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← Christ's Hospital

2024-08-31-accounts

ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 3 1 AUGUST 2024

CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2024

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CONTENTS

CONTENTS
Page
Report of the Trustees 2-22
Auditor’s Report 23-25
Consolidated Statement of Financial Activities 26
Consolidated and Charity Balance Sheets 27
Consolidated Cash Flow 28
Terminology 29
Notes to the Financial Statements 30-59

THE MISSION OF CHRIST’S HOSPITAL

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

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CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2024 REPORT OF THE TRUSTEES

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KEY INFORMATION

Year ended Year ended
31 August 31 August
2024 2023
Financial Results
Investment income £8.8m £7.2m
Investment gains / (losses) £23.8m (£26.6)m
Total return (net of fees and interest) 6.5% (5.3)%
School fee income £12.0m £11.1m
Fundraising income £7.4m £7.2m
Net trading income * £0.5m £0.5m
Closing value of Endowment Funds £419.0m £406.3m
Closing value of Total Funds £486.7m £472.5m
Staff (FTE) 404 387
Teaching 118 116
Teaching support 50 45
Welfare 63 62
Premises, Administration & other 173 164
Total students (at beginning of Academic Year) 874 852

*Net of non-ancillary trading income and expenditure on trading activities

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The Council of Christ’s Hospital (Council) presents its report and audited financial statements for the year ended 31 August 2024 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.

Following a major review of Royal Patronages, Christ’s Hospital was deeply honoured to learn in May 2024 that His Majesty King Charles III had agreed to assume the role of Patron.

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.

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 18. Their financial performance is shown in Note 4(c) on pages 35 and 36.

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 29.

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STRATEGIC REPORT

OBJECTIVES, ACHIEVEMENTS AND PERFORMANCE FOR 2023/24

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

Appoint the new Head Teacher.

A thorough process was conducted with a highcalibre field to appoint a successor to Simon Reid when he retires. Matthew Judd, current Head at Leighton Park School, was selected and will assume the Headship in September 2025.

Appoint the new Treasurer.

A new Treasurer was selected from a competitive field by a panel of Council Members and the Clerk to succeed Christopher Steane. Miriam McKay, Old Blue and communications specialist, became the new Treasurer of Christ’s Hospital from October 2024.

Make further progress across multiple workstreams underpinning the strategic themes and goals set out on page 4 ensuring an evidence-based approach, drawing on external expertise as required. Key workstreams mobilised are: Profile and Fundraising; Admissions and Retention; Financial Model; A level Curriculum; Sports Review; Equity, Diversity and Inclusion (EDI); Staff Package and Model; Staff Development and Wellbeing; Sustainability; Boarding House Development; Sports Expansion Scheme; MIS; Digital and Data Next Stage Strategy. Careers and Commercial Strategy workstreams will be activated later in the year.

Significant progress has been made in all the current workstreams. The most notable achievements are; the announcement of the monarch’s continued patronage of the school and the Loyal Address delivered to The King by the Senior Grecian at Mansion House; the introduction of three new A levels (computer science, psychology, politics); increased scholarship opportunities including for day children; planning for the introduction of VAT on fees and removal of business rates relief alongside ongoing political engagement on these issues; the initiation of a thorough piece of work on our Teacher Operating Model and package; the extension of competitive sport in Years 7 and 8; the completion and publication of our environmental, social and governance (ESG) policy and strategy; the successful move to a new management information system; the addition of a new SLT role – Assistant Head, Digital and Innovation.

Finalise options (including funding options) for the boarding house redevelopment programme for decision in 2024/25.

Significant progress has been made and the school is on track for initial decisions in 2024/25.

Complete enabling works for sports expansion and commence phase 1 construction.

Ground works are underway and facilities are on track for completion in 2025 after a delay to the start date due to additional water neutrality requirements.

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Continue smaller capital development to improve facilities including science laboratories and music facilities alongside forward maintenance programme.

Continuing and now encompassing digital infrastructure improvements to classrooms.

Re-open museum following its successful refurbishment.

Completed and successful stakeholder event held.

Continue the successful marking of the 350[th] anniversary of the Royal Mathematical School.

Continue expansion of Expeditionary Education.

A highly successful programme of events connected to the anniversary raised Christ’s Hospital’s profile and elicited support for new sixth form RMS scholarships championed by the Lord Mayor. These culminated in a special service held at St Paul’s Cathedral in October 2024, attended by the whole school and distinguished guests, to celebrate St Matthew’s Day and the school’s historic connection with the City of London.

Continuing with ongoing investment in necessary facilities. The delivery of this programme has been greatly supported by a groundbreaking donation endowing the Director of Expeditionary Education role.

FUTURE PLANS

Objectives for the 2024/25 financial year:

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Academic achievements 2024

A greater than average proportion of the student population at CH comes from backgrounds where considerable personal challenge and difficulty is negotiated in achieving academic success. This year is no different, but the challenges continue to grow in complexity and interdependency. For many individuals, therefore, their results have far more significance and are celebrated to a greater extent than the value of the very highest grades. Overall, the results across GCSE were an uplift on previous years, whereas the A-Level results, whilst strong in the mid-range grades, saw some decline in the highest level grades (A* or A). There are a number of different work strands in place to strengthen interventions and monitoring alongside the implementation of new plans to encourage a return to our usual top end results.

A2 results

At A level, 68.8% of the grades this year were at A to B (2023: 67.2%), 35.2% of the A-Level grades gained were equivalent to A or A (2023: 40.3%) and 9.0% of the grades were at A* (2023: 13.9%).

The average UCAS points per A level candidate was 126 (2023: 131) rising to 138 UCAS points per candidate when the Extended Project Qualification (EPQ) results were included. The overall A2 pass rate dropped slightly to 99.1% (2023: 99.2%) due to a couple of individuals with extreme challenges.

At the top end of this year’s A2 cohort there were some very strong results, with 18% (24 students of the cohort of 133), achieving a minimum of one A grade and 38 of the 133 students, 29% (2023: 30%), achieving overall grades equivalent to AAA or higher. Of 423 grades, 150 grades were A or above but only 38 grades were awarded at A level. The top individual secured two A* and three A grades.

University places

Despite the continued highly competitive university climate, the sixth form team prepared students well: 78% (2023: 66%) of those students who applied for further study were placed in their first-choice course at university and a further 19% (2023: 15%) took up their insurance place. Popular universities included University of Leicester (11), University of Manchester (9), University of Nottingham (7), Cardiff University (6), University of Birmingham (5) and King’s College London (5). Courses in economics and finance, computer science, engineering, politics and international relations and biochemistry remain the most popular areas for students.

(I)GCSE Results

In contrast to the A level results, those at (I)GCSE level were an improvement on last year and broadly very positive when compared to previous years. As expected, the results remain very positive compared to the national picture, with an overall pass rate of 96.5% (2023: 96.0%). There was an increase to 16.3% (2023: 13.8%) of all grades awarded at Level 9, 40.6% (2023: 34.8%) at Level 8 and above, equivalent to an A*, and 62.4% (2023: 58.2%) were at Level 7 to 9.

Highlights include:

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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 students, 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 four applicants for every bursary place available at the school during the year.

From the total of 874 students in the school at the beginning of the year, 690 (79%) received financial support towards the costs of their education with 114 (13%) of these students being entirely funded by the Foundation. These figures also include staff discounts which were received by the families of 18 students (2%).

Christ’s Hospital is aware of the impact of inflation on the disposable income of the families of many of our students and, following the Government’s budget announcements on 30 October 2024, concerns over the introduction of VAT on private school fees. To respond to this, we have again reviewed and made changes to the means assessment process in the year to ensure that an education at Christ’s Hospital remains affordable, and have continued to set aside funds for those families experiencing significant hardship. We are grateful for donations that have enabled funding assistance, for areas such as travel to the school, student devices and sportswear.

Christ’s Hospital regularly opens up its site to local organisations including schools, sports clubs and choirs. The school runs a diverse range of events for groups and individuals, including weekly lunchtime concerts, a variety of termly theatrical performances and musical events, weekly historic tours and community lunches.

Each term events, challenges and workshops are held for local primary schools. Christ’s Hospital was delighted to welcome over 1,800 visiting pupils to these events over the last 12 months. Our annual Choral Day is a favourite for the visiting schools, and we are looking forward to welcoming over 250 Year 5s to this event in 2025.

Our extensive community action programme which was started in 1987 and involves over 200 of our students, organises more than 30 placements on a weekly basis throughout the academic year

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including in nursery, primary and special needs schools, residential homes for the elderly and charity shops.

For more information about the work of Christ’s Hospital, please read the Impact Report 2023/24 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 from page 15 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, performance and staff morale. Staff from across the school are invited to regular social events with Council Members. Council and committee meetings often begin with a presentation by a departmental head, giving these 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. Council Members are invited to attend the summer term meeting of the Inclusion Working Group of students and staff; the Chair of the EDI Committee is invited to every meeting.

Christ’s Hospital is an equal opportunities employer and welcomes and encourages applications by candidates from diverse backgrounds. This year the EDI Committee has received reports on work with international students and on the school’s response to government guidance on working with gender-questioning students. The Committee also receives regular reports on the work of the EDI Lead including partnerships with external organisations.

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. Recent additions to the policy library include policies on the menopause and staff with caring responsibilities.

Teaching staff and matrons are represented on 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

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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, and termly meetings for all staff. Each term begins with the Head Teacher meeting with all staff, followed by training events. The Chief Operating Officer (COO) meets regularly with her management team both individually and collectively. The COO, Finance Director and Business Manager provide updates and training on the school’s financial planning and budget procedures to academic and support staff.

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 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.

Christ’s Hospital takes a zero tolerance approach towards fraud, bribery and corruption. It is committed to compliance 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.

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.

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ENERGY AND EMISSIONS REPORT

In the year we took the following energy efficiency actions:

2024 2023
UK energy use1
(MWh) 15,281 16,457
Associated greenhouse gas emissions2
Tonnes CO2 equivalent (tCO2e) 2,862 3,048
Intensity ratio
Emissions per FTE staff member 7.08 7.88

FINANCIAL REVIEW AND RESULTS FOR THE YEAR ENDED 31 AUGUST 2024

Income and expenditure

The details of income and expenditure are shown in the Consolidated Statement of Financial Activities on page 26.

Investment returns recovered from the significant losses, particularly in the property portfolio, posted in 2023. Further information is set out on page 11.

Financial results, including school fees, were broadly in line with expectations in the year. Trading activities, principally from the Easter and summer let programmes, generated a surplus of £500,000. However, this was tempered by continued inflationary pressures across the school’s cost base, in

1 UK energy use covers the school, Sports Centre and trading activities across the group and has been calculated using the methodology set out Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance. March 2019 (Updated Introduction and Chapters 1 and 2) aligned with the Corporate Green House Gas Protocol .

2 Associated greenhouse gas emissions have been calculated under ‘Emissions calculation factors: the UK Government GHG Conversion Factors for Company Reporting 2024’.

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particular staff costs, utilities and food. Whilst utilities costs decreased towards the end of the financial year other cost pressures remain, particularly following the Government’s budget announcements on 30 October 2024, including the introduction of VAT on private school fees, removal of business rates relief and increased employer national insurance contributions. With the boarding house redevelopment programme expected to commence within the next five years, management are monitoring the changing economic environment closely.

Further detail on the financial performance of subsidiary and related entities is set out on page 13.

Investment performance

The total return on the investments was a gain of £32.6 million (2023: a loss of £19.4 million) which was made up of dividend, interest and rental income of £8.8 million (2023: £7.2 million) and investment gains of £23.8 million (2023: losses of £26.6 million).

Securities and other assets
Investment properties including land
Total invested assets		 2024
£m
303.4
152.3
455.7		 Total
Return
8.4%
2.8%
6.5%		 2023
£m
Total
Return
296.8
(0.4)%
145.1
(15.3)%
441.9
(5.3)%

The securities portfolio returned +8.4% in sterling terms (net of all fees) this financial year against a backdrop of strong public equities market performance (+23%) and muted UK government bond performance (+4%). Equity market performance over the period was predominantly driven by the largest seven technology stocks which appreciated strongly (+46% weighted average performance). The portfolio had exposure to these stocks over the period, but this was at lower levels of concentration than the global equities index due to the portfolio’s multi-asset class construction; for example, 32% of the portfolio’s assets are invested in private equity which did not benefit from the rally seen in public equities over last year. However, over the longer term the private equity allocation has delivered significant outperformance relative to public equities generating a return of +14% vs +10% per annum since inception over the last 15 years. The longer-term performance of the securities portfolio has also been strong with a return of +7.2% per annum in Sterling terms net of all fees over the last five years.

UK commercial real estate sector values reached a trough by the end of the 2023 calendar year arising from the significant downturn in the market following the September 2022 “Truss Mini-Budget”. 2024 has seen a slow recovery in values and by the year end the Christ’s Hospital property portfolio delivered an annual total return of +2.8% against the MSCI monthly property index of +1.51%.

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 £7.4 million (2023: £7.2 million) exceeded the £4 million target for the year. This performance was due primarily to higher income than expected from individual major donors. Income from philanthropic partnerships continued to play a central role, including support from the Tazaki Foundation, John Lyon’s Charity and Buttle UK. Once again, support from Old Blues, parents and other friends was vital to sustaining the charitable mission, with 1,442 donating in the year.

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During the year an appeal was launched with the support of the Lord Mayor of London to establish a Royal Mathematical School Scholarship programme. Over £580,000 was donated by the end of August and two in-perpetuity Royal Mathematical School Scholarships were established.

The Expeditionary Education programme appeal continued in the year, with the highlight being a groundbreaking donation that endowed the new Director of Expeditionary Education role.

Following several years of running a Giving Tuesday appeal, it was decided to introduce a Christ’s Hospital Giving Day with full involvement of students and staff. The initiative saw excellent support from Old Blues, parents and other supporters with 587 individuals contributing £164,000 to Blue Fund Bursaries, student hardship and the Expeditionary Education programme.

Thanks are recorded to those Donation Governors who completed their pledges during the year and 316 Old Blues and other friends who have contributed to the Blue Fund Bursary programme, 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 2024 received no (2023: 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 2024 in accordance with FRS 102 showed the scheme to now be £0.1 million in surplus (2023: deficit of £0.3 million). However, as the Trustees of the Scheme have first priority in deciding how to apply any surplus, and therefore Christ’s Hospital may not recover this surplus through reduced contributions or refund, the asset has not been recognised in these financial statements.

Following the detailed actuarial valuation which took place as at March 2023 and was agreed by the Scheme trustees in December 2023, employer contribution levels were revised as part of the funding plan agreed with the Scheme trustees. The deficit reduction payments agreed at that time had the objective of ensuring the Scheme would not be in deficit by 31 December 2028. Further details of the scheme and contribution levels are shown in Note 20. Council is aware of the volatile nature of the FRS 102 valuation and that this 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.

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Subsidiary and Related Companies

Christ’s Hospital Foundation (the Foundation)

The Foundation reported net income and capital inflow for the year of £12,842,000 (2023: net income and capital outflow of £38,108,000) and actuarial losses on the defined benefit pension scheme of £90,000 (2023: gains of £579,000). See investment performance section on page 11 for commentary on key movements.

Bluecoat Sports

Income for the year was £2,185,000 (2023: £1,887,000) and the charitable company reported a net income for the year of £91,000 (2023: £148,000). Bluecoats continues to recover after the challenges presented by the pandemic. Membership numbers are back above pre-pandemic levels, and this combined with careful control of costs has helped to mitigate against current inflationary pressures. Focus has been on continuing to grow Bluecoats’ activities, particularly for families, young people and those with health conditions. Introduction of additional sports coaching courses, availability of spaces for children’s birthday parties and pickleball sessions are just some of the new activities introduced over the last 12 months. Retention of existing members remains a priority. A successful members’ day was held last year and will be repeated in the new year once the extended car park has been completed.

Positive feedback has been received from members on the refurbishment of the café area which was completed during the year, and usage of the café has increased as a result. The social aspect of membership at Bluecoats is a notable benefit for many members; improving the user experience of the area is expected to aid retention.

Christ’s Hospital Enterprises Limited (CHEL)

Turnover for the year was £1,457,000 (2023: £1,363,000) generating a trading profit of £25,000 (2023: £25,000). The results for this year were better than expected with the majority of beds being filled for the whole of July and August. However, this was tempered by the continued impact of inflationary pressures on a number of cost lines, particularly food and staff. 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 £13,164 (2023: £7,986) for the nursery lease and £509,934 (2023: £477,034) for the master agreement and intellectual property rights licence fee. Whilst a profit has been made during the year, it is not yet sufficient to enable the Company to make a payment under Gift Aid. Council has confirmed that, with the company still recovering following the pandemic, 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 1,028Mwh of electricity in the year to 31 August 2023 (2023: 1,207Mwh). Sales of electricity generated and feed-in-tariff grants earned amounted to £191,000 (2023: £206,000). Over the company made a loss after depreciation of £10,000 (2023: profit £20,000).

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 students are treated fairly and equitably, while enabling Council to access capital gains on the investments. The Spending Rule restricts annual expenditure reliant on the

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Endowment to a maximum of 3.75% of the net value of the Endowment (measured on a twelve trailing quarter average basis).

The Spending Rule has two main objectives:

Reserves policy

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

Total funds at 31 August 2024 were £486.7m (2023: £472.5m). This total comprised £419.0m of endowed funds (2023: £406.3m), restricted funds of £4.0m (2023: £3.2m) and unrestricted funds (net of Pension Reserve) of £63.7m (2023: £63.0m).

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 £1.6m at 31 August 2024 (2023: £2.1m). 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 £59.5m which represents the net book value of fixed assets used for operational purposes. The Premises Fund of £2.1m 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.

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OUR PRINCIPAL RISKS AND UNCERTAINTIES

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

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

Health, safety and welfare of our students

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 and attended by the Council Member with responsibility for safeguarding and boarding, 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 student diversity and on developments in EDI practice. The school’s EDI Lead worked with students and staff on inclusion issues in the year.

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 students 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 students. 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.

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Cyber security

The school remains vigilant to the risk to the security of its data and has invested in improvements to systems to support and protect its network, including the introduction of multi-factor authentication for remote users and regular penetration testing. Staff and students receive regular reminders of the need to maintain security and of the need to act safely online.

Financial sustainability

Factors remain that may have an impact on the charity, in common with other businesses/ institutions, over a number of years. Principally, rising school costs following the change in government and the impact of continued global events on investment markets, including the war in Ukraine and tensions in the Middle East. Whilst the full impact is unknown, Council has reviewed the position carefully with a view to ensuring the ongoing provision of schooling for the students, 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. Despite the introduction of VAT on private school fees, demand for school places remains healthy, with 857 students enrolled for the academic year 2024/25. 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 has therefore prepared the financial statements on a going concern basis.

Pension Scheme

Council keeps under review the financial implications of any deficit on the Christ’s Hospital Pension Scheme. Currently, on an FRS102 basis, the fair value of the Scheme’s assets exceed the present value of future obligation but uncertainty remains. Management will continue to work closely with the Scheme trustees and actuarial advisers to monitor the financial performance of the Scheme.

NON RECENT CASES OF ABUSE

During the year, the school continued to work with victims and survivors of abuse to identify ways in which it can best ensure that past events are acknowledged and remembered. An event is planned at the school in May 2025. The school remains confident that nothing has emerged from the completed cases that presents any risk to the safety and wellbeing of students today. A former student contacted the school in 2023 with an allegation against a former member of staff, who was charged in January 2024 with two offences against the student in the early 1990s, to which he pleaded not guilty. After a trial at Lewes Crown Court in November 2024, he was convicted and sentenced to four years in prison.

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 20. There are thirteen 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

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CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2024 REPORT OF THE TRUSTEES

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monitors the raising of funds by means of trading, controls spending and ensures that the processes for the admission of students 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 reviews governance structures and processes against the Charity Governance Code on an annual basis, recommending improvements as necessary to ensure that Council continues to operate in line with recommended and best practice.

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 21).

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 to reward, 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.

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CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2024 REPORT OF THE TRUSTEES

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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 20 new Donation Governors were elected. At the end of the year there were 488 Donation Governors.

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

Volunteers

Volunteers play an essential role in the operations of Christ’s Hospital. In addition, to those who serve on Council and committees, development volunteers and appeal leaders help with fundraising and cultural events during the year. 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 student 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 students 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.

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CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2024 REPORT OF THE TRUSTEES

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

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

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

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

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

AUDITOR

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

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CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2024 REPORT OF THE TRUSTEES

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REFERENCE AND ADMINISTRATIVE INFORMATION Structure, Governance and Management

Patron

His Majesty the King

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:

directors of the charitable company. Council Members who served in
subsequently are detailed below:		 office during the year or office during the year or
Constituency/
Committee Membership
Christopher Steane, MA, LLB, Treasurer and Chair (to 4 October 2024)
(c)		 2,4,6
Miriam McKay, BA, Treasurer and Chair (from 5 October 2024) (a) 1,4,6
Nick Atkinson, MA, FCCA (c) 5,8
Jamel Banda, CC, BA (Hons) (b) 6
Alexander Barr, MA, ACSI (from 13 March 2024) (b) 4
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
Neil Maidment, MA, FCII (a) 4,5
Robert Palmer, BA, MA (c) 1,4
Pamela Roberts, FRSA, FRHistS, JP (to 18 April 2024) (c) 7,8
Jenny Williams, BSc(Hons), PGCE (a) 3,8
John Yeomans, MA, FIET, CEng (c) 1,2

Constituencies by which Members are nominated

Committee Membership

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CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2024 REPORT OF THE TRUSTEES

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KEY MANAGEMENT PERSONNEL (SENIOR LEADERSHIP TEAM)

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

Head Teacher Simon Reid, BA Chief Operating Officer and Clerk Jenny Baxter, BSc Deputy Head Ruth Brading, BA, MA, PhD Deputy Head Luke Walters, BA, MA Assistant Head, Academic Marcus Medley, PhD, MSci Assistant Head, Admissions Andrew Wines, PhD, MA Assistant Head, Broader Curriculum Sean O’Boyle, BSc, ARCS (to 31 August 2024) Chris Apaloo, BA, MSc (from 1 September 2024) Assistant Head, Boarding Simon Young, MSc, MEd Assistant Head, Digital & Innovation Craig Donoghue, MSc, BSc, MInstP (from 1 September 2024) Designated Safeguarding Lead Deborah Stamp, BEd

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CHRIST’S HOSPITAL YEAR ENDED 31 AUGUST 2024 REPORT OF THE TRUSTEES

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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

Swiss Life Asset Managers UK Limited 55 Wells Street London W1T 0AY

Investment Adviser

Partners Capital LLP 5 Young Street London W8 5EH

Auditor

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

Pension Scheme Adviser and

Administrator

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

Banker

Barclays Bank plc 2 Carfax Horsham West Sussex RH12 1DN

Property Valuer

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

Solicitors

Forsters LLP 22 Baker Street London W1U 3BW

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

Land Agent

Savills (UK) Limited Exchange House Petworth GU28 0BF

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 28 February 2025, including in its capacity as Company Directors approving the Strategic Report contained therein, and signed on its behalf by:

Miriam McKay

Treasurer and Chair of the Council of Christ’s Hospital

28 February 2025

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CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

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 2024 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 Trustees’ 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.

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CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

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 19, 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.

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CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

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.

NSM

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

London

Date 13 March 2025

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CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

_________________

£ 000s
Endowment Restricted
Funds
Funds
Notes
INCOME AND ENDOWMENTS FROM:
Charitable Activities
School fees receivable
6
-
-
Sports centre income
-
1,757
Ancillary trading income
6
-
132
Investments
Investment income
5
8,343
94
Fundraising
Donations & legacies
3
3,183
1,114
Other sources
Non-ancillary trading income
4b
-
-
Other income
7
4
5
TOTAL INCOME AND ENDOWMENTS
11,530
3,102
EXPENDITURE ON:
Raising Funds
Fundraising and development
9a
-
-
Trading activities
4b
-
-
Investment management
8
(2,973)
(4)
Financing
9a
(2,279)
-
Charitable Activities
Costs of providing education
9a
(142)
(249)
Sports centre expenditure
9a
-
(1,942)
TOTAL EXPENDITURE
(5,394)
(2,195)
NET INCOMING/ (OUTGOING) FUNDS FROM OPERATIONS
BEFORE TRANSFERS AND INVESTMENT GAINS
6,136
907
Gains/ (losses) on investments
12
23,710
133
Transfers between funds
23
(17,236)
(184)
NET INCOME AND CAPITAL INFLOW/ (OUTFLOW)
12,610
856
Actuarial (losses)/ gains on defined benefit
20e
-
-
pension scheme
NET MOVEMENT IN FUNDS
12,610
856
Total funds brought forward 1 September
406,361
3,159
TOTAL FUNDS CARRIED FORWARD
418,971
4,015		 Unrestricted
Funds
11,980
-
1,015
355
3,110
1,573
342
18,375
(590)
(1,037)
-
-
(33,387)
-
(35,014)
(16,639)
-
17,420
781
(90)
691
63,015
63,706		 Total
Total
2024
2023
11,980
11,081
1,757
1,483
1,147
839
8,792
7,207
7,407
7,150
1,573
1,488
351
289
33,007
29,537
(590)
(557)
(1,037)
(960)
(2,977)
(4,357)
(2,279)
(2,275)
(33,778)
(31,837)
(1,942)
(1,595)
(42,603)
(41,581)
(9,596)
(12,044)
23,843
(26,580)
-
-
14,247
(38,624)
(90)
579
14,157
(38,045)
472,535
510,580
486,692
472,535

The notes on pages 30 to 59 form part of these financial statements.

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CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

CONSOLIDATED AND CHARITY BALANCE SHEETS

____________

Consolidated Consolidated Charity Charity
£ 000s 2024 2023 2024 2023
Notes
FIXED ASSETS
Tangible assets 11 65,163 64,926 2,023 2,128
Investments 12 455,673 441,906 - -
520,836 506,832 2,023 2,128
CURRENT ASSETS
Stock 13 247 213 235 193
Debtors
- due within one year 14 5,223 5,354 7,047 4,696
Cash at bank and in hand 17,061 16,396 4,600 4,631
22,531 21,963 11,882 9,520
CREDITORS
Due within one year 15 (10,494) (10,619) (6,583) (6,423)
NET CURRENT ASSETS 12,037 11,344 5,299 3,097
TOTAL ASSETS LESS CURRENT 532,873 518,176 7,322 5,225
LIABILITIES
CREDITORS
Due after more than one year 16 (45,011) (45,021) - -
Pension scheme liability 20 - (250) - -
Provisions for liabilities and charges 21 (1,170) (370) (1,170) (370)
NET ASSETS - INCLUDING 486,692 472,535 6,152 4,855
PENSION SCHEME LIABILITY
REPRESENTED BY:
Endowment Funds 23 418,971 406,361 - -
Restricted Funds 23 4,015 3,159 810 373
Unrestricted Funds 23 63,706 63,265 5,342 4,482
Pension Reserve 23 - (250) - -
TOTAL FUNDS 486,692 472,535 6,152 4,855

The net movement in funds for the financial year dealt with in the charity only financial statements was £1,297,000 inflow (2023: £707,000 outflow).

The notes on pages 30 to 59 form part of these financial statements.

Approved by the Council of Christ’s Hospital on 28 February 2025 and signed on its behalf by:

Miriam McKay

Treasurer and Chair of the Council of Christ’s Hospital 28 February 2025

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CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

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		 2024
2023
(15,658)
(14,796)
8,792
7,207
(3,451)
(1,242)
2
2
19,180
16,227
3,050
8,167
(518)
(527)
(11,636)
(11,836)
15,419
17,998
(2,279)
(2,275)
3,183
306
904
(1,969)
665
1,233
16,396
15,163
17,061
16,396

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

The notes on pages 30 to 59 form part of these financial statements

-28-

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 students 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).

-29-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

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 22.

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 22, all other entities have their registered or Principal 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. As permitted by s408 of the Companies Act 2006, no separate Statement of Financial Activities is presented in respect of the parent charitable company. The net result of the parent charitable company is disclosed in the footnote to the Consolidated and Charity Balance Sheets.

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

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 continued economic pressures including rising school costs following the change in government and the impact of current global events, including the war in Ukraine and tensions in the Middle East, on investment markets. Council has reviewed the position carefully with a view to ensuring the ongoing provision of schooling for the students, 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 more than 850 students enrolled for the academic year 2024/25. 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

-30-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

NOTES TO THE FINANCIAL STATEMENTS

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.

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 material impairment in the value of these investments with market indices having not significantly changed from the last quarterly valuation to 31 August 2024.

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. 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).

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.

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. Income from pecuniary interests is recognised when probate has been granted and Christ’s Hospital has been advised of the amount stipulated in the Will. Income from residuary interests is recognised when probate has been granted and we have received the approved accounts or where notification of impending distribution has been received. 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.

-31-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

NOTES TO THE FINANCIAL STATEMENTS

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.

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.

-32-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

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.

-33-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

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.

-34-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

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
1,646
10
-
1,527
-
3,183		 Restricted
Funds
-
-
56
368
690
1,114		 Unrestricted
Funds
846
1,438
-
372
454
3,110		 Total
Total
2024
2023
2,492
1,096
1,448
4,945
56
123
2,267
523
1,144
463
7,407
7,150

Legacies notified as at the year-end but not meeting the criteria for recognition amounted to £0.6 million.

4. INCOME AND EXPENDITURE

(a) Charity

The charity had total income of £37,341,000 (2023: £32,446,000) and total expenditure of £36,044,000 (2023: £33,153,000) 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
10
1,457
106		 Total
Total
2024
2023
10
12
1,457
1,363
106
113
1,573
1,488
912
855
125
105
1,037
960
1,573
912
125
1,037

(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 page 13 of the Report of the Trustees.

-35-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

NOTES TO THE FINANCIAL STATEMENTS

2024

2024
£ 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)
2023
£ 000s
Results
Income & gains
Expenditure
Net income / (loss)
Brought forward at 1 September
Carried forward at 31 August
Balance sheet
Total assets
Total liabilities
Funds / (deficit)
5. INVESTMENT INCOME
£ 000s
Property
Securities
Interest		 Endowment
Funds
7,721
590
32		 The
Foundation
38,458
(25,706)
12,752
467,381
480,133
532,686
(52,553)
480,133
The
Foundation
(11,901)
(25,628)
(37,529)
504,910
467,381
519,570
(52,189)
467,381
Restricted
Funds
-
3
91
94		 Bluecoat
Sports
2,185
(2,094)
91
595
686
860
(174)
686
Bluecoat
Sports
1,887
(1,739)
148
447
595
800
(205)
595
Unrestricted
Funds
-
-
355
355		 CHEL
Christal
House
Contracts
Limited
1,461
195
(1,436)
(205)
25
(10)
(142)
(152)
(117)
(162)
612
1,124
(729)
(1,286)
(117)
(162)
CHEL
Christal
House
Contracts
Limited
1,366
208
(1,341)
(188)
25
20
(167)
(172)
(142)
(152)
769
1,240
(911)
(1,392)
(142)
(152)
Total
Total
2024
2023
7,721
6,318
593
527
478
362
8,792
7,207
8,343

-36-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

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
Ancillary trading
£ 000s
Shop income
Music fees
Exam fees
House funds
Sundry parental charges
Event and sponsorship income
Admission fees
Other		 Restricted
Funds
-
-
-
86
9
-
-
37		 Unrestricted
Funds
36,269
(24,743)
11,526
454
11,980
Unrestricted
Funds
4
397
24
-
514
22
49
5		 Total
Total
2024
2023
36,269
32,660
(24,743)
(22,042)
11,526
10,618
454
463
11,980
11,081
Total
Total
2024
2023
4
4
397
353
24
19
86
83
523
276
22
19
49
47
42
38
1,147
839
132 1,015

7. INCOME FROM OTHER SOURCES

£ 000s
Rental income - staff housing
Wests' Pensioners charity service
charge
Profit on disposal of fixed assets
Other miscellaneous income		 Endowment
Funds
-
-
-
4		 Restricted
Funds
-
-
-
5		 Unrestricted
Funds
270
28
2
42
342		 Total
Total
2024
2023
270
238
28
27
2
2
51
22
351
289
4 5

-37-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

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
2,219
754
2,973
Staff
Costs
401
181
-
-
582
9,856
3,770
2,735
2,336

-
18,697
1,184
19,881
20,463		 Restricted
Funds
-
4
4
Other
Costs
189
780
2,977
2,279
6,225
1,264
1,746
6,265
2,079
710
12,064
637
12,701
18,926		 Unrestricted
Funds
-
-
-
Depreciation
-
76
-
-
76
52
302
2,310
353
-
3,017
121
3,138
3,214		 Total
Total
2024
2023
2,219
1,900
758
2,457
2,977
4,357
Total
Total
2024
2023
590
557
1,037
960
2,977
4,357
2,279
2,275
6,883
8,149
11,172
10,257
5,818
5,229
11,310
10,449
4,768
5,225
710
677
33,778
31,837
1,942
1,595
35,720
33,432
42,603
41,581

Support costs include governance costs of £206,000 (2022: £194,000).

(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
2024
2023
142
101
556
568
12
8
710
677

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

-38-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

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
118
8,432
50
1,424
63
2,516
88
2,735
42
2,336
6
401
33
1,184
4
181
404
19,209
1,254
20,463
15,181
1,495
2,492
41
1,254
20,463
1,178
2024		 Number
Cost
(FTE)
£ 000s
116
7,887
45
1,319
62
2,174
87
2,605
39
2,337
5
307
29
970
4
158
387
17,757
1,149
18,906
13,981
1,365
2,370
41
1,149
18,906
1,085
2023

The average head count (being number of staff employed not adjusted for FTE) was 579 (2023: 556). The full time equivalent number of employees by category is disclosed in the table above. Salaries and wages include £23,000 (2023: £58,000) 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 (2023: 9) as set out on page 21. The number of employees whose total emoluments for the period exceeded £60,000 was 50 (2023: 38) in the following bands:

2024 2023
£60,001 to £70,000 34 26
£70,001 to £80,000 8 4
£80,001 to £90,000 1 3
£90,001 to £100,000 3 2
£100,001 to £110,000 1 -
£110,001 to £120,000 - 1
£130,001 to £140,000 1 1
£140,001 to £150,000 1 -
£160,001 to £170,000 - 1
£170,001 to £180,000 1 -

Information on volunteers is shown on page 18.

-39-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

NOTES TO THE FINANCIAL STATEMENTS

11. TANGIBLE FIXED ASSETS
£ 000s
Land &
Buildings
(a) Group
Cost or valuation
At 1 September 2023
83,961
Additions at cost
93
Disposals at cost
-
At 31 August 2024
84,054
Depreciation and amortisation
At 1 September 2023
28,679
Charge for the period
1,893
Accumulated on disposals
-
At 31 August 2024
30,572
Net book value at 31 August 2024
53,482
Net book value at 31 August
2023
55,282
(b) Charity
Cost or valuation
At 1 September 2023
Additions at cost
Transfer to Foundation
Disposals at cost
At 31 August 2024
Depreciation and amortisation
At 1 September 2023
Charge for the period
Accumulated on disposals
At 31 August 2024
Net book value at 31 August 2024
Net book value at 31 August
2023		 11. TANGIBLE FIXED ASSETS
£ 000s
Land &
Buildings
(a) Group
Cost or valuation
At 1 September 2023
83,961
Additions at cost
93
Disposals at cost
-
At 31 August 2024
84,054
Depreciation and amortisation
At 1 September 2023
28,679
Charge for the period
1,893
Accumulated on disposals
-
At 31 August 2024
30,572
Net book value at 31 August 2024
53,482
Net book value at 31 August
2023
55,282
(b) Charity
Cost or valuation
At 1 September 2023
Additions at cost
Transfer to Foundation
Disposals at cost
At 31 August 2024
Depreciation and amortisation
At 1 September 2023
Charge for the period
Accumulated on disposals
At 31 August 2024
Net book value at 31 August 2024
Net book value at 31 August
2023		 Work in
Progress
524
1,889
-		 Office
Equipment
2,975
325
(12)		 Plant &
Equipment
10,391
1,118
(100)		 Motor
Vehicles
149
26
(10)		 Historic
Total
Assets
5,339
103,339
-
3,451
-
(122)
5,339
106,668
-
38,413
-
3,214
-
(122)
-
41,505
5,339
65,163
5,339
64,926
Total
8,469
1,259
(395)
(91)
9,242
6,341
969
(91)
7,219
2,023
2,128
84,054 2,413 3,288 11,409 165
-
-
-		 2,193
346
(12)		 7,426
959
(100)		 115
16
(10)
30,572 - 2,527 8,285 121
53,482 2,413 761 3,124 44
55,282 524 782 2,965 34
Work in
Progress
200
195
(395)
-		 Office
Equipment
2,809
325
-		 Plant &
Equipment
5,311
713
-
(81)		 Motor
Vehicles
149
26
-
(10)
- 3,134 5,943 165
-
-
-		 2,027
346
-		 4,199
607
(81)		 115
16
(10)
- 2,373 4,725 121
- 761 1,218 44
200 782 1,112 34

-40-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

NOTES TO THE FINANCIAL STATEMENTS

12. FIXED ASSET INVESTMENTS
£ 000s
Property
Investments at market value
Market value at 1 September
145,084
Net Investment in / (disinvestment from) portfolio
8,586
Fees and charges collected
-
Dividends and interest reinvested
-
Realised and unrealised (losses) / gains
(1,353)
Market value at 31 August
152,317
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
145,084
8,586
-
-
(1,353)		 Securities
296,822
(18,420)
(760)
518
25,196		 Total
Total
2024
2023
441,906
480,517
(9,834)
(10,120)
(760)
(2,438)
518
527
23,843
(26,580)
455,673
441,906
Total
Total
2024
2023
7,796
4,134
55,856
51,781
81,563
81,546
59,058
62,777
99,083
96,584
303,356
296,822
20,080
11,030
36,850
40,750
62,150
61,100
19,834
17,739
13,403
14,465
152,317
145,084
152,317 303,356

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 30% (2023: 27%) of the investments within the funds held in securities. A further 27% (2023: 30%) 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 58% (2023: 57%) 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 2024, the gross notional value of open forward contracts amounted to £77.7 million (2023: £76.8 million). These contracts have been revalued at the applicable year-end rates and the resulting unrealised gains or losses have been included within the overall value of the investments above.

-41-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

NOTES TO THE FINANCIAL STATEMENTS

At 31 August 2024 there were outstanding commitments to fund a further £48.8 million (2023: £51.6 million) in capital calls from private equity funds. These calls will be funded from the sale of liquid assets within the investment portfolio.

Common Investment Fund

Security assets totalling £303,356,000 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 2024, 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
The RAF Foundationers' Fund
Barker Music Fund
The Ward Blakely Fund
Miss West Scholar Fund
Additional Costs Fund
Christ's Hospital Association
House Fund
The Reginald Wood Fund
Dadson
Other Funds		 £000s
%
259,106
85.41
28,231
9.31
3,256
1.07
3,495
1.15
2,135
0.70
1,427
0.47
1,402
0.46
968
0.32
717
0.24
544
0.18
477
0.16
299
0.10
230
0.08
1,069
0.37
303,356
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 Ms K Masefield Baker, MRICS of Savills (UK) Limited as at 31 August 2024.

Future income from Property Investments

The future minimum lease income under non-cancellable operating leases receivable in less than one year is £6.5m (2023: £6.6m). Amounts receivable between one and five years are £16.1m (2023: £14.6m) and after five years are £49.1m (2023: £42.7m).

-42-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

NOTES TO THE FINANCIAL STATEMENTS

_________
13. STOCK
£ 000s
Stock for sale
Consumables
14. DEBTORS DUE WITHIN ONE YEAR
£ 000s
Trade debtors
Rents receivable
Parental contributions
CHEL
The Foundation
Accrued legacies
Other debtors and prepayments
15. CREDITORS DUE WITHIN ONE YEAR
£ 000s
Trade creditors
Bank loan (see below)
Deferred income
Parental contributions paid in advance
Enrolment deposits
Bluecoat Sports
Christal House Contracts Limited
Taxation and National Insurance
Value Added Tax
Rent in advance
Other creditors and accruals		 _ ______
Group
2024
5
242
247
Group
2024
546
1,644
147
-
-
382
2,504
5,223
Group
2024
859
10
180
1,623
1,982
-
-
358
194
1,530
3,758
10,494		 _ _____
Charity
2024
-
235
235
Charity
2024
8
-
147
695
3,512
370
2,315
7,047
Charity
2024
615
-
134
1,623
1,982
313
10
339
15
-
1,552
6,583		 __ _______
Group
Charity
2023
2023
5
-
208
193
213
193
Group
Charity
2023
2023
604
6
2,082
-
153
153
-
856
-
2,544
1,096
60
1,419
1,077
5,354
4,696
Group
Charity
2023
2023
1,242
660
10
-
263
236
1,253
1,253
1,901
1,901
-
409
-
23
348
332
298
15
2,072
-
3,232
1,594
10,619
6,423

-43-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

NOTES TO THE FINANCIAL STATEMENTS

__________
16. CREDITORS DUE AFTER MORE THAN ONE YEAR
£ 000s
Bank loan (see below)
Loan note issue (see below)
Repayable as follows:
Due within 1 - 2 years
Bank loan (see below)
Due within 2 - 5 years
Bank loan (see below)
Due after 5 years
Bank loan (see below)
Loan note issue (see below)		 _____
Group
2024
25,011
20,000
45,011
11
-
25,000
20,000
45,011		 _____
Charity
2024
-
-
-
-
-
-
-
-		 ________
Group
Charity
2023
2023
25,021
-
20,000
-
45,021
-
10
-
11
-
25,000
-
20,000
-
45,021
-

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 2024 the properties against which the loan is secured have been valued at £36.4 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
2024
Balance at 1 September 2023 1,253
Other amounts in advance 1,623
Amounts used to pay fees (1,253)
Balance at 31 August 2024 1,623

-44-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

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
Decrease / (increase) in debtors
(Increase) / decrease in stocks
Net cash (outflow) from group operating activities		 2024
2023
(9,596)
(12,044)
(8,792)
(7,207)
2,279
2,275
(3,183)
(306)
(2)
(2)
2
44
45
75
(387)
(506)
3,214
3,295
665
(257)
131
(171)
(34)
8
(15,658)
(14,796)

18. CAPITAL AND LEASE COMMITMENTS

Capital Commitments

At 31 August 2024 there were capital commitments of £10.2 million (2023: £0.8 million).

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 one and five years		 Group
2024
114
294
408		 Charity
2024
114
294
408		 Group
Charity
2023
2023
92
92
219
219
311
311

-45-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

NOTES TO THE FINANCIAL STATEMENTS

19. AUDITOR'S REMUNERATION

£ 000s
Audit fees
Consultancy and accountancy services		 2024
2023
80
76
8
8
88
84

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 £1,849,000 (2023: £1,601,000) and at the year-end £171,000 (2023: £134,000) 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 2020 and the Valuation Report, which was published in October 2023, confirmed that the employer contribution rate for the TPS would increase from 23.6% to 28.6% from April 2024. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 28.68%.

Following the McCloud judgement, the remedy proposed was that when benefits become payable, eligible members can select to receive them from either the reformed or legacy schemes for the period 1 April 2015 to 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the greater benefits, and in preparing the 2020 valuation have valued the ‘greater value’ benefits for groups of relevant members.

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 reducing to 15.5% from 1 January 2024, plus a monthly deficit-reduction contribution of £27,625 reducing to £16,000 from 1 January 2024. Following the last full actuarial valuation of the Scheme, there was no longer a requirement for the employer to make 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 December 2028. 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 13 December 2023. The cost of providing such pensions is charged to the accounts in accordance with the provisions of FRS 102.

-46-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

NOTES TO THE FINANCIAL STATEMENTS

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 2023 and was finalised in December 2023. For the purpose of FRS 102, the Scheme valuation has been updated as at 31 August 2024 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.

The fair value of the scheme assets exceeded the present value of future obligations as at 31 August 2024 by £134,000. However, as the Trustees of the Scheme have first priority in deciding how to apply any surplus, and therefore Christ’s Hospital may not recover this surplus through reduced contributions or refund, the asset has not been recognised in these financial statements in accordance with FRS102.

Under a flexible apportionment arrangement dated 31 August 2023, 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 2024 were £378,000 (2023: £506,000).

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

a) Amounts recognised in the balance sheets
£ 000s
Present value of funded obligations
Fair value of plan assets
Less asset not recognised
Net asset / (liability)
(b) Changes in the present value of the defined benefit obligation
£ 000s
Opening defined benefit obligation
Employers' service cost
Interest cost
Actuarial gains
Benefits paid from scheme assets
Scheme participants' contributions
Defined benefit obligation at end of period		 2024
2023
(14,377)
(14,032)
14,511
13,782
(134)
-
-
(250)
2024
2023
14,032
16,734
45
75
708
695
408
(2,731)
(836)
(764)
20
23
14,377
14,032

-47-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

NOTES TO THE FINANCIAL STATEMENTS

(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		 2024
2023
13,782
15,518
706
654
452
(2,152)
387
506
20
23
-
(3)
(836)
(764)
14,511
13,782

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
Interest on effect of asset ceiling
(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 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 asset / (liability) at end of the year		 31 August
2025
49
(696)
684
13
50
2024
2023
(45)
(75)
706
654
-
(3)
(708)
(695)
(47)
(119)
2024
2023
(250)
(1,216)
(45)
(75)
387
506
706
654
(708)
(695)
-
(3)
(90)
579
-
(250)

-48-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

NOTES TO THE FINANCIAL STATEMENTS

(f) Major categories of Scheme assets as a percentage of total Scheme assets

Equities
Multi-Asset Funds
Self sufficiency credit
Liability Driven Investments
Absolute Return Bond Fund
Buy and Maintain Credit
Sterling Liquidity Fund
Cash		 2024
2023
14.7%
15.1%
19.9%
20.3%
27.1%
0.0%
24.8%
19.6%
8.8%
14.9%
0.0%
20.4%
3.7%
7.7%
1.0%
2.0%
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 2024 2023
Discount rate 4.9% 5.2%
Rate of increase in salaries 4.0% 6.0%
Rate of increase of pensions in payment - Pre April 1997 1.9% 2.2%
Rate of increase of pensions in payment - Post April 1997 3.0% 3.2%
Rate of increase of pensions in deferment 2.7% 2.9%
Price inflation 3.1% 3.3%

The 2024 valuation has assumed average mortality in accordance with S3PxA_M tables with allowance for future improvements in line with the CMI (core) 2023 projection model with long-term improvements of 1.5% p.a. The core version of the 2023 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.

(h) Projected changes in present value of net defined benefit liability
£ 000s
Opening net defined benefit liability
Amount recognised through profit and loss account
Expected Employer's contributions
Less expected asset not recognised
Closing net defined benefit liability		 31 August
2025
-
(50)
247
(197)
-

-49-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

NOTES TO THE FINANCIAL STATEMENTS

________________ ________________
(i) Sensitivity analysis Change in defined benefit obligation
2024
Increase / decrease discount rate by 0.5% p.a. -5.6% / +6.2%
Increase / decrease assumed rate of future inflation 0.5% p.a. +4.2% / -4.3%
Increase / decrease long-term salary increases by 0.5% p.a. +0.4% / -0.4%
Increase / decrease life expectancy by 1 year +3.5% / -3.5%

Defined Contribution Scheme

Staff who became employees prior to 1 August 2014, and were not in a defined benefit scheme, could join the stakeholder pension 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 Standard Life and Legal and General. Employer contributions are currently set at the statutory minimum of 3%. Employer contributions totalling £266,000 (2023: £252,000) were paid in respect of these pension schemes for the year. At the year-end £23,000 (2023: £21,000) 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
2024
370
-
800
1,170		 Charity
2024
370
-
800
1,170		 Group
Charity
2023
2023
222
222
(106)
(106)
254
254
370
370

The provision relates to legal claims and recognises 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 £2,365 (2023: £3,523) have been refunded to seven (2023: nine) Council Members in connection with their duties. Donations totalling £7,156 (2023: £91,815) have been received from three (2023: four) Council Members.

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 £18.0 million (2023: £16.1 million) was granted to Christ’s Hospital from the Foundation in support of current students. In addition, Christ’s Hospital gifted back to the Foundation £0.5 million of capital assets. A further £4.2 million (2023: £3.0 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.

-50-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

NOTES TO THE FINANCIAL STATEMENTS

The Foundation charged £113,000 (2023: £92,000) in rent to Christ’s Hospital for certain residential properties. Other expenses totalling £16,000 (2023: £2,000) 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 £364,000 (2023: £346,000) and £10,000 (2023: £10,000) respectively. Other expenses totalling £55,000 (2023: £47,000) 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 £13,200 (2023: £7,900) for the nursery lease and £509,900 (2023: £476,900) for the licence fee. In addition, Christ’s Hospital recharged a total of £561,100 (2023: £526,800) to CHEL relating to other expenses including salaries, finance, cleaning and catering. In addition, with CHEL’s business still recovering following the pandemic no payment under gift aid was made to the school (2023: £nil for the year).

Christ’s Hospital performs administrative services for Christal House Contracts Limited for which it received a management fee of £5,300 (2023: £5,300). In addition, Christal House Contracts charged Christ’s Hospital £85,000 (2023: £93,000) 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 £28,200 (2023: £26,500).

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.

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

The Ward Blakely Fund provides funding for the Director of Expeditionary Education role.

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 student 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.

-51-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

NOTES TO THE FINANCIAL STATEMENTS

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

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.

-52-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

NOTES TO THE FINANCIAL STATEMENTS

23. MOVEMENT OF FUNDS

£ 000s
Balance at
2023
Preserved Endowment
General Fund Capital Account
102,916
The Wests' Gift for Children Fund
7,531
The Hornby Steer Fund
1,670
The Daniel Lett Fund
1,539
The Ward Blakely Fund
-
The RAF Foundationers' Trust Fund
910
Miss West Scholar Fund
800
Christ's Hospital Association
323
Additional Costs Fund
567
House Fund
290
The Reginald Wood Fund
150
Other Funds
443
117,139
Unapplied Total Return Endowment
General Fund Capital Account
264,587
The Wests' Gift for Children Fund
18,926
The Hornby Steer Fund
1,570
The Daniel Lett Fund
1,611
The Ward Blakely Fund
-
The RAF Foundationers' Trust Fund
1,068
Miss West Scholar Fund
198
Christ's Hospital Association
200
Additional Costs Fund
122
House Fund
178
The Reginald Wood Fund
146
Other Funds
513
289,119
Expendable Endowments
The Army Foundation
103
TOTAL ENDOWMENT FUNDS
406,361
1 September		 Balance at
2023
102,916
7,531
1,670
1,539
-
910
800
323
567
290
150
443
1 September		 Incoming
Resources
1,658
-
-
-
1,487
-
-
-
28
-
-
10		 Resources
Expended
-
-
-
-
-
-
-
-
-
-
-
-		 Gains /
(losses)
-
-
-
-
-
-
-
-
-
-
-
-		 Balance at
Transfers
31 August
2024
-
104,574
-
7,531
-
1,670
-
1,539
-
1,487
-
910
-
800
-
323
-
595
-
290
-
150
-
453
-
120,322
(16,647)
271,367
(379)
20,781
(2)
1,842
(8)
1,744
-
98
-
1,235
(76)
205
(21)
223
(21)
149
(19)
197
(11)
159
(15)
574
(17,199)
298,574
(37)
75
(17,236)
418,971
117,139 3,183 - -
8,177
47
6
6
96
4
2
1
3
1
1
2		 (5,151)
(69)
(8)
(137)
-
(5)
(3)
(1)
(11)
(1)
(1)
(7)		 20,401
2,256
276
272
2
168
84
44
56
38
24
81
289,119 8,346 (5,394) 23,702
103 1 - 8
406,361 11,530 (5,394) 23,710

-53-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

NOTES TO THE FINANCIAL STATEMENTS

£ 000s
Restricted
Bluecoat Sports Fund
Doyle Fund
Geoff Stearn Musical Instruments
Museum Fund
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
2023
594
119
144
-
9
162
53
1,467
285
326		 Incoming
Resources
1,812
-
3
183
-
694
107
2
114
187		 Resources
Expended
(1,942)
-
-
-
-
(1)
(131)
(34)
(54)
(33)		 Gains /
(losses)
-
9
11
-
-
-
-
113
-
-		 Balance at
Transfers
31 August
2024
221
685
(5)
123
-
158
-
183
-
9
(279)
576
18
47
(48)
1,500
-
345
(91)
389
(184)
4,015
1,700
2,061
10
71
10
54
-
400
56
-
-
2
-
3
1,776
2,591
3,139
59,484
-
-
4,915
62,075
12,505
1,631
17,420
63,706
-
486,692
3,159 3,102 (2,195) 133
1,285
69
63
400
-
2
9		 37
3
11
-
-
-
-		 (961)
(11)
(30)
-
(56)
-
(6)		 -
-
-
-
-
-
-
1,828
59,335
(250)		 51
-
-		 (1,064)
(2,990)
340		 -
-
(90)
60,913
2,102		 51
18,324		 (3,714)
(31,300)		 (90)
-
63,015 18,375 (35,014) (90)
472,535 33,007 (42,603) 23,753

During the year, £9.5 million has been transferred into Unrestricted Funds from the Unapplied Total Return Endowment Funds.

-54-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

NOTES TO THE FINANCIAL STATEMENTS

24. PRIOR YEAR MOVEMENT OF FUNDS

£ 000s
Balance at
2022
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
567
House Fund
290
The Reginald Wood Fund
150
Other Funds
443
116,833
Unapplied Total Return Endowment
General Fund Capital Account
299,795
The Wests' Gift for Children Fund
19,440
The Hornby Steer Fund
1,582
The Daniel Lett Fund
1,724
The RAF Foundationers' Trust Fund
1,073
Miss West Scholar Fund
201
Christ's Hospital Association
223
Additional Costs Fund
149
House Fund
196
The Reginald Wood Fund
148
Other Funds
536
325,067
Expendable Endowments
The Army Foundation
136
TOTAL ENDOWMENT FUNDS
442,036
1 September		 Balance at
2022
102,610
7,531
1,670
1,539
910
800
323
567
290
150
443
1 September		 Incoming
Resources
306
-
-
-
-
-
-
-
-
-
-		 Resources
Expended
-
-
-
-
-
-
-
-
-
-
-		 Gains
-
-
-
-
-
-
-
-
-
-
-		 Balance at
Transfers
31 August
2023
-
102,916
-
7,531
-
1,670
-
1,539
-
910
-
800
-
323
-
567
-
290
-
150
-
443
-
117,139
(9,021)
264,587
(417)
18,926
(1)
1,570
(7)
1,611
-
1,068
-
198
(21)
200
(22)
122
(17)
178
(2)
146
(15)
513
(9,523)
289,119
(32)
103
(9,555)
406,361
116,833 306 - -
6,798
52
7
3
5
3
1
4
2
1
2		 (6,304)
(216)
(26)
(117)
(15)
(8)
(4)
(11)
(4)
(2)
(12)		 (26,681)
67
8
8
5
2
1
2
1
1
2
325,067 6,878 (6,719) (26,584)
136 - (1) -
442,036 7,184 (6,720) (26,584)

-55-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

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
2022
447
140
144
9
175
57
1,503
186
380		 Incoming
Resources
1,530
-
2
-
(4)
105
4
142
275		 Resources
Expended
(1,595)
(1)
(2)
-
(2)
(127)
(22)
(63)
(40)		 Gains
-
-
-
-
-
-
4
-
-		 Balance at
Transfers
31 August
2023
212
594
(20)
119
-
144
-
9
(7)
162
18
53
(22)
1,467
20
285
(289)
326
(88)
3,159
284
1,285
10
69
77
63
-
400
336
-
1
2
-
9
708
1,828
886
59,335
-
(250)
1,594
60,913
8,049
2,102
9,643
63,015
-
472,535
3,041 2,054 (1,852) 4
1,342
68
93
400
-
4
23		 28
2
-
-
-
-
-		 (369)
(11)
(107)
-
(336)
(3)
(14)		 -
-
-
-
-
-
-
1,930
61,337
(1,216)		 30
-
-		 (840)
(2,888)
387		 -
-
579
62,051
3,452		 30
20,269		 (3,341)
(29,668)		 579
-
65,503 20,299 (33,009) 579
510,580 29,537 (41,581) (26,001)

-56-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

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
8,177
20,401
28,578
(2,279)
(2,872)
23,427
(16,647)
264,587
271,367
104,574
-
375,941		 Wests'
Gift
47
2,256
2,303
-
(69)
2,234
(379)
18,926
20,781
7,531
-
28,312		 Other
2024
Funds
Total
122
8,346
1,045
23,702
1,167
32,048
-
(2,279)
(174)
(3,115)
993
26,654
(173)
(17,199)
5,606
289,119
6,426
298,574
8,217
120,322
75
75
14,718
418,971

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
459,331
2,021
-
59,484
-
-
-
520,836		 Net current
assets
4,640
2,005
2,801
-
2,061
530
-
12,037		 Creditors
2024
due after
Total
more than
one year
(45,000)
418,971
(11)
4,015
(1,170)
1,631
-
59,484
-
2,061
-
530
-
-
(46,181)
486,692

-57-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

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
27. FINANCIAL INSTRUMENTS
£ 000s
Financial assets measured at amortised cost (a)
Financial liabilities measured at amortised cost (b)		 Fixed
assets
445,691
1,806
-
59,335
-
-
-
-
506,832		 Net current
assets
5,670
1,374
2,472
-
1,285
543
-
-		 Creditors
2023
due after
Total
more than
one year
(45,000)
406,361
(21)
3,159
(370)
2,102
-
59,335
-
1,285
-
543
-
-
(250)
(250)
(45,641)
472,535
Total
Total
2024
2023
21,453
20,997
(54,773)
(54,981)
(33,320)
(33,984)
11,344

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

-58-

CHRIST’S HOSPITAL

YEAR ENDED 31 AUGUST 2024

NOTES TO THE FINANCIAL STATEMENTS

28. PRIOR YEAR CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES - Comparative figures by ACTIVITIES - Comparative figures by fund-type
£ 000s
Endowment Restricted Unrestricted Total
Funds Funds Funds 2023
INCOME AND ENDOWMENTS FROM:
Charitable Activities
School fees receivable - - 11,081 11,081
Sports centre income - 1,483 - 1,483
Ancillary trading - 123 716 839
Investments
Investment income 6,865 85 257 7,207
Fundraising
Donations and legacies 306 363 6,481 7,150
Other sources
Non-ancillary trading income - - 1,488 1,488
Other income 13 - 276 289
TOTAL INCOME AND ENDOWMENTS 7,184 2,054 20,299 29,537
EXPENDITURE ON:
Raising Funds
Fundraising and development - - (557) (557)
Trading activities - - (960) (960)
Investment management (4,344) (13) - (4,357)
Financing (2,275) - - (2,275)
Charitable Activities
Costs of providing education (101) (244) (31,492) (31,837)
Sport centre expenditure - (1,595) - (1,595)
TOTAL EXPENDITURE (6,720) (1,852) (33,009) (41,581)
NET INCOMING/ (OUTGOING) FUNDS FROM OPERATIONS
BEFORE TRANSFERS AND INVESTMENT GAINS 464 202 (12,710) (12,044)
(Losses) / gains on investments (26,584) 4 - (26,580)
Transfers between funds -
(9,555) (88) 9,643
NET INCOME AND CAPITAL INFLOW / (OUTFLOW) (35,675) 118 (3,067) (38,624)
Actuarial gains on defined - - 579 579
benefit pension scheme
NET MOVEMENT IN FUNDS (35,675) 118 (2,488) (38,045)
Total funds brought forward 1 September 442,036 3,041 65,503 510,580
TOTAL FUNDS 406,361 3,159 63,015 472,535

-59-

==> picture [244 x 52] intentionally omitted <==

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