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2023-08-31-accounts

CHEADLE HULME SCHOOL Report and Financial Statements - Year Ended 31 August 2023

Cheadle Hulme Schoo!

Report and Financial Statements

Year ended 31 August 2023

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Cheadle Hulme Schoo!
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Registered Charity No. 1077017

Company No. 03823129

CONTENTS - Annual Report ofthe Directors Page
Section A - Key Information
Legal and Administrative Information 1-3
Objectives, Construct and Aims 4
Structure, Governance and Management 4-7
Principal Risks 7
Section B— Financial Review
Statement of Financial Activities 8
Balance Sheet 8
Statement ofCash Flows 8
Reserves, investment policy and financial factors 9
Statementof Directors Responsibilities 10-12
AnnexA - Energy Data 13
Annex B - The School's Strategic and Operational Plans 14-15
AnnexC - Employment, Communication and Training 16-17
Independent Auditor’s Report 18-21
Statement of Financial Activities 22
Balance Sheet 23
Statement ofCash Flows 24-25
NotestotheFinancialStatements 26-46
Resigned 15/01/24 Resigned 15/01/24
Resigned 11/12/23 Resigned 11/12/23

CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023 OFFICERS

Mr N Smith Head Mr W James Chief Operating Officer, Company Secretary and Clerk to the Governors

Solicitors: The School has used a number of specialist legal advisors during the year.

Auditor: Crowe U.K. LLP Chartered Accountants, member of Crowe Global 3rd floor, The Lexicon Mount Street Manchester M2 5NT Bankers: Santander UK ple 4 St Pauls Square Liverpool L3 9SJ Barclays Bank PLC P.O. Box 357 51 Mosley Street Manchester M60 2AU Website: www.cheadlehulmeschool.co.uk

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CHEADLE HULME SCHOOL

Report and Financial Statements — Year Ended 31 August 2023

REFERENCE AND ADMINISTRATIVE INFORMATION

Cheadle Hulme School is a company limited by guarantee with no share capital and is a registered charity under the auspices of the Charity Commission.

School Address: Claremont Road Cheadle Hulme Cheadie Cheshire SK8 6EF

Company No: 3823129

Charity No: 1077017

Taxation

As an educational charity, the School is eligible for a corporation tax exemption on its educational activities and investment income, provided these are applied to the School's charitable aims. The School is also entitled to an 80% reduction in business rates on the property occupied for charitable purposes. The School is, however, unable to reclaim VAT input tax on costs, as it is exempt for VAT purposes.

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CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

OBJECTIVES, CONSTRUCT AND AIMS

Cheadle Hulme Schoo! was founded in 1855. It has been situated on its present site, now occupying about 75 acres of ground, since 1869. The purpose of the School, at its foundation, was to educate, maintain and clothe Orphans and Necessitous Children of Warehousemen and Clerks in the Manchester area (Waconians, or WACs). The founders declared that the School should be established and conducted on the most liberal principles and be open for the reception of children of both sexes. The broad wishes of the founders are maintained to this day and, as a consequence, the School has a distinct, inclusive and friendly atmosphere: Academic, Active and Altruistic.

Cheadle Hulme School is a co-educational day School for 3 to18 year-olds, that believes in the intellectual, personal and social value of girls and boys learning alongside one another in preparation for the realities of the adult world. The School aims to provide a balanced approach to academic and co-curricular excellence, blended with a pro-active and inclusive pastoral tradition, which leads its pupils to engage in positive roles in their communities and beyond.

The School builds upon its motto of ‘in foco parentis’ by providing the highest levels and quality of pastoral care. Teachers and other staff are committed to supporting the wellbeing of every pupil. Leadership, teamwork, personal responsibility and resilience are important elements of the pastoral education the pupils receive.

The School continues to value its heritage by endeavoring to support pupils whose family incomes would otherwise prevent them from accessing and benefitting from the education on offer; the School's Financial Assistance Scheme also supports the School in improving a more diverse social and ethnic mix of pupils.

The School's Mission, Vision and Values are contained at Annex A.

Detailed information about delivery of these objectives can be found in the Cheadle Hulme School Impact Report 2023 with more information about Schoo! Performance, School Activity, Pastoral Care, and Environmental Activity.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Documents

The School is governed by its Articles of Association, updated and approved by the Board of Directors on 27 April 2022 and accepted by both the Charities Commission and Companies House.

Governing Body

The Board of Directors (the Board) is a self-appointing body comprising up to fourteen Directors. The term of office for each Director is renewable by approval of the Board after a specified period, usually of either two or three years.

Recruitment and Training of Directors

An ‘as required’ Nominations Committee monitors the composition of the Board and makes recommendations to ensure the Board comprises members with a wide range of skills and experience. The Board seeks to ensure that at least two of the Directors are current parents of pupils attending the School. While there is no specific requirement for former pupils (Old Waconians) to be on the Board, there is a long history of this which continues to be the case.

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CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

Directors (known as Governors) are recruited based on their skills, experience and competence. They must have a passion for the work of the Schoo! and a broad understanding of education in terms of its positive impact on personal growth. Current Board members have experience in the following areas:

e Property Development e Medical e Legal

As a co-educational School, the Board includes an appropriate balance of male and female Directors. New Directors have a bespoke induction organised for them, to include meetings with the Chair, Head, Chief Operating Officer and other key personnel, to develop understanding of how the School functions, its key policies and procedures and their roles and responsibilities.

Ensuring Good Governance

The Board is committed to the principles of good and ethical governance. The Board uses its sub-committee structure, (table on page 3), to objectively scrutinise different elements of the School’s progress and performance. The Board carries out periodic skills and effectiveness reviews of its own construct. Board members are aware of their responsibilities to ensure compliance with statutory and other guidance relevant to its status including as a provider of education, a charity, a company, and as an employer. The School has clear procedures for risk management, anti-fraud, bribery/corruption, procurement, gifting, behaviours, declarations of interest, complaints and whistleblowing. Its policies are subject to dated review, overseen by Board members.

At the start of each academic year, Directors are required to confirm that they understand their safeguarding obligations, key policies and expectations, and sign the:

Directors are also expected to observe aspects of School life on a periodic basis during normal School days, to include monitoring how policies and procedures are implemented.

Organisational Management

Board members are both Directors and Charity Trustees, and are legally responsible for the overall performance and control of the School (Junior and Senior). The Board meets at least five times per year and holds Away Days with the Senior Leadership Team as appropriate.

The Head, Head of Junior School, Senior Deputy Head and the Chief Operating Officer attend all Board meetings. Other members of SLT and staff attend by invitation

All Board sub-committees are chaired by a Governor and include a further 1-3 Governors. They typically meet termly, with out-of-committee circulation to maintain pace on pressing

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CHEADLE HULME SCHOOL Report and Financial Statements ~ Year Ended 31 August 2023

matters. Each sub-committee also includes key senior staff members and other representatives as appropriate. The Governing Board reviews its sub-committees periodically to ensure they are configured to conduct key business and support the School in its strategic aims. The Head is responsible for overseeing all aspects of the day-to-day running of the School. The Chief Operating Officer and their team manage financial, infrastructure, site operations, information technology, human resources and governance matters. The Head is supported by the Senior Leadership Team (SLT) (image below). The SLT has authority and day-today responsibility for planning, directing and controlling the operational and educational activities of the charity.

Senior Leadership Team:

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The protocol for setting remuneration for the Senior Leadership Team is:

Group Structure and Relationships

Cheadle Hulme School incorporates both the Junior and Senior School. It has one wholly owned subsidiary, Cheadle Hulme School Enterprises Ltd, established on 14 May 2013, to manage the School's lettings activities. Consolidated Financial Statements have not been prepared on the grounds that the subsidiary is not material.

The School has an ongoing relationship with the Cheadle Hulme School Bursary trust (formerly the Cheadie Hulme School 150th Anniversary Bursary Trust.) The School's External Relations team raises funds for bursaries that are invested and managed by the CHS Bursary Trust using a professional advisor. Total funds within the Trust amount to approximately £4.5m. The Chair of the Trust is also a School Governor. Three other Trustees are also Governors of the School. However, the Trust is an independent charity with its own articles and objectives; to apply the trust funds to pay all or any part of the fees and related costs payable in respect of deserving boys and girls who are being educated

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CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

or wish to be educated at Cheadle Hulme School in particular but not exclusively to include school uniforms, school lunches, personal educational equipment, school trips and transport to enable the pupils to attend Cheadie Hulme School.’

Old Waconians. All former pupils and staff are considered to be Old Waconians.

Parents’ Association. The CHS Parents’ Association is a separate organisation, consisting of volunteer parents who arrange events in coordination with, for and on behalf of the School to raise funds to provide additional experiences, equipment or support for non-core activities.

More detail about the work of the Cheadle Hulme School Bursary Trust and the Parents Association can be found in the 2023 Cheadle Hulme School impact Report.

PRINCIPAL RISKS

Risk Management

The Board, assisted by the SLT, has examined and documented the major risks that the School faces. The School's Risk Register is compiled in accordance with the Charity Commission's "Charities & Risk Management" framework and is consistent with the Commission's Statement of Recommended Practice (SORP) 2015.

The School actively manages its key risks and has developed systems including a rolling ‘deep dive’ review, to minimise likelihood of harm to individuals or their families, reduce operational impact, and, reduce financial or reputational impact to the School. The key accumulated risks are: financial shock, compliance, safeguarding, cyber, fire, sports/games injury, travel, trips, lone-working, estate management and compliance. Changes (or predicted changes) to tax, pension cost increases, living wage rise, business rate relief, charitable status, commodity/utility costs, inflation, workforce, the outcome of court rulings, recession, the potential for industrial unrest and environmental obligations are all within sight of the Board.

Directors review the key risks, compliance and mitigating actions on a regular basis via the sub-committees, in direct discussion with key staff and/or via a dedicated Risk Committee.

The School's finances remain under very careful review.

The strategies for managing and mitigating these key risks included:

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CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

SECTION B: FINANCIAL

Statement of Financial Activities

The School aims to make an annual surplus on its unrestricted funds, before depreciation, of 10% of income, in line with the latest guidance from the Independent Schools Bursars’ Association and from the School's auditors — Crowe LLP. A surplus of this level means the School can generate sufficient cash reserves to ensure it has an appropriate level of resources to maintain and enhance School facilities, and have sufficient working capital. This year, the School has not met the target of 10%, but has achieved a surpius on its unrestricted funds, before depreciation and transfers of £1.77m (2021-22: £1.64m). This represents 9% of income (2021-22: 9%). After accounting for depreciation, the Retained Surplus for the Year on unrestricted funds amounted to £0.8m (2021-22: £0.8m).

Compared to the prior year, the School has maintained its Retained Surplus level, despite continued macro-economic pressures, most notably wage inflation pressures, utility costs, food, transport, maintenance and materials costs affecting all areas of schoo! activity. This has been achieved because of continued strong pupil numbers.

Fees continue to be the main source of funding, representing 91% of total unrestricted income. School catering accounts for approximately 5% and individual donations for financial assistance represent over 1%. Income from lettings to community groups and other third parties i.e., CHSE, is less than 1%. Bank interest was earned in the period, representing less than 1%.

Balance Sheet

The School's Net Assets have increased by £0.82m.

Tangible Fixed Assets are £20.9m net of depreciation (2021-22: £20.9m). The School undertook planned small scale refurbishment projects during the summer months to enhance facilities for students. In addition there was investment in streamlining and improving the robustness of the technology used by teaching staff and the final phase of the LED light installment also took place during the year.

Cash at Bank and in hand has decreased to £4.0m (2021-22: £4.5m) and Creditors falling due within one year have decreased to £3.6m (2021-22: £4.5m), primarily reflecting the change in collection of fees to a 10 month direct debit with payments spread from September to June. (from the previous 12 month direct debit where payments were spread from July to June.). Also the reduction in trade creditors is a result of fewer capital works carried out at School in the summer break in August 2023 compared to August 2022.

Overall, net current assets have increased to £0.90m. (2021-22: £0.35m.)

Creditors: Amounts falling due after more than one year have reduced to £2.7m (202122:£3.0m) reflecting the bank loan repayments and repayments of the finance lease for the first phase of the LED lighting upgrade.

The School has bank toans totaling £1.95m.

The School's pension liabilities are summarised in note 22 in the accounts.

Cash Flow Statement

The Net Decrease in Cash for the year was £0.4m (2021-22: positive £0.3m). This reflects the change in direct debit fee collection options resulting in lower fees paid in advance of the balance sheet date.

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CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

Reserves

Total reserves amounted to £19.1m at 31 August 2023 (2021-22: £18.2m), of which £80k (2021- 22: £84k) is restricted.

The School has free reserves of £0.2m (2021-22: £0.5m negative free reserves). This is calculated by taking unrestricted reserves of £18.2m deducting Tangible Fixed Assets of £20.9m and adding back Loans of £2.2m.

The School has slowed investment of its reserves in 2022-23 in order to preserve cash at this time.

The School ensures it has sufficient cash balances to cover its day-to-day operations. Bank borrowings are carefully monitored.

Historically, the Directors have aimed to maintain free reserves at around zero, whist the planned estates capital programme was completed. However, due to a rapid and significant change in the cost of capital works at this time, there has been a deliberate slowing of investment.

Investment policy and objectives

The School does not hold any long-term investments. Surplus cash is held in instant access bank accounts with the best interest rate available. Directors periodically review the banks used by the School. However, there are no restrictions on the School's power to invest.

Financial Factors

To ensure the School continues to have financial stability and the resources necessary to provide the high standard of education facility and staff that parents and pupils expect now and in future years, the School prepares and regularly updates 4-year financial projections incorporating scenario and sensitivity analysis.

As fees are the School's primary source of income, the School works with parents to ensure prompt payment of fees. For those parents having difficulties with payment of fees, the School takes action to reach arrangements for ongoing payments. The School does utilise external debt collection agencies.

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CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

Directors’ Responsibilities

The Board is confident that the Directors have complied with their duties in section 172 (1) of the Companies Act. All key decisions are taken collectively by the Board. Board papers comprise comprehensive information detailing the risks and opportunities facing the School and decisions are taken about promoting the long-term sustainability of the Schoo! for its pupils, parents, staff, suppliers and local community. All decisions taken are considered carefully to ensure they are justifiable, appropriate and that they will benefit the School and the environment it operates in.

Section 172 (1) Statement

The Board of Directors have a duty to act in the best interests of the Schoo! and also in the best interests of its pupils, staff, parents and other stakeholders, as recognised beneficiaries under charity law. The Directors fulfil this duty by considering the long-term factors affecting the School and their impact on its pupils, staff, parents, partners, suppliers and local community. The School's commitment to providing an excellent education for its pupils is the key driver within its Strategic plan and in its target of continued financial sustainability. The School ensures that engagement with pupils, staff, parents, carers, partners and other stakeholders informs the Board of Directors’ decision making. Engagement takes place in a range of ways:

Pupils

Pupil representatives have continued to meet regularly as part of the CHSenate, which meets in the Lower School, Upper School and Sixth Form to discuss key areas for review and improvement. Pupils have been encouraged to give feedback on a range of issues on an informal basis to their Form Tutors whilst more formal pupil surveys have been conducted each term on a year group basis. The pupil surveys covered all aspects of School! life and helped identify issues which have arisen or were likely to affect the pupils’ experience of School. In addition, pupils in Year 10 have been participating in the #Beewell survey, a longitudinal study of pupil wellbeing across Greater Manchester.

Parents/ carers

The School continued to conduct parent/ carers surveys each term on a year group basis. It also encouraged feedback from parents at parent information evenings and by facilitating direct contact with teaching staff and members of the Senior Leadership Team. The School also held a number of parent forums and parents were given the opportunity to provide feedback on the School's delivery and performance.

Staff

The Employee Involvement section at Annex C details how the School engages its staff.

Communities

The School actively and directly engaged with the community groups who use the School's facilities in the evenings, weekends and holiday periods to ensure suitable risk assessments and training were in place and that the services provided by the

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CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

School met their needs. Wider partnership, community outreach and engagement impact is covered in Part 1 of the Annual Directors Report.

Partners & Suppliers

The School relied on its key suppliers and contractors for delivery of goods and services. Appropriate measures were taken to ensure value and price was fairly assessed and that the contracts awarded met the needs of the School. Contracts are evaluated, with termly performance meetings; A tender process is conducted, as appropriate, when significant fixed-term contracts expire. The main suppliers are Sodexo for catering, British Gas for utilities and Premiserve for cleaning.

DIRECTORS’ RESPONSIBILITIES

The Directors are responsible for preparing the Directors' Report and the financia! statements in accordance with applicable taw and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors 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 company and of the income and expenditure of the company for that period. In preparing those financial statements, the Directors are required to select suitable accounting policies and applied them consistently:

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

GOING CONCERN

The Directors have due regard for the going concern of the Charity. The School prepares a detailed budget for the 12 months ahead as well as financial projections for at least a further 3 years. Actual performance is monitored at least termiy and cash balances are managed daily. The School continued to have strong pupil recruitment and made a positive Income and Expenditure surplus which it uses to reinvest in its facilities. The Directors continue to undertake planning and forecasting including closely monitoring the UK political and economic situation and its possible impact for the School, including workforce availability and wages pressures and the implications of any changes to UK taxation as it applies to independent schools. The directors also keep under review the short and long-term impact of geopolitical conflict including issues in supply chains, energy costs and other materials costs. Directors believe that the school’s financial resources and contingency planning is sufficient to ensure the ability of the School to continue as a going concern for the foreseeable future, being at least twelve months from the date of approval of these financial statements and therefore have prepared the financial statements on a going concern basis.

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CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the Directors are aware:

The Directors have also taken all reasonable steps to comply with their obligations as set out by the Charity Commission to act in the best interests of the charity and comply with their legal duties under charity law, including their duty of prudence.

Approval

This report was approved by the Boardon / / L17-Q/ - CLE

Chris Roberts Director

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CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

ANNEX A: Energy Data

The School has begun using Planet Mark to monitor and report energy use across the School site. Planet Mark is an annual assessment and sustainability certification programme which provides a robust baseline to enable continuous improvement and target setting to reduce the carbon emissions and energy consumption of the School operations and its estate.

In Year 1 of the accreditation, the installation of site-wide LED lighting significantly towered electricity utilisation, and data reporting quality assurances through Planet Mark has seen an improvement in data capture (which has seen an increase in energy data reported), but through a programme of engagement and communication, the School has been able continue to drive progress across energy saving measures and to drive behavioural change resulting in an overall reduction in energy use and associated greenhouse gas emissions.

More details about the School’s commitment to saving energy can be found in the 2023 Impact Report.

Energy use (kWh) 3,984,556 4,480,208
Associated 719,950 730,411 847,930
Greenhouse gas
emissions(TonnesCO2 CO2
equivalent)
Intensity ratio 475 575
Emissionsperpupil

Associated greenhouse gases have been calculated using the conversion factors from the Department for Business, Energy, and Industrial Standard, and using an average pupil number of 1516. Intensity ratio of emissions per pupil is higher than 2021-22 due to a reduction in pupil numbers.

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CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

Annex B: The Schooil’s Strategic and Operational Plans

The School is implementing a new Strategy for 2030 and beyond for the coming academic year, following external, Board and SLT development throughout 2021/22:

The School's Mission (what we do):

Our Mission is to provide a dynamic, holistic education within an inclusive, values driven environment, consistent with the School's foundation.

The School's Vision (what we aspire to become):

Our vision is to develop and foster in all members of the Schoo! community a desire to learn, question, persevere in all that they do, and to embody our Waconian Values. We will enable our pupils to flourish in their lives whilst at CHS but also beyond, thus making a positive impact in the world around them.

The School's Values: These are our core principles and beliefs:

Our 5 Waconian Values underpin and guide all aspects of life at CHS, whilst also providing a strong sense of identity, and purpose for the whole School community. These are: integrity, Endeavour, Compassion, Resilience and Contribution

We aim to provide all members of our community with the confidence and courage to thrive at Cheadle Hulme School and beyond. We have established three strands within and across our strategy which reflect our plans and priorities for the whole CHS community and to help us create a sustainable future for the School. These are to:

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CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

The framework of Inspire, Empower and Sustain is used across business and academic development plans and each of the SLT (and their responsible areas) show progress to the Board through termly oversight reporting.

The main influences on the plan include:

The key themes emerging from the plan are:

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| CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

ANNEX C: Employment, Communication and Professional Development

The School is an equal opporiunities employer. It has clear and transparent recruitment procedures that adhere to employment law, best practice and Department for Education guidelines. The School considers all job applicants equally and against predetermined criteria required for the post. The School undertakes to make all reasonable adjustments to ensure that any applicant who fulfils the criteria, can be offered an interview.

The School meets its obligations in relation to safeguarding; it meets safer recruitment standards and undertakes any checks necessary to ensure the suitability of any staff or volunteers working with children.

Development

The School has a clearly defined development cycle for all employees. Different systems are used for teachers and non-teachers, due to the nature of their roles. These systems are designed to encourage regular conversations between employees and their line managers, focussing not only on professional development and growth but also on wellbeing, work satisfaction and longer-term team plans.

The School runs its own development programmes for Recently-Qualified teachers, and aspiring Senior and Middle leaders. The Schoo! has an annual budget for CPD activities, accessible to both teaching and non-teaching employees. There are professional learning community meetings for teachers which take place twice a term and weekly breakfast CPD sessions.

Wellbeing

Staff wellbeing is key to the School's appeal and success. School provides staff coaching and mentoring for professional and personal development and operates an Employee Support Scheme: an external organisation is on hand 24/7 to provide a broad range of advice and support (personal and work-related) on a confidential basis to all School staff. All staff have access to the internal HR department who offer support and guidance on wellbeing matters.

Benefits

The School's employment contract also includes various benefits: access to the School's fitness and pool facilities for staff and their families; on-site parking; lunches; access to Private Medical insurance; and partial-fee remission for staff with children in the Senior School. These benefits are regularly reviewed for impact, uptake and perceived value to the staff.

Employees with disabilities

The School undertakes to make ali reasonable adjustments to ensure that any candidate applying for a role at the School, and who is deemed appointable, would be able to carry out their duties effectively. Any member of staff with a disability, or who becomes disabled during their employment, will not be disadvantaged in their opportunities for training and development.

Where appropriate, specialist training or resources are made available to allow them to develop their skills and career opportunities.

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CHEADLE HULME SCHOOL

_Report and Financial Statements — Year Ended 31 August 2023

All employees are expected to treat disabled colleagues, pupils and visitors with the same dignity and respect as their non-disabled counterparts. Any form of harassment of a person with a disability on account of their impairment is unacceptable behaviour and is potentially unlawful under the terms of the Equality Act 2010 and the Protection from Harassment Act 1997.

The School has a rolling programme of improvements within an estate plan to offer improved access and facilities for disabled staff, pupils and visitors, to include genderneutral and inclusive toilets/washrooms and the facility for the observance of normal religious practices. Employee Involvement The School operates a framework for employee information and consultation which complies with the requirements of the Information and Consultation of Employees Regulations 2004. The School actively consults with its employees or their representatives with the aim of taking the views of employees into account where decisions are made that are likely to affect their interests e.g. working practices, pensions, other benefits and curriculum. Within the Senior School, teaching staff meet termly to discuss issues pertaining to their experience and these issues are raised with the Head following each meeting, whilst a whole School staff voice group also meets termly. The School involves employees in discussions regarding the development of the Strategic Plan and informs them on progress at least annually at INSET meetings. Employees are encouraged to present their suggestions and views on all elements of the School.

Communication

The School communicates with employees in a variety of forms e.g. INSET days, weekly staff briefings, all-staff emails, half-termly tine managers’ meetings, all-Staff meetings, team meetings and Away Days. A comprehensive online Staff Site acts as the primary source of information for all staff and is updated daily. Regular meetings are held between management and employees to enable the free flow of information and ideas.

School-Centred Initial Teacher Training (SCITT)

The School continues to act as a regional hub for both the National Maths and Physics (NMAPS) SCITT and the National Modern Languages (NML) SCITT. Two maths teachers were trained, one, part-time, at CHS and one at Sale Grammar School, with a contrast placement at the Kingsway School. Four NML trainees were spread between CHS, the Coop Academy North Manchester School, Macclesfield Academy, Sharples School in Bolton and Parrs Wood High School. All trainees to date for both the NMAPS SCITT and the NML SCITT have secured employment in state sector schools.

CHS also provided one placement for the Classics SCITT based at Liverpool College.

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CHEADLE HULME SCHOOL _Report and Financial Statements — Year Ended 31 August 2023

independent Auditor’s Report to the Members of Cheadle Hulme School

Opinion

We have audited the financial statements of Cheadle Hulme School (‘the charitable company’) for the year ended 31 August 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of ireland (United Kingdom Generally Accepted Accounting Practice).

(n our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The 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 inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

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CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

Matters on which we are required to report by exception

In light of the knowledge and understanding of the 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:

As explained more fully in the trustees’ responsibilities statement set out on page 28 the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the 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 financial 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 auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

19

CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit 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 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 ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent School Standards) Regulations 2014, Employment tegislation and Health & Safety Legislation.

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 other income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Finance and Resources Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, Independent Schools Inspectorate, sample testing of other income 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 with 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.

20

9th February 2024

CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

STATEMENT OF FINANCIAL ACTIVITIES (including an income and expenditure account)

Unrestricted Restricted Total Total
Note Funds Funds 2023 2022
INCOME £°000 £'000 £000 £°000
Income from:
Donations and legacies 6 246 - 246 211
Investments 5 155 - 155 21
Ancillary trading income 4 1,284 - 1,284 1,147
Charitable activities 3 17,920 - 17,920 16,857
Total Income 19,605 - 19,605 18,236
EXPENDITURE
Charitable activities 18,778 4 18,782 17,400
Total Expenditure 7 18,778 4 18,782 17,400
Net School Incomeforthe year
beforetransfers		 827 (4) 823 836
Transfers between funds 19 - - - -
Net movement in funds 827 (4) 823 836
Total funds broughtforward 18,159 84 18,243 17,407
Totalfundscarriedforward 21 18,986 80 19,066 18,243

The Statement of Financial Activities includes all gains and losses recognised in the year. All activities are classed as continuing.

The notes on the following pages form part of these financial statements

22

CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

BALANCE SHEET Company number: 3823129

Note 2023 2023 2022 2022
£’000 £000 £7000 £’000
Fixed assets
Tangible assets 10 20,852 20,905
Current assets
Debtors 12 681 558
Cash at bank and in hand 4,025 4,493
4,706 5,051
Creditors: Amounts falling due within
one year 13
Loans (200) (200)
Other (3,609) (4,503)
Net current assets/(liabilities) 897 348
Total assets less current liabilities 21,749 21,253
Creditors: Amounts falling due after
more than one year 14 (2,683) (3,010)
Net assets 19,066 18,243
Funds
Unrestricted general funds 20 18,986 18,159
Restricted funds 19 80 84
Totalcharityfunds 19,066 18,243

The financial statements were approved by the Board of Directors on |}? - 0j- 2t+and signed on its behalf by:

C Roberts Director

The notes on the following pages form part of these financial statements

23

CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

STATEMENT OF CASH FLOWS

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |2023|2022| |£000|£7000| |Cash|flows|from|operating|activities:| |Net|movement|in|funds|823|836| |Adjusted|for:| |Depreciation|950|790| |Interest|payable|83|69| |Interest|receivable|(155)|(21)| |Loss|on|disposal|of fixed|assets|7|-| |(Increase)/decrease|in|trade|and|other receivables|(123)|(9)| |Increase/(decrease)|in|trade and|other payables|(926)|1,093| |(Decrease)|in|pension|debt|provision|(94)|(55)| |Net cash|inflow from|operating|activities|565|2,703| |Cash|flows|from|investing|activities| |Purchase of tangible fixed assets|(835)|(2,134)| |Interest|received|155|21| |Net cash|outflows|from|investing|activities|(680)|(2,113)| |Cash|flows|from financing|activities| |Repayments|of amounts borrowed|(200)|(200)| |Repayments|of finance|lease|(71)|(13)| |Interest paid|(83)|(69)| |Net cash|outflows from|financing|activities|(354)|(282)| |Net|increase|in|cash & cash|equivalents|(468)|308| |Opening|cash|&|cash|equivalents|4,493|4,185| |Closing cash & cash equivalents|4,025|4,493| |Movement|in|cash &|cash|equivalents|(468)|308|

----- End of picture text -----

The notes on the following pages form part of these financial statements

24

CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

RECONCILIATION OF NET DEBT

At1
September Cash At 31 August
2022 flow 2023
£'000 = =£'000 £'000
Cash at bank 4,493 (468) 4,025
Bank loan due in less than one year (200) - (200)
Bank loan due in greaterthan one
year (1,950) 200 (1,750)
2,343 (268) 2,075

25

CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES

General information

Cheadie Hulme School is a private company limited by guarantee and is non-profit making. Cheadle Hulme School is incorporated in England and Wales. The registered office is Claremont Road, Cheadie Hulme, Cheadle, Cheshire SK8 6EF.

Basis of accounting

Cheadle Hulme School meets the definition of a public benefit entity under FRS 102. The financial statements have been prepared under the historical cost convention, with the exception of certain buildings which have been included at a valuation made in 1939 and in accordance with applicable accounting standards. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), and the Companies Act 2006.

Going concern

The Directors have due regard for the going concern of the Charity. The School prepares a detailed budget for the 12 months ahead as well as financial projections for at least a further 3 years. Actual performance is monitored at least termly and cash balances are managed daily. The Schoo! continued to have strong pupil recruitment and made a positive Income and Expenditure surplus which it uses to reinvest in its facilities. The Directors continue to undertake planning and forecasting including closely monitoring the UK political and economic situation and its possible impact for the School, including workforce availability and wages pressures and the implications of any changes to UK taxation as it applies to independent schools.

The directors also keep under. review the short and long-term impact of geopolitical conflict including issues in supply chains, energy costs and other materials costs. Directors believe that the school’s financial resources and contingency planning is sufficient to ensure the ability of the School to continue as a going concern for the foreseeable future, being at least twelve months from the date of approval of these financial statements and therefore have prepared the financial statements on a going concern basis.

Group accounts

The charity has not prepared consolidated accounts as the subsidiary undertaking may be excluded from consolidation on the basis that it is not material. These financial statements therefore present information about the charity as an individual undertaking rather than as a group.

Income

All income is included in the Statement of Financial Activities when the School is legally entitled to the income and the amounts can be quantified with reasonable accuracy. Income mainly represents fees earned in respect of tuition given during the year. Fees received in respect of tuition to be given after the year end are included in creditors as fees received in advance.

26

CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

NOTES TO THE FINANCIAL STATEMENTS /Continued ...

  1. ACCOUNTING POLICIES (CONTD)

Donations and gifts

Ail monetary donations and gifts are included in full in the Statement of Financial Activities when receivable, provided that there are no donor imposed restrictions as to the timing of the related expenditure, in which case recognition is deferred until the pre-condition has been met.

Income (continued)

Donations under Gift Aid, together with associated income tax recoveries, are credited as income when the donations are receivable.

Legacies are included when the Charity is advised by the personal representative of an estate that payment will be made, if the receipt is both probable and measurable. These are included in the Statement of Financial Activities.

Investment income

Investment income, including associated income tax recoveries, is recognised when receivable.

Expenditure

All expenditure is accounted for on an accruals basis and has been classified to the particular activity where the cost relates directly to that activity.

Charitable expenditure

This represents expenditure incurred on activities in furtherance of the charity's objects (which includes support costs).

Governance costs

Costs incurred are those relating to the organisation and running of the charity itself and are included in charitable expenditure.

Fixed assets

Fixed assets are included in the balance sheet at historic cost except for certain buildings noted above. From 1 April 1993 all plant and equipment purchased with a cost of greater than £1K is being capitalised and disclosed within the fixed asset note.

Depreciation is provided evenly on the cost of plant and equipment to write them down to their estimated residual values over their expected useful economic lives of 5-20 years. Information Technology equipment is written down over 4 or 5 years. Fixtures and fittings are written down over 10 years.

Buildings are being depreciated over a life of 50 years. Certain improvements to properties are depreciated over their estimated useful lives, ranging from 5 to 20 years.

Taxation

The School is not liable to taxation on the results of its charitable activities as it is a registered charity.

Pensions

School staff are members of one of two pension schemes. Teachers’ Pension Scheme is a defined benefit scheme and Independent Schools’ pension scheme is defined contribution. More details of the schemes are given in note 22.

27

CHEADLE HULME SCHOOL _Report and Financial Statements — Year Ended 31 August 2023

NOTES TO THE FINANCIAL STATEMENTS /Continued ...

  1. ACCOUNTING POLICIES (CONTD)

Investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Defined Benefit Schemes

Teachers’ Pension Scheme

Full-time and part-time teaching staff employed under a contract of service are eligible to contribute to the Teachers’ Pension Scheme (TPS). The TPS, a statutory, contributory, final salary scheme is administered by Capita Teachers’ Pensions on behalf of the Department of Education. As the Schoo! is unable to identify its share of the underlying (notional) assets and liabilities of the scheme, the Schoo! has taken advantage of the exemption in Financial Reporting Standard (FRS) 102 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The pension costs for the scheme represent the contributions payable by the School in the year.

Independent Schools’ Pension Scheme

Non-teaching members of staff are offered membership of the Independent Schools’ Pension Scheme (ISPS) Defined Contribution section. The contributions paid by the Schoo! during the year are charged to the Statement of Financial Activities.

Non-teaching members of staff appointed prior to 1 September 2013 were eligible to be members of the ISPS funded multi-employer Defined Benefit section. The scheme is closed to new employees. As the School is unable to identify its share of the underlying (notional) assets and liabilities of the scheme, the School has taken advantage of the exemption in Financial Reporting Standard (FRS) 102 and has accounted for its contributions to the scheme as if it were a defined contribution scheme.

If the actuarial valuation of the scheme reveals a deficit, the Directors will agree a recovery plan to eliminate the deficit over a specified period. This is held asa liability in the financial statements, as detailed in note 16.

The pension costs for the scheme represent the contributions payable by the School in the year.

Reserves

The School has a number of restricted income funds to account for situations where an income stream requires that the income must be spent on a particular purpose.

All other funds are classified as unrestricted funds.

28

CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

NOTES TO THE FINANCIAL STATEMENTS /Continued ...

2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In applying the charity's accounting policies, the Directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The Directors’ judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.

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 affects both current and future periods.

Critical accounting judgements

The critical accounting judgements that the Directors have made in the process of applying the charity’s accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

29

CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

NOTES TO THE FINANCIAL STATEMENTS /Continued ...

3.
CHARITABLE ACTIVITIES —- FEES RECEIVABLE
2023 2022
£'000 £000
Fees receivable consist of:
School fees 19,742 18,527
Less: total bursaries and scholarships (1,822) (1,670)
17,920 16,857

Bursaries, scholarships and other awards were paid to 239 pupils (2021-22: 236). Within this means-tested bursaries totaling £1,118k were paid to 97 pupils (2021-22: £1,068k to 100 pupils).

4. CHARITABLE ACTIVITIES — OTHER INCOME

2023 2022 —
£’000 £°000
Catering fees 1,007 962
Entrance and registration fees 40 42
After school and other clubs 105 101
Income from CHS Enterprises 117 32
Other income 16 10
1,284 1,147
5. INVESTMENT INCOME
Total Total
2023 2022
£'000 £000
Bank interest 165 21
155 21

30

CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

6. GRANTS AND DONATIONS RECEIVABLE

Unrestricted Restricted Total
Funds Funds 2023
£'000 £'000 £°000
Grants received for Bursaries from:
CHS 150"Anniversary BursaryTrust 180 - 180
Oglesby Trust 10 - 10
Individual donor bursary donations 51 - 51
Peter Kershaw income 5 - 5
246 - 246
Unrestricted Restricted Total
Funds Funds 2022
£’000 £'000 £'000
Grants received for Bursaries from:
CHS 150"Anniversary Bursary Trust 150 - 150
Oglesby Trust 10 - 10
STEM andART bursary donations 47 - 47
Peter Kershaw income 4 - 4
211 - 211

Ke |

CHEADLE HULME SCHOOL _Report and Financial Statements — Year Ended 31 August 2023

7. ANALYSIS OF TOTAL EXPENDITURE

Staff 2023
Costs Other Total
£’000 £7000 £000
Charitable expenditure 13,461 5,321 18,782
Staff
Costs		 Other 2022
Total
£’000 £7000 £°000
Charitable expenditure 12,823 4,577 17,400

Total expenditure are stated after charging:

2023 2022
£’000 £'000
Depreciation 950 790
Auditor's remuneration - audit 14 12
-non-audit(otherassuranceservices) 1 2

CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

NOTES TO THE FINANCIAL STATEMENTS /Continued ...

8. STAFF COSTS
2023 2022
£000 £'000
Staff costs were as follows:-
Salaries 10,359 9,919
Social security costs 1,068 1,008
Pension costs 1,968 1,834
Private medical insurance 65 61
13,461 12,822

Included within wages are termination and voluntary severance payments of £3k (2021-22: 14k).

The average number of employees in the year analysed by function was:-

2023 2022
No No
Teachers 174 169
Fund raising and publicity 7 6
Management and administration 142 141
323 316

33

CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

NOTES TO THE FINANCIAL STATEMENTS /Continued ...

9. STAFF COSTS (CONTD)

The following analysis shows the number of higher paid staff in the following ranges.

Emoiuments include salary, taxable benefits in kind and other payments to employees.

2023 2022
No No
£70,000 to £79,999 - 4
£80,000 to £89,999 5 2
£90,000 to£99,999 1 -
£100,000 to£109,999 1 1
£150,000 to£159,999 - i
£160,000 to£169,999 1 -
.

Retirement benefits under defined benefit and defined contribution schemes are accruing for the above staff.

No Director received any remuneration during the period.

One (2021-22: One) director received reimbursed expenses and expenses paid directly to third parties of £153 (2021-22: £41} during the period.

The key management personnel of the charity comprise the Directors, the Head, three Deputy Heads, the Chief Operating Officer, the Senior Deputy Head, the Head of Junior School and the Development Director. The total employee benefits of the key management personnel of the Trust were £901k (2021-22: £937k).

34

CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

NOTES TO THE FINANCIAL STATEMENTS /Continued ...

  1. TANGIBLE FIXED ASSETS

----- Start of picture text -----
Freehold
Land and Plant and
Buildings Equipment Total
£000 £000 £'000
Cost or valuation
At 31 August 2022 27,716 2,120 29,836
Additions 595 310 905
Disposals - (28) (28)
At 31 August 2023 28,311 2,402 30,713
Depreciation
At 31 August 2022 7,968 963 8,931
Charged in year 665 285 950
Disposals - (20) (20)
At 31 August 2023 8,633 1,228 9,861
Net book value
At 31 August 2023 19,678 1,174 20,852
At 31 August 2022 19,748 1,157 20,905
----- End of picture text -----

Fixed assets are included in the balance sheet at the following values:-

Land - at historic cost Buildings - at 1939 valuation with subsequent additions at cost Equipment - at cost

As records are not available back to 1939 and as a result of the passage of time, the 1939 valuation used for buildings is deemed to be cost for the purpose of FRS 102.

All the tangible fixed assets are used for direct charitable purposes.

As at 31 August 2023, the School had capital commitments of £316k in relation to the installation of a solar panel system, with installation expected to commence during the 23/24 financial period.

35

CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

£ 1

NOTES TO THE FINANCIAL STATEMENTS /Continued ...

11. INVESTMENTS

Historic cost as at 31 August 2022 and 2023

The above investment represents 100% of the issued ordinary share capital of Cheadle Hulme School Enterprises Limited. The registered office of Cheadle Hulme School Enterprises Limited is Claremont Road, Cheadle Hulme, Cheadle, Cheshire SK8 6EF. The principal activity being the lettings of the school premises. As at 31 August 2023, its reserves stood at £137,491 (2021-22 - £116,949) and its profit for the year was £137,490 (2021-22 - £116,948).

  1. DEBTORS
2023 2022
£’°000 £'000
Schoo! debtors 59 59
Prepayments and accrued income 517 442
Amountsowed byassociated undertakings 55 2
Other debtors 51 55
681 558
13.
CREDITORS: AMOUNTS FALLING OUE WITHIN ONE YEAR
2023 2022
£000 £°000
Bank loans (note 15) 200 200
200 200
Trade creditors 648 936
School fees in advance (note 17) 1,355 2,136
Othertaxation and Social Security 249 249
Other creditors 478 379
Accruals 451 430
Sundry School pupils’ accounts 69 46
Cheadle Hulme Schoo! 150th Anniversary Bursary Trust Fund 175 160
Pension deficit provision (note 16) 107 104
Obligations under finance leases 77 63
3,609 4,503

36

CHEADLE HULME SCHOOL Report and Financial Statements ~ Year Ended 31 August 2023

NOTES TO THE FINANCIAL STATEMENTS /Continued ...

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023 2022
£’000 £°000
Bank loans —secured (note 15) 1,750 1,950
School fees paid in advance (note 17) 2 17
Pension deficit provision (note 16) 708 804
Obligations underfinance leases 223 239
~~2,683~~—«3,010

There are two loans, one is a variable loan of £1M payable at 1.7% above SONIA and the second is £2M at a fixed rate of 3.51%. Both loans are repayable quarterly in equal instalments until 2026 and then a lump sum payment of £1.45M.

Alt loans are secured by a charge over the land and buildings of the School.

15. CREDITORS: LOANS

Loans are repayable as follows;

2023 2022
£°000 £°000
In one year or less 200 200
Between one and two years 200 200
Between two and five years 1,550 1,750
In five years ormore - -
1,950 2,150

37

CHEADLE HULME SCHOOL Report and Financial Statements ~ Year Ended 31 August 2023

NOTES TO THE FINANCIAL STATEMENTS /Continued ...

16. CREDITORS: PENSION DEFICIT PROVISION

Included within Creditors due within one year and more than one year is a multi-employer defined benefit pension scheme deficit and the estimated employer debt. Following the valuation of the scheme as at 30 September 2017, the contributions payable by the employer have been communicated relating to recovery of the deficit over the 13 years to 31 August 2029. As of the balance sheet date the estimated discounted employer deficit is detailed below.

2023 2022
£°000 £7000
Pension deficit provision as at 1 September2022 907 963
Deficit contributions paid (104) (111)
Remeasurement ofdefined benefit pension 12 55
Pension deficit provision as at 31 August 2023 815 907
Less: amountduewithin one year (107) (104)
708 803
17.
CREDITORS: DEFERRED INCOME
2023
£000
At 1 September2022 2,153
Received during the year 1,317
Discounts given during the year -
Released to income for the year (2,113)
At31August2023 1,357

Deferred income represents school fees paid in advance and fee deposits repayable upon pupils leaving the School.

18. FINANCIAL INSTRUMENTS

2023 2022
£000 £000
Financial assets measured atamortised cost (a) 4,084 4,552
Financial liabititiesmeasuredatamortisedcost(b) 2,781 3,752

(a) Financial assets include cash, trade and fee debtors and other debtors

(b) Financial liabilities include deposits, trade creditors, other creditors and obligations under finance leases.

38

CHEADLE HULME SCHOOL Report and Financial Statements - Year Ended 31 August 2023

NOTES TO THE FINANCIAL STATEMENTS /Continued ...

19. RESTRICTED FUNDS

Balance Balance
1 September 31 August
2022 Income Expenditure Transfers 2023
£000 £'000 £000 £000 £000
Hardship fund 69 - - - 69
Music and Languages
Fund 10 - - - 10
Specific studentfunds 5 - (4) - 1
es )

These restricted funds relate to funds received by the School for use for the purposes stipulated by the donor.

Hardship fund was created to provide financial support to families struggling due to the Coronavirus pandemic.

Specific Student funds were donations made by individual donors for specific students.

Balance Balance
1 September 31 August
2021 Income Expenditure Transfers 2022
£’000 £’000 £000 £000 £’000
Hardship fund 69 - - - 69
Music and languages
fund 18 - (8) - 10
Specific studentfunds 9 - (4) - 5
96 - (12) - 84

39

CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

NOTES TO THE FINANCIAL STATEMENTS /Continued ...

  1. UNRESTRICTED FUNDS

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Balance|Balance| |1|September|31|August| |2022|Income|Expenditure|Transfers|2023| |£°000|£7000|£'000|£'000|£’000| |General|18,159|19,605|(18,778)|-|18,986| |18,159|19,605|(18,778)|-|18,986|

----- End of picture text -----

There has been no transfers between unrestricted and restricted funds in the period.

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Balance|Balance| |1|September|31|August| |2021|Income|Expenditure|Transfers|2022| |£°000|£’000|£’000|£000|£’000| |General|17,311|18,236|(17,388)|-|18,159| |17,341|18,236|(17,388)|-|18,159| |21.|ANALYSIS OF NET ASSETS|BETWEEN|FUNDS|

----- End of picture text -----

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |2023|Net|Current| |Tangible|Assets/|Long-Term|2023| |Fixed Assets|(Liabilities)|liabilities|Total| |£’000|£7000|£°000|£’000| |Restricted|Funds|-|80|-|80| |Unrestricted|Funds|20,852|817|(2,683)|18,986| |20,852|897|(2,683)|19,066| |2022|Net|Current| |Tangible|Assets/|Long-Term|2022| |Fixed Assets|(Liabilities)|liabilities|Total| |£'000|£7000|£'000|£’000| |Restricted|Funds|-|84|-|84| |Unrestricted|Funds|20,905|264|(3,010)|18,159| |20,905|348|(3,010)|18,243|

----- End of picture text -----

40

CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

NOTES TO THE FINANCIAL STATEMENTS /Continued ...

22. PENSIONS

,

Teachers’ Pension Scheme

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £1,683k (2021-22: £1,546k) and at the year-end £196k (2021-22: £182k) 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 contribution 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 was published in October 2023.

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% to 28.6% 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%.

Independent Schools’ Pension Scheme

Cheadle Hulme School participates in The Independent Schools’ Pension Scheme (‘the Scheme’) which has a multi-employer defined benefit scheme section and a defined contribution section. The Scheme is contracted-out of the State scheme. With effect from 1 November 2016 all members of the Independent School’ Pension Scheme moved from the Defined Benefit section to the Defined Contribution section.

As at the balance sheet date there were no active members of the Defined Benefit Scheme employed by Cheadle Hulme School (2021-22: no active members). There were 127 (2021-22: 115) members of the Defined Contribution Scheme.

During the accounting period ended 31 August 2023 Cheadle Hulme School paid employers contributions of 10% and 0.6% for life cover in respect of the Defined Contribution Scheme.

The scheme is a multi-employer scheme which provides benefits to some 61 non-associated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore, it accounts for the scheme as a defined contribution scheme.

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CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

NOTES TO THE FINANCIAL STATEMENTS /Continued ...

22 PENSIONS (continued)

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a ‘last-man standing arrangement’. Therefore, the company is potentially liable for other participating employers’ obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out with an effective date of 30 September 2020. This actuarial valuation was certified on 22 December 2021 and showed assets of £201.1m, liabilities of £256.3m and a deficit of £55.2m. To eliminate this funding shortfall, the trustees and the participating employers have agreed that additional contributions will be paid, in combination from all employers, to the scheme as follows: Deficit contributions Se (payable monthly and increasing by 3% on each 1* om.[September][ 2022][ to][ 30][ June] £2,687,000 per annum September)

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £149.4m, liabilities of £187.6m and a deficit of £38.2m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions =—[to][ 31][April] (payable monthly and increasing by 3% on each 1st Soa[September][ 2019] F £2,387,357 per annum : September)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities. Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognisesa liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

The Growth Plan

Cheadle Hulme School also participates in The Growth Plan which is a multi-employer scheme.

The scheme is a muiti-employer scheme which provides benefits to some 638 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enabie it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

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CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

NOTES TO THE FINANCIAL STATEMENTS /Continued ...

22 PENSIONS (continued)

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a ‘last-man standing arrangement’. Therefore the company is potentially liable for other participating employers’ obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

----- Start of picture text -----
From 1 April 2022 to 31 January 2025: £3,312,000 per annum (payable monthly)
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Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions = —— [a From 1 April 2019 to 30 September £11,243,000 per annum (payable monthly and 2025: increasing by 3% each on 1st April)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangementnet present valuethe companyof the deficitrecognisesreductiona liabilitycontributions for thispayable obligation.under The the amountagreement recognisedthat relatesis the to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

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CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

NOTES TO THE FINANCIAL STATEMENTS /Continued ...

23. RELATED PARTY TRANSACTIONS

Included within creditors within one year is an amount of £175,360 (2021-22: £160,093) held by Cheadle Hulme School on behalf of Cheadle Huime School Bursary Trust (formerly known as the 150" Anniversary Bursary Trust). Dr D N Riley, Mrs C Boyd and Ms B Walmsley are trustees of Cheadie Hulme School Bursary Trust. During the year, Cheadle Hulme School Bursary Trust granted bursary money to Cheadle Hulme School amounting to £180,000 (2021-22: £150,000),

Included within debtors within one year is an amount of £54,619 (2021-22: £2,177) held by Cheadle Hulme School Enterprises Ltd on behalf of Cheadle Hulme School. During the year, Cheadle Hulme School Enterprises Ltd paid management charges to Cheadle Hulme School amounting to £2,400 (2021-22: £2,400).

A number of directors at the School have children enrolled at the school during the year. The children attend the schoo! on the same terms as the other pupils.

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CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

NOTES TO THE FINANCIAL STATEMENTS /Continued ...

24. OPERATING LEASE COMMITMENTS

At 31 August 2023 the School had annual commitments under non-cancellable operating issues:

Land and buildings
2023 2022
£000 £000
Operating leases which expire:
Within one year - 60
Within two to five years - -
- 60

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CHEADLE HULME SCHOOL Report and Financial Statements — Year Ended 31 August 2023

NOTES TO THE FINANCIAL STATEMENTS /Continued ...

25. PRIOR YEAR STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted Restricted Total
Funds Funds 2022
INCOME £'000 £'000 £000
Income from:
Donations and legacies 211 - 211
investments 21 - 21
Ancillary trading income 1,147 - 1,147
Charitable activities 16,857 - 16,857
Total Income 18,236 - 18,236
EXPENDITURE
Charitable activities 17,388 12 17,400
Total Expenditure 17,388 12 17,400
Net School Income fortheyear
beforetransfers		 848 (12) 836
Transfers between funds - - -
Netmovement infunds 848 (12) 836
Total funds brought forward 17,311 96 17,407
Totalfundscarriedforward 18,159 84 18,243

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