The Trustees present their annual report and financial statements for the year ended 31 August 2024.
The aim of the School is to stimulate and encourage children to maximise their potential in mind, body and spirit through a broad and varied curriculum. The School wishes to provide this quality of education for an ever wider range of children while at the same time being a responsible employer and an integral member of the local community.
The Trustees are fully committed to operating the School in the spirit of the Charities Act 2011 and for the public benefit in its broadest sense. They believe the benefits of the charity to the pupils of the School are clear and some of their achievements are mentioned below as are the steps the Trustees are taking to widen access to the charity's benefits by making both facilities and the provision of education itself available to greater numbers of children. The Trustees recognise, however, that a balance must be struck between offering free or reduced-fee places and maintaining sufficient income to sustain the financial health of the charity. This year, the School has strengthened its links with local community schools, mainly by sharing sports and leisure facilities and is very open to involvement in other ways. The Trustees are able to confirm that all of the expenditure detailed in these accounts was used in furtherance of the Trust's objectives.
In furtherance of the Trust's objectives, the Trustees have continued to support the upgrade of the School’s facilities. During the year, this programme included a comprehensive redevelopment of the main teaching block, construction of a new Pre Prep playground, construction of a weather-proof pavilion to adjoin the Millennium Hall and renovation of the Nursery. The School continued its work towards greater energy efficiency, with a focus on solar energy generation to be achieved through the construction of a 100kW ground mounted solar PV system. Although this project was set to commence in August 2024, a last minute delay was imposed for archaeological reasons beyond the School’s control. This project is now underway.
The Trust constantly monitors trends and developments in education and where these have proved advantageous, they have been adopted. In funding improvements, it has always been the policy to generate sufficient surpluses to fund the costs of developments. There has been no change to these policies during the year.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Trust should undertake.
The description under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the Trustees to present a strategic report.
The primary charitable activity of the Trust during the year has been the education of the (on average) 348 children at Westbourne House School. Overall pupil numbers increased steadily during the year, with a net gain of 11 pupils. Although our end of year pupil numbers were strong, we anticipate weaker numbers in the coming years as large year groups which currently sit in the senior years will be replaced by leaner year groups currently moving up through the School.
The focus on Pre-Prep this year, both through investment in play areas as well as marketing, has paid dividends; having had a low start number of 77 in September 2023, we expect 92 to start in the coming year. We will be looking to replicate this in the Prep School next year as far as possible, particularly with a greater marketing focus.
The breadth of sport on offer is designed to ensure all pupils can participate - whatever their needs and ability. A structured games programme is provided, with a competitive fixture list in many sports. The year saw regional successes in cricket, hockey, netball, rugby, swimming and athletics.
The balanced curriculum also included a full programme of performing arts and saw the vast majority of pupils involved in concerts, plays and events. Outdoor education and leadership activities occurred for Years 3 to 8, including a series of residential trips throughout the South of England.
At the end of the year, all 45 pupils in Year 8 passed the Scholarship or Common Entrance examination to gain places at senior school. Eleven pupils won a total of 12 awards from their senior school in recognition of their ability and potential.
School and Community Support
Maximising pupil participation in all areas of school life is important at Westbourne House, and the breadth of opportunities provided offers something for every pupil to enjoy beyond the classroom. The School seeks to promote a family atmosphere within its community and enjoys an excellent relationship with its employees. Staff turnover remains low; few teachers leave other than on promotion or retirement and there is a good record of internal promotion. The School maintains a close relationship with parents and with former pupils and continues to strengthen its ties with the Old Westbournian community.
The pastoral team continue to help pupils manage the challenges of school life, providing emotional support required to help forge good mental health and wellbeing.
Westbourne House is very conscious and proud of its place in the wider community. We are also continuing to invest in our School facilities. During 2023-24, the sports facilities were fully booked by local clubs and teams, including badminton, football, rugby, cricket and swimming. In some cases, a charge is made to defray a proportion of running expenses, but each week the School provides recreational opportunities to hundreds of people from the local area. The Millennium Hall continues to be a popular venue for festivals of music, drama and dance as well as fund-raising events for charities. The hire of facilities for charitable and fund-raising activities is generally free, or at a greatly reduced rate. The School reinforced its links with the cultural life of Chichester by commencing an informal partnership with Chichester Festival Theatre and was delighted to accommodate the junior cast members of ‘Oliver’ over the summer holidays.
Public Benefit
The School has an excellent record of facilitating access for children from a wide range of social and financial backgrounds, including the most disadvantaged, to provide them with the opportunity to benefit from the full breadth of a Westbourne House education with appropriate bursary and scholarship assistance. Bursary awards are made on the basis of parental means or to relieve hardship where a pupil's education and future prospects would otherwise be at risk. In assessing means, a number of factors are taken into consideration including family income, investments and assets, together with family circumstances, as the School seeks to ensure opportunities are given to pupils across the full spectrum of affordability and social background. Means tested support is reviewed on a periodic basis to identify any significant change in financial circumstance. During the year, 72 children received assistance from the School in the form of scholarships or bursaries while a further 19 children paid discounted fees. Five children benefited from bursaries worth 75-100% of the fees, including two Ukrainian children who spent their final year with the School.
Pupils, parents and staff again organised a wide variety of fundraising activities for this year's School's charities, including West Sussex Mind, Chestnut Tree House, Global Canopy and the School's own Bursary Fund. The School continues to fund raise and has amassed sufficient funds over the last year to donate £60,300 to good causes.
Westbourne House contributes significantly to the local economy. Its employees predominantly live in the Chichester District and the School has a policy of purchasing goods and services locally wherever possible.
We know that meeting the cost of a first-class independent education is a major investment for all our parents, and that many have to make significant sacrifices to meet this. And we also recognise that tax changes will add significantly to this cost. We are therefore continually seeking efficiency improvements in our educational provision and in the wider School operations.
The operating activities of the Trust generated an income of £6.708 million and this resulted in a surplus on unrestricted funds of £551,367 and a deficit on restricted funds of £49,264 (total surplus for the year being £502,103). There was a decrease in operating income of £304,448 relative to last year.
Total balances held with National Westminster Bank as at 31 August 2024 were £2,252,741, with a further £3,397,853 held in investments with Rathbones. The Trust made an investment gain during the period of £157,547.
The Trust remains in a healthy financial position, which will enable it to maintain its ongoing programme of capital expenditure.
Total reserves at the balance sheet date are £13,987,577 (2023 - £13,485,474), of which £13,870,203 (2023 - £13,318,836) are unrestricted and £117,374 (2023 - £166,638) are restricted.
It is the policy of the charity that free reserves should be maintained at a level equivalent to at least three month’s expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities whilst consideration is given to ways in which additional funds may be raised. As at 31 August 2024, free reserves stood at £3.147 million representing the charity’s unrestricted funds less fixed assets (£10,723,198).
The day-to-day finances of the charity are managed by the Bursar and the Finance Manager. The Bursar reports regularly to the Finance Committee. Budgeting and careful control of expenditure are key policies for the charity.
The charity's principal funds are generated from fees charged to parents of pupils. All expenditure in the year, other than governance costs, has been incurred specifically to meet the charity's key objective of educating children up to the age of 13.
The Trustees consider that the market value of the land and buildings substantially exceeds the book value of £9.819 million.
The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
The Trustees maintain an up-to-date Strategic Risk Register which identifies the most significant risks to ongoing operations of the School and to the delivery of its strategic objectives. The register details the appropriate risk mitigation measures and is reviewed on a regular basis by the Senior Leadership Team and on a termly basis by the Governors. Within this sits an Operational Risk Register, which is also reviewed regularly by the Senior Management Team. Governors have also reviewed the School's insurance cover to ensure that it is adequate. Among those risks the most significant are considered to be:
- inadequate financial planning and forecasting for the change to the VAT regime.
- an awareness of the challenges created by changes to the VAT regime, but the School fails to act.
- a reduction in pupil numbers and resultant loss in fee income due to an adverse change to the VAT regime in which the School currently operates.
- a major incident which causes closure of the School and/or severe loss of confidence by parents.
- a major accident which causes partial or complete closure of the School.
Westbourne House plans to maintain stability and quality above all else. We are constantly striving to enhance the experience of our pupils at the School, and the opportunities that a Westbourne House education offers. In order to achieve this, the School must ensure that we retain sufficient teaching staff of the right calibre and expertise to inspire our pupils and give confidence to our parents. This requires a high standard of facilities and a through continuous upkeep of the buildings and grounds.
Our commitment to the broader community through charity fundraising will continue. A portion of our fundraising will be used to support the Bursary Fund which the Trustees see as being an important aspect of widening access to the School.
The Trust is a registered charity and a company incorporated under the Companies Acts 1985 to 2006, limited by guarantee. The Trust's governing document is its Memorandum and Articles of Association. The Trust's objects are to provide high quality education for children up to the age of 13 years, through the medium of Westbourne House School, and to prepare children for entry to Public and State schools.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The Trustees desire that the Board should represent a wide spectrum of appropriate interest and experience including business and administration, education, the law, the arts and, especially, a strong feeling for the School and its aims. The majority of trustees have had children at the School and it is the policy that one or two trustees should be current parents. Trustees may be nominated by anyone connected with the School and nominations are considered by a small committee of Trustees who take soundings from interested parties, including the Headmaster, before recommending a name to the full board. The induction and training of new trustees is in five overlapping phases: a detailed introduction to the School by the Headmaster and Bursar, mentoring by the Chairman of Governors and by the chairmen of committees in their respective areas, frequent visits to the School and regular contact via newsletters etc, attendance at events organised by training bodies, and self-study of training materials. In the last Educational Quality with Focused Compliance Inspection conducted by the Independent Schools' Inspectorate, the School was found to meet or exceed the necessary standards.
The Trust is governed by a Board of Trustees (Governors) who determine the policy and strategies of the School. The Board is supported by the Finance and General Purposes Committee and by the Academic and Pastoral Committee. The operational management of the School is directed by the Headmaster, Mr Martin Barker (Chief Executive Officer) and the Bursar, Mr Gordon Falconer (Chief Operating & Finance Officer) who manage a total of 66 teaching staff and 70 support non-teaching staff, both full and part time.
Remuneration is set by the Board, with the policy objective of ensuring appropriate incentives to encourage enhanced performance and in a fair and responsible manner, rewarding for individual contributions to the School’s success. The appropriateness and relevance of the remuneration policy is reviewed regularly by the Remuneration Sub-Committee, including reference to comparisons with other independent schools to ensure that Westbourne House remains sensitive to the broader issues of pay and employment conditions elsewhere. We aim to recruit, subject to experience, at a position within a pay band in order to be able to reward staff for excellence. Delivery of the Company’s charitable vision and purpose is primarily dependent on our key management personnel and staff costs are the largest single element of our charitable expenditure.
There are no restrictions on the investment powers of the Trustees. The current strategy is focused on long term capital growth with Rathbones on a Risk 5 Investment Strategy (on a scale of 1 to 6). The investment horizon is long term, with an objective of CPI + 4% per annum net of all fees over a 3 year rolling basis. The Trustees keep the performance of investments under regular review in order to manage risk and maximise return.
Note 26 sets out an analysis of the assets attributable to the various funds and a description of the Trusts. These assets are sufficient to meet the charity's obligations on a fund by fund basis.
In accordance with the company's articles, a resolution proposing that Sumer Audit be reappointed as auditor of the company will be put at a General Meeting.
The Trustees' report, including the strategic report, was approved by the Board of Trustees.
The Trustees, who are also the directors of Westbourne House School Educational Trust Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Opinion
We have audited the financial statements of Westbourne House School Educational Trust Limited (the ‘Trust’) for the year ended 31 August 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Trust’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report and the strategic report prepared for the purposes of company law, is consistent with the financial statements; and
the strategic report and the directors' report included within the Trustees' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Trust and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report included within the Trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the Trust for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Identification and assessment of 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, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
· Obtaining an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a direct effect on the financial statements and operations;
· Obtaining an understanding of the charity's policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud;
· Discussing among the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud through our knowledge and understanding of the company and our sector-specific experience.
As a result of these procedures, we considered the opportunities and incentives that may exist within the association for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: health & safety and employment law, as well as compliance with the UK Companies and Charities Acts.
In addition to the above, our procedures to respond to risks identified included the following:
· Making enquiries of management about any known or suspected instances of non-compliance with laws and regulations and fraud;
· Reviewing minutes of meetings of the board and senior management.
· Reading correspondence with regulators
· Challenging assumptions and judgements made by management in their significant accounting estimates; and
· Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Investments
Raising funds
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Westbourne House School Educational Trust Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Westbourne House School, Coach Road, Shopwyke, West Sussex, Chichester, PO20 2BH.
The financial statements have been prepared in accordance with the Trust's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The Trust is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Income, including grants, is recognised when the Trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the Trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Included in other income are recoverables which are shown net of expenditure. These are shown net because they are small amounts spent which are recoverable from the pupils and are included on the bills sent to parents.
Liabilities are recognised when they are incurred and the costs are debited to the Statement Of Financial Activities in full in the year in which they relate to. Education equipment and materials and sports and games equipment incurred in June, July and August are treated as prepaid and are therefore debited to the Statement Of Financial Activities in the following financial year.
Charitable activities expenditure consists of providing education which is split between activities undertaken directly, grant funding of activities, support costs and governance costs. Activities undertaken directly includes the gross salary, employer's NI and employer's pension of the teaching staff, the depreciation of the computer equipment, education equipment and materials, sport and games equipment, educational visits and activities and provisions. Support costs includes all the other costs incurred except audit and accountancy fees which are included in Governance costs.
Tangible fixed assets other than freehold land are stated at cost net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
No depreciation is provided on freehold buildings on the grounds that it would be immaterial as the buildings have an estimated long remaining useful life and high residual value, in excess of their cost.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
At each reporting end date, the Trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The Trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Trust's balance sheet when the Trust becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the Trust’s contractual obligations expire or are discharged or cancelled.
Provisions are recognised when the Trust has a legal or constructive present obligation as a result of a past event, it is probable that the Trust will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Deferred income (Fees in advance)
Amounts received under the school's Fees in Advance Scheme are contracts for education not utilised to settle school fees and are recorded as deferred income and allocated as current liabilities where the education will be provided within 12 months from the reporting date and as long-term liabilities where the education will be provided in subsequent years.
In the application of the Trust’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Net Fees receivable
Recreational facilities
Summer camps and courses
Letting of boarding facilities
Education equipment and materials
Sport and games equipment
Educational visits and activities
Provisions
Other charitable purposes
The grants payable to individuals of £0 (2023 - £33,921) are restricted grants to two Ukrainian refugees for their fees and expenses paid out of the Bursary Fund.
Rates
Insurance
Light and heat
Repairs and maintenance
Printing, postage, stationery, advertising and website
Telephone and fax
Motor expenses
Legal and professional fees
School inspection
Household expenses
Governance costs includes payments to the auditors of £7,100 (2023- £6,815) for audit fees and £14,394 (2023- £13,825) for other services.
None of the Trustees (or any persons connected with them) received any remuneration, benefits or refund of expenses from the Trust during the year.
The average monthly number of employees during the year was:
During the year there was redundancy expenditure of £11,500 (2023 - £0) which is included in creditors in the balance sheet.
The total number of full time equivalent staff was 97 (2023 - 105). This comprised teaching staff of 52 (2023 - 55), admin and support staff of 32 (2023 - 36) and welfare staff of 13 (2023 - 14).
During the year, the charity paid £117,901(2023 - £51,935) pension contributions for 5 (2023 - 5) members of staff earning over £60,000.
The remuneration of key management personnel is as follows.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The additions to the listed investments are mainly due to the monies received from the parents for the Fees in advance scheme which are shown in deferred income (see note 22).
The investments are included at middle price market value at 31 August 2024. The historical cost of these investments is £3,262,437 (2023 - £1,392,029)
There was a holiday pay provision of £0 (2023 - £50,000) which related to the re-calculation of the holiday pay element of several staff who are on annualised contracts who work term time only. The change in calculation was as a result of a High Court ruling and further advice was being sought on this before performing the calculations. It was thought that the payments would have to be made in the 2023/24 financial year and the £50,000 was a best estimate of what would be due for the 2021/22 and the 2022/23 years. The government has now reversed the High Court ruling, which means that the holiday pay will be calculated as it was before and the provision is no longer needed and has been reversed.
Deferred income is included in the financial statements as follows:
Parents may enter into a contract to pay to the school up to the equivalent of three years' tuition fees in advance. The money may be returned subject to specific conditions and on the receipt of one term's notice. The balance represents the accrued liability under the contracts.
The Trust operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Trust in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £433,980 (2023 - £389,633). At the balance sheet date there were accrued pension contributions of £62,878 (2023 - £57,359).
Restricted Bursary Fund - The Bursary Fund provides financial support to help pupils overcome the specific financial barriers to participation they face so they can benefit from education at Westbourne House School. Bursary awards are made at the discretion of the Governors, who will calculate discount levels in relation to a family’s financial circumstances based on a means-test which includes a review of income and capital resources.
Restricted Charities Fund – Westbourne House School has an excellent history of raising money for worthwhile causes. The Charities Fund supports four charities which includes at least one child-centred charity, a local charity and an overseas one. The charities are chosen by the pupils and they plan and organise their own fundraising events. Pupils have fun raising money while gaining an early understanding of how they might make a difference to people’s lives.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
Development Fund - The Westbourne House School Development Fund helps us provide a safe, well-equipped, and pleasant environment for pupils and staff. The Fund can be used to support a variety of projects, ranging from the construction of new buildings to the redevelopment of existing structures. The Development Fund is managed by the Governing Body. Parents and friends of the School can contribute to the Fund through one-off donations or regular payments.
Sustainability Fund – The Westbourne House School Sustainability Fund helps us prepare for a greener future. The Fund aims to advance sustainability onsite, in the classroom, in residences and/or in the local community.
At the reporting end date the Trust had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The operating lease payments recognised as an expense in the year were £11,970 (2023 - £10,202).
Amounts contracted for but not provided in the financial statements:
Mr J Bruce has children that attend the school with fee arrangements being in accordance with the school’s normal terms.
The Trust had no material debt during the year.