CANFORD SCHOOL LIM￿ED (knmrted by Guarantee) REPORT AND FINANCIAL ThATEMENTS FORTHEYEAR ENDED 31 IULY 2021 RegisLered Company No.. CO190956 Registered Charity No.. 306315 C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 Co￿ENTs DIREJORS AND OFFICERS.......,.,.......,,.....,,,....,.,......,,,....,.,.......,,.....,,,....,.,......,,,....,,,.......,......,,,....,.,.......,,....,,,,......,......,,,....,.,.......,,....,,,,....,.,......,,,....,.,.......,,....,,,,....,.,...... NOTICE OF ANNUAL GENEPAL MEttlNG.....,.,.......,,....,,,,....,.,......,,,....,.,.......,,.....,,,....,.,......,,,....,.,.......,,.....,,,....,.,......,,,....,,,.......,......,,,....,.,.......,,....,,,,......,......,,,...., DIRECFORS AND TRUSTEES, REPORT,.,.......,,.....,,,....,.,......,,,....,.,.......,,.....,,,....,.,......,,,....,,,.......,......,,,....,.,.......,,....,,,,......,......,,,....,.,.......,,...,,,,....,.,......,,,....,.,.......,,...., INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF CANFORD SCHOOL LIMITED......,,,....,.,.......,,.....,,,....,.,......,,,....,,,.......,......,,,... CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES....................................................................................................................................................... CONSOLIDATED AND CHARITY BALANCE SHEFtS.....................................................................................................................................................................20 CONSOLIOATEO C4SH FLOW STATEMENT....................................................................................................................................................................................... NOTES TO THE FINANCIAL STATEMENTS............................................................................................................................................................................................22 C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 DIREcfoRSAND OFFICERS DIRECTOPS Chairman Vice-chairman David Levin BEcon MA FRSA Mich&1 leffrieg Dip Arch AIBA FICE FRSA Mary Armitage CBE BSC MB ChB DM FRCP FRCPE Te￿sa Colaianni Barry Coupe BA DipArch RIBA Lieutentant General Sir Gary Coward KBE CB Robert Daubeney BA Philippa Dichns MA MBBS DCH DRCOG MRCGP Georgina FOz￿ MA Cantab MBBS MRCP5ych Profe550r Mark F￿nch MA Oxon PhD Nichola5 Holloway BA Stephen Le Bas FCA BA Hons Richard Nicholl BA PGCE Adam RJ"chards BA Rev john 5imrnons james Stileman MA AnnabelThomas BA Resigned l O May 2021 OFFI￿Rs Headmaster Ben Vessey MA NBA David l Brook OBE Bsc MA CEng MPAe5 Michael Porter Msc BA Registered Offi The BU￿ary Canford School Wimborne BHII SAD Solicitc￿$ Harrison Clark Rickerbys Limited Ellenborough House, Wellington Street Cheltenham G￿0 I YD Steele Raymond LLP Richmond Point, 43 Richmond Hill Boumemouth BH2 6LR Veale Wa5brough Vizard5 LLP Narrow Quay House, Narrow Quay BIisLol BS14QA Audrtors Haysmacintyre LLP l O Queen st￿tt Place London EC4R I AG C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 Bankr5 Barclays Bank PIC WyLham Court I I Wert Way, Botley Orford OX2 OXP Insuran￿ Brokers Marsh Limited Capital House 15 Perymount Road Haywords Heath RH16 3SY P3thbone Brothen PIC 8 Finsbury Circus London EC2M 7AZ C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 NOTICE OFANNUAL GENERAL mE￿ING The Annual General Meeting Of the company will be held at 12 rboon on ThU￿daY 24 March 2012 at Canford School, Wimborne BH21 3AD. In accordance with the Articles of Association Dr Dicknns, Dr Fozard, Mr Nicholl and Mr Richards ￿tIre by rotation and, being eligible, offer themselve5 for re-elertion. Mr Coupe retires by rotation and does not offer himself for re-election. For a third of the governo￿ to be re-elected, required by the Articles o(A550ciation, Mr Daubeney, a5 the longest serving govemor, retires by rotation and being eligible, offers himself for ￿-electIOn. C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 DIREcfoRS ANDTRU￿EES, REPORT FINANCIAL STATEMENTS The Govemors. who a￿ Directors forthe purposes of Company Law and Trustees forthe purFx)ses of Chanty Law, present their annual port and audited financial ttatements for the year ended 31 july 2021. The Govemors have adopted the provisions of the Chanties Statement of Recommended Practice {SORP) (Second Edition. effertive I january 2019) based on Financial Reporting Standard IFRSI 102. in preparing the annual report and financial statements of the charity. OBIECtS AND AIMS Charitsble OE4ects The ChartLy 5 Obiert IS to advance the education of boy5 and gid5 Including blrt not limited to the proiq510n of a Senior school In or near Canford, Dorset andlor If thought desirable. In other parti of England or Walei, In accordance with the pnnciples of the Church of England, PutAK Benefrc Aj'ms and Intended Impaci In furtherance of this Object, Canford Schwl's public beneftL aim is to provide a first class independent education, through Strong academic tuition and through developing wider sporting, artisLic, cuktural and social 5hlls in all its pupils. This 15 intended to provide an environment Whe￿ each pupil can develop and fulfil his or her potential, thus to help build 5elf-confidence and Inculcate a de5ifE to contriblrte to the wider community. Canford has re5trirted and unre5trirted funds for the development of the School's facilities as well as for scholarship5, prizes and other educational purposes. The School provide5 bursane5 forthose without the means to supwrt their child through school. The Charity also has to maintain Its heritage endowrnent, with its Grade l and 11 listed buildings and historic pad< and t￿e collection. which ￿ all considered of national importance. Canford views the social regpjngibilities it caffies as an educational Insiitution as being a central feature of our ethos, aims and actions. The '/mpoitance olcommunity'is one of our CO￿ aimg wheffby we ￿COgnIse 'the iinportance olcommunity and the engendenng o a Lleep rooted sense ofsocial ffsponsibi//ty In the conte* of CanKoiVs Chnstian ongins andhentage, alongside respecting the abilities vie￿artd dAgnity oKothery throughout the school community andin the wider world,, This is not just a form of words but articulates an attitude and approach which guides and informs much of what we do wtthin and beyond the school. Aside from activities within the school based educational programme which seek to wse awareness and understanding of issues and problems confronting the wider world, hurnd￿d5 of our pupils and many of our Staff are engaged In active charitsble and community partnership work locally, rEgionally, nationally and intemationally, IL is beyond the scope ofthis ￿pOrt to OLtLline all of the detail of this extensive activity, alLhough some more inforThation can be found on pages 7 and 8. This social engagement and interaction in a MeanIn￿Ul and sustained sense is very much part of the fabric of C3nford's culLure. In the furtherance of these aimg the Govemors, as the charrty trustees. have complied with the duty In s.17 of the Charities Act 201 I to have due ￿gard to the Charity Commission's published gener71 and rElevant sub-sertor guidance conceming the operation of the Public Benefit vquirement under that Art, In addition, the Govemor5 act to promote the success of the school by.. considering the likely consequences of any decision in the long tern,. looking at the Interests of the company's employees,. fostering rplationships with pupils, parents, Staff, suppliers and others,. considering the Impart of the Ch3rYLy's operations on the community and the environment,. by maintaining a reputation for high standards of business condurt., and acting fairly ￿ between members of the company. 5TRU￿uFE GOVEFINANCE AND MANAGEMENT The School is a company limited by guarantee and each of tts rne￿be￿ has undertaken to contribLrte an amount not exceeding £ I lone pound) towards the a5set5 of the company In the everbt of the same being wound up and the a55ets being Insufficient to cover the company's debts and Iiabilitie5. The School is a regIste￿d Ch￿lty and 15 governed by rts Articles of Association as m05t ￿cerntty amended C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 on 26th September 2013 by Special Resolution, Canford School is a member of the Allied Schools group of independent schools, all of whith were founded by the Martyr5, Memorial and Church of England Trust INMTI. On September 26th 2013 the Allied Schools signed a management Ag￿eMent with NMT by v¢hich the members of the group agreed to the appointment of the Allied Schools Agency to oversee the perforThance of the schools and to montLortheir adherence to the foundational rEligious principles on behalf of NMT. The School a subsidiary company, Cheneford Limited, which undertakes a range of trading activities including the letting of the School's sports facilities to the public, We ￿50 co-operate with many Irxal charities in our on-going endeavours to widen public access to the schooling we provide, to optimise the educationl use of our culLural and sw)rting facilities and to awaken in our pupils, in the public interes1, an awa￿ne$S of the social contexL of the all-round education they receive at Canford. Govtrning Body The Governors are responsible for the overall management and control of Canford School and meet three times a year. The wod( of detailed fom)ulation and implementation of rnost of their policies Is caffied out by members of the Finance and Execlrtive Cornmtttees, who usually Meet a few weeks In advance of the full Goveming Board. The Education and Safeguarding. Property, Extemal Rel*ions and Communication, and Awards suiFCommittees perform detsiled ￿vIews in their specilist areas. Governo￿ a￿ elected by the Governing Body, except that two Governors nominated by the Marryr5 MemoTial and Church of England Tnjst If the total does not exceed 12, th￿e If the number exceeds 12 but does not exceed 18, and four If the nurnber exceedi 18. New govemors are appointed by existing govemors with Input frorn the Headmatter and Bursar and care Is taken to ensure that the relevant skills and experience a￿ represented. Each new govemor is provided with an information pack (handbook) and meets wtth key staff as part of an Indurtion process. They aff all encouraged to spend time at the School to experience lesgons as the pupils do. All govemory receive Infoffnation on govemor toining uplate courses. All govemors have access to the meeting Pape￿ and minutes for all commtttee meetings. whether or not they are memben of that committee. Meetings may be held In person or virtually. This ensu￿5 that they are informed aboLrt the issues being addressed by those committees bLrt can also raise queries and monttor PrOg￿$S in a wide range of affas. The chaimen ofthe sub commtttees meet regulady with the khool's lead for each commtitee a￿a, thereby ensuring that they a￿ fully briefed on Issues and can provide advice, challenge and support as required. organisation￿ Management The day to day wnning ofthe School is delegated to the Headmaster, the Bursar and the Senior Leadership Team (SLT), which comprises of Deputy Head Academic, Depuly Head Pastoral, Deputy Head Co-curricularand two Assistant Heads (Academic and Pupils). Strategic matter5 arE discussed with the Senior Management Group {SNGI, which comprises of the SLT plus the d1￿Ctory of Marketing, Admission5, Development, Human Resources, Finance and E5tate5, as well as the School SeNices Manager. Variou5 educational management groups also operate to progress educational and pastoral matters. Changes to the ￿muneratIon leve15 of key management personnel are made wrth reffe￿nce to Industry 5tandard5, such a5 the Baine5 Cutler benchmad< reports. Remuneration changes for specific roles afft made with refe￿nce to Intemal performance criteria and extemal role benchrnad(s. Including salary sumeys and use of a benchmarking agency as required. The Headmaster and Bursar attend meetings of all the govemory, committees. C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 srBATEGIC PEPORT AND FUTUPE PIANS Canford's Govemory recognise that the School musl rEmain competitive, relevant and sustainable in a rapidly changing and IncrE￿inglY uncertain environment in which there is no Shortage of local and region￿ compettLor schools. In loohng to the futuYE, Canford Intends to maintain and enhance its profile and posttion as a premium independent school. The Governing Body is already implementing strategies that will enable the School to defend and grow Its share of the pre5Lige School boarding and day market5. The key to th15 will be attr7rting and retaining 5Uttably able pupils by meeting or exceeding their and their parents expectation5 for high academic ￿SUlts, a wide range of high-qualtLy co-curricular facilitie5 and for comfortable pupil accommodation. Our plans include a wide array of educational progTrmme5 to enhance the leaming experience of our pupils and the provision of flexible, adaptable Infrastructu￿ In orderto widen the gap between full capacity and the break-even point, allowing flexible and efficient operation with an appropriate level of spare capacrfcy. This strategy Is subject to ￿gUlar ffviews, particulthy In light of the Covid-19 pandemic, One particular aYEa of focus is our work on Equality, DiVe￿ity and Inclusion. Several reviews arE undervJay to ensure that societJ issues surrounding sexism, racism and other aspects relating to equaltLy, diverstLy and inclusion will be at the forefront of our education. An EDI working gmup including a Govemor, pupil leade￿, a newly appointed Head of EDI and other representatives are developing plans for the future a5 well as implementing artion5 agreed by the Goveming Pody. ViS￿n and Missicn Statemerts Our Vision.. 'Canford.. a school communty vvhere all are InSpi￿d to explore, empowered to express and challenged to excel., Our Mission.. To build a Community of open minded people who are motivated to embrace leaming in all its forms. and committed to making a differEnce to their own lives, and to the lives of others. Our exceptional education grants frEedom to grow and creates opwrtunities for all to explorE, to exprESS and to excel., Our Value5'. 'Develop Purposeful engagement Building a confident mindset develops positive life-long leaming. We inspi Membe￿ of our community to be curious arbd deterTnined in pU￿￿1t of thowledge and opportunity. InsLil a Courageous Attitude Being principled and strong, yet reflective and tolerant takes courage. We support Membe￿ of our community to be bold and sensitive In expressing thoughts. words and deeds. Promote Humble Ambtiion PU￿uIng goals without arrogance or complacency bnngg meaningful success. We challenge Membe￿ of our community to be energetic and ￿$111ernt In pursuit of their goals but honest and grateful for fulfilment of them. Encourage Gracious Leadership- Fulfilling a duty to guide and support othery makes a differEnce. We urEe members of our community to lead graciously and serve willingly for the greater good., Achievements and Perfo￿anCe Our vision and values have played out each and every day over the past year In 50 many ways, not least In the way all have adapted and 5UPPOrted each other over the pa5L months during the challenges of the Covid-19 pandemic. The following 15 an exLrart from one of the many sUPPOrtive communication5 received from parent5 and pupils. 'We wouldlike to express ourgtstitude tOyOU 3ndyouramazingstafffjorbeing the best sch(￿1 eYeHI know are completely biased as Pa￿￿ts at your school only I do not think that I have ewr known such an exceptional school Sveyhingwu do fjrom a p3r¥nta/ Re￿Re￿/vE 15 50 3cce551ble Hnd infjorm&titrp. plu5 your fjom75 alway5 super eJ5y to fill in 3nd5end.I It mdke5 difrfeEnce or busy papnts. Allwur staff in ekery depJrtment a￿ so kind, underst4nding Jnd orfer wable helpKtsl solutions if ther is a problem to owr¢ome. Nothing is ewer too much trouble. Being è parent ot Cènfjord ha¥ been èn absolute pleature. We haTr LOVED being a part orfwur commJnity rfor thep3St riw￿31% Oui-d&uo7hterchrne into the 5choo135 J 50mewhht Shy Shell who fjoundit hdrdto offerher opinion5 and oLrt51de olthe c1355room all this has changed dtsnng her time at Canford. Since being at Canlord she has dew/opedJn unasstsrning confidence in herseM8nd is so IEl3xedJndhBpgy in any5001H151tuation. She As strong and (leteirnined but is also kind and comp3ssion3te. We beliewe that the enwronment thatyou have cttatedhas helped herto flourish dndto bnngout these WUnde￿IquE1lt￿eS. k was 50 tourhingto see thegenuine bekutihl￿/8t10n5￿1ps between thepupi15 andstaffat the le3vers day. It Was very emotional watching thepupils celebrate theirtiiyie 3t C3nloi6btst 31so to see how difficuts it was to 5&xgoodbye to Canfjordandit5 wonden&15tsifafter five ofbeingpart oC5uch an in5pirJtion&lcommunity. Schools hake had to continuoJs/yadapt to stsch ch311enging times the pandemic hoLfytveryou have alkvays respondedquicklyand efficiently to &/1 the ob5tacle5 thatxou hadto overcome. Braw toyou J/land WEI/ done. C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 One broad area of focus over the year was developing our Wo￿ on EOI. A 5uThEy gathered Insights Into attitude5 and experiences of sexism at Canford from pupi15 and staff. With a very high re5POn5e rate, acr055 boy5, gid5 and year group5, this provided extrtmely valuable Infomation. Alongside year group assemblies on sexism and other EDI 1$5ues, we have also wodtmas to provide food and presenti for a meal and also had. right at the end of term, a visit by some primary school pupils to take place in a '5hine' day of sport and outdoor pursuits. Stakehok*r Relationships Canford exisLs a5 a community,. our links with current and forTner pupils, parents arbd Staff, a5 well as our community partners, a￿ strong. We employ over 450 people in the local communty vho, along with our supplie￿, are crucial to Dur success. Over the last year, the School have used more than 550 supplie￿, supporting our local, regional and rbational ecorbomy. We have improved our payment performance, In ￿gard to paying within the agreed terms, and continue to focus on th15. In particular. dunng the lock down pernod due to Covid-19. we ensured supplien continued to be paid on time and provided flexibilty when appropnate. We are grateful to our suppliers fortheir continued support for Canford. Empbyee Engagemert and EmFAoymert Poly Govemory communicate wtlh employees through a variety of channels. 80th govemory and employees sit on the joint Consultative Committee wherE matters relating to pay, benefits and working conditions are discussed. Govemors and employees also sti on the Hea￿h and Safety Committee. Governors write to employee5 to explain the impact of significant deci510ns, such a5 pay review5 and the sLrategic direction of the School. Any 51gnificant decisions taken during governors meeting5 are a5se55ed forthe impact they will have on 5Laff, wrth the govemors aware that the School cannot be successful withoLrt an engaged, motivated 5Laff body. In particular, the governor5 provided employees Wlth a number of specific ￿asSu￿nceS duringthe Covid-19 lockdowTr which were unanimously appreciated by staff. For information on the relationship between govemors and management, see section 'StmrturE, Govemance and Management,, Canford Schwl Is an wual opportunicies employer. Full and fair consideotion is given to job applications from disabled persons and due consideration is given to their training and employment needs. ConsU￿ation with employees, or their repff sentstives. has continued at all levels with the aim of taking the views of employees into account when decisions are made that a￿ likely to affect their interests. Employees are made aware of the financial perfonmance of the school. Jndw%ng PerformarKe Canford undertakes fundraising activty to tL5 SUPPOrte￿ via fuTrdraising events, sponSo￿d events and direct mail. Efnail is used in line with the Fundraisirbg Code of Prartice set by the Fundraising Regulator. Our fundraising promise, which is available on our website alongside our privaq notice to reassure 5UPPOrter5 of our approach, is.. 'When you support you can be SU￿ of the following.. C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 We will never sell your contact detsils to anyone If you ask us to change how we communicate with you, or stop, we will respert that We try hard to ensurr no one ever feels pressurised to support our worl( All our artivities ary open, fair, honest and legal. can[0￿ Is registered wtLh the Fundra15ing Regulator and adhe￿5 to the Stand￿d5 of the Fundraising Code of Prartice. There were no complaint5 athut fundraising artivtLy dunng the year. Total fundraising costs duringthe year including operating budget and salarieg We￿ £169K12020.. £174KI, to cover progommes Including fundraising and engagement work. whe￿ events took place. Income Iticketg purchased) partially offset some of the costs. Income from fundraising activities totalled £153K 12020,, £1 (YJKI. The Development Programme continues to seek to engage alurnni, pa￿ nts and friends of Canford as School benefactory. This can be through giving of time and expertise through volunteering." the giving of financial donations including one-off gifts, regu13r givin& or gifts of stocks, sharES or art,. and securing longer-ternn legacies. There arethree main areas of artivty within the current Development Programme.. I I l engagingthe Canford Community,121 encouraging and promoting volunteerin& and 131 fundraising to increase acce55 to a Canford education through the provision of pupil bursaries. Secondary fundraising prioritie5 Include funding capital and equipment proiert5. Engaging the Canford Community Involve5 5UPPOrting the many diffe￿nt volunteer-dnven group5 which themselve5 alm to benefit Canford, Canlordians and associated partner chanties and organisations. The Development team provide sUPPOrt to the Old Canfordian Society IOCS). the Friends of Canford School. the Friends of Canford Music and the Friends of Canford Rowing, Events and monies raised by these groups ￿ retumed dirertly to benefrt the education and enrichment of pupils and the Canford Community. Modemisation of the OCS Is continual process. Developments aim to transforTn connections between Ocs and facilitate better communication, Mowledge and support of our alumni. Volunteers to Canford give in a variety of ways. All school g0vem0￿ Voluntee￿ and provide Strategic Ove￿I8ht. Many others ser¢e as alumni, sports or committee ￿PrEsentatiVes. Alumni and pa￿ntS provide careers alfvice to pupils providing mentonng, work experience or speaking to pupi15 abolrt their experiences. Other volunteer duties Include 5UPPOrting music at Canford, supporting 5POrt at home and away fixtu￿$ and speaking at Canford eventi. During the year over 264 Individuals provided their time and expertise free of charge to Canford. The Goveming Body Is very app￿cIatiVe of this Invaluable support. Donationg include cash gifts. regular gifts. bequests received and gifts-ln-kind. The Development Office also supports the work of the Friends of Canford School {FCSI, a parent and friends, group. The group have this year focused their SUPFQrt on Irxl extemal charities through grants for specific projects. This included a grant to a longstsnding partnership, the City Reach projecL in Southampton. The fourth annual fundraising auction to supwrt the Martin Marriott Foundation raised a significant amount for the Foundation in November 2020. Regul￿ donots acquired through the 2019 Telethon are continuingto donate monthly and Stewarded accordingly. The Case for Support On the websrte has been updated to include new testimonies from bursary pupils, state fundra15ing aim5 and provide an accessible method for mahng online donations. In November 2020 we launched our Lady Chadotte 5 Walk campaign invrting alumni and parents to sponsor a Stone on the walkway leading to the new library. This has been well ￿ceiVed with the first 150 stone5 being laid in AugusL 2021. The strategic plan for 2019-2024 is revised annually wtlh an action plan updated to reflect cuffent t￿nds. C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 FINANCIAL REWEW AND RESULTS FOR THE YEAR CunEnt pupil numbers, and considernble future interyst in the School, give us confidencethat we will be at full capactiy forthe fo￿5eeab1e future. This is a result of our continued res0￿ to deliver a t0P*u￿lty education, supported by talented staff in an inspiring environment. The School's financial policy is to maintsin total fee income at a level sufficient to gener7te a surplus over time to meet the objertives of the School's strategic plan, allowing for investment In the school. This will be achieved through both operBtinE cash flow and fundraising. As a charity the parents of our pupils have the assurance that ￿1 the income of the school must be applied for educational purwses, In p￿paring tts budget forthis yearthe School ￿COgnised the need to continue to Invest In both high quality ttaff and the School's fabric. to ensure that both continue to support the educational mission. However, in recognition of the Impact of the pandemic, the School also agrEed to tarEet a lower surplus for 2021. nanc￿￿ miew gjmmary 2021 2020 School fee5 receivable 118,872K 117,421K Fundraising income 1153K £IOOK AJI other income 17,561 K £2,113K Provision of education £{19.124IK LI18,804IK Other costs 11592IK £(790IK Net Income £6,870K £40K Operational firbancial performance wa5 in line wrth budget this year, despite the periods of remote leaming. Total gws5 fee income for the yearwa5 8.6/0 higherthan last year {2020.. 9.1% lower). Pupil numbers remained healthy and, whi15tthere wa5 no fee rise, the rbumber of discounted weeks due to covid were reduced. OLher income increased significantly, driven by the sale of a piece of land adiacerbt to the school on which contracts have been exchanged bLrt which ha5 not yet completed. These funds will be used for capital projects. Careful cost control was exercised throughoLrt the year, particularly during remote education, to ensure that resources were focu55ed on pupil outcomes. In addition, the use of the CoronavinJs lob Retention Scheme ICIRSI allowed us to maintain staffing levels and retairb job5, despite the periods of remote leaming. The amount raised through fundraisirbg for bUrs￿leS wa5 higher, due to the generosity of a number of parents and Old Canfordians. In addtLion to this, Investment gains helped to off5et105se5 In the previou5 year, the￿ffOre the Statement of Financial ActivtLies show5 the School's Net Income to be £8.6M12020..105s of £0.5MI. The overall c05t of the School's capital expenditure in this financial year amounted to £8.OM12020.. £4.1 Ml, Mthich included the strategic capitl wod(s programme (two new Boarding Houses £4.6M and the new Library £2.6MI. Other capital expenditure included ongoing Investment Into the fabric of the School. Investirbg in additional flexible capactty and improved core facilities will ensure Canford'5 future SU5tainabiltiy and there Is a clear Imperative to complete the sirategic building plan5 which afft egsential to support future 5UStainabilty and success. The economic eniqronment and effeds of Covid-19 will demand calrtion, therefore, whilst planning work for subsequent phales of the capital programme will continue. the decigion for any con>truction to begin will be preceded by a wholesale ￿VIeW of demand and requ1￿ments. All projects will ￿MaIn subjert to the USU￿ govemance and approval prc(esses. Given the invesLment In capitl expenditufft there a fftduction in cash of £4.7M (2020.. £1.5NI. Overall the Governor5 accepted thi5 financial result, given the economic circumsLances of the past year. Plan5 for the [lrtU￿ will requi a retum to the levels of iurplui seen In p￿ViouS year5 in order to meet the objective of providing sufficient Income for the School's strntegic plan objedives- a tOP-qLJaity education. supported by t￿ernted staff in an Inspinng environmert ReSen￿S Pdicy The beneficianei of Canford school a￿ tL5 pupils.. any reserves held mu¥t uFtimately be for their benefit. Govemors have detemined that Canford should not hold excessive ￿SeNeS, rnoney that could othewise be used for the benefit of pupils. Equally, Insufficient reserves. In the event of a crisis, may Mean that pupils experience undue diswption to their education. Given the cuwent economic climate, wlttical climate and the CoMd-19 pandemic, or In the event of a cri515, Governors have reaffi￿ed their commitment for pupi15 to be able to complete the cuwent academic year a5 a minimum. Th15 Strikes a balance between unduly tying up funds and minimising disruption In a crisis such as unplanned closure, To ensure this. the level of gened ￿SemeS held will be equivalent to the sum of cash liabilities In the longest period in the academic year wich no fee Income, approximately £6M. This been C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 tested against a nurnber of scenarios to confimi the suitabilrfcy of this level of regerves, Whiltt resLrided funds f311 outside the definition of free reiewei. some restricted funds are maintained principally for the award of bursaries and the advance payment of school fees. Deiignated funds a￿ algo held, In addition to the ￿serveS above. for the purposes of matching the invertment made in the fabric of the school, to fund the school's partneryhip activtiies and to provide bU￿arleS. At the year end the 5th￿1 held total fund5 of 152.6N, of which 13.4M wa5 held in re5tricLed fund5 principally forthe award of bursaries and the advance payment of school fee5. The Governor5 have de51gnated a further 138.7M forthe following purpose5'. al to match the investment tL has made over the year5 in the fabric Of the school estate and is not therefoYE (￿elY available £31.6M bl to set aside funds to support the school's Partne￿hIP artivities £0.3M', and CI to set aside fund5 that are invested for the provision of bursary 5UPPOrt £6.8M. After these designations, and the value of fixed assets not ￿presented by the property fund, free ￿serveS are I10.5M 12020.. £10.2HI which the Govemors consider exceed the reserves policy objertive. Thig excess will continue to be used for capital projects for the charity s beneficiaries, with at least £6m of projects planned In 21122. Most of these projects have commenced. Govemors monrcor serve levels on a ￿gUlar basis, consideringthe working capital management ofthe school and the desiff to continually Improve facilities. Investm￿ and Objectives Canford School holds investments in three portfolios with the prime objective to prEseNe and grow the capital value of funds, wthilst generating sufficient income to meet curTEnt commitments. This is achieved through a balanced approach to income and asset growth and appropriate risk diversification. The policy rEcognises that there will be differing investment styles required for some of the rEStricted funds. The company's Article5 Of kn50ciation empower it to invest the monies of the company not immediately required, as it thinks fit. The schwl uses extemal professional discretionary fund managers to achieve the investment objectives, which may be a single firm or seved firThs. The perforynance of these managers is reviewed regularly by the Investment sub-committee of the Finance Committee as is the overall allocation of usets by type and manager. During the year, Rathbone Brothers PLC managed the investment portfolio and have discrEtionary management wwery, In 2021 a gain of 18.8/12020.. 3,8T, lossl was seen across the funds. Govemor5 were satisfied with this resulL as it exceeds the investment policy objective range of CPI plus I ppt to CPI plus 4ppts across the various funds. The larEest portfolio is a fund forthe award of scholarships and bursaries, This fund comprises the Assyrian Fund and Canford Partnetship Fund, The investment policy is to maximise long-terTh totJ rEtum In such a way as to pemiit the ￿gUlar award of scholarships and bursaries while maintwning or incrE&ing the vlue of the fund in ￿31 terms. The second portfolio comprises various funds restricied by the donors for the provision of scholarships, bursaries, prize5 and artiviLies. The Composition Fees Scheme for advance payment of fees, the third portfolio, were invested with the aim of preseNing the capital and achieving a retum over a period of five sufficient to fiJnd the School'5 liabiltties under the scheme. Thi5 scheme wa5 close to new entrant5 in October 2020. GrdJrt Malang Policy This year, the value of Schol￿h1ps, grants, prizes and other awards made tothe School's pupils wa5 £827K (2020.. £768KI. The Governor5, policy is to make these award5 based on the individual's educational potential, subiert to the particular conditions Imposed by the original donor Whe￿ an award 15 made from ￿$t￿rted funds. In addrtion. mean5-tested bursary award5 totalling I1,480K {2020.. £1,172KI were provided. Funding from Inve¥tments contributed 1240K12020.. 1157KI to this, wrth the remainder funded from fees income. The policy for awarding bursaries is to broaden access to the school for prospettive pupils and to relieve hardship where a cunEnt pupil's education and future prospects would otherwise be at risk Awardg ￿p￿senting 90°A or more of the fees went to 24 pupilg12020.. 231. The availability of all such awards for fee assistance, together with the tem)s and conditions for each kind of award, Is advertised on our website. In the year the Govemors rEaffirmed their plan to increase means tested fee assistance through fundraising. Enew aThJ Cathn Perfoman Eney and carbon perforThance is an arra which receives an eVer-inC￿asIrng focus in the School. The Govemory have ag￿ed to estsblish a committee to develop a strategy to reduce the School's environmentsl Impart and to monitor the implementation of the strategy, Notwithstanding th15, during the year several sLep5 were taken to improve environmental perforrnance. This included a continued roll out of LED lighting and a continued focus by pupi15 on reqcling and food waste. Following a strong case made by pupils, a contract was agreed with a local company to have all food wasLe collected and converted to bio methane for ene￿Y generation. These efforts resulted C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 in the school maintaining Silver status underthe Eco-schools programme, For all Canford's captsl prvjerts, eady consider3tion is given to heat generation options, including the investigation of low and zero carbon technologies. Each option is evaluated on its likely rEduction of cathon emissions, along with the prarticalities of the location, likely impact on the setting and surrounding ground5, along with technical arbd c05t considerations. The new Boarding Houses have a building management 5YStem to optimise hot water heating efficiencies and ventilation will erther be natural or use high efficiency plate heat exchange￿, where requi￿d. All lighting will be based on low energy LED technology, wtLh daylight and motion sensor5. The new Library has a similar LED lighting 5Y5Lem and 15 designed to have a high air tightness rating along with a high efficiency heating 5Y5Lem. Almost all the school's electricity is from renewable gources. Other options for lrnpr0￿ng energy use a￿ under review. To detemiine the School's C02 emissions. we have followed the 2019 HM Govemment Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol Corpoote Standard and the 2021 UK Govemment's Converyion Facto￿ for Company Reporting. The level of C02e per pupil increased in 2021. This was driven by an increase in gas usage, allhough comparisons between years is difficu￿ due to periods in both comparator years where the school Site was closed due to the Covid-19 pandemic. 2021 C02 kg 2020 C02 kg 46.465 Energy type Tran5POrt- diesel Trans ort - unleaded Electricity Notes Scope I emi5SlOnS Scope 2 emissions Total 5.258 365.717 1 145.344 1,551,534 Fuel for minibuse& vans ￿ car 403.324 1,007.367 1,457,156 All School building5 C02e 2,413 2,218 * Note that electricity emissions have been detemiined using the UK Govemment's standard conve￿10n factors. However. the khool's elertricity ig sourced through a ￿neWable eneryy contract so this element of our emissions is essentially carbon neuLral. er Fiisk Management The Board of Govem0￿ is responsible forthe management of ris￿ faced bythe School. Risks a￿ identified and wiewed by the School's leade￿hIP team and 5pltL Into funrtional risk areas. The G0vem0￿, functional suwcommitees review their iisk areas on a temily basis, implementing appropnate mitigation measure5. The most significant r15ks are reviewed by the Goveming Body each temi. Through th15 proce55, the Governor5 a￿ satlsfied that the major nsks to the School have been identified and reasonably mitigated wrth key control5. The Govemors consider the major risks to the School to be.. The Inabilty to deliver high quality education and l or charEe Sufficient fees to 5usLain the school due to the Covid-19 outbreak. Competrtion from other 5choo15 could adversely affert pupil numbers. Significant disruption to school artivrtie5 from power OLrtage5, lire or the failure of key compLtLer h￿dware or 50ftware. Pupils significantty underachieve their potential. A challenging economic or poltLical outlook and l or a rising cost base could affect the affordabiltly of Canford's fees. A lack of readily available financial reserves might limit the School'g ability to respond to unexpected catasirophic events. staff costg rise at unsustainable levels given the InC￿aSIng level of employer pension contribLrtiong and the Nation￿ Living Wage. A road traffic accident or similar Incident leads to Injury or death, on or off school pff mises. The key controls include.. An ongoing risk assessment to mitigate the effects of Covid-19. This Includes Implementation of advice from the Department for Education and Public ￿ta￿h England. This risk assessment Is published on the School's website. Strategic risk ￿5¢$$M¢nt, planning, budgeting and management accounting. focussing funds on critical areas of infwtrucLurr. Clear Terms of Refe￿nce for all comm￿ceS and appropriate membership, ensuring oversight of high educational standards, relations with feeder schwls, all aspects of health and safety, the financial position of the school and IT systems. Forrnal wrrtten policies. Risk assessments for Indiwdual activtLies and department5. Vetting procedure5 as ￿qUired by law for the protection of wJlnerable people. Clear organ15ational 5Lructure, lines of reporting and authority Iimtt5. Formal agenda and minLrte5 to 5UPPOrt decision5 of all Committee and Governing Mdy activitie%. C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 STATEMEW OF DIR￿oRs. RE5PON51BIUnES The Govemory, who are Dirertors forthe purposes of Company Law, av resFM)nsible for preparing the DirErtors and Twstees, Report, incorporating the strategic report, and the financial statements in acCO￿ance wtLh applicable law and rEgulations. Company law requires the DirErtors to p￿ParE financiJ ststements for each financiJ year which give a ttue and fair view of the state of affairs of the charitable company and the group and of the Incoming rEsources and application of resources, including the income and expend[lu￿, of the charitable company and group for that period. In preparing these financial statements, the Directors a￿ requirEd to.. lelect suitable accounting policieg and then appty them consi¥tently'. observe the methods and principles in the Charities SORP.. make judgments and accounting estimates that a￿ ￿aSOnable and pmdent., state whether applicable UK Accounting Stsndards have been f011cw￿d, subj•tt to any material departures disclosed and explained in the financial ststements., prepare the financial statements on the going concern basis unless it is inappmpriate to presume that the company will continue in business. The Directo￿ are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the ￿set5 of the charitable company and the group and hence for tahng reasonable steps for the p￿VentIon and detection of fraud and other irregularitie5. So far as each of the Dirertors is aware at the time the report is approved.. there 15 no relevant audrt inforrnation of vthich the charttable company and group's audttors are Una¥vare.' and the Directorg have taken all steps that they ought to have taken to make themselves a￿￿ of any relevant audit infomiation and to establish that the audicorg a￿ aw¥e of that infomation. AULJTORS Haysmacintyre LLP have expre55ed their willingness to continue a5 audito￿ to Canford School knmited. This report wa5 approved by the Board on 26 November 2021 and 51gned on Itg behalf by. David R Levin 01￿ctOr[[rUStee C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 INDEPENDENT AUDrroRS' REPORTTOTHE MEMBERS OF CANFORD SCHOOL LIM￿ED Opinion We have audited the financial statements of Canford khool Limited for the year ended 31 july 2021 which comprise the Consolidated Ststement of Financial Artivities, Consolidated and Charity Balance Sheets, Consolidated C¥h flow Statement, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financiil Reporting5tand3rd&pp/ic&b/e in the UKandRepublic ofjlE/andlUntLed Kingdom Generally Accepted Accounting Prarticel. In our opinion, the financial statement5'. give a true and fair view of the state of the group g and of the pa￿nt Char[￿ble company's affai￿ as at 31 july 2021 and of the gmup's and parent charitable company s net movement in funds, includingthe income and experndrtu￿, forthe yearthen ended,, have been propeAy pffp￿d In accordance with United Kingdom Generally Accepted Accounting Poctice". and have been prePa￿d in accordance with the requirements of the Cornpanies Act 2006. Ba95 for opinion We cornduct￿ our audit in accordance with Intemation￿ Standards on Auditing IUKI IISAS IUKI) and applicable law, Our reswnsibilities underthose stsndards are further described in the Auditor's rEsponsibilities forthe audit ofthe financial ststements section of our ￿Port. We are independent of the group in accordance with the ethical rrquirements that arE fElevant to our audit of the financial statements in the UK, including the FRC'S Ethical Stsndard, and we have fulfilled our other ethical ￿SpOnSibl11t1es in accordance with these qu1￿Ments. We believe that the audit evidence we have obtsined is sufficient and appropriate to pro￿lde a basis for our opinion. Conclusions relating to going concem In auditing the financial statements, we have concluded that the tnJstees' use of the going concem basis of accounting in the preparation of the financial statements is appropiiate. Based on the work we have performed, we have not Identified any material uncertainties relatingto events or condttions that, indiwdually or collectively, may cast significant doubt on the group'5 ability to continue as a going concem for a period of at least twelve month5 from when the financial statement5 a￿ aLrthorised for 15sue. Our ￿SPonsIbl1￿CleS and the resp)nsibilities of the trusteeg with ￿SpeCt to going concem a￿ described In the rele￿t gections of this porL Other information The tmstees are responsible for the other Infomiation. The other Infomiation comprises the information Included In the Directo￿ and Ttustees, Report. Our opinion on the financial statements dtts not cover the other Information and, except to the extent othetwige explicitly ststed in our ￿POrt, we do not express any fom) of assurance conclusion the￿Orn, In connection with our audit of the financial ststementg, our rpsponsibility is to read the other inforThation and, in doing so, consider whetherthe other Information 15 materially Inconsistent wrth the financial sLatements or our thowledge obtsined In the audrt or othewoise appears to be materially mi55tated. If we Iderbtify such material inconsistencie5 or apparent material misstatements, we are ￿qUired to determine whether the￿ Is a material m15gtatement in the financial 5tatement5 or a matenal mi55Latement of the other information. If, based on the work we have performed, we conclude that there 15 a matenal m155Latement of thi5 Other Information, we are required to report that fact. We have nothing to report In this regard. Opinions on other Matte￿ pmribed by the Companies Art 2LX)6 In our opinion, based on the woth undertaken In the course of the audit.. the Information given In the Dirertor5 and TnJ5tee5 Report (which include5 the sirategic ￿pOrt and the director5 report prepared for the purposes of company lawl for the financial year for which the financial statements are pfftpa￿d is consistent with the financial statements.. and the strategic rewrt and the dirertors, ￿pOrt included within the Dirertors and Trustees, Rewrt have been p￿Pared In accordance with applicable legal rEquirEments. C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 Matters on which we are required to report by exception ID the light of the thowledge and understanding of the group and the Pa￿nt charitable cornpany and It5 environment obtained In the cOu￿e of the audit. we have not Identified material migstatementg In the Dirertorg and Tmstees. Report Iwhich incorporates the strategic report and the directorg, report). We have nothing to reFQrt in ￿sPeCt of the following matters in relation to which the Companies Art 2006 requi￿$ ug to report to you if, in our opinion.. adequate accounting ￿CordS have not been kept by the parent charitable company., or the parent charitable company financial statements are not in agreement with the accounting ￿CordS and retums,. or certain disclosU￿S of tnJstees' ￿MuneratiOn specified by law are not made,. or we have not received all the Information and explanation5 we ￿qUIre for our audti. ReSponsibil￿eS of tnjstees for the financi￿ ststements A5 explained more fully In the trustees responsibilities sLatement Set OLtL on page 15, the trusLees (who also the directors of the chaiiLable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a tnje and fair view, and for such Internal control as the trustees determine 15 necessary to enable the p￿ParatIon of financial ttatements that are free from matenal Mis$￿teMent. whether due to fraud or effor. In preparing the financi￿ statements. the trustees are ff gpongible for assessing the group's and the parent charitsble company's abilrfcy to continue as a going concem. disclosing, as applicable, Matte￿ related to going concem and using the going concem b￿1$ of accounting unless the twstees either intend to liquidate the group or the parent charitsble company or to cease operations, or have no rEalistic a￿ernatIve bLtL to do so. AudrtoI5 respon5ibilrties forthe audrt of the financial 5tatemerrts Ourobjectives are to obtain yE￿Onable assurance about whetherthe financial ststements ￿ a whole are free frory) material misstatement, whether due to fraud or enDr, and to issue an auditor s report that include5 our opinion. Reasonable assurance 15 a high level of assurance, bul is not a guarantee that an audit condurted In accordance with ISAS IUKI will alway5 detert a material misstatement when it exist5. Misstatements can arise from fraud or emr and a￿ conSide￿d material if, individually or in the aggregate, they could reasorbably be experted to influence the economic decisions of Use￿ taken on the basis of these financial statement5. lffegulartties, including fraud, are In>tancei of non-compliance with laws and regulations. We design procedu￿$ in line wtih our sponsibilities. othlined above, to detect Matern￿ mig%tatements In ￿SpeCt of iffegularrties. Including fraud. The extent to which our procedu￿$ are capable of detecting iffegulartties. Including fraud Is detailed below.. Based on our under3tsnding of the group and the environment in which it operates, we identified that the principal risks of non- compliance with laws and rEgulations related to the rEgulatory requirements of the Charty Commission and the Independent Schools Inspertorate, and we considered the exLent to which non-compliance might have a material effert on the financial ststements, We also considered those laws and rEgulations that have a dirert Impact on the preparation of the financial sLatement5 such a5 the Companie5 Act 2006 and the Charrties Art 201 I, and consider other factors such as payroll and sales tax. We evaluated management 5 Incentive5 and opportunities for fr7udulent manipulation of the financial 5Latement5 (including the nsk of ovemde of controls). and determined that the principal risks We￿ related to posting Inappropnate ioumal entries and management bias In making accounting estimates. Audit pmcedu￿s perfomied by the engagement team Included." Inspecting contspondence wrth ￿gulatOrS and tax authoritieg.. Digcusgions wrth management Including consideration of thown or suspected instances of non-compliance with laws and regulation and frnud., Evaluating management's controls designed to prevent and detect inEgularities,' Identifying and testing joumals, in particular10um￿ entries posted with unusual account combinations, postings by unusual users or with Unusu￿ descriptions., and Challenging aSSLJmption5 and Judgements made by management in their accounting e5Limate5 A further description of our respon51bilrtie5 forthe audit of the financial sLatementS 15 located on the Financial Reporting Council'5 webstLe . This de5cnption form5 part of our audrtors ￿ptsrt. C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 Use of our report This ryport Is made solely to the charitable company's members, ￿ a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undert*en so that v¢e might state to the charitable company's memben those matters we arr requiwd to state to them in an AudtLor's report and for no other purp)se. To the fullest extent permitted by law, we do not accept or assume ￿spOnSibl1[lY to anyone other than the charrtable company and the charitable company's members, as a body, for our audit worl for this report, or for the opinion5 we have formed. Steven Harper (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Ststutory Audito 10 Queen st￿et Place London EC4R IAG Date.. 7 December2021 C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 CONSOLIDATED ￿ATEMENT OF FINANCIAL A￿1VITIEs Ilncorporating an Income and ExpendtLure account} 2020 Note GEThEral Funds ROst￿tOd FL*)ds D￿lIMat*d Fthid ROstr￿￿d Funds Funds Total 2021 Genernl Funds Total 1020 INCOME FROM Income from act￿￿1 Offtttd￿LIO￿￿l Ittt￿e 0￿1 aroltsrytsTrding rKo 424.042 17.931.345 17.932.345 Othertrtding act[￿￿¢$ 27.976 99940 camp3ry Pen'.£ anc school lets Ir￿MP Inw?￿￿￿ 465695 59b07 Other Totsl Income 26,281,335 200.728 26585.258 19.460.350 59.607 EXPENDITURE ON Exp&iditure on rnising funds 17,3?6 692 362 47b76 Exp&iditure on Charitable activit￿ Total ExpeThditure NET INCOME before transfers &nd InvestmeThts 17.397 176.S95 47.676 208.976 73.798 175B671 6,870.4S2 (95.22S} 39.763 OFEFAnNG SURPLUS bèforè inY¢5knert g&in51Oo55¢5) 6b5S706 Net ga￿s1oD55&Sl on lTrJettmEnts FVNDPAISING INCOME Net Income 6,872,110 564.176 8,558.251 1295.741) (484.770) TTrrde￿ b*4Een 655.Sb64 NET NOVEMW IN FUNDS 316.456 7.677,619 564.176 8,558.251 {484.770} Furd b&lA￿e b￿jEkn at IA￿ 44567.656 |bnTr fward at 311 38.706.958 3.425.550 3 I￿19.33? 44.082.806 All operations of the company continued throughouL both Yea￿ and no operations We￿ acquired or discontinued in etther year. The company had no recognised gain5 or losse5 in the year other than those above. The statement of financial activtties Includes the Income and expenditure account. The notes on pages 22 to 38 fomi an integral part of these financial statements, C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 CONSOLIDATED AND CHARrrY BALANCE SHEEFS CANFORO SCHOOL UMITEO AS AT 31 JULY 2021 COMPANY REGISTEREO NO.. 190956 Group Charity Note5 lu 2021 2021 2020 2020 FIXED ASSEfs Cost 43.434211 13578.870 29,8i5,341 50,978,103 114,590,675) 36.387.428 43,286,716 Depreikltion Tangible Fixed Assets 14.724.326 36,399,299 29.834.813 INVESTMENTS Irwestsmerrt In 5ub51diary undertakirE Irwestsment for composrtion fees Restricted Irwe5tments Other Irwostments 100 962,148 3,149,435 7,073,734 100 962.148 3.149.435 7.073.734 2.721.621 5.9S1.778 5,951,778 CURPENT ASSFrs Sto(ks D*tois Cash at bank ar%J In hand 92.403 653455 | 5.802.783 12,429,737 671.669 6,537,101 5,633,260 12,186,572 700,781 10,360,897 11,073,273 CREDITO￿. amount5 faling dLt wrthin one year 16.904.9731 16046.7951 15,813,690) NEf cURREr￿[ ASSFts 5,524,764 5,2iO,424 5.528.071 5.259583 TOTAL ASSEfs LESS CUPRENT LIABILIMES 53.109,380 44,937,477 44.926.298 CBEDITOP5'. amounts faling dl affler niore than orhe ￿ar 1468.2431 18545911 1468,2431 1854,0441 NEf ASSErs 52,641,137 44,082,886 52.632.673 44.072.164 UNRESTPJCTED FUNDS Cfneral fund Designaied funds.. Property fund A55￿1a￿ Fwd Canfond PartrE￿hip fund 10508.629 10,500,165 25.066311 5.749k03 213225 31,621,974 6,832,291 252,693 25,066,311 5,749,803 213,225 6.832.291 252.693 RE¥tWCTED FUNDS 3.425550 2.861.374 3,425,550 2,861,374 TOTAL FUNDS 52,641,137 44,082.886 52.63?.673 44.072.164 The sU￿lUS of the Pa￿nt charitable company before con501idation was £8,560,50912020..105s of £484,770). The financial Statements were approved and athhonsed for Issue by the thard of Director5 on 26 November 2021 and were 51gned on It5 behalf by.. David R Levin Chairman Stephen Le Bas Chwrman of Finance Committee The notes on pages 22 to 38 fo￿ an integral part of these financial statement5. 20 C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 CONSOLIDATED CASH FLOW ￿ATEMENT FORTHEYEAR ENDED 31 JULY 2021 2021 2020 Net movement in funds Iwe5tment income ￿CeiVable {Gainsllb55e5 on investrnert5 8558.251 1180.3951 (1.688.200) 1484.7701 1175.7611 524533 Qpeoting surplus for the year 6.689,656 1135.9981 Depreciation {Pmfrtllloss on disposal of f￿ed assets Amortisation of ￿ase g￿nted ovw land Discount given on CompoSrt￿n f*s D￿rease I lincreasel in 5tod<5 (Inmselldecrtase in debto (Decreasellincwse In crtyjrtors 1.463,022 {5.755.1831 (7.6661 18.827 17.675 1112,8821 1598,794 1,369.236 211.068 (7.6661 15.071 37.179 3591 787,922 Net cash inflow from operating activities 3,912.243 2,280,403 Investir)g Iwe5tment income ￿ceiVed Purchase of tangible fixed assets Proceeds Irom Sale Of tangibk fixed assets Net Sa￿lIPUrchaSe) of Investments Net movement In composffcion lee Investmentg Net cashflow from capital expenditure and financial investments 180,395 18,512,006) 5,334 14,382 320,213 175.761 3,808 81.805 583.314 17.991.682) .339.4271 Net cash inflowl(outflowl before financing 14.079.439) {1.059.0241 Financing Composrtion fees rece￿ed Composrtion fee payrents Lessee's payments for the tEduction of the outstandirE 429.695 1863.3591 (630,426) Q,824) Net ca5hflow frDrn financing 1633.2501 1425.9421 Decrease in cash in the year Note 22 14.712.689) 11,484.9661 Cash and cash equivalents at the start of the year 10,515,472 12,000,438 Cash and cash equivalents at the end of the year 5,802.783 10,515,472 The note5 on page5 22 to 38 form an Integral part of these financial 5tatement5. C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 NOTESTOTHE FINANCIAL ￿ATEmENTs FOR THE YEAR ENDED 31 IULY1021 I. ACCOUNTING pouaES a) G&p￿lIn[omJ3trt The Charity is a private company limited by guarantee, incorporated in England and w￿e$ (company number 1909561 and a charity regISte￿d in England and Wales (charity number 3063151, The Charity's registerEd office address is The Bursary, Canford School, Wimbome, Doryet BH213AD. b) ofaccountsng The financial Statements have been PrEP￿Ed In accordance with Accounting and Reporting by ChariLies.' Statement of Recommended Practice applicable to chariLies p￿parIng their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) (Second Edition, effertive I january 20191- (Charrties SORP IFRS 102)), the Financial Reporting Standard applicable in the UK and Republic of I￿land IFRS 1021 and the Companies Art 2006. Canford 5ch¢X)I meets the definition of a public benefit entrty under FR5 102. Assets and liabilities a￿ Inttially ￿CognIsed at historical cost or transartion value unless otherwise stated In the ￿levant accounting policy note(sl. Financial statements a￿ p￿pared in pounds steding rounded to the nearest pjund. These financial ststements consolidate the ￿$￿Il5 ofthe charity and ffcs v¢holly owned subsidiary Cheneford knmited. In accordance with Section 408 of the Companies Att 2006, no separate Statement of Financi￿ Activities is presented for Canford School LimtLed. The Trustees have reviewed the appropriatene55 of adopting the going concem basis of accounting In preparing the annual financial 5tatement5 to a55ess whether the charity wa5 viable In accordance with the new requirement of the UK Corporate Governance Code. The a55essment Included a review of the budget and pnncipal ri5k5 facing the chartLy, their potential irnpact, how they We￿ being managed and a remew as to the appropriate period for the assessment. This asseggment included the short- and medium-temi risks associated with Covid-19, The Govemory are confident that there Is a ￿asOnable expectation that the charity will be able to continue in operation and meet its liabilities as they fall due over the one-year period of the ￿SeSSment. The preparation of financial Statements in compliance wffch FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Charty's accounting policies. The key judgements that have been applied by marbagement relate to.. Item5 covered above In Ba515 of accountln& such a5 determining the charty Is a going concem, and EsLimate5 regarding pen510ns Iiabiltiie5 have been made and a￿ covered In Note 21. Scho)I fees and operdting expenses are included in the financial statements on the accruals b￿15. Fees receivable are stated after deducting allowance, scholarships and other remissions granted by the school. Entrance and rEgistr7tion fees are credited to income In the year in which they arE received. All income and expenditurE included In the financi￿ statements is from continuing operations. Expenditure is allocated to expense headings either on a d1￿ct C05t basis or apwrtioned according to the management e5timate5 of time spent or space occupied, ￿ appropriate. VAT is Included Mqth the tLem of expenditure to which It ￿lates. Governance co¥ti compnse the cost of running the company. including strategic planning for tis future development, ertemal audit, and all the costs of complying with conttitutional and statLrtory requirements. such as the cost of govemor and comrnittee meetingg and p￿paring fift￿CIal statements. Ternnination payments are accounted for in the year in which the commitment is made, This applies to pay in lieu of notice, redundancy payments and payments under compromise agreements. 22 C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 Donations of tsngible fixed assets are capitalised, and a matching gift in kind is accounted for as a donation within the Ststement of Financial Activities. Other donations are accounted for within the Ststement of Financial Activities and are recognised when the school is entttled to the rEceipt Re￿￿52ndM￿￿￿enance Repair5 and maintenance expenditure is charged as an operting expense In the year In which rt Is Incurred net of any grant5 receivable. h) Investrnents The Investments a￿ ststed at market value, less any provision for pewanent diMinLJtion in value, It Is the company s policy to keep v￿￿ation up to date such that when investments are sold there 15 no gain or loss arising. As a ￿SUIt, the Ststement of Financial ArtivtLies only include5 those unrealised gains or losses arising from the revaluation of the investment portfolio throughout the year. The school also holds an investment at cost in tLs subsidiary, Cheneford LimtLed, showTr in Note 9. FEeholdlanddTrdbuilding5 Expenditure relating to the acqu15rtion of and exten510n5 to f￿ehOld land and building5 together wtth the Inttial equipping thereof 19 Capltalised and 15 Stated In the financial ¥tatementi at co¥t leig depreciation and any provision for impairment. No dep￿CiatIon is charyed on freehold land. Leases granted over land ￿ amortised over the temi of the lease. Land and buildings ￿ ￿viewed annually for impairment in accordance with FRS 102. DeptPC13tion Tangible fixed a55ets are stated at cost less accumulated depreciation. Donations of tangible fixed assets a￿ capitali5ed at their cash value or at estimated cash value if received in kind. Depreciation is provided on tangible fixed a55etS 50 as to wrrte off their cosL le55 estimated rEsidual value, by equal in5talments overthe expected useful lives of the assets concerned. Assets wtLh a cost of more than £5,0ffl are capitslised. The estimated useful lives conside￿d to be a5 follow5.. Freehold buildings Property Improvements Plant and equipment Computer equipment Fumiture, fixtu￿$ and fittings Motor vehicles Up to 50 yea 5 - 25 years 3 - 20 years 4-7yeary 10-20years 4Yea CompostLion fees rep￿sent payments In advance in ￿SPeCt of school fee5 for curTEnt and [lrtU￿ pupils. These are ￿corded in the School'5 balance sheet as a liabiltty I￿Presentingthe fee5 ￿ceiVed In advance from parent51 and assets (being the Investment5 managed by Rathbone Brothers PLCI. A transfer to the ￿venue account 15 made each term in ￿sPert of School fee5 which are then due. Stocks ar? stated at the lower of cost and net re￿iSable value, Asset5 acquired under finance lease5, which confer lights and obligations similar to those attached to Owned assets are captLalised and Included under tangible Iixed a5set5 In the balance sheet and depreciated over the Shorter of the lease temi and their Useful lives. The caprtal element5 of finance lease obligation5 are recorded a5 liabilttie5 while the Inte￿rt element5 are charged to the Statement of Finance Activities over the primary leage period. to produce a constant rate of charge on the balance of capital repayments oJtstanding, 23 C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 m) Operntsngleases Assets used by the school under operating leases are not caPit￿ls¢d. The costs associated with their rEnt￿ arE charEed on a straight-line basis over the lease term, even if the payments are not made on such basis, n) Penwns The School's professional teaching staff are members of a Superannuation Scheme operated by the Department for Education and Skills. Thi5 is a multi-employer defined benefrts scheme and Individual schools are not able to Identify their Share of the underlying assets and liabilities of the scheme. The results for the year are stated after charging the ￿levant employers contribLrtions to this scherne. Other staff are member> of a defined contnbution scheme. Further infom)ation and the basis of accounting is given in Note 21. o) rayat￿n The School is considered to pass the tests set out in paragraph I Schedule 6 of the Finance Act 201 O and thereforE it meets the definition of a charitable company for UK corporation tsx purposes. Accordingly, the School is potentially exempt from taxation in respect of income or capital gains received w￿h1n categories covered by Chapter 3 Part I l of the Corporation Tax Act 2010 or Section 256 of the Taxation of Cha￿eable Gains Act 1992, to the extent that such income or gains are applied exclusively to charrtable purposes. p) Thancmlinstnfftnts The Group only h35 Iinancial assets and financial Iiabiltties of a kind that qualify as basic financial initrumenti. Basic financial instruments, including trade and other debton and c￿d(cO￿ aff Initially ￿C02n1$td at transaction value and subsequently Me￿UrEd at their settlement value. Government grants a￿ accounted for on an accruals basis. 2. FEES 2021 2020 Gro55 School Fee5 21.509.237 19.813,741 Less.. scholarships, bur51ries, grants and all0b￿nCeS Q,877,3871 12549,4751 18,631,850 17.264,266 Add". schoh¢hips funded from Asgwan Fund and from SChola￿hIP Bursary and Prize Fund 240.000 156.830 18,871,850 17.421,096 3. INCOME FROM SUBSIDIARYS TFiADING AcT￿￿lEs The company owng 99% of the issued share capital of Cheneford Limited, a company ￿gistered in England, (Company number." 26942741. The company lets the facilities of the school, including a golf course, for use by the public and vallous orEanisations.The subsidiary's net profit Is paid to Canford under a Deed of Covenant. The subsidiary's trading resulLs forthe year, ￿ extracted from the audited financial 5tatement5, are summarised below.. 24 C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 2021 2020 Tumover Cost of Sales 473,869 608,414 1463,9311 1539,4071 Gr055 Proftt 9.938 69,007 Administryton ekpenses Other operating income Operatin8 profit Q,2BOI 47,688 Intere5L rECtwable Inteffst payable 107 14581 11,0041 Net profit P,7311 46,791 TurnI￿r includes £23,590 (2020.. £29,407) gupplied to the School. Costs include contributions to the overheads of the khool totalling £149.552 12020.. £159,072), These Intercompany transactions are excluded from the consolidated figures shown on the SOFA and In note 6. At 31 july 2021 there was a balance of £40,010 (2020.. £53,052) owed by Cheneford to Canford School Limited and £2,853 {2020.. £3,180} owed by Canford School LimtLed to Cheneford LimtLed. The Subsidiary's balance sheet a5 at 31 july 2021 a5 extrarted from the audited financial statements 15 5ummarised bel[￿.. 2021 2020 Fixed assets 20,528 286,030 280,179 1289,3361 P89,3381 {5471 CunEnt a55ets Less Cu￿nt liabil¢( Long term l￿bilitIeS Net Assets 8.565 10,822 Called up skkire caprtal Profrt and loss account 100 100 10,722 10,822 8,465 8.565 4. OTHER INCOME 2021 2020 Other educational charttable activtties Fee Income for extra 5ubiect5 Entrance and regtstration fees coU￿eS and sub lettings 292592 320.906 80,064 68.035 8,389 381,045 424.042 25 C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 Other income Gain I IL0551 on Sa￿s of F￿ed Assets Other operatio￿1 Income Amortisation of lease granted over land CIRS claims 428 420 7.666 7.666 494,016 844,592 6,257,293 641.610 Other ancillary trnding income Ancillary Income Insurance commission 97.078 87.207 97.078 87,207 5. INVESTMENT INCOME General Restricted Funds Funds 2021 Total General Restricted Funds Funds 2020 Total lryv￿tMent income 61.379 162,575 59.608 41,787 101.395 Inte￿$t ffcewed 17.820 17,820 180,395 74.366 133.974 74.366 61.379 41,787 175,761 6. ANALYSIS OF TOTAL EXPEND￿uRE aff £ost5 Other C05t5 2021 Total Staff Other cost5 2020 Total Depreciation Depreciation Costs ofgerÉrtting knds. Furdn41sing TradirE costs of Subséiary FInar￿ costs 60,337 63,984 244,770 174.046 394.392 8,657 102.547 241.449 89.765 Pr￿￿10￿ ofeducat -Teattin% .WElfare 7.177.864 458.334 7h36.198 4.023,773 4.479.174 2.674,354 64.869 7,252.660 3,026.958 729,832 7.982.492 -Prem6es 1.454.364 4.293B70 2,477062 64.205 -support costs 799,370 64.865 1,749B38 728,024 64.209 3.995,604 Grtnts, awa￿8 and pnzes 245,225 24i,225 4.240,829 Total Expendrtu 4.597250 All support C05t5 relate to the prov1510n of education. Support staff c05L5 Include the salaries of the HeadmagLer, Finance, Hurnan Re50urce5, IT. Mad(eting and Admi55ions. OLher support COSt5 Include computer equipment, photocopying equipment, software licences professional fees and the appfftnticeghip ley. 26 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2021 ||Group||Charity|| |---|---|---|---|---| ||2021|2020|2021|2020| ||£|£|£|£| |Charitable activities include:||||| |Depreciation on owned assets|1,463,021|1,369,236|1,454,364|1,357,001| |Operating leases|78,507|68,973|78,507|68,973| |Finance costs include||||| |Bad debts expense|32,403|122,901|33,491|119,292| |Governance costs include||||| |Auditors remuneration for||||| |Audit services|20,690|17,790|17,340|14,640| |Other service|0|0|0|0| ## 7. STAFF COSTS |7. STAFF COSTS|| |---|---| |Total staff costs were as follows:
Wages and salaries
Social security costs
Pension contributions|2021
2020
£
£
10,973,864
10,867,894
1,010,124
986,788
1,670,947
1,716,620| ||13,654,935
13,571,302| The governors received no remuneration during the year (2020: £nil). No related party transactions occurred during the year (2020: £nil). Two Governors have a child in the school paid at standard rates. Two Governors have children / grandchildren who receive merit-based scholarships. The related Governors were not involved in the decisions to make these awards. An aggregate amount of £123 was reimbursed to one governor during the year, in respect of travel expenses (2020: £2,303 to 5 governors). |governors).||| |---|---|---| ||2021|2020| ||No.|No.| |Staff numbers||| |The number of employees in the year were:|468|486| |The number of employees whose emoluments exceeded £60,000 were||| |£60,001 to £70,000|16|18| |£70,001 to £80,000|4|4| |£80,001 to £90,000|3|3| |£110,001 to £120,000|1|1| |£180,001 to £190,000|0|1| |£220,001 to £230,000|1|0| The employer pension contributions paid for the above higher-paid staff were £338,730 (2020: £383,390). During the year, pension arrangements for the highest paid employee were changed. A total of £263,267 (2020: £325,774) was paid to the Teachers' Pension Scheme, a defined benefit scheme, and £75,463 (2020: £57,616) to other schemes. There are a number of key management personnel in the School including the Senior Management Team and the Support Staff Senior Management Team. The total amount of remuneration, benefits (excluding those listed below) and pensions paid to this group of individuals was £1,671,775 (2020: £1,642,209). 27 C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 In addition to the payments contained in the bandings above, the School provides fee ￿MIssion to teaching and some senior stsff typical for the independent school sertor and accommodation lor ￿ imbunement for own accommodation) to stsff who are entitled to accommodation by virtue of their role. Pensily) contritxjtions and cornm[tm￿ts Teaching staff are eligible to contribute to the Teachers, Pen510n Scheme. 5upwrt 5Laff are eligible to contribute to a personal pen510n plan. Mthich Is a defin&l contribution scherne admlnlrte￿d by Scottish Widowg. All schemes pemiit staff to rnake additional voluntary contributions. Further details relating to these pension schemes are set OLrt In note 21. 2021 2020 Pension contributions Total employer contributions incunEd during the year waE'. Teaching stsff Support staff 1.081,898 634.722 1 ,716.620 565.231 1.670.947 2021 2020 Redundancy & Termination Payments made In the year totalled 46,320 74,270 8. TANGIBLE RXED ASSEfs- GROUP Freehold property Plant & equipment Computer equipment Furntture. fixtures & frtings Motor vehicles Total Historic cost Opening - 1st AugLsi Transfe Additions Disposals Closing- 315t luky 34.021,102 5,232,291 2.069,448 197,558 43.434,211 7.293,495 113,2801 377,607 84.629 P90.7401 1,707.701 180,580 70,819 8.007,130 5,596,202 2,250,028 268,377 Sl.122,625 Dep￿ciatIon OP￿l￿g - I st AugLSt Tran5fer5 Clkrge In lear Di5posa15 Closing- 3 I st july 8.954,791 2,194,060 1,430510 809,383 190,126 13.578,870 737,831 419,497 113,5451 1,600,012 148.378 Q90.7401 137,670 19,646 1.463,022 1317,5661 14.714,326 9.679,341 947,053 209,772 Net Book Value Op￿ing - I st AugLSt 25.066,311 3,038,231 483.302 1.260,065 7,432 29.855,341 Closing 31 st july 31,621,976 2,996,190 419,553 1,302,975 58,605 36,399,299 28 C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 8. TANGIBLE RXED AsS￿5- CHABiTY Freehold property Plant & equipment Computer equipment Furniture, fixtures & frtings Motor vehicles Total Historic cost OpenirE - l st Au£￿t Transfe Addrtions 34,021,102 5.095,885 1,902.723 2,069.448 197558 43,286.716 7.293,495 113,2801 377,607 84,629 1290,7401 1.696,612 180580 70.819 8,007.130 Disposa 5.461,769 2.250.028 268.377 50,978.103 Depreciation OpenirE - I st August Transfe Charge in year Disposa 8.954,791 2.078,182 809.383 190.126 13,451,903 737,831 113,2801 9.679,342 410,840 148,378 1290,7401 1.277,059 137,670 19,645 1,454,364 2.477,450 947.053 209.771 14,590.675 Net Book Value OpenirE - I SL AUg￿l 25.066,311 3.017,703 483,302 1,260.065 7.432 29,834,813 C105ing - 315t july 31,621,975 2,984,319 419,553 1,302,975 58.606 36,387.428 9. INVESTMEtKrrs Group 2021 2020 Charity 2021 2020 InvesLment in subsidiary undertakJng 100 100 10. COMP051TION ￿E5 The investment5 are managed by Pathbone Brothers PLC in accordance with an investment policy estsblished by the school as a trustee. The sU￿lUS of funds inve5Led over liabilitie5 has been ￿cognISed and 15 shown a5 a restnrted reserve. This scheme was c105e to new entrants in October 2020. 2021 2020 At l August 2020 Composition fees weived Income ansinE fmm Inv#tments Managefnent fees and similar charges Applied to school fees Net Movement In the year 1,456,535 1,944.150 439,695 76,710 145,0921 14,6401 {11,8471 1620,4261 1863,3591 1558,3561 1480,6031 Total liability as at 31 lub/ 2021 UnrEalised gainllbsslon Investments At 31 july 2021 898,179 1,463.547 64,469 962,648 (7,0121 1,456,535 29 C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 ReP￿ented by.. In￿￿tment wrth Rathbones 962,148 1 158,313 500 298,222 Cash at bank InteresL Receivable 962,648 1,456,535 Amounts falling due wthin one year Amounts falling due after one and within five yea Amount falling due after fwe yea 386,727 625,597 323,518 696.247 710,245 252,403 1,321 ,844 134,691 Composrtion Fee5 Pesewe 962,648 1,456,535 2021 2020 Investments representing Composition Fees Funds Inv￿tMentS rEpfEsenbng restricted funds at cost 897,679 1 165,325 ma￿et value of assets ￿ presenting ffstricted funds 962,148 The fur￿5 are iry for the provision of scholarships, bursaries, prizes and aaivities. Tranrfers betr￿en ￿ndS £6,555,663 transferred to the designated property fund from the general fund to match the mojement in net book value of freehold land and buildings. 34 C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 18.ALLOCATION OF ASSEFSTO FUNDS Other net Other ntt a55etsl Flxed asstts InvestmertS LoTrg term 2021 Total Long term 2020 Investsnents Unre5rn￿ ￿eral ),6$7,279 4.789L)30 Unrestritted Stho¢l Funds As5￿Mn-Lnd Car*wJ Partne￿￿5 Dp.51gnated P￿P.ty Furd 20￿00 6032.291 5,729,803 20,0 5,749,803 252bgts ?o,¢oo RÈstricted Funds Comp05rtiDn FEE5 Fur 8￿￿ary ard Pnze Fu￿j 5,062 2,726,683 .41i55C S.B7Y.9ts4 19. OPEPATING LEASE COMM￿mENTs At 31 july 2021 the company's futurp minimum operating le￿e payments are as follo￿.. Group 2020 Charity 2021 2020 2021 Within one year Bdween l aThJ 5 year5 78,441 117.963 78,441 117,963 74.204 106.438 74,204 106,438 At 31 july 2021 the company's future minimum operating le￿e incorne is as follows,. Group 2020 Charity 2021 2020 2021 Wrthin one year Between l and 5 year5 Over S year 7,666 38.330 107,323 7,666 38,330 107,323 7,666 38.330 107,323 7,666 38,330 107,323 20. CAPtrAL COMMITMEtKtrs Capital expendtLurE a￿hOrISed and contracted for at the balarbce sheet date amounted to £4,710,79612020.. £7,363,490) 21. PENSIONS The Group operates two pension schemes.. Teachers are enrolled In the Teachers, Pension Scheme and Support Staff are offered a Scottish Widows Group Peryonal Pension Plan. Staff who do not elertto join one oftwo schemes offe￿d are swept up Into the Scottish Widows scheme under auto-enrolment rules. TherE ￿ a small number of Support Staff who arE active memberE of a legacy Fension scheme, which is no longer offerrd to new members,. The Pensions Trust GrowLh Plan, The School is also responsible for paying a share of the pension costs for employees of the Allied School Agency Lim￿ed which provides company secretsrial and other services to the School. The fIgU￿S shown below include this liability. 35 C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 Teacher5 Pengons The School participates in the Teachery, Pension Scheme I'the TPS I for its teaching Staff, The pension charge for the year includes contributions payable to the TPS of I1,144,5ffl 12020.. 11,161,746) and at the ye3r-end £133,903 (2010.. 1142,871 I was accrued in spect of contrib￿lon5 to this scheme. The TPS 15 an unfunded muki*mployer defined beneftL5 pen510n scheme governed by The Teachers Pensions Regulation5 201 O las amended) and The Teacher5 Pension Scheme Regulations 2014 la5 amended). Members contribute on a pay as you go ba515 Wlth contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits a￿ paid by public funds provided by Parliament. The employer contribLrtion rate Is set by the Secretsry of State following gcheme valuations undertaken by the Government Actuary'g Department. The most recent artuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Rewrt, which was published in March 2019, confirmed that the employer contribuLion rate for the TPS vvould increase from 16.4% to 23.6% (rom I September 2019. Employers are also required to pay a scheme administration le￿ o(0.08% giving a tot￿ employer contribution rate of 23.68%. The 31 March 2016 Valuation Report wa5 p￿Pared in accordance wtih the benefit5 Set out In the scheme regulation5 and under the approach specified In the DI￿￿10￿5, a5 they applied at 5 March 2019. However, the a55UmPtIOn5 were con51dered and Set by the Department for Education priorto the ruling In the 'McCloudlSargeant case.. This case hai required the courts to consider cases regarding the Implementstion of the 2015 ￿fo￿n$ to Public Service Pensions Including the Teachen, Pensions. On 27 lune 2019 the Supreme Court denied the govemment pemiission to appeal the Court of Appeal's judgmerrt that tr3nsitional provisions Introduced to the rEforThed pension schemes In 2015 gave rise to unlavrful age discrimination, The govemment is rEsperting the Court's decision arbd has said ￿ will engage fully wtLh the Employment Tribunal as well as employer and member ￿presentativeS to agree how the disoimination5 will be remedied. The government announced on 4 February 2021 that it intends to proceed wtLh a deferred choice underpin under which members will be able to ch005e etLher legaq or refo￿￿ed scheme beneftL5 in ￿speCt of their service during the period between l April 2015 and 31 March 2022 at the point they become payable. The TPS is iubiect to a coit cap mechanism which was PLrt in place to protect taxpayer> against unfortseen changes In scheme costs. The Chief Secretary to the Treasury. having in 2018 announced that there would be a review of this cost cap mechanism, In january 2019 announced a pause to the cosi cap mechanism following the Court of Appeal's nJling In the McCloudlSargeant case and until there is certainty aboLrt the value of pensions to employees from April 2015 onwards, The pause lifted in july 2020, and a consultation wag launched on 24 lune on proposed changes to the cost control mechanism following a ￿VIeW by the Government Actuary. The consulLation closed to response on 19 August 2021 and the Govemment is currEntly analysing the rEsponses, In wew of the above njlings and deci510ns the assumptions used in the 31 March 2016 Actuarial Valuation may become Inappropriate. Irb this scenario, a valuation p￿Pared In accordance wtLh rewsed benefits and suitably rewsed assumptions would yield diffe￿nt resu￿5 tharb those contained In the Artuarial Valuation. Until the cost cap mechanisrn review Is completed it Is not possible to conclude on any financial Impact or fUtlj￿ changes to the contribution rateg of the TPS. Accordingly no provision for any addrcional past benefit pension costs Is Included in these financial statements. The Pen￿On$ Trn￿t Growth Flan To fulfil the School's responsibility to the Allied Schoo15 Agency Limited the company participates in this scheme, a mulLi-employer Scheme which proxqdes beneftL5 to some 950 non-a550ciated participating employer5. The scheme Is a defined benefit scheme irb the U It 15 not Possible for the company to obtain sufficient Information to enable It to account for the scheme as a defined benefit scheme. The￿fOre It account5 forthe scheme a5 a defined contribution scherne. The scheme 19 subject to the funding legislation outlined In the Pensions Art 2004 which came Into force on 30 December 2005, This. together with docurnentg Issued by the Pengions Regulator and Technical Artuarial Standards issued by the Financial Reporting Council. set out the framewod¢ for funding defined benefit occupational pension schemes in the UK. 36 C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 The scheme is cl&sified as a'last-man standing arrangement,. TherEforethe company is Potenti￿lY liable for other participating employers, obligations if those employers ar? unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers arr leg￿lY rEquirEd to meet their sharp of the scheme defic￿ on an annuity purch¥e basis on withdrawal from the scheme. A full actuarial valuation for the scheme wa5 carried OUL at 30 September 2017. This valuation showed assets of £794.9m, liabilitie5 of £926.4m and a deficit Of £131.5m. To eliminate this funding shorrfall, the Trustee has asked the participating employe￿ to pay additional contriblrtions to the Scheme a5 follow5.. Overal/Scheme DeKicit Contnbutions." From l April 2019 to 31 january 2025.. £11.243,000 per annum (payable monthly and Increasing by 3% each on I st April) Company Deficit Contnbutions.. From l April 2016 to 30 September 2028., £5.549 per annum (payable monthly and increasing by 3% each on I st Aprill.The recovery plan contributions arp ￿loCated to each participating employer in line with their estimated share of the Series l and Series 2 scheme liabilities. whe￿ the scheme 15 in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liabilty for this obligation.The amount recogn15ed 15 the net present ￿alue of the deficit redurtion contributions payable under the agreement that relate5 to the deficrt. The present value Is calculated u51ng the di5COUnt rate detailed In these dlsc105u￿S. The unwinding of the d15COUnt rate 15 ￿(08￿15ed a5 a finance c05t. PRESENT VALUES OF PROVISION (£0005) I£OOOs) Present value of provision 20 25 RECONCILIATION OF OPENING AND CLOSING PROVISIONS Period Ending Period Ending I£OOOs) I£OOOs) 25 30 Provision at start of pericd U￿1ndIng of the discount fartor CinterESt exper6el Deficit contnbLrtion pa 151 PEYneasur2rnents- impatt of any change In assumptio Remea5urErrEnts- arrEndments to the contribution schedule PrDVi510n at end of penod 20 25 INCOME AND EXPENDITURE IMPACF Period Ending Period EndinE (£0005) I£OOOs) Interest expense Pemeasurwents - ￿Pact of ay change in 355umptions Pemeasurwents - aMer￿mer￿S to the cortributk)n schedule C0rtnbUt￿Tr5 paid In respert of fLrture serV￿e Costs recoEnisd in income ard expenditure accourtt *IndL￿￿ defined contribution scheme5 and [￿￿re Servi￿ contributw)ns li.e. excluding any defrit redutt￿n pa￿ents) to defined benefrt Sch<¥n￿ which are treated as defined conlnbut￿rn sch(m￿. 37 C4NFORD SCHOOL LIHITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 IULY 2021 ASSUMPTIONS %per annum %per annum Pate of discount 057 0.60 The discount rates shown above are the equivalent single discount otes which. when used to discount the future recovery plan contribLrtiong due, would give the same results as using a full A4 corporate b)nd yield cuNe to discount the game recovery plan contribLrtions. The following schedule details the defic￿ contribLtLions agrEed between the company and the scheme at each year end period.. DEFICIT CONTRIBUTIONS SCHEDULE Year eriirg {£0005} (£00051 Year I Year 2 Year 3 Year 4 Year 5 Year 6 The company must recognise a liability me￿ured as the p￿sernt value of the contribLrtions payable that arise from the deficit recovery agreement and the resu￿1ng expense In the income and expenditure account i.e. the unwinding of the discount rate ￿ a finance cost in the period in which it Jises. It is these contribLtLion5 that have been used to derive the company's balance sheet liability. 21 ANALYSIS OF CHANGES IN DEBT l August 2020 New Finance Lease5 Foreign Exchange Movement5 Other Non Cash Movements Cashflows Fair Value Movements 2021 Cash Composition fees Finance lease obligation 10,515,472 (4.712,6891 630.428 2.824 4.079.437 0 5.802.783 118,8271 (710.2441 533 5.092.007 3,357 9,190,271 18,827 38