Charity Rggistration No. 1103522 Company Registration No. 05091977 (England and Walgsl THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED DIRECTORS, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022
THE CATHEDRAL SCHOOL {LLANDAFF) LIMITED CONTENTS Page Company inforrnalion Directors, report (incorporating the Strategic report) Independent auditors, report 2-16 17-20 Financial slalements of the company 21-43
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED COMPANY INFORMATION DIRECTORS AND ADVISORS Mr M R Havard, Bsc, Econ (Honsl (Chairman from 1 January 20221 Mrs K Bales, LPQH, Geri. Ed Mr P R Dewey. BSC. FCA lappoinled 161h March 20221 Dlrectors Mr5 P Jones, BA IHons} lappoinled 1 Gth MarGh 20221 Professor P J Knowles, BA, PhD Mr P R Lacèy, MA Mrs J E Newley, MA, Cert. Ed Mr J C Rawlins, FRICS, MRAC Mr P A Smith, Bsc (appointed 22nd November 2021 } Mr G C Lloyd, FCA, CPFA (Previous Chairman. Resigned 31 Si December 20211 Mr J F Holmes, Bsc {Honsl, FCA (Resigned 31 St December 20211 Mrs C F Wood, Bsc (Honsl {Resigne($ 31Si December 2021 Provost The Revd Canon B D Clover. MA,FRSA,LTCL Company Secretary MrRALeek Charlty No. Company No. 1103522 05091977 Principal Address and Registered Office The Cathedral School, Cardrff Road. Llandaff, Carditt. CF5 2YH Key Management Personnel Head Bursar Mrs C V Sherwood, MA (Hons Canlab) MrRALeek Auditor RSM UK Audit LLP Portland, 25 High Street, craey, West Sussex. RH1n 1BC. Barclays PLC, Floor, S Callaghan Square, Cardiff. CF10 5BT Bankers Solicitors Veale Wasbrough Vizards, Narrow Quay House, Narrow Quay, Bristol. BS1 48Z Geldards LLP, 4 Capiial Quarter, Tyndall Street, Cardrff. CF10 4BZ Insurance Brokers Marsh, 1 Tower Place Wesl, Tower Place, London. EC3R 58U
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED DIRECTORS. REPORT (incorporating the Strategic Report> YEAR ENDED 31ST AUGUST 2022 The directors present their report and financial slalemenls for the year ended 31 sl August 2022 and confirm they cornply with the requirements of the Charities Ael 2011, including the Directors, and Strategic Reports, under the Companies Act 2006. REFERENCE AND ADMINISTRA TIVE INFORMA TION The charity was formed in 2004 and is registered with the Charity Commission as charity number 1103522. The charity is a Iimile¢ liability Company and wholly owned subsiLliary of Tne Vvoodard .nrpnr2tit)n Irharity number 10962701. The charitable company is incorporated in the United Kingdom. Director5 of the Company are also Fellows (members) of the Woodard Corporation and participate in Ilie ElebliuTI ul ils ljijdrd ol maiiagenient and are Gommitted to its Gharitable objects. Note 29 provides details of connected charities. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing Document Thp. company is governed by Articles of Association as adopted by Special Resolution dated 20 March 2013, replacing those dated 29 March 2004 amended by Special Resolulionlsl dated 25 J<*lIU¢1Y 2008, 28 Ayril 2009 aiid 23 June 2009. They permit funds to be managed in such a manner as the directors see fil, provided that such powers are only exercised for the purposes of attaining the objects and in a manner which is legally charitable. The Articles of Association forbid the distribution of any property or funds, which are lo bg appli9d $0181y towards thè promotion of tho objocts of tho company. Governing Body The governors are the directors and charitable trustees of the company and comprise the governing body of The Cathedral School and are elected lo hold office for five years. The governing body met three limes during the year. Reference lo directors, governors and Iruslees are interchangeable thrniJ(Jhr)iJt thèse accounts. Recruitment and Training of Governors All governors are Fellows of the WooQarLI Corpowtion. Fellows are responsltr)le for electlng the Woodard Corporation Board. Governors are recruited on the basis of nominations from school contacts and from selection when a posl becomes available. The governing body look to ensure a mix of skills and select new governor5 on the basis of ba¢kgroLJnd, competence, specialist skills and, in the case of Fellows, Christian commitment. Governors are provided with induction Ira1ning by the Head, Bursar and staff and a wider programme of training events is organised by the Woodard Corporation. Where possible the governors consider that the skills and experience of the governing body should comprise the following". A Guvei I"ior willi a legal background. A Governor with a finanGiallaccounting background. A Governor with cducation cxpcricncc. A Governor with estat98 managamant axperience. A Governor with senior managerial or business experience. A Governor with experience of equal opportunities or disability needs. At least one female Governor and al least one male Governor. An Anglican Ordained Minister. One Governor may have one or more of these skills.
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED DIRECTORS, REPORT (Incorporatlng the Strateglc Report) YEAR ENDED 31ST AUGUST 2022 Volunteers Governors are volunteers providing their lime for free lo support the governance of the school. The school also relies on a number of others lo undertake volunteer roles including fundraising events via 'The Frien¢s of the Cathedral School. group. Parents of infant aged children also assist with School trips and visits. Organisational Management Tho School is govèrnèd by tha govorning body which dalègatas work to 2 numbèr of committ8è8. Membership of each committee is outlined on page 15. The directors determine the general policy of the company. Finance Committee- the Finance Committee has a remit lo consider budgets, both revenue and capital, cash flow information and financial reports, including the financial slatemenls. It also considers financial policies and the financial regulations. 11 makes recommendations lo the governing body for approval. The Finance Committee mel three times during the year. Eslales Committee - the Estates Committee develops the school's estates strategy, including capital development5 and maintenanGe of the building5 and it make5 reGommendation5 to the governing body. It mel three limes during the year. Education Commillp.e Ihp. EdLlC.alion Committee. 18 responqible for oversight of the academic performance of the s¢hool and educational policy, making recommendations lo the governing body. 11 met foul time5 during the year. Remuneration Committee - the Remuneration Committee makes recommendations lo the governing . body regarding the remuneration of the Head and the Bursar. 11 also considers the overall staff salary Increases and makes recommendations lo the Finance Committee.11 mel twice during the year. Risk Management Committee the Risk Management Committee sets 2nd reviews the Risk Management Register on an annual basis. The committee consists of the full board and meets once a ycar. The day to day management of the company Is delegare¢ 10 the Head and the Bursar as ihe Key Management personnel. overseeing educational. gasloral and administrative functions in consullalion with the senior staff. The day lo day administration is undertaken within the policies and procedures approved by the governors which provide for only significant expenditure deGisions and major capital projects lo be referred lo the governors for prior approval. The Head oversees the recruitment of all educational staff, whilst under delegated authority the Bursar oversees the recruilmenl of adminislralive and non-teaching support staff. The Head and Bursar are invited lo allend governors, meetings. The remuneration of key management personnel is sel by the governing body. with the policy objective of providing appropriate incentives lo encourage enhanced perform2nce and of rewarding them fairly and responsibly for their individual conlribLJlions to the school's success. The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to comparisons with other independent schools lo ensure that the school remains sensitive lo the br02der i88U8s of pay and employm8nt conditions elsewhgre. Vve aim lo recruit, subject lo experience, al the lower lo medium point within a band, providing scope for rewarding excellence. Delivery of the school's charitable vision and purpose is prirnarily dependent on our key management personnel and staff costs are the largest single element of our charitable expenditure. School Structure and Relationships The School has developed links with a wide range of organisalions lo ensure the widest possible accc-- to our faciliticb Schooling. Through memberbhip of the family of Woodard School- Headmasters, and Headmistresses, Conference IHMCI, Independent Association of Preparatory Schools IIAPSI, the Choir Schools Association {CSAI, Society of Heads and through networking with
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED DIRECTORS. REPORT (incorpornting (he Strategic Report) YEAR ENDED 31ST AUGUST 2022 peer groups we ensure that we are able lo allain the highest standards of quality and performance. We eneourage pupils lo develop awareness of the social ¢onlexl of the all-round education they receive al the School and they are encouraged in a number of activities lo enhance their understanding. We have a growing alumni group. the Old Llandavians. A committee of parents and staff form 'The Friends of the Cathedral School, and are generous in supporting the work of the School, which is gre211y appreciated. We als9 Gooperate with ch&ritie5 and local Primary Schools in our ongoing endeavours lo widen public access to the Schooling we can provide, lo optimise the educational use of our culture and sporting facilities and lo awaken in our pupils, in the public interest, an awareness of the social context of the all-round education they recglV9. CHARITABLE OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES Charltable Objects The charity's objects, as sel out in the Articles of Association. are to promote and extend education {iriLludiiig bpiritucil, ITiuf<tl, bQLicil, tyullui¢il ¢siid pliybiLtil etJuLdliviil iii tiLLvid¢JllLe Wltli Ilie duLIIiiivb <*iid principles of the Church. The Church is defined as beino the Church of Enoland and churches in full communion with the See of Canlerbury. Intended impact Woodard schools strive for the best all round education of every aspect of each individual., they ensure high standards of religious education,. and they see themselves as communities working together for the benefit of all members, and of the Church and the nalion. They are slrohg Christian foundations which adhere lo catholic belief as found in the Church, lo Christian worship focused in Ihe Eucharist, and lo the care of each individual and the whole school community particularised in the ministry of the Chaplain. Aims The Cathedral School is a day school for pupils from the ages of 3 10 18. 11 aims to support children in re.3ching the.ir polp.ntial in 211 arp.As nf thp.ir ar.tivity Al thp. %r.hnrJl. And in thp. widp.r r.nmmiinity Thi8 iq certainly in enabling each child lo meet their academic potential and also in enabling children to find succe55 in co-curricular excellence in art, dramcl, sport, tnU51G or danGe. We produGe 'well rounded. individuals who are able lo make a positive contribution to society. All Woodard schools aim lo provide a rounded education lo help the pupils to make their way in adult life. Primary objectives The primary objectives of The Cathedral School lo fulfil these aims focus around the following 5 ethos statements.. Achievement- recognizing that all young people have a unique sel of skills and enabling all pupils lo fulfil their poieniial Care lo enable an inclusive community in our Christian environment supporting spiritual growth, understanding, respect and empathy for all Opportunlty- Every teaching & learning opportutTrity to enable the child to flourish Ambition - Aiming high in all aspects of 5¢hool life- with no-one left behind Leadership- Planning effectively and working together lo inspire others and achieve a shared purpose and build a beller world Strategies to achleve the prlmary objectives The strategies this year were focused on "building back beller in the wake of the Covid-19 pandemic. To strengthen academic achievement, we brought a new Year 12 curriculum, re-introducing AS examinations, following the WJEC specification in almost all subjects.
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED DIRECTORS, REPORT (incorporating the Strategic Report) YEAR ENDED 31ST AUGUST 2022 To strengthen achievement amongst our Additional Learning Needs IALNI pupils, Ifollowing new ALN legislation coming into force in Wales), we recruited an additional member of staff lo the ALN department and re-shaped the management structure lo enable appropriate support for pupils al all key stages. Tlie fDGUb vri ex11¢111 l¢(Ibliiiiy bUlTtiiiu¥d willi a particular enipliasis oli exaininalioii groups. Under care, our strategy focused on healthy relationships and developing a new relationships and sexuality education programme. Our strategies built on the feedback following the publication of the OFSTED and Estyn review in the wake of the publication of information on the 'Everyone's Invited" website. We aimed lo strengthen our monitoring process for well-being, extending our lermly pupil well-being survey into the Early Years Foundation Stage IEYFSI classes. Our strategy also highlighted the importance of care for members of staff. Therefore, membership of the slaff forum was widened with an extended remit agreed, and a lermly staff well-being survey was introduced. In terms of opportunity, in sport, our strategy ¢enlred around new partnerships, with both Cardiff Rugby and Hockey Wales, extending opporiuniiies for t)oys and girls. To strengthen opportunities in music, an additional school concert was planned for the summer term, to strcngthcn musical Opportunitic for pupil- bclow thc cxaminalion yetsrs. In terms of resourcing, the first school harp was purchased, giving more pupils access lo the Welsh national. Instrument. Furthermore, the School achieved ils ambition lo be the first independent school lo be accredited as a School of Sanctuary in Wales, which is designated as a nation of sanctuary. This will offer pupils more opportunities lo become involved in a wider social programme. Under leadership, we aimed lo provide new opportunities lo positively impact the School for pupils, and p.t ijr) an Amnp.sly Intg.rnAtinn21 £r)cipty. xllnwing pupils to lead hNo school wide campaigns over the year. For staff, the first formal mechanism lo enable all staff to contribute to Ihe School Development GcllTIPcliyII W<lb IiTrliudu¥¢tJ (iiid Ilir¢¥ Iiew yuvei I iuis weTe iiiduGt¥d uvoi Ili¥ ad¥in1 year. Principal Activitigs of tho Y¢ar The principal activity of the school is the delivery of education lo pupils ranging from 3 10 18 years of age. We also run a number of summer school activities and the school is open al other limes for use by the local community. Pupil numbers al the school during the year were as follows.. 202112022 202012021 Senior School Preparatory School Pre-Preparalory School 471 173 157 179 157 Total 801 796 202112022 Girls 176 58 60 202012021 Girls 171 65 Boys 295 115 97 Boys 289 114 103 Senior School Preparatory School Pre-Preparalory School Total 507 294 506 290
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED DIRECTORS. REPORT (Incorporatlng the sfrateglc Report) YEAR ENDED 31ST AUGUST 2022 Public Benefit As part of our primary objectives, the school aims lo create an environment lo nurture children, lo gel the best from them and lo allow them lo develop and fulfil their polenlial. We provide them with a first class independent education and a wide range of sporting and artistic opporlunilies. Our public benefit aim i& that all pupils will be self-confidenl and de51re to contribute to the wider community. In lerms of public benefit, we also recognise the benet111o the community of the School educaiing 800+ pupils at no cost lo Ihp. piihlir. DiJr%g.. Thp. C2thedral School provides boy and girl Choristers lo sing services in Llandaff Cathedral, gfeally enhancing the spiritual, musical and cultural lives of the City of Cardiff and the DiuLeb¥ vf Lldiidtill. Iii Iliv yd>t aiddeiiiic year, Ilie Clioristers saiig for a variety of IoGal and national events, including BBC Songs of Praise and the first Llandaff Festival providing a vital support to community well-being. In the furtherance of these aims, The Cathedral School governors, as the charity Iruslees, have complied with the duly in s.17 of the Charities Act 2011 to have due regard lo the Charity Commission's pub11shed general and relevant sub-seclor guidance concernino the operation of the public benefit requirement under that Act. Our school welcomes pupils from all backgrounds. To admit a prospective pupil we need lo be satisfied that our school will be able lo educate and develop a prospective pupil lo the best of Ineir potential and in lin@ with the genp.ral gt2nd2rdg Ar.hip.vg.d hy Ihpir peers. Entrance interviews and assessments are undertaken to satisfy ourselves and parents that potential pupils can Cope with the pace of learning and benefit from the education we provide. Ali iiidividu¢al'b eLuiiviiiib blcilus, 9¥iid¥r, elliiiiGily. raGe, religion or disability do not form parl of our assessment processes. Our school is a part of a wider community and we are keen that our links with the community remain strong. We continued lo supported Llandaff Diocese in their partnership work on Taith Advent and worked closely with local schools in our accreditation bid to be a School of Sanctuary. The activities undertaken and the success of our programme are explained in the 'review of achievements and performance for the year, section of this report. Woodard and ils schools provide a significant benefit lo the public. The school strives to ensure that measures of public benefit are appropriate, and that signiticanl sections ot the put)lic are not exclude from the opportunity lo bene.fit frnm Ihp. p.dije.tIrJn And fArilitigq c)ffp.rpd dijp. Irj Ihp nped lo pay a fee. In addition lo significant provision of bursaries and other forms of financial support, the school provides a wl¢e range of opportunities for communily beiiefil <iiid IciLililieb (Iiid Eveiilb ¢1[ vlt¥ii uy¥ii tu cill. Fur Ilier detail of the public benefit offered is included in the section enlilled 'Review of Achievements and Performance for the Year, below. Concessions Including Bursaries & Scholarship5 Our school does not have an endowment and in funding our concessions we have lo be mindful that we musl ensure a balance between fee-paying parents, many of whom make considerable personal sacrrficc to fund thcir child,. cducation, and those benefiting from the awards. Furthgr details of OUT concessions policies and how to apply are available on our website at www.calhedral-school.co.uk. All criteria ané policies relating to concessions are kept under review and are updated when necessary. Bursarics Bursary awards are important in helping lo ensure children from families who would otherwise not be able lo afford Ihe fees can acces5 the education we offer. Our bursary awards are available lo all who meet our general entry requirements and are made solely on the basis of parental means or lo relieve hardship where a pupil's education and future prospects would otherwise be al risk for example in the case of redundancy. In most cases the budget for bursaries is allocated using a'needs blind" approach as far as possible, whilst giving priority lo the conlinuily of education of those pupils already at the school. Tl)ib yvar Ilie value of means lesled bursaries totalled £235,2GG (£210,025 -20211 and represented 2.3Q/o of our gross fees. They provided assistance lo 31 of our pupils of which 3 pupils benefited from a full remission of fees.
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED DIRECTORS. REPORT (incorporating the Strategic Report) YEAR ENDED 31ST AUGUST 2022 Scholarships The purpose of our scholarship awards is to recognise high academic potential or the ability lo excel in our co-curricular aclivilies. Our scholarships are awarded on the basis of the individual's academic potential or evidence of ex¢eplional abilities which will contribute lo our co-curricular activities. In <idtJilivii, ¢dVV¢didb li11Y bubjebl lo conditioiis iniposed by tlie 0[9117a1 doiior. The school awarded scholarships lo 206 pupils, based on their educational rlleril and polenlial, lolalling £197,3051£178,015_ 20211 and representing 20/0 of our gross fees. Of this number, 14 algo qualified for means-lested bursary support and are included in the figures relating to bursary awards. The Cathedral School provides the Choristers lo Llandaff Cathedral and in so doing subsidises their fees via Chorister scholarships. The Scholarships ranges from 200A lo 660/0 rernission of fees. This year the value of Chorister Scholarships lolalled £201,4301£205,170 - 20211 and represented 2¥0 of our gross fees. We supported 37 Choristers during the year. The progress of pupils receiving scholarships is reviewed al least annually lo ensure their progress is in line with their abilities. No scholarships were withdrawn in the year as a result of reviews. Employm¢nt Policy We are an eoual opportunity organisalion and are commilled lo a working environment that is free from any form of discrimination on the grounds of colour, race. elhnicily, religion, sex, sexual orientation or dIabilIty. Wc will makc rca4ionablc adju- -tment- to meet the need- of staff or ptjpils who arc or bccomc disabled. STRA TEGIC REPORT REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR Impact of Coronavirus Pandemic These accounts relate lo the year lo 31 St August 2022, and therefore reflect the diminishing financial and operational imp3cI on the education sector, and all of society, of the Coronaviru pandemic. Schools were required lo close lo all bar 'Key Workers, in March 2020 and again from January to May 2021. Much of the education was moved online. Woodard schools and academies adapted well lo prnviqinn nf nnling. Ip.Arnino And thg. rpqpr)nspq frnm parg.nt.q wg.rg. pnqitivp.. Thi% WA% rp.flp.e.tp.d in increase al The Cathedral School, in September 2021. The pandemic had a direct impact on school financial health across two financial years, bul there was significant recovery in 2021-22. Following earlier cuts in fees in order lo reflect the impact of the various restrictions, The Cathedral School raised fees by 30/0 in September 2021. The Cathedral School had to adapt lo the situation, bul we have been able lo provide a full educational experience in 2021-22, including specially adapted assemblies, cathedral services, concerts, school plays and fixtures. Of particular note was the hard work of staff, who had lo adapt to different classroom set-ups, cover for atrsenl colleagues and respon(J lo the ever-cnanging government legislation on school events and trips. School Performance and Achievements During the year we educated an average of 801 children between the ages of 3 and 18. The school offers a broad curriculum and, whilst entry is subject lo meeting the a¢ademiG requiremen15 of the school, we educate children with a wide range of ability. The educational performance of the school was excellent, as demonslr81ed by the public examination results. Al GCSE. an exceptional 44'/o of grades were g or 8, with 670/0 of all grades at 9-7. The most common grade awarded overall was 8 Ithe equivalent of A.). 100.lo of pupils achieved the equivalent of al least five GCSE grades 9-4 IA'_CI, including first language and Mathemat¢S. Al A Level 45 /0 of all grades gained were al A. and 75°/D at A'_A, with 89,/0 securing their firsl-choice course and university. The most common grade was A. with more than half of the cohort attaining exclusively A'IA grades. Al AS Level, 85Vo of grades were A.
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED DIRECTORS. REPORT (incorporating the Strategic Report) YEAR ENDED 31ST AUGUST 2022 These results are well above the national average for all schools and significantly above the average performance of independent schools, demonslraling both the effectiveness of our educational offering during the pandemic and the excellent way In which we prepared students for their first ever public examinations, particularly the A levèl o)hort. whn nnt C.C.8F We tsuiitiiiue lo iii)prove faGililies through Gonstant investment in the fabric of the buildings and asset?. This year, the external aspects of original school building, School House, were completely re-furbished from the School side. Major repair work was also carried out lo prevent subsidence in the school chapel and now cricket net were opened on Bi£hop'B Figld, for uga by both our girls, and our boys, teams. The Gaihedral Scttool ¢elebratetJ the flr5t year in which the girl <iiid Ili¥ tjuy LliuribtErb werv uiid¥i Ili musical management of the Cathedral's Music Department. Both girls and boys performed at significant festivals throughout the year, including the first Llandaff Festival in July, a community event which was attended by1ocal schools as well as by other well known performers. for example, from the Royal Welsh College of Music and Drama. We have a particular slrenolh in music and the performing arts and the sch(K)I prides itself on the quality of our choirs and orchestras and the progress made by our pupils in national ensembles. 8 pupils b¢1Weil 7 ciiid Year 13 were nieiiibers of the National Youth Choir l National Youth Orchestra and a significant number play for the various Cardiff l Glamorgan ensembles. In our tradition of music for all, the Prirnary Choirs concert, in the Lent Term, featured over 100 pupils singing in various choirs and 140 pupil- pcrformed tst the Senior Lent Term con¢grt, which welogmed back a numbar of Old Llandavian5 both performing and to a specially held reception event. Our half lermly lunchtime concerts are held in the cathedral and are open lo the public, L)eing particularly popular lo the local Llandaff residents. We also support the local community with events they hold each year, including providing both the bugler and the brass band for the Remembrance service held on the cathedral green. Musical and theatre productions this year have been well allended. The fast paced and highly amusing °Complele Works of William Shakespeare" featured a cast of 46 from across Years 7-13. 37 students look part in Ihe Summer Production of "Guys and Dolls" which, for the first lime, was supported by a sludenl band. Also, for the first time, we entered the Independent Schools Bar Mock Trials competition run by Ihe Young Ciiizens FounQalion, with sludenis from Years 11-13 playlng the pans ol t)Oih lawyers and witnesses. Competing against independent schaols across the UK. our team achieved third place and were commended for their professionalism and knowledge. The range of sports offered at The Cathedral School reflects the importance given lo sporting activity and physical education. 96.10 of Year 7-9 represented the school In al least one tixlure, fi4V/o Ot Year 1 U, 80010 of Year 11 (including 96D/o of girls) and 54 % of the Sixth Form. This has enabled us to extend OUT provision and offer a XV in rugby, a 3rd Xl in football and an U-18 B team in hockey. A number of pupils are ou151anding in their field and have represented their country in running, badminton, baseball, cricket, football, gymnastics, hockey, squash and swimming. The appointment of an Athletic Development Coordinator in September 2021 has slrenglhened our development of physical literacy in our pupils from Year 3 to Year 13. Our very high panicipation rates in the Duke of Edinburgh Award193 /0 In Year 9., 96Yo In Year 10, 80 /0 in Year 11 and 800/0 in the Sixth Forml oulslrip the national target of 500/0 of young people across the country and we remained commilled lo enable pupils lo participate in the Award, despite the restrictions placed on it. Expedition5 and residential trips returned after the moratorium imposed by the pandemic and volunteering continued in the local corllmunity in churches 2nd charity shops, liller picking and dog walking for the Dogs Trust, among many others. In all, students al CSL last year, volunteered for 2 colleclive 1,599 hours, which amounts lo a social value of £7,387. Through development of, anLI provision of acce5S to facilities, the sch¢)ol remains an important community resource. Facilities made open lo the public include.. The Clicipgl- Tli¥ Cli¢Jy14iiI ieyularly barries oul Baptism aiid Christenings Our music and performance facilities are made available lo a wide range of local music societies, ineludin9'.
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED DIRECTOR5. REPORT (incorporating the Strategic Report) YEAR ENDED 31ST AUGUST 2022 Cardiff and Vale Youth Jazz Orchestra Orchestra Rehearsals Stage School Our sports pitches are recognised as being of particular quality and are regularly used by.. Cardiff Cavaliers Cricket Club Chorister parents cricket team Glamorgan County Cricket Fixture512nd Team) Milres Cricket Club Salem Chapel Cricket Club Si Fagans Cricket Club UMCC Cricket Fixtures Our sportts htsll is aloo regulady used throughout the year for evening and weekend activities by the following organisalions.. Cardiff City and Mel Korfball Club Cardrff Volleyball Club Celtic Dragons Netball Cricket Wales Lisvane Wales Our Memorial Hall hosts.. Art exhibitions- school has run two with an additional external event Ballet and Tap groups on weekends and during the weekday evenin9S Birthday parties- 13 this year Chrisleninglbaplism receptions three lo date Cwmni Dawns Werin Caerdydd- Folk dancing Dance Group PilAlp.s and yngA r.I2q*P.S - thp.%g. t2kg plarg nn fniir p.vgningq pg.r wgpk The Llandaff society monthly meetin98 Charitable activities for Organisalions such as NSPCC Other activities on school premises were.. Staging the start and finish of the C2slles and Cathedral Cycle Ride The High Sheriff F)osI Cathedral Service drinks and canape event Cardiff Vineyard Church _ weekly
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED
DIRECTOR5, REPORT (incorporating the Strategic Report)
YEAR ENDED 31ST AUGUST 2022
Partnerships
We continued lo develop our close relationship with the diocesan Church in Wales schools this year
as well as strengthening our links with loc31 charities. Once again, we supported the local Taith
Advent inilialive, raising awareness and leaching children about refugees and issues fad by
refugees around the world. In Lent, we joined Ihe diocesan Lamenlaiions Proieci, reassuring children
across the diocese Ihat'il's OK not lo be OK and allowing them lo express their sadness.
Vve supported the development ot the music curriculum with Cwmbach CIVV Primary School, Wllh a
mg.mhg.r nf qt2ff oning lo work with them once a week throughout the year. During Christian Aid week.
we once again combined our efforts with Llandaff City Ciw Primary School, joining a ¢ollaboralive
sponsored walk to raise funds.
We worked closely with Si Mary the Virgin Ciw Primary School and were delighted lo be the first
independent school in Wale5 to be designated as a School of Sanctuary for our commitment lo
ensuring that we are a safe and welcoming pla for all. Feedback from parents showed that
resulting discussions al home positively impacted the children, developing their cultural understanding
and in81igaled further discussion8 at home with thcir familics.
We continued lo develop our partnership with Cartref Residential Home including slrenglhening our
pen pal project and recording a virtual Chri81mas me3aage for the residents.
As members of the Rotary youth charitable body 'lnleracl', we continued to work.wilh local schools
IHowells, Whilchurch High, Llanishen High and Whilchurch Primary) lo raise money and awareness
of global issues, including running a virtual pampering evening.
Charitable Activities
As well as supporting the local community, we have undertaken specific fundraising for proiecls such
<1¥ S
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED DIRECTORS. REPORT (Incorporating the Strategic Reporo YEAR ENDED 31ST AUGUST 2022 Cathedral School. Examination Results Whilst the actual results for both GCSE and A level appear lower than the revious year (Results awarded during the Pandemic), we are extremely pleased with this years, outcomes, some of the best results in the Country. Both results are ahead of our KPI target. FINANCIAL REVIEW Results for the Year Thg net incoming rèsources for the year amounted lo £601,808 ofwhich the operating surplus on gehool activities was £618,778. This surplus has been achieved with a rise in fees lower than inflation and against a background of strongly rising operating costs, so that in the circumstances we consider il highly salisfaclory achievement. Gross income for the year was up by some 5.50/0 on last year, reflecting the increase in pupil numbers throughout the school. The hiring out of The Cathedral School facilities during vacations and after school hours contributed £41,4791£11,250- 20211 to the school's operating surplus. We are now seeing letting Income reiurning to pre-pandemic 1g.ve.Iq The parent? of our pupils often make significant 3acrifice8 lo pay the fee8. In doing 80 they help to relieve the slate of the financial burden of educating 801 UK based children. The saving is eslimaled lo have a value in the last year of £5,488,452. The school is also unable lo recover the VAT on purchases it makes. During thè past year, The Cathedral School has paid an estimated £374,273 in irrecoverable VAT on goods and services. The Cathedral School provides a pension lo some staff under the terms of the Pensions Trust Growth Plan. As a result of this pension scheme being underfunded, The Cathedral School is commilled lo contributing lo a recovery plan. During the course of the year The Cathedral School made contributions lo the recovery plan of £12,632 and the recognised liability under the plan reduced by £54,950, with this value being recognised in the Statement of Financial Aclivilies. Further details can be found in note Reservo• Lev¢1 and Policyi and Flnancial Viability 11 has been the bchool's policy lo ulilise funus lo ensure thai high quallty up-to-date facilities are prnvidg.d fnr Ihp bp.nefil of pupils. The aim is lo budget so 28 lo provide sufficient working capital to meet the present needs and future development requiremen15 of the School wilhoul the requirement to have recourse lo sales of tangible fixed assets or use of the School's readily realisable investments supporting unreslricled funds. Unrestricted funds increased by £618,778 to lolal £8,674,157, as shown in note 21. The Cathedral School plans to fund longer term capital expenditure and meet long term liabilities through careful management of resources and investments and through building reserves through operations and trading. The School aims lo make an overall surplus of 50/0 lo build up lo the largel for free reserves. This year's result indicates that our surplus was 6.90/0 of nel fees. This is a reason3ble OLltcome whg.n r.nnsidp.ring trhp. impart nf C.nvid_1 Q The Governor3 have invested substantial sum8 into new School building8 in recent yeara and have a continuing programme of refurbishment, development, and inveslrllenl lo maintain excellent leaching facilities for our pupils. In common with most independent Schools, and due lo the having to fund their own capital investment plans, free reserveg are st a negative balance illustrating the exlenl of the investment in our School. The School'5 total reserves of £8,802,603 at the year-end included £128,446 of reslricled funds and £8,674,157 unreslricled funds. Fixed assets held for charity use lolalled £9,307,996, leaving free reserves of -£505k 12021.. -£1.426ml at the year-end, an improvement of £921 k. The School's financial viability does not depend on income reserves bLJI in ils ability to continue lo trade al a surplus on an annual basis, and on the substantial portfolio of fixed assets held for operational use. The School does not have, and cannot rely on, permanent endowments. The company's Linr8slrirtRd re8e.rvp. Arp. prim2rily invp..8tpd in t2noihlp. fixg.d whieh Afg All ijspd for ils direct charitable activities.
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED DIRECTORS. REPORT {Incorporatlng the Sfrateglc ReporQ YEAR ENDED 31ST AUGUST 2022 Engagement with Supplier8. Customers and Others In a Busines8 Relationship with The Cathedral School The Cathedral School seeks to enqaoe actively and positively with all stakeholders in the local community and in the wider educational landscape. Collaborative relationships with suppliers, parents, educational partner3 and Gommunity leaders are seen as key enabler5 to afjhieving suGGess in all of the school's operations. During the year tho school has further promoted this engaoemenl though specifie initiativ9£ inpliiding. Regular communication and engagement with parents and prospective parents of pupi15 allending The Cathedral School lo enhance the understanding of the provision lo each pupil and to fully coordinate support lo pupils from parents and schools. Engagement with other educational organisations and partners al local and national levels lo share best practice and to provide peer support. Active dialogues with local councils on mallers which impact children and families in the commLinity as well 3.9 relate to oppration of eaeh sehool. Engaging with local businesses lo promote career and educational opportunities for pupils for their mutual benefit. Sp.p.king 211 tJn8sihlp. npp()rtiJnitip.< tn p.noaup. with lnr.al nalinnal siipplip.rs in the. arp.a Seeking regular communication with all suppliers and ensuring good commercial practices of prompi payment and clear communlcaiion io optlmlse arrangemenis for supply of goods and ServIS lo The Cathedral School. In particular, The Cathedral Sehool has adopted the government'5 policies and guidance during the Coronavirus pandemic and sought lo maximise ils support lo all suppliers through the crisis in order to sustain their support and services in the future. Promoting and encouraging pupil and staff opportunities lo engage in local voluntary and other projects lo support the community. Providing community access lo The Cathedral School and, in many cases, adopting a role that puts the school at the heart of 8 community. PRINCIPAL RISKS AND UNCERTAINTIES Coronaviru$ Pandomic These financial statements were compiled al a lime when all reslriclions relating lo the Covid 1 g global pandemic had been removed, and activity had mostly returned lo normal. That is not lo say that the virus was no longer affecting school life,. cases continue in both pupils and staff, and the school continues to suffer disruption. Like most Iruslees, the governors keep under consideration the impact of a calaslrophic event on the school's ability to continue, bul that event may come about from many causes and being specific about the source is not possible. The consideration of risks in the paragraphs below is therefore reflective of a more stable environment and does not specifically look al the pandemic, or other similar events, bul offers a wider view of common events plus a specrfic risk looking al thos6b evpnts that ec)iJld impart thp. cantinijity nf g.diJeAtian. EGonomi¢ Outlook The governors consider the economic turbulence of recent years and the affordability of fees by parents across the independent sector lo be the principal risk faced by the school. The school is currently close lo full capacity, bul there is no room for complacency. The governing body, therefore, decided last year lo increase the fees in September 2021 by only 3'/o. For September 2022 the governing body has again limited fee changes, lo a 4.250h increase. Health and Safety Health and Safely is always a significant area for risk management. The risks range from fire and damage lo infraslruclure, lo personal risks Imosl notably when away from the campus on trips and expeditions) The level and brèadth of gctivity at thé gehooli is impressive and the risks associated with all activities are minimi5ed by thorough planning and risk assessment. The governing body is responsible for the identification and management of risks. The major risks lo which the Gharity is exposed, as identified by the direGlors. have been ievi¥vweLJ cllitj iysleiii¥ vi 12
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED DIRECTORS, REPORT (incorporating the StrategiG Report) YEAR ENDED 31ST AUGUST 2022 procedures have been established lo manage those risks. Detailed examination of the risks and eslablishmenl of controls lo miligale them is delegated lo the Head and Bursar and the process is overseen by the Risk Committee on behalf of the governing body. A formal review of the risk management processes is undertaken annually in the Lent term. The principal ri3k? to which the sohool is exposcd includc thosc affccting prolcclion of pupils and security and preservation of charitable assets both now and in the future. Significant risk areas.. the governors consider possible calaslrophic events and ensure that the school has a plan in Dlace lo allow education lo continue in a range of different scenarios the market in whiGh the School operates is highly Gompelitive and we monitor developments in education to ensure that pupils always receive a first class, holistic and varied educational experience in our school we strive lo ensure that all staff are able lo work in a safe and supportive environment and policies, procedures and training in Human Resource management and Health and Safety help to ensLJre that the school meets expectations the school operates in a highly regulated sector. including in mallers of child protection. and we appoint appropriate professional advisers lo ensure that we can keep up lo dale with all ie4uii¥iTi¢iilb, bblivul ur {1dIvIdUal iiieiiibership of bodies being Ilie Goiisliluenl as8ocialioiis of Ilie Independent Schools Council also ensure that we have access lo up-lo-dale information and support thc 4ichool operates in an increasingly litigious environment, and we appoint appropriate professional advisers and purchase insurance using specialist brokers and advisers to ensure that we can keep up lo dale with all reqLJiremenls and meet all challenges all organisalions face difficult economic conditions and directors and senior managers in the school keep abreast of economic conditions locally, nationally and inlernalionally to identify trends and develop plans lo address issues The key contro15 used by the school include.. form21 agendas and minutes for all meetings of the governing body and commillees comprehensive strategic planning, financial forecasting, budgeting and management accounting established and identifiable organisalional structures and reporting lines which are regularly rcvicwcd comprehensive formal written policies clear aulhorisalion limits velling procedures, as required by law, for protection of the vulnerable Financial risk management objectives and policles The school uses financial inslrumenls, other than derivatives, comprising loans, cash and other liquid resources and various other items such as trade debtors, creditors and finance lease arrangements that arise directly from operations. The main purpose of these financial instruments is lo raise finance fur Ilie givup'b UPVl<iliuiib. The main issues arising from the group's finanrial in3trument¥ are liquidity risk and interest rate ri3k. The school's directors adopt policies for managing ea¢h of the risks and these are summarised below.. Liquidity risk- the school seeks lo manage financial risk by ensuring sufficient liquidity is available lo meet foreseeable needs by negolialing adequate facilities from banks. Interest rate risk- the school finances operations through a mixture of retained surpluses and bank and other borrowings. The exposure lo interest rate fluctuations is managed by the use of both fixed and floating facilities. GOING CONCERN The governing body has reviewed the impact in the aflermalh of the global pandemic, together with the current economic 51tualion, on SGhDoI vpercltlvllb ciiid fiii<ifiLeb. Tliv yovvriiiiig reGugriibe Itl(Il Ili¥ outcome of the 2021.22 is very positive bul are mindful that the followinq 12 months and beyond will be affected by the current economic uncertainlies., they continue lo rework plans for the next 12 months, to en8tJre the fingncial impact on thc School continucs lo bc miligalcd in Ihc mo1 approprialc way. 13
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED DIRECTORS. REPORT (inGorporating the Strategic Report) YEAR ENDED 31ST AUGUST2022 The accounts show that we are currently cash positive, this is the case even wilhoul recognising that over 25010 of our parents regularly pay fees in advance of the due date. We also have £1.5m bank overdraft facility, in case of need, which has never been called upon. The School has a financial plan up until the end of 2024125, conservatively indicating an annual EBITDA of £345k to £552k- the 18tter being the equivalent to 40 8enior PLJpiI fee?. Our ¢a3h forecast of circa £3.3m in 2024125, gives the governors confidence that the School will be able lo restart the capital project of a new Sixth Form Building in the next few years. Having considered all factors and reviewing the available evidence, including derNand v capacity, exam re5uIt5 and the handlin9 of the IoGk down whiGh ha5 given rise to potential additioiial fundin9 opportunities, the governors have a reasonable expectation that the School will be able lo continue operating for the foreseeable future. Therefore, the financial slalemenls have been prepared on a going concern basis. FUTURE PLANS The governing body s current five-year strategic plan was approved in June 2022 and is reviewed on an annual basis. Tha kay objoctivos of tho current plan ara.. Tv ¥blciL)libli cl Iivw burriLuIuiTI fuf Ilie Y¥<tr O ciiid YeclT T yrvups, fuLusiiig on the development of the Humanities proqramme and orealer provision for leachinq rhetoric and public speakinq. 2. To establish new markets for the school by undertaking specific research, so that pupil numbers can be increased lo be consislenlly above 800 year on year, with a particular focus on increasing numbers in the Reception forms. 3. To commence a formal fundraising programme with appropriate resources, with the initial aim of achieving 100/D of all parental deposits given to the school bursary fund. 4. To strengthen the school's response lo the climate crisis by increasing the number of pupi15 Using the school bus by 500A, reviewin9 the School's existing energy consumption and ncreasinq bio-diversity on the school site. 5. To establish the next 10 Year Plan for the development of the school sile, with a focus on improving the facilities for the Sixth Form, improving the dining facilities for the whole school, providing an additionol teaching space for Juniorè and pcrformancc arca for thc Muolc department. 14
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED DIRECTORS. REPORT (incorporating the Strategic Report) YEAR ENDED 31ST AUGUST 2022 DIRECTORS The directors who served during the year, and the commillees of which they are members, are.. G C Lloyd (Chairman) Resigned 31 Oecember 2021 Mr3 K Ba1¢3 Estates, Finance, Nominations, Remuneration. Risk Management Eduoation, Management Finance, Risk Management Rcmuncration, P R Dewey Appointed 16 March 2022 M R Havard (Vice Chair) Appointed Chaim)an 1 January 2022 J F Holmes Rosi9nod 31 Dgcembgr 2021 Mrq P Jnnps Eslales, Nominations, Remuneration, Risk Management Finance, Nominations, Remuneration, Risk Management Risk Management Appointed 16 March 2022 P R Lacey Education,. Nominations, Remuneration, Risk Manggement Education, Romunoralion, Management Education. Estates, Risk Management P J Knowles Risk Mrs J E Newley J C Rawlins Estates, Finance, Nominations. Risk Management Eductaion. Risk Management P A Smith Mrs C F Wood Estates, Finance. RISK Management Rosignod 31 Dgcgrnbgr 2021 None of the directors has any beneficial interest in the company. The C8thedr81 School buys Iruslees and officers insurance on behalf of the directors. Exemptions from disclosure The Cathedral Sehool h2s not taken advantage of any exemption from disclosure in relation lo Irustee delaiSs. AUOITOR RSM UK LLP, having expressed their willingness lo continue in office, will be deemed reappointed for Ilie next financial year in accordanGe with section 48712} of the Companies Act 200G unless the company receives notice under seclion 488111 of the Companies Act 2006. 15
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED DIRECTORS, REPORT (incorporating the Strategic Report) YEAR ENDED 31ST AUGUST 2022 DIRECTORS RESPONSIBILITIES STATEMENT The directors are responsible for preparing the director's report and the financial statements in aecordance with applicable law and reou13tions Company law requires the direGtgr5 to prepare financial statement5 for each financial year. Under that law the directors have elected lo prepare the financial slalemenls in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law} ncluding FRS 102, the Financial Rgporting Standard applic2b19 in thg UK and Republic of Irgland. Under company law the dire¢lors musl not approve the financial statements unless they are satisfied that they give a true anu tair view ot the slate ol affairs of the charitable company an¢ ot the Incoming resources and application of resources, including the income and expenditure, of Ihe charitable company for that period. In preparing these financial slalemenls, the directors are required to.. select suitable accounting policies and then apply them consislenlly., observe the methods and principles in the Charities SORP IFRS 102}', -timatc- mak¢ judgcmcnt- and accounting c- that arc reaOnable and prud¢nl-, slate whether applicable UK Accounting Standards have been followed, subject lo any material departures disclosed and explained in the financial slalemenls., and, prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The directors are responsible for keepino adequate accounting records that are sufficient lo show and explain the charitable company's transactions and disclose with reasonable accllracy al any lime the financial position of the company and enable them lo ensure that the fin8ncial' slalemenls ¢omply.wilh the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The d1CtOrS confirm Ihal.. so far as each director is aware, there is no relevant audit information of which the charitable company's auditor is unaware., and the directors have taken all the steps that they ought lo have taken a5 directors in order to make themselves aware ot any relevant audit Intormalion and lo establish that the charitable company's Aijditnr 18 2warp. nf that infnrmAtinn. The éireclors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company s website. Legislation in the United Kingdom governing the preparation and dissemination of financial slalements may differ from legislation in other jurisdictions. Approved by the Board of Directors of The Cathedral School on 251h November 2022 including, in their capacity as company directors, approving the Directors, and Strategic Reports contained therein, and signed on ils behalf by.. M Robin Havard CHAIRMAN
THE CATHEDRAL SCHOOL {LLANDAFF) LIMITED INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED YEAR ENDED 31ST AUGUST 2022 Oplnlon We have audited the financial statements of The Cathedral School (Llandaff) LIMle for the year ended 31 Augu8t 2022 which comprisè tha Charity Statement of Financial Aclivilies, the Charity Balance Sheet, the Cash Flow Slalemenl and the notes lo the financial slalemenls, including a summary of significant accounting policies. The financial reporiing framework thai has t)een applied in their preparation is apDlieable law and United Kingdom Accounting Standards. including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted AcGounliii9 PraGlicel. In our opinion the financial ststements.. give a true and fair view of the slate of the charitable company's affairs as al 31 August 2022 and of the incoming resources and application of SOurCes, including ils income and expenditure, for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Ao¢epted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We have been appointed auditors under the Companies Act 2006 2nd section 151 of the Charities Act 2011 and report in accordance with those Acts. We conducted our audit in accordanee with International Standards on Auditing IUKI {ISAs IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial slalemenls section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to OUT audit of the financial slalemenls in the UK, including the FRC'S Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these reouiremenls. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Con¢lu$ions relating to going concern In auditing the financial slalemenls, we have concluded that the Directors, use of the going concern basis of accounting in the preparation of the financial slalemenls is appropriate. Based on the work we have performed, we have not idenlrfied any material uncertainties relating lo events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability lo continue as a going concern for a period of al least twelve months from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the Directors with respect lo going concern are described in the relevant sections ol this report. Other information The Directors are responsible for the other information. The other information comprises the information incluQeQ In ihe Annual Repoll Oiher than the financial statements and our auditor's report thereon. Our opinion on the financial slalemenls does not cover the other information and. except lo the extent otherwise explicitly staled in our report, we do not express any form of assurance conclusion Ihereon. Our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsislenl with the financial statements or our knowledge obtained in the audit or otherwise appears lo be materially misslaled. If we identify such material inconsistencies or apparent material misslalemenls, we are required lo determine whether there is a materia mis5tatetnent in the firi<)nClcil blcilerriviilb Ul <1 Iri(Il¥ri<il ITllbbl<ilviiieiil ul Ill utlTrei iiTrluriii(Iliuii. 11, on the work we have perforrned, we conclude that there is a material misstalemenl of this other inforrNation, we are required to report that fact. We have nothing lo report in this regard.
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED YEAR ENDED 31ST AUGUST2022 Oplnions on other matters prescribed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Directors, Report and the incorporated Strategic Report prepared for the purpose of company law for the flnanclal year for whlch the flnanclal slalemenls are prepare is consislenl with the financial stalemenls., and the Directors, Report and the incorporated Strategic Report have been prepared in accordance with applicabl¢ legal r¢quiremenls. Matters on which we are required to report by ex¢eption In the light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misslatemenls in the Directors, Report and the incorporated Strategic Report. We have nothing lo report in respect of the following mallers where the Companies Act 2006 requires us lo report lo you if, in our opinion.. adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not beeii reGeived froiii branclies nol visitvLJ by ub, vi the parent charilable company financial slalemenls are not in aoreemenl with the accounting records and returns,. or certain disclosures of directors, remuneration specified by law are not made,. or we have nol received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Slalement of Directors, responsibilities set out on page 16, the Iruslees (who are also the directors of the charitable company for the purposes of company lawl are responsible fur tl ie prev¢rdI1UI i ul Ilie fii1¢lllLI(al bli2lviiiviilb ialltj lui b¥iiiy b¢ilibli¢d Ili(Il Ilivy give cl Irug cirid fair view. and for such internal control as the Iruslees determine is necessary lo enable the preparation of financial statements that are free from material misslalement, whether due lo fraud or error. In preparing the financial slatemenls, the Directors are responsible for assessing the charitable company's ablllty to contlnue as a golng concern, dlscloslng, as applicable, matters reiateo lo going concern and using the going concern basis of accounting unless the Iruslees either intend lo liquidate the charitable company or lo cease operations, or have no realistic allernalive bul lo do so. Auditor's responsibilities for the audit of the financial statements OLJr objectives are lo obtain reasonable assurance about whether the financial slalemenls as a whole are free from material misslalemenl, whether due lo fraud or error, and lo issue an auditor's report that in¢lud¢3 our opinion. Re?8onable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delecl a material misslalemenl when il exists. Misslatemenls can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of user$ taken on the basis of these financial stalemenls. Tho gxtent to which thg audit was ¢on$idgr9d capable of detecting irregularities. including fraud Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are lo obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the delerminalion of material amounts and disclosures in the financial slalements, lo perform audit prOdureS lo help identify instances of non-compliance with other laws and regulation5 that may have a rnalerial effect on the financial slalemenls, and to respond appropriately to identified or 8U8pected non-compliance with laws and regulation3 identified durin9 the auéil. In relation lo fraud. the objectives of our aLJdil are to idenlrfy and assess the risk of material misslalg.ment of the financial slalemenls due to fraud, lo obtain sufficient appropriate audit evidence regarding the 18
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED YEAR ENDED 31ST AUGUST 2022 assessed risks of material misstalemenl due lo fraud through designing and implementing appropriate responses and lo respond appropriately lo fraud or suspected fraud identified during the audit. How8ver, it is th8 primary r8gponsibility of managsment, with the ovorsighl of those charged with governance, lo ensure that the enlily's operations are conducted in accordance with the provisions of laws and regulations ano for the prevention anu detection of fraud. In identifying and a$5essing risks of material misstatement in respect of irregularities, including fraud. the group audit ongagcmcnt tcem.. obtained an understanding of the nalure of the sector, including Ihe legal and regulatory framework that the charitable company operate in and how the charitable company are complying with the legal and regulatory framework., inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregLJlarilies, including any known actual, suspected or alleged instances of fraud., iscussed matters about non-compliance with laws and regulations and how fraud might occur incSuding assessment of how and where the financial statements may be susceptible lo fraud. As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial slalemenls are FRS 102, Charities SORP IFRS 102}, Companies Act 2006, Charities Act 2011, the parent charitable company's governing document. and tax legislation performed audit procedures lo delecl non-compliances which rnay have a material impact on the financial slalemenls which included reviewing the financial slalemenls including the Directors. Report, remaining alert lo new or unusual transactions which may not be in accordance with the governing documents, inspecting correspondence with local lax authorities and evaluating advice received from inlernallexlernal advisors. The most significant laws and regulations that have an indirect impact on the financial slalemenls are The Education Ilndependenl School Standards) Regulations 2014. Keeping Children Safe in Education under section 175 of Ihe Education Act 2002. and the UK General Data Protection Regulation (UK GDPRI. We performed audit proGedures lo iiiquire of nianagemenl and those Gharged with governance whether the charitable company is in compliance with these law and regulations and inspected correspondence with regulatory aulhorilies. The group audit engagement team identified the risk of management override of controls and income recognition as the areas where the financial slalemenls were most susceptible lo material misslatemenl due lo fraud. Audit procedures performed included bul were not limited to lesling manual journal entries and other adjuslmenls, evaluating the business rationale In relation to significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates and subslanlive lesl of details over donation and grant income. A further description of our responsibilities for the audit of the financial slalemenls is provided on the Financial Reporting Council's website al hll .'Ilwww.frc.o .uk]audilorsres onsibililies. This description foriiis part of our auditor's report. Use of our report This report is made solely lo the charitable company s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slate lo the charitable company's members those rnatlers we are required lo slate lo them in an auditor's report and for no other purpose. To the fullest exlenl permilled by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work. for this report, or for the opinions we have formed. 19
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED YEAR ENDED 31ST AUGUST2022 Lsn (LL W LLf ZOE LONGSTAFF-TYRRELL (Senior Slalulory Audilorl For 2nd on behalf of RSM UK AUDIT LLP, Slalulory Auditor Chartered Accounlanls Portl2nd. 25 High Street. Cr2wley, Wesl Sussex, RH10 1BG Dale 28 November 2022 20
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED CHARITY STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income and Expenditure Account) YEAR ENDED 31ST AUGUST2022 Notes Unreslricled un(Js Restricted Funds Totsl 20Z2 Totsl 2U21 Income and endowments from.. ¢hiaritdbl¥ AfytivIti School fees receivable Aneillary trading income Other tradlng aGtlvltle5 Non-ancillary trading income Inv85tments Investmenl income Bank and other interest Othèr- Grants and donatlons Grants and Oonatlons Other incomino resources TOTAL INCOMING RESOURCES 9,279,907 284,774 9,279,907 284,774 8,787.227 264,406 41,479 41,479 12.557 550 550 2,425 545 244 2,425 200 200 50,fj03 22 9,608,785 550 9,609.335 9,115,642 Expendlture on.. Raisin9 funds Financing costs TOTAL DEDUCTIBLE COSTS CharTrtsbl¢ A¢liviti¢$ 173,5611 173,5611 173,5611 173,5611 161,3211 161,3211 E¢Jucation and grant making 7a 18,916,446) 118,7201 18,935,166) 18,648,425) TOTAL EXPENDITURE 18,990,007) 118,7201 19,008,727) 18,709,746) Net gainslllossesl on InvesTheni assets 13 1,200 1,200 1,950 Net incomellexpenditUTel Net Movement in fund5 for the year Fund bal8n¢e$ 811s1 September FUND BALANCES AS AT 31ST AUGUST 618,778 116,9701 116,9701 601,808 407,846 618,778 601,808 407,846 8,055,379 145,416 8.200,795 7,792,949 8,674,157 128,446 8,802,603 8,200,795 21
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED CHARITY BALANCE SHEETS AS A T 31ST AUGUST 2022 Note 2022 2021 FIXED ASSETS Tangible assets Investments 12 9,295,336 12,660 9.307.996 9,469,617 11.460 9.481.077 CURRENT ASSETS Stock Debtors Cash al bank and in hand 4,486 247,008 2,568,570 2,820,064 3,058 298,648 2,003,846 2,305,552 14 CURRENT LIABILITIES Creditors payable within one year 15 11,493.7511 {1,501,7921 NET CURRENT ASSETS 1,326,313 803,7fj0 TOTAL ASSETS LESS CURRENT LIABILITIES LONG TERM LIABILITIES Creditors payable after one year 10,634.309 10,284,837 16 11,821,211) 12,018,597) TOTAL NET ASSETS EXCLUDING PENSION LIABILITY 8,813,098 8,266,240 Nel pension liability 23 110.3951 {65,3451 NET ASSETS 8,802,703 8,200,895 REPRESENTED BY: CALLED UP SHARE CAPITAL 19 100 100 RESTRICTED FUNDS UNRESTRICTED FUNDS General reserve 21 128.446 145,416 21 8,674,157 8,055.379 8.802.703 8,200,895 The financial statements were approved and aulhorised for issue by the Board on 251h November 2022 nd signed on its behalf by M Robin Havard CHAIRMAN Company registration number 05091977 The notes on pages 24 10 43 form part of these financial statements. 22
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED CASH FLOW STATEMENT AS AT31ST AUGUST2022 2022 2021 Notes Cash flows from operating activities.. Net cash provided by {used inl op9rating activitie* 25 929.306 8g4.127 Cash flows from investing activities: Dividends, interest and rents from investments Purchase of property, plant and equipment 550 1102.414) 1101.864) 789 130,5561 129,7671 Net cash providgd by (used inl investing activitie5 Cash flows from financlng actlvltles: Repayments of borrowing Financino costs Receipt of enéowmenl Net cash provided by (used in} financing activities 1189.157) 173,5611 1141.0451 157,6211 {262,718) 1198,6661 Change in cash and cash cquivalcnts in tho year S64,724 665.6g4 Cash and cash equivalonts at the beginning of the year 2.003,846 1,338,152 Cash and cash oquivalents at the end of the year 25 2.568,570 2,003,846 23
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST AUGUST 2022 1. ACCOUNTING POLICIES The principal accounting policies, all of which have been applied consistently throughout the year and in the preceding year are.. al Basis of Accounting The accounts have been prepared under the Companies Act 2006 and in accordance with the Slalemenl of Recommended Practice for Charities I'SORP IFRS1021'1 and with applicable UK AcioLinting q13nd3rds Thpy arg. drawn LIP on the. higlnric.al cost 3r.r.OLinlino b3Ris g.xr.p.pl that property and share investments held as fixed assets are carried at fair value. The Cathedral School meets the definition of a public benefit enlily under Financial Reporting Standard IFRS} 102. Assets and liabilities are initially recognised al historical cost or transaction value unless otherwise slated in the relevant accounting policy notes. The preparation of financial statements in conformity with FRS 102 requires management lo make judgements, eslimales and assumptions that affect the application of po1CleS and reported smounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed lo be reasonatrile under ihe circumsiances, Ihe resulis of which form the f)asis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these eslimales. Further details are provided in note 30, and in the acoounting policie5 for depreciation of fixed a55ets, for pensions and for bad debts. The finanGial slalemenls are presented in sterling (£1 and the functional currency is sterling 1£). bl Going Concern The governing body has reviewed the impact in the aftermath of the global pandemic, together with the current economic situation, on School operations and finances. The governing body recognise that the outcome of the 2021.22 is very positive bul are mindful that the following 12 months and beyond will be affected by the current economic uncerlainlies,. they continue lo rework plans for the next 12 month5, to ensure the fInaCIal impact on the School continues lo be miligaled in the most appropriate wav. The accounts show that we are currently cash positive, this is the case ovon without recognising that over 25'/u of our parents regularly pay fees in advance of the due dale. We also have £1.5m tr)ank overdrafl faciliiy, in case of need, which has never been called upon. The School has a financial plan up until the end of 2024125, conservatively indicating an annual EBITDA of £345k lo £552k - the latter being the equivalent lo 40 senior pupil fees. Our cash forecast of circa £3.3m in 2024125, gives the governors confidence that the School will be able lo restart the capital project of a new Sixth Form Building in the next few years. Having considered all factors and reviewing the available evidence, including demand v capacity, exam results and the handling of the lock down which has given rise lo potential additional funding opportunities, the governors have a reasonable expectation that the School will be able lo continue operating for the foreseeable future. Therefore, the financial slalemenls have been prepared on a going concorn basis. LI School Fpes Rgreivable Similar Fees reoeivable and other educational income are accounted for in the period in which the eIce is provided. Fees re1vable are slated after deducting allowances, scholarships and other remissions by the school, but include contributions received frorll reslricled funds for scholarships, bursaries and other granls. Fees in Advance Scheme Contracts are those fees received in advance of education lo be provided in future years under a specific contract. The fees are either held as investments in interest bearing assets until taken lo income lo match liabilities in the term when used, or refunded, or they are held within the unreslricled reserves of the school. Any surplus of assets over liabilities is held within the fund as a buffer. Debts are provided for if not recovered within one term. Estimating amounts to provide against recovery of debts is a matter ofjudgemenl. dl AneSllary and Non-Ancillary Trading Incom• Ancillary trading income represents amounts from activities lo generate funds within the charitable objects, for example school shop sales, coaches lo and from school and school trips. Non-ancillary 24
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST AUGUST 2022 trading income represents amounts from activities not directly related lo the charitable objects, for example lellings of school facilities out of term lime and rental from spare school buildings. Income from these activities is recognised in the Slalemenl of Financial Activities when the goods are sold or services provided el Voluntary sources, Grants and Donations Voluntary incoming resources are accounted for as and when enlillemenl arises, the amount can reliably be quantified, and the economic benefit is considered probable. Voluntary Income for general purposes is accounted lor as unreslri¢led and is credited lo the iP.np.rxl Rg.<p.rvp. whp.rp thp. d()nnr nr 2n APPg.Al hAS impnspd trijsl 12w rp.%trir.tinnq. vr)liJntary income is credited lo the relevant restricted fund and incoming endowments are accounted for as permanent trusl capital or expendable trust capital, according lo whether the donor intends retention lo be permanent or not. Gifts in kind are valued al eslimaled open market value al the ale of gift, in the case of assets for retention or consumption, OT al the va5ue lo the school in case of donated seNices or facilities. D CoronavSriJs Job Retention Schem• ICJRSI Incom• The CJRS grant is receivable as compensation for staff costs incurred and for the purk)ose of giving immediate financial support lo the organisalion with no future related costs. 11 is recognised as income in the period in which il becomes receivable within 'Other- Grant3 and Donations (note 61. gl Expenditur¢ Expenditure is accrued as soon as there is a contractual obligation or a liability is considered probable, discounted lo present valLJe for longer term liabilities. Expenditure is allo¢aled lo expense headings either on a direct cost basis or apportioned according lo lime spent. The irrecoverable element of VAT is included with the item of expense lo which il relates. Bad debts are provided for in accordance with the group bad debt policy. The cost of refurbishing and converting exisling buildings is wrillen-off in the year in which il is incurred exp1 where the useful life has been extended. h} Flnance and Other Costs Other Costs include amounts accrued in aGGordance with the terms of Fees in AdvanGe Scheme Conlracls. il Pension Cost$ The school company participates in the Teachers, Pensions scheme, which is an unfunded government scheme, and The Pensions Trust, both of which provide benefits based on final pensionable pay. The funds of the schemes are separate from the company, although the company s share of the schemes cannot be identified as the schemes are mulli~employer schemes, and so the pension costs are accounted for as defined contribution schemes Tho company offers membership of the Pensions Trust Growth Plan lo employees other than the full-lime academic staff. The Pensions Trust Growth is a mulli-employer pension scheme where Ihe scheffle asseis are pooleLS for Invesiment purposes an¢ cannoi De atirltruieu io InLJlvlQual employers. Benefits are paid from the lolal scheme assets. 1115 in most respects a money purchase arrangement, bul has some guarantees. As a result it is not possible or appropriate lo identify the assets and liabilities of ihe scheme which are attributable to the company, though, due to the guarantees inherent in the scheme, the companies remain potentially liable for a debt on withdrawal from the scheme. In accordance with Financial Reporting Standard IFRSI 102 (section 28) therefore, the scheme is accounted for in a fashion which is similar lo a defined contribution scheme. The company musl recognise a liability measured as the present value of Ihe conlfibulions payable that arise from the defiGII recovery agreement and the resulting expense in the income and expenditure account i.e. the Ljnwinding of the discount rale as a finance cost in the period in which il arises. More detail is given in notes 23. Il Tangible Fixed A559ts and Depre¢lation In accordance with SeGtion 35.10 Idl of FRS102. The C<]Iliedrcil School has elEGted to use the carryino value of any of the above freehold land and buildinqs previously carried al a valuation, as their deemed cost at the date of transition lo FRS102, 1 September 2014. 25
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST AUGUST 2022 Tangible fixed assets are staled al cost less depreciation. Individual capital items, or projects, with a valLJe greater than £10,000 are capilalised. Assets in the course of construction are slated al cost less any provision for impairment. They are transferred lo completed assets when substantially all of the activities necessary to get the asset re3dy for use are complete. Where appropriate cost includes our own labour costs in relation to conslruclion, and directly atlribulable overheals. Where langlble flxed assets have been acquired with the aid of 5peGific gTant5 they are included in the balarn sheet al cost and depreciated over their expected useful economic life. The related grants are credited to a restricted fixed assetfund lin the slalemenl of financial activities and carried forward in the balance sheet). The deprcciation on such asocts is chargcd in thc statcmcnt of financial activities over the expected useful economic life of the related asset on a basis consistent with the depreciation policy. Depreciation is provided al rates calculated lo write off Ihe cost, less estimated residual value of each asset based on current market prices, over ils expected useful life, as follows.. Freehold land is not depreciated Freehold Buildings.. Variable according lo the building and wrillen off over the expected useful life15ee paragraph below} Over the useful economic life of the improvement Over the shorter of the economic life of the asset or the lrfe of tho192S9 Over the economic life of the asset 25 /0 on cost 100/0 on cost 25 % on cost 25Yo on cost Freehold improvements Leasehold land Leasehold enhancement Lompuler equipment Telephone system Fixtures and fittings Molor vehicles The Gompany has reviewed its tsngible assets, which comprise land, buildings and initial fixtures and fillings. The company undertakes an annual review of all buildings assessing their useful economic life. In some cases the useful economic life of a building is anlicipaled lo be of considorsble lan9th, oftan in oxcoss of 100 years. The buildings ara capitalisod in tho financial slalemenls al historic cost. Where the calculated depreciation charge is a material figure, il is chargeu In these financial statements but, where the carrying value Is not more than the estimated recoverable amount and the depreciation on the building is not materi21 to these financial slalemenls, il has been assessed, bul not charged on the basis that il is not material. The directors will continue lo Garry out aniiual a&ses5nient5 of the recoverable aniount and the estimated useful life of all buildings and where the depreciation is a material value, il will be charged. The review is based on the direclors, assessments of the market value and the future economic benefit derived from an asset versus ils carrying value in the financial stalomenls. When the company undertakes a significant refurbishrnenl project that will have an economic benefit, the cost of the refurbishment is capilalised, recorded separately under 'Freehold Improvements,, ils useful life is estimated and il is depreciated over that useful life. No ¢epreclatlon Is provlued for In respect of investment properties in accordance wlth Section 10 of FRS102. Such proDerties are held for their investment polenli81 and not for consumr)lion within the business. Investment properties are slated al their fair value al the balance sheet dale. The Cathedral School exercises judgement in selection of appropriate rates for depreciation of fixcd assct- and for matters of impairment. kl Financial Instruments The Cathedral School only has finaneial assets and financial liabilities of a kind that qualify as basic financial inslrumenls. Basic financial instruments are initially recognised al transaction value and subsequently measured al their settlement value with the exception of bank loans which are subsequently measured at amorlised cost using the effective interest method. 11 Investments and Fggs in Advance Investments Investments and Fees in Advance investments are carried al fair value, which is deemed to be market value as al the balance sheet date. Realised and unrealised investment gains and losses are recognised as 'net gainslllosses} on 26
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED NOTE5 TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST AUGUST 2022 investment assets, in the Slalemenl of Financial Activities and are allocated lo the appropriate fund according lo the 'ownership' of the underlying assets. ml Stocks Stocks comprise raw materials, consumable stores and goods held for resale.. they a valued at the lower of cost and nel realisable value. nl Leasing Commiiments A5set5 held under finance leases and hire purchase GonttaGts are Gapitali5ed in the balanGe Sheet and are depreciated over their useful lives or the period of the lease whichever is the shorter. The interest element of the obligations is charged lo the Slalemenl of Financial Activities over the period of the lease. Rentals applicable to operating leases where subslanlially all of the benefits and risks of ownership remain with the lessor are charged lo the Statement of Financial Activities on a slraighl line basis over the lease term. Lease incentives are accounted for over the lease term on a slraighl-line basis. o} Fee Deposits Refundable fee deposits are currently classified between long term and short term in the financial slatemenls. These deposits are refundable in the event Ihat the pupils leave a school on one term's notice and as such the deposit would be refunded lo the parents al that point. I lowever, the financial slalemenls are prepared on a going concern basis and il is assumed that the majority of children will rernan in school for their full years of education and therefore the deposit will be refundgd to them wh8n th8y16ava gchool. Short term deposits reflect those pupils that will be leaving a school within one year, and the longer- term element reflects those pupils that will be leaving a school after 12 months from the balance sheet dale. p} Fund Accounts Endowment funds are subject 10 Specific conditions by donors that the capital musl be maintained by the charity. Endowment funds are further sub-divided into permanent and expendable, where required by the terms of the Irusl. Restricted funds are subject lo specific conditions by donors as lo how they may be used. The purposes and uses of the restricted funds are set out in the notes lo the financial slalements. neqionatp.d fiinds r.nmF)ri4p. fiJnd whirh h2vp hg.p.n qg.t Aidp xt thp. di*rrptinn nf thp. dir(&.trtnrq fnr specific purposes. The purposes and uses of the designated funds are set out in the notes lo the finanGial slalemenls. ql Taxation The Cathedral School is a registered charity and as such are exempt from income lax and corporation lax under the provisions of Section 476 of the Corporation Tax Act 2010. There is no similar exemption for VAT, which is included in expenditure or in the cost of asseis as appropriale. The school has a subsidiary company that Is subject to taxes including corporation lax and VAT in the samp. way ag Any r.nmmp.rr.i21 nrg2nlS1lnn Thp. tAx r.h2rgp.d tn thp. prnfit Ins8 2r.rniJnt iq based on the subsidiary company's profil for the year and lakes into account lax arising because of timing difference5 betweeii tlie IieciliTieiil ul b¥rl¢lill iI¥iTlb lui l¢lX diid ciutyuuiiliiig purpvbeb. The subsidiary Gompany distribute5 the majority of its profits to The Cathedral SGhool under Gtft Aid and lax liabilities are kept lo a minimum. 27
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST AUGUST 2022 2. CHARITABLE ACTIVITIES- SCHOOL FEES RECEIVABLE 2022 ?o?fj The school fees income comprises Gross fees Less.. Total sGholar3hips, bur3arie3, et Less.. Discount for COVID-19 10,134,056 l eS4,1491 9,749,437 1804,3741 1157,8361 9,279,907 8,787,227 3. CHARITABLE ACTIVITIES- ANCILLARY TRADING INCOME 2022 2021 Extras Entrance fees and registration fees Fees in Lieu of Notice Extra Subjects Sundry Income Other School Shop Commission 15,400 18.700 158,892 80,513 11.269 16,115 6,376 150,227 73,646 18.042 284.774 264,406 4. OTHER TRADING ACTIVITIES 2022 2021 Non-ancillary trading income Lellings Income Interest receivable- pupil bills 41,479 11,250 1.307 41,479 12,557 5. INVESTMENTS- BANK AND OTHER INTEREST RECEIVABLE Unrestricted Restricted Total 2022 Total 2021 Bank interest Other interest 2,425 2,425 550 244 545 550 2,425 550 2,975 789 28
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST AUGUST 2022 6. OTHER- GRANTS AND DONATIONS Unreslricled Restricted Total 2022 Total 2021 Government grants - CJRS 50,663 50.663 7. ANALYSIS OF EXPENDITURE al Total expenditure Staff costs Support costs Depreciation Total Total (note 91 (Noie 121 2022 2021 Co¥t¥ of raisirig fuiids Financing cost {nole 81 Total cost of generating funds 73,561 73.561 61,321 73,561 73,561 61,321 Charitable expendlture Teaching Welfare Premises School administration and Governance Donations Grants awaids and prizes Inole 221 Movement in Pension recovery plan Education and grant making 5,285,217 37,586 252,335 534,691 413,696 597,194 972,433 620,269 14,169 5,713,082 634,780 1,487,294 1,154.960 5,552,065 619.360 1,495,939 978,309 262,526 20,547 117,7951 154,9501 154,950) 6,109,829 2,548,642 276,695 8,935,166 8,648,425 Total Expenditure 6,109,829 2,622,203 276,695 9,008.727 8,709,746 bl Grants. awards and prizes The Cathedral School makes awards to individual families lo support schooling. 2022 2021 From Restricted Funds.. Scholarships From Unrestricted Funds- Bursaries (Hardship) Bursaries (Scholarships) Bursaries (Siblings) Scholarships 18,720 20,547 235,266 201,430 18,517 178,585 210,025 205,170 33,450 178,015 652,518 647,207 29
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST AUGUST 2022 7. ANALYSIS OF EXPENDITURE Iconlinuedl cl Total resources expended include= The Cathedral School r¢imbur?es governors for out of pocket expenses including travel subsistence and accommodation, where a claim is made. 5 governors were reimbursed during the year12021'. 2022 2021 Remunerallon pald to audltor for au(Jlt 5eTvices Remuneration paid lo auditor for non-audil services Depreciation of tangible fixed assets.. owned by the Charitable Company held under finance leases and hire purchase contracts (Profilllloss on disposal of fixed assets Operating lease rentals.. land and buildings other assets Reimbursement of personal expenses to governors Other Governance Costs- Legal Fees 21.600 19,560 276,685 305,192 93,294 71,793 125 12.608 67,400 101,198 11,520 476,105 504,870 8. FINANCING COSTS 2022 2021 Bank interest payable Bank charges Provision for bad doubtful debts 47.862 10,968 14,731 47.053 10,568 3,700 73,561 61,321 g. STAFF COSTS 2022 2021 The aggregate payroll costs for the year were.. Wages and salaries Social security costs Other pension costs Private medical insurance 4,705,460 486,402 908,102 9,865 4,600,123 455,282 900,290 6,445 6,109,829 5,962,140 None of the governors received remuneration or other benefits from The Cathedral School or from any connected body. The Head and Bursar are classed by the school as being the Key Management Personnel. 2022 2021 Agyregale eiiiployee beiiefils of key management personnel 245,201 235,997 30
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST AUGUST 2022 The number of higher paid employees whose annual emoluments were £60,000 or more was.. 2022 No 2021 No £60,001- £70,000 £70,001 _ £80,000 £80,001- £90,000 £90,001 £100,000 £100.001- £110.000 £110,001- £120,000 The number with retirement benefits accruing.. in Defined ConlribLJlion schemes was Of which the conlribLJlions amounted lo £16.715 £16.150 For 2022 there are nil12021.' nil) employees earning over £60,000 per year that have chosen not to partlGipate in a pension scheme. 10. STAFF COSTS {Conlinuodl The average number of employees during the year calculated on a head count basis. was 15212021.. 1571 2022 No 2021 No Teaching Welfare Premises Support Other activities 82 12 12 17 35 10 152 157 10. DIRECTORS None of the directors lor any person5 connected with them) received any remuneration during the year. 11. TAXATION The company is a registered charity and therefore no liability lo laxalion arises on ils charitable activilics. 31
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST AUGUST 2022 13. INVESTMENTS 2022 2021 Investments Al 1 September I Inrp.ali8p.d gAin£l{Ic)£qp.%l nn investments 11,460 1,200 9,J10 1.950 Investments at 31 August 12,660 11,460 Investments ¢omprise- Listed investments Equities- Murray International 12,660 11,460 Investments at 31 August 12.660 11,460 14. DEBTORS 2022 2021 School fees receivable Other Debtors Prepayments and accrued income Amounts due from parent company 51,137 2,810 191.712 1.349 62,181 235,841 626 247,008 298.648 33
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST AUGUST 2022 15. CREDITORS- amounts falling due wlthln one year 2022 2021 Bank loans and overdrafts Deposits from parents Fees received from parents in advance of term Trade creditor5 Taxation and social security Other creditors Accruals 200.292 22,9QQ 663.481 191,945 10,UUU 797.804 307,158 115,581 62,197 122,142 124,010 117,070 170,828 81,535 1.493,751 1,501,792 The Calheural School nas a bank loan from Barclays Plc. The loan is secured L)y charges on ihe school's assets and by a debenture al a rale of interest of 2.320YD over base rate. and is repayable over a term of 5 years, with effect from April 2020, following renegolialion. Summary of mov¢m¢nt$ in deferred income 2022 2021 Balance al 1 September 2021 Amounls arising in the year Amounts transferred lo SOFA 797,804 663,481 {797.8041 834,674 797,804 1834,674} Balancg at 31 August 2022 663.481 797,804 Deferred income arises due lo parents paying the Michaelmas Term's fee prior lo the end of the Financial Year. 16. CREDITORS.. amounts falling due after one year 2022 2021 Bank loans and overdrafts Deposits from parents 1.458,311 362,900 1,655,815 362,782 1,821,211 2,018,597 17. BANK LOAN 2022 ?021 The bank loan is repayable in inslalmenls Due within 110 2 years Due within 2 to 5 years Due after 5 years Due after more than one year Due within 1 year 205,498 1,252,813 398,011 1,257,804 1,458,311 200,292 1,655,815 191,945 1,658,603 1,847,760 34
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST AUGUST 2022 18. COMMITMENTS UNDER OPERATING LEASES The future minimum commitmen15 under non-cancellable operating leases are.. Land and buildings Othcr 2022 2022 2021 2021 Within 1 year Wiihin 1 10 5 years After 5 years 98,350 384,400 8.099,216 67,400 260,000 2.303.200 97,920 122.700 101,198 174,336 8.581,966 2,631,200 220.620 275,534 19. SHARE CAPITAL 2022 2021 Aulhorised 100 Ordinary Shares of £1 each 100 100 Allotted, called up and fully paid 100 Ordinary Shares of £1 each 100 100 20. FUNDS The Cathedral School's fund5 are analysed under the following headings.. a) RESTRICTED FUNDS The income funds of the Company include reslricled funds comprising the following unexpended balances of donations and grants held on trust for specrfic purposes.. The Chorister Special Fund assist parents of Choristers who have fallen into financial difficulty and are unable to meet the lot81 cost of fees less the Chorister Scholarship. The Special Fund Support Funding is a fund that helps families who have lost their main income earner. The fund helps lo pay the fees of the child until the next natural break in their education. bl UNRESTRICTED FUNDS Unreslricled funds represent accumulated income from the School's activities and other sources that are available for the general purpose of the School. 35
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST AUGUST 2022 21. ANALYSIS OF NET ASSETS BETWEEN FUNDS Total 2022 Total 2021 Unreslricle Reslricled Share Capital T2ngible fixed asseis Investments Nel current assets Long term liabilities 9,295,336 9.295,336 12.660 1,326,313 {1.831,G061 9,469,617 11.460 803,760 12,083,942) 12.660 115,786 1,210,427 11,831,006) 100 8,674,157 128,446 100 8.802,703 8,200,895 Total 2021 Total 2020 Unresiricred F¢eSir1ed Share Capital Tanqible fixed assets Investments Nel current Iliabililiesllassels Long term liabilities 9,469.617 9.469,617 11,460 803,760 12,083,942) 9,744,253 9,510 182,027 11,460 133,956 669,704 {2,083,9421 100 12,142,741) 8,055,379 145,416 100 8,200,895 7,793,04g 36
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST AUGUST 2022 22. SUMMARY OF MOVEMENTS ON MAJOR FUNDS At31 August 2022 At 1 Sept 2021 Incoming rcsourctss Resources cxpcndcd Gainsl Rostrlct8d Funds Revaluation Reserve Choristèr Spoeisl Fkjnd Sy(*bidl Fuii Support 7,361 1,200 8,561 76,821 550 77,371 61,234 118.7201 42,514 14S,416 550 118,7201 1,200 128,446 Unrestricted Funds General Reserve 8,055,379 9,608,785 18,990,007) 8,674.157 8,05S,379 9,608,785 18,990,007) ,874,157 Total Funds 8,200.795 9,609,335 19,008,7271 1,200 8,802,603 A131 August 2021 At 1 Sept 2020 Incoming resources Resources expended Geinsl Ilossesl RgStrict8d Funds Rev8Suation Rèserve Chorister Special Fund Special Fund- qLJPPnrt 5,411 1,950 7,361 76,276 545 76,821 81.781 120.5471 61,234 163.468 545 120.5471 1,950 145,416 Unrestricte(l Funds General Reserve 7,629,481 9,115.097 18,689,199) 8.055,379 7,629,481 9,115,097 18,689,1991 8.055.379 Total Funds 7,792,949 9,11 S,642 18,709,746) 1,950 8,200,79S -ter Specitsl Fund it+ ts retstrietèd fund available to support Choristers where their parents have fallen into difficulty covering school fees, in excess of the Chorister Scholarship .8rJp.flAI Fijnd - 8iJprJnrt. A rg.qtrir.tg.d Fijnd tn 388l£t piJpil£ tc) enntinijg. at thp sr.ht)nl ijntil thg. n6.axt natural break in their education following a major change to family financial circumstances, such as the loss of the main Income earner. 37
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST AUGUST 2022 23. PENSION SCHEMES Teachers, Pension Scheme Thg .8r.htsnl p2rtiripAtp8 in thp. Tp2chers' Pension Scheme {"the TPS'} for it£ te2tthino %tAff. Th pension charge for the year includes contributions payable lo the TPS of £788,296 {2021.' £T02,"ITOI and at the year-end £92,1461202"1- £88. T581 was accrued in respect of contributions to this scheme. The TPS 18 an unfunded multi-employer defined benefit3 pension Scheme governed by The Teachers, Pensions Regulations 2010 las amendedl and The Teachers, Pension Scheme Regulations 2014 las amended). Members contribute on a pay as you go" basis with contributions from members and the employer being credited lo the Exchequer. Retirement and other pension benefits are paid by public funds provided by Padiamenl. The employer contribution rale is set by the Secretary of Slate following scheme valuations undertaken by the Government Actuary's Department. The most recent actuarial valuation of the TPS wa? prepar¢d as al 31 March 2016 and the V8luation Report, which was publi8hed in March 2019, confirmed Ihal the employer contribution rate for the TPS would increase from 16.40/0 lo 23.6010 from 1 September 2019. Employers are also required lo pay a scheme administration levy of 0.080A giving a lolal employer contribution rale of 23.680/.. The 31 March 2016 Valuation Report was prepared In accordance with the benefits sei out In the scheme regulations and under the approach specified in the Directions. as they applied al 5 March 2019. However, the assumptions were considered and set by the Department for Education prior lo the ruling in the 'McCloudlSargeant case,. This case has required the courts lo consider cases regarding the implemenlalion of the 2015 reforms lo Public Service Pensions including the Teachers, Pensions. On 27 June 2019 the Supreme Court denied the government permission lo appeal the Court of Appeal's judgment that Iransilional provisions introduced lo the reformed pension schemes in 201 fj G3vÈ rise to unlawful aoe discrimination The govèrnmènt 18 rp%ripeting thg. Cnijrt's dp.ri8inn and ha5 said il will engage fully with the Employment Tribunal as well as employer and member i¢pr¢b¥iil(IlivEb Iv ¢Jyl¢¥ Iiuw Ili¢ tJibL111111114aliuiib will L)¢ i¥ii11. Tli¢ yvv¢rriiii¥ril ciiiiiouiILed on 4 February 2021 that il intends lo proceed with a deferred choice underpin under which members will be able lo choose either legacy or reformed scheme benefits in respect of their ¥crvicc during thc pcriod b¢twc¢n 1 April 2016 and 31 March 2022 al Ihc point Ihcy bccomc payable. The TPS is subject to a cost cap mechanism which was put in place lo protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary lo the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal's ruling in the Mccloudlsargeanl case and until there is certainly about the value of pensions lo employees from April 2015 onwards. The pause was lifted in July 2020, 8nd 8 ¢on8(Jltalion was launched on 24 June on proposed changes lo the cost control mechanism following 8 review by the Government Actuary. Following a public consultation, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming lo implement these Changes in time for the 2020 valuations. The 2016 cost control valuations have since been completed in January 2022. and the results indicated that there would be no changes lo benefits or member contributions required. The results of the cost cap valuation are not used lo set the employer contribution rate. and HM Treasury has confirmed that any changes lo the employer contribution rale resulting from the 2020 valuations will lake effect in April 2024. Until the 2020 valuation is completed il is not possible lo conclude on any financial impact or fuiure changes io ihe conlritruiion raies of the TPS. Accor¢ingly, no provision for any additional past benefit pension costs is included in these financial slalemenls. 38
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST AUGUST 2022 23. PENSION SCHEMES IConlinued} Pensions Trust Grobvth Plan The School parlicipales in the scheme, a mulli-employer scheme which provides benefits lo some 638 non-associaled partlGipating etnployers. The scheme is a defined benefit scheme in the UK. It is not possible for the company lo obtain sufficient information lo enable il lo account for the scheme as a defined benefit scheme. Therefore il accounts for the scheme as a defined contribution s¢h9me. The scheme 15 subject lo the funding legislation outlined In the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, sel out the framework for funding defined benefit occupational pension schemes in Ihe UK. The scheme is classified as a 'lasl-man standing arrangement,. Therefore the company Is potentl8lly liable for other participating cmploycr47 obligalions if thosc cmploycwo arc unablc to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme. A full actuarial valuation for the scheme was carried out al 30 September 2020. This valuation bliuvved ul £800.3111, liabililivs ul £831.91ii aiid a defiGIt of £31.6in. To elirriiiiale this fuiidiiig shortf811, the Trustee has asked the participating employers to pay additional contributions lo the scheme as follows.. Deficit contributions From 1 April 2022 10 31 January 2025.. £3,312,000 per annum (payable monlhlyl Unless a concession has been agreed with the Trustee the term lo 31 January 2025 applies. Note thai ihe scheme's prevlous valuaiion was carrled oui wlth an effectlve claie of 30 September 2017. This valuation showèd asgets of £794.gm, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shorrfall, the Trustee asked the participating employers lo pay additional contributions lo the scheme 2s follows.. Deficit contributions From 1 April 2019 10 30 September 2025.. £11,243,000 per annum (payable onlhly and Increasing by 30h each on 1 sl April) The recovery plan conlfibulions are allocated lo each participating employer in line with their esiimated share of ihe Series 1 anu Series 2 scheme liabilities. Where the scheme is in deficit and where the company has agreed lo a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the nel present value of the deficit reduction contributions payable under the agreement that relates lo Ihe deficit. The present value is calculated using the discount rale detailed In these disclosures. The unwinding of the discount rate is recognised as a finance cost. 39
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST AUGUST 2022 23. PENSION SCHEMES Iconlinuedl Prgsent Values of Provision 2022 2021 Present value of provision 10,395 6S,345 Re¢onciliation of opening and ¢losing provisions 2022 2021 Provision at 1 beplember Unwinding of the discount factor Deficit contribution paid Remeasurements - impact of any change in assumptions Remeasurements - amendrnenls lo the contribution schedule 65,345 372 112,632) 1458) 142,2321 83,140 403 118,1101 1881 Provlsion at 31 August 10.395 Incomo and expenditure impact 2022 2021 Inlerebl exyerise Unwinding of the discount factor Remeasuremenls - impact of any change in assumptions Remeasuremenls - amendments to the contribution schedule Assumptions 372 403 {4581 {42,232} 2022 1881 2021 %per annum %per annum Rale of discount 4.46 0.63 The discount rates Shown Ébove are thc cquivalcnt single ditscount rates which, when used lo iscounl the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve lo discount the same recovery plan contributions. Deficit Contributions Schedule The following schedule shows the deficit contributions agreed between the company and the scheme al each year end period.. 2022 2021 Year 1 Year 2 Year 3 Year 4 lg 20 11 66 40
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST AUGUST 2022 23. PENSION SCHEMES Iconlinuedl The company musl reeognise a liability measured as the present value of the contributions payable that arise from the deficit recovery aqreemenl and the resullino expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises. It 18 these conlribulion? th8t h8ve been used to derive the company's balanco shccl liobilily. The current valuaiion does noi refleci ihe expected Increase in benefits anu therefore liability as a result of Guaranteed Minimum Pension I'GMP'I eoualisalion between men and women which is required as a result of the removal of the Additional Slate Pension. Methodologies for a long-lerm solution are still being investigated by the Governmenl as sel out in the published (January 20181 outcome of the Governtllenl Consultation 'lndexation and Equalisalion of GMP in Public Sector Pensions Schemes, and therefore the expected impact cannot be reliably estimated and consequently no provisionlliability has been recognised. 24. RECONCILIATION OF NET INCOMING RESOURCES TO NET CASH INFLOW FROM OPERATIONS 2022 2021 Net income for the perlod las per the Statement of Financial Activities} 6L11.805 4VT,845 Adjustments for Depreciation charges Interest Receivable Interest Payable Dividends, interest and rents from investments IGainslllosses on investments {Incre3*pllrlp.n.re.3se. in qloc.ks Decreaselllncreasel in debtors {Decreasellincrease in creditor5 276.695 305,192 17891 57,621 117,7951 11,9501 73,561 15501 11,2001 11,4281 51,640 171.2201 91,361 50,917 Net cash provlded by {used inl operating activities 929,306 894,127 25. ANALYSIS OF CASH AND CASH EQUIVALENTS 2022 2021 Cash in hand and al bank 2,568,570 2,003,846 Total cash and cash gqijivalonts 2,S68,S70 ?.nn3,R4 41
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST AUGUST 2022 26. ANALYSIS OF CHANGES IN NET DEBT Other non-cash changes Al 1 St Sept 2021 At 31st Aug 2022 Cash flows Gash and cash equivalents Cosh 2,003,846 2,003,846 664,724 564,724 2,668,670 2,568,570 Borrowings Loans falling due within one year Loans falling due after more than one year 1191,9451 18,347) {200,2921 {1,655,8151 245,366 {47.862) 11,458,311) {1,R47.7fini 237,n1 Q (47.A6?1 11,658,603) Total 156,086 801,743 {47,8621 909.967 27. CONTINGENT LIABILITIES The Company has been notified by The Pensions Trust of the eslimaled employer debt on withdrawal from the Plan based on the financial position of the Plan as al 30 September 2021.. As of this dale the eslimaled employer debt for the Company was £135,972, including Series 3 28. ULTIMATE CONTROLLING PARTY The Woodard Corporation Limited is the ultimate controlling party. a registered charity number 1 U9b2lU, which Is Incorporated In England and Wales. Copies of the financial statements of the Woodard Corporation can be obtained from High Street. Abbots Bromley. Rugeley. Slaffordshire, WS15 3B W. The accoLJnts of The Cathedral School Limited are included within the consolidated ri11¢11al ¥laLviiieiits ol 11-1¥ Vvuodard Coi-poi-alion Liinited. 29. RELATED PARTIES As slated In note 29, The Cathedral School Limited is a wholly owned subsidiary of The Woodard Corporation. An amount of £56,719 12021.. £44,965) was paid during the year lo Woodard Corporation by way of a levy lo meet running costs. Also. £57,57812021.' £19,059) was received in relation lo School Fees paid by Woodard Corporation as parl of the Fees in Advance Scheme contract. Al 315t August 2022 £1,34912021.. £6261 was due from the Woodard Corporation. 30. ACCOUNTINC ESTIMATES AND JUDGEMENTS In praparing thè financial statèmants, the directors aro requirod lo make ostimslos and jud9amant8. The mallers detailed below are considered lo be the most important in understanding the iuQgemenls that are Involve(J In preparing the financial statements and the uncertainties that could irnpacl the amounts reported in the results of operations. financial r)osilion and cashflows. Accounting policies are shown al note 1 to the financial stalemenls. Pension scheme deficit reduction payments As explained al note 23, there is a deficit reduction plan in place in respect of The Cathedral School's membership of the Pension Trust's Growth Plan. FRS 102 requires a liability lo be recognised in respect of the present value of future contributions payable under the terms of the deficit recovery plan. The incorporation of this liability in the financial slalemenls involves the exercise of judgement in a number of areag. including the selèction of an appropriate discount rate. 42
THE CATHEDRAL SCHOOL (LLANDAFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST AUGUST 2022 Pension scheme Gontingenl liability As explained at note 24, there is a contin9enl liability in the event that The Cathedral School were lo withdraw ils membership of the Pension Trust's Growth Plan. The independent qualified aciuaries aovising ihe Pensions Trust in respect of Ihe coniingent Wllhdrawal Iiabilily exercise significant judgement in determining the amount of that liability. Judgement is exercised in a number of areas, including future changes in salaries and inflation, mortality rates and the selection of appi"opi"iate discouiit I"ales. Provision for bad debts Dcbts arc providcd for if not rccovcrcd within onc tcrm. Estimating amount3 to provide ag8in?I recovery of debts is a maller of judgement. Depreciation, impairn7enl and residual values of fixed assets Judgement is exercised in estimating the residual values of fixed assets, the selection of appropriate rates for depreciation, and for matters of impairment. 43