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 don*ions 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$lon Christ's Hospital Pension Scheme, a defined benefit scheme for non-leaching staff, was closed lo new members w¥lh effect from 31 March 2005. The liability lor the Scheme continues lo be account8d for in the individual charity financial st8lemenls of Chrisl'g Hospital Foundation as Chnsl's Hospital has 8ccepled the liabilllies ol the Scheme so1￿Y in Its role as thè Trustee of Christ's Hospital Foundation. Contributions lo this scheme are made by both employees and Christ's Hospital. Valuation of Ihts Scheme al 31 August 2021 in accordance wlh FRS 102 showed the deficit on the scheme lo be £8.3 million 12020." £10.4 milllonl. The value of the Scheme Invg$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 Rese￿eS 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 reC￿niseS 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 pro￿85. 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 app￿Ciall0n. 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 s￿ndards) 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 resol1r￿8 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 CoJp0rat￿n 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 IncluS￿n 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, CoTh￿TeD IIA4DS 71 *1 OMlgn*d Fund¥ LI9MdaMet• io• FIMd AWtC•pita Fur 59.907 ,OTT (9.2781 36 Tg*1D••￿nIt•d 80.722 17 728 41.219 Pyn 2.ye T0TALUIIREITr￿TEDFuNDl ￿$0 JJ 101 TOTIL FUNDS 434 12 o• 411 IY4 21. STATEMENT OF TOTAL RETUIIN ¢ OU0• G•n•r•l Endowry¥Jfit Olh•i Fundi 2021 Gwt TotBlr¢tLynfor pttrtod 7.773 82,454 70,227 12,2771 61 7,911 S.143 S.274 (>oss tolalrétum *rlbe potlod Flronc4ng cools h*slmErrf rnan8g6nxnirL)Bt• NeltolalrglLvnfor ￿ ￿ar 2,428 77,929 123771 73J Tl,919 79 5,15S 65.332 2,392 Applutton ofknlal reiLTh d￿r￿j perfod Imgpphed iotal bn1 S¥ptember2020 ikn&pph'Ed total cn31 Awu512021 Pre5et¥Ed vakne at 31 Awu512021 E￿8￿•b￿ Total•ndowbrnntvalu•• •tJl Aug¥•t 2021 19.6441 245.582 3QI.27D 1D2,610 15561 1IOA061 3,770 5.957 fj,856 170 19,790 7,531 J17W17 116,717 170 403 41- CHRIST'S HOSPITAL FOUNDATION YEAR ENDED 31 AUGUST 2021 NOTES TO THE FINANCIAL STATEMENTS 22. ALLOCATION OF THE NET ASSETS BETWEEN FUNDS Fixed P40leurr•nt 4*tsets Creditors due aftar rnor• tha on•y•ar 2021 Tot•1 E￿I0¥￿ent FLDJS 478,950 10,034 145.OODI UJ.914 R8&iricleU FL￿5 1.595 2,07 Ge￿rnI Fu¥Js 2,868 Deslgnaled Fundi.. Capital F￿￿ 8Lrn Fu￿1 PerBlon Re8eTre gan FLrxI Penllon Liabilty 58,41B 58,119 119 200 159 200 500 18,3251 18,3261 JJ.32S 499014 PRIOR YEAR ALLOCATION OF THE NET ASSETS eETweEN FUND8 Flx•d N•t Gurrgnt Crodltorn du• aft•r mor• th•n on• y••r 2020 Tot•1 Endo*TnerQ FLnls 419,507 6.853 145,0001 381,410 Reslrictod Fu￿1 1,369 2,230 Gereral FLnJ8 925 925 DpsignDled FLn19'. CJpllal Fund Mu8ethi Fur 58,577 68,577 100 100 PemiDn Liabllty 110,3781 110,3781 479 533 8,719 55.370 432,B74 2J. FINANCIAL INSTRUME14T8 £ QQQS Totsl 21121 To£al Z020 Flnardal ay9ets rwaSLred at Brnoth'sed fxst181 FIna￿al IlabilJes measured al amorlsed ¢0st Ibl 20,24$ 159.5021 17,800 164.7831 39,217 4E.903 lal FI￿￿181 a8sets IrKathe cash, tr4de fee debtor5. 0￿rdebtor&. atcnrd Incorr* ard amounts d￿froM M￿bETr Of1￿ Ch1819 Hospitsl Foundallongrvup. Ibl FinanslHllabllb"e8 I￿￿Je 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 P￿oR YEAR8TAIEMWOF FIN*ACIALACIMnE¥. fflyuv•4 bylund. £OD trl¢t•d Unv•%trlGtod und Totsl F￿nd1 COME AND EtIOOilWBYI8 FROM". Alon* Ind Iqgqd•i Inve8inwii 2.Q25 2,379 1,7113 8.578 Ch4r114bk7 ICt￿lI1•• 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 kI1v￿1•• 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 I￿1￿ I Seplqft*•r J7P.916 J,891 60.13J TOTIL FUND8 311 43Z 174 43-