2024-08-31-accounts

IMPACT REPORT 2023-2024

Cheadle Hulme School Year ended XXXXXXXX

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WELCOME

WHAT DOES IT MEAN TO MAKE A DIFFERENCE?

It’s a question we ask a lot around here. Founded in 1855, CHS started with one simple mission: to provide an education for those in need. The ethos of helping others was true then and it’s true now.

Today, the world looks a little different, but the heart of CHS hasn’t changed. We believe that education is about more than grades or exams. It’s about preparing young people to step out into the world ready to make it better. We do that by teaching them, yes. But also by showing them and encouraging our students and staff to live by our school values every day.

look around, to notice, and to act. It’s about knowing that we’re part of something bigger. It’s about understanding that we’re fortunate, and with that comes a responsibility.

This report tells the story of the impact CHS made during the academic year 2023 - 2024. From staff and students raising money for causes close to their hearts to our community partnerships, volunteering programmes and sustainability actions, we are proud of what we have achieved together.

Our three pillars—Active, Academic, and Altruism—are the foundation of everything we do. Altruism is the one that reminds us to

Positive Inspection Report for CHS

Following a three-day visit in March, CHS received glowing feedback from the Independent Schools Inspectorate (ISI). The report highlights the school’s inclusive, values-driven ethos, diverse curriculum, and outstanding co-curricular programme—praised as one of the school’s key strengths. Head, Mr. Richardson, commended the hard work of staff, pupils, and governors, saying,

The school’s ‘Waconian Values’ of resilience, integrity, endeavour, contribution and compassion are central to how the school operates. Pupils know and understand the values well. They try hard to always follow them. Pupils develop self-confidence, with strong moral foundations, during their time at the school.

“This report is a reflection of our collective commitment to creating a thriving, nurturing environment for all.”

Mr Lee Richardson, Head

ISI Inspection Report 2024

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OUR COMMUNITY PARTNERSHIPS: A SHARED JOURNEY

Our community partnerships are about sharing what CHS is fortunate to have, learning from colleagues in partner state schools and building something bigger together to benefit our entire community.

378 children from local state schools attended an outreach music or drama event at CHS

Last year we continued to be part of the Stockport State-Independent School Partnership and provided curriculum and co-curricular support across Science, Art, Music, Drama and Sport and hosted an overnight residential for Year 6 pupils.

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“The CHS collaboration is an amazing opportunity to foster a sense of community and belonging.”

Our partnerships are truly collaborative and everyone involved benefits mutually from engagement with the different programmes. The CHS experience is enriched from getting involved and feeling firsthand the power of giving something back and contributing to something bigger than ourselves.”

“Both the STEAM Project and the music performance have been fantastic and really fun to be a part of. It’s great to see a school with an abundance of resources share these with schools in the local community. This partnership is so unbelievable positive for our school.” - Adswood Primary School

Caroline Dunn, Community and Partnerships Lead

Cheadle Heath Primary School

31 science outreach workshops delivered

199

pupils from our partner state schools attended science outreach lessons

60

groups from our partner state schools competed in a STEAM project

Year 6 Residentials held at CHS for partnership state schools For the first time we coordinated Year 6 Residential for Cale Green Primary School who would otherwise not have been able to offer a residential due to the rising cost of the trip. 45 Year 6 pupils spent the day enjoying water activities at Manley Mere before returning to CHS for team building activities and camping overnight on the school grounds.

“The children and staff absolutely loved it. They enjoyed telling the other members of staff about what they got up to and created some pieces of Art, linked to building a campfire. The day was so well organised and kept our children engaged throughout.” - Year 6 teacher, Cale Green Primary School

Science Outreach in Action

Last year our long-established Science Outreach programme brought science to life for 199 Year 5 pupils from our four partner schools and supported 10 primary school teachers. Additional material and resources were also made available for those teachers to deliver at their schools.

“Year 5 really loved the Science workshops. The space workshop linked really well with the science topics we were covering and acted as a pre-teach for the children. We saw a huge impact in their learning if they had covered that topic in a workshop and children can bridge back to what they had learnt. The workshops were very helpful and had an impact on their learning.” - Miss Hodgkiss, Adswood Primary School

“I never cease to be amazed at the curiosity and the enthusiasm shown by young people who have the opportunity to learn about science in a practical way.”

Dr Anne Carlin, CHS Science Outreach Lead

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SWIM! support for state school outreach

Last year we were especially proud of the addition of the SWIM catch-up sessions. Through our continued partnership with the Rebecca Adlington Swim Academy, SWIM! pupils from our state partner primary schools benefited from 76 free hours of swimming lessons. 46 state school pupils across years 4 and 5 took part in the lessons with the majority achieving the statutory requirement.

“Partnering with Cheadle Hulme School (CHS) has been a fantastic opportunity for Swim!. It has allowed us to reach more children in the local community and create a deeper impact by providing them with essential swimming skills in a fun, supportive environment. What excites me most about the future of this partnership is the potential to expand our outreach and make swimming accessible to even more young people, helping to build their confidence in and out of the water.”

76 free hours of swimming lessons for pupils at partner state schools

Rebecca Adlington

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Becky spent time sharing her story
with CHS Junior School pupil
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Kicking off opportunities: Summer Football camps with Stockport County

The partnership between CHS and Stockport County Football Club continued to grow and provided even more young people from state schools the opportunity to stay active during the school holidays. The Stockport County Community Trust values the access to CHS’s excellent facilities, which allows them to offer high-quality football camps to children from a wide range of socio-economic backgrounds. Many of these children participate at little or no cost, contributing to the Trust’s mission of promoting physical and mental well-being through sport.

Looking ahead, the Trust is excited to expand its provision, with plans to introduce a girls’ football holiday camp at CHS. This initiative will be led by inspiring female role models, ensuring that girls across Stockport have more opportunities to engage in football in a supportive and empowering environment.

Fostering a Love for Reading: Parent and Sixth Form Volunteering Scheme continued for a second year

Last year, our parent volunteering scheme continued to thrive, with 98 pupils from Years 3 to 6 benefiting from regular literacy sessions. CHS parents generously volunteered their time to nurture reading skills and a passion for literature in students from three of our partner state schools, making a meaningful contribution to their educational development.

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schools benefited
from the CHS
5
Reading Scheme
volunteers
25 involved from the
CHS community
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“Annie and Shoshi have made a huge
difference to the children at Cheadle Heath
Primary School. Their presence creates
the opportunity for several children to have
“I enjoyed listening to the pupils “It didn’t take long for my two hours at focused practice of their skills delivered
read as it allowed me to see what they Adswood Primary School to become one with enthusiasm and encouragement by
struggled with and how I could help them. of the highlights of my week. The children our amazing volunteers. The students
I found this experience very rewarding were a joy to be around, keen to read and have built an outstanding relationship
as I was able to have an influence on the the staff so welcoming and friendly. I’m with the children which has helped them
younger generation while also developing really looking forward to getting back.” to achieve so much.”
my people skills.” - Macey Elton, Year 12 - Fiona, parent volunteer - Teacher, Cheadle Heath Primary School
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Who used our facilities...

18 3 1 different sports summer sports bump and baby community groups camps providers antenatal group

200 1000 3 young people attended a CRY heart member of community groups access our theatre groups screening workshop facilities every week during term time

1 2 Stockport County chess clubs Academy “Partnerships with local institutions like CHS allow Stockport County to deepen its roots in the community, creating relationships 1 with families, schools, and young players who music exam board CHS Enterprises CoordinatorJudy McSorley are the foundation of our future fan base and talent pipeline. Access to CHS’s high-quality facilities provides an optimal environment for our players to develop ae n : : q skills, technique, and teamwork—key factors E - = ea 225 ~ : =~ : that aligns with our in nurturing potential £1900 long-term commitment raised at Sponsored to player development.” Swim for Christian Aid in the CHS pool Ryan Jones, Head of Academy Operations

WACONIANS MAKING A DIFFERENCE

We believe that helping others isn’t just something you do—it’s who you are. That’s why we encourage our students to get involved in charity work from day one. Whether it’s supporting a House charity or raising money for causes close to their hearts, we help Waconinas to understand the power of giving back. Because when they help others, they grow too.

Last year, Waconians supported a wide range of charitable causes both locally and globally.

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ALLEN CLARKE
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Manchester Refugee Support Network supporting refugee communities in Manchester

Coffee4Craig, a homelessness provision that is open every evening, 365 days a year

MARSH WHITEHEAD ° § 2 the brain injury association ser Headway promotes Royal Manchester understanding and support Children’s Hospital for those suffering from brain injuries

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CHARITY HIGHLIGHTS OF THE YEAR

The Waconian Sixth Form Care Walk Home Visits

Over xxx families took to the Sixth Form students spent time with streets together, raising funds local care home residents, listening for our partner school in The to stories, sharing their own and Gambia and the House charities. performing music for them.

Class of 2024 Leavers Curry & Quiz Fundraiser

Over 140 parents, pupils, and staff came together for Upper Sixth’s Curry & Quiz event, raising more than £2,300 for the CHS Bursary Fund. The tradition of Upper Sixth ~~contributing a leavers gift to the~~ Bursary Fund began in 2012, and this year’s event, supported by Old Waconian President Nik Basran, was a huge success.

“We wanted to make the night special, and with great food, a fun quiz, and an exciting raffle, we’re thrilled with how much we raised,” said the Head Pupils.

A Lifelong Connection: Our Work with The Gambia

Last December, 23 students and 5 staff had the chance to visit our partner school in The Gambia. The lead-up to the trip saw our students raising funds and collecting donations to distribute to the young people and their families.

• Gambia Day: Senior School students wore their own clothes, inspired by the colours of The Gambia’s flag, raising awareness and funds.

• Football Shirt Collection: Football is a passion in The Gambia, and our students collected football shirts (ages 2–18) as gifts for the children there.

• Toy and Stationery Donations: Students donated toys, games, and stationery for children aged 3–11.

“Seeing our school’s long-standing connection with The Gambia firsthand was an incredible experience,” said xxxx, who led XXX the trip. “The culture, the people—it was eyenumbers of volunteer opening, and our students really stepped up to help however they could.” (name of teacher) hours by CHS students

“I am glad I went on the trip. It reminded me of how lucky I am and how important and impactful the acts of charity CHS undertakes are.” - Joe Thomson

• Laptop Collection: Laptops in good working condition were collected to support learning in the partner schools.

Afternoon Tea for the Elderly

Our Sixth Form students hosted a special Christmas afternoon tea for elderly residents, bringing the community together over tea, cakes, and Christmas Carols.

Junior School charity day Junior School pupils raised funds for their chosen charity, NSPCC through cake sales, selling handmade gifts and pre-loved toys and organising their own dinosaur themed games.

192 pupils performed in The Christmas Concert at Stockport Town Hall. The event raised £xxx for House charities and the Bursary Fund.

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Madlug collaboration continued

Last year, Year 13 students were inspired by a Beyond CHS talk from Madlug founder, Dave Linton. Madlug’s mission—restoring dignity to young people in the UK’s care system. Moved by the reality that many children in care transport their belongings in bin bags, Dave shared how he started Madlug with just £500 and a vision to make a difference. Since 2022 CHS has supported Madlug by recommending the purchase of their high quality school bag for all pupils.

Old Waconians giving back

We are fortunate to have a diverse group of Old Waconians who regularly give back to their old school, sharing their stories with current students through lectures, magazine articles, and case studies. Many of these Old Waconians embody the school’s values in their everyday work, showcasing how the lessons learned at CHS continue to shape their lives and careers.

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Molly Pipping
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Molly Pipping, Class of 2015, now a Senior Programme Lead for Education at Greater Manchester Cancer Alliance, hosted a careers event at The Christie, inspiring the next generation of students to pursue paths in STEM and healthcare.

“I work as a Net Zero and Economic Programme Officer supporting Enterprise Cheshire and Warrington and North West Net Zero Hub. CHS not only gave me the skills, knowledge and confidence to pursue a career in policy but the values that were part of everyday school life have stayed with me, driving me to take on roles that have a positive impact on society and the world around me.”

Jon Ross, Class of 1997, founded Sow the City, transforming urban landscapes in Manchester’s most disadvantaged areas, bringing green spaces to those who need them most. Jon shared his story with the Old Waconian community in the latest edition of the Old Waconian magazine.

Anna Parker, Class of 2018

Caring connections

Mr Hedwat led a team of around 20 Sixth Form students who regularly visited a local care home as part of their Medical Sciences Pathway. As well as supporting their studies, their visits brought a sense of joy and energy to the residents who enjoyed sharing their stories with the students.

Why do you think it’s important for students to have opportunities like this, where school work or career interests meet real-world experiences? Volunteering at Meadway Court and Abbeyfield residential care home provided first hand experience of working with the elderly and taught students to appreciate the emotional and psychological aspects of geriatric care. For most of our Medical Pathway students, this was their first

time in such an environment, preparing students for the demands of a career in a care setting. Moreover, it allowed students to see the practical implications of medical knowledge, bridging the gap between theory and practice.

How does being part of a school that places value on altruism influence your own desire to get involved in projects like this?

When altruism is emphasised in the school environment, it creates a culture that encourages students and staff to think about the impact they can make. By joining students in the care homes, there was a sense of community and shared purpose. I feel fortunate to be part of a CHS community that values altruism projects such as volunteering in local care homes and it enhanced a sense of personal fulfilment and purpose.

Honouring the legacy of Kate and Archie Vokes

In November 2023, Archie Vokes, Class of 2020, took on the incredible challenge of running 100km to raise funds for the awareness, prevention, and treatment of prostate cancer—a cause deeply personal to him and his family, who had seen the profound impact such efforts have on those affected.

Tragically, in December of last year, Archie and his mother, Kate, lost their lives in a devastating accident. Both were posthumously awarded the Old Waconian Contribution Award, recognizing their unwavering commitment to CHS and the support they provided through the family’s charitable foundation.

Their legacy of generosity and service continues to inspire the CHS community.

Old Waconains recognised for their commitment to Waconian Values

Other Old Waconian Award winners last year included Professor Tom Bourne, Class of 1978, an international authority on the management of early pregnancy issues, and Sarah Jackson, Class of 2016, IFCA Vice World Champion in windsurfing and ocean ambassador for the Marine Conservation Society. Both Tom and Sarah returned to CHS

to receive their awards and inspire the outgoing Class of 2024 at their Graduation Ceremony, sharing their stories of achievement and passion for making a difference in their fields.

“Securing my CHS bursary was the catalyst that set me on a totally new pathway, so it’s meant the world to me to be able to give back to school. In the 80s and 90s I was a pupil. In the 2000s I started telling my story at fundraising events and then in the 2010s I became an Alumni Board member. Since 2020 I’ve become a Governor and Trustee of the Bursary fund. It’s a real honour to be part of the team that take the important decisions to positively impact ‘future me’s’.” Belinda Matthews, Class of 1994

10 number of Old Waconians took part in a pilot mentoring programme for current CHS students or young alumni

90 number of Old Waconians who gave talks, helped at school events, served as members of Alumni Boardsoung alumni

189 Old Waconians made a donation to the Bursary Fund

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HOW CHS STAFF ARE MAKING A DIFFERENCE

It’s easy to talk about the impact CHS has but it’s harder to do it. Our teaching and professional services staff don’t just work at CHS, they live out the school values in the world around them by volunteering as Governors in state schools, sitting on the boards of charities or offering their skills as advisors and mentors, they are out there, making things happen.

DURING 2023 - 2024

9% of CHS staff were Governors at schools, of which about half are maintained schools

35% of staff raised money for charities unrelated to CHS activities

19% volunteered for local charities

Connecting state schools with relatable role models

Inspired by the positive impact that external speakers and Old Waconians have on CHS students, Fran Kennedy Director of External Relations founded StateTalking, a notfor-profit organisation that connects state schools across Manchester with relatable role models. Through inspirational talks and mentorship, StateTalking provides young people in state schools with the same level of support and inspiration, helping to raise aspirations and broaden horizons. Last year, StateTalking engaged over 9000 young people and co-ordinated talks for 45 state schools.

John Wilson, Assistant Head is co-founder and trustee of WoLLoW (The World of Languages and Languages of the World) and CBB, Cricket Beyond Boundaries.

What was the spark that got you involved How does being part of a school that with both WoLLow and CCB? How have places value on altruism influence your your experiences with them changed you? own desire to volunteer? cCBB came first, rather like Freddie When I see genuine altruism at CHS Flintoff did for his recent BBC TV series, with students, colleagues and parents back in 2011 we wanted to challenge giving of their time and expertise without the misconception that cricket is a posh expecting anything in return, it really sport. We wanted young people, boys and inspires me. When I consider the difference girls, who showed talent in this fantastic our charitable acts make to various sport to find opportunity to break through communities beyond our wonderful site, it and refine their talent. For WolloW the gives me great joy. Just over a year ago I spark was that I was seeing multilingual had the pleasure of sharing our donations classrooms across the country but with our partner communities in the this language diversity was not being Gambia and, more importantly, talking celebrated and too many students were to inspiring educators who shared my not understanding the rich tapestry of fundamental desires for their students but language across their communities. We did not benefit from the resources that we wanted students to see how languages enjoy and take for granted. This further connect and how the wealth of cultures fueled my desire to volunteer and continue associated with these languages can to do what I know is the right thing. also connect and flourish together.

£300

raised at the Staff Macmillan Coffee Morning

Need image of Giles running

Running to Make a Difference

CHS’s Co-Director of Sport, Mr. Giles Heagerty, took part in the Wilmslow Half Marathon, running in support of Bare Necessities, a local toiletry bank that fights hygiene poverty. Inspired by the charity’s mission and his family’s involvement, Mr. Heagerty joined 30 runners aiming to raise funds for those struggling to afford basic hygiene products.

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LIFE-CHANGING BURSARIES: A COMMITMENT TO INCLUSIVITY

At the heart of our school is a simple, but powerful, belief that education should be accessible to young people from all walks of life.

Right now, 1 in 11 students at CHS benefits from financial assistance and last year we outlined our ambition to increase this to 1 in 6 by 2030, ensuring that even more deserving young people have the opportunity to thrive in our school community. We embarked on the quiet phase of a campaign to raise funds to achieve the 1 in 6 target and have plans to launch a public appeal next year.

This commitment isn’t just about financial assistance. It’s about preserving the very essence of CHS - the diverse mix of perspectives, backgrounds, and opportunities that shape the environment for every student.

IMPACT OF OUR BURSARY STUDENTS HAVE PROGRESSED CHS BURSARIES INTO THE FOLLOWING UNIVERSITY FIELDS

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||| |---|---| |Social sciences and humanities|27| |Business and Economics|21| |Health and Medicine|19| |Engineering and Technology|13| |Linguistics and Language Studies|10| |Natural Sciences and Mathematics|9| |Communications or media|4| |Education|2| |Interdisciplinary|7|

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90%

OF CHS BURSARY PUPILS GO TO UNIVERSITY

60% ATTEND RUSSELL GROUP UNIVERSITIES

42%

So what?

Attending further education is associated with 25% higher earnings by age 29 for men. For women this figure is more than 50% higher[5]

OF BURSARY STUDENTS COME FROM FAMILIES WITH AN INCOME BELOW £30,000. ON AVERAGE ONLY 28% OF STUDENTS WHO ARE ELIGIBLE FOR FREE SCHOOL MEALS PROGRESS TO UNIVERSITY BY AGE 191

Graduates are almost 4 times more likely to become socially mobile than non graduates[6]

Girls who attend independent education earn more than twice as much as women from the 20% most deprived socio-economic backgrounds by age 29[7]

Boys who attend independent education earn on average £18,000 more per year than men from the 20% most deprived economic backgrounds by age 29[8]

https://www.gov.uk/government/publications/labour-market-value-of-higher-and-further-education-qualifications-a-summary-re port/labour-market-value-ofhigher-and-further-education-qualifications-a-summary-report[6 ] https://ifs.org.uk/publications/returns-undergraduate-degrees-socio-economic-group-andethnicity[ 7 ] https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/924353/The_impact_of_u ndergraduate_degrees_ on_early-career_earnings.pdf[8] ibid

From CHS Bursary Third year of to Founder in LA partnership with Royal National Children’s Michael Heaven, Class of 2009 Springboard Foundation returned to Our CHS last year to \ castional Chi, partnership share his story with the with current Royal students. ~ National os‘S Sy After briefly studying Politics and lg Ds Children’s Economics at the University of Springboard Birmingham, Michael decided to leave Foundation university and pursue work experience %earscS continued for a third year. The social instead. This led him to build a career mobility charity works closely with in social media, eventually becoming community partnerships, state one of the founding members of Social schools and local authorities to Chain, and co-founded Butterfly 3ffect, identify children who will benefit from a creative agency based in LA. the education CHS offers. To date we have offered five transformational Reflecting on his time at CHS, Michael attributes much of his success to the bursary places to young people: those who have faced challenging opportunities he had as a bursary circumstances – children and student. “Looking back, the bursary teenagers in or on the edge of care, gave me the chance to be in an or growing up in households and environment that shaped how I think communities where opportunities and communicate. I’m really grateful to flourish are limited. for that,” he said.

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The Zochonis
Library Renaming
Last year, CHS celebrated EE
the renaming of the
Senior School library as
The Zochonis Library in
recognition of the generous
support from The Zochonis
Charitable Trust for the
Bursary Trust. The ceremony,
led by our Chair of Governors
and Head Pupils, highlighted
the long-standing connection Zochonis Charitable Trust trustees, Paul Milner
and Paul Evans with Chris Roberts,
between CHS and the Trust. Chair of Governors
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All things are difficult before they are easy.” - Thomas Fuller

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EQUALITY, DIVERSITY AND INCLUSION

At CHS, fostering a safe, inclusive environment is part of who we are. Last year, we took bold steps to ensure our school community continued to embrace and celebrate diversity, both inside and outside the classroom.

Throughout the year, we arranged impactful external speakers and initiatives for our students, providing platforms for important conversations across the entire school community.

Conditional Investors in Diversity standard achieved

Carnegie School Mental Health Award – Silver Status

CHS is proud to have achieved the conditional Investors in Diversity (IiD) standard, marking our ongoing commitment to fostering fairness, respect, equality, diversity, inclusion, and engagement (“FREDIE”) across the school. “We are dedicated to creating a culture where every individual feels valued and included,” said Senior Deputy Head, Mrs. Caroline Dunn. “This achievement reflects our passion for building an inclusive environment and our determination to continue this journey towards full accreditation.”

Our ongoing dedication to mental health awareness was recognised last year with the Carnegie School Mental Health Award – Silver Status.

This award, established by the Carnegie Centre of Excellence for Mental Health in Schools, highlights the school’s commitment to supporting mental well-being for students and staff alike. “This award is a testament to the school’s significant efforts in prioritising the mental health of its community,” said Ms. Rachel Boyle, Dean of Leeds Beckett’s Carnegie School of Education.

Angela Samata - Dealing with Mental Health

Year 13 students were given the opportunity to hear from mental health activist Angela Samata as part of the Beyond CHS lectures series. Samata came to prominance after a particularly impactful TEDx Talk on suicide prevention and after leading a BBC 1 award-winning documentary on the subject, Life After Suicde.

Samata discussed the stigmas still surrounding mental health and offered guidance to those facing challenges, whether academic stress or personal issues.

CHed Talk with Caitlin Moran

In November 2023, students and their parents had the opportunity to attend the latest CHed Talks event; featuring bestselling author and Times columnist Caitlin Moran. Usually focused on feminist issues, her latest book What About Men?, tackled conversations around toxic masculinity and the challenges faced by young men and women as a result.

Chi heaecrotte euaideaaams Men’s Mental Health Week Film

The Sixth Form Council took the lead during Men’s Mental Health Week, producing a powerful film featuring members of the boys’ sports teams. The film, which encouraged open conversations about men’s mental health, was shared with the entire school community.

“The students wanted to show that it’s okay to talk about feelings, especially for boys who might feel pressure to keep things bottled up,” - Mike Jones, Head of Sixth Form

Make Time for the Menopause Event

In collaboration with John Lewis, CHS hosted the Make Time for the Menopause event, bringing together staff and parents to create a supportive space for women navigating menopause. With guest speakers and community groups, the event offered valuable guidance and a safe space for women to share their stories and gain support.

Pride Month and LGBTQ+ Advocacy

During Pride month, CHS hosted a special episode of our Ed Podcast featuring Old Waconian Eva Echo, Class of 1998, an activist and advocate for the LGBTQ+ community. Eva shared her journey and spoke passionately about the importance of inclusivity in schools, inspiring our students to create a more accepting environment for all.

Painting Peace Poles for a Better Tomorrow

Waconians took part in the Peace Pole “We see our Peace Poles as a Project, an international initiative led by recognition of our well-being, and World Peace. Students painted Peace they serve as a visual reminder to Poles, each bearing the message “May look after the well-being of ourselves Peace Prevail on Earth” in multiple and others,” said Mr. Adam Hayley, languages, alongside words like Head of Art & Design. ‘harmony,’ ‘hope,’ and ‘mindful.’

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Promoting understanding through interfaith dialogue

To help students deepen their understanding of the diverse world around them, CHS invited two local faith leaders—Dr. Nasser Kurdy, a lay Imam, and Rabbi Dovid Lewis, a Rabbi from South Manchester—to lead an Interfaith Assembly. Their powerful message celebrated diversity and addressed complex global challenges, particularly the conflicts in the Middle East. By focusing on love over hate, they encouraged students to embrace empathy, respect, and open-mindedness, reinforcing the school’s commitment to fostering a community that values understanding across all backgrounds.

The time is always right to do what is right.” - Dr. Martin Luther King

Refugee employed by CHS

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GROWING A SUSTAINABLE CHS

Last year our Junior School students not only continued to raise awareness of environmental issues across the whole school community but also rolled up their sleeves and were involved in numerous practical, hands-on initiatives. From planting and harvesting their own vegetables to building beehives and leading campaigns on energy conservation, together they made a real impact.

Here’s just a glimpse of what our young pupils got up to last year.

A green plant for the classroom:

Plastic pen recycling initiative:

Students collected used pens for recycling. Each classroom received a green plant, a reminder to care for the environment and - - nurture creativity. - Healthy eating campaign: Pupils led a whole-school assembly and displayed banners in the dining room encouraging everyone to eat more plantPupil Pledges based foods.

Switch It Off! campaign:

Litter picking:

Raising awareness about energy conservation, leading to fewer lights and boards being left on in classrooms.

Regular clean-up efforts to keep the school environment tidy and to inspire others not to drop litter.

“Our Junior School children are leading the way when it comes to sustainability at CHS. They’re not just learning about the environment—they’re taking action to protect it. I’m so proud to see how passionate they are about making a difference.”

Mrs Yvonne Lyng

Junior garden:

Young garners harvested courgettes, peas, potatoes, beetroot, radishes, and spring onions!

Eco Schools Green Flag Award: Work continued towards renewing the Eco Schools Green Flag accreditation building on distinction secured for 2022 - 2023.

613.2 Measured emissions equivalent to 2.3 tCO2e measured emissions 542 flights from London to New York tCO2e per employee Do joo — Buildings Travel Waste Water Procurement 601.3 tCO2e 6.0 tCO2e 1.5 tCO2e 4.4 tCO2e N/A Used enough Travelled 1 time Produced waste that 184 litres per electricity to power around the world weighs the same as 7 employee per day 228 UK homes for one London buses year

Planet Mark Award Winners

Our Planet Mark certification and accreditation for the reporting of our carbon footprint ensure we are embedding sustainability into our practices. We received the Best Newcomer award in November 2023 for xxxx

24 Cheadle Hulme School | Impact Report

Cheadle Hulme School | Impact Report 25

The Buzz About Our Bees

This year, the highlight of our sustainability journey has been the arrival of 20,000 new residents: our very own bees!

These incredible little creatures have not only helped pollinate our gardens but have also given our students a first-hand look at how important bees are to the environment. And after months of care and excitement, we’ve harvested our very first batch of honey, with students watching the whole process unfold.

“It was amazing to see the bees make honey. We learned how important they are and that even something as small as a bee can help save the planet. And the honey was delicious!”

Pre-Loved, Re-Loved:

Sustainable Uniforms with Heart

Last year, our pre-loved uniform sale built on its success, raising over £2,700 for the Bursary Fund and diverting more than 1,000 items from landfill. Families donated second-hand uniforms and each piece was repaired and revitalised. As well as saving families money, our preloved shop keeps clothes in circulation and out of the bin.

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“It’s lovely to see how
much this helps families.
We’re giving uniforms a
second life, and in doing
so, we’re contributing to
the school’s sustainability
goals. It’s a small way to
make a big difference.”
V
F
E
U
O
O
D
O
L
Y R
E- U
B
N
K
R
U
I
N
P F
A Y
O
I
S
H
R
N
H
T G
C M
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Judith Johnson, preloved uniform coordinator

20,000 new residents: our very own bees!

£2,700

raised for the Bursary Fund from our pre-loved uniform sale

744

solar panels were installed

Aiden, Year 5

Installation of Solar Panels

744 solar panels were installed upon the roofs of the Gym, Pavilion and Lockhart and Derby Buildings to deliver a 20% reduction in electricity requirements and reduce carbon emissions by 130 tonnes of CO2 per year (the equivalent of 325,000 driven miles or 16 million smart phone charges!)

26 Cheadle Hulme School | Impact Report

Cheadle Hulme School | Impact Report 27

CHS 2023-2024: THE YEAR IN NUMBERS

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----- Start of picture text -----
67.5%
89%
9 - 7
A - C
A Levels GCSE grades
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1529 30 students aged 3 - 18 different ethnicities 196 12 72% Teaching staff named religions of the Class of 2024 secured one of their chosen universities or courses 4 students 102 22 accepting places on degree Professional Services Staff languages spoken apprenticeship programmes 112 67 31 completed Duke completed Duke completed Duke of Edinburgh Bronze of Edinburgh Silver of Edinburgh Gold

709 366 XXX Senior School individual matches across students took part Sports Fixtures 11 sports for Waconians in F1 in schools aged under 6 to under 11

Sporting highlights

FOOTBALL

NETBALL

• 1st team finalists of the Boodles ISFA Cup Final at MK Dons

• U14 winners of the Sisters in Sport competition

• U14 and U19 reached final round of National Schools competition

• U14 Stockport School finalists

• U15 girls Stockport Schools league winners and ISFA Cup semi-finalists

• U14B and U16B Stockport School winners

HOCKEY

• U13 girls North West regional winners

• 1 student selected for U16 England team

• 13 U13 - 16 boys selected for academy level

• 2 students selected to represent North West

• 23 girls and selected for representative teams across Stockport and Greater Manchester

• 10 students played at County level

CRICKET

RUGBY

• U13 and U15 girls won every county cup competition

• 28 pupils on Developing Player Programme with Sale Sharks

• U12 boys Cheshire Cup semi-finalists

• 1 student selected for Lancashire Academy

• 1st XV Cheshire Cup Semi-Finalists

 34 students selected for County to County district cricket

 1st XV National Plate Quarter Finalists

240 pupils took part in music concerts

63

250

==> picture [53 x 54] intentionally omitted <==

pieces of student artwork exhibited at Manchester Art Fair

students took part in Model United Nations Cheadle Hulme (MUNCH)

426 instrumental or vocal music TBC lessons took place each week

14

academic enrichment clubs

overseas trips

XXX

500 countries visited £TBC Old Waconians on school trips raised for charity by attended alumni current students events

28 Cheadle Hulme School | Impact Report

==> picture [100 x 80] intentionally omitted <==

Head - Lee Richardson

Claremont Road · Cheadle Hulme · Cheadle · Cheshire · SK8 6EF

Tel [phone] · Email [e-mail] cheadlehulmeschool.co.uk

Registered Company Number 3823129 Registered Charity Number 1077017

CHEADLE HULME SCHOOL Report and Flnanclal Ststomonts - Year Ended 31 August 2024 Cheadlo Hulme School Report and Flnanclal Statoments Year ended 31 August 2024 Cheadle Hulme School Regl8tered Charfty No. 1077017 Company No, 03823129

hCONTENTS - Annual Report of th• Dlrectors Page Sectlon A - Key Informatlon L&gal and Administrative Informa￿On Objectives, Construct and Aims Structure, Govemance and Management Prlncipal Risks Sectlon B - Financlal Revl•w Statern8nt of Flnanclal Activities Balance Sheet Statement of Cash Flows Reserves, Investment pollcy and financial fado(s Statement of Dlrectors R8sponslbllitles 10 11-13 Annex A - Fnergy Data 14 Annox B - The School's Straieglc and Opefatlonal Plans Annex C - Employmenl. Communlcallon and Training Ind•p•ndent Audltoe• R•port 15 1&17 18-21 Statemont ol Flnanclal Acllvttlos Balanc8 Shwl 23 Statoment ol Cash Flow• 24-25 Note8 to the Flnanclal Statements 2645

CHEADLE HULME SCHOOL Roport and Flnanclal Ststements- Y•ar Ended 31 August 2024 SECTION A- KEY INFORMAnoN DIRECTORS, OFFICERS AND ADVISORS The Cheadle Hulme School (CHS) Govemors ar8 the Charlty trustees and Company Dlrectors of the Charity and Company. 'Cheadle Hulme School,. They have served in office throughout the year, except where Indicated. All Dlrectors glve thelr tlme freely and Iravel expenses only were paid to one member In the year. No Dlrector or pgrson conn8cled with a Director racelved any benefit from mean8- tested bursaries. During the year, the activitles of the Goveming Body were carded out through 5 Sub Committees plus Governor Involvement In 2 Working Groups (Estates & Envlronm8nt and Human Resources). The membership of th968 Sub Committ995 is shown below. Nam• Appolntmont Ireslgnatlon In y•ar (4) (5) Mr S Abraham # Mr8 J E BSrkett Mr M 8ollngbroke # Mr5 C Boyd. Reslgned 1511124 Mr R Oman'# Mr D N Rlley Mr C Roberts. Mr8 J Squlre Reslgned 11112123 Mr8 C Thomson # Mr M G Tyley Ms B Walmslay Mr G Wrlghl (1) Educatlon & Pupll Progress Commlttee (2) Risk Commlttee (3) Finance & Resources Commlttea {4) Safeguarding & Pupll Experlence Comm5tt88 (5) Nominations Committee

Directors vtho were the parents of a pupil at the School durlng the yaar

. Member of the Estates and Envlronment Working Group

CHEADLE HULME SCHOOL Report and Flnanclal Statemonts - Year Ended 31 August 2024 OFFICERS Mr N Smith (untll 3115124) Head Mr L Richardson (from 111124) (from 116124) Acting Head Head Mr W Jarnes (until 2813124) Chlef Operating Officer. Company Secretary Mrs N Atkinson (unlll 3115124) Senior Finance Manager (from 2913124 unlll 3115124) Company Secretary Mr8 L Quinn Matthews (from 116124> Senior Finance Manager Company Secretary Solicltors: Th8 School has used a number of spedallsl legal advisor8 during the year. Audllor: Crow8 U.K. LLP Chartered Accountants, mernber of Crow8 Global 3rd floor, St George's House 56 Pel8r Street Manchester M2 3NQ Bankers: S8nt8nder UK plc 4 St Pauls Square LlverpDDI L3 9SJ Barclays Bank PLC P.0. Box 357 51 Mosley Street Manchester M80 2AU Website:

CHEADLE HULME SCHOOL Report and Flnanclal Statement4 - Yoar Ended 31 August 2024 REFERENCE AND ADMINISTRATIVE INFORMATION Cheadle Hulme School 18 a company Ilmlted by guaranteè wfth no share capltal and Is a registered charity under the auspic88 of the Charity Commission. School Address: Claremont Road Cheadle Hulme Che8dle Cheshire SK8 6EF Company No: 3823129 Chaflty No: 1077017 Taxatlon A8 an educational charty, the School Is ellgible for a corporatlon tax exernption on Its fjducatAonal actlvlti88 8nd Investment incom8, provided these are applied to the School's charltable alms. The School Is also entitled to an 80% reductlon In business rates on the property occupled for charitable purposes. The School 1$, however. unable to redalm VAT Input tax on costs, as 11 exempt for VAT purposes. As a result of the Govemment Introduction of VAT on educatlon from 1 January 2025. the SchoDI is now VAT reglstered from 3 November 2024 (being the dale the School recognlsed the need to register). The School will therefore be able to partially reclaim VAT input lax on its costs during the academlc year 2024125 and beyond. From Aprll 2025 the School wlll 8180 losè the 800A reduction In business rates due to remov81 of the ex8mption prevlously afforded to Snd8p8ndent schools with charilable ststus.

CHEADLE HULME SCHOOL Rfjport and Flnanclal Statements - Year Endod 31 August 2024 OBJECTIVES, CONSTRUCT AND AIMS Cheadle Hulme School was founded In 1855. It has been sfrtU8ted on Its presenl site, now occupylng about 75 acres of ground, since 1869. The purpose of the SckK)ol. at its foundation, was lo educata, maintain and dothe Orphans and Necessitous Chiklren of Wafehou5emen and Clerks in the Manchester area (Waconians, or WACS). The founders declared that the School should be establlshed 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 maintalned to this day and, as a consequence, the School has a distinct, inclusive and friendly atmosphere: Academlc, Actlv¢ and Altrulstlc. Cheadle Hulme School Is a cfreducatlonal day School for 3 to18 year-olds, that believes In the Int8116Ctual, personal and soclal value of glrls and boys learning alongslde one another in preparation for the realities of the adult world. The School aim8 to wovide a balanced approach to academic and co-currlcular excellence, blended with a pro-actlve and Inclusive pastoral tradltion, %thich leads It8 puplls to 8ngage in posltlve roles In thelr communitles and beyond. The School bullds upon Ils motto of in Inm pArftnli.£ by provlding the hlghest levels and quallty of pasloral care. T8achers and other staff are commltted to suppOr￿ng th8 wellbelng of every pupll. Leadershlp, teamwork, personal responslbllity and roslllenc8 are Important 818ments of the pastoral educatlon the puplls recelve. The School contlnu88 to value horltage by 8ndeavoudn9 to 8UpP(￿t puplls whose family Incomes would 0th8rw58e prevent them from accessing and benefitting from the educ4tion on offer; the School's Financial Asslstance Schemo al80 8UPPOrts the School In Improvlng a more diverse S￿81 and ethnic mix of puplls. The School's Mlsslon, Vl8lon and Values are contained at Annex A. Delalled Inlormatlon about dellvery of th•8e objoctlves can h found In the 2023-2024 Impact Report wlth more Informatlon about School Perforrnanco, School Acllvlty, Pastoral Caro, and Envlronmental AGtlvlty. STRUCTURE, GOVERNANCE AND MANAGEMENT Govornlng Documents The School Is govemed by its Articles of A550clation, updated and approved by the Board of DI￿torS on 27 April 2022 and accepted by both the Charities Commission and Companles House. Gov•rnlng Body The Board ol Dlrectors (Ihe Board) Is a self-appolntlng body comprlslng up to fourteen Dlrectors. The temi of office for each Director Is r8newable by approval of the Board after 8 specifi8d perlod, Usually of elther two or three ye8r8. Rocrultm•nt and Tralnlng of Olr•cto 'as reqUI￿d, Nornlnatbns Commlttee monltors the cornposltlon of the Board and makes recommendations to ensure Ihe Board comprlses members wlth a w5de range of skills and experience. Th8 Board seeks to ensur8 Ihat at least two of the Directors are current Parents ol pupils attending the School. While there 18 no specrflc requirement for fomier pupils (Old W8conlans) to be on the Board, there Is a long hSstory of thls whlch conllnues to be Ihe case.

CHEADLE HULME SCHOOL Roport and Flnanclal Statementg - Year Ended 31 August 2024 Olrectors (known as Govemors) are recrulted based on thelr skills, experience and compgtence. They must have a passion for the work of the School and a broad understandlng of education in temis of its positlve impad on personal growth. Current B08rd members have experlence In the followlng areas: Education Senior buslne88Entr8preneurshlp Property Development Medical • HR FSnanc8llnvestment Technology Legal As a co-educatlonal School, the Board includes an approprlat8 balance of male and female Directors. New Dlrectors have a bespoke induction organised for them. to include meetings with the Chalr, Head, Chief Op8rating Officer and other key personnel, lo develop understandlng of how the School funclions, Its key policies and procedures and thelr roleg and responsibilities. Ensurlng Good Govornanc• The Board is commltted to the principles of good 8nd ethical governance. The Board uses Its sub-committee struclure, (table on page 3). to objectively scruunise dlfferent elements ol the School's progress and performance, The B08rd carries out P8rfodiG skills and effectiveness revlews of Its own construct. Board members are aware of thelr re8ponslbillties to ensure compllance wlth slatulory and other guidance relevant to Its Slatus In¢ludlng as a provld8r of education, a d)arfty, a company, and as an employer. The School has dear procedures for rtsk management. antl-fraud, brfberylcorruptlon, procurement, glfting, behaviours, declarations of interest, complaints and whistleblowing. Its policles are subject to dated review. overseen by Board meM￿r5. At the start of each academic year, Directors are required to conflnm thal they understsnd thair safeguardlng obligations. key policies and expectations, and slgn the: Acc8Ptabl8 IT Use Agreement Form Code of Conduct and Exp8Ctatlon8 for Govemors Declaratlon of Interests Form Declaratlon of Offences Fomi Flt and Proper Person Declaratlon Form Directors are also expected to observe aspects of School Ilfe on a perlodlc b8sls during ,' normal School days, to Include rnonltorlng how pollclos and proceduf88 are Implernented. Organlsatlonal Management Board members are both Dlr8Ctors and Charity Tru8te88, and are legally responsible for the overall perfomiance and control of the School (Junior and Senior). The Board meets at leasl five times per year and hokls Away Days with the Senior Leadershlp Team a6 appropriate. The Head, Head of Junlor School, Senlor Deputy Head and the ChSef Operatlng Officer (or those Sn equlvalent 'actlng' roles) attend all Board m88tlng8. Other members of SLT and staff attend by Invitation

CHEADLE HULME SCHOOL Roport and Flnanclal Statemont8- Year Ended 31 August 2024 All Board sub-commlttees are chalred ty a Govemor and Indude a further 1-3 GovemcK8. They typically meet temily. with out•of<ommittee clrcul8tion to maintain pace on pressing matters. Each 8utrrtommlttee also Includes key senlor staff m8rnbers and other represenlatives as appropriate. The Governing Board reviews its subusiness and support the School in its strateglc aims. The Head Is responsible for overseelng all aspects of the d8y-to4lay running of the School. The Ch16f Opgratlng Officer and their team mana98 financlal, infrastruclure, slte operatlon8, 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-to day responslbilty lor plannlng, dlrecting and controlling the operatlonal and educatlonal 8ctlvStAes of the charfty. Senlor L68der8hlp T•am: Head Hel For part of thlg flnandal year, s8V8ral temporary (actlng) leadershlp role8 were In place: Senior Deputy Head for the Head Deputy Head (C￿currIcUlar and Communlues) for Ihe Senlor Deputy Head Senior Flnance Manager for the Chlef Operatlng Officer The protocol for setting remun8r8tlon for the Senlor Leadership Team Is: The Chalr of Ihe Board. together ¥￿th two other membors ol Ihe Board, Includlng the Deputy Chalr. agree the Head's remunerauon. The Chalr of Ihe Board and Ihe Head agr8e the remun8ratlon for the Chlef Operating Officer. Th8 Head, Working with the Chair of th8 Board and Chief Operating Officer, sets the remuneration for Ihe remalning members of SLT.

CHEADLE HULME SCHOOL Report and Financlal Statements- Year End￿ 31 Augu8t 2024 Group Structure and Relatlonshlps Cheadle Hulme School incorporates both the Junlor and Senlor School. It has one wholly owned subsidlary, Cheadle Hulm8 School Enterprises Ltd, established on 14 May 2013, to m8nage the School's lettings activities. Consolidated Flnancial Statements have not been prepared on th8 grounds that the subsldlary Is not material. The School has an ongolng relation5hlp with the Cheadle Hulrne School Bursary trust (formerly the Cheadle Hulme School 150th Anniversary Bursary Trust.) The School's Extemal Relations team raises funds for bursaries that are Invested and managed by the CHS Bursary Trust using a professional advisor. The Chair of the Trust Is also a School Govemor. Two other Trusteès are also Governors of th8 School. However, the Trust Is an independenl chaflty with Its own artAcle8 and objecllves; to apply Ihe trust funds to pay all or any part of the fees and related costs payable In respect of deservlng boys and girls who are being educated or ￿sh to be educated at Cheadle Hulme School in particular but not exclusively to Include school unifomis, school lunches, personal educational 8qulpment, school trips and transport to enable the puplls to attend Cheadle Hulme School.. Old Waconlans. Atl fom16r puplls and staff are con81dered to be Old Waconian8. Parents. Assoclallon. The CHS Parents, Assoclalion Is a separate organis8tlon, cons18ting of volunteer parenls who arrang8 evènts in coordlnatton wlth, for and on behalf of the School lo ralse funds lo provlde addltlonal experSences, equlprn8nt or support for non-core 8Ctivlties. More detsll about the work of tho Choadlo Hulrne School Bursary Tru•t and the Parents Assoclatlon can be found In the 2023.24 Impact Report.

CHEADLE HULME SCHOOL Report and Flnanclal Statements - Year Ended 31 August 2024 PRINCIPAL RISK8 Rlsk Management The Board, assisted by the SLT, ha5 examined and documented the major n'sks that th8 School faces. Th8 School's Risk Register Is compiled in accordance with the Charity Commisslon's "Charities & Risk Managemenf framework and is conslstent with the Commlsslon's Stalement of Recommended Practtce (SORP) 2015. The Sch¢xJl actlvely manages Its key rfsks and has developed systems Includlng 8 rolllng 'deep dlve, review, to rninimlse lik81ihood of hami to individuals or their families, reduce operational Impact, and, reduce financial or reputalional impact to the School. The key accumulated rlsks are; flnandal shock, compllance, safeguarding, cyber, fire, sportslgames Injury, travel, trlps, lone-worklng, estate management and compllance. Changes (or predicted changes) to tax, penslon cost increases, living wage rise, business rate rellef, charitable status, cornmoditylutllity cosls. Inflation, workforce, the outcome of court rullngs, recesslon, the potential lor Industrial unrest and envlronmental obligatlons are all wlthin slght of the 808rd. Dlrectors revlew the key rlsks, compllance and mlugatlng actlons on a regular basls vla the sub-committees, in direct dlscus5ion with key slaff andlor vla a dedlcated l iask The Sthool'8 financ88 rem8ln under vwy careful review. The strategles for managlng and mltlgatlng these key rlsks Induded: Contlnulng to refine 8fKI develop rfsk assessment and critlcal Inc4dent processes In Ilne with changlng context and govemment guldance. Educating and tralnlng staff in risk management. Continuous horizon scanning lo ensure Directors and the SLT are aware ol natlonal and local gov8mment thlnklng and pollcy, and taking actlon accordlngly. Understsnding the Impact of intemational aclivities 8.g. conflict, recesslon. Being aware of locallnatlonal changes In the educatlon sector, consldering Ihe Impact on the School and taking approprlate action, Monitoring and developing the School's admissiong process. Contlnuing to prepare and revlew the annual budg8t, flnancSal projections ar scenarfo plans. to Include changes in fees arKI remuneratlon. Contlnuing to ensure Ih8t the Risk Commlttee will focus on risks and compllance across the School, to maintain a full overslght. ensure coherence and promote standardisatlon of practice.

CHEADLE HULME SCHOOL Roport and Flnanclal Statements - Year Endod 31 August 2024 SECTION B: FINANCIAL Statement of Flnancl81 Acllvlt106 The School aims to make an annual surplus on It8 unrostricled funds, before depr8cl8tlon, of 10% of Incorne, in Ilne with the latest guldance from the Independent Schools Burs8rs' Associalion and from the School's 8uditor3 - Crowe LLP. A surplus of this level means the School can generale sufficient cash reserv&s to ensure It has an appropriate level of resources to maintain and enhance School facilitles, and have sufficient working capltal. Thls year, the School has not met the target of 10%, but has achieved a surplu8 on Its unrestricted funds, before depreclation and transfers of £1.59m {2022-23: £1,77m). This represents 7.8% of income (2022.23., 9Qh). After accounting for depredatlon, the Retalnod Surplus for the Year on unfestrkled funds amount8d to £0.6m (2022-23: £0.8m). Fees continuo to be Ihe rnaln source of funding, representing 90% of total unrestricted Income. School c8terlng accounts for approximately 5QA 8fKI gr8nts and donatlons for financlal asslstance represenl over 1 OA. Income from lettlngs to communlty groups and other thlrd partles l.e., CHSE, Is1088 than 10A. Bank Inlerest Was earned In the period. representing less than 2%. Balance Sheet The School'8 Not A888t8 have Increased by £0.91m. Tanglble Flxed Assets are £21.2m net ol deweciatlon (2022-23.. £20.gm). The School undertook planned capitsl projects during the summer months to enhance facllitles for students, Includlng refurbishment of Level 1 of the Maln Bullding, replacement of th8 all- Weather hockey pltch and enhancement of the Junlor School play spac8. Inveslment In streamlining and improvlng the robustness of the technology used by teaching 8tsff and the final pha88 of the solar panel Installation a180 took place through Ihe year. Cash at Bank and In hand ha8 Increased to £7.5m (2022-23: £4.Om) and Creditors falllng due wlthln one year have Increased to £5.3m (2022-23: £3.6m), prhnarlly renecting th8 Increase In fees in advance rec8lved. Overall, net current assets have Increased lo £2.9m. (2022-23: £0.9rn.) Credltors: Amounts falllng due after more than one year have Increased to £4.1 m (2022- 23: £2.7m) rellecling the fees In advance paid for more than one year. The School has drawn bank loans totalllng £1.75m. Th8 School'8 penslon Ilabllttles are surnmarised In note 22 In the accounts. Cash Flow SLltemenl Tha Net Increase In Cash for the year was £3.5m (2022-23: negative £0.4m), due to the payment of fees In advance,

CHEADLE HULME SCHOOL Report and Flnanclal Slatements - Year Ended 31 August 2024 Reserv•$ Total reserves amounted to £20.Om at 31 August 2024 (2022-23: £19.1m), ol whlch £390k (2022-23.. £80k) is restricted. The School has free reserv8s of £0.4m (2022-23: £0.2m). This is calcJJlated by taking unrestrlcted reserrfes of £19.6m. deducling Tanglble Fixed Assets of £21.2m, and addlng back Loans of £2.0m. The School has Slow￿ investment of it8 reserves In 2023-24 In order to preserve cash at thls time, The School ensure8 it has sufficlent cash balance8 to cover Its day-t(￿daY operations. Bank borrowings are carefully monitored. Hlstoflcally, the Dlrectors have aimed to malntaln free reserves at around zero. whllst the planned estates capital programme was completed. However, due to a rapid and slgnificant change in the cost of capital works at this time. Ihere has been a Ileliberate slowlng of Inveslment. Investment pollcy and obJe¢tlve8 The School does not hold any long-tarm Investments. Surplus c8sh18 held in Instant access bank accounts wlth the b8St Interest rate avallable. Dlrectors perfodically r8vl8w Ihe bank8 used by the School. However, th6re are no restrlctlons on the School's power to inv8St, Flnanclal Asslstance The School has provlded flnandal asslstance through bursarles for many year8. The School's maln Financial Asslslance Scheme is derived from current fee Income and is supplemented by Income from the - CHS Bursary Trust FurKI and other generous donors, Indudlng the Zochonls Charftabl8 Trust. Flnandal asslstsnce Is awarded to puplls on appllcatlon and following an assessment of parental means wNh awards ranging from 5Q/o to 1000/0 remission of fees. Flnancial assistance 18 8180 sKovided to help wlth the costs of educallonal School trIp8, transport, unlform and equlpmenl, where a substanlial award has already been made. This year the value of all bursarles, scholarshlps and other awards totalled £1.766rn (2022-23: £1.821m) and represented 8.6% of gross fees (2022_23.' 9.20A). Within this lotal. the value of means- tested bursarles totall8d £1,151m (2022-23: £1.193m) and represented 5.80/0 of gross fees (2022-23: 6.OYo). Thls provided support to 89 puplls (2022-23: 94) of whlch 37 (2022-23: 41) benefitted from a full remlsslon of fees. £21,965 of H8rdshlp funds were 8ward8d in 2023r24 (O awards In 2022123), Th8 School will continue Io feview requests to thls fund. Flnancial Factors To ensure the School contlnues to have financial stabillty and Ihe resources necessary to provlde the high standard of educatlon facllity and staff that parents and puplls expect now arKI In future year8, the School prepares and fegularly updates 4-year flnanclal projections Sncorporatlng scenarlo and sensitlvlty analysls. 10

CHEADLE HULME SCHOOL Report and Flnanclal Statements - Y•ar Ended 31 August 2024 As fees are the School's prlmary source of Income, the School Wofks wlth parents to ensure prompt payment of fees. For those parents having difficultles wlth payment of fees, the School takes action to Teach arrangements for ongoing payments. The School does ulilise 6xternal debt collection agencies. Dlr•ctor8' Re8pon8ibllltle8 The Board Is contldent thal the Dlrectors have complled wlth thelr duties In sectlon 172 (1) ol the Compantes Act. All key decisions are taken collectlvely by the Board. Board papers compfise comprehensive informatton detalling the risks 8nd opportunrtles fadng Ihe School and decislons are taken about promotlng the long-lem sustalnability of the School for its pupils. parents, staff. suppllers and Ioc81 community. All decisions taken are considered Carefully to ensure they are justifiabl8, appropriate and that they ￿11 beneflt the School and the environment It operates In. Secllon In (1) Statement The Board of Dlrectors have a duty to act In lh8 best Interests of the School and a150 In the best Interests of Its puplls, staff, parents and other stakeholders, as recognised beneficiari88 under charriy law, The Dlrectors fulfil Ihis duty by considering the long-lerm factors affecting the School and Ihelr impact on Its puplls, Stsff, parenls, partners, suppliers and local community. Tha School's commltment to provldlng an excellent education for Its puplls18 the key driver wÈthln Its Str8leglc plan and In rts target ol contlnued financlal sust81n8bility. The School ensures that engagem8nt wlth pupils, staff, p8r8nl8, ca￿rS. partners and other ' stakeholders Inforrns Ihe Board of Dlrectors, declslon rnaklng. Engagement takes place In a range of ways: Pupll• Pupll represents￿VeS have contlnued to meet regularly as part ol the CHSenate. whlch moets In the Lower School, Upper School arKI Slxth Form lo d13CUS8 key a￿a8 for review and improvement. Pupils have been encouraged to glve leedback on range of issues on an informal basis to their Form Tutors whilst more formal pup51 surveys have been conducted each temi on a year group basls. The pupll survey5 covered all aspects of School Ilfe and helped identify Issues whlch have aris6n or were Ilkely to affect the pupils, experience of School. In additlon, pupils In Year 10 have b88n partlclpatlng In the #Beew8118urv8y, a longltudlnal study of pupll wellbeing across Greater Manchester. Parnntsl carers The School continued to conduct P8renV carers surveys each term on a year group basls. 11 also encouraged feedback from parents at parent Informatlon evenlngs and by facllltating direct contact with teaching staff and members of the Senlor Load8rship Team. The School also held a number of parent forums and parents were given the opportunity to provlde feedback on the School's delivery and performanc8. staff The Employee Invofvement section at Annex C details how the School engag851ts staff.

CHEADLE HULME SCHOOL Report and FlnanGlal Ststement8 - Year Ended 31 August 2024 Communltl•s The School actlvely and dlrectly 8ngaged wlth the communhy groups who use the School's facilities In Ihe evenings. weekends and holiday periods to ensure suitable rlsk assessments and tralning were In place and that the servicés provided by the School met th8ir needs. Wlder partnership, community outreach and engagement impact is covered in the 2023-2024 Impact Report. Partner• & Suppllern The School relled on ils key 8uppliers and contractors for dellvery of goods and services. Appropriate measures were taken to ensure value and pri￿ was falrly 8ssessed and that the conlracts awarded met the needs of the School. Contracls are evaluated. with temily performance meetings; A tender process is conducted, as appropriale, when slgnificant fixed-term contracts explre. The rnaln suppliers are Sodexo for catering, Brltish Gas for utllities and Premiserve for deaning. DIRECTORS. RESPONSIBILITIES The Dlrectors are responslbl8 for pr8parlng the Dlrectors, Report and tho financl81 staternents In accordance with applicable law and regulatlons. Company law requires the Dlrectors lo prepare financial statements for each financlal year. Under that law the Dlrector5 have elected to prepare Ihe financial statements in accordance wllh Unlted Klngdom Generally Accepted Accounting Practice (United Kingdom Accounting Slandards and appllcable law). Under company law the Dlrectors must not approve the financial statements unless they are S8tisfled that they glve a tme and falr vlew of the stato of aflairs of the company and of the Income and expendllure of the company for that period. In preparlng those financlal statements. the Directors are requlrad to selecl sullable accountlng pollcles and applied them conslstenuy: Making judgements and estimates that are reasonable and prudent. Following applicable accounting standards and the Charities SORP 2015,. and state whether appllcable UK accounting standards have been followed, subject to any materlal departures dlsclosed and explalned In Ihe financlal statements. Preparlng the financlal Statements on the golng concern basls unless it 18 In8ppropr68te to presume that the company will continue in busln88S. The Directors are reSp￿sIble lor keeping ad8quale accountlng rocords th8t ar8 sufflclent to show and explain the companys transactions and disclose wlth reasonable accuracy at any tlme Ihe financial posltion ol the company and enable them to ensure that the financlal statements comply with the Companies Act 2006. They are also responsible for ' safeguarding the assets ol the company and hence for takirKJ reasonable steps for Ihe prevenllon and deteclion of fraud and other irregularities. GOING CONCERN The Dlrectors have due regard for the going concem of the Charity. The School prepares a detailed budget for the 12 months ahead as well as financial projeclions for 8t least 8 further 3 years. Actual perforrnance is monltored at least tem)Iy and cash balances a managed daily. The School contlnued to have 8trong pupll recrultment and made a poslllve Income and Expendltufe surplus which it uses to reinvest In Its facillti88. The Directors continue to undertake planning and f0￿casting including closely monltoring the UK politlcal and economlc situation and Its possible Impact for the School, Including workforce avallablllty and wages pressures and the impllcatlons of any changes to UK taxation as It applies to Independent schools. 12

CHEADLE HULME SCHOOL Report and Flnanclal Statements- Year Ended 31 August 2024 The dlreciors also keep under revlew the short and long-ienn lrnpact of geopolltlcal confllct Includlng Issues In supply chains. energy costs and other materlals costs. D1￿Ctors belleve that the school's financial resources and contlngency plannlng is sufficient lo ensure the ablllty of the School lo continue as a going concern for ihe foreseeable future, being al least twelve months from the dete of approval of th888 financlal statements and therefore have wepared the fln8nclal statements on a golng concern basls. STATEMENT A8 TO DI8CL08URE OF INFORMATION TO AUDITOR8 So far as the DIre￿orS are awara: Ihere Is no relevant audlt Infomiatbn of which the companrfs audltor8 are un8W8re, and; Ihe Dlrectors have taken all the Steps that ought to hav8 bean taken as a member In order to be aware of any Information ne8ded by Ihe audiiors In connectlon wilh preparing their report and to establish thal the company's audllors are aware of that Information. The Dlrectors have also taken all reasonable sleps lo comply wllh thelr obligallons as set out by the Charity Commission to acl in the best Interasts of Ihe charily and comply wlth thelr legal dutles under charity law, Includlng th8lr duty of prudence. Approval Thls report W88 8pproved by the Board on ￿ . S .2S Chrls Robèrts Direclor 13

CHEADLE HULME SCHOOL Report and Flnanclal Statem•nts- Y•ar Ended 31 August 2024 ANNEX A: Energy Data The School has begun uslng Planet Mark lo monitor and report energy use acros8 the School site. Planet Mark is an annual assessment and sustainability certification proorarnme which provides a robusl baseline to enable continuous improvement and targ8t 98tting to reduce the carbon emissions and energy consumption of the School operatlon8 and its estate. In Year 1 of the accredltatlon, the Installation ol 8Sle-wlde LED Ilghting significantly lowered electrlclty utilisatlon, and data reporting qualty assurances through Planet Mark has seen an lrnprovement in data capture {whlch has seen an Increase in energy dats reporled). but through a programme of engag8ment and communicatlon. the School h8s been able contlnue to drfve progress across energy savlng measures and to ddve behavloural change sulting In an overall reduction in energy use and associated greenhouse gas emisslons. More detalls about the School's commltmenl to saving energy can be found In the 202& 2024 Impact R8POrt. 2023.24 2022.23 2021-22 Energy U8• Ikwh) 3,408,011 3.440.286 3,984.556 Assoclated Greenhou￿£ omlsslon• (Tonn•• C02 •qulvalont) 633,710 719,950 730,411 Inten81ty ratlo Em1881ons p•r pupll 428 475 Assoclated greenhouse gases have been calculaled uslng the conversion lactor5 from the Dopartrnent for Business. Energy. and Industrial Standard, and using an average pupil number of 1480, Intensty ratio of emissions per pupil Is lower than 2022-23 due to the Introduct￿n of solar panels durlng the second half of the year. 14

CHEADLE HULME SCHOOL Report and Flnanclal Statoments- Yoar Ended 31 August 2024 Annex B: The School's Strateglc and Operatlonal Planj The School has 8 dear Ethos & MIs810n: Our School w8s bultt by free-lhinklng phi18nthroplsls in 1855 to provide a Ilberal, incluslve cfveducatlon lo orphans and necessrfous children. To this day, we Inspire every Waconian to use thelr CHS 8xperfenc8 to make a positive Imelong contributlon to our worfd. Our mlsslon and vlslon wlll be achieved Ihrough a Gulture ch8r8Cterised by compasslon. curiosity 8nd joy, bulft around connections ￿th people, our cofflmunity and our heritage. We passlonately belleve that an inclusive coeducation has never been more important- where pupljs 8mbr8c& dlfference and leam the value of respecting new 8nd dlverse ways of thinking. The School's Valuos underpln and gulde all aspect8 01 Ilfe at CHS, wh1181 provkllng a strong sense of Idenllty and purpose for th8 whole communlty, All members of the communlty are encouraged to uphold these prlndples in thelr Int8racllon8 wlth one another and throughout gach day. The 5 Waconian Value5 underpln and guide all aspects of Ilfe al CHS, whllst also provlding strong sense of Idenlty, and purpose for the bthole School communlty. They are: Intagrlty. Endeavour, Compa8slon. Ro8lll•nco and Contrlbutlon Work on the School's Strategic Plan h88 been paused pending a revlgw of th8 post-VAT landscape. Meanwhile. in-year Development Plans have been produced and fulfilled for all functlonal areas, wlth particular emphasis on maxirnislng the efficient use of resources and mlnlmising ov6r811 cosi. The medlum-temi aim Is to ensure that the quallty of educats'on Is preserved, whilst mlnimislng current and future fe8 increasé3, 15

CHEADLE HULME SCHOOL Report and Flnanclal Statements - Year End•d 31 August 2024 ANNEX C: Employmenl. Communlcatlon and Profe5slonal Development The School Is an equal opportunities employer and has achieved the conditlonal Invaslors In DiversSty (IID) standard, demonstratlng rAJmmitment to Diversity and Induslon across the School community. It has clear and transparent recrultment procedures that adhere to employment law, best practice and Departmenl for Education guidelines. The School conslders all Job applicants equally and against predetemiined criteria requlred for the post. The School undertakes to make all reasonable adjuslrnents to ensure that any applicant who fuffils the criteria. can be offered an Intervlew. The School meels Its obligatlons in relatlon to safoguarding: it meets safer recruitsnent stand8rds and undertakes any checks necessary to ensure the suitability of any staff or volunteers working with children, Dovelopment The School has 8 clearly defined development cycle for all employe88. Dlfferent systems are used for teachers and non-teachers, due to the nature of th61r roles. These systems are deslgned to enGourage regular conversation8 belween ernployees and their Ilne man8ger8, focusslng not only on professlonal development 8nd growth but also on wallbelng, work satlslacuon and longer-term tearn plans. The School runs Its own developmenl programme8 for R8cently-Qualffied leachers, and asplring Senlor and Mlddle leaders. The School has an annual budget for CPD aclivltles, accesslble to both t8achlng and non-teaching employees. There are professlonal learnlng communlty maetings for teachers which take place twice a term and weekly bre8kf88t CPD sesslons. Wellbelng Stsff wellbelng Is key to the School's appe818nd success. School prO￿des staff coachlng and menlodng for professlonal and personal developmenl and operates an Employee Support Scheme: an external organisatSon Is on hand 24n to provlde a broad range ol advice 8nd support (personal and work-related) on a confidenlial basis to all School staff. All staff have acc8ss to tha Inlernal HR department who offer 8UPPOrt and guldance on wellbeing matters. Beneflts The Sthool'5 employment contract also Includes varlous beneffts: access to th8 School's fitness and pool fadlities for staff and their families; on-site parklng: lunches; access to Prlvate Medlcal Insurance: and partial-fee remisslon for staff wlth chlldren in the Senior School. These benellts are regu18rly reviewed for impact, uptake and percelved value to the stsff. Employees wlth dlsabllitl•s The School undertakes lo make all reasonable adjustments to ensure that any candklate applying for a role at the School, and who is deemed appointable, would be able to cary oul their duties effeclively. Any member of staff with a disability. or becomes disabled during thelr employment, wlll not be dlsadvantaged In their opportunities for tralnlng arrfj development. 16

CHEADLE HULME SCHOOL Report and Flnanclal Statoments - Year Ended 31 August 2024 Where approprlate, speclallst tralnlng or Trsources are made avallable to allow them to develop thelr skllls and career opportunities. All employ888 are expected to treat dlsabled colleagues. puplls and visitors wilh the same dlgnlty and resp8Ct as thelr non-disabled counterparts. Any fonn of harassment of a person with a disabilty on account of thelr Impalrment Is unacceptable behaviour and Is potentially unlawful under the terms of the Equality Acl 2010 and the Protectlon from Harassment Act 1997. Th8 School has a rolllng programme of Improvements withln an estates plan to offer improved access and facillties for dlsabled siaff, pupils and visitors, to include gender- neutral and Incluslve toiletslwashroorns and the fadlity for the observance of normal religious practices. Employée Involvam•nl The School operates a frarnework for employee Infomiatlon and consultatlon whlch complles with the requlrernents of tha Infomation and Consultation of Employees Regulations 2004. The School actlvely consults with Its employees or their representative8 wlth the aim of taking the views ol employees Into account where decisions are made that are Ilkely lo affect th61r Interests e.g. working practlces, remunerallon. penslons and other b8neflts. Durlng this year. a Trade Union Recognition Agreement was negotiated with the major teaching unions and a new Staff Coundl designed to facllltate open dlscussion b8tween senlor leaders, governors and elected representatlves from across the staff body. Slnce August 2024, both the TURA and Staff Coundl have come Into oper8tlon. The School nvolves employees In dlsGu5sions regarding the development of the Strategic Plan and Infomis them on progress at least annually at INSET meelSngs. Employees are encouraged to present thalr suggestlon8 and vlews on all elements of th8 School, Communlcatlon The School communlcates with employees In a varfety of forms e.g. INSET day3, weekly staff briefings, all-staff emalls. half-lemily line managers, meetlngs. all-StBff meetlngs. team meetlngs and Away Days. A comprehenslve onlina Staff Slle acts as the primary source of Infonmatlon for all staff and Is updaled daily. Regular meellngs are held between management and employees to enable the free flow of information and Idea3. School4entred Inltlal Toacher Tr8lnlng (scirr) The School conllnues to act 88 a regional hub lor the Natlonal Modem Languages (NML) scirr. Four NML tralneps are placed each year at CHS and partner schools. The School has chosen to wlthdraw from the Maths and Physics (NMAPS) scirr due to the receipt of Very low numbers ol sultable appllcatlons. making continued Involvement unsustainabl8. All scirr tralnees to date have secured employment in state sedor schools. 17

CHEADLE HULME SCHOOL R8port and Flnanclal Statements - Yoar Endod 31 August 2024 Ind•pendent Audttoes R•port to t1￿ Memborj of Cho4dl• Hulm• School Oplnlon We have audited the financial statements of Cheadle Hulm8 School ('the charitable company,) for the year ended 31 August 2024 whlch comprise the Statement of Flnanclal Actlvltles, the Balance Sheet, the Statement ol Cash Flows and notes to the financ4al staternents. including significant accountlng pollcies. The financlal reportlng framewth that has been applled In their preparatlon Is appllcable law and United Kingdom Accountlng Standards, Includlng Flnanclal Rgporting Standard 102 The Flnanclal Reporting Standard appllcable In the UK and Republlc of Ireland (United Kingdom Generally Accepted AccounUng Pfactlce). In our oplnlon the ftn8ncial statements., give a true and fair vhw of the state of the charitable company's affairs as at 31 August 2024 and of its Incoming resources and appllcallon of r6sourc88, Indudlng Its Sncome and 8xpendlture for the year thon ended; have been properfy prepared In acGordance with Unlted Klngdom Generally Accepted Accountlng Practlce; and have been prepared In accordance with the requirements ol the Compani88 Acl 2008. Basls for oplnlon We conducted our audlt In accordance wlth Internatlon81 Stsndards on Audltlng (UK) (ISAS (UK)) and appllcable law. Our r85ponslbllitles under those standards are further descrlbed In th8 Auditor's responslbllities for the audll ol Ihe financlal statements section of our report. We aro independent of the charitable company in accordance wlth the ethical requirements that are relevant to our audlt of the financlal statements In the UK. Includlng the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with thes8 requirements. We bolleve that the audlt evldence we have obtalned Is sUlf￿lent and appropriate to provide 8 ba6ls for our oplnion. Concluslons rnlatlng lo Bolng con¢•rn In auditlng the finandal statements, we have conduded that the trustee's use of the going concern basls of accounting In the preparatSon of the financlal stal8menls Is appropriate. Based on the work we have performed, we have not Identtfied any material uncertalntles re18tlng to events or corKlitions that, indSvidu811y or collectlvely. may cast signiflcant doubt on the charitable company's abllity to continue as 8 going cnncem for a perfod of at least Iwelve months from when the flnancial statements are authorlsed for Issue. Our responsibilities and the responsibilities of the trustees wlth respect to going concem are descrlb6d In the relevant sects'ons of thls reporL Other Informatlon The trustees are responsible for the other information contained wllhln the annual report. The other Infomiation comprls88 th8 Snformatlon Included in the annual report. other than the financial statements and our audilor's feport thereon, Our opinion on the financlal statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form ol a8surance conclusion thereon. Our responsibllity Is to read the other 1nlom8tlon and, In doing so, consider whether the other information Is maierlally inconslstent with the financial slatements or our knowledge obtained In tho audlt or otherw188 appears to be materially mlsstated. If we Identlfy such material Inconsistencles or apparent Mate￿al misstatements. we are requlred to detennine whether th18 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 materlal misstatement of thls other Informatlon, are required to report that fact. 18

CHEADLE HULME SCHOOL Roport and Flnanclal Slatomenl$- Year Ended 31 August 2024 We have nothlng to report in thls r8gard. Oplnlon• on other mattord pr•8crlb•d by the Companles Act 2006 In our opinlon based on the work undertaken In the cours8 of our audit the information given in the trustees. report. which includes the difectors. report and the strategic report prepared for the purposes of company law. for the financial year for which the financial statements are prepared Is conslslenl with the financial statements: and the strategic report and the directors, report induded wllhln the trustees, report have been prepared In accordance wlth applicable legal requirements. Matters on whlch wo ar• requlr•d to report by excaptlon In light of the knowledge and understandlng of the charitable company and their environment obtained in the course of the 8udll, we have not idenlified material misstatements in the slr8teglc report or the dlrectors. report Induded within the trustee8' report. We have nothlw lo report In respect of the following m8tter5 In relatlon to which the Companies Act 2006 requlre3 US to report to you If, In our oplnion: adequate and proper accountlng record8 have nol been kept; or the flnanclal statements are not In agreement with the 8ccountlng records and retums; or C8rtaln dl8closures of tru5tee8' remuneratlon Specified by law are nol made: or we have noi received all the Informatlon and explanation8 we r8qulre ft)r our audlt Ro•ponslbllltl•• of tru8te•• As explalned more fully In the trustees. responslbllltles slatement set out on page 28 th8 trustees (who are also the dlrector8 of the charltable company for Ihe purpos85 01 company law) are responslble for the wep8ratlon of the financial statements and for belng satisfied that they glve a true and lalr vlew, and for such intemal control as the trustees determlne Is necessary to enable the preparation of flnanclal statements that are free from materlal misstalement, whether due lo fraud or error. In pr8paring the financlal statements, the trustees are responslble for assessing the charltable company's abllity to contlnua as a golng concern. dlsclosSng, as appllcable, matters relaled to going concem and using the golng concem basis of accounting unless the trustees either Intend to liquidate the charStable company Of to cease OP8ratk)ns, or have no reali8tic altem8tive but to do so. Audltorfs re•ponslbllltl•¥ lor tho audlt of the flnanclal •tatoment8 Our objectlves are to oblaln reasonable assurance about whether the finandal statements 85 a whole are free from matedal mlsstatement, whether due to fraud or error. and to Issue an auditor's report that includes our opinion. Reasonable assurance is a high16vel of assurance, but is not a guarantee that an audlt conducted In accordance with ISAS (UK) wlll always delect a material misstalem8nt when it exists. Misstatements can arise from fraud or error and are consldered material if, individually or in the aggregate. they could reasonably be expected to inlluence the economic decisions of users laken on Ihe b8sls of these financial statements. Details of the extent to which the audit was considered capable of delecting Srregularitl88, . including fraud and non-compliance with laws and regulatlons are set out below. A further descrlptlon of our responsibilities for the audrt of the flnanclal statements Is located on the Financial R8POrting Council's website at: ibillties. This d88cription forms part of our auditor's report. 19

CHEADLE HULME SCHOOL Report and Flnanclal Statemonts- Year Ended 31 August 2024 Extont to whlch the audlt was consldered capable of detectlng Irregularitlos, Includlng fraud Irr89ularlti8s. Including fraud, ara instances of non-compllance wlth laws and regulaiions. We identified and assessed the rlsks of materlal missl8lem8nt of the financial statements from irregularit5es. whether due to fraud or error, and discussed these between our audlt team members. We then deslgned and performed audlt procedures responslve lo those rlsks, including obtainlng audit evldence sufficient and approprlate to provide a basis for our oplnlon. We obtained an understandlng of the legal and regulatory frameworks wSthln which the charitsble company operates. focuslng on those laws and regulations thal have a dlr8Ct eff8Ct on the determinatFon of mat8rial amounts and disclosures In th8 finandal statements. The laws and regulations we consldered in this context were the Companies Act 2006, laxatlon leglslallon, together wlth the Charities SORP (FRS 102). We assessed the requlred compllance with these laws and regulations as part of our audit procedur85 on the related financlal Statement ilems. In additlon, we consldered provlslons of other18ws and regUla￿on$ that do not have a dlrect effect on the financial statements but compliance wllh whlch mlght be fundamental lo the charitable company's abillty to operate or to avold 8 material penalty. We also considered the opportunlties and IncentEves that may exlsi wllhln the charitable company for fraud. The law8 and regulatlons we considered In thls context for the UK operations were The Education (Independent School Standard8) Regulatlons 2014, Employment legislation and Health & Safety Legislatlon. Audltlng standards Ilmlt ttle required audlt procedures to Identlfy non-compllanee wlth these laws and regulations to enquiry of the Trustees and other management and inspection of regul810ry 8nd legal correspondence, ff any. We Identified the greate81 r5sk ol materlal impact on the financlal statements from Irr8gularltles, includlng fraud, to be within th8 tlming of recognition of other income and the overrode of controls by management. Our audlt procedures to respond to these risks Included enquirles of management and the Finance and Resources Commlttee about their own Identificatlon and assessment of the risks of irregularitles, sample testing on the posting of joumals. reviewing accountlng estlmates for bla58s, reviewing regulatory correspondence with the Charity Commisslon, Independent Schools Inspectorate, sample lestlng of other Income and readlng mlnutes of meetings of those charged with govemance, Owlng to the Snherenl limil8tions of an audit. thefe is an unavoidable rlsk that we may not have detected some mal8rial misstatemenls In the financial statements. even Ihough we hav8 properly planned and perfom18d our audlt In accordance with auditlng stsndards. For example, the further removed non-compliance wlth laws and regulations (irregularities) Is from the events and transactlons reflecled In the flnandal statem8nts, Ihe less Ilkely the inherently Ilmlted procedures required by auditing standards would identlfy it. In addition, as wlth any audll, there remained a higher risk of non-det8Ction of irregularitles. as these may involve collusion. forgery, intentional omissions. mlsrepr6sentab'on5, or the overrlde of Internal controls. We 8r8 not responsible for preventlng non-compliance and cannot be expected to detecl non-compliance wlth all law3 and r8gul8fjon8. 20

CHEADLE HULME SCHOOL Report and Flnanclal Statomonts- Year Ended 31 August 2024 Use of our report Thls report is mad8 solely to the charit8ble company's members, as 8 body, In accordance with Chapter 3 of Part 16 of the Companles Act 2006. Our audit work has been urKlertaken so that we might state to the charitable company's members Ihose matters we are required to slate to them in an audllor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume respon51blltty to anyone other than the charllable company and the charitable company's members as a body, for our audll work, for this report, or for the opinions we have formed. Vicky Szullst Senlor Statutory Auditor For and on behalf of Crow8 U,K. LLP Statutory Auditor St George's House 56 Peter Street Manchester M2 SNT Dale 29th May 2025 21

CHEADLE HULME SCHOOL Report and Flnanclal Statements- Year Ended 31 August 2024 STATEMENT OF FINANCIAL ACTIVITIES (Includlng an Incom• and •xpondltur• account) Unr08tr1cted Restrlcted Funds Funds Total 2024 Total 2023 Note INCOME Income from: Donations and legacS88 £'ooo £'ooo £'ooo £'ooo 263 332 595 246 Investsnents 155 Andllary tradlng Income CharFlable actNities 1,408 1.408 1,284 631 Totsl Incom• EXPENDITURE Charitable acllvltle8 Totsl Expondltur• N•t school Incomo for tha year boforo transfern 604 310 914 823 Transfers belween fund3 19 N8t movement In funds 604 310 914 823 Total funds broughtfofW8rd Total funds carried forward 21 The Slatement of Flnancial Activities includes all gains and losses recognised In the year. All acuvltles are dassed as continuing. The nots• on th• followlng pag•s forni part of th•80 Ilnanclal st•tomonts

CHEADLE HULME SCHOOL Report and Flnanclal Statements - Year Ended 31 August 2024 BALANCE SHEEr Company number: 3823129 Nots 2024 2024 2023 2023 £'ooo £'ooo £'ooo £'ooo Flxed a88ets T8nglbla assets 10 21,195 20,852 Current assets D8btors Cash at bank and in h8nd 12 867 7,558 681 4,025 8,425 4.706 Credltors: Amounts falllng due withln one year Loans Other 13 (200) (5,343) (200) (3,609) Net currenl as88ts1{Ilabllltleg) 2,882 897 Total assets less current Ilabllltles 24,077 21,749 Credltors: Amounts falling due after mor8 than ong y8ar 14 (4,097) <2,683) Net a8SOt8 19.980 19,066 Funds Unrestrlcted general funds Restrlcted funds 20 19 19,590 390 18,986 80 Total charlty funds 19,980 19,066 The financlal slatements were approved by the Board of Dir8clors on 21.S . 2K and slgned on ils behalf by:z C Roberts Direclor The notes on the followlng pages fomi part of the86 flnanclal 8tatwnents 23

CHEADLE HULME SCHOOL Roport and Flnanclal Ststements- Year Ended 31 August 2024 STATEMENT OF CASH FLOWS 2024 £'ooo 2023 £'ooo Cash flows from op¢ratlng actlvltles: Net movement In fund8 Adjusted fof.. Depreciation Interest payable Interest recelvable Loss on d18posal of fixed a8set8 (Increase)Idecrease in trade and othef rac8ivables Increasel{decrease) In trade and other payables (Decrease) in pension d8bl provlsion 914 823 950 83 {155) (341) (186) 3,495 (57) (123) (926> (94) Net cash Inflow Irom operatlng actlvltlo8 Cash flows from Inv•8tlng actlvltles Purch88e of tanglble flxed assets (1,327) (835) Interest rec8N8d 341 155 Nel cash ouffiows from Invo8llng actlvltl (986) (680) Cash flow8 from flnanclng actfvltlej Repayments of amounts borrowed Repayrnenl8 of finance lease (200) (200) (89) (71) Interest pald (88) (83) Net cash ouffiow8 from flnanclng •ctlvltl•s (377) (354) Net Increase In cash & cash oqulval•nt• 3,533 (468) o￿nIng calh & cash equlval•nl* 4,025 4,493 Closlng cash & cash aquivalont3 7.558 4.025 Mov6mont In cash & cash equfval•nts 3,533 (468) 24

CHEADLE HULME SCHOOL Report and Flnanclal Statements - Year Ended 31 August 2024 RECONCILIATION OF NET DEBT At1 SoPt•mb•r Cash At 31 August 2023 flow 2024 £'ooo £'ooo £'ooo Cash at bank 4,025 3.533 7,558 Bank loan due In less than one ye8r (200) (200) Bank loan due In greater than one year (1,950) 200 (1,750) 25

CHEADLE HULME SCHOOL Report and Flnanclal Statements - Year Ended 31 Augu8t 2024 NOTES TO THE FINANCIAL STATEMEKrs ACCOUNTING POLICIES Gonoral Inforrnatlon Cheadle Hulma School is a prlvate company lknlted by guarantee 8nd is non-profit making. Cheadle Hulme School is incorporated in England and Wales. The registered office Is Claremont Road, Cheadle Hulme, Cheadle, Cheshire SK8 6EF. Ba818 01 accountlng Cheadle Hulme School meets th8 deflnlllon of a publlc benefft entlty under FRS 102. The flnandal stst8ments have been prepared under the hlstorlcal cost convention. with the exception of certaln bulldlngs which have been Included at 8 valuatlon made In 1939 and In accordance with applicable accounting stand8rds, The financial ststements have been prepared In accordance wtth Accountlng and Reportlng by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance With the Financial Reportlng Standard applicable In the UK and Republlc of Ireland (FRS 102) (effectlve 1 January 2019) - (Charlties SORP (FRS 102)). and the Companles Act 2006. Golng concern The Directors have duo regard for the golng concern of the Charity. The School prepares detalled budget for the 12 months ahead as well as financlal projectlons for al least a further 3 yeafs. Actual perfomiance is monitor6d 8t leasl temily and cash balances are managed daily. The School continued lo havo strong pupll recrultment and made a posltive Income and Expendilure surplus which11 uses to reSnvest in its faclllties. Th8 Directors conlinue to undertake plannlng and forecasting InclLbding closely monltorlng the UK political and economlc sitU8tion and its posslble Impact lor the School. Includlng workforce av8ilablllty 8nd wag85 pressures and the Impllcatlons of any changeB to UK taxatlon as It applles to Independent schools, The directors 8190 keep under revlew the short and long-tem Impact of geopol1￿C81 conflict Induding Issues in supply chains, enargy costs and othar materials costs. Directors believe that . the school's flnancial resourc88 and continggncy plannlng16 sufficient to ensure the abillty of the School to contlnue as a going concem for the foreseeable future, belng at least twefve months from the date of approval ol these finandal statements and therefor8 have prepared the flnancial statements on a golng concern basls. Group accounts The charity has not prepared consolidated accounls as Ihe subsldlary undertaking may be excluded from consolidation on the basls that It is not materlal. These financial statements therefore present Information about the charity as an indlvldual undertaklng rather than as group. Incomo All incorne Is included in the Slatement of Flnandal Actlvitles when the School Is18gally entitled lo the Income and the amounts can be quantified with reasonable accuracy. Income mainly represents fees eam8d in respect of tultion glven durfng the year, Fees recelved In respecl of luitlon to be gN8n after the y88r end are included In credltors as fees received in advanco. 26

CHEADLE HULME SCHOOL Report and Flnanclal Statements - Year Ended 31 August 2024 NOTES TO THE FINANCIAL STATEMENTSIContlnuod... ACCOUNTING POLICIES (CONTD) Donatlons and glft8 All monetary donations and gifts are Included In full In the Stalement of Flnandal Actlvltles when recelvable. provided that there are no donor imposed feslrlctions as to the timing of the related 8XP8nditure, in which case recognition is deferred until Ihe pr&condltion has been met. Income {contlnued) Donallons under Gift Ald, together with associated income tax recoverles, are credlted 8s Income when Ihe donatlons are recelvable. Leg8aes are indLKled when the Charty Ss advlsed by the personal represenlatlve ol an estale that payment will be rnade, If the r8C8lpt Is both probable and measurable. These are included In the Ststement of Financial Activities. In¥￿trnent Incomo Investment Income, Indudlng associated Incom8 tax recoverles, Is recognlsed when receivabla. Expendlturn All 8xpendlture is accounted for on an accruals bas13 and has been classlfied lo the partkular actlvity where the cost relates dlrectly to that activity. Charlt8blo expondltur• This represents exp8ndlture Incurred on activltles In furtherance of tha charfty's oblecls (whlch includ85 SUPPOrt costs). Gov•rnanc• co8t8 Costs Incurred are those relallng to the organisatK>n and running of the charlty Itself and are Included In charitabl8 expendlture. Flx•d assots Fixed assets 8r8 Included In the balance sheel at historic cost excepl for certain building6 noted above. From 1 Aprll 1993 all plant and equlpment purchased wlth a cost of gr88t8r than £1 K18 belng capitalised and disclosed within the fixed asset note. D8preclatlon 18 provlded evenly on the cost of p18nt and equlpment to wr6t8 them down to Ihelr aslirnated residual values over thelr eXP￿ted useful economlc live8 of &20 years. Infomiatlon Technology equlpment is wrltten down over 4 or 5 years. Fixtures and fittings are wrltten down over 10 year8. Bulldings are being depreciated over a lrfe of 50 years. Cert8ln Improvements to propertles are depreclated ovar thelr esllmated useful Ilve8, ranging from S to 20 years, Taxatlon The School is not Ilable to taxatlon on the results of Ils charitable aclivltles as It Is a r8glstered charlty. Investments Investments in sub8idiaries ar8 measured at cost less accumulated ImpairmonL 27

CHEADLE HULME SCHOOL Report and Flnanclal Statements - Yoar Endod 31 August 2024 NOTES TO THE FINANCIAL STATEMENTS Icontlnuad... ACCOUNTING POUCIES (CONTD) Pen8lons School stsff are members of one of two penslon schemes. Teachers. Pension Scheme ig a defined benefit scheme and Independent School's pension scheme stlll open to members Is defined contrlbution. There is also a further defined benefil scheme with no active members. More detsils of the sthemes are given in note 22. Dellned Beneflt Schomo8 Teach si ch Full-time and part-time teaching staff employed under a contract of service are eligible to contrlbute to Ihe Teachers, Pension Scheme (TPS). The TPS, a statutory, contributory, final salary scheme Is adminlstered by Capita T8achers' Penslons on behalf of the Department of Education. As the School is unable to identify its share of the underlying (noiional) assets and liabillties of the scheme. the School has taken advantage of the exemption in Financial Reportlng Stsndard (FRS) 102 and has accounted for Its contrlbutions to the scheme as If11 were a defined contrlbutlon scheme. The pension costs for the scheme represent the contrfbutlons payable by the School In the year. More details of the schemes are given in note 22. Dollned Contrlbutlon 8chemo8 chem Non-teaching members of stsff 8re offered mernbershlp of the Independenl Schoo18' Penslon Scheme (ISPS) Defined Contrlbulion section. The contributlons pald by the Sch¢)ol durlng the year are charged to the Statement of Flnanclal Actlvltl89. Non•teachlng members of staff appolnted prlor to 1 September 2013 were eliglble to be members of the ISPS funded multl-employer Defined 88nefit section. The scheme Is closed to new employees. As the School is unable lo identify its share of the underlylng (notk>nal) assets and liabilitles ol the scheme, the School has laken advantage of the exemption in Financlal Reporting Standard (FRS) 102 and has accounted for its contributions to the scheme as if It were a deflned contributlon scheme. More detalls of the schemes are given In note 22. 11 the actuarial valuatlon of the scheme raveals a deficlt, the Dlrectors wlll agree a recovery plan to elimlnate the deflcit over a 8p8clfied perlod. This Is held as a Ilablllty In tho flnanctal ststements. as delailed in note 16. The penslon costs for the scheme represent the contrlbutlons payable by the School In the year. Reserves The School has 8 number of restricted Income funds to account for situations wthere an Income Stream requires that the IncA)me must be spent on a partlcular purpose. All other funds are cla8sified as unrestrlcted fund8. 28

CHEADLE HULME SCHOOL Report and Flnanclal Statements- Year Ended 31 August 2024 NOTES TO THE FINANCIAL STATEMENTS Icontlnued... CRITICAL ACCOUNTING JUDGEMENTS ANO KEY SOURCES OF ESTIMATION UNCERTAINTY In applying the tharity'8 accounting policies, the Directors are required to make ludgenwnts. estlmates and assumptlons In delermlning the carrying amounts of assets and Ilabllltl8s. The DSreclors' Judgements, estimates and assumptions are based on the best and most reliable evidence available al the tirne wthen the decisions are made, and are based on historlcal experlence and other factors Ihat are consldered to be applicable. Due to the inherent subjecti￿ty involved in making such judg8m8nts, estimate5 and assumptlons, the actual results and outcomes rnay differ. The esthnates and underlylng assumptions are revlewed on an ongolng basis. RevEsk)ns to accounting estimates are recognised in the period in vthich the estimate is revised, if the revlsion affects only thal perlod. or In Ihe peflod of the revlslon and future p8riods, if Ihe revision affects both current and future perlods. Crtical accounllng Judgements The critical accounting judgements that the Dlr8Ctors have mada In the process of applying th8 charlty's accounling policies that have the most slgnlficant effect on the amounts recognised In the statutory financial statements are dlscussed below. Penslon dellclt provlslon The charity has an obligatkln to pay deficit lundlng contrlbutions tOW8rds the multl- employer deflned benefit penslon scherne. This provlslon Is dependeni on a number of f8clor8 Includlng dlscount rate. Ilfe expectancy and asset valuatlon8. The a88umptlon8 refiect hl8toric81 experlence and ￿rrent trend6. Key sources ol estlmation unc8rt8lnty The key assumptions conceming the future, and olhar key sources of ostlmatk)n uncertalnty. that have a slgnificant rlsk of cau8lng a Mate￿81 adjustment to the carrySng amounts of 888ets and 11ablll￿es wlthln the next financlal year are dlscussed below. Determlnlng resldu81 values and useful economlc Ilves of propty. planl and equlpment The charfty depredales tanglble assets over thelr estlmated useful lfves. The estimatlon of the useful lives of 8SSets Is based on hi8toric perft)miance as well as expectstlons about future use and therefore requires estlmales and assumptlons to be applied by the Direclors. The aclual lives of these assets can vary dependlng on a varlety of factors. Including t8chnologic81 innovation, product Ilfe cycles and maintenance programmes, Judgement is applled by the Directors when detemiining the r&sldu81 v81ue8 for planL rnachlnery and equlpmant, When determinlng the residual value, th8 Direclors aim to assess the amount that the chartty would currently obtaln for the disp0581 of the asset, If It wer8 already of the conditlon expected at the end of Its useful economic Ilf8. Where possible thls is done with reference to external market prf￿s.

CHEADLE HULME SCHOOL Report and Flnanclal Statem•nts- Yoar Ended 31 August 2024 NOTES TO THE FINANCIAL STATEMENTS IConllnu•d... CHARITABLE ACTNrriES- FEES RECEIVABLE 2024 £'ooo 2023 £'ooo Fees rocelvabl• con8lst OTr. School fees Loss.. total bursarles and scholarships 20,397 1,766 19,742 1.822 18,631 17,920 CHARITABLE ACTIVITIES - OTHER INCOME 2024 £'ooo 2023 £'ooo Caterfng fees Entrance and registratlon fee8 After School and other clubs Incom8 from CHS Entefprfses Olher Income 1,047 50 120 110 81 1,007 40 105 117 16 1.408 1,285 INVESTMENT INCOME Total 2024 £'ooo Total 2023 £'ooo Bank Interest 341 155 341 155 30

CHEADLE HULME SCHOOL Report and Flnanclal Statements - Year Endod 31 August 2024 GRANTS AND DONATIONS RECEIVABLE Unrestrfcled Funds £'ooo Reslricted Funds £'ooo Total 2024 £'ooo Grants recelved for Bursarles from: CHS 8ursary Trust Biology legacy Individual donor bursary donations Peter Kershaw Income 183 183 332 74 332 74 263 332 595 Unrestrlcted Funds £'ooo R8strlcted Funds £'ooo Total 2023 £'ooo Grants received lor Bursaries from: CHS Bursary Trust Oglesby Trust STEM and ART bursary donatbns Peter Kershaw Income 180 10 51 10 51 246 246 31

CHEADLE HULME SCHOOL Report and Flnanclal Statements - Year Ended 31 August 2024 ANALYSIS OF TOTAL EXPENDITURE Staff Costs £'ooo 2024 Total £'ooo Oth•r £'ooo Charitable expenditure 14,500 5,561 20.061 Staff Co8t8 £'ooo 2023 Total £'ooo Other £'ooo Charitable exp8ndlture 13,461 5,321 18,782 Total expendlture are stated after charglng: 2024 £'ooo 2023 £'ooo D6pr8clatlon Audltor's remuneration - audit - non-audlt (other assurance servlces) 950 14 15 32

CHEADLE HULME SCHOOL Report and Flnanclal Statements - Year Ended 31 Augus12024 NOTES TO THE FINANCIAL STATEMENTS Icontlnued... STAFF COSTS 2024 £'ooo 2023 £'ooo St8ff costs wera as follows:. Salaries Soclal securlty costs Pension costs Prlvate medlcal Insurance 11.108 1,121 2,184 87 10,359 1,068 1,968 65 14,500 13,461 Included wlthln wages are t8rrnlnatlon and voluntary severance payments of £130k (2022-23.. 2k>. The average numb8r of ernployees In the year analys8d by fvnctlon was.'- 2024 No 2023 Teachers Fund raislng and publlcity Managemenl and admlnlstration 1TI 174 137 142 320 323

CHEADLE HULME SCHOOL Report and Flnanclal Statement8 - Yèar Ended 31 August 2024 NOTES TO THE FINANCIAL STATEMENTS IContlnu•d .-. STAFF COSTS (CONTD) The followlng analysis shows the number of hlgher pald staff In the followlng ranges, Emoluments indude salary, taxable benefits in kind and other payments to employees. 2024 No 2023 No £70,000 to £79,999 £80,000 to £89,999 £90,000 to £99,999 £100,000 to £109,999 £110.000 to £119.999 £130,000 to £139,999 £150,000 to £159,999 £160.000 to £169,999 £170,000 to £179.999 Retlrement benefits under defined benefit and defined contributlon 8chem88 are accrulng for the above Staff. No Dlrecior received any remuneration during Ihe pedod. One (2022-23: One) dlrector received relmbursed expen888 and expenses paid directly to thlrd P8rtle8 of £39 (2022-23: £153> durlng the period. The key management personnel of the chartty comprfse Ihe Dlrectors, the Head. three OepLrty Heads. the Chlef Operating Officer, the Senior Deputy Head, the Head of Juniof School and the Development Director. The total employee benefits of the key managemenl personnel of Ihe Charlty were £1,3m (2022-23: £901 k). The reason for the InC￿aSe In costs Is due to temporary roles being In place for part of Ihg year. As a resull, the Dlreclors have detemiined th888 Go8t8 are not Indicative of a nomial year.

CHEADLE HULME SCHOOL Report and Flnanclal Statements - Year Endod 31 August 2024 NOTES TO THE FINANCIAL STATEMENTS Icontlnued ... 10. TANGIBLE FIXED ASSErs Froehold Land and Bulldlngs £'ooo Plant and Equlpmenl £'ooo Total £'ooo Co8t or valuatlon At 31 August 2023 Additions Revalu8tion8 28,311 797 2,402 530 30,713 1,327 At 31 August 2024 29,108 2,932 32,040 Deprnclatlon At 31 August 2024 Charged in year Disposals 8.633 675 1,228 309 9,861 At 31 August 2024 9,308 1,537 10,845 Net book valua At 31 August 2024 19,800 1,395 21,195 At 31 August 2023 19.678 1,174 20,852 Flxed a88ets are Included In the balan￿ sheet at the followlng values:. Land - at historic cost Bulldings at 1939 valu8tlon wlth Subsequent addltlons at cost Equipment - at cosl As records are not avallable bad(10 1939 and 88 a result ol the pass8ge ol time, the 1939 . valuatlon used lor buildlngs Is deemed to ba cost lor the purpose of FRS 102. All the tanglble flxed a8set8 are used for dlrect charitable purp05e8. As at 31 August 2024. the Sthool had caplt81 commitments of £27k in relatSon to playground works, wllh works expected to comm8nce durfng the 24125 finandal period. 35

CHEADLE HULME SCHOOL Report and Flnanclal Statements - Year Ended 31 August 2024 NOTES TO THE FINANCIAL STATEMENTS Icontlnued .., 11. INVESTMENTS Historic cost as at 31 August 2023 and 2024 The above inv8Stm8nt represents 100% of the issued ordlnary share capital of Cheadle Hulme School Enterprlses Llrnlled. The registered offlce of Cheadle Hulme School Enterprises Limited is Claremont Road, Cheadle Hulme, Cheadle. Cheshire SK8 6EF. The principal actlvlty belng the lettings of the school premlses. As at 31 August 2024, Its reserves stood at £183,893 (2022-23 - £137,490) and Its profit for the year was £183,893 (2022-23 - £137,490). 12. DEBTORS 2024 £'ooo 2023 £'ooo School debtors Prepayments and ac(xued Income Amounts owed by assoclated undertaking8 Ch8adle Hulme School Bursary Trust Fund Olher debtor8 81 351 101 290 59 517 51 681 13. CREDITORS: AMouKfs FALLING DUE WITHIN ONE YEAR 2024 £'ooo 2023 £'ooo Bank108ns (note 15> 200 200 Trade (¥edltors School fees in advance (note 17) Other laxation and Soclat Security Olhar credllors , Accruals Sundry School pupils, accounts Cheadle Hulme School Bursary Trust Fund Pension deficll provlslon (note 16) Obligations under finance leases 671 3,213 255 267 404 349 648 1,355 249 478 451 69 175 107 77 107 77 5.343 3,609 36

CHEADLE HULME SCHOOL Report and Flnanclal Statements - Year Endod 31 August 2024 NOTES TO THE FINANCIAL STATEMENTS Icontlnued ... 14. CREDITORS: AMOUNTS FALUNG DUE AFTER MORE THAN ONE YEAR 2024 £'ooo 2023 £'ooo Bank loans - secured (note 15) School fees paid in advance {note 17) Pension deficit provision (note 16) Obllgations under finance leases 1.550 1,763 651 133 1.750 708 223 4,097 2,683 There are loans, one Is a varlable loan of £1 M payable at 1.7% above SONIA and tho second is £2M at a fix8d rat8 of 3.51 %. Both loans are repayable quartedy in equal Snstalments unlll 2026 and then a lump surn payment of £1.45M. All loans are secured by a charge ovor the land and bulkllrvJ8 of the School. 15. CREDITORS: LOANS Loans are rep8yable as follows; 2024 £'ooo 2023 £'ooo In one year or1888 Between one and two year5 Between Iwo and five year8 In five yoars or more 200 200 1,350 200 200 1.550 1,750 1,950 37

CHEADLE HULME SCHOOL Report and Flnanclal Statements- Year Ended 31 August 2024 NOTES TO THE FINANCIAL STATEMENTS IContlnu8d ... 16. CREDITORS: PENSION DEFICIT PROVISION Induded within Creditors due withln one year 8nd more than one year Is a mulU-employ8r deflned benefit penslon scheme deficit and the estimated employer debt. This debt relates to the Independent Schods, Pension Scheme and Ihe GrovAh plan. Followlng the valuatlon of the scheme as at 30 September 2017. the contdbulions payable by lh8 employer have been cornmunicated relatlng to recovery of the deficit over the 13 years to 31 August 2029. As of the ba18nce sheet date the estimated discounted employer deficit is detailed below. 2024 £'ooo 2023 £'ooo P8nslon deflclt provlslon as at 1 S6Ptember 2023 Deficil contributlons pald Remeasur8ment of defined benefit penslon 815 (107) 47 (104) 12 Penslon deficit provision as at 31 August 2024 Less: amount due wlthln one year 755 (104) 815 {107) 651 708 17. CREDITORS: DEFERRED INCOME 2024 £'ooo Al 1 September 2023 Recelv8d during the year Dlscounts given during the year Released to Income for the year Al 31 August 2024 1,357 4,961 4,976. Deferred Incom8 represents School fees paid in advance and fee deposlts repayable upon puplls leavlng Ihe School. FINANCIAL INSTRUMENTS 2024 £000 2023 £000 Flnanclal assets measured 81 amortlsed cost (a) FSnanclal Ilabilities measured at amortised co8t (b) 7,619 4,361 4,084 2,781 (a) (b) Flnancial assets include cash, trade and f88 debtors and other deblofs Flnancial Ilabilities indude deposits, trade creditofs, Other creditors and obligations under finance18ases.

CHEADLE HULME SCHOOL Report and Flnanclal Ststements- Y¢ar Ended 31 August 2024 NOTES TO THE FINANCIAL STATEMENTS Icontlnued ... 19. RESTRICTED FUNDS Balanc• 1 September 2023 £'ooo Balance 31 Augus1 2024 £'ooo Income Expondfture £'ooo £'ooo Transfers £'ooo Hardshlp fund Biology legacy Mu8ic and Languages Fund Speclfic student funds 69 (22) 47 332 332 10 10 These restrlcted funds rolate to furKls recelved by the School for use for the purpos88 stipulated by the donor. Hardship fund was created lo pro￿de financlal support to lamillas struggllng due to the Coronavlru8 pandemlc. Blology legacy was created to provide equipmenl for the labDr8torles and field tdps for the pupllg 01 the Biology Department, Specific Student funds were donallons made by indlvidu81 donor8 for speclfic students. Balance 1 S•ptember 2022 £'ooo Balan 31 Augusl 2023 £'ooo Incom• Exp•ndlturn £'ooo £'ooo Trnn8f•rs £'ooo Hardshlp fund Muslc and langu8ge8 fund Sp8cIfiG student funds 69 10 10 (4) 80 39

CHEADLE HULME SCHOOL Report and Flnanclal Statements - Year Ended 31 August 2024 NOTES TO THE FINANCIAL STATEMENTS Icontlnued ... 20. UNRESTRICTED FUNDS Balanc• 1 Soptomber 2023 £'ooo Balanc• 31 Augu81 2024 £'ooo Income Expendlture Transfers £'ooo £'ooo £'ooo General 18,986 18,986 20.643 20.843 20,039 20.039 19,590 19,590 There has been no transfers between unr8strlcl8d and rostrfcted fvnds In the perlod. Balance 1 September 2022 £'ooo Balance 31 August 2023 £'ooo Income Exp•ndltur• Trnnsfern £'ooo £'ooo £'ooo General 18.159 18,159 19,605 19,605 18.778 18,778 18,986 18,986 21. ANALYSIS OF NEf ASSETS BEfwEEN FUNDS 2024 Not Curr•nt Assetsl (Llabllltle• £'ooo 390 Tanglbl• Flx•d Assets £'ooo Long.T•mi 2024 Total £'ooo 390 £'ooo Restrlctod Fund8 2023 Not Curront Assetsl ILSabllltles) £'ooo 80 Tanglblo FIX￿ Assets £'ooo Long-Torm liabllltleg £'ooo 2023 Total £'ooo Restrlcted Funds Unr•Btrlctod Fund8 817 85

CHEADLE HULME SCHOOL Report and Flnanclal Slatemonts - Year Ended 31 August 2024 NOTES TO THE FINANCIAL STATEMENTS Icontlnued ... PENSION8 Teachers, P•nslon Schom• The School particlpates In the Teachers. Penslon Scheme (Ihe TPS.) for its leaching staff. The P8nslon charge for the year includes contributlons payable to the TPS of £1,971 k (2022-23: £1.683k) and at the year-end £231 k (2022-23: £196k} was accrued In respect of c<￿trIbutionS to this scheme. The TPS Is an unfunded multl-ernployer defined benefits penslon scheme governed by The Teachers. Pensions Regulations 2010 (as amended) and The Teachers. Pension Scheme Regulatlons 2014 (as amended). Members contribute on a 'pay as you go. basis with contributions from members and the employer being credited to the Exchequer. Retlrement and other penslon benefits are pald by public funds provlded by Parllament, The employer contrfbutlon rat8 Is s8t by the Secretary of State followlng schéme valuatlon8 undertaken by the Government Actuary's Department. The most recent actU8rial valuatlon of the TPS was prepared as at 31 March 2020 and the Valuation Report was publlshed In October 2023. Followlng the Mccloud judg8ment, the rem8dy proposed that when benellts become payable. ellgible members can select to receive them from either th8 reformed or18gacy schemes for the perlod 1 Aprll 2015 to 31 March 2022. The actuades hav6 assumed that members are Ilkely to choose the option that provldes them wlth th8 9reater beneflts, and in preparfng the 2020 valuatlon have valued the 'grealer value, benefits for groups of relevant members. The valuallon conftmi8d that the employer contrfbutlon rate for the TPS have Increased from 23.6% to 28.6Yo from 1 April 2024. Employers are also required io pay a scheme adminlstration levy ol 0.08% glvlng a totsl employer contrlbutlon rate of 28.68%, Independent Schools, Pon•lon Scheme Cheadle Hulme School partlclpates In The Independent Schools, P8nslon Scheme ('Ihe Stheme,) which has a multkemployer deflned benefit scheme sects'on and a defined contribulion Section. The Sch8me is contract8d-out ol the Slate scheme. Whh effect from 1 November 2016 811 member5 of the Independent School, Penslon Scheme moved frcTh the Defined Benefit sectlon to the Defined Contrlbution secllon. As at the balance sheet date Ihere were no actlv8 mernb8r8 of the Deflned Benellt Scheme employed by Cheadle Hulme School (2022-23: no 8Ctiv8 membors). There were 127 (2022-23: 127) members of the Defined Contdbutlon Scheme. Durtng the accounung p8rlod endod 31 August 2024 Cheadle Hulme School pald 8mployer8 contributions of 10% and 0.6% for life cover In respect of the Defined Contribution Scherne. Tho scheme is a multi-employer scherne which provides beneffts lo some 61 non-assoclat8d employers. The scheme is a defin8d benefit scheme In the UK. 11 Is not posslble for the company to obtain sufficient inforniatlon to enable St to account for the scheme as a defined benefil scheme. Therefore, it accounts for th8 scheme 88 8 defined conlrlbutlon scheme. 41

CHEADLE HULME SCHOOL Report and Flnanclal Ststemenls - Year Endod 31 August 2024 NOTES TO THE FINANCIAL STATEMENTS IContlnu•d ... PENSIONS (contlnued} The scheme18 subject to the funding legislation outlined in the Penslons Act 2004 which came into force on 30 Dec8mb8r 2005. Thls, together wlth documents Issued by the Penslons Regulator and Technical Actuarial Standards Issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational penslon schemes In the UK. The scherne18 dassified as a 'last-m8n 81andlng 8ffangement'. Therefore, the company18 potentially liable for olher participating employers, obligatlons If those employer3 are unable to meet thelr share of the scheme deficlt following withdrawal from the scheme. Participating employers aro legally requlred to meet thelr Share of the Scheme deficlt on an annulty purchase basis on wlthdrawal from the scheme. A full 8cluarlal v81uatlon for the scheme was carried out wlth an effectlve date of 30 September 2020. Thls acluarlal valuatlon was certlfied on 22 December 2021 and showed assets of £201.1 m. li8bilities of £256.3m and a defidl of £55.2m. To eliminate this fundlng shortfall, the trustees and the partlcipating employers have agreed that additional contributions will be pald. In comblnatlon from all employers, to th8 scheme a8 follows: Deficlt conlrlbutions From 1 September 2022 to 30 June 2032,, £2,687,000 per annum (payable monthly and Incr8a8lng by 3% on each 1•1 Seplember) Note thal the schem8'8 previou8 valuatlon was cathed out wlth an effectlve date of 30 September 2017. This v8luatlon showed assets of £149.4m, Ilabilltles of £187.6m and 8 d8flclt of £38.2m. To ellminale this funding shortfall, the Truslee has asked the partlcipating employers to pay addltional contrlbutions to the scheme as follows: Deflclt contrlbutlon8 From 1 September 2019 to 31 April 2030: £2,387.357 per annum (payable Monthly and Increaslng by 3% on each 1 st Seplember) The recovery plan contrlbullons 8re 8llocat8d to each p8rt1clpatlng ernployer In Iln6 With thelr e8tlm8ted share ol the scheme1Sabililie8. Whre the scheme18 In deficlt and where the company ha8 agreed to a deficSt fundlng arrangement the company recognises 8 liabllity for this obligatlon. The amount recognlsed Is the nel present value ol the deficlt reduthon contributlons payable und8r the agreement that relates to th8 deficit. The present value Is calculated using the dlscount rat8 detailed in these disclosures. The unwlndlng of the dlscount rate Is recognlsed as a financ8 cost. Tho Growth Plan Cheadle Hulme School also participates In The Growth Plan whlch Is a mul￿-8Mployer scheme. The scheme Is a multl-ernployer scheme whlch provlde3 benefils lo some 638 non4ssodated particlpatlng employers. The scheme is 8 defined benefft scheme In the UK. It Is rk)t possible for the company to obtain sufficlent Inforrnatlon to enable it to account for the scheme as a deflr benefit 8Gheme. Therefor8 it accounts for the scheme as a defined contributs'on scheme. 42

CHEADLE HULME SCHOOL Report and Flnanclal Statomants - Year Ended 31 August 2024 NOTES TO THE FINANCIAL STATEMENTS Icontlnued .. 22 PENSIONS (contlnued) The scheme Is subject to the fundlng leglslatton outllned In the Penslons Act 2004 ￿lch carne into force on 30 December 2005. This, together wlth documents issued by the Pensions Regulator and Technical Actuarial Slandard8 Issued by the Flnanclal Reportlng Councll, set Dut the frarnework for funding defined b8nefft occup8tlonal pension schemes in the UK. The scheme Is classified as a 'last-m8n standing arrangèment,. Therefore the companylg potentlally Ilable for olher participating employers. obligations if those employers are unable to me8t thelr share of the scheme deficit follf)wing withdrawal from the scherne. Partlclpatlng employers are leg811y required to meet thelr share of the scheme deficfl on an annuity purchase basis on withdrawal from Ihe scheme. A fvll actuarlal valuation for the gcheme wa8 fArrkd out at 30 September 2020. Thls valuation showed assets of £800.3rn, liabillties of £831.9m and a deficit of £31.6m. To 81imlnate thls lundlng shortfall, the Trustee has asked the partlclpatlng employers to pay additlonal contributlons to the 8chem8 as follows.. Deficit contrtbutlon8 From 1 Aprll 2022 to 31 January 2025: £3,312,000 per annum (payable rnonlhly) Unless 8 concesslon has been agreed with the Trustee the temi to 31 January 2025 applies. Note that the scheme's prevlous valuatlon was carried out wlth an 8ffectlve date of 30 September 2017. This valuatlon showed assels of £794.9m, Ilabillties 01 £926.4m and a deficit of £131 .5m. To eliminale this fundlng shortfall. the Trustee asked the parucipating employers to pay addltlonal contrlbutlons to the scheme a8 follow8: Deficlt contrlbutions From 1 April 2019 to 30 Septembw 2025: £11.243,000 per annum (payable monthly and Increasing by 3% each on 1st Aprll) The recovery plan contrlbutlons are allocated to each p8rticlpatlng employer In Ilne wlth th8lr e81imated 8har8 of th8 Serles 1 and Series 2 scheme Ilabilitlè5. Where Ihe scheme is in deficll and where ihe c¢xnpany has agreed to a deficll fundlng arrangement the company recognises a liabillty for thls obligation. The amount recognlsed is the net presenl value of the deficll reducllon conlrlbullons payable under the agreement that relates to the deficit. The present value Is calculated using the dlscount rat8 detai18d In these dlsclosures. The unwinding of the dlscounl fate is recognised as a finance cost. 43

CHEADLE HULME SCHOOL Report and Flnanclal Slatoment8- Yoar End•d 31 August 2024 NOTES TO THE FINANCIAL STATEMENTS Icontlnuod ... NOTES TO THE FINANCIAL STATEMENTS Icontlnuod ... 23. POST BALANCE SHEET EVENTS In December 2024, The Pensions Trust approved a recovery plan that VAII Increase future pension payments by approxlmately £919,000. These additlonal contrlbutions, which will be Incorporated into next year's provision, rnlate to the Independent Schools, Penslon Scheme and Ihe Growth Plan. 24. RELATED PARTY TRANSACTIONS Included wlthln debtors within one year is an amounl of £289,537 held by Cheadle Hulme School Bursary Trust (fomierly known as the 1501h Annlversary Bursary Trust) on behalf of Cheadle Hulme School (2022-23: Included within creditors within one year13 an amount of £175.360 held by Cheadle Hulme School on behalf of Cheadl8 Hulme School Bursary Trust). Dr D N Rlley, Mfs C Boyd, M8 8 Walm818y and Mr S Abraham are trustees of Cheadle Hulme School Bursary Trust. During the year, Cheadle Hulme Sch¢y)18ursary Trust granted bursary money to Cheadle Hulme School amounling to £183,00012022-23: £180.000). Included ￿thIn debtors within one year Is an amount of £101,398 (2022-23.. £54.619) h8ld by Cheadle Hulme School Ent6rprisès Lld on behalf of Cheadle Hulrne School. Durfng the year, Cheadle Hulme School Enterprises Ltd pald management charges to Cheadle Hulme School amounting to £2.400 (2022-23: £2,400). A number ol dlrectors al the School have chlldren enrolled al the School during th8 year. The chlldren attend the school on th8 same t8m18 as the other puplls. 25. OPERATING LEASE COMMITMENTS At 31 August 2024 the School had annual commltments under nonwcancellable operallng Issue8'. Land and bulldlngs 2024 £'ooo 2023 £'ooo Oporatlng leases whlch explre: Withln one year Withln two to five yearn

CHEADLE HULME SCHOOL Report and Flnanclal Statements- Yoar Endod 31 August 2024 NOTES TO THE FINANCIAL STATEMENTS Icontlnued ... 28. PRIOR YEAR STATEMENT OF FINANCIAL ACTIVITIES Unrnstrleted Funds Restrlcled Funds Total 2023 Not? INCOME Income from: Donations and le9acies Inve8tm8nts £'ooo £'ooo £'ooo 246 246 155 155 Ancillary trading Incofne Charftsble 8CtivitAes 1,284 1.284 17 Total Incom• EXPENDITURE Charltable activllte5 Tolal Expendlturn Net School Incomo for th• y•8r before transfern 827 (4) 823 Transfers between lunds 19 N8t movement In funds 827 (4) 823 Total fijnds brought forward Total funds Carrled forward 45

Smart decisions. Lasting Value

Cheadle Hulme School Report to the Finance Committee Year ended 31 August 2024

4 Audit / Tax / Advisory / Risk 5.

1

Strictly Private and Confidential

The Finance Committee Cheadle Hulme School Claremont Road Cheadle Hulme SK8 6EF

5[th] February 2025

Dear Members of the Finance Committee

I have pleasure in submitting our audit findings report for the year ended 31 August 2024. The primary purpose of this report is to communicate to the Finance Committee and the Governors the significant findings arising from our audit that we believe are relevant to those charged with governance.

Please let me know if there are any matters you would like to discuss.

I would like to take this opportunity to express our appreciation for the assistance provided to us by the finance team and the other staff at the School during this year’s audit.

Yours sincerely

Vicky Szulist Partner

© 2024 Crowe U.K. LLP

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Contents

1. Executive summary ............................................................................................................................................................................................................................. 3
2. Significant audit risks .......................................................................................................................................................................................................................... 5
3. Other audit findings ............................................................................................................................................................................................................................. 7
4. Fraud and irregularities and our audit reporting ................................................................................................................................................................................ 12
5. Sector update .................................................................................................................................................................................................................................... 14
Appendix 1 - Reporting audit adjustments ......................................................................................................................................................................................... 17
Appendix 2 - Systems and controls ................................................................................................................................................................................................... 18
Appendix 3 - Materiality ..................................................................................................................................................................................................................... 20
Appendix 4 - Responsibilities and ethical standards ......................................................................................................................................................................... 21
Appendix 5 - Fraud risks .................................................................................................................................................................................................................... 23
Appendix 6 - External developments ................................................................................................................................................................................................. 25
Appendix 7 - Going concern .............................................................................................................................................................................................................. 43

© 2024 Crowe U.K. LLP

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1. Executive summary

Our report to you

We are pleased to present our Audit Findings Report to the Finance Committee and we welcome the opportunity to discuss our findings with you at your meeting on 14[th] January 2025.

The primary purpose of this report is to communicate to the Finance Committee and the Governors the significant findings arising from our audit that we believe are relevant to those charged with governance.

In accordance with International Standards on Auditing (UK) the matters in this report include

•the results of our work on areas of significant audit risk	the results of our work on areas of significant audit risk	the results of our work on areas of significant audit risk	the results of our work on areas of significant audit risk	the results of our work on areas of significant audit risk	the results of our work on areas of significant audit risk
•our views about significant qualitative aspects of the group’s accounting	our views about significant qualitative aspects of the group’s accounting	our views about significant qualitative aspects of the group’s accounting
	practices, including accounting policies, accounting estimates and			practices, including accounting policies, accounting estimates and
	financial statement disclosures			financial statement disclosures
•significant difficulties, if any, encountered during the audit	significant difficulties, if any, encountered during the audit
•any significant matters arising during the audit and written	any significant matters arising during the audit and written	any significant matters arising during the audit and written
	representations we are requesting				representations we are requesting
•unadjusted misstatement identified during the audit	unadjusted misstatement identified during the audit
•circumstances that affect the form and content of our auditor’s report, if	circumstances that affect the form and content of our auditor’s report, if				circumstances that affect the form and content of our auditor’s report, if
	any	any
•any other significant matters arising during the audit that, in our	any other significant matters arising during the audit that, in our	any other significant matters arising during the audit that, in our
	professional judgment, are relevant to the oversight of the financial
	reporting process		reporting process

We have included comments in relation to the above where relevant in the subsequent sections of this report.

We also report to you any significant deficiencies in internal control identified during our audit which, in our professional judgment, are of sufficient importance to merit your attention.

Conclusions in relation to the areas of significant audit risk

As explained in our Audit Planning Report, in line with ISA (UK) 315 (Revised), we have considered the inherent risks, including the likelihood and magnitude of a potential misstatement.

In line with our audit plan we focussed our work on the significant audit risks identified:

• Management override of controls

The results of our audit work in these areas is set out below:

Significant risk	Control deficiency identified	Adjustment(s) identified	Other reported matters
Management override of controls			

Other audit findings

Section 3 sets out various comments on other important matters which we have identified from our audit.

Fraud and irregularities

Section 4 sets out the Governors and our responsibilities in respect of fraud and irregularities.

Audit materiality

The audit materiality for the financial statements set as part of our audit planning took account of the level of activity of Cheadle Hulme School and was set at 2% of income. We have reviewed this level of materiality based on the draft financial statements for the year ended 31 August 2024 and are satisfied that it continues to be appropriate.

We set separate audit materiality levels for each of the group’s subsidiary entities. Details of these separate materiality levels are set out in Appendix 3.

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Unadjusted misstatements

We report to you any unadjusted individual errors other than where we consider the amounts to be trivial, and for this purpose we have determined trivial to be 5% of our audit materiality.

We are pleased to announce that there are no errors identified that remain unadjusted.

Audit completion and our Audit Reports

We have substantially completed our audits in accordance with our Audit Planning Report which was sent to you and the senior management team in September 2024, subject to the matters below.

• Review of the front end of the accounts (Governors Report)

• Completion of the going concern and post-Balance Sheet events reviews, including detailed review of forecasts taking account of postbudget and VAT changes.

• Review of the final financial statements.

• Receipt of the signed letter of representation.

We will report to you orally in respect of any modifications to the findings or opinions contained in this report that arise from progressing these outstanding matters.

On the satisfactory completion of these matters, we anticipate issuing an unmodified audit opinion on the truth and fairness of the 2024 financial statements.

Responsibilities and ethical standards

We have prepared this report taking account of the responsibilities of the Governors and ourselves set out in Appendix 4 of this report.

The matters included in this report have been discussed with the School’s management during our audit and at our closing meeting.

• Review of the pension deficit adjustment

© 2024 Crowe U.K. LLP

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2. Significant audit risks

As reported in our Audit Planning Report, ISA (UK) 315 (Revised) was applicable this year, and required us to consider a spectrum of inherent risk, considering both the likelihood and magnitude of a possible misstatement, with risks close to the upper end of the spectrum of inherent risk considered to be ‘significant risks’.

Risk is considered in the context of how, and the degree to which, inherent and control risk factors affect the likelihood and magnitude of a misstatement occurring. Such factors may be qualitative or quantitative, and include complexity, subjectivity, change, uncertainty or susceptibility to misstatement due to management bias or other fraud risk factors.

In addition, the auditing standards also set out a number of areas considered to always be a significant risk. Our audit response in respect of risks not identified as significant is set out in Section 3.

We have commented below on the results of our work in these areas as well as on any additional significant risks, judgements or other matters in relation to the financial statements of Cheadle Hulme School identified during our audit.

2.1 Management override of controls

Auditing standards require us to consider as a significant audit risk areas of potential or actual management override of controls. In completing our audit we have therefore considered the following matters.

Significant accounting estimates and judgements

ISA (UK) 540 (Revised) Auditing Accounting Estimates and Related Disclosures requires additional audit focus over management’s estimates, including undertaking separate risk assessments for both inherent and control risks. In respect of the former, consideration is given to the estimation uncertainty, the subjectivity and the complexity of the estimate. We are also required to consider whether the disclosures made in the financial statements are reasonable.

Management have made a number of necessary accounting estimates and judgements which impact the financial statements. We identified the following for specific audit review:

• the assessment of impairment of assets [not significant];

• the assessment of the remaining useful life of assets [not significant];

• the assumptions adopted by management and used when calculating the pension deficit liability [not significant];

• the assumptions relating to income recognition and cut-off [not significant];

• the valuation of the fee debtors provision [not significant]

The work performed on the estimates and judgements that are not considered to be significant risks is set out in Section 3.

It is important that you are satisfied that the assumptions used by management are appropriate and we will ask you to provide a written representation to us to confirm this.

Controls around journal entries and the financial reporting process

We reviewed and carried out sample testing on the group’s controls around the processing of journal adjustments (how journals are initiated, authorised and processed) and the preparation of the annual financial statements. We also considered the risk of potential manipulation by journal entry to mask fraud.

We did not identify any instances of management override of controls or other issues from our sample testing of Cheadle Hulme School journals. We note that journal processing can be an area of potential risk and it is good practice to include consideration of this within the overall Cheadle Hulme School risk assessment.

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Significant transactions outside the normal course of business

We are required to consider the impact on the financial statements if there are any significant transactions occurring outside of the normal course of the group’s business.

No such transactions were notified to us by management, nor did any such transactions come to our attention during the course of our work.

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3. Other audit findings

In addition to matters relating to the significant audit risks as reported in Section 2, we have also noted the following matters from our audit work which we should bring to your attention.

3.1 Fee Income

Fee income makes up the majority of income at the School. Fee income is considered highly predictable, thought whilst not considered a significant audit risk, is a material balance and a key area of audit focus.

It is important that the year-end cut-off processes ensure that there is a correct split of fee income between years and that any fee amounts received in advance for 2024/25 or future years are correctly identified.

We also, on a test basis, agreed that bursary discounts given have been through the School’s required processes and that the discounts correctly reflect the bursaries awarded.

In addition, our audit work included the following:

• Developing expectations over fee income to be recognised in the financial statements, considering published fees and pupil numbers and confirm this is in line with income recorded;

• Reviewing fee debtors and ensure a sample of larger fees are recoverable or have been provided for.

Crowe Response

We noted one error in relation to the level of fee debtors held. More detail on this can be found within Appendix 1.

Other than this, we are pleased to note that we did not find any further issues in regards to fee income.

3.2 Payroll

Payroll is the largest single expenditure item for Cheadle Hulme School. The key risks in this area were considered to be:

• Existence (does the expenditure relate to genuine employees?).

• Accuracy (are payments made at authorised amounts and are the correct deductions made?)

• Disclosure (have all required disclosures been made in the financial statements?)

As part of our audit we reviewed the controls in place over monthly processing including the reconciliation of the payroll to the nominal ledger.

We also performed analytical procedures that consider gross pay, deductions and staff numbers year on year to ensure that all trends and relationships appear reasonable and that the totals agree with the ledger, and we verified a sample of staff between the payroll and other HR records and agreed their costs to supporting documentation on a sample basis.

Crowe Response

We are pleased to note that we did not identify any issues in relation to this area.

3.3 Other Expenditure

Our approach for other expenditure items was be based on analytical review procedures, which consider actual versus budget and prior year results, together with understanding the controls operated by the school to ensure that expenditure is appropriately controlled and authorised and that the required cut-off has been correctly applied at the year end.

We also selected a sample of expenditure transactions from the nominal ledger for agreement to underlying records, to ensure that transactions are being accurately processed in the accounting system and authorised by an appropriate individual within the organisation.

We also sought to review management’s reconciliation of results presented in the year end management accounts to those prepared in the financial statements to ensure key reconciling items are appropriate.

Finally, we reviewed transactional history of repairs and maintenance nominal ledger codes for evidence of capital expenditure which has been incorrectly expensed in the period.

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Crowe Response

We are pleased to note that no issues were identified in this audit area.

3.4 Fixed Assets and Capital Expenditure

Tangible fixed assets represent a large portion of the school’s total assets with the net book value being primarily composed of freehold land and buildings.

Where material, we agreed a sample of new additions and disposals in the year to supporting documentation and confirm these have been accurately recognised in the financial statements.

We also reviewed relevant expenditure nominal ledger activity to confirm capital items have not been expensed in error and physically verified a sample of properties held in the name of the School.

Fixed assets at the School are capitalised and depreciated over their estimated useful lives on a straight-line basis. This requires judgement to select an appropriate accounting policy and Governors should be satisfied with assumptions selected by management. We understand there have been no changes to the policy in 2024 and we considered if this remains appropriate during our audit.

Crowe Response

We identified the below errors which management have adjusted for within the draft financial statements:

Overstatement of the LED finance lease right of use asset and lease liability.

Understatement of land and buildings depreciation.

More details surrounding these adjustments can be found within Appendix 1.

3.5 Funds

Cheadle Hulme School operates a number of different funds subject to various restrictions and designations. You must ensure that all movements on funds are correctly identified and accounted for. This requires careful consideration of the various terms and conditions which may be applied to income.

• Reviewed a sample of expenses allocated to restricted funds to ensure that the expenditure was spent in accordance with the objects of the fund.

• Reviewed the analysis of net assets to ensure that it has been correctly allocated across the funds.

• Reviewed the processes in place to ensure that restricted transactions are completely and accurately captured and reported within the organisation and review year end balances to ensure that they appropriately reflect the restrictions that should be in force.

Crowe Response

We are pleased to note that we did not identify any issues within this area.

3.6 Related parties

In line with the ISAs which direct our audit work (ISA (UK) 550) we are obliged to ensure that any related parties are identified and that any transactions involving these parties and the group are appropriately authorised and correctly disclosed in the financial statements. The definition of a “related party” as defined in FRS 102 encompasses, in addition to the Board of Trustees and the directors of the subsidiaries, any members of management who can directly influence management decisions and close family members of both; the latter being of relevance if individual Trustees, Directors and members of management are perceived to be in a position to influence the management decisions of family members or can be influenced by them. It also includes the subsidiary and associate entities within the Cheadle Hulme School group.

We therefore reviewed Cheadle Hulme School’s procedures for identifying potential related parties and ensuring all transactions are complete, including any annual declaration of interests completed by Trustees, the directors of the subsidiaries and Senior Management.

Crowe Response

We are pleased to announce that we did not identify any issues within this audit area.

We:

• Traced restricted contributions, legacies and grants found in our income testing to the relevant fund account.

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3.7 Investments

The principal risks associated with investments are:

• ownership (can we verify title to the assets held?);

• valuation (are the assets being disclosed at their correct carrying

• value at the balance sheet date?).

Investments are held within the Cheadle Hulme School 150[th] Anniversary Bursary Trust.

Our main area of focus was on reviewing the controls being operated by investment managers overseeing the funds. This included a request for the AAF01/20 controls / assurance report from investment managers. As some reports are not coterminous with the school’s financial year end, we also additionally asked for confirmation that there have been no changes in their controls or procedures between the date of their report and the School’s accounting date which may affect the conclusions given in their assurance report.

We also requested a valuation report from investment managers to gain audit assurance over the year end valuation and existence of the investments. This was agreed to any records independently maintained by Cheadle Hulme School to confirm ownership and to identify potential anomalies or significant movements in the year (particularly in relation to purchases and disposals).

We also performed analytical procedures to gain assurance over the completeness of investment income generated from the portfolio.

Crowe Response

We are pleased to note that we did not identify any audit issues within this area.

3.8 Other Balance Sheet Items

In addition to our focus on the areas detailed above we will carry out our standard audit procedures on the other material balance sheet amounts. Our work included:

• testing of key control accounts reconciliations;

• review of post year end transactions where these help to confirm the year end position; and

• confirmation of assets held (e.g., cash at bank) to third party confirmations.

Crowe Response

We did note an adjustment in respect to the allocation of debit/credit balances between debtors and creditors. More details on this can be found within Appendix 1.

Other than this we did not identify any further issues within this area.

3.9 Going Concern and Our Audit Reporting

In preparing the financial statements to comply with Financial Reporting Standard 102 the Governors are required to assess the School’s ability to continue as a going concern. In assessing whether the going concern assumption is appropriate, the Governors are required to consider all available information about the future of the School in the period of at least, but not limited to, twelve months from the date when the financial statements are approved and authorised for issue.

In line with the updated requirements of ISA (UK) 570 we will this year include a specific conclusion in our audit report that the Governors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. This change will emphasise the responsibility of the Governors for their assessment on going concern and we will be paying particular attention to this assessment and to the Governors’ conclusions on the going concern basis being appropriate for the financial statements of the School.

We have discussed with management and explained that as part of our work on going concern for the year ending 31 August 2024 we will:

• Review the period used by the Governors to assess the ability of the School to continue as a going concern.

• Examine detailed budgets and forecasts prepared by management covering the period of the going concern assessment which adequately take account of the potential impacts of the current cost of living crisis on the School to ensure these appropriately support the Governors’ conclusion.

• testing of bank reconciliations;

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• Review the accuracy of past budgets and forecasts by comparing the budget for the current year against actual results for the year.

• Review any other documentation which the Governors use in assessing the going concern status and make any necessary enquiries of management.

• Review the sensitivity analysis and scenario planning provided by management to assess whether the forecasts are robust to severe but plausible developments.

• assess the impact of the Labour Government introducing VAT on independent school fees from January 2025 onwards.

We have requested that management prepare a detailed paper setting out their assessment of the School’s and its subsidiary’s to continue as a going concern for consideration alongside the draft financial statements by the Governors/Directors. We have received an initial forecast view for the period but are awaiting the detailed calculations behind this.

Crowe Response

Whilst we have completed a preliminary review of the initial forecasts provided by management. We are awaiting a detailed forecast including the impact of VAT on school fees and any changes to national insurance post-budget before we conclude on this area of work.

3.10 Estimates and judgements

As noted in Section 2, management have made a number of necessary accounting estimates and judgements which impact the financial statements.

We identified the following non-significant estimates and judgements for specific audit review:

• the assessment of impairment of assets;

• the assessment of the remaining useful life of assets;

• the assumptions adopted by management and used in the calculation of the pension deficit liability;

• the assumptions relating to income recognition for grant income and legacy income;

• the level of the fee debtors provision

It is important that you are satisfied that the assumptions used by management are appropriate and we will ask you to provide a written representation to us to confirm this.

Crowe Response

As noted previously, we identified one error in relation to the level of fee debtors which is explored in Appendix 1. Further to this, we identified one error in relation to the pension deficit liability. This is also detailed further within Appendix 1.

Other than the above, we are pleased to note that we did not identify any further audit issues within these areas.

3.11 Report and Financial Statements

As noted in the Statement of Governors’ Responsibilities, the Governors are responsible for preparing the Governors’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

3.12 Compliance, fraud matters and significant audit difficulties

Auditing standards require us to comment if any of the following have been issues during the audit:

• Significant delays in management providing required information.

• An unnecessarily brief time within which to complete the audit.

• Extensive unexpected effort required to obtain sufficient appropriate audit evidence.

• Issues with the completion of and / or attendance at the year-end stock-take.

• The unavailability of expected information.

• Restrictions imposed on the auditor by management.

• Management's unwillingness to make or extend its assessment of the entity's ability to continue as a going concern when requested.

• Any occasion where management unreasonably refuse permission to obtain a confirmation request from a third party or where no other alternative audit evidence is available.

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• Any breaches of laws and regulations.

• instances where the group engagement team’s evaluation of the work of a component auditor gave rise to a concern about the quality of that auditor’s work.

We are pleased to note that we did not identify any of these issues during our audit.

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4. Fraud and irregularities and our audit reporting

Audit reporting on detecting irregularities, including fraud

In line with ISA (UK) 700 our audit report includes an additional comment to explain to what extent the audit was considered capable of detecting irregularities, including fraud.

Irregularities are acts of omission or commission which are contrary to the prevailing laws or regulations. Fraud includes both fraudulent financial reporting and misstatements resulting from misappropriation of assets.

Our responsibility is to obtain reasonable assurance that the financial statements taken as a whole are free from material misstatement, whether caused by fraud or error. The additional reporting requirements this year placed increased emphasis on our understanding of the risks to Cheadle Hulme School from fraud and irregularities. Our audit included discussions with management and those charged with governance to obtain their assessment of the risk that fraud may cause a significant account balance to be materially misstated as well as other procedures to obtain sufficient appropriate audit evidence.

We obtained an understanding of the legal and regulatory frameworks within which the School 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 Charities Act 2011 and The Companies Act 2006 together with the Charities SORP (FRS102). 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 School’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 School and the group for fraud.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. 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, reviewing accounting estimates for biases, and reading minutes of meetings of those charged with governance.

In accordance with International Auditing Standards, we planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements or accounting records including any material misstatements resulting from fraud, error or non-compliance with law or regulations.

However, owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected even though the audit is properly planned and performed in accordance with the ISAs (UK). No internal control structure, no matter how effective, can eliminate the possibility that errors or irregularities may occur and remain undetected. In addition, because we use selective testing in our audit, we cannot guarantee that errors or irregularities, if present, will be detected. Accordingly, our audit should not be relied upon to disclose all such misstatements or frauds, errors or instances of non-compliance as may exist.

We have also included in Appendix 6 some fraud risks that Governors and management should be aware of.

Governors responsibilities

The primary responsibility for safeguarding the School’s assets and for the prevention and detection of both irregularities and fraud rests with the Governors and management of the organisation. It is important that management, with oversight of those charged with governance, place a strong emphasis on fraud prevention and fraud deterrence. This involves a commitment to creating a culture of honest and ethical behaviours which can be reinforced by an active oversight by those charged with governance.

As in past years, the following statements will be included in the letters of representation which we require from the Governors when the financial statements are approved.

• The Governors acknowledge their responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud and errors, and the Governors believe they have fulfilled those responsibilities.

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• The Governors have assessed that there is no significant risk that the financial statements are materially misstated as a result of fraud.

• The Governors are not aware of any fraud or suspected fraud affecting the School involving management, those charged with governance or employees who have a significant role in internal control or who could have a material effect on the financial statements.

• The Governors are not aware of any allegations by employees, former employees, regulators or others of fraud, or suspected fraud, affecting the School’s financial statements.

We draw your attention to bullet point 2 above which presupposes that an assessment has been made. We have not been made aware of any actual or potential frauds which could affect the 2024 financial statements, or in the period since the previous year end.

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5. Sector update

Independent schools continue to form an intrinsic part of the education system in the UK, providing education and wider opportunities for pupils and their connected communities.

The sector has shown remarkable resilience through what remains a challenging period. Schools continue to show they are adaptable and resourceful in the face of a challenging environment characterised by rising costs and political uncertainty. Schools are meeting these challenges head on as they prepare for the introduction of VAT on school fees, loss of Business rates relief and an uncertain economic environment.

Pupil numbers

Political change and challenging economic conditions have started to show an impact on pupil recruitment and retention in 2024. The Independent Schools Council reported a 2.7% decrease in new pupil recruitment as parents reflect on long-term affordability. This has led to the total proportion of children educated in independent schools falling from 7% to 6% in 2024.

Whilst the overall trend shows a decline across the year, there is wide regional variation in this fall with the South West, East Midlands, Scotland and Wales seeing between 0.9% and 2.1% declines in 2024. This was offset by rising pupil numbers in the North East, London, West Midlands and South Central regions which showed between 0.1% and 0.6% growth in the period. Pupil growth in the South East remained flat with 0% growth in pupil numbers reported.

2024 has also seen an 8% increase in the number of independent school children receiving SEND support which equates to 1 in 5 of all pupils.

Fee increases, affordability and knowing your market

Governing bodies have the unenviable task of setting an appropriate fee increase at the same as many families having already had to make significant sacrifices due to wider economic pressure on disposable incomes throughout the cost-of-living crisis.

It is imperative that schools make sure they are covering costs through an appropriate fee. Missed fee increases cannot be caught up through subsequent rises, and resulting deficits on operating activities are not sustainable in the long-term for most schools.

Operational costs across the sector, and indeed the cost of living for parents, remain high. Whilst current inflation has now moved closer to the Bank of England target rate, costs remain high and real incomes for parents have yet to catch up.

Whilst there is an element of expectation from parents that fees in the year ahead will be higher to accommodate the introduction of VAT, Governors and senior management continue to face a difficult balancing act. They must consider how much of the increased costs can be passed on, particularly as many schools are already operating within a tight budget. Nevertheless, schools are ensuring that fees are being set at a level to sufficiently address the current challenges and to continue investing in the future.

March/April 2023 was around the time when many schools settled on fee increases for the following year. During this period CPI inflation was at 8.7% and interest rates, at 4.25%, were continuing to rise. At this time the there was also uncertainty around the final increase expected for those in the Teachers’ Pension Scheme. This had a direct impact on costs for schools. In response, schools continued to work hard to control fee increases. The Independent Schools Council reported that the annual average fee increase in 2024, was 8% which is similar to underlying wage inflation reported by the Government for the same period (7.8%), suggesting a small increase in real terms. This compares to a 5.6% increase in in fees during 2023 and 3% increase in 2022.

These increases reflect the harsh realities at many schools who continue to offer a full curriculum and extra-curricular activities in a challenging macro environment.

Looking ahead, much larger increases are likely as schools look to pass on VAT and other costs which they cannot absorb within their operating models.

Affordability remains central to any decision on fee increases and schools have continued to extend the level of assistance offered to pupils, to minimise the financial burden for those who require additional financial support.

Total fee assistance provided by independent schools increased by 10.2% in 2024 (2023: 5.9%). This includes increasing the value of the average meanstested bursary by 9.3% (2023: 8.9%) across the period.

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Settling on a sustainable assistance programme continues to be a critical success factor for many independent schools, as they consider the financial cost of maintaining expensive concessions against the risk of pricing parents out of the market without an effective bursary and scholarships programme.

Many schools are also increasing the level of activities which deliver other forms of public benefit which adds additional cost to operations, so Governors are continuing to revisit concessions policies to ensure they remain sustainable.

In response to increased costs both now and on the horizon, parents are increasingly re-considering entry points for independent education, many waiting until year 7 and taking a cheaper option of tutoring their children for entrance exams through state junior education. This is creating several pressures on both prep schools and other entry points within schools.

Knowing your local market is therefore critical to getting the strategic planning right for your school. Some essential questions for the Board and senior leadership team to consider:

• Where is the local competition?

• What is everyone else charging?,

What are others offering in terms of education and extras? Whilst these circumstances are challenging schools are taking the opportunity to examine catchment areas, local demographics and even bus routes to ensure offers to pupils continue to appeal within a changing marketplace.

Public benefit

Delivering wider public benefit continues to be an important mechanism for independent schools to build community engagement and share knowledge, facilities, and other assets with the state sector.

The Independent Schools Council saw a 5.2% increase in the number of reported partnerships with the state sector in 2024, covering a diverse range of activities from sharing facilities to seconding staff.

It is important that examples of public benefit are articulated effectively in the financial statements. Consideration is needed around the messaging and how this is presented. Where a school is particularly active in its public benefit provision, the use of a Chairman’s Statement or infographics at the start of the Trustees Report may help to highlight key achievements. In times where a

school is involved in longer term collaborations and provisions, they may also wish to look at impact reporting to evidence the longer-term outcomes that their involvement has helped to achieve.

Political risks and taxation

The recent change in Government has crystalised political risks surrounding the introduction of VAT from January 2025 and removal of Business rates relief from April 2025.

No one can predict with certainty how this will play out and until consultations are over and final legislation is in place, it is impossible to understand the full impact on individual schools.

Schools are now working through the financial implications of these changes and are evaluating the risks to business and parents which might follow.

Ensuring good fiscal discipline around budgets and costs centres or developing new income streams will help cushion the residual pain.

VAT

Following the election of the Labour Party, the Government has begun the process of removing the VAT exemption from independent schools.

With no draft legislation the picture remains unclear, however there are a number of actions that schools can take to plan ahead.

Below we share some considerations that we have been discussing with schools over the past year. These actions and considerations will help independent schools to prepare should the changes be introduced in 2025.

Will independent schools need to register for VAT?

Many independent schools are not currently registered for VAT. The limit for VAT registration is £90,000 of taxable supplies over a rolling 12-month period, therefore it is highly likely schools will need to register for VAT shortly after the changes in legislation become effective.

The application process is online and should be straight forward, but we already experience delays in processing with HMRC and sometimes questions asked are not entirely clear. HMRC do apply penalties for taxpayers that notify them belatedly, so the key message is to ensure you are prepared and the application is sent promptly.

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How / when do I account for VAT on income received?

For taxable supplies VAT generally falls due on the earlier of:

1. the issue of a VAT invoice; or

2. payment for the service.

Consequently, if a VAT invoice is raised and payment is not made promptly, the school may have to pay HMRC the VAT before it is received from the parents. This could potentially cause a cashflow issue, so it is important that schools manage this risk carefully.

(Please note that currently invoicing does not create a tax-point as the supplies are VAT exempt).

How do I recover VAT on costs?

Currently, even VAT-registered schools face heavy restrictions on the amounts of VAT that can be recovered on costs because supplies of education are exempt. Therefore, it is likely many VAT-registered schools often do not record VAT on purchases. In a world with VAT on school fees, these systems must be changed to ensure VAT is identified on costs that bear the tax, so this can be offset against the VAT due on the VAT return. It is equally important that invoices are retained to support the recovery of VAT on those costs.

Can I recover VAT on costs retrospectively?

The only opportunity for schools to retrospectively recover VAT is on ‘capital items’ that fall under the ‘Capital Goods Scheme’. For schools, these are usually VAT-bearing building projects that cost in excess of £300,000 (inclusive of VAT).

VAT can be recovered for such items that have been used in the past 10 years. However, please note that for each year of use under current rules, one-tenth of the VAT claim is lost. For more information on how the Capital Goods Scheme works, you can watch our webinar here. We would recommend that schools begin identifying any Capital Goods Scheme assets and retain invoices to support their claims.

The rules for newly VAT-registered businesses usually allow for recovery of VAT on goods ‘on hand’ going back four years, with services being recoverable six months prior to the effective date of VAT registration. However, in most instances, this will not be the case for schools, as the goods and services will have already been used to make exempt supplies.

How do I submit a VAT return?

VAT returns are usually submitted to HMRC on a quarterly basis, with returns falling due one month and seven days after the end of a particular quarter (e.g. the March VAT return would be due by submission by 7 May). Under ‘Making Tax Digital’ (MTD), VAT returns must be submitted electronically using MTD compliant software to share the figures with HMRC. Independent schools need to ensure that systems are updated where necessary to accommodate this extra compliance task.

It is important to note that whilst your current system may be able to submit a VAT return under MTD, it might not be able to make the adjustments required (e.g. partial exemption and non-business restrictions). Therefore, other solutions may need to be looked into; there are many excel based offerings that offer a low cost and functional solution. Our latest thinking on VAT and schools can be viewed through the link below:

VAT on school fees update | Crowe UK

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Appendix 1 - Reporting audit adjustments

Adjusted misstatements

The following misstatements, which have been corrected by management, were also identified during our audit work and up to the date of this report. No further adjustments to the financial statements are required for these items and this information is provided to assist you in understanding the financial statements completion process and to fulfil your governance responsibilities.

completion process and to fulfil your governance responsibilities.
Adjustment description	Debit/credit net income £k	Debit/(credit) net assets £k	Debit/(credit) opening reserves £k
During the course of our audit, we identified that the bad debt provision within the accounts had not been updated since the prior period. We identified that from this balance, 110k of debtors previously provided for had been received. Therefore, we recommended that these be removed from the bad debt provision.	(110)	110	-
During the course of our audit, we identified that there were significant credit balances held within the debtors. We suggested an adjustment with which management agreed to reclassify these balances to the correct location. The total reclassification was a 107k debit to debtors and 107k credit to creditors. Overall, these net out and so there is no overall impact to net assets.	-	-	-
During the course of our audit we identified that the accounting treatment of the LED finance lease was incorrect. We suggested an adjustment to correct the right-of-use asset and lease liability in regards to this lease. This also impacted the depreciation on the right-of-use asset. The adjustment comprises of a decrease in the lease liability of 88k and reduction in the value of the right of use asset by 84k	(4)	4	-
We identified a discrepancy between the level of depreciation against land and buildings and our expectation for this figure. Management have agreed to adjust for the difference.	35	(35)	-
During the course of our audit, we performed a recalculation of the pension deficit liability. We found a discrepancy between our recalculation and the figure held in the accounts. Management have agreed to adjust for this figure.	50	(50)	-

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Appendix 2 - Systems and controls

We have set out below certain potential improvements to the group’s processes and controls which we noted during our audit work and which we believe merit being reported to you.

Our evaluation of the systems of control at Cheadle Hulme School was carried out for the purposes of our audit and accordingly it is not intended to be a comprehensive review of your business processes. It would not necessarily reveal all weaknesses in accounting practice or internal controls which a special investigation might highlight, nor irregularities or errors not material in relation to the financial statements.

In order to provide you with a clearer picture of the significance of issues raised, we have graded the issues raised by significance/priority before any corrective actions are taken: We have also included below a brief update on the matters we raised last year.

High	These findings are significant and require urgent action.	(No comments in this category)
Medium	These findings are of a less urgent nature, but still require reasonably prompt action.	(One comments in this category)
Low	These findings merit attention within an agreed timescale.	(No comments in this category)

Audit finding and recommendation

1. CHSE Invoice Authorisation

During our audit fieldwork, we identified that Cheadle Hulme School Enterprises does not incorporate that same procedure for invoice authorisation as the School. As a result, our invoice sample could not be traced through to proof of authorisation for CHSE. We recommend in future that an invoice authorisation procedure is brought in for CHSE to homogenise the process with that of the School. This will help to reduce the risk of fraud in regards to unauthorised purchases.

Priority	Management response
Medium

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We have set out below the systems and control issues on which we reported after our audit last year together with an update on how the points raised have been addressed including information on the progress made at the time of the audit of the 2024 financial statements.

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||| |---|---| |Status|Priority| |Recommendation fully implemented or no longer relevant|These findings merit attention within an agreed timescale.| |Recommendation partially implemented|These findings are of a less urgent nature, but still require reasonably prompt action.| |These findings merit attention within an agreed timescale.|These findings are significant and require urgent action.|

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||| |---|---| |Observations and recommendations in 2023| |1.|Journals Review and Controls|

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As part of our testing of management override of controls, we obtained an understanding of the systems and controls in place surrounding journal postings. Additionally, it was found that any user of Sage can post journals and no access limits are in place to limit the risk of inappropriate entries.

We suggest that a formal review process is implemented whereby journal postings are signed off and evidence of the review is retained. Additionally, we suggest access restrictions are implemented to ensure only appropriate persons can make journal entries.

Our review highlighted that no formal review is documented for journal postings.

2. Bank Reconciliations

During our audit testing of year end bank reconciliations, it was noted that no evidence of bank reconciliations being reviewed existed. We suggest that as part of month end procedures, a formal review should be documented, and evidence of such reviews retained.

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|||| |---|---|---| |Priority Status|Update 2024| |Low|New Finance system (AccountsIQ) now allows us to| |Resolved|control who has access to post journals. There is a| |real time record of all journals that have been posted| |which is reviewed by the Senior Finance Manager| |Low|Resolved|This is now in place and evidence of all bank| |reconciliations are kept on file. AccountsIQ also shows| |all completed and in progress reconciliations.|

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Appendix 3 - Materiality

Materiality and identified misstatements

As we explained in our Audit Planning Report, we do not seek to certify that the financial statements are 100% correct; rather we use the concept of “materiality” to plan our sample sizes and also to decide whether any errors or misstatements discovered during the audit (by you or us) require adjustment. The assessment of materiality is a matter of professional judgement but overall a matter is material if its omission or misstatement would reasonably influence the economic decisions of a user of the financial statements.

Our overall audit materiality for the financial statements as a whole took account of the level of activity by Cheadle Hulme School and was set at approximately 2% of income.

We reassessed materiality based on the draft financial statements, and the following is a summary of the overall materiality levels we applied to the separate entities within the group.

Entity	Materiality calculation	Planning Materiality £’000	Final Materiality £’000	Reporting threshold £’000
Cheadle Hulme School	2% of income	400	400	20
Cheadle Hulme School Enterprises	4% of income	9	9	1
CH 150th	2% of net assets	100	100	5

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Appendix 4 - Responsibilities and ethical standards

Audit purpose and approach

Our audit work has been undertaken for the purposes of forming our audit opinions on the financial statements of the Cheadle Hulme School and its subsidiary entities prepared by management with the oversight of the Governors /Directors and has been carried out in accordance with International Standards on Auditing (UK) (‘ISAs’).

Our work combined substantive procedures (involving the direct verification of transactions and balances on a test basis and including obtaining confirmations from third parties where we considered this to be necessary) with a review of certain of your financial systems and controls where we considered that these were relevant to our audit.

Financial statements

The Governors of Cheadle Hulme School are responsible for the preparation of the consolidated financial statements on a going concern basis (unless this basis is inappropriate). The Governors are also responsible for ensuring that the financial statements give a true and fair view, that the process your management go through to arrive at the necessary estimates or judgements is appropriate, and that any disclosure on going concern is clear, balanced and proportionate.

Legal and regulatory disclosure requirements

In undertaking our audit work we considered compliance with the following legal and regulatory disclosure requirements, where relevant.

• Companies Act 2006

• Charities Act 2011

• The Charities (Accounts and Reports) Regulations 2008 (or updated Regulations if enacted before completion of the financial statements)

• Financial Reporting Standard 102 (FRS 102)

• The Charities SORP (FRS 102)

Directors’ responsibilities

Under the provisions of the Companies Act, the Directors’ Report is required to include a statement confirming for each director who was a director at the time of the approval of the financial statements that:

• they have each taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company’s auditor is aware of that information; and

• so far as they are aware there is no relevant audit information of which the company’s auditor is unaware.

Ethical Standard

We are required by the Ethical Standard for auditors issued by the Financial Reporting Council (‘FRC’) to inform you of all significant facts and matters that may bear upon the integrity, objectivity and independence of our firm.

Crowe U.K. LLP has procedures in place to ensure that its partners and professional staff comply with both the relevant Ethical Standard for auditors and the Code of Ethics adopted by The Institute of Chartered Accountants in England and Wales.

As explained in our audit planning report, in our professional judgement there are no relationships between Crowe U.K. LLP and Cheadle Hulme School or other matters that would compromise the integrity, objectivity and independence of our firm or of the audit partner and audit staff. We are not aware of any further developments which should be brought to your attention.

Independence

International Standards on Auditing (UK) require that we keep you informed of our assessment of our independence.

We confirm that we have carried non-audit services as detailed below. We have not identified any other issues with regards to integrity, objectivity and independence and, accordingly, we remain independent for audit purposes.

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In communicating with those charged with governance of the parent School and group we consider those charged with governance of the subsidiary entities to be informed about matters relevant to them.

The matters in this report are as understood by us as at 14[th] January 2025. We will advise you of any changes in our understanding, if any, during our meeting prior to the financial statements being approved.

Non-audit services

We have considered the non-audit services we have provided in the period and have concluded that there are no facts or matters that bear upon the integrity, objectivity and independence of our firm or of the audit partner and audit staff related to the provision of such services which we should bring to your attention. Our fees for non-audit services in the year have been as follows.

Preparation of draft accounts for all three entities and iXBRL tagging VAT advice

Use of this report

This report has been provided to the Finance Committee to consider and ratify on behalf of the Board of Governors, in line with your governance structure. We accept no duty, responsibility or liability to any other parties, since this report has not been prepared, and is not intended, for any other purpose. It should not be made available to any other parties without our prior written consent.

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Appendix 5 - Fraud risks

As part of our audit procedures we make enquiries of management to obtain their assessment of the risk that fraud may cause a significant account balance to contain a material misstatement. However, we emphasise that the responsibility to make and consider your own assessment rests with yourselves and that the Governors, Finance Committee and management should ensure that these matters are considered and reviewed on a regular basis.

Usually fraud in the School sector is not carried out by falsifying the financial statements. Falsifying statutory financial statements usually provides little financial benefit, as compared to say a plc where showing a higher profit could lead to artificial share prices or unearned bonuses. However, falsifying financial statements can be used to permit a fraud or to avoid detection. As a generality, charities represented by its management and its Governors do not actively try to falsify financial statements as there are not the same incentives to do so. In the School world fraud is usually carried out through misappropriation or theft.

The Governors should be aware that the Charity Commission provides guidance (updated in September 2022) on how to protect your School from fraud including information about fraud, how to spot it and what you can do to protect against it.

The Charity Commission’s first guiding principle recognises that fraud will always happen. It is therefore important that, as part of setting their overall risk appetite, the Governors consider fraud within their tolerance for the risks associated with the management of the organisation’s (and group’s) funds. The development and continued assurance of a robust counter fraud control framework should then contribute to the organisation matching the risk appetite and tolerance agreed by the Governors.

A copy of our guidance and a framework on conducting fraud risk assessments can be obtained from our website here: https://www.crowe.com/uk/insights/fraud-risk-assessment-non-profit.

A fraud risk assessment is an objective review of the fraud risks facing an organisation to ensure they are fully identified and understood. This includes ensuring:

• fit for purpose counter fraud controls are in place to prevent and deter fraud and minimise opportunity, and

• action plans are in place to deliver an effective and proportionate response when suspected fraud occurs including the recovery of losses and lessons learnt.

Good practice suggests that to be most effective the risk assessment should be undertaken at a number of levels within the organisation:

• Organisational – to assess the key policy, awareness raising and behavioural (including leadership commitment) requirements that need to be in place to build organisational resilience to counter fraud.

• Operational – a detailed analysis of the fraud risk and counter fraud control framework at the operational level – by function (activity) or individual business unit (including programmes and projects).

Any fraud risk assessment should not be seen as a standalone exercise but rather an ongoing process that is refreshed on a regular basis. Carrying out the fraud risk assessment may reveal instances of actual or suspected fraud. Should this happen next steps will be determined on circumstances, the existing control framework (including any response plan(s)), and in consultation with the key members of the organisation’s management team.

Considering risks of fraud

There is evidence that during times of economic instability there is an increased risk of fraud. This may be because resource constraints can reduce internal controls and over sight and also because individuals facing hardship may be more likely to consider fraudulent practices.

The following provides further information on the three kinds of fraud that charities such as Cheadle Hulme School should consider.

a) Frauds of extraction

This is where funds or assets in possession of the School are misappropriated. Such frauds can involve own staff, intermediaries or partner organisations since they require assets that are already in the possession of

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the entity being extracted fraudulently. This could be by false invoices, overcharging or making unauthorised grant payments.

Essentially such frauds are carried out due to weaknesses in physical controls over assets and system weaknesses in the purchases, creditors and payments cycle. The cycle can be evaluated by considering questions such as who authorises incurring a liability and making a payment. On what evidence? Who records liabilities and payments? Who pays them and who checks them?

The close monitoring of management accounts, ledger entries and strict budgetary controls are also generally seen as an effective way of detecting and deterring frauds in this area.

Staff should be made aware of the increasing use of mandate fraud. This is where when the fraudster gets the organisation to change a direct debit, standing order or bank transfer mandate by purporting to be a supplier or organisation to which the School makes regular payments.

Insufficient due diligence around requests to amend supplier or payroll details has led to payments to unauthorised individuals so sufficient checks in these areas is of increasing importance. All employees should exercise real scepticism and not make any payments which are not properly supported and / or outside the normal payment mechanisms.

The Fraud Advisory Panel latest research shows the following as the fraud risks on the horizon:

• Staff fraud. As people feel the effects of the cost-of-living crisis on their finances.

• Ransomware, particularly targeting network-attached storage. There has been a recent increase in these types of attack.

• E-commerce / online shopping fraud. In the lead-up to Black Friday (25 November), Cyber Monday (28 November), and the busy Christmas shopping period.

• Supply chain fraud. As some businesses and individuals find themselves in financial difficulty. To boost resilience, government is looking to create standard templates for supply chain contracts.

A new survey has found that 12% of charities had experienced cybercrime in the previous 12 months, prompting the Charity Commission to highlighting this issue to charities recently and warning them against the risk of online fraud. Furthermore, the survey also pointed to a potential lack of awareness of the risks facing charities online and note that just over 24% have a formal policy in place to manage the risk and only around 55% of charities reported that cyber security was a fairly or very high priority in their organisation. The Commission’s discussion of this can be found here: https://www.gov.uk/government/news/charities-at-risk-of-underestimatingonline-fraud-as-one-in-eight-experienced-cybercrime-last-year

b) Backhanders and inducements

There is also an inherent risk that individuals who are able to authorise expenditure or influence the selection of suppliers can receive inducements to select one supplier over the other. This risk can be mitigated by robust supplier selection and tendering procedures.

c) Frauds of diversion

This is where income or other assets due to Cheadle Hulme School are diverted before they are entered into the accounting records or control data. Essentially, it is easy to check what is there but very difficult to establish that it is all there. Therefore, ensuring the completeness of income provided to a School becomes difficult.

It is important to consider the different income streams and when and how they are received. So income received directly into the School’s bank account will be a lower risk than income being received by home based fundraisers.

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Appendix 6 - External developments

We have summarised below some of the developments and changes in the charity sector over the recent period which we believe may be of interest and relevant to you. Please note that this information is provided as a summary only and that you should seek further advice if you believe that you have any specific related issues or intend to take or not take action based on any of the comments below.

We believe it is important to keep our clients up to date on the issues that affect them and, as a part of our ongoing communication, we regularly hold webinars and therefore encourage you to visit our website (https://www.crowe.com/uk/croweuk/industries/webinars).or register to our mailing list ([e-mail]) to stay updated on these. Any webinars which you have missed remain available on demand on our website.

Governance

State of the Sector

The Charity Commission has released its latest annual report on public trust in charities. The findings indicate that trust levels have remained stable since 2020, largely driven by the perception of a charity’s aim to do good.

There is a persistent belief that smaller, local charities are more trustworthy than national charities. This is despite the fact that larger charities are subject to more stringent transparency requirements, which are a key factor in building trust. Respondents highlighted that their trust is influenced by how charities ensure that monies reach their intended causes and by visibly demonstrating their charitable activities.

The report, which includes interviews with a diverse range of the public, reveals that only one in 5 individuals are well-acquainted with the Charity Commission, with increased familiarity with the Commission associated with higher levels of trust. For more details, see the full report here.

Smee & Ford legacy trends 2024 reported record legacy income of £3.5 billion in 2023, marking a 3.2% increase. Charitable estates have also risen to £22.6 billion, a 5.6% increase and 2023 had the highest record of unique charitable legacies for the past decade. The report highlights that there is further growth anticipated from Baby Boomer bequests with an increase in annual deaths expected to rise to over 730k by 2035 translating to 47,000 charitable cases per annum in the years to come.

Additionally, the CAF UK Giving Report 2024 revealed that donations reached £13.9 billion in 2023, up from £12.7 billion in 2022. However, there was a decrease of £800 million in funds directed towards overseas causes. Furthermore, average monthly donation was £65; 40% higher than 2019 but using the median method, donations remained at £20 per month, unchanged for 7 years – using statistics from Pro-Bono Economics, with inflation it should have been £25.

An analysis of the VCSE Barometer carried out by Pro-Bono Economics found that one-third (33%) of charities reported a decline in their finances in the quarter-ended July 2024. This is attributed to ongoing workplace challenges and rising demand for services across charities of all sizes.

For further information on the treatment for the charity sector’s unhealthy status quo, please visit: https://www.probonoeconomics.com/

Budget 2024: Key implications for charities

The 2024 budget, released 30 October, outlines new government’s tax, welfare, and spending priorities up to March 2026, with a framework extending beyond April 2026. It also previews the spring spending review, which will allocate funding for central government departments through to March 2029.

Key announcements for Charities:

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• Local government funding. A 3.2% rise in core local government spending, at least £600 million funding for social care.

• Support for individuals and carers. Reduced Universal Credit deductions increased Carer’s Allowance earnings limit.

• VAT and business rates relief for private schools. VAT relief is removed. Business rate relief is for those providing full time education to pupils with education, health, and care plans.

• SEND Support. £1 billion to support children with special educational needs and disabilities (SEND).

local government funding and commits to moving towards multi-year settlements, which will help local authorities and voluntary sector partners to plan more effectively.

The Future Charity Chair

Crowe are pleased to have been involved in a research project looking at the essential attributes that Charity Chairs of the future will need to embrace. This research explored the topic through roundtable discussions and in-depth interviews, with the final thought leadership report published in June 2024.

The research aimed to:

• Hardship support. £1 billion next year to extend the Household Support Fund and hardship payments.

• Educational funding. An additional £30 million for free breakfast clubs, £300 million for further education and £40 million for the Growth and Skills Levy for training.

• Holocaust education. An additional £2 million to support Holocaust education charities.

• Research and development and inheritance tax reliefs maintained.

Further positive announcements include increased budget for the Charities Commission, additional support for central government departments and public services, and more funding for ‘trailblazer’ programmes and mental health crisis centres.

However, the 6.7% rise in the national living wage and the increase in employer National Insurance contributions (NICs) to 15%, both effective from April 2025, will impose financial pressures for charities. Additionally, the NIC threshold has dropped from £9,100 to £5,000.

From April 2025, many charities that employ staff will see their costs increase, with the average employer expected to incur an extra £26,000 in annual costs (approximately £800 per employee). However, the Employer’s Allowance is set to increase from £5,000 to £10,500 and the threshold for claiming this allowance will be removed, potentially allowing more charities to benefit.

• Contribute ideas that will help to shape the future development and recruitment of charity Chairs.

• Enhance the future sustainability of the charity sector by highlighting longer term considerations for Board discussion.

• Provide fresh thinking to positively influence regulation and best practice guidance for the sector.

• Emphasise the value of good charity governance and the need for it to continually evolve to remain relevant.

The research highlighted a number of key findings, including challenges from a lack of diversity within charities (including trustees, staff and volunteers), and the need to recruit individuals who represent the charity’s beneficiaries.

Recommendations raised within the report include developing a leadership development programme for current Chairs, succession planning and a need to promote the role as one of ambition and aspiration.

The full report can be found here.

Building Resilience: Responsive strategies in uncertain times

It is now accepted thinking that the uncertainty of the past few years is here to stay due to global economic uncertainties, geopolitical instability and as a result of rapid technological change.

Holistically, commentators believe that the budget signals a shift in government’s approach to funding local public services. It aims to simplify

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These continuing challenges signal a new normal which requires all organisations to adapt to survive and thrive. Whilst there have been uncertainties in the past, the level and number has increased as has the speed with which these will impact an organisation.

For non profit organisations, the ever-present challenge is how they can deliver their mission in times of growing demand amid a squeeze on income and rising costs. It becomes even more imperative for boards and the leadership teams to continue to focus on organisational purpose, impact and culture. Juggling competing priorities often results in a lack of focus on matters related to climate risks or EDI and ESG. It is key that organisations focus on strategy at different time horizons to avoid falling behind the curve.

Further information can be found on our Insights page here.

Charity Commission: New commission guidelines CC48 and CC27

CC48: Charity Meetings

The CC48 guidance from the Charity Commission, updated July 2024, provides essential rules for charity meetings that must be adhered to. The guidance emphasises the necessity for charities to adhere to their Governing Document rules on planning, running and recording meetings.

The Governing Document must be amended where rules are outdated to ensure decisions made in meetings are valid. For example. CC48 provides specific guidance on updating the Governing Document to allow for virtual and hybrid meetings. It also covers different types of meetings, such as trustee meetings and Annual General Meetings (AGMs), each with their own rules that must be followed.

CC48 can be found here.

CC27: Decision Making for Trustees

The CC27 guidance from the Charity Commission outlines seven principles and best practices for trustees on decision making.

The seven decision-making principles are:

1. Trustees must act within their powers

2. Trustees must be sufficiently informed

3. Trustees must take account of all relevant factors

4. Trustees must identify and disregard irrelevant factors

5. Trustees must manage conflicts of interest

6. Trustees must ensure their decision is within the range of decisions that a reasonable trustee body could make

This guidance provides detail on each principle but particularly when making significant or strategic decisions and how to record the decisions made.

Whilst CC27 applies specifically to all trustees of all charities in England and Wales -whether registered, unregistered or exempt, including corporate charity trustees – the guidance can be useful for other members of the charity to be aware of in considering in their decision making.

CC27 can be found here.

The Charities Act 2022: Implementation

The Charities Act 2022 (the Act) received Royal Assent on 24 February 2022 and brings into force a number of key changes to the Charities Act 2011, aimed at simplifying a number of processes.

The Charity Commission are currently working through implementing the various changes brought about by the legislation, and set out an indicative timetable here. Most of the provisions have now come into force.

Provisions of the Act in force that came into force on 31 October 2022

• Section 5: Orders under section 73 of the Charities Act 2011

• Section 8: Power of the court and the Commission to make schemes

• Section 32: Trustee of charitable trust: status as trust corporation

• Section 36: Costs incurred in relation to Tribunal proceedings etc

• Part of Section 37: Public notice as regards Commission orders etc.

• Trustees must act in good faith

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• Part of Section 40 and Schedule 2: Minor and consequential amendments

Provisions of the Act that came into force on 14 June 2023

• Sections 9-14 and 35a: Permanent endowment

• Sections 17, 19-22: Charity land

• Sections 25-28: Charity names

• Section 38 and 39: Connected persons

• Part of Section 40 and Schedule 2: Minor and consequential amendments

Provisions of the Act that came into force on 7 March 2024

• Section 1-3: Charity constitutions

• Sections 18* and 23: Charity land

• Section 24 and Schedule 1: Amendments of the Universities and College Estates Act 1925**

• Section 29: Powers relating to appointments of trustees

• Section 31: Remuneration etc of charity trustees etc

• Sections 33, 34 and 35(b): Charity mergers

• Section 37: For remaining purposes

• Section 40 and Schedule 2: For remaining purposes

• Section 18(1) (in part), (2)(a), (2)(c) and (3)(a) will come into force on 7 March 2024. Due to the provisions being linked to section 24 and Schedule 1, section 18(1) (for remaining purposes), (2)(b) and (3)(b) will come into force on 19 May 2025.

** Section 24 and Schedule 1 will come into force on 19 May 2025.

Provisions of the Act expected to come into force later in 2024

• Sections 15 and 16: Ex gratia payments

The key provisions of the Act that have been implemented to date are set out below, and further information can be found here.

Making changes to governing documents

The Act introduces a new statutory power to allows trusts and unincorporated associations to make changes to their governing documents.

Charities will still however need to get the Commission’s authority to make certain ‘regulated alterations’ in the same way as companies and Charitable Incorporated Organisations (CIO).

Other related changes include:

• how unincorporated charities must pass trustee and (where they have members) member resolutions when using the new power

• that the Commission will apply the same legal test when deciding whether to give authority to charitable companies, CIOs, and unincorporated charities changing their charitable purposes

• a power for the Commission to give public notice to, or to direct charities to give notice to, regulated alterations they make

The Commission have updated CC36 to reflect these changes, which can be found here.

Selling, leasing or otherwise disposing of charity land

The following provisions are now in force:

• provisions relating to disposals by liquidators, provisional liquidators, receivers, mortgagees or administrators

• provisions relating to the taking out of mortgages by liquidators, provisional liquidators, receivers, mortgagees or administrators

• changes about what must be included in statements and certificates for both disposals and mortgages

Charities must comply with certain legal requirements before they dispose of charity land. Disposal can include selling, transferring or leasing charity land. The Act simplifies some of these legal requirements. The changes include:

• widening the category of designated advisers who can provide charities with advice on certain disposals

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• confirming that a trustee, officer or employee can provide advice on a disposal if they meet the relevant requirements

• giving trustees discretion to decide how to advertise a proposed disposal of charity land

• removing the requirement for charities to get Commission authority to grant a residential lease to a charity employee for a short periodic or fixed term tenancy

The Commission have updated CC28 to reflect these changes, which can be found here.

Charity mergers

For certain mergers, new rules are now in force that will allow most gifts to charities that merge to take effect as gifts to the charity they have merged with.

Updated guidance on charity mergers can be found here.

Failed appeals

The Act introduces new rules granting the power for trustees to apply cyprès, allowing charities more flexibility in response to a charity appeal that has failed, allowing donations to be applied for another charitable purposes rather than having to be returned to donors under certain conditions:

• i) The donation is a single gift of £120 or less; and the Trustees reasonably believe that during the financial year the total amount received from the donor for the specific charitable purpose is £120 or less (unless the donor states in writing that the gift must be returned if the charitable purposes fail); or

• ii) The donor, after all agreed actions have been taken, cannot be identified or found; or

• iii) The donor cannot be identified (for example cash collections)

The Charity Commission published guidance in relation to failed appeals on 31 October 2022, which can be found here.

The Charity Commission has also updated its guidance CC20 ‘Charity fundraising: a guide to trustee duties’ to reflect these changes.

The Fundraising Regulator has also published guidance, further details of which are provided below.

Payments to Trustees for providing goods to the charity

The Charities Act 2011 provided a statutory power for charities, in certain circumstances, to pay trustees for providing a service to a charity beyond usual trustee duties.

The Act extends this power to allow, in certain circumstances for payments to trustees for providing goods to the charity.

Updated guidance can be found here.

The Charity Commission has also updated its guidance CC29 ‘Conflicts of interest: a guide for charity trustees’ and CC11 ‘Trustee expenses and payments’ to reflect these changes.

Power to amend Royal Charters

Royal Charter charities are able to use a new statutory power to change sections in their Royal Charter which they cannot currently change, if that change is approved by the Privy Council.

Updated guidance can be found here.

Using permanent endowment

The Act introduces new statutory powers to enable:

• charities to spend, in certain circumstances, from a ‘smaller value’ permanent endowment fund of £25,000 or less without Commission authority

• certain charities to borrow up to 25% of the value of their permanent endowment fund without Commission authority

Charities that cannot use the statutory powers will require Charity Commission authority.

In addition, a new statutory power enables charities that have opted into a total return approach to investment to use permanent endowment to make social investments with a negative or uncertain financial return, provided any losses are offset by other gains.

Updated guidance can be found here and here for total return investment.

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Investing Charity Money

CC14 was updated in August 2023, it is now called Investing Charity Money and takes account of the High Court Judgement on the Butler Sloss case.

CC14 states that all charities should have a written investment policy if their governing document requires they have one or if the charity is a trust, and where it gives an investment manager powers to make decisions on its behalf. It includes:

• Examples of various issues which may be relevant for trustees to consider when making investment decisions, such as the potential for an investment to conflict with the purposes of the charity, or the reputational impact of an investment decision.

• Steps trustees ‘must’ take to be compliant with the law and those trustees ‘should’ do as best practice but not legally required.

• Explanations on acting in the best interests of a charity, ensuring that above all else any decision furthers its purposes.

• Guidance on social investment and no longer uses terminology that could get in the way of trustees’ understanding, such as ‘ethical investment’, ‘mixed motive investment’ and ‘programme related investment’. It should be noted that whilst the guidance has simplified the terminology, this distinction is still important from a financial reporting perspective, as the Charity SORP requires different accounting treatment for mixed motive and programme related investments.

It also provides example approaches to financial returns including avoiding those investments which can reduce support for a charity and harm its reputation, and is more specific on ESG factors:

• aiming only for the best financial return you can achieve, within the level of risk that you have decided is acceptable for your charity

• alongside the financial return you are aiming for, avoiding investments that conflict with your charity’s purposes.

• alongside the financial return you are aiming for, avoiding investments that could reduce support for your charity or harm its reputation, particularly amongst its supporters or beneficiaries.

• alongside the financial return you are aiming for, avoiding or making investments in companies because of their practice on environmental, social and governance (ESG) factors

• alongside the financial return you are aiming for, using your shareholder vote, or other opportunities that come with your investment, to influence practice at companies that your charity is invested in.

The revised guidance can be found here.

Defined Benefit Funding Code of Practice

The Department for Work and Pensions published its revised DB Funding and Investment Strategy Regulations in January 2024 and applies to actuarial valuations of defined benefit pension schemes from 22 September 2024. The Regulations are closely tied to the Pensions Regulator's new DB Funding Code of Practice.

The Pensions Regulator (TPR) is analysing responses to its second consultation on the new Defined Benefit (DB) funding code of practice. The new Code includes a requirement for a ‘funding and investment strategy’ (FIS) where trustees will be required to articulate their approach and decisions on funding and investments. Trustees must prepare a written statement of strategy which records the FIS and supplementary details, is signed on the trustees’ behalf by their chairperson, and submitted to TPR with each triennial valuation.

Under the proposals, TPR sets out a “twin-track” model where trustees will be able to choose either a prescriptive “Fast Track” option or a more flexible “Bespoke” approach to completing and submitting an actuarial valuation for TPRs assessment. The proposed requirements for the fast track route include a number of areas such as suitable long-term objectives for schemes to achieve low dependency by the time a scheme is significantly mature (measured as 12-year duration) and discount rates of gilts plus 0.5% p.a. The fast track does not explicitly take account of covenant strength. TPR plans to consult separately on proposed changes to covenant guidance.

The revised Code was published in July 2024 and can be found here.

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Charity Commission: Charities and Artificial Intelligence

On 2 April 2024 the Charity Commission published a blog explaining that charities may need to consider having an internal artificial intelligence (AI) policy, and that Trustees should be aware of the risks and opportunities arising from AI whether they are currently using AI or planning to do so.

The Commission is not anticipating issuing specific guidance but encourages trustees to apply existing guidance to new technologies as they emerge.

The key consideration is that AI should be used responsibly in a way that furthers the charity’s purposes. Before utilising AI, consider the advantages and risks – and how these will be managed – in the context of the trustee’s duties and charity’s objectives.

That could involve looking at what gaps can be filled, or insights generated by an AI tool, what skills are needed to use these tools to the charity’s advantage and if people within the charity’s trustees, staff or volunteers have those skills. This could also consider how staff or volunteers may already be using AI.

As the use of AI develops and more applications become available, the Commission recommends charities consider whether having an internal AI policy would be beneficial so it is clear how and when it can be used in governance, by employees in their work, or in delivering services to beneficiaries.

However, Trustees remain responsible for decision making and it is vital processes are not delegated to AI alone as there are risks inherent to the way AI is built, operates, and continues to learn. Trustees and others in charities must ensure that human oversight is in place to prevent material errors, and a human touch is key to the way many charities operate and interact with their beneficiaries.

Trustees should consider external risks and reputational damage arising from the misuse and recircularization of AI, such as fake news or deep fakes.

Whilst this evolving technology may seem daunting to many, there are more opportunities for charities to engage with the technology now it is more widely available.

The full blog can be obtained here.

Scottish Charities

Changes to Scottish charity law

The Scottish Parliament have laid legislation impacting the Charities (Regulation and Administration) (Scotland) Act 2023, taking effect from 1 April 2024.

The Act is intended to strengthen and update current law by increasing the powers available to the Office of the Scottish Charity Regulator (‘OSCR’) and provide consistency with certain elements of charity regulation in England, Wales and Ireland.

The key changes include:

• OSCR will refuse an application to be registered as a charity from organisations that have no or a negligible connection to Scotland

• a widening of OSCR’s inquiry powers, including:

• power to direct charities to particular actions

• power to appoint interim trustees

• power to inquire former charities and former trustees

• changes to OSCR’s powers to require charities and others to provide information

• OSCR will have the power to remove charities from the Register that have failed to submit timely accounts and failed to engage with OSCR about putting this breach of trustee duties right

• A register of all individuals barred from acting as trustees is being maintained and can be searched on the OSCR website

The remaining parts of the Act are expected to come into force in mid 2025, including the publication of annual reports and accounts, trustee names and a record of charity mergers. Further details on the changes can be found on the OSCR website here.

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Legislation for land and property in Scotland

The Register of persons with a controlled interest in land (RCI) is a new public register managed by the Registers of Scotland (ROS) and aims to improve transparency of land ownership in Scotland.

If a charity is an unincorporated association or trust and land or property is held on its behalf by the committee or trustees, the charity may be required to register its land or property on the RCI.

For guidance on whether registration on land held for Trusts or Unincorporated Associations is required follow OSCR guidance available here.

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Compliance

Employment Rights BillDuty on employers to prevent sexual harassment at work

The Worker Protection (Amendment of Equality Act 2010) Act 2023 received Royal Assent on 26 October 2023, and came into force on 27 October 2023, and introduces a new duty on employers to take reasonable steps to prevent sexual harassment of their employees in the course of their employment. ‘In the course of their employment’ covers activities outside of the workplace, for example work social events.

The new duty to prevent sexual harassment will be enforceable by an employment tribunal, where the tribunal has first upheld a claim for sexual harassment. A tribunal will have the discretion to award a ‘compensation uplift’ by increasing any compensation it awards for sexual harassment by up to 25% where there has been a breach of the employer’s duty in sexual harassment cases.

The Equality and Human Rights Commission’s guidance on sexual harassment and harassment at work contains steps employers should consider taking in order to prevent and deal with harassment at work. These steps include having an effective and well communicated anti-harassment policy in place and maintaining a reporting register of complaints for all forms of harassment.

A copy of the guidance can be found here.

Fundraising Regulator:

In November 2023 the Fundraising Regulator published its latest Annual Complaints Report which covers the period 1 April 2022 to 31 March 2023. The report analyses complaints received by the Fundraising Regulator and complaints reported to 58 of the UK’s largest fundraising charities.

The number of complaints to the sample charities rose proportionally for most methods in line with increased fundraising activity – with 13 of the 23 fundraising methods having increased complaint numbers in 2021/22 compared to 2020/21. The overall number of complaints had increased since 2021/22 which is reflective of increases in fundraising activity since the pandemic.

Over the same period, complaints about fundraising methods including door to

door fundraising (60), charity bags (57) and addressed mail (51) accounted for the majority of the 270 complaints within the Fundraising Regulator's scope. A common theme was that of misleading information, highlighting the importance of clarity in fundraising materials.

You can see the full report here.

In August 2024, the fundraising regular produced guidance on charitable institutions working with commercial participators and with professional fundraisers. Both pieces of guidance define professional fundraisers and commercial participators and in both cases explain that charities should carry out due diligence, have in place a written agreement and carry out monitoring.

Gender pay reporting

Any employer with 250 or more employees on a specific date each year (the ‘snapshot date’) must report their gender pay gap data. For most entities the snapshot date is the 5 April of each year.

You must report and publish your gender pay gap information within a year of your snapshot date. You must do this for every year that you have 250 or more employees on your snapshot date.

Guidance on what and how to report can be found here.

The Economic Crime and Corporate Transparency Act 2023

A new failure to prevent fraud offence has been introduced by the Economic Crime and Transparency Act 2023. It will apply to all large corporate entities, including charitable companies, Royal Charters and CIOs.

When considering the size criteria it is worth noting that the legislation references the financial year of the entity that precedes the year of the fraud offence.

An offence is committed where an employee or agent commits fraud. The penalty is an unlimited fine for the organisation, and no personal liability will be introduced for trustees or management failure to prevent fraud.

The legislation is far reaching, and where an organisation operates or is based overseas, if an employee commits fraud under UK law or affecting UK victims, the company can be prosecuted.

There is a defence to the failure to prevent economic crimes if the organisation can prove that it had reasonable prevention measures in place,

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or that it was not reasonable in all the circumstances to expect it to have had any procedures in place.

The guidance for the new corporate criminal offence of “failure to prevent fraud” has been published by the UK government. The Act aims to hold large organisations accountable if they benefit, or there is an intention to benefit, from fraudulent activities conducted by their employees, agents, subsidiaries, or other associated persons. Organisations have to put in place proactive measures and reasonable procedures to provide a defence to criminal liability for failing to prevent fraud and other economic crimes by associated persons.

The offence sits alongside existing law; for example, the person who committed the fraud may be prosecuted individually for that fraud, while the organisation may be prosecuted for failing to prevent it.

The offence, which will come into effect on 1 September 2025, applies to all large incorporated bodies, subsidiaries, partnerships, and large not-for-profit organisations such as charities if they are incorporated and Royal Charter. Whilst unincorporated charitable trusts may not be included, this guidance is considered as being best practice. It is important to note that the size criteria is considered in the year preceding the fraud offence. An organisation will be criminally liable if an associated person commits fraud intending to benefit the organisation such as through dishonest sales or commercial practices, hiding important information from consumers or investors, or dishonest practices in financial markets.

The guidance sets out six principles that should inform fraud prevention frameworks put in place by organisations in order to comply with the law - top level commitment, risk assessment, proportionate risk-based prevention procedures, due diligence, communication (including training), and ongoing monitoring and reviews.

Risk assessments must fully consider the potential for relevant economic crimes to be committed. These include but are not limited to fraud. Onboarding of employees and ‘associates’ must be reviewed and mitigation measures put in place. Sufficiency of training which is properly tailored to the particular employees involved is increasingly an area of regulatory focus and must also be part of the policies and procedures put in place here.

Full details of the guidance can be found here.

Another aspect of the Act is to improve the accuracy and quality of data filed with the Registrar of Companies, helping to tackle economic crime and boost

confidence in the UK economy.

From a company secretarial point of view, the most significant change introduced by the Act is the reform of Companies House.

Key changes

Registered office address to be ‘appropriate’

All companies must now have an ‘appropriate address’ as their registered office. This means that documents sent to the registered office address will reach someone acting on behalf of the company and that delivery can be acknowledged. Companies are not allowed to use a PO Box address. In the event of non-compliance, Companies House will change the registered office address to a default address.

Registered email address

Both existing and new companies must provide Companies House with a registered email address for communication purposes. This information must be included when filing the next confirmation statement with a statement date of 5 March 2024 onwards or at the time of incorporation. A new company cannot be incorporated without this information, and existing companies will not be able to file a confirmation statement without it.

Statement of lawful purpose

After 4 March 2024, new companies must confirm that they are being incorporated for a lawful purpose. Existing companies will need to confirm annually in the confirmation statement that their intended future activities will be lawful.

Broadening of Registrar’s powers

The Registrar will have enhanced powers to question information filed at Companies House and request additional information to ensure that documents are timely, accurate, and not misleading. Companies House will have greater authority to scrutinise, query, and reject information that is filed or is in the process of being filed.

Authorised Corporate Service Provider (ACSP)

Under new identity verification measures, most documents filed at Companies House must be delivered by an ACSP. This includes incorporations, officer appointments (directors, secretary, members of LLP, partner of LP) and PSC

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appointment. This means if you are filing these documents with Companies House then you will need professional corporate service providers to do this for you or you will have to follow the additional identity verification steps to be introduced by Companies House.

Changes to be introduced to Company Accounts

Companies House is currently working on mandating digital filing and full tagging of financial information in an iXBRL format. The number of times a company can shorten its Accounting Reference Period will be reduced. Small companies will be required to file a profit and loss account and a directors’ report, while micro-entities will need to file a profit and loss account. The option to file abridged accounts will be removed, and companies claiming an audit exemption will need to provide an additional eligibility statement.

Restrictions on the use of corporate directors

All directors (or director equivalents) of the entity that have been appointed as a corporate director must be natural persons, and those natural person directors must have undergone an appropriate identity verification process. Historically, any corporate entity could be appointed as a corporate director of a UK company. However, moving forward, only UK-registered entities will be eligible for appointment as corporate directors, and all directors (or director equivalents) of such entities must be natural persons. Companies with existing corporate directors will be given 12 months to comply; within that time, they must either ensure their corporate director is compliant with the principles or resign them.

Considering the recent changes introduced by the Act, boards of directors will need to review their current processes for filing at Companies House, adopt new systems for verifying filings, monitor identity verification requirements, introduce new policies on director changes, and review the appropriateness of the company's registered office address.

New free digital service from National Cyber Security Centre

The National Cyber Security Centre has launched a new free digital service, MyNCSC, which aims to enhance charities’ cyber security approach.

MyNCSC combines Active Cyber Deference (ACD) digital services, offering a unified experience tailored to each user’s needs, including content, vulnerabilities, and alerts.

The MyNCSC platform is a free service for UK registered charities, enabling

organisations to access various ACD services, such as:

• early warning

• mail check, assessing email security compliance

• web check, finding and fixing common security vulnerabilities in the charity’s website

There are plans to gradually increase the number of ACD services integrated with MyNCSC.

MyNCSC offers a unified user interface for accessing multiple services promoting collaboration within organisations when managing digital assets and viewing findings.

Further information and guidance on how MyNCSC works can be found here.

Virgin Media pension case

Until it was abolished in April 2016, defined benefit pension schemes could contract out of the State schemes. In return for lower employer and employee National Insurance contributions, a scheme was required to meet certain minimum requirements in relation to the benefits provided through the scheme. Before 6 April 1997 a contracted-out salary-related scheme was required to provide each member with a Guaranteed Minimum Pension. The 1995 Pensions Act ended that regime and with effect from 6 April 1997 contracted-out schemes had to satisfy the Reference Scheme Test, which had to be assessed and certified by the scheme actuary that the minimum level of benefits under the reference scheme test would continue to be satisfied after the amendment was made.

On 25 July 2024, the Court of Appeal upheld the High Court’s decision in relation to Virgin Media v NTL Pension Trustees II Limited that the statutory actuarial confirmation was required, and without this, alterations are void. This decision could potentially have a significant impact for other schemes where changes have been made without actuarial confirmation.

The question appealed was whether a confirmation was required for changes to future service benefits or just past service benefits. The Court of Appeal

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upheld the High Court's decision that confirmation was required for amendments to future accruals, before legislation changes in 2013. Legislation does allow the Government to make retrospective regulations to validate amendments that are void due to the absence of such written confirmation. Therefore, depending upon the outcome of any subsequent appeal to the Supreme Court, there is the possibility that DWP may take action to validate scheme rule amendments which would otherwise be invalidated by the principle in the Virgin Media case.

On 29 July 2024 a joint statement was issued a working group formed by the Association of Consulting Actuaries, the Association of Pension Lawyers and the Society of Pension Professionals proposing that the Secretary of State for Work and Pensions make regulations to validate retrospectively any scheme rule amendment affecting reference scheme test benefits, that is held to be invalid solely because a written actuarial confirmation was not received before that amendment was made. If such regulations were to be made, this would provide a fallback position for DB schemes and their sponsoring employers if issues of invalidity of scheme rule amendments were to be raised based on the Virgin Media case. Other industry bodies have also begun lobbying government to make these changes.

In the meantime, scheme actuaries may need to consider whether they need to take account of matters raised through the Virgin Media case and take into account the impact on funding updates and triennial actuarial valuations. To date actuaries have not been explicitly referred to this matter in their actuarial valuations.

From a pension scheme accounting perspective, unless the possibility of settling the contingent liability is remote or it is not material disclosure should be made in the notes to the financial statements of the estimated financial effect and an indication of the uncertainties relating to the amount or timing. Trustees of pension schemes should assess whether disclosure is required in their accounts.

Employers will also need to consider the impact of the case on their accounts, and this will include retrospective and future liabilities and therefore will be a larger amount. If the amount is not included in actuarial valuations due to lack of information, there will need to be an assessment as to whether a disclosure is required.

Holiday Entitlement – where are we now?

In March 2023 the government opened a consultation exercise to review the legislation governing holiday entitlement and holiday pay, which had over time become complex, and in some cases, difficult for employers to follow.

The consultation exercise ended on 7 July 2023, and the government’s response was published on 8 November 2023. The response indicates that the following actions will be taken:

• Introduce an accrual method for calculating holiday

Entitlement will be calculated as 12.07% of hours worked in a pay period for irregular hours and part year workers. All other workers will accrue leave at 1/12th of their entitlement on the first day of each month during their first year of employment.

• Sanction rolled-up holiday pay (RHP)

Legislation will be introduced to allow RHP for irregular hours workers and part-year workers only.

• Introduce a definition of irregular hour workers & part-year workers Legislation will be updated to define what is meant by irregular hours workers and part-year workers.

The Government has laid out revisions in respect of the above as part of The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023, effective from 1 January 2024.

Irregular hours and part-year workers

To the relief of many employers the revised Working Time Regulations (‘WTR’) will include provisions aimed squarely at addressing the flaws laid bare in the Harper Trust v Brazel case in which it was held part year workers on permanent contracts were entitled to a full year’s holiday entitlement, regardless of the number of weeks worked.

For holiday years from 1 April 2024 individuals who work irregular hours or partyear (such as term time or casual workers) will accrue holiday on the last day of each pay period at a rate of 12.07% of the number of hours worked during the pay period. This will ensure that their entitlement will remain in proportion to the hours that have been worked and differs from other employees who receive their full entitlement at the start of a holiday year. It is open to employers

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to allow the employee to take more holiday than they have accrued – in such cases its essential that employment contracts reserve the right for the employer to deduct over usage from final salaries.

For the same group of workers the revised WTR sees a welcome return of rolled-up holiday pay. Rolled-up holiday pay is where the accrual in a pay period is paid to the employee with their basic salary rather than when they actually take their holiday. The practice was outlawed because in the opinion of the European Court of Justice it discouraged workers from taking time off. However, for many casual work arrangements rolled up holiday pay is the only logical approach and many employers have continued to apply it.

From 1 April 2024 rolled up holiday pay will be permitted on condition that:

• the individual is a part-year or irregular hours worker

• the holiday pay is calculated using 12.07% of all pay for work done

• the holiday pay (12.07%) is paid at the same time as the pay for work done

• the holiday pay is separately itemised on the payslip.

It’s worth noting that the 12.07% formula does not account for the different holiday pots that we covered at the start of this article and therefore in some cases it could result in higher rates of holiday pay.

It is also the case that an employer has a legal duty to ensure that an individual takes their 5.6 weeks of holiday per year and this duty applies even when they are paid using rolled-up holiday pay and not when they actually take their holiday – which could make it difficult to monitor.

Record Keeping

Following a 2019 decision by the European Court of Justice employers have been required to record the daily hours worked by their employees.

Under the revised WTR employers will be required to keep records that evidence compliance with the 48-hour week, opt-out agreements, length of night work and health assessments for night workers, and therefore an employer is not required to record daily hours if they can evidence compliance by other means.

Key Takeways

The revisions to the WTR should be welcome news for most employers, although in some areas they lack detail – such as a lack of definition around normal earnings for the calculation of holiday pay.

Employers of irregular and part year workers will be eager to adapt their processes to accommodate ‘accrue as you go’ and rolled up holiday pay.

For some employers it will be the much-needed spur to start and correctly calculate holiday pay and for others a need to evaluate the true status of their self-employed contractors.

However, for almost all employers there will be a need to look at policies and procedures to ensure that they align with the new rules on holiday carry over and ensure that ‘use it or lose it’ prompts are timetabled before the end of the holiday year.

The full article can be obtained here.

Financial and other reporting

FRC Amendments to FRS 102

The Financial Reporting Council (FRC) issued amendments to financial reporting standards on 27 March 2024, the changes are mostly effective for accounting periods beginning or after 1 January 2026. This follows the consultation impact assessment during 2023.

The amendments include:

• a new model of revenue recognition in FRS 102 and FRS 105 based on the IFRS 15 five-step model for revenue recognition with appropriate simplifications

• a new model of lease accounting in FRS 102 based on IFRS 16 onbalance sheet model (again with appropriate simplifications)

• various other incremental improvements and clarifications

The FRC intends to publish new editions of the standards and updated staff factsheets with guidance during 2024.

The SORP committee are reflecting on these amendments and exploring how they will impact the remaining stages of the SORP development process with updates to follow.

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The full amendment documents can be obtained here.

Dispelling common myths about charities

ICAEW, with input from Crowe, has published guidance exploring ten myths surrounding charities and their operations, with a view to encourage transparent communication in areas where these misconceptions are prevalent. The ten myths considered are:

• Charities spend too much on fundraising.

• They should not make a surplus or build up cash reserves.

• Too much is spent on highly paid executives.

• They should not undertake commercial activities.

• Charities should be run and staffed [for free] by volunteers.

• Too much is spent on overheads.

• Charities don’t pay taxes, so need less money.

• Professional qualifications are needed to become a charity trustee.

• Charities are less vulnerable to fraud than other organisations.

• Charities should not engage in campaigning and political activity.

The guidance includes access to a webinar discussing some of the key myths with voices from the sector.

The Guidance can be found here.

Charity Digital Skills report

The Charity Digital Skills annual report, now in its eighth year, continues to serve as an essential measure of the charity sectors’ digital proficiency, attitudes, and behaviour. As charities face ongoing challenges from the costof-living crisis and adapt to a rapidly changing digital landscape, this report aims to highlight how charities are increasingly leveraging digital tools and identifying key trends.

The report highlights that:

• Half of charities have a digital strategy and 45% say this is a priority for this year, with 76% making progress this year.

• 1 in 4 charities say data is a high priority, with 48% use data to improve services or operations.

• 68% are struggling to process digitally due to finances, capacity or headspace.

• 56% are to engaging with emerging tech trends with 40% saying that they have poor skills & capacity.

• Over half (62%) of charities say trustees’ digital skills are low or could improve.

Whilst many gaps identified in previous years persist, particularly in funding and leadership, there have been positive developments. Notably, there is a significant shift towards charities creating their own digital strategies. These strategies are crucial for ensuring that charities do not fall behind, especially with the rise of AI.

The report can be found here.

NCSC publishes “Cyber Threat Report: UK Charity Sector”

The National Cyber Security Centre has published its annual report, outlining cyber threats currently facing charities of all sizes.

The 2024 DCMS Cyber Security Breaches Survey measures the policies and processes organisations have for cyber security; highlights the commonly perpetrated breaches and attacks and their impacts; and provides a number of recommendations and links to guidance to assist charities strengthen their defences.

The report revealed that 32% of UK Charities identified a cyber-attack in the last 12 months, an increase from the reported 24% in 2023, with phishing breaches being the most common. This increase has driven an increase in the deployment of various controls are procedures in businesses, such as:

• using up-to-date malware protection,

• restricting admin rights,

• network firewalls, and

• agreed processes for phishing emails.

The report notes that the charity sector is particularly vulnerable as they often hold significant amounts of sensitive or valuable data, making them attractive targets for cyber-attacks. Therefore, charities should consider adapting to the increasingly technical environment. This need for adaption is exemplified by cybersecurity being deemed high priority for 63% of charities, with 30% of

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Boards having explicit responsibility for cyber security, and 47% of high-income charities having formal cyber strategies in place.

A copy of the report can be obtained here.

Charity Commission: Guidance on accepting donations

In March 2024, the Charity Commission published new guidance to help charities when deciding whether to accept, refuse or return a donation.

The guidance explains when donations must be refused or returned and when these might likely need to be refused or returned. The guidance makes clear that trustees should start from a position of accepting donations, but from time to time a charity may face a difficult decision as whether to refuse or return a donation. The guidance sets out an approach for trustees to take on these occasions, advising they:

• consider the risks involved in refusing or returning the donation, and how likely and serious these are. These include negative financial impact, ability to deliver services and ability to attract donations in future

• consider the risks involved in accepting or keeping the donation, and how likely and serious these are. These include the likelihood of reduced support or reputational harm, particularly among supporters or beneficiaries

• determine how any decision aligns with their charity’s purposes

• determine what steps they can take to mitigate the risks. These include negotiating the terms of a conditional donation with the donor or developing a public explanation for a decision

It explains that if a charity is considering refusing or returning a donation, the charity must have the legal power to refuse or return a donation. In some situations, there are additional legal rules to consider e.g. disposal or land or properties of a special trust.

The charity should also consider whether it needs to make a SIR when it refuses or returns a donation.

Ultimately, as the guidance states: “Deciding whether to accept, refuse or return a donation is likely to involve a careful balancing exercise. There may be no right or wrong answer, but your decision must be rational and reasonable, and supported by clear evidence.”

Taxation

Charities tax compliance

As part of the Autumn Budget 2024, the government published a response to their consultation on charities tax compliance. The original consultation, published in April 2023, received responses from 33 stakeholders in the charity sector including Crowe UK.

The consultation addressed four key areas of tax compliance for charities. A summary of these areas and the proposed changes to tax legislation, all of which will take effect from April 2026, are outlined below.

Preventing donors from obtaining a financial benefit from their donation

The issue: Existing legislation on Tainted Charity Donations does not have a wide enough scope to capture all possible arrangements between charities and donors that could be used to exploit tax reliefs on charitable donations for financial advantage.

The change: The legislation will be amended to lower the bar for challenging transactions, and the current motive test will be replaced with an outcome test. This is expected to allow HMRC to consider a series of transactions in the round and allow for a more objective assessment of the interactions between a donor and a charity.

Issues to consider: Ahead of the drafting of the new legislation, charities may wish to assess any long term arrangements they have with donors in order to be ready to assess whether any changes will need to be made to these arrangements to minimise the risk of falling into the tighter scope of the new rules.

Preventing abuse of the charitable investment rules

The issue: Under current legislation, certain types of investment qualify automatically as approved charitable investments, irrespective of how the investment is actually used.

The change: Legislation will be amended so that all investments (as opposed to only ‘Type 12’ investments under current legislation) must be demonstrably for the benefit of the charity and not for the avoidance of tax. Investments which do not meet this test will not be approved charitable investments and may lead to a tax exposure.

The full guidance can be obtained here.

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Issues to consider: Charities may wish to review their investment policies for all types of investment to ensure that sufficient evidence will be available in the event of an enquiry to demonstrate that all investments are made for the financial or charitable benefit of the charity. Further guidance on approved charitable investments is available here.

Closing a gap in non-charitable expenditure rules

The issue: The non-charitable expenditure rules under current legislation do not account for legacy income as a type of ‘attributable income’. This provides scope for charities to use legacy income for non-charitable purposes without incurring a tax charge.

The change: Legislation will be amended so that income which is relievable in either the charity’s hands or the donor’s hands will be included within the ‘attributable income’ definition.

Issues to consider: Charities should assess their proposed expenditure from legacy funding to ensure that this will not fall within the tax law definition of non-charitable expenditure. Further guidance on non-charitable expenditure is available here.

Sanctioning charities that do not meet their filing and payment obligations

The issue: Some charities are persistently failing to meet their tax compliance obligations whilst also taking advantage of reliefs and exemptions available to them as charities.

The change: The Fit and Proper Persons test will be amended so that a manager of a charity who persistently fails to comply with the charity’s tax obligations will fail the management condition. This may ultimately lead to the loss of recognition as a charity for tax purposes and to the loss of charitable reliefs and exemptions.

Issues to consider: Charities may consider appointing a suitable official to be responsible for ensuring compliance with the charity’s tax compliance obligations, including the filing of tax returns which are in many cases requested on a rotational basis from charities.

The full published response to the consultation is available here.

Private schools and rates relief

As confirmed at the Autumn Budget 2024, charitable rate relief will be removed from private schools with effect from April 2025. There will be an exception for private schools that are “wholly or mainly” concerned with providing full-time education to pupils for whom an education, health and care plan (EHCP) is maintained.

Creative industry tax reliefs

All claims for Theatre Tax Relief (TTR), Orchestra Tax Relief (OTR) and Museums and Galleries Exhibition Tax Relief (MGETR) made on or after 1 April 2024 must be accompanied by an additional information form. The form must be submitted online and must be filed before or on the same day as the company tax return in which the relevant claim is made. Claims submitted without having filed the additional information form beforehand will invalid and must be re-submitted.

The Autumn Budget 2024 has confirmed the new permanent rates of 40% and 45% which were introduced in the Spring Budget 2024. The new rates will take effect from 1 April 2025.

Stamp Duty Land Tax

HMRC guidance has been updated to confirm that in circumstances where it is necessary to determine the market value of a land transaction for SDLT purposes, it is not necessary to obtain a formal valuation. This is a useful clarification particularly for charities receiving a transfer of land under an incorporation or merger, where the market value may be reportable even where no SDLT is payable due to charitable reliefs.

Autumn Budget 2024

On 30 October, the Chancellor of the Exchequer Rachel Reeves delivered her Autumn 2024 Budget, unveiling a series of significant changes set to impact businesses across various sectors, including most of our audit clients.

In her address, the Chancellor emphasised the government’s commitment to restoring economic stability and fostering sustainable growth. She highlighted the need to tackle fiscal challenges inherited from previous administrations, make tough decisions on tax, welfare, and spending, increase support for public services, and boost capital investment.

Headlines from the budget include:

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• From April 2025, the National Living Wage will rise by 6.7% - increasing to £12.21 per hour for adults over 21 – and employer National Insurance Contributions (NICs) will increase to 15%, with the threshold for NICs dropping from £9,100 to £5,000.

• The NICs Employment Allowance will increase from £5,000 to £10,500 starting April 2025 and the previous threshold for eligibility removed, enabling more businesses to benefit from this relief.

• Corporation Tax will continue to be capped at 25% for the duration of the current parliament, with the Small Profits Rate and Marginal Relief to remain at their current rates and thresholds.

• The budget includes several measures to increase funding for charities and not-for-profits. The government has committed an additional £1.3 billion in new grant funding for local authorities, alongside funding for education and hardship support.

• 20% VAT on private school fees from 1 January 2025, and the removal of charitable rates relief for private schools (further details below).

• For those charities with retail, hospitality or leisure activities, an additional 40% relief on business rates for these sectors up to 2025/2026, capped at £110,000 per business.

Full details of the changes introduced in the budget can be found here.

New rates for creative industry tax reliefs

New permanent rates announced in the Spring Budget 2024 will apply from 1 April 2025 for Theatre Tax Relief, Orchestra Tax Relief and Museums and Galleries Exhibition Tax Relief.

The new rates will be 40% for non-touring productions and 45% for touring productions and all orchestra productions. Previously, the rates were due to taper back to their original levels of 25% and 20% by 2026.

Additionally, Museums and Galleries Tax Relief – which was previously due to expire in 2026 – will have its sunset clause removed so that it is now a permanent relief.

All claims for Theatre Tax Relief, Orchestra Tax Relief and Museums and Galleries Exhibition Tax Relief made on or after 1 April 2024 must be accompanied by an online information form. The form must be submitted before or on the same day as the submission of the company tax return in which the claim is made. The form is available here.

A number of other administrative changes have been made to the creative industry reliefs which include a requirement to disclose connected party transactions with a potential restriction on connected party costs where these have not taken place on an arm’s length basis.

Further details of the administrative changes are available in the policy paper here.

Independent schools – VAT on fees

In July 2024, draft legislation and accompanying papers were released by the Treasury on the introduction of VAT on independent school fees, with the Finance Bill 2024-25 currently progressing through Parliament. The main points are listed below.

1. When will VAT will be introduced on private school fees?

The new law would be effective from 1 January 2025.

Schools that are not VAT registered would need to register for VAT on or before that date. Schools that are not VAT registered but have VAT registered trading subsidiaries, need to consider whether to register as a VAT Group or have separate VAT registrations.

2. How will the anti avoidance/anti forestalling legislation apply?

Any school fees paid in advance which were received on or after 29 July 2024, would not qualify for the education exemption.

3. Where would VAT be applied?

VAT would be applied to education, boarding and accommodation, as well as any extracurricular lessons such as music, drama or sports tuition. However, we have noted that the sport exemption in the VAT Act 1994 Group 10, may still apply to letting of sport facilities to individuals.

4. What would not be subject to VAT?

Administrative changes to creative industry tax reliefs

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Supplies deemed to be ‘closely related’ to education such as the supply of transport, catering, books and stationery would continue to be exempt from VAT.

The documents do mention that ‘value shifting’ on these individual supplies would be challenged if they do not believe the supplies are made at a market value.

5. Will nursery school fees up to reception be subject to VAT?

The supply of nursery school education would remain exempt, however once fees are charged for children of compulsory school age (referred to as the reception class in the UK), VAT will be applied.

6. What about before and after school childcare?

This would remain exempt as a supply of welfare where the supply qualifies as childcare and does not form part of further education (see 3 above).

7. What about fees paid in advance (FiA) where payment has been made before 29 July?

Any private school fees paid after 29 July 2024 for tuition and boarding fees covering a period on or after 1 January 2025 will be subject to 20% VAT.

Any fees pre-paid before 29 July 2024 for tuition and boarding from 1 January 2025 may also be subject to 20% VAT depending on the arrangements that the pre-payment scheme made.

8. What about schools who have pupils with Special Education Needs (SEN)?

The government would seek to ensure that pupils with the most acute SEN are not impacted by these changes. It appears that there would be two exceptions:

(i) the pupil's condition is covered by an Education, Health and Care Plan; and

• (ii) the state system cannot accommodate pupils' needs.

9. What will happen now?

Schools must now prepare for VAT to be introduced from 1 January 2025. As well as registering for VAT by this date, schools should be

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Appendix 7 - Going concern

The Charity Commission guidance “Managing financial difficulties & insolvency in charities” (CC12) stresses the importance for “a trustee body to have a good knowledge and understanding of the charity and its finances so that, as far as possible, the continued viability of the charity and its charitable activities can be assured.”.

This is a theme that runs through the Charity Commission’s updates and alerts including its guidance on whether charities can use reserves and restricted funds to help the charity through the crisis.

The Charity Commission guidance highlights a number of factors the trustees need to consider.

• Trustees should review what are their short, medium and longer-term priorities, including whether or not certain projects, spends or activities can be stopped or delayed.

• The guidance recognises that reserves can be used to help cope with unexpected events like those unfolding at present.

• If the trustees have previously decided to earmark certain funds for a particular purpose they may be able to re-prioritise these.

• Restricted funds which cannot be spent at the trustees’ discretion may only be used for a particular and defined purpose. In some instances, there may be ways to amend these restrictions, but accessing or releasing restricted funds should only be considered if other options such as reserves are not possible.

• All decisions on such financial matters should normally be taken collectively, and significant decisions and action points noted in writing.

d) Liquidity and resilience

The Charity Commission guidance goes on to explain that “ The overall responsibility for effective governance and the implementation of proper financial management rests with the trustees, but may well involve all staff members whether paid or volunteers .”

As well as the level of available reserves the trustees will also need to understand and consider the charity’s liquidity.

• Proper consideration needs to be given to cash flow forecasts and debt and project management based on realistic assumptions set. There should be a budget including cash projections and business plans produced at least annually and monthly monitoring against the plans.

• There is a need to extend cash flow forecasts to evaluate issues that may arise after the end of the period covered by existing cash flow forecasts.

• There should be processes in place to ensure that appropriate procedures and controls have been applied to models used to generate cash flow and valuation information, including the choice and consistent use of key assumptions.

• Appropriate sensitivity analysis needs to be applied to address the potential impact of reasonably possible events. Sources of income and expenditure should be analysed with consideration of uncertainties around grant funding, voluntary or earned income.

• The sensitivity analysis should properly flex assumptions to identify how robust the model outputs are in practice and that the assumptions are free from bias.

In December 2022 the Charity Commission published additional guidance “Manage financial difficulties in your charity arising from cost of living ” pressures , recognising that many charities are facing difficult circumstances as a result of rapidly increasing costs. At the same time, some charities are also experiencing an increase in demand, in particular those charities providing services to people in need, further compounded by donors also suffering from the similar issues thereby leading to reduced income for some charities.

The guidance reminds trustees of their responsibilities in providing effective financial stewardship and ensuring that any decisions made are in the best interest of the charity. Key is the evaluation of the charity’s financial position, and robust and regular reviews of the cashflow forecasts, to ensure the charity

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is able to continue to carry out its charitable activities, identifying any potential shortfalls and enabling actions to be taken in a timely manner.

CC25: “Charity finances: trustee essentials” emphasises the need for charities to be resilient. This is a key theme for much of the Commission’s guidance is also discussed in the updated CC19 guidance entitled “Charity reserves: building resilience”.

In the section on ‘managing financial difficulties and insolvency’, CC25 explains that if charities face financial difficulties then the trustees must:

• “ have the appropriate skills and time to ensure the proper running of the charity and lead or manage it through difficulties,

• ensure that they regularly receive and consider robust and up-to-date financial management information to enable them to recognise at an early stage when the charity is facing financial difficulties,

• find out which charity funds are restricted in their use by their donors and which can be used for any of its aims - this is crucial to the proper understanding of the charity’s overall financial position,

• take prompt action when they think insolvency is a possibility – professional advice in writing should be taken at an early stage because any corrective action needs to be carefully planned,

• consider changing, cutting or restricting the charity’s activities, reviewing funding sources and commitments or refinancing,

• think about merging or collaborating with another charity,

• have an understanding of (and if necessary take advice about) insolvency law and how it applies to charitable companies, and what voluntary options there are for other types of charity,

• recognise that once the charity has reached the stage of liquidation or winding up their primary duty is to pay the charity’s debts, and

• tell the Commission if the charity closes or is no longer active so that it can be removed from the register of charities (legal requirement). ”

e) Insolvency

There are normally two tests of insolvency – the balance sheet test (positive net assets) and the cashflow test. The key issue is, can the organisation pay

its debts as they fall due? The cash flow test is of particular importance and a charity can be insolvent even if it has positive net assets. Careful consideration is required of many factors, such as what values can be realised in time to meet debts and what assets can be used to meet liabilities. Understanding is needed of the implications of the different restricted and endowed funds held by the charity. The position for trustees of an unincorporated charity is different and the risks are usually higher.

Directors and shadow directors can be guilty of wrongful trading if they continue to trade and incur liabilities they knew or ought to have known that there was no reasonable prospect of avoiding insolvent liquidation.

Fraudulent trading is also a risk. Section 213 of the Insolvency Act provides that on the application of the liquidator of a company the Court may order that any persons who were knowingly party to carrying on the business of the company with intent to defraud creditors must make a contribution to the company’s assets. For a fraudulent trading action, intent to defraud creditors must be proved and the onus of proof is on the liquidator. There must be evidence of actual dishonesty. For an insolvent charitable company, senior management, and not just the trustees, could also be made liable for fraudulent trading. The charity should avoid entering into preferential transactions which put another party in a better position to the detriment of other creditors. The court will recognise mitigating circumstances. For example, if the directors took proper steps to minimise the potential loss to the company’s creditors.

f) Finalising the financial statements

Where boards identify possible events or scenarios, other than those with a remote probability of occurring, that could lead to failure, then these should be disclosed. Boards may take account of potential responses open to them to mitigate such events or scenarios although would need to consider the likely success of any response.

On September 2021 the FRC published a thematic review ‘Viability and Going Concern’, which provides guidance for companies to improve their disclosures on going concern, following a review of a number of main market and AIM listed companies annual reports. Whilst this guidance refers to “directors” and “companies”, a number of the recommendations are relevant to all other entities.

In particular, the review recommends that going concern disclosures:

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• Explain the sensitivity analysis, stress and reverse stress tests carried out to support the assessment and provide details of the inputs (quantitative as well as qualitative detail) and outcomes of any such analysis.

• Highlight the significant judgements made by management in determining whether or not the adoption of the going concern basis is appropriate and whether or not there are material uncertainties in respect of going concern to disclose

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Crowe U.K. LLP is a limited liability partnership registered in England and Wales with registered number OC307043. The registered office is at 2[nd] Floor, 55 Ludgate Hill, London EC4M 7JW. A list of the LLP’s members is available at the registered office. Crowe U.K. LLP is registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales. All insolvency practitioners in the firm are licensed in the UK by the Insolvency Practitioners Association. Crowe U.K. LLP is a member of Crowe Global, a Swiss verein. Each member firm of Crowe Global is a separate and independent legal entity. Crowe U.K. LLP and its affiliates are not responsible or liable for any acts or omissions of Crowe Global or any other member of Crowe Global.

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