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, cra￿ey, 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, ITiuft 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 tiaii Aid Vveek and 2 wisli upon a star. The sGliool Goiiimunily lakes parl in a wide range of sponsored events and other fundraising activities and these continued during lockdown with pupils raising money as individuals by running marathon disl8nces either individually or in a Icam. Not taking into account the ￿um$ raised durin9 lockdown, the school raised in excess of £5,200 to support local and national charities Key Performance Indicators The Key Performance Indi¢alors IKPls} used by the school are.. KPI Target Actual 2022 Actual 2021 Surplus ees 6.9¥0 4.60 Pupil Numbers 800 801 796 Total salaries lo netfees 70 10 of nel fees 64.70/0 68Q/o A Level target Average S¢OT9 gf SS% Grade A or above 750/. 8501. GCSE Level target Average score of 65% Grade 7 or above 670/0 86% Surplus- With nel income 5.8Vo higher than budget and costs being controlled extremely well during a difficult year al 96°/o, we are pleased with the outcome. Expenditure included £110k spend on renovation5 to existing buildin95. Pupil Numbers This remains slea(Jy at circa 800, indicating a healthy demand tor places at the 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 ServI￿S 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