CHRIST'S HOSPITAL FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2021 CHARITY NUMBER 306975
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 CONTENTS Page Report of the Trustee 2-16 Auditor's Report 17-19 statement of Financial Activities 20 Balance Sheet 21 Terminology 22 Notes to the Financial Stslements 2343 THE MISSION OF CHRIST'8 HOSPITAL It l¥ and shall b• th• ml•8lon of Chrlst'• Hosplt•l.. lo offer lo boys and girls of ¥uitable age an education ol such breadth and excellence as will fil them PTe-8minenlly lor work and service In society in their generation., and in particular to enable them 1¢ compete cornpelently with their peors for opportunities in further education and ¢areefS. In so doing, to develop first the skills, leaming habits, independence of mind and spiritual awareness that will enable and motivate them to continue lo Educate themselves throughout their lives.. and second. a high sense of Tesponsibility towards themselves, their families, their associates and la sociely al lar9e, such as lo form a permanent foundation of Ihwr training and character., in the choice of pupils, lo have regard especially lo children of families in social, finan¢ial or other specilic need", to provide our pupils with opporbjnilies to explore, reflect upon and grow in their understanding of the Christian faith, and to maintain and further the dose Connection wth the City of London so successfully nurtured since 1552.
CHRIST'S HOSPITAL FOUNDAnoN YEAR ENDED 31 AUGUST 2021 REPORT OF THE TRUSTEE KEY INFORMATION Y••r 8ndgd 31 August 2021 Year ended 31 August 2020 Financial Rasullo Investment income Investment gains Total return (net of fees and inleresll £8.Om £70.3m £8.7m £9.8m 18.9% 4.7% Fundraising Income £8.4m £2.4m Closing value of Endowment Fund5 £444.Om £381.4m Closing value of Total Funds £499.gm £432,9m
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUQUST 2021 REPORT OF THE TRUSTEE The Council of Christ's Hospital Icouncill, the corwrate Trustee body of Christ's Hospital Foundation (the Foundation), presents ils Report and audited Financial Statements for the year ended 31 August 2021. These comply with the governing docLsments of the Foundabon, the Charits"es Act 2011 and Aecounting and Reporting by Charities.. Slalemenl ol ReccKnmended Praelice applicable to charitie5 preparing their accounts in accordance with the Financial Reporting standard applicable in the UK and Republic of Ireland {FRS 1021. Christ's Hospital was originally pslablished by King Edward Vl by a Royal Charter dated 1553 and the Foundation is privileged lo enjoy the patronage of Her Majesty the Queen. The Foundation now operates as a charitsble trust under a Scheme approved by the Charrty Commission in August 2017 and is registered under charity number 306975. In accordance with this new Scheme, the Council of Almoners resigned as the corporate trustee of the Foundation on 1 September 2017 and was reFAaced as corporate Iruslee on that date by Chrisfs H05pilal Ifofmerly Christ's H05pilal School). For the year endèd 31 August 2021, consolidated financial statements for the Christ's Hospital group are prepared lor Christ's Hospital (company number 06232556 and charity number 11200901 and charity only financial statements for Christ'5 Hospital Foundation. CHARITABLE OBJECTS The principal objects of Christ's Hospital Foundation as $el out in the 2017 Scheme are the advancement of edu¢81ion of children, principally lor the benefit of those whose families are in 50e131. flnancial or other specific need, the undertaking of ancillary educalional and associated activities for the benefit of the community and lo provide support lor Christ's Hospitsl. TERMINOLOGY To assist in understanding the Report and Financial Statements, a brief explanation of some of the larms that are used is shown on page 22.
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 REPORT OF THE TRUSTEE STRATEGIC REPORT 08JECTIVES, ACHIEVEMENTS AND PERFORMANCE FOR 2020121 The objectives established for the year for Christ's Hospital, which were supported by Christ's Hospital Foundation, and ils achievements against these are sel out below". To conslder the Impact on long tem? returns followlng COVID-19 alongslde a revlew of the su6talnablllty of th• current 8pendlng rulè. The Investment Committee, supported by Christ's Hospital's Investment Fnanagers, cumpleled review in the year which conclurled that the Spending rule was sustainable followlng the approval Df certain action5 which were expected lo improve long term relums. A further review will be undertaken in 2021-22 given recent inflationary pressur88. To support the School's futurè plan• •s set out below: Adapt the School across all areas to face the ongolng challenges of COVID-19 and provldo a safe and wglcoming environmgnt lor the pupils on their return. Deliver a "recovery Currlculum" whlch focu¥e¥ on pupll wollbelng whlle •llowing for consolidation of the remote learning delivorod over thè lockdown period. Implement thè first phaBe of the ICT Jtrategy, which Involve5 the purch4se of new tsblet dèvices lor teachlng staff to facilitate 'blended teachlng" and the pllot use of School-purchased dovlc by ye•r 11 pupil$. Flnalhe the "Shapo of thè Day" Initlatlve for roll-out in Mlchaelmas term 2021, wlth a series of pilots In the Interim poriod to allow for further refinement. Develop and imploment Inltiative8 on equality, diverslty and Incluslon in the School, and at a govemancg level, to provide a strong foundation for Chrl8t' Hospltal's $tance on anti4aclsm. Successfully complete the Brlght Futures campalgn by exceeding the taigetgd fundraising. The annual grant aw8rded by Ihe Foundation lo the School in the financial year enabled the Schoel lo deliver on 118 objectives. Of partlcu18r note weie.. the establishment of an Equity. Diversity and Inclusion IEDII Committee to ensure that there is an appropriate level of focus and atlents'on lo these crttical i55ues al governance level. the completion ol th& Bright Fulur88 campalgn th £1.6 million raised for bur8arles versus the ryiginal £1.5 million largel. The Trustees, Report thIn the Chri$l's Hoypilal consDlidaled accounts lor the year ended 31 Augugl 2021 provide8 further information on the School's progre55 against 11$ ot¥'eclives.
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 REPORT OF THE TRUSTEE FUTURE PLANS Objectives for the coming year.. To consider the impact on long term inflats.on followng the pandemic alongside a review of the Sustainability of the current Spending njle. To undertake a review of the Foundatson's responsible investment pollcy lo ensure it is appropriate in the current environment. To support the School's future plans as set out below.. Complete the inlegratitsn of Ihe'shape of the Day initiative and the introduction of the new curriculurn. Develop an 'expedilionary gducalion. curriculum in preparation for launch in Michaelmas term 2022. Undertake preparatory wort( for the smooth changeover lo a new management infomiation system for the School, with an anticipated g&live in the 2022-23 academic year, Complele the next phase of the School'5 programme on Equity, Diversity and Inclusion, IhTcugh a partnership with Inclusion Labs designed lo help the senior leadership team identify and priori115e areas on which lo ftscus lo improve inclusivity at Chfist's H05Pital. Restart work on the finan¢ing and phasing of the expansion of Bluecoals Sports following receipt of planning permission in September 2021. Develop and launch a new fundraising campaign, following the 8uc¢essful completion of Bright Future5 PUBLIC BENEFIT The Charities Act 2011 requires charitses lo demonslrale that their aims are clearly for the public benefit. In considering the aims of Christ's Hospital, Council has, in accordance with the Charities Act 2011, given due regard lo the public benefit guidance Issued by the Charity Commission. Throughout ils history, Christ's Hospital has relied upon the generosity of ils benefactors. Their donations and legacies have built up the Endowment. Such that financial support is provided to around Ihree-quarters ol the pupils, thereby making available a high standard of education to children from Iow-income families or those whc), because of diffieull home circumstsnc8s, would rnosl benefit from the stability of a kK)arding environment. Children applying tD Christ's Hospital are assessed for their academic potential, their ability to benefit from the opportunibe3 Ihal are made available. their level of need and their suilabilily for a boarding education. The financial resources of families applying for financial assistance are then assessed and contributions toward the cost of their education are sel in accordance wlh a graduated scale. This ensures that access lo the benefits of an education al Christ's Hospital is available lo suitable children irrespective of the financial circumstance5 of their familK9S. Christ's Hospital continues lo attract applicants through a programme of publicity Including regular contact with the head teachers of primary schools, particularly those in deprived areas. Levels of interest remain high. with around five applicants for every bursary place available at the School during the year.
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 REPORT OF THE TRUSTEE From the total of 896 pupils in the School al the beginning of the year. 695178%) received fi'nancial support towards the costs of their education with 101 111 %) of these pupi15 being entirely lunded by the Foundation. These figures also include staff discounts which were received by the families of 28 pupils13°1. COVID-19 continues lo have a significant impact on the household income of the families of many of our pupils. With the sile being closed to mo$1 pupils for the majority of the Lent term, families were balancing a number of challenges including remote learning, access lo IT and the addlllonal expense of a child being al home. To respond to these issues, Christ's Hospital continued lo sel aside funds for those families experiencing significant hardship due lo the virus. In addition to reducing the Lent lemi fees by 40V• for all boarding pupils and 15Vo lor day pupils for the perDd of closure, hardship funds continued lo be made available to those families most affected. We are grateful for donations received during this lime from parents and from other bodies. These we allocated via increased bursaries or fee debt w8iver, support towards IT for remote leaming and supemiarkel vouehers lin lieu of school meals) for pupils on full bursaries. Christ's Hospital regularly opens up 11$ $e to local organisations including schools, sports clubs and choirs. A programme of special events for primary schools in particular enables us 10 Share our facilities and expertise with the local community and the School hosts a number of regional sports event5 each year. Clearly this programme has been impacted due lo COVID-19 but we continue lo maintain these relalponships with a view to restarting our activities as soon as conditions allow. Christ's Hospital 15 proud lo have supported the COVID-19 vaccination programme, with the hiring of the gymnasium 5POrt hall al Bluecoal Sports lo the NHS as vaccination hub throughout 2021. For more Information about the work of Christ's Hospital Foundats'on and School, please rèad the Impact Report 2020Q1 or visit the website al ww.christs-hospital,org.uk. FINANCIAL REVIEW AND RESULTS FOR THE YEAR ENDED 31 AUGUST 2021 Income and expendlturn The delai15 of income and expenditure are shown in the Statement of Financial Activities on page 20. Financial results include a very strong investment and fundraising pèrformance in the year. Further Snfonnatlon relating lo Ihosg areas Is 591 out bel¢)w and on page 7 respeth'vely. This was a very unusual year. The high level of fundraising incorne wa8 principally due to very large legacies and investment warkels continue to be volatile with much of Ihe perforrnance in the current year refigcting a rebound from the falls experienced al the start of the pandemic. Wllh the extensive boar(ling house rofurbishment programme commencing within the next len years, il will be essential lo build on the strong investment performance in 202012110 sel aside funds for thi3 subslanlial project.
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 REPORT OF THE TRUSTEE Investment performance The total return on the Foundation's investments was £78.3 million12020' £18.5 million) vthich was made up of dividend, interest and rental income of £8.0 million 12020. £8.7 million) and investment gains of £70.3 million12020'. £9.8 million). 2021 2020 Total Relum Total Return Securikn"e$ and otsr sels Investment properties Including18nd Total Inve•t•¢ asset• 318.9 158,3 476.2 233% 10.0% 18.9% 258.1 157.5 41&6 5.9% 2.7% 4.7% The continued rebound in global equily rnarkels, driven by the successful roll out of vaccines in dev6loped economies combined wth continued govemmenl-backed Stlmulug. Saw the Securilios Portfolio return 23.3Yo net ol all lees in Ihis linanc181 year. This return compaffts favourably tg Ihe 17.g¢A relum ol the IA Mixed Investment 140-85Pkn share81 Index, s peer group inde¥ representing the perforrnance ol mulli-assel class portfolios similar in cornposilion to the securities portfolio. 11 also compares f8vgurably lo the largel relufn, being the return on the Relail Price Index plus 3.75%, which wos 8.6% for the period. Over th8 longer lemi, the securities portfolio has relumed 10.0% p.a. over the last liva years, as Cornpared 10 7.3% p.a. for the IA Mixed Inve81rnenl140-85% share51 Index and 6. 9% for the 13rgel return. Looking ahead, the rlsks associated wlh higher inflation, driven by supply chain dlsruplions and labour shortages, the withdrawal of COVID-Tel8led 51imulus. and ongoing gecpolilical tensions are expected lo drive volatility In global Investment markel5. However, the diversification inherent within the securities portfolio's mulli-assel class investsnent strategy shoLAd see il well- positioned to weather that uncertainty. The Christ's Hospital property portfolio return 0110%, although gignrficanlly higher than 202Q, wa8 Slightly behind the corrmgrcial benchmark return of 11.8%, This re5uII was a cornbinsllon of negative returnB frc¢n the office 8nd retail sectors, strong performance from the industrial properties and increa5è9 in the valuation of the Hertford land whlch was ¥old for development in September 2021. Fundral6lng Chri8t's Hospital undertook a range of fundraising acllvities in the year, led by Ils Development team and supported by Ihe Campaign Board. a committee of Council. Fundraising activitles included appeal mailings and the engagement of individuals and organi8alions in perst)n ¥nd through a range of digltsl channels. Income from donions and legacies of £8.4 mlllion12020.' £2.4 mlllionl exceeded the £3.1 million largel for the year. This Strong performance was due lo higher income in all areas, especially from legacies. Income from philanthropic partnerships continued lo play a Central role as did the supptyt of many individual Old 81ue5, parents and other supporter5. A total of 1,544 Old Blues and paients made a donation in the year, a 25% increase on the previous ye8r. The Bright Futures campaign, launched in September 2019, exceeded 115 £1.5 million largel with £1.6 Million raised. Particular highlight5 of the campaign included Ihe Giving Tuesday initiative in December and a rnailing and lelephone appeal in JunelJuly, which together saw over £500,000 in don81ion$ and pledges.
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 REPORT OF THE TRUSTEE Thanks are recorded lo le Donalic4) Governors who completed thgir pledges duTing the year and 353 Old Blues and other friends who have contributed lo the Blue Fund, 1¢h provides th8 full seven year cost of a place at Christ's Hospital. Christ's H05pilal is registered wth the Fundraising Regulator and adhere$ lo the Code of Fundr9i8ing Practice. As well as providing individuals with opportunitie5 to be axcluded from fundraising communications, the School has taken measures In its fundraising a¢tivilies lo protect vulnerable people. We have a published Fundraising Complaints Policy and in the year ended 31 August 2021 received no12020'. none) ccffiplainls relating lo fundraising activlty. Pon$lon Christ's Hospital Pension Scheme, a defined benefit scheme for non-leaching staff, was closed lo new members w¥lh effect from 31 March 2005. The liability lor the Scheme continues lo be account8d for in the individual charity financial st8lemenls of Chrisl'g Hospital Foundation as Chnsl's Hospital has 8ccepled the liabilllies ol the Scheme so1Y in Its role as thè Trustee of Christ's Hospital Foundation. Contributions lo this scheme are made by both employees and Christ's Hospital. Valuation of Ihts Scheme al 31 August 2021 in accordance wlh FRS 102 showed the deficit on the scheme lo be £8.3 million 12020." £10.4 milllonl. The value of the Scheme Invg$tmenls increased by a nel £2.0 million during ihe year whilst the present value of future pension liabilities was consis18nl with prior year. The main contributing factor belng the strong return on investments during the year. Follow+ng the det8il8d actuarial valuation vthith look place as al March 2020, employer conlribullon levels were revised as part of the funding plan agreed with the Scheme trustees. The (tefial reduction payments agreed during this process have the objective ol eliminating ihe scheme deflal by 31 March 2035. Further details of tho Scheme and contribution levels are shown in Note 17. Council is awafe of the volatile nature of the deficit calculated in accordanc8 th FRS 102 and that the deficit may vary gre8lly depending cn the assumptions made and market condition5 al each year end, Subsldlary Company Chilstal Hou•e Contrlcts Llmlt The company's 3.5 acre solar fami, and the solar panels al Weslons Farm, generated a total of 1,112Mwh of electricity in the year to 31 August 2021 12020.. 1,272Mwhl. Sales of electricity generated and leed-in-tariff grants earned amounted lo £172.00012020.' £173,000), POLICIES Flnanclil pollcy The Foundation's financial strategy is based on Total Return together with an accompanying Spending Rule. This enables Council and its investment managers to focus their efforts on maximising Total Relum subject lo a given level of risk and liquidity. raiher than investing for maximum income possibly at the expense of growth. The application of the Spending Rule ensures that the respective needs of the current and future generations of pupils are Irealed fairfy and equitably, while enabling Council to access capitsl gains on the inveslrnents. The Spending Rule re51ricts annual expenditure reliant on the Endowment to a maximum of 3.75% of the net value of the Endowrnenl {measured on a 1ve trailing quarter average basis).
CHRIST'S HOSPITAL FOUNDATION YEAR ENOED 31 AUGUST 2021 REPORT OF THE TRUSTEE The Spending Rule has tsyo main objeclive5' To give Christ's Hospi181 as much certainly as possible of the future level of grants that il may receive Irom the Faundalion. To maintain the value ol th8 Endowment in real terms. Reserves pollcy Council's policy is lo maintain or enhance in real lefms the value of the Endowment. Undef the Total Return policy. amounts approved by Council for the operational and capital budget requirements each year are transferred from the Unapplied Total Relum to Unreslricled Funds. Total funds held by the Foundation at 31 August 2021 were £499.9m12020'. £432.9ml. This totsl comprised £444.Om ol Endowed Funds 1202Q' £381.4ml, Restricted Funds of £2.1m 12020.. £2.3ml and Unrestricted Funds Inel of Pen3ion Reserve) of £53.em12020'. £49.2ml. Because the Foundation 15 an endowed chanly, wth a signifi'cant level of Unapplied Total Relum, the level of Free Reserves has less significance than in an unendowed charity. Council 1$ comfortable with the level of Free ReseeS which stood al £2.gm al 31 August 2021 12020., £0.9ml. The ability of the Foundation to meet the future requirement5 01 Christ's Hospital depends critically on the long-lerm investment returns achieved from the Endowment. Several designated lunds have been established for specific purp05e5. These include the Fixed Asset Capitsl Fund of £S8.4m which represents the nel book value ol fixed assets used for operational purposes. Inve8tment pollcy The endowed assets of the Foundation are Invested on 3 Total Return basis across a range of diversified asset classe5 in order lo maintsin a balance tetween spending and preserving Ihe real linflalion adjustedl value of the Endowment. Council reCniseS the long-lerm relianc of the School upon the Foundation and has accepleJ a medium level of risk. Given the porttolio's 51rategic asset allocation and Investment slralegy il is understood that potential Short temi losses are possible. Council also recognises that there are several other forms of risk beyond Short term volatility that need lo be managed. These Include liquidity, the level of exposure lo non-sterling denominated assets, Credit risk and the level ol overall leverage in the portfolio. Council has delegated the Implementation and oversight ol the Investment Policy lo the Investment Committee from 1 Seplember 2017. Day-to-day management of the securitses investments is delegated lo Partners Capital LLP and property Investments lo the Property Director. The Foundation does not knomngly invest in companies whose aclivilie5 are considered to be detrimental lo children, although it accepts that ils Inve51menl in managed funds does not necessarily exclude companies in which it would not Invest directly. GrAnt-maklng pollcy An annual giant Is made lo Christ's H05Pital, in accordance with the Spending Rule (see Financial Policy), on approval of the budget by Council. Christ's Hospital makes grant5 for the benefit of pupils on the ba%s of their parental income. The families of all pvpils receiving financial support are mean5 tesied annually and their eligibility for addilional finanoal support is judged accordingly. Smaller grants are made lo current and fomier pupi15 of Christ's Hospital based on the criteria and terms of individual endowed and reslricled funds.
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 REPORT OF THE TRUSTEE OUR PRINCIPAL RISKS AND UNCERTAINTIES The major risks to which Christ's Hospital Foundation and ils subsidiary might be exposed are reviewed by the AuLlIl and Risk Cornmillee with regular reports to Council. The Audit and Risk Committee receives reports relating lo risk management, including detailed review of specific risk areas, in order to monitor the pro85. The executive continues lo develop the required policies and lo ensure that identified risks are appropriately covered and regularly reviewed. The Compliance Officer ensures that all policies are reviewed and updated as necessary and that specific areas of compliance are adhered lo. Council considers that necessary steps have been taken and continue to be taken to identify and miligale major risks and lo ensure that appropriate systems and procedures are In place. Risk management is embedded in the committee process by which Christ'3 Hospital is managed. 11 is iecognised however that systems can provide only reasonable, but not absolute. assurance that major risks are being managed. Long-term Invg¥tment returns Christ's Hospital is highly unusual among educational eslablighments in ils heavy relian upon the Endowment for ils funding, This reliance, and the limited scope of the School for short lemi eosl-cutting, means that il is not possible lo make rapid reduction5 in the level ol grants made to the School without severely impacting the education of pupils. Council recognises that, as consequence. there is a risk that the Endowment will be depleted during a prolonged fall in investment returns and therefore be unable to recover once markets rise again which would be lo the delrimenl of future generations. Accordingly, Council has placed a cap on the amount of withdrawal that may be made and has adopted a strategy that will reduce wilhdrowals lo sustainable level. For the longer term, the allowable rate ol annual withdrawal from the Endowrnenl has been set al 3.75°/D of the nel value of the Endowment, as Sel out in the Financial Policy above. Investment5 are managed in order to maximise the Total Retum, including both income and Capital appCiall0n. Funds are invested across a broad range of a5sel classe5 which Council believes provides the diversification necessary lo reduce volalilily to acceptable levels, as sel out in the Investment Policy above. Flnanclal •u$tilnabillty A financial plan covering the five year period from 1 September 2017 wa5 approved in June 2017, Key elernenls of the plan indude rnanaging income, operational c051s and capilal expenditure (including the new catering facility) 50 that, over the period ol the plan, the cumulative withdrawal from the Endowment Is within the Spending Rule. Updates lo that plan are prepared and regularty reported lo Council and appropriate committees and reflect both extemal and Inlemal factors. Extemal factors that are considered include the impact of subslanlial political change, including govemmenl leaders and government policy. Christ's Hospital is currently developing Ils next five year plan wlh the aim of that being launched al the 8tart of the Michaelmas temi 2022. Factors remain that may have an impact on the ¢harity, in common wlh other businesses, over a number of years. Those factors include the ongoing pandemic and rising inflation. Whilst the impact 15 unknown. Council ha5 reviewed the position carefully with a view lo ensuring the ongoing provision of (he grant lo the School for schooling for the pupils, support of bursaries as well as employment of slalf. A significant portion of the securib.es portfolio is in liquid investments whose drawdown is managed carefully lo meet day lo day operational requirements. These are available, if needed, 10 5upplemenl the significant cash balances that the charity currently holds. -io-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 REPORT OF THE TRUSTEE Conservative cash flow modelling with sensitivity analysis indicates that the cash reseNes of the charity are adequate lo meet the charity s obligations as they fall due. Accordingly, Council believes the Foundation's financial resources are suflicienl to ensure the charity will contsnue as a going concern for the foreseeable future, being al least 12 months from the dale of approval of the finanaal statements and have therefore prepared the tinancial slalemenls on a going concern basis. Having Tegard lo the above, Council believes it appropriate to adopt the going concern basis of accounts'ng in preparing the financial statement5. Penslon 8ch•mg Council keep5 under review the financial implications of the deficit in the Christ's Hospitsl Pension Scheme. The shortfall Dn the closed scheme requires a substantial, but affordable, annual payment. Management has a dear strategy lo eliminate the deficit and will continue lo work closely with the Scheme Iruslees and actuarial advisefs to monitor the financial perfomance of the Scheme. STRUCTURE, GOVERNANCE AND MANAGeMENT Th• Coun¢ll of Chrl•t's Ho•pltal Members of the Board of Directors of the Trustee, known from 1 September 2017 as 'The Councll ol Christ's Hospital, (Council) are lisled on page 14. There are fifteen members of Council. The Court of Govemors Isee below) may nominate up lo four members, the Lord Mayor and Aldermen of the City of London may nominate up to four members and up lo a fvrther nine members may be co-opted by Council. Council is responsible for the overall management and control of the charity, including the tormulalicjn and approval of 51rategy and lor monitoring performance In pursuit of that strategy. Council ensures that the Investment and operational assets of the Foundation are properly managed and also works to build the Endowment through fundraising. Council is also respons1ble for the formulation, approval and monitoring of policy and long term planning of Christ's Hospitsl. ensuring that the assets of Christ's Hospital are properly managed. approving expenditure priorities. raising funds by means of trading, controlling spending and ensuring that the processes for the admission and dischaTge of pupils are appropriate lo ils ethos, The Treasurer is the Chair of Council. The Memorandum and Articles ol Association for Chrisfs Hospital, the Charity Commission Scheme dated 29 August 2017 for the Foundation and linked charits'es, and the Council Temis of Reference regulate the conduct of business ol Council. Council lakes ils govemance respon5ibililies seriously and, as a large charity. aims to have 8 governance framework that is fil for purpose, cornplianl and efficient. The Audit and Risk Committee has revieweé governance structures and processes against the Charity Governance Code and Is satisfied that Council is operating in line with recommended and best practice. The review had identified some areas for impTovement which are currenlty under consideration. Manag8mgnt and committee• Council carries out its responsibilities through a number of committees and from lime to lime may appoint tefflporary working parties lo examine and make recommendations on specific matters. The Chair of each Committee is appointed by Couneil. The Committees relevant to the Foundation -li-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 REPORT OF THE TRUSTEE the Audit and Risk Committee, which oversees the provision of accounting and inlemal control systems, including system5 to ensure the effective management of business risk.. the Campaign Board, which provides guidance on the vision and strategic pnorities for the Campaign for Christ's H05Pital and monitoring ongoing fundraising activities., the Equity. Dlversity and Inclusion Committee, e5tsblished in October 2020, which ensures that Christ's Hospital is able lo demonslrale and deliver on the commitment implicit in its mission lo challenge inequality., the Finance and General Purpose8 Comrnlttee, whieh is responsible for financial management, supervises and rnonilors capital projects and the management of the estate and health and safety mallers., the H8rltage Commlttee, which advlses on and implements strategy and poli¢y in relation lo the heritage of Christ's Hospital., the Investment Commltteo, whi¢h 1$ responsible for investment policy, risk parameters and Strategy relating lo the investments of Chri51'5 Hospital, and the NomlnJtlon8 and Remunoratlon Commlttee, which makes recommendations on the appointment of Council Members, on the composition and membership of committees and pay and conditions for senior management. Key manag¢ment personnel l58nlor Leader•hlp Toaml Council delegates day-lo-day running of the Foundation to the Head Teacher a5 the Chief Executive, assisted by other members ol the Senior Leadership Team las shown on page 151. All members of the Senior Leadership Team are remunerated by Chnst's Hospital. Remuneration for key management personnel is sel by Council, with the objective of providing appropriate incentives lo encourage high levels of performance, recruit snd retain expenenced staff and of Tewarding fairly and responsibly individual contributions lo Christ's Hospital's suc¢e5S. Inductlon and tralnlng of Counc51 Member• When Council Members are appointed they are required lo attend a briefing on the governance structure of Christ's Hospital and receive an outline of their responsibilities in compliance with the Charity Commission's publication CC3, The Essential Trustee They are briefed on the organisalional structure and the key issues facing Christ's Hospital. They are issued with a 'Trustees' Pack" which includes a copy of the Scheme, the Memorandum and Arb'cles 01 Association of Christ's Hospital, School Prospectus, the Annual Financial Statements and Impact Report, recent Committee minutes and CC3. Arrangernenls are made lor them lo allend appropriate training courses and further training and development 15 offered individually or lo Council as a whole as requSred. This includes annual child protection training. The Court of Governorn The Court of Governors Ilhe Courtl is an historic body composed Df the President and Vice President, 36 nominated represenlatsves of the City of Lontlon, a maximum of len Special Vole Governors and an unlimited number of Donation Governors who are elected lo the Court in recognition of the 5UPPOrt they have given lo Christ's Hospitsl. Donation Governors e&h have the right lo present for admission a candidate whose needs accord with the ethos of Christ'5 Hospital. Dunng the year one Donation Governor renewed their presentation rights and ten new Donation Governors were elected. Al the end of the year there were 520 Donation Governors. The Court also elects the President and nominates, through an election. up lo four rnembeTS of Council. -12-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 REPORT OF THE TRUSTEE Voluntsern Volunteer5 play an essential role In the operations of the Foundation. In addition lo those who serve on Council and committees, development volunteers and appeal leaders help wlh fundraising and cultural events during the year. In addition volunteers help with operatsng and developing the museum. CounGil takes this oppgrtunity lo express its appreciation lor this valuable supporL Group Structure and Relatlonships Chrlstal Hou•• Contracts Llmlted (company number 042852591 is wholty owned by Christ's Hospital Foundation. The principal current activity of the company is to operate a solar farm on lané owned by the Foundation. Christ's Hospital Foundation ha5 not prepared consolidated accounts includlng Christal House Contracts Limited on the grounds that Il is included in the larger group headed by Chri51's Hospital fof which consDlidaled accounts are prepared for the yeaT enéed 31 Augu512021. STATEMENT OF COUNCIL'S RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS Council is responsible for preparing the Report of the Trustee and the financial statements in accordance with applicable law and regulatr'ons. Charity law requires Counal prepare financial slalemenls for each financial year in a¢¢ordance with United Kingdorn Generally Accepted Accounting Pfactice (United Kingdom Aceounling sndards) and applicable law. Under Charity law Council musl not appfove the financial stslemenls unless it is satisfied that they give a true and fair view of the Stale of affairs of the Foundation and of Its nel incorning or outgoing resol1r8 fnr that period. In Preparing these financial $18temen15, Council are required lo.. select suitablo accounting policies and then apply them con5iStenlly', make judgemen15 and estimates that are reason8ble and prudent., state whether applicable accounting standards have been followed, Subject lo any material departures disclosed and explained in the financial statements., and prepare the financial stslements on the going concem basis unless It Is inappropriate lo presume that the Foundation will continue to operate. Council are sponsible for ensuring that the Foundation keeps proper accounting records that are sufficient lo show and explain the Foundation's transacts'on5 and disclose with reasonable accuracy at any lime the financial p051tion of the Foundabon and lo enable Council lo ensure that the financial statements comply with the Charities Act 2Q11, the Charities (Accoun15 and Reports) Regulations 2015 and the provisions of the Foundation's governing documents. Council are also responsible for safeguarding the assets of the Foundation and hence for taking reasonable steps lor the prevention and delects.on of fraud and other irregularities. AUDITOR Crowe U.K. LLP has expressed its willingness lo Continue as auditor for the next financial year. -13-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 REPORT OF THE TRUSTEE REFERENCE AND ADMINISTRATIVE INFORMATION Structure, Governancg and Management Patron Her Majesty the Queen Prosldent l.R.H. The Duke of Gloucester, KG. GCVO Vlce Presldent {ex offl¢lol The Rt. Hon. The Lord Mayor of the City of London The Councll of Chrlst's Ho8pltal The Board of Directors of the Trustee, known as the Council of Chrisl's Hospital, Gerved in office during the year or subsequently are detailed below. Constitu•ncy/ Commltt•• Membershlp (c) 2,4,6 Christopher Steane, MA, LLB, Treasurer and Chair Nick Atkinson. MA, FCCA Nick Bensled-smith, Bsc, JP, CC Jan de Walden. HND, Mlnslm Ito 31 August 20211 Judy Evans, MA. MBBS, FRCSIEdl Plast Marianne Fredericks Diana Gamham BA. MA, LLD, DSC Thomas Garnier, 8Sc Prem Goyal Robert Judson, FRAeS, FCMI, MIOD, RAFIReldl Neil Maidrnenl, MA, FCII (from 1 October 20211 Miriam McKay, BA James Maclean, BSclHonsl Robert Muir, LLB Ilo 31 August 20211 Pamela Roberts. FRSA, FRHislS, JP Ifrorn 1 October 2021) Delva Palman, FRICS, ACIArb, FRSA Ilo 31 August 20211 Jenny Williams, BSclHonsl, PGCE (from 1 October 20211 John Yeomans, , FIET, CEng Ib) (aj (e) fb) (c) (c) (bj ICJ (a) fc) fa) 4,5,7,8 (CJ (c) (aj fc) Constltuoncies by whlch Members are nominatsd (aj The Court of Gov8mors (bj The CoJp0ratn of London {cJ Co-op18d Commltte• Membershlp l Fin8nc8 8nd G8ner81 Purposes Committee 2 Nominations and Remuneration Committee 3 Educalion Committee 4 Inveslmenl Committee 5 Audit and Risk Committee 6 Campaign Board 7 H&ritage Committee 8 Equity, Diversity and IncluSn Commrftee -14-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 REPORT OF THE TRUSTEE KEY MANAGEMENT PERSONNEL ISENIOR LEADERSHIP TEAMI The key management personnel of the charity during the year or subsequently are.. Simon Re, BA Nick Tesseyman, BA Ruth Brading, BA, MA, PhD Luk8 Walters, BA, MA Marcus Medley, PhD, Msci Andrew Wines, Pho. MA Sean O'Boyle, BSC, ARCS Simon Youn9, MSC, MEd Deborah Stamp, BEd Head Teacher Chief Operating Officer and Clerk Deputy Head Deputy Head Ass15tanl Head, Academic Assistant Head, Admissions Assistant Head, Co<uTricular Assistant Head Pastoral Desi9naled Safeguarding Lead -15-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 REPORT OF THE TRUSTEE The address of the Foundabtsn's principal office and parbculars of its professional advisers a as follows". PncIPal Offlco The Counting House Christ's Hospital Horsharn Wesl Sussex RH13 DYP Trea•ury Managers CCLA Inve51menl Management Ltd Senator House 85 Queen Victoria Strèet London EC4V 4ET Prop•rty Advisèr Gerald Eve LLP 72 Welbeck Street London W1GQAY Banker Barclays Bank plc 2 Carfax Horsham West Sussex RH12 1DN Investment Advl8•r Property Valuar Cu5hman and Wakefield LLP 43145 Portman Square London W1A 38G Partner5 Capital LLP 5 Young Street London W8 5EH Land Agont Savills IUKI Limited Exchange House Pelworth GU28 OBF Soll¢ltorn Forslers LLP 31 Hill Street London W1J 5LS Audltor Crowe U.K. LLP 55 Ludgale Hill London EC4M 7JW Mills and Reeve LLP Botani¢ House 100 Hills Road Cambndge CB2 1PH Pen8lon Schemo Advl•er and Adminlstrator Broadstone Ltd Canard Court 23-25 Sl George'5 Road 8ristol 8S1 SUU Approved by the Council of Christ'5 Hospital on 2 December 2021 and signed on its behalf by.. Chrtstopher Steane Treasurer and Chair of the C 2 December 2021 uncil of Christ's Hospital -16-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2020 AUDITOR'S REPORT Indepgndont Audltorfs Report to the Trustee of Chrlst's Hospltal Foundatlon Opinion We have audited the financial slatemenis of Christ's Hosprtal Foundati I'the charrtl} for the year 31 August 2021 which comprise the Staternenl Of Financial Activities. Balances Sheet and nol8s lo the financial slalements, including significant accounting policies. The financial reports.ng framework that has been applied in their preparation is appllcable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard 8pklicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Praclicel. In tsjr opinion the Ilnancial slalements. give a true and fair view of the state of lh• charity's affairs as at 31 August 2021 and of Its Income and expenditure, lor the year then ended,. have been properly prepared in accordance wlh United Kingdom Generalty Accepted Accounting Practice", and have been wepared in accordance with the requirements of the Charlts'es Act 2011. Bas18 lor oplnlon Wo conducted our 8udil in accordance wlh Intemational Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under thos8 Standards are further described in Ihe Auditor's responsibilities for the audit of Ihe finanrAal 81alements Section of our report. We are independent of the charity In 8ccordance wlth the elhieal requlrements Ihal are relevanl lo our audit of the financigl 81alemenls in the UK. including the FRC'S Ethical Standard, and we have lulfilled our other ethical responsibilities in accordance wlh these requirements. We believe that tho audit evidence we have obtained is sufficient and appropM81e lo provide a basis lui uui vpiiiioi). Conclu8lon¥ r•lotlng to golng conc•rn In auditing the finanaal 31alemenls, we have concluded that tho Trustee's use ollhe going concèm basis of a¢counts'ng in the preparation of the financial 8lalemen15 15 apprcpriale. Based on the work we have performed, we have nol Idenlibed any rnalerial uncertalnlles relatlng lo events or conditions that, Indivldually or collectively, may c8¥t slgnificanl doubl on the charity's ability lo continue as 3 going concern for 8 perfod of al lea81 twelve months from when the financial statements are aulhorised for issue. Our re5ponsibililies and the responsibiliti?$ of the Trugtee with respect lo going concem are described in the relevant sections ol thi$ report, Other Informatlon The Trustee is responsible for the other infomialion contained within the annual report. The other inlorTnalion comprise5 the information included in the annual report. other than the financial statements and our auditor's report Ihereon. Our oplnion on the financial slalemenls does not cover the other information and, except to the exlenl olhemsè explicitly slated in our report, we do not express any lorm ol assurance wnclusion Ihereon. Our responsibility is lo read the othei inlorm8lion and, in doing so. consider whether the other informali is materially incon5islent with the financial slalements or our knowledge obtained in the audit or otherwise appear5 to be materially Mi881ale(l. 11 we identify such malerlal inconsistencies or apparent rnalerial mi5Stalements, we are required to delemine whether this give5 rise lo a rnalenal misstatement in the financial staternenls themselves.11, based on the work we have perfomed. we condude that there is materid mlsstalern¢nl of this other informats"on, we are required to report that fact. We have nothing to reptm in this regard. -17-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2020 AUDITOR'S REPORT Al•ttoYs on whlch we ale requlred to report by •xceptlon We h8ve nothing lo report in respect of the lollowng matter5 in relation lo which the Ch8ritie8 (Accounts and Reportsl Regulations 2008 requires us to report lo you if, in our oplnien". the information given in the financial statements is inconsistent in any material respect with the Truylee'$ report". or sufflcienl and proper accounb'ng records have not been kept by the charity., or the financial statements are not in agreement with the accountin9 records and retum8', or we have not received all the inform8lion and explanations we require for our audit. Responslbllltles of Truste• As explained more fully in the Slalement of Council's rosponsibililies sel out on page 13, the Trustee is re8pon$ible for the preparation of the financial st81ernenls and for being satisfied that they give a true and fair view, and for such internal control as the Trustee delernjines is necessary lo enable thè preparation of flnandal slalemenls that are free from material misstatement, whèther due lo fr8ud or error. In pr8paring the financial 81alemenls. the Tru8lee i¥ re8ponsible lor 8sse88in9 the charity's ability lo continue as a going concern, disclosing. as applicable, mallers related lo going concern and using the going concern ba51s of accounting unless th8 Tru51ge either intends lo liquld8le the charlty or Ic cease operations, or have no realistic altern81ive bul lo do so. Audltor'• f•iponslbllltSes for the audlt ol th• Ilnanclal •t•terywnts We have been appointed as auditor uncler section 151 of the Charities Act 2011, ond report In accordgnce wrth the Acts and relevant regulations made or having effect Ihereund8r. Our obiectives are lo obtain reasonable asyurance about whether the flnancial statements a$ a Ole afe free from material misslalemenl, whether due lo fraud or error, and to issve an auditor's report that inclu(Jes our opinion. Reasonable assurancg is a high level of assurance, bul 18 not a guarantee th81 an audit conducted In accordance with ISAS IUKI wll always delect a material misslalemenl when It exists. Misstalemenls can arise from fraud or error and gre considered material rf, Individually or in the aggregato. they could reasonably be expected lo influence the economi¢ docisions of user8 taken on th8 basis of these linancial sl8lem8nls. Delai18 of the exlenl lo which the audit was considered capable ol delecling irregularities, Includlng fraud and non-cc4npliance with laws and regulations are sel out below. A furthèr description of our responsibllitie5 for the audit of the financlal slalemenls is located on the Financial Reporting Council's website at.. .Irc.or kla dilor part of our auditor's report. onsibililies. Thi5 description forms Extent to whlch the audlt was congldered capjble of d•tectlng Irregularltles, Includlng fraud Irregularities, including fraud, are instances of non-compliance with law5 and regulations. We identifie and assessed the risk5 of material misstalemenl of the finanaal slalemenls from Irregularities, whether due lo fraud or error, and discussed these between our audit team members. We then designed and perf(xmed audit procedures responsive lo those risks, including obtaining audit evidence sufficient and appropriate to provide a b881$ for our opinion. We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effgcl on the delerminalion of material amount and disclosures in the financial slalemenls. The law5 and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP IFRS 1021. We assessed the quired compliance these 18ws and regulations as part of our audit procedures on the related financial Stalèmenl items. -18-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2020 AUDITOR'S REPORT In addition, we considered provisions of other laws and regulations that do not have a dlrect effect on the financial stslements bul compliance wth which mighl be fundamental lo the charity's ability to operate or lo avoid a material penalty. We also Considered the opportunibe5 and incentives that may e$1 within the charity and the group for fraud. The laws and regulations we consitJered in this context for the UK operations were General Data Protecuon Regulatson and hegtth and safety legislallon. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations lo enquiry of the Tru51e8 and other management and inspection of regulatory and legal correspondence. rt any. We identified the greate81 risk of mat8rlal impact on the flnancial slalements from irregulaflties, including fraud, lo be Mrilhin the liming of Tecognilion of incorne, valuation of Investmen18 and the override of controls by management. Our audit procedures lo r&5pond lo these ri6k5 Included enquiries of management, and the Trustee about ils own identification and assessment of the dsks of irregularities, sample lesting on the posting of journals. onalytical rèview and sample lesling of income, vouching year end valuation5 to third party data, reviewng accounting 881imates for biases particularly in relation to investment valuations, reviewng regulatory corTespondence wth the Charity Commission. and reading minutes ol meetings ol those charged with govemance. l)vAng to the inherent limilallons of an audit, there is an unavoidable risk that we may not have detected scme rnolerial misslalemenls in the financial slaternenls, even though we have properly planned and performed our audit in accordance with auditing Standards. For exarnple, the further removed no cornpliance laws and Tegulalions lirregulanliesl Is from Ihe events and transactions reflected In the financial 5talemenls, the less likely the inherently limited procedures required by auditing Standards would Identify it. In addition, as wlh any oudil, there remained a higher risk of non-deleclion of irregulorilie5, a5 these may involve collusion. forgery, intentional cnissiong, mlsrepresenlatlons, or the override of internal controls. We are not responsible for preventing non-compliance and cannct be expecled to delect non-crjnpliance all laws and regulations. Use of our r•port This report is made solely to the charit$ Tru51ee, as a body, In accordance with Part 4 of the Charities (Accounts ond Reports) Regulation$ 2008, Our audit work has been undertgken so that we might slate to the charity's trustees those matters we are required lo slate lo them in an auditor's report and lor no other purpose. To the fullest extent permilled by law, we do not accept orassume respon8ibilily lo anyone other than the charity and the chariws Trustee as a body, for our audll work, for this report. or for the opinions we have formed. Crowe U.K. LLP Slatulory Auditcf London Date 10th December 2021 Crowe U.K. LLP Is eligie for appointment 88 auditor of the charity by virtue of eligiLx"Iity for 8Fptyntrnenl o¥ aL*lilor of a company urKJer Section 1212 01 the CompaThe$ Ad 2rM)6. -19-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AIJGUST 2021 STATEMENT OF FINANCIAL ACTIVITIES £ LW)O• EndDvrnnt R••trlctod Llnr•rictgd Fund8 Funds Funds Total 20Zt 2020 INCOME MD ENDOY•WENTS FROM.. Fundrilsing Donal)nS & kn¥e&lments 194 8,187 1(XJ 0.439 8.063 2,379 &703 CharltAblo A¢tlvttl•¥ Gran18 r8ctlv4)kry 724 Other Sour9 Oltter 1ncomB 10 10 12 TOTAL INCOME ENDOVthIENTS 8,023 202 10,198 11,818 expENDITURE ON.. hvaslmint man4•menl FlnAnGing 12,7331 12,2771 12,7391 12,2771 12.415) 12,2781 Ch•rlt•bl• thltl•s ct9 of provtrjing educqlvjn Gran18 PAysb 1241 18211 12.4611 12,4901 12,4TJI 15,0411 110,0721 (14,8431 8b TOTIL EXPENDITURE 15,425 050 7,S03 22,009 NET IOUTQOINGI I INCOMING FUNDS FROAI OPERATIONS BEFORE Tft5FERS MIO INVESTIAÉNT OANS 17.4021 14481 2.696 16,1501 110,1911 ins on InlmeIl Tr•nslers bthe•n lund8 69,995 1291 70,301 9,761 19 19) NET INCCtrME MD ¢*PIT RIFLOWIIOUTFLOW) 62,$64 A¢¢u¥lil galnB I IloM••l d•fln•d b•nofft p•n•lon Kh•nK• 2.733 86,146 14301 17e 1,884 1,064 11.136) NET m0MENT IN FUNDS 951 4,597 67.010 Total fiJnd5 brought fow8 1 Septter 361,420 2.230 49,224 432,874 434.440 TOTPL FUN03 CIRRIEO FORWARD 443.984 2,079 499,884 432,874 The notes on pages 23 to 43 fom part of these financial statements -20-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 BALANCE SHEET £ L¥JC endowmnt R&tslcted Unr••trf¢t•d Fund• Funds Funds Total 2021 ro 2020 FIXED SETs T•rtg1b @ss48 io 5,339 473,611 58.419 63,758 475,206 63.916 414617 1,595 478,950 1595 58,419 538,964 479.533 CLIRRENT SET$ D•biofg - due morn than on8yw - wrthin one yelr Cash at bank al n h•nd 12a 12b 1.352 1,5X 9.454 1,J62 3.645 15,2•3 1.456 2.749 11681 2,119 5.355 12,332 7,474 20,290 f7,886 CREDITORS Duowrthh oney¢¥ 13 12,2981 13,7471 16,0461 f9,1871 NET CURAENT AISETS 10.034 3.727 8,719 TOT sET5 LESS CLIRRENT LIlLrrlES 4&8,9B4 2.079 62,146 553,209 488,252 CREDITORS Due after rn018 than on•yeor Perffjion cme Ility 14 145.0001 145,IW)01 18,3201 145,QCV) 110,J781 18,3251 TOTIL ASSETS. INCLUDING PENSION SCHEME LBILITy 443.9 2,079 432,8Y4 REPRESENTED 8Y.. Endowment Fund$ Reslricled FuTrJb Unreslricled Fund$ P¢nsw)n Re5w¥e 443,984 381,420 2.230 $9,602 (10.3781 2,079 2,079 62.146 18,3251 62.146 18,3251 TOTIL NET SSETS- INCLUDING PENSION SCHEIIE LI2ILrrY 443.984 2,079 53.821 432,874 The notes on pages 23 10 43 form part of these financial 51alemenls Approved by the Council of Christ's Hospital on 2 December 2021 and signed on ils behalf by.. Chrlstopher Steane Treasurer and Chair of the uncil of Chflst's Hospital 2 December 2021 -21-
CHRIST'S HOSPITAL FOUNDATION TERMINOLOGY Endowmènt. The Endowment comprises those assets that have been donated lo the chanty wlh the express Intention that they be hekl in perpetuity to provide investment returns for Council to use in achieving the Objects. Council has an obligation lo be even-haneed when spending money from the Endowment so that future generations of beneficiaries are not disadvantaged in comparison with the current generation. Fr¢e RMerye8. The Free ReseNes of a charity are those assets and investments that can readily be disposed of in order t¢ meet the Short-term commitments of the charity. Oblects. When a charity registers with the Charity Commission, it must describe the purposes for which the charity has been sel up. These purposes are referred lo as the charity's Objects. Old Blues. This is the term used lo describe former pupils of Christ's Hospital, Presèrved Endowm•nt. When aulhorising the adoptson of a policy of Total Retum, the Chanly Commission specified the minimum level of the Endowment which is to be used lo produce the income lor the charity and which cannot itself be spent. This is referred to as the PreseNed Endowment, representing the value of the original gifts that created the Endowment. Spending Rul•. In orfler lo ensure that il is bein9 even-handed, Council detem?ines the amount that can routinely be withdrawn from the Endowment without depleting the value in real lenns. This delerminalion is referred lo as the Spending Rule. Total Return. Historically, the only investment returns that could be spent by Council were the income, i.e. dividends. interest, rents etc. By adopting a policy of Total Return, Council Is able to acce55 capital gains as well as the income, selecting those investmen15 that offer the best relum, irrespective of whether this arises from income or capital growth. Unapplled Total Return. This is the cumulative value of the Total Returns (income and capital) earned by the Endowment since adopting a Total Relum policy, less the amounts that have been applied for the purposes of the charity. It is available lo be spent, subject lo the duty ol Council to be even-handed (see Endowment above). -22-
CHRIST'S HOSPIT AL FOUNDATION YEAR ENDED 31 AUGUST 2021 NOTES TO THE FINANCIAL STATEMENTS 1. NATURE OF THE ENTITY Christ's Ho$pilal Foundation con51itules a Public Benefit Enlily, as defined by FRS102, registered in England and Wales under Charity number 306975 with ils Principal Office at the address listed on page 16. By a Charity Commission Scheme dated 29 August 2017 and effeclive from 1 September 2017, Christ's Hospital Iformerty Christ's Hospital School), company number 06232556 and re9iStered charity number 1120090 became the Trustee of the charrty and a number of linked chantie5, induding The Christ'5 Hospital Common Investment Fund (Charity number 11115071. The financial information in these Report and Accounts only relate lo Christ's Hospital Foundation. Consolidated accounts Including the related companies, Chrisfs Hospital, as parent, Christ'5 Hospital Enterprises Limited, Bluecoal Sports and Chrislal House Contracts Limited are available upon requesl lo the Chi8f Operating Officer of Christ'5 Hospital, The Avenue. Chrisl's Hospital, Horsham, Wesl Sussex. RH13 OLJ. 2. ACCOUNTING POLICIES The financial slalemenls have been prepared in accordance with the Lhar1ties SORP IFRS 1021 applicable lo charities preparing their accounts In accordance with the Financial Reporting Standard applicable in the UK and Republic ol Iroland IFRS 102}, the Charities Act 2011 and the Slalemenl of Recommended Practice applicable lo charities preparing their accounts in accordance wlh the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021- effective 1 January 2019. The financial statemen15 have been prepared lo give a 'lrue and fairf view and have departed from the Charilles 1Accounlp and Reports) Regulations 201 J only lo the extent required to provide a'true and fair view,. This departure has inVoed following Aceounling and Reporting by Charities preparing their accounts in accordance with thè Financial Reporting Standard applicable in Ihe UK and Republic ol Ireland IFRS 1021 issued on 16 July 2015 rather than the Accounting and Reporting by Charities.. Slalemenl ol Re¢omrnended Practice effective from 1 April 2005 which has since been withdrawn. The functional currency ol the Foundation is considered lo be pounds slerfing because that is the currency of the primary e¢onrmic environment in which il and 115 related entities operate. Al the time of approval of the Annual Report, factors remain that may have an impact on the charity, In commDn with other businesses, over a number of years. Those factors indude the ongoing pandemic and rising inflation. lIst the impact is unknown, Council has reviewed the position carefully wlh a wew to ensuring the ongoing provision of schooling for the pupils, support of bursanes as well as emplgymenl of 51aff. A significant portion of the securities portfolio 15 in liquid investmenls whose drawdown is managed carefully lo meet day to day opeTalional requirements. These are available, rf needed. to supplement the significant C85h balances that the charity currently holds. Conservative cash flow modellin9 wilh sensitivity analysis indicates that the cash reseNes of the charity are adequate to meet the charity's obligation5 a5 they fall due. Accordingly, Council believes the Foundation's financial resources are sufficient lo ensure the charity will continue as a going concern lor the foreseeable lulure. being al least 12 months from the date of approval of the financial staternents and have therefore prepared the financial ststements on a going concern basis. -23-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 NOTES TO THE FINANCIAL STATEMENTS The Foundation has taken advantsge of the exemption. available under FRS1021o subsidiary charities, from preparing a cash flow $lalement as this is induded in the consolidated linancial slalemenls of Christ's Hospital. Critical accounting ludgemgnts and key 80urcos of estSmatlon uncertainty In the application of the accounting policies. Council is required lo make judgements, eslimale5, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other souls. This indudes the basis lor valuation of the property investments and securities investments for which there is no readily quoted market and the liabilities in relation to the Christ's Hospital Pension Scheme. The eslimale5 and underlying assumptions are based on historical experience and other factors that are considered to be relevant, including market comparator5 where available. Actual results may differ from these estimates. The estimates and undedying assumptions are reviewed on an ongoing basis. Revisions lo accounting eslimales are recognised in the period in which the estimate is revised if the revision affed5 only that period, OT in the period of the revision and future periods if the revision affects current and future periods. This inejudes private market inveslrnenls vthere the year-end valuation is based on the latest quarterly v81ualion, usually 0130 June. 1115 Council's judgment that there h85 been no impairment in the value of these investments with market indices appreciating frorn the last quarterly valuolion lo 31 August 2021. In the view of Council, no assumptions Conceriing the future e81imalion or uncertainly affecting assols or li8bllilles 81 the balance sheet dole are likely lo result in a malerial adjuslmgnl to their carrying amounts in tho next financial year. The following accounting policies have been applied consislenlty In dealing with items which are considered material in relation lo the financial slalemenls. Income Income from Investments is accounted for when receivable. Income from legacies and donations is accounted for as and when entillemenl arises. the amount can be reliably quanlilied and the economic benefit lo the Foundation is considered probable. Investment income and gainsllosses on the securitses portfolio a credited lo the individual fund in proportion lo the holding In the Common Investment Fund. Legacies and donations receivable for the General purposes ol the Foundation are credited to Unreslricled Funds. Donations lof purposes r8slricled by the wishes of the donor are taken to Reslricled Funds where these wi5he5 are legally binrjing on Council. except that any amounts required to be retained a5 capital, in accordanTr with the donor's wishes, are accounted for instead as endowment fvnds permanent or expendable according lo Ihe nature of the restriction. Gift5 In kind are valued al estimated open market value at the dale of the gift, in the e8se of assets for retention or consumptson, or al the value lo the Foundation in the case of donated Ser$ or facilities. -24-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 NOTES TO THE FINANCIAL STATEMENTS Expenditure Expenditure Is accrued as soon as a liability is considered probable. Expenditure is apportioned to cost categories based on the estimated amount attributable lo that eategory in the financial year. Value added lax IVATI that cannot be recovered is Included with the item of expense lo which il relates. The small recoverable element of VAT is credited lo other support costs. Overhead and other costs not dIreCY attrbutsble to particular activities are apportioned on the basis of management estimates ol the amount attributable lo that ath'vity in the academic year by reference to staff lime. Governance ¢o$ts ¢omprise the c05ts of running the Foundation, including external audit and all the ¢o$ls of complying with constitutional and statutory requirements, such as the costs of preparing slalulory accounts, and salistying public accountability. In the current financ1 yeaT, certain governance costs relating to the Foundation, eg external audit, are accounted for in the books of Christ's Hospitsl. These have been funded via the annual grant. See related party transactions note 18. VThere appropriate, investment management costs are allocated lo the fvnds in proportion to IheiT holding in the Common Investment Fund as set out in note 11. Flxod A•8•ts Expenditure on Individual items costing more than £5,000 is capilalised and depreciation is Charged in equal annual inslalmenls over their economic lives as follows. Operalional properties 2./0 to 100h on cost Office and IT equipment 25010 on cost Plant and equipment 20D/o on cost DepreGiatson is not charged on work in progress. Where a project improves an existing asset, the cost of the improvement is depreciated oval the residual life of the parent asset. The Balance Sheet values of historic assets, Inclucling paintings, silver and other artefacls are based upon valuation al 31 August 2000 logelher with subsequent additions al cost. No depreciation has been provided on Ihese assets as Council does not believe that there has bèen any Impairment in value from the valuation shown in the Balance Sheet. Inve•tmonts Investment properties are valued at their market values as assessed by an independent valuer at the Balance Sheet dale. Inve5trnents for which there is a quoted market are valued al the mid-market-price ruling at the Balance Sheet date. Investments such as hedge funds and private equity funds, which have no readily Idents"fiable market value, are inclvded at the most recent valuations from their re5pecliv& managers. Gains and losses arising on Ihe revalualion of investments are credited or charged to the Slalement of Financial Activities and are all¢xated lo the appropriate fund in proportion to their share of the underlying assets. -25-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDEO 31 AUGUST 2021 NOTES TO THE FINANCIAL STATEMENTS Where Iransaclion-based. investment management costs are accounted lor as incidental costs of the acquisition or disposal. General inveslmenl management costs, including perfomiance lees, are charged to the relevant funds. Financlal Instrument• Basic financial Instruments are initially recognised al tr8nsacts.on value and subsequently measured al amortised cost with the exception of investments which are valued as described above. Financial assets held al amortised cost comprise cash al bank and in hand. together with short term deposits, trade and other debtors. A specific provision 15 made lor deb15 for which recoverability is in doubl. Cash al bank and in hand is defined a$ all cash held in instant access bank current and deposit aecounts and used a5 working capital. Financial Iiabililies held al amortised cost comprise all eredilofs except social security and other taxes and provisions. Assets and liabilities held in foreign currency are translated lo pounds sterling al the balance sheet dale at an appropriate year end exchange rate. T•xation The Foundation Is able lo tske advantage of lax exemptions available lo charities for Income and Corporation Tax but is registered for VAT. The majority of ils activities are classified as exempl or non-business activities for VAT purposes and consequently il is not possible lo reclaim the majority ol the VAT incurred on purchases. Grant• Plyable Grants are awarded on an annual ba515 and the cos15 accrued upon the award being notified to the recipient. Tolal Return Accountlng The Charily Commission permitted Christ'$ Hospital to adopt the use olTolal Return in relation to its Permanent Endowments on 26 April 2005. The power permits Council lo invest Pemianenl Endowments lo maximise Total Retum and lo make available an appropriate portion of the Total Return lo fund expenditure each year. Council has used the value of the permanent General Endowment al 31 July 199310 represenl the Preserved Value of the original gifts. For all other specified endowment funds, values al 31 July 1996 or lal8r where appropriate. have been used lo rePSent the Preserved Value. Fund¥ Endowment Funds comprise those assets that have been donated lo the chanty with the express intention that they be held in perpetuity to provide investment returns for Council to use in achieving the Objects. The PreseNed Endowment PresentS the value of the original gifts that created the Enéawmenl and is the minimum level of the Endowment which 15 to be used lo produce the income for the charity and which cannot Itself be spent General Funds are funds available for use al the discretion of Council in furtherance of the general objectives ol the Foundation and which have not been designated for any other purpose. -26-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 NOTES TO THE FINANCIAL STATEMENTS Dulgnated Fund¥ comprise Unrestrided Fund5 that have been set aside ty Council for particular purposes. There 1$ no legal restriction on the way in which the funds may be applied. Restriclod Fund8 are accounted for in accordance with the particular terms ofthe trust arising from the expressed or implied wishes of donors insofar as these are intended to be binding. Pen81on Scheme8 The charity has fully adopted the provisions of FRS 102 for Christ's Hospital Pension Scherne. Further infomalion on this scheme is set out in Note 17. 3. DONATN8 AND LEGACIES £ OOOS Endo¥•t fteltrktsd UnMtrkt•d Fund• Fund• Fund• Totsl 1021 Totsl 2020 OonwlionGowrnornhips & Fw Logades Donation& forcgpitsl 18¢19 Othrdon•lio 1,473 5,940 1,473 $,970 719 848 78 734 10 20 22 152 48 774 974 58 8.187 2,379 4. INvESTNT 14C¢)ME t OOO¥ Endowm•nt R•Dtrkt•d unr•1¢1#d Fund• Funds Fund• Totsl 2021 Tolal 2020 Propety 6,285 1,504 14 1,215 1,612 17 T,352 1.044 38 heres1 Rerfallrwm and nrel from Cthithl House Conlr8cts Llmlted R•Nal Income from 8kncoi Sport8 Rerrt81 Income from Chis1'1 Hospilal 87 87 97 65 89 97 83 97 86 7,955 100 8.703 S.INCCthIE FRCW CHARITA8LE ACTIVITIES £ OOD• Endowm•nt Unre•trlct•d Funds FundB Total 2021 Tolol 2020 Gr8nts receiv8b frvm Cmgfs HDspitsI 1.911 724 724 -27-
CHRIST'S HOSPITAL FOUNDATION YEAR ENOED 31 AUGUST 2021 NOTES TO THE FINANCIAL STATEMENTS 6.INcCE FRC•A OTHERSOURCES £ OOO• Endowm?nt Fund• Rg¥ffict•d UnMBtrkt•d Funds Fund¥ Totsl 2021 Tot81 2020 Ctsr miscelaD Income io 12 10 12 7. INVESTAIENT MANAGEMENT ¢08TS £ OOO¥ Endowmont Ro8irktgd Fund• Fund• Totsl 2021 Tolal 2020 Fund• Propetyco81 Secwles 4rkl cash mfjnaoeffentle88 2.278 455 2.271 1.301 1.054 2,733 2,415 8. ANALYSIS OF EXPENDITURE {•) Totsl •xp•ndkvr• É OOO• St•ff CD•t• Oth•r D•prnclalon Co•t• Total 20Z1 Tol•l 2020 c1• ofg•norntlng h*Stffrrt fflaw8mert costs FinatKinU ¢osIs 2,739 2,277 2,731 2,277 2.415 2.278 Tot•1 ¢o•t of g•n•Mtlnq fund• 4.693 EduG•tlon grant m•klng PrEmise$ COBIS Othr5UPPQrtCO81$ Grarrfy 2.059 2,042 431 t4.543 392 28 16.072 4J1 16,072 Tot•1 ¢1bkn ¢xpdr9 392 16,100 2,070 17,316 Tpl•l 392 22.009 Other sUPPOrt costs include governance costs of £31,00012a20.' £23,000). In the current financial year, certain governance costs relating lo the Foundation, eg exlemal audit, are aecounled for In the books of Christ's Hospital. These have been funded via the annual grant l$ee note 181. -28-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 NOTES TO THE FINANCIAL STATEMENTS Totsl 2021 Tolal 2020 Ibl Grants, awarth and prLz•• £ OOQS From •IOW•d lund•'. Gr8rt¥ Frorn T••trict•d fund•'. Gr&rts From Unrn1trId fvndi.. Grnrts 10,410 12,212 821 1,685 5.041 16,072 14.843 The58 grants were made to Christ's Hospital, as well as current and lomier pup115 al Chrlst's Hospital. Please see Note 18 Related Paty Transactions for addiuonal information ielats'ng to the movemènt from prh)r year. . STAFF COSTS There are no employees in the Foundation. Inlomiation on volunteers Is shown on page 13. 10, TANQIBLE FfiÉo IASETS L•nd & Pl•nt& E91pm•t Hkntork Tol•1 Equm•nt Co•lor¥4lu4lhin At I Sèptsrrthr2020 AddiOLY541coil 81,346 1883 70 1,314 29 5.33 At31 kn9u¥I 7021 1•,901 O•pMcl•iion All Septem1 203Q forthe ptliod 23,099 1.854 67 987 215 24,153 2M70 At31 Auout 2021 N•t book vhJ• •t Ji AuguBt 2021 J9 Njlbook v*lu• •lJl Auw12020 58.247 32T 5.539 63.916 -29-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 NOTES TO THE FINANCIAL STATEMENTS t•. FIXED A3TIVe3TmENT8 £ OUIIA Propety S•curlU•s Total 2021 To&41 3020 V•AbnWt• 11mllt¥ll arketkn al 1 SepteTher N•tldi8imEstrnert) from porttolo Fee5 oThJ ctr*r9oJcoIIryGted Dlmdendg arQ irferBsI reinvasted a4114ad mahsqd gr& 157.456 110.a421 258.iei 415,617 426.794 (20.9&7) 1A14 70,301 1.044 9,761 9M73 8Q,820 Mork•iwbA a131 ALty1 158,267 47b 201 415.817 rohl 2021 & foidqffl exchow• dI• D•bt InitruTMn Equitt8 H•dqe 11.584 41.100 131042 27.T86 44,844 41.363 118.290 7Z.110 7$hl? 258. 161 Prop•rty cornprkn••'. R•wii 42,100 17AUO a7.580 50.375 24.958 ?0.073 AidcLllural4rf 011 L•nd R•ii4anb&l piopertl Idl 217 15T.450 The Charity Commission permitted Christ'5 Hospital lo adopt Ihe use ol Total Retum in relatson to ils endowmenl on 26 April 2005. The 15 a quoted market (including lisled markelsl for approximately 22% (2020.. 34%) of the investments wthin the funds held in securities. A further 44.l2020.. 390AI of investments are held in funds which themselves invest in publicly quoted securitie5. The remainder, representing pnvale equity funds, are valued In accordance with the information provided by the fund managers which are based on quarterfy and audited annual reports. Approximately 53Yo 12020.. 650/0) of the portfolio is considered liquid, meaning that the funds are capable of being traded on at lea51 a quarterty basi5. Forward currency contrac15 are used to mitigate the risk associated with investment assets denominated in foreign CUTrencies. Al 31 Augu512021. the gross notional value of open forward contrac15 amounted lo £142.1 million12020". £130.9 million). These contracts have been revalued at the applicable year-end rates and the resulting unrealised gains or losses have been included within the oveiall value of the investments above. At 31 August 2021 there were outstanding commitments lo fund a further £45.5m12020' £47.3m) in capital calls from private equity funds. These calls will be funded from the sale of liquid assets wrthin the inveslrnent portfolio. -3[
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 NOTES Ta THE FINANCIAL ST ATEMENTS Comfflon Invgstmefit Fund Security assets totalling £318,919,000 are held wthin the Chrisl's Hospital Comrnon Investment Fund, which was established on 2 August 2005 and is a pooling scheme fund within the meaning of the Finanoal SeNIs & Markets Ad 2000 (Exemplionl Order 2001 ISI 1201120011. The scheme became aGlive on 31 March 2006. At 31 Augusl 2021, units within the Christ's Hospitsl Common Investment Fund were held as follows.. S•cuvlll•* £OOOi 277,4?8 27 214 3.321 3.225 Genaiil Fwd Tho TA¥$16' Gin [urcTenF The Daniel LouFur HornbysMerFw eArk&rlhJiC Fwd Ih• PAF FourdaDllr•r•' NISI We31 sCrFWd AddiuOnGQ•ts F e63 l.Q4 0.41 OM2 OA? Q21 0.16 0.16 0.08 1,007 578 49B 79$ ILW Fw Th? R•91m Yibvj f ArnyFcund4bon Ohr FJ# oAo 314 919 other funds represent the combined assets of 17 individual Irugts none of le has assets in excess of £200,000. Property Valuatlons Formal valuations of th8 commerci31 investment propwties were prepared by Mr D Mills. MRICS of Cushman & Wakefield LLP and rural and residenb'al properties by Mr P KiTk. MRICS of Savills IUKI Limited as at 31 Augu$l 2021. Futurn Incorn• from Property Inv•stm•nts The future minimum lease income under non<ancellable operab'ng leases receivable in less than one year is £4.6m12020" £5.6ml. Amount5 receivable between l and 5 years are £12.9m12020. £10.8ml and after 5 years are £35.4m12020 £42.2ml 124. DE8TORS DUE AFTER MORE THAN ONE YEAR £ OOOS 2D21 2020 ChriBt81 House Contracis Ltd 1.352 1.456 1,3S2 1,456 -31-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 NOTES TO THE FINANCIAL STATEMENTS 12b. DEBTORS DUE WITHIN ONE YEAR £ OOOS 2021 2020 Tradg debtors Rents ieceivab Christsl Hous8 Contracts Ltd 88t Sports Accrued legacies Olher debtors prepaym&nts 89 2,034 745 25 250 206 837 143 98 1.950 612 13. CREDITORS DUE WITHIN ONE YEAR £ OOOI 2021 2020 Trade uedllors Cth"81'$ Hospital Value Added Tax Rent in advare Other creditors and 8ccrLwLs 210 3,637 132 1,079 1,087 151 S,040 238 1,913 1,825 9,16 14. CREDITORS DUE AFTER MORE THAN ONE YEAR £ OOO• 2021 2020 Barl( ban (see below) Loan note issw (see babw) 25,000 20,000 25.000 20,000 45,000 Repayab as fo1th.. after 5 years Bank loan Isee below Loan mte158uB (see bel)wl 25,000 20,000 25,OOQ 20,000 45,000 In October 2003, Thg Foundation entered into a £25 million bank loan f8ti1rty for a term 0125 years for the purpose ol acquiring new commercial property inveslmenls. RepayThenl is by a 8ingle payThenl at lemiinalion in October 2028 wth interest payable quartgrly in arrears al a fixed rale of 5.55QA. This loan Is secufed against investment properties wlh a minimum valuation of £35.0 million and as al 31 August 2021 the properties against which the loan is secured have been valued al £37.8 million. -32-
CHRIST'S HOSPIT AL FOUNDATION YEAR ENDED 31 AUGUST 2021 NOTES TO THE FINANCIAL STATEMENTS In April 2014, Chri5Ys Hospital Foundatlon cornpleted on a £20 mlllion private placement of lcan notes as part ol it5 Investment strategy. The notes, which are due for repayment in 2034, are secured on as6els held wthin the securities portfolio. Inlorest on the loan notes is al a fixed rale of 4.450h, with interest payable semi-annually. 15. CAPITAL AND LEASE COMMITMENTS Capltal Commltm•nts At 31 August 2021 there were capitsl commthienl$ £nil12020." £0.3 million). See Note 11 for informallon on prlvale equily fund commllments. 18. AUDITOR'S REMUNERATION Audit fees of £22,32012020' £21.9601 were paid for by Christ's Hospllal frc¢n the 8nnu81 grant. 17. PENSION SCHEMES Chrlst'• Ho8pltal Pen8lon Scheme PriL)r lo 2005. non-leaching slaff were enlllled lo jcin Ihg Christ's Hospital Pension Scheme (the Schernel, a deflned benefit scheme, lo which contributions are made by both employees and the employeTS. The Scheme was closed lo new member$ with effect from 31 March 2005. Member contributions are 6.5% for those members who have an accrual rale of 118Olh of final salary fer each year ol service, and 40A for those 0 have an accrual rale of 111001Th Contribution6 pay8ble by employers are 24.3.10 ol salary, plus an annual deficil-reduclion conlribulion, currently of £331,500 and £2.2 million lump sum payment by 31 March 2035. The defiut-reducllon payments are in accordance with an agreed schedule, allowing the defieil lo be eliminated by 31 M8rch 2035. Tha basis of onlribulion lo the Scheme is Specrfied in 8 schedule of contributions certrfied by the actuary and greed with the Scheme trustees on 30 March 2021. The c081 of providing such pensions is charged lo the a(xounl8 In occordance with the provisions ol FRS 102. The last full actuarial valuation of the Seheme was carried out with an effective d3te of 31 March 2020. For the purpose ol FRS 102. the Scheme valuation has been updated as al 31 August 2021 by a qualified actuary. The valuation method adopted for the Scheme was the Projected Unil Method and il is assumed, in relation to security of both accrued and protected rights, the Scheme will Continue. Employer contributions for the year ended 31 August 2021 were £392.00012020,' £272,000). This included back-dated deficit reduction contributions of £145,000. The Scheme's assets and liabilities, analysis of pension cost and details of the valuation were as follows. -33-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 NOTES TO THE FINANCIAL STATEMENTS alAmounts r•cognlK•d In th• ball• ih•ot• £ OOO• 2021 2020 Pre8értvak olfijnded Dbhgaiio Fair1 ofpLAn888ets 124,3361 1S,910 124,2571 13.879 N•tLthbll4f 10,378 IblCh•ngH In th• pr•unt w• olth• d•flnod b•n•fft oblqatbon £ OOO• 2021 3020 (ening defiwd benefil pbloabon EMpT8, seNce cost Interest cost AcknnlI085e8 Bemliy pald trom SCme Sctme portyparty. conbibul¢nJ 24.257 197 382 160 17871 24.235 204 430 130 17821 40 24.257 Icl Ch•ngM In th• fAlrvalu•of th• 8ch•m• ••4•ts ar• •• follow•'. £ OOO# 2021 2020 Opeklry fair1? Of8 •48ets Ewethd relur Actuanol goln 111088881 Empknsei GOTrfnbulior Scherne parbdp&nls' ribu0 Admin8tr•tyoh BApen&es paid 8erflts p•ld 13,879 221 2,014 SSI 36 14,957 286 11,D061 404 40 17871 (7821 F•br¥•lu• of Sch•m• a#••t• •t•nd of p•rlod 13,879 On the currently agreed basis, the projected amount charged to the Statement of Financial Activitles 15 as follows.. Idl Amoun1• th¢ludud wlthln th• St•t0ment of Fln•ncl•l Aclfvhl•• £ OQOS 2021 2020 Clrrprt seTrice COBt hlerBst Irtome on as$e Adrninistralion Expews p8id htere$i on pension liablUtie$ 11971 221 12041 13821 14301 Totsi charg•d thIn n•t loutgolnov In¢on4nq fund* frrthop•ratI8 362 -34-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 NOTES TO THE FINANCIAL STATEMENTS (•} RoconGlliDiion of mov•m•ntkn Pr•MrttV•lu• off Plon Ll•blllJ•s •nd 9•1• £ 0008 2021 2020 Nel liabity¥t1hQ begimiw ofth r envr¢ur[¢rtry1Ce cost corrtribthon re$t rOme on 88sel• erest COSI AdmiNsliation ekperoes paid 110.J781 11971 641 221 13821 141 1,864 19.2781 12041 404 286 14301 11,1361 N•t •t•nd ofth• ymr 8.326 10,3781 In ut•9orlM ofSch•Th a•Mts • p•rc•ntsg• oftot•l Sch•m• a•8•ts 2021 2020 £quilie& ML1h.A88•tFu1& Property Cilh 39% 38% 4JX 20% 3% loo% 31 Au9U¥t 2022 Proj8ced CUTrent lece cost Projedad InternitiOffie Dn AJg81 Proled¥d lrtew$tcoBI on Defir¢d 8•n•fit0blig•an 169 404 287 The overall expected return on the Scheme assets in the year is determined as a weighted average ofthe expected returns on each asset class. The returns on equities are delerrnined by the Chr151'5 Hospital Pension Fund trustees having reference lo the expected return from an investment in the FTSE-Actuaries All Share Index. The gilt return is derived from the prevailing redemption yields on long-daled fi'xed Interest gills at the valuation dale. Iql P¢[pol ••Durnptbni •tth• balinc• •h••tdat• 2021 2020 DiscDurt rnte Rth oflrtrease in8818fie$ Raie ofSFKrea% olperBion& In paert. Pre April 1997 Rate of irKrease Df pewlons In paynert- Poli Aprfl 1997 Rale ollrKrease of peralor6 in defem*rt Prfce IrfAbon 1.6% 2.6% 22% 3.1% 2.6% 3.1% 2.9 2.3% 3.3% 2.9% 3A% The 2021 valuation has assumed average mortality in accordance with S3PxA M tables for 2020, with the CMI 120201 model together with long-term improvements of 1.5Q/o p.a. for future improvements in lon9evity. -35-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 NOTES TO THE FINANCIAL STATEMENTS Ihl Projoctsd Ishothlll at 31 Augu¥t 2021 £ 000% 2021 Ewected Ernp$ conlributsor 469 111 S•n8lU¥lty an16 Chang• In dèfined beneflt0bllga0n 2021 CT•aS• Idecrease discount rate by 0.5% p.a. caSt Idecrease esswned rate olfvrtwg intslion 0.5% p. hcrease Idecreas• lory-lerm sary increases by0,5% p 8. -8% 1 +9% 46%14% +1%1-1% 18. RELATED PARTY TRANSACTIONS No Council Member has received any remuneration for Mirk done in performan of their duties. Travel, training and subsistence expense5 lolalling £84 12020. £7951 have been refunded by Christ's Hospitsl to two Council Member5 in connection with their duties. Donali¢)ns tolalling £66,18812020.' £1.8501 have been received from seven12020". Ihreel Council Mernbers. £140,521 12020.. £nill was paid on an arms-length ba518 lo Land & Water Services Limited, a busine$$ whose ultimate parent undertaking is partly owned by James Madean, a Council Member, for dredging works. Trustees, liability insurance is included within the group professional Indemnrty and public liability policy and its cost cannot be separately identified, During the year, funding of £16.0 million was granted by the Foundallon to Chri51's HDspilal12020'. £14.8 million). Thi5 included £0.5 million12020 £1.5 million) fram the Sivewrighl reslricled fvnd for the theatre betterment project. This project completed in January 2021 with a lolal of £1.9 million of related assets gilled back lo the Foundation. Other expenses lolalling £5,00012020.. £4, 0001 were recharged by Christ's HOsla1 lo the Foundation. Chrisl's Hospital lunded certain expenses relating to the Foundation from the annual grant. Those expenses related lo the audit fee, the property director and development department's operational costs and the cost of finance support, The Foundation received £65,000 12020.. £65,000) in rent from Christ's Hospital for certain residentsal propertie5. The Foundabon received £97,00012020.. £97.0001 from Bluecoal Sports for the rent of its sports facilities. The Foundation received £7.00012020. £7,000) in rent chargè and £80,00012020' £82,000) in interest from Christal House Contracts Limited. -36-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 NOTES TO THE FINANCIAL STATEMENT8 19. MOVEPJIENT OF FLINDS Sycffied End¢)wrnent Fund8 The lolal Endowment Funds represent the Preserved Value plus the accumulated Unapplied Total Relum IUTRI. Distributions out of UTR can be made al any time al Council's discrelion. The purposes of the majof remaining funds are as follows., Th• W68ti' Glft for Children Fund provides funding for descendants of the West family children from the boroughs of Richmond, Twickenham, Reading, Newbury ancl other families in financial need. The Hornby Sleer Fund supports children from a family ther connected with the legal profession, living in Greater London, connected with the Order of Sl John of J8rusalem or where a parent is blind. The Dan181 Latt Fund supports current and tormer pupils in developing an interest in and pursuing a career In law, particulady al the Bar. The RAF Foundatloner•' Tru3t Fund provides funds to support the children of RAF personnel. The Ml8s VVe8t Scholar Fund provides 3 6th form scholarship lor a female pupil in rnemory of Miss Wesl, Headmistress al Hertford. Chrlst's Hospltal A••oclatlon supports the costs of publicity and alumni relations. Addltlonal Costs Fund Iformerly The N•co¥•llou• Chlldren'l Fund) provideg additional Support, particularly lor travel and ¢lolhing costs for children from families in exceptional financial need. Hou•e Fund gives an annual grant to the boarding houses in order to provide addits'onal resources or activities. Th• Reglnald Wood Fund provides additional funds lo support musically talented pupils. Th• Amiy Foundatlon suppcrts children whose parents have served or are currently serving in the Army. Re8trlcted Funds Reslricled Funds are aecounted for in accordance with the parts'cularterms of the trust arising from the expressed or Implied wishes of donors insofar as these are intended lo be binding. Where any such wishes are not intended lo be binding, they are taken into account and recognised in an appropriate Designated or Unre51ricted Fund. The Sivowright Memorial Fund Is restricted to the provision of capital projects that will enhance the pupils, appreciation of the Arts. The Barfter Muslc Fund is restricted to support the education of children who are gifted in music. -37-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 NOTES TO THE FINANCIAL STATEMENTS De8lgnated Funds These are Funds created for specific purposes. There is no legal restriction on the way in which the funds may be applied. The Flxed A88et Capltsl Fund represents the nel book value of the fixed assets used for operational purposes. 19. P•)VEMENr rffi FUNDS EQOO• 8•l•n¢e It 1 S•pternb•r ¢wlng Ruouru• 2120 R••our¢•• Exp•ndad 8•l•n¢• •t 31 AugY$t 2021 •kn• Trihr• Pr•i•md EThdvwrn•nl GOlF Ln1 CapIlAot T•1, Giftfoi CNr•nFu) TOrrsIe£rFj L•llF RAF F#0, TNIiFu Mlss Webl S¢td•r C1&1, HoBwtslAsuocitty4h AOdilorolco1 Fw ub• Fund ThB RaglrAld Fwd 1Q2,1111 7,531 1,670 1.539 910 1,07Q 91 323 404 290 323 47 29Q 150 443 433 11e.740 57 Un4ppllwl Tol•l R•iuwn 2ndowfflI Genar4 FLrt C&ytsiAccowl Wosw. Glftlor chinF1 Tl HDmby51eerFw Thu D4rbqlLett Fw Th• PAF TwiFin1 iwejt ScholHrFu Z45.682 7.773 92.4S4 6.143 e1Q e23 366 t93 JQ1,270 19,790 991 i.rsq 70Q 7Q P71 ZJ1 Addlbon4 Colts Fund 73 135 86 381 124 93 S3 The RqgirAhl Wood FL*é (81 561 284.503 lJ,386 327 Exp•ndlbÉndQWn1l Tr•Army FoLwdabon 177 31 170 TOTAL ENDOWMENT FUNDS -38-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 NOTES TO THE FINANCIAL STATEMENTS 1 S•pt•rnb•r JI Exp•nd•d 2021 RHtrktsd Tr0 Fur 484 {SDSI 22 247 37 00skn Fwd lQthotonA 56 43 1741 111 othhTrF• TOTAL REBTIIICTED FUNOI ioz Llqud 73 1241 139 200 OOD Cr9•n Fund FId A1ClFU 5B,677 51,419 PoAl•¥¥ 119 11,J261 41.2è1 73 2.822 Qqfi•rnlFund 926 TOTAL UNRE$TIIKTeo pvNo8 24 101•1 TQTALFUIID¥ 71 During the year, £21,000 has been transferred from Unapplied Total Relum Endowment Funds to Unrestricted Funds. £8.000 was tTansferr$d from Unapplied Total Return Endowment Funds to Restricted Funds. £17,000 was tranSferd from Reslricled Funds to Unrestricted Funds. -39-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 NOTE8 TO THE FINANCIAL STATEMENTS PRKII Ye41R MQVEAIENT C•PLIND8 É oDo• at 34 Au9UIt zo20 18Epl•mb•r InGarnlng 2011 RNDurc Exp•nd•d PM••Thtt Endovwm•nt GerxrFund C¥iA£cOl ThE (¥niorcfdldrenFw Thp HDMtyselFuAj Tr¢ D•rl•lLettF RAF Fowdstlonw TrFn 102.105 7.531 1.070 1.5Jg 910 eoo 320 46 1,•70 1,SJ• Cmsfo A¢<rtl¢MI CoAiIFunJ 123 W)Dd Fur loo 4J2 ClhtrFUT1 110,805 135 Ltnippl•d Tothi Gomr•lFW cplWAcc 21J.Q80 14.He 116W61 16561 8,ODS 141.112 TM Homby Stddr iJ8 ij 81 ID r241 RAF TnJF 11 SchukrFd 187 rJ71 70 24 20 Addltsor•l c4$ Fw Fmd 71 129 0Fd 355 4D 18.862 4J 177 TofAL IIIDOIIThEtIYPVNO8 40-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 NOTES TO THE FINANCIAL STATEMENTS BInc• It 31 1 S4pt•mb ¢orning Rviourc Exp•nd•d G•h ¢Lou•BI 20 1,Y? 1281 1.313 120 123 GBairst•HmMuwcd kniirthTrwi• thd¢l•tonA Aoditsond CotsFuTh4 40 01 1581 TOTAL RE>ThTeD IIA4DS 71 1 OMlgnd Fund¥ LI9MdaMet• io• FIMd AWtC•pita Fur 59.907 ,OTT (9.2781 36 Tg1D••nIt•d 80.722 17 728 41.219 Pyn 2.ye T0TALUIIREITrTEDFuNDl $0 JJ 101 TOTIL FUNDS 434 12 o• 411 IY4 21. STATEMENT OF TOTAL RETUIIN ¢ OU0• G•n•r•l Endowry¥Jfit Olh•i Fundi 2021 Gwt TotBlr¢tLynfor pttrtod 7.773 82,454 70,227 12,2771 61 7,911 S.143 S.274 (>oss tolalrétum rlbe potlod Flronc4ng cools h*slmErrf rnan8g6nxnirL)Bt• NeltolalrglLvnfor ar 2,428 77,929 123771 73J Tl,919 79 5,15S 65.332 2,392 Applutton ofknlal reiLTh drj perfod Imgpphed iotal bn1 S¥ptember2020 ikn&pph'Ed total cn31 Awu512021 Pre5et¥Ed vakne at 31 Awu512021 E8•b Total•ndowbrnntvalu•• •tJl Aug¥•t 2021 19.6441 245.582 3QI.27D 1D2,610 15561 1IOA061 3,770 5.957 fj,856 170 19,790 7,531 J17W17 116,717 170 403 41-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 NOTES TO THE FINANCIAL STATEMENTS 22. ALLOCATION OF THE NET ASSETS BETWEEN FUNDS Fixed P40leurr•nt 4tsets Creditors due aftar rnor• tha on•y•ar 2021 Tot•1 EI0¥ent FLDJS 478,950 10,034 145.OODI UJ.914 R8&iricleU FL5 1.595 2,07 GernI Fu¥Js 2,868 Deslgnaled Fundi.. Capital F 8Lrn Fu1 PerBlon Re8eTre gan FLrxI Penllon Liabilty 58,41B 58,119 119 200 159 200 500 18,3251 18,3261 JJ.32S 499014 PRIOR YEAR ALLOCATION OF THE NET ASSETS eETweEN FUND8 Flx•d N•t Gurrgnt Crodltorn du• aft•r mor• th•n on• y••r 2020 Tot•1 EndoTnerQ FLnls 419,507 6.853 145,0001 381,410 Reslrictod Fu1 1,369 2,230 Gereral FLnJ8 925 925 DpsignDled FLn19'. CJpllal Fund Mu8ethi Fur 58,577 68,577 100 100 PemiDn Liabllty 110,3781 110,3781 479 533 8,719 55.370 432,B74 2J. FINANCIAL INSTRUME14T8 £ QQQS Totsl 21121 To£al Z020 Flnardal ay9ets rwaSLred at Brnoth'sed fxst181 FInaal IlabilJes measured al amorlsed ¢0st Ibl 20,24$ 159.5021 17,800 164.7831 39,217 4E.903 lal FI181 a8sets IrKathe cash, tr4de fee debtor5. 0rdebtor&. atcnrd Incorr* ard amounts dfroM MbETr Of1 Ch1819 Hospitsl Foundallongrvup. Ibl FinanslHllabllb"e8 IJe depoults. rert In ad[e, trade olhercrÈdltors. Additional information on financial in61Tuments hèld at fair value a$ investrnenlg 19 set out In Note 11. 42-
CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 NOTES TO THE FINANCIAL ST ATEMENTS PoR YEAR8TAIEMWOF FINACIALACIMnE¥. fflyuv•4 bylund. £OD trl¢t•d Unv•%trlGtod und Totsl Fnd1 COME AND EtIOOilWBYI8 FROM". Alon Ind Iqgqd•i Inve8inwii 2.Q25 2,379 1,7113 8.578 Ch4r114bk7 ICtlI1•• Grinls iee4iV4b 724 Olhir wuie•• 12 TOT•L INCOIIINO •JIDENOOIWIEPllB 8.722 233 Z.08J XPENCIIUREOII". ft•lilng Pund• min•g•rnnl li.Z791 Ch•r&tsbh kI1v1•• Cost¥ al Piomdlnq educthn 12,4e71 19881 11.e151 TOTILÉXPE14C4IURE T (OUTofiNQlfUNDS FROM OPEPATIONI 8EFORETPJtr4BFER¥ ANOIWESTMEtr4T OJJN8 1S771 9.$BO lundi 104 NET INCOFAE •I4ts¢1J4TILINVL(IWI IOUTFLOWII 11,1361 p•#lon •cheffl• TMOVEhlENTIN FUIID8 TO1 funds broughl I1 I Seplqft•r J7P.916 J,891 60.13J TOTIL FUND8 311 43Z 174 43-