OpenCharities

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

2022-08-31-accounts

+••. | CHRIST'S HOSPIT A SCHOOL LIKE NO OTHER ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2022

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2022

_____________

CONTENTS

CONTENTS
Page
Report of the Trustees 2-21
Auditor’s Report 22-24
Consolidated Statement of Financial Activities 25
Consolidated and Charity Balance Sheets 26
Consolidated Cash Flow 27
Terminology 28
Notes to the Financial Statements 29-58

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 2022 REPORT OF THE TRUSTEES

_____________

KEY INFORMATION

Year ended 31 Year ended 31
August 2022 August 2021
Financial Results
Investment income £6.9m £7.8m
Investment gains £9.9m £70.3m
Total return (net of fees and interest) 2.4% 18.9%
School fee income £10.9m £10.0m
Fundraising income £4.4m £8.8m
Net trading income / (loss) £0.4m £0.0m
Closing value of Endowment Funds £442.0m £442.5m
Closing value of Total Funds £510.6m £506.4m
Staff (FTE) 378 385
Teaching 115 116
Teaching support 43 40
Welfare 59 60
Premises, Administration & other 161 169
Total pupils (at beginning of Academic Year) 888 896

-2-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2022 REPORT OF THE TRUSTEES

_____________

The Council of Christ’s Hospital (Council) presents its report and audited financial statements for the year ended 31 August 2022 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.

Christ’s Hospital shares the nation’s sadness on the passing of our Patron, Her Majesty Queen Elizabeth II. Following His Majesty King Charles III’s accession, the Royal Household is conducting a review of Royal Patronage. This is ongoing as of the date of this report.

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. 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.

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 page 17. Their financial performance is shown in Note 4(c) on pages 34 and 35.

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 28.

-3-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2022 REPORT OF THE TRUSTEES

_____________

STRATEGIC REPORT

OBJECTIVES, ACHIEVEMENTS AND PERFORMANCE FOR 2021/22

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

Complete the integration of the “Shape of the Day” initiative and the introduction of the new curriculum.

Develop an “expeditionary education” curriculum in preparation for launch in Michaelmas term 2022.

Undertake preparatory work for the smooth changeover to a new management information system for the School, with an anticipated go-live in the 2022-23 academic year.

Complete the next phase of the School’s programme on Equity, Diversity and Inclusion (EDI), through a partnership with Inclusion Labs designed to help the senior leadership team identify and prioritise areas on which to focus to improve inclusivity at Christ’s Hospital.

Restart work on the financing and phasing of the expansion of Bluecoats Sports following receipt of planning permission in September 2021.

Develop and launch a new fundraising campaign, following the successful completion of Bright Futures.

The introduction and integration of the new “Shape of the Day”, together with the new curriculum, in addition to the move to A level only at Sixth Form, is now complete. A review will be undertaken in the course of the next academic year to identify areas to adjust and enhance further.

Work is under way to develop this programme, with launch delayed until the 2023-24 academic year to allow for the “Shape of the Day” and curriculum changes to be fully embedded in the School before the introduction of an important new educational pillar.

Preparatory work is continuing for a changeover in the 2023-24 academic year as resources were focused for a large part of this year on rebooting the School after the pandemic and it was determined that a change of this magnitude required more preparation.

This phase of the School’s programme has been completed and resulted in the identification of three priority areas for further work over the coming year (addressing the needs of pupils of faiths other than Christianity, international pupils and pupils with special educational needs). This work will be led by a recently recruited EDI Lead, which was one of the key conclusions of the Inclusion Labs report.

The School established a steering group whose members include the Chair of Bluecoats Sports, senior members of staff and representatives of the support and teaching bodies. Options for phasing of the project are being considered, with a view to maximising the short-term benefit for the School, and these are options are being built into the financial plan for the next five year period.

Work is continuing on developing a new fundraising campaign, the focus of which will be linked with important strategic decisions around boarding house redevelopment and the expansion of sports facilities.

-4-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2022 REPORT OF THE TRUSTEES

_____________

Academic achievements 2022

As always, many of the pupils at Christ’s Hospital have a number of personal challenges to overcome, this year more so than most. As such, the grades achieved by some individuals often have far more meaning and are to be celebrated to a greater extent than the value of the very highest grades. This year there were some exceptional results for individuals with some profound difficulties, including challenging family circumstances, estrangement, bereavement and mental health issues.

2022 saw a return to public examinations and normal assessments but with some adaptations in response to the disruption of education experienced by pupils during the pandemic. Examination boards made a commitment that grade boundaries and results for summer 2023 would return to prepandemic levels and as such the grades awarded in 2022 would reflect a midway point between the 2021 and 2019 exam years. Therefore, comparison with previous years, whether under Teacher Assessed Grades, Centre Assessed Grades or public examinations, should be treated with extreme caution. In the absence of any other meaningful measurement, direct comparison to the 2021 results have been made.

A2 results

At A-Level/Pre-U, 78.3% of the grades this year were at A to B (2021: 83.7%), 53.4% of the A- Level/Pre-U grades gained were equivalent to A or A (2021: 61.1%) and 23.9% of the grades were at A* (2021: 29.8%).

The average UCAS points per A Level candidate was 139 (2021: 143) and the overall A2 pass rate was 100% (2021: 99.5%) despite there being some concerns for individual pupils.

At the top end of this year’s A2 cohort there were some very strong results, a huge proportion of 40% (55 pupils out of the cohort of 134), achieved a minimum of one A* grade and more than 60 of the 134 pupils, 45% (2021: 42%) achieved overall grades equivalent to AAA or higher.

IB results

This was one of the strongest set of results in the history of the IB at Christ’s Hospital, 92% (2021: 96%) of the grades gained were equivalent to A to B at A Level and 72% (2021: 84%) were equivalent to A or A at A Level. The average UCAS points per IB candidate this year was 234 (2021: 246).

Out of the small cohort of 17 pupils, all achieved a pass, with six (2021: seven) achieving 40 points or more and an overall average of 37.8 points (2021: 40.5). The highest individual score was 43 points (2021: 45).

University places

Despite the rather competitive university climate at the moment, the sixth form team prepared pupils well: 70% (2021: 75%) of those pupils who applied for further study were placed in their first choice course at university and a further 10% (2021: 6%) took up their insurance place. Places included Cambridge (4), Oxford (4), Warwick (6), University of Bristol (14), University of Manchester (7), Durham University (4), University College London (5) and University of Nottingham (4).The number of offer acceptances from “higher tariff” universities was 80% (2021: 80%). Courses in economics and finance remain the most popular areas for pupils.

(I)GCSE Results

This year’s (I)GCSE results were strong, with some excellent individual performances and an overall pass rate of 98.6% (2021: 98.8%). Out of those, 23.2% (2021: 21.6%) were at Level 9, 50.0% (2021: 46.0%) were awarded at level 8 and above, equivalent to an A*, and 73.9% (2021: 69.7%) were at Level 7-9.

-5-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2022 REPORT OF THE TRUSTEES

_____________

Highlights include:

FUTURE PLANS

Objectives for the coming year:

NON RECENT CASES OF ABUSE

During the year, the School continued to work, though an independent mediator, with victims and survivors of abuse to identify ways in which the School can best ensure that past events are acknowledged and remembered. The School remains confident that nothing has emerged from the completed cases that presents any risk to the safety and wellbeing of pupils today. No new allegations or disclosures were received during the year.

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 2022 REPORT OF THE TRUSTEES

_____________

From the total of 888 pupils in the School at the beginning of the year, 699 (79%) received financial support towards the costs of their education with 90 (10%) of these pupils being entirely funded by the Foundation. These figures also include staff discounts which were received by the families of 21 pupils (2%).

Christ’s Hospital is aware of the impact of the current ‘cost of living’ crisis on the disposable income of the families of many of our pupils. To respond to this, we have reviewed and made changes to the means assessment process in the year to ensure that an education at Christ’s Hospital remained affordable, and have continued to set aside funds for those families experiencing significant hardship at this time. We are grateful for donations received during this time that have enabled funding assistance, for areas such as travel to the School, pupil devices and sportswear, to be extended to more families from September 2022.

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 enables us to share our facilities and expertise with the local community and the School hosts a number of regional sports events each year. Christ’s Hospital is proud to have supported the COVID-19 vaccination programme, with the hiring of the gymnasium sports hall at Bluecoat Sports to the NHS as a vaccination hub during 2022.

For more information about the work of Christ’s Hospital, please read the Impact Report 2021/22 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 13 for further details.

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. Selected staff are 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.

-7-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2022 REPORT OF THE TRUSTEES

_____________

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 in June 2020, Christ’s Hospital made acting on its commitment to challenge inequality a priority. The Equity, Diversity and Inclusion Committee was established by Council in 2020 and this year has received reports on staff and pupil diversity, discipline and sanctions and subject choice. In September 2022, the School appointed its first EDI lead, a dedicated post established to work with pupils and staff on inclusion issues.

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. The Head Teacher holds weekly meetings of teaching and pastoral staff, also attended by support managers. The COO meets regularly with her management team both individually and collectively.

c. The need to foster the charitable 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 is via half-termly newsletter supplemented by events held on site for different cohorts. Both onsite and online parent consultations are held during the year.

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.

d. The impact of the charitable 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, the Anti-Money Laundering policy and the Staff Code of Conduct.

-8-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2022 REPORT OF THE TRUSTEES

_____________

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:

2022 2021
UK energy use1
(MWh) 15,940 19,343
Associated greenhouse gas emissions2
Tonnes CO2 equivalent (tCO2e) 3,020 3,711
Intensity ratio
Emissions per FTE staff member 7.99 9.64

FINANCIAL REVIEW AND RESULTS FOR THE YEAR ENDED 31 AUGUST 2022

Income and expenditure

The details of income and expenditure are shown in the Consolidated Statement of Financial Activities on page 25.

Following the strong investment performance in 2021, the war in Ukraine and rising inflation, have led to significant volatility on global investment markets. This has translated to reduced investment returns for Christ’s Hospital. Further information is set on page 10.

Financial results continued to recover from the pandemic. School fees returned to more normal levels and trading activities, principally from the return of the Easter and summer let programmes, generated

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

2 Associated greenhouse gases have been calculated under ‘Emissions calculation factors: the UK Government GHG Conversion Factors for Company Reporting 2020’.

-9-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2022 REPORT OF THE TRUSTEES

_____________

a surplus of just under £400,000. However, the School is starting to see the impact of rising inflation. Whilst energy prices are fixed until 2023, increased costs are being seen in a number of areas. With the extensive boarding house redevelopment programme commencing within the next ten years, management are monitoring the changing economic environment closely.

Further detail on the financial performance of subsidiary and related entities is set out on pages 11 and 12.

Investment performance

The total return on the investments was £16.8 million (2021: £78.1 million) which was made up of dividend, interest and rental income of £6.9 million (2021: £7.8 million) and investment gains of £9.9 million (2021: £70.3 million).

Securities and other assets
Investment properties including land
Total invested assets		 2022
£m
312.1
168.4
480.5		 Total
Return
0.2%
7.9%
2.4%		 2021
£m
Total
Return
318.9
23.3%
156.3
10.0%
475.2
18.9%

The securities portfolio returned 0.2% net of all fees in this financial year, against a backdrop of doubledigit declines in both Public Equities (12% decline as measured by MSCI AC World NR LC) and Government Bond (20% decline as measured by FTSE A British Govt All Stocks TR GBP). The main drivers for the performance were stronger-than-expected inflation, as the developed world continued the post-pandemic reopening process, continued lockdowns in China affecting supply chains, and Russia’s invasion of Ukraine which led to spikes in energy and food prices. As a result, most central banks had to embark on the most aggressive tightening cycle since the 1980s, leading to a re-pricing of most financial assets. The securities portfolio defended relatively well in the volatile environment, benefiting from little government bond exposure, multi-asset class diversification and exposure to USDdenominated assets.

The Christ’s Hospital property portfolio return of 7.9%, was lower than 2021, and significantly behind the commercial benchmark return of 18.0%. Over the last 12 months the commercial office element of the portfolio has significantly detracted from the return due to high vacancy rates, concerns over the long-term impact of working from home and the need to deploy significant capital to upgrade the buildings both from a marketing and environmental, social and governance (ESG) perspective.

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 £4.4 million (2021: £8.8 million) exceeded the £3.1 million target for the year. This performance was due primarily to higher income than expected from legacies. 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 1,279 Old Blues and parents made a donation in the year.

-10-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2022 REPORT OF THE TRUSTEES

_____________

During the year an appeal was launched for the restoration of the magnificent Chapel organ, with £92,000 donated by the end of August. The Giving Tuesday appeal once again saw excellent support from Old Blues and parents, with £43,000 raised for the Additional Costs Fund.

Thanks are recorded to six Donation Governors who completed their pledges during the year and 379 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 2022 received no (2021: none) 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 2022 in accordance with FRS 102 showed the deficit to have reduced to £1.2 million (2021: £8.3 million). This was due to an increase in the discount rate combined with increased inflation assumptions. The overall effect of these changes decreased the defined benefit obligation for the Scheme by around 30%.

Following the detailed actuarial valuation which took place as at March 2020, 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 31 March 2035. 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.

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 income and capital outflow for the year of £1,927,000 (2021: net income and capital inflow of £65,146,000) and actuarial gains on the defined benefit pension scheme of £6,953,000 (2021: £1,864,000). See investment performance section on page 10 for commentary on key movements.

-11-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2022 REPORT OF THE TRUSTEES

_____________

Bluecoat Sports

Income for the year was £1,603,000 (2021: £1,305,000) and the charitable company reported a net income for the year of £146,000 (2021 loss: £82,000). The charitable company continues to recover after the challenges presented by the pandemic. Membership promotions during the year have been successful in improving overall membership numbers and usage. Whilst not yet at pre-pandemic levels this has contributed to an improved financial picture.

The experience of operating Bluecoats during the pandemic has underlined that the operation is wellplaced to recover over the medium term, provided that indoor fitness activities are able to function at normal capacity levels. Indeed, there are elements of the changes introduced due to COVID-19 which management have retained as they improve the customer experience for both pupils and members. The operation will continue to be tightly managed while uncertainty about the operating environment persists and in light of the current economic climate.

Christ’s Hospital Enterprises Limited (CHEL)

Turnover for the year was £985,000 (2021: £106,000). The results for the year continued to be affected by the pandemic with visitor numbers not yet reaching pre-pandemic figures for both 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 £11,000 for the nursery lease and £345,000 for the licence fee, with the latter reduced from prior year. Due to the remaining deficit following the pandemic, it was again not possible for a payment to be made under Gift Aid (2021: no payment under Gift Aid). Council has confirmed that with trading having not yet returned to normal levels, it will 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, and the solar panels at Westons Farm, generated a total of 1,143Mwh of electricity in the year to 31 August 2022 (2021: 1,112Mwh). Sales of electricity generated and feed-in-tariff grants earned amounted to £210,000 (2021: £172,000).

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:

-12-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2022 REPORT OF THE TRUSTEES

_____________

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 2022 were £510.6m (2021: £506.4m). This total comprised £442.0m of endowed funds (2021: £442.5m), restricted funds of £3.0m (2021: £2.7m) and unrestricted funds (net of Pension Reserve) of £65.5m (2021: £61.2m).

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 £3.5m at 31 August 2022 (2021: £4.2m). 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 £61.3m 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 delegates the implementation and oversight of the Investment Policy to the Investment Committee. Day-to-day management of the securities investments is delegated to Partners Capital LLP and property investments to the Property Director.

Christ’s Hospital seeks to incorporate responsible investment best practices into investment decision making. We are focused on ESG factors that may have a material impact on our investment risk or return.

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

-13-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2022 REPORT OF THE TRUSTEES

_____________

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.

Equity, diversity and inclusion

Christ’s Hospital has made acting on its commitment to challenge inequality a priority. The EDI Committee was established by Council to oversee this area. The EDI Committee receives reports on staff and pupil diversity. From September 2022, the School’s EDI lead commenced work with pupils and staff on inclusion issues.

Adverse publicity leading to reputational damage

The School monitors the press and social media and responds to any negative coverage as appropriate, supported by an external specialist in crisis communications. Robust policies are in place to ensure that any risk to the School’s reputation presented by the actions of staff or pupils is minimised.

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

The School has continued to remain vigilant to the risks presented by COVID-19. Apart from an outbreak at the beginning of the Michaelmas term, which resulted in two year groups being sent home for a ten-day isolation period, the School has been able to return to something approaching normality. Pupils have benefited from the reinstatement of the vertical house-based model and from a return to in-person teaching. Provision has been made for international pupils who need to isolate following a positive test and the School continues to comply with government guidance.

Financial sustainability

With recent events leading to significant uncertainty over inflation and volatility on investment markets, the draft financial plan for the five-year period from 1 September 2022 is currently being refined. Key elements of the plan include managing income, operational costs and capital expenditure so that the cumulative withdrawal from the Endowment is within the Spending Rule.

-14-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2022 REPORT OF THE TRUSTEES

_____________

Factors remain that may have an impact on the charity, in common with other businesses, over a number of years. Those factors principally being the ongoing economic impact of the pandemic and the war in the Ukraine, including rising inflation, high energy prices and ‘cost of living’ pressures. Whilst the full impact 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 healthy, with 852 pupils enrolled for the academic year 2022/23. 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 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 co-opted 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 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 identified some areas for improvement which are currently under consideration.

-15-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2022 REPORT OF THE TRUSTEES

_____________

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.

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, “The Essential Trustee”. 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 safeguarding training.

The Court of Governors

The Court of Governors (the Court) is an historic body composed of the President and Vice President, 35 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 five new Donation Governors were elected. At the end of the year there were 497 Donation Governors.

-16-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2022 REPORT OF THE TRUSTEES

_____________

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.

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:

-17-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2022 REPORT OF THE TRUSTEES

_____________

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 2022 REPORT OF THE TRUSTEES

_____________

REFERENCE AND ADMINISTRATIVE INFORMATION Structure, Governance and Management

Patron

Her Majesty the Queen (to 8 September 2022)

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:

subsequently are detailed below:
Constituency/
Committee Membership
Christopher Steane, MA, LLB, Treasurer and Chair (c) 2,4,6
Nick Atkinson, MA, FCCA (c) 5,8
Nick Bensted-Smith, BSc, JP, CC (b) 4
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) 4
Robert Judson, FRAeS, FCMI, MIoD, RAF(Retd) (c) 3
Neil Maidment, MA, FCII (from 1 October 2021) (a) 4,5
Miriam McKay, BA (a) 1,4,6
James Maclean, BSc(Hons) (to 31 March 2023) (c) 1
Pamela Roberts, FRSA, FRHistS, JP (from 1 October 2021) (c) 7,8
Jenny Williams, BSc(Hons), PGCE (from 1 October 2021) (a) 3,8
John Yeomans, MA, FIET, CEng (c) 1

Constituencies by which Members are nominated

Committee Membership

-19-

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2022 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 Assistant Head, Academic Assistant Head, Admissions Assistant Head, Co-curricular Assistant Head, Pastoral Designated Safeguarding Lead

Simon Reid, BA Nick Tesseyman, BA (to 2 September 2022) Jenny Baxter, BSc (from 7 September 2022) Ruth Brading, BA, MA, PhD Luke Walters, BA, MA 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 2022 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 6 April 2023, 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

6 April 2023

-21-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

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 (‘the charitable company’) and its subsidiaries (‘the group’) for the year ended 31 August 2022 which comprise the Consolidated Statement of Financial Activities, Consolidated and Company only Balance Sheets, Consolidated Cashflow and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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

In auditing the financial statements, we have concluded that the Trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's or the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

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

We have nothing to report in this regard.

-22-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

AUDITOR’S REPORT

_________________

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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 Statement of Council’s responsibilities set out on page 18, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

-23-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

AUDITOR’S REPORT

_________________

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent School Standards) Regulations 2014, General Data Protection Regulation (GDPR), Health and safety legislation and Employment legislation

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income, valuation of investments and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Audit & Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, analytical review and sample testing of income, vouching year end valuations to third party data, reviewing accounting estimates for biases in particular in relation to investment valuations, reviewing regulatory correspondence with the Charity Commission, Independent Schools Inspectorate, Ofsted and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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 20 April 2023

-24-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

_______
£ 000s
Endowment Restricted
Funds
Funds
Notes
INCOME AND ENDOWMENTS FROM:
Charitable Activities
School fees receivable
6
-
-
Sports centre income
-
1,206
Ancillary trading income
6
-
139
Investments
Investment income
5
6,831
15
Fundraising
Donations & legacies
3
36
746
Other sources
Non-ancillary trading income
4b
-
-
Other income
7
3
9
TOTAL INCOME AND ENDOWMENTS
6,870
2,115
EXPENDITURE ON:
Raising Funds
Fundraising and development
9a
-
-
Trading activities
4b
-
-
Investment management
8
(3,262)
(11)
Financing
9a
(2,275)
-
Charitable Activities
Costs of providing education
9a
(47)
(204)
Sports centre expenditure
9a
-
(1,299)
TOTAL EXPENDITURE
(5,584)
(1,514)
NET INCOMING/ (OUTGOING) FUNDS FROM OPERATIONS
BEFORE TRANSFERS AND INVESTMENT GAINS
1,286
601
Gains on investments
12
9,879
8
Transfers between funds
23
(11,617)
(284)
NET INCOME AND CAPITAL INFLOW/ (OUTFLOW)
(452)
325
Actuarial gains on defined benefit
20e
-
-
pension scheme
NET MOVEMENT IN FUNDS
(452)
325
Total funds brought forward 1 September
442,488
2,716
TOTAL FUNDS CARRIED FORWARD
442,036
3,041		 ____
Unrestricted
Funds
10,866
-
853
79
3,571
1,120
272		 ______
Total
Total
2022
2021
10,866
9,952
1,206
609
992
915
6,925
7,815
4,353
8,751
1,120
206
284
729
25,746
28,977
(439)
(437)
(746)
(228)
(3,310)
(2,740)
(2,275)
(2,277)
(30,330)
(28,137)
(1,299)
(1,210)
(38,399)
(35,029)
(12,653)
(6,052)
9,887
70,301
-
-
(2,766)
64,249
6,953
1,864
4,187
66,113
506,393
440,280
510,580
506,393
16,761
(439)
(746)
(37)
-
(30,079)
-
(31,301)
(14,540)
-
11,901
(2,639)
6,953
4,314
61,189
65,503

The notes on pages 29 to 58 form part of these financial statements.

-25-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

CONSOLIDATED AND CHARITY BALANCE SHEETS

____________

£ 000s
2022
2021
Notes
FIXED ASSETS
Tangible assets
11
66,979
67,894
Investments
12
480,517
475,206
547,496
543,100
CURRENT ASSETS
Stock
13
221
223
Debtors
- due within one year
14
5,183
4,181
Cash at bank and in hand
15,163
20,558
20,567
24,962
CREDITORS
Due within one year
15
(11,014)
(8,203)
9,553
16,759
TOTAL ASSETS LESS CURRENT
557,049
559,859
LIABILITIES
CREDITORS
Due after more than one year
16
(45,031)
(45,066)
Pension scheme liability
20
(1,216)
(8,325)
Provisions for liabilities and charges
21
(222)
(75)
NET ASSETS - INCLUDING
510,580
506,393
PENSION SCHEME LIABILITY
REPRESENTED BY:
Endowment Funds
23
442,036
442,488
Restricted Funds
23
3,041
2,716
Unrestricted Funds
23
66,719
69,514
Pension Reserve
23
(1,216)
(8,325)
TOTAL FUNDS
510,580
506,393
NET CURRENT ASSETS
Consolidated		 2022
2021
2,522
2,809
-
-
2,522
2,809
199
194
4,960
4,425
4,824
4,992
9,983
9,611
(6,721)
(5,767)
3,262
3,844
5,784
6,653
-
(24)
-
-
(222)
(75)
5,562
6,554
-
-
414
335
5,148
6,219
-
-
5,562
6,554
Charity

The net movement in funds for the financial year dealt with in the charity only financial statements was £992,000 outflow (2021: £731,000 outflow).

The notes on pages 29 to 58 form part of these financial statements. Approved by the Council of Christ’s Hospital on 6 April 2023 and signed on its behalf by:

Christopher Steane

Treasurer and Chair of the Council of Christ’s Hospital 6 April 2023 -26-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

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 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		 2022
2021
(12,545)
(10,560)
6,925
7,815
(2,134)
(1,386)
22
1
8,979
1,384
15,901
20,772
(482)
(1,514)
(19,822)
(9,930)
9,389
17,142
(2,275)
(2,277)
36
58
(2,239)
(2,219)
(5,395)
4,363
20,558
16,195
15,163
20,558

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

The notes on pages 29 to 58 form part of these financial statements

-27-

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).

-28-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

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 21 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, factors remain that may have an impact on the charity, in common with other businesses, over a number of years. Those factors principally being the ongoing economic impact of the pandemic and the war in Ukraine, including rising inflation, high energy prices and ‘cost of living’ pressures. Whilst the full impact 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 852 pupils enrolled for the academic year 2022/23. 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.

-29-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

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 2022.

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.

All other income is accounted for when receivable.

-30-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

NOTES TO THE FINANCIAL STATEMENTS

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.

-31-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

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.

Legal claims

Where the school has claims made against it, which can cover a variety of areas such as health and safety, employment and other damages, these are disclosed in aggregate within provisions. These are not disclosed separately as this is considered prejudicial.

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.

-32-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

NOTES TO THE FINANCIAL STATEMENTS

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.

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.

-33-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

NOTES TO THE FINANCIAL STATEMENTS

3. DONATIONS AND LEGACIES

£ 000s
Donation Governorships & Blue Fund
Legacies
Donations for projects
Other donations
Grants from external foundations		 Endowment
Funds
36
-
-
-
-
36		 Restricted
Funds
-
-
181
565
-
746		 Unrestricted
Funds
637
1,995
-
576
363
3,571		 Total
Total
2022
2021
673
1,473
1,995
5,970
181
22
1,141
974
363
312
4,353
8,751

Legacies notified as at the year-end but not meeting the criteria for recognition amounted to £3.7 million.

4. INCOME AND EXPENDITURE

(a) Charity

The charity had total income of £30,976,000 (2021: £30,212,000) and total expenditure of £31,968,000 (2021: £30,943,000) in the financial year.

(b) Consolidated trading activities

£ 000s
Income from other trading activities
Christ's Hospital
CHEL
Christal House Contracts Limited
Trading Expenditure
CHEL
Christal House Contracts Limited		 Restricted
Funds
-
-
-
-
-
-
-		 Unrestricted
Funds
11
985
124
1,120
638
108
746		 Total
Total
2022
2021
11
5
985
107
124
94
1,120
206
638
126
108
102
746
228

(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 11 and 12 of the Report of the Trustees.

-34-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

NOTES TO THE FINANCIAL STATEMENTS

2022
£ 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)
2021
£ 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)		 The
Foundation
27,946
(22,920)
5,026
499,884
504,910
558,218
(53,308)
504,910
The
Foundation
90,588
(23,578)
67,010
432,874
499,884
559,254
(59,370)
499,884		 Bluecoat
Sports
1,603
(1,457)
146
301
447
917
(470)
447
Bluecoat
Sports
1,305
(1,387)
(82)
383
301
552
(251)
301		 CHEL
Christal
House
Contracts
Limited
985
210
(994)
(194)
(9)
16
(158)
(188)
(167)
(172)
512
1,222
(679)
(1,394)
(167)
(172)
CHEL
Christal
House
Contracts
Limited
122
172
(185)
(194)
(63)
(22)
(95)
(166)
(158)
(188)
67
1,318
(225)
(1,506)
(158)
(188)
5. INVESTMENT INCOME
£ 000s
Property
Securities
Interest		 Endowment
Funds
6,285
480
66
6,831		 Restricted
Funds
-
2
13
15		 Unrestricted
Funds
-
-
79
79		 Total
Total
2022
2021
6,285
6,285
482
1,514
158
16
6,925
7,815

-35-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

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
Funds
32,190
(21,687)
10,503
363
10,866		 Total
Total
2022
2021
32,190
30,911
(21,687)
(21,271)
10,503
9,640
363
312
10,866
9,952
Ancillary trading
£ 000s
Shop income
Music fees
Exam fees
House funds
Sundry parental charges
Event and sponsorship income
Admission fees
Other		 Restricted
Funds
-
-
-
84
8
-
-
47
139		 Unrestricted
Funds
2
319
18
-
437
21
51
5
853		 Total
Total
2022
2021
2
2
319
252
18
13
84
80
445
411
21
-
51
50
52
107
992
915

7. INCOME FROM OTHER SOURCES

£ 000s
Rental income - staff housing
Wests' Pensioners charity service
charge
Profit on disposal of fixed assets
Grant from Coronavirus Job Retention
Scheme
Other miscellaneous income		 Endowment
Funds
-
-
-
-
3		 Restricted
Funds
-
-
9
-
-
9		 Unrestricted
Funds
233
25
5
-
9
272		 Total
Total
2022
2021
233
224
25
25
14
1
-
466
12
13
284
729
3

-36-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

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
1,954
1,308
3,262
Staff
Costs
320
127
-
-
447
8,623
3,104
2,439
2,114

-
16,280
839
17,119
17,566		 Restricted
Funds
-
11
11
Other
Costs
119
544
3,310
2,275
6,248
908
1,507
6,312
1,950
472
11,149
395
11,544
17,792		 Unrestricted
Funds
-
37
37
Depreciation
-
75
-
-
75
40
307
2,309
245
-
2,901
65
2,966
3,041		 Total
Total
2022
2021
1,954
2,278
1,356
462
3,310
2,740
Total
Total
2022
2021
439
437
746
228
3,310
2,740
2,275
2,277
6,770
5,682
9,571
9,318
4,918
4,493
11,060
9,898
4,309
3,982
472
446
30,330
28,137
1,299
1,210
31,629
29,347
38,399
35,029

Support costs include governance costs of £194,000 (2021: £183,000).

(b) Grants, awards and prizes
£ 000s
From endowed funds:
Bursaries and other grants and awards
From restricted funds:
Bursaries and other grants and awards
From unrestricted funds:
Bursaries and other grants and awards		 Total
Total
2022
2021
47
53
415
385
10
8
472
446

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

-37-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

NOTES TO THE FINANCIAL STATEMENTS

10. STAFF COSTS
Teaching
Teaching support
Welfare
Premises
Other ancillary
Fundraising
Bluecoat Sports
CHEL
Contract catering 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
115
7,418
43
1,205
59
2,014
85
2,439
37
2,114
6
320
29
839
4
127
378
16,476
1,090
17,566
12,987
1,263
2,185
41
1,090
17,566
1,067
2022		 Number
Cost
(FTE)
£ 000s
116
7,331
40
1,162
60
1,938
94
2,374
36
2,160
6
319
29
828
4
99
385
16,211
927
17,138
12,692
1,199
2,279
41
927
17,138
1,034
2021

The average head count (being number of staff employed not adjusted for FTE) was 542 (2021: 535). The full time equivalent number of employees by category is disclosed in the table above.

Salaries and wages include £23,000 (2021: £64,000) 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 (2021: 9) as set out on page 20. The number of employees whose total emoluments for the period exceeded £60,000 was 29 (2021: 23) in the following bands:

2022 2021
£60,001 to £70,000 19 14
£70,001 to £80,000 3 2
£80,001 to £90,000 3 3
£90,001 to £100,000 1 1
£120,001 to £130,000 1 2
£130,001 to £140,000 1 -
£150,001 to £160,000 1 1

Information on volunteers is shown on page 17.

-38-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

NOTES TO THE FINANCIAL STATEMENTS

11. TANGIBLE FIXED ASSETS
£ 000s
Land &
Buildings
(a) Group
Cost or valuation
At 1 September 2021
83,229
Additions at cost
67
Transfers
659
Disposals at cost
-
At 31 August 2022
83,955
Depreciation and amortisation
At 1 September 2021
24,953
Charge for the period
1,827
Accumulated on disposals
-
At 31 August 2022
26,780
Net book value at 31 August 2022
57,175
Net book value at 31 August
2021
58,276
Land &
Buildings
(b) Charity
Cost or valuation
At 1 September 2021
-
Additions at cost
-
Transfer to Foundation
-
Disposals at cost
-
At 31 August 2022
-
Depreciation and amortisation
At 1 September 2021
-
Charge for the period
-
Accumulated on disposals
-
At 31 August 2022
-
Net book value at 31 August 2022
-
Net book value at 31 August
2021
-		 11. TANGIBLE FIXED ASSETS
£ 000s
Land &
Buildings
(a) Group
Cost or valuation
At 1 September 2021
83,229
Additions at cost
67
Transfers
659
Disposals at cost
-
At 31 August 2022
83,955
Depreciation and amortisation
At 1 September 2021
24,953
Charge for the period
1,827
Accumulated on disposals
-
At 31 August 2022
26,780
Net book value at 31 August 2022
57,175
Net book value at 31 August
2021
58,276
Land &
Buildings
(b) Charity
Cost or valuation
At 1 September 2021
-
Additions at cost
-
Transfer to Foundation
-
Disposals at cost
-
At 31 August 2022
-
Depreciation and amortisation
At 1 September 2021
-
Charge for the period
-
Accumulated on disposals
-
At 31 August 2022
-
Net book value at 31 August 2022
-
Net book value at 31 August
2021
-		 Work in
Progress
255
889
(845)
-		 Office
Equipment
2,248
617
-
(10)		 Plant &
Equipment
9,859
561
186
(771)		 Motor
Vehicles
141
-
-
(12)		 Historic
Total
Assets
5,339
101,071
-
2,134
-
-
-
(793)
5,339
102,412
-
33,177
-
3,041
-
(785)
-
35,433
5,339
66,979
5,339
67,894
Total
7,385
1,545
(826)
(12)
8,092
4,576
1,006
(12)
5,570
2,522
2,809
83,955 299 2,855 9,835 129
-
-
-		 1,845
240
(10)		 6,265
960
(763)		 114
14
(12)
26,780 - 2,075 6,462 116
57,175 299 780 3,373 13
58,276 255 403 3,594 27
Land &
Buildings
-
-
-
-		 Work in
Progress
254
572
(826)
-		 Office
Equipment
2,071
618
-
-		 Plant &
Equipment
4,919
355
-
-		 Motor
Vehicles
141
-
-
(12)
129
114
14
(12)
116
13
27
- - 2,689 5,274
-
-
-		 1,670
239
-		 2,792
753
-
- - 1,909 3,545
- - 780 1,729
- 254 401 2,127

The transfer to the Foundation from work in progress of £826,000 principally relates to the completion of the enhancement of the high voltage infrastructure of the site.

-39-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

NOTES TO THE FINANCIAL STATEMENTS

12. FIXED ASSET INVESTMENTS £ 000s

Property
Investments at market value
Market value at 1 September
156,287
Net (disinvestment) from portfolio
3,921
Fees and charges collected
-
Dividends and interest reinvested
-
Realised and unrealised gains and losses
8,222
Market value at 31 August
168,430
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		 Property
156,287
3,921
-
-
8,222		 Securities
318,919
(7,699)
(1,280)
482
1,665		 Total
Total
2022
2021
475,206
415,617
(3,778)
(11,773)
(1,280)
(453)
482
1,514
9,887
70,301
480,517
475,206
Total
Total
2022
2021
4,385
5,698
53,697
46,353
86,141
118,296
70,825
72,110
97,039
76,462
312,087
318,919
3,600
3,600
43,550
42,250
92,025
67,400
17,425
32,211
11,830
10,826
168,430
156,287
168,430 312,087

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 25% (2021: 22%) of the investments within the funds held in securities. A further 32% (2021: 44%) 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 57% (2021: 53%) 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 2022, the gross notional value of open forward contracts amounted to £94.5 million (2021: £142.1 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 2022 there were outstanding commitments to fund a further £52.1 million (2021: £45.5 million) in capital calls from private equity funds. These calls will be funded from the sale of liquid assets within the investment portfolio.

-40-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

NOTES TO THE FINANCIAL STATEMENTS

Common Investment Fund

Security assets totalling £312,087,000 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 2022, units within the Christ’s Hospital Common Investment Fund were held as follows:

General Fund
The Wests' Gift for Children Fund
The Daniel Lett Fund
The Hornby Steer Fund
Barker Music 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
%
271,226
86.91
26,798
8.59
3,219
1.03
3,235
1.03
1,321
0.42
1,976
0.63
991
0.32
663
0.21
542
0.17
480
0.15
297
0.10
132
0.04
1,207
0.39
312,087
Securities

Other funds represent the combined assets of 17 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 2022.

Future income from Property Investments

The future minimum lease income under non-cancellable operating leases receivable in less than one year is £6.3m (2021: £4.6m). Amounts receivable between 1 and 5 years are £16.2m (2021: £12.9m) and after 5 years are £36.9m (2021: £35.4m).

13. STOCK
£ 000s
Stock for sale
Consumables		 Group
2022
7
214
221		 Charity
2022
-
199
199		 Group
Charity
2021
2021
16
-
207
194
223
194

-41-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

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
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
Bank loan (see below)
Parental contributions paid in advance
Due within 2 - 5 years
Bank loan (see below)
Due after 5 years
Bank loan (see below)
Loan note issue (see below)		 ______
Group
2022
430
1,769
192
-
-
1,199
1,593
5,183
Group
2022
1,808
10
57
1,442
1,774
-
-
326
92
931
4,574
11,014
Group
2022
25,031
20,000
-
45,031
10
-
21
25,000
20,000
45,031		 _____
Charity
2022
27
-
192
653
2,897
480
711
4,960
Charity
2022
806
-
44
1,442
1,774
350
23
310
15
-
1,957
6,721
Charity
2022
-
-
-
-
-
-
-
-
-
-		 _____
Group
Charity
2021
2021
74
10
837
-
216
216
-
192
-
3,537
1,950
-
1,104
470
4,181
4,425
Group
Charity
2021
2021
828
601
8
-
141
129
1,373
1,373
1,524
1,524
-
214
-
11
302
292
148
10
1,079
-
2,800
1,613
8,203
5,767
Group
Charity
2021
2021
25,042
-
20,000
-
24
24
45,066
24
10
-
24
24
32
-
25,000
-
20,000
-
45,066
24

-42-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

NOTES TO THE FINANCIAL STATEMENTS

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 2022 the properties against which the loan is secured have been valued at £45.2 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.

In September 2020, Bluecoat Sports entered into an unsecured £50,000 bounce back loan with Barclays Bank for a term of 6 years. During the first twelve months, the UK Government will pay interest due under this loan, known as the Business Interruption Payment. No repayment of capital is required during the first 12 months of the loan. Monthly repayments of £833.33 commenced in October 2021, with interest payable in arrears at a fixed rate of 2.5%.

SUMMARY OF MOVEMENTS IN PARENTAL CONTRIBUTIONS IN ADVANCE SUMMARY OF MOVEMENTS IN PARENTAL CONTRIBUTIONS IN ADVANCE
£000s Group and Charity
2022
Balance at 1 September 2021 1,397
New contracts 56
Other amounts in advance 1,337
Amounts used to pay fees (1,342)
Amounts accrued to contract as debt financing cost 2
Amounts refunded to parents (8)
Balance at 31 August 2022 1,442

-43-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

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
Increase / (decrease) in creditors
(Increase) / decrease in debtors
Decrease / (increase) in stocks
Net cash (outflow) from group operating activities		 2022
2021
(12,653)
(6,052)
(6,925)
(7,815)
2,275
2,277
(36)
(58)
(14)
(1)
141
165
140
197
(437)
(551)
3,041
3,190
2,076
(1,912)
(155)
3
2
(3)
(12,545)
(10,560)

18. CAPITAL AND LEASE COMMITMENTS

Capital Commitments

At 31 August 2022 there were capital commitments of £1.5 million (2021: £nil).

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
2022
90
62
152		 Charity
2022
90
62
152		 Group
Charity
2021
2021
100
100
153
153
253
253

-44-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

NOTES TO THE FINANCIAL STATEMENTS

19. AUDITOR'S REMUNERATION
£ 000s
Audit fees
Consultancy and accountancy services		 2022
2021
63
62
10
4
73
66

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 £1,507,000 (2021: £1,470,000) and at the year-end £124,000 (2021: £121,000) was accrued in respect of contributions to this scheme.

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

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 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. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.

-45-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

NOTES TO THE FINANCIAL STATEMENTS

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 a consultation was launched on 24 June 2021 on proposed changes to the cost control mechanism following a review by the Government Actuary. Following a public consultation, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations.

The 2016 cost control valuations have since been completed in January 2022, and the results indicated that there would be no changes to benefits or members contributions required. The results of the cost cap valuation are not used to set the employer contribution rate, and HM Treasury has confirmed that any changes to the employer contribution rate resulting from the 2020 valuations will take effect in April 2024.

Until the 2020 valuation is 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 24.3% of salary, plus an annual deficit-reduction contribution, currently of £331,500, and a £2.2 million lump sum payment by 31 March 2035. The deficit-reduction payments are in accordance with an agreed schedule, allowing the deficit to be eliminated by 31 March 2035. The basis of contribution to the Scheme is specified in a schedule of contributions certified by the actuary and agreed with the Scheme trustees on 30 March 2021. 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. For the purpose of FRS 102, the Scheme valuation has been updated as at 31 August 2022 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.

Under a flexible apportionment arrangement dated 31 August 2022, and in accordance with Regulation 6E(2)(b) of the Employer Debt Regulations, the Principal Employer, Christ’s Hospital took over responsibility for the assets and liabilities of CHEL in relation to the Scheme.

Employer contributions for the year ended 31 August 2022 were £437,000 (2021: £551,000 including back-dated deficit reduction contributions of £145,000).

-46-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

NOTES TO THE FINANCIAL STATEMENTS

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
(b) Changes in the present value of the defined benefit obligation
£ 000s
Opening defined benefit obligation
Employers' service cost
Interest cost
Actuarial (gains) / 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
Interest income
Return on assets less interest income
Employer contributions
Employee contribution
Administration expenses paid
Benefits paid
Fair value of Scheme assets at end of period		 2022
2021
(16,734)
(24,235)
15,518
15,910
(1,216)
(8,325)
2022
2021
24,235
24,257
140
197
403
382
(7,017)
150
(1,053)
(787)
26
36
16,734
24,235
2022
2021
15,910
13,879
265
221
(64)
2,014
437
551
26
36
(3)
(4)
(1,053)
(787)
15,518
15,910

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		 31 August
2023
74
696
(655)
115

-47-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

NOTES TO THE FINANCIAL STATEMENTS

__________
(d) Amounts included within the Statement of Financial Activities
£ 000s
Current service cost
Interest income on assets
Administration expenses paid
Interest on pension liabilities
Total amount charged within net incoming/ (outgoing) funds from operations
(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
Administration expenses paid
Actuarial gains
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		 ______
2022
2021
(140)
(197)
265
221
(3)
(4)
(403)
(382)
(281)
(362)
2022
2021
(8,325)
(10,378)
(140)
(197)
437
551
265
221
(403)
(382)
(3)
(4)
6,953
1,864
(1,216)
(8,325)
2022
2021
39%
39%
38%
40%
21%
18%
2%
3%
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 2022 2021
Discount rate 4.3% 1.7%
Rate of increase in salaries 5.0% 2.9%
Rate of increase of pensions in payment - Pre April 1997 2.3% 2.3%
Rate of increase of pensions in payment - Post April 1997 3.6% 3.3%
Rate of increase of pensions in deferment 3.2% 2.9%
Price inflation 3.7% 3.4%

The 2022 valuation has assumed average mortality in accordance with S3PxA_M tables with allowance for future improvements in line with the CMI (core) 2021 projection model with long-term improvements of 1.5% p.a. The core version of the 2021 model excludes mortality experience from 2020 and 2021 as the CMI considers that these two years are unlikely to be representative of the longer-term mortality trend.

-48-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

NOTES TO THE FINANCIAL STATEMENTS

(h) Projected changes in present value of net defined benefit liability 31 August
£ 000s 2023
Opening net defined benefit liability (1,216)
Amount recognised through profit and loss account (115)
Expected Employer's contributions 505
Closing net defined benefit liability (826)
(i) Sensitivity analysis Change in defined benefit obligation
2022
Increase / decrease discount rate by 0.5% p.a. -7% / +7%
Increase / decrease assumed rate of future inflation 0.5% p.a. +5% / -5%
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 £241,000 (2021: £239,000) were paid in respect of these pension schemes for the year. At the year-end £19,000 (2021: £20,000) was accrued in respect of contributions to these schemes.

21. PROVISIONS FOR LIABILITIES AND CHARGES

£ 000s
At 1 September
Provision utilised
Charged to the statement of financial activities
At 31 August		 Group
2022
75
(75)
222
222		 Charity
2022
75
(75)
222
222		 Group
Charity
2021
2021
775
775
(1,229)
(1,229)
529
529
75
75

The provision relates to legal claims. The opening and closing provision above have been restated in these accounts to recognise the probable cost of defending and concluding those matters, gross of any related recoverable amounts from insurance held by the school.

22. RELATED PARTY TRANSACTIONS

No Council Member has received any remuneration for work done in performance of their duties. Travel, training and subsistence expenses totalling £2,368 (2021: £84) have been refunded to four (2021: two) Council Members in connection with their duties. Donations totalling £23,100 (2021: £66,188) have been received from four (2021: seven) Council Members. £nil (2021: £140,521) was paid by Christ’s Hospital Foundation on an arms-length basis to Land & Water Services Limited, a business whose ultimate parent undertaking is partly owned by James Maclean, a Council Member,

-49-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

NOTES TO THE FINANCIAL STATEMENTS

for dredging works. £4,380 (2021: £nil) was on an arms-length basis to Hill House Farm Partnerships, a business owned by James Maclean 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 £14.2 million (2021: £16.0 million) was granted to Christ’s Hospital from the Foundation in support of current pupils. In addition, Christ’s Hospital gifted back to the Foundation £0.8 million of capital assets. A further £3.0 million (2021: £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 £81,000 (2021: £65,000) in rent to Christ’s Hospital for certain residential properties. Other expenses totalling £6,000 (2021: £5,000) were recharged by Christ’s Hospital to the Foundation.

Christ’s Hospital hired the sports centre and the laundry from Bluecoat Sports for a fee of £330,000 (2021: £323,000) and £10,000 (2021: £10,000) respectively. Other expenses totalling £61,000 (2021: £79,000) 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 £11,100 (2021: £12,300) for the nursery lease and £344,900 (2021: £37,400) for the licence fee. In addition, Christ’s Hospital recharged a total of £390,300 (2021: £9,000) to CHEL relating to other expenses including salaries, finance, cleaning and catering. In addition, with CHEL’s business not yet returning to normal levels following the pandemic no payment under gift aid was made to the School (2021: £nil for the year).

Christ’s Hospital performs administrative services for Christal House Contracts Limited for which it received a management fee of £5,100 (2021: £5,000). In addition, Christal House Contracts charged Christ’s Hospital £86,000 (2021: £78,000) 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 (2021: £25,000).

23. 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.

-50-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

NOTES TO THE FINANCIAL STATEMENTS

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.

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 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 2022

NOTES TO THE FINANCIAL STATEMENTS

23. MOVEMENT OF FUNDS

£ 000s
Balance at
2021
Preserved Endowment
General Fund Capital Account
102,610
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
323
Additional Costs Fund
531
House Fund
290
The Reginald Wood Fund
150
Other Funds
443
116,797
Unapplied Total Return Endowment
General Fund Capital Account
299,774
The Wests' Gift for Children Fund
19,789
The Hornby Steer Fund
1,571
The Daniel Lett Fund
1,756
The RAF Foundationers' Trust Fund
1,068
Miss West Scholar Fund
231
Christ's Hospital Association
242
Additional Costs Fund
174
House Fund
211
The Reginald Wood Fund
149
Other Funds
556
325,521
Expendable Endowments
The Army Foundation
170
TOTAL ENDOWMENT FUNDS
442,488
1 September		 Balance at
2021
102,610
7,531
1,670
1,539
910
800
323
531
290
150
443
1 September		 Incoming
Resources
-
-
-
-
-
-
-
36
-
-
-		 Resources
Expended
-
-
-
-
-
-
-
-
-
-
-		 Gains
-
-
-
-
-
-
-
-
-
-
-		 Balance at
Transfers
31 August
2022
-
102,610
-
7,531
-
1,670
-
1,539
-
910
-
800
-
323
-
567
-
290
-
150
-
443
-
116,833
(11,031)
299,795
(434)
19,440
-
1,582
(5)
1,724
-
1,073
(34)
201
(21)
223
(25)
149
(17)
196
-
148
(15)
536
(11,582)
325,067
(35)
136
(11,617)
442,036
116,797 36 - -
6,772
41
5
5
3
2
1
2
1
-
1		 (5,382)
(104)
(12)
(51)
(8)
(4)
(2)
(5)
(2)
(1)
(12)		 9,662
148
18
19
10
6
3
3
3
-
6
325,521 6,833 (5,583) 9,878
170 1 (1) 1
442,488 6,870 (5,584) 9,879

-52-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

NOTES TO THE FINANCIAL STATEMENTS

£ 000s
Restricted
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
Pension Fund
Organ 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
2021
301
158
145
6
103
64
1,531
118
290
2,716
1,991
62
162
200
500
4
13
2,932
62,385
(8,325)
56,992
4,197
61,189
506,393		 Incoming
Resources
1,264
-
1
3
318
85
2
100
342
2,115
8
1
-
-
-
-
-
9
-
-
9
16,752
16,761
25,746		 Resources
Expended
(1,299)
(7)
(3)
-
(2)
(118)
(12)
(45)
(28)		 Gains/
(Losses)
-
1
1
-
-
-
6
-
-		 Balance at
Transfers
31 August
2022
181
447
(12)
140
-
144
-
9
(244)
175
26
57
(24)
1,503
13
186
(224)
380
(284)
3,041
(500)
1,342
10
68
48
93
200
400
(500)
-
-
4
10
23
(732)
1,930
1,744
61,337
-
(1,216)
1,012
62,051
10,889
3,452
11,901
65,503
-
510,580
(1,514) 8
(157)
(5)
(117)
-
-
-
-		 -
-
-
-
-
-
-
(279)
(2,792)
156		 -
-
6,953
(2,915)
(28,386)		 6,953
-
(31,301) 6,953
(38,399) 16,840

During the year, £11.6 million has been transferred into Unrestricted Funds from the Unapplied Total Return Endowment Funds.

-53-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

NOTES TO THE FINANCIAL STATEMENTS

24. PRIOR YEAR MOVEMENT OF FUNDS

£ 000s
Balance at
2020
Preserved Endowment
General Fund Capital Account
102,610
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
323
Additional Costs Fund
484
House Fund
290
The Reginald Wood Fund
150
Other Funds
433
116,740
Unapplied Total Return Endowment
General Fund Capital Account
244,022
The Wests' Gift for Children Fund
15,151
The Hornby Steer Fund
991
The Daniel Lett Fund
1,181
The RAF Foundationers' Trust Fund
700
Miss West Scholar Fund
70
Christ's Hospital Association
153
Additional Costs Fund
74
House Fund
135
The Reginald Wood Fund
86
Other Funds
381
262,944
Expendable Endowments
The Army Foundation
177
TOTAL ENDOWMENT FUNDS
379,861
1 September		 Balance at
2020
102,610
7,531
1,670
1,539
910
800
323
484
290
150
433
1 September		 Incoming
Resources
-
-
-
-
-
-
-
47
-
-
10		 Resources
Expended
-
-
-
-
-
-
-
-
-
-
-		 Gains
-
-
-
-
-
-
-
-
-
-
-		 Balance at
Transfers
31 August
2021
-
102,610
-
7,531
-
1,670
-
1,539
-
910
-
800
-
323
-
531
-
290
-
150
-
443
-
116,797
(9,425)
299,774
(556)
19,789
(36)
1,571
(7)
1,756
(3)
1,068
(34)
231
(20)
242
(24)
174
(18)
211
-
149
(14)
556
(10,137)
325,521
(39)
170
(10,176)
442,488
116,740 57 - -
7,621
131
16
16
10
5
3
3
2
1
5		 (4,898)
(80)
(10)
(57)
(5)
(3)
(2)
(3)
(1)
(1)
(3)		 62,454
5,143
610
623
366
193
108
124
93
63
187
262,944 7,813 (5,063) 69,964
177 1 - 31
379,861 7,871 (5,063) 69,995

-54-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

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
Pension Fund
Organ 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
2020
485
382
120
123
6
334
58
1,313
55
306
3,182
1,322
50
109
-
-
4
15
1,500
64,134
(10,378)
55,256
1,981
57,237
440,280		 Incoming
Resources
-
972
1
1
-
-
94
26
65
101
1,260
300
-
73
-
-
-
-
373
-
-
373
19,473
19,846
28,977		 Resources
Expended
-
(1,210)
-
(1)
-
(2)
(88)
(55)
(45)
(16)
(1,417)
(99)
(1)
(24)
-
-
-
(2)
(126)
(2,573)
189
(2,510)
(26,039)
(28,549)
(35,029)		 Gains
(Losses)
-
-
37
22
-
-
-
247
-
-
306
-
-
-
-
-
-
-
-
-
1,864
1,864
-
1,864
72,165		 Balance at
Transfers
31 August
2021
(485)
-
157
301
-
158
-
145
-
6
(229)
103
-
64
-
1,531
43
118
(101)
290
(615)
2,716
468
1,991
13
62
4
162
200
200
500
500
-
4
-
13
1,185
2,932
824
62,385
-
(8,325)
2,009
56,992
8,782
4,197
10,791
61,189
-
506,393

-55-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

NOTES TO THE FINANCIAL STATEMENTS

25. 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
Unapplied total return carried forward 31 August
Preserved value at 31 August
Expendable Endowment
Total endowment values at 31 August		 General
Endowment
6,772
9,662
16,434
(2,275)
(3,107)
11,052
(11,031)
299,774
299,795
102,610
-
402,405		 Wests'
Gift
41
148
189
-
(104)
85
(434)
19,789
19,440
7,531
-
26,971		 Other
2022
Funds
Total
20
6,833
68
9,878
88
16,711
-
(2,275)
(97)
(3,308)
(9)
11,128
(117)
(11,582)
5,958
325,521
5,832
325,067
6,692
116,833
136
136
12,660
442,036

26. 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
484,276
1,883
-
61,337
-
-
-
547,496		 Net current
assets
2,760
1,189
3,674
-
1,342
588
-
9,553		 Creditors
2022
due after
Total
more than
one year
(45,000)
442,036
(31)
3,041
(222)
3,452
-
61,337
-
1,342
-
588
(1,216)
(1,216)
(46,469)
510,580

-56-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2022

NOTES TO THE FINANCIAL STATEMENTS

PRIOR YEAR ALLOCATION OF THE NET ASSETS BETWEEN FUNDS £ 000s

Endowment Funds
Restricted Funds
General Funds
Designated Funds:
Capital Fund
Premises Fund
Other Funds
Organ Fund
Pension Liability		 Fixed
assets
478,950
1,765
-
62,385
-
-
-
-
543,100		 Net current
assets
8,538
993
4,296
-
1,991
441
500
-
16,759		 Creditors
2021
due after
Total
more than
one year
(45,000)
442,488
(42)
2,716
(99)
4,197
-
62,385
-
1,991
-
441
-
500
(8,325)
(8,325)
(53,466)
506,393
27. FINANCIAL INSTRUMENTS
£ 000s
Financial assets measured at amortised cost (a)
Financial liabilities measured at amortised cost (b)		 Total
Total
2022
2021
19,506
25,073
(56,786)
(63,423)
(37,280)
(38,350)

(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, rent 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 2022

NOTES TO THE FINANCIAL STATEMENTS

28. 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 / (OUTFLOW)
Actuarial gains on defined
benefit pension scheme
NET MOVEMENT IN FUNDS
Total funds brought forward 1 September
TOTAL FUNDS		 Endowment
Funds
-
-
-
7,803
58
-
10
7,871
-
-
(2,733)
(2,277)
(53)
-
(5,063)
2,808
69,995
(10,176)
62,627
-
62,627
379,861
442,488		 Restricted
Funds
-
609
188
8
194
-
261
1,260
-
-
(5)
-
(202)
(1,210)
(1,417)
(157)
306
(615)
(466)
-
(466)
3,182
2,716		 Unrestricted
Total
Funds
2020
9,952
9,952
-
609
727
915
4
7,815
8,499
8,751
206
206
458
729
19,846
28,977
(437)
(437)
(228)
(228)
(2)
(2,740)
-
(2,277)
(27,882)
(28,137)
-
(1,210)
(28,549)
(35,029)
(8,703)
(6,052)
-
70,301
-
10,791
2,088
64,249
1,864
1,864
3,952
66,113
57,237
440,280
61,189
506,393

-58-

Christ’s Hospital

a company limited by guarantee and registered in England and Wales Company No. 06232556 Registered Charity No. 1120090 VAT Registered 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