CHELTENHAM COLLEGE Council's Report and Financial Statements Year ended 31 August 2024 CHELTENHAM CHELTENHAM CnLI.k.C.E PREP SCFIOOI. Council's Report and Financial Statements Year ended 31 August 2024 Pagelo CHELTENHAM COLLEGE Council's Report and Financial Statements Year ended 31 August 2024 CHE.TENHAM CDLLFG Contents Page Introduction by the President of Council Council Member& Officers and Advisors Annual Rewt of the Council 5-16 Statement of Trustees, responsibilities Independent auditor's Rep)rt to the Trust￿$ of Cheltenham College Consolidated Statement of Financial Activities 17 -21 22-23 Consolidated and College Balance Sheets Consolidated Cashflow Slatement 24 25-26 Notes to the Financial Statements 27-52 Page11 CHELTENHAM COLLEGE Council's Report and Financial Statements Year ended 31 August 2024 CHELTENHAM CTrLLF.Gt Introduction by the President of Council The 2023-24 academic year saw a ftjll year of normality in Virtually all aspects of College life. Our examination cohorts produced some really encoLJraging results, both at GCSE and A Level. Hard-earned examination successes allowed the majority of our pupil leavers to secure places at their first-choice universities whether that be Oxford & Cambridge, Russell Group, top overseas universities, or elsewhere. Rarely can a group of pupils have been so deserving of our admiration for what they have achieved. The attractiveness of Universities fiJrther afield is growing (and our pupils received more offers from overseas than ever before), but many pupils are still seeking to progress in the United Kingdom. We contlnue to look beyond our own classroom walls in our efforts to deliver meaningful public benefit. We have further invested time, energy, and resources into our established partnerships with All Salnts, Academy and with Saint John's Church of England Primary School. Our focus in these partnerships is on broadening opportunity and enriching the experience of pupils- not only at our partner schools, but here at Cheltenham College too. These are partnerships in the true sense with benefit flowing in both dlrections, and we feel very proud about all that we are achieving together. The change in Government following the July electlon will place pressure on our ability to support these partnerships, but we know that our community wlll want to continue In their endeavours to make a difference to society. Completion of the Dewerstone project in 2024/25 will provide opportunities for the College. A new roof on Southwood was delivered over the summer, as well as a comprehensive project on the lower gym. The weather also provided an opportunity to dredge the Prep School lake. As well as supporting the flood defences of Cheltenham, we plan to restore the lake to create a leisure and academic amenity for the Prep pupils. Our overseas partnerships cor)tinue to make good, carefijlly measured progress. Cheltenham MuscaL the first premium UK branded school in Oman, enjoyed a very successful opening in September 2021 and pupil numbers are growing strongly. We have continued to grow our partnership in China, and other programmes are underway which we expect to mature in the 2024125 year. Our ambition is to have up to six overseas schools, the income from which will be steered towards bursaries, enabling pupils to attend Cheltenham College, whose Means might otherwise not allow them to. There is no doubt that there are challenges ahead. The impact of VAT and loss of Mandatory Business Rate Relief will inevitably place additional pressure on fee paying parents and on the College. The Council endeavours to navigate its way through these diffi'culties and while we all expect that some independent schools will close over the coming years, we are confident that Cheltenham College will continue to provide a wonderful education to our pupils. The Council is confident that the fvjture wi15 be very bright ft)r generations of Cheltonians to come. Just as it has been for generations past. er-Nesbit President of the Council 1 May 2025 Page12 CHELTENHAM COLLEGE Council's Report and Financial Statements Year ended 31 August 2024 CHELTENHAM COLIFf•E Council Members, Officers and Advisors Members of the College Council are the trustees of the charity The following served as members of Council during the period from 1 September 2023 to the date of this report. (1) {2) (3) (4) (5) (6) Mr. W J Straker- Nesbit {Presidentl Mr. A H Monro (Retired 31 December 2023) Mr. D Stewart (Deputy President) Mrs. H Allen (Appointed 7 March 2025} Mr. A Barr Mr. B Beardmore-Gray Mr. P Brettell Mr. N Chivers (Appointed 1 September 2024) (Retired 28 March 2025) Mr. C Cooper Mrs. K Dallimore iss. G Elwood Dr. D Flower Ms. E J Hattersley Ms. L Kalindawalo Mrs. D Kelly Ms. C Lehr (Resigned 19 August 20241 Mr. D McNiffe Mr. N Roskilly Mrs. J Sauboorah-Till (Retired 30 November 2024) (Appointed 7 March 2025} Revd. Canon K Wilkinson Mrs. C Willgoss Dr. P Wingfield (Resigned 5 February 2025) (Retired 31 December 2023) {1) Finance, Risk & Development {FRD} committee {2} Audit cornmitt (3) Education committee (4) Welfare & Safeguarding committee (51 Membership & Governance committee {6) Remuneration committee Page13 CHELTENHAM COLLEGE Counal's Report and Financial Statements Year ended 31 August 2024 CHELTENHAM CnLLECDE The President and Deputy President sit in an ex-officio capacity on all Committees of the Council. Mr David Stewart was elected as Deputy President from 1 January 2024 following the retirement of Mr Hugh Monro. During the year the actimties of the Governing Body were carried out through the Council itself and through the Committees shown above. Executlve hArs. N Huggett {MA {Oxon)) Mr. T O'sullivan (LLB (Hons)) Mr. P Attwell (BA MSC) Head of College Head of Preparatory School Bursar Prlnclpal address Bath Road, Cheltenham GL53 7LD Investment manager Quilter Cheviot Limited, Second floor, Three Ternple Quay, Temple Way, Bristol, BS16DZ Independent auditor Crowe U.K. LLP, St. James House, St. James. Square, Cheltenham GL50 3PR Banker Lloyds Bank Flc, 130 High Street Cheltenham GLSO IEW Solidtor Harrison Clark Rickerbys Limited, Ellenl)orough House, Wellington Streec Cheltenham GLS01YD Website e.or Charlty name Cheltenham College and Cheltenham College Preparatory School, also known as Cheltenham College. Page14 CHELTENHAM COLLEGE Counal's Report and Financial Statements Year ended 31 August 2024 CHLLTENHAM cni LE¢+E Annual Report of the Council The Council is pleased to present its Annual Report for the year ended 31 Augusi 2024 under the Charities Act 2011. Status and administrative inforniation Cheltenham College was founded in 1841 and is registered with the Charity Commission under charity number 311720. College operates two schools known as Cheltenham College and Cheltenham College Preparatory School. There is one Governing Body for the two Schools called the Council. Details of the membership of College Council, its executs've officers and professional advisors are given on pages 3 and 4. Structurei governance and manasement Governlng Documents The Charity is governed by the Cheltenham College Act 1894 and the Charities (Cheltenham College) Orders 1976 and 2011. Councll The governance of College is vested in the President and Council. as laid down In the governing documents. Membership of Council is as follows.. - The President and Deputy President elected by Council,. Not fewer than ten and not more than eighteen co-opted members appointed by Council,. Seven members nominated, from time to time, by the Universities of Oxford, Cambridge and another Higher Education institution, the Cheltonian Society, the teaching staff of Cheltenham College and the teaching staff of Cheltenham College Preparatory School. Appolntment and inductlon of Council Members On the occurrence of a vacancy amongst the nominated members of the Council (other than the mernber nominated by the Cheltonian Society) the President shall be responsible, on behalf of the Council, for notifying and entering negotiations with the nominating authority The elections of the members of the Council to be nominated by the teaching staff of either College or the Preparatory School are conducted by the Head or by a member or members of the teaching staff delegated by him, who shall report the methods by which the elections were conducted and their results to the Council. Co-opted members of Council are identified and nominated by the Membership & Committee and elected by Council. All new members of Council receive a comprehensive briefing pack and induction workshop from the Secretary to Council on trusteeship, the workings of College, its policies and objectives. Newly appointed, as well as established Council members, are encouraged to attend training courses, conferences, regulatory updates and other appropriate events in order to continually develop the knowledge and expertise of the goveming body. Page15 CHELTENHAM COLLEGE Council's Report and Financial Statements Year ended 31 August 2024 CHELTENHAM ¢I)LIIGF. Organlsatlonal Management By virtue of The Cheltenham College Act 1894, the Council is responsible for 'the entire management of the concerns and propety of College. and 'may receive, invest, lay out and diswse of all the stocks, effects, funds, money and securities for the benefit of College.. It meets not less than three times each ar. Both the President and Deputy President are ex-officio members of the principal sub-committees Ixjt are not required to chair them. The Finance, Risk & Dlwelopment Cofflmittee {FRD) is chaired by Mr. Alastair Barr. FRD meets not less than fve times a year and sets financial targets for approval by the full Council and monitors results against ch targets. The Committee is also responsible for overseeing risk management, compliance with statutory legislation, and facilities development. The College executive team is responsible for managing the business within the fi'nancial parameters and general policy laid down by Council on the commendation of the FRD. The Audit Committee is chaired by Mr. Chris Cooper and meets at least twice annually to review the annual counts and receive the independent auditor's report. The Education Committee meets termly and is chaired by The Revd. Canon Wilkinson and is a consultative forum in which issues of educational policy, provision and performance are discussed. Ultimate authority lies with the Council, which may, through the PresidenL delegate such authority to the Committee. The Membership & Governance Committee meets once per term and is chaired by NAiss Gillian Ellwwd. Its principal duties include regular review of the composition of Council in terms of its numbers, skills and experience as well as succession planning for retiring members. The Committee also maintains oversight of the governance of Cheltenham College, promoting the adoption and use of accepted best practice based on the Charity Governance Code. The Welfare & Safeguarding Committee meets three times a year and is chaired by Revd. Canon Wilkinson. Its principal duties include the review of policies relating to Child Protection & Safeguarding to ensu compliance with regulatory requirements in College and Prep, and the monitoring of pupil and staff welfare matters, Matters relating to strategic plannir)g sit primarily with the Council, which considers proposals for the development of the School and advises senior management of the strengths and weaknesses of strategic options. The Council may establish ad hoc committees to undertake more detailed planning and appraisal of development proposals. The day-to-day running of the Sch￿lS is delegated to the respective Heads and the Bursar. They are also supported by Cheltenham Executive Committee (CECI (the key management for the purposes of these financial statements) and several other senior management teams spanning the academic, pastoral and operational aspects of the schools. Remuneration Remuneration of the key management personnel is set by the Remuneration Committee, with the policy objective of providing appropriate incentives to encourage enhanced ￿rforManCe and of rewaiding fairly and responsibly individual contributions to College's success. The Remuneration Committee wa5 chaired by Ms. E J Hattersley and meets twice a year, once in the Autumn Term and again in the Summer Terrn. It is essential for College to engage credible professionals to bring sector expertise, significant leadership experience and strong capability to drive inspirational teaching and learning excellence, strong academic Page16 CHELTENHAM COLLEGE Council's Report and Financial Statements Year ended 31 August 2024 CHE.TENHAM Cnl LEeJÉ results. high quality pastoral care, a strong community of pupils and staff, excellent facilitles and sound finances. In the light of this strategy, College's pay policy seeks to: pay the median to upper quartile range for Similar organisations in the UK Independent Schools sector market but not to compete on salaries with the public or private sectors; ensure performance is reviewed and rep)rted to the appropriate Committee on an annual basis,. apply performance related pay elements only where required by the relevant market sector, and monitor Independent School sector salary trends through ISBA, and through participation in surveys such as those for Baines Cutler and Haysmacintyre as required. The appropriateness and relevance of the rernuneration policy is reviewed annually, Including reference to comparisons with other independent schools to ensure that College remains sensitive to the broader issues of pay and employment conditions elsewhere. College aims to recruit, subject to experience, at the lower to medium point within a band, providing scope for rewarding excellence. Delivery of College's charitable vision and purpose is primarily dependent on our key management personnel (with the CEC being the most senior operations committee) and staff costs are the largest single element of Our charitable expenditure. Employment policy College is an equal opportunitses employer. Full and fair consideration is given to job applications from disabled persons and due consideration Is given to their training and employmeni needs. Consultation with employees. or their representatives, has continued at all levels with the aim of taking the views of employees into account when decisions are made that are likely to affect their interests. Employees are made aware of the financial and economic perforrnance of College. Group structure and ￿latIOnShIps At the year end, Cheltenham College had wholly owned active trading subsidiaries, Cheltenham College Services Limited and Cheltenham College International Limited. Cheltenham College SeNices Limited continues to provide corporate letting facilrties, transport and retailing services. Cheltenham College International Limited continues to support partners with franchise arrangements to international schools. Cheltenham College Charitable Trust (CCCT) is an Independent Charity with objects similar to those of Cheltenham College. It holds a number of fiJnds raised for specific activities or purposes and these Include the provision of scholarships. bursaries and prizes. It also holds funds raised for development project5 at Cheltenharn College and accumulates these ￿Jnd5 until released to help finance the projects the fvnds were donated for. Whilst it is managed, and run, as an independent charity, due to the majority of trustees being common to Cheltenham College, its financial statements are consolidated with those of College to comply with FRS 102. The financial performance of each subsidiary is described in note 23. Details on transactions betmeen group companies are also set out in note 23. Cheltenham College maintains membership of appropriate representative bodies with the aim of ensuring familiarity with, and delivery of. the highest educational and pastoral care slandards Page17 CHELTENHAM COLLEGE Council's Report and Financial Statements Year ended 31 August 2024 CHELTENHAM f.nLLF.CIE College also seeks and develops strong relationships with other local schools (both independent and state- maintained) with the clear objective of fvrther widening public access to the benefits our pupils enjoy, whilst at the same time developing in our own pupils, a better understanding of the wider social context in which we operate. I nNestment pollcl and objectives College's investment objectives In relation to funds held in College and In CCCT are to baance the current and fvjture needs by. maintaining {at least) the value of the investments in real terms,. producing a consistent and sustainable amount to support expenditure and, in ￿latiOn to the Fees in Advance Fund, act as asset backing for fijture liabilities. and delivering these objectives within acceptable levels of risk. To meet these objectives. College's investments as a whole are managed to produce capital growth and income, maintaining diversification across a range of asset classes to produce an appropriate balance between risk and return. The investment strategy and policy are monitored by the Finance, Risk and Development sub-committee, as is investment performance for which appropriate asset management sector be￿hMarkS have been determined. In 2006 College made the decision to adopt an ethical investment strategy, restricting investments to exclude any tobacco and armaments providers. All the investments held by College and the Charitable Trust benefited from a good year, with all areas of the portfolio producing varying levels of gr0￿h. The combined realised and unrealised gans during the period, after the reinvestment of income and sale of investments, totalled £601,500 (2023. net loss of £313,(K)O) on an opening portfolio of £6.7 million closing at £7.4 million. Further details are set out In note 13 to the financial statements. The College does not set a target for gains and losses as these are extremely volatile and unpredictable. However, a return on investment target of 2% (£130.000) was budgeted for 2023-24 for College held investments. The actual return was £156,053 and therefore, this target was exceeded. Charity Governance Code The Council is acutely aware of the updated guidance frorn the Charity Commission in relation to the Code and fully supports the core values, principles and disciplines the Code seeks to inculcate into the governance of College. Objects, aims, objective5 and activities The principal objective of College is to provide an excellent academic and broadly based education, In a predominantly boarding environment, for boys and girls frorn the age of three to eighteen In accordance with Christian principles. Within these objectives, College also has to maintain Its heritage endowment of Grade l and11 listed buildings,. various works of art,. artefacts,. books and historical documents relating to College's history, as well as a number of trust ￿ndS held for special purposes in connection with the development of College's facilities, the provision of scholarships, bursaries, prizes and for other educational purposes. Page18 CHELTENHAM COLLEGE Council's Report and Financial Statements Year ended 31 August 2024 CPIELTENklAM cntLFCIF. College has continued to focus on the provision of improved academic performance, improving the quality of the built environment and continuing to widen access to College for pupils for whom an independent educatson would otherwise be unaffordable. Further details are set out below. College welcomes pupils from all backgrounds, who have the. potential to benefit from the education we provide. An individual's econornic status, gender, ethnicity, race, religion or disability do not form part of the assessment process. College Is committed to safeguarding and promoting the welfare of its pupils and expects all staff and volunteers to share this cornmitment. Policy The Council's fundamental policy is to ensure that.. the principal objectives of Cheltenham College and Cheltenham College Preparatory School are met through the proper prowsion of the necessary staff and other resources to the highest possible standards," and a sound financial base is maintained to support these resources and the future development of College. Strategles to achleve the yearfs objectlves Cheltenham College and Cheltenham College Preparatory School continued a value-added approach, r)ot only with the objective of achieving academic excellence but balanced by a strong emphasis on sport music, drama and other co-curricular activities. There was also a cleaf focus on the development of leadership, for both pupils and staff, and social skills together wth the provision of a wide variety of activities, including College's Humanitarian Aid Projects (CHAPS} in Rornania, Kenya and the Shamrock School in Nepal. Both schools continued to conduct adventurous expeditions and international sports and choral tours. Prlnclpal artlvlty College's principal activity remains the advancement of education, and, in this, College has again had a successful year. The combined schools averaged 1,194 pupils (2023: 1,160),. in College 79% of pupils were boarders or day boarders (2023: 81%}, the balance were day pupils. The Prep School continues to be predominantly a day school, with day pupils representsng 89% (2023.. 89%) of the total. Publlc benefit College remains committed to the aim of providing public benefit in accordance with its founding principles. Charity legislation includes a requirement to demonstrate that public benefit for any charitable wrp05e where it had hitherto been presumed in the absence of evidence to the contrary. In this regard, the Council remains committed to giving full and carefijl consideration to the Charity Comrnissii￿.s general guidance on public benefit and confirm that they have complied with their duty under Section 17 of the Charities Act 2011. The awarding of means-tested bursaries is a measurable means of providing public benefit. College takes the view that bursaries awarded to those who would not otherwise be able to afford the fees are importanL Page19 CHELTENHAM COLLEGE Council's Report and Financial Statements Year ended 31 August 2024 CHELTENHAM COLLEfjÈ but not to the exclusion of the much wider benefit that College provides within the community. Those pupils who attend our schools and who receive financial support contribute to the school community in a variety of ways, and so the benefit is not purely to these pupils but to the whole College and. in some cases. to the wider community. During the year College pupils benefited from 46S bursaries, scholarships and other fee reductions, such as discounts to serving members of the armed forces, acros5 both schools. totalling £4.2m (2023.. 506 awards totalling £3.2m). Within this, means-tested awards, based on a sliding scale according to financial circumstances, totalled £1.9m (2023.. £1.8rn), including 8 pupils receiving support of 85% towards fees when scholarship awards are included. In the context of a continuous review of bursaries, the provision of bursaries to pupils who are expected to contribute ￿J11Y to both schools over a broad spectrum of academic and non-acadernic activities remains a key part of College's strategy. Further fee subventions are granted in respect of certain staff children. In addition to bursaries, College has engaged in a number of other activities that provide benefit to the public within College's objectives. College continues to invest in its enhanced partnerships with two local state schools,. College with All Saints, Academy, and the Prep School with Saint John's C of E Primary School. The formal parameters of these partnerships have been codified in MOUS. The scope and depth of these partnerships is being co-ordinated by the Director of Partnerships but the principal focus of both is raising academic attainment for state school pupils. Beyond that immediate focus, the artistic and sporting needs of these pupils is also being addressed, and College is making available support in terms of facilities, coaching and logistical support. In addition, College is closely involved in developing long-term relationships with other schools and charitable organisations. Through these links our aim is to build on a shared vision that makes an outstanding ar)d meaningful difference to our local community. College supports two core partnership endeavours. Firstly, College has established an 'Enhanced Partnership, with All Saints, Academy (Cheltenhaml and this relationship remains at the heart of our partnership work. For example, as they approached their Oxbridge admission, Year 13 pupils from the Academy received advice and interview preparation from College staff. As In previous years, Year11 Pupils continued to receive at College GCSE exam focused tutorial sessions in English, Maths and Physics. The second core partnership endeavour is the Cheltenham Education Partnership (CEPI, an equal partnership combining 12 of Cheltenham's state and independent secondary schools, plus the University of Gloucestershire (fiJll partners), supported by a nurnber of the town's important organisations. Cheltenham Festivals, The Cheltenham Trust, the National Cyber Security Centre, Cheltenham Christian Arts Festival, Gloucestershire County Council, Cheltenham Borough Council and the Diocese of Gloucester (supporting partners). College pupils attend several CEP events and College teachers are responsible for a range of CEP provision. For example, College staff continue to deliver the CEP Latin programme and the CEP Literature Society. College also hosted a very successful session of CEP'S 'Chelt4Change' series. Eighty pupils from 8 schools were involved in this event. Page110 CHELTENHAM COLLEGE Counal's Report and Financial statements Year ended 31 August 2024 CHE.TENHAM cni.LF.eE Other partnership activity with schools in the maintained sector continued to flourish. The kience department organised a Series of Science Lectures. Science Intervenb'on support sessions, as well as the annual 'Chemistry Spectacularf event. College continues to strive to awaken in our pupils an awareness of the social context of the all-round education they receive. The overriding aim is to connect our pupils with communities of disadvantage, deprivation or disability, The Community Action Program (CAP) continues to offer a strong presence within the locality of Cheltenham. College pupils took part in the program in a variety of settings including visits to Care Homes, Schools and Cotswold Riding for the Disabled. Over half of the programme saw pupils volunteering at local Schools - primary, secondary and those for children with special needs. One particular success involved a group of pupils helping in Drama sessions. Another group were tasked with helping young readers to improve their skills - and were even part of an inspection! Pupils based in schools for children with special needs irNtially found the environments daunting but quickly found their feet. They have delighted in seeing how quickly their charges have progressed, which in turn has cemented their desire pursue a career in medicine. College continues to work with local charits'es and educational bodies in our ongoing endeavours to widen public access to the schooling we provide. Our sports facilities, including the Swimming Pool, are made available to local primary schools at minimal cost. At the start of the academic year 2023-24 the new pupil leadership team dected to support the work of Cirencester Housing for Young People (CHYP) as their main charity. Based in Gloucestershire, CHYP'S mission is to find housing and support for homeless young people in Cirencester and across the county. The main fiJndraising event was a whole College Zumbathon which took place on the Cotswold Astro one Sunday morning in October. The annual charity rugby match against Sir Thomas Rich's School took Flace at Kingsholm in November. The two key events in the Spring term were the Valentines Gift Project and the annual charity Netball match. By yearfs end, the total raised for CHYP was in excess of £24,000. Other house fundraising activities, all focused on their adopted chantie5, brought the total amount raised by College pupils to £50,OCY) College continues to support - through its Humanitarian Aid Project Fund Bradet School (Kenya), and Shamrock School (Nepal) The Langa Township Pre-school Trust (Cape Town) has also been a mai?r recipient of fund this year,. over £25,000 has been donated to part-fund a new facility for pre-school children. Intended Impact With the combination of the provision of first-class education, an extensive range of co-curricular activities and the granting of significant bursaries and scholarships, College continues to develop the academic, sporting, artistic and social potential of children from a broad spectrum of financial and social backgrounds. Revlew of achievements and performance for the year College's consistently excellent performance in public examinations was evident this year with 42% of A level exams achieving A*to A grade (2023.. 51%) and 75% A* to B grade {2023'. 78%). College retans its place amongst the top schools in the country for academic performance which. combined with the alded Pagel 11 CHELTENHAM COLLEGE Counal's Report and Financial Statements Year ended 31 August 2024 CHELTENHAM CnLIFC*F. breadth of the educational experience, enables pupils to reach their ￿11 Fotential. At the Prep School, every final year pupil moved to their first-choice senior school with 28 pupils P023= 28) obtaining scholarships and exhibitions at their chosen school. Maintaining a mix of excellent academic achievement and sporting and cultural activities this year remained a key element of our ethos. College has a policy of sport for all and as a result up to five teams per year group represent us in each sport. The'major, sports include rugby, netball, hockey, crickec tennis, racquets and athletics. A broad range of 'minor' sports are also promoted. College gives a high priority to the performing arts. In addition to a strong academic performance across drama and music in public examinations. there are weekly concerts, major music and drama productions, house concerts and group productions, many of which allow a broad participation for pupils across the age range from 8 to 18. Capltsl and other projects Progressing the Dewerstone Grade 11 listed building project was College's priority during 2023-24, with plans to house support service functions during 2024/25 and provide residential accommodation to support teacher recruitment. Other projects included a new roof on Southwood delivered over the summer, as well as a comprehensive project on the lower gym. Electrical and other upgrades were also made to dining facilities during the year. Fundralslng performan Donations received for the year decreased to £298,097 (2023.. £400,236). Donations received were either restricted to a specifi'c use, such as bursaries and various capital projects, or directed to the area of greatest rieed. All donations received are held in the Cheltenham College Charitable Trust (Charity No. 1006429). Cheltenham College's Code of Practice for Fundraising, which is available on the College website, states that: All fundraising for and on behalf of the College is to be undertaken by the Development department. The Director of Development has responsibility for all fundraising. The Director of Development follows the Code of Practice for Fundraising as set out by The Institute of Fundraising which includes policies regarding the protection ofvulnerable people and the wider public from undue pressure. All suggestions and projects requiring fundraising are passed in writs'ng in the first instance to the Bursar, outlining the purpose of the projecL the benefits of the project the estimated costs and the timeframe. All fvndraising priorities, as part of the overall Fundraising strat￿Y, are to be agreed by the Heads, Bur53r, Council and Director of Development. The Development departmenL alongside the Accounts departnEnt, has responsibility for ensuring that all gifts are recorded, additional ber)efits claimed, and donors thanked. It is a requirement of everyone to notify the Development department of any donations received, the amounL the purpose of the gift and the details of the donor, All funds raised for a particular cause must be used for that pa￿CUlar cause. College is fully accountable and as such will report on all monies raised and how those monie5 have been spent. Page112 CHELTENHAM COLLEGE Council's Report and Financial Statements Year ended 31 Ausust 2024 CHELTENHAM CQI.IFi*E Cheltenharn College did not receive any complaints with respect to fiJndraising for the year to 31 August 2024. International operations Building a family of international schools strengthens the profile and reach of the Cheltenham College brand internationally and offers a growing range of opportunities for staff and pupil cooperation and development. We currently have one school operating under the Cheltenham College name and contracts are in place for two further schools to open in Kuala Lumpar and in Italy. Further projects in China, EgypL India and Thailand are at advanced stages of discussion Cheltenham College Muscat Cheltenham Muscat completed its third year of operation in June 2023 and commenced its fourth year in August 2023 with circa 720 pupils. It is the first British branded, co-educational independent school to be established in Oman. The pupil role for 2023-24 comprises 80% Omani and 20% ex-pat students. Cheltenham Prep School hosted a choir visit from our Muscat pupils in the summer. Financial Review Results for the year The group's net income for the year to 31 August 2024 amounted to £1,965,00012023'. £1,120,000). Realised and unrealised Investment gains of £601,000 (2023. losses of £313,000) are included in this figure. The gains on investment do not form part of the core financial planning for College,. excluding these gains College met the financial performance targets set by Council The Sufplus, before gains on investments. was £1,364,CK)0 (2023.. £1,433,000). As a charity, College reinvests all surpluses it generates. Such a surplus will strengthen College's ability to address uncertainty in the sectf and to contsnue to invest in facilities in both schools in the future. Group net assets held as at 31 August 2024 were £74.4 million (2023.. £72.5 million). Our two trading subsidiaries contributed to the above achievements by optimising the use of College's assets and generating trading profits for donation to College as reported in note 23 below. Reserves College does not hold any free reserves,. all operating surpluses are invested in fixed assets and infrastructure to ensure the continued development of College. The general reserve, accumulated since the founding of College has been retained to cover these fixed assets investments, provide working capital and a buffer against fluctuations in income resultant from significant adverse variations in pupil numbers. In the unlikely event of the need to call upon reserves, the level and variety of fixed assets held are such that disposal of an appropnate asset could realise sufficient resources to meet the requirement. The Trustees have reviewed the reserves policy as part of their strategic planning and decided that contswed investment in College's facilities remains essential to ensure continued recruitment of healthy wpil numbers through the provision of excellent facilities in both schools. Page113 CHELTENHAM COLLEGE Coundl's Report and Flnancial Statements Year ended 31 August 2024 CHELTENHAM CnLLFeiE Total consolidated funds at the year-end stood at £74.4 million (2023. £72.5 million) which included unrestricted funds of £67.6 million (2023.. £66.3million). The 'free reserves, at the year-end represented £23.Om in deficit as £90.Om and £663,000 were held in tangible fixed assets and designated fvnds respectively 12023: £22.Om deficit). The negative free rese￿eS are a consequence of the College'5 investment in the capital assets of the school. The Governors are mindfvjl of this position and are looking to make the reserves positive over the longer term. whilst satisfied that the assets attributable to each fijnd are still sufficient to meet their obligations, The Unrestricted Designated Funds of £516,CrfJO (2023. £308,000) are used to hold College Lottery receipts, unused amounts from bequests, and to make provision for fiJture discounts in respect of fees paid in advance. The Lottery element of these funds are used throughout the academic year to subsidise school Id th trips in the Prep and College (including in 2023-24 were the 3 form French tflp, Lower 6 development trip to Kenya, the Netball and Cricket tour of South Africa and the Business Studies trip to Cuba) The Restricted Funds of £2,657,00012023.' £2,405,000) are scholarship income (normally all used in the year of receipt), College's bursary fund that is subscribed to by parents on accepting a place for their children at the Senior School, and monies belonging to the CCCT. The Endowed Funds of £4,196,0(YJ (2023". £3,723,000) consist of Scholarship, Bursary and Prize Funds, which are invested to provide income for scholarships and other awards, which are designed to help widen access to College. Note 26 to the accounts analyses the assets attributable to the various fijnds. These assets are sufficient to meet the Charity's obligations on a fund-by-fund bas1S. The reserve malntained for the Fees in Advance Scheme will continue to provide a strong level of asset backing for longer term liabilities. The restricted and endowed investment reserves are held through College's Scholarship and Endowment Reserves or through CCCT and continue to support College's development as well as providing support for specific pupil grants. Principal risks and uncertainties The Council considers the economic turbulence of recent years and the affordability of fees by parents across the independent sector to be the principal risks faced by College. The Council remains acutely awa of the importance of affordability of fees in maintainin9 pupil numbers. For September 2024, the Council limited fee charges to a 6.0% increase which we believe to be relatively low compared with College's peer group and underlying inflationary pressures during 2022 and 2023. The provision of bursaries remains key plank in College's strategy to make fees affordable. College continues to review the political risks that attach to the independent schools, sector. These include maintenance of charitable status, VAT on fees, and rates relief on principal buildings. Health and safety, and pupil safeguarding are always a fundamental area for risk management and reflect the immense responsibilities College takes regarding both pupils and staff. A robust set of policies is constantly updated and supported by a number of well-established committees which include the senior officers of College. Recruitment of staff is the first step in instilling College's policies in regard to these risks. Further communication of those policies to staff and pupils, and the monitoring of compliance is a vital part of the ongoing risk management plan. Page114 CHELTENHAM COLLEGE Council's Report and Financial Statements Year ended 31 August 2024 CHELTENHAM roLLEI'S_ College seeks to ensure that the requirements of a range of regulatory bodies that oversee elements of College's operations are understood and implemented by staff and Tnaintained throughout the school year. These Include the Independent Schools Inspectorate, the Department for Education and the DfE's National Minimum Standards for boarding schools. College has continued to invest heavily both in terms of IT hardware and IT staff during the last year. This is not only to provide the level of bandwidth and resilience that teachers, operational stsff and pupils require but also to provide stabilty and reliable back-up facilities in the event of an IT infrastructure failure. In addition, the expansion of online e-learning into the pupil body requires a secure and stable IT environment . The loss of Tier 4 Sponsor status, whereby College takes responsibility for a number of overseas pupils, is deemed to be a risk to College's reputation and could result in the loss of a number of overseas pupils. col￿ge'S Director of Compliance and Operations continues to oversee compliance with UK Visas and Immigration requirements. DetailLIJ consideration of risk is delegated to FRD, which is a Council Committee. The risk management process and the resulting report identifies risks, assesses their impact and likelihood and, where necessary, recommends controls to mitigate and monitor those risks. The generic controls used by College to minimise risk include: detailed terms of reference together with formal agerdas for Committee and Board activity, strategic development planning, reviewed annually by FRD,. comprehensive budgeting and management accounting,. established organisational stnJctures and lines of reporting,. formal written policies including clear authorisation and approval levels,. and vetting procedures as required by law for the protection of the vulnerable. The Council regularly review the effectiveness of current plans and strategies for managing all identified major risks for both College and its subsidiaries. Future plans College's current Development Plan has been agreed by Council and is subject to annual review A review of strategy is planned for March 2025. The prlmary future plans for College are set out in the core elements of the Development Plan. These are: to provide a happy and secure pastoral environment, suitable for both day and boarding pupils, in which all pupils are offered opportunities for leadership and service to others,. to provide a stimulating learning environment in which pupils can develop their ac&lemic potential to the fijll,, to offer all pupils the opportunities of experiencing a broad range of intellectual, cultural, sporting and wider community influences," to continue to ensure the campus has a safe and attractive environment for pupils, staff and visitors alike- Page115 CHELTENHAM COLLEGE Counal's Report and Financial Statements Year ended 31 August 2024 CHELTENHAM C(IILCI-.e to provide fi'rst class catering facilities and produce to all pupils and staff,. to continue to upgrade the quality of accommodation for the boarding houses in College and Prep; to increase the capability of College to offer education to children who* parents are Unab￿ to afford full fees,. to provide an enjoyable and appropriately challenging environment within which members of staff may develop their careers, and to ensure that College plays a significant part in the life of the local C¢ynmunity, sharing facilities and seeking local partnerships wherever possible. These airns underpin development plans which have been developed for each of the two schools and so College continues to enhance its ability to provide a first-class education to its pupils. Going concern Co51ege has updated its budget and cashflow forecasts to reflect anticipated demand for pupil places, alongside assessing the key risks facing the independent schools. sector. Most significantly, the government's announcement on 29 July 2024 that independent school fees would be considered vatable supplies with effect from 1 January 2025 under new VAT legislation. College is aware that the increased cost of an independent school education may become unaffordable for many parents, both current and prospective, and is therefore undertaking ongoing monitoring and review of the unfolding larKJscape. Additional financial challenges have arisen with the change in government including loss of charity business rates relief and increases in employers, national insurance contributions from 1 April 2025. These new challenges are being included budget forecasts, with mitigating actions identified. Despite all these challenges, Council believe that College's financial resources and contingency planning are sufficient to ensure the ability of College to continue as a going concern for the foreseeable future and therefore the financial statements have been prepared on this basis. Page116 CHELTENHAM COLLEGE Counal's Report and Financial Statements Year ended 31 August 2024 CHEITENHAM CnlllQF Statement of Trustees. responsibilities The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with apPI￿able law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards). The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and the Group and of the incoming resources and application of resources of the Charity and the Group for that period. In preparing these fi'nancial statements, the Trustees are required to. select suitable accounting policies and then apply them consistently. obseNe the methods and principles in the Charities SORP, make Judgments and estimate5 that are reasonable and prudent,. state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the fi'nancial statements," prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business. The Trustees are responsible for keeping adequate accounting records that are suffi'cient to show and explain the Charity's transactions, disclose with reasonable accuracy at any time the fi'nancial position of the Charity and enable them to ensure that the fi'nancial statements comply with the Charities Act 2011, the Charitie5 (Accounts and Reports) Regulations 2Crf)8 and the provisions of the Charity's constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularib'es. The Annual Report and this Statement of Trustees, responsibilities have been signed on behalf of the Trustees. St Nesbit President of the Council 1 May 2025 Page117 CHELTENHAM COLLEGE Year ended 31 August 2024 Independent Auditorfs Report to the Trnstees of Cheltenham College Opinlon We have audited the financial statements of Cheltenham College for the year ended 31 August 2024 which comprise the Consolidated Staternent of Financial Activities, the Consolidated and Charity Balance Sheets. the Consolidated Cash Flow Statement and notes to the financial statements, including sigrmficant accounting policies. The financia1 reporting framework that has been applied in their preparati'on is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the group's and the parent charity's affairs as at 31 August 2024 and of the group's income and expenditure, for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Charities Att 2011. Basls for opinion We conducted our audit in accordance with International Standards on Auditlng (UK} (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are Independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these reqvirements. We believe that the audit evider£e we have obtained is sufficient and appropriate to provide a basis for our opinion. Condusions relating to going concern In auditing the financial statements, we have concluded that Trustees, use of the going concern basis of accounting in the preparation of the financial statements Is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's or the group's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. Page118 CHELTENHAM COLLEGE Year ended 31 August 2024 CHELTENHAM CnLLFfpE Other information Trustees are responsible for the other informats'on contained within the annual rewrt. The other informats'on comprises the information included In the annual report, other than the fi'nancial statements and our auditor's report thereon. Our opinlon on the fi'nancial statements does not cover the other Information and, except to the extent otherwise explicitly stated in our repor( we do not express arty form of assurance concluslon thereon. Our responsibility is to read the other information and, In doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If. based on the work we have performed, we conclude that there Is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exceptlon We have nothing to report In respect of the followpng matters in relation to which the Charities (Accounts and Reports) Regulations 2Ch38 requires us to report to you if, In our opinion. the information given in the financial statements is inconsistent in any material respect with the Trustees, Report,. or sufficient and proper accounting records have not been kept by the parent charity,. or the financial statements are not in agreement with the accounting records and return5,' or we have not received all the information and explanations we require for our audit. Responsiblllties of Trustees As explained more fully in the Trustees Responsibilities statement, as set out on page 17, Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such Internal control as Trustees determine Is necessary to enable the preparation of financial statements that are free from material misstatemen¢ whetlEr due to fraud ly error, In preparing the financial statements, Trustees are responsible for assessing the group and the parent charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and ugng the going concern basis of accounting unless the Trustees either intend to liquidate tFE charity or to cease operations, or have no realistic alternative but to do so. Audltor's responslbilitles for the audit of the financial statements We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Acts and relevant regulations made or having effect thereundef. Page119 CHELTENHAM COLLEGE Year ended 31 August 2024 CHEITENHAM C(>LLFf4E Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatemenL whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance wth ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these fi'nancial statements. Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance With laws and regulations are set out below. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. Extent to whlch the audit was considered capable of detecting Irregularities, Includlng fraud Irregularities, including fraud, are instances of non-compliance with la￿ and regulatlons. We Identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence suffi'cient and appropriate to provide a basis for our opinion. We obtsined an understanding of the legal and regulatory frameworks Within which the charity and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity's and the group's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent School Standards) Regulations 2014. Auditing standards limit the required audit procedures to identify norrcomplian& with these laws and regulations to enquiry of Trustees and other management and inspection of regulatory and legal correspondence, if any. We identified the greatest risk of material impact on the financial staterrEnts from irregularities, including fraud, to be within bursaries, scholarships and other discounts, the overnde of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Audit Committee about their own identification and assessment of the risks of Irregularities, sample testing Page120 **CHELTENHAM COLLEGE Year ended 31 August 2024** **CHELTENHAM COi Llt:£** on the posting of journals, designing audit procedures over bursaries, scholarships and other discounts, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and Independent Schools Inspectorate and reading minutes of meetings of those charged with governance. Owing to the inherent limitations of an audit there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non­ compliance with laws and regulations (irregularities) is from the events and transactions reflected jn the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non­ compliance with all laws and regulations. ## **Use of our report** This report is made solely to the charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's Trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's Trustees as a body, for our audit work, for thrs report, or for the opinions we have formed. **Crowe U.K.** LLP Statutory Auditor 4th Floor, St James House St James' Square Cheltenham GLSO 3PR 13 May 2025 Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 _of_ the Companies Act 2006. **Page I 21** CHELTENHAM COLLEGE Counal's Report and Financial Statements Year ended 31 August 2024 Consolidated Statement of Financial Activities for the year ended 31 August 2024 Unrestricted Restricted Endowed N(Ae5 Funds Funds nds £'ooo £'ooo £'ooo 2024 Totsl £'o 2023 Total £'ooo Income and endowments from: Charftable actsvities Schcx)I f￿5 receivable AncilL4ry tradin9 income Other tradlng actIv￿eS Other activities Investments Investment income Bank and other Interest Donation% grants and legacies 35,603 2,932 35,603 2.932 32,700 3,030 10 10 25 111 188 61 441 143 92 478 61 138 303 TOtsI Income 38,821 414 39,235 36,468 Expenditure on: Ralsing fvr￿s Non-ancillary trading Flnancing costs Investment managemenl Fundraising and development Totsl dedudble costs {376) 1749) 04) (281) 0,420) 76) (749) (41) (393) P6) 0.559) (373) (611) (38) (362) {1,384) o) 012) 013) (26) Charbtsble activities Education and grant making 8 (36,232) (80) (36,312) {33,651) Totsl expendlture (37,652) 093) (26) (37,871) (35.035) Net Income/(expendlture) before Imiestment galns 1,169 221 (26) 1,364 1,433 Gains/lLossesl on investment5 13 137 43 601 (313) Net Income 1,306 264 395 1,965 1.120 Page122 CHELTENHAM COLLEGE Year ended 31 August 2024 CHELTENHAM Consolidated Statement of Financial Activities for the year ended 31 August 2024 (continued) Unrestrfcted Restricted Endfftd Funds Funds Funds £'ooo £'ooo £'ooo 2024 Totsl £'ooo 2023 Total N(xes Net irthme 1,306 264 395 1.965 1,120 Transfers between funds 24 {66) 02) 78 Net movement In fijnds 1,240 252 473 1,965 1,120 Reconclllation of fijnds Fund balances brought forward at I September 2023 66,341 2,405 3.723 72,469 71,349 Fund balances carrled forward at 31 August 2024 67,581 1657 4,196 74,434 72,469 The notes on pages 27 to $2 form part of these financial statements. Page123 CHELTENHAM COLLEGE Year ended 31 August 2024 CHELTENHAM COLLif•E Balance Sheets as at 31 August 2024 Group 2024 £'ooo College 2024 £'ooo Ncle 2023 £'ooo 2023 £,￿0 Fixed assets Tangible assets Investment in subsidiaries Fees in Advance Scheme invested Securities investments 12 23 13 13 90,019 88,541 90,215 736 2,489 3,453 96,893 88,771 736 2,318 3,041 94,866 2,489 4,942 97,450 2,318 4,363 95.222 Current assets Stc(k Debtors Cash and deposits 14 15 164 1,963 10,122 12,249 116 2,466 1,746 4,328 130 2,554 8,057 10,741 90 2,880 76 3.046 Current Ilabilities (r&￿t0[S payable wlhin one year 16 02,871) (11,0421 03,085) (11,28n Net current (Ilabi16tles) (622) 16,714) (2,344) (8,241) Totsl assets less current Ilabllltles 96,828 88,508 94,549 86,625 Long-temi liabllities Creditors payable after one year Net assets 17 {22,394) 74,434 116,0391 72,469 {22,394) 72.155 {16,0391 70,S86 Represented ty. Endowed fvnds 24 4,196 3,723 3,453 3,042 Restricted fvnds 24 2,657 2,405 1.280 1,203 Unre5trkted funds General and designated reserves 24 67,581 74,434 66,341 72,469 67,422 72,155 66,341 70,586 The surplus, before gains on investments, for the financial year dealt with in the financial statements for College was £1,569,000 (2023.. before losses £1,433,000). These financial stat by: William Straker Ne nts re approved by the Council on l ￿8Y 2025 and were signed on its behalf sKlent of Council) The notes on pages 27 to 52 form part of these financial statements. Page124 CHELTENHAM COLLEGE Year ended 31 August 2024 CHELTENHAM Consolldated Cashflow statement for the year ended 31 August 2024 Nole 2024 2023 £'ooo £,￿)0 £'ooo £'coo Cash flows from operating actiwties Net cash prowded by operating activities la) 4,833 1,386 Cash flows provlded by/(used In) Investing acti￿￿e& Payments for tangible lixed assets Proceeds on sale of tang1t￿e fixed assets Additions to securities Invesiments portfolio Withdrawals from securities invesiments portfol Net cash used in Investir¥J actiwtles {2.718) {1,9711 18 86) (841) 692 876 (2,858) 1,975 (2,063) (677) Cash flows provided by/(used in) finandng actlvFtles: New loans Loan repayments Finance income recewed Bank interest paid 3.250 (1,256) 143 15291 0,250) 182 639 Net cash used In finanang actSvlties 0,707) Fees in advance schemes New fees in advance contracts Rehjnded fees Capital utilised in year 11,902 05) (2,594) 2,802 (65) (2,498) 9,293 239 Increase In cash and cash equlvalents 9,561 1.170 Reconciliauon of net cash flow to rTh)vwnent In net furKIs Increase in cash in the year Cash inflow/(outflow) from movement in debt and hire purchase (b) 9,561 1,170 Ib) 1,250 (1,993) Net bank debt at1 September 2023 00,n2) (9,8891 Net bank balan￿ at 31 August 2024 99 (10,712) The notes on pages 27 to 52 form part of these financia statements. Page125 CHELTENHAM COLLEGE Year ended 31 August 2024 CHEITENHAM CflLLFf*E Consolidated Cashflow statement for the year ending 31 August 2024 (continued) (a) Reconclliation of net Income to net cash flow from operatlng acti1￿tIeS 2024 2023 £'ooo £,￿0 £'ooo £'ooo Net income before investment galns Elimination of non-operating cash flows., Finance income received Bank interest paid Fees in advance fair value adjustment Depreciation charge (Profitl/loss on sale of assets Decrease/lincrease} in stocks Decrease/(increase) in debtors IrKrease/ldecrease) in creditors (excluding fees in advance scheme and bank loans) 1,364 1,433 082) 639 (14) 1,240 (9) (48) 503 1143) 529 (23) 1,242 227 {5) (9351 1,340 (939) 3,469 (4n Net cash Infiow from operations 4,833 (b) Analysis of changes in net debt 31 August 2024 1 September Other non- cash changes 2023 £'ooo Cashflows £'ooo Cash at bank 1,746 8,376 10.122 Overdraft Loans due wilhin 1 year (1,185) {1,163) 1,185 1,250 (1.227) 0,140) Loans and overdraft due within 1 year (2,3481 2.435 11,22n 0.140) Loans due after 1 year {10,110) 1,227 (8,883) Net bank debt including overdraft {10,712) 10,811 Cheltenham College {"College") is a Public Benefit Entity regislered as a charity on 10 June 1965 in EThJland and Wales (number 3117201. Its principal office is Bath Road, Cheltenham GL53 7LD. Page | 26 CHELTENHAM COLLEGE Year ended 31 August 2024 CHELTENHAM rni.LS.¢vF. l. Principal Accounting Policies T1￿ financial statements have been prepared in accordance with the Financial Repcrting Siandard applicable in the UK and Republic of Ireland (FRS 102), the Charrties Act 2011 and the Statement ol Recommenthd Practice (the Charities SORP {FRS 102)) applicable io charities preparing their accounts in accordance with the Financral Reporting Standard applicable In the UK and Republic of Ireland (FRS 102) - effective l January 2019. The financial statements have been prepared to give a 'lrue and fair, view and have departed from the CharilES (Accounts and Re￿rts} Regulations 2008 only to the extent required to provide a 'true fair VEW,. This departure has involved following Accounting and Reporting for Charities that prepare their accounts in accordance with the Financial Reporting Standard applicable In ihe UK and Republic of Ireland (FRS102) Issued on 16 July 2015 rather than the Accounting and RepC￿ing by Charilie5: Statemeni of RecommencÈd PractKe effective from 1 April 2005 which has since been withdrawn. (a) Basls of Consolidatlon The consolidated Statement of Financial Activities and 8alance Sheet Include the financial statements ol Cheltenham College and Its wholly owned trading subsid￿rIes. Cheltenham College se￿￿(es Limiled and Cheltenham College International Limited. Cheltenham College Charitable Trust Is an Independently run charily. The charrty is consolidated into College order to comply with FRS 102 Section 9. College has taken advantage of the exemption available to a qualifying entity in FRS 102 from the requirement io presenl a charity only Cash Flow Statement within the consolKlat&l financial stalements. (b) GoirKJ Concern Hamng reviewed the fund￿9 facllitles avallable to the Group together ￿th the expected ￿gI￿ng demand for places and the Group's future projected cash flows, the Council have a reasonable expectation that the Group has adequate resources to continue its actwities for the foreseeable future and consider that there were no material uncertainties over the Group's fi'nanclal Viability Accordingly. they also coniinue to adoFX the gong concern basis in preparing the financial statements as outlined in the Statement of Trustees. Responsibilities on page 17. The Council have uThJertaken detailed planning and forecasting and continue to clo*ly moniior the key nsks Impacting the independent schools, sector. College has updated its budget and cashflow forecasts to reflect anticipated demand fot pupil places, aloTrJside assessing the key risks facing the Independent schools, secior. Most significantly, the government's ann￿nCernent or129 July 2024 that independent fees would be con&dered vatable supplies with effect from 1 January 202S under new VAT legislation. College is aware that the increased cost of an independent school education may become unaffordable for many parents, both current and prospeclive. and is therefore undertaking ongoing monitoring and review of the unfolding landscape. Additional financial challenges have ansen with Ihe change in government including loss of charity business rates rel￿f and increases in employers, nalional insurance contributions from l April 2025, These new challenges are being included budget forecasts, wilh miligating actions identified. P&36127 CHELTENHAM COLLEGE Year ended 31 August 2024 CHELTENHAM Cnl.LF.f*F Desprte all these challeThJes, Council believe that College's financial resources and contingency planning are sufficient to ensure the ability of College to continue as a going concern for the foreseeable future and therefore the financial slatements Fwve been prepared on this basis. (c) Fees Recefvable Fees receivable consists of charges billed for fees, b)ard and tuition for the Schocl less bursaries and allowances. They are accounted for In the period in which the setvices are provided. Fees received for education to be provided iti future years are carfied forward as deferred income. (d) Trading Actlvitles Trading inccme comprises the trading activities of College and the subsidiaries and is credited to ihe Statement of Fina￿￿1 Activities on a receivable's basis. (e) Donatlons, Grants and Legacles Donations, grants and legacies are recognised in the financial statements when the Group has entitlement to the fvnds, any performance conditions attached to the items of income have been met, il is pyobable that the income will be received, and the amount can be measured reliably. Legacies are recognised and credited directly to the statemeni of financial activities based on the earlier of settlement of the estaie and issue of the Estate Accounts. or receipt cl the rrK)nie& (fj Expendrture Expenditure Is included in ihe Statement of Financial Activities on an accruals basis. Overheads and Ot￿r Costs not directty attributable to particular functional activity categories are apportioned over relevant categories on the basis cl management estimates of the amount attributable io that activity Iri the year, either by reference to sfaff time or space occupied, as appropriate. The Irrecoverable element of VAT is included with the item of expense to which rt relates. Costs of generating funds includes all staffing and fundraising costs. Charitable activity expenses are allc(aied io functlonal groups on a direct cost basis or apportioned on a staff time basis. Goverr)ance costs are included in charitable expenditure and comprise the costs of running College including stralegic planning for its future development, also external audit, any legal advice for the Council, and all the costs of complying with conslitutional and statutory requirements, such as the costs of Council meetings and of preparing statutory financial statements and satisfying public accountability. (g) Pension Scheme ArrarMJements College is involved with a numkEr of pension schemes for its employees. Cheltenham College contributes to the Teachers, Pension Defi'ned Benefit Scheme at rates set by the Scheme Actuary and advised to College by the Scheme Administrator. The Scheme is a multi-employer pensiofb scheme, and it is not possible to identify the asseis and liabilities of the Scheme, which are attributable to Coll￿. In accordance wlh FRS 102 Section 28.11 the Scheme is accounted for as a defined contribution scheme and contributions are &counted for when advised as due by the Scheme Administrator. Other staff have the option of joining a defined contribution scheme operaied by an insurat*e company College and members of staff pay fixed percentages of salaries to the insurance company. College's contribjtions are charged In the Statement of Financial Activities as they fall due. Page128 CHELTENHAM COLLEGE Year ended 31 August 2024 CHE,TENHAM COLLFtsf (h) Fund Accountlng Details and the nature and purpose of each fund is set oul withirb the Investment policy and oty'ectives on page 8 of the Annual Report of the Council. Funds held for the general purpose of College are held as unrestricted funds. Those held by College for specific purposes (xitside normal operations s￿h as College lottery, beqLJests a￿1 the Tinson Hardship Fund are held as designated funds and set aside by the Trustees. Those subject to specific wishes of the donofs are included wthin the relevant restritted or endowed fijnds. Ci) Tangible Flxed Assets The cost of tangible fixed assets is their purchase cost, logether wilh any incidental costs of acquisition and is subjed to a de-minimis limit of £l,O(JJ. Freehold land and buildings Include original cost and subsequenl aherations and addiions. The cost of land and buildings includes interest paid on specific relaied borrowings dunng the consrructhjn peric4J. O) Depredatlon Depreciabon is calculated on a straight-line basis to write off the cost, less estimated residual value, of fixed assets over their estimated useful lives as follows.. Freehold buildings Furniture & equipment Boilers Computers & electronic equipment Cars Other motor vehicles 1% - 20% on cost 4% - 33% on cost, based on life expeciancy 10% on cost ]￿ - 50% on cost 25% on cost 10% - 50% on cost Depreciation commences in the year of acquisition or when the asset is Exought Into use and as a result assets under construction are not depreciated. College's buildings have to be maintained In good working order, wrth many having listed buildirvJ status. Most of these buildings are therelore considered to have an expected useful h'fe In excess of one hundred years. In accordance with FRS 102 Section 27.7 the buildings are tested for Impairment annually, because their expected useful life exceeds 50 years. College. In determining the value ot the buildings, has based its consideration on the service potenti31 of the assets to further their charitable objectives. Depreciation on tI￿se buildings r)ot already being depreciated commenced in September 2000 at a rate of not less than 1% based on their life expectancy. Land is not depreciated. (k) Investmtrbts Investment in subsidiaries is stated at cost Listed investments are reported at their fair values at the balance sheet date based on their quoted markei prices. Gains and losses arising on investment assets are disclosed separately in the Statement of Financial Activrties thich includes realised gains or losses where the Investments have been sold and unrealised where they are Siill held al the ￿lance sheet date. In both cases the gain or k)ss is calculated with regard to the market value at the beginning of the year. or its cost if purchased during the year. O) Stock St￿k is valued at the lower of cost and net realisable value. after due alli)wance for obsolete and slow-moving rtems. Cost is deh'ned as the average cost of finished gcx)ds and raw materials including transport and hty)ding costs. Net realisable value is based ￿ estimated *lling price less further costs expected to be incurred pricx to ￿s￿)SaI. Page129 CHELTENHAM COLLEGE Year ended 31 August 2024 CHELTENHAM ¢fiLLSG (m) Debtors stK)rt lerm debtors are measured at transadion price, less impairment. Details of these h"nancial assets are set In nc¢e 15. (n) Cash and Cash Equivalents Cash is represented by cash in hand and deposits with financial Institutions. (o) Credltors Shcxt term creditors are inilially measured at tlki trans&tion Pfice. Oetails of ihese financial liabilities are set in notes l& 17 and 18 below. Ip) Rnanclal Instruments 8asic financial instruments are initially recc*Jnised at transaction value and subsequently measured at their settlement value with the exception of Investments and the complex fees in advance scheme, which are held at fair value, Flnancial assets measured at their settlement value comprise cash, trade and fee debtors, group and other debtors and accrued income. See note IS for further details. Financial liabilities measured at their settlement value comprise trade creditors, bank loans and overdrafts, group and other creditors, and accruals. See notes 16, 17 and 20 for further details. College offered an Inflation free fees in advance scheme as deKribed in note 19. The liability recognised in respect of this scheme is considered to be a non-basic financial instrument and has therefore been classified as a financial liability measured at fair value through profit or loss. (q) Recognltlon of Liabllitles Liabilities are reco9nised once there is a legal or construciive obligation that commits College to the obligation. (r) Fees in Advance Under the current FIA scheme, which was introduced in July 2015, a fee payer may enter into a contract to pay Colege in advance for fixed contributions towards the tuition fees for a period agreed w]th College. These contributions g￿e rise to a fixed discount on future fees. The discount arising on the contributior)s is charged to the Statement of Financial Activities on a yeai-by-year basis. In the event of a parent withdrawing their capital sum from the dd FIA scheme, interest arlses on the un-drawn balar￿e at 1% below the bank base rate. Any such interest is disclosed as a potential liability under the scheme. (5) Judgments in applying Accounting Policies and Key Sources of EstimatSon Uncertainty Estimates and judgments are continually evaluated and are based on histcfKal experience and other facto￿ including expectations of future evenls that are I￿lIeved to be reasonable under the orcumstances. Page130 CHELTENHAM COLLEGE Year ended 31 August 2024 CHFITENHAM CnllF¥S O) Usefvl economic lives of tsngible assets The annval depreciatton charge for the tanglble assets is sensitive to changes in Ihe esiimated useful economic lives and residual values of the assets. The useful economic INes and residual values are re-assessed annually. They are amended when necessary to reflect curfent estimates, based on technologKal advancement, future investments, economic utili5ation and the physical condition of the assets. See note 12 fcy the Car￿n9 amount of the fixed assets and note 10.) for the useful lives for each class of assets. (li) Impalm)ent of debtors The group makes an estimate of the recoverable value of fee and other debtors. When assessing Impairment of fee and other debtors. management considers factors Including the current credit rating of the debiof, the ageing prOr￿e of debtors and historical experience. See note 15 for the net carrying amount of ihe debtors. (iii) Fees In advan￿ Scheme As set out in notes 18 and 19 the Iiabililies of one of the e￿ant Fees in Advance Schemes was cbsed foi new Lxjsiness May 2015. 2. Charitable activities- Fees receivable 2024 2023 Fees receivable conslst of. School fees Less.. Total Khdarships and buTsaries 39,930 36,896 (4,406) (4,304) 35,524 32.592 Add back.. 8ufsaries and other awards paid for by restricted funds 79 108 32.700 A total of 467 awards including scholarships, bursaries and other awards were in place and allocated to P￿￿'1S acfOSS both schools in year to 31 August 202412023: 376). Within this means-tested t￿r$ar4eS totalling £1.95 million were granted (2023. £1.67 million) 3. Ancillary Trading income 2024 £'ooo 2023 Extras and trips Lettings and oiher revenue Entrance and registration fees 1.084 1,670 178 1,294 1,528 208 2,932 3,030 Page131 CHELTENHAM COLLECE Year ended 31 Ausust 2024 CHELTENHAM ¢tsI.LÈGÉ 4. Other trading activities 2024 £'ooo 2023 Other activities.. Profit on sale of assets Oiher income 21 10 25 5. Investment Incorne Unrestrirted Restrlcted Endowed Totsl 2024 £'ooo Total 2023 £'ooo £'ooo £'o Equities 114 188 143 2023 54 89 143 6. Bank and other interest income UnrestrScted Restrlcted Endowed Total 2024 £'ooo Total 2023 £'ooo £'ooo £'ooo £'o(KJ Interest on overdue fees and other charges 61 61 7. Donations, grants and lesacies Unrestrfcted Restricted Endowed Totsl 2024 £'ooo Total 2023 £'ooo £'ooo £'ooo £'ooo Grants to Group for Bursaries from.. Cdlege Lottery Scheme Donations and legacies 119 119 19 303 322 370 138 303 441 478 The Donations. grants and legacies received during 2022123 totalling £478,000 included £118,000 unrestricled furKIs and £360,000 of iestiirted funds. Page132 CHELTENHAM COLLEGE Year ended 31 August 2024 CHELTENHAM CnLLSi*S. 8. Analysis of Expenditure (a) Totsl expendlture Staff costs (note 11) Depreclatlon (note 12) £'ooo Other Totsl 2024 £.￿)0 Total 2023 £'oco £'(K)O Expendlture on ralslng fvnds Non-ancillary tradlng Financing costs (note 9) Investment managemeiil Fundraising and development 11 365 749 41 376 749 41 373 611 38 179 214 393 362 Totsi costs of ralslng fvnds 179 11 1,369 1,559 1.384 Charftable expeThglture Education and grant maklng Teaching Welfare Premises Support costs of schcoling CThernance costs 16,311 4,178 1,299 2,398 191 213 3,658 1,744 2,437 2,578 99 20,182 5,922 4,751 4,977 290 18,865 5,688 5.400 3.302 218 1,015 Grants, awards and prizes (note 8lb)I 190 190 178 Totsl charltsb 24,377 1,229 10,706 36,312 33,651 Totsl expended 24,556 1,240 12,075 37,8n 35,035 Governance costs consist of 15% of ihe salary costs of both Heads, 25% of the Bursar, Deputy Bursaf and Th'rector of Finance. The other governance costs are the audit fee, governance legal costs and Councl members, expenses. See note 8(c) for further details. (b) Grants award5 and prlzes 2024 £'(M)O 2023 £'ocM) From Restrlcted FurKJs: Bursaries and other granls and awards From Unrestricted Funds: Prizes and leaviTrJ awards 109 78 1(K) 190 178 P8ge133 CHELTENHAM COLLEGE Year ended 31 August 2024 CHELTENHAM C()LLF.GE 8. Analysis of Expenditure (continued) 2024 2023 £'ooo (c) Other govemance included above: Remuneration paid to auditor= for audit services for audit seivsces (prior year) for taxation and VAT (included in SupFK)rt costs of Schooling) for Teachers Pension retums Council expenses Reimbursement of personal expenses to Council 23 18 32 2S 59 Travel expenses were reclaimed by 4 members (2023.. 5) of the Council in relation to attendance at Council meetings, 9. Financing costs 2024 £'ooo 2023 Fees in Athance debt-financing Cost Release of fair value provision for Fees in Advance Bank and loan interest 124 04) 639 105 (23) 529 749 611 10. Taxation College is a regislered charity and as such is entitled to certain tax exemptions on income and profiis from investments and surpluses on any tradiro activities carried on in furtherance of College's primary objectives if these profi'ts and surpluses are applied solely for charitable purposes. Page134 CHELTENHAM COLLEGE Year ended 31 August 2024 CTrI£,TENHAM 11. Staff costs and related party transactions 2024 2023 The aggregate payroll costs for the year were as fdlows., Wages and salaries Social security costs Other pension costs (note 22) Life assurance cosls 19,682 1,757 3,086 31 17.847 1,622 2.618 38 22,125 None of the Governors received any remuneraiion or other benefits from College or from any connected bcdy. The key management for the purposes of ihe analysis below re￿esentS the five members (2023.. fwe) of College ExecvtNe Committee ICECI currently comprising the Heads of both schools, Ihe Bursar, Ihe Dewty Head Pasioral of College and one of the Deputy Heads of the Prep. The total employee benefits of those personnel sitting on CEC while employed by College. Including employers, National Insurance and pensiiMs ((￿ts, wère.. 2024 £'OLK) 2023 Aggregate employee-benefits of the CEC.. 1,031 961 2024 Number of higher paid employees (excludlng National Insurance and Penslon) including the CEC, In bands of: £60,001 to £70,000 £70,001 to £80,(M)O £80.001 to £90,QM)O £90,Crf)I to £100,(X)O £140,001 to £1SO.OCK) £150,001 to £160,0(X) £160,CK)I to £170,000 £190,001 to £200,(K)O £220,001 to £230,000 £230,001 to £240,000 2023 number Number 28 14 50 30 Page135 CHELTENHAM COLLEGE Year ended 31 August 2024 CHELTENHAM COLLF.4iE 11. Staff Costs and related party transactions (continued) 2024 2023 number The number with retirement benefits accruing in Defined Contribution schemes.. of which the contributic￿5 amounted to (£OOO's) number 15 196 63 in Defined Benefit schemes- of which the contributions aMC￿nted to (£OOO's) 28 585 25 468 in Defined Contribution/ Be[￿fit schemer. of which the contributions amounted to (£OOO's) 109 The 7 slaff wilhin the Defined Contribution/Defined Benefit category has arisen followiro an in year change between schernes, with effect from April 2024. The average number of College's employees duiing the year was as follows.. 2024 Number 343 133 53 100 17 2023 number Teachlng Welfare Premises Support Other actwities 332 120 so 107 16 646 625 The a￿rage number of College's full lime equivalent employees during the year was as follows.. 2024 number 223 81 31 58 2023 Number 215 81 32 70 Teaching Welfare Premises Support 393 398 Durwig the year termination payments were £nil {2023: £49,000). Page136 CHELTENHAM COLLEGE Year ended 31 August 2024 CHELTFNHAM C(gLLI&I 12. Tangible fixed assets Group Freehold Assets under Fumiture & LaThd & Construction EqLlpment Buildlngs Motor Vehicles £'ooo £'(K)O £'ooo £'O(M) C05t At I September 2023 Transfers Additions Disposals 93,456 441 277 9.617 173 K13,523 (441) 1,990 n7 (63) 11 2,718 (89) At 31 August 2024 93,897 1,826 10,271 158 106,152 Depreclatlon At I September 2023 Charge for the year Disposals 8,182 591 6,684 633 (63) 116 16 {26) 14.982 1240 (89) At 31 August 2024 8,773 7,254 106 16,133 Net book value At 31 August 2024 85,124 1,826 3,017 90,019 Al 31 August 2023 85.274 277 2,933 57 88,541 Page137 CHELTENHAM COLLEGE Year ended 31 August 2024 CHEITENHAM Cnl.lSf•E 12. Tangible fixed assets (continued) College F￿ehOld Assets under Fumlture & Land & Construction Equipment Buildings Motor Vehlcles Totsl £,￿0 £'ooo £'ooo £'ooo £'ooo At 1 September 2023 Transfers Additions Disposals 93.769 277 (441) 1,990 9,182 200 103.428 677 11 P6) 1678 (33) At 31 August 2024 94,￿0 1,826 9,852 185 106,073 Depredatlon At 1 September 2023 Charge for the year Disposals 8.245 $96 6.271 622 141 16 (26) 14,657 1,234 (33) At 31 August 2024 8,841 6,886 131 15,858 Net txx)k value At 31 August 2024 85,369 1,826 2,966 54 90.215 At 31 August 2023 85,524 277 2,911 59 88,111 College holds no 'heritage assets, as defined by FRS 102 as such assets are employed in Operati(￿al use. Page138 CHELTENHAM COLLEGE Year ended 31 Ausust 2024 CHELTENHAM ¢nl.LFl*E 13. Securities Investmenls Fees in advance Investments 2024 Scholarship and Trust Investffthts 2024 2023 2023 Gr(MJp investments At I SeptemLRr 2023 Net dividends Investment management fees Net gains/ Accruals Amounts ckne io subsidiary companies 1,140 615 4,252 405 2,348 588 3,458 627 435 370 2,371 17 828 1.140 615 4,252 379 433 560 4,340 31 941 394 2,348 588 3.458 616 413 354 2,371 17 753 369 576 4,340 31 1,064 12,871 11.042 13,085 11,287 The amount owed to subsidiaries is repayable on demand. 17. Creditors: amounts falling due after more than one year College & Group 2024 2023 £'ooo £'ooo Deposiis from parents Fee5 In Advance Schemes (note 18) Fees in Advance Scheme - Fair value (note18) Bank loans (note 20) 3,172 10,327 12 8,883 2,886 3.003 40 K),110 22,394 16.039 Deposits from parents are received by College ai the time of final acceptance of a place, These deposits we returned at the end of the term in which the pupil leaves College or Prep. Deposits for those pupils who College are aware are leaving, primarily Upper College leavers, are treated as due within one year. Page141 CHELTENHAM COLLEGE Year ended 31 August 2024 CHE.TENHAM CnLL£G 18. Fees in advance schemes College has lobilities arising frcxn two separate Fees in advance (FIA) schemes. One of these schemes (the Closed Scheme) allowed Ihe fee payer to fix future fees at the fee rates applicable at the time of entering into a contract. This scheme closed to new business in May 2015 albeit certain contracts remain. The financial obligations arlsing from the Closed Scheme FIA contracts are deemed under FRS 102 to arise from being a 'complex financial instrument,. Further details for the accounting of these obligations are set out in note 19. Under the new FIA scheme which was Introduced In July 2015, a fee payer may enter into a contract to pay Cdlege In athance for fixed contributions towards the tution fees for a period agr*d with Cdlege. These contributions give rise to a fi'xed d6count on future fees. The money may be returned subject to specth'c ((K)dIt￿n5 on the receipt of notice within no more than ￿ days, Assuming pupils will reman in College, fees in advance under both schemes will be applied as follows: 2024 £'ooo 4340 31 4,3n 2023 £'o(y) 2,371 17 2.388 Due within one year Adjustment for fair value due in one year Withln one to two years Within two to fwe years After five years Adjustment for fair value due in more than one year 3,360 5,704 1,263 12 10,339 1,130 1,654 219 40 3,043 Balance at 31 August 2024 14,nO 5,431 Summary of movements in liability 2024 £'ooo 2023 £'ooo Balance at 1 September 2023 New contracts Release of fair value provision Repayments Amounts used to pay fees S.431 11,902 04) 05) (2,594) 5,215 2.802 (23) (65) (2,4981 Balance at 31 August 2024 14,no 5.431 Page142 CHELTENHAM COLLEGE Year ended 31 August 2024 CHELTENHAM CnLLll•f. 19. Fees in Advance Scherne - Complex financial instrument 2024 £'ooo 128 (22) 07) 2023 Closed FIA scheme liabilrty {opening balance) Transfer to fee Income before finance charge Revenue foregone (finance charge) Refunds to parents 225 138) (20) (391 Closed FIA scheme liabi&ty before future finance charge 89 128 Present value of future finance charges Due in one ye Due after one year 31 12 17 40 Fair value of full liability grossed up for future finance charges 132 185 The faw value of the Closed FIA Scheme liability reflects the presenl value of the future expected fee income. where the discajnt rate used represents the financial effect of ihe expected fee increases forgone spread over the ierm of the arrangement. This fair value has been estimated by allocating the esiimat&l ex￿ted future fee increases over the arrangement term on a straight-line basis. These estimated expected future fee Increases are reviewed and revised where appropriate on an anmal basis. At the year-end the annualised expected future fee increase over the next two years Is calculated on an average rate of 4.45%. In the view of the Trustees this approach results in a carrying value which is materially con5￿tent with that which would be generated by a Inore detailed fair value calculation. There were no impairment losses charged to fi'nancial assets measured at amortised cost in the year. In the event of a request for a refund by all remainin9 participants in the Closed Scheme as at 31 August 2024. no accrued interest will payable. calculaled on the basis of a discount to prevailing bank base rate, over and above ihe capital payments received of £89,CQO (2023. £128,000). 20. Loans & Overdraft An analysis of loans and overdrafts is below. Colege & Group 2024 2023 Bank Loans Due within one year 1,140 2,348 Due between one and two years CXJe between two and five years Due after five years 1.057 1.684 6,142 1,151 2,176 6,783 Cxje after fflore than one year 8.883 10,110 Totsl bank k￿nS (excludiNJ cash) K).023 12,458 Page143 CHELTENHAM COLLEGE Year ended 31 August 2024 CHELTENHAM Cf¥l.Ll.G& 20. Loans & Overdraft (continued) College bank loans as well as any overdrafts are secured by fixed charges over specific freehold land and ￿lIdIng assets. The Bank also has a firk3ncial covenant requiring that College's consolidated net incoming resources before bank interest paid. depreciation, amortisation and corporation tax paid is noi less than 125% of the capilal repayments due on its structured loan facilities and the bank interest paKJ in the financial year. In addition, a secunty covenant requires that total borrowings do not exceed 70% of the value of all propety. 21. Financial Instruments An analysis of financial ￿Struments, as defined under FRS 102, is below.. Group College 2024 2023 £'ooo £'ooo 2024 £'ooo 2023 £'OCM) Fina(Kial assets measured at fair value 7,308 6.5 5,846 5.224 Finar(ial assets held at fair value irKlude assets held as investments. 22. Pensions The Colege participates in the Teachers, Pension Scheme ("the TPS.) for its teaching slaff. The pension charge for the Far includes contritrKtions payable to the TPS of £1.80 million 12023., £1.87 million) and at the year-end £205,134 {2023'. £nil) was accfued In respect of contrlbutlons to this Kheme. The TPS is an unfunded mulli-employer defined benefits pension scheme govemed by The Teachers. Penslons Regulations 2010 (as amended) and The Teachers, Pension Scheme Regulations 2014 (as amended). Members contribute on a "pay as YOJ go. basis with contributions from members and the employer being credited to the Exchequer. Retirement arKI other pension benefits are paid by public funds provided by Parliament. The employer contr'bution rate is set by the Secretary of State followlng scheme valuations undertaken by the Government Actuary's Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2020 and the Vahjatlon Report was published in October 2023. The latest valuation showed total sche￿￿ liabilitEs of £262,000 mill'on arKJ notA)nal assets of £222,200 million, giving a notional past service deficit of £39,8CKI million. FollOw￿g the Mccbud judgement, the remedy proposed that when benefits become payable, eligible members can select to receive them from either the reformed or legacy schemes for the period 1 April 2015 to 31 March 2022. The actuarEs have assuined that members are likely to choose the option that provides them w'rth the greater beneffts, and in preparing the 2020 valuation has valued the 'greater value. benefits for groups of relevant members. The employer contribution rate for the TPS is 28 6%. and empl(ryers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 28.68%. Ur)der the definitions set out in FRS 102, the TPS is an unfunded mulli-employer pension scheme. The School is unable to dentify rts share of the underlying assets and liabilities of the plan. Accordingly, the School has taen advantage of the exemption in FRS102 and has accounied for its contribLJtions to the scheme as if it were a defined conlribution scheme. Page | 44 CHELTENHAM COLLEGE Year ended 31 August 2024 CHELTENHAM cniiifj College closed the TPS for new teaching staff Joining from 1 September 2022 and feplaced this with a dehned contribution scheme. Employer contributions to this scheme WLYe £693,544. (2023: £221,932) For non-teaching slaff. in addition to auto-enrolment, College also runs a defined contributKJn scheme. The cost for the year iepresents Ihe schoc4's contribuiions to the scheme including auto-enrolfflent of £587,609 {2023.' £526,000) 23. Subsidiaries To better reflect the contribution of the companies within the Cheltenham College group, it has been deemed appropriate to recharge a number of costs directly attiibutable to each subs￿18ry but paid for or charged into Cheltenham College. These costs primarity consist of three categories. The individual salaries or a propOrt￿n of the salaries of certain irhJivKluals, the depreciation charge incurred by College of assets used by a subsidiary and, thirdly, the utility Costs borne by College for buildings used by a subsidiary. Cheltenham College Services Limited (company number 028728041 is a wholly owned trading sUbsid￿ry of Cheltenham College, As at 31 August 2024 CCSL had total nel assets of £751,11812023.' £739,997) CCSL'S revenue for the period was £734,154 (2023.. £709,040). A charge of £159,60S <2023.. £176,5Crf)) for a proportion of College's Sports Centre staff costs relatin9 to aclivities outside those provided to College and its pupils, as well as a charge for management and accounting services. A charge of £gJ,149 (2023.. £184,500) for a share of depreciation of the Sports Centre's land and buildings and sports equipment and for the ulility costs for lighting and heating the Sports Centre. The gift aKI donation made to Cheltenham College as at 31 August 2024 was £162,188. (2023.. £64,641). At the balance sh*t date, CCSL owed Cheltenham College £169,90012023'. £195,673 Cheltenham College owed CCSL), Cheltenham College International Limited (company number 112469051 Is a wholly owned trading subsidiary of Cheltenham College. A charge of £88,405 (2023: £88,4(hJ) to cover the salary costs of staff directly invoSved promoting Coltege's overseas interests as well as a charge for management and accounting semces. £132,591 (2023.. £247,591) profit was generated by CCIL dufing the period 2023-24 and £132,591 (2023.. £236,183) was gifted to Cheltenham College. At the balance sheet date, CCIL owed £472,538 (2023. £440.736) to C1￿1tenhaM College. The net assets of CCIL at the year-end are £1. Cheltenham College Charitable Trusl (CCCT) is an independently run charity (Charity number 1006429) ICCCT) The charity Is consolidated to comply with FRS102 section 9. As at 31 August 2024 CCCT had total net assets of £2.48m (2023: £2.22m) CCCT'S revenue for the period was £330,06812023: £429,406). At the balance sheet date, CCCT owed £nil {2023', £7,042)) to Chellenham College. During the year grants for projects, bursaries and prizes were made lo Cheltenham College of £90,513 (2023.. £97,189). Page145 CHELTENHAM COLLEGE Year ended 31 August 2024 CHELTENHAM CnllEC*E 24(a). Movement in Funds - Current year Consolidated 1 September 2023 £'ooo Net movement Transfers £'ooo £'ooo Investment galn £'ooo 31 August 2024 £'(x)o Endowed funds College ISchoL4rship) CCCT 3,043 (22) (4) 78 352 69 3A51 745 Endowed 3.723 (26) 78 421 4,196 Restricted funds College (Bursary) CCCT 1.248 1,157 89 132 (12) 1,325 1,332 43 Restdcted 221 (12) 43 57 Unrestricted funds General reseNe CCCT Designated (FIA & Lottery) 65,731 302 308 995 74 100 (66) 66,660 405 516 29 Unrestricted 66.341 1,169 166) 137 67.581 Consolldated reserves mthtment 72,469 1,364 601 74,434 College Endowed fijnds (Scholarship) 3.042 78 352 3,453 Restrlcted furK15 College (Bursary) 1,203 89 (12) 1,280 Unrestricted fvnds General Designated (FIA & Lottery) 65,720 621 938 101 101 (167) 66,759 663 108 Unrestrlcted 66,341 1,039 {66) 108 67,422 College moverrent reserves 70,586 1,109 460 71155 Page | 46 CHELTENHAM COLLEGE Year ended 31 August 2024 CHELTENHAM ¢01 If G 24(a). Movement in Funds - Current year (continued) The net transfers set out above of £66,0(X) (2023: £91,OLX)) represents the net movement In College's Bursary Fund. College's Endowed scholarship funds comprise a number of individual endowments of varying sizes. Those representirKJ more than 5% of the total funds are. General Fund £383.15012023: £345.000) Marsh Bequest £679,357 (2023.. £612,400) For the benefit of the children of memters of the medical profession For ihe benefii of the children of members of the medical professton For the benefft of the children and descendants of those killed on active military servKe For the benefit of descendants of Martin and Anne Cadbury Victor Percival Bequest £272,712 (2023: £245,900) Unwin Bequest £576,052 (2023: £519,300) Cadbury £1,049,96012023.' £1,008,0￿) College's restricted furKI of £1,280,OCMJ (2023.. £1,203,000) comprises ihe c¢y)trlbutions made by parents at registration towards the bursary fund less any drawdown on those funds by Cc41ege during the year. Further details of the restricted and endowed funds of CCCT are set c￿t in the Annual Report of CCCT. Designated funds, comprising accrued k)ttery surpluses and dividend income for the Fees in Advance invesiment fund, are drawn down annually to support the tours and projects Ofdinarily supported by the bttefES ￿rosS both schools and lo maintain a base of investments to support the Fees in Advance Schemes. Page147 CHELTENHAM COLLEGE Year ended 31 August 2024 CHELTENHAM C 1 yr) Totsl funds 67,581 2,657 4,196 74A34 College {2024) Tangible Fixed assets Investment in subsNliaries Securities investments 90.215 736 90,215 736 3,453 3A53 2,489 FIA Scheme Investments 2,489 747 Net Current Assets/(Liabilities) excluding FIA Fees In Adv3r(e current liabilities Fees in Advance fair value adjustment Long-Term Liabilities excluding FIA (< l yr) FIA lorrfJ term liabilities FIA fair value adjustment (> l yrl 1,280 2,027 (4.340) (3D 02,055) 00,327) 02) (4,340) 131) 02.055) UO,327J 02) Totsl fijnds 67,422 1,280 3,453 72,155 Page149 CHELTENHAM COLLEGE Year ended 31 August 2024 CHELTENHAM eousGI 26(b). Allocation of Net assets between funds- Prior year Unrestrlcted Funds £'ooo Restricted Funds £'ooo Endowed funds £'ooo 2023 Totsl £,￿0 Consolidated (2023) Tangible Fixed assets Securities investments 88,541 88,541 4.363 2,318 3,680 FIA kheme investments Net Current Assets/lLiabilitiesl excluding FIA FIA current Ilabilities FIA fair value adjustment Long-Term Liabilities excluding FIA (< l yr) FIA long ierm liabilities FIA fair value adjustment 1> l yrl 2.318 (6,091) 12,371) (17) (12,996) 13,003) (401 1,722 43 (4,326) (2,371) 07) (12,W6) (3,(XJ31 {40) Totsl fvnds 66,341 2,405 3,723 72,469 College P023) Tangible Fixed assets Investment in subsidiaries 88,771 736 88.771 736 Securities investments 3,041 3,041 2,318 FIA Scheme investments 2,318 (7,057) (2,371) (171 (12,9961 13,0031 (40) Net Current AssetS/(Liabilitiesl excluding FIA Fees in Advance current liabilities Fees in Athance fair value adjustment Long-Term Liabilities exchJding FIA (< 1 yri FIA long term liabilities FIA fair value adjustment (> l yr) 1,203 15.853) (2,371) (171 (12.9961 (3,0031 (40) Total funds 6.257 1.203 3,042 70,586 27. Related Party Transactions There were no other related party transactions during the year which require disclosure. Page150 CHELTENHAM COLLEGE Year ended 31 August 2024 CHELTENHAM CThLLfr.C*E 28. College results Cdlege's own results for the year included in the consolidated Statement of Financial ACtI￿lieS were. 2024 Totsi £'ooo 2023 Total £'OCK) Income and endowments from: Charitsble aCts￿tieS School lees receivable Anctllary trading income Other tradlng activities Non-ancillary trading Income Other activities Investments Investment income 8ank and other interest Donations, grants and legacies 35,603 1,685 32,701 1,915 255 533 <136) IS7 61 470 121 92 464 Total Income 38,235 35,690 ExperKliture on: Raising fvnds Financing costs Fundraising and development Total deductible costs (T75) P78) (1,053) (632) (362) (994) Charltable actlvltles Education and grant making (36,072) 133,495) Totsi expendlture 7,125) (34,489) Net income before investment galns 1,110 1.201 Gains/{losses) on investments 459 (276) Net Incorne on fvnds 1.569 925 Reconciliation of Funds Fund balarKes br(￿ght fO￿ard at 1 September 2023 70,586 69,661 Fund balances carried forward at 31 August 2024 72,155 70.586 29. Post Balance Sheet Event Page151 CHELTENHAM COLLEGE Year ended 31 August 2024 CHELTENHAM CnLLl¢IE Cheltenham College International Limited entered into a contract with Edumaax SPA to open a new scl)))l in Italy during 2024/25 academic year. Page152