School continued to benefit from the support provided by The Friends of St. Mary's and Former Pupils (FP) Club. The Friends of St. Mary’s, is an active parent-led group who fundraise, support, and organise several events throughout the school year. The FP Club continue to be an active group supporting the School and their annual FP dinner was once again attended by former pupils from many eras. The School welcomes the close relationship with parents and families having an open-door approach with the Headmaster and staff, ensuring a supportive environment for all pupils. Parent engagement with our School Portal and App has been good with all our families registered. Pupil reports and general notices are sent out via the Portal and App, and staff have found this to be a quick and easy means of communication when on the move, particularly at sporting events. Our social media pages continue to have excellent engagement with current and prospective families, former pupils, and wider community. The School has several key performance indicators that are regularly reviewed and monitored. These are set and reviewed in conjunction with the Board of Governors and are split into financial and non-financial key performance indicators (KPIs). Current indicators include but are not limited to income levels, pupil numbers, management of operating and capital costs, bursary support, health and safety including monitoring pastoral care, and staff development. - 4 - ## **ST MARY'S SCHOOL, MELROSE** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2025**_ ## **Financial review** The principal source of income is fees. Net expenditure of £159,597 (2024: net income £170,264), shown after investment gains of £28,314 (2024: £37,432), was achieved during the year, being net expenditure of £207,384 (2024: net income £66,644) to the general fund, and net income of £47,787 (2024: net income of £103,620) to the restricted fund. Despite the net expenditure for the year the Governors are pleased with the overall performance of the School. The net expenditure is attributed to the introduction of VAT on fees in January 2025 at which time the School reviewed its fee levels to try and ensure that a St Mary’s education remained viable for our parent body. Class and boarding fees amounted to £2,218,650 after discounts of £205,331 and bursaries of £385,390 (2024 £2,409,899 after discounts of £186,357 and bursaries of £321,123). The value of each class of discount was as follows: ||£| |---|---| |Bursaries Awarded 2025|385,390| |Discounts Awarded 2025|| |Staff|90,255| |Sibling|104,847| |Other|10,229| |Total Discounts 2025|590,271| ## **This is shown in terms of the number of pupils receiving assistance as follows:** ||Michaelmas Term 2024|Lent & Summer Terms 2025| |---|---|---| |Bursary only|37|32| |Discount only|40|61| |Bursary & Discount|2|11| |**Total pupils receiving assistance**|**79**|**104**| The Trustees identify the principal risks and uncertainties to be pupil numbers, loss of key personnel and damage to the School’s reputation. In addition, economic and political environment uncertainty is a risk that the School has no control over. The main factors likely to affect future financial performance, include the failure to manage costs, such as rising rates, utilities and employer pension costs that may all lead to higher fees which in turn become unaffordable for some families resulting in a drop in pupil numbers. In addition, the introduction of VAT on fees from January 2025 will continue to have a significant impact on the School’s finances and the School will need to once again manage this as well as it possibly can to support current families and minimise the risk to the school roll. ## **Fixed assets** The Trustees are of the opinion that, in aggregate, the market value of land and buildings is no less than the book value of the assets. ## **Reserves policy** In recent years’ surpluses have allowed the School to start building a cash reserve to assist in meeting objectives in developing the School. The policy remains to strengthen reserves where possible although this is impacted by the economic environment and challenges faced by the School at the time. Development.of.the.fabric.of.the.School.will.continue.to.be.a.work.in.progress.and.various.elements.of refurbishment are constantly being actioned or are under review. The Trustees continue to be satisfied that they have sufficient reserves for maintaining and developing the fabric of the School and as a reserve for general running costs in the short term. - 5 - ## **ST MARY'S SCHOOL, MELROSE** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2025**_ ## **Future plans** Despite the year’s net expenditure, the strong financial planning over previous years allowed the Governors to recognise the enormous effort and commitment put once again in by the staff, both teaching and non-teaching, by awarding a pay increase for the 2025-26 academic year. The Governors will continue to consider moving forward with various development projects although in the current economic climate, it remains the case that continued investment in the School will require the Board to manage the School finances more carefully than ever in the year ahead. There is however a continued commitment and support from the Board of Trustees to ensure St Mary’s continues to grow and position itself as one of the best Prep Schools in Scotland. ## **Structure, governance and management** ## **Governing Document** The Charity is controlled by its Memorandum and Articles of Association and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. ## **Governing Body** The Board of Governors (Trustees) determine the general policy of the School. The day-to-day management of the School is delegated to the Headmaster. The membership of the Board during the year is set out below. All Trustees served throughout the year except as stated. Mr G. Aitkenhead and Mrs F. Maclay retire by rotation at the AGM. Being eligible, they both offer themselves for reelection. The company has no share capital and therefore no Trustee holds any shares but each, as a member, has guaranteed to pay a sum of £1 if called upon. Trustees are elected in accordance with the terms set out in the Articles of Association. Trustees are elected for a three-year term for a period not normally exceeding twenty years. ## **Recruitment and appointment of trustees** When vacancies arise, Trustees are very carefully selected based on the benefit that their experience and expertise can bring to the Board. The Board strive to ensure a wide mix of skills and experience exists within the group. Trustees attend training courses and seminars run by bodies such as the Scottish Council of Independent Schools to ensure knowledge within the group is both developed and up to date. The School continues to draw from its Parent Body for Parent Governors, with appropriate skills, as required. The Board of Trustees of St Mary's School, Melrose recognises that there will continue to be challenges for the School and its parent body. The Trustees are confident the School is strongly placed to continue with development plans and to provide help where needed. The School will be governed prudently and wisely to ensure that St Mary's stands strong and ready to embrace the future. ## **Remuneration policy** ## **Key management remuneration** Remuneration of key management is determined by the Finance and General Purposes Committee, for approval by the Board, considering employees’ level of responsibility and salaries paid by similar organisations. ## **Risk management** The Board continues to keep the School's activities under review, particularly regarding any major risks that may arise and to monitor steps which can be taken by which those risks already identified by the Trustees can be mitigated. At each Board meeting the Governors discussed at length the challenges facing the independent education sector and the implications for St. Mary's School. A risk register is in place, monitored, reviewed, and maintained by a committee of eleven staff members from different areas of the School. The document is overseen by the Governance and Risk Committee who report back to the full Board on a termly basis with a summary of key considerations. The register examines the Structure, Governance and Management of the School’s operations, considering the major risks, allocating responsibilities, and suggests appropriate mitigating actions. It is the opinion of the Governors that the School’s management team has established resources and review systems which, under normal conditions, should allow risks to be mitigated to an acceptable level in the day-to-day operations of the School. - 6 - ## **ST MARY'S SCHOOL, MELROSE** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2025**_ ## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number** SC023577 (Scotland) **Registered Charity number** SC009352 ## **Registered office** Abbey Park Melrose Roxburghshire TD6 9LN ## **Trustees** G T G Baird (Chair) (Resigned August 2025) Mrs G Adamson G Aitkenhead A J Armstrong A Garden (Appointed July 2025) P J S Macdonald (Chair) (From August 2025) Mrs F X H Maclay Dr R Murphy J O’Neil (Appointed August 2025) Mrs R Trotter B Weir ## **Headmaster** W Harvey BEd (Hons) **Company Secretary** Mrs F M Tait ## **Senior Statutory Auditor** Mrs F Haro ## **Auditors** Thomson Cooper Accountants 22 Stafford Street Edinburgh EH3 7BD ## **Solicitors** Lindsays Caledonian Exchange 19a Canning Street Edinburgh EH3 8HE ## **Banking Services** Royal Bank of Scotland 36 St Andrew’s Square Edinburgh EH2 2YB - 7 - ## **ST MARY'S SCHOOL, MELROSE** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2025**_ ## **Statement of Trustees' responsibilities** The Trustees, who are also the directors of St Mary's School, Melrose for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation. The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 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. ## **Auditor** The auditors, Thomson Cooper Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting. ## **Disclosure of information to auditor** Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information. Report of the Trustees, incorporating a strategic report, approved by order of the Board of Trustees, as the company directors on 4th February 2026 and signed on the Board’s behalf by: .............................. 04-02-26 Date: ............................................. - 8 - ## **ST MARY'S SCHOOL, MELROSE** ## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ST MARY'S SCHOOL, MELROSE** ## **Opinion** We have audited the financial statements of St Mary's School, Melrose (the ‘Charity’) for the year ended 31 August 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31 August 2025 and of its incoming resources and application of resources, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and 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. - 9 - ## **ST MARY'S SCHOOL, MELROSE** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ST MARY'S SCHOOL, MELROSE** ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in relation to which the Charities Accounts (Scotland) Regulations 2006 requires us 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 - proper accounting records have not been kept; or - the financial statements are not in agreement with the accounting records; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of Trustees** As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor's responsibilities for the audit of the financial statements** We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. - 10 - ## **ST MARY'S SCHOOL, MELROSE** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ST MARY'S SCHOOL, MELROSE** ## **Extent to which the audit was considered capable of detecting irregularities, including fraud** The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the accounts, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the accounts, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit. In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the accounts due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risk of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team: - obtained an understanding of the nature of the sector, including the legal and regulatory frameworks that the charitable company operates in and how the charitable company is complying with the legal and regulatory frameworks; - inquired of management, and those charged with governance, about their own identifications and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; - discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the accounts may be susceptible to fraud. As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS102), Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, Regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended), and the charitable company's government document. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustee's Report, and remaining alert to new or unusual transactions which may not be in accordance with the governing documents. We also considered laws and regulations that have an indirect impact on the financial statements. We performed audit procedures to inquire of management and those charged with governance whether the charitable company is in compliance with these laws and regulations and undertook a review of Education Scotland annual visit reports, Care Inspectorate reports, and searched the online Information Commissioner's Office database for potential breaches in laws and regulations. The audit engagement team identified the risk of management override of controls as the area where the accounts were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluation the business rationale in relation to significant, unusual transactions entered into outside the normal course of business, challenging judgements and estimates. We acknowledge the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulations. The risk increases the more that compliance with laws or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to 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 is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. - 11 - ## **ST MARY'S SCHOOL, MELROSE** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ST MARY'S SCHOOL, MELROSE** ## **Other matters** We were engaged to audit the financial statements of St Mary's School, Melrose for the year ended 31 August 2025. We were not engaged to audit, nor did we audit, the financial statements of St Mary's School, Melrose for the year ended 31 August 2024. Those financial statements were audited by JRW Hogg & Thorburn, whose report, dated 6 February 2025, expressed an unqualified opinion on those financial statements. ## **Use of our report** This report is made solely to the charity’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. ## **Fiona Haro (Senior Statutory Auditor)** For and on behalf of Thomson Cooper, Statutory Auditor Dunfermline 04-02-26 Date: ......................... Thomson Cooper is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. - 12 - ## **ST MARY'S SCHOOL, MELROSE** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 AUGUST 2025**_ |**Unrestricted**
**Restricted**
**funds**
**funds**
**2025**
**2025**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**2**
50
40,250
Charitable activities
**3**
2,313,111
-
Investments
**4**
21,508
-
**Total income**
2,334,669
40,250
**Expenditure on:**
Charitable activities
**5**
2,542,273
20,557
**Total expenditure**
2,542,273
20,557
Net gains/(losses) on
investments
**10**
220
28,094
**Net income/(expenditure)**
(207,384)
47,787
Transfers between
funds
(10,000)
10,000
**Net movement in**
**funds**
**7**
(217,384)
57,787
**Reconciliation of funds:**
Fund balances at 1 September
2024
4,926,887
360,864
**Fund balances at 31 August**
**2025**
4,709,503
418,651|**Total**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2025**
**2024**
**2024**
**£**
**£**
**£**
40,300
72
70,396
2,313,111
2,486,286
-
21,508
33,531
8
2,374,919
2,519,889
70,404
2,562,830
2,453,738
3,723
2,562,830
2,453,738
3,723
28,314
493
36,939
(159,597)
66,644
103,620
-
(10,000)
10,000
(159,597)
56,644
113,620
5,287,751
4,870,243
247,244
5,128,154
4,926,887
360,864|**Total**
**2024**
**£**
70,468
2,486,286
33,539| |---|---|---| |||2,590,293
2,457,461| |||2,457,461| |||37,432| |||170,264
-| |||170,264
5,117,487| |||5,287,751| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. - 13 - ## **ST MARY'S SCHOOL, MELROSE** ## **BALANCE SHEET** ## _**AS AT 31 AUGUST 2025**_ |**Notes**
**Fixed assets**
Tangible assets
**12**
Investments
**13**
**Current assets**
Stocks
Debtors
**14**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**15**
**Net current assets**
**Total assets less current liabilities**
**The funds of the Charity**
Restricted income funds
**18**
Unrestricted funds
**19**|**2025**
**£**
**£**
3,581,716
299,569
3,881,285
900
80,202
1,296,553
1,377,655
(130,786)
1,246,869
5,128,154
418,651
4,709,503
5,128,154|**2024**
**£**
**£**
3,623,568
261,255
3,884,823
900
129,370
1,705,835
1,836,105
(433,177)
1,402,928
5,287,751
360,864
4,926,887
5,287,751|**2024**
**£**
**£**
3,623,568
261,255
3,884,823
900
129,370
1,705,835
1,836,105
(433,177)
1,402,928
5,287,751
360,864
4,926,887
5,287,751| |---|---|---|---| ||||3,884,823
1,402,928| ||||5,287,751| ||||360,864
4,926,887| ||||5,287,751| The notes on pages 16 to 28 form part of these financial statements. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. ## 04-02-26 The financial statements were approved by the Trustees on ......................... .............................. Company registration number SC023577 (Scotland) - 14 - ## **ST MARY'S SCHOOL, MELROSE** ## **STATEMENT OF CASH FLOWS** ## _**FOR THE YEAR ENDED 31 AUGUST 2025**_ |**Notes**
**Cash flows from operating activities**
Cash (absorbed by)/generated from
operations
**24**
**Investing activities**
Purchase of tangible fixed assets
Proceeds from disposal of tangible fixed
assets
Purchase of investments
Investment income received
**Net cash used in investing activities**
**Net cash generated from financing activities**
**Net (decrease)/increase in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2025**
**£**
**£**
(352,151)
(68,639)
-
(10,000)
21,508
(57,131)
-
(409,282)
1,705,835
1,296,553|**2024**
**£**
**£**
512,256
(474,315)
930
(10,000)
33,539
(449,846)
-
62,410
1,643,425
1,705,835| |---|---|---| - 15 - ## **ST MARY'S SCHOOL, MELROSE** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 AUGUST 2025**_ ## **1 Accounting policies** ## **Charity information** St Mary's School, Melrose is a private company limited by guarantee incorporated in Scotland. The registered office is Abbey Park, Melrose, Roxburghshire, TD6 9LN . ## **1.1 Basis of preparation** The financial statements have been prepared in accordance with the Charity's governing document, the Companies Act 2006 the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)". The Charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. ## **1.2 Going concern** At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the next twelve months. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Charity. ## **1.4 Income** Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. Income from charitable activities is recognised net of VAT, discounts and bursaries issued by the Charitable Company. - 16 - ## **ST MARY'S SCHOOL, MELROSE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2025**_ ## **1 Accounting policies** **(Continued)** ## **1.5 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use. ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Heritable land and buildings 2% straight line Improvements to property 5% straight line Plant and equipment 25% straight line Fixtures and fittings 10% striaght line or 10% reducing balance The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. ## **1.7 Fixed asset investments** Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred. ## **1.8 Impairment of fixed assets** At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). ## **1.9 Stocks** Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost. Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. ## **1.10 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. - 17 - ## **ST MARY'S SCHOOL, MELROSE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2025**_ ## **1 Accounting policies** ## **(Continued)** ## **1.11 Financial instruments** The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled. ## **1.12 Employee benefits** The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.13 Retirement benefits** Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. - 18 - ## **ST MARY'S SCHOOL, MELROSE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2025**_ ## **2 Income from donations and legacies** ||**Unrestricted**|**Restricted**|**Total**|**Unrestricted**|**Restricted**|**Total**| |---|---|---|---|---|---|---| ||**funds**|**funds**||**funds**|**funds**|| ||**2025**|**2025**|**2025**|**2024**|**2024**|**2024**| ||**£**|**£**|**£**|**£**|**£**|**£**| |Donations and gifts|50|40,250|40,300|72|70,396|70,468| ## **3 Income from charitable activities** ||**Unrestricted**|**Unrestricted**| |---|---|---| ||**funds**|**funds**| ||**2025**|**2024**| ||**£**|**£**| |**School Fees Receivable**||| |School fee income|2,218,650|2,409,899| |Ancillary income|94,461|76,387| ||2,313,111|2,486,286| ## **Analysis of School Fee Income** ||**School Fees**|**School Fees**| |---|---|---| ||**Receivable**|**Receivable**| ||**2025**|**2024**| ||**£**|**£**| |Class and boarding fees|2,123,502|2,279,627| |Kindergarten Fees|92,948|127,872| |Enrolment Registration fees|2,200|2,400| ||2,218,650|2,409,899| ## **4 Income from investments** ||**Unrestricted**|**Restricted**|**Total**|**Unrestricted**|**Restricted**|**Total**| |---|---|---|---|---|---|---| ||**funds**|**funds**||**funds**|**funds**|| ||**2025**|**2025**|**2025**|**2024**|**2024**|**2024**| ||**£**|**£**|**£**|**£**|**£**|**£**| |Interest receivable|21,508|-|21,508|33,531|8|33,539| - 19 - ## **ST MARY'S SCHOOL, MELROSE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2025**_ ## **5 Expenditure on charitable activities** |
**Direct costs**
Staff costs
Depreciation and impairment
Teaching Costs
Premises Costs
Finance Costs
**Share of support and governance costs (see note 6)**
Support
Governance
**Analysis by fund**
Unrestricted funds
Restricted funds
**6**
**Support costs allocated to activities**
Catering Costs
Office Supplies
IT, Marketing & Telephone
Cleaning & Subcontractor Costs
Professional Fees
Bad Debt Write off
Leasing
Motor Vehicle Costs
Subscriptions
Miscellaneous
Governance costs
**Analysed between:**
School Operating Costs|**School**
**Operating**
**Costs**
**School**
**Operating**
**Costs**
**2025**
**2024**
**£**
**£**
1,737,098
1,692,278
110,491
110,145
71,847
79,976
318,725
297,756
1,684
1,536
2,239,845
2,181,691
313,393
267,587
9,592
8,183
2,562,830
2,457,461
2,542,273
2,453,738
20,557
3,723
2,562,830
2,457,461
**2025**
**2024**
**£**
**£**
96,841
88,397
11,292
12,636
56,637
50,283
12,733
17,683
52,016
29,181
-
13
48,092
42,801
10,071
15,098
8,718
9,111
16,993
2,384
9,592
8,183
322,985
275,770
322,985
275,770| |---|---| - 20 - ## **ST MARY'S SCHOOL, MELROSE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2025**_ |**6**
**Support costs allocated to activities**
**Governance costs comprise:**
Disclosure Scotland
Auditor Remuneration
**7**
**Net movement in funds**
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements
Depreciation of owned tangible fixed assets|**(Continued)**
**2025**
**2024**
**£**
**£**
592
383
9,000
7,800
9,592
8,183
**2025**
**2024**
**£**
**£**
9,000
7,800
110,491
110,145|**(Continued)**
**2025**
**2024**
**£**
**£**
592
383
9,000
7,800
9,592
8,183
**2025**
**2024**
**£**
**£**
9,000
7,800
110,491
110,145| |---|---|---| |||8,183| |||**2024**
**£**
7,800
110,145| ## **8 Trustees** None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year. ## **9 Employees** The average monthly number of employees during the year was: |Teaching Staff
Admin/Grounds
Catering/Cleaning
Gap Year Students
Total
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2025**
**Number**
32
6
13
3
54
**2025**
**£**
1,397,444
133,561
206,093
1,737,098|**2024**
**Number**
32
7
14
3| |---|---|---| |||56| |||**2024**
**£**
1,372,716
126,408
193,154| |||1,692,278| - 21 - ## **ST MARY'S SCHOOL, MELROSE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2025**_ ## **9 Employees** ## **(Continued)** |The number of employees whose annual remuneration was more than £60,000
is as follows:
£90,001 to £100,000
£100,001 to £110,000
**Remuneration of key management personnel**
The remuneration of key management personnel was as follows:
Aggregate compensation|**2025**
**Number**
-
1
**2025**
**£**
269,862|**2024**
**Number**
1
-| |---|---|---| |||**2024**
**£**
241,081| The key management personnel if the school comprise the trustees, headmaster, deputy head and school administrator. None of the trustees were remunerated for their duties as trustees during the year. ## **10 Gains and losses on investments** ||**Unrestricted**|**Restricted**|**Total**|**Unrestricted**|**Restricted**|**Total**| |---|---|---|---|---|---|---| ||**funds**|**funds**||**funds**|**funds**|| ||**2025**|**2025**|**2025**|**2024**|**2024**|**2024**| |Gains/(losses) arising on:|**£**|**£**|**£**|**£**|**£**|**£**| |Revaluation of||||||| |investments|220|28,094|28,314|493|36,939|37,432| ## **11 Taxation** The charity is exempt from taxation on its activities because all its income is applied for charitable purposes. - 22 - ## **ST MARY'S SCHOOL, MELROSE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2025**_ ## **12 Tangible fixed assets** |**Heritable land**
**and buildings**
**Improvements**
**to property**
**£**
**£**
**Cost**
At 1 September 2024
3,117,089
1,309,455
Additions
-
36,173
At 31 August 2025
3,117,089
1,345,628
**Depreciation and impairment**
At 1 September 2024
449,472
417,961
Depreciation charged in the year
29,713
56,919
At 31 August 2025
479,185
474,880
**Carrying amount**
At 31 August 2025
2,637,904
870,748
At 31 August 2024
2,667,617
891,494|**Plant and**
**equipment**
**Fixtures and**
**fittings**
**£**
**£**
259,468
163,324
32,466
-
291,934
163,324
239,467
118,868
16,127
7,732
255,594
126,600
36,340
36,724
20,001
44,456|**Total**
**£**
4,849,336
68,639| |---|---|---| |||4,917,975| |||1,225,768
110,491| |||1,336,259| |||3,581,716| |||3,623,568| The heritable land and buildings were last valued on 31st July 1991 by Lorne Brown Associates, Chartered Surveyors, on an open market basis. ## **13 Fixed asset investments** |**Cost or valuation**
At 1 September 2024
Additions
Valuation changes
At 31 August 2025
**Carrying amount**
At 31 August 2025
At 31 August 2024
Investments at fair value comprise:
Bursary Fund
Prize Fund|**Listed**
**investments**
**£**
261,255
10,000
28,314
299,569
299,569
261,255
**2025**
**2024**
**£**
**£**
294,282
256,188
5,287
5,067
299,569
261,255|**Listed**
**investments**
**£**
261,255
10,000
28,314
299,569
299,569
261,255
**2025**
**2024**
**£**
**£**
294,282
256,188
5,287
5,067
299,569
261,255| |---|---|---| |||299,569| |||299,569| |||261,255| |||**2024**
**£**
256,188
5,067| |||261,255| - 23 - ## **ST MARY'S SCHOOL, MELROSE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2025**_ ## **14 Debtors** |**Debtors**||| |---|---|---| |**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income|**2025**
**£**
33,583
39,482
7,137
80,202|**2024**
**£**
22,504
11,857
95,009| |||129,370| ## **15 Creditors: amounts falling due within one year** |**15**
**Creditors: amounts falling due within one year**|| |---|---| |**2025**
**Notes**
**£**
Deferred income
**16**
41,454
Trade creditors
61,447
Other creditors
7,085
Accruals
20,800
130,786
**16**
**Deferred income**
**2025**
**£**
Other deferred income
41,454
Deferred income is included in the financial statements as follows:
**2025**
**£**
Deferred income is included within:
Current liabilities
41,454
Movements in the year:
Deferred income at 1 September 2024
351,274
Released from previous periods
(351,274)
Resources deferred in the year
41,454
Deferred income at 31 August 2025
41,454|**2024**
**£**
351,274
76,779
24
5,100| ||433,177| ||**2024**
**£**
351,274| ||**2024**
**£**
351,274| ||8,473
(8,473)
351,274| ||351,274| Deferred income relates to school fee income received in advance. - 24 - ## **ST MARY'S SCHOOL, MELROSE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2025**_ |**17**|**Retirement benefit schemes**||| |---|---|---|---| |||**2025**|**2024**| ||**Defined contribution schemes**|**£**|**£**| ||Charge to profit or loss in respect of defined contribution schemes|206,093|193,154| The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund. ## **18 Restricted funds** The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used. ||**At 1**|**Incoming**|**Resources**|**Transfers**|**Gains and**|**At 31 August**| |---|---|---|---|---|---|---| ||**September**|**resources**|**expended**||**losses**|**2025**| ||**2024**|||||| ||**£**|**£**|**£**|**£**|**£**|**£**| |Bang goes the||||||| |borders|3,063|8,500|(4,179)|-|-|7,384| |Farr-Out||||||| |Challenge Fund|25|-|-|-|-|25| |Bursary Fund|256,954|-|-|10,000|28,094|295,048| |Capital Fund|100,822|31,750|(16,378)|-|-|116,194| ||360,864|40,250|(20,557)|10,000|28,094|418,651| |**Previous year:**|**At 1**|**Incoming**|**Resources**|**Transfers**|**Gains and**|**At 31 August**| ||**September**|**resources**|**expended**||**losses**|**2024**| ||**2023**|||||| ||**£**|**£**|**£**|**£**|**£**|**£**| |Bang goes the||||||| |borders|1,786|5,000|(3,723)|-|-|3,063| |Farr-Out||||||| |Challenge Fund|17|8|-|-|-|25| |Bursary Fund|210,015|-|-|10,000|36,939|256,954| |Capital Fund|35,426|65,396|-|-|-|100,822| ||247,244|70,404|(3,723)|10,000|36,939|360,864| - 25 - ## **ST MARY'S SCHOOL, MELROSE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2025**_ ## **18 Restricted funds** ## **(Continued)** Capital funds represent restricted donations received specifically for capital projects undertaken by the School. Where a capital asset is acquired using restricted capital funding, the related fund is released over the useful economic life of the asset in line with the depreciation charged. The majority of the capital fund balance at the year end relates to amounts received for the development of the School’s STEM room, which was completed during the year. The Bursary fund (formerly the Bursary & Redevelopment Appeal Fund) is being grown for future sponsorship of pupils qualifying for support. The balance on the fund at the year end comprises investments of £294,282 and cash at bank £766. The Farr out challenge fund was set up to sponsor inter schools competitions events. The balance on the fund at the year end is £25. Bang Goes the Borders fund was set up to host a science initiative day which is held annually. The first event was held in May 2011 and is growing every year. The balance on the funds at the year end comprises of £7,384. ## **19 Unrestricted funds** The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes. ||**At 1**|**Incoming**|**Incoming**|**Resources**|**Transfers**|**Gains and**|**At 31 August**| |---|---|---|---|---|---|---|---| ||**September**|**resources**||**expended**||**losses**|**2025**| ||**2024**||||||| ||**£**||**£**|**£**|**£**|**£**|**£**| |General funds|4,926,887|2,334,669||(2,542,273)|(10,000)|220|4,709,503| |**Previous year:**|**At 1**|**Incoming**||**Resources**|**Transfers**|**Gains and**|**At 31 August**| ||**September**|**resources**||**expended**||**losses**|**2024**| ||**2023**||||||| ||**£**||**£**|**£**|**£**|**£**|**£**| |General funds|4,870,243|2,519,889||(2,453,738)|(10,000)|493|4,926,887| |**Analysis of net assets between**||**funds**|||||| ||||||**Unrestricted**|**Restricted**|**Total**| ||||||**funds**|**funds**|| ||||||**2025**|**2025**|**2025**| ||||||**£**|**£**|**£**| |**At 31 August 2025:**|||||||| |Tangible assets|||||3,520,307|61,409|3,581,716| |Investments|||||5,287|294,282|299,569| |Current assets/(liabilities)|||||1,183,909|62,960|1,246,869| ||||||4,709,503|418,651|5,128,154| ## **20 Analysis of net assets between funds** - 26 - ## **ST MARY'S SCHOOL, MELROSE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2025**_ |**20**|**Analysis of net assets between funds**|||**(Continued)**| |---|---|---|---|---| |||**Unrestricted**|**Restricted**|**Total**| |||**funds**|**funds**|| |||**2024**|**2024**|**2024**| |||**£**|**£**|**£**| ||**At 31 August 2024:**|||| ||Tangible assets|3,614,368|9,200|3,623,568| ||Investments|5,067|256,188|261,255| ||Current assets/(liabilities)|1,307,452|95,476|1,402,928| |||4,926,887|360,864|5,287,751| ## **21 Operating lease commitments** ## **Lessee** At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: |Within one year
Between two and five years|**2025**
**£**
48,836
121,747
170,583|**2024**
**£**
54,146
170,231| |---|---|---| |||224,377| ## **22 Secured Debts** Any overdraft is secured by a standard security over the school buildings and land and by a bond and floating charge over all the company's assets. The school currently has no overdraft facility in place. ## **23 Employee Benefits Obligations** During the year, the charity exited the Scottish Teachers' Superannuation Scheme. As the scheme is unfunded, there was no deficit or surplus to distribute on withdrawal from the scheme. The teaching staff were enrolled into a private pension scheme. - 27 - ## **ST MARY'S SCHOOL, MELROSE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 AUGUST 2025**_ |**24**
**Cash (absorbed by)/generated from operations**
**2025**
**£**
(Deficit)/surplus for the year
(159,597)
**Adjustments for:**
Investment income recognised in statement of financial activities
(21,508)
Fair value gains and losses on investments
(28,314)
Depreciation and impairment of tangible fixed assets
110,491
**Movements in working capital:**
Decrease/(increase) in debtors
49,168
Increase in creditors
7,429
(Decrease)/increase in deferred income
(309,820)
**Cash (absorbed by)/generated from operations**
(352,151)|**2024**
**£**
170,264
(33,539)
(37,432)
110,145
(78,376)
38,393
342,801
512,256| |---|---| ## **25 Analysis of changes in net funds** The Charity had no material debt during the year. - 28 -