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2023-03-31-accounts

Charity registration number 290237

CRANBROOK SCHOOL TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

CRANBROOK SCHOOL TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr J Peace Mr P R Thompson Mr G Young Mr T Mullins Mr A Cragg Mr G May Mr T Lister Ms S Hamilton Charity number 290237 Auditor Baxter & Co Lynwood House Crofton Road Orpington Kent BR6 8QE

(Appointed 1 April 2022) (Appointed 1 May 2022)

CRANBROOK SCHOOL TRUST

CONTENTS

Page
Trustees' report 1 - 3
Statement of Trustees' responsibilities 4
Independent auditor's report 5 - 7
Statement of financial activities 8 - 9
Balance sheet 10
Notes to the financial statements 11 - 26

CRANBROOK SCHOOL TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023

The Trustees present their annual report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document, the Charities Act 2011 and "Accounting and Reporting by Charities: 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).

Objectives and activities

The object of the charity is to promote the education (including social and physical training) of boys and girls by the conduct and maintenance of a day and boarding school in or near Cranbrook in the County of Kent for boys and girls. The Trust is governed by a Trust Deed dated 11 July 1994.

Aims and Objectives

The Trustees aim to provide suitable tuition, boarding and other accommodation and sports facilities for the staff, day and boarding students of Cranbrook School in order that the School can deliver the curriculum and cocurriculum to its students, as well as boarding facilities for those students who wish to board. The Trustees receive no income for the provision of core accommodation but rents are received by the Trust for the provision of housing for some staff on or near the campus.

The Trustees ensure that the buildings and grounds are maintained and aim to enhance the facilities available to the School through refurbishment and provision of additional accommodation and facilities when required. To achieve this the Trustees raise additional funds from parents, former parents, Old Cranbrookians and the wider community through schemes of regular giving and appeals.

The Trustees also support various non curricular activities of the School including the House system, provision of prizes, scholarships and through other grants and spending.

Achievements and performance

Financial review

Spendable funds are categorised between those which are available for spending at the discretion of Trustees ("unrestricted funds") and those which are subject to condition or restriction ("restricted funds"). The following balances were held at 31 March:

Building extension fund (restricted fund) £57,456 (2022: £121,126) Property renewal fund (restricted fund) £150,000 (2022: £150,000) Prize and gift fund (restricted fund) £46,959 (2022: £73,751) Scholarship endowment fund (restricted fund) £53,915 (2022: £49,674) Congreve exhibition fund (restricted fund) £8,623 (2022: £8,115) Permanent endowment fund £17,343,320 (2022: £17,355,370) Unrestricted funds £1,447,684 (2022: £1,300,702)

Reserves

It is the Trustees' policy to maintain the unrestricted funds, which are the free reserves of the trust, at a level which equates to approximately six months unrestricted expenditure. This provides sufficient funds to cover management and administration costs and to respond to emergency expenditure which arises from time to time. The Reserves Policy is subject to review on an annual basis.

Investment Policy

The Trustees' policy is to maintain income whilst preserving the real value of endowed investments. The Charity's investments have continued to be managed in conformity with policy and the Trust Deed and their performance has matched expectation on the advice of our investment managers. The investment policy is subject to review on an annual basis.

CRANBROOK SCHOOL TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Risk Management

The Trustees regular review the risks associated with its functions. The Governing body of Cranbrook School is responsible for the management and operation of the school including the buildings, land, and other facilities owned by the Trust and is responsible for all related risks.

Structure, governance and management

There are nine Trustees, comprising an ex-officio Trustee who is the incumbent of the present benefice of St Dunstan, two nominated by Kent County Council, one nominated by the Old Cranbrookians Association and one by the University of Kent; the remaining six are co-opted. The nominations for the University of Kent and Kent County Council are currently vacant. The vicars position is currently vacant and only one of the Kent County Council nominated positions is vacant.

The Trustees meet three times during the year to make any decisions necessary. When necessary, extraordinary meetings can be called by the Chairman.

Trustees

The Trustees who served during the year were:

Mr J Peace Mr P R Thompson Mr G Young Mr T Mullins Mr A Cragg Mr G May Mr T Lister (Appointed 1 April 2022) Ms S Hamilton (Appointed 1 May 2022)

There should be eleven Trustees consisting of:

One ex-officio Trustee - being the incumbent for the time being of the benefice of St. Dunstan, Cranbrook.

Four nominated Trustees - being two nominated by Kent County Council, one by the University of Kent and one by the Committee of the Old Cranbrookians Association.

Six co-opted Trustees - who through residence, occupation or employment or otherwise have special knowledge of Cranbrook.

Policies and Procedures adopted for the induction and training of Trustees

All Trustees are inducted by the chairman and are provided with a copy of the Charity Commission booklet "The Essential Trustee: What you need to know".

Public Benefit

The Trustees have complied with the duty in s17 (5) of the Charities Act 2011 to have regard to the public benefit guidance published by the Charity Commission.

CRANBROOK SCHOOL TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Auditor

In accordance with the company's articles, a resolution proposing that Baxter & Co. be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

.............................. Mr J Peace Trustee Date: .............................................

.............................. Mr G Young Trustee

CRANBROOK SCHOOL TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2023

The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CRANBROOK SCHOOL TRUST

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF CRANBROOK SCHOOL TRUST

Opinion

We have audited the financial statements of Cranbrook School Trust (the ‘Charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice), and the Charities SORP 2015.

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 Charity 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.

Emphasis of matter: Analysis of net assets between funds

Attention is drawn to the narrative at the foot of note 20 “Analysis of net assets between funds” which describes the uncertainty as regards to the analysis of tangible fixed assets between funds. Our opinion is not qualified in respect of this matter.

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 Charity’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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and 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 course of 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.

CRANBROOK SCHOOL TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CRANBROOK SCHOOL TRUST

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, the Trustees 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 Charity’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 cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

CRANBROOK SCHOOL TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CRANBROOK SCHOOL TRUST

Use of our report

This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Louise Hallsworth FCA (Senior Statutory Auditor) 30 January 2024 for and on behalf of Baxter & Co ........................ Chartered Accountants Statutory Auditor Lynwood House Crofton Road Orpington Kent BR6 8QE

Baxter & Co is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

CRANBROOK SCHOOL TRUST

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2023

Current financial year
Unrestricted
funds
2023
Notes
£
Income and endowments from:
Donations and legacies
3
-
Charitable activities
5
108,032
Other trading activities
4
148,715
Investments
6
17,400
Other income
7
184
Total income
274,331
Expenditure on:
Raising funds
8
98,706
Charitable activities
9
41,788
Total expenditure
140,494
Net gains/(losses) on investments
13
(4,496)
Net movement in funds
129,341
Fund balances at 1 April 2022
1,300,602
Fund balances at 31 March 2023
1,429,943		 Restricted Endowment
funds
funds
2023
2023
£
£
3,847
-
-
-
-
-
16,467
-
-
-
20,314
-
-
-
82,824
-
82,824
-
(5,463)
(12,050)
(67,973)
(12,050)
402,667
17,355,370
334,694
17,343,320		 Total
2023
£
3,847
108,032
148,715
33,867
184
294,645
98,706
124,612
223,318
(22,009)
49,318
19,058,639
19,107,957		 Total
2022
£
9,871
101,329
34,313
15,913
765
162,191
19,218
290,317
309,535
50,584
(96,760)
19,155,399
19,058,639

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

CRANBROOK SCHOOL TRUST

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Prior financial year
Unrestricted
funds
2022
Notes
£
Income and endowments from:
Donations and legacies
3
-
Charitable activities
5
101,329
Other trading activities
4
34,313
Investments
6
7,086
Other income
7
765
Total income
143,493
Expenditure on:
Raising funds
8
19,218
Charitable activities
9
14,195
Total expenditure
33,413
Net gains/(losses) on investments
13
5,999
Net movement in funds
116,079
Fund balances at 1 April 2021
1,184,523
Fund balances at 31 March 2022
1,300,602		 Restricted Endowment
funds
funds
2022
2022
£
£
9,871
-
-
-
-
-
8,827
-
-
-
18,698
-
-
-
276,122
-
276,122
-
9,191
35,394
(248,233)
35,394
650,900
17,319,976
402,667
17,355,370		 Total
2022
£
9,871
101,329
34,313
15,913
765
162,191
19,218
290,317
309,535
50,584
(96,760)
19,155,399
19,058,639

CRANBROOK SCHOOL TRUST

BALANCE SHEET

AS AT 31 MARCH 2023

2023
Notes
£
£
Fixed assets
Tangible assets
15
17,546,190
Investments
16
587,408
18,133,598
Current assets
Stocks
18
3,519
Debtors
17
15,751
Cash at bank and in hand
974,033
993,303
Creditors: amounts falling due within
one year
19
(18,944)
Net current assets
974,359
Total assets less current liabilities
19,107,957
Capital funds
Endowment funds-general
General endowment funds
13,952,992
Revaluation reserve
3,390,328
17,343,320
Income funds
Restricted funds
20
334,694
Unrestricted funds
1,429,943
19,107,957
The financial statements were approved by the Trustees on .........................
..............................
..............................
Mr J Peace
Mr G Young
Trustee
Trustee		 2022
£
£
17,546,190
609,417
18,155,607
3,835
22,925
896,579
923,339
(20,307)
903,032
19,058,639
13,965,042
3,390,328
17,355,370
402,667
1,300,602
19,058,639		 2022
£
£
17,546,190
609,417
18,155,607
3,835
22,925
896,579
923,339
(20,307)
903,032
19,058,639
13,965,042
3,390,328
17,355,370
402,667
1,300,602
19,058,639
18,155,607
903,032
19,058,639
17,355,370
402,667
1,300,602
19,058,639

CRANBROOK SCHOOL TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

Cranbrook School Trust is a Charity.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's Trust Deed, the Charities Act 2011 and “Accounting and Reporting by Charities: 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)” (as amended for accounting periods commencing from 1 January 2016). The Charity is a Public Benefit Entity as defined by FRS 102.

The Charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

The Charity's unrestricted funds consist of funds which the Charity may use for its purposes at its discretion.

The Charity has certain restricted funds where specific conditions have been imposed by the donor. Further details can be found in note 19.

The Charity has certain permanent endowments which comprise the land, buildings and foundation investments.

1.4 Income

All voluntary income is included in income on receipt except where the donor requires the sum to be invested to provide income for the Charity's purposes, in which case it is treated as an endowment.

Donations under deeds of covenant, and gift aid together with the associated income tax recovery, are recognised as income when the donation is received.

Endowments are credited directly to an Endowment Fund balance when received. They are not included as income because they must be invested and do not represent income which the Charity may use directly for its purposes.

Restricted income is included in the restricted income and expenditure account on receipt.

CRANBROOK SCHOOL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

The cost of generating funds comprises costs incurred in encouraging people or organisations to contribute financially to the Charity's work. It includes the costs of advertising for funds and the costs of mounting appeals.

Governance costs comprise all costs incurred in ensuring the public accountability of the Charity and its compliance with regulation and good practice.

1.6 Tangible fixed assets

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The Trustees consider that the estimated residual value of the buildings is equal to the carrying value and as a result depreciation is not provided. The fair value of the land and buildings is usually considered to be their market value.

Revaluation gains and losses are recognised in other recognised gains and losses and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in net income/ (expenditure) or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in net income/(expenditure) for the year.

Freehold land and assets in the course of construction are not depreciated.

1.7 Fixed asset investments

Investments are included in the accounts at year end market value.

Investment Income

Dividends are credited to the income and expenditure account when they are received.

Credit is taken for interest and rental income when the interest or rent falls due for payment.

1.8 Stocks

Stocks consist of items purchased for re-sale through the Charity's trading activities. The stock is included at the lower of cost or net realisable value.

CRANBROOK SCHOOL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

2 Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Restricted Restricted
funds funds
2023 2022
£ £
Donations and gifts 3,847 9,871

4 Other trading activities

**Unrestricted ** Unrestricted
funds funds
2023 2022
£ £
Lettings income 118,128 22,824
Queens Hall events income 11,585 3,062
Other income 19,002 8,427
Other trading activities 148,715 34,313

Further details of trading activities undertaken by the Charity can be found in note 23.

5 Charitable activities

Unrestricted
Unrestricted
funds funds
2023 2022
£ £
Charitable rental income 108,032 101,329

CRANBROOK SCHOOL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

6 Investments

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Dividend income
7,279
9,444
Interest receivable
10,121
7,023
17,400
16,467		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
16,723
6,884
8,664
17,144
202
163
33,867
7,086
8,827		 Total
2022
£
15,548
365
15,913

CRANBROOK SCHOOL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

7 Other income

**Unrestricted ** Unrestricted
funds funds
2023 2022
£ £
Other income 184 765
Raising funds
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Trading costs
Share of governance costs (see note 10) 1,000 1,000
Stationery shop expenses - (21)
Events - 625
Lettings expenses 63,045 2,800
Queen Hall event expenses 21,778 9,588
Other fundraising costs 12,883 5,226
Trading costs 98,706 19,218
98,706 19,218

8 Raising funds

Further details of trading activities undertaken by the Charity can be found in note 23.

CRANBROOK SCHOOL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

9 Charitable activities

Charitable
Charitable
Expenditure Expenditure
2023 2022
£ £
Salary recharge - Clerk to Trustees 20,247 10,595
Cranbrook School Donations 36,560 54,750
Cranbrook School Facilities Donations 37,900 215,520
Awards and prizes 8,364 5,852
Salary recharge - Development Officer 17,741 -
120,812 286,717
Share of governance costs (see note 10) 3,800 3,600
124,612 290,317
Analysis by fund
Unrestricted funds 41,788 14,195
Restricted funds 82,824 276,122
124,612 290,317

10 Support costs

Audit fees
Analysed between
Fundraising
Charitable activities		 Support
costs
Governance
costs
£
£
-
4,800
-
4,800
-
1,000
-
3,800
-
4,800		 2023
£
4,800
4,800
1,000
3,800
4,800		 2022
£
4,600
4,600
1,000
3,600
4,600

11 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year.

During the year, property expenses totalling £900 were reimbursed directly to 1 Trustee.

CRANBROOK SCHOOL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

12 Employees

The Charity does not employ any staff, however resources from the Cranbrook School Academy Trust are used and costs are recharged to the Charity on a time spent basis.

There were no employees whose annual remuneration was more than £60,000.

CRANBROOK SCHOOL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

13 Net gains/(losses) on investments

Unrestricted **Restricted ** Endowment Total Unrestricted Total Unrestricted **Restricted ** Endowment Total
funds funds funds funds funds funds
general general
2023 2023 2023 2023 2022 2022 2022 2022
£ £ £ £ £ £ £ £
Revaluation of investments (4,496) (5,463) (12,050) (22,009) 5,999 9,191 35,394 50,584

CRANBROOK SCHOOL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

14 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

15 Tangible fixed assets

Tangible fixed assets
Freehold land and buildings
£
Cost
At 1 April 2022 17,546,190
At 31 March 2023 17,546,190
Carrying amount
At 31 March 2023 17,546,190
At 31 March 2022 17,546,190

The sale proceeds in 1988 of part of Rammell Garden and part of Scott Field were credited to the Capital Fund. In 1987 and 1989, the Charity Commissioners approved that the Trustees could expend out of the capital of the Charity a sum of not more than £200,000 towards the cost of constructing a new science block extension (overbuilding) and also a sum of not more than £162,144 towards the cost of constructing a new sports hall. This expense was authorised on condition that the sum was recouped from charitable income at a yearly rate of £1.55 for each £100 spent. £3,100 per annum was payable from 1989 for thirty years and £2,513 per annum from 1990 for thirty years. These sums were invested in Charishare Common Investment Fund Accumulation shares included in the Foundation Investments on the Balance Sheet.

On 19 July 2017, the Charity Commission directed that the recoupment ceased to have effect. The Charity Commission also authorised the Trustees to spend the funds from selling the investments held using the proceeds from the sale of part of Rammell Garden in 1988 from the Charity's permanent endowment for the purpose of funding building works at Cranbrook School. As a result, the Trustees have made donations from the Charity's permanent endowment totalling £577,828 to fund building work at the School which has enhanced the value of the Charity's assets as reflected in the increase in valuation of the property.

The properties were valued in 1997 by Robert Ingram & Company, Chartered Surveyors, on an existing use basis. As noted in prior year accounts, the Trustees were of the opinion that the true value is in excess of the £13,909,514 shown in the accounts.

As a result, during 2018, the Trustees reviewed the valuation of the properties and consider that, based on the increase in Commercial Property Price Index, the properties held within the permanent fund had increased in value by 25% on an existing use basis since 1997 and this increase of £3.39m has been reflected in the accounts.

During the year to 31 March 2017, the Trust started to make VATable supplies on some land it had acquired in 2013. As a result the Trust was able to make a claim for recovery VAT of £30,200 from HM Revenue & Customs which was reflected in debtors at the previous year end and the cost of this land, which is recorded in unrestricted funds, was adjusted to reflect this VAT recovery.

Inalienable assets

The Trust also owns certain assets of historic or scientific interest which are not included above, but which are an intrinsic part of the school's history. The Trustees consider that there is no reliable cost or value which can be attributable to these items and accordingly they have not been capitalised in the financial statements.

CRANBROOK SCHOOL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

16 Fixed asset investments

Unlisted
investments
£
Cost or valuation
At 1 April 2022 609,417
Valuation changes (22,009)
At 31 March 2023 587,408
Carrying amount
At 31 March 2023 587,408
At 31 March 2022 609,417

Fixed asset investments revalued

Fixed asset investments are recorded in the accounts at their open market value, any movements in value are recorded in the Statement of Financial Activities. Below are details of the original cost and split by fund:

Fair value of financial assets carried at amortised cost

Except as detailed below the Trustees believe that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.

Financial assets Carrying amount Original cost
2023 2022 2023 2022
£ £ £ £
Unrestricted - William Rootes Gift Fund 34,232 36,460 16,818 16,818
Unrestricted - Vickers Fund 45,050 47,317 30,000 30,000
Restricted - Webster Exhibition Fund 30,353 31,547 3,217 3,217
Restricted - SEF 31,551 33,185 12,835 12,835
Restricted - General Fund 55,731 58,366 8,082 8,082
Endowment - Army Prize 1,198 1,245 500 500
Endowment - Joss Prize 4,647 4,830 3,000 3,000
Endowment - SEF 77,180 82,053 21,925 21,925
Endowment - Congreve 12,483 13,111 4,000 4,000
Endowment - Other 294,983 301,302 57,080 57,080

CRANBROOK SCHOOL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

17
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
18
Stocks
Stationery and other stock
19
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors		 2023
£
3,074
9,468
3,209
15,751
2023
£
3,519
2023
£
1,916
8,149
8,879
18,944		 2022
£
10,931
10,714
1,280
22,925
2022
£
3,835
2022
£
1,044
9,074
10,189
20,307

CRANBROOK SCHOOL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

20 Funds

Restricted funds
Building extension fund
Property renewal fund
Prize and gift fund
Scholarship endowment
fund
Congreve exhibition fund
Endowment funds
Permanent endowment
fund
Unrestricted funds
Unrestricted general fund
Total funds		 Balance at
1 April 2022
£
121,126
150,000
73,751
49,674
8,115
402,666
17,355,370
17,355,370
1,300,602
1,300,602
19,058,638		 Incoming
resources
£
10,790
-
3,141
5,875
508
20,314
-
-
274,331
274,331
294,645		 Resources
expended
£
(37,900)
-
(62,665)
-
-
(100,565)
-
-
(122,753)
(122,753)
(223,318)		 Transfers Revaluations,
gains and
losses
Balance at
31 March 2023
£
£
£
(36,560)
-
57,456
-
-
150,000
36,560
(3,828)
46,959
-
(1,634)
53,915
-
-
8,623
-
(5,462)
316,953
-
(12,050)
17,343,320
-
(12,050)
17,343,320
-
(4,496)
1,447,684
-
(4,496)
1,447,684
-
(22,008)
19,107,957		 Transfers Revaluations,
gains and
losses
Balance at
31 March 2023
£
£
£
(36,560)
-
57,456
-
-
150,000
36,560
(3,828)
46,959
-
(1,634)
53,915
-
-
8,623
-
(5,462)
316,953
-
(12,050)
17,343,320
-
(12,050)
17,343,320
-
(4,496)
1,447,684
-
(4,496)
1,447,684
-
(22,008)
19,107,957
316,953
17,343,320
17,343,320
1,447,684
1,447,684
19,107,957

CRANBROOK SCHOOL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

20 Funds

(Continued)

Comparative information in respect of the preceding period is as follows:

Restricted funds
Building extension fund
Property renewal fund
Prize and gift fund
Scholarship endowment
fund
Congreve exhibition fund
Endowment funds
Permanent endowment
fund
Unrestricted funds
Unrestricted general fund
Total funds		 Balance at
1 April 2021
£
381,365
150,000
69,671
42,222
7,642
650,900
17,319,976
17,319,976
1,184,523
1,184,523
19,155,399		 Incoming
resources
£
10,032
-
3,000
5,193
473
18,699
-
-
143,492
143,492
162,191		 Resources
expended
£
(270,271)
-
(5,852)
-
-
(276,123)
-
-
(33,412)
(33,412)
(309,535)		 Transfers Revaluations,
gains and
losses
Balance at
31 March 2022
£
£
£
-
-
121,126
-
-
150,000
-
6,932
73,751
-
2,259
49,674
-
-
8,115
-
9,191
402,667
-
35,394
17,355,370
-
35,394
17,355,370
-
5,999
1,300,602
-
5,999
1,300,602
-
50,584
19,058,639		 Transfers Revaluations,
gains and
losses
Balance at
31 March 2022
£
£
£
-
-
121,126
-
-
150,000
-
6,932
73,751
-
2,259
49,674
-
-
8,115
-
9,191
402,667
-
35,394
17,355,370
-
35,394
17,355,370
-
5,999
1,300,602
-
5,999
1,300,602
-
50,584
19,058,639
402,667
17,355,370
17,355,370
1,300,602
1,300,602
19,058,639

CRANBROOK SCHOOL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

20 Funds

(Continued)

The Charity's unrestricted funds consist of funds which the Charity may use for its purposes at its discretion.

The Charity has certain restricted funds where specific conditions have been imposed by the donor. These are as follows:

Building extension fund (BEF)

Funds donated for the planning and construction of buildings, the purchase of land, the payment of loan charges and such other purposes that the Trustees may decide from time to time.

Property renewal fund

A provision made from the Building Extension Fund towards the replacement of the astro turf.

Prize and gift fund

Funds donated for the purchase of prizes to be awarded to pupils and for leaving exhibitions for pupils going to a university.

Scholarship endowment fund (SEF)

Funds donated for the granting of Scholarships and bursaries and for the general promotion and encouragement of education at the school.

Congreve exhibition

Funds donated for the purposes of providing a leaving exhibition for pupils going to a recognised university in Great Britain or Northern Ireland.

The Charity has certain permanent endowments which comprise land, buildings and foundation investments.

21 Analysis of net assets between funds

Unrestricted
funds
2023
£
Fund balances at 31 March 2023 are
represented by:
Tangible fixed assets
594,550
Investments
71,709
Current assets/(liabilities)
974,359
Total net assets
1,640,618		 Restricted
funds
Endowment
funds
2023
2023
£
£
-
16,951,640
120,144
395,555
-
-
120,144
17,347,195		 Total
2023
£
17,546,190
587,408
974,359
19,107,957

CRANBROOK SCHOOL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

21
Analysis of net assets between funds
Unrestricted
funds
2022
£
Fund balances at 31 March 2022 are
represented by:
Tangible fixed assets
594,550
Investments
83,778
Current assets/(liabilities)
903,032
Total net assets
1,581,360		 (Continued)
Restricted
funds
Endowment
funds
Total
2022
2022
2022
£
£
£
-
16,951,640
17,546,190
123,098
402,541
609,417
-
-
903,032
123,098
17,354,181
19,058,639		 (Continued)
Restricted
funds
Endowment
funds
Total
2022
2022
2022
£
£
£
-
16,951,640
17,546,190
123,098
402,541
609,417
-
-
903,032
123,098
17,354,181
19,058,639
19,058,639

In preparing these accounts, the Trust have analysed Tangible Fixed Assets of £16,951,640 to the Permanent Endowment Fund and £594,550 to Unrestricted Funds. The Trustees have used the best of their knowledge and belief about the Trust’s history and the status of each property to arrive at the current analysis. Due to the age of some of the properties concerned, it is not always possible to support the Trustees’ knowledge and belief with documentation and hence there remains an element of uncertainty about the accuracy of the classification. This treatment is currently under review by the Trustees.

22 Related party transactions

The Cranbrook School Academy Trust (Company number: 07794423) (the "Academy") is a related party by virtue of the fact that some of the Trustees of the Charity are also Governors of the Academy. During the year rental income was received from the Academy of £108,032 (2022: £110,928) and other trading income of £3,666 (2022: £nil). Donations of £74,460 (2022: £271,100) were made to the Academy. In addition expenses were recharged, at cost, by the Academy for other resources amounting to £94,260(2022: £34,920). At the year end the Charity was owed £9,002 (2022: £923) and this is included within debtors within one year. The Academy was owed £6,044 (2022: £4,170) by the Charity and this is included in creditors within one year.

CRANBROOK SCHOOL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

23 Trading Account

Events Lettings Queen's Hall Misc Total
events
2023 2023 2023 2023 2023
£ £ £ £ £
Income
Sales 126 118,128 11,585 18,876 148,715
126 118,128 11,585 18,876 148,715
Direct costs
Opening stock - 3,834 - - 3,834
Purchases - 1,657 - - 1,657
Closing Stock - (3,519) - - (3,519)
- 1,972 - - 1,972
Gross profit 126 116,157 11,585 18,876 146,744
Expenses
Production expenses - - 2,643 88 2,731
Salary recharges - 33,750 15,072 - 48,822
Catering - 22,186 - 11,151 33,337
Maintenance - - - 317 317
Cleaning and laundry - 1,734 - - 1,734
Utility charges - 2,773 - - 2,773
Copier charges - - 147 - 147
Advertising/Printing - 400 2,192 - 2,592
Accountancy and audit - - - 1,000 1,000
Worldpay charges - - 2 215 217
Website costs - - 180 - 180
Professional fees - - 240 - 240
Miscellaneous - 231 2,413 - 2,644
- 61,074 22,889 12,771 96,734
Net surplus of trading activities 126 55,083 (11,304) 6,105 50,010