CRANLEIGH EX CULTU ROBUR CRANLEIGH SCHOOL A COMPANY LIMITED BY GUARANTEE REGISTERED NUMBER 3595824 CHARITY NUMBER 1070856 ANNUAL REPORT AND ACCOUNTS 31 July 2024 CRANLEIGH SCHOOL ANNUAL REPORT AND FINANCIAL STATEMENTS 2024 CONTENTS: PAGE Governors, Officers and Advisors Annual Report of the Governors Strategic Report Statement of Accounting and Reporting Responsibilities 18 Independent Auditor's Report 19 Consolidated Statement of Financial Activities 22 Consolidated and School Balance Sheets 23 Consolidated Cashflow Statement 24 Notes to the Financial Statements 26 CRANLEIGH SCHOOL CRANLEIGH SCHOOL ANNUAL REPORT AND FINANCIAL STATEMENTS 2024 GOVERNORS, OFFICERS AND ADVISORS GOVERNORS, DIRECTORS AND CHARITY TRUSTEES The members of the Governing Body of Cranleigh School are the charity trustees of Cranleigh School and the Directors of Cranleigh School ('the Charity,). The members of the Governing Body are= (1) (2) (3) (4} (5) {6) (71 A J Lajtha. MA, FCIB (Chaimian) S E Bayliss MA J Boyd" OBE, MA (Retired 23 Apnl 2024) J A Brown MA (Oxon) R Chesser MA, MB, Bchir, MRCP F N Fa￿ant. BA M M S Fisher MA (Depuly Chair} P S P Going BSC, MRICS S Gunapala BEng. MEng, FCA T J House LLB (Hons) (Appointed 25 November 2023) M G Kapo￿e, LLB. PGDL (Appointed 18 June 2024) K J S Kerr BA (Hons), MCIPD D Khurshid MA, KC A J Lye BA (Reappointed 1 January 2024) J P Maskery" MEng S Mukherjee BSC. FCSI (Appointed 21 March 2024) C H Severs LLB (Hons) E Stanton Bsc. ACA J J D C Tate RIBA. FRSA P M Wells BEd (Hons) D G Westcott 8A, BCL. KC S J Whitehouse BA (Cantab) R J Wilkins MA. DPhil D A E Williams BA. FCA (Retired 31 December 2023) M J Williamson (1) (2) (3) (4) (5) (6) (7) 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 the School CRANLEIGH SCHOOL Mrs M M S Fisher and Mr S J 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 further terms of three years each if elected by the majority of Governors to continue in office. Cranleigh Preparatory (Prep) School has the same Governing Body as Cranleigh School. EXECUTIVE OFFICERS.. Head Cranleigh School: M S Reader MA, MPhil. MBA, QTS (retired 31 August 2024) S A Price MA, QTS (appointed 1 September 2024) N R Brooks BA, QTS PADunnBA J A Underdown BA (Hons) ACMA P T Roberts MBE, DChA Head Cranleigh Prep School: Director of Operations: Director of Finance: Clerk to the Governing Body: Principal address Cranleigh School and Registered Office Horseshoe Lane Cranleigh Surrey GU6 8QQ Cranleigh Prep School Horseshoe Lane Cranleigh Surrey GU6 8QH Websites www.cranlei h.or www.cranlei re school.or ADVISORS: Bankers: Handelsbanken Andrews House College Road Guildford GU14RG Solicitors: Veale Wasbrough Vizards Narrow Quay House Narrow Quay Bristol BS14QA Auditors: Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW Investment Advisors: Brewin Dolphin Limited 12 Smithfield Street London EC1A 9BD CRANLEIGH SCHOOL ANNUAL REPORT OF THE CRANLEIGH SCHOOL GOVERNORS FOR THE YEAR ENDED 31 JULY 2024 The Cranleigh School Governing Body presents the annual report for the year ended 31 July 2024 under the Charities 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 accordance with FRS 102 (as updated). DIRECTORS, REPORT CONSTITufioN 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 to 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. is 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 is structured with a single governing body for schools known as Cranleigh School and Cranleigh Prep School. The Charity, in furtherance 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 to provide public benefit and of the requirements of the Charities Act 2011 and have had regard to Charity Commission guidance 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 MANAGEMENT Governing Body There is one Governing Body for the schools. The members of the Governing Body and executive officers of the School, together with the principal advisors are listed on pages 1 and 2. Recruitment and Training of Governors The Charity's elected members of the Goveming Body are appointed at meetings of the Cranleigh School Governing Body on the basis of recommendations from the Nominations Committee. The Nominations Committee scrutinises candidates on behalf of the Governing Body. Trustees and executive officers of the School put fomard candidates to the Nominations Committee based on a candidate's professional qualities, experience, 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 its schools, including Governing Body policy and procedures, at briefings organised for them by the Heads 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 Governing Body attend external trustee training and information courses in order to ensure that the Governing Body is kept infomied of current issues and regulations in the education and charity sectors. Governors may attend days at the School shadowing pupils or visiting support departments. CRANLEIGH SCHOOL Organisational 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 set out in the Governance Code published in July 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 principles and is comfortable 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 times 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 executives to review performance and consider future development. The last strategy day was in June 2023. The Strategy and Risk Committee is chaired by Mr D G Westcott. The Education Committee considers educational and pastoral policy. Mrs S E Bayliss is the governor with responsibility for Safeguarding and her deputy is Mrs A J Lye. Mrs F N Farrant has responsibility for Special Educational Needs and Disabilities (SEND). The Education Committee is chaired by Mrs M M S Fisher. The Buildings and Estate 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 Safety and prodLSces 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 (the latter is a responsibility of the Education Committee). The Buildings and Estate Committee is chaired by Mr P S P Going. Cranleigh International Committee was established in 2020 (under the name Overseas Committee) to monitor performance and risks of the School's international schools specifically Cranleigh Abu Dhabi and Cranleigh China. Cranleigh International Committee is chaired by Mr S J Whitehouse. The Risk Management Group (RMG) 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 autumn each year. Each sub-committee is responsible for considering the risks in its area of governance and each has appointed a member to take the lead in risk management. The RMG is chaired by Mr S J Whitehouse. The Finance Committee scrutinises revenue, the budget and capital expenditure. This Committee also supervises and finalises the audited financial statements and annual report for approval by the Governing Body. The Finance Committee is chaired by Mrs E Stanton. The day-to-day running of the School is delegated to the respective Heads, supported by their Senior ManagementTeams. The Heads and representative members of senior management attend meetings of the Governing Body sub-committees and together these groups are the key management personnel. Remuneration is determined by the Governing Body which is conscious of the contribution of all staff to the School's success and, as such, it is rightthat remuneration ofstaff is the highest single cost incurred by the Charity. The Governing Body makes reference to comparisons of staff costs at other schools which are produced in various benchmark surveys that are anonymous and compliant with competition law. The remuneration policy balances fair wages and a generous pension scheme for lower paid staff with the provision of incentives for senior managers who take the burden of responsibility for the School's complex operations. The School complies with the UK'S Equality Act 2010 Regulations. These require that companies with more than 250 employees publish information on the gender pay gap annually. The 2023 report is available on the School's website. CRANLEIGH SCHOOL Group Structure and Relationships Cranleigh Foundation was set up in 2007 as a separate charity limited by guarantee with a registered oharity number of 1122918 and a company number of 06452540. Cranleigh Foundation's statutory financial statements a￿ 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 Heads, Director of Finance and Clerk to the Governing Body attend Foundation trustee meetings. Cranleigh School has two wholly owned non-charitable subsidiaries. Cranleigh Enterprises Limited (CEL) is a trading company that arranges the letting of facilities when not in use by the School and it has a retail 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 concerning CEL at Note 3 to the financial statements. The accounts of CEL are consolidated into the Cranleigh School accounts. Cranleigh Education Services Limited (CESL} 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 operation 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 2,165 pupils having opened a new off-site purpose-built Pre-Prep building in January 2024 on Saadiyat Lagoons. The School's public exam results were strong with 860/0 of pupils achieving GCSE grades 6-9 and at A Level 720/0 achieved grades A"_B. Cranleigh China opened its first school in Changsha in September 2020. There are 187 pupils in the international high school section as of September 2024. Outstanding A-level exam results were recorded in 2024 with 410/9 of students recording A, grades. The IGCSE results were also strong with 90 % of students in the A" to C ranking (Cambridge International use grades not numbers). Cranleigh China School opened in Wuhan in September 2022 with over 400 students on roll. Cogdel Cranleigh Wuhan High School recorded a very strong first set of IGCSE results in 2024 with 810/0 of students achieving A"_A grades. Stakeholder Engagement, Employment and Sustainability Policy The trustees confirm that in accordance with Section 172 (1) of the Companies Act and Charity Commission guidance they govern in order to achieve the objects of the Charity. The long-term financial and operational sustainability of the School is considered by trustees as set out in the Going Concern section of this report. Trustees assess financial projections and key risks that could impact the sustainability and reputation of the School. Assessments are made with the assistance of the executive and by reviewing management information, budgets, capital expenditure plans, cash flow forecasts and progress against financial projections each school term. Overarching the assessments of financial sustainability is a comprehensive risk management process that guides the executive and trustees towards areas of risk and specifically 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 (EDI) policy and full and fair consideration is made of job applications from disabled persons and consideration of their training and employment needs is made as necessary. The School complies with modern slavery regulations. 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. Employees are aware of the financial and economic performance of the School. Communicatson with employees continues through normal management channels in a variety offorms and through exceptional channels to apprise staff of current issues. Examples of consultation are briefings to teaching staff at the start of each term by the respective Heads to outline development options and seek the views of staff and engagement with staff regarding terms and conditions of employment through the staff Salaries Committee which meet with CRANLEIGH SCHOOL the Heads and Director of Finance together, once annually with the Chairman of the Governing Body and Chair of the Finance Committee. The Director of Operations and Director of Finance give additional and regular updates and briefings to support staff. The Governing Body and the Executive has spent much of the year preparing for both the succession of Heads at the Senior School in September 2024 and the Prep School in January 2025; and gathering data to inform potential changes and mitigations in response to 2 changing market place and political scenarios. Mrs Samantha Price, the Head of Benenden School in Kent until the end of Summer Temi 2024, assumed the appointment of Head of Cranleigh School on 1st September 2024. In September 2023 it was announced that the Head of Cranleigh Prep School, Mr Neil Brooks, will retire in December 2024. Following an extensive recruitment process, the governors appointed Mr William Newman, current Head of Sedbergh Prep School to be the next Head. With new Heads starting the School close together, the Schools are excited about the potential for proactive and shared change to ensure the Schools are in the strongest position possible to face the challenges of the next few years. The School is committed to engagement with stakeholders. The main groups are pupils, parents, alumni, employees and contractors. There is significant communication using a full range of media with pupils and their parents or guardians. This is routine and extensive with the aim of ensuring a smooth passage for the eleven years of a pupil's education at Cranleigh. The alumni organisation, The Old Cranleighan Society (OCS). 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 largestemployer in the area and aims to support local business wherever possible. Payment terms are 30 days but sole traders are able to requests earlier payment which is arranged on a case-by-case basis. The School is committed to improving environmental sustainability. There is a pupil led Environmental Committee which first developed it's strategy in 2019 and is now taking this forward. The School recycles food waste for anaerobic digestion to generate energy from the waste. The School complies with environmental regulation and specifically is currently undergoing the latest iteration of its ESOS responsibilities which will see an updated report produced at the end of this calendar year. This is a matter close to 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: Utility and Scope FY2024 Consumption (kwh) FY2023 Consumption (kwh) Scope 1 Total 6,827,642 7,836h66 Natural Gas and Other Fuels (Scope 1) 6.739,200 7,739,326 Transportation (Scope 1) 88,442 97,140 CRANLEIGH SCHOOL Scope 2 Total 2,108,640 2,189,869 Grid-supplied Electricity (Scope 2) 2,108,640 2,189,869 Total 8,936,283 10,026,335 The annual reporting figure changes are as follows.. There has been a 12.22Q/o decrease in natural gas and other fuel emissions during FY24 compared with FY23. This is due to a mild winter, which delayed heating needs and reduced fuel consumption. Additionally, increased investment in maintaining and monitoring plant rooms has improved energy efficiency. By upgrading equipment and checking boiler rooms more frequently, Cranleigh School have minimized unnecessary heating and hot water usage, leading to reduced emissions. Electricity emissions have decreased by 3.72 % in FY24, with emissions totaling 436.59 tcoze. Transport emissions have decreased by 9.23 % in FY24, with emissions totaling 20.96 tCO2e. This is due to match cancellations, either from opposition teams being unable to field players or poor weather conditions. These cancellations reduced the need fortravel, and as a result, fewer transport resources were used, contributing to the overall emissions reduction. The School is active in monitoring for risks of bribery, corruption, fraud and cyber-attack. The risk process is comprehensive and overseen by the Governing Body Risk Management Group. A more detailed explanation of the risk process is given later in this report. The School maintains a register of those executives and trustees in positions of Significant Control. Confticts of interest are reviewed fomally each year and attendees are required to declare any change of confiict status at each sub-committee and main Board meeting of the Governing Body. AIMS AND OBJECTIVES Mission Statement The purpose of Cranleigh School is to provide, within a Christian environment, the necessary education and appropriate training to enable pupils to develop their potential as individuals, and thereby to ensure that, on leaving, they will become confident members of society and effective contributors to it. Aims The aims of Cranleigh School, for the public benefit, are to enable young people to tlourish 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 to make informed choices-, resilience in the face of failure or difficulty. and the insight to recognise their privilege and to 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 abouttheir purpose and identity. A rigorous academic curriculum is reinforced by a commitment to a breadth of activity 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 CRANLEIGH SCHOOL which there is a strong and active partnership belmeen parents and the School. 'Pupils first, is a guiding principle for all decision making. Arising from the School's Christian heritage and cultural background, at the heart of a Cranleigh education are four central values of Service, Relationships, Leadership and Excellence. Setvice: All in the community are encouraged to adopt an attitude of service to each other and the wider community. Relationships.. Strong relationships are fostered as a priority in a predominantly boarding community. Children flourish within safe, supportive environments. Leadership: Openness, integrity 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 it does and aspires to be recognised both for its educational vision and for the personal qualities of Cranleighans. Prlmary objectives In order to achieve its aims the School has developed primary objectives which are.. to provide a stimulating learning environment in which pupils are encouraged to pursue and stretch their academic potential., 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 practice in safeguarding young people will always be a priority- to provide pupils with the opportunity to take advantage of a breadth of co-curricular activities in order to develop positively all aspects of their character., to provide pupils with the opportunity to take decisions based on their own judgement and to communicate those decisions appropriately and effectively. to provide a clear, simple and effective management structure capable of taking timely decisions and allocating necessary resources appropriately-, to provide the necessary administrative and logistical framework to meet the needs of employees and pupils alike., to encourage diversity within a predominantSy local boarding community through the expansion of the bursary programme, an increase in the number of Foundationers. and regular monitoring of the Admissions process. Strategies to achieve primary objectives The primary objective is to provide a stimulating learning environment and this is achieved by 165 FTE teachers (2023: 169). These teachers strive to allow every pupil to develop their academic potential. This is achieved by focusing on each individual whilst fostering the broader ethos of the School's community as a whole. The School's structure enables tutors, and at the younger age groups fomi teachers, to commit time and energy to their tutees and individual pupils in each form. The provision of a happy and secure pastoral environment is at the core of the School's approach to education. Pupils are cared for within a close 'house' structure that provides ft)r comprehensive individual care based on Christian principles and a strong bond that creates friendships throughout the School. The second element of this objective is to foster a sense of community and citizenship. This has been achieved through links with the local community and with international and regional organisations. Over the past year the Prep School has hosted children from local primary schools to join in when external providers, such as theatrical performers, have been in school. The children research and select charities which they wish to support throughout the year. The School supports a library in a local primary school and Art teachers and DT teachers have been involved in outreach programmes in local state schools. There have been significant changes in the boarding provision both CRANLEIGH SCHOOL in terms of facilities and staffing. The Prep School has much better and rejuvenated boarding accommodation which has seen popularity of boarding and its community grow. The School has also invested in Learning Support facilities, placing them at the heartof the academic programme, physically and ideologically. The Prep School Code of Conduct clearly communicates expectations to pupils and helps them develop a sense of responsibility, empathy and leadership. The co-curriculum is broad. Leadership and decision-making are embedded in many activities, The number of activities on offer to pupils is too numerous to mention here. A clearer understanding of the whole school approach to the co-curriculum can be found on the School websites www.cranlei h.or and www.cran re .or Readers are encouraged to visit these sites. The School is committed to improving equity, diversity and inclusion both as part of its social purpose and to ensure pupils are better prepared to be global citizens. The Governing Body has set and published objectives to increase the number of international students to 100/0 over the next four years; to increase the ethnic diversity of students from 7 /0 to a minimum of 100/0 of the Cranleigh population over the next four years., to increase the ethnic diversity of staff in Sine with the ethnic diversity of pupils., to recruit to achieve an equitable gender balance in middle and senior leadership positions over the next ten years. Social purpose objectives are also partially met through the funding of bursaries from income from international schools and the Cranleigh Foundation. Cranleigh Foundation trustees, Report and Financial Statements outline the continued progress in the development of Cranleigh Foundation. The Foundation has received donations this year of £333k {2023: £282k), and total income of £475k (2023: £397k}. The Foundation supports transformational bursaries for a number of pupils in year groups 7 to 13 at Cranleigh School. The Foundation trustees decided pre-covid to focus activity on the development of an endowment which will be built up over decades whilst continuing to support Foundationer pupils through the award of transformational bursaries, often with assistance from external organisations such as Springboard. There is not currently fund-raising strategy and in the medium term the School will be appointing a Development Director in this important area. The Charity has therefore had no active fund-raising activities this year requiring disclosure under S162A of the Charities Act 2011. The School and Foundation are compliant with the General Data Protection Regulation {GDPR). STRATEGIC REPORT ACHIEVEMENTS AND PERFORMANCE Review of achievements and performance for the year The principal activity. as specified in the Articles of Association, is the advancement of education and, in this. the School has had another successful year. Cranleigh School averaged 687 pupils (2023= 698) of whom 171 {2023:183) were day pupils and Cranleigh Prep School averaged 316 (2023: 319) pupils. At the Prep School the flexible boarding arrangements continued to be popular with, on average, circa 70 pupils boarding at the School each week in the newly refurbished boarding facilities which opened in September2021. Demand for places remains strong although less predictable in the light of changes to independent schools tax status resulting from the introduction of VAT on school fees from January 2025. The School year was successful with many notable specific achievements. some of which are reported below. The school's public examination results were strong at every level. At A Level, 16 % of A level exams were graded at A" and 79 % graded at A"_B grade. 810/0 of Cranleigh's leavers were successful in securing places at their university of choice. The School continues to be encouraged that academically able students are gaining places and scholarships at Ivy League universities and other leading universities in America. Of those gaining pla￿S in the UK. 82 % entered Russell Group or equivalent CRANLEIGH SCHOOL universities. The School continues to take a national lead in the EPQ and it is encouraging to note that an increasing number of universities, including a significant number in the Russell Group, now recognise the value of EPQ by making a lower A level offer contingent on achieving an A. or A in the EPQ. This year 44 % of Year 13 pupils achieved A" or A grades in their EPQ. The GCSE results were also strong and a testament to the hard work of both pupils and staff with 680/0 grades 9-7. Cranleigh School retains its place amongst the best schools in the country for academic performance which, combined with the breadth of the educational experience, enables pupils to reach their potential. Cranleigh sport has flourished once again both at the high-performance level with national and regional success in a wide range of sports but also at the participation level where we continue to put out more teams than other schools of a similar size. In cricket, Cranleigh reinforced its reputation as one of the best boys and girls cricket schools in the country with the boys 1st Xl winning 12 out of their 14 matches and a clear pathway for elite pupils to reach professional level. Girls cricket is flourishing with more depth of numbers playing and the main 1st and U15A sides winning over 66 % oftheir matches. In rugby, the U15A entered the National Schools, Cup for the first time and won the National Plate Competition. The 151 sevens side continued its reputation as one of the top sides in the country winning the Hampton Sevens and narrowly losing in the semi-finals of the National Rosslyn Park Cup Competition. In the main Michaelmas rugby term there were a record number of teams being put out from senior 5th XV to U14Ds playing regularly each weekend. A win rate across the club of over 70 % was hugely impressive and a clear proven pathway exists for the elite players to follow a number of other recent Ocs into playing professional rugby. Cranleigh continued its fine reputation for hockey with a record number of teams across the boys. and girls, clubs. Both boys, and girls, teams compete in the National Tier 1 Hockey league and the U18A team were National Runners-up. Several boys and girls played regional level hockey with a number progressing to the National level age group squads. With two Old Cranleighans playing hockey for GB in the Olympics, the success continues. There was also football success with the boys 1st team reaching the final of the National ISFA shield for the second year in a row. The netball club saw a record number of teams playing each Saturday (21 teams from Years 9 to 13) and all the girls, enthusiasm brought much success as well. The breadth of other sports on offer is excellent with three national medals won at the National Schools Eventing and Show Jumping competitions, the Eton Fives 151 pair winning the girls U18 National Championships and a swimmer winning gold in the U18 National 200m Breaststroke. Sport at Cranleigh Prep School continues to be strong at inter and intra-school levels. Major team games (football, hockey, netball, rugby and cricket) allow all pupils to represent teams and attend fixtures. There are a vast number of other sports, for example riding. fencing, judo, tennis, swimming, athletics, cross-country and badminton which continue to be offered to the pupils. The U12Agirls' cricket team won the Surrey Hardball Cup. This year has seen that offering expand further as the School has gained access to the Senior School's new squash courts. NFL (National Football League), a version of the American game, also features on the sporting programme and is played competitively. the School came second in the regional finals. Girls, football is now fully integrated in the sporting curriculum. Boys, and girls. teams reached national finals levels in hockey. Sports participation beyond the level offered by the school is strong with pupils supported at county and regional level for cricket, hockey and swimming. 12 pupils competed at the London Aquatic Centre at the IAPS National Swimming Finals with a notable gold medal in the 50m breaststroke. One girl. aged 13. was a member of the winning pair in the Eton Fives U18 National Finals. Three children won the Intermediate Polo Summer Championship at the Schools and Universities Polo competition. Three pupils won a National Title at Hickstead, competing against 232 other schools in the National Schoo15 Equestrian Association's Eventers, Challenge Championships. Pupils have undertaken challenging expeditions in renowned areas. including the Surrey Hills, Ashdown Forest. and the New Forest. Gold Award participants completed a demanding practice expedition on 10 CRANLEIGH SCHOOL Dartmoor under challenging conditions. This rigorous training prepared them well for their final expedition in the Brecon Beacons, which was completed successfully. In line with modern safety protocols, GPS tracking devices were implemented for all expeditions. This not only enhanced safety but also improved the training process, offering a more structured approach to expedition navigation and monitoring. The Year g cohort engaged in a comprehensive outdoor activity program throughout the year. The culmination of these activities was a two-day adventure designed to consolidate the skills acquired during the year, both on and off site. Noteworthy elements of this program include a hike across the Seven Sisters, one of England's most scenic coastal landscapes, and collaboration with the School's Environmental and Sustainability Team. This program has been instrumental in developing pupils, leadership, teamwork, and environmental stewardship. The Climbing Team has once again achieved commendable results this year, placing second in the South East Regional Competition and fifth at the National Climbing Championships. These results reflect the hard work and dedication of the team and coaches alike. This year saw the successful introduction of scuba diving in preparation for a scuba trip. Pupils worked towards their Open Water Qualification through a combination of online training, practice sessions in the School pool, and a two-day open water dive at a local lake. In addition to this new offering, efforts are underway to expand the school's involvement in other watersports, specifically paddling and sailing. We are currently in the process of reintroducing K2 and dinghy racing with a view to participating in local and national races and regattas. The Combined Cadet Force ICCF) continues to thrive, maintaining a large and highly engaged contingent. The past year was marked by several notable events and achievements, as the CCF entered its 125th year of operation. The leadership displayed by senior cadets has been exemplary, with a range of successful activities undertaken, including the completion of the National Navigation Award by cadets during an adventure week in the Lake District. 14 cadets successfully completed a Static Line Parachuting course, culminating in a solo jump over Salisbury Plain. Over 100 cadets participated in the Village Remembrance Parade and the D-Day 80 Celebrations, both of which were organised with significant support from the School. Shooting remains a hallmark of the CCF with cadets delivering outstanding performances in national- level competitions. The School's cadets placed first in the South East and second nationally in the British Schools Air Rifle Competition. The School hosted a Target Sprint National Qualifier. where five cadets qualified for the British Shooting Final, which we hosted on Jubilee. One of our students secured a silver medal and was subsequently offered a place on the Team GB pathway programme. The Full Bore Shooting Team also enjoyed a successful year. Through close collaboration with the OCS, the team achieved third place in the South East. The shooting team made up of year 10 cadets attended the prestigious Bisley Schools Competition, securing fifth place out of 61 competing schools. This achievement marks the first time in over 40 years that Cranleigh has appeared on the Bisley Main Leader Board. The continued success of both Outdoor Education and the Combined Cadet Force is a testament to the hard work, dedication, and commitment of the pupils, staff, and the wider school community. These program5 are integral to the developmentof important life skills, including leadership, resilience, teamwork, and environmental stewardship. This has been a year to celebrate Cranleigh's long heritage and excellence in the creative and performing arts, in line with our motto. from culture comes strength. 2024 marked the 501h anniversary of the Helen Wareham Solo Music Competition. A celebratory concert in March saw a soloistfrom each section play a 10-minute recital to a discerning audience of past winners. music scholars and their parents. The quality of musicianship on display was astonishing, reflecting the increasing number of musicians who are now taking diploma qualifications. The Music department has continued to promote 11 CRANLEIGH SCHOOL participation with lower stakes concerts at tea time and lunch time and the increasingly popular Open Mic, nights after Prep. Together with the larger set piece events such as choral concerts with professional orchestras and Cranleigh Live contemporary music concerts they present an enriching cultural experience for the pupils. The Music department has continued to champion diversity in music. This year the Summer Concert focused on neurodiversity with musicians from the Orpheus Trust Centre and the Simon Trust joining Cranleigh pupils in a memorable and moving performance. A developing partnership with the Cranleigh Arts Centre is enabling Cranleigh music to be more accessible to the local community- Cranleigh School put on the first ever amateur performance of'west Side Story, in 1964. To mark the 601h anniversary, Cranleigh performed 'West Side Story, once more. Probably the most challenging of all the musicals given its combination of complex music and dance, especially for those who have never danced before, the performances proved that if pupils are stretched they will always outperform expectations. The show gained plaudits from professiona15 and from many of the returning cast from 1964. To encourage greater participation in drama, House plays, which had fallen into abeyance post pandemic were given a new lease of life with each house putting on a play in the late autumn. The enjoyment of debut actors and directors was clearly evident. Cranleigh School's broadening international family is providing more opportunities for creative collaboration in celebration of our motto. In October, 30 musicians from years 7-13 travelled to Abu Dhabi and together with the Hermann Gmeiner School, Ghana and Cranleigh Abu Dhabi, students prepared and performed a day of concerts, dance and performance art in the Louvre Abu Dhabi, a unique innovation. In March, 10 dancers from Cranleigh Abu Dhabi joined the company of 'West Side Story, for the week and next year the Helen Wareham Competition will include musicians from Abu Dhabi and Cranleigh Schools in China. To further strengthen co-curricular activity, a new fitness studio, three new squash courts, a spinning room and a dance studio were opened. The opening of the fitness studio has enabled further development of high-performance strength and conditioning whilst also providing for those who are more interested in general fitness. The dance studio will meet the demand of a rapidly expanding dance programme, energised by 'West Side Story,. There were once again a huge number of wide-ranging House competitions from the plethora of sports events to academic public speaking and general knowledge quizzes, right through to a Year 9 dance and House part-song singing competition at the House perfonTran￿ show in September. A rich and varied programme of clubs and societies run each week and one notable highlight was the highly successful Design club. Cranleigh's VEX Robotics team continues to perform well in national competitions, narrowly missing outthis yearon qualification forthe World Championships. An extensive range of educational visits took place this year with a rapid increase in demand for overseas trips of all varieties from sports tours around Europe, volunteering and charitable ventures as far away as Zambia and many other cultural and academic enriching trips from London to the USA At Cranleigh Prep School, Year 8 produced film versions of 'Lord of the Flies,, 'Noughts and Crosses, and 'Romeo and Juliet,, Year 7 staged 'Seussical the Musical, and Year 5 impressed with 'A Funny Thing Happened on the way to Camelot,. 29 pupils attempted LAMDA exams in the summer, all of whom attained Distinctions. The Chapel Choir continues to be popular and the Chamber Choir sang in a local care home. One pupil was selected to sing with the National Youth Choir, another with the National Children's Choir of Great Britain. The School had an immensely busy summer period where over 90 individual projects were completed by the support departments. Most notably. the main kitchen and servery have been completely redeveloped proving new, modern facilities for cooking and serving as well as developing better facilities to support the department and staff back of house. Additionally, the Reception and visitors. area at the front of School has been redeveloped to provide a more welcoming experience to all who visit the School. The lower tennis and netball courts have been refurbished as part of our ongoing commitment 12 CRANLEIGH SCHOOL to maintain our existing facilities as well as we are able, and a myriad of smaller redecoration and compliance projects within boarding houses and at the Prep School have also been completed. Public benefit Cranleigh School continues to be committed to the provision of public benefit in accordance with its founding principles. The requirement to report public benefit in more detail is formalised in the Charities Act2011. The awarding of bursaries is a measurable means of providing public benefit. The trustees consider that bursaries, awarded to those who would not othemise be able to afford the fees, are important, but notto the exclusion of the much wider benefit that Cranleigh provides within the local community. Those pupils who attend Cranleigh and who receive this financial support contribute to the School community in a variety of ways and so enrich the whole School and, in some cases, the community outside the School. The value of scholarships and bursaries to people who would not otherwise be able to afford the fees to attend Cranleigh School was this year £1,257k (2023.. £1,141 k). The value of these bursaries has been met by funding from international schools, income from the Cranleigh Foundation and enterprises such as summer lets. In addition to bursaries, the School has engaged in many activities that provide public benefit in accordance to the Charity's objectives, and these are listed in a register maintained by the School. The School was quick to offer support to Ukrainian families fleeing the war and initially took in four pupils with I￿0 remaining in the longer term. Fund-raising activities to those effected by the war have been held regularly since February 2022. There have been many other charitable events in support of the objects during the year. Some examples are= partnerships with local maintained schools so that teachers from Cranleigh School teach at local maintained schools if there is a need for enhancement in a particular area and three members of staff are governors at local primary schools. The School's outreach programme into the community is active and has, during the year, involved activities such as the relief of hardship through support by Cranleigh Mission and support to local sports clubs. 48 local sports clubs used the School's sporting facilities, and outreach assistance includes maintenance by the School's Grounds department of the estate at Glebelands School, the maintained secondary school bordering Cranleigh School. In many cases the School's support is focused on providing support to the youth sections ofsports clubs. The School has formed a good relationship with the Surrey Virtual School supporting educational programmes for looked after children. This theme of social responsibility is important as Cranleigh School aims to develop local community projects. Cranleigh continues to focus its partnership activities on literacy outreach in collaboration with the National Literacy Trust and Cranleigh CofE primary school, a school which has a quarter of children on full school meals, through its Young Readers, Programme,. storytelling and reading for pleasure events., teachertraining,. the provision of over 500 books and Cranleigh's Sixth Form pupils assisting with events and reading engagement activities. A separate impact report highlights that the project has enhanced reading culture with positive changes in reading enjoyment, reading motivation, frequency and attainment. The School is also taking a leading role in sharing this expertise through the West Surrey Schools Partnership which has taken literacy as its major focus, expanding the impact across a greater range of primary providers in the area. The School has also taken a lead in supporting the Partnership in sustainability activities. Continuing the focus on literacy, following the example of our partner school in Zambia, the charity the School collaborates with has rolled out the Jolly Phonics literacy programme across the Copperbelt Province. In 2023-24 the number of government and community schools in Grade 3 involved in the programme grew from 515 to 600 and a further 1,500 teachers were trained bringing the number from 3,500 to 5,000 enabling them to double the number of children the literacy programme has impacted with over 300,000 pupils now learning to read through this method. Consistently, pupils using Jolly Phonics have scored two or three times higher than pupils in non-JoSly Phonics classes. The next stage 13 CRANLEIGH SCHOOL of development is to increase numeracy through improving the knowledge of number bonds which has been identified as an area of weakness. It is difficult, to measure accurately the financial cost to the School of this public benefit, that is given in addition to bursaries, but it is certainly well into six figures. The benefit provided by bursaries and other activities can also be considered alongside the benefit of educating the 1,003 pupils {167 in the primary school sector) which, in itself, has saved the Exchequer some £6,818,1001 this year. Cranleigh Foundation is an integral element in the provision of public benefit. There are seven Foundation bursary holders (Foundationers) in the School in September 2023 each with a bursary covering either full fees or a significant proportion offijll fees. The School continues to seek candidates to be Foundationers. The financial benefit to Foundationers this year was £308k (2023.. £253k). 2023 Annual Report OTh Education Spendino in England by the Insti￿te of Fiscal Sthdies. £6.900 per pupil in secondary schools and £6.300 per pupil in primary Schools. 14 CRANLEIGH SCHOOL FINANCIAL REVIEW Results for the year The School's consolidated net movement in funds in the attached financial statements is £2,515k (2023: £2,984). The surplus made by Cranleigh School (net incoming funds from operations before transfers and investment gains) was £1,667k for the year12023'. £3,483k). The FRS 102 pension valuation is a non-cash item within the School's accounts and has calculated that the scheme has a net actuarial gainlloss recognised in the year of £Ok, howeverthe funding level is in surplus by £1,291 k (2023.. surplus of £1.267k). Forecast for the current year (2024125) The Governing Body has considered several factors when forming their conclusion as to the use of the Going Concern basis for the basis of preparation of these financial statements including a review of updated forecasts to 31 December 2026 that include the impact of the imposition of VAT on school fees from January 2025. There has been comprehensive consideration of key risks that could negatively affect the Charity and its working capital requirements. The Governing Body has concluded that the School's finances for the year ahead are sound and so it continues to adopt the Going Concern basis in preparing the financial statements. Investment policy, objectives and performance The Governing Body has a balanced risk policy for investments. This is set out in the Statement of Investment Principles which is reviewed annually. The Finance Committee has delegated responsibility for investments to an Investment Committee. The Investment Committee comprises the Chair of the Finance Committee, Mr S Mukherjee, Mr S J Whitehouse and Mr P T Roberts. The Committee meet the School's investment advisors four times a year and provides a brief for the Governing Body at each Finance Committee meeting. Investment performance is measured against appropriate benchmarks and the Finance Committee is satisfied that performance is good when measured against benchmarks. This year performance has been above inflation and the portfolio increased in value by 14.2 % (2023.. 0.80/0) to £4,750k. The Investment Committee is currently reviewing investment risk and the structure of investment advice. The Governing Body considers that the performance of investments over the year are in line with benchmark total returns. ReseNes level and policy Cranleigh School has total reserves of £9,750k (2023.. £9,159k). The School's reserves policy is to maintain sufficient unrestricted funds to meet an unexpected shortfall of revenue in order to provide cash for three months operating costs at an average of £2,862k per month. The School's reserves comprise the investment portfolio valued at £4,750k the unused bank facility of £2,OOOk and unused overdraft of £3,OOOk. Total reserves at 31Sl July therefore exceeded the £8,586k sum required by the policy. The Charity has not conducted active fund-raising during the year. No￿lthstanding this Cranleigh Foundation (Charity Number 1122918) raised £475k (2023: £397k) during the accounting year from donations, legacies and investment income. Principal risks and uncertainties Cranleigh School Governing Body is responsible for the management of the risks faced by the School. Risk Management is delegated to the Risk Management Group (RMG) which reports formally to the Governing Body each autumn. This RMG comprises six members of the Governing Body and it is assisted in its work by senior management and other staff as necessary. The process provides continuous assessment of risks through the auspices of the sub-committees with each taking responsibility for risks. and where appropriate mitigation, in its given area of expertise. The generic controls used by the Charity to minimise risks include.. 15 CRANLEIGH SCHOOL oversight of key areas of risk, such as health and safety and safeguarding, by individually nominated governors., formal agendas for Committee and Board activity., formal strategic planning, reviewed annually and assisted by the Strategy and Risk Committee., comprehensive budgeting and management accounting., established organisational structures and lines of reporting., formal written policies., vetting procedures as required by law for the protection of the vulnerable- compliance with regulations that apply to the running of a school., declaration of conflicts of interest, renewed at each Governing Body meeting, including sub- committee meetings. The most significant external risk facing the School is financial following the impact of the imposition of VAT on school fees from January 2025 and its associated effect on pupil numbers. In order to mitigate this risk the RMG and Finance Committee recommended the formation of a finance working group to consider financial options. This working group has met on a number of occasions during the year. Global insecurity is considered a medium term external risk to Cranleigh's international operations and this risk is monitored by the International Committee as a standing item at each meeting of the Committee. Previous direction given to the executive to place safeguarding of pupils as the School's first priority is enduring. Health and safety is both a safeguarding and more general risk, and both risks are residual and so will endure. The School continues to prioritise safeguarding culture and education, refreshing and updating a comprehensive programme of sex and relationships education. The School has also prioritised anti-racist education and a governors, working party formed in 2021 supports the School's leadership in the introduction of more comprehensive EDI initiatives, in partnership with Flair Impact, the African Caribbean Education NeI￿Ork and Black Lives in Music. Work on decolonising the urriculum continues and the Assistant Head Pastoral, who sits on the board of the Schools Inclusion Network, has involved pupil leaders in improvements to more inclusive practice and language and strengthened education and alliance activities with all those with protected characteristics. An Independent Schools Inspectorate report carried out in November 2022 highlighted the inclusiveness of the school's culture and the strength of its safeguarding procedures. The level and breadth of activity at the School is impressive and the risks associated with all activities are minimised by thorough planning and risk assessment. Sports, injuries are monitored carefully, each being tracked, to record trends in order to identify those elements of sport most likely to cause injury so that mitigating actions can be taken. To release any potential pressures on the NHS ambulance service, and prevent further risk of injury, all matches this term continue to have private medical facilities on the touch line. There continues to be interest in the wider education community about the risk of injury on the rugby field. The Governing Body seeks to understand some individual risks in more detail and from time-to-time initiates external scrutiny. The Governing Body is satisfied that the major risks have been identified and controls put in place to manage risk adequately. It is recognised that systems can provide reasonable, but not absolute. assurance that major risks are being managed. 16 CRANLEIGH SCHOOL Future plans The School Development Plan of 2015 has been completed. A new development cycle will commence with the succession ofthe Heads at both schools who will work closely with the executive and Governing Body. It is anticipated that the enduring core work of planning is that Cranleigh School will continue to articulate and extend its culture through Cranleigh Thinking, Cranleigh Being and Cranleigh Giving. Cranl8igh Thinkingteaches pupils to think beyond the test, to become independent learners who know how to learn, adapting to changing contexts. Cranleigh Being promotes a culture in which who we are and how we are is as important as what we achieve and in which the well-being of all in the community is a priority. Cranleigh Giving encourages all in the community to think beyond themselves and to consider how they will share their resources, time and expertise. It also seeks to widen access to Cranleigh, offering opportunities to young people from a diverse range of backgrounds and experience. Together, these themes express the aspiration that all members of the community are encouraged to be thinking, giving individuals who are able to consider who they are, what they will be and how they will be now and in the future. It is this aspiration that is to be taken forward in the next school development plan. 17 CRANLEIGH SCHOOL STA TEMENT OF ACCOUNTING AND REPORTING RESPONSIBILITIES The trustees are responsible for the preparation of the trustees, Report and the financial statements in accordance with applicable law and regulations. Company law requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards} and applicable law. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its net incoming or outgoing reSoUr￿S for that period. In preparing these financial statements, the trustees are required to.. select suitable accounting policies and then apply them consistently., make judgments and estimates that are reasonable and prudent., state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statements on the Going Concern basis unless it is inappropriate to presume that the charity will continue to operate. The trustees are responsible ft)r keeping proper accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Insofar as each of the members of the Governing Body at the date of approval of this report is aware, there is no relevant audit information (information needed by the Charity's auditor in connection with preparing the audit report) of which the Charity's auditor is unaware. Each member of the Governing Body has taken all the steps that he or she should have taken as a member of the Governing Body in order to make himself or herself aware of the relevant audit information and to establish that the Charity's auditor is aware of that information. AUTHORISA TION This Annual Report, prepared under the Charities Act 2011 and the Companies Act 2006, was approved by the Governing Body of Cranleigh School on 30th November 2024, including in their capacity as company directors approving the Directors, and Strategic Reports contained therein, and is signed as authorised on its behalf by the Chairman of the Governing Body. M M S Fisher (Deputy Chair of the Governing Body) 18 Independent Auditor's Report to the Members of Cranleigh School Opinion We have audited the financial statements of Cranleigh School ('the charitable company,) and its subsidiaries {'the group,) for the year ended 31 July 2024 which comprise Consolidated Statement of Financial Activities, Consolidated and Company only Balance Sheets, Consolidated Statement of Cashflows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the group's and the charitable company's affairs as at 31 July 2024 and of the group's income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. 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 Auditorfs responsibilities for the audit of the financial statements section of our report. We are independent of the group 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. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively. may cast significant doubt on the charitable company's or the group's ability to continue as a going concern for a period of at least ￿e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other informatlon The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. 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 inconsistentwith the financial statements or our knowledge obtained in the audit or othetwise 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 infomiation, we are required to report that fact. We have nothing to report in this regard. 19 Opinions on other matters prescribed by the Companies Act 2006 In our opinion based on the work undertaken in the course of our audit the information given in the trustees, report, which includes the directors, report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements-, and the strategic report and the directors, report included within the trustees. report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors, report included within the trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion- adequate and proper accounting records have not been kept., or the financial statements are not in agreement with the accounting records and returns., or certain disclosures of trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit Responsibilities of trustees As explained more fully in the trustees, responsibilities statement, set out on page 18. the trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the flnancial statements 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 auditorfs 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 materia5 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. Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.or .uklauditorsres onsibilities. This description forms part of our auditorfs reporL Extent to which the audit was considered capable of detecting Irregularitles, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement ofthe financial statements from irregularities, whether due to fraud or error, and discussed these be￿een our audit team member5. We then designed and performed audit 20 procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation, together with the Charities SORP {FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company's and the group's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the groLJP for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent School Standards) Regulations 2014, General Data Protection Regulation (GDPR), Health and safety legislation and Employment legislation We also considered compliance with local legislation for the group's overseas operating segments. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of voluntary income, the timing of recognition of other trading activities, and the override of controls by management which includes estimates and judgements in relation to the pension liability. Our audit procedures to respond to these risks included enquiries of management and the Finance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, analytical procedures and sample testing of income, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, Independent Schools Inspectorate, Ofsted and reading minutes of meetings of those charged with governance. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements. the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as wilh any audit. there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non- compliance and cannot be expected to detect non-compliance with all laws and regulations. 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 auditwork has been undertaken so thatwe 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. Nicola May Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor London Date 4 December 2024 21 CRANLEIGH SCHOOL CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income and Expenditure Account) FOR THE YEAR ENDED 31 JULY 2024 Trading School Subsidiaries Unrestricted Unrestricted Restricted Funds Funds Funds 2024 2024 2024 £'ooo £'ooo £'ooo Group 2024 £'ooo Group 2023 £'ooo Note INCOME FROM: Charitable activities School fees Other income Other trading activities 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 33,455 1,455 33,455 1,455 30,947 1,199 15 151 973 988 151 2,257 116 361 41 380 41 380 130 106 100 333 26 433 26 380 25 Total incoming resources 35,597 973 359 36,929 35,521 EXPENDITURE ON: Raising funds Trading costs Share of loss from Joint Venture Financing costs Investment management Fundraising and development Total deductible costs 493 413 493 413 668 26 606 12 662 26 604 24 688 912 1,608 1.237 Charitable activities Education and grant making 33,654 33.654 30.801 Totsl expenditure 34,342 912 35,262 32,038 NET INCOMING FUNDS FROM OPERATIONS BEFORE TRANSFERS AND INVESTMENT GAINS 1,255 61 351 1,667 3,483 Gains l (losses) on investments 12 576 272 49 NET INCOME I (EXPENDITURE} 1,831 61 623 2,515 3.434 Transfers other recognised gains l (losses): Pension scheme actuarial gainl(loss) 455 (455} 20 450 NET MOVEMENT IN FUNDS FOR THE YEAR 2,286 {394) 623 2,515 2.984 FUNDS BIFWD q AUGUST 2023 48,844 1.635 3,591 54,070 51,086 FUNDS CIFWD 31 JULY 2024 51,130 1,241 4,214 56.585 54,070 The notes on pages 26 to 43 fomi part of these accounts 22 CRANLEIGH SCHOOL BALANCE SHEETS AS AT 31 JULY 2024 School 2024 £'ooo School 2023 £'ooo Group 2024 £'ooo Group 2023 £'ooo Note FIXED ASSETS Tangible assets Investments 57,101 4,750 56,631 4,159 57,160 9,862 56,684 8.790 12 61,851 60.790 67,022 65,454 CURRENT ASSETS Stocks Debtors - due within one year - due after one year Cash and bank balances 50 1,086 52 2.105 262 1,009 215 1,861 17 7,428 9,521 13 13 22,713 23,857 6,477 8,651 23,010 24,289 CURRENT LIABILITIES Creditors payable within one year 14 (15,720 (15,720) 8,948) (8,948) 115.868) (1 S,868) 19.2561 (9,2561 NET CURRENT ASSETS I ILIABILITIESI 8,137 297) 8,421 265 TOTAL ASSETS LESS CURRENT LIABILITIES 69,988 60,493 75,443 65,719 LONG-TERM LIABILITIES Creditors payable after one year {18,858) (11,649) {18,858) (11,649) TOTAL NET ASSETS EXCLUDING PENSION LIABILITY 51,130 48,644 56,585 54,070 Pension scheme funding 20 TOTAL NET ASSETS 51,130 48,844 56,585 54.070 FUNDS Foundation restricted funds 4,214 3,591 Trading subsidiaries 100 100 School unrestricted funds 51.130 48,844 52,271 50,379 Pension reserve 20 TOTAL FUNDS 18 51,130 48,844 56,585 54,070 The net movement in funds for the financial year dealt with in the financial statements of the parent company was £2.515k (2023 £2,984k) Approved and authorised for issue by the Governors on 30 November 2024 and signed on their behalf by (￿J- M M S Fisher (Deputy Chair of the Governing Body) The notes on pages 24 to 43 form part of these accounts Company No.3595824 23 CRANLEIGH SCHOOL CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 JULY 2024 2024 £'ooo 2023 £'ooo Net cash inflow from operations Net cash provided by I (used in) operating activities (a) 5,908 5,243 Cash flows from investing activities Payments for tangible fi'xed assets Purchase of investments Withdrawals from investments Investment income and bank interest received (2,301 1661) 26 41 (1,238) 140) 24 40 Net cash (used in) I provided by investing activities (2,895) (1,214) Cash flows from financing activities Finance costs paid Advance fees.. (479) 18,681 147 (2.297) 3,483 (530) 2,070 44 (1.614) 428 New contracts Accrued to contracts Appropriations Loan facility Net cash provided by financing activities 12,569 (458} 15,582 3,571 Debt repayment (net) 3,484 428 Change in cash and cash equivalents in the reporting period 19,066 3,999 Cash and cash equivalents at the beginning of the reporting period (4,134) (8,133) Cash and cash equivalents at the end of the reporting period (bl 14.932 4,134 The notes on pages 26 to 43 form part of these financial statements 24 CRANLEIGH SCHOOL NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 JULY 2024 {a} Reconciliation of net income to net cash flow from operating activities 2024 £'ooo 2023 £'ooo Net incoming resources Elimination of non-operating cash flows: Investment income Finance costs paid Depreciation (Loss)IProfit from disposal of assets (Increase)IDecrease in stock {Increase)IDecrease in debtors Increasel(Decrease) in creditors 1,667 3,483 <41) 479 1,802 (3) (47) 861 1,190 (40) 530 1,723 (1,3061 848 4,241 1,760 5,908 5,243 (b) Analysis of cash and cash equivalents 1 August 2023 £, 000 1 August 2024 £, 000 Cash at bank and in hand less overdraft Loan facility- Handelsbanken 7,428 11,562) 15.582 3,484 23,010 8,078 (4,134) 19,066 14,932 25 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 ACCOUNTING POLICIES The School is a Public Benefit Entity registered as a charity in England and Wales and a company limited by guarantee. It was incorporated on 9 July 1998 (Company No. 35958241 and registered as a charity (Charity No. 1070856). The financial statements have been prepared in accordance with the 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 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) and the Companies Act 2006. The functional currency of the School is considered to be GBP because that is the currency of the primary economic environment in which the School operates. The accounts are drawn up on the historical cost basis of accounting, as modified by the revaluation of investment properties and other investments. Having reviewed the funding facilities available to the School together with the expected ongoing demand for places and the School's future projected cash flows, the governors have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the School's financial viability. Accordingly, they also continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Accounting and Report'jng Responsibilities on page 18. The accounts present the consolidated Statement of Financial Activities (SOFA), the consolidated cash flow statement and the consolidated and Charity balance sheets comprising the consolidation of the School and with its wholly owned subsidiaries Cranleigh Enterprises Limited (Company No. 2902113), Cranleigh Foundation (Company No.1122918) and Cranleigh Education Services Limited (Company No. 8224546). Cranleigh Education Services Limited also has a 50(Ap share in CR Education Ltd a United Arab Emirate Joint Venture. 700/0 of the Joint Venture profits are included in the Group accounts. No separate SOFA has been presented for the Charity alone, as permitted by Section 408 of the Companies Act 2006. The net incoming resources of the Charity are disclosed on page 30. The charity has taken advantage of the exemptions in FRS 102 from the requirements to present a charity only Cash Flow Statement and certain disclosures about the Charity's financial instruments. The Charity has taken advantage of exemption 408 of the Companies Act and as such a separate parent income statement has not been prepared. Critical accounting judgements and key sources of estimation uncertainty In the application of the accounting policies, trustees are required to make judgement. estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant Actual resu5ts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods. The School has recognised its liability in relation to the Cranleigh School Pension Scheme which involves a number of estimations as detailed in Note 20. 26 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 ACCOUNTING POLICIES (continued) The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the School's financial statements. 1.1 Fees and similar earned income Fees receivable and charges for services and use of the premises, less any allowances, scholarships and bursaries granted by the School against those fees, but including contributions re￿iVed from restricted funds, are accounted for in the period in which the service is provided. 1.2 Investment income Investment income from dividends, bank balances and fixed interest securities is accounted for on an accruals basis. Income from investment properties is accounted for in the period to which the rental income relates. Rental income (including incentives received or paid) for operating leases on investment propety are recognised in profit or loss on a straight line basis over the lease term. 1.3 Donations, legacies, grants and other voluntary incoming resources Voluntary incoming resources are accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the School is considered probable. Voluntary income for the School's general purposes is accounted for as unrestricted and is credited to the General Reserve. Where the donor or an appeal has imposed trust law restrictions, voluntary income is credited to the relevant restricted fvnd and incoming endowments are accounted for as permanent trust capital or expendable trust capital, according to whether the donor intends retention to be permanent or not. Gifts in kind are valued at estimated open market value at the date of gift, in the case of assets for retention or consumption, or at the value to the School in the case of donated services or facilities. 1.4 Advance Fee Scheme Interest is paid by the charity on the advance, in which case the transaction is in substance a loan and is classed as a basic financial instrument. The financing cost is the interest paid and this must be treated as an interest expense. (If the interest rate paid is below the market rate for an equivalent loan, then the loan may qualify for treatment as a concessionary loan) 1.5 Expenditure Expenditure is accrued as soon as a liability is considered probable. discounted to present value for longer-term liabilities. Expenditure attributable to more than one cost category in the SOFA is apportioned to them on the basis of the estimated amount attributable to each activity in the year, either by reference to Staff time or the use made of the underlying assets, as appropriate. The direct costs incurred in preserving the School's ancient buildings and their contents are shown as a charitable activity distinct from that of education and grant making. Irrecoverable VAT is included with the item of expenditure to which it relates. Grants awarded are expensed as soon as they become legal or operational commitments. Governance costs comprise the wsts of complying with constitutional and statutory requirements. Intra-group sales and charges be￿een the School and its subsidiaries are excluded from trading income and expenditure 27 CFI4NLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 ACCOUNTING POLICIES (continued) 1.6 Tangible fixed assets Expenditure on the acquisition, construction or enhancement of land and buildings costing more than £5,000 together with vehicles. furniture, machinery, ICT infrastructure and other equipment costing more than £5,000 are capitalised and carried in the balance sheet at historical cost. In certain circumstances, where the original costs of assets are not ascertainable, a reasonable estimate of the cost, if material, has been used. Other expenditure on equipment incurred in the normal day-to-day running of the School and its subsidiaries is charged to the Statement of Financial Activities as incurred. 1.7 Depreciation Depreciation is provided to write off the cost of all relevant tangible fixed assets less estimated residua5 value based on current market prices, in equal annual instalments over their expected useful economic lives as follows: School buildings, including major extensions Staff housing Furniture, machinery and equipment Motor vehicles 15-50 years 50 years 3-30 years 5 years 4 years A full year's depreciation is recognised on an asset in the year of completion. 1.8 Investments Investment properties are valued as individual investments at their market values as at the balance sheet date. Rental income is recognised in the period to which it relates. Purchases and sales of investment properties are recognised on exchange of contracts. Listed investments are valued at market value as at the balance sheet date. Unrealised gains and losses arising on the revaluation of investments are credited or charged to the Statement of Financial Activities and are allocated to the appropriate fund according to the "ownership" of the underlying assets. Investments in subsidiaries are valued at cost less provision for impairment. 1.9 Stock Stock represents goods for resale and is valued at the lower of cost and net realisable value. 1.10 Fund accounting The charitable trust funds of the School and its subsidiaries are accounted for as unrestricted or restricted income, in accordance with the terms of trust imposed by the donors or any appeal to which they may have responded. Unrestricted income belongs to the School's corporate reserves, spendable at the discretion of the governors either to further the School's Objects or to benefit the School itself. Where the governors decide to set aside any part of these funds to be used in future for some specific purpose, this is accounted for by transfer to the appropriate designated fund. Restricted income comprises gtfts, legacies and grants where there is no capital retention obligation or power but only a trust law restriction to some specific purpose intended by the donor. 28 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 ACCOUNTING POLICIES (continued) 1.11 Pension costs Retirement benefits to employees of the School are provided through three pension schemes, defined benefit and one defined contribution. The pension costs charged in the Statement of Financial Activities are determined as follows.. (a) The Teachers, Pension Scheme - This scheme is a multi-employer pension scheme. It is not possible to identify the School's share of the underlying assets and liabilities of the Teachers, Pension Scheme on a consistent and reasonable basis and therefore. as required by FRS102, accounts for the scheme as if it were a defined contribution scheme. The School's contributions, which are in accordance with the recommendations of the Government Actuary, are charged in the period in which the salaries to which they relate are payable. (b) The Cranleigh School Pension Scheme This is an occupational defined benefit scheme. The defined benefit pension scheme current service costs are charged to the Statement of Financial Activities within staff costs. The expected return on the scheme assets less the scheme interest costs are credited within other interest. The scheme actuarial gains and losses are recognised immediately as other recognised gains and losses. The defined benefit scheme assets are measured at fair value at the balance sheet date. Scheme liabilities are measured on an actuarial basis at the balance sheet date using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term to the scheme liabilities. The resulting defined benefit liability is presented separately after other net assets on the face of the balance sheet. If the School cannot recover any pension scheme asset, it is not recognised in accordance with FRS 102. {c) The Cranleigh School Group Personal Pension Plan This is a defined contribution group personal pension plan with Aviva. Employerfs pensions costs are charged in the period in which the salaries to which they relate are payable. 1.12 Operating leases Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term. 1.13 Financial instruments Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost with the exception of investments which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions. Assets and liabilities held in foreign currency are translated to GBP at the balance sheet date at an appropriate year end exchange rate. 29 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 2. CHARITABLE ACTIVITIES - FEES 2024 £'ooo 2023 £'ooo Fees receivable consist of: Gross fees Less: Total bursaries, grants and allowances 37,821 {4,366) 35,539 {4,592) The above educational awards were made lo 332 pupils (2023 - 357). 33,455 30,947 3. SUBSIDIARY COMPANIES Cranleigh Enterprises Limited. is a company in which the School owns all 100 £1 shares, and Ihe aggregate amount of assets, liabilities and funds is £36.5k. The trading activities of Cranleigh Enterprises Limited comprise a retail operation (supplying school clothing, sportswear and sports equipment, for pupils, leachers and employees of Cranleigh School), and the letlings of School facilities. The turnover wa5 £799.Ok and the net profit £378.3k with £414.7k of net funds. The net profit earned by this company is donated annually to Cranseigh School under Gift Aid. The value of goods and services supplied to the School by the company in the year was £103.5k (2023 - £74.4k) and the value of services supplied to the company by the School in the year was £Ok (2023 £Nil). The Gift Aid donation for the year of £349k (2023 '. £413k) has been shown on the Statement of Financial Activities as a transfer to the School. Cranleigh Education Services Limited is a cornpany in which the School owns all 100 £1 shares and the aggregate amount of assets. liabilities and funds is £208.9k. The trading activities of Cranleigh Education se￿ices Limited is to facilitate the establishment of overseas schools and then monitor the running of overseas schools once open. The turnover was £290.8k and the net profit £101.5k. There were no Se￿ICe5 supplied to the School by the Company in the year and £38.4k services supplied to the Company by the School in the year. The Gift Aid donation for the year of £106k (2023 . £1,220kl has been shown on the Statement of Financial Activities as a transfer to the School. Both trading companies are now consolidated within the group financial statements as detailed in the Statement of Accounting Po5icies. Cranleigh School is also the sole member of Cranleigh Foundation, a company limited by guarantee established to promote and advance any charitable purpose directly ¢onne¢ted with Cranleigh School. The financial results of Cranleigh Foundation are included as the Foundation restricted funds within these consolidated accounts 2024 £'ooo 2023 £'ooo 4. CHARITABLE ACTIVITIES - OTHER INCOME Educational visits Activities Other 712 215 348 178 529 224 318 127 Rentsl income Registration fees Other 1,455 1,199 5. OTHER TRADING ACTIVITIES 2024 £'ooo 2023 £'ooo Facilities and trading income Cranleigh School Cranleigh Enterprises Ltd Cranleigh Education Services Ltd 15 682 291 899 1,355 2,257 988 other incoming resources Surplus on asset sales other 146 112 151 116 Share of surplus from JV C R Education Ltd (see note 12) 361 30 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 2024 £'ooo 2023 £'ooo INVESTMENTS Investment Income 41 130 Bank and other interest Bank interest 380 106 7. VOLUNTARY SOURCES 2024 £'ooo 2023 £'ooo Donations and legacies Donations to Cranleigh School Donations to Cranleigh Foundation 100 333 98 282 433 380 During the year Cranleigh Foundation has awarded grants to Cranleigh School lotalling £Ok 12023= £Qkl to support bursaries and various capital projects being carried out by the School. all of which were completed in the year. Cranleigh Education Services donaled £Ok12023: Nil} to the School during the year. 2024 £'ooo 26 2023 £'ooo 25 Fundraising events Cranleigh Foundation Ltd 8. ANALYSIS OF EXPENDITURE Total 2024 £'ooo Total 2023 £'ooo Staff Costs £'ooo Olher £'ooo Deprecialion £'ooo a) Total expenditure Costs of generating funds Trading costs Share of loss frorn Joint Venture Financing costs Investment Fundraising Total costs of generating funds Charrtable expenditure Education and grant making Teaching costs Welfare Premises Support costs and goveman Grants and awards 141 330 413 668 26 22 493 413 668 26 606 604 24 141 1,445 22 1.608 1,237 14,980 3,088 1.218 959 3.272 1.999 4,286 2.072 90 32 1,590 68 18,342 5,119 7,094 3,099 17,218 4.642 6,069 2,782 90 Total charitable expenditure Total expended 20,245 11,629 1,780 33,654 30.801 20.386 13,074 1.802 35,262 32.038 2024 £'ooo 2023 £'ooo b) Grants and awards From Unrestricted Funds: Bursaries 90 90 c) Governance included in support costs 2024 £'ooo 2023 £'ooo Remuneration paid to auditor for audit services= School Subsidiaries 31 12 90 29 12 188 other governance costs 133 229 Travel expenses were reclaimed by tsvo members12023'. 2) of the Goveming Body. In addition to the above audit remuneration the auditor received fees for taxation compliance services totalling £12.4k (2023.. £5.Ok) and tax advice £0.86k (2023-. £0.75k) 31 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 2024 £'ooo 2023 £'ooo FINANCING AND OTHER COSTS Bank interest and charges Advanced fees discounts 521 147 560 44 668 604 10. STAFF COSTS AND RELATED PARTY TRANSACTIONS 2024 £'ooo 2023 £'ooo The aggregate payroll cost5 for the year were as follows Wages and salarie5 Social security Costs Pension costs 16,262 1,641 2,483 15.253 1.542 2,139 20,386 18,934 No governor received remuneration in 2024 {2023.' £Nil) from Cranleigh Education Setvices Ltd. The granting of a benefit to any governor is consistent with the School's policies for benefits and no governor receives any remuneralion or benefil that would not be available to a parent. Aggregate employee-benefits of 19 (2023.201 key management personnel 2,361 2,319 The number of higher paid employees in bands of.. £ 60,001- £ 70,000 £ 70,001 - £ 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- £180,000 £ 180.001- £190,000 £ 190.001- £200.000 £ 200,001- £210,000 £ 210,001- £220.000 40 13 29 10 66 49 The number with retirement benefits acctuing in Defined Contribution schemes was 65 47 of which the contributions amounled to £950,000 £759,000 The average number of the School's employees during the year calculated on a full time equivalent basis was 338 (2023.. 3481. The average headcount for the year was 425 {2023 . 421) 2024 £'ooo 2023 £'ooo Teaching Welfare Premises Support other activities 165 72 32 15 169 78 33 15 53 338 348 During the year one temiination payment was made {2023= 0). There were none outstanding at the year end. 32 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 11. TANGIBLE FIXED ASSETS Freehold Land & Buildings £'ooo Assets Under Construction £'ooo Motor Vehicles £'ooo Fittings & Equipment IT Hardware £'ooo £'ooo School and Group Total £'ooo Cost {or frozen valuation) At 1 August 2023 Addilions Transfers Disposals At 31 July 2024 Depreciatlon At 1 August 2023 Charge for year Disposals At 31 July 2024 Net book values At 31 July 2024 54,565 1,460 At 31 July 2023 54,063 1.548 The School's fixed assets total £57,101 k and Cranleigh Enterprises £59k. All tangible fixed assets are held for use on charitable aclivies. The freehold land and buildings, excluding separate buildings, comprising Cranleigh School and Cranleigh Preparatory School were revalued in 1999. Buildings were not previously depreciated. but with effect from 1 August 2005, depreciation is calculated over 50 years for all School buildings. When building projects are still in progress at the year end, depreciation is not calculated until the financial year in which the asset 15 brought into full use. Land is not depreciated. School School Group Group 2024 2023 2024 2023 £'ooo £'ooo £'ooo £'ooo 73,031 1,548 2,222 (2,310) 255 77 4,140 1,844 80,818 2,301 2,035 275 42) 290 589 1,255 761 82,358 75,068 1,460 4,285 18,968 1,535 207 31 {42) 196 3,229 173 (127) 3,275 1.750 63 589 1,224 24,154 1,802 7581 25,198 20,503 94 48 1,010 911 31 94 57,160 56,664 12. SECURITIES INVESTMENTS Group investments Balance at 1 August 2023 New money invested from realised gains New money invested Reinvested Income Investment management fees Increasel(Decreasel in value of investTnents Group Investments at 31 July 2024 Balance at 1 August 2023 Investment in Subsidiary Subsidiary investment in Joint Venture 3,961 3,930 7,185 7,218 620 41 {26) 848 8,668 1,605 41 {261 576 4,552 198 40 (24) 15 3,961 198 40 124) 49 7.185 1.246 411 1,194 9,862 359 1,605 8.790 198 4,750 198 4,159 School Investments at 31 July 2024 Investments comprise: Listed investments Equities Cash Group investments Investment in Subsidiary Subsidiary investment in Joint Venture 4,501 51 4,552 198 3.946 15 3,961 198 8,617 51 8,668 7,170 15 7.185 1,194 1,605 198 198 1.194 1,605 4,750 4.159 9,862 8,790 In addition to the above investments, cash balanrRs within the Fees in Advance Schème are included in current assets as ash deposits. The main Securities investments are managed for the School by Brewin Dolphin Ltd. All investments are managed and held in the UK. Original cast of investments held at 31 July 2024 is £2.286m {2023 - £2.079m) The School has invested £198,001 in Cranleigh Educalion SeTvices Ltd purchasing all 100 shares. Cranleigh Education Setvices Ltd also has a 50Yo share in CR Education Ltd a United Arab Emirate Joinl Venture in relation lo the construction, operation and management of a school in Abu Dhabi. Cranleigh Education Services Ltd hold5 50 shares with a nominal value of Dirhams 1000 each. With the school having opened in September 2014. Cranleigh Education Services Ltd now incorporates 700/0 of the Joint Venture profit to the 31 July. The subsidiary's share of turnover for the year ended 31 July 2024 was £955k {2023= £938k) with a net loss of {£413k) {2023-. Profit £453kl and the aggregate share of assets, liabilities and funds of the Joint Venture is £1,186k {2023- £1.599kl. School investments 33 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 School 2024 £'ooo School 2023 £'ooo Group 2024 £'ooo Group 2023 £'ooo 13. DEBTORS Fees Sundry debtors Prepayments Staff loans Amounts due from Cranleigh Education SeNices Ltd Gift aid donations from subsidiary companies 106 66 374 40 570 418 23 1,455 374 40 23 60 455 1,094 1.633 2,122 1,017 1,878 All debtors are due within one year, except for £8k (2023: £17k) of staff loans, which are due after more than one year. The above fees are net of bad debt provision £123k (2023-. £198k). School 2024 £'ooo School 2023 £'ooo Group 2024 £'ooo Group 2023 £'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 to Cranleigh Enterprises Ltd Other creditors and accruals 1,306 1,094 2,231 735 1,438 552 2,316 772 26 2,849 7,953 995 8,948 1,306 1,094 2,231 735 1,438 552 2.318 772 3,389 8.755 6,965 15,720 3,537 8,903 6,965 15,868 3,183 8,261 995 9,256 Advance fees (see Note 16) School 2024 £'ooo School 2023 £'ooo Group 2024 £'ooo Group 2023 £'ooo 15. CREDITORS . amounts falling due after one year Bank loans (see Note 17) Advance fees (see Note 16) 6,772 12,086 18,858 10,124 1,525 11,649 6,772 12,086 18.858 10,124 1,525 11,649 34 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 16. ADVANCE FEE PAYMENTS Parents may enter into a contract to pay to the School up to the equivalent of 10 years, luition fees in advance. The amounts received are treated as deferred income and form part of the School's working capital. Fees are taken to income for each term as the relevant pupils progress through the School. Advance payments may be returned subject to specific conditions on the receipt of one term's notice. 2024 £'ooo 64 12.022 6.965 2023 £'ooo 55 1,470 995 Assuming pupils will remain in the School, advance fees will be applled as follows = After 5 years Within 2 to 5 years Wilhin 1 year (Note 14) 19,051 2.520 The balance represents the accrued liability under the contracts. and the movements during the year we￿. £'ooo 19,051 Amounts ulilised in payment of fees- 17. LOAN FINANCE Credit facilities with Handelsbanken a￿ ¢UTrenlly in place. on which interest is payable at normal commercial rates. The loan facilities are secured by separate First Legal Mortgages executed by the School over certain freehold properties owned by the School. The structure is shown in the following table. £'ooo 1,000 Bank of England base rale + 2.10Yo revolving credit facility expiring 28 March 2025, £3m available, £2m ulilised 4.22 /4 Fixed rale amortizing credit facility expiring 26 July 2027 8,078 The facilities are repaid by quarterly instalments with the exception of Ihe ￿VOlvIng credit which is repayable on maturity. All facilities mature as follows= 2024 £'ooo 5,527 1,245 1,306 2023 £'ooo 8,306 1,818 1,438 After 5 years Within 2 to 5 years Within 1 year 8.078 11,562 In addition there is a revolving current account overdraft facility from Handelsbanken of £3m expiring on 30 September 2025. 35 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 18. STATEMENT OF FUNDS Balance 1 August 2023 £'ooo Gainsl (Losses) £'ooo Balance Transfers 31 July 2024 £'ooo £'ooo Income Expenditure £'ooo £'ooo Foundation 3.591 359 {8) 272 4,214 Total restricted funds 3,591 359 (8) 272 4,214 Total unrestri¢ted funds 50,479 36,570 (35,254) 576 52,371 Total funds 54,070 36,929 (35,262) 848 56,585 The funds of the Foundation are considered to be restricled given the aims and objects are narrower than the School and as such are accounted for as a restricted fund in the Group. 19. COMPARATIVE STATEMENT OF FUNDS Balance 1 August 2022 £'ooo Gainsl (Losses) £'ooo Balance Transfers 31 July 2023 £'ooo £'ooo Income £'ooo Expenditure £'ooo Foundation 3,351 397 (93) (641 3,591 Tolal restricted funds 3.351 397 (93) (64) 3,591 Total unrestricted funds 47,735 35,124 {31,945) (435) 50,479 Totsl funds 51,086 35,521 {32,038) {499} 54,070 20. PENSION SCHEMES Retirement benefits to employees of the School are provided through two defined benefit schemes and one defined contribution scheme, which are funded by the School's and employees, contributions. Defined benefit s¢hemes TeaGhers' Pension Scheme The School participates in the Teachers, Pension Scheme (Yhe TPS") for its teaching staff. The pension charge for Ihe year includes contributions payable to the TPS of £1.789k {2023'. £1,932k) and at Ihe year-end £148k (2023: £221 k) was accrued in respect of contributions to this scheme. The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers, Pensions Regulations 2010 (as amended) and The Teachers, Pension Scheme Regulations 2014 (as amended). Members contribute on a °pay as you go" basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. The employer conlribulion rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary's Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2020 and the Valuation Report, which was published in October 2023. 36 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 20. PENSION SCHEMES (continued) 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 to 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 rate for the TPS would increase from 23.6¥0 to 28.60/0 from 1 April 2024. Employers are also required to pay a scheme administration levy of 0.08 % 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 to new members with effect from 1 January 2013, though it remains open to existing members. As of 1 January 2013, the School established a generous defined contribution scheme for new employees {see page 39). Contributions are made to 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 at 22.50/0. In addition the School paid contributions totalling £89,400 in respect of the past service deficit. At 31 July 2024 £0 was accrued in respect of pension contributions to this scheme (2023-. £0). 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 2 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 calendar month to fund the past service deficit. The School has provided £119k to cover the potential cost of meeting the possible commitment to pay additional guaranteed minimum pension (GMP) 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 2024 by £1,291,000. 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 accordance with FRS102. Cranleigh Schol is aware of the Virgin Media v NTL Pension Trustees11 Limited Court of Appeal judgement which may give rise to adjustments to the Cranleigh School Pension Scheme. At present the legal process is incomplete and therefore we are unable to quantify any potential liabilities. 37 CR4NLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 20. PENSION SCHEMES (continued) 2024 £'ooo 2023 £'ooo (a) The amounts recognised in the balance sheet are as follows Present value of funded obligations Fair value of plan assets (17,165) 18,456 (15,993) 17,260 less asset not recognised (1,291) (1,2671 Surplus amount shown in the balance sheet 2024 £'ooo 2023 £'ooo (b) Changes in the present value of the defined benefit obligation Opening defined benefit obligation Service cost Interest cost Actuarial lossl(gain) Benefits paid 15,993 275 825 744 672) 19,616 322 685 (4,008) 622) Defined benefit obligation at year end 17,165 15,993 2024 £'ooo 2023 £'ooo (c) Changes in the fair value of the Scheme assets Opening fair value of the scheme assets Interest on assetslExpected return Actuarial gainl(loss) Employerfs contributions Employees, contributions Benefits paid 17,260 901 489 386 92 (672 21,297 753 (4,639) 380 91 622 Closing assets at year end 18,456 17.260 2024 £'ooo 2023 £'ooo (d) Amounts included within the Statement of Financial Activities Current service cost Past service cost {GMP equalisation) Expected return on scheme assets Interest on pension liabilities 1,291 1,267 901 825 753 685 Total amount charged to the Statement of Financial Activities 1,367 1.335 Net Actuarial gainsl(losses) 255 631 less asset not recognised 255 181 Net Actuarial gainsl(losses) recognised in the year (450) Net Cumulative actuarial gainsl(losses) The School expects to contribute £311 k to the scheme in 2024125 38 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 20. PENSION SCHEMES (continued) 2024 £'ooo 2023 £'ooo (e) Reconciliation of movements in Present Value of Plan . Liabilities and Assets Net asset l (liability) at the beginning of the year Movements in the year.. Employer's current service cost Employels past seNice cost Employer's contribution Net interest on the defined benefit asseuliability Actuarial gain5 less scheme asset not recognised (183) (231) 386 (76) 345 380 (68) 314) Net asset l {liabilityl at the end of the year 472 {233) (fj The categories of scheme assets as a percentage of total assets 2024 2023 Equities Bonds Annuities Cash 20 76 38 58 (g) Principal assumptions at the balance sheet date {expressed in percentages as weighted averagesl 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 relirement age 65 Retiring today- males Retiring today - females Retiring in 20 years - males Retiring in 20 years- females 4.95 5.25 5.75 3.00 3.65 3.20 2.30 3.00 3.75 3.20 2.60 20.8 23.4 22.1 21.1 23.5 22.4 25.0 (h) The amounts for the current and previous periods are . 2024 £'ooo 2023 £'ooo 2022 £'ooo 2021 £'ooo 2020 £'ooo Defined benefit obligation Scheme assets Deficit Experience adjustments on liabilities Experience adjustments on assets 117,165) (15,993) (19,616) {26,861) (27,136) 18.456 17,260 21,297 27,094 24.926 (2,210) 491 1.194 234 (5,270) (3,629) (4,639) (5,121) 4,381 1,900 Defined contribution scheme The Cranleigh School Group Personal Pension Plan started in January 2013 for teaching and non-teaching staff. This is a money purchase group personal pension scheme managed by Aviva. Basic contributions are 4/0 for the employee and 8 % for the employer. The employer's contributions are charged in the Statement of Financial Activities in the period in which the salaries to which they relate are due. The employerfs contributions in the year amounted to £505,527 (2023: £309,644). At 31 July 2024 £0 was accrued in respect of pension contributions to this scheme (2023 . £0). 39 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 21. FINANCIAL INSTRUMENTS The Charity has financial assets and financial liabilities of a kind that qualify as basi¢ financial instrurnents. Basic financial instrumenls are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method. Financial assets held at amortised cost comprise cash and bank and in hand, together with trade and other debtors. Financial liabilities held at amortised Cost comprise bank loans and overdrafts, trade and other creditors. At the balance sheet date the Charity held financial assets at amortised cost of £24,027k {2023-. £9,306k). Flnancial assets at fair value through income or expenditure of £Qk (2023.. Nil) and Financial liabilities at amortised cost of £34.726k (2023: £20,905k) 22. RELATED PARTY TRANSACTIONS The Head of Cranleigh School is also the trustee of 1170. This charity has used the facilities of Cranleigh School for fundraising meetings. There was no charge for these services and there were no amounts owed to the School at 31 July 2024 (2023.. Nil) The School rents a residential property from the Chaimian of the Governing Body (Mr A J Lajtha) for the housing of school staff. The school pays 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 2024 (2023- Nil) There have been no other related party transactions that require disclosure other than transactions with other group entities. as set out below.. In 2024 the Charity charged Cranleigh Enterprises Limited minibus running costs totalling £45,180 {2023: £44,280). This is calculated as a fee per term based on fuel and maintenance costs. In 2024 Cranleigh Enterprises Limited charged the Charity minibus usage costs totalling £71,424 (2023: £70,020}. This is calculated as a fee per term based on the reasonable wear and tear of the vehicles. In 2024 Cranleigh Enterprises Limited charged the Charity ststionery and book costs totalling £103,497 {2023- £74.400). This is based on the recommended retail price. 23. CAPITAL COMMITMENTS As at 31 July 2024 the Group had capital commitments of £277k for the works on the Catering project to improve the servery and kitchen at the Senior School. 24. OPERATING LEASES As at 31 July 2024 the Group had the foll0v￿ng non-cancellable operating leases, payable as follows.. 2024 £'ooo 2023 £'ooo Within 2 to 5 years Within 1 year 19 29 48 19 19 40 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 25. CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES - COMPARATIVE FIGURES Unrestricted Funds 2023 £'ooo Restricted Funds 2023 £'ooo Total Funds 2023 £'ooo INCOME FROM: Charitable activities School fees Other income other trading activities 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 30,947 1,199 30,947 1,199 2.257 116 361 2,257 116 361 40 106 90 130 106 98 282 25 397 380 25 35,521 35,124 EXPENDITURE ON: Raising funds Trading costs Share of loss from Joint Venture Other income-generating activities Financing costs Investment management Fundraising and development Total deductible costs 606 606 604 24 604 24 1,234 1,237 Charitable activlties Education and grant making 30,711 90 30,801 Total expenditure 31,945 93 32,038 NET INCOMING FUNDS FROM OPERATIONS BEFORE TRANSFERS AND INVESTMENT GAINS 3,179 304 3,483 Gainsl(losses) on investments 15 164) (49) 3,194 240 3,434 NET INCOME AND CAPITAL {INFLOW) Transfers Penslon scheme actuarial (loss)Igain 450) 450 NET MOVEMENT IN FUNDS FOR THE YEAR FUNDS BIFWD 1 AUGUST 2022 2,744 240 2,984 47,735 3,35 51,086 FUNDS CIFWD 31 JULY 2023 50,479 3,591 54,070 41 CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 26. ALLOCATION OF NET ASSETS TO FUNDS Fund balances at 31 July 2024.. Unrestricted Funds £'ooo Restricted Funds £'ooo Total Funds £'ooo Fixed assets Current assets Current liabilities Long term liabilities 67,022 24,202 (15,868) {18,858) 67,022 24,289 (15,868) (18,858) 87 Total net assets 56,498 87 56,585 27. COMPARATIVE ALLOCATION OF NET ASSETS TO FUNDS Fund balances at 31 July 2023 Unrestricted Funds £'ooo Restricted Funds £'ooo Total Funds £'ooo Fixed assets Current assets Current liabilities Long term liabilities 65,454 9,434 (9,256) (11,649) 65,454 9,521 (9,256) (11,649) 87 Total net assets 53,983 87 54,070 28. PRIOR YEAR ADJUSTMENT The financial statements include restatements relating to the item summarised below: 2023 £'ooo 2022 £'ooo Facilities and trading income 345 694 Total incoming resources as previously stated Total incoming resources restated 35,176 35,521 32,193 32,887 Total funds as previously stated Total funds as restated 53,031 54,070 50,392 51,086 The financial accounts for 2022 and 2023 include a technical consolidation adjustment that sought to remove intercompany trading be￿een CR Education Ltd and Cranleigh Education Services Ltd which is not required under FRS102.14.8(e). These have been adjusted by way of a prior period adjustment and reconciliation bel￿een previously reported balances. Restated balances are disclosed above. There is no impact on the cash position. CRANLEIGH SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED, FOR THE YEAR ENDED 31 JULY 2024 THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK