OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2020-08-31-accounts

ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 2020

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2020

_____________

CONTENTS

CONTENTS
Page
Report of the Trustees 2-21
Auditor’s Report 22-23
Consolidated Statement of Financial Activities 24
Consolidated and Charity Balance Sheets 25
Consolidated Cash Flow 26
Terminology 27
Notes to the Financial Statements 28-58

THE MISSION OF CHRIST’S HOSPITAL

It is and shall be the mission of Christ’s Hospital:

-1-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2020 REPORT OF THE TRUSTEES

_____________

KEY INFORMATION

Year ended 31 Year ended 31
August 2020 August 2019
BFinancial Results
Investment income £8.5m £12.4m
BInvestment gains £9.8m £9.3m
Total return (net of fees and interest) 4.7% 4.8%
School fee income £9.6m £10.7m
Fundraising income £2.8m £3.3m
Net trading (loss) / income (£0.2m) £0.7m
Closing value of Endowment Funds £379.9m £378.4m
Closing value of Total Funds £440.3m £441.1m
Staff (FTE) 376 379
Teaching 112 113
Teaching support 39 39
Welfare 60 62
Premises, Administration & other 165 165
Total pupils (at beginning of Academic Year) 878 906

-2-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2020 REPORT OF THE TRUSTEES

_____________

The Council of Christ’s Hospital (Council) presents its report and audited financial statements for the year ended 31 August 2020 under the Charities Act 2011 and the Companies Act 2006, thus including the Directors’ Report and Strategic Report under the 2006 Act, together with the audited financial statements for the year.

CONSTITUTION AND OBJECTS

Christ’s Hospital is a charitable company limited by guarantee (company number 06232556) and registered in England. It is registered with the Charity Commission in England and Wales under charity number 1120090.

Christ’s Hospital was incorporated on 1 May 2007. On 1 August 2007 the governance structure changed with Christ’s Hospital and Christ’s Hospital Foundation (the Foundation) operating as two separate legal entities, each with its own governing body. Arrangements for the governance of Christ’s Hospital were laid down in its Memorandum and Articles of Association approved by the Charity Commission on 1 May 2007.

After extensive consultation and due diligence undertaken during 2015 and 2016, the Council of Almoners (the former corporate trustee of the Foundation) and the Board of School Governors of Christ’s Hospital agreed on 14 June 2017 to adopt a unitary governance and management structure, effective 1 September 2017. Revised Memorandum and Articles of Association were approved by the Council of Almoners, in its role as the sole member, on 18 August 2017. Under a Scheme approved by the Charity Commission in August 2017, Christ’s Hospital replaced the Council of Almoners as corporate trustee of the Foundation and a number of linked charities, including the Christ’s Hospital Common Investment Fund (charity number 1111507) on 1 September 2017.

The consolidated Financial Statements include the activities of Christ’s Hospital, Christ’s Hospital Foundation, a charitable trust (charity number 306975), together with Christ’s Hospital’s trading subsidiary, Christ’s Hospital Enterprises Limited (company number 02326883), its controlled charity Bluecoat Sports (a charitable company limited by guarantee, charity number 1096244, company number 04384765) and Christal House Contracts Limited (company number 04285259). The relationships of these companies to Christ’s Hospital are described on pages 17 and 18. Their financial performance is shown in Note 4(c) on page 34.

Christ’s Hospital’s objects and principal activities, as set out in the Memorandum of Association, are:

TERMINOLOGY

To assist in understanding the Report and Financial Statements, a brief explanation of some of the terms that are used is shown on page 27.

-3-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2020 REPORT OF THE TRUSTEES

_____________

STRATEGIC REPORT

OBJECTIVES, ACHIEVEMENTS AND PERFORMANCE FOR 2019/20

The objectives established for the year and our achievements against these are set out below:

A significant piece of work, known as Shape of the Day and involving many staff across the School, is reviewing the various elements of the School day and week with a view to better addressing the needs of pupils and staff. It is expected that changes will be introduced from Michaelmas term 2021.

Complete a project to upgrade and enhance the theatre, 44 years after its original construction.

Develop with Council a Site Master Plan to reflect the ambition of the School’s strategy, particularly boarding house provision to support pastoral excellence.

Drive forward the Bright Futures Campaign, which aims to raise £1.5 million to support additional bursary places by September 2021.

Many of the main elements of Shape of the Day are now agreed and some will be trialled in the current School year, ahead of full roll-out in September 2021. The guiding principles of this initiative, which touches on all aspects of life at Christ’s Hospital, are to ensure an improved pastoral, educational and broader curricular experience for pupils, while creating a supportive environment for staff wellbeing and development.

Project completion has been delayed by the period of COVID lockdown, which forced the site to be closed to contractors for three months and had knock-on effects in certain aspects of the upgrade work. The theatre is now scheduled to be handed back to the School at the end of Michaelmas term.

Work is continuing on developing the Site Master Plan and initial planning for longer term boarding house refurbishment is under way. It has been necessary to suspend further work until there is greater visibility on what the longer term impact of COVID will be. The objective remains to reach agreement on an ambitious site plan for the School, for implementation over the next 20 years.

The Bright Futures campaign, launched in September 2019, reached £0.8 million by the end of the year. Further information is provided in the Fundraising section later in this report.

Academic achievements 2020

Results will fluctuate year on year due to the unique range of challenges faced by any year group of Christ’s Hospital pupils. With the cancellation of all public examinations in summer 2020 it should be noted that the reported examination results, apart from the IB, are the adjudicated centre assessed grades generated by the School with the retention of a few grades across both A-Level and (I)GCSE that were moderated up originally by the statistical algorithm. Centre assessed grades were the grades submitted by teachers, departments and the School, considering all available evidence and arriving at a grade that would most likely have been achieved if the examinations had gone ahead. The IB results were generated from a centre assessed grade in combination with the external assessment of the internal assessment material (coursework).

A2 results

At A-Level/Pre-U, 80.6% of the grades this year were at A- B (2019: 61.3%) and 53.2% of the A- Level/Pre-U grades gained were equivalent to A or A (2019: 36.9%). The average UCAS points per A Level candidate under a new tariff was 135 (2019: 125) and the overall A2 pass rate was 100% (2019: 99.2%).

-4-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2020 REPORT OF THE TRUSTEES

_____________

At the top end of this year’s A2 cohort there were some very strong results, with 39 of the 101 pupils, 39% (2019: 25%), gaining the equivalent of three A grades or better.

IB results

At IB, 93% (2019: 82%) of the grades gained were equivalent to A- B at A Level and 68% (2019: 50%) were equivalent to A or A at A Level. The average UCAS points per IB candidate this year was 223 (2019: 192).

All of the cohort of 28 pupils achieved a pass, with eight (2019: two) achieving 40 points and an overall average of 37.5 points (2019: 34).

University places

With suitable advice and sensible intervention from our Sixth Form team, 66% (2019: 58%) of those pupils who applied for further study were placed in their first choice course at university and a further 12% (2019: 20%) took up their insurance place. Places included Oxbridge (8), Warwick (8), Edinburgh (7), Imperial College London (1), University College London (5) and the London School of Economics (1). Five pupils were accepted to study medicine. The number of pupils awarded places at Russell Group universities was 67% (2019: 68%). Courses in economics or engineering were the most popular areas for CH pupils.

(I)GCSE Results

This year’s (I)GCSE results were again strong, with some excellent individual performances and an overall pass rate of 98.7% (2019: 96.0%). With almost all the results awarded using the new 9-1 grading system, 19.7% (2019: 15.9%) of all grades awarded were at level 9 and 41.8% (2019: 37.2%) were awarded at level 8 and above, equivalent to an A*. Grades awarded at an equivalent of an A grade and above were 67.0% (2019: 64.3%), level 7-9.

Amongst the highlights, six pupils gained ten or more grades at level 9 (2019: seven), with one pupil achieving 11 level 9s.

Other highlights include:

-5-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2020 REPORT OF THE TRUSTEES

_____________

FUTURE PLANS

Objectives for the coming year:

NON RECENT CASES OF ABUSE

During the year, the School continued to face this challenge. A former teacher, who was already serving a custodial sentence for offences against former pupils, was convicted of further offences in September 2020. The School continues to keep its stakeholders informed of developments and to provide reassurance and support to anybody that has been affected by these issues. A group of Council Members, current and former staff, survivors and other former pupils has met to consider the means by which past events might be remembered and acknowledged. The School remains confident that nothing has emerged from these cases that presents any risk to the safety and wellbeing of pupils today. The Charity Commission has been kept informed and has not raised any concerns.

PUBLIC BENEFIT

In considering the aims of Christ’s Hospital, Council has, in accordance with the Charities Act 2011, given due regard to the public benefit guidance issued by the Charity Commission.

Throughout its history, Christ’s Hospital has relied upon the generosity of its benefactors. Their donations and legacies have built up the Endowment, such that financial support is provided to around three-quarters of the pupils, thereby making available a high standard of education to children from low-income families including those who, because of difficult home circumstances, would most benefit from the stability of a boarding environment. Children applying to Christ’s Hospital are assessed for their academic potential, their ability to benefit from the opportunities that are made available, their level of need and their suitability for a boarding education. The financial resources of families applying for financial assistance are then assessed and contributions toward the cost of their education are set in accordance with a graduated scale. This ensures that access to the benefits of an education at Christ’s Hospital is available to suitable children irrespective of the financial circumstances of their families.

Christ’s Hospital continues to attract applicants through a programme of publicity including regular contact with the head teachers of primary schools, particularly those in disadvantaged areas. Levels of interest remain high, with around five applicants for every bursary place available at the School during the year.

-6-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2020 REPORT OF THE TRUSTEES

_____________

From the total of 878 pupils in the School at the beginning of the year, 661 (75%) received financial support towards the costs of their education with 93 (11%) of these pupils being entirely funded by the Foundation. These figures also include staff discounts which were received by the families of 25 pupils (3%).

COVID-19 had a significant impact on the household income of the families of many of our pupils. With the site being closed to pupils during the summer term, in response to the risk of the virus and government guidance, families were balancing a number of challenges including remote learning, access to IT and the additional expense of a child being at home. To respond to these issues, Christ’s Hospital set aside funds for those families experiencing significant hardship due to the virus. In addition to reducing the summer term fees by 40% for all boarding pupils and 15% for day pupils, £300k was approved by Council to be available to those families most affected. We are grateful for donations received during this time from parents and from other bodies. These were allocated via increased bursaries or fee debt waiver, support towards IT for remote learning and supermarket vouchers (in lieu of school meals) for pupils on full bursaries. Support from the Benevolent Society of Blues enabled supermarket vouchers to continue to be provided during the summer holidays.

Christ’s Hospital regularly opens up its site to local organisations including schools, sports clubs and choirs. A programme of special events for primary schools in particular enable us to share our facilities and expertise with the local community and the School hosts a number of regional sports events each year. Clearly this programme has been impacted due to COVID-19 but we continue to maintain these relationships with a view to restarting our activities as soon as conditions allow. The School made available its stocks of PPE to the local community in the initial period of lockdown and the Design and Technology department produced significant numbers of face shields for organisations and individuals as far apart as Birmingham and Brighton.

For more information about the work of Christ’s Hospital, please read the Impact Report 2019/20 or visit the website at www.christs-hospital.org.uk.

PROMOTION OF THE SUCCESS OF THE ORGANISATION TO BENEFIT ITS MEMBERS

Council confirms that in accordance with Section 172 (1) of the Companies Act it acts in a way it considers most likely to achieve the purposes of Christ’s Hospital. In making this assessment, Council has considered the following:

a. The likely consequences of any decision in the long term

The long-term sustainability of the operating model is considered by Council as set out in the financial sustainability section of the Report of the Trustees. Specifically, Council considers both short and longer term financial projections and key risks that could negatively impact the sustainability of Christ’s Hospital. Council and its committees review management information, budgets, cashflow projections, forecasts and progress against the financial plan on a regular basis.

The responsibilities of Council in relation to investment strategy are set out in the Statement of Investment Principles and are exercised through the Investment Committee.

Risk management is embedded at all levels across Christ’s Hospital with the key risks being considered at each Council meeting. See page 14 for further details.

-7-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2020 REPORT OF THE TRUSTEES

_____________

b. The interests of Christ’s Hospital’s employees

Council and its committees receive regular reports from management on staff matters including turnover and staff morale. Pre-pandemic, selected staff were invited to twice-yearly social events with Council Members. Council meetings usually begin with a presentation by a departmental head, giving staff the opportunity to engage with governance and respond to feedback and questions on their particular areas of expertise. Council Members with specific areas of responsibility such as safeguarding, boarding and health and safety are invited to the School on a regular basis and attend executive meetings such as the Safeguarding Monitoring Group and the Health and Safety Committee.

Christ’s Hospital is an equal opportunities employer and welcomes and encourages applications by candidates from diverse backgrounds. Following the widespread demonstrations in support of the Black Lives Matter movement, Christ’s Hospital has made acting on its commitment to challenge inequality a priority. Management will be reporting to the newly-established Equity, Diversity and Inclusion Committee on staff and pupil diversity and the Senior Strategic Team, made up of senior managers in both academic and support departments, will be considering ways in which Christ’s Hospital can be a more inclusive employer.

Employment, staff welfare and other policies are reviewed and updated regularly; staff are alerted by email to specific updates and amended policies are highlighted on the home page of the staff intranet.

Teaching staff and matrons are represented by a Joint Negotiating Committee, which acts as a consultative body on their behalf and meets regularly with senior management. Other staff are consulted on issues specific to their interests through their line managers who are encouraged to take their views into account in making changes or developing policy.

During the pandemic and in particular during the lockdown period, communication with staff was mainly, of necessity, online. The Head Teacher and Senior Leadership Team maintained the weekly staff meetings for teaching and pastoral staff via MS Teams, supplemented with specific briefings by the Chief Operating Officer and Finance Director on the financial and operational impact of the virus. Support managers continued to meet regularly online and the Chief Operating Officer provided both online and email briefings for staff to ensure that all were up to date with developments and safety information. Staff who were furloughed also had the opportunity to meet online for briefings to ensure that they remained up to date with developments at Christ’s Hospital.

c. The need to foster the company's business relationships with suppliers, customers and stakeholders

Christ’s Hospital works with a range of donors in support of furthering its aims and objectives. Christ’s Hospital’s fundraising is bound by an ethical policy with ongoing fundraising activities monitored by the Campaign Board.

Communication with parents and guardians became by necessity more frequent in the COVID environment but also developed in terms of delivery and content, with well-attended webinars which are likely to remain a critical element of communication going forward.

In accordance with the Christ’s Hospital’s standard payment terms, supplier payment is due within 30 days after the invoice is received from the supplier. High value contracts require a tender process with a minimum of three tendering parties and are subject to scrutiny at committee and, in certain cases, Council level.

-8-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2020 REPORT OF THE TRUSTEES

_____________

d. The impact of the company's operations on the community and the environment

Council has commissioned an independent review of energy use and has provided a review of greenhouse gas emissions later in the report in compliance with the Streamlined Energy and Carbon Reporting (SECR) Report. The sharing of Christ’s Hospital’s facilities and expertise with the local community is set out earlier in the Public Benefit section.

e. The desirability of the charitable company maintaining a reputation for high standards of business conduct

Christ’s Hospital takes a zero tolerance approach towards fraud, bribery and corruption. It is committed to complying with all applicable laws and regulations relating to fraud, bribery and corruption. Expectations of employees are clearly set out in the Anti-Bribery Statement and Policy and the Staff Code of Conduct.

f. The need to act fairly as between members of the charitable company.

Council Members understand the need to avoid and manage potential conflicts of interest. The register of interests is reviewed annually and declarations of interest is a standing item on every Council and committee meeting agenda.

ENERGY AND EMISSIONS REPORT

In the year we took the following energy efficiency actions:

2020

UK energy use[1] (kWh) 15,727,334 Associated greenhouse gas emissions[2] Tonnes CO[2] equivalent 3,796,090 Intensity ratio Emissions per FTE staff member 10,096

FINANCIAL REVIEW AND RESULTS FOR THE YEAR ENDED 31 AUGUST 2020

Income and expenditure

The details of income and expenditure are shown in the Consolidated Statement of Financial Activities on page 24.

1 UK energy use covers the School, Sports Centre and trading activities across the group.

2 Associated greenhouse gases have been calculated under the Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance. March 2019 (Updated Introduction and Chapters 1 and 2).

-9-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2020 REPORT OF THE TRUSTEES

_____________

Financial results for the year were significantly impacted by COVID-19. Following the closure of the School site and the move to remote learning for pupils from March 2020, the summer term fees were reduced by 40% for boarders and 15% for day pupils. The group’s commercial activities were significantly affected with the cancellation of both the Easter and summer let programmes resulting in a loss on trading activities of £0.2 million compared with a surplus of £0.7 million in the prior year. £1.0 million of grants from the Coronavirus Job Retention Scheme (CJRS) greatly helped to mitigate some of the loss of income. Expenditure was lower than budgeted for the year following deferral of certain planned maintenance activities and the closure of the School site during the first lockdown, albeit that this was counteracted to a certain extent by the additional costs of preparing the School for reopening in the Michaelmas term. Further detail on the financial performance of subsidiary and related entities is set out on page 12.

The virus had a significant impact on global investment markets particularly during March and April 2020, although those recovered by the end of August 2020. Property values were significantly impacted with downward revaluation of the commercial property portfolio by 4.5% at 31 August 2020. It is expected that there will continue to be volatility for some time due to the continued global economic impact of the virus.

Investment performance

The total return on the investments was £18.3 million (2019: £21.7 million) which was made up of dividend, interest and rental income of £8.5 million (2019: £12.4 million) and investment gains of £9.8 million (2019: £9.3 million).

Securities and other assets
Investment properties including land
Total invested assets		 2020
£m
258.1
157.5
415.6		 Total
Return
5.9%
2.7%
4.7%		 2019
£m
Total
Return
260.4
1.7%
166.4
9.6%
426.8
4.8%

The rebound in global equity markets during the summer, driven by governments providing historymaking levels of stimulus, ensured that the return on the securities portfolio was better than originally feared and counteracted the lower return on the property portfolio. The securities portfolio’s return of 5.9% net of all fees compares favourably to the 1.3% return of the IA Mixed Investment (40-85% shares) Index, a peer group index representing the performance of multi-asset class portfolios similar in composition to the securities portfolio. It also compares favourably to the target return, being the return on the Retail Price Index plus 3.75%, which was 4.3% for the period. Over the longer term, the securities portfolio is up 7.1% p.a. over the last 5 years, as compared to 5.6% p.a. for the IA Mixed Investment (40-85% shares) Index and 6.2% for the target. With the resurgence of the virus in autumn 2020 and uncertainty surrounding the efficacy and timing of a vaccination programme, it is expected that volatility in global investment markets will continue into the next financial year. However the diversification inherent within the securities portfolio’s multi-asset class investment strategy should see it well-positioned to weather that uncertainty.

Whilst the Christ’s Hospital property portfolio return was significantly lower than 2019 it fared considerably better than benchmark, returning 2.7% against a commercial benchmark return of -2.9%. This result was despite a 4.5% reduction in overall value of the commercial property portfolio; the most significant individual variation (-11.8%) being in our one remaining high street retail property at Guildford. We note that as at 31 August 2020, the property portfolio valuation included a material uncertainty clause in respect of the high street retail property, that uncertainty being lifted post year end on 9 September 2020.

-10-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2020 REPORT OF THE TRUSTEES

_____________

Fundraising

Christ’s Hospital undertook a range of fundraising activities in the year, led by its Development team and supported by the Campaign Board, a committee of Council. Fundraising activities included appeal mailings and the engagement of individuals and organisations in person and through a range of digital channels.

Income from donations and legacies of £2.8 million (2019: £3.3 million) was 10% below target for the year. This underperformance was primarily due to lower legacy income than forecast. Income from philanthropic partnerships continued to play a central role as did the support of many individual Old Blues, parents and other supporters. A total of 1,239 Old Blues and parents made a donation in the year – a 37% increase on the previous year.

The Bright Futures campaign, launched in September 2019, reached £0.8 million by the end of the year against its £1.5 million target (by September 2021). Particular highlights of the campaign included the Giving Tuesday initiative in December and an appeal mailing in June, both of which saw over £200,000 in donations and pledges.

Thanks are recorded to 11 Donation Governors who completed their pledges during the year and 452 Old Blues and other friends who have contributed to the Blue Fund, which provides the full seven year cost of a place at Christ’s Hospital.

Christ's Hospital is registered with the Fundraising Regulator and adheres to the Code of Fundraising Practice. As well as providing individuals with opportunities to be excluded from fundraising communications, the School has taken measures in its fundraising activities to protect vulnerable people. We have a published Fundraising Complaints Policy and in the year ended 31 August 2020 received no (2019: four) complaints relating to fundraising activity.

Pensions

Christ’s Hospital participates in the Teachers’ Pension Scheme for its teaching staff. This is a multiemployer defined benefit pension scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to Christ’s Hospital.

Christ's Hospital Pension Scheme, a defined benefit scheme for non-teaching staff, was closed to new members with effect from 31 March 2005. The liability for the Scheme continues to be accounted for in the individual charity financial statements of Christ’s Hospital Foundation as Christ’s Hospital has accepted the liabilities of the Scheme solely in its role as the trustee of Christ’s Hospital Foundation.

Contributions to this scheme are made by both employees and Christ’s Hospital. Valuation of the Scheme at 31 August 2020 in accordance with FRS 102 showed the deficit on the scheme to be £10.4 million (2019: £9.3 million). The value of the Scheme investments decreased by a net £1.0 million during the year and there was an increase in the present value of future pension liabilities of £0.1million. This arose from a reduction in the assumed rate of future salary increases to bring these in line with the assumed rate of CPI inflation, combined with updates to average mortality projections.

Following the detailed actuarial valuation which took place as at March 2017, employer contribution levels were revised as part of the funding plan agreed with the Scheme Trustees. The deficit reduction payments agreed during this process have the objective of eliminating the scheme deficit by 30 April 2029. Further details of the scheme and contribution levels are shown in note 20. Council is aware of the volatile nature of the deficit calculated in accordance with FRS 102 and that the deficit may vary greatly depending on the assumptions made and market conditions at each year end.

-11-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2020 REPORT OF THE TRUSTEES

_____________

For employees not in these defined benefit schemes, a stakeholder pension scheme is available. This is a unit-linked defined contribution scheme under which the employer contributes up to a maximum of 10% of pensionable pay, depending upon the employee’s own level of contributions.

Those employees who are not members of either of the above schemes are now automatically enrolled into a workplace pension scheme. Employer contributions to this scheme are currently at 3% of salary.

Subsidiary and Related Companies

Christ’s Hospital Foundation (the Foundation)

The Foundation reported net losses and capital outflow for the year of £1,566,000 (2019: net income and capital inflow of £10,926,000) and actuarial losses on the defined benefit pension scheme of £1,136,000 (2019: losses of £2,971,000). See investment performance section on page 10 for commentary on key movements.

Bluecoat Sports

Income for the year was £1,572,000 (2019: £1,995,000) and the company reported a net loss for the year of £237,000 (2019 loss: £57,000). The prior year loss was after expenditure totalling £132,000 on the development of a plan for the future expansion of the facilities. The results for the year ended 31 August 2020 were significantly impacted by COVID-19 and the first national lockdown with a loss of membership and income. The loss was partially mitigated with the Coronavirus Job Retention Scheme funding. However, whilst membership numbers started to recover slowly following reopening in July 2020, the second national lockdown in November 2020 amid increasing infection rates is likely to lead to challenges for the company in the next financial year. The Board of Bluecoat Sports is monitoring the situation closely.

Christ’s Hospital Enterprises Limited (CHEL)

Turnover for the year was £117,000 (2019: £1,362,000). The results for the year were significantly impacted by COVID-19 with the cancellation of the summer and Easter letting programmes. The company continues to make payments to Christ’s Hospital under the terms of a lease for the use of the nursery premises and a master agreement for the use of the premises for holiday lets and other events. The charges were £10,800 for the nursery lease and £41,000 and £7,000 for the licence fee and service charge respectively, with the latter two significantly reduced from prior year. Due to the deficits in the year, no payment under Gift Aid was made in 2020 and Christ’s Hospital repaid £130,000 of payment made under Gift Aid in 2019. Council have confirmed that should some level of normal trading not resume that it would not demand payment of intercompany balances until at least 12 months from the date of signing of these financial statements.

Christal House Contracts Limited

The company’s 3.5 acre solar farm was completed and commissioned for use in February 2016. The installation generated some 1,272Mwh of electricity in the year to 31 August 2020 (2019: 1,206Mwh). Sales of electricity generated and feed-in tariff grants earned amounted to £173,000 (2019: £174,000).

-12-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2020 REPORT OF THE TRUSTEES

_____________

POLICIES

Financial policy

Christ’s Hospital’s financial strategy is based on Total Return together with an accompanying Spending Rule. Total Return enables Council and its investment managers to focus efforts on maximising return subject to a given level of risk and liquidity, rather than investing for maximum income possibly at the expense of growth. The application of the Spending Rule ensures that the respective needs of current and future generations of pupils are treated fairly and equitably, while enabling Council to access capital gains on the investments. The Spending Rule restricts annual expenditure reliant on the Endowment to a maximum of 3.75% of the net value of the Endowment (measured on a twelve trailing quarter average basis).

The Spending Rule has two main objectives:

Reserves policy

Council’s policy is to maintain or enhance in real terms the value of the Endowment. Under the Total Return policy, amounts approved by Council for the operational and capital budget requirements each year are transferred from the Unapplied Total Return to unrestricted funds.

Total funds at 31 August 2020 were £440.3m (2019: £441.1m). This total comprised £379.9m of endowed funds (2019: £378.4m), restricted funds of £3.2m (2019: £4.9m) and unrestricted funds (net of Pension Reserve) of £57.2m (2019: £57.8m).

The level of Free Reserves has less significance than in an unendowed charity because the bulk of Christ’s Hospital’s assets are in endowed investments, with a significant level of Unapplied Total Return. Council is comfortable with the level of Free Reserves which stood at £2.0m at 31 August 2020 (2019: £1.3m). The ability of Christ’s Hospital to meet future operational requirements depends critically on the long-term investment returns achieved from the Endowment.

Several designated funds have been established for specific purposes. These include the Fixed Asset Capital Fund of £64.1m which represents the net book value of fixed assets used for operational purposes. The Premises Fund of £1.3m covers planned maintenance and other estate works included in the budget for the year but not yet completed. It is anticipated that these funds will be utilised over the course of the next three years.

Investment policy

The endowed assets of Christ’s Hospital are invested on a Total Return basis across a range of diversified asset classes in order to maintain a balance between spending and preserving the real (inflation adjusted) value of the Endowment. Council recognises the long-term reliance of the School upon the Endowment and has accepted a medium level of risk. Given the portfolio’s strategic asset allocation and investment strategy it is understood that potential short term losses are possible. Council also recognises that there are several other forms of risk beyond short term volatility that need to be managed. These include liquidity, the level of exposure to non-sterling denominated assets, credit risk and the level of overall leverage in the portfolio. Council delegated the implementation and oversight of the Investment Policy to the Investment Committee from 1 September 2017. Day-to-day management of the securities investments is delegated to Partners Capital LLP and property investments to the Property Director.

-13-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2020 REPORT OF THE TRUSTEES

_____________

Christ’s Hospital does not knowingly invest in companies whose activities are considered to be detrimental to children, although it accepts that its investment in managed funds does not necessarily exclude companies in which it would not invest directly.

OUR PRINCIPAL RISKS AND UNCERTAINTIES

The major risks to which Christ’s Hospital and its related entities might be exposed are reviewed by the Audit and Risk Committee with regular reports to Council. The Audit and Risk Committee receives reports relating to risk management, including detailed review of specific risk areas, in order to monitor the process. The executive continues to develop the required policies and to ensure that identified risks are appropriately covered and regularly reviewed. The Compliance Officer ensures that all policies are reviewed and updated as necessary and that specific areas of compliance are adhered to.

Council considers that necessary steps have been taken and continue to be taken to identify and mitigate major risks and to ensure that appropriate systems and procedures are in place. Risk management is embedded in the committee process by which Christ’s Hospital is managed. It is recognised however that systems can provide only reasonable, but not absolute, assurance that major risks are being managed.

Health, safety and welfare of our pupils

Council and appropriate committees receive regular reports and updates on safeguarding, health and safety issues. Safeguarding and welfare issues are considered by a Safeguarding Monitoring Group, chaired by a Deputy Head, which reports to Council and the Education Committee.

Long-term investment returns

Christ’s Hospital is highly unusual among educational establishments in its heavy reliance upon the Endowment for its funding. This reliance, and the limited scope for short term cost-cutting, means that it is not possible to make rapid reductions in the level of funding made from the Endowment without severely impacting the education of pupils. Council recognises that, as a consequence, there is a risk that the Endowment will be depleted during a prolonged fall in investment returns and therefore be unable to recover once markets rise again which would be to the detriment of future generations. Accordingly, Council has placed a cap on the amount of withdrawal that may be made and has adopted a strategy that will maintain withdrawals at a sustainable level. For the longer term, the allowable rate of annual withdrawal from the Endowment has been set at 3.75% of the net value of the Endowment, as set out in the Financial Policy above.

Investments are managed in order to maximise the Total Return, including both income and capital appreciation. Funds are invested across a broad range of asset classes which Council believes provides the diversification necessary to reduce volatility to acceptable levels, as set out in the Investment Policy above.

Significant illness outbreak in the School staff or pupil community

This risk had particular relevance in the current year with the COVID-19 outbreak. Prior to the reopening of the School for the Michaelmas 2020 term, this risk was managed via the Reopening Group (ROG) which was established on 1 June 2020. ROG reported to SLT and was chaired by the COO with members including the Compliance Officer, a Deputy Head and two Assistant Heads. A comprehensive Reopening Plan, which covered the period to 24 August 2020, was

-14-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2020 REPORT OF THE TRUSTEES

_____________

developed by ROG. Post 24 August 2020 the group became the COVID Response Group which meets twice weekly with the risk covered through the COVID-19 Management Risk Assessment which is regularly updated to respond to latest government guidance. This group would manage the risk should it be necessary to close the School site again in the future due to COVID-19. Council receives regular reports and updates at its meetings, the frequency of which were increased during the late spring and summer of 2020 in response to the virus.

Financial sustainability

A financial plan covering the five year period from 1 September 2017 was approved in June 2017. Key elements of the plan include managing income, operational costs and capital expenditure (including the new catering facility) so that, over the period of the plan, the cumulative withdrawal from the Endowment is within the Spending Rule. Updates to that plan are prepared and regularly reported to Council and appropriate committees and reflect both external and internal factors. External factors that are considered include the impact of substantial political change, including government leaders and government policy.

The COVID-19 pandemic continues to evolve and the long term impact on the charity, in common with other businesses, is unknown. Council has reviewed the position carefully with a view to ensuring the ongoing provision of schooling for the pupils, support of bursaries as well as employment of staff. A significant portion of the securities portfolio is in liquid investments whose drawdown is managed carefully to meet day to day operational requirements. These are available, if needed, to supplement the significant cash balances that the charity currently holds. Demand for school places remains strong, with 896 pupils enrolled for the academic year 2020/21. Conservative cash flow modelling with sensitivity analysis indicates that the cash reserves of the charity are adequate to meet the charity’s obligations as they fall due. Accordingly, Council believes Christ’s Hospital’s financial resources are sufficient to ensure the charity will continue as a going concern for the foreseeable future, being at least 12 months from the date of approval of the financial statements and have therefore prepared the financial statements on a going concern basis.

Pension Scheme

Council keeps under review the financial implications of the deficit in the Christ’s Hospital Pension Scheme. The shortfall on the closed scheme requires a substantial, but affordable, annual payment. Management has a clear strategy to eliminate the deficit over the next nine years and will continue to work closely with the Scheme trustees and actuarial advisers to monitor the financial performance of the Scheme.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Council of Christ’s Hospital

Members of the Board of Directors, known from 1 September 2017 as ‘The Council of Christ’s Hospital’ (Council) are listed on page 19. There are fifteen members of Council. The Court of Governors (see below) may nominate up to four members, the Lord Mayor and Aldermen of the City of London may nominate up to four members and up to a further nine members may be coopted by Council.

Council is responsible for the overall management and control of Christ’s Hospital, including the formulation and approval of strategy and for monitoring performance in pursuit of that strategy. To this end, Council has oversight of the delivery of the charitable mission; through management

-15-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2020 REPORT OF THE TRUSTEES

_____________

reporting and its committees it ensures that Christ’s Hospital’s investments are properly managed and also works to build the Endowment through fundraising. It approves expenditure priorities, encourages and monitors the raising of funds by means of trading, controls spending and ensures that the processes for the admission of pupils are appropriate to the charitable ethos of Christ’s Hospital.

The Treasurer is the Chair of Council. The Memorandum and Articles of Association for Christ’s Hospital, the Charity Commission Scheme dated 29 August 2017 for the Foundation and linked charities, and the Council Terms of Reference regulate the conduct of business of Council.

Council takes its governance responsibilities seriously and, as a large charity, aims to have a governance framework that is fit for purpose, compliant and efficient. The Audit and Risk Committee has reviewed governance structures and processes against the Charity Governance Code and is satisfied that Council is operating in line with recommended best practice. The review had identified some areas for improvement which are currently under consideration.

Management and committees

Council carries out its responsibilities through a number of committees and from time to time may appoint temporary working parties to examine and make recommendations on specific matters. The Chair of each committee is appointed by Council. The committees are:

Key management personnel (Senior Leadership Team)

Council delegates day-to-day running of Christ’s Hospital to the Head Teacher as the Chief Executive, assisted by other members of the Senior Leadership Team (as shown on page 20).

Remuneration for key management personnel is set by Council, with the objective of providing appropriate incentives to encourage high levels of performance, recruitment and retention of experienced staff and of rewarding fairly and responsibly individual contributions to Christ’s Hospital’s success. In considering this, Council has access to external benchmarking reports to which Christ’s Hospital contributes.

-16-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2020 REPORT OF THE TRUSTEES

_____________

Induction and training of Council Members

When Council Members are appointed they are required to attend a briefing on the governance structure of Christ’s Hospital and receive an outline of their responsibilities in compliance with the Charity Commission’s publication CC3, “Responsibilities of Charity Trustees”. They are briefed on the organisational structure and the key issues facing Christ’s Hospital. They are issued with a “Trustees’ Pack” which includes a copy of the Scheme, the Memorandum and Articles of Association of Christ’s Hospital, School Prospectus, the Annual Financial Statements and Impact Report, recent minutes and CC3. Arrangements are made for them to attend appropriate training courses and further training and development is offered individually or to Council as a whole as required. This includes annual child protection training.

The Court of Governors

The Court of Governors (the Court) is an historic body composed of the President and Vice President, 36 nominated representatives of the City of London, a maximum of ten Special Vote Governors and an unlimited number of Donation Governors who are elected to the Court in recognition of the support they have given to Christ’s Hospital. Donation Governors each have the right to present for admission a candidate whose needs accord with the ethos of Christ’s Hospital. During the year one Donation Governor renewed their presentation rights and ten new Donation Governors were elected. At the end of the year there were 531 Donation Governors.

The Court also elects the President and nominates, through an election if necessary, up to four members of Council.

Volunteers

Volunteers play an essential role in the operations of Christ’s Hospital. In addition to those who serve on Council and committees, development volunteers and appeal leaders help with fundraising and cultural events during the year. In addition volunteers help with operating and developing the museum. Council takes this opportunity to express its appreciation for this valuable support.

Group Structure and Relationships

Christ’s Hospital is a charitable company limited by guarantee (company number 06232556 and registered charity number 1120090).

The charity provides boarding and day pupil education to children, principally for the benefit of those whose families are in social, financial or other specific need.

Christ’s Hospital is the sole corporate trustee for Christ’s Hospital Foundation (registered charity number 306975) and administers the assets of the charity in accordance with the Charity Commission Scheme dated 29 August 2017

Bluecoat Sports is a charitable company limited by guarantee (Company number 04384765) and is a controlled charity (charity number 1096244) insofar as Christ’s Hospital controls the appointment of the majority of the Trustees. The objects of Bluecoat Sports are to provide facilities for Christ’s Hospital for physical education and training, to promote physical health and fitness to pupils of Christ’s Hospital and the wider community and to provide facilities for physical education and training for personal and teamwork development to local schools, local authority organisations and charities.

-17-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2020 REPORT OF THE TRUSTEES

_____________

Christ’s Hospital owns the whole of the issued share capital, comprising 100 shares of £1 each, of Christ’s Hospital Enterprises Limited . Christ’s Hospital Enterprises Limited (company number 02326883) is engaged in commercial trading in order to produce additional income for the benefit of Christ’s Hospital.

Christal House Contracts Limited (company number 04285259) is wholly owned by Christ’s Hospital Foundation. The principal current activity of the company is to operate a solar farm on land owned by the Foundation.

STATEMENT OF COUNCIL’S RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The Council Members (who are also Trustees of the charitable company for the purposes of charity law and Directors of Christ’s Hospital for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the Council Members to prepare financial statements for each financial year. Under company law the Council Members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and the group for that period. In preparing these financial statements, the Council Members are required to:

The Council Members are responsible for keeping adequate proper accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charitable company’s constitution. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as the Council Members are aware, there is no relevant audit information of which the charitable company’s auditor is unaware and we have taken all the steps that we ought to have taken as directors in order to make ourselves aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information

AUDITOR

Crowe U.K. LLP were reappointed as the charitable company’s auditor during the financial year. Crowe U.K. LLP has expressed its willingness to continue as auditor for the next financial year.

-18-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2020 REPORT OF THE TRUSTEES

_____________

REFERENCE AND ADMINISTRATIVE INFORMATION Structure, Governance and Management

Patron

Her Majesty the Queen

President

HRH The Duke of Gloucester, KG, GCVO

Vice President (ex officio)

The Rt. Hon. The Lord Mayor of the City of London

Council of Christ’s Hospital

The members of the Council of Christ’s Hospital are charity trustees under charity law and the directors of the charitable company. Council Members who served in office during the year or subsequently are detailed below:

Council of Christ’s Hospital
The members of the Council of Christ’s Hospital are charity
directors of the charitable company. Council Members who
subsequently are detailed below:		 trustees under charity law and the
served in office during the year or		 trustees under charity law and the
served in office during the year or
Constituency/
Committee Membership
Christopher Steane, MA, LLB, Treasurer and Chair (c) 2,4,6
Nick Atkinson, MA, FCCA (c)
5
Nick Bensted-Smith, BSc, JP, CC (b)
4
Jan de Walden, HND, MInstM (a)
1,8
Judy Evans,MA, MBBS, FRCS(Ed) Plast (a)
2,8
Marianne Fredericks (b)
3
Diana Garnham BA, MA, LLD, DSc (c) 6,8
Thomas Garnier, BSc (c)
2,3
Prem Goyal (b)
Robert Judson, FRAeS, FCMI, MIoD, RAF(Retd) (c)
3
Miriam McKay, BA (a)
6
James Maclean, BSc(Hons) (c)
1
Robert Muir, LLB (a) 4,5,7,8
Delva Patman, FRICS, ACIArb, FRSA (c)
1,4
John Yeomans, MA, FIET, CEng (c) 1

Constituencies by which Members are nominated

Committee Membership

-19-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2020 REPORT OF THE TRUSTEES

_____________

KEY MANAGEMENT PERSONNEL (SENIOR LEADERSHIP TEAM)

The key management personnel of the group during the year or subsequently were:

Head Teacher Chief Operating Officer and Clerk Deputy Head Deputy Head Bursar Assistant Head, Academic Assistant Head, Admissions Assistant Head, Co-curricular Assistant Head Pastoral Designated Safeguarding Lead

Simon Reid, BA Nick Tesseyman, BA Ruth Brading, BA, MA, PhD Luke Walters, BA, MA Keith Willder, MBE (to 31 March 2020) Marcus Medley, PhD, MSci Andrew Wines, PhD,MA Sean O’Boyle, BSc, ARCS Simon Young, MSc MEd Deborah Stamp, BEd

-20-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2020 REPORT OF THE TRUSTEES

_____________

The address of Christ’s Hospital’s principal office and particulars of its professional advisers are as follows:

Principal Office

The Avenue Christ’s Hospital Horsham West Sussex RH13 0LJ

Treasury Managers

CCLA Investment Management Ltd Senator House 85 Queen Victoria Street London EC4V 4ET

Property Adviser

Gerald Eve LLP 72 Welbeck Street London W1G 0AY

Banker

Barclays Bank plc 2 Carfax Horsham West Sussex RH12 1DN

Investment Adviser

Partners Capital LLP 5 Young Street London W8 5EH

Property Valuer

Cushman and Wakefield LLP 43/45 Portman Square London W1A 3BG

Land Agent

Savills (UK) Limited Exchange House Petworth GU28 0BF

Auditor

Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW

Solicitors

Forsters LLP 31 Hill Street London W1J 5LS

Mills and Reeve LLP Botanic House 100 Hills Road Cambridge CB2 1PH

Pension Scheme Adviser and

Administrator

Broadstone Ltd Canard Court 23-25 St George’s Road Bristol BS1 5UU

This Report of the Trustees, prepared under the Charities Act 2011 and the Companies Act 2006, was approved by the Council of Christ’s Hospital on 2 December 2020, including in its capacity as Company Directors approving the Strategic Report contained therein, and signed on its behalf by:

Christopher Steane

Treasurer and Chair of the Council of Christ’s Hospital 2 December 2020

-21-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

AUDITOR’S REPORT

_________________

Independent Auditor’s Report to the Members of the Council of Christ’s Hospital

Opinion

We have audited the financial statements of Christ’s Hospital for the year ended 31 August 2020 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Cashflow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit

-22-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

AUDITOR’S REPORT

_________________

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

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

In preparing the financial statements, the trustees are responsible for assessing the group’s or the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Nicola May

Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor London

Date

15th December 2020

-23-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

_________________

£ 000s
Endowment Restricted
Funds
Funds
Notes
INCOME AND ENDOWMENTS FROM:
Charitable Activities
School fees receivable
6
-
-
Sports centre income
-
1,025
Ancillary trading income
6
-
72
Investments
Investment income
5
8,421
20
Fundraising
Donations & legacies
3
135
380
Other sources
Non-ancillary trading income
4b
-
8
Other income
7
11
222
TOTAL INCOME AND ENDOWMENTS
8,567
1,727
EXPENDITURE ON:
Raising Funds
Fundraising and development
9a
-
-
Trading activities
4b
-
-
Investment management
8
(2,400)
(11)
Financing
9a
(2,279)
-
Charitable Activities
Costs of providing education
9a
(28)
(154)
Sports centre expenditure
9a
-
(1,647)
TOTAL EXPENDITURE
(4,707)
(1,812)
NET INCOMING/ (OUTGOING) FUNDS FROM OPERATIONS
BEFORE TRANSFERS AND INVESTMENT GAINS
3,860
(85)
Gains on investments
12
9,690
71
Transfers between funds
22
(12,045)
(1,666)
NET INCOME AND CAPITAL INFLOW/ (OUTFLOW)
1,505
(1,680)
Actuarial (losses) on defined
20e
-
-
benefit pension scheme
NET MOVEMENT IN FUNDS
1,505
(1,680)
Total funds brought forward 1 September
378,356
4,862
TOTAL FUNDS CARRIED FORWARD
379,861
3,182		 Unrestricted
Funds
9,566
-
534
29
2,302
220
1,126
13,777
(440)
(405)
(10)
-
(26,116)
-
(26,971)
(13,194)
-
13,711
517
(1,136)
(619)
57,856
57,237		 Total
Total
2020
2019
9,566
10,736
1,025
1,642
606
1,063
8,470
12,374
2,817
3,324
228
1,481
1,359
293
24,071
30,913
(440)
(414)
(405)
(755)
(2,421)
(1,599)
(2,279)
(2,274)
(26,298)
(26,037)
(1,647)
(1,889)
(33,490)
(32,968)
(9,419)
(2,055)
9,761
9,284
-
-
342
7,229
(1,136)
(2,971)
(794)
4,258
441,074
436,816
440,280
441,074

The notes on pages 28 to 58 form part of these financial statements.

-24-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

CONSOLIDATED AND CHARITY BALANCE SHEETS

____________

£ 000s
2020
2019
Notes
FIXED ASSETS
Tangible assets
11
69,698
70,186
Investments
12
415,617
426,794
485,315
496,980
CURRENT ASSETS
Stock
13
220
203
Debtors
- due within one year
14
3,409
1,403
Cash at bank and in hand
16,195
13,049
19,824
14,655
CREDITORS
Due within one year
15
(9,443)
(16,165)
10,381
(1,510)
TOTAL ASSETS LESS CURRENT
495,696
495,470
LIABILITIES
CREDITORS
Due after more than one year
16
(45,038)
(45,118)
Pension scheme liability
20
(10,378)
(9,278)
NET ASSETS - INCLUDING
440,280
441,074
PENSION SCHEME LIABILITY
REPRESENTED BY:
Endowment Funds
22
379,861
378,356
Restricted Funds
22
3,182
4,862
Unrestricted Funds
22
67,615
67,134
Pension Reserve
22
(10,378)
(9,278)
TOTAL FUNDS
440,280
441,074
NET CURRENT ASSETS / (LIABILITIES)
Consolidated		 2020
2019
4,325
3,368
-
-
4,325
3,368
193
171
5,820
7,180
2,219
3,449
8,232
10,800
(5,234)
(7,892)
2,998
2,908
7,323
6,276
(38)
(118)
-
-
7,285
6,158
-
-
570
550
6,715
5,608
-
-
7,285
6,158
Charity

The net movement in funds for the financial year dealt with in the charity only financial statements was £1,127,000 inflow (2019: £3,598,000 inflow).

The notes on pages 28 to 58 form part of these financial statements. Approved by the Council of Christ’s Hospital on 2 December 2020 and signed on its behalf by:

Christopher Steane

Treasurer and Chair of the Council of Christ’s Hospital 2 December 2020

-25-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

CONSOLIDATED CASH FLOW

________________

£ 000s
Notes
NET CASH (OUTFLOW) FROM GROUP
17
OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING
ACTIVITIES
Investment income
5
Purchase of tangible fixed assets
11
Proceeds from the sale of tangible fixed assets
Proceeds from the sale of investment securities
Proceeds from the sale of investment property
Purchase of investment securities
Purchase of investment property
NET CASH INFLOW / (OUTFLOW) FROM INVESTING ACTIVITIES
FINANCING
Financing costs
9a
New endowments
3
NET CASH (OUTFLOW) FROM FINANCING ACTIVITIES
CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR
Cash and cash equivalents at 1 September
CASH AND CASH EQUIVALENTS AT 31 AUGUST		 2020
2019
(21,544)
(5,732)
8,470
12,374
(2,585)
(12,651)
10
10
16,871
542
6,242
26,422
(1,044)
(1,983)
(1,130)
(26,696)
26,834
(1,982)
(2,279)
(2,274)
135
28
(2,144)
(2,246)
3,146
(9,960)
13,049
23,009
16,195
13,049

Cash and cash equivalents solely comprise of cash at bank in the current and prior year.

The notes on pages 28 to 58 form part of these financial statements

-26-

CHRIST’S HOSPITAL

TERMINOLOGY

_______________

Endowment. The Endowment comprises those assets that have been donated to the charity with the express intention that they be held in perpetuity to provide investment returns for Council to use in achieving the Objects. Council has an obligation to be even-handed when spending money from the Endowment so that future generations of beneficiaries are not disadvantaged in comparison with the current generation.

Free Reserves. The Free Reserves of a charity are those assets and investments that can readily be disposed of in order to meet the short-term commitments of the charity.

Objects . When a charity registers with the Charity Commission, it must describe the purposes for which the charity has been set up. These purposes are referred to as the charity’s Objects.

Old Blues. The term used to describe former pupils of Christ’s Hospital.

Preserved Endowment . When authorising the adoption of a policy of Total Return, the Charity Commission specified the minimum level of the Endowment which is to be used to produce the income for the charity and which cannot itself be spent. This is referred to as the Preserved Endowment, representing the value of the original gifts that created the Endowment.

Spending Rule . In order to ensure that it is being even-handed, Council determines the amount that can routinely be withdrawn from the Endowment without depleting the value in real terms. This determination is referred to as the Spending Rule.

Total Return. Historically, the only investment returns that could be spent by Council were the income, i.e. dividends, interest, rents etc. By adopting a policy of Total Return, Council is able to access capital gains as well as the income, selecting those investments that offer the best return, irrespective of whether this arises from income or capital growth.

Unapplied Total Return. This is the cumulative value of the Total Returns (income and capital) earned by the Endowment since adopting a Total Return policy, less the amounts that have been applied for the purposes of the charity. It is available to be spent, subject to the duty of Council to be even-handed (see Endowment above).

-27-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

1. NATURE OF ENTITY

Christ’s Hospital is a charitable company limited by guarantee (company number 06232556) and registered in England. It is a Public Benefit Entity registered with the Charity Commission under charity number 1120090. Christ’s Hospital operates from its registered office at the Principal Office address listed on page 21.

By a Charity Commission Scheme dated 29 August 2017 and effective from 1 September 2017, Christ’s Hospital became the Trustee of Christ’s Hospital Foundation (charity number 306975) and a number of linked charities, including the Christ’s Hospital Common Investment Fund (charity number 1111507).

The Financial Statements consolidate, on a line by line basis, all the endowment funds and accumulated restricted and unrestricted funds of Christ’s Hospital with its related entities; Christ’s Hospital Foundation (charity number 306975), Bluecoat Sports (company number 04384765 and charity number 1096244), Christ’s Hospital Enterprises Limited (company number 02326883) and Christal House Contracts Limited (company number 04285259). With the exception of Christ’s Hospital, whose registered office is at the principal office address listed on page 18 and Christ’s Hospital Foundation which is registered at the same address, all other entities have their registered office at The Counting House, Christ’s Hospital, Horsham, West Sussex RH13 0YP.

The charity has taken advantage of the exemption available to a qualifying entity in FRS 102 from the requirement to present a charity only Cash Flow Statement and Financial Instruments note with the consolidated financial statements.

2. ACCOUNTING POLICIES

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - effective 1 January 2019.

The functional currency of the charity is considered to be pounds sterling because that is the currency of the primary economic environment in which it and its related entities operate.

At the time of approval of the Annual Report, the COVID-19 pandemic continues to evolve and the long term impact on the charity, in common with other businesses, is unknown. Council has reviewed the position carefully with a view to ensuring the ongoing provision of schooling for the pupils, support of bursaries as well as employment of staff. A significant portion of the securities portfolio is in liquid investments whose drawdown is managed carefully to meet day to day operational requirements. These are available, if needed, to supplement the significant cash balances that the charity currently holds. Demand for school places remains strong, with 896 pupils enrolled for the academic year 2020/21. Conservative cash flow modelling with sensitivity analysis indicates that the cash reserves of the charity are adequate to meet the charity’s obligations as they fall due. Accordingly, Council believes Christ’s Hospital’s financial resources are sufficient to ensure the charity will continue as a going concern for the foreseeable future, being at least 12 months from the date of approval of the financial statements and have therefore prepared the financial statements on a going concern basis.

These financial statements have been drawn up on the historical cost accounting basis.

-28-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

Critical accounting judgements and key sources of estimation uncertainty

In the application of the accounting policies, Council is required to make judgements, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. This includes the basis for valuation of the property investments and securities investments for which there is no readily quoted market and the liabilities in relation to the Christ’s Hospital Pension Scheme. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant, including market comparators where available. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects current and future periods. This includes private market investments where the year-end valuation is based on the latest quarterly valuation, usually at 30 June. It is Council’s judgment that there has been no impairment in the value of these investments with market indices appreciating from the last quarterly valuation to 31 August 2020.

Due to COVID-19, the investment property portfolio valuation at 31 August 2020 included a material uncertainty clause in respect of the high street retail property. That uncertainty was lifted post year end on 9 September 2020. Therefore, in the view of Council, no assumptions concerning the future estimation or uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements.

Income

Income from investments is accounted for when receivable. Income from legacies and donations is accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the charity is considered probable.

Parental contributions less any bursaries, scholarships and allowances, but including contributions received from restricted funds, are accounted for in the period in which the service is provided.

Investment income and gains/losses on the securities portfolio are credited to the individual fund in proportion to the holding in the linked charity, the Common Investment Fund (charity number 1111507).

Legacies and donations receivable for the general purposes of Christ’s Hospital are credited to unrestricted funds. Donations for purposes restricted by the wishes of the donor are taken to restricted funds where these wishes are legally binding on Christ’s Hospital, except that any amounts required to be retained as capital, in accordance with the donor’s wishes, are accounted for instead as endowment funds – permanent or expendable according to the nature of the restriction. Gifts in kind are valued at estimated open market value at the date of gift, in the case of assets for retention or consumption.

Christ’s Hospital benefits from its occupation of the site at Horsham, which is made available by Christ’s Hospital Foundation for minimum consideration. The value of this gift in kind is included in Christ’s Hospital’s individual charity financial statements on the basis of a directors’ valuation.

-29-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

All other income is accounted for when receivable.

Expenditure

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities. Expenditure is apportioned to cost categories based on the estimated amount attributable to that category in the financial year. Value added tax (VAT) that cannot be recovered is included with the item of expense to which it relates. The small recoverable element of VAT is credited to support costs. Overhead and other costs not directly attributable to particular activities are apportioned on the basis of management estimates of the amount attributable to that activity in the academic year by reference to staff time.

Governance costs comprise the costs of running the Charities, including strategic planning for future development, external audit, and legal advice for Council and all the costs of complying with constitutional and statutory requirements, such as the costs of committee meetings, preparing statutory accounts, and satisfying public accountability.

Intra-group transactions are excluded from income and expenditure as appropriate.

Where appropriate, investment management costs are allocated to the funds in proportion to their holding in the Common Investment Fund as set out in Note 12.

Operating Leases

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Fixed Assets

Expenditure on individual items costing more than £5,000 is capitalised and depreciation is charged in equal annual instalments over their economic lives as follows:

Operational properties 2% to 10% on cost
Office and IT equipment 25% on cost
Plant and equipment 20% on cost
Motor vehicles 25% on cost

Depreciation is not charged on work in progress.

Where a project improves an existing asset, the cost of the improvement is depreciated over the residual life of the parent asset.

The Balance Sheet values of historic assets, including paintings, silver and other artefacts are based upon valuation at 31 August 2000 together with subsequent additions at cost. No depreciation has been provided on these assets as Council does not believe that there has been any impairment in value from the valuation shown in the Balance Sheet.

Investments

Investment properties are valued at their market values as assessed by an independent valuer at the Balance Sheet date.

-30-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

Investments for which there is a quoted market are valued at the mid-market-price ruling at the Balance Sheet date. Investments such as hedge funds and private equity funds, which have no readily identifiable market value, are included at the most recent valuations from their respective managers. Gains and losses arising on the revaluation of investments are credited or charged to the Statement of Financial Activities and are allocated to the appropriate fund in proportion to their share of the underlying assets.

Where transaction-based, investment management costs are accounted for as incidental costs of the acquisition or disposal. General investment management costs, including performance fees, are charged to the relevant funds.

Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost with the exception of investments which are valued as described above. Financial assets held at amortised cost comprise cash at bank and in hand, together with short term deposits, trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank current and deposit accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions. Assets and liabilities held in foreign currency are translated to pounds sterling at the balance sheet date at an appropriate year end exchange rate.

Stocks

Stocks are valued at the lower of cost and net realisable value.

Taxation

Christ’s Hospital, Christ’s Hospital Foundation and Bluecoat Sports are able to take advantage of tax exemptions available to charities for Income and Corporation Tax but are registered for VAT. The majority of their activities are classified as exempt or non-business activities for VAT purposes and consequently it is not possible to reclaim the majority of the VAT incurred on purchases. Christ’s Hospital Enterprises Limited and Christal House Contracts Limited are registered for VAT and are subject to Corporation Tax.

Grants Payable

Grants are awarded on an annual basis and the costs accrued upon the award being notified to the recipient.

Total Return Accounting

The Charity Commission permitted Christ’s Hospital to adopt the use of Total Return in relation to its Permanent Endowments on 26 April 2005. The power permits Council to invest Permanent Endowments to maximise Total Return and to make available an appropriate portion of the Total Return to fund expenditure each year.

Council has used the value of the permanent General Endowment at 31 July 1993 to represent the Preserved Value of the original gifts. For all other specified endowment funds, values at 31 July 1996 or later where appropriate, have been used to represent the Preserved Value.

-31-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

Funds

Endowment Funds comprise those assets that have been donated to the charity with the express intention that they be held in perpetuity to provide investment returns for Council to use in achieving the Objects. The Preserved Endowment represents the value of the original gifts and is the minimum level of the Endowment which is to be used to produce the income for the charity and which cannot itself be spent.

General Funds are funds available for use at the discretion of Council in furtherance of the general objectives of the Foundation and which have not been designated for any other purpose.

Designated Funds comprise Unrestricted Funds that have been set aside by Council for particular purposes. There is no legal restriction on the way in which the funds may be applied.

Restricted Funds are accounted for in accordance with the particular terms of the trust arising from the expressed or implied wishes of donors insofar as these are intended to be binding.

Pension Schemes

Christ’s Hospital contributes to the Teachers’ Pension Scheme (the TPS) at rates set by the TPS actuary and advised by the TPS administrator. It is a multi-employer pension scheme and it is not possible to identify the assets and liabilities of the TPS which are attributable to the School. In accordance with FRS 102, the School accounts for this scheme as if it were a defined contribution scheme.

The Charity has fully adopted the provisions of FRS 102 for the Christ’s Hospital Pension Scheme. Further information on this scheme is set out in Note 20.

3. DONATIONS AND LEGACIES

£ 000s
Donation Governorships & Blue Fund
Legacies
Donations for capital projects
Other donations
Grants from external foundations		 Endowment
Funds
-
40

-
95
-
135		 Restricted
Funds
-

9
78
293
-

380		 Unrestricted
Funds
719
799
-
515
269
2,302		 Total
Total
2020
2019
719
693
848
1,224
78
-
903
1,143
269
264
2,817
3,324

-32-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

4. INCOME AND EXPENDITURE

(a) Charity

The charity had total income of £29,202,000 (2019: £38,959,000) and total expenditure of £28,075,000 (2019: £42,557,000) in the financial year.

(b) Consolidated trading activities

£ 000s
Income from other trading activities
Christ's Hospital
Bluecoat Sports
CHEL
Christal House Contracts Limited
Trading Expenditure
CHEL
Christal House Contracts Limited		 Restricted
Funds
-
8
-
-
8
-
-
-		 Unrestricted
Funds
7
-
117
96
220
303
102
405		 Total
Total
2020
2019
7
13
8
12
117
1,361
96
95
228
1,481
303
634
102
121
405
755

(c) Subsidiary Results and Balance Sheets

The results and balance sheet of the subsidiaries of Christ’s Hospital as shown in their financial statements are presented overleaf. The numbers include intercompany trading. Further information on the subsidiaries is provided on pages 17 and 18 of the Report of the Trustees.

-33-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

2020
£ 000s
Results
Income & gains
Expenditure
Net (loss)
Brought forward at 1 September
Carried forward at 31 August
Balance sheet
Total assets
Total liabilities
Funds / (deficit)
2019
£ 000s
Results
Income & gains
Expenditure
Net income / (loss)
Brought forward at 1 September
Carried forward at 31 August
Balance sheet
Total assets
Total liabilities
Funds/ (deficit)
5. INVESTMENT INCOME
£ 000s
Property
Securities
Interest		 Endowment
Funds
7,369
1,039
13
8,421		 The
Foundation
20,443
(22,009)
(1,566)
434,440
432,874
497,419
(64,545)
432,874
The
Foundation
36,605
(28,650)
7,955
426,485
434,440

502,657
(68,217)
434,440

Restricted
Funds
-
5
15
20		 Bluecoat
Sports
1,572
(1,809)
(237)
620
383
517
(134)
383
Bluecoat
Sports
1,995
(2,052)
(57)
677
620
896
(276)
620
Unrestricted
Funds
-
-
29
29		 CHEL
Christal
House
Contracts
Limited
260
173
(355)
(196)
(95)
(23)
-
(143)
(95)
(166)
58
1,454
(153)
(1,620)
(95)
(166)
CHEL
Christal
House
Contracts
Limited
1,362
174
(1,362)
(206)
-
(32)
-
(111)
-
(143)
1,076
1,482

(1,076)
(1,625)
-
(143)
Total
Total
2020
2019
7,369
10,249
1,044
1,983
57
142
8,470
12,374

-34-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

6. INCOME FROM CHARITABLE ACTIVITIES

Fees receivable
£ 000s
Gross parental contributions
Less: Total bursaries,grants and allowances
Add back: Bursaries and other awards paid for
by restricted funds		 Unrestricted
Total
Total
Funds
2020
2019
26,811
26,811
30,508
(17,514)
(17,514)
(20,036)
9,297
9,297
10,472

269
269

264

9,566
9,566
10,736
Ancillary trading
£ 000s
Shop income
Music fees
Exam fees
House funds
Sundry parental charges
Event and sponsorship income
Admission fees
Other		 Restricted
Funds
-
-
-

54
2
-
-

16

72		 Unrestricted
Funds
-
240
13
-
208
16
48
9
534
 Total
Total
2020
2019
-
6
240
277
13
19
54
87
210
495
16
60
48
56
25
63
606
1,063

7. INCOME FROM OTHER SOURCES

£ 000s
Endowment
Funds
Rental income - staff housing
-
Wests' Pensioners charity service charge
-
Profit on disposal of fixed assets
-
Grant from Coronavirus Job Retention
Scheme
-
Other miscellaneous income
11
11		 Restricted
Funds
-
-
-
222
-
222		 Unrestricted
Funds
216
25
10
866
9
1,126		 Total
Total
2020
2019
216

207
25
25
10
1
1,088
-
20
60
1,359
293

-35-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

8. INVESTMENT MANAGEMENT COSTS

£ 000s
Property costs
Securities and cash management fees
(a) Total expenditure
£ 000s
Costs of raising funds
Costs of generating voluntary income
Trading expenditure
Investment management costs
Financing costs
Total cost of raising funds
Charitable activities
Education and grant making
Educational costs
Welfare costs
Premises costs
Support costs
Grants, awards and prizes (note 9 (b))
Total costs of providing education
Sports centre expenditure
Total charitable expenditure
Total expenditure
9. ANALYSIS OF EXPENDITURE		 Endowment
Funds
1,361
1,039
2,400
Staff
Costs
342
138
-
-
480
8,254
2,658
2,286
2,165

-
15,363
938
16,301
16,781		 Restricted
Funds
-
11
11
Other
Costs
98
192
2,421
2,279
4,990
683
971
4,141
1,853
372
8,020
626
8,646
13,636		 Unrestricted
Funds
-
10
10
Depreciation
-
75
-
-
75
90
235
2,384
206
-
2,915
83
2,998
3,073		 Total
Total
2020
2019
1,361
1,028
1,060
571
2,421
1,599
Total
Total
2020
2019
440
414
405
755
2,421
1,599
2,279
2,274
5,545
5,042
9,027
9,016
3,864
4,105
8,811
8,056
4,224
4,526
372
334
26,298
26,037
1,647
1,889
27,945
27,926
33,490
32,968

Support costs include governance costs of £182,000 (2019: £232,000).

-36-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

(b) Grants, awards and prizes
£ 000s
From endowed funds:
Bursaries and other grants and awards
From restricted funds:
Bursaries and other grants and awards		 Total
Total
2020
2019
28

34
344
300

372
334

These grants were made to current and former pupils at Christ’s Hospital.

10. STAFF COSTS
Teaching
Teaching support
Welfare
Premises
Other ancillary
Fundraising
Bluecoat Sports
CHEL
Contract catering costs
Contract security & cleaning costs
Comprising
Salaries and wages
Social security costs
Pension costs
Apprenticeship Levy
Contract costs
Aggregate employee benefits of Key
Management personnel		 Number
Cost
(FTE)
£ 000s
112
7,033
39
1,221
60
1,958
75
1,947
39
2,165
7
342
40
938
4
138
376
15,742
700
339
16,781
12,464
1,161
2,075
41
1,040
16,781
1,038
2020		 Number
Cost
(FTE)
£ 000s
113
6,684
39
1,126
62
1,849
75
1,885
39
2,253
7
337
40
1,028
4
153
379
15,315
955
325
16,595
12,410
1,163
1,701
41
1,280
16,595
1,100
2019

The average head count (being number of staff employed not adjusted for FTE) was 566 (2019: 554). The full time equivalent number of employees by category is disclosed in the table above.

-37-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

Salaries and wages include £101,000 (2019: £41,000) in relation to redundancy and compensation for loss of office settlements and payments in lieu of notice.

The number of Key Management personnel averaged 9 (2019: 10) as set out on page 20. The number of employees whose total emoluments for the period exceeded £60,000 was 22 (2019: 21) in the following bands:

2020 2019
£60,001 to £70,000 13 11
£70,001 to £80,000 2 1
£80,001 to £90,000 3
 4
£90,001 to £100,000 1
 1
£100,001 to £110,000 - -
£110,001 to £120,000 - -
£120,001 to £130,000 2 3
£160,001 to £170,000 1
 1

Information on volunteers is shown on page 17.

11. TANGIBLE FIXED ASSETS
£ 000s Land & Work in Office Plant & Motor Historic Total
Buildings Progress Equipment Equipment Vehicles Assets
(a) Group
Cost or valuation
At 1 September 2019 80,707
 844 2,331 8,732 130 5,339 98,083
Additions at cost - 1,985 388 202 10
 -
 2,585
Transfers 639 (1,204) - 565 -

 -
 -
Disposals at cost -
 -
 (301) (96) -

 -
 (397)
At 31 August 2020 81,346 1,625 2,418 9,403 140
 5,339
 100,271
Depreciation and amortisation
At 1 September 2019 21,257
 - 2,054 4,499 87 - 27,897
Charge for the period 1,842 - 153 1,057 21 - 3,073
Accumulated on disposals -
 -
 (301) (96) - - (397)
At 31 August 2020 23,099 - 1,906 5,460 108
 - 30,573
Net book value at 31 August 2020 58,247 1,625 512 3,943 32
 5,339 69,698
Net book value at 31 August
2019 59,450
 844 277 4,233 43 5,339 70,186

-38-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

____
Land &
Buildings
(b) Charity
Cost or valuation
At 1 September 2019
-

Additions at cost
-

Transfer to Foundation
-
Transfers
-
Disposals at cost
-
At 31 August 2020
-
Depreciation and amortisation
At 1 September 2019
-

Charge for the period
-
Accumulated on disposals
-
At 31 August 2020
-
Net book value at 31 August 2020
-
_Net book value at 31 August
2019
-		 ___
Land &
Buildings
-

-

-
-
-		 ___
Work in
Progress
661

1,984

(639)
(382)
-		 ____
Office
Equipment
2,154

388

-

-

(301)
 __
Plant &
Equipment
4,111
73
-

382

(96)		 ________
Motor
Total
Vehicles
130
7,056

10
2,455

-
(639)
-

-
-

(397)
140

8,475

87

3,688

21
859
-

(397)
108
4,150
32
4,325
43

3,368
- 1,624 2,241 4,470
-
-

-		 1,881
152

(301)
 1,720
686
(96)
- - 1,732
 2,310
- 1,624 509 2,160
- 661 273 2,391

The transfer to the Foundation from work in progress of £639,000 relates to the new classrooms in the catering facility building. The other transfers from work in progress of £382,000 relate to the new outside fitness facility at Bluecoat Sports.

12. FIXED ASSET INVESTMENTS
£ 000s
Investments at market value
Market value at 1 September
Net (disinvestment)/ investment from portfolio
Fees and charges collected
Dividends and interest reinvested
Realised and unrealised gains and losses
Market value at 31 August		 Property
166,361
(5,111)
-
-
(3,794)
157,456		 Securities
260,433
(15,842)
(1,029)
1,044
13,555
258,161		 Total
Total
2020
2019
426,794
415,795
(20,953)
260
(1,029)
(528)
1,044
1,983
9,761
9,284
415,617
426,794

-39-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

Securities comprise:
Cash & foreign exchange hedges
Debt instruments
Equities
Hedge funds
Private equity
Property comprises:
Retail
Offices
Industrial
Agricultural and other land
Residential rental properties		 Total
Total
2020
2019
11,589
14,723
41,100
53,975
133,042
127,526
27,786
21,848
44,644
42,361
258,161
260,433
4,500
23,250
67,550
61,140
50,375
49,925
24,958
23,673
10,073
8,373
157,456
166,361

The Charity Commission permitted Christ’s Hospital to adopt the use of Total Return in relation to its endowment on 26 April 2005.

There is a quoted market (including listed markets) for approximately 34% (2019: 29%) of the investments within the funds held in securities. A further 39% (2019: 48%) of investments are held in funds which themselves invest in publicly quoted securities. The remainder, representing private markets funds, are valued in accordance with the information provided by the fund managers which are based on quarterly and audited annual reports.

Approximately 65% (2019: 63%) of the portfolio is considered liquid, meaning that the funds are capable of being traded on at least a quarterly basis.

Forward currency contracts are used to mitigate the risk associated with investment assets denominated in foreign currencies. At 31 August 2020, the gross notional value of open forward contracts amounted to £130.9 million (2019: £148.8 million). These contracts have been revalued at the applicable year-end rates and the resulting unrealised gains or losses have been included within the overall value of the investments above.

At 31 August 2020 there were outstanding commitments to fund a further £47.3 million (2019: £48.2 million) in capital calls from private equity funds. These calls will be funded from the sale of liquid assets within the investment portfolio.

Common Investment Fund

Security assets totalling £258,161,000 are held within the Christ’s Hospital Common Investment Fund, which was established on 2 August 2005 and is a pooling scheme fund within the meaning of the Financial Services & Markets Act 2000 (Exemption) Order 2001 (SI 1201/2001). The scheme became active on 31 March 2006. At 31 August 2020, units within the Christ’s Hospital Common Investment Fund were held as follows:

-40-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

General Fund
The Wests' Gift for Children Fund
The Daniel Lett Fund
The Hornby Steer Fund
The Sivewright Memorial Fund
The RAF Foundationers' Fund
Miss West Scholar Fund
Additional Costs Fund
Christ's Hospital Association
House Fund
The Reginald Wood Fund
The Army Foundation
Other Funds		 £000s
%
223,955
86.75
22,419
8.68
2,699
1.05
2,659
1.02

1,068
0.41
1,597
0.62

852

0.33
536
0.21
467
0.18
404
0.16
240
0.09
150
0.06
1,115
0.44
258,161
Securities

Other funds represent the combined assets of 18 individual trusts none of which has assets in excess of £200,000.

Property Valuations

Formal valuations of the commercial investment properties were prepared by Mr D Mills, MRICS of Cushman & Wakefield LLP and rural and residential properties by Mr P Kirk, MRICS of Savills (UK) Limited as at 31 August 2020.

Future income from Property Investments

The future minimum lease income under non-cancellable operating leases receivable in less than one year is £5.6m (2019: £7.0m). Amounts receivable between 1 and 5 years are £10.8m (2019: £18.0m) and after 5 years are £42.2m (2019: £44.1m).

13. STOCK
£ 000s
Stock for sale
Consumables		 Group
Charity
Group
Charity
2020
2020
2019
2019
17
-
22
-
203
193
181
171
220
193
203
171

-41-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

______
14. DEBTORS DUE WITHIN ONE YEAR
£ 000s
Trade debtors
Rents receivable
Parental contributions
CHEL
The Foundation
Accrued legacies
Other debtors and prepayments
15. CREDITORS DUE WITHIN ONE YEAR
£ 000s
Trade creditors
Bank loan (see below)
Deferred income
Parental contributions paid in advance
Enrolment deposits
Bluecoat Sports
Christal House Contracts Limited
Taxation and National Insurance
Value Added Tax
Rent in advance
Other creditors and accruals		 ______
Group
2020
165
2,043
206
-
-

250
745
3,409

Group
2020
859
-
108
535
1,577
-
-
293
246
1,913
3,912
9,443		 ______
Charity
2020
5
-
206
86
5,040
-
483
5,820

Charity
2020
678
-
86
535
1,577
108
5
281
8
-
1,956
5,234		 ___
_Group
Charity
2019
2019
380
11
116

-
188
188

-
1,038

-
5,452
50

-
669
491

1,403
7,180

Group
Charity
2019
2019
2,003
1,663
6,321
-
130
83
1,684
1,684
1,248
1,248
-
535
-
7
291
280
344
10
667
-
3,477
2,382
16,165
7,892

The bank loan in 2019 of £6,321,000 represented a short term bridging facility utilised when required for transactions in the investment portfolio. It was secured against the securities portfolio.

-42-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

______
16. CREDITORS DUE AFTER MORE THAN ONE YEAR
£ 000s
Bank loan (see below)
Loan note issue (see below)
Parental contributions paid in advance
Repayable as follows:
Due within 1 - 2 years
Parental contributions paid in advance
Due within 2 - 5 years
Parental contributions paid in advance
Due after 5 years
Bank loan (see below)
Loan note issue (see below)		 ______
Group
2020
25,000
20,000
38
45,038
38

-

25,000
20,000

45,038		 ______
Charity
2020
-
-

38
38
38
-
-
-
38		 ___
_Group
Charity
2019
2019
25,000
-

20,000
-
118
118

45,118

118
105
105

13
13
25,000
-
20,000
-
45,118
118

In October 2003, the Foundation entered into a £25 million bank loan facility for a term of 25 years for the purpose of acquiring new commercial property investments. Repayment is by a single payment at termination in October 2028 with interest payable quarterly in arrears at a fixed rate of 5.55%. This loan is secured against investment properties with a minimum valuation of £35.0 million and as at 31 August 2020 the properties against which the loan is secured have been valued at £42.9 million.

In April 2014, the Foundation completed on a £20 million private placement of loan notes as part of its investment strategy. The notes, which are due for repayment in 2034, are secured on assets held within the securities portfolio. Interest on the loan notes is at a fixed rate of 4.45%, with interest payable semi-annually.

SUMMARY OF MOVEMENTS IN PARENTAL CONTRIBUTIONS IN ADVANCE

£000s Group and Charity
2020
Balance at 1 September 2019 1,802
New contracts 85
Other amounts in advance 373
Amounts used to pay fees (1,684)
Amounts accrued to contract as debt financing cost 6
Amounts transferred to donations (9)
Balance at 31 August 2020 573

-43-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

17. RECONCILIATION OF GROUP NET (OUTGOING) FUNDS FROM OPERATIONS TO NET CASH (OUTFLOW) FROM GROUP OPERATING ACTIVITIES

£ 000s

Net (outgoing) funds from operations
Non-operating cashflows eliminated:
Investment income
Financing costs
Endowment legacies and donations
Profit on disposal of fixed assets
Pension scheme net finance costs
Pension scheme current service costs
Pension scheme contributions
Depreciation and amortisation
(Decrease)/ increase in creditors
(Increase)/ decrease in debtors
(Increase) in stocks
Net cash (outflow) from group operating activities		 2020
2019
(9,419)
(2,055)
(8,470)
(12,374)
2,279
2,274
(135)
(28)
(10)
(1)
163
160
204
195
(404)
(443)
3,073
2,586
(6,802)
730
(2,006)
3,272
(17)
(48)
(21,544)
(5,732)

18. CAPITAL AND LEASE COMMITMENTS

Capital Commitments

At 31 August 2020 there were capital commitments of £0.8 million (2019: £0.6million).

See Note 12 for information on private equity fund commitments.

Lease Commitments

The charity has entered into non-cancellable leases in respect of certain motor vehicles and office equipment, the payments for which extend over a period of up to 5 years.

Total future minimum lease payments under non-cancellable operating leases:

£ 000s
-within one year
- between 1 and 5 years		 Group
Charity
Group
Charity
2020
2020
2019
2019
104
104
110
110
214
214
255
255
318
318
365
365

-44-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

19. AUDITOR'S REMUNERATION
£ 000s
Audit fees
Consultancy and accountancy services		 2020
2019
62
59
3
3
65
62

20. PENSION SCHEMES

Teachers’ Pension Scheme

Christ’s Hospital participates in the Teachers’ Pension Scheme (the TPS) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £1,451,000 (2019: £1,101,000) and at the year-end £118,000 (2019: £103,000) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by the Teachers’ Pension Scheme Regulations 2010 (as amended) and the Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. A consultation was launched by the government on 16 July 2020, and closed to responses on 11 October 2020.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to 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 McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020 and the government is preparing to complete the cost control element of the 2016 valuations, which is expected to be completed in 2021.

-45-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.

Until the consultation and the cost cap mechanism review are completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

Christ's Hospital Pension Scheme

Prior to 2005, non-teaching staff were entitled to join the Christ's Hospital Pension Scheme (the Scheme), a defined benefit scheme, to which contributions are made by both employees and the employers. The Scheme was closed to new members with effect from 31 March 2005. Member contributions are 6.5% for those members who have an accrual rate of 1/80[th] of final salary for each year of service, and 4% for those who have an accrual rate of 1/100[th] . Contributions payable by employers are 19.7% of salary, plus an annual deficit-reduction contribution, currently of £186,500. The deficit-reduction payments are in accordance with an agreed schedule, allowing the deficit to be eliminated by 30 April 2029. The basis of contribution to the Scheme is specified in a schedule of contributions agreed with the Scheme trustees and certified by the actuary on 18 April 2018. The cost of providing such pensions is charged to the accounts in accordance with the provisions of FRS 102.

The liability for the Scheme continues to be accounted for in the individual charity financial statements of Christ’s Hospital Foundation as Christ’s Hospital has accepted the liabilities of the Scheme solely in its role as the trustee of Christ’s Hospital Foundation.

The last full actuarial valuation of the Scheme was carried out with an effective date of 31 March 2020 and is currently being finalised. For the purpose of FRS 102, the Scheme valuation has been updated as at 31 August 2020 by a qualified actuary. The valuation method adopted for the Scheme was the Projected Unit Method and it is assumed, in relation to security of both accrued and protected rights, the Scheme will continue.

Employer contributions for the year ended 31 August 2020 were £404,000 (2019: £443,000).

The Scheme's assets and liabilities, analysis of pension cost and details of the valuation were as follows:

a) Amounts recognised in the balance sheets
£ 000s
Present value of funded obligations
Fair value of plan assets
Net liability		 2020
2019
(24,257)
(24,235)
13,879
14,957
(10,378)
(9,278)

-46-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

(b) Changes in the present value of the defined benefit obligation
£ 000s
Opening defined benefit obligation
Employers' service cost
Interest cost
Actuarial losses
Benefits paid from scheme assets
Scheme participants' contributions
Defined benefit obligation at end of period
(c) Changes in the fair value of the Scheme assets are as follows:
£ 000s
Opening fair value of scheme assets
Expected return
Actuarial (losses)
Employer contributions
Scheme participants' contributions
Benefits paid
Fair value of Scheme assets at end of period		 2020
2019
24,235
21,561
204

195

430
552
130
2,832
(782)
(949)
40

44
24,257
24,235

2020
2019
14,957

15,166
266
392
(1,006)
(139)
404
443
40

44

(782)
(949)
13,879
14,957

On the currently agreed basis, the projected amount charged to the Statement of Financial Activities is as follows:

Projected current service cost
Projected interest income on assets
Projected interest cost on Defined Benefit Obligation
(d) Amounts included within the Statement of Financial Activities
£ 000s
Current service cost
Interest income on assets
Interest on pension liabilities
Total amount charged within net (outgoing) funds from operations		 31 August
2021
193
(219)
382
356
2020
2019
(204)
(195)
266
392
(430)
(552)
(368)
(355)

-47-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

(e) Reconciliation of movement in present value of plan liabilities and assets

£ 000s
Net liability at the beginning of the year
Employer current service cost
Employer's contributions
Interest income on assets
Interest cost
Actuarial (losses)
Net liability at end of the year
(f) Major categories of Scheme assets as a percentage of total Scheme assets
Equities
Multi-Asset Funds
Property
Cash		 2020
2019
(9,278)
(6,395)
(204)
(195)
404
443
266
392
(430)
(552)
(1,136)
(2,971)
(10,378)
(9,278)
2020
2019
36%
40%
43%
40%
20%
19%
1%
1%
100%
100%

The overall expected return on the Scheme assets in the year is determined as a weighted average of the expected returns on each asset class. The returns on equities are determined by the Christ’s Hospital Pension Fund trustees having reference to the expected return from an investment in the FTSE-Actuaries All Share Index. The gilt return is derived from the prevailing redemption yields on long-dated fixed interest gilts at the valuation date.

(g) Principal assumptions at the balance sheet date
(g) Principal assumptions at the balance sheet date 2020 2019
Discount rate 1.6% 1.8%
Rate of increase in salaries 2.6% 2.4%
Rate of increase of pensions in payment - Pre April 1997 2.2% 2.1%
Rate of increase of pensions in payment - Post April 1997 3.1% 3.3%
Rate of increase of pensions in deferment 2.6% 2.4%
Price inflation 3.1% 3.4%

The 2020 valuation has assumed average mortality in accordance with S3PA_M tables for 2019, with the CMI (2019) model together with long-term improvements of 1.5% p.a. for future improvements in longevity.

-48-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

(h) Projected (shortfall) at 31 August 2020 2020
Expected Employer's contributions 325
(i) Sensitivity analysis Change in defined benefit obligation
2020
Increase / decrease discount rate by 0.5% p.a. -8% / +10%
Increase / decrease assumed rate of future inflation 0.5% p.a. +6% / -7%
Increase / decrease long-term salary increases by 0.5% p.a. +1% / -1%

Defined Contribution Scheme

A stakeholder pension scheme is available for staff who are not in a defined benefit scheme. This is a unit linked defined contribution scheme from Standard Life, under which the employer contributes 5% more than the employee contributions up to a maximum of 10% of pensionable pay. From 1 August 2014, new and existing staff who had not previously opted to join a pension scheme, and are eligible to do so, have been auto enrolled into a workplace pension scheme, currently with Legal and General. Employer contributions are currently set at the statutory minimum of 3%. Employer contributions totalling £235,000 (2019: £232,000) were paid in respect of these pension schemes for the year. At the year-end £19,000 (2019: £19,000) was accrued in respect of contributions to these schemes.

21. RELATED PARTY TRANSACTIONS

No Council Member has received any remuneration for work done in performance of their duties. Travel and subsistence expenses totalling £795 (2019: £283) have been refunded to three (2019: two) Council Members in connection with their duties. Donations totalling £1,850 (2019: £1,923) have been received from three (2019: five) Council Members. £11,246 (2019: nil) was paid on an arms-length basis to Hill House Farm Partnerships, a business owned by James Maclean, a Council Member, for drainage and landscaping works.

Trustees’ liability insurance is included within the group professional indemnity and public liability policy and its cost cannot be separately identified.

During the year, funding totalling £14.8 million (2019: £22.5 million) was granted to Christ’s Hospital from the Foundation in support of current pupils, this included £1.5m from the Sivewright fund towards the theatre betterment project. A further £2.9 million (2019: £2.9 million) was gifted by the Foundation, being the value of the donated facilities. The grant also funded certain expenditure incurred by Christ’s Hospital on behalf of the Foundation. Those costs included the audit fee, other governance costs, the payroll and administration costs of the property director and the development department.

The Foundation charged £65,000 (2019: £31,000) in rent to Christ’s Hospital for certain residential properties. Other expenses totalling £4,000 (2019: £4,000) were recharged by Christ’s Hospital to the Foundation.

-49-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

Christ’s Hospital hired the sports centre and the laundry from Bluecoat Sports for a fee of £289,000 (2019: £289,000) and £10,000 (2019: £10,000) respectively. Other expenses totalling £66,000 (2019: £66,000) were recharged by Christ’s Hospital to Bluecoat Sports.

CHEL continues to make payments to Christ’s Hospital under the terms of a lease for the use of the nursery premises and a master agreement for the use of the School’s premises for holiday lets and other events. The charges were £10,800 (2019: £10,800) for the nursery lease and £41,000 (2019: £478,000) for the licence fee. In addition, Christ’s Hospital recharged a total of £85,000 (2019: £391,000) to CHEL relating to other expenses including salaries, finance and catering. No service charge (2019: £33,000) was passed on in the current year following the cancellation of the holiday lets due to COVID-19. In addition, the impact of the cancellation of the majority of CHEL’s business meant that no payment under gift aid was made to the School (2019: £206,000) and £130,000 of the gift aid received by the School in relation to the prior year was repaid.

Christ’s Hospital performs administrative services for Christal House Contracts Limited for which it received a management fee of £5,000 (2019: £5,000). In addition, Christal House Contracts charged Christ’s Hospital £77,000 (2019: £79,000) for electricity during the year.

Christ's Hospital performs administrative services for the Charities of John and Frances West for Pensioners, for which it received a management fee during the year of £25,000 (2019: £25,000).

22. MOVEMENT OF FUNDS

Specified Endowment Funds

The total Endowment Funds represent the Preserved Value plus the accumulated Unapplied Total Return (UTR). Distributions out of UTR can be made at any time at Council’s discretion.

The purposes of the major remaining funds are as follows:

The Wests’ Gift for Children Fund provides funding for descendants of the West family children from the boroughs of Richmond, Twickenham, Reading, Newbury and other families in financial need.

The Hornby Steer Fund supports children from a family either connected with the legal profession, living in Greater London, connected with the Order of St John of Jerusalem or where a parent is blind.

The Daniel Lett Fund supports current and former pupils in developing an interest in and pursuing a career in law, particularly at the Bar.

The RAF Foundationers’ Trust Fund provides funds to support the children of RAF personnel.

The Miss West Scholar Fund provides a 6[th] form scholarship for a female pupil in memory of Miss West, Headmistress at Hertford.

Christ’s Hospital Association supports the costs of publicity and alumni relations.

Additional Costs Fund (formerly The Necessitous Children’s Fund) provides additional support, particularly for travel and clothing costs for children from families in exceptional financial need.

House Fund supports the boarding houses.

The Reginald Wood Fund provides additional funds to support musically talented pupils.

The Army Foundation supports children whose parents have served or are currently serving in the Army.

-50-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

Restricted Funds

Restricted Funds are accounted for in accordance with the particular terms of the trust arising from the expressed or implied wishes of donors insofar as these are intended to be binding. Where any such wishes are not intended to be binding, they are taken into account and recognised in an appropriate Designated or Unrestricted Fund.

The Sivewright Memorial Fund is restricted to the provision of capital projects that will enhance the pupils’ appreciation of the Arts.

The Barker Music Fund is restricted to support the education of children gifted in music.

The Bluecoat Sports Fund is restricted to support the objects of Bluecoat Sports.

Designated Funds

These are Funds created for specific purposes. There is no legal restriction on the way in which the funds may be applied.

The Premises Fund was established for planned maintenance and other estate works included in the budget for the year but not yet completed.

The Fixed Asset Capital Fund represents the net book value of the fixed assets used for operational purposes.

-51-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

22. MOVEMENT OF FUNDS

£ 000s Balance at Balance at
1 September Incoming Resources Gains Transfers 31 August
2019 Resources Expended 2020
Preserved Endowment
General Fund Capital Account 102,505 105 - - - 102,610
The Wests' Gift for Children Fund 7,531 - - - - 7,531
The Hornby Steer Fund 1,670 - - - - 1,670
The Daniel Lett Fund 1,539 - - - - 1,539
The RAF Foundationers' Trust Fund 910 - - - - 910
Miss West Scholar Fund 800 - - - - 800
Christ's Hospital Association 320 3 - - - 323
Additional Costs Fund 458
 26
 - - - 484
House Fund 290
 -
 -

 -
 - 290
The Reginald Wood Fund 150 - - - - 150
Other Funds 432 1 - - - 433
116,605 135 - - - 116,740
Unapplied Total Return Endowment
General Fund Capital Account 243,520 8,306 (4,610) 8,005 (11,199) 244,022
The Wests' Gift for Children Fund 14,567 86 (46) 1,152 (608) 15,151
The Hornby Steer Fund 888 9 (6) 136 (36) 991
The Daniel Lett Fund 1,062 10 (24) 138 (5) 1,181
The RAF Foundationers' Trust Fund 668 7 (3) 81 (53) 700
Miss West Scholar Fund 61 3 (2) 43 (35) 70
Christ's Hospital Association 146 2 (1) 24 (18) 153
Additional Costs Fund 65 2 (9) 28 (12) 74
House Fund 129 2 (1) 21 (16) 135
The Reginald Wood Fund 81 1 (1) 13 (8) 86
Other Funds 354 3 (4) 40 (12) 381
261,541 8,431 (4,707) 9,681 (12,002) 262,944
Expendable Endowments
The Army Foundation 210 1 - 9 (43) 177
TOTAL ENDOWMENT FUNDS 378,356 8,567 (4,707) 9,690 (12,045) 379,861

-52-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

£ 000s
Restricted
The Sivewright Memorial Fund
Bluecoat Sports Fund
Doyle Fund
Geoff Stearn Musical Instruments
Middleton A Fund
Tazaki Foundation Fund
House Funds
Barker Music Fund
Additional Costs Fund
Other Funds
TOTAL RESTRICTED FUNDS
Designated Funds
Liquid assets
Premises Fund
Education Fund
Museum Fund
Music Fund
House Fund
Fixed Asset Capital Fund
Pension Reserve
Total Designated Funds
General Fund
TOTAL UNRESTRICTED FUNDS
TOTAL FUNDS		 Balance at
1 September
2019
1,944
620
178
118
31
289
59
1,273
40
310
4,862
1,142

43

93

4

17

1,299

64,576
(9,278)
56,597

1,259

57,856

441,074
 Incoming
Resources
7
1,275
1

1
-
160
55
13
61
154
1,727
1
-

15

-

-

16

-

-

16

13,761

13,777

24,071		 Resources
Expended
(5)
(1,647)
-
(1)
-
(14)
(64)
(2)
(50)
(29)
(1,812)
(53)

(5)

(12)
-

(2)
(72)

(2,594)

36
(2,630)

(24,341)

(26,971)
(33,490)		 Gains/
(Losses)
2
-
9
5

-
-

-
55
-
-
71
-
-

-

-
-

-

-

(1,136)
(1,136)

-

(1,136)
8,625		 Balance at
Transfers
31 August
2020
(1,463)
485

134
382
(68)
120
-
123
(25)
6

(101)
334
8
58
(26)
1,313
4
55
(129)
306
(1,666)
3,182
232

1,322

12

50

13

109
-

4
-

15

257

1,500

2,152

64,134
-

(10,378)

2,409

55,256

11,302

1,981
13,711
57,237
-

440,280

During the year, £12.0 million has been transferred into Unrestricted Funds from the Unapplied Total Return Endowment Funds.

-53-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

23. PRIOR YEAR MOVEMENT OF FUNDS

£ 000s
Balance at
2018
Preserved Endowment
General Fund Capital Account
102,483
The Wests' Gift for Children Fund
7,531
The Hornby Steer Fund
1,670
The Daniel Lett Fund
1,539
The RAF Foundationers' Trust Fund
910
Miss West Scholar Fund
800
Christ's Hospital Association
320
Additional Costs Fund
454
House Fund
290
The Reginald Wood Fund
150
Other Funds
431
116,578
Unapplied Total Return Endowment
General Fund Capital Account
244,604
The Wests' Gift for Children Fund
14,854
The Hornby Steer Fund
871
The Daniel Lett Fund
1,032
The RAF Foundationers' Trust Fund
684
Miss West Scholar Fund
79
Christ's Hospital Association
153
Additional Costs Fund
81
House Fund
135
The Reginald Wood Fund
77
Other Funds
362
262,932
Expendable Endowments
The Army Foundation
238
TOTAL ENDOWMENT FUNDS
379,748
1 September		 Incoming
Resources
22
-
-
-
-
-
-
4
-
-
1
27
12,053
171
20
20
12
7
4
4
4
2
6
12,303
3
12,333		 Resources
Expended
-
-
-
-
-
-
-
-
-
-
-
-
(3,708)
(87)
(9)
(26)
(5)
(3)
(1)
(14)
(2)
(1)
(8)
(3,864)
(2)
(3,866)		 Gains
-
-
-
-
-
-
-
-
-
-
-
-
8,805
344
40
41
25
13
7
9
7
3
11
9,305
3
9,308		 Balance at
Transfers
31 August
2019
-
102,505
-
7,531
-
1,670
-
1,539
-
910
-
800
-
320
-
458
-
290
-
150
-
432
-
116,605
(18,234)
243,520
(715)
14,567
(34)
888
(5)
1,062
(48)
668
(35)
61
(17)
146
(15)
65
(15)
129
-
81
(17)
354
(19,135)
261,541
(32)
210
(19,167)
378,356

-54-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

____
£ 000s
Restricted
The Sivewright Memorial Fund
Bluecoat Sports Fund
Doyle Fund
Geoff Stearn Musical Intruments
Middleton A Fund
Tazaki Foundation Fund
House Funds
Barker Music Fund
Other Funds
TOTAL RESTRICTED FUNDS
Designated Funds
Liquid assets
Premises Fund
Education Fund
Museum Fund
Music Fund
House Fund
Fixed Asset Capital Fund
Pension Reserve
Total Designated Funds
General Fund
TOTAL UNRESTRICTED FUNDS
TOTAL FUNDS		 ____________
Balance at
Balance at
1 September
Incoming
Resources
Gains
Transfers
31 August
2018
Resources
Expended
2019
2,064
35
(10)
(40)
(105)
1,944
677
1,696
(1,889)
-
136
620
205
21
(28)
3
(23)
178
117
1
(1)
1
-
118
6
25
-
-
-
31
196
245
(6)
-
(146)
289
45
88
(122)
-
48
59
1,125
138
(2)
12
-
1,273
296
132
(56)
-
(22)
350
4,731
2,381
(2,114)
(24)
(112)
4,862
624
293
(59)
-
284
1,142

47
-

(8)
-

4
43
84

8
(9)
-
10
93
4
-
-
-
-
4
17

-
-
-
-
17

776

301

(76)

-

298
1,299

54,673
-
(2,625)
-
12,528
64,576
(6,395)
-

88

(2,971)

-
(9,278)
49,054
301
(2,613)

(2,971)
12,826
56,597
3,283
15,898
(24,375)
-
6,453

1,259

52,337
16,199

(26,988)

(2,971)
19,279
57,856
436,816
30,913

(32,968)
6,313

-

441,074

-55-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

24. STATEMENT OF TOTAL RETURN

£ 000s
Total return for the period
Investment income
Investment gains
Gross total return for the period
Financing costs
Investment management costs
Net total return for the year
Application of total return during the period
Unapplied total return brought forward 1 September 2019
Unapplied total return carried forward 31 August 2020
Preserved value at 31 August 2020
Expendable Endowment
Total endowment values at 31 August 2020		 General
Endowment
8,306
8,005
16,311
(2,279)
(2,331)
11,701
(11,199)
243,520
244,022
102,610
-
346,632		 Wests'
Gift
86
1,152
1,238
-
(46)
1,192
(608)
14,567
15,151
7,531
-
22,682		 Other
2020
Funds
Total
39
8,431
524
9,681
563
18,112
-
(2,279)
(51)
(2,428)
512
13,405
(195)
(12,002)
3,454
261,541
3,771
262,944
6,599
116,740
177
177
10,547
379,861

25. ALLOCATION OF THE NET ASSETS BETWEEN FUNDS £ 000s

Endowment Funds
Restricted Funds
General Funds
Designated Funds:
Capital Fund
Premises Fund
Other Funds
Pension Liability		 Fixed
assets
419,567
1,614
-
64,134
-
-
-
485,315		 Net current
assets
5,294
1,568
2,019
-
1,322
178
-
10,381		 Creditors
2020
due after
Total
more than
one year
(45,000)
379,861
-
3,182
(38)
1,981
-
64,134
-
1,322
-
178
(10,378)
(10,378)
(55,416)
440,280

-56-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

PRIOR YEAR ALLOCATION OF THE NET ASSETS BETWEEN FUNDS
£ 000s
Fixed
assets
Endowment Funds
430,817
Restricted Funds
1,587
General Funds
-
Designated Funds:
Capital Fund
64,576
Premises Fund
-
Other Funds
-
Pension Liability
-
496,980
26. FINANCIAL INSTRUMENTS
£ 000s
Financial assets measured at amortised cost (a)
Financial liabilities measured at amortised cost (b)		 Net current
assets
(7,461)
3,275
1,377
-
1,142
157
-
(1,510)		 Creditors
2019
due after
Total
more than
one year
(45,000)
378,356
-
4,862
(118)
1,259
-
64,576
-
1,142
-
157
(9,278)

(9,278)
(54,396)
441,074

Total
Total
2020
2019
19,248
14,079
(64,212)
(69,796)
(44,964)
(55,717)

(a) Financial assets include cash, trade and fee debtors, other debtors, accrued income and amounts due from members of the Christ’s Hospital Foundation group.

(b) Financial liabilities include deposits, fees in advance, trade and other creditors.

Additional information on financial instruments held at fair value as Investments is set out in Note 12.

-57-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

27. PRIOR YEAR CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES - Comparative figures by fund-type

£ 000s

INCOME AND ENDOWMENTS FROM:
Charitable Activities
School fees receivable
Sports centre income
Ancillary trading
Investments
Investment income
Fundraising
Donations and legacies
Other sources
Non-ancillary trading income
Other income
TOTAL INCOME AND ENDOWMENTS
EXPENDITURE ON:
Raising Funds
Fundraising and development
Trading activities
Investment management
Financing
Charitable Activities
Costs of providing education
Sport centre expenditure
TOTAL EXPENDITURE
NET INCOMING/ (OUTGOING) FUNDS FROM OPERATIONS
BEFORE TRANSFERS AND INVESTMENT GAINS
Gains on investments
Transfers between funds
NET INCOME AND CAPITAL INFLOW
Actuarial gains on defined
benefit pension scheme
NET MOVEMENT IN FUNDS
Total funds brought forward 1 September
TOTAL FUNDS		 -58-
Endowment
Funds
-
-
-
12,260
28
-
-
45
12,333
-
-
(1,557)
(2,274)
(35)
-
(3,866)
8,467
9,308
(19,167)
(1,392)
-
(1,392)
379,748
378,356		 Restricted
Funds
-
1,642
127
59
541
12
-
2,381
-
-
(15)
-
(210)
(1,889)
(2,114)
267
(24)
(112)
131
-
131
4,731
4,862		 Unrestricted
Total
Funds
2019
10,736
10,736
-
1,642
936
1,063
55
12,374
2,755
3,324
1,469
1,481
248
293
16,199
30,913
(414)
(414)
(755)
(755)
(27)
(1,599)
-
(2,274)
(25,792)
(26,037)
-
(1,889)
(26,988)
(32,968)
(10,789)
(2,055)
-
9,284
-
19,279
8,490
7,229
(2,971)
(2,971)
5,519
4,258
52,337
436,816
57,856
441,074

Christ’s Hospital

A company limited by guarantee and registered in England and Wales Company No. 06232556 Registered Charity No. 1120090 VAT Registration No. 777313705 Trustee of Christ’s Hospital Foundation - Registered Charity No. 306975

Enquiries:

Christ’s Hospital, Horsham, West Sussex, RH13 0LJ t: +44 (0) 1403 211293 e: enquiries@christs-hospital.org.uk www.christs-hospital.org.uk