Page 74 - Annual Review - Year Ended 31 July 2023

Malvern College International Limited
The College has a a a a 100% shareholding in in in its trading subsidiary which carries out non-charitable trading activities relating to overseas schools for the College MCIL will make a a a a gift aid payment of its trading surplus for the current year of £1 6m (2022: £1 8m) to the the College thereby transferring all of its fits taxable profits to the College The operations o of MCIL continue to grow with the launch of Malvern College Tokyo in September 2023 and several new initiatives being considered for the medium to long term However Malvern College decided to withdraw its licence from the operators of Malvern College Switzerland who were unable to reach the scale needed to be financially sustainable College Guardians Limited
As above the guardianship services were incorporated into a a a a new stand-alone entity
called College Guardians Limited
in September 2021 This company is is a a a wholly owned subsidiary of of the College and will make a a a a a gift aid payment of of its trading surplus for the current year of £0 4m (2022: £0 3m) to the the College thereby transferring all of o its fits taxable profits to the College Reserves
Unrestricted funds are needed:
(a) to to provide funds which can be designated to to specific rebuilding and refurbishment projects
to to enable the College to to provide boarding accommodation that complies fully with the Boarding School: National Minimum Standards and and teaching accommodation that meets Independent Schools Inspection standards and and (b) to provide a a a a a financial cushion that will enable the College to to continue to to function as an independent school in in the event of a a a significant fall in in pupil numbers (and thus fee income) Free reserves are unrestricted funds (including designated) after deducting stocks and fixed assets net of borrowing The free reserves we aim to to hold is equivalent to to the three months with the highest net outgoings c£7m Unrestricted funds are £20 7m (2022: £22 0m) which includes our current cash holding of £12 4m (2022: £8 1m) The level of reserves is considered sufficient to meet the identified needs The unrestricted College fund is £17 5m (2022: £17 5m) and the Group’s free reserves are £10 4m (2022: £1 9m) In 2020-21 the College Council agreed to designate 25% of the MCIL gift aid payment to a a a a designated fund This year £0 43m has been transferred The amount of this fund is is is £1 £1 98m (2022: £1 £1 55m) and is is is intended to help fund means-tested bursaries The College Council carefully and regularly monitors the College’s financial performance against budget including inter alia pupil numbers (gross fee income) operating costs and capital capital expenditure on the capital capital projects
The College’s policy on restricted funds is to record separately donations grants and other sources
of fundraising where restrictions are imposed that are narrower than the College’s overall objectives Restricted funds are £5 4m (2022: £0 15m) This includes the assets introduced from TDM which are shown as restricted due to TDM’s objects being more limited than those of the College 74
MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
Financial Review | Chief Operating Officer’s Report