High School of Dundee Incorporated by Royal Charter 1859 and Education (Scotlandl Act 1980 {as amended) Charity numberSC011522 Group financial statements for the year ended 31 July 2024 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page." 1144 High School of Dundee Contents Page Board of Diroctors and officials Directors, reF)Ort 2-11 Statement of Directors, responsibilities 12 Independent auditorfs report 13-15 Group ststemenl of financial activities (incorporating the income and expenditure account) 16-17 Croup and School balanGe sheets Group and School cash flow statement 19 Notes to the financial statements 20-41 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page." 2 144 High School of Dundee Board of Directors and officials Directors Chalr Ex Offlclo Dlredors Elected by the Guildry Incorporation of Dundeo Elected by the Nlne Incorporated Trades of Dundee Elected by the Old Boys. Club Elacted by the Old Girls, Club Elected by the Parents. Association Elected by Friends of The High School of Dundee Co-opted Dlrectors Principal office Rector Secretary & Chief Operating Officer Clerk to Ihe Board Audltor Henderson Loggie LLP, Stalulory Auditor Bankers Royal Bank of Scotland plc Investment advisers Seven Investment M8n8g8ment LLP HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page." 3 144 High School of Dundee Directors, report The Directors have pleasure ift submitting their financial statements for the year ended 31 July 2024. The information sel out on page 1 forms part of this report. The financial statements (x)mply with current statutory requirements. the constitution of The High School of Dundee Ithe"School'l, and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their tinancial statements In accordanc8 Wltii th8 Pinancial Keporling blandard applicabl8 In the UK and Republic of Ireland IFRS 1021. Rgforgnca and Administration Information The management of the School is the responsibility of the Directors who are elected and co-opted under the rules of the High SC￿)01 of Dundee Scheme 1987. Particulars of the School's professional advisors are shown on page 1. strueturo. Govornance and Management GoverniTng Document The School, which is a charity registered with the Office of the Scottish Charity Regulator IRef SC0115221, is operated under the rules slated in the High School of Dundee Scheme 1987. Governlng Bodles The annual financial statements reflect the aclivilies of The High School of Dundee, The High School of Dundee Scholarship Fund, The High School of Dundee Foundation, and Euclid Trading Ltd. High School of Dundee {Ihe 'School"l.' Under the Rules referred to above, other than for Ex- OfficKI members, Directors are nominated by various established bodies in the City of Dundee and organisalions connected with the School. Details of current members of the Board and their nominating body are shown on page 1. Directors serve a term of three years after which they may be re-elected for a further term of three years. The School provides guidelines to the various bodies and these describe the type of skills and expertise that are felt appropriate when consideration is given lo nominating a member. The School may also express a desire for a nominee with specrfic skills which may be of particular benefit to the Board. The Scholarship Fund (the °Scholarship Fund'l is a separate registered charity ISC0114411 established in 1977 under the terms of a Trust Deed with the purpose of raising and managing funds in order lo provide Scholarships and Bursaries lo allow young people lo allend the School who would otherwise be unable lo do so for financial reasons. The Directors of the School also form the Board of Trustees for the Scholarship Fund. Separate audited financial statements are prepared for the Fund and these are also incorporated in the School Financial statements as "Restricted Funds" The Foundation (the "Foundation'l is a registered charity (SC0308421 established under Ihe terms of a Trust Deed in 2000 with the object of raising funds for the benefit of pupils attending the School. Al present such funds are primarily used the purpose of providing bursary support and assisting wilh major Capital projects. The Board of the School appoints the Trustees of the Foundalion who do not necessarily require lo be members of the Board. Separate audited financial statements are prepared for the Foundation and these are also incorporated in the School Financial statements as °Restricted Funds.. Euclid Trading Ltd ISC3572471 is a company ftjlly owned by the High School of Dundee formed with the PLJrpose of undertaking any trading activities conducted by the School. At present such activities relate to the hire of the School's sports facilities at the Dalnacraig and Mayfield sports ground and sports centre al limes when the facilities are not required for School purposes. The Directors are appointed by the Board of Directors of the School. Each year the net proceeds arising from the company's activities are passed to the School by way of a gift aid donation. The ￿ sults of these trading activities are included in the °Unrestricted Funds" of the School's financial ststements. HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page." 4 144 High School of Dundee Directors, report {continued) Structure, Governance and Management (continued) Recruitment and Training of Directors, Appointments and Retirements The School Board consists of 6 nominated directors, 10 co-opted directors, armj 2 ex officio directors. The High School of Dundee has a Board of Directors Skills Matrix. This will be reviewed annually by the Governance Committee and allows the Committee to identify and fill any skills gaps on the Board and plan and coordinate recruitment and appointment lo the Board of Directors. Anticipated co-opted, ex officio, and nominated vacancies on the Board of Directors will be identified, and a recruitment process inilialed112 months in advance where possiblel. The induction process involves meetings with the Chair. the Rector, and the Chief Operating Officer in order to gain an appreciation of the obiecls of the School and its operation. In addition, the responsibilities of the Board and its Directors to the pupils, staff, parents, and the wider community are explained. This also includes the legal responsibilities and obligations of operating an independenl school within the Scottish education system and the relationship with the Scottish Government, Her Majesty's Inspection of Education, and other govemmenl bodies. New Board Members are invited to the firsl Board meeling following formal approval of their appointment by the Board. All Directors are appointed for an initial 3-year term. A second 3-year term may follow if agreed by both the individual and the Board, on the recommendation of the Governance Committee. Only rarely will a third 3-year term be permitted, and this will only be the case where the Director is serving as the Ch8ir, the Vice Chair, or a Convenor at the time of completing their second term. There is a timetable of Directors, visit days sel al the start of each session, lo which all Directors are invited and expected to allend. Directors are also invited to attend all School events and lake an active interest in the School community. Directors can also visit the School al any time throughout Ihe year. Directors are expected lo participale in CPD events in order to furthgr their experience in the Independent School s8clor. The School is a member of the Scottish Council for Independ&nl Schools ISCIS), Association of Governing Bodies of Indep&ndenl Schools IAGBISI, and Ind&pendenl Schools. Council IISCI, and they provide a regular programme of seminars for School Governors. Directors of the School are encouraged to attend these. A programme of CPD ￿qUireMentS continues to be reviewed to ensure all Directors are attending relevant CPD courses. The Board's review of Governance of the School is overseen by the Governance Committee. Terms of reference are updated annually for all Commillees. During the period, the Committee undertook an internal self-review exercise, which Directors found lo be a very valuable tool. Members of the Board recewe no reMUneral￿n for the services they provide to the Schcx)l in their capacity as Directors. The Directors give a great many hours of their time lo the School, att&nding meetings of the Board, committees, and working groups, school events, providing advice and guidance, and supporting the members of the Executive. Currently, the Chair meets with the Rector and Chief Operating Officer on a weekly basis. The value of such time is signific8nt and, while never formally assessed, represents several tens of thousands of pounds. Directors as al the date of this report are as given on page 1 of the financial statements HSD Accounts pdf Ifa49M4rk22dd4844-b974-8￿)ee7le45a8l Page". 5 144 High School of Dundee Directors, report {continued) Structure, Governance and Management (continued) Organisational Management The Direclors are allocated to committees based on their skills and experience. Every Director will sit on at leasl committees ancl attend ￿oard meetings. The day-lo-day operation of the School rests with the Senior Leadership Team, led by the Rector. Deputy Rector Isenior Years), Deputy Rector (Junior Yearsl, and the Chief Operating Officer. The Rector and Chief Operating Officer are invited lo attend all meetings of the Board and its committees. The SenK)r Leadership Team are the key management personnel of the School. The School has a pay structure, which is considered annually by the Remuneration Committee. Staff are placed within the pay structure commensurate with their qualrfications, experience. and the responsibilities of their role. Risk Management The Board has considered the areas of risk to which the School is exposed and presents a comprehensive report lo the meetings of the Full Board. Responsibilities are delegated lo each of the CommittÈÈs whÈrÈ applicablè. The assessmènt considèrs èlevèn arÈas- 11 Finantial. 21 Laws and Regulation, 31 Governance and Management, 41 External Factors, 51 operat￿nal, 61 Human Resources, and 71 Education81. Risks are assessed, and appropriate action is pul in place as deemed necessary. The School continues lo closely monitor the pressure on fee levels and the Implications of VAT being introduced on educational services from 1 January 2025. The Chief Operating Officer is reviewing addib'onal bursaries, and regular discussions are being undertaken with parents to support each of our families. Objects, Aims, Objectives and Activities Objects Our vision Is lo nurture and inspire exceptional, real-workl-ready pupils. AI HSD, we're all about unlocknng the unique spark in each of our pupils, igniting their passion for learning, and celebrating their incredible lalenls. Our goal is lo demonslrale and instil informed decision-making based on our shared core values as a guiding light throughout our lives. From the moment they join us, we dive into getting lo know each of our pupils as individuals, making them feel valued, supported, and engaged in every aspect of their learning. This personalised approach allows individual talents and qualities lo truly shine. In a fasl-paced, increasingly polarised world, we equi our community lo tackle pressing global issues head-on. Located In the heart of our city, we offer a real-world learning environment that Is aspirational and Inspires our whole community to stay grounded and connected. We're proud to nurture cnnfident yet hLJmble young people who form lifelong friendships, are ambitious learners, and work together to make the world a better place for all. We remember that our pupils learn first from us. The subject content and 'aeadÈmic' outcomes are important, bul how we make them feel about themselves. the world. and their unNue potential and self-worth will last a lifetime. We lead by example. In providing an exceptional learnbng experience in the independent sector without the financial support of central or local government, the Directors musl ensure that the School recovers its costs through tuition fees. The level of such charges is scrutinised and considered every year by both the Finance Committee and the full Board, and efforts are made lo ensure funds are used and managed in an efficient and economic manner. The School seeks to draw pupils on the basis of their aptitude and to provide every opportunity lo develop this lo ils full polenlial. A key purpose is lo ensure that the personal financial circumstances of the family are not a barrier lo any chikl, who is made an offer based on aptitude, attending the High School. HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page." 6 144 High School of Dundee Directors, report {continued) Objects, Aims, Objectives and Activities {continued) To this end, the School offers information lo parents with regard to how guidance can be obtained on planning their finances and can also direct them lo potential sources of assistance, In addition, the School has access lo Bursary funds, which allow it lo offer financial support of up lo one hundred per cent of tuilion fees. Objectives and Stratggies for the Yoar Al the High School of Dundee, we are a community that inspires, empowers, and supports our young people to realise their potential through our creative, vibrant, challenging, and aspiralional Learning Experience. Viewing each pupil as an individual, we aim lo.. Identify and nurture their talents Foster and encoLJrage them lo find their voice Empower them to take responsibility with confidence and resilience Our Core Values underpin the aims of our School and, therefore, form the basis of our Improvement Planning programme. Under the leadership of the Board of Directors and the Rector, the High School of Dundee is firmly committed to the philosophy of improvement through structured self-evalualion and review. Each year, the Whole School Improvement Plan IWSIPI is reviewed and updated, staling the main objectives for the next year and providing more detailed aims for the coming year. During the year, the School finalised its Strategic Plan. As part of this, five key projects, phase one of which will be delivered during Session 2024-25, have been identified. These are as follows.. 1. Curriculum Review Project 2. Staff Pensions & Benefits Project 3. Admissions & Marketing Review Project 4. Playground Project 5. 3rd Party Income Project Each project is led by a Board Sponsor and an SLT member, who will report directly lo the Rector on progress being made. The Rector will then update the Board al each meeting. Principal Activities of the Year The School is an all-through co-educational independent day school educating just under 900 pupils. Interest remains buoyant at all stages throughout the School, and parents continue lo express a clear desire to have their children attend. The Board and the School's Senior Leadership Team continue to work to improve awareness of Ihe benefits that the School's approach lo education provides for its pupils. The reasons for families wishing to have Iheir children allend the School relate primarily lo the high standard and quality of leaching provision within an atmosphere that stimulates and encourages learning. Parents comment on the orderly and purposeful atmosphere in the School, which is achieved through a respect shared amongst pupils and stsff. The provision of a wide-ranging curriculum offering a broad spectrLJm of SLJblects, comblned wllh an exienslve programme of co-currlcular actlvltles, creates an ex￿lIent all-roLJnd edLJcation for pupils. The resLJlts of this approach were refflected in the many outstanding achievements of pupils dLJring the year, tKJth inside and outside the classroom, and are reported elsewhere. HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page." 7 144 High School of Dundee Directors, report {continued) Objects, Aims, Objectives and Activities {continued) Grant Making Policy The School awarded means-lesled bursaries of £770.00012023 - £865,000). In addition, grants and remissions were provided of £Jb2,UULI {2U23- LJ22.UUUI, theret)y providing tolal assistance of £1,122,00012023 - £1,187,0001- The level of bursary support reflects a growing number of applications from not only new entrants lo the School bul also from existing parents experiencing financial difficulties resulting from the ongoing difficult economic climate. The Awards Committee, along with the Finance Committee, monitors the level of support regularly within the charitable status guidance. Bursaries are granted on the basis of both academic ability and financial need. In lolal, 77 bursaries were provided, mnging from 1 OOA of tuition fees through to 10001.. In addition, the School provided guidance to parents in seeking support from charitable and edLJcalional trLJsts, and grants wer2 received by bNo pupils from such Sour￿$. As a resull, 13Q/o of the pupils in the senior school were in receipt of bursary support. Ongoing efforts continued lo be made through the Found81ion to raise funds lo maintain the level of grants to support bursaries al the School. Staff and Volunteers and Bodies Associated wlth the School The School enjoys a strong sense of community, which is made possible through the commitment of many stsff who give their time lo support co-curricular aclivilies, either during or oU￿11h Ihe nomial school day. In addition, activities such as the Duke of Edinburgh Award Scheme rely on the assistance and support of several voluntary helpers, whose contributions are invaluable in providing the range of activities available to pupils. In addition lo the leaching staff, the School has a large number of support stsff who play an essential role in providing the services that allow the School to operate. The Directors wish lo record their appreciation for the invaluable contributions that all members of staff and volunteers make in meeting the School's objectives. In addition to the aclivib'es of the Scholarship Fund and Foundation, whose results are incorporated in these financial statements, the Sch)ol receives valuable support from the High School of DLJndee TrLJSt Appeal and other groLJPS associated wfth the School through fom)er pupils and parents. The contributiorb of these groups, in working for the benefit of the School in various ways, is acknowledged by the Board. Revlew of Achlevements and Performance for the Year Operational Perfom)ance of the School This year {to July 20241 we raised the magnificent total of £32,894 for our chosen charities This re¢ord- breaking amount is Ihanks to an extraordinary whole school effort across Nursery, Junior and Senior Years. Vve are very proud that we have been able to support an extraordinary 38 individual charities and even more proud that our pupils have also volunteered over 10,000 hours across a range of placements in the local community. Thank you lo our Rotakids, our Interact Club, Our Enterprise Teams, and our amazing Charity and Community Outreach Coordinator and her brilliant teams. Neurodlverslty Celebratlon Vveek was an Important hlghllght wlth puplls and staff worklng together to raise awareness and demonstrating that this is a superpower. Our first ever Project Wellbeing Day was a huge success again demonstrated what can be done with ambition, collaborative workn'ng and meticulous organisalion. Our pupil led, MulticultLJral day was an explosion of energy. cultures and fun. It has also been another very SUC￿ssful sports, season. Our Boys Hockey 1 Xl retained the Aspire Cup for a second year, our Girls, Hockey 1 Xl are the Sottish School's Plate Runners up, and our 1st XV headed lo Murrayfield to compete against Dollar Academy in the National Schools Shield Final. Our Pipe Band led the way and we certainly won the day from a support and spirit perspective. Our netball 1 sl Vll went all the way to the quarter final of the Scollish Schools Cup. HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page." 8 144 High School of Dundee Directors, report {continued) Revlew of Achlevements and Performance for the Year Operational Performance of the School (continued} Five of our pupils were selected for Midlands U14 Hockey, and we also h*J three Scottish selections. In the U17 bcotland &merging bquad. the U1 Y ￿mergIng bqua(J, and at just 17 years old, one of our F5 pupils was selected for the Scotland U21 Squadl Our Fesb'val of Sport has now become a firm fixture in the calendar. Blessed with blue skies and sun, it was a wonderful whole-school occasion. It was so good to see so many activities, fun, and friendships wrapped around the serious matter of sporting competition and the fantastic PA Colour Run. It was also the selling for some extraordinary record-breakers this yearl The F4-6 Cirls, 1 OOM record, set In 1975, was smashed with a time of 12..06. and the F3 Boys. 100m record, set in 1974, was also broken with an amazing lime of 11'.68. A new F4-6 Girls, Shot Put record was set with a remarkable 11 m 33, and one of OLJr F2 girls is now a double record holder, claiming both the 100m and 200m F2 girls, titles with times of 12'.05 and 27.19, respectively. In th2 Dundee School Athletics Championships, we scooped 10 golds and 1 silverl Earlier in the month, at the Scoth'sh Schools. Relay Championships, our U15 Girls, Team won gold, and our U17 Team won silver. Our pupil newspaper, The Columns, celebrated ils 1 Ooth edition this session. We have been so fortunate lo have brilliant pupil editorial teams. The tradition of writing begins at the earliest tx)inl here al the High School of Dundee, and we can see wonderful writing emerging from L1 right through to F6. Again, this has been a bumper year for our young writers. One of last year's F6 pupils is the current Scottish Schools Young Writer of the Year. We also had a literary first, with anolher F6 pupil winning the JFK Presidential Library and Museum's Profiles in Courage Essay Contest. This conlesl is open to all U.S. citizens, including those living abroad, be￿een the ages of 14-18. Our pupil is the first winner from outside the U.S., and we are unbelievably proLHJ of this achievement, which has once again put the Huh School of Dundee on the world stage! In Malhemalics, we continue to excel. Our reputation and record in the UK Maths Olympiad are second to none. This year, we achieved 8 golds, 14 silvers, and 28 bronze awards, with three of our pupils qualifying for the prestigioLJS Olympiads for their respecb've age groups. One of them received distinction plus a gold medal from the UK Malhemalics Trusl for achieving the besl score in Scotlandl Our trips, tours, expeditions, and activities are such a tradition at the School. We are delighted lo say that, from Florida to the Alps via Barcelona and Dalguise, this session has al￿adY seen our pupils return from hockey tours, the Spanish trip, and a two-week trip lo Chinal These experiences continue to take learning beyond the classr(x)m and are transformational for our pupils armj staff. Academic Excellence and Unlversity Success Our outstsndiro certificate examination results speak for Ihemselves year on year, and 2023124 was no exception. This is due to the exceptional dedication and experbse of our teachers and the hard work, resilience, and Commitment of our pupils. Natlonal S Hlgher Advanced Hlgher 327.950 HSD 863 196.250 HSD506 28.495 HSD 266 entries èntriès entries HSD 95.8% SD 89.2% HSD 87.2% atloinment Tote 77.2% atlainmenl rate 74.9Yo oltoinmenl Tote 75.3% HSD 71.8Y. SD 54.1% HSD 44.2% atloinment late 38.0% atlainmenl fate 30.3% oltoinment rate 30.0% HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page." 9 144 High School of Dundee Directors, report {continued) Revlew of Achlevements and Performance for the Year Acadomic Excellence and University Succoss Icontinuod) This year again, the proportion of our pupils securing places of their choice at the best universities and colleges, or directly Into employment, Is se¢on(J lo none. I he stabstics on our deslinations are remarkable and demonslrale the breadth and variety of the routes and specialisms that our young people choose. A total of 114 applicants applied lo 556 individual courses. They applied to 239 subject courses across 46 institutions. Medicine was the most-applied-to course, followed by Mechanical Engineering and Computer Science. Edinburgh University was the top deslinalion, followed by Aberdeen and Dundee Universities. Our top 12 destinations, by application count, were all In Scotland. Our lop English destinations, by the same count, were Oxford, Bristol, Durham, and Manchester. Applications included four Form 5 pupils and 18 FPS lall the way back to the Class of 202DI. Four pupils applied to conservat01￿S in addition to UCAS. Six Form 6 (Class of 20241 pupils did not apply through UCAS, either taking a gap year or apptying direelly lo eollege. As usual. we have enjoyed numerous musical events. Every performance has been a joyous occasion of music-making. We are truly a 'specialisl Music School'l From our inaugural 3-day Piano Festival. our magnificent Winter and Spring Concerts, our Festival of Nine Lessons and Carols, our D-Day Memorial Concert, Chamber Evenings, Jazz Soirées, competitions. and A Night lo Remember. lo name bul a few. We have so many extraordinary solo musicians who have been gathering silverware. In the Rotary Young Musician 1010 District competition, one of our Form 5 pupils won the Vocal section, and one of our Form 1 violinists was named Runner-up in the Instrumental section. Another Form 5 pupil won the Leng Cold Medal and continued our extraordinary successes in this competition, which is close lo the heart of many Dundonians. Yel another Form 5 vocalist was announced as the winner of the Scottish Young Musician Independent Schools CompetitK)n-the first time one of our pupils has won this accolade. Our sen￿)r Years Musical Whistle Down the Wind was a lolal Iriumph-a truly professional production that would be at home on the West End stage. Brilliant young people need inspirational teachers, instructors, coaches, and supporters who truly care about creating an exceptional learning environment. Vve would like to pay tribute lo all colleagues for their extraordinary dedication, hard work. and willingness lo go above and beyond every day. Stat8m8nt of Financial Activities The statement of financial activities provides delail of Unrestricted FuThds, which relate lo the operation of the School, Restricted Funds comprising the Scholarship Fund and Ihe Foundation, and Endowed Funds_ The results of the wholly owned subsidiary, Euclid Trading Limited, have been included as 'Trading Activities.. Financial R8view and Results for Yaar Restricted Funds Detailed reports relating to the Scholarship Fund and the Foundation can be found in the financial statements for these two bodies. The D1￿CtorS We￿ satisfied with the performance of both these Trusts with total income increasing from £57,000 in 2023 to £72.000. Grants of £99,00012023- £200,0001 were made lo the School with £69,000 12023- £7 70,000) from the Foundation and £30,000 (2023 - £30,000) from the Scholarship Fund being used to support School Bursaries. HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 10 144 High School of Dundee Directors, report {continued) Revlew of Achlevements and Performance for the Year During the year the amount received from donations and legacies through the Foundation remained stsble al £22,000, whilst grants increased from £13,000 to £15,000. and fundraising income increased from £1,000 10 £32,000. The combined net deficit, before realised and unrealised investrnent gainsllosses, of the Scholarship Fund and Foundation was £78,000, compared to a £182,000 deficit in the previous year. The Funds also experienced nel investment gains of £60,000 (2023- £13,000 losses)- This resulted in a decrease in reserves of £18,000 from £1.773 million lo £1.755 million. Endowed Funds In addition to the support received from the Scholarship Fund and Foundation referred lo above, the School received £40.00012023 - £40,000) for bursaries from the Endowed Fund resulting in lolal support for bursaries fmm all three sources of £130,000 (2023- £240,000), with the remaining £9,000 being received for other purposes. Unrestricted Funds Total unrestricted expenditure increased from £12.477 million lo £12.491 million. an increase of less than 1 Yo. There is a nel increase in unrestricted funds of £793.000 from £7.877 million to £8.670 million. Total Funds The net income for the year was £888,00012023- £71,000 net expenditurel. This resulted in a increase in the opening balance on funds from £11.064 million lo £11.952 million. Financial R8view and Results for Yaar Icontinuedl Balance Sheet Investment in land and buildings during the year amounted to £454,000, with a further £168,1K)O being spent on plant and £73,000 being spent on computer equipment. Totsl tsngible fixed asset ￿dItIonS in the year therefore amounted lo £695.000. Depreciation was charged in the year of £510,DDO and a nel book value of £521 k was transferred from tangible fixed assets to current assets, tangible assets held for sale. This resulted in the net book value of the langible fixed assets up to 31 July 2D24 decreasing lo £8.030 million. Deferred income and trade debtors movaments Due to a change in the direct debit oplions available, the School raised its fee invoices for the 2024125 academic year in June 2024. The full invoiced fees are recognised within trade debtors and deferred income al the year-end. This has resulted in trade debtors and deferred income at the year-end being significantly higher than the prior year's comparative balance. This treatment has no impact on the Statement of Financial Acb'vities for the year. Cash Flow Total cash ftjnds for the group generated from operating ach'vities amounted lo £2,186,000 compared to £436.000 in the previous year. After accounting for investment income and net Inte￿St costs, this increased to a total inflow of funds of £2,242,000 compared lo £488.000. The nel acquisition of tsngible fixed assets and investments totalled £0.890 million compared to £1.499 million in the previous year. Proceeds were received for the realisation of tangible fixed assets and investments totalling £415,000 compared to £652,000 in the previous y8ar. HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 11144 High School of Dundee Directors, report {continued) Financial Review and Results for Year Icontinuèdl Cash Flow (continuadj During the year £239,000 of capital repayments were made towards the bank loan in respect of the Nursery, and L2b,UUU towar(Js hire purchase creditors. Uverall, this resulte(J In a net Increase In cash during the year of £1.515 million, and look cash resources al 31 July 2024 10 £4.144 million. Rgserves Policy The reserves of the School are represented by the Unreslricled Funds, Restricted Funds, and Endowed Funds shown in Note 13 to the financial statements and at 31 July 2024 lolalled £11.952 million which represents an increase of £888,000 on the previous ye8r's fund balance. Unrestricted Funds of £8.670 million represented £7.982 millK)n of tangible assets plus net assets of £688,000. Where the Board pursues projects that have a signrficant impact on the liquidity of the reserves of the School, the Directors make plans lo ensure that, within a reasonable period of lime, such reserves return lo an appropriate level of liquidity in line with the normal operational requirements of the School. The Directors believe the overall level of reserves is commensurate with the operational requirements of the School and will continue to pursue financial plans to maintain, and as appropriate, increase these reserve5. Investment Pollcy and Oblectlvgs From ils members, the Board appoints an Investment Committee lo meet on a lermly basis with the Investment Managers (refer lo Page 11 to monitor the performance of the investment portfolios. This group considers the portfolios hekl by the School's Endowed and Trust Funds. the Scholarship Fund, and the Foundation, and reports to the Board through the Finance Committee. The Investsmenl Committee regularly reviews the Investment Policy Slalemenl, which serves as a framework for the investment relationship be￿een the Directors and the Investment Managers. The investment portFolio is aligned with a fully compliant ESG (Environmental, Social, Governance) Model. The current porttolio's risk is assessed as moderately adventurous and is managed using the total retum measure, rather than separate recognition of income and capital. The investment objectives seek to achieve a stable income stream and provKle sufficient growth to maintain the real value of the investment portfolio. The Board employs the services of investment managers on a discretionary basis lo manage the investment portfolio. The performance of the investments is reviewed on a quarterly basis and measured against appropriate market indices. Future Plans The introduction of VAT on educalion fees from 1 January 2025 is a signrficant event for the School, and we have taken robust steps to ensure we are prepared for both the financial impact and administrative challenges it presents, wilhoul compromising on the quality and breadth of the education we deliver. Despite the financial challenges ahead, il is important that the School continues lo invest in our infrastructure, including IT and Eststes. By ￿pIating our end-of-lrfe computers with new laptops throughout the School and Insialllng state-of-the-art interactive dlsplays In our Junlor Years classrooms, we ensure we are using the latest technology to facilitate a full learning experience. We have budgeted for a number of eslales projects to continue our focus on making our school more energy-efficienl, including new LED lighting systems al our Mayfield campus and heating syslem pgrades within our Margaret Harris building. Additionally, we have invested in creating a new, vital social space for our students wlhin the main building and plan lo reallocate our core dining facilities to the main buikjing. 10 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 12 144 High School of Dundee Directors, report {continued) Statement of Disclosure of Information to Auditor The Directors of the Board who held office at the date of approval of this Directors. Report as sel out al)ove each confirm that.. So far as they are aware, there is no r81evant audit information of which the School's auditor is unaware,. and They have taken all steps that they ought to have taken as Directors in order to make themselves aware of any relevant audit information and to establish that the School's auditor is aware of thal information. These financial slalemenls were approved and signed on ils behalf by.. Chair of the Board of Director5 Date......... HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 13 144 High School of Dundee Statement of directors, responsibilities The Directors are responsible for preparing the Directors, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally AC￿pIed Accounting Practice). The law applicable lo charities in Scotland requires the Directors lo prepare financial statements for each financial year which give a true and fair view of the state of affairs of I he High bchool ot Uunde8 and the group and of the incoming resources and application of resources of the group for that period. In preparing these financial statements. the Directors are required lo= select suitable accounting policies and then apply them consislenlly- observe the methods and principles in the Charities SORP {FRS 1021., make judgements and estimates that are reasonable and prudent., slate whether applicable accounting standards have been followed, subject lo any material departures disclosed and explained in the financial ststements., and prepare the financial statements on the g(xng concern basis unless it is inappropriate lo presume that The High School of Dundee and the group will continue its aclivilies. The Direclors are responsible for keeping proper accounting records which disclose with reasonable accuracy al any lime the financial position of The High School of Dundee and the group and enable them lo ensure Ihal the financial statements comply with The Charities and Trustee Inveslment (Scollandl Act 2005, the Charities Accounts Iscotlandl Regulations 2006 las amended). They are also responsible for safeguarding the assets of The High School of Dundee and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 12 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 14 144 High School of Dundee Independent auditor's report to the Directors of The High School of Dundee Opinion We have audited the financial statements of The High School of Dundee Ilhe 'School'l, which irscludes The High School of Dundee Scholarship Fund and The High School of Dundee Foundation, and its subsidiary, Euclid Trading Limited, for the year ended 31 July 2024 which comprise the group statement of financial activities, the group and School balance sheets, the group and School cash flow ststements and notes to the financial statements, Including a summary of signiticant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republ￿ of Ireland (United Kingdom Generally AC￿pted Accounting Practi￿￿- In our opinion the financial stalemenls.. give a IrLJe and fair view of the slate of the group and School's affairs as al 31 July 2024 and of ils incoming resources and application of resources for the year then ended- have been properly prepared in accordance wilh United Kingdom Generally Accepted Accounting Po¢tice', and have been prepared in accordance with the requirements of the Charities and Trustee Investment Iscotlandl Act 2005 and Regulation 8 of the Charities Accounts (Scotlandl Regulations 2006. Basis of opinion We conducted our audit in accordance with International Slandards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audi( of the financi81 statements section of our report. We are independent of the Sch¢)ol in accordance with the ethical requirements th81 are relevant lo our audit of the financial stslements in the UK, including the FRC'S Ethical Standard, 8nd we have fulfilled our other ethical responsibilities In accordance with these requirements. We believe that the audit evidence we have obtained is suffieienl and appropriate lo provide a basis for our opinion. Concluslons relatlng to golng concern In auditing the financial statements, we have concluded that the Directors, use of the going concern basis of accounting in the preparation of the finar)cial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or condikn.ons that, Individually or collectively, may cast significant doubt on the School's ability to continue as a going concern for a period of al least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report. Other infomlation The other information comprises the information included in the annual report, other than the financial statements and our aLJditor's report thereon. The Trustees are responsible for the other information contained within the Directors, Report. Our opinion on the financial statements does not cover the other information and we do rbot 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 slalements or our knowledge obtained in the audit or otherwise appears lo be materially misstated. If we identrfy such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise lo a material misslatemenl In the financial statements themselves. If, based on the work we have performed, we conclud& that there Is a material misstatement of this other information, we are required to report that fact. We have nothing lo report in this regard. 13 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 15 144 High School of Dundee Independent auditor's report to the Directors of The High School of Dundee (continued} Matters on which we are required to report by exception We have nothing lo report in respect of the following matters in relation to which the Charib'es Accounts Iscotlandl Regulations 2006 requires us lo report lo you if, in Iwr opinion.. the informakn'on given in the financial statements is inconsistent in any material respect with the Directors, Report,. or proper accounting records have not been kept., or the financial st8lemenls 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 Directors As explained more fully in the Directors. responsibilities slalement set out on page 12, the Directors are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from materi21 misstatement, whether due lo fmud or error. In preparlng the financi81 slatemenls, the Directors are responslble for assessing the group and School's ability to continue as a going concern, disclosin9. as applicable, matters related to 90ing concern and using the going concern basis of accounting unless the Directors either intend lo liquidate the charity or lo cease operations, or have no realistic alternative but lo do so. Auditor's rèsponsibilittes for thè audit of the financial statements We have been appointed as auditor under section 4411 Ilc) of the Charities and Trustee Investment (Scollandl Act 2005 and report in accordance with regulations made under that Act. Our objectives are lo obtain reasonable assurance about whether the financial sl8temenls as a whole are free from material misstatement, whether due lo 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 th81 an aLKlit conducted In accordance with ISAS IUKI will always detect a m8terial misst8lemenl when It exists. Misstatements can arise from fraud or èrror and are considered material if, individually or in the aggregate, they could reasonably be expected lo irffluence the economi decisions of users taken on the basis of these financial statements. Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, lo detect material misstalemenls in respect of irregularities. including fraud. The extent to which our procedures are capable of delecling irregularities, including fraud, is d81ailed bolow: As parl of our planning process.. We enquired of management the systems and controls the group and School has in place, the areas of the financial statements that are mosuy susceptible lo the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. Management informed us that there were no instances of known, suspected or alleged fraud., We obtained an understanding of the legal and regLJlatory frameworks applicable to the group and School. We detemiined that the following were most relevant_. compliance with the requirements from the PVG scheme. the Care Inspeclorate, Ihe SQA, and OSCR., health and safely including fire safety," Data Protection Act 2018, employment law lincluding payroll and pension regulations), and compliance with the UK Companies Act for the toding subsidiary= We considered the incentives and opportunities that exist in the group and School, including the extent of management bias, which present a potential for irregularities and fraud to be perpetrated, and lailored our risk assessment accordingly; and 14 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 16 144 High School of Dundee Independent auditor's report to the Directors of The High School of Dundee (continued} Using our knowledge of the group and School. logelher with the discussions held with management at the planning slage, we formed a conclusion on the risk of misslalemenl due lo Irregularities Including fraud and tailored our procedures ￿CordIng lo Ihis risk assessmenl. The key procedures we undertook lo delecl irregularities including fraud during the course of the audit includèd". Inquiries of management about any known or suspected instances of non-compliance with laws and regulations and fraud- Reviewing minutes of meetings of those charged with governance., Reviewing key policies Including those covering fire safety, health and safely, data protection, and the ProleclM)n of Vulnerable Groups IPVG) scheme., Reviewing correstKJndence and reports from key regulatory bodies inclLKling the Care Inspectorate, the SQA and OSCR,. and Challenging assumptions and jLJdgemenls made by management in their signrficanl accounting estimates, in particular the valuation of tangible fixed assets and investments, recoverability of debtors, the valuation of the defined benefit pension scheme obligations, and the application of accruals and deferred income,. and Auditing the risk of management override of controls, including through tesb'ng Journal entries and other adjuslmenls for appropriateness. Owing to the inherent limitations of an audit, there is unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is property planned and performed in accordance with the ISAS IUKI. For instance, the further removed non- Compliance is from the events and transactions reflected in the financial ststements, Ihe less likely the auditor is to become aware of il or lo recognise the non-compliance. The risk is also greater regarding irregularities oceurring due lo fraud rather than error, as fraud involves intentional concealment, forgery. collusion, omission or misrepresentation. The primary responsibility for the prevention and deteclion of irregularities and fraud rests with the Directors. A further description of our responsibilities for the audit of the financial stalements is located on the Financial Reporting Council's website at htt s.'Ilwww.frc.or .uklauditorsres onsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the Directors, as a body, in accordance Wlth Section 4411 Ilcl of the Charities and Trustee Investment (Scotlandl Act 2005 and Regulation 10 of the Charities Accounts (Scollandl Regulations 2006 {as amended). Our audit work has been undertak&n so that we might stale lo the Directors those matters we are required lo slate lo them in an auditor's report and for no other purpose. To the fullest extent permitted by18w, we do not accept or assume responsibility to anyone other than the School and its Directors as a body for our audit work, for this report, or for the opinions we have formed. Henderson Loggie LLP Chartered Accountants & Statutory Auditors {Eligiblè to act as an auditor in tÈrms of sÈction 1212 of thÈ Companies Act 20061 Ground Floor 11-15 Thistle Street Edinburgh EH2 1DF -2024 15 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 17 144 High School of Dundee Group statement of financi81 activities {incorpor8ting the income and expenditure account) for the year ended 31 July 2024 2024 2024 Total Funds £000 Unrestricted funds £000 Restricted fund5 £000 Endowed Funds £000 Note Income: Chari18ble activities School fees Catering incorne Other educational income 12,931 188 35 12,931 188 67 Raising funds Trading acts"vitEs 102 102 lnvg5trne￿t income Grants Oonatk)ns and legacies 48 56 97 35 15 82 12 Total incomè 13,305 72 13,476 Expendituie.. Raising funds Fundraising costs Development and marketing costs Traijing acttvit 15 57 405 405 409 15 Charitable a¢tlvl¢les Grants Teaching Prernises Catering Support costs 40 139 8,162 2,418 319 1,214 8,162 2,396 319 1,205 12,082 108 62 12,252 Total expendrtuwe 12,491 150 77 12,718 Net Incomellexpendlturel before galns and losses Actuarial losses Realised investment losses Unrealised investment gains 814 1211 1781 7S8 1211 1121 163 131 63 191 100 Net movement in funds 793 1BI 113 888 Fund bala)eès al 31 July 2023 7,877 1,773 1.414 11,064 Fund balances at 31 July 2024 8,670 1,7SS 1,527 41,9S2 16 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 18 144 High School of Dundee Group statement of financi81 activities lincorpor8ting the income and expenditure account) for the year ended 31 July 2024 Icontinuedl 2023 R8sla18d Total Funds 2023 R85ta18d Unr8sknct8d Funds R851ricted fvnds Endowed Fu￿5 Note Income.. Chari18ble activities School fees Catering incorne Other educational income 12,245 200 46 12,245 200 46 Raising funds Trading acts"vitEs 95 95 lnvg5trne￿t income Grants Oonatk)ns and legacies 19 52 13 13 22 Total incomè 12,598 57 30 12,685 Expendituie.. Raising funds Fundraising costs Development and marketing costs Traijing acttvit 14 306 306 311 30 14 355 Charitable a¢tlvl¢les Grants Teaching Prernises Catering Support costs 200 40 240 6,635 1,974 294 1,285 8,635 1,961 294 1,276 13 12,166 209 53 12,428 Total expendrtuwe 12,477 239 67 12,783 Net Incomellexpendlturel before galns and losses Actuarial gains Realised investment losses Unrealtsed investment losses 121 61 {1821 1371 1981 61 1231 1101 1131 181 N•t mov•m•nl in funds 182 11951 1581 Fund bala)ces al 31 July 2022 7,695 1,968 1.472 11,135 Fund balances at 31 July 2023 T,877 1,773 1.414 11,064 17 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 19 144 High School of Dundee Balance sheets at 31 July 2024 Group 2024 £000 Group 2023 £000 School 2024 £000 School 2023 £000 Note Fixed a$￿t$ l angit)le assets Investments 8.03D 2,250 il,Jbb 2,146 5,031J 1,384 ,dtiti 1,313 10,280 10,512 9,414 9,679 Current assets Stock Debtors Tangible assets held for sale Cash at bank and in hand 11 11.574 521 4,144 14 271 11 11,660 521 3,368 14 323 10 2,629 1,922 16,250 2,914 15,560 2,259 Creditors Amounts falling duÈ within one yÈar {13.57n {1.5531 (13,8661 11.9211 Net current assets 2,673 1,361 1,694 338 Total assets Igss current liabilities 12,953 11,873 11,108 10,017 Crèditors Amounts falling due after more than one year (1,001} 18091 11,001) {8091 Total nat assets 11.952 11,064 10,107 9,208 Represented by Endowed funds Reslricled funds Unrestricted funds 13 13 13 1.527 1.755 8.670 1,414 1,773 7,877 1,527 1,414 8,580 7,794 11,952 11,064 10,107 9,208 The financial statements were approved by the board of the School on its behatrf by.. .2024 and signed on The rK)les on pages 20 10 41 form parl of these financial statements. 18 HSD Accounts pdf Ifa49M4rk22dd4844-b974-8￿)ee7le45a8l Page." 20 144 High School of Dundee Cash flow statement for the year ended 31 July 2024 Group 2024 £000 Croup 2023 £000 School 2024 £000 Sch(x)I 2023 £000 Not8 Net cash inflow from operating activities 14 2,186 436 2,148 568 Retums on investment Investment income received 56 52 52 43 Net cash inflow from investmenty and servicing of finance 56 52 52 43 Capital expènditure and financial investment Proceeds from disposal of tangible fixed assets Payments lo acquire tangible fixed assets Proceeds from realisalion of investments Payments lo acquire investments 16 {538) 399 {352) 129 (1,0261 523 1473) 129 11,0261 326 {2851 1538} 231 1211} {475} 1847) 1502) {8561 Net cash outnow before flnanclng 1,767 1359) 1,698 {2451 Financing Bank loan repayments in the year Hire purchase repayments in the year {239} (13) 1130) 15) 1239} 1131 {1301 151 {252) 1135) 12521 {1351 In¢reasel(decrease} In cash In the year 1.515 1494) 1,446 {3801 Cash and cash equivalents 8131 July 2023 2.629 3,123 1,922 2.302 Cash and cash equivalents at 31 July 2024 4,144 2,629 3,368 1.922 19 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 21144 High School of Dundee Notes to the group financial statements Accounting policies Basis of accounting The financial statements are prepared under the historical cost convention as modified by the revaluation of Investments and InclLKJe the results of the School and group's operations as indicated in the Directors, Report. all of which are continuing. The financial statements have been prepared in accordance with applicable accounting standards and the Statement of Recommended Practice.. Accounting and Reporting by Charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021, the Charities and Trustee Investment Iscollandl Act 2005 and the Charities Accounts (Scotland) Regulations 2006 las amended). The School meets the definition of a public benefit enlily under FRS 102. The financial slatements are prepared in sterling, which is the financial currency of ihe School. Monetary amounts in these financial slalemenls are rounded to the nearest £000. Going concern The financial statements have been prepared on a going concem basis. The Board of the High School of Dundee considers that the School has adequate resources lo continue lo operate for the foreseeable future. The financial ￿sUltS for 2023124 were better than forecast, and the group cash and net current assets have also improved. With the introduction of VAT on school fees there is concern about the potential impact thereof within the independent sector, however the High School of Dundee is in a strong financial position with no debt, plans lo reduce its cost base, assets identified for disposal. and investments that may be realised rf required. Group financial slatements These financial statements consolidate the results of the Schod, The High School of Dundee Scholarship Fund, The High School of Dundee Foundation and the wholly owned subsidiary, Euclid Trading Limited, on a line by line basis. The High School of Dundee Scholarship Fund and The High School of Dundeè Foundation are both under the control of the High School of Dundee. The following is 8 summary of the significant accounllng policies adopted by the Dlrectors in the presentation of the financial statements. Income All income is recognised once the Sch¢)ol has entillemenl to the income, it is probable the income will be received and the amount of income can be measured reliably. Fees and similar income Fees ￿ceiVable and charges for services and use of preniises are aGGounled for in the period in which the service is provided. Fees receivable are staled after deducting bursar*s, grants and remissions granted L)y the School. Deferred income- advance fees Where the School receives fees in advance of the academic year lo which they relate, they are included in dèferred income allocated beiween falling due wrthin one year and out with one year. Any discount given is deducted from school fees. 20 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 22 144 High School of Dundee Notes to the group financial statements {continued) Accounting policies Icontinuedl Income {continued} Donations Donations r8eèivablb for thè gan8ral purpogés of th8 School arè crèditèd to "unrèstrictéd funds". Donations for purposes restricted by the wishes of the donor are taken lo "restricted funds". Donations required to be retained as capital in accordance with the donor's wishes are accounted for as "endowed funds". Where fixed tangible assets are donated, the endowed funds are released to unrestricted funds in line with the der)recialion on those assets. Investment income Interest on funds held on deposil is included when receivable and the amount can be measured reliably by the School, this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and nolificalion has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolD. Expendlture Liabilities are recognised as soon as there is a legal or constructive obligation committing the School lo that expenditure, it is probable that a settlement will be required and the amount of the obligab'on can be measured reliably. Expenditure is accounted for on an accruals basis. Certain expenditure is apwrtioned lo cost categories based on the eslimaled amount attributable lo that activity in the year. The irrecoverable element of VAT is included with the item of expense to which it relates. Costs of raising funds are those costs incurred in attracting voluntary income and those incurred in trading activities that raise funds. Charitable activities include expenditure associated with the delivery of its activities and include both the direct (x)sls and SUPFX)rt Costs rdaling to these aclivilies. Governance costs Include those incurred in the governance of the School and its assets and are primarily associated with constitutional and stalulory requirements. SupFX)rt costs include central functions and have been allocated to activity cost categories on a basis (x)nsistenl with the use of the resources e.g. allocating propèty costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage. Operating leasès Rentals payable are charged evenly over the lease term. Pension schemes Teaching staff join the Scottish Teachers, Superannuation Scheme controlled by the Scottish Public Pensions Agency, while non-leaching staff join the Independent Schools, Pension Scheme provided by the Pensions Trust. The leaching staff scheme is a defined benefit scheme for which the School's costs are charged lo the statement of financial activities so as to spread the cost of pensions over employees. working lives with the School. 21 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 23 144 High School of Dundee Notes to the group financial statements {continued) Accounting policies Icontinuedl Pension schemes (continued) Until September 2016, the non-leaching staff scheme was also a defined benefit scheme. how8ver, this was clog8d and th8 memb8rs mov8d to a d8fin8d contribution sch8m8. Tha benefits accrued up to the time of closure are preserved, accordingly there is still the potential for the scheme deficit to increase but to a significantly lesser extent. The School was advised that from 1 September 2013 deficit contributions will be payable for a fixed number of years in respect of the Independent School's Pension Scheme armj this liability is now recorded within the School's liabilities at the year end. The last triennial valuation was undertaken to 30 September 2020. A defined contribution pension scheme is in place for the benefit of the employees. Contributions payable are recognised as a cost in the Statemenl of Financial Activib'es. The teacher's scheme is independently administered and subject to regular actuarial valuations which determine the rale of contribution paid by the School as employer. The last four-yearly valuat￿n was undertaken lo 31 March 2020. The next valuation was due to 31 hAarch 2024 however the resLJIts of this have not yel been published. The scheme is a mulli- employer scheme and it is not possible to Kjenlify the assets and liabilities of the schemes whlch are attrlbutable to the School. In accordance wlth FRS 1 D2 therefore, the scheme Is accounted for as defined conlribution scheme. Tangible fvAed assets The view of the Directors in respect of buildings which are deemed to have a residual value greater than cost, is that no depreciation is charged, and that the carrying value of these buildings is considered as part of the annual impairment review of fixed assets. Where extensive refurbishment and modernisation is undertaken Ihe capital cost is wrilten off over len years. In other cases buildings and ground works are depreciated over 50 years. Additions lo fixed assets are capitalised subject to a de-minimus level of £2,500. Depreciation is calculated on a slraighl line basis as follows- Artwork Plant & equipmenl Computer equipment FixlLJres, fittings & refurbishment 50 years 6- 20 years 4-6years 6-10years Tangible fixed assets which are held for sale are transferred lo current assets al their carrying value. Investments Investments are a form of basic financial instrument and are initially recognised al their transaction value and subsequently measured al their fair value at the balance sheet dale using the closing quoted market price. The slalemenl of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. This is with the exc&plion of Investments in subsidiari&s which are initially recognised al their Iransaction value and subsequenuy measured at this value less any impairment losses. Stock stock is valued al low8r of cost and nel r8alisable valu8. Financial in$trument$ The School has elected lo apply Ihe provisions of Section 11 'Basic Financial Instruments, of FRS 102 to all of ils financial instruments. HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 24 144 High School of Dundee Notes to the group financial statements {continued) Accounting policies Icontinuedl Financial instruments {continued} Financial instruments are recognised in the School's statement of financpl position when the School becomes party to the contractual provisions of the instrument. 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 Ihe arrangement conslilules a financing transaction, where the transaction is measured al the present value of the future receipts discounted al a market rate of interest. Financial assets classified as receivable within one year are not amortised. Impaimient of financial assets Financial assets, other than those held at fair value through the slalemenl of financial activities, are assessed for indicators of impairment al each reporting end date. Basic fffnancial liabilities Basic financial liabilities. including credilors, bank thns, and loans from fellow group entitr'es, are initially recognised al transaction price unless the arrangement conslitules a financing Iransaclion, where the debt instrument is measured al the present value of the future receipts discounted at a market rale of interest. Financial liabilities classified as payable within one year are not amortised. Derecognition of financial liabilities Financial liabilities are derecognised when the School's contractual obligations expire or are discharged or cancelled. Fund ac¢ountlng The nature and purpose of each fund is explained in not8 13. Unrestricted funds are School fees, donations and other incoming resources receivable or generated for the o*'ects of The High School of Dundee wilhoul further specified purpose and are available as general funds. Reslricled funds are lo be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund. Endowed funds represenl accumulated funds endowed for the long term benefil of the School. Prlor year restatement In reviewing the allocation of bursaries and remh%sions, the Directors have determined that due lo the application of these allowances being common practice. they are in effect discounts and form part of the public benefit the School offers as a registered charity. As a result, the bursaries and remissions should be allocated against the school fees to present a nel school fees position in the Slat&menl of Financial Activities. As part of the application of this allocation in the current year. the decision was taken to retrospectively correct the position and thus the prior periods have been updated accordingly. There was no impacl on the comparative net movement in funds within the Statement of Financial Activities however the total income decreased by £939,000 and the lotsl expenditure decreased by £939,000. 23 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 25 144 High School of Dundee Notes to the group financial statements {continued) Critical accounting estimates and judgements In the application of the group's accounting policies, the Directors are required lo make judgements, estimates and assumptions about the carrying amount of assets and Iiabililies that are not readily apparent from other sources. The estimates and associated assumptions are hased on historical experienre and other f2ctors that are considered to ￿ relevant. Actual results may differ from these estimates. In preparing these financial slatemenls, the Directors have made the following judgements.. Useful life of tangible fixed assets Tangible fixed assets are depreciated over a period to ￿fleet their estimated useful lives. The applicability of the assumed lives is reviewed annually. taking into account factors such as physical condition, maintenance and obsolescence. Fixed assets are also assessed as to whether there are indicators of impairment. Carrying value of investments The listed investments held by the School are administered by the School's investment advisors 71M. Investments are initially measurad al transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting dale. The transaction price, transaction Gosts and fair value of the investments are based upon the regular investment portfolio reporls obtained from the investment advisors. Trade debtor recovery Credit control is an important function which requires assessment, on an ongoing basis, of the recoverability of amounts due from debtors. Where recovery is in doubt, the Directors will adequately provide against this specific debt and will arrive al such conclusions based on the knowledge of the debtor and their"ability to pay. The Directors adopt a prudent approach to credit control. Defined benefit pensi¢)fft scheme In the Directors. opinion the Ii)ng term commitrnenl lo make deficit reduction contributions lo the pension scheme requires the lolal commitment to be discounted lo lake account of the lime value of money. Advice is provided lo the Directors from the pension scheme actuary on a suitable discount rate based on the economic conditions al the balance sheet date. As at 31 July 2024, the future contributions have been discounted at a rate of 4.63'/0 (2023 - 5. 70/0), reflecting a change in market conditK)ns. Accruals Directors estimate the requirements for accruals using post year end information and information available from detailed budgets. This identifies costs that are expected lo be incurred for services provided by other parties. Accruals are only released when there is reasonable expectab'on that these costs will not be invoiced in the future. Deferred income Deferred income is primarily on advance fees which is recognised as being due out with one year where the payment received is for an academic year beyond the next year. The Directors estimate the deferred income by pro rating the fees paid over the period in which the payment covers. 24 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 26 144 High School of Dundee Notes to the group financial statements {continued) Financial activities of the School The financial activities shown in the group st8lemenl are those of the School. the Scholarship Fund and the Foundation, together with its wholly owned subsidiary, Euclid Trading Limited. A summary of the financial activities of the School, excluding the other entities is set out below.. Statement of financial activities 2024 2023 Restated £000 £000 Income Expenditure on charitable activities Cost of raising funds Actuarial Ilossesllgains Realised investment losses Unrealised investment gainslllosses 13.492 {12,2431 14201 1211 191 100 12,631 {12,233} 1320) 61 1131 18) Net movement In funds 899 118 Total funds brought forward 9,208 9,090 Total funds carried forward 10.107 9,208 Flnanclal actlvltles of the subsldlarles A summary of the financial activities of The High School of Dundee Scholarship Fund. The High School of Dundee Foundation, and Euclid Trading Limited are set out below.. 2024 £000 2023 £000 The High School of Dundee Scholarship Fund Net movement in funds 23 1441 Total funds 818 The High School of Dundee Foundation Net movement in funds 141) 11511 Tot81 funds 916 957 Euclid Trading Limited Profit for the financial year 89 81 Total equity 89 81 25 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 27 144 High School of Dundee Notes to the group financial statements {continued) Expenditure includes: Group 2024 £000 School 2024 £000 Group 2023 £000 School 2023 £000 ALKlitor's remuneration.. for audit services 24 14 22 Total staff costs comprises: Wages and salaries Social security costs Pension contribLJlions Pension deficit payments 7,070 742 1,343 38 7,070 742 1,343 38 7,558 752 1,323 28 7,558 752 1,323 28 9,193 9,193 9,661 9,661 The average number of employees in the year was 125 full lime and 112 part time (2023- 140 full time and 703 part time). Neither the Directors nor persons connected with them received any remunerats'on, other benefits or reimbursement of expenses from the School or any connected organisation. Redundancy and termination payments in Ihg year amount to £34,000 (2023 - £232,000) and were made from unrestricled funds. 2024 No 2023 No The number of hoher paid employees was.. £70,000- £80,000 £80,000- £90,000 £120,000- £130,000 £130,000- £140,IyJo The remuneration of key management personnel in the year was £411,000 (2023- £390,000)- 26 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 28 144 High School of Dundee Notes to the consolidated financial ststements (continued) Analysis of total expenditurè 2024 Staff costs Other costs 2024 Totsl 2023 Total Restated (Tru(J £UDO £OUD £ODD Charitable activiti95 Grants Teaching Premises Catering expenses Support costs Depreciation Gain on diswsal of fixed assets Governance costs 139 783 1,282 319 136 510 116} 49 139 8,162 1,924 319 1,165 510 116) 49 240 8,635 1,553 294 1,238 421 7,379 642 1,029 47 9,050 3,202 12,252 12,428 Raising funds Fundraising Development office Trading acts'vities 5T 262 57 405 44 306 143 143 323 466 355 Total expenditura 9,193 3,525 12,718 12,783 Governance costs are allocated as shown below: 2024 £000 2023 £000 Cost typè Basis of apportionment Audit fee Other costs Actual Actual 24 25 22 25 49 47 27 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 29 144 High School of Dundee Notes to the consolidated financial ststements (continued) Analysis of total expenditure {continued} 2023 Staff costs Other costs Restsled £000 2023 Total Restated £000 £o¢)o Charitable activities Grants Teaching Premises Catering expenses SupFK)rt costs Depreciation Governance costs 24D 826 961 294 107 421 47 240 8,635 1,553 294 1,238 421 47 7,809 592 1,131 9,532 2,896 12,428 Raising funds Fundraising Development offiGe Trading acts'vilies 44 177 44 306 129 129 226 355 Total expenditure 9,661 3,122 12,783 Governance costs are allocatad as shown bolow: 2023 £000 Cost typè Basis of apportionmènt Audit fee Other costs Actual Actual 22 25 47 28 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 30 144 High School of Dundee Notes to the consolidated financial ststements (continued) Tangible fixed assets Land & buildings £000 Plant & equipment £000 Computer equipment Fixtures & fittings £000 Total £oDo Group and School Cost At 1 August 2023 Additions Disposals Transfers £000 13,529 454 1,796 168 1601 724 73 476 16,525 695 1601 11,9671 11,9671 At 31 July 2024 12,016 1.904 797 476 15,193 Depreciation At 1 August 2023 Charge for year Disposals Transfers 5,629 309 1,598 85 1601 474 114 458 8,159 510 1601 11,4461 11,4461 At 31 July 2024 4,492 1,623 588 460 7,163 Net book value At 31 July 2024 7,524 281 209 16 8.030 At 31 July 2023 5,629 1,598 474 458 8,159 Included above are assets with a nel b¢)ok value of £48,00012023- £39,000) which were grfted lo the School. Depreciation on these assets in the year was £15,000 (2023- £15,000). Included within plant & equipment above are assets held on hire purchase with a net book value of £29,000 {2023- £39,000). Depreciation on these assets in the year was £10,000 (2023- £10,000). Included under18nd & buildings are transfers with 8 NBV of £521,000 (2023- £NilJ from non-currenl tangible fixed assets lo current tangible fixed assets held for sale. These relate to property owned th81 a￿ being acts.vdy marketed or are planned lo be actively marketed within one year post year end. Tangible fixed assets held for sale Land & buildings Total Group and School £000 £000 At 1 August 2023 Transfers 521 521 At 31 July 2024 521 521 29 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 31144 High School of Dundee Notes to the group financial statements {continued) Investmants 2024 Group 2024 £000 School 2024 £000 Group 2023 £000 School 2023 £000 At market value Al 1 August 2023 Additions Disposals Unrealised gainlllossl 2,146 352 {4111 163 1,313 211 12401 100 2,230 473 15461 1,375 285 13391 181 Balance al 31 July 2024 2,250 1,384 2,146 1.313 Listed on stock exchange Other 2,246 1,384 2,142 1.313 Totsl 2.250 1.384 2.146 1.313 Historic Cost Balance at 31 July 2024 2,096 1,281 2,103 1,288 The investment portfolio is managed on a discretionary basis by the School's Investrnent Managers. Seven Inveslmenl Management LLP. The following investments held at 31 July 2024 are greater than 5Qk of the portfolio by market value.. 2024 2024 £000 Y. of Total Group 71M Sustainable Balance S Acc Amundi Index Solutions EM UBS ILUXI Fund Solutions 923 314 133 41.0% 14.0% 5.9% School 71M Sustainat￿e Balance S Acc Amundi Index Solutions EM UBS {LUXI Fund Solutions UBS {IRLI ETF PLC 569 263 82 71 41.1% 19.0% 5.9. 5.1'/0 30 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 32 144 High School of Dundee Notes to the financial statements {continued} Investments (continued) 2023 £ODO 2023 Yo of Tolal Group 71M bustsinable Llalance b Acc Amundi Index Solutions EM UBS IIRLI ETF PLC UBS ILUXI Fund Solutions 4U.ti°h 12.6° 6.2° 6.1° 270 134 131 School 71M Sustainable 8al8nce S Acc Amundi Index Solutions EM UBS IIRLI ETF PLC UBS ILUXI Fund Solutions 534 217 88 80 40.74 16.5• 6.7V 6.1Q/ Investmènt Risks FRS 102 requires the disclosure of information in relation lo certain inveslmenl risks. These risks are sel out by FRS 102 as folths.. Credit risk.. this is the risk that one paty lo a financial instrument will cause a financial loss for the other paty by failing lo discharge an obligation. Market risk.. this comprises currency risk, interest rale risk and other price risk. Currency risk.. this is the risk that the fair value or future cash flows of a financial asset will fluctuate because of changes in foreign exchange rates. Interest rate risk.. Ihh% is the risk that the fair value or future cash flows of a financial asset wll fluctuate because of changes In market interest rates. Other price risk.. this is the risk that the fair value or future cash flows of a financial asset will fluctuate because of changes in market prices lolher than those arising from interest rate risk or currency risk), whether those changes are caused by factors specrfic lo the individual financial instrument or ils issuer, or factors affecting all similar financial instruments traded in the market. The Group and School have exposure lo these risks because of the investments it makes to implement its investment strategy. The Directors manage investment risks, including credit risk and market risk, within agreed risk limits which are sel taking into accoLJnt the Group and School's slralegie investment objectives. These investment objectives and risk limits are implemented Ihrough the investment manager agreements in place with the Group and School's investmerbl managers and mnitored by the Director's by regular reviews of the investment porffolios. Further information on the D1￿clOr'S approach lo risk management and the Group and School's exposure lo credit and market risks are sel out below.. 31 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 33 144 High School of Dundee Notes to the financial statements {continued} Investments (continued) Credit Risk The Group and School invest directly in listed investments, as well as in pooled investment vehiGle5 and is therefore directly expE)sed lo Gredit risk in relation to these listed instrument5 and is indirectly exposed to credit risks arising on pooled investment vehicles. Pooled investment arrangements used by the Group and School comprise authorised unil Irusls. Currency risk The Group and School are suts'ect lo currency risk because some of the investments are held in overseas markets. Interest rate risk The Group and School are suLI'ect lo interest rale risk through investments comprising bonds. Other price risk Other price risk arises principally in relation to eqLJities held. The Group and Sehool manage this exposure lo other price risk by constructing a diverse portfolio of investments across various markets. 10 Dèbtors Group 2024 £Doo School 2024 £000 Group 2023 £000 School 2023 £000 Trade debtors Other debtors Prepayments Due from subsidiaries 11,348 11,330 36 182 112 113 40 118 105 36 118 64 182 11,574 11,660 271 323 Creditors Group 2024 £000 S¢hool 2024 £000 Group 2023 £000 School 2023 £000 Amounts falling due within one year.. Bank loan Isecuredl Hire purchase Isecuredl Trade creditors Sundry creditors and accruals Taxes and other social security costs Deferred income Due to subsidiaries Pension liability deficit funding 122 13 290 717 317 21 122 13 290 705 317 21 380 73 13 33S 631 331 12.192 13 335 619 331 12.192 301 75 75 73 13,577 13,866 1.553 1,921 32 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 34 144 High School of Dundee Notes to the financial statements {continued} 11 Creditors {continued} Group 2024 £000 School 2024 £000 Croup 2023 £000 School 2023 £wo Amounts falling due after more than one year.. Bank loan (secured) Hire purchase Isecuredl Deferred income Pension liability deficit funding 117 22 170 500 117 22 170 500 516 476 516 476 1,001 1.001 809 809 The bank loan was secured upon Mayfield Sports Centre and al the year end this secured remained active. The ban was repaid by quarterly instalmenls of £35,000 and interest is charged al 2.24/0 over base rale and was fully repaid in the year. The hire purchase creditor is secured over Ihe asset in which li relates. Deferred income relates to fees invoiced in advance or paymenls received in advance but in relation lo future academic periods. Deferred income- Group and School 2024 £000 2023 £000 At 31 July 2023 Released in year Received in year 191 {21) 12.538 217 1261 At 31 July 2024 12,708 191 Due within one year Due out with one year 12.192 516 21 170 12,708 191 12 Financial instruments Group 2024 £000 School 2024 £000 Group 2023 £000 School 2023 £000 Carrying amount of financial assets Financial assets measured at fair value through the statement of financial activities 2,250 1.384 2,146 1,313 Financial assets measured at fair value through the statement of financial acts'vities comprises investments. 33 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 35 144 High School of Dundee Notes to the financial statements {continued} 13 Funds 2024 Unrestrictad funds £000 Rastricted funds £000 Endowad funds £000 Total £000 Group Balance at 1 August 2023 Net incomellexpenditurel before gains and losses 7,877 1,773 1,414 11,064 814 {78) 22 758 8,691 1,695 1,436 11,822 Actuarial losses 1211 1211 Realised investment losses (3) 19) 1121 Unrealised investment gains 100 163 Balance at 31 July 2024 8.670 1,755 1.527 11.952 Represented by Tangible fixed assets Investments Net current assets Long term liabilities 7.982 8.030 2.250 2.673 {1.0011 866 889 1.384 95 1.689 11,0011 8.670 1,755 1,527 11.952 Unrestricted funds £000 Rostricted fund$ £000 Endowed f unds £000 Total £000 School Balance at 1 August 2023 Net incomellexpenditurel before gains and losses 7.794 1.414 9,208 807 22 829 8,601 1,436 10,037 Actuarial losses 1211 1211 Realised investment losses 19) {9 Unrealised investment gains 100 100 8alan¢e at 31 July 2024 8,580 I,S27 10,107 Represented by Tangible fixed assets Investments Net current assets Long term liabilities 7,982 8,030 1,384 1.694 (1.0011 1,384 95 1.599 11,0011 8.580 1,527 10,107 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 36 144 High School of Dundee Notes to the group financial statements {continued) 13 Funds Icontinued) 2023 Unrestricted funds £000 Reslricled funds £000 Endowed funds £O(K) Total £000 Group Balance al 1 August 2022 Net incomellexpenditurel before gains and losses 7,695 1,968 1,472 11,135 121 11821 (371 198) 7,816 1,786 1,435 11.037 Actuarial gains 61 61 Realised investment losses 1101 {131 123) Unrealised investment gains 131 181 111) Balance at 31 July 2023 7,877 1,773 1.414 11.064 Represented by Tangible fixed assets Investments Net current assels Long term liabili118S 8,327 8,366 2,146 1,361 {809) 833 940 1,313 359 18091 7,877 1,773 1,414 11,064 Unrestricted funds £000 Reslricled funds £000 Endowed funds £o(J) Tot81 £000 School Balance al 1 August 2022 Net incomellexpenditurel before gains and losses 7,618 1,472 9,090 115 {371 178) 7,733 1,435 9,168 Actuarial gains 61 61 Realised investment losses {131 113) Unrealised investment gains 181 18) Balance at 31 July 2023 7,794 1,414 9,208 Represented by Tangible fixed assets Investments Net current assets Long term liabilities 8,327 8,366 1,313 338 {809) 1,313 276 18091 7,794 1.414 9.208 35 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 37 144 High School of Dundee Notes to the group financial statements {continued) 13 Funds lcontinued) The Unrestricted Funds are those funds which the Directors are free to use in ￿CordanCe with the charitable objectives of the School. Rostrlctod Fiinds consist of the Scholarship Fund which has been get up to provide scholarships and bursaries for children wishing lo allend the School, and the Foundation which seeks in addition to these objectives also lo provide funding for specific School projects. At the year end £840,00012023- £818,000) relates lo the Scholarship Fund, and £916,00012023- gJ57,000) relates to the Foundation, less adjust￿￿nIS applied on consolidation. The Endowad Fund represents accumulated funds endowed for the long term benefit of the School. 14 Reconciliation of net ineomel(expenditure) to net cash inflow Group 2024 £000 School 2024 £000 Group 2023 £000 School 2023 £000 Net irpcomellexpenditure) Non-operaling cashflows eliminated.. realised investment losses unrealised inveslmenl Igainslllosses investment income assets gifted Depreciabon Cain on disposal of fixed assets Decreasellincreasel in stock Ilncreaselldecrease in debtors Increase in creditors 899 1711 118 12 (1631 {561 1241 510 116) 23 13 {1001 {52} {24) 510 {16) 1521 1431 421 421 141 40 68 141 27 28 111,303) 12,335 (11,3371 12,256 Net cash inflow f rom operating activities 2,186 2,148 436 568 Analysls of changes In net debt Start of year £000 Cash- flows £000 New financing End of year £000 Group £000 Cash Loans falling due Wlthin one year Loans falling due after more than one year Finance lease obligations 2,629 1122 1117 135 1,515 122 117 13 4,144 1221 Total 2,355 1,767 4,122 Start of year £000 Cash- flows £000 New financing £000 End of year £000 School Cash Loans falling due within one year Loans falling due after more than one year Finance lease obligations 1,922 11221 11171 1351 1.446 122 117 13 3,368 1221 Total 1,648 1,698 3,346 36 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 38 144 High School of Dundee Notes to the financial statements {continued} 15 Plant and aquipment commltmgnts Annual commitments under non-cancellable operating leases are set out below.. Group School 2024 £000 2023 £000 2024 £OOD 2023 £000 Whar& lease expires: Within one year Within - five years 23 16 23 40 33 16 Capital commitments Al the year-end £71,000 (2023- £Nil) was contracted but not provided for. 17 Penslon Schemes All members of staff are required lo participate in one of the School's pension schemes unless they expressly opt out. Teaching staff participate in the Scottish Teachers. Pension Scheme ISTPSI managed by the Scottish Public Pensions Agency ISPPAI. This is a defined benefit scheme and is based on career average. Support staff participated in the Independent Schools. Pension Scheme IISPS} managed by The Pensions Trust. Al 31 August 2016, the defined benefit scheme was closed, and all members transferred lo a defined contribution scheme which lies within the ISPS. The rights of those members of the defined L)enefit scheme accrued until the dale of transfer are preserved. The school offers employees 8 choice of three contribution levels. During the year the total of the pension contributions amounted lo £1,343,000 (2023- £1,323,000). At the year end £165,000 (2023 - £748,000) of contributions were OLrtstanding. Thls amount Is included within other credltors due within one year. STPS The school participates in the Scottish Teachers, Supemnnuation Scheme. The scheme is an unfunded statutory public service penS￿n scheme with benefits underwritten by the UK Government. The scheme is financed by payments from employers and from those current employees who are members of the scheme and paying contributions at progressively higher marginal rates based on pensionable pay, as specified in the regulations. The rale of employer contributions is sel with reference lo a furiding valuation undertaken by the scheme actuary. The four-yearly valuation undertaken as al 31 March 2016 informed an increase in the employer contribution mte from 17.20/0 10 230A of pensionable pay from September 2019 and an anticipated yield of 9.40A. Subsequent information from the last valuation undertaken as al 31 March 2024 indicates that the rale is expected to increase to 260/0 of pensionable pay from 1 April 2024 10 31 March 2027. The School has no liability for other employer's obligations to the multi-employer scheme. As the scheme is unfunded there can be no deficit or surplus to distribute on the wind-up of the scheme or withdrawal from the scheme. The scheme is an unfunded multi-employer defined benefit scheme. 37 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 39 144 High School of Dundee Notes to the financial statements {continued} 17 Pension Schemes (continued) STPS (continu8d) It is accepted that the scheme can be treated for accounting purpw)ses as a defined contribution scheme In circumstsnces where the School Is unable to Iijenlify its share of tile underlying assets and liabilities of the scheme. While a valuation was carried out as al 31 March 2016, it is not possible lo say what deficit or surplus may afFecl future conlribulions. Work on the valuation was suspended by the UK Government pending the decision from the Court of Appeal (Mccloud (Judiciary schemellsargeant IFirefighlers' Scheme) cases) that held that the transitional protections Kyovided as part of the 2015 reforms was unlawfully discriminated on the grounds of age. Following consull8tion and an announcement in February 2021 on proposals to remedy the discrimination, the UK Government cnnfirmed that the cost control element of the 2016 valuations could be completed. The UK Government has also asked th2 Government Actuary to review whether, and lo what extent, the cost control mechanism is meeting its original objectives. The 2020 actuarial valuations were sel to lake the reports findings into account. The interim report is complete Irestrictedl and is currently being finalis￿1 with a ci)nsullation. Alongside these announcements, the UK Government confirmed that current employer (x)nlribution rates would stay in force until 1 April 2024. Employee contribution rates during the year were.. Pensionable Salary Up to £34,286- 7.35Yo £54,729- £67,975- 10.61% £34,287- £46,155- 8.88° £67,976- £92,693- 11.73% £46,156- £54,728- 9.90Q £92,694 aThJ above- 12.140/0 Isps The Pensions Trust offers five different benefit structures within the Independent Schools, Pension Scheme. The School participated in fv40 of these structures al a defined benefit- final salary with a 1160th accrual rate and bl a defined contribution The defined benefit scheme closed on 31 August 2016, and all members transferred lo the defined contribution scheme. The School introduced the new contribution rates to the defined contribution scheme that was I￿gInallY introduced in 2015 to (x)mply wrth auto-enrolmenl requirements. a) Defined Benefit Schemo- Final salary The School closed the defined benefit scheme al 31 August 2016. All member benefits accrued until that date have been preserved, therefore there is an ongoing liability for the School. The Trustees commission an actuarial valLJation of the Scheme every three years. The main wrpose of the valuation is lo determine the financial position of the Scheme in order lo determine the level of fulure contributions requir&d, in res￿¢1 of each benefit structure, so that the Scheme can meet ils pension obligations as they fall due. The actuarial valuation assesses whether the Scheme's assets at the valuation dale ar8 likely lo be sufficlent io pay the pensbn beneflis accrued by members as ai the valuaiion dale. Asset valLJes a￿ calculated by reference to market levels. Accrued pension benefits are valLJed by discounting expected future benefit payments using a discount rate calculated by reference lo the expected future investment returns. 38 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 40 144 High School of Dundee Notes to the financial statements {continued} 17 Pension Schemes (continued) ISPS (continued) The last formal valuation of the Scheme was performed as a130 September 2020 by a ofessionally qualitied actuary using the Vroiecte(J Unit Melhod. I he market value of the Scheme's assets at the valuation date was £201.1 million. The valuation revealed a shorffall of assets compared with the value of liabilities of £55.2 million, equivalent lo a past service funding level of 78Yo. The School was notified by ISPS that following the triennial valuation undertaken lo 30 September 2020 it would be necessary to increase the funding contributions lo £70,331 per annum payable for 8 ten year period Increasing by 30A per annum resulting in a total repayment of £801,816. Since the contribution rates payable lo the Scheme have been determined by reference to the last full actLJarial valuation the following notes relate to the formal actLJarial valuation as at 30 September 2020. The financial assumplK>ns underlying the valuation as at 30 September 2020 were as follows: RPI Rale Gilt Inflation Curve at each term 3.081 1Yo below RPI 2.08Q/. CPI inflation at each term CPI Rale Rale of Salar increase Inveslment return Pension increasas Limited price indexation15°k capl Derived each term using Black Scholes Method with a volatility assum tion of 1.75/0 The tsble below illustrates the assumed life expectancy in years for pension scheme members at age 65 using these mortality assumptions.. Males Assumed lrfe expectancy in years at e65 23.88 22.24 Females Assumed life expectancy in years at age 65 Non-pensioners Pensioners 26.01 24.56 The long-term joint conlribulion rates required from employers and members to meet the cost of future benefit accrual were assessed at.. Long term lolnt contrlbutlon rate {Yo of ensionable salaries 48.6 36.6 Beneflt structure with a 1160th accrual rate with a 1180th accrual rate Final sala Final sala If an actuarial valuation reveals a shortfall of assets compared lo liabilities the Trustees musl prepare a recovery plan setting out the steps to be taken to make up the shortfall. Following the results of the previous actuari81 v8lualion at 2017, it was agr&d that the shortfall of £38.2m woukj be dealt with by thè payment of deficit contributions of £2.4m from 1 September 2019 10 30 April 2030. The latest actuarial valuation at 2020 shows a shortf811 of £55.2m and this will be dealt with by the payment of deficit contributions of £2.7m from 1 September 2024 to 30 June 2032. 39 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 41144 High School of Dundee Notes to the financial statements {continued} 17 Pension Schemes (continued) ISPS (continued) The debt for the Scheme as a whole is calculated by comparing the liabilities for the Scheme Icalculated on a buy-out basis i.e. the cosl of securing benefits by purchasing annuity policies from an insurer, plus an allowance for expenses) with the assets of the Scheme. If the liabilib'es exceed assets there is a buy-out debt. The leaving employer's share of the buy-out debt is the proportM?n of the Scheme's liabilities allribulable to employment with the leaving employer compared lo the lolal amount of the Scheme's liabilities Irelaling lo employment with all the currently participating employers). The leaving employer's debt therefore Includes a Sha￿ of any 'orph8n' liabilities in respect of eviously participakn.ng employers. The 8moJnt of the debt therefore depends on many factors including total Scheme liabilities, Scheme investment performance, the liabilities in respect of current and former employees of the employ2r, financial conditk)ns at th2 time of the cessation event and the insurance bJy-ouI market. The amounts of debt can therefore be volatile over lime. Potential employer debt is treated as a contingent liability The School has been notified by The Pensions Trust of the estimated employer debt on withdrawal from The Independent Schools, Pension Scheme based on Ihe financial position of the Scheme as al 30 September 2023. As of this dale the estimated employer debt for the School was £2,023,330. b) Defined Contribution Scheme Following the closure of the defined benefil scheme on 31 August 2016, the School offered two new levels of employee contribution into the defined contribution scheme, being 7.kn and 1 ￿10, both attracting an employer contribution of 13.55Yo. The exislirKJ option of employee contribution continued, which is matched by an employer contribution of 89/0. 18 Relaled party transactions During the year, the School Iransacled with the Scholarship Fund and the Foundation, along with its wholly owned subsidiary, Euclid Trading Limited. The following is a summary of the transactions and balance with these reL41ed parties.. 2024 £000 2023 £000 Transactions Income Management charge (Euclid Trading Limiledl Gift aid (Euclid Trading Limiledl School fee SUPFX)rl (High School of Dundee Scholarship Fund) School fee SUPFX)rl and donations (High School of Dundee Foundalionl Developmeni offlce recharge (Hlgh School of Dundee Foundatlonl 10 81 30 10 75 30 69 25 170 25 Expénditure Loan interest {High School of Dundee Foundalionl 13 40 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 42 144 High School of Dundee Notes to the financial statements {continued} 18 Related party transactions (continued} 2024 £000 2023 £000 Balancos Amounts due trom the ￿U¢ll￿ I rading Limited Amounts due from the High School of Dundee Scholarship Fund Amounts due lo the High School of Dundee Foundation 41 71 301 27 37 380 DLJring the year no (2023 - one) member of Key management personnel had ehildren attending the school. The number of ehildren involved was none12023- one) and the associated discount was £Nil (2023- £5, 732). 41 HSD AGcounl$ pdf Ifa49m4￿22￿4844-b974-8￿jee7le45I8l Page". 43 144