The Governors of Windermere Educational Trust Limited present their annual report and audited accounts for the year ended 31 August 2024 and confirm they comply with the requirements of the Charities Act 2011, the Charities SORP (FRS 102) and the Companies Act 2006.
REFERENCE AND ADMINISTRATIVE INFORMATION
Windermere Educational Trust Limited (“The Trust”) was founded in 1863 in Lytham St Anne’s. It is constituted as a Company Limited by Guarantee, registered in England and Wales, no. 00914963, and is registered with the Charities Commission under Charity No. 526973.
The Trust operates on three sites known as Windermere School, the Browhead Campus, for those in Year 7 and above, the Elleray Campus, for pupils in Pre-School to Year 6 and Hodge Howe, our Sailing and Outdoors Centre on the shore of Windermere. The Trust also operates under the trading name Windermere International Summer School.
There is one Governing Body. Details of the members of the Governing Body, together with the Trust’s officers and principal advisors, are given on the legal and administrative information page.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing Documents
The Trust is governed by its Memorandum of Association and Articles of Association last amended on 20 January 2017.
Governing Body
The Governing Body is self-appointed with one third of its members required to retire by rotation at each AGM. The first appointed, or longest serving since last reappointment, are the first to retire. Governors retiring by rotation can be re-elected.
New members of a Governing Body are elected on the basis of nominations by the Governors and the executive officers based on the candidates’ professional qualities, experience and personal competence.
Recruitment and Training of Governors
New Governors are inducted into the workings of the Trust, including Governing Body policy and procedures, at a series of induction meetings specially organised for them by the Head, the Clerk and other Governors. Governors carry out an annual skills audit and undertake to procure additional support or training to ensure the appropriate skills remain available to assist the School in meeting its strategic and operational objectives.
Organisational Structure
The Members of the Governing Body, as the Charity Trustees, are legally responsible for the overall management and control of the Trust. The Governing Body usually meets six times a year. The work of implementing their policies is carried out by five Committees:
The Finance and General Purposes Committee scrutinise revenue, the budget, the future capital plan, capital expenditure and monitor financial risk. This Committee also supervise and finalise the audited financial statements and annual report for approval by the Governing Body. The Finance and General Purposes Committee is chaired by Mr M A Hunter and reports to the Governing Body at each board meeting.
The Nominations Committee, chaired by Mr P A Hogan, oversees the orderly succession for appointments to the Board and senior management.
The Risk Management Group monitors the strategic risks facing the Trust. The group is chaired by the Bursar, Mr R Hennah and reported into the Board at each meeting via Mr I C Kenny until his resignation in May 2024. Mr Hennah now reports into the Board via Mr A D Smith.
The Education Committee chaired by Mr P A Hogan, monitors and reviews the academic, co-curricular and pastoral provision of the School, and makes recommendations as appropriate to the Governors.
The Marketing Committee, chaired by Mr P Scott, monitors the recruitment of new pupils through marketing and admissions initiatives.
Some governors have delegated responsibilities. For example, Reverend Canon, J D Brewster oversees all aspects of Safekeeping and also oversees the Early Years Provision.
The Chair of each committee co-opts members of the Governing Body and any additional external expertise they deem appropriate for matters under consideration by each committee.
The day to day running of the school is delegated to the Headmaster supported by the Senior Leadership Team. The Headmaster, Head of Elleray and Bursar, attend all meetings of the Governing Body’s Committees with the exception of the Nominations Committee.
Employment Policy
The School is an equal opportunities employer. Full and fair consideration is given to job applications from disabled persons and due consideration is given to their training and employment needs. Consultation with employees, or their representatives, has continued at all levels with the aim of taking the views of employees into account when decisions are made that are likely to affect their interests.
Trust Management
The Governors give consideration to the major risks to which the Trust is exposed. The Governing Body has ultimate responsibility for managing any risks faced by the Trust. Detailed consideration of risks is delegated to the appropriate sub-committee. The structure of these committees comprises appropriate membership from the Governing Body, assisted by the School’s Senior Leadership Team and any external expertise that may be required from time to time.
The Trust management process and the resulting reports identify risks, assesses their impact and likelihood and, where necessary, recommends controls to mitigate and monitor those risks that are assessed as high.
The generic controls used by the Trust to minimise risks include:
• Terms of reference for each committee and Trust Board activity;
• Comprehensive budgeting and management accounting;
• Established organisational structures and lines of reporting;
• Formal written policies including clear authorisation and approval levels;
• Vetting procedures as required by law for the protection of children.
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Health and safety is always a significant area for Risk Management. The risks range from fire and infrastructure to personal risks (most notably when away from the campus on trips and expeditions). The level and breadth of activity at the Trust's Schools is impressive and the risks associated with all activities are minimised by employing a competent and qualified Bursar with Health and Safety Co-ordinator responsibility, and a trained Educational Visits Coordinator. The Board used Kym Allen Associates to advise on Health & Safety and Educational Visits throughout 2023/24.
Pupil numbers remain lower than prior to 2020 and the COVID pandemic. Boarding pupil numbers have been particularly negatively impacted as overseas students have failed to return in previous volumes. The lower number of pupils has resulted in a sustained period of reduced fee income which in turn has significantly increased profitability and liquidity risk. The introduction of VAT on School fees from the start of 2025, and any resultant impact on pupil numbers is yet to be determined, however the Governing Body has concluded that it must move to a sustainable business model based on realistically forecast pupil numbers. As a result, the decision was taken towards the end of the 2023/4 academic year to relocate the pre-school to Year 6 pupils from the Elleray Campus to the Browhead Campus during the 2024/25 academic year.
The Governing Body is satisfied that for all major risks identified, appropriate controls have been put in place and maintained to mitigate those risks adequately. It is recognised that systems can provide only reasonable but not absolute assurance that major risks have been managed.
OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES
Charitable Objects
The Trust’s Objects, as set out in the Memorandum of Association, are the advancement of education by providing general instruction of the highest class, together with physical and moral guidance in the School’s management by the Trust. In furtherance of these Objects and for the public benefit, the Trust has established and administers bursaries, scholarships, awards and other benefactions, and acts as the Trustee and Manager of endowments, bequests and gifts given or established in pursuance of these Objects.
The Board is mindful of the long-standing need to provide public benefit and of the requirements of the Charities Act 2011. In this regard, the Board has monitored closely the supplemental guidance produced by the Charity Commission, in particular its public benefit guidance on advancement of education and on fee charging. Despite a continuing difficult economic climate, the Trust has exceeded £1m of support provided by way of bursary, discount or financial support. Of financial support provided, over half consists of hardship bursaries to local and national pupils. A quarter is allocated to oversees pupils, including pupils from Ukraine.
Vision
To be a school in which every pupil is inspired by the challenge, rooted in the land and brought into the fold: empowering compassionate change makers who seek to improve their world.
Mission Statement
The Trust’s mission is to produce confident and compassionate people. Through teaching excellence, supportive pastoral care and experience of our environment, we encourage individual success for community good.
Our vision and mission are shaped by our determination to encourage self-knowledge, articulated by our school motto: Vincit qui se vincit – One conquers who conquers oneself. Today that means: overcome yourself and you will achieve.
The School challenges pupils to excel, to have sufficient self-reliance to know that determination can overcome adversity, and to be of value to society.
Intended Impact
Within its charitable Objects, the Trust’s intention is to provide a first-class education through strong academic tuition and by developing broader skills that enable every pupil to realise his or her potential to the full. This involves emphasis on the co-curriculum through cerebral, adventure, sporting, performance, artistic, team-building and social skills.
This policy builds self-confidence and life skills in our pupils and inculcates a desire to learn and a willingness to contribute to the wider community whilst at school and in later life.
Aims
The Trust’s aims for the public benefit are to:
1. Inspire our pupils through a broad and balanced curriculum that challenges inside and outside the classroom, where they learn about their strengths and weaknesses, and are encouraged to strive for excellence in all things;
2. Support our pupils to develop their individual academic, creative and sporting talents and skills of leadership to enable and empower them to make an active and real contribution to their world;
3. Use our unique location at the heart of mountains, lakes and rivers as our greater classroom for adventure and adventurous learning, where our pupils will learn directly about the environment, each other and themselves;
4. Foster a democratic and accountable culture where our pupils contribute fully to school and community life and take increasing responsibility for their own learning and actions;
5. Encourage a global perspective by providing opportunities for all our pupils irrespective of gender, race and beliefs and encouraging them to value and respect differences.
Strategies to Achieve the Aims
The ongoing impact of the pandemic and wider socio-political considerations including the introduction of VAT on private school fees resulted in the decision to focus on a 2-year plan to September 2024. The plan included the repayment of the CBIL in the 2023/24 financial year. A business model for the future has been developed and will be implemented in 2024/25. The plan acknowledges the likelihood of sustained lower pupil numbers and recognises that fewer resources are required to achieve the stated aims. To adapt to the new landscape, the Board of Governors have agreed to relocate the Junior School to the senior School Campus (Browhead). This will be completed by April 2025, with the sale of the Junior School campus (Elleray) already underway.
Principal Activity
The Trust’s principal activity, as specified in the Memorandum of Association, is the advancement of education.
Public Benefit
Windermere Educational Trust Limited remains committed to the aim of providing public benefit in accordance with its founding principles. There is a requirement to demonstrate that public benefit for charitable purposes where it has hitherto been presumed in the absence of evidence to the contrary. This in turn calls for more detailed disclosures concerning our aims.
The awarding of bursaries for the needy is a measurable means of providing public benefit. The Board takes the view that bursaries awarded to those who would not otherwise be able to afford the fees are important, but not to the exclusion of the much wider benefit that the Trust provides within the community. Those pupils who attend our Schools and who receive financial support contribute to the School community in a variety of ways, and so the benefit is not purely to these pupils but to the Trust and, in some cases, to the wider community.
In 2023/24 the Trust awarded bursaries, scholarships and other awards totalling £936k (2022/23: £1.1m). Within this, means-tested awards based on a sliding scale according to financial circumstances totalling £597k were awarded to 43 pupils (2022/23: 43 bursaries totalling £565k). Bursary awards represented 9% of gross income in 2023/24 (2022/23: 9%).
In addition to bursaries, the Trust has engaged in many other activities that provide benefit to the public within the Trust’s objectives. It is difficult to measure accurately the financial value of this public benefit. The benefit provided by bursaries and other activities can then be considered alongside the benefit of educating the 200 UK pupils which, in itself, has saved the exchequer some £1.5m.
The Trust is an important part of the local community with 113 full and part-time employees in 2023/24 making it one of the largest employers in the district. By far the largest proportion of the Trust’s expenditure is accounted for by salaries and purchases from local and regional businesses. Thus a significant proportion of funds are invested directly into the local economy.
Other Charitable Activities
In addition to its primary purpose, in normal years the Trust provides a number of services and experiences to local primary schools free of charge. These include a Christmas production Show, Watersports Day, Languages Day and Geography Day.
Sailing and Watersports tuition at the School’s lake shore Watersports Centre is provided on a weekly basis to two local primary schools at minimal charge, and the Trust also provides a high quality School Meals Service to two other schools.
The Trust also frequently lets the School’s facilities at no charge to local community or charitable groups such as the Community Choir, County Sports Associations and Blackwell Sailing who provide free of charge sailing activities for those with a disability.
Pupils also make significant contributions to the local community and charities. The School runs a Service programme for Years 10 and 11, where pupils engage in a variety of activities for one afternoon per fortnight for the benefit of the local community. Examples of activities undertaken include repairing footpaths on the fells, conservation work in the grounds of a local visitors’ centre, planting trees and clearing litter from the National Park. Visiting local care homes to offer friendship and deliver performances.
STRATEGIC REPORT ACHIEVEMENTS AND PERFORMANCE
Academic
In 2024 the Trust continued to celebrate both individual successes and subject successes, amongst a set of results in keeping with previous years. Our results remain satisfying within the IB, BTECs and (I)GCSEs. As a non-selective school, with a substantial number of pupils with SEND or mental health issues, resulting in specific exam access arrangements to help them succeed, the results obtained are a testament to the commitment of both pupils and staff. More generally, across all pupils, building resilience, self-confidence and developing realistic aspirations should be the priority moving forward.
Overview of GCSEs
The school offers a mixture of IGCSEs and GCSEs which suits the pupils well. Universities draw no distinction between the two examinations types and the mixture ensures that the school can continue to offer courses to the pupils which are best suited to their aspirations. The Year 11 GCSE results seem fair, on the whole, although some exceptions were challenged with the exam boards, where appropriate. Nationally those who find learning more difficult are being penalised unfairly and likewise there has been seen a decrease in the top grades. Windermere School has always demonstrated a consistently high value-added score, and this year was no exception when the figure was a notable +0.667. This figure means that pupils are achieving well over a half grade above their nationally standardised GCSE CAT4 predictions. Before taking into consideration any positive remarks, 68% of all grades were awarded at levels 9-6/ A*-B. In addition, over 47% of all grades were a level 7/ grade A or higher, and 30% of awards were at the highly coveted level 8/ grade A* or above. The overall pass rate of grades awarded at level 4/ grade C was 91%. Several pupils attained an amazing set of outcomes with level 8s and 9s/A* across the board. Pupils gained up to 10.5 GCSEs.
Year 10 GCSE Science Results. Year 10 results are comparable with Year 11 results year on year, despite taking the examinations a year earlier. 50% of the one-year Chemists in Year 10 achieved a level 7 or above. Three pupils achieved a top level 9.
GCSE: Boys v Girls
Nationally girls outperform boys at this stage and this has been compounded with Teacher Assessed Grades (TAGs) which replaced exams in recent years following the pandemic. The gap has closed again in the return to normal formal examinations. Windermere School’s results are no exception, although the gap is not vast. In Year 11, the mean average grades for both boys and girls were very similar; 6.1 for boys, versus 6.4 for girls. There were two boys who, not unexpectedly, gained no GCSEs at all despite being entered. These boys’ parents were fully aware of expectations, but their results have negatively skewed the results for the boys. In terms of overall Year 11 pass rate, 87% of boys achieved a grade 4-9 compared with 95% of girls. In Year 10, the gap is much greater; there was a 60% pass rate for boys compared with an 88% for girls. There are several disillusioned boys who we are working more closely with in Year 11 to ensure greater success next year. Interventions plans are in place and these students are being closely monitored.
Sixth Form
Many of the May 2024 Sixth Form cohort chose to remain within the safety of Windermere School for the Sixth Form pathway due to its pastoral support. Circumstances have been challenging for the students including trauma and COVID in recent years. They achieved mixed results and although some are disappointing, consideration must be given to the context of the year group. We have a pass rate of 75% for the International Baccalaureate Diploma Programme (IBDP) and 100% for the International Baccalaureate Careers Programme (IBCP). The students who did not pass the Diploma were anticipated. In 2024, twelve candidates studied BTEC Business as part of the IB Career-related programme. Eight out of nine students achieved at least a DD (89%). The students have achieved an UCAS Tariff average of 98 points. This is our second-best result within this pathway. The Trust’s IBDP mean score for 2024 is 31.5 and remains in line with last year’s results and above the world average. It equates to the median score across the 16 years of the Trust’s IB examinations, with a range from 31 (2009) – 36.4 (2021). In 2024 the World mean score was 30. Eight IBDP students (30%) achieved the Bilingual Diploma. The Trust saw an improvement on last year, in results at the top end, with twelve students (43%) gained 34 or more points in the IB Diploma. Four candidates have achieved 40 plus DP points and have earned a place on our honours board. 40 points is the equivalent of 4 grade A* at A Level and 45 points is the equivalent of 5 grade A* at A Level. Our average Core points of 1.8 has increased and out of a possible 3 Core points available, eight students achieved full points and 64% achieved 2 or more Core points.
University Update
Twenty-eight candidates applied through UCAS this year and all secured a place at university, with 64% securing their first choices and 25% securing their insurance choice straightaway.
Students have successfully secured first choice places at Russell Group Universities:
Edinburgh University to read Engineering and another to read Veterinary Medicine
Leeds University to read Mechanical Engineering
York University to read Philosophy, Politics and Economics
University College London to read Chemistry
Exeter University to read Politics
Leeds University to read Geography.
The Russell Group is a self-selected association and therefore does not represent all respected and established universities. Other students who have successfully secured first choice places are:
Lancaster University to read Environmental Science (Placement Year) as well as an Apprenticeship at Airbus UK, and another to read Psychology and Management
UCFB to study Stadium & Events Management
University of Reading to read Psychology with International Foundation Year, and another to read Business and Management
SOAS University of London to read Languages and Culture and International Relations
University of St Andrews to read Theological Studies, and another to read Computer Science and Maths
King's College London, University of London to read Business Management
Edinburgh Napier University to read Civil Engineering.
Co-curricular Activities
The Adventure programme is a major part of the curricular and Co-curricular programme at Windermere School.
All students from Year 3 to Year 6 undertake ½ days of Outdoor Education every other week. Students in Year 10/11 choose between Adventure and Service, both being compulsory during the year, but a preference is possible. In the Sixth Form, students can use the CAS afternoon for outdoor activities.
There are residential trips for students in years 3 to 8. Students visit the Lake District, Yorkshire and North Wales. Year 12 students have a residential at the beginning of the year.
In years 3 to 9, students have an Adventure logbook that comprises six levels, each developing skills in water—and land-based activities. These include sailing, kayaking, canoeing, windsurfing, rock climbing, mountain walking and navigation, orienteering, caving, and mountain biking. Students also learn about bushcraft and first aid.
After-school activities include sailing, rock climbing and windsurfing. Sailing is a major part of the co-curricular programme with students from all years competing in local, regional, national and world competitions. Several students also compete in inter-school climbing competitions.
Students from Year 9 and up can take part in the Duke of Edinburgh scheme, in the past year we have had students complete all elements of the scheme, Bronze, Silver and Gold.
Pupils again were able to enjoy Inter House competitions in hockey, netball, football, basketball, cricket, rounders and at the Infant & Junior School, Tag Rugby, as well as getting back to the athletics track for a full sports day to end the year.
In Sailing, the race team continued to achieve fantastic results throughout the year with many achievements at the Regional and National Feva Championships and also the Feva World Championships in Weymouth where pupils competed against an international field.
In Adventure, Infant & Junior pupils had weekly lessons where they learned to navigate, climb, sail, canoe, kayak, bike safely and administer first aid. A number of residential trips were undertaken for Years 3 to 6, including wild camps and challenge activities. Early Years and Key Stage 1 pupils held their ‘day camp’ within the school grounds. The Infant & Junior School have hosted primary schools from around the county for Inter-Schools Cross Country with over 500 children competing. Inter House competitions take place annually, including an art competition, climbing wall competition, spelling bee and numerous sporting events.
Browhead students had a full programme of Adventure including climbing (indoors and out), ghyll scrambling, sailing, windsurfing, mountain biking, caving, kayaking, canoeing, dealing with incidents, orienteering and mountain navigation. Years 7, 8 and 13 undertook residential adventure trips, with adventure days for Years 10 and 11.
Besides the full programme of curricular Adventure, students are able to take part in optional after school activities to develop skills. These include paddle-sports, sailing (Elleray and Browhead), climbing, windsurfing and race sailing. Browhead students also took part in optional residential trips to North Wales climbing and Scotland winter walking and climbing. The Duke of Edinburgh Scheme continues to flourish at Windermere School with students completing Bronze/Silver expeditions. The Year 6 pupils work towards the John Muir Award.
This year we have had a number of optional residential trips. These included:
Scottish winter mountaineering and climbing
Round Square Adventure Race
Scottish Islands Yacht Race
Spanish rock climbing trip
FUTURE PLANS
The core elements of the Trust’s Development Plan are:
• To continue to ensure the campuses offer a safe and attractive environment for pupils, staff and visitors;
• To provide a happy and secure pastoral environment, suitable for both day and boarding pupils, in which all pupils are offered opportunities for leadership and service to others;
• To provide a stimulating learning environment in which pupils can develop their academic potential to the full;
• To offer all pupils the opportunities of experiencing a broad range of intellectual, cultural, sporting and wider-community activities;
• To increase the capability of the Trust to offer education to children whose parents are unable to afford full fees;
• To provide an enjoyable and appropriately challenging environment within which members of staff may develop their careers;
• To ensure that the Trust plays a significant part in the life of the local community, sharing facilities and seeking local partnerships wherever possible.
As set out in note 1.2 of the financial statements, the Trust is in the process of disposing of a property asset and obtaining new sources of finance in order to repay its current bank overdraft facility. Whilst this creates an uncertainty regarding going concern, the Governors have a reasonable expectation that the Trust will be able to meet its repayment obligations.
FINANCIAL REVIEW
Results for the year
Net fee income for the year fell by 10% to £5,384k (2023: £5,965k) materially impacted by a reduction in boarding pupils. Excluding property sales, total income was down by 5.6%, to £6,399k (2023: £6,777k), this was largely attributable to a reduction in pupil numbers but improved summer school numbers.
Costs reduced slightly to £6,753k (2023: £6,944k), mainly due to the delivery of a cost management programme which saw a reduction in staffing costs. The cost savings were however, insufficient to offset the lower fee income resulting in net loss for the year of £274k, including £80k arising on the disposal of a fixed asset (2023: £846k profit - including £1,013k arising from the profit on the disposal of a fixed asset)
Reserves Policy
The Trust’s free reserves at the year-end amounted to £1,612k (2023: £1,282k) representing retained unrestricted income reserves. The Trust has adopted a policy of maintaining free reserves at a level to provide reasonable cover for operating costs with any surplus to be re-invested into improvement of the estates and school facilities.
Fixed Assets
Tangible fixed assets are held by the Trust for use by the School although there are some properties that could be divested should the need arise. Note 1.6 describes the Trust’s accounting policy in relation to fixed assets.
The Governors, who served during the year and up to the date of signature of the financial statements were:
The auditor, JS. Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
The Governors' report was approved by the Board of Governors.
The Governors, who are also the directors of Windermere Educational Trust Limited for the purpose of company law, are responsible for preparing the Governors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Governors to prepare financial statements for each financial 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 Governors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in operation.
The Governors 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 Windermere 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 the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and 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.
Material uncertainty related to going concern
We draw attention to note 1.2 in the financial statements, which states that as at 31 August 2024 the company had current liabilities of £2,393,613.
As stated in note 1.2, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern.
Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Our responsibilities and the responsibilities of the directors 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 Governors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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 Governors' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
the directors' report included within the Governors' report has 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 directors' report included within the Governors' 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 Governors' responsibilities, the Governors, 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 Governors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Governors are responsible for assessing the 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 Governors 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.
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.
Based on our understanding of the charitable company and sector, we identified that the principal risks of non-compliance with laws and regulations related to, but were not limited to, the Companies Act 2006, the Charities Act 2011, employment, pension, safeguarding and health and safety legislation and regulation through the Charity Commission for England and Wales and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities’ Statement of Recommended Practice.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgements and the risk of fraudulent revenue recognition.
Our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
enquiring of management about actual and potential litigation and claims, their policies and procedures to prevent and detect fraud as well as whether they have knowledge of any actual, suspected or alleged fraud;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
reading minutes of meetings of those charged with governance and reviewing regulatory correspondence with the Charity Commission;
obtaining an understanding of provisions; and
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries, assessing whether the accounting estimates, judgements and decisions made by management are indicative of a potential bias, and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://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.
designated
Investments
Raising funds
The statement of financial activities included all gains and losses recognised in the year.
All income and expenditure derived from continuing activities.
Net income/(expenditure) before depreciation for the year totalled (£175,865) (2023: £953,877).
designated
Investments
Raising funds
The statement of financial activities included all gains and losses recognised in the year.
All income and expenditure derived from continuing activities.
Windermere Educational Trust Limited is a private company limited by guarantee incorporated in England and Wales and a registered charity in England and Wales. The registered office is Browhead, Windermere, Cumbria, LA23 1NW.
The financial statements have been prepared in accordance with the Trust's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (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 freehold properties. The principal accounting policies adopted are set out below.
At the balance sheet date, the company had net current liabilities amounting to £2,393,613 (2023: £2,745,568). The Governors have considered the appropriateness of preparing the financial statements on a going concern basis. As at the date of approving these financial statements the company is reliant on the successful completion of an asset sale in order to repay a bank overdraft facility, which is due for settlement by 30 September 2025. The Governors also have a conditional offer for alternative finance which could expedite the repayment of the bank overdraft facility.
While the Governors acknowledge that this represents a material uncertainty, which may cast doubt on the company's ability to continue as a going concern, they have a reasonable expectation that either the asset sale or the refinancing will be completed within the required timeframe and will be sufficient to meet the repayment obligation.
Based on this assessment and after reviewing the future cashflows, the Governors believe that the company will have adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis.
Unrestricted funds are available for use at the discretion of the Governors in furtherance of their charitable objectives.
Designated funds comprise funds which have been set aside at the discretion of the Governors 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.
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.
Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying the goods and services in order to raise funds and is recognised when entitlement has occurred.
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:
Costs of raising funds includes all costs associated with raising funds for its charitable purposes and includes all costs associated with non-charitable trading;
Expenditure on charitable activities includes costs associated with UK educational operations; and
Other expenditure represents those items not falling into the categories above.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
No provision for depreciation of school buildings is made as the trust considers that the estimated useful life of the buildings is so long and the residual value so high that any depreciation charged is not material, either each year or cumulatively over the useful economic life of the asset.
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 net income/(expenditure) for the year.
Properties whose fair value can be measured reliably are held under the revaluation model and carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.
Revaluation gains and losses are recognised in other recognised gains and losses and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in net income/(expenditure) or a revaluation loss exceeds the accumulated revaluation gains recognised in equity: such gains and loss are recognised in net income/(expenditure) for the year.
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).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
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.
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.
Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Trust transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
The charitable company is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
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.
Pension benefits
Retirement benefits to employees of the charitable company are provided by the Teachers’ Pension Scheme (‘TPS’) and The Pension Trust Growth Plan. These are defined benefit schemes and the assets are held separately from those of the charitable company.
The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the charitable company in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a prospective unit method. The TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions are recognised in the period to which they relate.
For The Pension Trust Growth Plan, the contributions are determined by a qualified actuary on the basis of financial valuations using a projected unit method. The Pension Trust Growth Plan is a multi-employer scheme and there is insufficient information available to unlock detailed benefit accounts. The plan is therefore treated as a defined contribution scheme for accounting purposes and contributions are recognised in the period to which they relate.
In the application of the Trust’s accounting policies, the Governors 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.
The trustees have considered the residual value and remaining useful economic life of the land and buildings and consider that the assumptions in arriving at these values are reasonable, as well as the methodology for calculating the property valuations.
Depreciation policies have also been considered again this year and are deemed reasonable.
The assumptions regarding the treatment of the Trust's pension schemes within the financial statements have also been considered again this year, with no adjustment to their treatment considered necessary.
The Governors have exercised their judgement in considering whether the use of the going concern basis is appropriate. In doing so, they have reviewed the expected timing of the property asset sale and of new sources of finance being obtained and, having considered the current position, have a reasonable expectation that these will be completed by the end of September 2025.
Net fees
Gains relate to the disposal of properties held within tangible fixed assets. As set out in note 23, revaluation gains are initially included within designated unrestricted funds and are recognised in general unrestricted funds when the property is sold.
Raising funds
Academic costs
Welfare costs
Property costs
Management and administration costs
Other expenses
Marketing costs
Governance costs
The analysis of auditor's remuneration is as follows:
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The freehold land and buildings have been valued by the Trust on a depreciated replacement cost basis on 31 August 2024.
At 31 August 2024, had the revalued assets been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying amount would have been approximately £4,796,316 (2023: £4,796,316).
Included within freehold land and buildings is an amount of £1,711,612 (2023: £1,711,612) attributable to land, which is not depreciated.
Three bank loans are repayable over ten and fifteen years. The loans are subject to an interest rate that is equal to the Bank of England base rate +2%. They are secured upon certain freehold land and buildings held by the School and a fixed and floating charge over other assets.
A Coronavirus Business Interruption Loan was received in the 2021 financial year, which was repaid in full during the year. This loan was subject to no interest in year 1, 8.3% in year 2, and 8% in year 3. The loan was secured upon certain freehold land and buildings held by the School.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
The Hardship Fund was set up to help parents affected due to Covid-19.
These are unrestricted funds which are material to the Trust's activities.
When the company's properties are revalued the difference between carrying value and cost is included within designated unrestricted funds. When a property is sold, the unrealised gain is deducted from designated unrestricted funds and recognised within general unrestricted funds.
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 remuneration of key management personnel was as follows:
A number of Governors have children who attend the school. The fees paid by those Governors are on the same terms and conditions as are charged to any other parent who does not work at the school.
A Governor of the school had a balance at the year end with the school under the fees in advance scheme amounting to £Nil (2023: £20,577). Discounts have been given from this scheme for the year totalling £302 (2023: £273).
A Governor of the school had children who attended the school and were in receipt of a bursary. In the duration of office of the Governor those children received bursaries amounting to £27,585 (2023: £25,799) in line with bursary awards to other children.
The charity has no share capital being a company limited by guarantee. Each member is required to contribute an amount not exceeding £1 per member in the event of a winding up situation.
During the year, the School participated in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff and The Pensions Trust's Growth Plan for non teaching staff. The total pension charge for the year was £542,704 (2023: £564,956).
As from 1 September 2024, the school have changed the basis on which they contribute to the TPS and they gave the teaching staff the option of remaining in the scheme, under the new contribution basis, or moving to a defined contribution scheme.
Prior to 31 August 2024, the School contributed 28.68% of a members' pensionable salary to the TPS, with the member contributing between 7.4% and 11.75%. Under the new agreement, the School will contribute 19% of a members' pensionable salary with the member contributing the difference between this figure and the 28.68%. This is in addition to their existing members' contributions.
Valuation of the Teachers' Pension Scheme
The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to ensure scheme costs are recognised and managed appropriately and the review specifies the level of future contributions.
Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department for Education on 27 October 2023, with the SCAPE rate, set by HMT, applying a notional investment return based on 1.7% above the rate of CPI. The key elements of the valuation outcomes are :
Employer contributions rates set at 28.68% of pensionable pay (including a 0.08% administration levy). This is an increase of 5% in employer contributions and the cost control is such that no change in member benefits is needed. As noted above, the School has now restricted the level of its contributions to 19%.
Total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £262,000 million and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £222,200 million, giving a notional past service deficit of £39,800 million.
The result of this valuation was implemented from 1 April 2024. The next valuation result is due to be implemented from 1 April 2028.
A copy of the valuation report and supporting documentation is on the Teachers' Pension website.
Under the definitions of FRS102, the TPS is an unfunded multi-employer pension scheme. The trust has accounted for its contributions to the scheme as if it were a defined contribution scheme.