Charlty registratlon number 290237 CRANBROOK SCHOOL TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 CRANBROOK SCHOOL TRUST LEGAL AND ADMINISTRATIVE INFORMATION Trustees Mr J Peace Mr P R Thompson Mr G Young MrA Cragg s S Hamilton IKCC Trusleel Ms N Dowler Ms F VVhSlelaw Rev R ￿ng (Appointed 10ecember 2023) (Appointed 1 March 20241 Charlty numbar 290237 Audltor Baxter & Co Lynwood House Crofton Road Orpington Kent BR6 8QE CRANBROOK SCHOOL TRUST CONTENTS P?gg Trustee5' report Statement of Truslee5' responslbllltles Independent audilovs report stalernenl of finandal actiwties Balance sheet 10 Notes to the financial statements CRANBROOK SCHOOL TRUST TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2024 The Tiustees piesenl their annual rep()rt and financial stalernents for the year endod 31 March 2024. The financial slalements have been prepared In accord8nce with Ihe 8ccounling pollde5 sel out in note 1 to the financial statements and comply with the Charity's goveming document, the Charities Act 2011 and "Accounting and Reporting by Charities.. Statement of Recommended Practi￿ applicable to charities prepaTing their accounts in acwrdance with the FinancSal Reporting Standard applirable in Ihg UK and Republic of Ireland IFRS 1021 (effective q January 20191. Objectives and activltlès The object of the charity is lo promote the education lincludlng social and physical training) of boys and glrls by the ¢onduct and Maintenan￿ of a day and boarding school In or near Cranbrook in the County of Kent for boys and girls. The Trust 15 governed by a Tru51 Deed dated 11 July 1994. Alms and Objectlvgs The Trustees 8im lo provide suitable tuillon, boarding and other 8¢¢ommodation and sports f8cilllles for IhB staff, day and bo8rdlng students of Cionbrook School in order that the School can deliver th& ourriculum and co- CUrriCLJlum lo ils students, as well as boarding facilities for (hose Students who wish lo board. The Trustees Teceive no income for the provision of Core accommodation bul ronls are received by the Trust for the provision of housing for some staff on or near the campus. The Trustee8 ensure that the buildings and grounds are maintained and aim lo enhance the facilities available lo the School through refurblshrnenl and provision of additional accommodation and facilities when required. To 8¢hSeve this the Trustees raise additional funds from parents, fomier parents, Old Cranbrookians and the wider cornmunity through schemes of regular giving and appeals. The Tiustees also support various non currfcular activities of the School Including the House system, provSsion of prizes. SGholarship5 and through other grants and spending. A¢hlevements and perfonnanco SignifiGant activili8s and 8chievements againstobiectiv8$ Fln3nclal review Spendable funds are e8legorised betweèn those which are available for Spending at the discretion of Trustees C'unreslricted funds") and those which are subject lo condition or restriction I'reslricted funds"). The following balances were htrld al 31 March.. Buildlng extension fund Ireslricted fund) Property renewal fund Ire51ricted fund) Prize and gift fund Ireslricled fund) Scholarship endowment fund {ieslricted fund) Congreve exhibition knnd Ire51ricled fund) £7,451 12023.. £57.4561 £150,00012023.' £150,000) £61,52712023.' £46,959) £54.61912023.' £53,915) £8.S23 12023.. £8,623) Pemianenl enilowmenl fund £17,375.66612023: £17.343.3201 Unre8tr1cted funds £1.570,74412023.' £1,447,684) ReseNes policy 11 is the Trustees, policy lo maintain the unreslricled funds, which are the free reserves of the Irusl. at 8 level which equates lo approximately six month5 unrestricted expènditure. This provides sufficient funds lo cover management and 8dmlnislralion costs and to respond lo emergency expendIlu￿ which arise5 from time lo lime. The Reserves Pollcy Is subject to review on an annual basls. Invfjslmentpolicy The Trustees, policy is to maintain income whilst preserving tho real value of endowed inveslmenls. The Charilws Invè51menls have continued lo be managed in conformity with pollcy and the Trust Deed and their perfom)ance has matched expectation on the advice of our inveslmenl managers. The investment policy is subject to revlew on an annual basis. CRANBROOK SCHOOL TRUST TRUSTEES. REPORT ICONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Maiorrisks The Tiuslees regular review Ihg risks asso¢iated with function5. The GoveTning body of Cranbrook School is responsible for the management and operation of the school including the buildings,18nd. and other facAlilies owned by the Trust and is responsible for all relaled risk5. structure. governanc& and management TheTe are nine TrustBes, cornprising an ex-officio Trustee who is the incumbent of the present benefice of St Dunslan, Mo nominated by Kent County Council. one nominated by the Old Cranbrookigns Assoclalion and one by the University of Kent,. the remaining six are co-opted. The norninalions for the University of Kent and Kent County Council are currently vacant. Rev Rithard King is the cuirent vicar, and only one of the Kenl County CounrAI notninaled positions is vacant, the other position is filled by Ms S8r8h HamS110n. The Trustees meet three times during the year lo make any decisions necessary. When necessary. extraordinary meetings can bp called by the Chairtnan. Trustees The Trustees who seTved during the year weTe.' Mr J Peace MT P R Thompson MrGYoung Mr T Mullins rA Cragg MrGMay Ms S Hamilton IKCC Trustee) Ms N Dowler Ms F Whilelaw Mr J Wotlon Rev R King {Resigned 31 August 20231 (Reslgned 31 December 20231 (Appointed 1 D8cembeT 20231 {Resigned 31 August 2023) (Appointed 1 MaTch 2024) ReGniilment and appoinlm&nt of 1rii8le8s There should be eleven Trustees consisling of.. On8 ex.offiryo Trustee- being Ihp incumbent forthe limo being of Ihg benefi￿ of Sl. Dunstan, Cranbiook. Four nomlnated Trustees . being iwo nominated by Kent County Covncil, one by the Universily of Kent and ono by the Committeo of the Old Cranbrooklans A58ocialion. Six co-opted Trustees- who thTough residence. occupation or employment Dr olhenmise h8ve speclal knowledge of CranbTOOk. InduGllon and Iralnlng of tm8tees All Tru51ees are indu¢ted by the chaiim8n and are PTovidefl with a copy of the Charlty CornTnlssion booklet 'The Essential Trtjstee.. What you need to know" Publlc B•nefit The Trustees have complied with the duly in s17151 of the Charities Act 2011 to have regard tr) the public beneff( guidan￿ published by the Ch8rily Commission. CRANBROOK SCHOOL TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Auditor Ill accordance with the companls articles, a Te501ulion proposlng that Baxter & Co. be reappolnled as auditor of the company will be pul at a General Meeting. Dlsclosum of Infomiatlon to audltor Each of the Trustees has confirmed that there is no infomialion of which they arè aware which is relevant lo the audit, bul of which the auditor Is unaware. They have furtheT confirmed that they have taken app￿priate steps to identify such relÈvant infomalion and lo esiablish that the auditor is aware of such information. Mr J Peace Trust•e Trusteè CRANBROOK SCHOOL TRUST STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2024 Thè Trug1É8s are responsible for preparing the Trustees. Report and the financi81 slalements in accordance with applicable law and United Kingdom Accounting SlandaTds {United Kingdom Generally Accepted Accounting Practi￿1. Thè law applicable lo charities in England and Wales Tequires the Trustee8 to PTep81è financial slalemenls for each financial year which give a Irua and fair view of tho state of affairs of the Charity and of the incorning resource8 8nd application of resources of the Chaiity for that year. In preparing these financlal slatemenls, the Trustees are required to.. select 5uSlablg aceounting policies and then apply them consislenlly- observe the methods and principles in the Charilles SORP; make judgements and e51imales Ihal are reasonable and prudent., stale whelh6r applicable accounting standards have been followed, subje¢i to any material departures disclosed and explained the finandal slalemenls., and p￿pare the financial slalemenls on the going concem basis unless il is inappropriate to presume that the charity will continue In operation. The Trustees are responsible for keeplng sufficient accounling records Ihat disclose with reasonable accuracy at any time Ihe financial p05ilion of the Charlly and @nabl8 them to ensure that the financial slalemenls corllply with the Charities Aci 2011, the Charity (Accounts and Report51 Regul8lions 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the ChaTily and hen￿ for taking rea50n8ble steps for the prevention and detectlon ol fraud and othèr irregularities. CRANBROOK SCHOOL TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF CRANBROOK SCHOOL TRUST Opinion We have audited the finanaal slalèmenls of Cranbrook School Trust (thè 'Ch3rily'l for the year ended 31 March 2024 which comprise the slalemenl of financial activities, thè balance sheet and notes to the finanrAal statements, including significant accounting policies. The financial reporting framework that has beBn applied in their preparation Is applicable law and United Kingdom Accounting Standards, including FSnancial Reporting Standard 102 The Financial Reporting Standard appli¢&ble In the UK and Republic of Iraland (United Kingdom Ggneially Accepted Accounting Praclicel. In our opinion, the financlal statements.. give a true and fair view of the slate of the charlty's affairs as al 31 March 2024 and of its in¢omlng Te80urce5 and application of resources, for the yeaT then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounllng practi￿.. and have been prep8red Sn accordan￿ with the requirements of the ChariliesAcl 2011. Basis for oplnlon We conducted OUT audit in accordance with Intemalional Standards on Auditing (UK) IISAS (UK)) and applicable law. Our responsibililies under those standards are furiher described in the Audilorfs responsibilities for the audit of the financial slatgm8nts section of our report. We are indtrpendenl of the Charity in accordance with the ethical requirèmènts that 8re Televanl lo our audit of th& fin8nci81 slalemenls in the UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilrties in accordan￿ with these requirements. We believe that the audit evidence we have obtained 15 sufficient and appiopriale lo provide a basi5 for our opinion. Emphasis of rnatter: Analysls of not as$ets between funds Allenlion is drawn lo the narrative at the foot of note 20'Analysis of net assets betW6en funds. which describes the uncertainty as regards to the analysis of tangible fixed assets betr￿eeTh funds. Our opinion is not qualified in respect of this matler. Conclusions relating to golng ¢oncern In auditing the financial stalemonls, we have concluded that the Trustees, use of the going concern basis of accounting in the preparation of the financial statements Is appropriate. Based on the work we have perfomied, we have not identified any materi81 uncertainties relaling to events or conditions that, individually or ¢olledively, may cast significant doubt on the Charity'5 ability to continue as a going concern for a period of al le8s1 twelve rnonlhs from when tho finandal 8taternents are aulhoris8d for issue. Our re8ponsibililies and the responsibilitiès of the Trustees with respect lo going conceTn are describèd In the relevant sections of this report. Oth$r Infomiatlon The other information comprises the information Induded in the annual report other than the financial stalemonls and our audilorfs report Ihereon. The Trustees aTe responsible for the olher information contained within tho annual report. Our opinion on the financial slalemenls does not cover the olhor information and we do not expre58 any foTrn of assurance conclusion Ihereon. Our responsibility is lo read the other infomialion and, in doing so. consider whether the other Information is materially inconsislenl with the finanaal sialements or our knowledge obtained In the course of the audit, or otherwise appears lo be materially misstated. If we id9nlify such material inconsistencle5 or apparelll rnalerial misslalements, wè are required lo delemiine whether this gives rlse lo a material mis8ts1emenl in the financial statements Ihernselves. If, based on the work we have performed, we condudé that there is a material misststemenl of this other infomiation, wè Bre requireil lo 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 Mattérs on whlch we arè réqulr•d to rèptsrt by exception We have nothing to report in respecl of the followlng rnatters in relation lo which the Charities (Accounts and Reports) Regulations 2008 requlre us lo report lo you if. in our opinion.. the Information given In the finanGlal slalemenls is inconsislenl in any material respect with the Trustees. report.. OT sulficient 8¢¢ounlSng Tecords have not been kepl-, or the fin8ncial statèments are not In agreement with the accounting records.. OT we have not received all the Information and explanations we require for our audit. Responsibllltlès of Tw$tsa$ A5 explained more fully in the statement of Truslee5' responsibilities, the Trustees are responsible for the preparation of the financial slalements and for being satisfied that they give a true and fair view, and for such intemal control as the Trustees determine is necessary to enable the preparation of finanual stslemenls that are fr88 froTll material misstal8mènl, wh8lher dug lo fraud or erTor. In preparing the financial slalemenls. the Trustees are responsible for assessing the Charity's ability lo continue as a going concern, disclosing, as applicable, matters related lo going concern and using the going concem basis ol accounting unless the Trustees either intend lo cease OP8r8lons, or have no realistic allernalive but to do so. Audltorfs rosponsibilities for the audit of the financlal ststom¢nts We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance wilh the Act and relevant regulations made or having effed thereunder. OUT objectives are lo obtain reasonable assurance about whether the finanaal slalements as a whole are free from material misslalemenl. whether due to fraud or error, and to issue an audilovs report that indudes our opinion. Reasonable assurance is a high level of assurance bul is not a guaianlee that an audit conducted in accordance with ISAS (UK) will always delecl 8 tnalerial misslalemenl when il exists. Misslalemenls can arise from fraud or error and are consideTed rnalerial if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these ffinanaal statements. The exlenl to which OUT procedures are capable of detecting irregulaTltie5, including fraud, is detailed below. EnquSry of management and those charged with governance around actual and potenlial litigation and clairns. Enquiry of management to identify any instsnces of non-compliancè with laws and ￿gulatIons. Reviewing minutes of meetings of thosè chargéd with governance. Reviewing financial statement disclosures and lesling lo supporting documentation lo assess compliance with applicable laws and regulations. Auditing the risk of rnanagement override of controls. including through lesling journal entries and other adjuslmenls for appropriateness, and evaluating the business rationale of significant transactions outside th9 norm81 ¢ours& of busln8s$. A further description of our responsibilities is available on the Financial Reporting Coun¢il's website al.. hlips.'Il www.fr&org.uklaud6tor8re5ponsibilitl8s. Thls de8crSpllon forms part of our audllorfs report. CRANBROOK SCHOOL TRUST INDEPENDENT AUDITOR'S REPORT {CONTINUED) TO THE TRUSTEES OF CRANBROOK SCHOOL TRUST Use of our report This Teport is made solely to the company's merllbers, as a body. in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken 80 that we rnight state lo the company's members those rnattgr3 we are required lo slate lo them in an auditor's report and for no other purpose. To the fullest oxienl permitted by law. we do nol accept or assume responsibility to anyone other than the company and the company's rnembers as a body, for our audit Work, for this report. or for the opinions we have formed. Loul$• Holl$worth FCA Isenior Statutory Auditor) for and on behalf of Baxter & Co 29 January 2025 Charteled Accountants Statutory Auditor Lynwood House Crofton Road Orpington Kent BR6 8QE 8axter & Co is eligible for appointment 8s auditor of the Charity by virtue of its eliglbillly for appointment as auditor of a company under seeiion 1212 of the Companies Act 2006. CRANBROOK SCHOOL TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024 Current financlyl yèay Unrestrlct•d funds 2024 Restrlcted Endovmient funds fund$ 2024 2024 Total Total 2024 2023 Income and èndowmonts from: Donation5 and legacies Charitable activities Otherlrading 8clivilies Investmen15 Othor inc(trma 89,585 97,487 207,172 28.895 1.931 2,485 92,070 97,487 207,172 54,628 1,931 3.847 108.032 148.71 S 33.867 25,733 Total Incomg 425.070 28,218 453,288 294.645 Expendlture on: Raising funds Charitable actiwlies 124.999 170,950 124.999 247.770 98,706 124,612 7fj,820 Total expenditurn 295,949 76.820 372,769 223,318 Net gainsloossesl on Investments 14 1,357 6,450 32,346 40,153 122,0091 Nèt Incomellexpendibjrel and movement In funds 130.478 142.1521 32,346 120,672 49,318 Reconclllatlon of funds: Fund balances al 1 April 2023 1.429.943 334,694 17,343,320 19,107.957 19,058.639 Fund balances at 31 March 2024 1,560,421 292,542 17,375.666 19.228.629 19,107,957 The slalemenl of finallclal actlvilles indudes all gains and losses recognised in the year. All income and expendllure derive from continuing activities. CRANBROOK SCHOOL TRUST STATEMENT OF FINANCIAL ACTIVITIES {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Prior flnanelal yèar UnreBtricted funds 2023 Restricted Endowment fundB fundB 2023 2023 Totsl 2023 Note8 Income and endowments from: Donations and legacies Charitable aclimlies Olherlrading activities Investments Other income 3,847 3.847 108,032 148,715 33,867 184 108,032 148.715 17.400 16.467 Total Incomè 274,331 20,314 294,645 Expenditure on: Raising funds Charitsble acliwlies 98,706 41.788 98.706 124,612 82.824 Total èxpendlturo 140,494 82,824 223,318 Net g8inslUosse51 on investments 14 I4.4￿) {5,463) 112,050) 122.0091 Net Incomollexpendlture) and movement in funds 129.341 {67.9731 {12,050} 49,318 Reconciliatlon of fund5: Fund balances 81 l April 2022 1,300,602 402.867 17,355,370 19.058,fj39 Fund balances at 31 March 2023 1,429,943 334,694 17,343,320 19.107,957 CRANBROOK SCHOOL TRUST BALANCE SHEET AS AT31 MARCH 2024 2024 2023 Notss Flxed assets Tangible assets Investments 16 17 17,546.190 627.561 17,546.190 587,408 18,173.751 18,133.598 Current assets Stocks Oebtors Cash at bank and In hand 18 4,704 7,852 1,083,107 3.519 15,751 974,033 1,095.663 993,303 Creditors: amounts falling du• withln one year 20 140,785) 118,9441 Net currént assets 1.054,878 974.359 Total assets lèss Current Ilabilitles 19,228,629 19.107,957 The funds of the Charlty Endowment funds Restricted income thnds Unrestricted funds 21 22 23 17,375,666 292,542 1.560,421 17,343.320 334,694 1.429,943 19.22B,629 19.107,957 0112025 The anci31 statements were appToved by thè Trustees on . eace Tru$t6e Truste 10- CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 IWARCH 2024 Accountlng pollcl•8 Charity information Cranbrook School Trust is a Charity. 1.1 Accounting conventlon The financlal statements have been prepared in accordance with the CharilWs Trust Deed, the Charities Aci 2011. FRS 102 °The Financial Reporting Standard applicable in the UK and Rèpublic of Ireland" I'FRS 102.1 and the Charilies SORP "Ac¢ounling and Reporting by Charits'es.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Finan¢ial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" {effealwe 1 January 20191. The Charity is a Public Benefit Entity a8 definèd by FRS 102. The Charity has tsken advantage of the proM8ions in the SORP for chal￿eS not to prepare a Statement of Cash Flows. 1.2 Golng Concern At the lime of approving the flnancial slalernent8, the Trustees have a feasonable expectation that the Charity has adequate reSour￿S lo continue in operational existen￿ for the foreseeable future. Thus the Trustees continue lo adopt the going concern basis of accounting in preparing the financial stalem8nls. 1.3 Charitabla funds Unrestricted funds are 8vailable for use 81 the discretion of the Trustees in furtherance of their charitable objectives. The Charfty has certain restrfcted funds where specific conditions have been imposed by thè donor. Further details can be found in note 22. The Charily has certain pemianenl endowrnents which Comprise the land, buildings and foundation investments. 1.4 Incomo All voluntary income Is induded in income on receipt except where the donor requires the sum to be invested to pro￿de income for the Charills purposes, In which case il is Irealed as an endowment. Donallon5 under deeds of covenant, and gift aid together whh the associated income tax recovery. are recognised 8s income when the donation is received. Endowments are credlled directly lo an Endowmènt Fund balance when re¢elved. They are not induded as income because they musl be invested and do not reprèsent income whieh the Charity may use direcuy for ils purposes. Restricted income is induded in the restricted income and expendlture account on receipt. CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (Continuedl 1.S Expenditure Expenditure is recogni5ed once there is a legal or constructive obligation lo transfer economic benefit to a third party, il is probable that a Iiansfer of economic benefits will be iequired in selllemenl, and the amount of the obligation can be measured reliably. Expènditure is classified by actithty. The ¢osls of each activity are rnade up of the lotsl of diTeci costs and shared cosls, including support C0515 involved in undertaklng ead) activity. Direct C0515 attribul8ble to a single activity are allocated directly lo that aclivily. Shared c0515 which contribute to more than one acllvily and support costs which are not attribulablo to a single activity are apportioned between those activities on a basts conslslenl with tho use of resources. The cost of geneiallng funds comprises costs incurred in encour8ging people or organisalions lo wnlribule financially lo the Charity's work. 11 includes the costs of advertising for lunds and the costs of mountlng appe319. GoveTnance c0515 oomprise all costs incurred in ensurfng the public accounlabilily of the Charfly and its Complian￿ with regulallon 8nd good practice. 1.6 Tanglble fixed assets Properties whose fair value can be measured reliably are held under the revaluation model and are ¢arried 8t 2 revalued arnounl, being their fair value at the dale of valuation less any subsequent accumulated depreciation and subsequent accumulalod impairment losses. The Trustees considèr that the estimated residual v8lu& of the buildings is equal to the carrying value and as a result depreciation is not provided. The fair value of the land 8nd buildings is usually considered to be their market value. Revalualion gains and losses are recognls8d In other recognised gains and losses and 8ccumulaled in equity, except lo the extent that a revaluation gain TeveTSe5 a revaluation loss previously Tecognised in nel in¢omal {expenditure} or a revaluation Ios5 exceeds the accumulated revaluation g8ins recognised in equity.. such gains and loss are recognised in nel incomel{expendilure) for the year. Freehold land and assets in the course of conslructlon are not depreaated. 1.7 Flx•d asset investments Investments are included in the accounts al year end market value. Invostmènt Income Dimdends are CTediled to the Income and expendiluTe account when they are received. Credlt Is tsken for interest and ￿ntaI income when the interest or rent falls due for payment. 1.8 sto¢k8 SloGks consist of items purchasèd for re-8ale Ihrovgh th8 Charity's trading actiwlie8. The stock is included al the lower Df co81 or nel realisable value. 12- CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Critical accountlng estlmatgB and judgements In the application of the Charity's aceounling policies, the Trustees are requlred lo make judgement5. eslimale5 and assumpi¢ons about the carrying amount of assets and liabllilies that are not readily apparent from other sources. The eslimales and associatèd assumptions arè based on historical expeiience and other factors thal ar8 considered lo be relevant. Actual resulis may differ from these estimates. The e51imales and underfying assumptions are reviewed on an ongoing basis. Revisions lo accounting eslimales are recognised in the period in whith the eslimate is revised where lh& revision affects only that period, or in the period of the revision and future periods where the ievision affects both current and future peiiods. Incom8 from donatlons and legacles Unrestricted Restrfcted funds funds 2024 2024 Total Unrestr5ctsd Restricted funds funds 2023 2023 Totsl 2024 2023 Donations and gifts 89,585 2,485 92,070 3.847 3,847 Incorne from charltsble activities Unrestricted funds 2024 Unroslrlcted fund$ 2023 Charitable incoma Charitable rental income 97,487 108,032 Income from oth•r tradlng activities Unrestrl¢t¥d Unrestrfcted funds funds 2024 2023 Lettings incomè Queens Hall events Income Other income 149,430 32,482 25,260 118,128 11,585 19,002 Other tradSng actitrilies 207.172 148.715 Further details of tradlng 8Ctivilies undertaken by the Charity can be found in note 26. 13- CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Income from Investhiants Unrestricted Restklctsd funds funds 2024 2024 Total Unrestrlcted Restricted funds funds 2023 2023 Total 2024 2023 OlheT income Inlerost receivable 6,703 22.192 10.322 15.411 17,025 37,603 7,279 10,121 9,444 7.023 16,723 17,144 28.895 25.733 54,628 17,400 16.467 33,887 Other income Unr¢8trleted Unrestricted funds funds 2024 2023 Other income 1,931 Expenditurg on ralslng funds Unrestrlcted Unrestricted funds fund5 2024 2023 TTadlng costs Share of governance Costs Summer letting expensès Letiings expenses Advertlsing Other fundraising costs 1,000 17.285 74,149 29,733 2.832 1,000 63.045 21,776 12,883 124,999 98,706 Further dètsils of trading a¢tivillB8 undertaken by the Charity can be found in note 26. 14- CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 Expenditure on Charitable aetlvltle8 Charitabl Charltabl expendituro expendlture 2024 2023 Dlrèet Cost5 Salary recharge- Clerk lo Trustees Cranbrook School Donations Cranbrook Sthool Facilities Donatiorns Awards and prizes Salary recharge- Development Officer 15,944 20,247 36,560 37,900 8,￿4 17,741 212,985 9,095 5,246 243,270 120,B12 Share of support and governanc8 costs (see nots 10) GoveTnance 4.500 3,800 247.770 124.812 Analysis by fund UnTeslricled funds Restricted funds 170,950 76,820 41,788 82,824 247.770 124.612 10 Support costs allocated to actlvities 2024 2023 Govemance costs 5.500 4,8 Analysed between: Fundraising Charitable expenditure 1,000 4,500 1.000 3,800 5,500 4,800 11 Net movement funds 2024 2023 The nel movement in funds Ss stated after charglngllcredilingl.. Fees payable for the audit of thè charity's financial statements 5.500 4,800 15- CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 12 Trustees None of the Trustees lor any persons connecied with them) re￿iVed any remuneration or benefits from the Ch8Tlty during the year. During the year, Property expense5 lolalling £nil12023'. £900} were Teimbursed directly lo O Truslee12023.' 1 Trusleg). 13 Employees The Charity does not employ any staff. however resources from the Cranbrook School Academy Trust are used and cosls are recharged lo the Charily on a lime spent basis. There were no employees whose annual remuneration was more than £60.000. 18- vjw 4fj p) CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIA¥STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 IS Taxatlon The charity is exempt from laxalion on lis activities because all Ils income is applied for charitable purposes. 16 Tanglble fixed assets Fvoohold l&nd And bulldlngs Cost Al 1 April 2023 17,546,190 Al 31 March 2024 17,546,190 Carrylng amount Al 31 March 2024 17,546.190 Al 31 March 2023 17.546.190 The sale proceeds in 1988 of part of RamTnell Garden and part of Scott Field were ¢rediled to Ihg Capital Fund. In 1987 and 1989, the Charity Commissioners approved that the Tiuslees could expend out Df the capital of the Charity a surn of not more than £200,000 towards the cost of constructing a new science block exiension (overbLJildingl and also a sum of not moTe than £162,144 towards the cost of constructing a new sports hall. This expense was aulhorised on condition that the sum was recouped from chaiitable incorne al a yeady Tale 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 sum5 wore inve51pd In Ch8rishare Common Investment Fund Accumu131ion shares included the Foundation Investments on the Balance Sheet. On 19 July 20f 7. the Charity Commission directèd that the recovpmenl ceased lo have effect. The Charity Commission 8180 aulhori3ed the Trus18e5 to spend the funds from selling the investments held using the proceeds fro¥n the sale of paTt of RamTnell Garden in 1988 from the Charity'5 permanent endowment for the purpose of funding building works at Cranbrook School. As a result, the Truslees have made donations from the Charitys pemianenl endowment tolalling £577,828 to fund building work al the School whlch has enhanced the value of the CharSWs ¥sset8 as reflected the IncTease In valuation of the property. The properlie5 were valued in 1997 by Robert Ingram & Company, Chartered Surveyors, on an gxisting use basls. 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 pioperties and consider that, based on the Incroase in Commèr¢ial Property Price Index, the properties held within the permanent fund had increased In value by 25% on an e￿stIng use basis sincè 1997 and this increase of £3.39m has been reflected in the accounts. During the year lo 31 March 2017, the Trust started lo make VATable supplies on sorne land11 had acquired In 2013. A8 a re5uII the Trust was able lo 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 whlch are an Intrinsic part of the school's history. The Trustees consider that there is no reliable cost or value which can be attributable lo these items and accordingly they have not been capilalised in the financial statements. 18- CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 17 Fixed asset Investments Unlisted Invesknents Cost or valuatlon At 1 April 2023 Valuation changes 587.408 40.153 Al 31 March 2024 627,561 C#rrylng gmount Al 31 March 2024 627,5fj1 Al 31 March 2023 587,408 Fixed asset investments revaluèd Fixed asset inveslmenis are recorded in the accounts at their open market value. any movements In value are recorded in the Slalemenl of FinancialActivilies. Below are d¢tslls of the original cost and split by fund.. F•lr value of financlal assets carried at amortlBed cost Except as detailed below the Trustees belleve that the carrying 8mounts of financial assets carried at amortised cost in the financi81 slalement8 approximate to theirfair values. Flnanclal assets Carrying amount 2024 Origlnal eo$t 2024 2023 2023 Unrestricted- William Rootes Gift Fund UnreslTiCted- Vickers Fijnd Restricted- Websler Exhibition Fund ReslriGted- SEF Restricted- General Fund Endowrnenl-Army Prize Endowment- Joss Prize Endowment- SEF Endowment- Congreve Endowment- Other 33,606 47,031 33,101 32,079 58,906 1,306 5,068 76,403 13,034 327,026 34,232 45,050 30,353 31,551 55,731 1,198 4,647 77,180 12,483 294.963 16,818 30,000 3,217 12.835 8.082 500 3.000 21.925 4.000 57,060 16,818 30.000 3.217 12.835 8.082 500 3,000 21,925 4,000 57,080 q8 Stocks 2024 2023 Slallonary and other consumables 4,704 3,519 19- CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 19. Debtors 2024 2023 Amounts falllng due within one yeAr. Trade debtors Prepayments and accrued Income 717 7.135 3.074 12,677 7,852 15,751 20 Creditors.. amounts fglllng due within one y•ar 2024 2023 Other taxation and social security Trade creditors Other creditors 3,204 26,177 11.404 1,918 8,149 8.879 40,785 18,944 21 Endowment funds Endowm8nl funds represent assets which must be held permanently by the Charity. Income ari￿ng on the endowrnenl funds can be used in accordance with the objects of the Charity and is indud8d as unrestricted income. Any capital u8lllS OT losses arising on the a55ets form part of Ihe fund. At 1 Aprll 2023 Gains and At 31 March losses 2024 Pemianent endowmghts 17.343.320 32.346 17.375,666 Previous year: At l Aprll 2022 Goln$ and At 31 March losses 2023 Pomi8n•nt endowments 17,355,370 112.050) 17,343.320 20- CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 22 Restrlcted funds The restricted funds of the charity compiise the unexpended balancos of donations and grants held on Iwsl 8uble¢t to speufic condltlons by donors as lo how Ihey may be used. At 1 Aprll 2023 In¢omlng Resources resources expended TransfèY¥ Galns and At 31 March losses 2024 Building extension fund Property renewal fund Prize and gift fund Scholarshlp endowment fund Congreve exhlbition fund 57,456 17.720 {87,7251 7,451 150,000 150,LKJO 64.700 3.688 {9,0951 5,922 65.2-13 53,915 6,381 528 60,824 8,623 431 9,054 334,694 28,218 176.8201 6,450 292,542 Prevlou¥ year.. At 1 April 2022 Incomlng resources Rèjources expended Transfers Galn¥ and At 31 March 108se5 2023 Building extension fund Property renewal fund Prize and gift fund Scholarship endowment fund Congreve exhlbitson fund 121,126 10,790 137,9001 {36,5801 57.456 150,OC4J 150.000 73,751 3,141 144,9241 36,560 13,8281 84.700 49.674 5,875 11.6341 53,915 8,115 508 8,623 402,666 20,314 182,8241 15.4621 334,694 21 CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 22 Rèstrlctad funds (Continued) The Charity's unTeslricted funds consist of funds which the Charity may use for ils purposes at ils disL¥etlon. The Charity has certain reslrl¢ted fund8 where speclfic condillon5 have been imposed by the donor. These are as follows.. Bulldlny extenslon fund IBEFI Funds donated for the planning and construction of buildings. the purchase of18nd, thè payment of loan charges and such other purposes that the Trustees may decide from time to lime. Property rènèwal fund A provi51on made from the Bullding Extenslon Fund towards the replacement of the astro turf. Prlze and glft fund Funds donated for the purchase of prizes to be awarded to pupils and for le8ving exhibitions for pupils going lo a university. Scholarshlp endowment fund ISEFI Funds donaled for the granting of Scholarships and bursaries and for the general promollon 8nd encouragement of education al the school. Congreve exhibition Funds donated for the purposes of providing a leaving exhibition for pupils going to a recogni5ed unlver51Ly In Great Britain or Northern Ireland. The Charity has certain perrnanenl endowments which comprise land. buildings and foundallon Inve51menls. 23 Unrestrlet•d fund$ The unrestricted funds of the charity COrnPTise Ihe unexpended balances of donation8 and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include de51gn8led fund5 whith have been set aside out of unreslriBled funds by the trustees for specific p￿rpoSeS. At 1 Aprll 2023 Incomlng re30urces Resourcas expended Galns and At 31 March Ioss8S 2024 General funds 1,429,943 425,070 1295,9491 1.357 1,560,421 Prevlous year: At 1 April 2022 Incomlng r•$ourcès Resources expended Galns and At 31 March losseB 2023 General funds 1.300,602 274,331 {140,494} 14.496) 1,429,943 -22- CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 24 Analysis of net assets be￿en funds Unrestricted funds 2024 Restrlcled Endowment funds funds 2024 2024 Total 2024 At 31 March 2024: Tangible assets Investments Current assetsllliabilitsesl 594.550 79.449 886.422 16,951.840 424,026 17,546,190 627,561 1,054,878 124.086 168,456 1,560,421 292,542 17,375,666 19,228,629 Unrestrlcted funds 2023 R•strlctèd Endowment fund$ funds 2023 2023 Tolal 2023 At 31 March 2023: Tangiblè assois Investments Current asselslOiabilili8sl 594,550 78,093 757,300 16,951,640 391,680 17.546,190 587,408 974.359 117.635 217.059 1.429.943 334,694 17.343,320 19,107,957 In preparing these accounts, the Trust have analysed Tangible Fixed Asse15 of £16.951.840 to the Pemanenl Endowment Fund and £594,550 to Unrestricted Funds. The Trustees have used the besl of thèir knowledge and belief about the Trust's history and the status of Èach property lo arrive al the current analys15. Due lo the age of some of the properties concerned, il is not always possible to support the Trustees. knowledge and belief with docurnentalion and hence there remains an element of uncertainty about the accuracy of the classification. Th15 Iiealment is currently under review by th6 Trustees. 26 Relatsd party transactlons The Cranbrook School Academy Trust (Company number.. 07794423) {Ihe "AcadernV'I is a related party by vlrtue of the fact that some of the Trustees of the Charity are also Governors of the Academy. During the year rental income was received fioTll the Academy of £97,487 12023.. £108,032) and other trading income of £1,636 12023.. £3,666). Donations of £212,985 12023.. £74,460) were rnade lo the Academy. In addition expenses were recharged. at cost, by the Academy for other resources amounting lo £102.086 12023.. £94.2601. Al the year end the Charity was owed £6.812 12023.. £9,002) and this is included within debtors within one year. The Academy was owed £28,195 {2023'. £6,044) by the Chaiity and this is included in creditors within one year. -23- CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 28 Tradlny Account Lettlng5 Quo8n'8 Hall gvents Mlsc Totql 2024 2024 2024 2024 Income Sales 150,406 32,482 25,260 208,148 150.406 32,482 25,260 208,148 Dirgct costs Opening stock Purchases Closlng Stock 3,519 17.940 14,7051 3,519 17,940 14.705) 16,754 16,754 Gross profit 133,652 32,482 25,260 191,394 Expenses Production 8xpense8 S81ary recharges Catering Maintenance Cleaning and laundry Utility charges Copier charges AdvertisinglPrinting Worldpay charges Website costs iscellaneous 18,079 7,574 420 1,091 19,170 43,447 29,874 922 2,888 5,546 89 3,359 801 15 582 35.873 29,454 922 2.888 5,546 89 3,359 798 15 194 388 74,149 29,733 2,811 106,693 Net surplus of trading activities 59,503 2,749 22,449 84,701 -24- Charlty registratlon number 290237 CRANBROOK SCHOOL TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 CRANBROOK SCHOOL TRUST LEGAL AND ADMINISTRATIVE INFORMATION Trustees Mr J Peace Mr P R Thompson Mr G Young MrA Cragg s S Hamilton IKCC Trusleel Ms N Dowler Ms F VVhSlelaw Rev R ￿ng (Appointed 10ecember 2023) (Appointed 1 March 20241 Charlty numbar 290237 Audltor Baxter & Co Lynwood House Crofton Road Orpington Kent BR6 8QE CRANBROOK SCHOOL TRUST CONTENTS P?gg Trustee5' report Statement of Truslee5' responslbllltles Independent audilovs report stalernenl of finandal actiwties Balance sheet 10 Notes to the financial statements CRANBROOK SCHOOL TRUST TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2024 The Tiustees piesenl their annual rep()rt and financial stalernents for the year endod 31 March 2024. The financial slalements have been prepared In accord8nce with Ihe 8ccounling pollde5 sel out in note 1 to the financial statements and comply with the Charity's goveming document, the Charities Act 2011 and "Accounting and Reporting by Charities.. Statement of Recommended Practi￿ applicable to charities prepaTing their accounts in acwrdance with the FinancSal Reporting Standard applirable in Ihg UK and Republic of Ireland IFRS 1021 (effective q January 20191. Objectives and activltlès The object of the charity is lo promote the education lincludlng social and physical training) of boys and glrls by the ¢onduct and Maintenan￿ of a day and boarding school In or near Cranbrook in the County of Kent for boys and girls. The Trust 15 governed by a Tru51 Deed dated 11 July 1994. Alms and Objectlvgs The Trustees 8im lo provide suitable tuillon, boarding and other 8¢¢ommodation and sports f8cilllles for IhB staff, day and bo8rdlng students of Cionbrook School in order that the School can deliver th& ourriculum and co- CUrriCLJlum lo ils students, as well as boarding facilities for (hose Students who wish lo board. The Trustees Teceive no income for the provision of Core accommodation bul ronls are received by the Trust for the provision of housing for some staff on or near the campus. The Trustee8 ensure that the buildings and grounds are maintained and aim lo enhance the facilities available lo the School through refurblshrnenl and provision of additional accommodation and facilities when required. To 8¢hSeve this the Trustees raise additional funds from parents, fomier parents, Old Cranbrookians and the wider cornmunity through schemes of regular giving and appeals. The Tiustees also support various non currfcular activities of the School Including the House system, provSsion of prizes. SGholarship5 and through other grants and spending. A¢hlevements and perfonnanco SignifiGant activili8s and 8chievements againstobiectiv8$ Fln3nclal review Spendable funds are e8legorised betweèn those which are available for Spending at the discretion of Trustees C'unreslricted funds") and those which are subject lo condition or restriction I'reslricted funds"). The following balances were htrld al 31 March.. Buildlng extension fund Ireslricted fund) Property renewal fund Ire51ricted fund) Prize and gift fund Ireslricled fund) Scholarship endowment fund {ieslricted fund) Congreve exhibition knnd Ire51ricled fund) £7,451 12023.. £57.4561 £150,00012023.' £150,000) £61,52712023.' £46,959) £54.61912023.' £53,915) £8.S23 12023.. £8,623) Pemianenl enilowmenl fund £17,375.66612023: £17.343.3201 Unre8tr1cted funds £1.570,74412023.' £1,447,684) ReseNes policy 11 is the Trustees, policy lo maintain the unreslricled funds, which are the free reserves of the Irusl. at 8 level which equates lo approximately six month5 unrestricted expènditure. This provides sufficient funds lo cover management and 8dmlnislralion costs and to respond lo emergency expendIlu￿ which arise5 from time lo lime. The Reserves Pollcy Is subject to review on an annual basls. Invfjslmentpolicy The Trustees, policy is to maintain income whilst preserving tho real value of endowed inveslmenls. The Charilws Invè51menls have continued lo be managed in conformity with pollcy and the Trust Deed and their perfom)ance has matched expectation on the advice of our inveslmenl managers. The investment policy is subject to revlew on an annual basis. CRANBROOK SCHOOL TRUST TRUSTEES. REPORT ICONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Maiorrisks The Tiuslees regular review Ihg risks asso¢iated with function5. The GoveTning body of Cranbrook School is responsible for the management and operation of the school including the buildings,18nd. and other facAlilies owned by the Trust and is responsible for all relaled risk5. structure. governanc& and management TheTe are nine TrustBes, cornprising an ex-officio Trustee who is the incumbent of the present benefice of St Dunslan, Mo nominated by Kent County Council. one nominated by the Old Cranbrookigns Assoclalion and one by the University of Kent,. the remaining six are co-opted. The norninalions for the University of Kent and Kent County Council are currently vacant. Rev Rithard King is the cuirent vicar, and only one of the Kenl County CounrAI notninaled positions is vacant, the other position is filled by Ms S8r8h HamS110n. The Trustees meet three times during the year lo make any decisions necessary. When necessary. extraordinary meetings can bp called by the Chairtnan. Trustees The Trustees who seTved during the year weTe.' Mr J Peace MT P R Thompson MrGYoung Mr T Mullins rA Cragg MrGMay Ms S Hamilton IKCC Trustee) Ms N Dowler Ms F Whilelaw Mr J Wotlon Rev R King {Resigned 31 August 20231 (Reslgned 31 December 20231 (Appointed 1 D8cembeT 20231 {Resigned 31 August 2023) (Appointed 1 MaTch 2024) ReGniilment and appoinlm&nt of 1rii8le8s There should be eleven Trustees consisling of.. On8 ex.offiryo Trustee- being Ihp incumbent forthe limo being of Ihg benefi￿ of Sl. Dunstan, Cranbiook. Four nomlnated Trustees . being iwo nominated by Kent County Covncil, one by the Universily of Kent and ono by the Committeo of the Old Cranbrooklans A58ocialion. Six co-opted Trustees- who thTough residence. occupation or employment Dr olhenmise h8ve speclal knowledge of CranbTOOk. InduGllon and Iralnlng of tm8tees All Tru51ees are indu¢ted by the chaiim8n and are PTovidefl with a copy of the Charlty CornTnlssion booklet 'The Essential Trtjstee.. What you need to know" Publlc B•nefit The Trustees have complied with the duly in s17151 of the Charities Act 2011 to have regard tr) the public beneff( guidan￿ published by the Ch8rily Commission. CRANBROOK SCHOOL TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Auditor Ill accordance with the companls articles, a Te501ulion proposlng that Baxter & Co. be reappolnled as auditor of the company will be pul at a General Meeting. Dlsclosum of Infomiatlon to audltor Each of the Trustees has confirmed that there is no infomialion of which they arè aware which is relevant lo the audit, bul of which the auditor Is unaware. They have furtheT confirmed that they have taken app￿priate steps to identify such relÈvant infomalion and lo esiablish that the auditor is aware of such information. Mr J Peace Trust•e Trusteè CRANBROOK SCHOOL TRUST STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2024 Thè Trug1É8s are responsible for preparing the Trustees. Report and the financi81 slalements in accordance with applicable law and United Kingdom Accounting SlandaTds {United Kingdom Generally Accepted Accounting Practi￿1. Thè law applicable lo charities in England and Wales Tequires the Trustee8 to PTep81è financial slalemenls for each financial year which give a Irua and fair view of tho state of affairs of the Charity and of the incorning resource8 8nd application of resources of the Chaiity for that year. In preparing these financlal slatemenls, the Trustees are required to.. select 5uSlablg aceounting policies and then apply them consislenlly- observe the methods and principles in the Charilles SORP; make judgements and e51imales Ihal are reasonable and prudent., stale whelh6r applicable accounting standards have been followed, subje¢i to any material departures disclosed and explained the finandal slalemenls., and p￿pare the financial slalemenls on the going concem basis unless il is inappropriate to presume that the charity will continue In operation. The Trustees are responsible for keeplng sufficient accounling records Ihat disclose with reasonable accuracy at any time Ihe financial p05ilion of the Charlly and @nabl8 them to ensure that the financial slalemenls corllply with the Charities Aci 2011, the Charity (Accounts and Report51 Regul8lions 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the ChaTily and hen￿ for taking rea50n8ble steps for the prevention and detectlon ol fraud and othèr irregularities. CRANBROOK SCHOOL TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF CRANBROOK SCHOOL TRUST Opinion We have audited the finanaal slalèmenls of Cranbrook School Trust (thè 'Ch3rily'l for the year ended 31 March 2024 which comprise the slalemenl of financial activities, thè balance sheet and notes to the finanrAal statements, including significant accounting policies. The financial reporting framework that has beBn applied in their preparation Is applicable law and United Kingdom Accounting Standards, including FSnancial Reporting Standard 102 The Financial Reporting Standard appli¢&ble In the UK and Republic of Iraland (United Kingdom Ggneially Accepted Accounting Praclicel. In our opinion, the financlal statements.. give a true and fair view of the slate of the charlty's affairs as al 31 March 2024 and of its in¢omlng Te80urce5 and application of resources, for the yeaT then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounllng practi￿.. and have been prep8red Sn accordan￿ with the requirements of the ChariliesAcl 2011. Basis for oplnlon We conducted OUT audit in accordance with Intemalional Standards on Auditing (UK) IISAS (UK)) and applicable law. Our responsibililies under those standards are furiher described in the Audilorfs responsibilities for the audit of the financial slatgm8nts section of our report. We are indtrpendenl of the Charity in accordance with the ethical requirèmènts that 8re Televanl lo our audit of th& fin8nci81 slalemenls in the UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilrties in accordan￿ with these requirements. We believe that the audit evidence we have obtained 15 sufficient and appiopriale lo provide a basi5 for our opinion. Emphasis of rnatter: Analysls of not as$ets between funds Allenlion is drawn lo the narrative at the foot of note 20'Analysis of net assets betW6en funds. which describes the uncertainty as regards to the analysis of tangible fixed assets betr￿eeTh funds. Our opinion is not qualified in respect of this matler. Conclusions relating to golng ¢oncern In auditing the financial stalemonls, we have concluded that the Trustees, use of the going concern basis of accounting in the preparation of the financial statements Is appropriate. Based on the work we have perfomied, we have not identified any materi81 uncertainties relaling to events or conditions that, individually or ¢olledively, may cast significant doubt on the Charity'5 ability to continue as a going concern for a period of al le8s1 twelve rnonlhs from when tho finandal 8taternents are aulhoris8d for issue. Our re8ponsibililies and the responsibilitiès of the Trustees with respect lo going conceTn are describèd In the relevant sections of this report. Oth$r Infomiatlon The other information comprises the information Induded in the annual report other than the financial stalemonls and our audilorfs report Ihereon. The Trustees aTe responsible for the olher information contained within tho annual report. Our opinion on the financial slalemenls does not cover the olhor information and we do not expre58 any foTrn of assurance conclusion Ihereon. Our responsibility is lo read the other infomialion and, in doing so. consider whether the other Information is materially inconsislenl with the finanaal sialements or our knowledge obtained In the course of the audit, or otherwise appears lo be materially misstated. If we id9nlify such material inconsistencle5 or apparelll rnalerial misslalements, wè are required lo delemiine whether this gives rlse lo a material mis8ts1emenl in the financial statements Ihernselves. If, based on the work we have performed, we condudé that there is a material misststemenl of this other infomiation, wè Bre requireil lo 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 Mattérs on whlch we arè réqulr•d to rèptsrt by exception We have nothing to report in respecl of the followlng rnatters in relation lo which the Charities (Accounts and Reports) Regulations 2008 requlre us lo report lo you if. in our opinion.. the Information given In the finanGlal slalemenls is inconsislenl in any material respect with the Trustees. report.. OT sulficient 8¢¢ounlSng Tecords have not been kepl-, or the fin8ncial statèments are not In agreement with the accounting records.. OT we have not received all the Information and explanations we require for our audit. Responsibllltlès of Tw$tsa$ A5 explained more fully in the statement of Truslee5' responsibilities, the Trustees are responsible for the preparation of the financial slalements and for being satisfied that they give a true and fair view, and for such intemal control as the Trustees determine is necessary to enable the preparation of finanual stslemenls that are fr88 froTll material misstal8mènl, wh8lher dug lo fraud or erTor. In preparing the financial slalemenls. the Trustees are responsible for assessing the Charity's ability lo continue as a going concern, disclosing, as applicable, matters related lo going concern and using the going concem basis ol accounting unless the Trustees either intend lo cease OP8r8lons, or have no realistic allernalive but to do so. Audltorfs rosponsibilities for the audit of the financlal ststom¢nts We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance wilh the Act and relevant regulations made or having effed thereunder. OUT objectives are lo obtain reasonable assurance about whether the finanaal slalements as a whole are free from material misslalemenl. whether due to fraud or error, and to issue an audilovs report that indudes our opinion. Reasonable assurance is a high level of assurance bul is not a guaianlee that an audit conducted in accordance with ISAS (UK) will always delecl 8 tnalerial misslalemenl when il exists. Misslalemenls can arise from fraud or error and are consideTed rnalerial if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these ffinanaal statements. The exlenl to which OUT procedures are capable of detecting irregulaTltie5, including fraud, is detailed below. EnquSry of management and those charged with governance around actual and potenlial litigation and clairns. Enquiry of management to identify any instsnces of non-compliancè with laws and ￿gulatIons. Reviewing minutes of meetings of thosè chargéd with governance. Reviewing financial statement disclosures and lesling lo supporting documentation lo assess compliance with applicable laws and regulations. Auditing the risk of rnanagement override of controls. including through lesling journal entries and other adjuslmenls for appropriateness, and evaluating the business rationale of significant transactions outside th9 norm81 ¢ours& of busln8s$. A further description of our responsibilities is available on the Financial Reporting Coun¢il's website al.. hlips.'Il www.fr&org.uklaud6tor8re5ponsibilitl8s. Thls de8crSpllon forms part of our audllorfs report. CRANBROOK SCHOOL TRUST INDEPENDENT AUDITOR'S REPORT {CONTINUED) TO THE TRUSTEES OF CRANBROOK SCHOOL TRUST Use of our report This Teport is made solely to the company's merllbers, as a body. in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken 80 that we rnight state lo the company's members those rnattgr3 we are required lo slate lo them in an auditor's report and for no other purpose. To the fullest oxienl permitted by law. we do nol accept or assume responsibility to anyone other than the company and the company's rnembers as a body, for our audit Work, for this report. or for the opinions we have formed. Loul$• Holl$worth FCA Isenior Statutory Auditor) for and on behalf of Baxter & Co 29 January 2025 Charteled Accountants Statutory Auditor Lynwood House Crofton Road Orpington Kent BR6 8QE 8axter & Co is eligible for appointment 8s auditor of the Charity by virtue of its eliglbillly for appointment as auditor of a company under seeiion 1212 of the Companies Act 2006. CRANBROOK SCHOOL TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024 Current financlyl yèay Unrestrlct•d funds 2024 Restrlcted Endovmient funds fund$ 2024 2024 Total Total 2024 2023 Income and èndowmonts from: Donation5 and legacies Charitable activities Otherlrading 8clivilies Investmen15 Othor inc(trma 89,585 97,487 207,172 28.895 1.931 2,485 92,070 97,487 207,172 54,628 1,931 3.847 108.032 148.71 S 33.867 25,733 Total Incomg 425.070 28,218 453,288 294.645 Expendlture on: Raising funds Charitable actiwlies 124.999 170,950 124.999 247.770 98,706 124,612 7fj,820 Total expenditurn 295,949 76.820 372,769 223,318 Net gainsloossesl on Investments 14 1,357 6,450 32,346 40,153 122,0091 Nèt Incomellexpendibjrel and movement In funds 130.478 142.1521 32,346 120,672 49,318 Reconclllatlon of funds: Fund balances al 1 April 2023 1.429.943 334,694 17,343,320 19,107.957 19,058.639 Fund balances at 31 March 2024 1,560,421 292,542 17,375.666 19.228.629 19,107,957 The slalemenl of finallclal actlvilles indudes all gains and losses recognised in the year. All income and expendllure derive from continuing activities. CRANBROOK SCHOOL TRUST STATEMENT OF FINANCIAL ACTIVITIES {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Prior flnanelal yèar UnreBtricted funds 2023 Restricted Endowment fundB fundB 2023 2023 Totsl 2023 Note8 Income and endowments from: Donations and legacies Charitable aclimlies Olherlrading activities Investments Other income 3,847 3.847 108,032 148,715 33,867 184 108,032 148.715 17.400 16.467 Total Incomè 274,331 20,314 294,645 Expenditure on: Raising funds Charitsble acliwlies 98,706 41.788 98.706 124,612 82.824 Total èxpendlturo 140,494 82,824 223,318 Net g8inslUosse51 on investments 14 I4.4￿) {5,463) 112,050) 122.0091 Net Incomollexpendlture) and movement in funds 129.341 {67.9731 {12,050} 49,318 Reconciliatlon of fund5: Fund balances 81 l April 2022 1,300,602 402.867 17,355,370 19.058,fj39 Fund balances at 31 March 2023 1,429,943 334,694 17,343,320 19.107,957 CRANBROOK SCHOOL TRUST BALANCE SHEET AS AT31 MARCH 2024 2024 2023 Notss Flxed assets Tangible assets Investments 16 17 17,546.190 627.561 17,546.190 587,408 18,173.751 18,133.598 Current assets Stocks Oebtors Cash at bank and In hand 18 4,704 7,852 1,083,107 3.519 15,751 974,033 1,095.663 993,303 Creditors: amounts falling du• withln one year 20 140,785) 118,9441 Net currént assets 1.054,878 974.359 Total assets lèss Current Ilabilitles 19,228,629 19.107,957 The funds of the Charlty Endowment funds Restricted income thnds Unrestricted funds 21 22 23 17,375,666 292,542 1.560,421 17,343.320 334,694 1.429,943 19.22B,629 19.107,957 0112025 The anci31 statements were appToved by thè Trustees on . eace Tru$t6e Truste 10- CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 IWARCH 2024 Accountlng pollcl•8 Charity information Cranbrook School Trust is a Charity. 1.1 Accounting conventlon The financlal statements have been prepared in accordance with the CharilWs Trust Deed, the Charities Aci 2011. FRS 102 °The Financial Reporting Standard applicable in the UK and Rèpublic of Ireland" I'FRS 102.1 and the Charilies SORP "Ac¢ounling and Reporting by Charits'es.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Finan¢ial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" {effealwe 1 January 20191. The Charity is a Public Benefit Entity a8 definèd by FRS 102. The Charity has tsken advantage of the proM8ions in the SORP for chal￿eS not to prepare a Statement of Cash Flows. 1.2 Golng Concern At the lime of approving the flnancial slalernent8, the Trustees have a feasonable expectation that the Charity has adequate reSour￿S lo continue in operational existen￿ for the foreseeable future. Thus the Trustees continue lo adopt the going concern basis of accounting in preparing the financial stalem8nls. 1.3 Charitabla funds Unrestricted funds are 8vailable for use 81 the discretion of the Trustees in furtherance of their charitable objectives. The Charfty has certain restrfcted funds where specific conditions have been imposed by thè donor. Further details can be found in note 22. The Charily has certain pemianenl endowrnents which Comprise the land, buildings and foundation investments. 1.4 Incomo All voluntary income Is induded in income on receipt except where the donor requires the sum to be invested to pro￿de income for the Charills purposes, In which case il is Irealed as an endowment. Donallon5 under deeds of covenant, and gift aid together whh the associated income tax recovery. are recognised 8s income when the donation is received. Endowments are credlled directly lo an Endowmènt Fund balance when re¢elved. They are not induded as income because they musl be invested and do not reprèsent income whieh the Charity may use direcuy for ils purposes. Restricted income is induded in the restricted income and expendlture account on receipt. CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (Continuedl 1.S Expenditure Expenditure is recogni5ed once there is a legal or constructive obligation lo transfer economic benefit to a third party, il is probable that a Iiansfer of economic benefits will be iequired in selllemenl, and the amount of the obligation can be measured reliably. Expènditure is classified by actithty. The ¢osls of each activity are rnade up of the lotsl of diTeci costs and shared cosls, including support C0515 involved in undertaklng ead) activity. Direct C0515 attribul8ble to a single activity are allocated directly lo that aclivily. Shared c0515 which contribute to more than one acllvily and support costs which are not attribulablo to a single activity are apportioned between those activities on a basts conslslenl with tho use of resources. The cost of geneiallng funds comprises costs incurred in encour8ging people or organisalions lo wnlribule financially lo the Charity's work. 11 includes the costs of advertising for lunds and the costs of mountlng appe319. GoveTnance c0515 oomprise all costs incurred in ensurfng the public accounlabilily of the Charfly and its Complian￿ with regulallon 8nd good practice. 1.6 Tanglble fixed assets Properties whose fair value can be measured reliably are held under the revaluation model and are ¢arried 8t 2 revalued arnounl, being their fair value at the dale of valuation less any subsequent accumulated depreciation and subsequent accumulalod impairment losses. The Trustees considèr that the estimated residual v8lu& of the buildings is equal to the carrying value and as a result depreciation is not provided. The fair value of the land 8nd buildings is usually considered to be their market value. Revalualion gains and losses are recognls8d In other recognised gains and losses and 8ccumulaled in equity, except lo the extent that a revaluation gain TeveTSe5 a revaluation loss previously Tecognised in nel in¢omal {expenditure} or a revaluation Ios5 exceeds the accumulated revaluation g8ins recognised in equity.. such gains and loss are recognised in nel incomel{expendilure) for the year. Freehold land and assets in the course of conslructlon are not depreaated. 1.7 Flx•d asset investments Investments are included in the accounts al year end market value. Invostmènt Income Dimdends are CTediled to the Income and expendiluTe account when they are received. Credlt Is tsken for interest and ￿ntaI income when the interest or rent falls due for payment. 1.8 sto¢k8 SloGks consist of items purchasèd for re-8ale Ihrovgh th8 Charity's trading actiwlie8. The stock is included al the lower Df co81 or nel realisable value. 12- CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Critical accountlng estlmatgB and judgements In the application of the Charity's aceounling policies, the Trustees are requlred lo make judgement5. eslimale5 and assumpi¢ons about the carrying amount of assets and liabllilies that are not readily apparent from other sources. The eslimales and associatèd assumptions arè based on historical expeiience and other factors thal ar8 considered lo be relevant. Actual resulis may differ from these estimates. The e51imales and underfying assumptions are reviewed on an ongoing basis. Revisions lo accounting eslimales are recognised in the period in whith the eslimate is revised where lh& revision affects only that period, or in the period of the revision and future periods where the ievision affects both current and future peiiods. Incom8 from donatlons and legacles Unrestricted Restrfcted funds funds 2024 2024 Total Unrestr5ctsd Restricted funds funds 2023 2023 Totsl 2024 2023 Donations and gifts 89,585 2,485 92,070 3.847 3,847 Incorne from charltsble activities Unrestricted funds 2024 Unroslrlcted fund$ 2023 Charitable incoma Charitable rental income 97,487 108,032 Income from oth•r tradlng activities Unrestrl¢t¥d Unrestrfcted funds funds 2024 2023 Lettings incomè Queens Hall events Income Other income 149,430 32,482 25,260 118,128 11,585 19,002 Other tradSng actitrilies 207.172 148.715 Further details of tradlng 8Ctivilies undertaken by the Charity can be found in note 26. 13- CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Income from Investhiants Unrestricted Restklctsd funds funds 2024 2024 Total Unrestrlcted Restricted funds funds 2023 2023 Total 2024 2023 OlheT income Inlerost receivable 6,703 22.192 10.322 15.411 17,025 37,603 7,279 10,121 9,444 7.023 16,723 17,144 28.895 25.733 54,628 17,400 16.467 33,887 Other income Unr¢8trleted Unrestricted funds funds 2024 2023 Other income 1,931 Expenditurg on ralslng funds Unrestrlcted Unrestricted funds fund5 2024 2023 TTadlng costs Share of governance Costs Summer letting expensès Letiings expenses Advertlsing Other fundraising costs 1,000 17.285 74,149 29,733 2.832 1,000 63.045 21,776 12,883 124,999 98,706 Further dètsils of trading a¢tivillB8 undertaken by the Charity can be found in note 26. 14- CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 Expenditure on Charitable aetlvltle8 Charitabl Charltabl expendituro expendlture 2024 2023 Dlrèet Cost5 Salary recharge- Clerk lo Trustees Cranbrook School Donations Cranbrook Sthool Facilities Donatiorns Awards and prizes Salary recharge- Development Officer 15,944 20,247 36,560 37,900 8,￿4 17,741 212,985 9,095 5,246 243,270 120,B12 Share of support and governanc8 costs (see nots 10) GoveTnance 4.500 3,800 247.770 124.812 Analysis by fund UnTeslricled funds Restricted funds 170,950 76,820 41,788 82,824 247.770 124.612 10 Support costs allocated to actlvities 2024 2023 Govemance costs 5.500 4,8 Analysed between: Fundraising Charitable expenditure 1,000 4,500 1.000 3,800 5,500 4,800 11 Net movement funds 2024 2023 The nel movement in funds Ss stated after charglngllcredilingl.. Fees payable for the audit of thè charity's financial statements 5.500 4,800 15- CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 12 Trustees None of the Trustees lor any persons connecied with them) re￿iVed any remuneration or benefits from the Ch8Tlty during the year. During the year, Property expense5 lolalling £nil12023'. £900} were Teimbursed directly lo O Truslee12023.' 1 Trusleg). 13 Employees The Charity does not employ any staff. however resources from the Cranbrook School Academy Trust are used and cosls are recharged lo the Charily on a lime spent basis. There were no employees whose annual remuneration was more than £60.000. 18- vjw 4fj p) CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIA¥STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 IS Taxatlon The charity is exempt from laxalion on lis activities because all Ils income is applied for charitable purposes. 16 Tanglble fixed assets Fvoohold l&nd And bulldlngs Cost Al 1 April 2023 17,546,190 Al 31 March 2024 17,546,190 Carrylng amount Al 31 March 2024 17,546.190 Al 31 March 2023 17.546.190 The sale proceeds in 1988 of part of RamTnell Garden and part of Scott Field were ¢rediled to Ihg Capital Fund. In 1987 and 1989, the Charity Commissioners approved that the Tiuslees could expend out Df the capital of the Charity a surn of not more than £200,000 towards the cost of constructing a new science block exiension (overbLJildingl and also a sum of not moTe than £162,144 towards the cost of constructing a new sports hall. This expense was aulhorised on condition that the sum was recouped from chaiitable incorne al a yeady Tale 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 sum5 wore inve51pd In Ch8rishare Common Investment Fund Accumu131ion shares included the Foundation Investments on the Balance Sheet. On 19 July 20f 7. the Charity Commission directèd that the recovpmenl ceased lo have effect. The Charity Commission 8180 aulhori3ed the Trus18e5 to spend the funds from selling the investments held using the proceeds fro¥n the sale of paTt of RamTnell Garden in 1988 from the Charity'5 permanent endowment for the purpose of funding building works at Cranbrook School. As a result, the Truslees have made donations from the Charitys pemianenl endowment tolalling £577,828 to fund building work al the School whlch has enhanced the value of the CharSWs ¥sset8 as reflected the IncTease In valuation of the property. The properlie5 were valued in 1997 by Robert Ingram & Company, Chartered Surveyors, on an gxisting use basls. 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 pioperties and consider that, based on the Incroase in Commèr¢ial Property Price Index, the properties held within the permanent fund had increased In value by 25% on an e￿stIng use basis sincè 1997 and this increase of £3.39m has been reflected in the accounts. During the year lo 31 March 2017, the Trust started lo make VATable supplies on sorne land11 had acquired In 2013. A8 a re5uII the Trust was able lo 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 whlch are an Intrinsic part of the school's history. The Trustees consider that there is no reliable cost or value which can be attributable lo these items and accordingly they have not been capilalised in the financial statements. 18- CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 17 Fixed asset Investments Unlisted Invesknents Cost or valuatlon At 1 April 2023 Valuation changes 587.408 40.153 Al 31 March 2024 627,561 C#rrylng gmount Al 31 March 2024 627,5fj1 Al 31 March 2023 587,408 Fixed asset investments revaluèd Fixed asset inveslmenis are recorded in the accounts at their open market value. any movements In value are recorded in the Slalemenl of FinancialActivilies. Below are d¢tslls of the original cost and split by fund.. F•lr value of financlal assets carried at amortlBed cost Except as detailed below the Trustees belleve that the carrying 8mounts of financial assets carried at amortised cost in the financi81 slalement8 approximate to theirfair values. Flnanclal assets Carrying amount 2024 Origlnal eo$t 2024 2023 2023 Unrestricted- William Rootes Gift Fund UnreslTiCted- Vickers Fijnd Restricted- Websler Exhibition Fund ReslriGted- SEF Restricted- General Fund Endowrnenl-Army Prize Endowment- Joss Prize Endowment- SEF Endowment- Congreve Endowment- Other 33,606 47,031 33,101 32,079 58,906 1,306 5,068 76,403 13,034 327,026 34,232 45,050 30,353 31,551 55,731 1,198 4,647 77,180 12,483 294.963 16,818 30,000 3,217 12.835 8.082 500 3.000 21.925 4.000 57,060 16,818 30.000 3.217 12.835 8.082 500 3,000 21,925 4,000 57,080 q8 Stocks 2024 2023 Slallonary and other consumables 4,704 3,519 19- CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 19. Debtors 2024 2023 Amounts falllng due within one yeAr. Trade debtors Prepayments and accrued Income 717 7.135 3.074 12,677 7,852 15,751 20 Creditors.. amounts fglllng due within one y•ar 2024 2023 Other taxation and social security Trade creditors Other creditors 3,204 26,177 11.404 1,918 8,149 8.879 40,785 18,944 21 Endowment funds Endowm8nl funds represent assets which must be held permanently by the Charity. Income ari￿ng on the endowrnenl funds can be used in accordance with the objects of the Charity and is indud8d as unrestricted income. Any capital u8lllS OT losses arising on the a55ets form part of Ihe fund. At 1 Aprll 2023 Gains and At 31 March losses 2024 Pemianent endowmghts 17.343.320 32.346 17.375,666 Previous year: At l Aprll 2022 Goln$ and At 31 March losses 2023 Pomi8n•nt endowments 17,355,370 112.050) 17,343.320 20- CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 22 Restrlcted funds The restricted funds of the charity compiise the unexpended balancos of donations and grants held on Iwsl 8uble¢t to speufic condltlons by donors as lo how Ihey may be used. At 1 Aprll 2023 In¢omlng Resources resources expended TransfèY¥ Galns and At 31 March losses 2024 Building extension fund Property renewal fund Prize and gift fund Scholarshlp endowment fund Congreve exhlbition fund 57,456 17.720 {87,7251 7,451 150,000 150,LKJO 64.700 3.688 {9,0951 5,922 65.2-13 53,915 6,381 528 60,824 8,623 431 9,054 334,694 28,218 176.8201 6,450 292,542 Prevlou¥ year.. At 1 April 2022 Incomlng resources Rèjources expended Transfers Galn¥ and At 31 March 108se5 2023 Building extension fund Property renewal fund Prize and gift fund Scholarship endowment fund Congreve exhlbitson fund 121,126 10,790 137,9001 {36,5801 57.456 150,OC4J 150.000 73,751 3,141 144,9241 36,560 13,8281 84.700 49.674 5,875 11.6341 53,915 8,115 508 8,623 402,666 20,314 182,8241 15.4621 334,694 21 CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 22 Rèstrlctad funds (Continued) The Charity's unTeslricted funds consist of funds which the Charity may use for ils purposes at ils disL¥etlon. The Charity has certain reslrl¢ted fund8 where speclfic condillon5 have been imposed by the donor. These are as follows.. Bulldlny extenslon fund IBEFI Funds donated for the planning and construction of buildings. the purchase of18nd, thè payment of loan charges and such other purposes that the Trustees may decide from time to lime. Property rènèwal fund A provi51on made from the Bullding Extenslon Fund towards the replacement of the astro turf. Prlze and glft fund Funds donated for the purchase of prizes to be awarded to pupils and for le8ving exhibitions for pupils going lo a university. Scholarshlp endowment fund ISEFI Funds donaled for the granting of Scholarships and bursaries and for the general promollon 8nd encouragement of education al the school. Congreve exhibition Funds donated for the purposes of providing a leaving exhibition for pupils going to a recogni5ed unlver51Ly In Great Britain or Northern Ireland. The Charity has certain perrnanenl endowments which comprise land. buildings and foundallon Inve51menls. 23 Unrestrlet•d fund$ The unrestricted funds of the charity COrnPTise Ihe unexpended balances of donation8 and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include de51gn8led fund5 whith have been set aside out of unreslriBled funds by the trustees for specific p￿rpoSeS. At 1 Aprll 2023 Incomlng re30urces Resourcas expended Galns and At 31 March Ioss8S 2024 General funds 1,429,943 425,070 1295,9491 1.357 1,560,421 Prevlous year: At 1 April 2022 Incomlng r•$ourcès Resources expended Galns and At 31 March losseB 2023 General funds 1.300,602 274,331 {140,494} 14.496) 1,429,943 -22- CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 24 Analysis of net assets be￿en funds Unrestricted funds 2024 Restrlcled Endowment funds funds 2024 2024 Total 2024 At 31 March 2024: Tangible assets Investments Current assetsllliabilitsesl 594.550 79.449 886.422 16,951.840 424,026 17,546,190 627,561 1,054,878 124.086 168,456 1,560,421 292,542 17,375,666 19,228,629 Unrestrlcted funds 2023 R•strlctèd Endowment fund$ funds 2023 2023 Tolal 2023 At 31 March 2023: Tangiblè assois Investments Current asselslOiabilili8sl 594,550 78,093 757,300 16,951,640 391,680 17.546,190 587,408 974.359 117.635 217.059 1.429.943 334,694 17.343,320 19,107,957 In preparing these accounts, the Trust have analysed Tangible Fixed Asse15 of £16.951.840 to the Pemanenl Endowment Fund and £594,550 to Unrestricted Funds. The Trustees have used the besl of thèir knowledge and belief about the Trust's history and the status of Èach property lo arrive al the current analys15. Due lo the age of some of the properties concerned, il is not always possible to support the Trustees. knowledge and belief with docurnentalion and hence there remains an element of uncertainty about the accuracy of the classification. Th15 Iiealment is currently under review by th6 Trustees. 26 Relatsd party transactlons The Cranbrook School Academy Trust (Company number.. 07794423) {Ihe "AcadernV'I is a related party by vlrtue of the fact that some of the Trustees of the Charity are also Governors of the Academy. During the year rental income was received fioTll the Academy of £97,487 12023.. £108,032) and other trading income of £1,636 12023.. £3,666). Donations of £212,985 12023.. £74,460) were rnade lo the Academy. In addition expenses were recharged. at cost, by the Academy for other resources amounting lo £102.086 12023.. £94.2601. Al the year end the Charity was owed £6.812 12023.. £9,002) and this is included within debtors within one year. The Academy was owed £28,195 {2023'. £6,044) by the Chaiity and this is included in creditors within one year. -23- CRANBROOK SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 28 Tradlny Account Lettlng5 Quo8n'8 Hall gvents Mlsc Totql 2024 2024 2024 2024 Income Sales 150,406 32,482 25,260 208,148 150.406 32,482 25,260 208,148 Dirgct costs Opening stock Purchases Closlng Stock 3,519 17.940 14,7051 3,519 17,940 14.705) 16,754 16,754 Gross profit 133,652 32,482 25,260 191,394 Expenses Production 8xpense8 S81ary recharges Catering Maintenance Cleaning and laundry Utility charges Copier charges AdvertisinglPrinting Worldpay charges Website costs iscellaneous 18,079 7,574 420 1,091 19,170 43,447 29,874 922 2,888 5,546 89 3,359 801 15 582 35.873 29,454 922 2.888 5,546 89 3,359 798 15 194 388 74,149 29,733 2,811 106,693 Net surplus of trading activities 59,503 2,749 22,449 84,701 -24- ## **Cranbrook School Trust** ## Audit Findings and Management Letter _Audit for the year ended 31 March 2024_ Prepared on 30 August 2024 **Baxter & Co.** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk **2** ## **Contents** Introduction ...................................................................................................... 3 The Audit Process ............................................................................................. 4 Audit approach and scope ............................................................................ 4 Significant risk audit areas ................................................................................ 5 Materiality .................................................................................................... 7 Objectivity and Independence...................................................................... 7 Amendments to financial statements .............................................................. 8 Recommendations for the current year ........................................................... 9 Accounting system and Internal control .......................................................... 9 Status of Previous year Recommendations ................................................ 10 Expected modifications to the auditor’s report ......................................... 11 Other matters to be communicated with those charged with Governance .. 11 Significant difficulties encountered during the audit ..................................... 11 Significant matters, if any arising from the audit ....................................... 11 Other action points – Reminders and Submissions .................................... 11 **Baxter & Co** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk **3** ## **Introduction** Following completion of our audit fieldwork, we present our audit findings report and management letter for the attention of the Trustees and those charged with governance of Cranbrook School Trust on the financial statements for the year ended 31 March 2024. This report summarises key issues in connection with the audit of financial statements, which we consider should be drawn to the attention of the Trustees. The report has been prepared for the purpose of recording the audit scope, approach and risk areas and for communicating audit issues raised with those charged with governance. We have listed possible improvements to accounting and internal control systems. This does not comprise a comprehensive statement of all weaknesses that may exist or of all improvements that could be made. It addressed only those matters that have come to our attention as a result of the audit procedures we have performed for the purpose of expressing an opinion on the financial statements. As required by International Standards on Auditing (UK and Ireland) the audit included consideration of internal controls relevant to the preparation of the financial statements in order to design appropriate audit procedures but not for the purpose of expressing an opinion on the effectiveness of internal control. The report has been prepared in compliance for reporting to the and to comply with the provisions of International Standards on Auditing. No reports may be provided to third parties, without our prior consent. Consent will only be granted on the basis that such reports are not prepared with the interest of anyone other than the Trust in mind and we accept no duty of care or responsibility to any other party. The report may not be relied upon for any other purpose. No responsibilities are accepted by Baxter & Co. towards any party acting or refraining from acting as a result of this report. For ease of reference, we have summarised and prioritised our findings below: |Highpriorityrecommendations|1| |---|---| |Mediumpriorityrecommendations|1| |Low priority recommendations|0| |**Total**|**2**| High risk: issues where there is a risk of significant financial impact on the Trust that must be addressed immediately. Medium risk: issues where there is a risk of moderate financial impact on the Trust that should be addressed soon; and Low risk: issues that relate to minor control deficiencies or enhancements in control efficiency. These should be addressed within an agreed timescale. If you have any queries regarding the matters raised in this report, or other issues of concern, please contact us as soon as possible. Finally, we would like to express our thanks to all of the Trust’s staff that assisted us in carrying out our work. Baxter & Co. Lynwood House, Crofton Road Orpington Kent BR6 8QE **Baxter & Co** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk **4** ## **The Audit Process** ## **Audit approach and scope** Our general audit approach is determined by our assessment of the audit risk, both in terms of the potential misstatement in the financial statements and of the control environment in which the Trust operates. Our outlined approach is summarised as follows. - we will update our understanding of the Trust and its environment through discussions with management and a review of available financial information. - we will obtain evidence to support material balance sheet accounts and perform analytical review procedures of income and expenditure streams. - we will review the design and implementation of key internal financial control systems, including reviewing the reports issued from the internal assurance reviewer. - we will review the adequacy of material disclosures in the financial statements in accordance with FRS102 and the Charities SORP; - we will review the information in the Trustees’ Report for the financial year ensuring it is consistent with the financial statements; and - we will form an opinion whether the financial statements give a true and fair view of the state of the Trust’s affairs as at 31 March 2024. accounting systems and controls so that we may ensure their adequacy as a basis for the preparation of the financial statements and that proper accounting records have been maintained. ISAs also state that “routine, non-complex transactions that are subject to systematic processing are less likely to give rise to significant risks because they have lower inherent risks”. Our work in these areas will be proportionally less than in the significant risk areas. In areas where we identify the potential for significant risk, we will extend our audit testing to include more detailed substantive work. ## **Significant risks** As part of our audit procedures, we are required to consider significant risks that require our attention including: - Whether there is a fraud risk. - The complexity of transactions. - Significance of transactions with related parties. - Degree of subjectivity in the measurement of financial information; and - Transactions outside the normal course of the Trust’s business. ## **Overall audit strategy** We performed a risk based audit, focusing our work on key audit areas. ISAs assume that “significant” risks will arise on most audits. Significant risks are often derived from business risks that may result in a material misstatement, relate to unusual transactions that occur infrequently, or judgemental matters where measurement is uncertain. We held an initial planning meeting with key management and finance staff to ascertain management’s own view of potential audit risk and to gain an understanding of the Trust’s activities. We also developed an in depth understanding of the The identified significant audit risks were communicated to you in our audit planning letter issued before our main fieldwork began. We now note the work performed and conclusions drawn on the following pages: **Baxter & Co** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk **5** ## **Significant risk audit areas** ||**Significant**
**Risk**|**Explanation of the risk**|**Audit work performed**|**Conclusion**| |---|---|---|---|---| |**1.**|**Revenue**
**recognition**|There is an assumption that revenue recognition is
a fraud risk.
Income from contracts should be recognised in the
period to which entitlement exists.
Classification of income between restricted and
unrestricted
funds
potentially
relies
on
managements decisions.|We documented systems and controls carrying out
our audit procedures to ensure income is recorded
correctly in the period.
We discussed with Trust finance staff whether any
cases of fraud had occurred during the period. We
also reviewed governors’ minutes of meetings. We
have not been made aware of any fraud during the
period.
Consideration of whether income had been
correctly
classified
between
restricted
and
unrestricted funds by reviewing and terms and/or
conditions was undertaken.|Our
audit
work
has
not
identified any material errors
relating to income recognition,
whether relating to fraud or
error.| |**2.**|**Management**
**override**|The trustees and management have the primary
responsibility for detection of fraud as part of their
role in preventing fraudulent activity. They should
ensure a robust system of internal controls exist to
facilitate prevention.
Auditing Standards presume a significant risk of
management override of the system of internal
controls.
Our audit work is designed to provide reasonable
assurance that the accounts are free from material
misstatement, whether caused by fraud or error.
Our audit may serve to act as a deterrent, but we
are not responsible for preventing fraud or
corruption.|During our audit we considered the possibility of
manipulation of financial results, for example the
use of journals or management estimates, such as
provisions and accruals. These have been reviewed
as part of our substantive audit work.|Our audit procedures have not
identified any instances of
management override.| **Baxter & Co** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk **6** ||**Significant**
**Risk**|**Explanation of the risk**|**Audit work performed**|**Conclusion**| |---|---|---|---|---| |**3.**|**Related**
**and**
**connected**
**parties**|We are required to consider whether disclosures in
the financial statements concerning related party
transactions are complete and comply with the
Charities SORP.|A Charity Commission search was completed for
each of the trustees to identify possible related
parties with which the trust may have transacted.
We
reviewed
trustee
and
other
senior
management declarations to ensure there no
potential related party transactions have not been
disclosed.
We
have
requested
written
management
representations from you confirming the full
disclosure of related party transactions.|Our audit work has provided
assurance that the related party
transactions disclosed in the
financial
statements
are
complete.| **Baxter & Co** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk **7** ## **Materiality** We apply the concept of materiality both in planning and performing the audit, and in evaluating the effect of identified misstatements on the audit and the impact of uncorrected misstatements. Materiality is an expression of the relative significance of a particular matter in the context of the financial statements as a whole. An item will be considered material if its omission would reasonably influence the decisions of those using the financial statements. Auditors examine financial statements on a test basis. The level of testing we will carry out is based on our assessment of the risk that an item in the financial statements may be materially misstated. As such, it is neither practical nor appropriate to give an indication of the value of an item we would consider to be material although, clearly, we do relatively more work in areas where the risk of misstatement is considered to be high. We have assessed the materiality by considering the total income of the Trust, net of capital income together with other relevant indicators. A lower measure of materiality was set for those specific areas where the nature of the transactions requires this. Individual errors or accumulated errors, found during the course of the audit that are in excess of materiality were discussed with you and adjustments were made to the financial statements. If the adjustments had not been made, our audit report would be modified. Any adjustments found during the audit that are below the relevant materiality level have been sent for consideration by the Trustees. to deal with this threat, in accordance with the guidance issued by our professional body. We note that in addition to performing the statutory audit, we also provide the following non-audit services: - a) Preparation of statutory financial statements from the Trusts trial balance. - b) Provision of general advice as required. The following safeguards are in place in respect of providing of the above nonaudit services to ensure our independence: - a) Preparation of statutory financial statements from the Trusts trial balance is carried out by a dedicated accounts production team separate from audit and is a mechanical function presenting the Trust’s results for the period in the required format. Any adjustments to the figures will be made following discussion and approval by the Trust. The process of preparation of the financial statements is reviewed by an independent manager prior to completion. - b) General advice and assistance with accounting queries during the period is not considered significant for this Trust. ## **Objectivity and Independence** As agreed with you, the provision of non-audit services to you results in a potential threat to our independence. We can confirm that, as required by professional ethical standards, we have implemented appropriate safeguards **Baxter & Co** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk **8** ## **Amendments to financial statements** It is considered good practice to inform you of any material adjustments within the financial statements presented for audit that have been discovered during the audit process as well as adjustments notified to us by you. Set out below is a list of audit adjustments for which you have authorised adjustment to the financial statements, and the impact of those adjustments. ||**Effect on Fund**
**Reserves (£’000)**| |---|---| |Fundsper ledger|19,218| |Accruals identified|(6)| |Bank interest|18| |Movement on investments|(3)| |**Fundsper Accounts**|**19,227**| In addition to the above, some presentation adjustments have been included in the financial statements although these have had no impact on the total of fund balances: - 1) Allocation of income and expenditure to relevant funds - 2) Transfers between funds have been included in the financial statements, where required (e.g. to reflect the source of funding for fixed asset additions). Other than the listed adjustments, we have not identified any misstatements or omissions (unless clearly trivial) from the financial statements, which have not been adjusted by you. **Baxter & Co** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk **9** ## **Recommendations for the current year** ## **Accounting system and Internal control** We set out below a summary of the matters identified from our audit work relating to the accounting system and internal control weaknesses. We have included our view of the priority (low, medium, or high) of each point. In arriving at our view of priority we have considered both the potential impact of the weakness identified and the likelihood of the related risk materialising. |**Description and impact**|**Recommendation**|**Management Response**|**Priority**| |---|---|---|---| |For three expenditure samples, no
documentation was retained on file.
**Impact:**
insufficient
supporting
evidence/lack of audit trail.|All supporting documentation should
be kept for all items.|All expenditure will be supported by
documentary evidence.|Medium| **Baxter & Co** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk **10** ## **Status of Previous year Recommendations** **Description and impact reported in Status in current year Management Response Priority prior year** The Trust revalued the land and Recommendation remains and This is being looked into by the Trust. High buildings as at 31 March 2018 and additional matter re insurance and prior to this, a formal valuation was rebuild cost being greater than undertaken in 1997. The Trust should balance sheet value. consider undertaking a valuation on a regular basis as the balance sheet should reflect the ‘fair value’ of these assets. The 2023/24 Insurance rebuild cost is significantly greater than the balance sheet value and the reinstatement valuation undertaken in May 2024 shows an even greater figure. **Impact** : The value included in the accounts may be significantly different to the market/fair value. **Baxter & Co** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk **11** ## **Expected modifications to the auditor’s report** We have substantially completed our work and intend to issue a qualified audit opinion unless we can establish the ‘fair value’ of land and buildings agreeing to the amount in the balance sheet. This is subject to the trustees’ approving the financial statements and any minor outstanding items being received and/or completed. certify the audit report(s) and send you the certified accounts for submission to the Charity Commission (the filing deadline is 31 January 2025). There is also a modification with reference to the emphasis of matter on analysis of net assets between funds as referred to in our cover email. ## **Other matters to be communicated with those charged with Governance** ## **Significant difficulties encountered during the audit** We did not encounter any significant difficulties during the audit. ## **Significant matters, if any arising from the audit** There are no further significant matters that we need to bring to your attention. ## **Going Concern** The Trustees need to give consideration to the level of reserves maintained and consider going concern for a period being at least 12 months from the approval of the accounts. ## **Other action points – Reminders and Submissions** - 1) A written reply should be prepared in response to this report. Please return it to us keeping a signed copy for your own records. - 2) On return to us of the signed statutory accounts and the signed letter of representation which must be on the Trusts headed paper, we will **Baxter & Co** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk