CANFORD SCHOOL LIMITED (Limited by Guarantee) ## REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 Registered Company No: 00190956 Registered Charity No: 306315 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 ## CONTENTS DIRECTORS AND OFFICERS ................................................................................................................................................................................................................................ 2 NOTICE OF ANNUAL GENERAL MEETING .............................................................................................................................................................................................. 4 DIRECTORS AND TRUSTEES’ REPORT ......................................................................................................................................................................................................... 5 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF CANFORD SCHOOL LIMITED ............................................................................ 17 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES ....................................................................................................................................................... 20 CONSOLIDATED AND CHARITY BALANCE SHEETS ..................................................................................................................................................................... 21 CONSOLIDATED CASH FLOW STATEMENT ....................................................................................................................................................................................... 22 NOTES TO THE FINANCIAL STATEMENTS ............................................................................................................................................................................................ 23 1 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 ## DIRECTORS AND OFFICERS DIRECTORS Chairman David Levin BEcon MA FRSA Retired 25 November 2022 Lieutenant General Sir Gary Coward KBE CB Appointed Chairman 25 November 2022 Vice-chairman Michael Jeffries Dip Arch RIBA FICE FRSA Akinbode Michael Oluwatosin Akinfala Appointed 22 April 2022 Mary Armitage CBE BSc MB ChB DM FRCP FRCPE Resigned 17 June 2022 Teresa Colaianni Barry Coupe BA DipArch RIBA Resigned 26 November 2021 Robert Daubeney BA Philippa Dickins MA MBBS DCH DRCOG MRCGP Georgina Fozard MA Cantab MBBS MRCPsych Professor Mark French MA Oxon PhD Nicholas Holloway BA Stephen Le Bas FCA BA Hons William McClaren-Clark Appointed 9 May 2022 Richard Nicholl BA PGCE Professor Jane Portlock Appointed 9 May 2022 Adam Richards BA Resigned 25 November 2022 Rev John Simmons Annabel Thomas BA ## OFFICERS Headmaster Ben Vessey MA MBA Bursar David J Brook OBE BSc MA CEng MRAeS Company Secretary Michael Porter MSc BA Registered Office The Bursary Canford School Wimborne BH21 3AD Solicitors Harrison Clark Rickerbys Limited Ellenborough House, Wellington Street Cheltenham GL50 1YD Veale Wasbrough Vizards LLP Narrow Quay House, Narrow Quay Bristol BS1 4QA Auditors Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG Steele Raymond LLP Richmond Point, 43 Richmond Hill Bournemouth BH2 6LR 2 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 Bankers Barclays Bank Plc Wytham Court 11 West Way, Botley Oxford OX2 0XP Insurance Brokers Marsh Limited Capital House 15 Perrymount Road Haywards Heath RH16 3SY Investment Advisors Rathbone Brothers Plc 8 Finsbury Circus London EC2M 7AZ 3 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 ## NOTICE OF ANNUAL GENERAL MEETING The Annual General Meeting of the company will be held at 12 noon on Thursday 23 March 2023 at Harrogate Ladies College, Clarence Drive, Harrogate HG1 2QG. In accordance with the Articles of Association Mr Akinfala, Mrs Colaianni, Sir Coward, Professor French, Mr McClaren-Clark and Professor Portlock retire by rotation and, being eligible, offer themselves for re-election. Mr Levin retires by rotation and does not offer himself for re-election. 4 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 ## DIRECTORS AND TRUSTEES’ REPORT ## FINANCIAL STATEMENTS The Governors, who are Directors for the purposes of Company Law and Trustees for the purposes of Charity Law, present their annual report and audited financial statements for the year ended 31 July 2022. The Governors have adopted the provisions of the Charities Statement of Recommended Practice (SORP) (Second Edition, effective 1 January 2019) based on Financial Reporting Standard (FRS) 102, in preparing the annual report and financial statements of the charity. ## OBJECTS AND AIMS ## Charitable Objects The Charity’s Object is to advance the education of boys and girls including but not limited to the provision of a senior school in or near Canford, Dorset and/or if thought desirable, in other parts of England or Wales, in accordance with the principles of the Church of England. ## Public Benefit Aims and Intended Impact In furtherance of this Object, Canford School’s public benefit aim is to provide a first class independent education, through strong academic tuition and through developing wider sporting, artistic, cultural and social skills in all its pupils. This is intended to provide an environment where each pupil can develop and fulfil his or her potential, thus to help build self-confidence and inculcate a desire to contribute to the wider community. Canford has restricted and unrestricted funds for the development of the School’s facilities as well as for scholarships, prizes and other educational purposes. The School provides bursaries for those without the means to support their child through school. The Charity also has to maintain its heritage endowment, with its Grade I and II listed buildings and historic park and tree collection, which are all considered of national importance. Canford views the social responsibilities it carries as an educational institution as being a central feature of our ethos, aims and actions. The ‘Importance of Community’ is one of our core aims whereby we recognise ‘the importance of community and the engendering of a deep rooted sense of social responsibility in the context of Canford’s Christian origins and heritage’ alongside ‘respecting the abilities, views and dignity of others throughout the school community and in 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 within and beyond the school. Aside from activities within the school based educational programme which seek to raise awareness and understanding of issues and problems confronting the wider world, hundreds of our pupils and many of our staff are engaged in active charitable and community partnership work locally, regionally, nationally and internationally. It is beyond the scope of this report to outline all of the detail of this extensive activity, although some more information can be found below. This social engagement and interaction in a meaningful and sustained sense is very much part of the fabric of Canford’s culture. In the furtherance of these aims the Governors, as the charity trustees, have complied with the duty in s.17 of the Charities Act 2011 to have due regard to the Charity Commission’s published general and relevant sub-sector guidance concerning the operation of the Public Benefit requirement under that Act. In addition, the Governors act to promote the success of the school by: considering the likely consequences of any decision in the long term; looking at the interests of the company’s employees; fostering relationships with pupils, parents, staff, suppliers and others; considering the impact of the Charity’s operations on the community and the environment; by maintaining a reputation for high standards of business conduct; and acting fairly as between members of the company. ## STRUCTURE, GOVERNANCE AND MANAGEMENT The School is a company limited by guarantee and each of its members has undertaken to contribute an amount not exceeding £1 (one pound) towards the assets of the company in the event of the same being wound up and the assets being insufficient to cover the company’s debts and liabilities. The School is a registered charity and is governed by its Articles of Association as most recently amended 5 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 on 26th September 2013 by Special Resolution. Canford School is a member of the Allied Schools group of independent schools, all of which were founded by the Martyrs’ Memorial and Church of England Trust (MMT). On September 26th 2013 the Allied Schools signed a management Agreement with MMT by which the members of the group agreed to the appointment of the Allied Schools Agency to oversee the performance of the schools and to monitor their adherence to the foundational religious principles on behalf of MMT. The School has 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 also co-operate with many local charities in our on-going endeavours to widen public access to the schooling we provide, to optimise the educational use of our cultural and sporting facilities and to awaken in our pupils, in the public interest, an awareness of the social context of the all-round education they receive at Canford. ## Governing Body The Governors are responsible for the overall management and control of Canford School and meet at least three times a year. The work of detailed formulation and implementation of most of their policies is carried out by members of the Finance and Executive Committees, who usually meet a few weeks in advance of the full Governing Board. The Education and Safeguarding, Property, External Relations and Communication, and Awards sub-Committees perform detailed reviews in their specialist areas. Governors are elected by the Governing Body, except that two Governors are nominated by the Martyrs Memorial and Church of England Trust if the total does not exceed 12, three if the number exceeds 12 but does not exceed 18, and four if the number exceeds 18. New governors are appointed by existing governors with input from the Headmaster and Bursar and care is taken to ensure that the relevant skills and experience are represented. Each new governor is provided with an information pack (handbook) and meets with key staff as part of an induction process. They are all encouraged to spend time at the School to experience lessons as the pupils do. All governors receive information on governor training update courses. All governors have access to the meeting papers and minutes for all committee meetings, whether or not they are members of that committee. Meetings may be held in person or virtually. This ensures that they are informed about the issues being addressed by those committees but can also raise queries and monitor progress in a wide range of areas. The chairmen of the sub committees meet regularly with the School’s lead for each committee area, thereby ensuring that they are fully briefed on issues and can provide advice, challenge and support as required. ## Organisational Management The day to day running of the School is delegated to the Headmaster, the Bursar and the Senior Leadership Team (SLT), which comprises of Deputy Head Academic, Deputy Head Pastoral, Deputy Head Co-Curricular and two Assistant Heads (Academic and Pupils). Strategic matters are discussed with the Senior Management Group (SMG), which comprises of the SLT plus the directors of Marketing, Admissions, Development, Human Resources, Finance and Estates, as well as the School Services Manager. Various educational management groups also operate to progress educational and pastoral matters. Changes to the remuneration levels of key management personnel are made with reference to industry standards, such as the Baines Cutler benchmark reports. Remuneration changes for specific roles are made with reference to internal performance criteria and external role benchmarks, including salary surveys and use of a benchmarking agency as required. The Headmaster and Bursar attend meetings of all the governors’ committees. 6 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 ## STRATEGIC REPORT AND FUTURE PLANS Canford’s Governors recognise that the School must remain competitive, relevant and sustainable in a rapidly changing and increasingly uncertain environment in which there is no shortage of local and regional competitor schools. In looking to the future, Canford intends to maintain and enhance its profile and position 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 prestige school boarding and day markets. The key to this will be attracting and retaining suitably able pupils by meeting or exceeding their and their parents’ expectations for high academic results, a wide range of high-quality co-curricular facilities and for comfortable pupil accommodation. Our plans include a wide array of educational programmes to enhance the learning experience of our pupils and the provision of flexible, adaptable infrastructure in order to widen the gap between full capacity and the break-even point, allowing flexible and efficient operation with an appropriate level of spare capacity. This strategy is subject to regular reviews, particularly in light of the Covid-19 pandemic. One particular area of focus is our work on Equality, Diversity and Inclusion. Some indication of our work over the past year can be seen on below. Canford remains committed to ensuring that it’s pupils and the whole community are fully engaged with the EDI focus and work and this is a standing agenda item for Senior Leadership Team and Governing Body meetings. ## Vision and Mission Statements Our Vision: ‘Canford: a school community where all are inspired to explore, empowered to express and challenged to excel.’ - Our Mission: ‘To build a community of open minded people who are motivated to embrace learning 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 opportunities for all to explore, to express and to excel.’ - Our Values: ‘Develop Purposeful engagement – Building a confident mindset develops positive life-long learning. We inspire members of our community to be curious and determined in pursuit of knowledge and opportunity. - Instil a Courageous Attitude – Being principled and strong, yet reflective and tolerant takes courage. We support members of our community to be bold and sensitive in expressing thoughts, words and deeds. - Promote Humble Ambition – Pursuing goals without arrogance or complacency brings meaningful success. We challenge members of our community to be energetic and resilient in pursuit of their goals but honest and grateful for fulfilment of them. - Encourage Gracious Leadership – Fulfilling a duty to guide and support others makes a difference. We urge members of our community to lead graciously and serve willingly for the greater good.’ ## Achievements and Performance Our vision and values have played out each and every day over the past year in so many ways, not least in the way all have adapted and supported each other over the past months during the challenges of the Covid-19 pandemic and other emerging issues. Canford’s commitment to a high-quality education and to ensuring that all members of its community can flourish is borne out in many ways and is evidenced by the support received from current members of the community and the strong interest in those wishing to join the school from many quarters. The EDI programme at Canford has grown exponentially over the last year. The EDI working party, comprised of staff and pupils, has worked to introduce several initiatives to raise greater awareness and understanding of a plethora of EDI issues. Canford has now produced a charter, a formal document that expresses our understanding and acceptance of difference in all its forms. This charter was signed by the Headmaster and the Heads of School and a copy is now placed on our website and in all our classrooms and houses. Canford has marked numerous EDI events over the year: International Men’s Day, International Women’s Day, Pride, Black History Month, and Chinese New Year to name a few. Our Festival of Ideas, organised by Jamie Ings, saw a range of fascinating talks from notable individuals examine the relationship between themselves and society. We have established four pupil-led groups: a Rainbow Alliance (considering LGBT+ issues), Open-Minded (working on Neurodiversity and hidden disability), a Challenge Sexism group and an Anti-Racism group. House Debating this year, involving many pupils in the school, considered a range of EDI topics which our guest judges considered incredibly challenging. The pupils sensitive handling of these topics was testament to the fact that we have built an exceptional and open-minded place to study. 7 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 This year we are offering an opportunity to a select group of pupils, staff and parents to run an action-research based project in school to challenge sexism. Our BBMC (Beautiful Black Mixed-Heritage Children) group of pupils will take a lead on sharing an impactful video of their experiences in our community to develop our collective understanding surrounding racism. We will continue to embed the use of the QR reporting code and the response and reconciliation framework developed to respond to issues relating to Protected Characteristics. We will also try to draw together the many strands of the Beyond the Gates curriculum at Canford, so that pupils, staff and parents can see the different ways in which we seek to develop well rounded Canfordians that are fully prepared for the modern world after Sixth Form. ## Academic Despite the ongoing effects of the pandemic, we worked incredibly hard to normalise our pupils’ experiences with public examinations returning after a two-year hiatus. The year culminated with some stunning examination results. At A-level/Pre-U, over 40% of all the examination grades were A*, with 73.7% at A*/A. At GCSE, 32.9% of grades were at level 9 (higher than the old A*) and 58.2% were at 9/8 (A* level). These results far outstrip the national average and the average results within the independent sector. In the U6, twenty pupils secured three A*s and five pupils gained four A* (including one who also obtained an A* for her EPQ). The average overall grade per pupil in the U6th was better than an A. The 5th form also showed great determination, strength and focus to achieve excellent GCSE results. As a group they shone: the average GCSE point score is a strong 7.6. There are many individual highlights; eight pupils secured a clean sweep of grade 9s, including one who also made his international cricket debut for England U19 during results week! Twenty pupils obtained at least eight grade 9s. Of course, academic success should not only be measured by examination results. Throughout the year, regardless of the limitations imposed by Covid restrictions, pupils enjoyed a rich range of academic extension activities, clubs, societies as well as drama, sport and music. Canford is an incredibly busy place - we aim to give our pupils maximum exposure to things that they will enjoy learning about. They are always encouraged to take opportunities whenever they can, to expand their horizons, widen their knowledge, embrace new learning and new experiences inside and outside of the classroom. The last three years have been difficult for everybody in our school due to the pandemic. However, there have also been opportunities where we have worked creatively and been innovative. In the coming year, the year of our school’s centenary, we can look towards the future with optimism in the knowledge that our staff and pupils pulled together, supported each other and thrived. ## Academic Enrichment The year saw several exciting enrichment activities delivered by the school and taken on by our pupils. The annual Baynham and CP Snow essay competition was run for our L6th year group with some truly outstanding entries. The Shell and 4th Form Scholars’ programmes ran throughout the year with a range of speakers giving talks to our talented young minds. Topics ranged from global variations in health, to nature vs Nurture and whether society creates criminals. Our 5th form Scholars’ trips resumed with a fascinating excursion to the Steve Etches Collection in Kimmeridge, where the pupils received an intimate tour and lecture from Mr Etches himself. During Black History Month, we invited Historian, Dr Angelina Osbourne to deliver a talk to the 5th form entitled ‘Putting the British Into Black History’, that was very well received by both pupils and staff alike. This sat alongside many departmental activities with a Black History focus such as an English reading competition for 4th Form where pupils researched short stories from a range of cultures to celebrate black voices. We also began our journey with Jemma Roye, from ‘Let’s start a Conversation’ when she joined us for the Festival of Ideas to discuss systemic racism and microaggression with our 6th formers. The aforementioned Festival of Ideas returned under the theme ‘The Individual in Society’. We saw visiting speakers talk to all year groups on a vast range of topics, including mental health, sexism, astronomy, and exploration of Papua New Guinea. The high standard of questions posed to speakers by our pupils was a clear indicator of how engaged our pupils were in the three-day event. The final enrichment event of the year was the Canford Educational Partnership Day, during which several Lower 6th pupils were invited to a number of talks and discussions with pupils from two inner city London academies and the Bourne Academy, as well as Old Canfordians. Session themes ranged from the importance of peer reviewed research to interview and careers advice. The school’s Global Connections programme went from strength to strength. We ran a Ukraine appeal, in which pupils facilitated the 8 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 delivery of thousands of donations to the country. Our Model United Nations programme has also gathered momentum and when we took pupils to the MUN conference at Magdalen College, Oxford, all 7 pupils won awards and Canford won best delegation. A group of 6th form Canfordians also ran a mini MUN conference with Castle Court School in October which was very well received by pupils and teachers alike. Finally, our 4th form Global Connections programme has continued to enrich the year group. Whether it be learning the cultural origins of the Haka, discussing the root of geopolitical conflicts or debating resolutions on climate change, Canfordians are given every opportunity to delve into our diverse world at every turn. ## Higher Education Despite the U6 year group never having sat a public exam due to Covid restrictions, they produced exceptional A level/Pre-U results. As a consequence, of the 138 offered places, 117 (85%) got their first choice. 106 pupils (77%) were placed at Russell Group universities and a further 14 at Top 12 universities (10%). With 10 pupils gaining places at Oxbridge, a further 10 succeeding in getting places at medical school in the most competitive of years and 5 gaining places at US universities, Canford has helped these pupils to achieve a very good start to their life after school, both from an academic and extracurricular standpoint. ## Sport After the numerous challenges of 2020/21 it was hugely satisfying to see a Canford sports programme in 2021/22 that saw sport return to some form of normality. The outstanding feature of the year was seeing pupils, at all ability levels, enjoying the company of other schools in competition. Fun was had, mental and physical skills were challenged and friendships were made as the pupils explored the opportunities that sport provides. There were many moments where Canford pupils excelled in the year: National Runners-Up in Golf, Bronze Medals won in Rowing at the National Schools Regatta and reaching the National Quarter Finals in the Girls U15 Cricket. These performances sat alongside very strong results in our focus team sports of Netball, Hockey, Cricket and Rugby. Individually, one pupil won the England Schools Championships (Discus) and another represented Great Britain in the European Juniors having won his National Age Group title. Three pupils were awarded Sports Scholarships to Universities in the USA where they will continue their educational and sporting journeys, and a large number of pupils continue on performance pathways alongside their sport at Canford. Wellbeing has been a constant theme explored throughout the year. The ability to further educate our pupils in this area will pay dividends as they look to meet the challenges they will face in their lives after Canford. This has included rolling out a sleep programme, further athletic development sessions in Carousel and Games and talks and seminars on Nutrition and Pelvic floor understanding. The physiotherapy team has expanded its provision and the school were proud to be one of the first schools in the country to join forces with Podium Analytics in a long-term research project with the aim of cutting down the number of injures in school sport. Sports Scholars now have a far more comprehensive programme of enrichment alongside their sporting development. Looking ahead will be great to see tours and training camps heading overseas along with lots of chances for pupils to express themselves including extra fixtures in place against Stowe as both schools look to celebrate their centenaries. With a re-decorated Performance gym and a new pitch laid on the Rossiter Astro (formally Brook) there are no reasons why this generation of Canford pupils can’t achieve their potential in sport and put in place the foundations to promote their physical wellbeing throughout their lives. ## Drama The Drama department returned to a full programme with several large scale productions involving numerous pupils on stage and behind the scenes. It was tremendous to also see audiences return in full to The Layard Theatre and although there were Covid blips along the way it was a strong year showcasing the work of the many talented pupils we have here at Canford. The year began with Little Shop of Horrors finally being staged after the postponement from the previous term. It was a huge success and provided an uplifting start to the year. One pupil returned to play Audrey 2 having started university life and there was a strong sense of relief that the hard work of many finally came to fruition. A Dance show and exam devised work followed shortly after before the Christmas term concluded with a production of Sondheim’s “Into the Woods” and the Canford Panto “Left out of the Woods”. Credit again to the pupils who had some serious Covid curveballs to deal with in the lead-up to the productions and also huge thanks to Kevin Wilkins and his team who produced an extraordinary set for the casts to work on. The Easter term saw our Scholars stage a creative adaptation of Roberto Innocenti’s illustrated picture book “Rose Blanche”. Sadly this was a timely exploration of war and its impact which was staged just as Russia invaded Ukraine. The end of term saw a production of “And then there were none”, stylish, elegant and great fun. The Summer term concluded with an anarchic and modern version of “Peter 9 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 Pan” complete with flying and an illuminated crocodile. Many students were involved but the L6 pupil who designed the set must be praised for her wonderful design which made up her EPQ project. Throughout the year we also held Friday Foyer evenings where pupils are given the opportunity to perform monologues, songs, their own writing etc. These low-key informal evenings have been very enjoyable and a good opportunity to share work without the pressure of a large audience. We also celebrated several pupils gaining success at NYT and NYMT and one U6 leaver this year has just begun a Foundation course at Drama School. Exam results for our GCSE and A’Level pupils were encouraging and the mood within The Layard this year has been one of positive creativity and excitement as we move from Covid times back to more normal ones. ## Music Music ensembles and choirs were delighted to resume ‘normal’ rehearsals and performance this year. The full range of concerts took place, and highlights included the annual Jazz concert in the music school and the opportunity for the orchestra and choirs to perform in Christchurch Priory in the Spring Term. The pupils were very glad not only to have live and appreciate audiences, but to enjoy the opportunity and the sense of occasion that these high-profile occasions brought. The carol service was a huge success, despite taking place at a time when there was some concern about Covid, being both well attended and well-received. During the first term the Chamber choir sang evensong in Winchester Cathedral, and the Chapel Choir in Wimborne Minster. Particularly popular with the community was the full return of the House Music competition which saw some very polished performing, and great enthusiasm from the whole school pupil body. The online streaming of concerts and events continued with decent view numbers for everything. House music notably achieved several thousand views over time. The summer term afforded the shells and 4th form an opportunity to perform in house groups in our informal ‘Sounds of Canford’ concert series, with older pupils having played earlier in the year. The final week of term showcased all of the major ensembles in an exciting summer concert, featuring much challenging repertoire which it was a joy to be able to work towards after some necessary ‘stepping back’ in the previous couple of year. A significant number of pupils achieved an ARSM diploma, or grade 8 with either merit or distinction during the year, and there were similarly decent achievements at lower grades. ## CCF Canford CCF continues to thrive as we welcomed the return of many of our trips to the school calendar. Full 24-hour field exercises were held at Woodbury Common, Braunton Burrows and Bovington Training Areas, involving fourth form and Sixth form NCOs. There was also opportunity to run several other UK based trips. An adventure training camp in Snowdonia and another in the Brecon Beacons tested our pupil’s ability to adapt to tricky conditions and try out new activities. The Battle Camp in Caerwent served as the culmination of the year’s training with 25 cadets working closely with members of 1 Rifles to fulfil a battlefield scenario. The Canford CCF continues to enjoy healthy numbers with 97% of Shells choosing it as their enterprise option for the coming year. The Cadre leadership course also hit record levels of participation with 38 fifth formers being taught the skills involved in effective leadership. Canford CCF also continues to earn a sterling reputation amongst the wider cadet community with the Cadet Training Team referring to our contingent as the “gold standard”. The Biennial Review showed this as well with the inspecting officer praising Canford for its excellent provision of opportunities for the pupils to build resilience and demonstrate leadership ## Duke of Edinburgh’s Award This year’s DofE programme has seen a welcome return to relative normality, enabling expeditions and activities to take place largely as planned. In the past year some 15 have achieved their Gold Award, and 7 have been awarded their Bronze. We have a pleasing number of this year’s Upper Sixth on the cusp of completing their Gold having completed their qualifying expeditions over the summer – walking in Wales and canoeing in Scotland. Looking ahead, we are aiming to partner with the Bourne Academy for DofE expeditions, with their pupils joining a Canford-led canoeing expedition, and Canford students joining a TBA-led paddleboarding expedition. ## Activities The activities programme for the Shell and 4th form pupils requires students to opt for at least one of 25 or so different activities that take place in the late afternoons, primarily Wednesdays. The most popular choices tend to be sporting (e.g. boys' hockey, netball, futsal, rowing and squash) but there are also many students participating in drama rehearsals and debating. ## Community Service and Public Benefit The community service programme resumed following the pandemic despite challenges for the Upper Sixth (who would normally mentor the Lower sixth) as they had missed volunteering experience due to the pandemic. However, our partners welcomed the return 10 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 of our pupils, with numerous letters and emails received thanking the School for sending such excellent volunteers. Whole Day Enterprises was another success. Pupils engaged with projects in local schools, including moving a school library and building a memorial garden for Wimborne First School in memory of a pupil who passed away. Pupils were visibly moved by a talk given by the child’s father and this helped to reinforce the importance of giving back. Despite some Covid-related disruption affecting the Christmas term, visits were almost back to normal by the end of the Easter term. One care home locked down during the Easter term so arrangements were made for residents to take part in an on-line Bingo competition with another care home. The Shine programme resumed in the Christmas term and a presentation was held for the parents and pupils. A new school has joined the programme - The Elm Academy. The City Reach project continues with visits to Northam by our pupils as well as hosting Northam pupils at Canford. Unfortunately, the annual trip to the Isle of Wight was cancelled and the Christmas party was postponed until the Easter term due to Covid. However, the annual sponsored walk for Northam took place with over 20 pupils and 6 members of staff raising £2,000 which will help City Reach who have started a new girls’ group. The group is also being sponsored by the Friends of Canford. Our thanks to them for their generosity. Work has also been carried out to support those suffering from the crisis in Ukraine with material and financial support put in place. The Bourne Academy have started a ‘Bourne Scholar Programme’, supported by Canford. The programme provides a highly academic and rigorous curriculum that will improve social mobility through increased confidence, high career aspirations and support for entry to top universities. Canford is supporting this programme by delivering sessions including presentation skills, Model United Nations, team building (using the assault course and climbing tower) and the history of Canford, both at The Bourne Academy and at Canford. ## Stakeholder Relationships Canford exists as a community; our links with current and former pupils, parents and staff, as well as our community partners, are strong. We employ over 450 people in the local community who and have used more than 500 suppliers, all of whom are crucial to our success. This supports our local, regional and national economy. We have increased our payments within the agreed terms and continue to focus on this. We are grateful to our suppliers for their continued support for Canford. ## Employee Engagement and Employment Policy Governors communicate with employees through a variety of channels. Both governors and employees sit on the Joint Consultative Committee where matters relating to pay, benefits and working conditions are discussed. Governors and employees also sit on the Health and Safety Committee. Governors write to employees to explain the impact of significant decisions, such as pay reviews and the strategic direction of the School. Any significant decisions taken during governors’ meetings are assessed for the impact they will have on staff, with the governors aware that the School cannot be successful without an engaged, motivated staff body. For information on the relationship between governors and management, see section ‘Structure, Governance and Management’. Canford School is an equal opportunities employer. Full and fair consideration is given to job applications from disabled persons and due consideration is given to their training and employment needs. Consultation with employees, or their representatives, has continued at all levels with the aim of taking the views of employees into account when decisions are made that are likely to affect their interests. Employees are made aware of the financial performance of the school. ## Fundraising Performance Canford undertakes fundraising activity to its supporters via fundraising events, sponsored events and direct mail. Email is used in line with the Fundraising Code of Practice set by the Fundraising Regulator. Our fundraising promise, which is available on our website alongside our privacy notice to reassure supporters of our approach, is: - “When you support you can be sure of the following: - We will never sell your contact details to anyone - If you ask us to change how we communicate with you, or stop, we will respect that - We try hard to ensure no one ever feels pressurised to support our work 11 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 - All our activities are open, fair, honest and legal.” Canford is registered with the Fundraising Regulator and adheres to the standards of the Fundraising Code of Practice. There were no complaints about fundraising activity during the year. Total fundraising costs during the year including operating budget and salaries were £198K (2021: £169K), to cover programmes including fundraising and a significant amount of engagement work. Where events took place, income (tickets purchased) partially offset some of the costs. Income from fundraising activities totalled £196K (2021: £153K). The Development Programme continues to seek to engage alumni, parents and friends of Canford as School benefactors. This can be through giving of time and expertise through volunteering; the giving of financial donations including one-off gifts, regular giving, or gifts of stocks, shares or art; and securing longer-term legacies. There are three main areas of activity within the current Development Programme: (1) engaging the Canford Community, (2) encouraging and promoting volunteering, and (3) fundraising to increase access to a Canford education through the provision of pupil bursaries. Secondary fundraising priorities include funding capital and equipment projects. Engaging the Canford Community involves supporting the many different volunteer-driven groups which themselves aim to benefit Canford, Canfordians and associated partner charities and organisations. The Development team provide support to the Old Canfordian Society (OCS), the Friends of Canford School, the Friends of Canford Music and the Friends of Canford Rowing. Events and monies raised by these groups are returned directly to benefit the education and enrichment of pupils and the Canford Community. Modernisation of the OCS is ongoing. Developments aim to transform connections between OCs and facilitate better communication, knowledge and support of our alumni. Volunteers to Canford give in a variety of ways. All school governors are volunteers and provide strategic oversight. Many others serve as alumni, sports or committee representatives. Alumni and parents provide careers advice to pupils providing mentoring, work experience or speaking to pupils about their experiences. Other volunteer duties include supporting music at Canford, supporting sport at home and away fixtures and speaking at Canford events. During the year over 200 individuals provided their time and expertise free of charge to Canford. The Governing Body is very appreciative of this invaluable support. Donations include cash gifts, regular gifts, bequests received and gifts-in-kind. The Development Office also supports the work of the Friends of Canford School (FCS), a parent and friends’ group. The group have again this year focused their support on local external charities through grants for specific projects. This included a grant to a longstanding partnership, the City Reach project in Southampton. The fifth annual fundraising auction to support the Martin Marriott Foundation raised a significant amount for the Foundation in November 2021. A telethon was held in early December 2021 and secured pledged donations totalling £75,781 over a four-year period. Regular donors acquired through the 2019 Telethon are continuing to donate monthly and are stewarded accordingly. The Case for Support on the website is updated annually to include new testimonies from bursary pupils, state fundraising aims and provide an accessible method for making online donations. The Lady Charlotte’s Walk campaign launched in 2020 inviting alumni and parents to sponsor a stone on the walkway leading to the new library has continued to be well received with over 220 stones now sponsored. The strategic plan for 2019-2024 is revised annually with an action plan updated to reflect current trends. 12 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 ## FINANCIAL REVIEW AND RESULTS FOR THE YEAR Current pupil numbers, and considerable future interest in the School, give us confidence that we will be at full capacity for the foreseeable future. This is a result of our continued resolve to deliver a top-quality education, supported by talented staff in an inspiring environment. The School’s financial policy is to maintain total fee income at a level sufficient to generate a surplus over time to meet the objectives of the School’s strategic plan, allowing for investment in the school. This will be achieved through both operating cash flow and fundraising. As a charity the parents of our pupils have the assurance that all the income of the school must be applied for educational purposes. In preparing its budget for this year the School recognised the need to continue to invest in both high quality staff and the School’s fabric, to ensure that both continue to support the educational mission. |Financial review summary|2022|2021| |---|---|---| |School fees receivable|£20,986K|£18,872K| |Fundraising income|£196K|£153K| |All other income|£2,141K|£7,561K| |Provision of education|£(19,915)K|£(19,124)K| |Other costs|£(1,280)K|£(592)K| |Net income(before transfers and
investmentgains / losses)|£2,129K|£6,870K| Operational financial performance was broadly in line with budget this year, despite higher wages and utility costs. Total gross fee income for the year was 11.2% higher than last year (2021: 8.6% higher). Pupil numbers remained healthy and there were no discounted weeks due to Covid. Fundraising income for bursaries was higher, due to the generosity of a number of parents and Old Canfordians. Other income was lower, despite the full resumption of trading activity, due to the one-off sale of a piece of land adjacent to the school in 2021 on which contracts have been exchanged but which has not yet completed. These funds will be used for capital projects. Careful cost control was exercised throughout the year to ensure that resources were focussed on pupil outcomes, despite significant increases in the National Living Wage, other staff costs and utility prices. Other costs were driven by the resumption of trading. A loss on investments of £0.4M led to the Statement of Financial Activities showing the School’s Net Income to be £1.8M (2021: gain of £8.6M). The overall cost of the School’s capital expenditure in this financial year amounted to £4.9M (2021: £8.0M), which included the strategic capital works programme (two new Boarding Houses £3.2M, Manor House refurbishment £0.8m and the new Library £0.3M). Other capital expenditure included ongoing reinvestment into the fabric of the school. Investing in additional flexible capacity and improved core facilities will ensure Canford’s future sustainability and there is a clear imperative to complete the strategic building plans which are essential to support future sustainability and success. All projects will remain subject to the usual governance and approval processes. Given the investment in capital expenditure there was a reduction in cash of £1.3M (2021: reduction of £4.7M). Overall the Governors were pleased with this financial result. Future plans will require similar levels of surplus order to provide sufficient income for the School’s strategic plan objectives – a top-quality education, supported by talented staff in an inspiring environment. ## Reserves Policy The beneficiaries of Canford School are its pupils; any reserves held must ultimately be for their benefit. Governors have determined that Canford should not hold excessive reserves, money that could otherwise be used for the benefit of pupils. Equally, insufficient reserves, in the event of a crisis, may mean that pupils experience undue disruption to their education. Given the current economic climate, Governors have reaffirmed their commitment for pupils to be able to complete the current academic year as a minimum. This strikes a balance between unduly tying up funds and minimising disruption in a crisis such as unplanned closure. To ensure this, the level of general reserves held will be equivalent to the sum of cash liabilities in the longest period in the academic year with no fee income, approximately £6M. This has been tested against several scenarios to confirm this level of reserves. Whilst restricted funds fall outside the definition of free reserves, some restricted funds are maintained principally for the award of bursaries and the advance payment of school fees. Designated funds are also held, in addition to the reserves above, for the purposes of matching the investment made in the fabric of the school, to fund the school’s partnership activities and to provide bursaries. 13 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 At the year end the school held total funds of £54.4M, of which £3.3M was held in restricted funds principally for the award of bursaries and the advance payment of school fees. The Governors have designated a further £39.9M for the following purposes: a) to match the investment it has made over the years in the fabric of the school estate and is not therefore freely available £33.0M b) to set aside funds to support the school’s partnership activities £0.3M; and c) to set aside funds that are invested for the provision of bursary support £6.7M. After these designations, and the value of fixed assets not represented by the property fund, free reserves are £11.2M (2021: £10.5M) which the Governors consider exceed the reserves policy objective. This excess will continue to be used for capital projects for the charity’s beneficiaries, with around £6m of projects planned in 22/23. Most of these projects have commenced. Governors monitor reserve levels on a regular basis, considering the working capital management of the school and the desire to continually improve facilities. ## Investment Policy and Objectives Canford School holds investments in three portfolios with the prime objective to preserve and grow the capital value of funds, whilst generating sufficient income to meet current 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 Articles of Association empower it to invest the monies of the company not immediately required, as it thinks fit. The school uses external professional discretionary fund managers to achieve the investment objectives, which may be a single firm or several firms. The performance of these managers is reviewed regularly by the Investment Sub-committee of the Finance Committee as is the overall allocation of assets by type and manager. During the year, Rathbone Brothers PLC managed the investment portfolio and have discretionary management powers. In 2021 a loss of 1.3% (2021: 18.8% gain) was seen across the funds. Governors were satisfied with this result given the context of the external environment. The largest portfolio comprises the Assyrian Fund and Canford Partnership Fund. The investment policy is to maximise long-term total return in such a way as to permit the regular award of scholarships and bursaries while maintaining or increasing the value of the fund in real terms. The second portfolio comprises various funds restricted by the donors for the provision of scholarships, bursaries, prizes and activities. The Composition Fees Scheme for advance payment of fees, the third portfolio, were invested with the aim of preserving the capital and achieving a return over a period of five years sufficient to fund the School’s liabilities under the scheme. This scheme was closed to new entrants in October 2020. ## Grant Making Policy This year, the value of scholarships, grants, prizes and other awards made to the School’s pupils was £852K (2021: £827K). The Governors’ policy is to make these awards based on the individual’s educational potential, subject to the particular conditions imposed by the original donor where an award is made from restricted funds. In addition, means-tested bursary awards totalling £1,563K (2021: £1,480K) were provided. Funding from investments contributed £279K (2021: £240K) to this, with the remainder funded from fees income. The policy for awarding bursaries is to broaden access to the school for prospective pupils and to relieve hardship where a current pupil’s education and future prospects would otherwise be at risk. Awards representing 90% or more of the fees went to 25 pupils (2021: 24). The availability of all such awards for fee assistance, together with the terms and conditions for each kind of award, is advertised on our website. In the year the Governors reaffirmed their plan to increase means tested fee assistance through fundraising. ## Energy and Carbon Performance Energy and carbon performance is an area which receives an ever-increasing focus in the School, even more so recently with the increase in energy prices. The Governors have agreed to establish a committee to develop a strategy to reduce the School’s environmental impact and to monitor the implementation of the strategy. Notwithstanding this, a number of steps were taken during the year to improve environmental performance. This included a continued roll out of LED lighting, replacing two diesel / petrol vehicles with electric vehicles and the commencement of a project to review renewable energy options for a number of buildings. For all capital projects, consideration is given to the full range of heat generation options. Each is evaluated on its likely reduction of carbon emissions, along with the practicalities of the location, likely impact on the setting and surrounding grounds, along with technical and cost considerations. The new Boarding Houses have a building management system to optimise hot water heating efficiencies and ventilation is either natural or makes use of high efficiency plate heat exchangers, where required. All lighting is based on low energy LED 14 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 technology, with daylight and motion sensors. The new Library has a similar LED lighting system and is designed to have a high air tightness rating along with a high efficiency heating system. Almost all the school’s electricity is from renewable sources. Active consideration is being given to ground source heat pumps and solar panels for other new buildings. To determine the School’s CO2 emissions, we have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and the 2022 UK Government's Conversion Factors for Company Reporting. The level of CO2e per pupil reduced in 2022, despite the school being open for a higher number of weeks (no Covid-related closures). This reduction was driven by moving one boys’ boarding house out of the Manor House, a Grade I listed building that is difficult to insulate, into a modern, well-insulated building. The rollout of LED lighting facilitated a reduction in electricity consumption. ||Energy type|CO2 kg
2022|CO2 kg
2021|Notes| |---|---|---|---|---| |Scope 1
emissions|Transport - diesel
Transport - unleaded|62,824
5,307|35,215
5,258|Fuel for minibuses, vans and cars| |Scope 2
emissions|Electricity *
Gas|332,985
1,054,859|365,717
1,145,344|All School buildings| |Total||1,455,975|1,551,534|| |kgCO2eperpupil
2,247
2,413||||| |kgCO2eperpupil||2,247|2,413|| * Note that electricity emissions have been determined using the UK Government’s standard conversion factors. However, the School’s electricity is sourced through a renewable energy contract so this element of our emissions is essentially carbon neutral. ## Risk Management The Board of Governors is responsible for the management of risks faced by the School. Risks are identified and reviewed by the School’s leadership team and split into functional risk areas. The Governors’ functional sub-committees review their risk areas on a termly basis, implementing appropriate mitigation measures. The most significant risks are reviewed by the Governing Body each term. Through this process, the Governors are satisfied that the major risks to the School have been identified and reasonably mitigated with key controls. The Governors consider the major risks to the School to be: - The inability to deliver high quality education and / or charge sufficient fees to sustain the school due to the ongoing impacts of the Covid-19 outbreak. - Competition from other schools could adversely affect pupil numbers. - Significant disruption to school activities from power outages, fire or the failure of key computer hardware or software. - Pupils significantly underachieve their potential. - A challenging economic or political outlook and / or a rising cost base could affect the affordability of Canford’s fees, exacerbated by the current inflationary environment. - A lack of readily available financial reserves might limit the School’s ability to respond to unexpected catastrophic events. - Staff costs rise at unsustainable levels given the increasing level of employer pension contributions, National Living Wage and inflationary challenges. - A road traffic accident or similar incident leads to injury or death, on or off school premises. ## The key controls include: - A risk assessment and monitoring of the current and longer terms effects of Covid-19. - Strategic risk assessment, planning, budgeting and management accounting, focussing funds on critical areas of infrastructure. - Clear Terms of Reference for all Committees and appropriate membership, ensuring oversight of high educational standards, relations with feeder schools, all aspects of health and safety, the financial position of the school and IT systems. - Formal written policies. - Risk assessments for individual activities and departments. - Vetting procedures as required by law for the protection of vulnerable people. - Clear organisational structure, lines of reporting and authority limits. - Formal agenda and minutes to support decisions of all Committee and Governing Body activities. 15 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 ## STATEMENT OF DIRECTORS’ RESPONSIBILITIES The Governors, who are Directors for the purposes of Company Law, are responsible for preparing the Directors and Trustees’ Report, incorporating the strategic report, and the financial statements in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and group for that period. In preparing these financial statements, the Directors are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgments and accounting estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The Directors 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 assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. So far as each of the Directors is aware at the time the report is approved: - there is no relevant audit information of which the charitable company and group's auditors are unaware; and - the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. ## AUDITORS Haysmacintyre LLP have expressed their willingness to continue as auditors to Canford School Limited. This report was approved by the Board on 25 November 2022 and signed on its behalf by: David R Levin Director/Trustee 16 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 ## INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF CANFORD SCHOOL LIMITED ## Opinion We have audited the financial statements of Canford School Limited for the year ended 31 July 2022 which comprise the Consolidated Statement of Financial Activities, Consolidated and Charity Balance Sheets, Consolidated Cash 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 July 2022 and of the group’s and parent charitable company’s net movement in funds, including the income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## Other information The trustees are responsible for the other information. The other information comprises the information included in the Directors and Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: - the information given in the Directors and Trustees’ Report (which includes the strategic report and the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the strategic report and the directors’ report included within the Directors and Trustees’ Report have been prepared in accordance with applicable legal requirements. 17 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 ## Matters on which we are required to report by exception In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors and Trustees’ Report (which incorporates the strategic report and the directors’ report). We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept by the parent charitable company; or - the parent charitable company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. ## Responsibilities of trustees for the financial statements As explained more fully in the trustees’ responsibilities statement set out on page 15, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so. ## Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of noncompliance with laws and regulations related to the regulatory requirements of the Charity Commission and the Independent Schools Inspectorate, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011, and consider other factors such as payroll tax and sales tax. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in making accounting estimates. Audit procedures performed by the engagement team included: - Inspecting correspondence with regulators and tax authorities; - Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; - Evaluating management’s controls designed to prevent and detect irregularities; - Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and - Challenging assumptions and judgements made by management in their accounting estimates Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of 18 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. ## Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed. Steven Harper (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditors 10 Queen Street Place London EC4R 1AG ## Date: 17th March 2023 19 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 ## CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income and Expenditure account) |INCOME FROM
Income from charitable activities
School fees receivable
Other educational income
Other ancillary trading income
Other trading activities
Fundraising
Trading company
Rents and school lets
Income from Investments
Other income
Total Income
EXPENDITURE ON
Expenditure on raising funds
Expenditure on Charitable activities
Total Expenditure
NET INCOME before
transfers and investments
gains/(losses)
OPERATING SURPLUS before
investment gains/(losses)
Net gains/(losses) on Investments
FUNDRAISING INCOME
Net Income
Transfers between funds
NET MOVEMENT IN FUNDS
Fund balance brought forward at
1 August
Balance carried forward at 31 July|Note
2
4
4
3
5
4
6
6
6
17|2022|2022|2022|2022|2021|2021|2021|2021| |---|---|---|---|---|---|---|---|---|---| |||General Funds
£|Designated
Funds
£|Restricted
Funds
£|Total 2022
£|General Funds
£|Designated
Funds
£|Restricted
Funds
£|Total 2021
£| |||20,986,249
462,468
147,041|0
0|0
0
0|20,986,249
462,468
147,041|18,871,850
381,045
97,078|0
0
0|0
0
0|18,871,850
381,045
97,078| |||21,595,758
17,689
934,654
346,141
19,508
10,280|
0
0
0
0
137,432
0|0
178,667
0
0
83,022
0|21,595,758
196,356
934,654
346,141
239,962
10,280|
19,349,973
13,415
465,695
179,138
17,821
6,257,293|
0
0
0
0
101,195
0|0
139,349
0
0
61,379
0|19,349,973
152,764
465,695
179,138
180,395
6,257,293| |||22,924,030|
137,432|
261,689|
23,323,151|
26,283,335|
101,195|
200,728|
26,585,258| |||1,227,262
19,635,882|29,541
(5,000)|22,796
284,033|1,279,599
19,914,915|528,594
18,882,620|27,396
1|35,527
241,068|591,517
19,123,689| |||20,863,144|
24,541|
306,829|
21,194,514|
19,411,214|
27,397|
276,595|
19,715,206| |||2,060,886|
112,891|
(45,140)|2,128,637|
6,872,121|
73,798|
(75,867)|6,870,052| |||2,043,197
0
17,689|
112,891

(266,578)

0|
(223,807)
(99,879)

178,667|1,932,281
(366,457)

196,356|
6,858,706
(1)

13,415|
73,798
1,048,157

0|
(215,216)

640,043

139,349|6,717,288

1,688,199

152,764| |||2,060,886|
(153,687)|(145,019)|1,762,180|
6,872,120|
1,121,955|
564,176|
8,558,251| |||(1,354,121)|1,354,121|
0|
0|
(6,555,664)|6,555,664|0|
0| |||706,765
10,508,629|
1,200,434

38,706,958|
(145,019)

3,425,550|1,762,180

52,641,137|
316,456

10,192,173|
7,677,619

31,029,339|
564,176

2,861,374|
8,558,251

44,082,886| |||11,215,394|
39,907,392|
3,280,531|
54,403,317|
10,508,629|
38,706,958|
3,425,550|
52,641,137| All operations of the company continued throughout both years and no operations were acquired or discontinued in either year. The company had no recognised gains or losses in the year other than those above. The statement of financial activities includes the income and expenditure account. The notes on pages 23 to 39 form an integral part of these financial statements. 20 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 ## CONSOLIDATED AND CHARITY BALANCE SHEETS CANFORD SCHOOL LIMITED AS AT 31 JULY 2022 COMPANY REGISTERED NO: 190956 |Notes
FIXED ASSETS
Cost
Depreciation
Tangible Fixed Assets
8
INVESTMENTS
Investment in subsidiary undertaking
9
Investment for composition fees
10
Restricted investments
11
Other investments
11
CURRENT ASSETS
Stocks
12
Debtors
13
Cash at bank and in hand
CREDITORS: amounts falling due
within one year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS: amounts falling due
after more than one year
15
NET ASSETS
UNRESTRICTED FUNDS
General fund
Designated funds:
Property fund
Assyrian Fund
Canford Partnership fund
RESTRICTED FUNDS
TOTAL FUNDS
17|Group
July
July
2022
2021
£
£
55,736,015
51,123,625
(16,107,188)
(14,724,326)
39,628,827
36,399,299
0
0
525,472
962,148
2,941,000
3,149,435
6,940,047
7,073,734
10,406,519
11,185,317
116,812
92,403
6,775,644
6,534,551
4,536,650
5,802,783
11,429,106
12,429,737
(6,834,722)
(6,904,973)
4,594,384
5,524,764
54,629,730
53,109,380
(226,413)
(468,243)
54,403,317
52,641,137
11,215,394
10,508,629
32,976,095
31,621,974
6,659,027
6,832,291
272,270
252,693
3,280,531
3,425,550
54,403,317
52,641,137|Charity
July
July
2022
2021
£
£
55,590,493
50,978,103
(15,969,863)
(14,590,675)| |---|---|---| |||39,620,630
36,387,428| |||100
100
525,472
962,148
2,941,000
3,149,435
6,940,047
7,073,734| |||10,406,619
11,185,417| |||25,648
16,211
7,193,677
6,537,101
4,040,456
5,633,260| |||11,259,781
12,186,572
(6,665,765)
(6,658,501)| |||4,594,016
5,528,071| |||| |||54,621,265
53,100,916| |||(226,413)
(468,243)| |||54,394,852
52,632,673
11,206,929
10,500,165
32,976,095
31,621,974
6,659,027
6,832,291
272,270
252,693
3,280,531
3,425,550| |||54,394,852
52,632,673| The surplus of the parent charitable company before consolidation was £1,762,179 (2021: £8,560,509). The financial statements were approved and authorised for issue by the Board of Directors on 25 November 2022 and were signed on its behalf by: David R Levin Stephen Le Bas Chairman Chairman of Finance Committee The notes on pages 23 to 39 form an integral part of these financial statements. 21 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 ## CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 JULY 2022 |FOR THE YEAR ENDED 31 JULY 2022|| |---|---| |Net movement in funds
Investment income receivable
(Gains)\losses on investments
Operating surplus for the year
Depreciation
(Profit)\loss on disposal of fixed assets
Amortisation of lease granted over land
Discount given on Composition fees
Decrease \ (increase) in stocks
(Increase)\decrease in debtors
(Decrease)\increase in creditors
Net cash inflow from operating activities
Investing
Investment income received
Purchase of tangible fixed assets
Proceeds from sale of tangible fixed assets
Net Sale\(Purchase) of investments
Net movement in composition fee investments
Net cashflow from capital expenditure and
financial investments
Net cash inflow/(outflow) before financing
Financing
Composition fees received
Composition fee payments
Lessee's payments for the reduction of the outstanding
liability relating to a finance lease
Net cashflow from financing
Decrease in cash in the year
Note 22
Cash and cash equivalents at the start of the
year
Cash and cash equivalents at the end of the
year|2022
2021
£
£
1,762,180
8,558,251
(239,962)
(180,395)
366,457
(1,688,200)
1,888,675
6,689,656
1,700,074
1,463,022
0
(5,755,183)
(7,666)
(7,666)
7,202
18,827
(24,409)
17,675
(241,093)
(112,882)
(43,539)
1,598,794
3,279,244
3,912,243
239,962
180,395
(4,766,285)
(8,512,006)
0
5,334
(3,831)
14,382
416,172
320,213
(4,113,982)
(7,991,682)
(834,738)
(4,079,439)
0
0
(430,862)
(630,426)
(533)
(2,824)
(431,395)
(633,250)
(1,266,133)
(4,712,689)
5,802,783
10,515,472
4,536,650
5,802,783| ||| The notes on pages 23 to 39 form an integral part of these financial statements. 22 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 ## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 ## 1. ACCOUNTING POLICIES ## a) General information The Charity is a private company limited by guarantee, incorporated in England and Wales (company number 190956) and a charity registered in England and Wales (charity number 306315). The Charity’s registered office address is The Bursary, Canford School, Wimborne, Dorset BH21 3AD. ## b) Basis of accounting The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Second Edition, effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Canford School meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). Financial statements are prepared in pounds sterling rounded to the nearest pound. These financial statements consolidate the results of the charity and its wholly owned subsidiary Cheneford Limited. In accordance with Section 408 of the Companies Act 2006, no separate Statement of Financial Activities is presented for Canford School Limited. The Trustees have reviewed the appropriateness of adopting the going concern basis of accounting in preparing the annual financial statements to assess whether the charity was viable in accordance with the new requirement of the UK Corporate Governance Code. The assessment included a review of the budget and principal risks facing the charity, their potential impact, how they were being managed and a review as to the appropriate period for the assessment. This assessment included the shortand medium-term risks associated with Covid-19. The Governors are confident that there is a reasonable 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 assessment and there are no material uncertainties in making this assessment. ## c) Significant judgements and sources estimation uncertainty The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Charity’s accounting policies. The key judgements that have been applied by management relate to: - Items covered above in Basis of accounting, such as determining the charity is a going concern, and - Estimates regarding pensions liabilities have been made and are covered in Note 21. ## d) Income and expenditure School fees and operating expenses are included in the financial statements on the accruals basis. Fees receivable are stated after deducting allowance, scholarships and other remissions granted by the school. Entrance and registration fees are credited to income in the year in which they are received. All income and expenditure included in the financial statements is from continuing operations. Expenditure is allocated to expense headings either on a direct cost basis or apportioned according to the management estimates of time spent or space occupied, as appropriate. VAT is included with the item of expenditure to which it relates. Governance costs comprise the cost of running the company, including strategic planning for its future development, external audit, and all the costs of complying with constitutional and statutory requirements, such as the cost of governor and committee meetings and preparing financial statements. e) Termination payments Termination payments are accounted for in the year in which the commitment is made. This applies to pay in lieu of notice, 23 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 redundancy payments and payments under compromise agreements. ## f) Donations Donations of tangible fixed assets are capitalised, and a matching gift in kind is accounted for as a donation within the Statement of Financial Activities. Other donations are accounted for within the Statement of Financial Activities and are recognised when the school is entitled to the receipt. ## g) Repairs and maintenance Repairs and maintenance expenditure is charged as an operating expense in the year in which it is incurred net of any grants receivable. ## h) Investments The investments are stated at market value, less any provision for permanent diminution in value. It is the company’s policy to keep valuation up to date such that when investments are sold there is no gain or loss arising. As a result, the Statement of Financial Activities only includes 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 its subsidiary, Cheneford Limited, shown in Note 9. ## i) Tangible fixed assets and depreciation ## Freehold land and buildings Expenditure relating to the acquisition of and extensions to freehold land and buildings together with the initial equipping thereof is capitalised and is stated in the financial statements at cost less depreciation and any provision for impairment. No depreciation is charged on freehold land. Leases granted over land are amortised over the term of the lease. Land and buildings are reviewed annually for impairment in accordance with FRS 102. ## Depreciation Tangible fixed assets are stated at cost less accumulated depreciation. Donations of tangible fixed assets are capitalised at their cash value or at estimated cash value if received in kind. Depreciation is provided on tangible fixed assets so as to write off their cost, less estimated residual value, by equal instalments over the expected useful lives of the assets concerned. Assets with a cost of more than £5,000 are capitalised. The estimated useful lives are considered to be as follows: |Freehold buildings|-|Up to 50 years| |---|---|---| |Property improvements|-|5 – 25 years| |Plant and equipment|-|3 – 20 years| |Computer equipment|-|4 – 7 years| |Furniture, fixtures and fittings|-|10 – 20 years| |Motor vehicles|-|4 Years| ## j) Composition fees Composition fees represent payments in advance in respect of school fees for current and future pupils. These are recorded in the School’s balance sheet as a liability (representing the fees received in advance from parents) and assets (being the investments managed by Rathbone Brothers PLC). A transfer to the revenue account is made each term in respect of school fees which are then due. ## k) Stocks Stocks are stated at the lower of cost and net realisable value. ## l) Assets acquired under finance leases - Assets acquired under finance leases, which confer rights and obligations similar to those attached to owned assets are capitalised and included under tangible fixed assets in the balance sheet and are depreciated over the shorter of the lease term and their useful lives. The capital elements of finance lease obligations are recorded as liabilities while the interest elements are charged to the Statement of Finance Activities over the primary lease period, to produce a constant rate of charge on the balance of capital repayments outstanding. 24 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 ## m) Operating leases - Assets used by the school under operating leases are not capitalised. The costs associated with their rental are charged on a straight-line basis over the lease term, even if the payments are not made on such basis. ## n) Pensions The School’s professional teaching staff are members of a Superannuation Scheme operated by the Department for Education and Skills. This is a multi-employer defined benefits 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 relevant employer’s contributions to this scheme. Other staff are members of a defined contribution scheme. Further information and the basis of accounting is given in Note 21. ## o) Taxation The School is considered to pass the tests set out in paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the School is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. ## p) Financial instruments The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade and other debtors and creditors are initially recognised at transaction value and subsequently measured at their settlement value. ## q) Government grants Government grants are accounted for on an accruals basis. ## 2. FEES |2. FEES|| |---|---| |Gross School Fees
Less: scholarships, bursaries, grants and allowances
Add: scholarships funded from Assyrian Fund and from
Scholarship Bursary and Prize Fund|2022
2021
£
£
23,631,149
21,509,237
(2,923,900)
(2,877,387)| ||20,707,249
18,631,850
279,000
240,000| ||20,986,249
18,871,850| ## 3. INCOME FROM SUBSIDIARY’S TRADING ACTIVITIES The company owns 99% of the issued share capital of Cheneford Limited, a company registered in England, (Company number: 2694274). The company leases the Sports Centre and lets the facilities of the school, including a golf course, for use by the public and various organisations. The subsidiary’s net profit is paid to Canford under a Deed of Covenant. The subsidiary’s trading results for the year, as extracted from the audited financial statements, are summarised below: 25 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 |Turnover
Cost of Sales
Gross Profit
Administration expenses
Other operating income
Operating profit
Interest receivable
Interest payable
Net profit|2022
2021
£
£
1,502,318
473,869
(1,123,189)
(463,931)| |---|---| ||379,129
9,938
(147,441)
(12,218)
0
0| ||231,688
(2,280)
146
7
(14)
(458)| ||231,820
(2,731)| Turnover includes £36,387 (2021: £23,590) supplied to the School. Costs include contributions to the overheads of the School totalling £154,000 (2021: £149,552). These intercompany transactions are excluded from the consolidated figures shown on the SOFA and in note 6. At 31 July 2022 there was a balance of £470,618 (2021: £40,010) owed by Cheneford to Canford School Limited and £20,280 (2021: £2,853) owed by Canford School Limited to Cheneford Limited. The subsidiary's balance sheet as at 31 July 2022 as extracted from the audited financial statements is summarised below: |4. OTHER INCOME
Fixed assets
Current assets
Less current liabilities
Long term liabilities
Net Assets
Called up share capital
Profit and loss account
Other educational charitable activities
Fee income for extra subjects
Entrance and registration fees
Courses and sub lettings|2022
2021
£
£
8,197
11,871
660,223
286,030
(659,855)
(289,336)
0
0| |---|---| ||8,565
8,565| ||100
100
8,465
8,465| ||8,565
8,565| ||2022
2021
£
£
310,048
292,592
106,950
80,064
45,470
8,389| ||462,468
381,045| 26 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 |Other ancillary trading income
Ancillary income
Insurance commission
Other income
Gain / (Loss) on Sales of Fixed Assets
Other operational income
Amortisation of lease granted over land
CJRS claims|147,041
97,078
0
0| |---|---| ||147,041
97,078| ||0
5,755,183
15
428
7,666
7,666
2,599
494,016| ||10,280
6,257,293| ## 5. INVESTMENT INCOME |Investment income
Interest received|General
Funds
Restricted
Funds
2022
Total
General
Funds
Restricted
Funds
2021
Total
£
£
£
£
£
£
137,431
83,022
220,453
101,196
61,379
162,575
19,509
0
19,509
17,820
0
17,820| |---|---| ||156,940
83,022
239,962
119,016
61,379
180,395| ## 6. ANALYSIS OF TOTAL EXPENDITURE |Costs of generating funds:
Fundraising
Trading costs of subsidiary
Finance costs
Charitable Activities
Provision of education
-Teaching
-Welfare
-Premises
-Support costs
Governance
Grants, awards and prizes
Total Expenditure|Staff
costs
Other
costs
Depreciation
2022
Total
Staff
costs
Other
costs
Depreciation
2021
Total
£
£
£
£
£
£
£
£
114,466
83,511
0
197,977
108,837
60,337
0
169,174
519,465
434,634
3,674
957,773
117,602
193,537
8,657
319,796
0
123,849
0
123,849
0
102,547
0
102,547| |---|---| ||633,931
641,994
3,674
1,279,599
226,439
356,421
8,657
591,517| ||7,369,519
299,401
0
7,668,920
7,177,864
458,334
0
7,636,198
3,150,144
1,094,568
0
4,244,712
3,109,075
914,698
0
4,023,773
980,226
2,504,960
1,696,400
5,181,586
1,266,573
1,758,337
1,454,364
4,479,274
1,804,710
662,237
0
2,466,947
1,874,984
799,370
0
2,674,354
0
68,491
0
68,491
0
64,865
0
64,865| ||13,304,599
4,629,657
1,696,400
19,630,656
13,428,496
3,995,604
1,454,364
18,878,464| ||0
284,259
0
284,259
0
245,225
0
245,225| ||13,304,599
4,913,916
1,696,400
19,914,915
13,428,496
4,240,829
1,454,364
19,123,689| ||| ||13,938,530
5,555,910
1,700,074
21,194,514
13,654,935
4,597,250
1,463,021
19,715,206| All support costs relate to the provision of education. Support staff costs include the salaries of the Headmaster, Finance, Human Resources, IT, Marketing and Admissions. Other support costs include computer equipment, photocopying equipment, software licences professional fees and the apprenticeship levy. 27 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 ||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|2022
2021
£
£
11,133,689
10,973,864
1,075,472
1,010,124
1,729,369
1,670,947| ||13,938,530
13,654,935| The governors received no remuneration during the year (2021: £nil). No related party transactions occurred during the year (2021: £nil). An aggregate amount of £801 was reimbursed to 1 governor during the year, in respect of travel expenses (2021: £1,233 to 1 governor). 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. ||2022|2021| |---|---|---| ||No.|No.| |Staff numbers||| |The number of employees in the year were:|465|468| |The number of employees whose emoluments exceeded £60,000 were||| |£60,001 to £70,000|21|16| |£70,001 to £80,000|3|4| |£80,001 to £90,000|3|3| |£110,001 to £120,000|1|1| |£220,001 to £230,000|1|1| 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 £1,700,995 (2021: £1,671,775). In addition to the above payments and those contained in the bandings above, the School provides fee remission to teaching and some senior staff typical for the independent school sector and accommodation (or reimbursement for own accommodation) to staff who are entitled to accommodation by virtue of their role. Pension contributions and commitments Teaching staff are eligible to contribute to the Teachers' Pension Scheme. Support staff are eligible to contribute to a personal pension 28 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 plan, which is a defined contribution scheme administered by Scottish Widows. All schemes permit staff to make additional voluntary contributions. Further details relating to these pension schemes are set out in note 21. |Pension contributions
Total employer contributions incurred during the year were:
Teaching staff
Support staff
Redundancy & Termination Payments
made in the year totalled|2022
2021
£
£
1,153,292
1,105,716
576,077
565,231| |---|---| ||1,729,369
1,670,947| ||2022
2021
£
£
34,961
46,320| ## 8. TANGIBLE FIXED ASSETS – GROUP |Historic cost
Opening - 1st August
Transfers
Additions
Disposals
Closing - 31st July
Depreciation
Opening - 1st August
Transfers
Charge in year
Disposals
Closing - 31st July
Net Book Value
Opening - 1st August
Closing - 31st July|Freehold
property
Plant &
equipment
Computer
equipment
Furniture,
fixtures &
fitings
Motor
vehicles
Total
£
£
£
£
£
£
41,301,317
5,596,203
1,707,701
2,250,028
268,376
51,123,625
0
0
0
0
0
0
2,228,584
801,743
86,396
1,682,619
130,260
4,929,602
(100,000)
0
(217,212)
0
0
(317,212)| |---|---| ||43,429,901
6,397,946
1,576,885
3,932,647
398,636
55,736,015| ||9,679,342
2,600,012
1,288,148
947,053
209,771
14,724,326
0
0
0
0
0
0
874,463
422,741
140,169
227,844
34,857
1,700,074
(100,000)
0
(217,212)
0
0
(317,212)| ||10,453,805
3,022,753
1,211,105
1,174,897
244,628
16,107,188| ||31,621,975
2,996,191
419,553
1,302,975
58,605
36,399,299| ||32,976,096
3,375,193
365,780
2,757,750
154,008
39,628,827| 29 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 ## 8. TANGIBLE FIXED ASSETS – CHARITY |Historic cost
Opening - 1st August
Transfers
Additions
Disposals
Closing - 31st July
Depreciation
Opening - 1st August
Transfers
Charge in year
Disposals
Closing - 31st July
Net Book Value
Opening - 1st August
Closing - 31st July|Freehold
property
Plant &
equipment
Computer
equipment
Furniture,
fixtures &
fitings
Motor
vehicles
Total
£
£
£
£
£
£
41,301,317
5,461,770
1,696,612
2,250,028
268,376
50,978,103
0
0
0
0
0
0
2,228,584
801,743
86,396
1,682,619
130,260
4,929,602
(100,000)
0
(217,212)
0
0
(317,212)| |---|---| ||43,429,901
6,263,513
1,565,796
3,932,647
398,636
55,590,493| ||9,679,342
2,477,450
1,277,059
947,053
209,771
14,590,675
0
0
0
0
0
0
874,463
419,067
140,169
227,844
34,857
1,696,400
(100,000)
0
(217,212)
0
0
(317,212)| ||10,453,805
2,896,517
1,200,016
1,174,897
244,628
15,969,863| ||31,621,975
2,984,320
419,553
1,302,975
58,605
36,387,428| ||32,976,096
3,366,996
365,780
2,757,750
154,008
39,620,630| ## 9. INVESTMENTS |9. INVESTMENTS||||||| |---|---|---|---|---|---|---| |||Group|||Charity|| ||2022||2021||2022|2021| ||£|||£|£|£| |Investment in subsidiary undertaking|-|||-|100|100| ## 10. COMPOSITION FEES The investments are managed by Rathbone Brothers PLC in accordance with an investment policy established by the school as a trustee. The surplus of funds invested over liabilities has been recognised and is shown as a restricted reserve. This scheme was closed to new entrants in October 2020. |entrants in October 2020.|| |---|---| |At 1 August 2021
Composition fees received
Income arising from investments
Management fees and similar charges
Applied to school fees
Net Movement in the year
Total liability as at 31 July 2022
Unrealised gain/(loss)on investments
At 31 July 2022|2022
2021
£
£
962,648
1,456,535
0
0
2,609
76,710
(2,797)
(4,640)
(430,862)
(630,426)| ||(431,050)
(558,356)| ||531,598
898,179
(6,156)
64,469| ||525,442
962,648| 30 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 |Represented by:||| |---|---|---| |Investment with Rathbones|525,472|962,148| |Cash at bank|(30)|500| |Interest Receivable|0|0| ||525,442|962,648| |Amounts falling due within one year|183,320|386,727| |Amounts falling due after one and within five years|103,264|323,518| |Amount falling due after five years||| ||286,584|710,245| |Composition Fees Reserve|238,858|252,403| ||525,442|962,648| ||2022|2021| ||£|£| |Investments representing Composition Fees Funds||| |Investments representing restricted funds at cost|531,628|897,679| |Market value of assets representing restricted funds|525,472|962,148| |The funds are invested by Rathbones||| |UK equities|127,265|238,336| |Overseas equities|84,996|186,407| |Index linked|58,006|93,524| |Other|246,570|428,445| |Cash and commitments|8,635|15,436| ||525,472|962,148| ||2022|| ||£|| |Reconciliation of Movement in Fund||| |B/Fwd|962,148|| |Additions|72,807|| |Disposals|(482,178)|| |Profit /(Loss) on Disposals|50,121|| |Unrealised Gains/(Losses)|(70,625)|| |Cash Movements|(6,801)|| |C/Fwd|525,472|| 31 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 ## 11. OTHER INVESTMENTS |THER INVESTMENTS|| |---|---| |Assyrian Fund
Cost of assets representing School Funds
Market value of assets representing School Funds
The funds are invested by Rathbones|2022
2021
£
£
6,499,003
6,143,411| ||6,931,297
7,064,984| ||| a) Assyrian Fund ||2022||2021|| |---|---|---|---|---| ||Total||Total|| ||£||£|| |UK equities|1,738,252|1,673,158||| |Overseas equities|1,745,481|2,372,462||| |Index linked|392,290||355,487|| |Other|2,362,355|2,580,052||| |Cash and commitments|692,919||83,825|| ||6,931,297|7,064,984||| ||2022|||| ||£|||| |Reconciliation of Movement in Fund||||| |B/Fwd|7,064,984|||| |Additions|1,453,222|||| |Disposals|(1,929,426)|||| |Profit /(Loss) on Disposals|222,702|||| |Unrealised Gains/(Losses)|(489,280)|||| |Cash Movements|609,095|||| |C/Fwd|6,931,297|||| |b) Other Assets held as Investments||||| |Market value of assets representing School Funds|8,750|||8,750| |||||| |Total Other Investments|6,940,047||7,073,734|| ||2022||2021|| ||£||£|| |c) Restricted Funds - Scholarship, Bursaries and|Prize Fund|||| |Investments representing restricted funds at cost|2,716,999||2,715,477|| |Market value of assets representing restricted funds|2,941,000||3,149,435|| |The funds are invested by Rathbones||||| 32 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 |UK equities
Overseas equities
Index linked
Other
Cash and commitments
Reconciliation of Movement in Fund
B/Fwd
Additions
Disposals
Profit /(Loss) on Disposals
Unrealised Gains/(Losses)
Cash Movements
C/Fwd|2022
Total
2021
Total
£
£
846,465
828,281
1,059,756
1,347,296
116,170
89,281
844,673
814,728
73,936
69,849| |---|---| ||2,941,000
3,149,435| ||2022
£
3,149,435
628,659
(761,806)
130,582
(209,957)
4,087
2,941,000| The investments are managed by Rathbones Investment Management Ltd in accordance with an investment policy established by the School as trustee. Notes 17 and 18 show the funds to which these investments relate. ## 12. STOCKS |12. STOCKS||||| |---|---|---|---|---| ||Group||Charity|| ||2022|2021|2022|2021| ||£|£|£|£| |Goods for resale|116,812|92,403|25,648|16,211| The replacement cost of stocks is not considered to be materially different from their historical costs. ## 13. DEBTORS |Debtors in respect of school fee account
Amounts owed by subsidiary undertaking
Other debtors
Prepayments and accrued income|Group
Charity
2022
2021
2022
2021
£
£
£
£
292,376
225,381
292,376
225,381
0
0
470,618
40,010
5,866,783
5,885,266
5,824,551
5,854,932
616,485
423,904
606,132
416,778
6,775,644
6,534,551
7,193,677
6,537,101| |---|---| Other Debtors 2022 includes proceeds of land sale for which contracts have been exchanged but funds are not due until completion. 33 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 ## 14. CREDITORS: amounts falling due within one year |14. CREDITORS: amounts falling due within one year|| |---|---| |School fees paid on account
Composition fees (see note 10)
Trade creditors
Amounts owed to subsidiary undertaking
Other creditors
Taxation & social security
Finance lease obligations
Accruals and deferred income|Group
Charity
2022
2021
2022
2021
£
£
£
£
3,094,957
2,942,092
3,094,957
2,942,092
183,320
386,727
183,320
386,727
1,103,011
814,289
1,090,463
795,973
0
0
20,280
2,853
595,885
759,964
534,920
640,982
310,438
280,150
283,231
257,177
0
533
0
0
1,547,111
1,721,218
1,458,594
1,632,697| ||6,834,722
6,904,973
6,665,765
6,658,501| ## 15. CREDITORS: amounts falling due after more than one year |15. CREDITORS: amounts falling due after more than one year|| |---|---| |Composition fees due 2 - 5 years (see note 10)
Composition fees due more than 5 years (see note 10)
Deferred Income due 2 - 5 years
Deferred Income more than 5 years
Finance lease obligations due 2 - 5 years
Finance lease obligations more than 5 years
Pension Scheme Deficit 2 - 5 years (see note 21)
Pension Scheme Deficit more than 5 years (see note 21)|Group
Charity
2022
2021
2022
2021
£
£
£
£
103,264
323,518
103,264
323,518
0
0
0
0
30,664
30,664
30,664
30,664
91,991
99,657
91,991
99,657
0
0
0
0
0
0
0
0
494
14,404
494
14,404
0
0
0
0| ||226,413
468,243
226,413
468,243| The Deferred Income relates to a lease granted over land and is amortised over the life of the lease. ## 16. MOVEMENT IN TOTAL DEFERRED INCOME |16. MOVEMENT IN TOTAL DEFERRED INCOME|| |---|---| |As at 1st August
New Deferred Income
Released to SOFA
As at 31st July|Group
Charity
2022
2021
2022
2021
£
£
£
£
236,705
237,222
164,147
145,675
108,470
98,718
117,167
26,160
(30,190)
(99,235)
(33,826)
(7,688)| ||314,985
236,705
247,488
164,147| 34 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 ## 17. FUNDS |Unrestricted Funds
Assyrian Fund
Canford Partnership Fund
Designated Property Fund
General Fund
Total Unrestricted School Funds
Restricted Funds
Composition Fees Fund
Scholarship Bursary and Prize Fund
Total Restricted School Funds
Total Charity Funds
Subsidiary Reserves|1 August
2020
Income
Expenditure
Gain\(Loss) on
Investment
Assets
Transfer
Between
Funds
1 August
2021
Income
Expenditure
Gain\(Loss)
on
Investment
Assets
Transfer
Between
Funds
31 July
2022
£
£
£
£
£
£
£
£
£
£
£
5,749,803
97,637
(26,419)
1,011,270
0
6,832,291
132,515
(48,481)
(257,298)
0
6,659,027
213,225
3,559
(977)
36,886
0
252,693
4,916
23,941
(9,280)
0
272,270
25,066,311
0
0
0
6,555,663
31,621,974
0
0
0
1,354,121
32,976,095| |---|---| ||31,029,339
101,196
(27,396)
1,048,156
6,555,663
38,706,958
137,431
(24,540)
(266,578)
1,354,121
39,907,392
10,181,451
25,966,710
(19,092,333)
(6,555,663)
10,500,165
22,375,050
(20,314,165)
(1,354,121) 11,206,929| ||41,210,790
26,067,906
(19,119,729)
1,048,156
0
49,207,123
22,512,481
(20,338,705)
(266,578)
0
51,114,321
134,691
89,989
(96,325)
124,048
0
252,403
16,957
(9,999)
(20,504)
0
238,857
2,726,683
183,596
(253,127)
515,995
0
3,173,147
259,175
(301,012)
(79,375)
(10,261)
3,041,674| ||2,861,374
273,585
(349,452)
640,043
0
3,425,550
276,132
(311,011)
(99,879)
(10,261)
3,280,531
44,072,164
26,341,491
(19,469,181)
1,688,199
0
52,632,673
22,788,613
(20,649,716)
(366,457)
(10,261) 54,394,852
10,723
489,292
(491,550)
0
0
8,465
1,378,958
(1,378,958)
0
0
8,465| ||44,082,887
26,830,783
(19,960,731)
1,688,199
0
52,641,138
24,167,571
(22,028,674)
(366,457)
(10,261) 54,403,317| The total of the Income and Expenditure in each year above matches the Net Income before transfers and investments gains/(losses) on the SOFA. The cost of scholarships in the year from the Assyrian Fund and the Scholarship, Bursary and Prize Funds are included within the total for "scholarships, bursaries, grants and allowances" in note 2. ## Purpose of funds Unrestricted Funds Assyrian Fund This is designated for annual scholarship and bursary awards to pupils. Canford Partnership Fund This is designated for work carried out by pupils on trips to orphanages in countries such as Argentina, Ghana and India. Designated Property Fund This is designated to match the value of the investment made over the years in the fabric of School buildings. General Fund General reserves are available to the group. Governors monitor this fund on a regular basis, considering the working capital management of the School and the desire to continually improve facilities. Restricted Funds Composition Fees Fund This is restricted to the advance payment of fees, and represents funds received in respect of school fees for current and future pupils. This scheme was close to new entrants in October 2020. Scholarship Bursary and Prize Fund This is restricted to terms set out by donors for the provision of scholarships, bursaries, prizes and activities. ## Transfers between funds £1,354,121 was transferred to the designated property fund from the general fund to match the movement in net book value of freehold land and buildings. 35 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 ## 18. ALLOCATION OF NET ASSETS TO FUNDS |Unrestricted General Fund
Unrestricted School Funds
Assyrian Fund
Canford Partnership Fund
Designated Property Fund
Restricted Funds
Composition Fees Fund
Scholarship Bursary and Prize Fund|Fixed
assets
Investments
Other net
assets/
(liabilities)
Long term
liabilities
2022
Total
Fixed
assets
Investments
Other net
assets/
(liabilities)
Long term
liabilities
2021
Total
£
£
£
£
£
6,652,732
8,750
4,677,061
(123,149)
11,215,394
4,777,325
8,750
5,867,279
(144,725)
10,508,629| |---|---| ||0
6,659,027
0
0
6,659,027
0
6,812,291
20,000
0
6,832,291
0
272,270
0
0
272,270
0
252,693
0
0
252,693
32,976,095
0
0
0
32,976,095
31,621,974
0
0
0
31,621,974| ||32,976,095
6,931,297
0
0
39,907,392
31,621,974
7,064,984
20,000
0
38,706,958
0
525,472
(183,351)
(103,264)
238,857
0
962,148
(386,227)
(323,518)
252,403
0
2,941,000
100,674
0
3,041,674
0
3,149,435
23,712
0
3,173,147| ||0
3,466,472
(82,677)
(103,264)
3,280,531
0
4,111,583
(362,515)
(323,518)
3,425,550| ||39,628,827
10,406,519
4,594,384
(226,413)
54,403,317
36,399,299
11,185,317
5,524,764
(468,243)
52,641,137| ## 19. OPERATING LEASE COMMITMENTS At 31 July 2022 the company's future minimum operating lease payments are as follows: |Within one year
Between 1 and 5 years|Group
Charity
2022
2021
2022
2021
£
£
£
£
75,886
71,471
70,833
67,234
55,804
85,707
51,422
74,182| |---|---| At 31 July 2022 the company's future minimum operating lease income is as follows: |Within one year
Between 1 and 5 years
Over 5 years|Group
Charity
2022
2021
2022
2021
£
£
£
£
7,666
7,666
7,666
7,666
38,330
38,330
38,330
38,330
90,076
107,323
90,076
107,323| |---|---| ## 20. CAPITAL COMMITMENTS Capital expenditure authorised and contracted for at the balance sheet date amounted to £1,178,054 (2021: £4,710,796). ## 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 Personal Pension Plan. Staff who do not elect to join one of two schemes offered are swept up into the Scottish Widows scheme under auto-enrolment rules. There are a small number of Support Staff who are active members of a legacy pension scheme, which is no longer offered to new members; The Pensions Trust Growth Plan. The School is also responsible for paying a share of the pension costs for employees of the Allied School Agency Limited which provides company secretarial and other services to the School. The figures shown below include this liability. 36 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 ## Teachers Pensions The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £1,147,800 (2020: £1,144,500). The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%. The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions. On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable. The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following a public consultation, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations. The 2016 cost control valuations have since been completed in January 2022, and the results indicated that there would be no changes to benefits or member contributions required. The results of the cost cap valuation are not used to set the employer contribution rate, and HM Treasury has confirmed that any changes to the employer contribution rate resulting from the 2020 valuations will take effect in April 2024. Until the 2020 valuation is completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly, no provision for any additional past benefit pension costs is included in these financial statements. ## The Pensions Trust Growth Plan To fulfil the School's responsibility to the Allied Schools Agency Limited the company participates in this scheme, a multi-employer scheme which provides benefits to some 638 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme. The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK. 37 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme. A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows: From 1 April 2022 to 31 January 2025: £3,312,000 per annum (payable monthly) Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies. Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows: From 1 April 2019 to 30 September 2025: £11,243,000 per annum (payable monthly and increasing by 3% each year on 1[st] April) Company Deficit Contributions: From 1 April 2016 to 30 September 2028: £3,591 per annum (payable monthly). The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities. Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost. |PRESENT VALUES OF PROVISION
Present value of provision
RECONCILIATION OF OPENING AND CLOSING PROVISIONS
Deficit contribution paid
Remeasurements - impact of any change in assumptions
Provision at end of period
Remeasurements - amendments to the contribution schedule
Provision at start of period
Unwinding of the discount factor (interest expense)|31-Jul-22 31-Jul-21
(£000s)
(£000s)
4
20| |---|---| ||Period
Ending
Period
Ending
31-Jul-22 31-Jul-21
(£000s)
(£000s)
20
25
0
0
(4)
(5)
(0)
0
(12)
0| ||4
20| 38 CANFORD SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2022 |INCOME AND EXPENDITURE IMPACT|Period|Period| |---|---|---| ||Ending|Ending| ||31-Jul-22|31-Jul-21| ||(£000s)|(£000s)| |Interest expense|0|0| |Remeasurements - impact of any change in assumptions|(0)|0| |Remeasurements - amendments to the contribution schedule|(12)|0| |Contributions paid in respect of future service*|0|0| |Costs recognised in income and expenditure account|(12)|0| |*includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to||| |defined benefit schemes which are treated as defined contribution schemes.||| |ASSUMPTIONS|31-Jul-22|31-Jul-21| |---|---|---| ||% per|% per| ||annum|annum| |Rate of discount|3.15|0.57| The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions. The following schedule details the deficit contributions agreed between the company and the scheme at each year end period: |DEFICIT CONTRIBUTIONS SCHEDULE||| |---|---|---| |Year ending|31-Jul-22|31-Jul-21| ||(£000s)|(£000s)| |Year 1|2|6| |Year 2|2|6| |Year 3|1|6| |Year 4|0|3| |Year 5|0|0| The company must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises. It is these contributions that have been used to derive the company's balance sheet liability. ## 22. ANALYSIS OF CHANGES IN NET DEBT |Cash
Composition fees
Finance lease obligation|1 August
2021
Cashflows
New
Finance
Leases
Fair Value
Movements
Foreign
Exchange
Movements
Other Non
Cash
Movements
31 July
2022
5,802,783
(1,266,133)
0
0
0
0
4,536,650
(710,244)
430,862
0
0
0
(7,202)
(286,584)
(533)
533
0
0
0
0
0| |---|---| ||5,092,006
(834,738)
0
0
0
(7,202)
4,250,066| 39