Srw CRANLEIGH EX CULTU ROBUR CRANLEIGH SCHOOL A COMPANY LIMITED BY GUARANTEE REGISTERED NUMBER 3595824 CHARITY NUMBER 1070856 ANNUAL REPORT AND ACCOUNTS 31 July 2023 CRANLEIGH SCHOOL ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 CONTENTS: PAGE Governors, Officers and Advisors Annual Report of the Govemors Strategic Report Statement of Accounting and Reporting Responsibilit16S 16 Independent Auditorfs Report 17 Consolidated Statement of Financial Activities 20 Consolidated and School Balance Sheets 21 Consolidated Cashflow Statement 22 Notes to the Financial Statements 24 CRANLEIGH SCHOOL CRANLEIGH SCHOOL ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 GOVERNORS, OFFICERS AND ADVISORS GOVERNORS, DIRECTORS AND CHARITY TRUSTEES The members of the Governing Body of Cranlelgh School are the charity trustees of Cranleigh School and the Directors of Cranleigh School I'lhe Charity'l. The members of the Governing Body are". 12) 131 141 151 16) 171 A J Lajtha. MA. FCI8 Ichaimianl Mrs S E Bayliss, MA Colonel J Boyd" OBE. MA J A Brown MA (Oxonl Dr R Chesser MA. MB, 8Chir, MRCP F N Farrant. BA M M S Fisher MA (Deputy Chairl P S P Going BSC. MRICS S Gunapala BEng, MEng, FCA K J S Kerr BA (Honsl MCIPD D Khurshid MA, KC J A M Knight BA (Honsl (Retl￿d 31 December 20221 A J Lye BA (Retired 31 December 2022) J P Maskery. MEng C H Sever5 LLB (Honsl E Stanton Bsc, ACA J J D C Tate RIBA. FRSA P M Wells 8Ed {Honsl D G Westcott BA, BCL. KC S J Whilehouse BA Icanlabl Professor R J Wilkin5 MA, DPhil D A E wiifiatrs BA, FCA M J Williamson (1) {21 131 14} 15) {61 171 strategy and Risk Committee Education Committee Buildings and Estate Committee Finance Committee Risk Management Group Cranleigh International Committee Nominations Committee Parent of a pupil or pupils at Ihe School CRANLEIGH SCHOOL Mrs Fisher and Mr Whitehouse are members of the management board of Cranleigh Abu Dhabi. Mr Williams is a Trustee of Cranleigh School Pension Scheme. The Board is a self-appointing body. The normal term of office for governors is five years with two lurther terms of three years each if elected by the majority of Governors lo continue in Ott￿e. Cranleigh Preparatory {Prepl School has the same Governing Body as Cranleigh Schcx)l. EXEcufivE OFFICERS.. Headmasters - Cranleigh School Cranleigh Prep School Director of Operations D1￿ctOr of Finan Clerk to the Governing Body M S Reader MA, MPhil. MBA, QTS N R Brooks BA. QTS PADunnBA J A Underdown BA (Honsl ACMA P T Roberts MBE, DChA Principal address Cranleigh School and Registered Office Horseshoe Lane Cranleigh Surrey GU6 8QQ w.cranlei Cranlelgh Prep School Horseshoe Lane Cranleigh Surrey GU6 8QH Websites wNvw.cranlei re school.or ADVISORS: Bankers.. Handelsbanken Andrews House College Road Guildford GUI 4RG Solicitors". Veale Wasbrough Vizards Narrow Quay House Narrow Quay Bristol BS14QA Auditors.. Crowe U.K. LLP S5 Ludgale Hill London EC4M 7JW Investment Advisors.. Brewn Dolphin Limited 12 Smithfield Street London ECIA 9BD CRANLEIGH SCHOOL ANNUAL REPORT OF THE CRANLEIGH SCHOOL GOVERNORS FOR THE YEAR ENDED 31 JULY 2023 The Cranleigh School Governing Body presents the annual report for the year ended 31 July 2023 ursder the Charitie5 Act 2011 and the Companies Act 2006, together with the audited financial statements for the year, and confirms that the latter comply with the requirements of the Acts, the Articles of Association and the Charities SORP 2015 In accordan￿ wth FRS 102 las updated}. DIRECTORS, REPORT CONSTITUTION AND OBJECTS The Charity was founded in 1865 and is registered with the Charity Commission under charity number 1070856. Cranleigh School is a company limited by guarantee, registered number 3595824. Cranleigh School is governed by Articles of Association introduced in 2010 lo incorporate changes in legislation in the Companies Act 2006. These Articles replaced the previous Memorandum and Articles of Association dating from 2000. Cranleigh School's object and principal activity, as a charity and as set out in the Articles of Association, 15 the advancement of education by providing a boarding andlor day school or schools for boys andlor girls In accordance with the principles of the Church of England. The Charity 1$ structured with a single governing body for two schools known as Cranleigh School and Cranleigh PreparaloTy (Prep) School. The Charity. in furtheran￿ of its object, establishes and administers bursaries, grants, awards and other benefactors, and acts as the trustee and manager of property, endowments, bequests and gifts given or established in pursuance of the Charity's objects. The Trustees are mindful of the long-standing need lo provide publ￿ benefit and of the requirements of the Charities Act 2011 and have had regard lo Charity Commission guidan￿ on public benefit. The Charity's governance complies with the Code for the Voluntary and Community Sector, endorsed by the Charity Commission and other best-practice guidelines published by the Charity Commission. Further details of the Charity's activities are set out below in the strategic report section of this annual report. GOVERNANCE AND MAAIAGEMENT Governing Body There is one Governing Body for the two schools. The members of the Goveming Body and executive officers of the School, together with the principal advisors are listed on pages 1 and 2. Recruitment and Training of Govemors The Charity's elected members of the Governing Body are appointed at meetings of the Cranleigh School Governing Body on the basis of recommendations from the Nominations Committee. The Nominations Committee 5crulinises candidates on behalf of the Governing Body. Trustees and executive officers of the School put forward candidates to the Nominations Committee based on a candidate's professional qualities, experien￿, personal competences and local availability. The Governing Body is mindful of the benefits of diversity in the widest sense and as noted in Principle 6 of Charity Commission guidance. New members of the Governing Body are inducted into the workings of the Charity and ils schools, including Governing Body policy and procedures, at briefings organised for them by the Headmasters and Director of Operations and Director of Finance. The new members also attend specialist external courses on the roles and responsibilities of charity trustees. Members of the Goveming Body attend external trustee training and information courses in order to ensure that the Governing Body is kept informed of current issues and ￿gU￿atIonS in the education and charity sectors. Governors may attend days at the School shadowng pupils or vis11ing support departments. CRANLEIGH SCHOOL Oryanisational Management The members of the Cranleigh School Governing Body, as trustees of the Charity, are legally responsible for the overall management and control of both Cranleigh School and Cranleigh Prep School. The Governing Body takes note of guidance provided by the Charity Commission and specifically the principles sel out in the Govemance Code published in Juty 2017. Overall. the Charity meets a very significant proportion of the recommended and best practice for governance that is contained within the Governance Code across the seven prin¢iple$ and is comft)rtable there are no significant areas of review required. Arrangements will continue to be Monitored against the best practice principles contained within the Code. The Chairman of the Governing Body is Mr A J Lajtha and the Deputy Chair is Mrs M M S Fisher. The full Board meets each term, and so three limes a year, and the work of implementing its policies is carried out by six sub-committees.. The Strategy and Risk Committee considers proposals for development of the School and advises senior management of the strengths and weaknesses of strategic options. A biennial strategy day is held for members of the Governing Body and senior eXeC￿1ve$ lo review performance and consider future development. The last strategy day was in June 2023. The Strategy and Risk Committee is chaired Mr D G Weslcott. The Education Committee considers educational and pastoral policy. Mis S E Bayliss has special responsibility for Safeguarding and Mrs A J Lye had special responsibility for Special Educational Needs and Disabilities ISENDI until she retired in December 2022 when Mrs Farranl took on this responsibility. The Education Committee is chaired by Mrs M M S Fisher. The Buildings and Eslale Committee supervises and monitors capital building projects and maintenance of the fabric of the School and its estate, The Committee has delegated responsibility for Health and Safely and produces a report each term on Health and Safety matters for the Governing Body. Mrs M J Williamson has oversight of boarding on behalf of the Governing Body. including both the provision of facilities and pastoral support Ilhe latter is a responsibility of the Education Committee). The Buildings and Eslale Committee is chaired by Mr P S P Going. Cranleigh International Committee was established in 2020 (under the name Oversea5 Committee) to monitor performance and risks of the School's international schools specifically Cranleigh Abu Dhabi and CTanleigh China. Cranleigh International Committee is chaired by Mr S J Whitehouse. The Risk Management Group {RMGI monitors risks facing the School. This Committee presides over an annual risk management process that culminates with the production of a risk report in the aulumn each year. Each sub-committee is responsible for considering the risks in its area of governance and each has appointed a mernber to lake the lead in risk management. The RMG was chaired by Mr J A M Knight until his retirement in December 2022 and il is now chaired by Colonel Boyd. The Finance Committee scruts'nises revenue, the budget and capital expenditure. This Committee also supervises and finalises the audited financial slalemenls and annual report for approval by the Govefning Body. The Finance Committee is chaired by Mrs E Stanton. The day-to-day running of the School is delegated lo the respective Headmasters, supported by their Senior Management Teams. The Headmasters and representative members of senior management attend meetings of the Goveming Body sub-commrttees and together these groups are the key management personnel. Remuneration is determined by the Goveming Body which is ¢onscious of the contribution of all staff to the School's Suc￿sS and, as such, it is right that remuneration of staff is the highest single cost incurred by the Charity_ The Governing Body makes referen￿ to comparisons of staff costs at other schools which are prOdU￿d in variou5 benchmark surveys that are anonymous and compliant with competition law. The remuneration policy balances fair wages and a generous pension heme for lower paid staff with the provision of incentives for senior managers who take the burden ol responsibility for the School's complex operations, The School complies with the UK'S Equality Act CRANLEIGH SCHOOL 2010 Regulations. These require that companies with more than 250 employees publish information on the gender pay gap annually. The 2022 report is available on the School's website. Group Structure and Relatlonshlps Cranleigh Foundation was sel up in 2007 as a separate charity limited by guarantee with a registered charity number of 1122918 and a company number of 06452540. Cranleigh Foundation's statutory financial stslements are consolidated with the School's within this Annual Report and Financial Statements. Cranleigh Foundation is governed by a Memorandum of Association and Articles of Association produced in 2008. The Chairman is a former governor, Mr M J Meyer and one member of the Governing Body. Mr A J Lajtha is also a Foundation Trustee. The Headmasters, Director of Finance and Clerk to the Governing Body attend Foundation Trustee meetings. Cranleigh School has wholly owned non-charitsble subsidiaries. Cranleigh Enterprises Limited ICELI is a trading company that arranges the letting of facilities when not in use by the School and it has a rel8il outlet within the School for the sale of items such as school uniform and sports equipment. CEL profit is donated under gift aid to the School. There are more details conceming CEL at Note 3 to the financial statements. The accounts of CEL are consolidated into the Cranleigh School accounts. Cranleigh Education Services Limited ICESLI was incorporated in September 2012. The Company has five directors who are members or former members of the Governing Body or executive officers of Cranleigh School. The Company's purpose is to facilitate the establishment of international schools and then monitor the opemtion of international schools once open. The Company was responsible for planning Cranleigh Abu Dhabi, working closely with joint venture partners and the firm contracted to run the School. Cranleigh Abu Dhabi opened in September 2014 with 637 pupils from FS 1 to Year 9. The School now has 1,965 pupils and has oxpansion plans to increase the number to around 2,200 pupils with a new off-site purpose-built Pre-P￿p building currently under construction and lo be opened in January 2024. The School's public exam results were strong in the context of global readjustments post-pandemic with 72% of pupils achieving GCSE grades 7-9 and al A Level 90% achieved grades A"_C. Cranleigh China opened its first school in Changsha in September 2020. There are 116 pupils in the international high school section as of September 2023. Outstanding A-level exam results were recorded in 2023 with 73Yo of students recording A" grades. IGCSE results were also strong with 820/0 of students in the A. lo C ranking (Cambridge International use grades not numbers). A second Cranleigh China school opened in Wuhan in September 2022 with over 400 students on roll and Cranleigh opened ils third school in China with Cogdel Education in the city of Chengdu in September 2023. Stakeholder Engagement, Employmgnt and Sustalnablllty Policy The Trustees confimi that in accordance with Section 172 111 of the Companps Act and Charity Cornmission guidance they govern in order lo achieve the objects of the Charity. The long-term financial and operational suslainabilily of the School is considered by Trustees as set out in the Going Concern section of this report. Trustees assess financlal projections and key risks that could impact the sustainability and Teputation ol the School. Assessments are made with the assistance of the executive and by reviewing management information. budgets, capitsl expenditure plans, cash flow forecasts and progress against financial projections each school term. Overarching the assessments of financlal sustainability is a comprehensive Tisk management process that guides the executive and Trustees towards areas of risk and specifully the impact and likelihood of risks together with mitigation strategies. The risk process and current assessments are explained in more detail later in this report. Cranleigh School is an equal opportunities employer. The School has a comprehensive Ethnicity. Diversity and Inclusion IEDII policy and full and fair consideration is made of job applications from disabled persons and consideration of their training and employment needs is made a5 necessary. The School complies with modern slavery regulations. Consultation with employees, or Iheir CRANLEIGH SCHOOL representatives, has continued at all levels with the aim of taking the views of employees into account when decisions are made that are likely lo affect their interes15. Employees are aware of the financial and economic performance of the School. Communication with employees continues thTough normal management channels in a variety of forms and through exceptional channels lo apprise stsff of current issues. Examples of consultstion are briefings to leaching staff at the start of each term by the respective Heads lo outline development options and seek the views of staff and engagement with staff regarding terms and conditions of employment through the common rooni salaries committee which meet with the Heads and Director of Finance together, once annually with the Chairman of the Governing BcKly and Chair of the Finance Committee of the Governing Body. An equivalent for support staff is arranged by the Director of Operations and D1￿clOr of Finance who gives regular staff updates and briefings to staff. The Governing Body held a strategy day in June 2023 to consider future plans. The emphasis of the day was an analysis of political scenarios and their potential mitigation. There was also consideration of future models for education to ensure that the School remains ￿leVant. It was announced in April 2023 that the Head of the Senior School, Mr Martin Reader. would retire in July 2024. The Governing Body conducted a thorough recruiting process between April- June 2023 to select his successor. The Governing Body made an announcement in late June that following a strong candidate list Mrs Samantha Price, the Current Head of Benend8n School in Kent, will be th8 next Head of Cranleigh School. The School is delighted with her appoinlmenl. In September 2023 it was announced that the Head of Cranleigh Prep School, Mr Neil Brooks. will retire in De￿rnber 2024. The process lo select his successor is currently taking place. The School is committed to engagement with stakeholders. The main groups are pupils, parents, alumni, employees and contractors. Thefft is significant communication using a full range of media with pupils and their parents or guardians. This is routine and exiensive with the aim of ensuring a smooth passage for the eleven years of a pupil's education al Cranleigh. The alumni organisation. The Old Cranleighan Society IOCS), is based at the School and works on behalf of all alumni including those from Cranleigh's international schools. There is extensive engagement with the functional sub groups of the OCS and assistance is given with the organisation of events. The procurement of goods and services by the School is undertaken to achieve a secure supply of high quality provisions and material with fair and timely payment. Local and smaller companies are favoured wherever possible and there are arrangements with a variety of sole traders in the local area. The School is conscious of its position as the largest employer in the area and aims lo support local business wherever possible. Payment terms are thirty days bul sole traders are able to requests earlier payment which is arranged on a case-by-case basis. The School is committed to improvin9 environmental sustainability. There is a pupil led environmental committee which lirsl developed strategy in 2019 and is now laking this forward. Their work has greater focus with the increase In fuel costs resulting from the invasion of Ukraine by Russia. The School recycles food waste for anaerobic digestion lo generate energy from the waste. The School complies with environmentsl regulation and specifically is currently undergoing the latest iteration of ils ESOS responsibilities which will see an updated report produced at the end of this calendar year. This is a matter close lo the front of the minds of pupils who have led a number of initiatives during the year. There is a commitment to improve energy efficiency. The total energy consumption figures for the year were.. Natural gas consumpts'on-. 7,964,011 kwh, +18.44% year-on-year Electricity consumption.. 2,197,744 kwh, +1.93Yo year-on-year Natural gas carbon intensity.. 44.15 IC02e per £m revenue, +14.94QA year-on-year Electricity carbon intens'rty." 13.39 IC02e per £m revenue, -1_070/0 year-on-year CRANLEIGH SCHOOL The School is acb've in monitoring for risks of bribery, corruption, fraud and cyber-attack. The rlsk process is comprehensive and overseen by the Governing Body Risk Management Group. A more detailed explanation of the risk prO￿5S is given later in this report. The School maintains a register of those executives and trustees in positions of Significant Control. Conflicts of interest are reviewed formally each year and attendees are required to declare any change of conflict sta￿$ al each sub committee 2nd main board meeting of the Governing Body. AIMS AND OBJECTIVES Mission Statement The purpose of Cranleigh School is to provide, within a ChTistian environment, the necessary education and appropriate training lo enable pupils lo develop their potential as individuals, and thereby to ensure that, on leaving, they will become confident members of society and effective conlribulors to it Aims The aims of Cranleigh Schoo5, for the public benefit, are lo enable young people lo flourish in a school where busy pupils lead fulfilled lives now while developing the personal skills and qualities that will enhance their adult lives. Cranleigh aims to provide young people with the strength to succeed.. the wisdom lo make informed ¢hoices', resilience in the face of failure or difficulty,. and the insight to recognise their privilege and lo shape the future culture of the world through lives of service and leadership. With these skills. and in the context and heritage of their culture, Cranleigh pupils are encouraged to explore and ask central questions about their purpose and identity. A rigorous academic curriculum 1$ reinforced by a commitment to a breadth of 2Ctivily that enhances personal development. Cranleigh is committed to being a medium-sized, Co-educational boarding and day school. large enough to provide for breadth of opportunity and small enough to sustain a friendly. cohesive community in which there is a slrtsng and active partnership be￿een parents and the School. 'Pupils first, is a guiding principle for all decision making. Arising from the School's Chflstian heritsge and cultural background, at the heart of a Cranleigh èducation are four central values of SeNice, Relationships, Leadership and Excellence. seN1￿.. All in the community are encouraged to adopt an attitude of service to each other and the wider community. Relat￿nShipS.. Strong relationships are fostered as a priority in a predominantly boarding community. Children flourish within safe, supportive environments. Leadarship.. Openness. integrty and thoroughness are characteristics of everything we do. Cranleigh aspires to lead thinking and practice in holistic, boarding education. Cranleighans will be equipped with the knowledge and skills to shape future culture. Excellence- Cranleigh will strive for excellence in everything il does and aspires lo be recognised both for its educational vision and for the personal qualities of Cranleighans. Primary objectives In order to achieve Ils aims the School has devebped primary objectives which are.. to provide a stimulating learning environment in which pupils are encouraged to pursue and stretch their academic polenlial. to provide a happy and secure pastoral environment in which pupils can learn to live together and thus foster a sense of community, co-education, respect for one another and good citizenship,. the pursuit of best practi￿ in safeguarding young people will always be a priority., to provide pupils with the opportunity to take advantage of a breadth of co1- £ 80,000 £ 80,001 - £ 90,000 £ 90,001- £100,000 £ 100,001- £110,000 £ 110,001 £120,000 £ 120,001 £130,000 £ 130,001 - £140,000 £ 140.001 - £150,000 £ 150,001 - £160.000 £ 160,001 - £170.000 £ 170,001 - £180.(x)o £ 180,001 - £190.000 £ 190.001- £200,000 29 10 23 49 37 The number with retiremant b8nèfitS accruing in Defined Contribution schernes was 47 of which the contributions amounted to £759,000 £571,000 The average numbe¥ of the School's employees durlng the year calculatad on 8 full time equivaknt basis was 348 12022.. 3421. The average headcounl for the year was 421 {2022 .' 4121 2023 £'ooo 2022 £'ooo Teaching Welfare Premises Support Other activilitrs q69 78 33 1S 53 78 33 18 49 348 342 During the year no lerminatK)n payments were made12022.' 11. There were none outstanding al the year end. 30 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS ICOtrThINUEDI FOR THE YEAR ENDED 31 JULY 2023 11. TANGIBLE FIXED ASSETS Freehold Land & Buildings £'cKJo Assets Undèr Construction £'o Motor Vehicles £'ooo Fittings & Equipment IT Hardware £'ooo £'ooo School and Group Total £'ooo Cost lor frozen valuatlonl At 1 August 2022 Additions Transfers Disposals At 31 JU￿ 2023 Dopreclatlon At 1 Augu512022 Charge for year Disposals At 31 Juty 2023 Net book values At 31 Juty 2023 54.063 1,548 At 31 Juty 2022 54,912 1,095 The School's fixed assets total £56,631 k and Cranleigh Enterprises £33k. All tangible fixed assets are held for use on charitable activies. The freehold land and buildings, excluding separate bulldings. comprising Cranleigh School and Cran18igh Preparatory School were revalued in 1999. Buildings weie not pieviously depreciated. but with effèct from l August 2005, depreciation s calculated over 50 years for all School buildings. When building projects are still in piogress at the yèar end, depreciation 15 not calculated untll the financial year in wh￿h the asset is brought into lull use. Land is not depreciated. School School Group Group 2023 2022 2023 2022 £'ooo £,￿0 £'ooo £'ooo 72,427 1.095 1,057 16041 232 53 4,128 128 2,226 80.108 1.238 1301 2S5 3821 1528 80,818 73,031 1,S48 4,140 17,515 1,453 221 16 1301 207 3.179 166 11161 3,229 2,044 88 382 1,750 22,959 1,723 528 24154 18,968 48 911 94 182 56,664 57,149 11 SECURITIES INVESTME￿8 Group investmerEts Balance at 1 August 2022 New money invested from realised gains New money invested Reinvested Income Investment management fees IncreasellDÈue85el in value of investments Group Investrnents at 31 July 2023 Balance at 1 August 2022 Investment in Subsidiary Subsidi8ry investment in Joint Venture 3,930 4,494 7.218 6,156 1,630 39 1281 580 7,217 614 40 1241 15 3,961 198 39 1281 575 3,930 241 7,185 1,246 359 1,605 8,790 632 1.246 8,463 q98 4,159 198 4,128 School inve¥tments at 31 July 2023 Investments comprls•'. Listed investments- Equities Cash Group Investments Investment in Sub5Kliary Subsidiary investment in Joint Venture 3.946 Is 3,961 198 3,928 7,170 15 7,185 7,215 3,930 198 7.217 1,605 1,24e 198 198 1,605 1,246 4,189 4,128 8,790 8,463 In additw)n to the above investrnents. cash balances within the Fee$ in Advan￿ Scheme are incluiJed in current assets as cash deposits. The main Securities investments are managed for the Sthool by Brewin Dolphin Ltd. All Inve51rllents are managed and held in the UK. Original cost of investments held al 31 July 2023 15 £2.079m12022 .' £2.079ml The School has invested £198,001 in Cr8nSeigh Education SeNices Ltd purchasing 811100 Shares. Cranleigh EduGat*on Servtces Ltd also has a 50DA share in CR Education Ltd a Unlted Arab Emirate Joint Venture in relation to the con51tuclion, operation and management of a school in Abu Dhabi. CTanleigh Education SeTvices Ltd hold5 So sh8ies with a nominal value of Dirhams 1000 each. With the school having opened in September 2014. Cranleigh Educatfon Services Ltd now incorporates 70% of the Joint Venture profit to the 31 July. The SLJbsidiary's share of turnover for the year ended 31 July 2023 was £938k 12022.. £782kl wrth a net profft of £453k12022.. £508kl and the aggregate share ol a55ets, li8bilities and funds of the Joint Venturo is £1,599k12022.' £1,238kl. School Investmènts 31 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2023 School 2023 £'ooo School 2022 £'ooo Group 2023 £'ooo Group 2022 £'ooo 13. DEBTORS Fees Sundry debtors Prepayments Staff loans Amounts due from Cranleigh Enterprises Ltd Amounts due from Cranleigh Education Services Ltd Gift aid donations from subsidiary companies 86 374 57 287 79 37 416 374 40 287 79 1.633 2,122 837 1,299 839 574 All debtors are due wlhin one year, except lor £17k12022.. £58kl of staff loans. which are due after more than one year. The above fees are net of bad debt provision £198k (2022.- £203kl. School 2023 £'ooo School 2022 £'ooo Group 2023 £'ooo Group 2022 £'ooo 14. CREDITORS: amounts falling due within one year Bank loans (see Note 17) Fees received in advance Final term deposits Taxation, social security and pension contributions Amounts due lo Cranleigh Enterprises Ltd Overdraft Other creditors and accruals 1.438 552 2,318 772 26 1.297 366 2,105 769 1,438 552 2.318 772 1.297 366 2,105 769 2.849 7,953 995 8,948 2.504 7,041 1,015 8,056 3,183 8,261 995 9,256 2,617 7,154 1,015 8.169 Advance fees (see Note 161 School 2023 £'ooo School 2022 £'ooo Group 2023 £'ooo Group 2022 £'ooo 15. CREDITORS '. amounts falling due after one year Bank loans (see Note 171 Advance fees (see Note 161 10,124 1.525 11,649 10,893 1,005 11,698 10,124 1.525 11,649 10,693 1,005 11,698 32 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THEYEAR ENDED 31 JULY 2023 16. ADVANCE FEE PAYMENTS Parents may anter into a contract lo pay to the School up lo th8 equiv8bnt of ten years, tuition fees in advance. The amounts rerrived are treated as deferred incorne and form part of the School's wotking capital. Fees are taken to income for each term as the relevant pupils prog￿$$ through the School. A{jvan￿ payments May be returned subje¢t to specific conditions on the rece4Pt of one term's notice. 2023 £'ooo $5 1,470 995 2022 £'ooo Assuming pupils will remain in the School, advane8 faas will bè app1pd as follows '. After 5 years Within 2 to 5 years Within 1 year INote 141 1,005 1.015 2.520 2,020 The balance represents the accru6d1iability under the ¢ontracls. and the movements during tha year were.. £'cK)o £'ooo 2.020 2,070 Balance at 1 August 2022 New contracts Amounts accrued to contracts 4,134 Amounts utilised In payment of fees.. To the School To othei sehool$ Refunds 11.5801 1341 1.614 Balance at 31 July 2023 2.520 17. LOAN FINANCE Credit facilities with Hande1sbanken are currently in place. on which Inte￿$t rs payable at norrn81 commercial rates. The loan facilities are 58cured by separate First Legal Mortgages executed by the School over ￿rtain freehold properlies owned by the School. The structure is shown in the following table. rooo 2,302 1,000 869 5.28Q/4 Fixed rale amOrt￿Ing credit faolity expiring 30 March 2024 Bank of England base rate + 2.10% revolving ¢￿dit facility expiring 28 March 2025. £3rn available, £2m utilised 3.07% Fixed rate arnortizing ¢redil facility expiring 29 March 2024 4.22Uh Fixed rate amortizing credit facility expiring 26 July 2027 11.562 The facilities a￿ repaid by quarterly installrnents with the exception ol the revolwing credit which is repayable on maturity. All facilities mature as follows.. 2023 £'ooo 8,308 1,818 1,438 2022 £'ooo 9,367 1,326 1.297 After 5 years Within 2 to 5 years wrthin 1 year 11,S62 11,990 In addition there ts a revolving current accounl overdraft facility from Handelsbanken of £3m expiring on 30 September 2024. 33 CRANLEIGH SCHOOL NOTES TO ThE FINANCNL STATEMENTS IcowfiNUEDI FOR THE YEAR ENDED 31 JULY 2023 18. STATEMENT OF FUNDS Balance 1 August 2022 £'ooo Gainsl Ilossesl £'ooo Balancè Transfers 31 July 2023 £'ooo £'ooo Income £'ooo Expenditure £'ODO Foundation 3,351 397 1931 1641 3,591 Totsl reslricted hnds 3,351 397 1931 1641 3,591 Tol81 unreslricled funds 47,041 34.779 131.9451 14351 49,440 Total fvnds 50,392 35,176 132,0381 14991 53.031 The funds of the Foundation are considered to be restricted given the aims and objects are nairower than the Schotsl and as such are accounted lor as 8 restricted fvnd in the Group. 19. COMPARATIVE STATEMENT OF FUNDS alan Gainsl Ilossesl £'ooo Balance Transfers 31 July 2022 £'ooo £'ooo 1 August 2021 £'ooo Income £'ooo Expenditure £'ooo Foundation 1.984 569 1197) {51 1,￿0 3,351 Total restricted funds 1,984 569 11971 151 1,(M)O 3.351 Total unre5tiict8d funds 46,912 31,624 (29,9641 15311 11.0001 47,041 Total fund$ 48,896 32,193 130,1611 15361 50,392 Fo11owng a renegotiation of the School's international agreement with its partner in Abu Dhabi in 2020.21, the Schotsl donated £1m to the Foundation in 2021-22 frorn the funds received. 20. PENSION SCHEMES Retirement benefits lo employees of the School are provided through two defined benèfit sthemes 8nd one defined conlribution scheme, which are funded by the School's and employees, contributions. Defined benefit schemes Teachers. Pension Scheme The School participates in the Tead)ers' Pension Scheme {'the TPS'I for it5 teaching staff. The pension charge for the year indudes contributions payable to the TPS of £1,932k12022'. £1.849kl and at the year-end £221 k 12022.. £217kl W8$ accrued in Tespect ol contributions lo this scheme. Thè TPS is an unfunded rnu5t1-empl0y￿ defined benefts pension stheme governed by The Teachers. Pension5 Regulations 2010 las améndéd) and The Teachers, Pension Scheme Regulations 2014 las amended). Members contribute on a °pay as you go. basis with contributions from members and the employer bèing Credited to the Exchequef. Retirement and other pension benèfits arè pad by public funds provided by Parfiarnenl. The employer contribution ral& 18 sel by the Secretary of Slate following scheme valuations undertaken by the Goveinrnenl Acluary's Department. The most recent actuarial valuation of thè TPS was prèpared as 8t 31 March 2020 and the Valuation Report. which was published in October 2023. 34 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 JULY 2023 20. PENSION SCHEMES {continuedl Following the Mccloud judgement, the remedy proposed that when benefits become payable, eligible members can select to receive them from either the reformed or legacy schemes for the period 1 April 2015 10 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the greater benefits. and in preparing the 2020 valuation have valued the 'greater value, benefits for groups of relevant members. The valuation confirmed that the employer contribution rale for the TPS would increase from 23.6tsk to 28.69kn from 1 April 2024. Employers are also required to pay a scheme adminislralion levy of 0.08'/v giving a total employer contribution rate of 28.68,￿. Cranleigh School Pension Scheme The School operates a defined benefit scheme for non-teaching staff, the Cranleigh School Pension Scheme. The scheme was closed lo new members with effect from 1 January 2013. though il remains open lo existing members. As of 1 January 2013. the School established a generous defined contribution scheme for new employees Isee page 361. Contributions are made lo the scheme in accordance with the recommendations of the scheme's actuary and are charged to the Statements of Financial Activities. Following the signing of the latest valuation in June 2022 the School's contribution remained al 22.5°h. In addition the School paid contributions tolalling £89,400 in respect of the past service deficit. At 31 July 2023 £0 was accrued in respect of pension contributions lo this scheme {2022.' £01. Following the latest full Actuarial Valuation at 6 April 2021, the Trustees of the Cranleigh School Pension Scheme agreed with Cranleigh School, the employer, to continue with a recovery plan designed to eliminate the deficit from 6 May 2021 until 6 May 2027. Cranleigh School will make lump sum contributions of £7,450 per ealendar month to fund the past service deficit. The School has provided £119k to cover the potential cost of meeting the possible commitment lo pay additional guaonteed minimum pension IGMPI equalisation costs following the October 2018 ruling by the High Court in the Lloyds Bank case The fair value of the scheme assets exceeded the present value of future obligations at 31 July 2023 by £1,267,000. However, as the School will not recover this surplus through reduced contributions or refund, the asset has not been recognised in these financial statements in a¢cordance with FRS102. 35 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED} FOR THE YEAR ENDED 31 JULY 2023 20. PENSION SCHEMES (continued 2023 £'ooo 2022 £'ooo {al The amounts recognised in the balance sheet are as follows: Present value of funded obligations Fair value of plan assets {15,993} 17,260 119,6161 21.297 le55 asset not reco9nised 11,2671 {1.6811 Deficit amount shown in the balance sheet 2023 £'ooo 2022 £'ooo Ibl Changes in the present value of the defined benefit obligation Opening defined benefit obligation Service cost Interest cost Actuarial lossllgainl Benefits paid 19,616 322 685 4,0081 622 26.861 559 443 16,6131 1,634 Defined benefit obligation at year end 1 S,993 19,616 2023 £'ooo 2022 £'ooo Icl Changes in the fairvalue ofthe Scheme assets Opening fair value of the scheme assets Interest on assetslExpected return Aclu8rial gainlllossl Employerfs contributions Employees, contributions Benefits paid 21,297 753 14,6391 380 91 622 27,094 451 (5,121} 408 99 1,634 Closing defined benefit obligation 17,260 21,297 2023 £'ooo 2022 £'ooo {dl Amounts included within the Statement of Financial Activities Current service cost Past service cost IGMP equalisalionl Expected return on scheme assets Interest on pension liabilities 1,267 1.681 753 (688 451 1443 Total amount charged to the Statement of Flnanclal Activities 1.335 1,689 Net Actuarial gainslllossesl 631 1.492 less asset not recognised 181 1,448) Net Actuarial gainsl{lossesl reccxJnised in the year 14501 44 Net Cumulative actuarial gainsl{k)sses) The School expects to contribute £386k to the scheme in 2023124 36 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 JULY 2023 20. PENSION SCHEMES Icontinuedl 2023 £'ooo 2022 £'ooo (el Reconciliation of movements In Present Value of Plan . Liabilities and Assets Net liability at the beginning of the year Movements in the year.. Employer's current service cost Employer's past service c051 Employer's contribution Net interest on the Defined Benefit Ass8VLiability Aetuarial gains less scheme asset not recognised 12311 14601 380 1681 314 408 181 60 Net liability al end of the year 12331 In The categorles of scheme assets as a percentsge of total assets 2023 2022 Equities Bonds Annuf(ies Cash 38 58 36 60 Ig} Princlpal assumptions at the balance sheet date (expressed in percentagas as welghted averag8sl Discount rate Expected return on plan assets Rate of increase in salaries Rate of increase in pensions in payment RPI cpi Assumes life expectations in years on retirements age 65 Retiring today - males Retiring today - females Retiring in 20 years - males Retiring in 20 years - females 5.25 5.75 3.00 3.65 3.20 2.30 3.55 4.05 3.00 3.65 3.25 2.40 21.1 23.5 22.4 25.0 21.6 24.0 22.9 25.5 Ihl The amounts for tho Current and previous periods ara . 2023 £'ooo 2022 £'ooa 2021 £'ooo 2020 £'ooo 2019 £'ooo Defined benefit obligation Scheme assets Deficit Experience adjustments on liabilities Experience adjustments on assets {15,9931 119.6161 (26,8611 {27,1361 123,9481 17.260 21,297 27.094 24,926 23,423 12,2101 15251 491 {1,1911 1,194 1.869 15,2701 13,6291 {4,6391 15,1211 4,381 1,900 Defined contribytion ￿heme The Cranleigh School Group Personal Pension Plan started in January 2013. This is a money purchase group peTsonal pension scheme managed by Aviva. Basic contributions are 4V. for the employee and 8QA for the employer. The employer's contributions are charged in the Statement of Financial Activities in the per¢od in which the salaries to which they relate are due. The employerfs eontributions in the year amounted to £309,644 (2022.. £278.1301. AI 31 July 2023 £0 was accrued in respect of pension eontributions lo this scheme12022 . £01. 37 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2023 21. FINANCIAL INSTRUMENTS The charity has financial assets and financial liabllilies of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortlsed cost using the effective interest method. Financial assets held at amortised cost comprise cash and bank and in t)and, together with trade and other debtors. Financial liabilities held at amorb'sed cost comprise bank loans and overdrafts, trade and other creditors. At the balance Sheet dale the charity held financ(al assets al amortised cost of £8,268k {2022-. £4,432kl. Financial assets at fair value through income or expenditure of £Ok 12022.. £Ok} and Financial liabilities at amorti$ed cost of £20,905k12022.. £19.868kl 22. RELATED PARTY TRANSACTIONS The Headmaster of Cranleigh School is also the Trustee of 1170. This charity has used the facllilies of Cranleigh School for fundraisin9 meetings. There was no charge for these services and there were no amounts owed to the School at 31 July 202312022.. Nil) The School rents a residential propety from the Chairman of Governors (Mr A J Lajthal for the hoLbsing of school staff. The school pay5 rent of £1,700 per month under an Assured Shorthold Tenancy agreement. There were no amounts outstanding or owed to the School at 31 July 202312022.. Nil) There have been no other related party transactions that require disclosure other than transactions with olheT group entities. as sel out below.. In 2023 the Charity charged Granleigh Enterprises Limited minibu5 running costs lotalling £44,280 12022.. £41.4001. This is calculated as a fee per temi based on tuel and maintenance costs. In 2023 Cranleigh Enterprises Limited charged the Charity minibus usage costs lotslling £70,020 12022.. £65,430). This is calculated as a fee per term based on the reastsnable wear and lear of the vehides. In 2023 Cranleigh Enterprises Limited charged the Charity stationery and book costs lotalling £74,400 12022.. £51.6691. This is based on the recommended retail PTl¢e. 23. CAPITAL COMMITMENTS As at 31 July 2023 the Group had ¢apilal cornmitments of £1,097k for the construction works on the Squash Courts project. 24. OPEIiATING LEASES As at 31 July 2023 the Group had the followng non-cancellable operating leases, payable as follows-. 2023 £'ooo 2022 £'ooo Within 2 to 5 years Within 1 year 19 29 48 16 33 49 38 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2023 25. CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES - COMPARATIVE FIGURES Unrestricted Funds 2022 £'ooo Restrlcted Funds 2022 £'ooo Totsl Funds 2022 £'ooo INCOME FROM: Charitable actlvities School fees Other income Other trading activltles Facilities and trading income Other incoming resources Share of surplus from Joint Venture Investments Investment income Bank and other interest Voluntary sources Donations and legacies Fundraising events Total incoming resources 29.243 29,243 902 616 124 632 616 124 632 39 85 68 253 270 569 321 270 32.193 31,624 EXPENDITURE ON: Raising funds Ttading costs Share of loss from Joint Venture Other income-generaling ackn'vilies Financing costs Investment management Fundraising & development Total deductible costs 479 479 558 28 558 28 148 1.213 148 148 1,06S Charitable actlvities Education and grant making 28,899 49 28.948 Total exponditure 29.964 197 30,161 NET INCOMING FUNDS FROM OPERATIONS BEFORE TRANSFERS AND INVESTMENT GAINS 1.660 372 2,032 Gainsl{lossesl on investments 157S) 15) {5801 NET INCOME AND CAPITAL IINFLOWI 1,085 367 1,452 Transfers Penslon schgme actuarlal gainlllossl 11,000) 1.000 NET MOVEMENT IN FUNDS FOR THE YEAR FUNDS BIFWD I AUGUST 2Q21 129 46.912 1.367 1,984 1,496 48,896 FUNDS CIFWO 31 JULY 2022 47.041 3,351 50,392 39 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2023 26. ALLOCATION OF NET ASSETS TO FUNDS Fund balances at 31 Juty 2023.. Unrestricted Funds £'ooo Restricted Funds £'ooo Total Funds £'ooo Fixed assets Current assets Current liabilities Long term liabilities Pension scheme assets 65,454 8,395 19.2561 111,6491 65.454 8,482 19.2561 (11,6491 87 Total net assets 52,944 87 53,031 27. COMPARATIVE ALLOCATION OF NET ASSETS TO FUNDS Fund balances at 31 Juty 2022 Unrestricted Funds £'ooo Reslricle Funds £'ooo Total Funds £'ooo Fixed assets Current assets Current liabilities Long term liabilities Pension scheme assets 85,612 4,560 18,169} 111.6981 65,612 4,647 {8,169 {11,6981 87 Total net assets 50.305 87 50,392 40